Document:

exv4w1

Exhibit 4.1

 

PHH CORPORATION

as Issuer

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

as Trustee

 

Indenture

Dated as of August 11, 2010

 

9 1/4%

Senior Notes

Due 2016

 

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 	 	 	 	 
	Trust Indenture Act Sections	 	 	Indenture Sections	 
	§ 310 (a)
	 	 	 	 	 	 	7.10	 
	(b)
	 	 	 	 	 	 	7.08	 
	§      311
	 	 	 	 	 	 	7.03	 
	§      312
	 	 	 	 	 	 	11.02	 
	§      313
	 	 	 	 	 	 	7.06	 
	§ 314 (a)
	 	 	 	 	 	 	4, 4.11	 
	(c)
	 	 	 	 	 	 	11.04	 
	(e)
	 	 	 	 	 	 	11.05	 
	§ 315 (a)
	 	 	 	 	 	 	7.01, 7.02	 
	(b)
	 	 	 	 	 	 	7.02, 7.05	 
	(c)
	 	 	 	 	 	 	7.01	 
	(d)
	 	 	 	 	 	 	7.02	 
	(e)
	 	 	 	 	 	 	6.12, 7.02	 
	§ 316 (a)
	 	 	 	 	 	 	2.05, 6.02, 6.04, 6.05	 
	(b)
	 	 	 	 	 	 	6.06, 6.07	 
	(c)
	 	 	 	 	 	 	11.02	 
	§ 317 (a)
	(1)	 	 	 	 	 	6.08	 
	(a)
	(2)	 	 	 	 	 	6.09	 
	(b)
	 	 	 	 	 	 	2.03	 
	§      318
	 	 	 	 	 	 	11.01	 

i

 

TABLE OF CONTENTS

	 	 	 	 
	 	 	 	Page

	ARTICLE 1
	 	 	 
	Definitions And Incorporation By Reference
	 	 	 
	 
	 	 	 
	Section 1.01. Definitions
	 	 	1
	Section 1.02. Rules of Construction
	 	 	15
	 
	 	 	 
	ARTICLE 2
	 	 	 
	The Notes
	 	 	 
	 
	 	 	 
	Section 2.01. Form, Denominations and Registration of Notes
	 	 	16
	Section 2.02. Execution and Authentication; Exchange Notes;
Additional Notes
	 	 	18
	Section 2.03. Registrar, Paying Agent and Authenticating Agent;
Paying Agent to Hold Money in Trust
	 	 	19
	Section 2.04. Replacement Notes
	 	 	19
	Section 2.05. Outstanding Notes
	 	 	19
	Section 2.06. Temporary Notes
	 	 	20
	Section 2.07. Cancellation
	 	 	20
	Section 2.08. CUSIP and CINS Numbers
	 	 	21
	Section 2.09. Registration, Transfer and Exchange
	 	 	21
	Section 2.10. Restrictions on Transfer and Exchange
	 	 	24
	Section 2.11. Temporary Offshore Global Notes
	 	 	26
	 
	 	 	 
	ARTICLE 3
	 	 	 
	Redemption; Offer to Purchase
	 	 	 
	 
	 	 	 
	Section 3.01. Optional Redemption
	 	 	27
	Section 3.02. Method and Effect of Redemption
	 	 	27
	Section 3.03. Repurchase of Notes Upon a Change of Control
	 	 	28
	 
	 	 	 
	ARTICLE 4
	 	 	 
	Covenants
	 	 	 
	 
	 	 	 
	Section 4.01. Payment of Notes
	 	 	31
	Section 4.02. Maintenance of Office or Agency
	 	 	32
	Section 4.03. Existence
	 	 	32
	Section 4.04. Payment of Taxes and other Claims
	 	 	32
	Section 4.05. Maintenance of Properties and Insurance
	 	 	33
	Section 4.06. Limitation on Subsidiary Debt
	 	 	33
	Section 4.07. Limitation on Restricted Payments
	 	 	34
	Section 4.08. Limitations on Liens
	 	 	36

i

 

	 	 	 	 
	 	 	 	Page

	Section 4.09. Financial Reports
	 	 	39
	Section 4.10. Debt/Tangible Equity Ratio
	 	 	40
	Section 4.11. Reports to Trustee
	 	 	40
	Section 4.12. Suspension of Certain Covenants
	 	 	40
	 
	 	 	 
	ARTICLE 5
	 	 	 
	Consolidation, Merger or Sale of Assets
	 	 	 
	 
	 	 	 
	Section 5.01. Consolidation, Merger or Sale of Assets
	 	 	41
	 
	 	 	 
	ARTICLE 6
	 	 	 
	Default and Remedies
	 	 	 
	 
	 	 	 
	Section 6.01. Events of Default
	 	 	42
	Section 6.02. Acceleration
	 	 	43
	Section 6.03. Other Remedies
	 	 	44
	Section 6.04. Modification and Waiver
	 	 	44
	Section 6.05. Control by Majority
	 	 	44
	Section 6.06. Limitation on Suits
	 	 	45
	Section 6.07. Rights of Holders to Receive Payment
	 	 	45
	Section 6.08. Collection Suit by Trustee
	 	 	45
	Section 6.09. Trustee May File Proofs of Claim
	 	 	46
	Section 6.10. Priorities
	 	 	46
	Section 6.11. Restoration of Rights and Remedies
	 	 	46
	Section 6.12. Undertaking for Costs
	 	 	47
	Section 6.13. Rights and Remedies Cumulative
	 	 	47
	Section 6.14. Delay or Omission Not Waiver
	 	 	47
	Section 6.15. Waiver of Stay, Extension or Usury Laws
	 	 	47
	 
	 	 	 
	ARTICLE 7
	 	 	 
	The Trustee
	 	 	 
	 
	 	 	 
	Section 7.01. General
	 	 	48
	Section 7.02. Certain Rights of Trustee
	 	 	49
	Section 7.03. Individual Rights of Trustee
	 	 	50
	Section 7.04. Trustee’s Disclaimer
	 	 	51
	Section 7.05. Notice of Default
	 	 	51
	Section 7.06. Reports by Trustee to Holders
	 	 	51
	Section 7.07. Compensation And Indemnity
	 	 	51
	Section 7.08. Replacement of Trustee
	 	 	52
	Section 7.09. Successor Trustee by Merger
	 	 	53
	Section 7.10. Eligibility
	 	 	54
	Section 7.11. Money Held in Trust
	 	 	54

ii

 

	 	 	 	 
	 	 	 	Page

	ARTICLE 8
	 	 	 
	Defeasance And Discharge
	 	 	 
	 
	 	 	 
	Section 8.01. Discharge of Company’s Obligations
	 	 	54
	Section 8.02. Legal Defeasance
	 	 	55
	Section 8.03. Covenant Defeasance
	 	 	56
	Section 8.04. Application of Trust Money
	 	 	57
	Section 8.05. Repayment to Company
	 	 	57
	Section 8.06. Reinstatement
	 	 	57
	 
	 	 	 
	ARTICLE 9
	 	 	 
	Amendments, Supplements and Waivers
	 	 	 
	 
	 	 	 
	Section 9.01. Amendments Without Consent of Holders
	 	 	58
	Section 9.02. Amendments With Consent of Holders
	 	 	58
	Section 9.03. Effect of Consent
	 	 	59
	Section 9.04. Trustee’s Rights and Obligations
	 	 	60
	Section 9.05. Conformity With Trust Indenture Act
	 	 	60
	 
	 	 	 
	ARTICLE 10
	 	 	 
	Future Guarantees
	 	 	 
	 
	 	 	 
	Section 10.01. Future Guarantees
	 	 	60
	 
	 	 	 
	ARTICLE 11
	 	 	 
	Miscellaneous
	 	 	 
	 
	 	 	 
	Section 11.01. Trust Indenture Act of 1939
	 	 	61
	Section 11.02. Noteholder Communications; Noteholder Actions
	 	 	61
	Section 11.03. Notices
	 	 	62
	Section 11.04. Certificate and Opinion as to Conditions Precedent
	 	 	63
	Section 11.05. Statements Required in Certificate or Opinion
	 	 	64
	Section 11.06. Payment Date Other Than a Business Day
	 	 	64
	Section 11.07. Governing Law
	 	 	64
	Section 11.08. No Adverse Interpretation of Other Agreements
	 	 	64
	Section 11.09. Successors
	 	 	64
	Section 11.10. Duplicate Originals
	 	 	64
	Section 11.11. Separability
	 	 	65
	Section 11.12. Table of Contents and Headings
	 	 	65
	Section 11.13. No Liability of Directors, Officers, Employees,
Incorporators, Members and Stockholders
	 	 	65

iii

 

EXHIBITS

	 	 	 

	Exhibit A

	 	Form of Note
	Exhibit B

	 	Form of Supplemental Indenture
	Exhibit C

	 	Restricted Legend
	Exhibit D

	 	DTC Legend
	Exhibit E

	 	Regulation S Certificate
	Exhibit F

	 	Rule 144A Certificate
	Exhibit G

	 	Institutional Accredited Investor Certificate
	Exhibit H

	 	Certificate of Beneficial Ownership
	Exhibit I

	 	Temporary Offshore Global Note Legend

iv

 

     INDENTURE, dated as of August 11, 2010, between PHH Corporation, a Maryland corporation,
as the Company and The Bank of New York Mellon Trust Company, N.A., a national banking association,
as Trustee.

RECITALS

     The Company has duly authorized the execution and delivery of the Indenture to provide for the
issuance of up to $350,000,000 aggregate principal amount of the Company’s 9 1/4% Senior Notes Due
2016, and, if and when issued, any Additional Notes, together with any Exchange Notes issued
therefor as provided herein (the “Notes”). All things necessary to make the Indenture a legal,
valid and binding agreement of the Company, in accordance with its terms, have been done, and the
Company has done all things necessary to make the Notes (in the case of the Additional Notes, when
duly authorized), when executed by the Company and authenticated and delivered by the Trustee and
duly issued by the Company, the legal, valid and binding obligations of the Company as hereinafter
provided.

     This Indenture is subject to, and will be governed by, the provisions of the Trust Indenture
Act that are required to be a part of and govern indentures qualified under the Trust Indenture
Act.

THIS INDENTURE WITNESSETH

     For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
the parties hereto covenant and agree, for the equal and proportionate benefit of all Holders, as
follows:

ARTICLE 1

Definitions And Incorporation By Reference

     Section 1.01. Definitions.

     “Additional Interest” means additional interest owed to Holders pursuant to a Registration
Rights Agreement.

     “Additional Notes” means any notes issued under the Indenture in addition to the Original
Notes, including any Exchange Notes issued in exchange for such Additional Notes, having the same
terms in all respects as the Original Notes (although they may bear a different CUSIP number), or
in all respects except with respect to the date of issuance and issue price, interest paid or
payable on or prior to the first Interest Payment Date after the issuance of such Additional

 

 

Notes
and rights under the Registration Rights Agreement dated on or about the Issue Date.

     “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with, such Person. For
purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”) with respect to any Person, means
the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

     “Agent” means any Registrar, Paying Agent or Authenticating Agent.

     “Agent Member” means a member of, or a participant in, the Depositary.

     “Asset Securitization Subsidiary” means (i) any Subsidiary engaged solely in the business of
effecting asset securitization transactions and activities incidental thereto, or (ii) any
Subsidiary whose primary purpose is to hold title or ownership interests in vehicles, equipment,
leases, mortgages, financial assets and related assets under management, but not, for the avoidance
of doubt, mortgage servicing rights.

     “Authenticating Agent” refers to a Person engaged to authenticate the Notes in the stead of
the Trustee.

     “bankruptcy default” has the meaning assigned to such term in Section 6.01.

     “Board of Directors” means the board of directors or comparable governing body of the Company,
or any committee thereof duly authorized to act on its behalf.

     “Board Resolution” means a resolution duly adopted by the Board of Directors which is
certified by the Secretary or an Assistant Secretary of the Company and remains in full force and
effect as of the date of its certification.

     “Business Day” means any day, other than a Saturday or Sunday, provided that it is not a legal
holiday or a day on which banking institutions are authorized or required by law or regulation to
be closed in The City of New York.

     “Capital Lease” shall mean as applied to any Person, any lease of any property (whether real,
personal or mixed) by that Person as lessee which, in accordance with GAAP, is or should be
accounted for as a capital lease on the balance sheet of that Person.

2

 

     “Capital Stock” means any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock or similar interests in any other form of
entity, including, without limitation, with respect to
partnerships, partnership interests (whether general or limited) and any other interest or
participation that confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, such partnership (but not including any Debt or other securities
convertible or exchangeable into Capital Stock).

     “Certificate of Beneficial Ownership” means a certificate substantially in the form of Exhibit
H.

     “Certificated Note” means a Note in registered individual form without interest coupons.

     “Change of Control” means:

     (1) any Person acquires beneficial ownership, directly or indirectly, through a
purchase, merger or other acquisition transaction or series of transactions, of shares of
the Company’s Capital Stock entitling the Person to exercise 50% or more of the total
voting power of all shares of the Company’s Capital Stock entitled to vote generally in
elections of directors, other than an acquisition by the Company or any of the Company’s
Subsidiaries; provided that a Change of Control shall not occur as a result of this clause
(1) if, in such purchase, merger, acquisition or other transaction, all or substantially
all of the Common Stock is exchanged for or converted into cash, securities or other
property, in which case clause (2) below shall apply; or

     (2) the Company (i) merges or consolidates with or into any other Person, another
Person merges with or into the Company, or the Company conveys, sells, transfers or leases
all or substantially all of the Company’s assets to another Person (excluding a pledge of
securities issued by any of the Company’s Subsidiaries, but not excluding any transfer or
other disposition resulting from the foreclosure or other exercise of creditors’ remedies
pursuant to such pledge) or (ii) engages in any recapitalization, reclassification or
other acquisition transaction or series of transactions in which all or substantially all
of the Company’s common stock is exchanged for or converted into cash, securities or other
property, in each case other than any merger, consolidation, recapitalization,
reclassification or other acquisition transaction or series of transactions pursuant to
which the holders of the Company’s common stock immediately prior to the transaction have
the entitlement to exercise, directly or indirectly, 50% or more of the voting power of
all shares of Capital Stock entitled to vote generally in the election of directors of either

3

 

(x) the continuing or surviving corporation immediately after the transaction or
(y) the corporation that directly or indirectly owns 100% of the Capital Stock of such
continuing or surviving corporation; or

     (3) the Company is liquidated or dissolved or holders of the Company’s common stock
approve any plan or proposal for the Company’s liquidation or dissolution.

     For the purposes of this definition, whether a “Person” is a “beneficial owner” shall
be determined in accordance with Rule 13d-3 under the Exchange Act and “Person” includes
any syndicate or group that would be deemed to be a “Person” under Section 13(d)(3) of the
Exchange Act.

     “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934, or, if at any time after the execution of the
Indenture such Commission is not existing and performing the duties now assigned to it under the
Trust Indenture Act, then the body performing such duties at such time.

     “Company” means the party named as such in the first paragraph of the Indenture or any
successor obligor under the Indenture and the Notes pursuant to Article 5.

     “Company Order” means a written request or order signed in the name of the Company by an
Officer and delivered to the Trustee.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the Notes
being redeemed that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate notes of comparable maturity to the
remaining term of such notes.

     “Comparable Treasury Price” means, for any redemption date, (1) the average of four Reference
Treasury Dealer Quotations for the redemption date, after excluding the highest and lowest
Reference Treasury Dealer Quotations for that redemption date, or (2) if the Company obtains fewer
than four Reference Treasury Dealer Quotations, the average of all the Reference Treasury Dealer
Quotations obtained.

     “Consolidated Net Worth” of any Person means the consolidated stockholders’ equity of such
Person and its consolidated subsidiaries, as determined on a consolidated basis in accordance with
GAAP plus amounts representing mandatorily redeemable preferred securities issued by such Person or
its Subsidiaries.

4

 

     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee is principally administered, which at the date of the Indenture is located at 2 N.
LaSalle Street, Suite 1020, Chicago, IL
60606, Attn: Corporate Trust Administration, or such other address as the Trustee may
designate from time to time by notice to the Holders and the Company.

     “Debt” means

     (1) all debt, Obligations and other liabilities of the Company and the Company’s
Subsidiaries which are, at the date as of which Debt is to be determined, includable as
liabilities in a consolidated balance sheet of the Company and the Company’s Subsidiaries
prepared in accordance with GAAP, other than

	 	(x)	 	accounts payable, trade payables, accrued expenses and
derivative transactions entered into in the ordinary course of business, and
	 
	 	(y)	 	current and deferred income taxes and other similar
liabilities, plus

     (2) without duplicating any items included in Debt pursuant to the foregoing clause
(1), (but excluding reinsurance obligations of Atrium Reinsurance Corporation and its
successors and assigns) the maximum aggregate amount of all liabilities of the Company or
any of the Company’s Subsidiaries under any Guarantee, indemnity or similar undertaking
given or assumed of, or in respect of, the indebtedness, Obligations or other liabilities,
assets, revenues, income or dividends of any Person other than the Company or one of the
Company’s Subsidiaries and;

     (3) without duplicating any items included in Debt pursuant to the foregoing clauses
(1) or (2), all other Obligations or liabilities of the Company or any of the Company’s
Subsidiaries in relation to the discharge of the Obligations of any Person other than the
Company or one of the Company’s Subsidiaries.

     “Debt/Tangible Equity Ratio” means the ratio of (x) principal amount of Debt to (y) Tangible
Net Worth.

     “Default” means any event that is, or after notice or passage of time or both would be, an
Event of Default.

     “Depositary” means the depositary of each Global Note, which will initially be DTC.

5

 

     “Disqualified Stock” means any Capital Stock which, by its terms, or by the terms of any
security into which it is convertible or for which it is putable or exchangeable, or upon the
happening of any event, matures or is mandatorily
redeemable, other than as a result of a Change of Control, pursuant to a sinking fund
obligation or otherwise, or is redeemable at the option of the holder thereof, other than as a
result of a Change of Control, in whole or in part, in each case prior to the date 91 days after
the earlier of the maturity date of the Notes or the date the Notes are no longer outstanding.
Notwithstanding the foregoing, any Capital Stock shall be deemed Disqualified Stock if the terms
governing such mandatory or optional redemption pursuant to a Change of Control (A) are materially
more favorable to the holders than the terms described in Section 3.03 taken as a whole (including
for the avoidance of doubt, if the terms governing such mandatory or optional redemption pursuant
to a Change of Control could be triggered without triggering an Offer to Purchase upon a Change of
Control with respect to the Notes), or (B) do not specifically state that repurchase or redemption
pursuant thereto will not occur prior to the Company’s repurchase of the Notes as required by the
Indenture.

     “DTC” means The Depository Trust Company, a New York corporation, and its successors.

     “DTC Legend” means the legend set forth in Exhibit D.

     “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock, but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock.

     “Event of Default” has the meaning assigned to such term in Section 6.01.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.

     “Exchange Notes” means the Notes of the Company issued pursuant to the Indenture in exchange
for, and in an aggregate principal amount equal to, the Initial Notes or any Initial Additional
Notes in compliance with the terms of a Registration Rights Agreement and containing terms
substantially identical to the Initial Notes or any Initial Additional Notes (except that (i) such
Exchange Notes will be registered under the Securities Act and will not be subject to transfer
restrictions or bear the Restricted Legend, and (ii) the provisions relating to Additional Interest
will be eliminated).

     “Exchange Offer” means an offer by the Company to the Holders of the Initial Notes or any
Initial Additional Notes to exchange outstanding Notes for Exchange Notes, as provided for in a
Registration Rights Agreement.

6

 

     “Exchange Offer Registration Statement” means the Exchange Offer Registration Statement as
defined in a Registration Rights Agreement.

     “Final Offering Memorandum” means the final offering memorandum relating to the Notes dated
August 6, 2010.

     “Fitch” means Fitch, Inc. and its successors.

     “Foreign Subsidiary” means any Subsidiary of the Company that is not organized under the laws
of the United States or any State thereof or the District of Columbia and does not principally
transact business within the United States.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect as of the Issue Date.

     “Global Note” means a Note in registered global form without interest coupons.

     “Government Sponsored Enterprise” shall mean (i) the Federal National Mortgage Association or
any successor thereto, (ii) the Federal Home Loan Mortgage Corporation or any successor thereto,
(iii) the Government National Mortgage Association and any successor thereto and (iv) any other
U.S. Department of Housing and Urban Development entity.

     “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Debt and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person (1) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Debt (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or
services (unless such purchase arrangements are on arm’s-length terms and are entered into in the
ordinary course of business), to take-or-pay, or to maintain financial statement conditions or
otherwise) or (2) entered into for purposes of assuring in any other manner the obligee of such
Debt of the payment thereof or to protect such obligee against loss in respect thereof (in whole or
in part); provided that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding
meaning.

     “Holder” or “Noteholder” means the registered holder of any Note.

     “IAI Global Note” means a Global Note resold to Institutional Accredited Investors bearing the
Restricted Legend.

     “Indenture” means this indenture, as amended or supplemented from time to time.

7

 

     “Independent Investment Banker” means one of the Reference Treasury Dealers that the Company
has appointed.

     “Initial Additional Notes” means Additional Notes issued in an offering not registered under
the Securities Act and any Notes issued in replacement thereof, but not including any Exchange
Notes issued in exchange therefor.

     “Initial Notes” means the Notes issued on the Issue Date and any Notes issued in replacement
thereof, but not including any Exchange Notes issued in exchange therefor.

     “Initial Purchasers” means the initial purchasers party to a purchase agreement with the
Company relating to the sale of the Initial Notes or Initial Additional Notes by the Company.

     “Institutional Accredited Investor” means an institutional “accredited investor” (as defined)
in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

     “Institutional Accredited Investor Certificate” means a certificate substantially in the form
of Exhibit G hereto.

     “interest”, in respect of the Notes, unless the context otherwise requires, refers to interest
and Additional Interest, if any.

     “Interest Payment Date” means each March 1 and September 1 of each year, commencing March 1,
2011.

     “Investment Grade Rating” means BBB- or higher by S&P, Baa3 or higher by Moody’s and BBB- by
Fitch, or the equivalent of such ratings by S&P, Moody’s or Fitch (or, in each case, if such Rating
Agency ceases to rate the Notes for reasons outside of the Company’s control, the equivalent
investment grade credit rating from any Rating Agency selected by the Company as a replacement
Rating Agency).

     “Issue Date” means the date on which the Original Notes are originally issued under the
Indenture.

     “Lien” means any mortgage, pledge, lien, security interest or encumbrance.

     “Material Subsidiary” means any Subsidiary which together with its Subsidiaries at the time of
determination had assets constituting 10% or more of consolidated assets, accounts for 10% or more
of Consolidated Net Worth, or accounts for 10% or more of the revenues of the Company and the
Company’s consolidated Subsidiaries for the Rolling Period immediately preceding the date of
determination.

8

 

     “Moody’s” means Moody’s Investors Service, Inc. and its successors.

     “Non-U.S. Person” means a Person that is not a U.S. person, as defined in Regulation S.

     “Notes” has the meaning assigned to such term in the Recitals.

     “Note Guarantee” means a Guarantee of the Company’s Obligations under the Indenture and the
notes by any Subsidiary of the Company.

     “Obligations” means, with respect to any Debt, all obligations (whether in existence on the
Issue Date or arising afterwards, absolute or contingent, direct or indirect) for or in respect of
principal (when due, upon acceleration, upon redemption, upon mandatory repayment or repurchase
pursuant to a mandatory offer to purchase, or otherwise), premium, interest, penalties, fees,
indemnification, reimbursement and other amounts payable and liabilities with respect to such Debt,
including all interest accrued or accruing after the commencement of any bankruptcy, insolvency or
reorganization or similar case or proceeding at the contract rate (including, without limitation,
any contract rate applicable upon default) specified in the relevant documentation, whether or not
the claim for such interest is allowed as a claim in such case or proceeding.

     “Offer to Purchase” has the meaning assigned to such term in Section 3.03.

     “Officer” means the chairman of the Board of Directors, the president or chief executive
officer, any vice president, the chief financial officer, the treasurer or any assistant treasurer,
or the secretary or any assistant secretary, of the Company.

     “Officers’ Certificate” means a certificate signed in the name of the Company (i) by the
chairman of the Board of Directors, the president or chief executive officer or a vice president
and (ii) by the chief financial officer, the treasurer or any assistant treasurer or the secretary
or any assistant secretary.

     “Offshore Global Note” means a Global Note representing Notes issued and sold pursuant to
Regulation S.

     “Opinion of Counsel” means a written opinion signed by legal counsel, who may be an employee
of or counsel to the Company.

     “Original Notes” means the Initial Notes and any Exchange Notes issued in exchange therefor.

     “Parent Holding Company” means any Subsidiary of the Company that has no assets and conducts
no operations other than the direct or indirect holding

9

 

of Capital Stock in a Foreign Subsidiary or
activities incidental thereto, including
participation in financing arrangements of the Foreign Subsidiary, and the receipt,
reinvestment or distribution of dividends, interest and other distributions.

     “Parent Holding Company Guarantee” means with respect to Debt of a Foreign Subsidiary, any
Guarantee of the Debt by the Parent Holding Company, including a pledge by the Parent Holding
Company of the Capital Stock held in the Foreign Subsidiary.

     “Paying Agent” refers to a Person engaged to perform the obligations of the Trustee in respect
of payments made or funds held hereunder in respect of the Notes.

     “Permanent Offshore Global Note” means an Offshore Global Note that does not bear the
Temporary Offshore Global Note Legend.

     “Person” means any natural person, corporation, division of a corporation, partnership,
limited liability company, trust, joint venture, association, company, estate, unincorporated
organization or government or any agency or political subdivision thereof.

     “principal” of any Debt means the principal amount of such Debt, (or if such Debt was issued
with original issue discount, the face amount of such Debt less the remaining unamortized portion
of the original issue discount of such Debt), together with, unless the context otherwise
indicates, any premium then payable on such Debt.

     “Rating Agencies” means:

     (a) S&P;

     (b) Moody’s;

     (c) Fitch; or

     (d) to the extent any of S&P, Moody’s or Fitch do not make a rating on the Notes
publicly available for reasons outside of the Company’s control, a nationally recognized
securities rating agency or agencies, as the case may be, selected by the Company, which
shall be substituted for S&P, Moody’s or Fitch, as the case may be.

     “Reference Treasury Dealer Quotations” means, for each Reference Treasury Dealer and any
redemption date, the average, as determined by the Trustee, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the

10

 

Trustee by any Reference Treasury Dealer at 5:00 p.m. New York City time on the
third Business Day preceding the redemption date for the Notes.

     “Reference Treasury Dealer” means (1) any of Banc of America Securities LLC, Citigroup Global
Markets Inc., J.P. Morgan Securities Inc. and RBS Securities Inc. and, in each case, its respective
successors; provided, however, that if any of them ceases to be a primary U.S. Government
securities dealer in New York City, the Company may appoint another primary U.S. Government
securities dealer as a substitute and (2) any other U.S. Government securities dealers that the
Company selects.

     “Register” has the meaning assigned to such term in Section 2.09.

     “Registrar” means a Person engaged to maintain the Register.

     “Registration Rights Agreement” means (i) the Registration Rights Agreement dated on or about
the Issue Date between the Company and the Initial Purchasers party thereto with respect to the
Initial Notes, and (ii) with respect to any Additional Notes, any registration rights agreements
between the Company and the Initial Purchasers party thereto relating to rights given by the
Company to the purchasers of Additional Notes to register such Additional Notes or exchange them
for Notes registered under the Securities Act.

     “Regular Record Date” for the interest payable on any Interest Payment Date means the February
15 or August 15 (whether or not a Business Day) next preceding such Interest Payment Date.

     “Regulation S” means Regulation S under the Securities Act.

     “Regulation S Certificate” means a written certification of the transferor to the effect that
such transfer is being made in compliance with Regulation S under the Securities Act, substantially
in the form of Exhibit E hereto.

     “REO Assets” of a Person means a real estate asset owned by such Person and acquired as a
result of the foreclosure or other enforcement of a Lien on such asset securing a Servicing Advance
or loans and other mortgage-related receivables purchased or originated by the Company or any of
the Company’s Subsidiaries in the ordinary course of business.

     “Responsible Officer” shall mean, when used with respect to the Trustee, any officer within
the corporate trust department of the Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other officer of the
Trustee who customarily performs functions similar to those performed by the Persons who at the
time shall be such officers, respectively, or to whom any corporate trust matter is referred
because of such

11

 

person’s knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Indenture.

     “Restricted Legend” means the legend set forth in Exhibit C.

     “Restricted Payment” has the meaning assigned to such term in Section 4.07.

     “Restricted Period” means the relevant 40-day distribution compliance period as defined in
Regulation S.

     “Reversion Date” has the meaning assigned to such term in Section 4.12.

     “Revolving Lien” means any Lien which extends to property in existence on the date of creation
of such Lien and also to any property of substantially the same characteristics subsequently
acquired in the ordinary course of the Company’s business or that of a Material Subsidiary of the
Company.

     “Rolling Period” means with respect to any fiscal quarter, such fiscal quarter and the three
immediately preceding fiscal quarters considered as a single accounting period for which internal
financial statements are available.

     “Rule 144A” means Rule 144A under the Securities Act.

     “Rule 144A Certificate” means (i) a certificate substantially in the form of Exhibit F hereto
or (ii) a written certification addressed to the Company and the Trustee to the effect that the
Person making such certification (x) is acquiring such Note (or beneficial interest) for its own
account or one or more accounts with respect to which it exercises sole investment discretion and
that it and each such account is a qualified institutional buyer within the meaning of Rule 144A,
(y) is aware that the transfer to it or exchange, as applicable, is being made in reliance upon the
exemption from the provisions of Section 5 of the Securities Act provided by Rule 144A, and (z)
acknowledges that it has received such information regarding the Company as it has requested
pursuant to Rule 144A(d)(4) or has determined not to request such information.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.,
and any successor thereto.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
of the Commission promulgated thereunder.

     “Servicing” means loan servicing, sub-servicing rights and master servicing rights and
obligations including, without limitation, one or more of the following functions (or a portion
thereof): (a) the administration and collection of payments for the reduction of principal and/or
the application of interest on a

12

 

loan; (b) the collection of payments on account of taxes and
insurance; (c) the remittance of appropriate portions of collected payments; (d) the provision of
full escrow administration; (e) the right to receive fees and other compensation and any ancillary
fees arising from or connected to the assets serviced, earnings and other benefits of the related
accounts and, in each case, all rights, powers and
privileges incident to any of the foregoing, and expressly including the right to enter into
arrangements with third Persons that generate ancillary fees and benefits with respect to the
serviced assets; (f) the realization on the security for a loan; and (g) any other obligation
imposed on a servicer pursuant to a Servicing Agreement.

     “Servicing Advances” means advances made by the Company or any of the Company’s Subsidiaries
in the capacity as servicer of any mortgage-related receivables to fund principal, interest,
escrow, foreclosure, insurance, tax or other payments or advances when the borrower on the
underlying receivable is delinquent in making payments on such receivable; to enforce remedies,
manage and liquidate REO Assets; or that the Company or any of the Company’s Subsidiaries otherwise
advance in the capacity as servicer pursuant to any Servicing Agreement.

     “Servicing Advance Facility” means any funding arrangement with lenders based in whole or in
part upon Servicing Advances under which advances are made to the Company or any of the Company’s
Subsidiaries.

     “Servicing Agreements” means any agreement between one or more Persons pursuant to which the
Company or any of the Company’s Subsidiaries effects a Servicing, including pooling and servicing
agreements, sale and servicing agreements, transfer and servicing agreements and agreements with
third parties, in each case, however denominated.

     “Shelf Registration Statement” means the Shelf Registration Statement as defined in a
Registration Rights Agreement.

     “Special Purpose Vehicle Subsidiary” means PHH Caribbean Leasing, Inc. and any Subsidiary
engaged in the fleet-leasing management business which (i) is, at any one time, a party to one or
more lease agreements with only one lessee and (ii) finances, at any one time, its investment in
lease agreements or vehicles with only one lender, which lender may be the Company.

     “Stated Maturity” means (i) with respect to any Debt, the date specified as the fixed date on
which the final installment of principal of such Debt is due and payable or (ii) with respect to
any scheduled installment of principal of or interest on any Debt, the date specified as the fixed
date on which such installment is due and payable as set forth in the documentation governing such
Debt, not including any contingent obligation to repay, redeem or repurchase prior to the regularly
scheduled date for payment.

13

 

     “Subsidiary” means, with respect to any Person, any corporation, association, joint venture,
partnership, limited liability company or other business entity of which at least a majority of the
Voting Stock or other ownership interests having ordinary voting power for the election of
directors (or the equivalent) is, at
the time as of which any determination is being made, owned or controlled by such Person or
one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such
Person.

     “Subsidiary Guarantor” means each Subsidiary that enters into a Note Guarantee subsequent to
the Issue Date pursuant to Section 10.01 by executing a supplemental indenture in the form of
Exhibit B hereto, for so long as such Note Guarantee remains in effect.

     “Suspended Covenants” has the meaning assigned to such term in Section 4.12.

     “Suspension Period” has the meaning assigned to such term in Section 4.12.

     “Tangible Net Worth” means, with respect to any Person at any date, the Consolidated Net Worth
of such Person, less the aggregate book value of all intangible assets of such Person (as
determined in accordance with GAAP).

     “Temporary Offshore Global Note” means an Offshore Global Note that bears the Temporary
Offshore Global Note Legend.

     “Temporary Offshore Global Note Legend” means the legend set forth in Exhibit I.

     “Treasury Rate” means, for any redemption date, (1) the yield to maturity as of such
redemption date of the Comparable Treasury Issue (as compiled and published in the most recent
Federal Reserve Statistical Release H.15 (519), or any successor publication which is published
weekly by the Board of Governors of the Federal Reserve System and which establishes yields on
actively traded United States Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities,” for the maturity corresponding to the applicable Comparable
Treasury Issue, that has become publicly available at least three Business Days prior to the
redemption date) or (2) if such release (or any successor release) is not published during the week
preceding the calculation date or does not contain such yields, the rate per year equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.

14

 

     “Trustee” means the party named as such in the first paragraph of the Indenture or any
successor trustee under the Indenture pursuant to Article 7.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in effect on the Issue Date.

     “U.S. Global Note” means a Global Note that bears the Restricted Legend representing Notes
issued and sold pursuant to Rule 144A.

     “U.S. Government Obligations” means obligations issued or directly and fully guaranteed or
insured by the United States of America or by any agent or instrumentality thereof, provided that
the full faith and credit of the United States of America is pledged in support thereof.

     “Voting Stock” means, with respect to any Person, Capital Stock of any class or kind
ordinarily having the power to vote for the election of directors, managers or other voting members
of the governing body of such Person.

     “Wholly Owned” means, with respect to any Subsidiary, a Subsidiary all of the outstanding
Capital Stock of which (other than any director’s qualifying shares) is owned by the Company and
one or more Wholly Owned Material Subsidiaries (or a combination thereof).

     Section 1.02. Rules of Construction. Unless the context otherwise requires or except as
otherwise expressly provided,

     (a) an accounting term not otherwise defined has the meaning assigned to it in accordance with
GAAP;

     (b) “herein,” “hereof” and other words of similar import refer to the Indenture as a whole and
not to any particular Section, Article or other subdivision;

     (c) all references to Sections or Articles or Exhibits refer to Sections or Articles or
Exhibits of or to the Indenture unless otherwise indicated;

     (d) references to agreements or instruments, or to statutes or regulations, are to such
agreements or instruments, or statutes or regulations, as amended from time to time (or to
successor statutes and regulations);

     (e) in the event that a transaction meets the criteria of more than one category of permitted
transactions or listed exceptions the Company may classify such transaction as it, in its sole
discretion, determines;

     (f) “or” is not exclusive;

15

 

     (g) words in the singular include the plural, and in the plural include the singular; and

     (h) “including” means including without limitation.

     Section 1.03. Incorporation by Reference of Trust Indenture Act. Except as expressly
provided herein, this Indenture is subject to the mandatory provisions of the Trust Indenture Act,
which are incorporated by reference in and made a part of this Indenture. The following Trust
Indenture Act terms have the following meanings:

     “indenture securities” means the Notes and the Guarantees.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Company, the Subsidiary Guarantors and any
other obligor on the indenture securities.

     All other Trust Indenture Act terms used in this Indenture that are defined by the Trust
Indenture Act, defined by Trust Indenture Act reference to another statute or defined by Commission
rule have the meanings assigned to them by such definitions.

ARTICLE 2

The Notes

     Section 2.01. Form, Denominations and Registration of Notes. (a) The Notes and the Trustee’s
certificate of authentication will be substantially in the form attached as Exhibit A. The terms
and provisions contained in the form of the Notes annexed as Exhibit A constitute, and are hereby
expressly made, a part of the Indenture. The Notes may have notations, legends or endorsements
required by law, rules of or agreements with national securities exchanges to which the Company or
any Subsidiary Guarantor are subject, or usage (provided that any such notation, legend or
endorsement is in a form acceptable to the Company). Each Note will be dated the date of its
authentication. The Notes will be issued in registered form, without interest coupons, in
denominations of $2,000 and higher integral multiples of $1,000.

     (b) (i) Except as otherwise provided in Section 2.01(c), Section 2.10(b)(3), Section
2.10(b)(5), Section 2.10(c) or Section 2.09(b)(4), each Initial

16

 

Note or Initial Additional Note
(other than a Permanent Offshore Global Note) will bear the Restricted Legend.

     (ii) Each Global Note, whether or not an Initial Note or Additional Note, will bear
the DTC Legend.

     (iii) Each Temporary Offshore Global Note will bear the Temporary Offshore Global
Note Legend.

     (iv) Initial Notes and Initial Additional Notes will be issued, subject to Section 2.09(b), in
the form of one or more Global Notes

     (iv) Initial Notes and Initial Additional Notes offered and sold in reliance on
Regulation S will be issued as provided in Section 2.11(a).

     (v) Initial Notes resold to Institutional Accredited Investors will be in the form of
an IAI Global Note.

     (vi) Exchange Notes will be issued, subject to Section 2.09(b), in the form of one or
more Global Notes.

     (c) (i) If the Company determines (upon the advice of counsel and such other certifications
and evidence as the Company may reasonably require) that a Note is eligible for resale pursuant to
Rule 144 under the Securities Act (or a successor provision) and that the Restricted Legend is no
longer necessary or appropriate in order to ensure that subsequent transfers of the Note (or a
beneficial interest therein) are effected in compliance with the Securities Act, or

     (ii) after an Initial Note or any Initial Additional Note is (x) sold pursuant to an
effective registration statement under the Securities Act, pursuant to a Registration
Rights Agreement or otherwise, or (y) is validly tendered for exchange into an Exchange
Note pursuant to an Exchange Offer;

the Company may instruct the Trustee to cancel the Note and issue to the Holder thereof (or to its
transferee) a new Note of like tenor and amount, registered in the name of the Holder thereof (or
its transferee), that does not bear the Restricted Legend, and the Trustee will comply with such
instruction.

     (d) By its acceptance of any Note bearing the Restricted Legend (or any beneficial interest in
such a Note), each Holder thereof and each owner of a beneficial interest therein acknowledges the
restrictions on transfer of such Note (and any such beneficial interest) set forth in this
Indenture and in the Restricted Legend and agrees that it will transfer such Note (and any such
beneficial interest) only in accordance with the Indenture and such legend.

17

 

     Section 2.02. Execution and Authentication; Exchange Notes; Additional Notes. (a) An Officer
shall execute the Notes for the Company by facsimile or manual signature in the name and on behalf
of the Company. If an Officer whose signature is on a Note no longer holds that office at the time
the Note is authenticated, the Note will still be valid.

     (b) A Note will not be valid until the Trustee manually signs the certificate of
authentication on the Note, with the signature conclusive evidence that the Note has been
authenticated under the Indenture.

     (c) The Trustee shall initially authenticate Initial Notes for original issue on the Issue
Date in an aggregate principal amount not to exceed $350,000,000 upon a written order of the
Company in the form of a Company Order. The Trustee shall authenticate Initial Additional Notes
from time to time for original issue in aggregate principal amounts specified by the Company, and
Exchange Notes from time to time for issue in exchange for a like principal amount of Initial Notes
or Initial Additional Notes, in each case upon a written order of the Company in the form of a
Company Order in aggregate principal amount as specified in such order. At any time and from time
to time after the execution and delivery of the Indenture, the Company may deliver Notes executed
by the Company to the Trustee for authentication. Each such Company Order shall specify:

     (A) the amount of Notes to be authenticated and the date on which the Notes
are to be authenticated,

     (B) whether the Notes are to be Initial Notes, Initial Additional Notes or
Exchange Notes,

     (C) in the case of Initial Additional Notes, that the issuance of such Notes
does not contravene any provision of Article 4,

     (D) whether the Notes are to be issued as one or more Global Notes or
Certificated Notes, and

     (E) other information the Company may determine to include or the Trustee
may reasonably request.

     (d) In the case of Exchange Notes, effectiveness of an Exchange Offer Registration Statement
and consummation of the Exchange Offer thereunder (and receipt by the Trustee of an Officers’
Certificate to that effect). Initial Notes or Initial Additional Notes exchanged for Exchange
Notes will be cancelled by the Trustee.

18

 

     Section 2.03. Registrar, Paying Agent and Authenticating Agent; Paying Agent to Hold Money in
Trust. (a) The Company may appoint one or more Registrars and one or more Paying Agents, and the
Trustee may appoint an Authenticating Agent, in which case each reference in the Indenture to the
Trustee in respect of the obligations of the Trustee to be performed by that Agent will be deemed
to be references to the Agent. The Company or any Affiliate may act as Registrar or (except for
purposes of Article 8) Paying Agent. In each case the
Company and the Trustee will enter into an appropriate agreement with the Agent implementing
the provisions of the Indenture relating to the obligations of the Trustee to be performed by the
Agent and the related rights. The Company initially appoints the Trustee as Registrar and Paying
Agent.

     (b) The Company will require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust for the benefit of the Holders or the Trustee all money held by
the Paying Agent for the payment of principal of and interest on the Notes and will promptly notify
the Trustee of any default by the Company in making any such payment. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee and account for any funds
disbursed, and the Trustee may at any time during the continuance of any payment default, upon
written request to a Paying Agent, require the Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed. Upon doing so, the Paying Agent will have no
further liability for the money so paid over to the Trustee.

     Section 2.04. Replacement Notes. If a mutilated Note is surrendered to the Trustee or if a
Holder claims that its Note has been lost, destroyed or wrongfully taken, the Company will issue
and the Trustee will authenticate a replacement Note of like tenor and principal amount and bearing
a number not contemporaneously outstanding. Every replacement Note is an additional obligation of
the Company and entitled to the benefits of the Indenture. If required by the Trustee or the
Company, an indemnity must be furnished that is sufficient in the judgment of both the Trustee and
the Company to protect the Company and the Trustee from any loss they may suffer if a Note is
replaced. The Company may charge the Holder for the expenses of the Company and the Trustee in
replacing a Note. In case the mutilated, lost, destroyed or wrongfully taken Note has become or is
about to become due and payable, the Company in its discretion may pay the Note instead of issuing
a replacement Note.

     Section 2.05. Outstanding Notes. (a) Notes outstanding at any time are all Notes that have
been authenticated by the Trustee except for

     (i) Notes cancelled by the Trustee or delivered to it for cancellation;

19

 

     (ii) any Note which has been replaced pursuant to Section 2.04 unless and until the
Trustee and the Company receive proof satisfactory to them that the replaced Note is held
by a bona fide purchaser; and

     (iii) on or after the maturity date or any redemption date or date for purchase of
the Notes pursuant to an Offer to Purchase, those Notes payable or to be redeemed or
purchased on that date for which the Trustee (or Paying Agent, other than the Company or
an Affiliate of the Company) holds money sufficient to pay all amounts then due.

     (b) A Note does not cease to be outstanding because the Company or one of its Affiliates holds
the Note, provided that in determining whether the Holders of the requisite principal amount of the
outstanding Notes have given or taken any request, demand, authorization, direction, notice,
consent, waiver or other action hereunder, Notes owned by the Company or any Affiliate of the
Company will be disregarded and deemed not to be outstanding, (it being understood that in
determining whether the Trustee is protected in relying upon any such request, demand,
authorization, direction, notice, consent, waiver or other action, only Notes which the Trustee
knows to be so owned will be so disregarded). Notes so owned which have been pledged in good faith
may be regarded as outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right so to act with respect to such Notes and that the pledgee is not the Company or any
Affiliate of the Company.

     Section 2.06. Temporary Notes. In the event that definitive Notes are to be issued under the
terms of the Indenture, until definitive Notes are ready for delivery, the Company may prepare and
the Trustee will authenticate temporary Notes. Temporary Notes will be substantially in the form
of definitive Notes but may have insertions, substitutions, omissions and other variations
determined to be appropriate by the Officer executing the temporary Notes, as evidenced by the
execution of the temporary Notes. If temporary Notes are issued, the Company will cause definitive
Notes to be prepared without unreasonable delay. After the preparation of definitive Notes, the
temporary Notes will be exchangeable for definitive Notes upon surrender of the temporary Notes at
the office or agency of the Company designated for the purpose pursuant to Section 4.02, without
charge to the Holder. Upon surrender for cancellation of any temporary Notes the Company will
execute and the Trustee will authenticate and deliver in exchange therefor a like principal amount
of definitive Notes of authorized denominations. Until so exchanged, the temporary Notes will be
entitled to the same benefits under the Indenture as definitive Notes.

     Section 2.07. Cancellation. The Company at any time may deliver to the Trustee for
cancellation any Notes previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee for cancellation any Notes
previously authenticated

20

 

hereunder which the Company has not issued and sold. Any Registrar or the Paying Agent will
forward to the Trustee any Notes surrendered to it for transfer, exchange or payment. The Trustee
will cancel all Notes surrendered for transfer, exchange, payment or cancellation and dispose of
them in accordance with its normal procedures or the written instructions of the Company.
Certification of the destruction of all cancelled Notes shall upon the written request of the
Company be delivered to the Company. The Company may not issue new Notes to replace Notes it has
paid in full or delivered to the Trustee for cancellation.

     Section 2.08. CUSIP and CINS Numbers. The Company in issuing the Notes may use “CUSIP” and
“CINS” numbers, and the Trustee will use CUSIP numbers or CINS numbers in notices of redemption or
exchange or in Offers to Purchase as a convenience to Holders, the notice to state that no
representation is made as to the correctness of such numbers either as printed on the Notes or as
contained in any notice of redemption or exchange or Offer to Purchase. The Company will promptly
notify the Trustee of any change in the CUSIP or CINS numbers.

     Section 2.09. Registration, Transfer and Exchange. (a) The Notes will be issued in
registered form only, without coupons, and the Company shall cause the Trustee to maintain a
register (the “Register”) of the Notes, for registering the record ownership of the Notes by the
Holders and transfers and exchanges of the Notes.

     (b) (1) Each Global Note will be registered in the name of the Depositary or its nominee and,
so long as DTC is serving as the Depositary thereof, will bear the DTC Legend.

     (2) Each Global Note will be delivered to the Trustee as custodian for the
Depositary. Transfers of a Global Note (but not a beneficial interest therein) will be
limited to transfers thereof in whole, but not in part, to the Depositary, its successors
or their respective nominees, except (1) as set forth in Section 2.09(b)(4).

     (3) Agent Members have no rights under the Indenture with respect to any Global Note
held on their behalf by the Depositary, and the Depositary may be treated by the Company,
the Trustee and any agent of the Company or the Trustee as the absolute owner and Holder
of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, the
Depositary or its nominee may grant proxies and otherwise authorize any Person (including
any Agent Member and any Person that holds a beneficial interest in a Global Note through
an Agent Member) to take any action which a Holder is entitled to take under the Indenture
or the Notes, and nothing herein will impair, as between the Depositary and its Agent

21

 

Members, the operation of customary practices governing the exercise of the rights of a
holder of any security.

     (4) If (x) the Depositary notifies the Company that it is unwilling or unable to
continue as Depositary for a Global Note and a successor depositary is not appointed by
the Company within 90 days of the notice or (y) an Event of Default has occurred and is
continuing and the Trustee has received a request from the Depositary, the Trustee will
promptly exchange each beneficial interest in the Global Note for one or more Certificated
Notes in authorized denominations having an equal aggregate principal amount registered in
the name of the owner of such beneficial interest, as identified to the Trustee by the
Depositary, and thereupon the Global Note will be deemed canceled. If such Note does not
bear the Restricted Legend, then the Certificated Notes issued in exchange therefor will
not bear the Restricted Legend. If such Note bears the Restricted Legend, then the
Certificated Notes issued in exchange therefor will bear the Restricted Legend, provided
that any Holder of any such Certificated Note issued in exchange for a beneficial interest
in a Temporary Offshore Global Note will have the right upon presentation to the Trustee
of a duly completed Certificate of Beneficial Ownership after the Restricted Period to
exchange such Certificated Note for a Certificated Note of like tenor and amount that does
not bear the Restricted Legend, registered in the name of such Holder.

     (c) Each Certificated Note will be registered in the name of the holder thereof or its
nominee.

     (d) A Holder may transfer a Note (or a beneficial interest therein) to another Person or
exchange a Note (or a beneficial interest therein) for another Note or Notes of any authorized
denomination by presenting to the Trustee a written request therefor stating the name of the
proposed transferee or requesting such an exchange, accompanied by any certification, opinion or
other document required by Section 2.10. The Trustee will promptly register any transfer or
exchange that meets the requirements of this Section by noting the same in the register maintained
by the Trustee for the purpose; provided that

     (x) no transfer or exchange will be effective until it is registered in such register
and

     (y) the Trustee will not be required (i) to issue, register the transfer of or
exchange any Note for a period of 15 days before a selection of Notes to be redeemed or
purchased pursuant to an Offer to Purchase, (ii) to register the transfer of or exchange
any Note so selected for redemption or purchase in whole or in part, except, in the case
of a partial redemption or purchase, that portion of any Note not being redeemed or

22

 

purchased, or (iii) if a redemption or a purchase pursuant to an Offer to Purchase is to
occur after a Regular Record Date but on or before the corresponding Interest Payment
Date, to register the transfer of or
exchange any Note on or after the Regular Record Date and before the date of
redemption or purchase. Prior to the registration of any transfer, the Company, the
Trustee and their agents will treat the Person in whose name the Note is registered as the
owner and Holder thereof for all purposes (whether or not the Note is overdue), and will
not be affected by notice to the contrary.

     From time to time the Company will execute and the Trustee will authenticate additional Notes
as necessary in order to permit the registration of a transfer or exchange in accordance with this
Section.

     No service charge will be imposed in connection with any transfer or exchange of any Note, but
the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than a transfer tax or other similar
governmental charge payable upon exchange pursuant to Section 2.09(b)(4)).

     (e) (1) Global Note to Global Note. If a beneficial interest in a Global Note is transferred
or exchanged for a beneficial interest in another Global Note, the Trustee will (x) record a
decrease in the principal amount of the Global Note being transferred or exchanged equal to the
principal amount of such transfer or exchange and (y) record a like increase in the principal
amount of the other Global Note. Any beneficial interest in one Global Note that is transferred to
a Person who takes delivery in the form of an interest in another Global Note, or exchanged for an
interest in another Global Note, will, upon transfer or exchange, cease to be an interest in such
Global Note and become an interest in the other Global Note and, accordingly, will thereafter be
subject to all transfer and exchange restrictions, if any, and other procedures applicable to
beneficial interests in such other Global Note for as long as it remains such an interest.

     (2) Global Note to Certificated Note. If a beneficial interest in a Global Note is
transferred or exchanged for a Certificated Note, the Trustee will (x) record a decrease
in the principal amount of such Global Note equal to the principal amount of such transfer
or exchange and (y) deliver one or more new Certificated Notes in authorized denominations
having an equal aggregate principal amount to the transferee (in the case of a transfer)
or the owner of such beneficial interest (in the case of an exchange), registered in the
name of such transferee or owner, as applicable.

     (3) Certificated Note to Global Note. If a Certificated Note is transferred or
exchanged for a beneficial interest in a Global Note, the

23

 

Trustee will (x) cancel such
Certificated Note, (y) record an increase in the principal amount of such Global Note
equal to the principal amount of such transfer or exchange and (z) in the event that such
transfer or
exchange involves less than the entire principal amount of the canceled Certificated
Note, deliver to the Holder thereof one or more new Certificated Notes in authorized
denominations having an aggregate principal amount equal to the untransferred or
unexchanged portion of the canceled Certificated Note, registered in the name of the
Holder thereof.

     (4) Certificated Note to Certificated Note. If a Certificated Note is transferred or
exchanged for another Certificated Note, the Trustee will (x) cancel the Certificated Note
being transferred or exchanged, (y) deliver one or more new Certificated Notes in
authorized denominations having an aggregate principal amount equal to the principal
amount of such transfer or exchange to the transferee (in the case of a transfer) or the
Holder of the canceled Certificated Note (in the case of an exchange), registered in the
name of such transferee or Holder, as applicable, and (z) if such transfer or exchange
involves less than the entire principal amount of the canceled Certificated Note, deliver
to the Holder thereof one or more Certificated Notes in authorized denominations having an
aggregate principal amount equal to the untransferred or unexchanged portion of the
canceled Certificated Note, registered in the name of the Holder thereof.

     Section 2.10. Restrictions on Transfer and Exchange. (a) The transfer or exchange of any
Note (or a beneficial interest therein) may only be made in accordance with this Section and
Section 2.09 and, in the case of a Global Note (or a beneficial interest therein), the applicable
rules and procedures of the Depositary. The Trustee shall refuse to register any requested
transfer or exchange that does not comply with the preceding sentence.

     (b) Subject to paragraph (c), the transfer or exchange of any Note (or a beneficial interest
therein) of the type set forth in column A below for a Note (or a beneficial interest therein) of
the type set forth opposite in column B below may only be made in compliance with the certification
requirements (if any) described in the clause of this paragraph set forth opposite in column C
below.

	 	 	 	 	 	 	 
	A	 	B	 	C
	U.S. Global Note

	 	U.S. Global Note
	 	 	(1	)
	U.S. Global Note

	 	Offshore Global Note
	 	 	(2	)
	U.S. Global Note

	 	Certificated Note
	 	 	(3	)
	Offshore Global Note

	 	U.S. Global Note
	 	 	(4	)
	Offshore Global Note

	 	Offshore Global Note
	 	 	(1	)
	Offshore Global Note

	 	Certificated Note
	 	 	(5	)
	Certificated Note

	 	U.S. Global Note
	 	 	(4	)
	Certificated Note

	 	Offshore Global Note
	 	 	(2	)
	Certificated Note

	 	Certificated Note
	 	 	(3	)

24

 

     (1) No certification is required.

     (2) The Person requesting the transfer or exchange must deliver or cause to be
delivered to the Trustee a duly completed Regulation S Certificate; provided that if the
requested transfer or exchange is made by the Holder of a Certificated Note that does not
bear the Restricted Legend, then no certification is required.

     (3) The Person requesting the transfer or exchange must deliver or cause to be
delivered to the Trustee (x) a duly completed Rule 144A Certificate, (y) a duly completed
Regulation S Certificate or (z) a duly completed Institutional Accredited Investor
Certificate, and/or an Opinion of Counsel and such other certifications and evidence as
the Company may reasonably require in order to determine that the proposed transfer or
exchange is being made in compliance with the Securities Act and any applicable securities
laws of any state of the United States; provided that if the requested transfer or
exchange is made by the Holder of a Certificated Note that does not bear the Restricted
Legend, then no certification is required. In the event that (i) the requested transfer
or exchange takes place after the Restricted Period and a duly completed Regulation S
Certificate is delivered to the Trustee or (ii) a Certificated Note that does not bear the
Restricted Legend is surrendered for transfer or exchange, upon transfer or exchange the
Trustee will deliver a Certificated Note that does not bear the Restricted Legend.

     (4) The Person requesting the transfer or exchange must deliver or cause to be
delivered to the Trustee a duly completed Rule 144A Certificate.

     (5) Notwithstanding anything to the contrary contained herein, no such exchange is
permitted if the requested exchange involves a beneficial interest in a Temporary Offshore
Global Note. If the requested transfer involves a beneficial interest in a Temporary
Offshore Global Note, the Person requesting the transfer must deliver or cause to be
delivered to the Trustee (x) a duly completed Rule 144A Certificate or (y) a duly
completed Institutional Accredited Investor Certificate and/or an Opinion of Counsel and
such other certifications and evidence as the Company may reasonably require in order to
determine that the proposed transfer is being made in compliance with the Securities Act
and any applicable securities laws of any state of the United States. If the requested
transfer or exchange involves a beneficial interest in a Permanent Offshore Global Note,
no certification is required and the

25

 

Trustee will deliver a Certificated Note that does
not bear the Restricted Legend.

     (c) No certification is required in connection with any transfer or exchange of any Note (or a
beneficial interest therein)

     (1) after such Note is eligible for resale pursuant to Rule 144 under the Securities
Act (or a successor provision); provided that the Company has provided the Trustee with an
Officers’ Certificate to that effect, and the Company may require from any Person
requesting a transfer or exchange in reliance upon this clause (1) an opinion of counsel
and any other reasonable certifications and evidence in order to support such certificate;
or

     (2) (x) sold pursuant to an effective registration statement, pursuant to the
Registration Rights Agreement or otherwise or (y) which is validly tendered for exchange
into an Exchange Note pursuant to an Exchange Offer.

     Any Certificated Note delivered in reliance upon this paragraph will not bear the Restricted
Legend.

     (d) The Trustee will retain copies of all certificates, opinions and other documents received
in connection with the transfer or exchange of a Note (or a beneficial interest therein), and the
Company will have the right to inspect and make copies thereof at any reasonable time upon written
notice to the Trustee.

     Section 2.11. Temporary Offshore Global Notes. (a) Each Note originally sold by the Initial
Purchasers in reliance upon Regulation S will be evidenced by one or more Offshore Global Notes
that bear the Temporary Offshore Global Note Legend.

     (b) An owner of a beneficial interest in a Temporary Offshore Global Note (or a Person acting
on behalf of such an owner) may provide to the Trustee (and the Trustee will accept) a duly
completed Certificate of Beneficial Ownership at any time after the Restricted Period (it being
understood that the Trustee will not accept any such certificate during the Restricted Period).
Promptly after acceptance of a Certificate of Beneficial Ownership with respect to such a
beneficial interest, the Trustee will cause such beneficial interest to be exchanged for an
equivalent beneficial interest in a Permanent Offshore Global Note, and will (x) permanently reduce
the principal amount of such Temporary Offshore Global Note by the amount of such beneficial
interest and (y) increase the principal amount of such Permanent Offshore Global Note by the amount
of such beneficial interest.

26

 

     (c) Notwithstanding paragraph (b), if after the Restricted Period any Initial Purchaser owns a
beneficial interest in a Temporary Offshore Global Note, such Initial Purchaser may, upon written
request to the Trustee accompanied by a certification as to its status as an Initial Purchaser,
exchange such beneficial interest for an equivalent beneficial interest in a Permanent Offshore
Global Note, and the Trustee will comply with such request and will (x) permanently reduce the
principal amount of such Temporary Offshore Global Note by the amount of
such beneficial interest and (y) increase the principal amount of such Permanent Offshore
Global Note by the amount of such beneficial interest.

     (d) Notwithstanding anything to the contrary contained herein, any owner of a beneficial
interest in a Temporary Offshore Global Note shall not be entitled to receive payment of principal
or interest on such beneficial interest or other amounts in respect of such beneficial interest
until such beneficial interest is exchanged for an interest in a Permanent Offshore Global Note or
transferred for an interest in another Global Note or a Certificated Note.

ARTICLE 3

Redemption; Offer to Purchase

     Section 3.01. Optional Redemption. The Company may redeem the Notes, at its option, at any
time and from time to time, in whole or in part, at a redemption price equal to the greater of (1)
the principal amount of the Notes being redeemed or (2) the sum of the present values of the
remaining scheduled payments of the principal and interest (other than accrued interest) on the
Notes being redeemed, discounted to the redemption date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points, plus in the
case of both (1) and (2), any accrued and unpaid interest to, but not including, the redemption
date.

     Section 3.02. Method and Effect of Redemption. (a) If the Company elects to redeem Notes, it
must notify the Trustee of the redemption date and the principal amount of Notes to be redeemed by
delivering an Officers’ Certificate at least 45 days before the redemption date (unless a shorter
period is satisfactory to the Trustee). If the Company elects to redeem less than all of the
Notes, and such Notes are at the time represented by a Global Note, then the Trustee will select
the Notes to be redeemed on a pro rata basis or by another method the Trustee considers
appropriate. If the Company elects to redeem less than all of the Notes, and such Notes are not
represented by a Global Note, then the Trustee will select the particular Notes to be redeemed in a
manner it deems appropriate. If fewer than all of the Notes are being redeemed, the Officers’
Certificate must also specify a record date not less than 15 days after the date of the notice of
redemption is given to the Trustee. The Trustee will notify the Company promptly of the Notes or
portions of Notes to be called for redemption. Notice of

27

 

any redemption will be mailed by the
Company or at the Company’s request, by the Trustee in the name and at the expense of the Company
at least 30 days but not more than 60 days before the date of redemption to each Holder of the
Notes to be redeemed.

     (b) The notice of redemption will identify the Notes to be redeemed and will include or state
the following:

     (i) the redemption date;

     (ii) the redemption price, including the portion thereof representing any accrued
interest;

     (iii) the place or places where Notes are to be surrendered for redemption;

     (iv) Notes called for redemption must be so surrendered in order to collect the
redemption price;

     (v) on the redemption date the redemption price will become due and payable on Notes
called for redemption, and interest on Notes called for redemption will cease to accrue on
and after the redemption date;

     (vi) if any Note is redeemed in part, on and after the redemption date, upon
surrender of such Note, new Notes equal in principal amount to the unredeemed portion will
be issued; and

     (vii) if any Note contains a CUSIP or CINS number, no representation is being made as
to the correctness of the CUSIP or CINS number either as printed on the Notes or as
contained in the notice of redemption and that the Holder should rely only on the other
identification numbers printed on the Notes.

     (c) Once notice of redemption is sent to the Holders, Notes called for redemption become due
and payable at the redemption price on the redemption date, and upon surrender of the Notes called
for redemption, the Company shall redeem such Notes at the redemption price. Unless the Company
defaults in payment of the redemption price, on and after the date of redemption, interest will
cease to accrue on such Notes or the portions called for redemption. Upon surrender of any Note
redeemed in part, the Holder will receive a new Note equal in principal amount to the unredeemed
portion of the surrendered Note.

     Section 3.03. Repurchase of Notes upon a Change of Control. (a) Not later than 30 days
following the occurrence of a Change of Control, the Company will make an Offer to Purchase all
outstanding Notes at a purchase price equal to

28

 

101% of the principal amount plus accrued and unpaid
interest to, but not including, the date of purchase.

     (b) An “Offer to Purchase” means an offer by the Company to purchase Notes as required by the
Indenture. An Offer to Purchase must be made by written offer sent to the Holders. The Company
will notify the Trustee at least 15 days (or such shorter period as is acceptable to the Trustee)
prior to sending the offer to Holders of its obligation to make an Offer to Purchase, and the offer
will be sent by the Company or, at the Company’s request and provision of such offer
information to the Trustee, by the Trustee in the name and at the expense of the Company.

     (c) The offer must include or state the following as to the terms of the Offer to Purchase:

     (i) the principal amount of Notes subject to the offer (the “purchase amount”);

     (ii) the purchase price, including the portion thereof representing accrued interest;

     (iii) an expiration date (the “expiration date”) not less than 30 days or more than
60 days after the date of the offer, and a settlement date for purchase (the “purchase
date”) not more than five Business Days after the expiration date;

     (iv) information concerning the business of the Company and its Subsidiaries which
the Company in good faith believes will enable the Holders to make an informed decision
with respect to the Offer to Purchase, at a minimum to include

     (A) the most recent annual and quarterly financial statements and
“Management’s Discussion and Analysis of Financial Condition and Results of
Operations” for the Company, and

     (B) a description of material developments in the Company’s business
subsequent to the date of the latest of the financial statements (including a
description of the events requiring the Company to make the Offer to Purchase);

     (v) a Holder may tender all or any portion of its Notes pursuant to an Offer to
Purchase, subject to the requirement that any portion of a

29

 

Note tendered must be in a
minimum principal amount of $2,000 and multiples of $1,000 in excess thereof;

     (vi) the place or places where Notes are to be surrendered for tender pursuant to the
Offer to Purchase;

     (vii) each Holder electing to tender a Note pursuant to the offer will be required to
surrender such Note at the place or places specified in the offer prior to the close of
business on the expiration date

     (such Note being, if the Company or the Trustee so requires, duly endorsed or
accompanied by a duly executed written instrument of transfer);

     (viii) interest on any Note not tendered, or tendered but not purchased by the
Company pursuant to the Offer to Purchase, will continue to accrue;

     (ix) on the purchase date, the purchase price will become due and payable on each
Note accepted for purchase pursuant to the Offer to Purchase, and interest on Notes
purchased will cease to accrue on and after, but not including, the purchase date;

     (x) Holders are entitled to withdraw Notes tendered up to the close of business on
the expiration date by giving notice, which must be received by the Company or the Trustee
not later than the close of business on the expiration date, setting forth the name of the
Holder, the principal amount of the tendered Notes, the certificate number of the tendered
Notes and a statement that the Holder is withdrawing all or a portion of the tender;

     (xi) if any Note is purchased in part, new Notes equal in principal amount to the
unpurchased portion of the Note will be issued; and

     (xii) if any Note contains a CUSIP or CINS number, no representation is being made as
to the correctness of the CUSIP or CINS number either as printed on the Notes or as
contained in the offer and that the Holder should rely only on the other identification
numbers printed on the Notes.

     (d) Prior to the purchase date, the Company will accept tendered Notes for purchase as
required by the Offer to Purchase and deliver to the Trustee all Notes so accepted together with an
Officers’ Certificate specifying which Notes have been accepted for purchase. On the purchase
date, the purchase price will become due and payable on each Note accepted for purchase pursuant to
the Offer to Purchase, and interest on Notes purchased will cease to accrue on and after the
purchase date. The Trustee will promptly return to Holders any Notes not

30

 

accepted for purchase and
send to Holders new Notes equal in principal amount to any unpurchased portion of any Notes
accepted for purchase in part.

     (e) The Company will comply with Rule 14e-1 under the Exchange Act and all other applicable
laws in making any Offer to Purchase. To the extent that the provisions of any securities laws or
regulations conflict with the Change of Control provisions of the Indenture, the Company will
comply with the applicable securities laws and regulations and will not be deemed to have breached
its
obligations under the Change of Control provisions of the Indenture by virtue of such
compliance.

     (f) The Company will not be required to make an Offer to Purchase upon a Change of Control if
(i) a third party makes the Offer to Purchase in the manner, at the times and otherwise in
compliance with the requirements set forth in the Indenture applicable to an Offer to Purchase made
by the Company and purchases all Notes validly tendered and not withdrawn under such Offer to
Purchase or (ii) notice of redemption has been given pursuant to the Section 3.02 of the Indenture
unless and until there is a Default in payment of the applicable redemption price. Notwithstanding
anything to the contrary contained herein, an Offer to Purchase may be made in advance of a Change
of Control, conditioned upon the consummation of such Offer to Purchase, if a definitive agreement
is in place for the Offer to Purchase at the time the Offer to Purchase is made.

ARTICLE 4

Covenants

     Section 4.01. Payment of Notes. (a) The Company agrees to pay the principal of and interest
on the Notes on the dates and in the manner provided in the Notes and the Indenture. Not later
than 10:00 A.M. (New York City time) on the due date of any principal of or interest on any Notes,
or any redemption or purchase price of the Notes, the Company will deposit with the Trustee (or
Paying Agent) money in immediately available funds sufficient to pay such amounts, provided that if
the Company or any Affiliate of the Company is acting as Paying Agent, it will, on or before each
due date, segregate and hold in a separate trust fund for the benefit of the Holders a sum of money
sufficient to pay such amounts until paid to such Holders or otherwise disposed of as provided in
the Indenture. In each case the Company will promptly notify the Trustee of its compliance with
this paragraph.

     (b) An installment of principal or interest will be considered paid on the date due if the
Trustee (or Paying Agent, other than the Company or any Affiliate of the Company) holds on that
date money designated for and sufficient to pay the installment. If the Company or any Affiliate
of the Company acts as Paying

31

 

Agent, an installment of principal or interest will be considered
paid on the due date only if paid to the Holders.

     (c) The Company agrees to pay interest on overdue principal, and, to the extent lawful,
overdue installments of interest at the rate per annum specified in the Notes.

     (d) Payments of principal, premium, if any, and interest on Global Notes will be made to the
Depositary by wire transfer, in same day funds. The
Company has the option, however, to pay interest by check mailed to the address of the Person
in whose name the applicable Note is registered at the close of business on the relevant Regular
Record Date as shown on the applicable Register.

     Section 4.02. Maintenance of Office or Agency. The Company will maintain an office or agency
where Notes may be surrendered for registration of transfer or exchange or for presentation for
payment and where notices and demands to or upon the Company in respect of the Notes and the
Indenture may be served. The Company hereby initially designates the Corporate Trust Office of the
Trustee as such office of the Company. The Company will give prompt written notice to the Trustee
of the location, and any change in the location, of such office or agency. If at any time the
Company fails to maintain any such required office or agency or fails to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served to
the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be surrendered or presented for any of such purposes and may from time to time
rescind such designations. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.

     Section 4.03. Existence. The Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its existence and the existence of each of its Material
Subsidiaries in accordance with their respective organizational documents, and the material rights,
licenses and franchises of the Company and each Material Subsidiary, provided that the Company is
not required to preserve any such right, license or franchise, or the existence of any Material
Subsidiary, or preserve its corporate formation, if the Company shall determine that the
maintenance or preservation thereof is no longer desirable in the conduct of the business of the
Company and its Subsidiaries taken as a whole; and provided further that this Section does not
prohibit any transaction otherwise permitted by Article 5.

     Section 4.04. Payment of Taxes and other Claims. The Company will pay or discharge, and
cause each of its Material Subsidiaries to pay or discharge

32

 

before the same become delinquent (i)
all material taxes, assessments and governmental charges levied or imposed upon the Company or any
Material Subsidiary or its income or profits or property, and (ii) all material lawful claims for
labor, materials and supplies that, if unpaid, might by law become a Lien upon the property of the
Company or any Material Subsidiary, other than any such tax, assessment, charge or claim the
amount, applicability or validity of which is being contested in good faith by appropriate
negotiations or proceedings or where the
failure to effect such payment or discharge is not adverse in any material respect to the
Holders.

     Section 4.05. Maintenance of Properties and Insurance. (a) The Company will cause all
properties used or useful in the conduct of its business or the business of any of its Material
Subsidiaries to be maintained and kept in good condition, repair and working order as in the
judgment of the Company may be necessary so that the business of the Company and its Material
Subsidiaries may be properly and advantageously conducted at all times; provided that nothing in
this Section prevents the Company or any Material Subsidiary from discontinuing the use, operation
or maintenance of any of such properties or disposing of any of them, if such discontinuance or
disposal is, in the judgment of the Company, desirable in the conduct of the business of the
Company and its Subsidiaries taken as a whole.

     (b) The Company will provide or cause to be provided, for itself and its Material
Subsidiaries, insurance (including appropriate self-insurance) against loss or damage of the kinds
customarily insured against by corporations similarly situated and owning like properties,
including, but not limited to, products liability insurance and public liability insurance, with
reputable insurers, in such amounts, with such deductibles and by such methods as are customary for
corporations similarly situated in the industry in which the Company and its Material Subsidiaries
are then conducting business.

     Section 4.06. Limitation on Subsidiary Debt. (a) The Company will not permit any Material
Subsidiary of the Company that is not a Subsidiary Guarantor to create, incur, issue, assume,
Guarantee or otherwise become liable for any Debt (any Debt of a Subsidiary that is not a
Subsidiary Guarantor, “Subsidiary Debt”), without guaranteeing the payment of the principal of,
premium, if any, and interest on the Notes pursuant to Article 10.

     (b) The foregoing restriction set forth in paragraph (a) of this Section 4.06 shall not apply
to, and there shall be excluded from Indebtedness in any computation under such restriction,
Subsidiary Debt constituting:

     (i) Debt of a Person who in connection with the Company’s acquisition of the stock or
equity of such Person becomes a Material Subsidiary, which such Debt existed before the
time of the Company’s

33

 

acquisition of such Person, was not created in anticipation thereof
and is not Guaranteed by any other Subsidiary of the Company;

     (ii) purchase money Indebtedness (including Capital Leases) to the extent permitted
under Section 4.08(a)(ii);

     (iii) Debt owed to the Company or any Subsidiary;

     (iv) Debt outstanding on the date of the Indenture or any extension, renewal,
replacement or refunding (collectively, “refinancing”) of any Indebtedness existing on the
date of the Indenture or referred to in Section 4.06(b)(i) or 4.06(b)(ii); provided that
the principal amount of the new Debt shall not exceed the principal amount of the Debt
being refinanced plus any premium, including tender premium, or fees or transaction costs
payable in connection with any such refinancing;

     (v) Debt of an Asset Securitization Subsidiary, a Special Purpose Vehicle Subsidiary
or a Foreign Subsidiary or any Parent Holding Company Guarantee;

     (vi) Debt (other than Debt of Asset Securitization Subsidiaries) consisting of the
obligation to repurchase mortgages and related assets or secured by mortgages and related
assets in connection with other mortgage warehouse financing arrangements;

     (vii) Debt incurred in connection with any Servicing Advance Facility entered into
with Government-Sponsored Enterprises; and

     (viii) Debt that (together without duplication with the aggregate principal amount of
secured Debt then outstanding under Section 4.08(a)(xvii)) does not exceed the greater of
(x) $250,000,000 or (y) 15% of Tangible Net Worth.

     (c) For purposes of determining compliance with this covenant, in the event that an item of
Subsidiary Debt meets the criteria of more than one of the categories of permitted Subsidiary Debt
described in Section 4.06(b)(i) through (viii), the Company, in its sole discretion, may classify
or reclassify such item of Subsidiary Debt in any manner that complies with this covenant and the
Company may divide and classify an item of Subsidiary Debt in more than one of the types of
Subsidiary Debt described in Section 4.06(b)(i) through (viii). Accrual of interest, the accretion
of accreted value and the payment of interest in the form of additional Subsidiary Debt will not be
deemed to be an incurrence of Subsidiary Debt for purposes of this covenant.

     Section 4.07. Limitation on Restricted Payments. (a) The Company shall not, directly or
indirectly, declare or pay any dividend, or make any distribution

34

 

on account of its Capital Stock,
or purchase, repurchase, redeem, acquire or retire for value any such Capital Stock (such
transactions being referred to herein as “Restricted Payments”), if, after giving effect to such
Restricted Payment, the Company’s Debt/Tangible Equity Ratio, calculated as of the most recently
completed month end for which internal financial statements are available, would exceed 6.0 to 1.

     (b) Notwithstanding the foregoing, the foregoing provision shall not prohibit the following
actions:

     (i) the payment of any dividend within 60 days after the date of declaration thereof,
if at such date of declaration such payment was permitted by the provisions of the
Indenture;

     (ii) the making of a Restricted Payment out of the proceeds of a substantially
concurrent issuance and sale for cash (other than to a Subsidiary) of the Company’s Equity
Interests (other than Disqualified Stock);

     (iii) the making of a Restricted Payment by the Company in its Equity Interests
(other than Disqualified Stock) or in options, warrants or other rights to purchase such
Equity Interests;

     (iv) (y) a Restricted Payment to pay for the repurchase, retirement or other
acquisition or retirement for value or of the Company’s common Equity Interests or (z) the
payment of cash in settlement of any Equity Interest that by its terms may, or is required
to, be settled in cash, in each case, held by any future, present or former employee,
director or consultant of the Company or any of the Company’s Subsidiaries pursuant to any
management equity plan or stock option plan or any other management or employee benefit
plan or other agreement or arrangement; provided that the aggregate cash consideration
paid therefore or in settlement thereof in any twelve-month period after the Issue Date
does not exceed an aggregate amount of $5.0 million (with unused amounts carried over to
future periods up to $10.0 million in any twelve-month period);

     (v) repurchases of Equity Interests deemed to occur upon exercise of stock options,
warrants or other securities if such Equity Interests represent a portion of the exercise
price of such options or warrants;

     (vi) the payment of cash in lieu of the issuance of fractional shares upon the
exercise of options or warrants or upon the conversion or exchange of Capital Stock of any
such Person; and

35

 

     (vii) the purchase by the Company of fractional shares arising out of stock
dividends, splits or combinations or business combinations or other similar transactions.

     Section 4.08. Limitations on Liens. (a) The Company will not, and will not permit any
Material Subsidiary of the Company to, incur any Lien (the
“Initial Lien”) to secure Debt without equally and ratably securing the Notes except:

     (i) deposits under worker’s compensation, unemployment insurance and social security
laws or to secure statutory obligations or surety or appeal bonds or performance or other
similar bonds in the ordinary course of business, or statutory Liens of landlords,
carriers, warehousemen, mechanics and materialmen and other similar Liens, in respect of
liabilities which are not yet due or which are being contested in good faith, Liens for
taxes not yet due and payable, and Liens for taxes due and payable, the validity or amount
of which is currently being contested in good faith by appropriate proceedings and as to
which foreclosure and other enforcement proceedings shall not have been commenced (unless
fully bonded or otherwise effectively stayed);

     (ii) purchase money Liens granted to the vendor or Person financing the acquisition
or development of property, plant or equipment if:

     (A) limited to the specific assets acquired and, in the case of tangible
assets, other property which is an improvement to or is acquired for specific
use in connection with such acquired property or which is real property being
improved by such acquired property; and

     (B) the Debt secured by such Lien is the unpaid balance of the acquisition
cost of the specific assets on which the Lien is granted;

     (iii) Liens and/or Revolving Liens upon real and/or personal property, each of which
Liens or Revolving Liens existed before the time of the Company’s acquisition of such
property or the Company owning such property and was not created in anticipation thereof;
provided that no such Lien or Revolving Lien shall extend to or cover any property of the
Company or a Material Subsidiary other than the respective property so acquired and
improvements thereon;

     (iv) Liens and Revolving Liens upon real and/or personal property of a Person who in
connection with the Company’s acquisition of the stock or equity of such Person becomes a
Material Subsidiary, each of

36

 

which Liens or Revolving Liens existed before the time of the
Company’s acquisition of such Person and was not created in anticipation thereof; provided
that no such Lien shall extend to or cover any property of the Company or a Material
Subsidiary other than of the Material Subsidiary (and its acquired Affiliates) so
acquired;

     (v) Liens arising out of attachments, judgments or awards as to which an appeal or
other appropriate proceedings for contest or review are promptly commenced (and as to
which foreclosure and other enforcement proceedings

     (A) shall not have been commenced (unless fully bonded or otherwise
effectively stayed) or

     (B) in any event shall be promptly fully bonded or otherwise effectively
stayed);

     (vi) Liens securing Debt of any Material Subsidiary owing to the Company or any
Material Subsidiary;

     (vii) Liens securing Debt and related Obligations, or securing interests in asset
sale transactions which could alternatively be characterized as Debt, or securing
obligations to pay rent incurred in connection with asset securitization transactions,
which Debt or securitized assets are not reported on the Company’s consolidated balance
sheet or that of the Company’s Material Subsidiaries, and which Liens cover only the
assets securitized in the applicable asset securitization transaction or other assets
identified in connection with an asset securitization transaction, and Liens on the stock
or equity of any special purpose vehicle the sole purpose of which is to effectuate such
asset securitization transaction;

     (viii) Liens securing Debt and related Obligations of an Asset Securitization
Subsidiary issued in asset securitization transactions, which Debt or securitized assets
are reported on the Company’s consolidated balance sheet or that of the Company’s Material
Subsidiaries, and which Liens cover only the assets securitized in the applicable asset
securitization transaction or other assets identified in connection with an asset
securitization transaction, and Liens on the stock of such Asset Securitization
Subsidiary;

     (ix) Liens covering only the property or other assets of any Special Purpose Vehicle
Subsidiary and securing only the Debt of any such Special Purpose Vehicle Subsidiary;

37

 

     (x) other Liens incidental to the conduct of the Company’s business or the ownership
of the Company’s property and other assets, which do not secure any Debt and did not
otherwise arise in connection with the borrowing of money or the obtaining of advances or
credit and which do not, in the aggregate, materially detract from the value of the
Company’s property or other assets or materially impair the use thereof in the operation
of the Company’s business;

     (xi) Liens covering only (a) the property, Capital Stock, or other assets of any
Foreign Subsidiary or (b) the property or other assets (but not Capital Stock) of the
Parent Holding Company with respect to any Foreign Subsidiary; provided that in the case
of (b), the Liens secure Debt only of the relevant Foreign Subsidiary and, if applicable,
a Parent Holding Company Guarantee permitted to be incurred under the Indenture;

     (xii) Liens existing prior to the date of the Indenture;

     (xiii) Liens on cash of Atrium Reinsurance Corporation and its successors and assigns
in connection with its reinsurance business;

     (xiv) any extension, renewal or replacement of Liens referred to in Section
4.08(a)(ii), (iii), (iv)and (xii); provided that any such extension, renewal or
replacement Lien shall be limited to the property covered by the Lien extended, renewed or
replaced and that the obligation secured by such new Lien shall not be greater in amount
than the Obligations secured by the Lien extended, renewed or replaced (plus any premium,
including tender premium, or fees or transaction costs payable in connection with any such
refinancing);

     (xv) Liens incurred in the ordinary course of business to secure Debt utilized to
fund net investment in leases and leased vehicles, mortgages and related assets and other
assets under management programs which shall not include Liens on mortgage servicing
rights;

     (xvi) Liens on mortgages and related assets securing Obligations described under
Section 4.06(b)(vi); and

     (xvii) Liens to secure Debt not otherwise permitted by any of Section 4.08(a)(i)
through (xvi) if, at the time any such Liens are incurred, the aggregate amount of Debt
secured by such Liens (together without duplication with the aggregate principal amount of
Subsidiary Debt then outstanding under Section 4.06(b)(viii)) does not exceed the greater
of (x) $250,000,000 or (y) 15% of Tangible Net Worth.

38

 

     (b) Any Lien created for the benefit of the Holders of the Notes pursuant to clause (a) of
this Section 4.08 shall provide by its terms that such Lien shall be automatically and
unconditionally released and discharged, without any additional action on the part of a Holder of
Notes, upon the release and discharge of the Initial Lien.

     Section 4.09. Financial Reports. (a) The Company will file with the Trustee, such
information, documents and other reports that are required to be filed with the Commission pursuant
to Section 13 or 15(d) of the Exchange Act
within 15 days after the same would be required to be filed with the Commission. To the
extent any such information, documents and reports are filed by the Company electronically on the
Commission’s Electronic Data Gathering and Retrieval System (or any successor system), and an
automatic e-mail notification thereof to the Trustee is generated, such information, documents and
reports shall be deemed filed with the Trustee. Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall
not constitute constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of its covenants
hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).

     (b) If at any time the Company is not subject to the reporting requirements of Section 13 or
15(d) of the Exchange Act, the Company must provide the Trustee with (and the Trustee shall
promptly make available to Holders of the Notes) within 15 days after the time periods specified in
those sections for a registrant that is not an accelerated filer or a large accelerated filer:

     (1) all quarterly and annual reports that would be required to be filed with the
Commission on Forms 10-Q and 10-K if the Company were required to file such reports,
including a “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” and, with respect to annual information only, a report thereon by the
Company’s certified independent accountants, and

     (2) all current reports that would be required to be filed with the Commission on
Form 8-K if the Company were required to file such reports.

     In addition, whether or not required by the Commission, the Company will, if the Commission
will accept the filing, file a copy of all of the information and reports referred to in clauses
(1) and (2) with the Commission for public availability within the time periods specified in the
Commission’s rules and regulations for a registrant that is not an accelerated filer or a large
accelerated filer (unless the Company is required to file reports under the Exchange Act and are an
accelerated filer or a large accelerated filer).

39

 

     (c) Any failure to comply with this covenant will be automatically cured when the Company
files all required reports with the Commission.

     (d) For so long as any of the Notes remain outstanding and constitute “restricted securities”
under Rule 144, the Company will furnish to the Holders of the Notes and prospective investors,
upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.

     (e) All obligors on the Notes will comply with Section 314(a) of the Trust Indenture Act.

     Section 4.10. Debt/Tangible Equity Ratio. The Company shall maintain, as of the last day of
each fiscal quarter, a Debt/Tangible Equity Ratio of not more than 8.5 to 1.

     Section 4.11. Reports to Trustee. (a) The Company will deliver to the Trustee within 120 days
after the end of each fiscal year of the Company, commencing with the fiscal year ending December
31, 2010, a certificate from the principal executive, financial or accounting officer of the
Company stating that the officer has conducted or supervised a review of the activities of the
Company and its Subsidiaries and their performance under the Indenture and that, based upon such
review, to the best of his or her knowledge, the Company has fulfilled its obligations hereunder
or, if there has been a Default, specifying the Default and its nature and status.

     (b) The Company will deliver to the Trustee, as soon as reasonably possible and in any event
within 30 days after the Company becomes aware of the occurrence of a Default, an Officers’
Certificate setting forth the details of the Default, and the action which the Company proposes to
take with respect thereto.

     (c) The Company will notify the Trustee when any Notes are listed on any national securities
exchange and of any delisting.

     Section 4.12. Suspension of Certain Covenants. If on any date following the Issue Date (i)
the Notes have Investment Grade Ratings from two out of three of the Rating Agencies, and (ii) no
Default or Event of Default has occurred and is continuing under the Indenture (the occurrence of
the events described in the foregoing clauses (i) and (ii) being collectively referred to as a
“Covenant Suspension Event”), the Company and its Material Subsidiaries, as applicable, will not be
subject to the covenants in Sections 4.06 and 4.07 (collectively, the “Suspended Covenants”).

     In the event that the Company and its Material Subsidiaries are not subject to the Suspended
Covenants under the Indenture for any period of time as a result of the foregoing, and on any
subsequent date (the “Reversion Date”) one or more of the Rating Agencies (a) withdraw their
Investment Grade Rating or downgrade

40

 

the rating assigned to the Notes below an Investment Grade Rating (leaving less than two of
the Rating Agencies with an Investment Grade Rating for the Notes) and/or (b) the Company enters
into an agreement to effect a transaction that would result in a Change of Control and one or more
of the Rating Agencies indicate that if consummated, such transaction (alone or together with any
related recapitalization or refinancing transactions) would cause such Rating Agency to withdraw
its Investment Grade Rating or downgrade the ratings assigned to the Notes below an Investment
Grade Rating (in either case leaving less than two of the Rating Agencies with an Investment Grade
Rating for the Notes) and/or (c) a Default or Event of Default has occurred and is continuing under
the Indenture, then the Company and its Material Subsidiaries will thereafter again be subject to
the Suspended Covenants under the Indenture with respect to future events, including, without
limitation, a proposed transaction described in clause (b) above.

     The period of time between the Covenant Suspension Event and the Reversion Date is referred to
as the “Suspension Period.” In the event of any such reinstatement, no action taken or omitted to
be taken by the Company or any of its Material Subsidiaries prior to such reinstatement will give
rise to a Default or Event of Default under the Indenture with respect to Notes; provided that all
Debt of Material Subsidiaries incurred during the Suspension Period will be classified to have been
incurred or issued pursuant to Section 4.06(b)(iv)

ARTICLE 5

Consolidation, Merger or Sale of Assets

     Section 5.01. Consolidation, Merger or Sale of Assets. (a) The Company will not (i)
consolidate with or merge with or into any Person, or (ii) sell, convey, transfer, or otherwise
dispose of all or substantially all of its assets as an entirety or substantially an entirety, in
one transaction or a series of related transactions, to any Person, or (iii) permit any Person to
merge with or into the Company; unless

     (1) either (x) the Company is the continuing Person or (y) the resulting, surviving
or transferee Person is a corporation organized and validly existing under the laws of the
United States of America or any jurisdiction thereof and expressly assumes by supplemental
indenture all of the obligations of the Company under the Indenture, the Notes and the
Registration Rights Agreement;

     (2) immediately after giving effect to the transaction, no Default has occurred and
is continuing;

     (3) the Company’s Debt/Tangible Equity Ratio is not more than 8.5 to 1 as of the most
recently completed month end for which

41

 

internal financial statements are available,
calculated after giving effect to the transaction on a pro forma basis; and

     (4) the Company delivers to the Trustee an officers’ certificate stating that the
consolidation, merger or transfer and the supplemental indenture (if any) comply with the
Indenture and an opinion of counsel stating that the consolidation, merger or transfer
complies with clause (1) above and the supplemental indenture (if any) complies with the
Indenture;

provided, that (x) the foregoing does not apply to any sales, conveyances, transfers or other
dispositions from any of the Company’s Subsidiaries to the Company or one of the Company’s
Subsidiaries and (y) clauses (2) and (3) do not apply (i) to the consolidation or merger of the
Company with or into a Wholly Owned Subsidiary or the consolidation or merger of a Wholly Owned
Subsidiary with or into the Company or (ii) if, in the good faith determination of the Company’s
Board of Directors, whose determination is evidenced by a Board Resolution, the sole purpose of the
transaction is to change the Company’s jurisdiction of incorporation.

     (b) The Company shall not lease all or substantially all of its assets, whether in one
transaction or a series of transactions, to one or more other Persons (other than to the Company or
the Company’s Subsidiaries).

     (c) Upon the consummation of any transaction effected in accordance with these provisions, if
the Company is not the continuing Person, the resulting, surviving or transferee Person will
succeed to, and be substituted for, and may exercise every right and power of, the Company under
the Indenture and the Notes with the same effect as if such successor Person had been named as the
Company in the Indenture. Upon such substitution, except in the case of a sale, conveyance,
transfer or disposition of less than all the Company’s assets or in the case of a sale, conveyance,
transfer or disposition of all or substantially all of the Company’s assets to a Subsidiary, the
Company will be released from its obligations under the Indenture and the Notes.

ARTICLE 6

Default and Remedies

     Section 6.01. Events of Default. (a) The following shall constitute Events of Default with
respect to the Notes:

     (i) Default for a period of 30 days in payment of any interest on the Notes when due;

42

 

     (ii) Default in payment of principal of (or premium, if any, on) the Notes;

     (iii) the Company’s failure to make an Offer to Purchase and thereafter accept and
pay for Notes tendered when and as required pursuant to Section 3.03 or to comply with
Article 5;

     (iv) the Company defaults in the performance of any other covenant in the Indenture
with respect to the Notes, including violations of the other covenants included in Article
4, continued for 90 days after written notice to the Company by the Trustee or by the
Holders of at least 25% in aggregate principal amount of the Notes; and

     (v) an involuntary case or other proceeding is commenced against the Company or any
Material Subsidiary with respect to it or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of it or any substantial part of
its property, and such involuntary case or other proceeding remains undismissed and
unstayed for a period of 60 days; or an order for relief is entered against the Company or
any Material Subsidiary under the federal bankruptcy laws as now or hereafter in effect;

     (vi) the Company or any of its Material Subsidiaries (1) commences a voluntary case
under any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or consents to the entry of an order for relief in an involuntary case under any
such law, (2) consents to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company
or any of its Material Subsidiaries or for all or substantially all of the property and
assets of the Company or any of its Material Subsidiaries or (3) effects any general
assignment for the benefit of creditors (an event of default specified in clause (v) or
(vi) a “bankruptcy default”).

     (b) Notwithstanding the foregoing, the Company may cure the covenant described in Section 4.10
by being in compliance with the ratio described thereunder as of any date within 45 days following
the last day of the applicable fiscal quarter.

     Section 6.02. Acceleration. (a) If an Event of Default, other than a bankruptcy default with
respect to the Company, shall occur and be continuing, the Trustee or the Holders of at least 25%
in aggregate principal amount of the outstanding Notes, by written notice to the Company (and to
the Trustee if the notice is given by the Holders), may, and the Trustee at the request of such
Holders shall, declare the principal and accrued interest of all of the Notes to be

43

 

due and payable
immediately. If a bankruptcy default occurs with respect to the Company, the principal of and
accrued interest on the Notes then outstanding will
become immediately due and payable without any declaration or other act on the part of the
Trustee or any Holder.

     (b) The Holders of a majority in principal amount of the outstanding Notes by written notice
to the Company and to the Trustee may rescind and annul a declaration of acceleration and its
consequences if:

     (1) all existing Events of Default, other than the nonpayment of the principal of, premium, if
any, and interest on the Notes that have become due solely by the declaration of acceleration, have
been cured or waived, and

     (2) the rescission would not conflict with any judgment or decree of a court of competent
jurisdiction.

     Section 6.03. Other Remedies. If an Event of Default occurs and is continuing, the Trustee
may pursue, in its own name or as trustee of an express trust, any available remedy by proceeding
at law or in equity to collect the payment of principal of and interest on the Notes or to enforce
the performance of any provision of the Notes or the Indenture. The Trustee may maintain a
proceeding even if it does not possess any of the Notes or does not produce any of them in the
proceeding.

     Section 6.04. Modification and Waiver. Except as otherwise provided in Sections 6.02, 6.07
and 9.02, the Holders of a majority in principal amount of the outstanding Notes may on behalf of
all the Holders of the Notes waive the compliance with certain covenants or waive any past or
existing Default except:

     (i) a Default in payment of the principal of (or premium, if any) or interest on the
Notes or

     (ii) a Default in respect of a covenant or provision of the Indenture which cannot be
amended or modified without the consent of the Holder of each outstanding Note.

     Upon such waiver, the Default will cease to exist, and any Event of Default arising therefrom
will be deemed to have been cured, but no such waiver will extend to any subsequent or other
Default or impair any right consequent thereon.

     Section 6.05. Control by Majority. The Holders of a majority in aggregate principal amount
of Notes then outstanding may direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee or exercising any trust or power conferred on the Trustee.
However, the Trustee may refuse to follow any direction that conflicts with law or the Indenture,
that

44

 

may involve the Trustee in personal liability, or that the Trustee determines in good faith
may be unduly prejudicial to the rights of Holders of Notes not joining
in the giving of such direction, and may take any other action it deems proper that is not
inconsistent with any such direction received from the Holders of a majority in aggregate principal
amount of Notes then outstanding.

     Section 6.06. Limitation on Suits. A Holder may not institute any proceeding, judicial or
otherwise, with respect to the Indenture or the Notes, or for the appointment of a receiver or
trustee, or for any other remedy under the Indenture or the Notes, unless:

     (a) the Holder has previously given to the Trustee written notice of a continuing Event of
Default;

     (b) Holders of at least 25% in aggregate principal amount of outstanding Notes have made
written request to the Trustee to institute proceedings in respect of the Event of Default in its
own name as Trustee under the Indenture;

     (c) Holders have offered to the Trustee indemnity reasonably satisfactory to the Trustee
against any costs, liabilities or expenses to be incurred in compliance with such request;

     (d) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity
has failed to institute any such proceeding; and

     (e) during such 60-day period, the Holders of a majority in aggregate principal amount of the
outstanding Notes have not given the Trustee a direction that is inconsistent with such written
request.

     Section 6.07. Rights of Holders to Receive Payment. Notwithstanding anything to the
contrary, the right of a Holder of a Note to receive payment of principal of or interest on its
Note on or after the Stated Maturities thereof, or to bring suit for the enforcement of any such
payment on or after such respective dates, may not be impaired or affected without the consent of
that Holder.

     Section 6.08. Collection Suit by Trustee. If an Event of Default in payment of principal or
interest specified in Section 6.01(a)(i) or Section 6.01(a)(ii) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust for the whole
amount of principal and accrued interest remaining unpaid, together with interest on overdue
principal and, to the extent lawful, overdue installments of interest, in each case at the rate
specified in the Notes, and such further amount as is sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel and any other amounts due the Trustee hereunder.

45

 

     Section 6.09. Trustee May File Proofs of Claim. The Trustee may file proofs of claim and
other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee hereunder) and the Holders
allowed in any judicial proceedings relating to the Company, any Subsidiary Guarantor or their
respective creditors or property, and is entitled and empowered to collect, receive and distribute
any money, securities or other property payable or deliverable upon conversion or exchange of the
Notes or upon any such claims. Any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, if the Trustee consents to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agent and counsel, and any
other amounts due the Trustee hereunder. Nothing in the Indenture will be deemed to empower the
Trustee to authorize or consent to, or accept or adopt on behalf of any Holder, any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding.

     Section 6.10. Priorities. If the Trustee collects any money pursuant to this Article, it
shall pay out the money in the following order:

     First: to the Trustee for all amounts due hereunder;

     Second: to Holders for amounts then due and unpaid for principal of and interest on
the Notes, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Notes for principal and interest; and

     Third: to the Company or as a court of competent jurisdiction may direct.

     The Trustee, upon written notice to the Company, may fix a record date and payment date for
any payment to Holders pursuant to this Section.

     Section 6.11. Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted a proceeding to enforce any right or remedy under the Indenture and the proceeding has
been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or
to the Holder, then, subject to any determination in the proceeding, the Company, any Subsidiary
Guarantors, the Trustee and the Holders will be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Company, any Subsidiary
Guarantors the Trustee and the Holders will continue as though no such proceeding had been
instituted.

46

 

     Section 6.12. Undertaking for Costs. In any suit for the enforcement of any right or remedy
under the Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, a court may require any party litigant in such suit (other than the Trustee) to file an
undertaking to pay the costs of the suit, and the court may assess reasonable costs, including
reasonable attorneys fees, against any party litigant (other than the Trustee) in the suit having
due regard to the merits and good faith of the claims or defenses made by the party litigant. This
Section does not apply to a suit by a Holder to enforce payment of principal of or interest on any
Note on the respective due dates, or a suit by Holders of more than 10% in principal amount of the
outstanding Notes.

     Section 6.13. Rights and Remedies Cumulative. No right or remedy conferred or reserved to
the Trustee or to the Holders under this Indenture is intended to be exclusive of any other right
or remedy, and all such rights and remedies are, to the extent permitted by law, cumulative and in
addition to every other right and remedy hereunder or now or hereafter existing at law or in equity
or otherwise. The assertion or exercise of any right or remedy hereunder, or otherwise, will not
prevent the concurrent assertion or exercise of any other right or remedy.

     Section 6.14. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder to exercise any right or remedy accruing upon any Event of Default will impair any such
right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

     Section 6.15. Waiver of Stay, Extension or Usury Laws. The Company and each Subsidiary
Guarantor covenants, to the extent that it may lawfully do so, that it will not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury law or other law that would prohibit or forgive the Company or the
Subsidiary Guarantor from paying all or any portion of the principal of, or interest on the Notes
as contemplated herein, wherever enacted, now or at any time hereafter in force, or that may affect
the covenants or the performance of the Indenture. The Company and each Subsidiary Guarantor
hereby expressly waives, to the extent that it may lawfully do so, all benefit or advantage of any
such law and covenants that it will not hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such power as though no
such law had been enacted.

47

 

ARTICLE 7

The Trustee

     Section 7.01. General. (a) The duties and responsibilities of the Trustee are as provided by
the Trust Indenture Act and as set forth herein. Whether or not expressly so provided, every
provision of the Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee is subject to this Article.

     (b) Except during the continuance of an Event of Default, (1) the Trustee need perform only
those duties that are specifically set forth in the Indenture and no others, and no implied
covenants or obligations will be read into the Indenture against the Trustee and (2) in the absence
of bad faith on its part, the Trustee may rely, and will be protected in acting or refraining from
acting, upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by the proper Person.
The Trustee need not investigate any fact or matter stated in the document, but, in the case of any
document which is specifically required to be furnished to the Trustee pursuant to any provision
hereof, the Trustee shall examine the document to determine whether it conforms to the requirements
of the Indenture (but need not confirm or investigate the accuracy of mathematical calculations or
other facts stated therein). The Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney at the reasonable expense of the
Company and shall incur no liability or additional liability of any kind by reason of such inquiry
or investigation. In case an Event of Default has occurred and is continuing, the Trustee shall
exercise those rights and powers vested in it by the Indenture, and use the same degree of care and
skill in their exercise, as a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs.

     (c) No provision of the Indenture shall be construed to relieve the Trustee from liability for
its own negligent action, its own negligent failure to act or its own willful misconduct, except
that:

     (1) this Subsection shall not be construed to limit the effect of Subsection (b) of
this Section;

     (2) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless the Trustee was negligent in ascertaining the pertinent facts;

48

 

     (3) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a majority in
principal amount of the Outstanding Notes of any series, relating to the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee, under this Indenture with respect to the
Notes of such series; and

     (4) no provision of this Indenture shall require the Trustee to expend or risk its
own funds or otherwise incur any financial liability in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it.

     (d) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

     Section 7.02. Certain Rights of Trustee. Subject to Trust Indenture Act Sections 315(a)
through (d):

     (a) The Trustee, in its discretion, may make further inquiry or investigation into such facts
or matters as it sees fit.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel conforming to Section 11.05 and the Trustee will not be liable for any
action it takes or omits to take in good faith in reliance on the certificate or opinion.

     (c) The Trustee may act through its attorneys and agents and will not be responsible for the
misconduct or negligence of any agent appointed with due care.

     (d) The Trustee will be under no obligation to exercise any of the rights or powers vested in
it by the Indenture at the request or direction of any of the Holders, unless such Holders have
offered to the Trustee security or indemnity satisfactory to the Trustee against the costs,
expenses and liabilities that might be incurred by it in compliance with such request or direction.

     (e) The Trustee will not be liable for any action it takes or omits to take in good faith that
it believes to be authorized or within its rights or powers or for any action it takes or omits to
take in accordance with the direction of the Holders in accordance with Section 6.05 relating to
the time, method and place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under the Indenture; provided

49

 

however that the Trustee’s conduct does not constitute willful misconduct or negligence.

     (f) The Trustee may consult with counsel of its selection, and the advice of such counsel or
any Opinion of Counsel with respect to legal matters related to the Indenture and the Notes will be
full and complete authorization and protection in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon.

     (g) No provision of the Indenture will require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of its duties hereunder, or in the
exercise of its rights or powers, unless it receives indemnity satisfactory to it against any loss,
liability or expense.

     (h) Any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Order.

     (i) In no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

     (j) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the Notes and this Indenture.

     (k) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

     (l) The Trustee may request that the Company deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture.

     Section 7.03. Individual Rights of Trustee. The Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not the Trustee. Any Agent may do the
same with like rights. However, the Trustee is subject to Trust Indenture Act Sections 310(b) and
311. For purposes of Trust Indenture Act Section 311(b)(4) and (6):

     (a) “cash transaction” means any transaction in which full payment for goods or securities
sold is made within seven days after delivery of the goods or

50

 

securities in currency or in checks or other orders drawn upon banks or bankers and payable
upon demand; and

     (b) “self-liquidating paper” means any draft, bill of exchange, acceptance or obligation which
is made, drawn, negotiated or incurred for the purpose of financing the purchase, processing,
manufacturing, shipment, storage or sale of goods, wares or merchandise and which is secured by
documents evidencing title to, possession of, or a lien upon, the goods, wares or merchandise or
the receivables or proceeds arising from the sale of the goods, wares or merchandise previously
constituting the security, provided the security is received by the Trustee simultaneously with the
creation of the creditor relationship arising from the making, drawing, negotiating or incurring of
the draft, bill of exchange, acceptance or obligation.

     Section 7.04. Trustee’s Disclaimer. The Trustee (i) makes no representation as to the
validity or adequacy of the Indenture or the Notes, (ii) is not accountable for the Company’s use
or application of the proceeds from the Notes and (iii) is not responsible for any statement in the
Notes other than its certificate of authentication.

     Section 7.05. Notice of Default. The Trustee will, within 90 days after the occurrence of a
Default under the Indenture, unless the Default has been cured, give to Holders of the Notes notice
of all uncured Defaults known to it but, except in the case of a default in the payment of
principal (or premium, if any) or interest on or redemption price (if called for redemption) of the
Notes, the Trustee shall be protected in withholding such notice if it in good faith determines
that the withholding of such notice is in the interest of such Holders. Notice to Holders under
this Section will be given in the manner and to the extent provided in Trust Indenture Act Section
313(c).

     Section 7.06. Reports by Trustee to Holders. Within 60 days after each May 15, beginning
with May 15, 2011, the Trustee will mail to each Holder, as provided in Trust Indenture Act Section
313(c), a brief report dated as of such May 15, if required by Trust Indenture Act Section 313(a)
(but if no event described in Trust Indenture Act Section 313(a) has occurred within the 12 months
preceding the reporting duties, no report need be transmitted), and file such reports with each
stock exchange upon which its Notes are listed, if any, and with the Commission as required by
Trust Indenture Act Section 313(d).

     Section 7.07. Compensation And Indemnity. (a) The Company will pay the Trustee compensation
as agreed upon in writing for its services. The compensation of the Trustee is not limited by any
law on compensation of a Trustee of an express trust. The Company will reimburse the Trustee upon
request for all reasonable out-of-pocket expenses, disbursements and advances

51

 

incurred or made by the Trustee, including the reasonable compensation and expenses of the
Trustee’s agents and counsel.

     (b) The Company will indemnify the Trustee and its officers, directors, employees and agents
for, and hold it harmless against, any loss, claim, damage, liability or expense (including taxes,
other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it
without negligence or bad faith on its part arising out of or in connection with the acceptance or
administration of the Indenture and its duties under the Indenture and the Notes, including the
costs and expenses of defending itself against any claim or liability (whether directed by the
Company or any Holder or any other Person) in connection with the exercise or performance of any of
its powers or duties under the Indenture and the Notes, or in connection with enforcing the
provisions of this Section. The Company need not reimburse any expense or indemnify against any
loss, claim, damage, liability or expense incurred by the Trustee that is attributable to the
Trustee’s own willful misconduct, negligence or bad faith.

     (c) To secure the Company’s payment obligations in this Section, the Trustee will have a lien
prior to the Notes on all money or property held or collected by the Trustee, in its capacity as
Trustee, except money or property held in trust to pay principal of, and interest on particular
Notes.

When the Trustee incurs expenses or renders services in connection with an Event of Default, the
expenses (including the reasonable charges and expenses of its counsel) and the compensation for
the services are intended, to the extent permitted by law, to constitute expenses of administration
under any applicable Federal or state bankruptcy, insolvency or other similar law.

     The provisions of this Section shall survive the termination of this Indenture or the earlier
resignation or removal of the Trustee.

     Section 7.08. Replacement of Trustee. (a) (i) The Trustee may resign at any time by written
notice to the Company.

     (ii) The Holders of a majority in principal amount of the outstanding Notes may remove
the Trustee by written notice to the Trustee.

     (iii) If the Trustee is no longer eligible under Section 7.10 or in the circumstances
described in Trust Indenture Act Section 310(b), any Holder that satisfies the
requirements of Trust Indenture Act Section 310(b) may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     (iv) The Company may remove the Trustee if: (1) the Trustee is no longer eligible
under Section 7.10; (2) the Trustee is adjudged a

52

 

bankrupt or an insolvent; (3) a receiver or other public officer takes charge of the
Trustee or its property; or (4) the Trustee becomes incapable of acting.

A resignation or removal of the Trustee and appointment of a successor Trustee will become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
and upon the payment of the fees and expenses of the removed or resigning Trustee.

     (b) If the Trustee has been removed by the Holders, Holders of a majority in principal amount
of the Notes may appoint a successor Trustee with the consent of the Company. Otherwise, if the
Trustee resigns or is removed, or if a vacancy exists in the office of Trustee for any reason, the
Company will promptly appoint a successor Trustee. If the successor Trustee does not deliver its
written acceptance within 30 days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Company or the Holders of a majority in principal amount of the outstanding Notes may
petition any court of competent jurisdiction for the appointment of a successor Trustee at the
expense of the Company.

     (c) Upon delivery by the successor Trustee of a written acceptance of its appointment to the
retiring Trustee and to the Company, (i) the retiring Trustee will transfer all property held by it
as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07, (ii) the
resignation or removal of the retiring Trustee will become effective, and (iii) the successor
Trustee will have all the rights, powers and duties of the Trustee under the Indenture. Upon
request of any successor Trustee, the Company will execute any and all instruments for fully and
vesting in and confirming to the successor Trustee all such rights, powers and trusts. The Company
will give notice of any resignation and any removal of the Trustee and each appointment of a
successor Trustee to all Holders, and include in the notice the name of the successor Trustee and
the address of its Corporate Trust Office.

     (d) Notwithstanding replacement of the Trustee pursuant to this Section, the Company’s
obligations under Section 7.07 will continue for the benefit of the retiring Trustee.

     (e) The Trustee agrees to give the notices provided for in, and otherwise comply with, Trust
Indenture Act Section 310(b).

     Section 7.09. Successor Trustee by Merger. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust business to, another
corporation or national banking association, the resulting, surviving or transferee corporation or
national banking association without any further act will be the successor Trustee if such
successor corporation is eligible and qualified under Section 7.10 with the same effect as if the
successor Trustee had been named as the Trustee in the Indenture.

53

 

     Section 7.10. Eligibility. The Indenture must always have a Trustee that satisfies the
requirements of Trust Indenture Act Section 310(a) and has a combined capital and surplus of at
least $25,000,000 as set forth in its most recent published annual report of condition.

     Section 7.11. Money Held in Trust. The Trustee will not be liable for interest on any money
received by it except as it may agree with the Company. Money held in trust by the Trustee need
not be segregated from other funds except to the extent required by law and except for money held
in trust under Article 8.

ARTICLE 8

Defeasance And Discharge

     Section 8.01. Discharge of Company’s Obligations. (a) Subject to paragraph (b), the
Company’s obligations under the Notes and the Indenture, and each Subsidiary Guarantor’s
obligations under its Note Guarantee, if any, will terminate if:

     (1) all Notes previously authenticated and delivered (other than (i) destroyed, lost
or stolen Notes that have been replaced or (ii) Notes that are paid pursuant to Section
4.01 or (iii) Notes for whose payment money or U.S. Government Obligations have been held
in trust and then repaid to the Company pursuant to Section 8.05) have been delivered to
the Trustee for cancellation and the Company has paid all sums payable by it hereunder; or

     (2) (A) the Notes mature within one year, or all of them are to be called for
redemption within one year under arrangements satisfactory to the Trustee for giving the
notice of redemption,

     (B) the Company irrevocably deposits in trust with the Trustee, as trust
funds solely for the benefit of the Holders, money or U.S. Government Obligations
or a combination thereof sufficient, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certificate
delivered to the Trustee, without consideration of any reinvestment, to pay
principal of (and premium, if any) and interest on the Notes to maturity or
redemption, as the case may be, and to pay all other sums payable by it
hereunder,

     (C) no Default (other than that resulting from borrowing funds to be
applied to make such deposit and any similar and simultaneous deposit relating to
other Debt and, in

54

 

each case, the granting of Liens in connection therewith) has occurred and
is continuing on the date of the deposit,

     (D) the deposit will not result in a breach or violation of, or constitute a
default under, any other agreement or instrument (other than the Indenture) to
which the Company is a party or by which it is bound (other than that resulting
from borrowing funds to be applied to make such deposit and any similar and
simultaneous deposit relating to other Debt and, in each case, the granting of
Liens in connection therewith), and

     (E) the Company delivers to the Trustee an Officers’ Certificate and an
Opinion of Counsel, in each case stating that all conditions precedent provided
for herein relating to the satisfaction and discharge of the Indenture have been
complied with.

     (b) After satisfying the conditions in clause (1), only the Company’s obligations under
Section 7.07 will survive. After satisfying the conditions in clause (2), only the Company’s
obligations in Article 2 and Sections 4.01, 4.02, 7.07, 7.08, 8.05 and 8.06 will survive. In
either case, the Trustee upon request will acknowledge in writing the discharge of the Company’s
obligations under the Notes and the Indenture other than the surviving obligations.

     Section 8.02. Legal Defeasance. After the 123rd day following the deposit referred to in
clause (1) below, the Company will be deemed to have paid and will be discharged from its
obligations in respect of the Notes and the Indenture, other than its obligations in Article 2 and
Sections 4.01, 4.02, 7.07, 7.08, 8.05 and 8.06, and each Subsidiary Guarantor’s obligations under
the Note Guarantee, if any, will terminate, provided the following conditions have been satisfied:

     (1) The Company has irrevocably deposited in trust with the Trustee, as trust funds solely for
the benefit of the Holders, money or U.S. Government Obligations or a combination thereof
sufficient, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certificate thereof delivered to the Trustee, without consideration of any
reinvestment, to pay principal of and interest on the Notes to maturity or redemption, as the case
may be, provided that any redemption before maturity has been irrevocably provided for under
arrangements satisfactory to the Trustee.

     (2) No Default (other than that resulting from borrowing funds to be applied to make such
deposit and any similar and simultaneous deposit relating to other Debt and, in each case, the
granting of Liens in connection therewith) has occurred and is continuing on the date of the
deposit or occurs at any time during the 123-day period following the deposit.

55

 

     (3) The deposit will not result in a breach or violation of, or constitute a default under, or
any other agreement or instrument (other than the Indenture) to which the Company is a party or by
which it is bound (other than that resulting from borrowing funds to be applied to make such
deposit and any similar and simultaneous deposit relating to other Debt and, in each case, the
granting of Liens in connection therewith).

     (4) The Company has delivered to the Trustee

     (A) either (x) a ruling received from the Internal Revenue Service to the effect that
the beneficial owners for U.S. federal income tax purposes will not recognize income, gain
or loss for federal income tax purposes as a result of the defeasance and will be subject
to federal income tax on the same amounts and in the same manner and at the same times as
would otherwise have been the case or (y) an Opinion of Counsel, based on a change in law
after the date of the Indenture, to the same effect as the ruling described in clause (x),
and

     (B) an Opinion of Counsel to the effect that the creation of the defeasance trust
does not violate the Investment Company Act of 1940.

     (5) If the Notes are listed on a national securities exchange, the Company has delivered to
the Trustee an Opinion of Counsel to the effect that the deposit and defeasance will not cause the
Notes to be delisted.

     (6) The Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, in each case stating that all conditions precedent provided for herein relating to the
defeasance have been complied with.

     Prior to the end of the 123-day period, none of the Company’s obligations under the Indenture
will be discharged. Thereafter, the Trustee upon request will acknowledge in writing the discharge
of the Company’s obligations under the Notes and the Indenture except for the surviving obligations
specified above.

     Section 8.03. Covenant Defeasance. After the 123rd day following the deposit referred to in
clause (1), the Company’s obligations set forth in Sections 4.04 through 4.10, inclusive and
Section 5.01(a)(3) will terminate, and Section 6.01(a)(iii) and Section 6.01(a)(iv) will no longer
constitute Events of Default, provided the following conditions have been satisfied:

     (1) The Company has complied with clauses (1), (2), (3), 4(B), (5) and (6) of Section 8.02;
and

     (2) The Company has delivered to the Trustee either (x) a ruling received from the Internal
Revenue Service to the effect that the beneficial owners for U.S. federal income tax purposes will
not recognize income, gain or loss for

56

 

federal income tax purposes as a result of the defeasance and will be subject to federal
income tax on the same amounts and in the same manner and at the same times as would otherwise have
been the case or (y) an Opinion of Counsel to the same effect as the ruling described in clause
(x),

     Except as specifically stated above, none of the Company’s obligations under the Indenture
will be discharged.

     Section 8.04. Application of Trust Money. Subject to Section 8.05, the Trustee will hold in
trust the money or U.S. Government Obligations deposited with it pursuant to Section 8.01, 8.02 or
8.03, and apply the deposited money and the proceeds from deposited U.S. Government Obligations to
the payment of principal of and interest on the Notes in accordance with the Notes and the
Indenture. Such money and U.S. Government Obligations need not be segregated from other funds
except to the extent required by law.

     Section 8.05. Repayment to Company. Subject to Sections 7.07, 8.01, 8.02 and 8.03, the
Trustee will promptly pay to the Company upon request any excess money held by the Trustee at any
time and thereupon be relieved from all liability with respect to such money. The Trustee will pay
to the Company upon request any money held for payment with respect to the Notes that remains
unclaimed for two years, provided that before making such payment the Trustee may at the expense of
the Company publish once in a newspaper of general circulation in New York City, or send to each
Holder entitled to such money, notice that the money remains unclaimed and that after a date
specified in the notice (at least 30 days after the date of the publication or notice) any
remaining unclaimed balance of money will be repaid to the Company. After payment to the Company,
Holders entitled to such money must look solely to the Company for payment, unless applicable law
designates another Person, and all liability of the Trustee with respect to such money will cease.

     Section 8.06. Reinstatement. If and for so long as the Trustee is unable to apply any money
or U.S. Government Obligations held in trust pursuant to Section 8.01, 8.02 or 8.03 by reason of
any legal proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under
the Indenture and the Notes will be reinstated as though no such deposit in trust had been made.
If the Company makes any payment of principal of or interest on any Notes because of the
reinstatement of its obligations, it will be subrogated to the rights of the Holders of such Notes
to receive such payment from the money or U.S. Government Obligations held in trust.

57

 

ARTICLE 9

Amendments, Supplements and Waivers

     Section 9.01. Amendments Without Consent of Holders. (a) The Company and the Trustee may
modify, amend or supplement the Indenture without the consent of any Holder of Notes to:

     (i) cure any ambiguity, defect, mistake or inconsistency in the Indenture;

     (ii) provide for uncertificated Notes in addition to or in place of Certificated
Notes;

     (iii) comply with Article 5 or Section 4.06;

     (iv) if required by the requirements of the Commission, comply with any requirements
of the Commission in connection with the qualification of the Indenture under the Trust
Indenture Act;

     (v) evidence and provide for the acceptance of appointment by a successor Trustee;

     (vi) make any change that would provide any additional rights or benefits to the
Holders of Notes or that does not adversely affect the legal rights under the Indenture of
any such Holder;

     (vii) add covenants for the benefit of the Holders or to surrender any right or power
conferred upon the Company or any Subsidiary Guarantor;

     (viii) secure the Notes;

     (ix) provide for the issuance of Additional Notes in accordance with the limitations
set forth in the Indenture; and

     (x) conform the text of the Indenture, the Notes or Note Guarantees, if any, to any
provision of the “Description of the Notes” contained in the Final Offering Memorandum.

     Section 9.02. Amendments With Consent of Holders. (a) Except as otherwise provided in
Sections 6.04 and 6.07 or paragraph (b), the Company and the Trustee may amend the Indenture or the
Notes with the written consent of the Holders of a majority in principal amount of the outstanding
Notes, and the Holders of a majority in principal amount of the outstanding Notes by written notice
to the Trustee may waive future compliance by the Company with any provision of the Indenture or
the Notes.

58

 

     (b) Notwithstanding the provisions of paragraph (a), without the consent of each Holder
affected, an amendment or waiver may not:

     (i) change the Stated Maturity of the principal, or any installment of principal or
interest, of any note or change the redemption price;

     (ii) reduce the principal amount of or the rate of interest on or any premium payable
on redemption of any note;

     (iii) modify the manner of determination of the rate of interest so as to affect
adversely the interest of a Holder or reduce the amount of the principal due and payable
upon acceleration;

     (iv) change the place or currency of payment of principal of or interest on any note;

     (v) impair the right to institute suit for the enforcement of any payment on or with
respect to any note; or

     (vi) modify the provisions relating to modification or amendment of the Indenture or
to waiver of compliance with or defaults of certain restrictive provisions of the
Indenture, except to increase the percentage in principal amount of Notes required, or to
provide that certain other provisions of the Indenture cannot be modified or amended
without the consent of the Holder of each note affected thereby.

     (b) It is not necessary for Noteholders to approve the particular form of any proposed
amendment, supplement or waiver, but is sufficient if their consent approves the substance thereof.

     (c) An amendment, supplement or waiver under this Section will become effective on receipt by
the Trustee of written consents from the Holders of the requisite percentage in principal amount of
the outstanding Notes. After an amendment, supplement or waiver under this Section becomes
effective, the Company will send to the Holders affected thereby a notice briefly describing the
amendment, supplement or waiver. The Company will send supplemental indentures to Holders upon
request. Any failure of the Company to send such notice, or any defect therein, will not, however,
in any way impair or affect the validity of any such supplemental indenture or waiver.

     Section 9.03. Effect of Consent. (a) After an amendment, supplement or waiver becomes
effective, it will bind every Holder unless it is of the type requiring the consent of each Holder
affected. If the amendment, supplement or waiver is of the type requiring the consent of each
Holder affected, the amendment, supplement or waiver will bind each Holder that has consented to it

59

 

and every subsequent Holder of a Note that evidences the same debt as the Note of the
consenting Holder.

     (b) If an amendment, supplement or waiver changes the terms of a Note, the Trustee may require
the Holder to deliver it to the Trustee so that the Trustee may place an appropriate notation of
the changed terms on the Note and return it to the Holder, or exchange it for a new Note that
reflects the changed terms. The Trustee may also place an appropriate notation on any Note
thereafter authenticated. However, the effectiveness of the amendment, supplement or waiver is not
affected by any failure to annotate or exchange Notes in this fashion.

     Section 9.04. Trustee’s Rights and Obligations. The Trustee shall receive, and will be fully
protected in relying upon, an Opinion of Counsel and Officers’ Certificate stating that the
execution of any amendment, supplement or waiver authorized pursuant to this Article is authorized
or permitted by the Indenture. If the Trustee has received such an Opinion of Counsel and
Officers’ Certificate, it shall sign the amendment, supplement or waiver so long as the same does
not adversely affect the rights of the Trustee. The Trustee may, but is not obligated to, execute
any amendment, supplement or waiver that affects the Trustee’s own rights, duties or immunities
under the Indenture. Notwithstanding the foregoing, no Opinion of Counsel shall be required in
connection with the addition of a Subsidiary Guarantor under this Indenture upon execution and
delivery by such Subsidiary Guarantor and the Trustee of a supplemental indenture to this
Indenture, the form of which is attached as Exhibit B hereto, and delivery of an Officers’
Certificate.

     Section 9.05. Conformity With Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust Indenture Act.

ARTICLE 10

Future Guarantees

     Section 10.01. Future Guarantees. (a) Any Subsidiaries required to guarantee the Notes
pursuant to Section 4.06 shall execute a supplemental indenture in the form of Exhibit B to
evidence their Note Guarantee.

     (b) Any such Note Guarantee shall be automatically and unconditionally released, without any
additional action on the part of a Holder of Notes, upon (i) the release or discharge of the Debt
of such Subsidiary Guarantor which resulted in the obligation to guarantee the Notes, (ii) the
disposition of the Capital Stock of such Subsidiary Guarantor (including by way of merger or
consolidation) such that it no longer is a Subsidiary of the Company, (iii) such

60

 

Subsidiary Guarantor no longer being a Material Subsidiary of the Company, or (iv) defeasance
or discharge of the Notes.

     (c) The Company may choose to cause any Subsidiary to guarantee the Notes by executing a
supplemental indenture in the form of Exhibit B, and may cause such Note Guarantee to be released
at any time, without any additional action on the part of a Holder of Notes, provided that after
giving effect to such release, the Company would be in compliance with the provision described
under Section 4.06.

     (d) The Trustee shall, at the Company’s expense, execute and deliver such instruments as the
Company or such Subsidiary Guarantor may reasonably request to evidence the termination of any Note
Guarantee.

ARTICLE 11

Miscellaneous

     Section 11.01. Trust Indenture Act of 1939. The Indenture shall incorporate and be governed
by the provisions of the Trust Indenture Act that are required to be part of and to govern
indentures qualified under the Trust Indenture Act.

     Section 11.02. Noteholder Communications; Noteholder Actions. (a) The rights of Holders to
communicate with other Holders with respect to the Indenture or the Notes are as provided by the
Trust Indenture Act, and the Company and the Trustee shall comply with the requirements of Trust
Indenture Act Sections 312(a) and 312(b). Neither the Company nor the Trustee will be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

     (b) (i) Any request, demand, authorization, direction, notice, consent to amendment,
supplement or waiver or other action provided by this Indenture to be given or taken by a Holder
(an “act”) may be evidenced by an instrument signed by the Holder delivered to the Trustee. The
fact and date of the execution of the instrument, or the authority of the person executing it, may
be proved in any manner that the Trustee deems sufficient.

     (ii) The Trustee may make reasonable rules for action by or at a meeting of Holders,
which will be binding on all the Holders.

     (c) Any act by the Holder of any Note binds that Holder and every subsequent Holder of a Note
that evidences the same debt as the Note of the acting Holder, even if no notation thereof appears
on the Note. Subject to paragraph (d), a Holder may revoke an act as to its Notes, but only if the
Trustee

61

 

receives the notice of revocation before the date the amendment or waiver or other consequence
of the act becomes effective.

     (d) The Company may, but is not obligated to, fix a record date (which need not be within the
time limits otherwise prescribed by Trust Indenture Act Section 316(c)) for the purpose of
determining the Holders entitled to act with respect to any amendment or waiver or in any other
regard, except that during the continuance of an Event of Default, only the Trustee may set a
record date as to notices of default, any declaration or acceleration or any other remedies or
other consequences of the Event of Default. If a record date is fixed, those Persons that were
Holders at such record date and only those Persons will be entitled to act, or to revoke any
previous act, whether or not those Persons continue to be Holders after the record date. No act
will be valid or effective for more than 90 days after the record date.

     Section 11.03. Notices. (a) Any notice or communication to the Company will be deemed given
if in writing (i) when delivered in person or (ii) five days after mailing when mailed by first
class mail, or (iii) when sent by facsimile transmission, with transmission confirmed. Notices or
communications to a Subsidiary Guarantor, if any, will be deemed given if given to the Company.
Any notice to the Trustee will be effective only upon receipt. In each case the notice or
communication should be addressed as follows:

     if to the Company:

PHH Corporation

3000 Leadenhall Road

Mt. Laurel, New Jersey 08054

Attention: General Counsel

Telefax: (856) 917-0950

     if to the Trustee:

The Bank of New York Mellon Trust Company, N.A.

2 N. LaSalle Street Suite 1020

Chicago, Illinois 60606

Attn: Corporate Trust Administration

Fax: (312) 827-8542

The Company or the Trustee by notice to the other may designate additional or different addresses
for subsequent notices or communications.

The Trustee agrees to accept and act upon instructions or directions pursuant to this Indenture
sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured electronic
methods, provided, however, that the Trustee shall have received an incumbency certificate listing
persons designated to give such

62

 

instructions or directions and containing specimen signatures of such designated persons, which
such incumbency certificate shall be amended and replaced whenever a person is to be added or
deleted from the listing. If the Issuer elects to give the Trustee e-mail or facsimile
instructions (or instructions by a similar electronic method) and the Trustee in its reasonable
discretion elects to act upon such instructions, the Trustee’s understanding of such instructions
shall be deemed controlling. The Trustee shall not be liable for any losses, costs or expenses
arising directly or indirectly from the Trustee’s reasonable reliance upon and compliance with such
instructions notwithstanding such instructions conflict or are inconsistent with a subsequent
written instruction. The Issuer agrees to assume all risks arising out of the use of such
electronic methods to submit instructions and directions to the Trustee, including without
limitation the risk of the Trustee acting on unauthorized instructions, and the risk or
interception and misuse by third parties.

     (b) Except as otherwise expressly provided with respect to published notices, any notice or
communication to a Holder will be deemed given when mailed to the Holder at its address as it
appears on the Register by first class mail or, as to any Global Note registered in the name of DTC
or its nominee, as agreed by the Company, the Trustee and DTC. Copies of any notice or
communication to a Holder, if given by the Company, will be mailed to the Trustee at the same time.
Defect in mailing a notice or communication to any particular Holder will not affect its
sufficiency with respect to other Holders.

     (c) Where the Indenture provides for notice, the notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and the waiver will be the
equivalent of the notice. Waivers of notice by Holders must be filed with the Trustee, but such
filing is not a condition precedent to the validity of any action taken in reliance upon such
waivers.

     Section 11.04. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take any action under the Indenture, the Company will
furnish to the Trustee:

     (a) an Officers’ Certificate stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in the Indenture relating to the proposed action have been complied
with; and

     (b) an Opinion of Counsel stating that all such conditions precedent have been complied with;
provided that, no Opinion of Counsel shall be required in connection with the addition of a
Subsidiary Guarantor under this Indenture upon execution and delivery by such Subsidiary Guarantor
and the Trustee of a supplemental indenture to this Indenture, the form of which is attached as
Exhibit B hereto.

63

 

     Section 11.05. Statements Required in Certificate or Opinion. Each certificate or opinion
with respect to compliance with a condition or covenant provided for in the Indenture must include:

     (a) a statement that each person signing the certificate or opinion has read the covenant or
condition and the related definitions;

     (b) a brief statement as to the nature and scope of the examination or investigation upon
which the statement or opinion contained in the certificate or opinion is based;

     (c) a statement that, in the opinion of each such person, that person has made such
examination or investigation as is necessary to enable the person to express an informed opinion as
to whether or not such covenant or condition has been complied with; and

     (d) a statement as to whether or not, in the opinion of each such person, such condition or
covenant has been complied with, provided that an Opinion of Counsel may rely on an Officers’
Certificate or certificates of public officials with respect to matters of fact.

     Section 11.06. Payment Date Other Than a Business Day. If any payment with respect to a
payment of any principal of, premium, if any, or interest on any Note (including any payment to be
made on any date fixed for redemption or purchase of any Note) is due on a day which is not a
Business Day, then the payment need not be made on such date, but may be made on the next Business
Day with the same force and effect as if made on such date, and no interest will accrue for the
intervening period.

     Section 11.07. Governing Law. The Indenture, including any Note Guarantees, and the Notes
shall be governed by, and construed in accordance with, the laws of the State of New York.

     Section 11.08. No Adverse Interpretation of Other Agreements. The Indenture may not be used
to interpret another indenture or loan or debt agreement of the Company or any Subsidiary of the
Company, and no such indenture or loan or debt agreement may be used to interpret the Indenture.

     Section 11.09. Successors. All agreements of the Company or any Subsidiary Guarantor in the
Indenture and the Notes will bind its successors. All agreements of the Trustee in the Indenture
will bind its successor.

     Section 11.10. Duplicate Originals. The parties may sign any number of copies of the
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

64

 

     Section 11.11. Separability. In case any provision in the Indenture or in the Notes is
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired thereby.

     Section 11.12. Table of Contents and Headings. The Table of Contents, Cross-Reference Table
and headings of the Articles and Sections of the Indenture have been inserted for convenience of
reference only, are not to be considered a part of the Indenture and in no way modify or restrict
any of the terms and provisions of the Indenture.

     Section 11.13. No Liability of Directors, Officers, Employees, Incorporators, Members and
Stockholders. No director, officer, employee, incorporator, member or stockholder of the Company
or any Subsidiary Guarantor, as such, will have any liability for any obligations of the Company or
any Subsidiary Guarantor under the Notes, any Note Guarantee or the Indenture or for any claim
based on, in respect of, or by reason of, such obligations. Each Holder of Notes by accepting a
Note waives and releases all such liability. The waiver and release are part of the consideration
for issuance of the Notes.

     Section 11.14 Waiver of Jury Trial.

     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

     Section 11.15 Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

65

 

SIGNATURES

     IN WITNESS WHEREOF, the parties hereto have caused the Indenture to be duly executed as of the
date first written above.

	 	 	 	 	 
	 	

PHH Corporation

as Issuer

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name:  	Mark E. Johnson 	 
	 	 	Title:  	SVP & Treasurer 	 
	 
	 	The Bank of New York Mellon Trust Company, N.A.

as Trustee

 	 
	 	By:  	/s/ Benita Vaughn
 	 
	 	 	Name:  	Benita Vaughn 	 
	 	 	Title:  	Vice President 	 
	 

66

 

EXHIBIT A

PHH CORPORATION

9 1/4% Senior Note Due 2016

[CUSIP] [CINS]                                         

			
	 	 	 
	No.
	 	$                                        

     PHH Corporation, a Maryland corporation (the “Company”, which term includes any successor
under the Indenture hereinafter referred to), for value received, promises to pay to
                                        , or its registered assigns, the principal sum of                                  
        DOLLARS
($                    )or such other amount as indicated on the Schedule of Exchange of Notes attached hereto on
March 1, 2016.

     Interest Rate: 9 1/4% per annum.

     Interest Payment Dates: March 1 and September 1, commencing March 1, 2011.

     Regular Record Dates: February 15 and August 15.

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which will for all purposes have the same effect as if set forth at this place.

A-1

 

     IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by
its duly authorized officers.

	 	 	 	 	 
	 	Date: PHH CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-2

 

	 	 	 	 	 

(Form of Trustee’s Certificate of Authentication)

     This is one of the 9 1/4% Senior Notes Due 2016 described in the Indenture referred to in this
Note.

	 	 	 	 	 
	 	The Bank of New York Mellon Trust

Company, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Date:                                        

A-3

 

[REVERSE SIDE OF NOTE]

PHH CORPORATION

9 1/4% Senior Note Due 2016

1. Principal and Interest.

     The Company promises to pay the principal of this Note on March 1, 2016.

     The Company promises to pay interest on the principal amount of this Note on each interest
payment date, as set forth on the face of this Note, at the rate of 9.25% per annum (subject to
adjustment as provided below).

     Interest will be payable semiannually (to the holders of record of the Notes at the close of
business on the March 1 or September 1 immediately preceding the interest payment date) on each
interest payment date, commencing March 1, 2011.

     [The Holder of this Note is entitled to the benefits of the Registration Rights Agreement,
dated August 11, 2010, between the Company and the Initial Purchasers named therein (the
“Registration Rights Agreement”). Upon the occurrence of a Registration Default (as defined in the
Registration Rights Agreement) under the Registration Rights Agreement, the Notes shall be entitled
to Additional Interest accruing during the periods described in the Registration Rights Agreement.
All references in the Indenture to “interest” shall be deemed to include Additional
Interest.]1

     Interest on this Note will accrue from the most recent date to which interest has been paid on
this Note [or the Note surrendered in exchange for this Note]2 (or, if there is no
existing default in the payment of interest and if this Note is authenticated between a regular
record date and the next interest payment date, from such interest payment date) or, if no interest
has been paid, from [the Issue Date].3 Interest will be computed in the basis of a
360-day year of twelve 30-day months.

     The Company will pay interest on overdue principal, premium, if any, and, to the extent
lawful, interest at the rate applicable to this Note. Interest not paid when due and any interest
on principal, premium or interest not paid when

 

			
	1	 	In Initial Notes only.
	 
	2	 	Include only for Exchange Note.
	 
	3	 	For Additional Notes, should be the date of
their original issue.

A-4

 

     due will be paid to the Persons that are Holders on a special record date, which will be the
15th day preceding the date fixed by the Company for the payment of such interest, whether or not
such day is a Business Day. At least 15 days before a special record date, the Company will send
to each Holder and to the Trustee a notice that sets forth the special record date, the payment
date and the amount of interest to be paid.

2. Indentures.

     This is one of the Notes issued under an Indenture dated as of August 11, 2010 (as amended
from time to time, the “Indenture”), between the Company and The Bank of New York Mellon Trust
Company, N.A., as Trustee. Capitalized terms used herein are used as defined in the Indenture
unless otherwise indicated. The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act. The Notes are subject to all
such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement
of all such terms. To the extent permitted by applicable law, in the event of any inconsistency
between the terms of this Note and the terms of the Indenture, the terms of the Indenture will
control.

     The Notes are general unsecured obligations of the Company. The Indenture limits the original
aggregate principal amount of the Notes to $350,000,000, but Additional Notes may be issued
pursuant to the Indenture, and the originally issued Notes and all such Additional Notes vote
together for all purposes as a single class.

3. Redemption and Repurchase; Discharge Prior to Redemption or Maturity.

     This Note is subject to optional redemption, and may be the subject of an Offer to Purchase,
as further described in the Indenture. There is no sinking fund or mandatory redemption applicable
to this Note.

     If the Company deposits with the Trustee money or U.S. Government Obligations sufficient to
pay the then outstanding principal of, premium, if any, and accrued interest on the Notes to
redemption or maturity, the Company may in certain circumstances be discharged from the Indenture
and the Notes or may be discharged from certain of its obligations under certain provisions of the
Indenture.

4. Registered Form; Denominations; Transfer; Exchange.

     The Notes are in registered form, without interest coupons, in denominations of $2,000 and
higher integral multiples of $1,000. A Holder may register the transfer or exchange of Notes in
accordance with the Indenture. The Trustee may require a Holder to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by law or permitted by
the

A-5

 

Indenture. Pursuant to the Indenture, there are certain periods during which the Trustee will
not be required to issue, register the transfer of or exchange any Note or certain portions of a
Note.

5. Defaults and Remedies.

     If an Event of Default with respect to the Notes shall occur and be continuing, the Trustee or
the Holders of at least 25% in principal amount of the outstanding Notes may declare the principal
and accrued interest of all of the Notes to be due and payable immediately. If a bankruptcy or
insolvency default with respect to the Company occurs and is continuing, the Notes automatically
become due and payable. Holders may not enforce the Indenture or the Notes except as provided in
the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the
Indenture or the Notes. Subject to certain limitations, Holders of a majority in principal amount
of the Notes then outstanding may direct the Trustee in its exercise of remedies.

6. Amendment and Waiver.

     Under the Indenture, the Company’s rights and obligations and the rights of the Holders of the
Notes may be changed and compliance with certain covenants or a past default may be waived. Subject
to certain exceptions, any change requires the consent of the Holders of a majority in principal
amount of the outstanding Notes; provided that no such modification shall, without the consent of
the Holder of each Note affected thereby change certain rights of the Holders of the Notes
specified in the Indenture. Without the consent of any Holder, the Company and the Trustee may
modify, amend or supplement the Indenture or the Notes to, among other things, cure any ambiguity,
defect, mistake or inconsistency in the Indenture.

7. Authentication.

     This Note is not valid until the Trustee (or Authenticating Agent) signs the certificate of
authentication on the other side of this Note.

8. Governing Law.

     This Note shall be governed by, and construed in accordance with, the laws of the State of New
York.

9. Abbreviations.

     Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A/ (= Uniform Gifts to
Minors Act).

A-6

 

     The Company will furnish a copy of the Indenture to any Holder upon written request and
without charge.

A-7

 

[FORM OF TRANSFER NOTICE]

     FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

Insert Taxpayer Identification No.

 

 

Please print or typewrite name and address including zip code of assignee

 

the within Note and all rights thereunder, hereby irrevocably constituting and appointing

 

attorney to transfer said Note on the books of the Company with full power of substitution in
the premises.

A-8

 

[THE FOLLOWING PROVISION TO BE INCLUDED ON ALL CERTIFICATES BEARING A RESTRICTED LEGEND]

     In connection with any transfer of this Note occurring prior to                     , the
undersigned confirms that such transfer is made without utilizing any general solicitation or
general advertising and further as follows:

Check One

o  (1) This Note is being transferred to the Company or any of its Subsidiaries

o (2) This Note is being transferred to a “qualified institutional buyer” in compliance with
Rule 144A under the Securities Act of 1933, as amended and certification in the form of Exhibit F
to the Indenture is being furnished herewith.

o (3) This Note is being transferred to a Non-U.S. Person in compliance with the exemption from
registration under the Securities Act of 1933, as amended, provided by Regulation S thereunder, and
certification in the form of Exhibit E to the Indenture is being furnished herewith.

or

o (4) This Note is being transferred other than in accordance with (1), (2) or (3) above and
documents are being furnished which comply with the conditions of transfer set forth in this Note
and the Indenture.

     If none of the foregoing boxes is checked, the Trustee is not obligated to register this Note
in the name of any Person other than the Holder hereof unless and until the conditions to any such
transfer of registration set forth herein and in the Indenture have been satisfied.

	 	 	 	 	 	 	 	 	 	 	 

	Date:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Seller	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By
	 	 

	 	 

	 	 	 

	 

	 	NOTICE: The signature to this assignment must correspond
with the name as written upon the face of the
within-mentioned instrument in every particular, without
alteration or any change whatsoever.

A-9

 

	 	 	 	 	 	 	 

	Signature Guarantee:5
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	To be executed by an executive officer	 	 

 

			
	5	 	Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which
requirements include membership or participation in the Securities Transfer
Association Medallion Program (“STAMP”) or such other “signature guarantee
program” as may be determined by the Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of
1934, as amended.

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you wish to have all of this Note purchased by the Company pursuant to Section 3.03 of the
Indenture, check the box: 9

     If you wish to have a portion of this Note purchased by the Company pursuant to Section 3.03
of the Indenture, state the amount (in original principal amount) below:

          $                                        .

Date:                    

Your Signature:                                                            

(Sign exactly as your name appears on the other side of this Note)

Signature Guarantee:1   
                    
                    
                 

 

			
	1	 	Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Trustee, which
requirements include membership or participation in the Securities Transfer
Association Medallion Program (“STAMP”) or such other “signature guarantee
program” as may be determined by the Trustee in addition to, or in substitution
for, STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended.

A-11

 

SCHEDULE OF EXCHANGES OF NOTES

The following exchanges of a part of this Global Note for Physical Notes or a part of another
Global Note have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Principal amount of	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	this Global Note	 	 
	 	 	 	 	Amount of decrease	 	Amount of increase	 	following such	 	Signature of
	 	 	 	 	in principal amount	 	in principal amount	 	decrease (or	 	authorized officer of
	Date of Exchange	 	of this Global Note	 	of this Global Note	 	increase)	 	Trustee

A-12

 

EXHIBIT B

SUPPLEMENTAL INDENTURE

dated as of                     , ____

among

PHH CORPORATION,

The Subsidiary Gurantor(s) Party Hereto

and

The Bank of New York Mellon Trust Company, N.A.,

as Trustee

 

9 1/4%

Senior Notes due

2016

B-1

 

     THIS SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), entered into as of                     ,
___, among PHH CORPORATION, a Maryland corporation (the “Company”) , [insert each Guarantor
executing this Supplemental Indenture and its jurisdiction of incorporation] (each an
“Undersigned”) and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

RECITALS

     WHEREAS, the Company and the Trustee entered into the Indenture, dated as of August 11, 2010
(the “Indenture”), relating to the Company’s 9 1/4% Senior Notes due 2016 (the “Notes”);

     WHEREAS, as a condition to the Trustee entering into the Indenture and the purchase of the
Notes by the Holders, the Company agreed pursuant to the Indenture to cause certain Subsidiaries to
provide Guaranties in certain circumstances.

AGREEMENT

     NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and
intending to be legally bound, the parties to this Supplemental Indenture hereby agree as follows:

     Section 1. Capitalized terms used herein and not otherwise defined herein are used as defined
in the Indenture.

     Section 2. Each Undersigned, by its execution of this Supplemental Indenture, agrees to be a
Guarantor under the Indenture and to be bound by the terms of the Indenture.

     Section 2.01. The Guaranties. Subject to the provisions of this Section 2, each Guarantor
hereby irrevocably and unconditionally guarantees, jointly and severally, on an unsecured basis,
the full and punctual payment (whether at Stated Maturity, upon redemption, purchase pursuant to an
Offer to Purchase or acceleration, or otherwise) of the principal of, premium, if any, and interest
on, and all other amounts payable under, each Note, and the full and punctual payment of all other
amounts payable by the Company under the Indenture. Upon failure by the Company to pay punctually
any such amount, each Guarantor shall forthwith on demand pay the amount not so paid at the place
and in the manner specified in the Indenture.

     Section 2.02. Guarantee Unconditional. The obligations of each Guarantor hereunder are
unconditional and absolute and, without limiting the generality of the foregoing, will not be
released, discharged or otherwise affected by:

B-2

 

     (1) any extension, renewal, settlement, compromise, waiver or release in respect of
any obligation of the Company under the Indenture or any Note, by operation of law or
otherwise;

     (2) any modification or amendment of or supplement to the Indenture or any Note;

     (3) any change in the corporate existence, structure or ownership of the Company, or
any insolvency, bankruptcy, reorganization or other similar proceeding affecting the
Company or its assets or any resulting release or discharge of any obligation of the
Company contained in the Indenture or any Note;

     (4) the existence of any claim, set-off or other rights which the Guarantor may have
at any time against the Company, the Trustee or any other Person, whether in connection
with the Indenture or any unrelated transactions, provided that nothing herein prevents
the assertion of any such claim by separate suit or compulsory counterclaim;

     (5) any invalidity or unenforceability relating to or against the Company for any
reason of the Indenture or any Note, or any provision of applicable law or regulation
purporting to prohibit the payment by the Company of the principal of or interest on any
Note or any other amount payable by the Company under the Indenture; or

     (6) any other act or omission to act or delay of any kind by the Company, the Trustee
or any other Person or any other circumstance whatsoever which might, but for the
provisions of this paragraph, constitute a legal or equitable discharge of or defense to
such Guarantor’s obligations hereunder.

     Section 2.03. Discharge; Reinstatement. Except as provided in Article 10 of the Indenture,
each Guarantor’s obligations hereunder will remain in full force and effect until the principal of,
premium, if any, and interest on the Notes and all other amounts payable by the Company under the
Indenture have been paid in full. If at any time any payment of the principal of, premium, if any,
or interest on any Note or any other amount payable by the Company under the Indenture is rescinded
or must be otherwise restored or returned upon the insolvency, bankruptcy or reorganization of the
Company or otherwise, each Guarantor’s obligations hereunder with respect to such payment will be
reinstated as though such payment had been due but not made at such time.

     Section 2.04. Waiver by the Guarantors. Each Guarantor irrevocably waives acceptance hereof,
presentment, demand, protest and any notice not provided for herein, as well as any requirement
that at any time any action be taken by any Person against the Company or any other Person.

B-3

 

     Section 2.05. Subrogation and Contribution. Upon making any payment with respect to any
obligation of the Company under this Section 2, the Guarantor making such payment will be
subrogated to the rights of the payee against the Company with respect to such obligation, provided
that the Guarantor may not enforce either any right of subrogation, or any right to receive payment
in the nature of contribution, or otherwise, from any other Guarantor, with respect to such payment
so long as any amount payable by the Company hereunder or under the Notes remains unpaid.

     Section 2.06. Stay of Acceleration. If acceleration of the time for payment of any amount
payable by the Company under the Indenture or the Notes is stayed upon the insolvency, bankruptcy
or reorganization of the Company, all such amounts otherwise subject to acceleration under the
terms of the Indenture are nonetheless payable by the Guarantors hereunder forthwith on demand by
the Trustee or the Holders.

     Section 2.07. Limitation on Amount of Guarantee. Notwithstanding anything to the contrary in
this Article, each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Note Guarantee of such Guarantor not constitute a
fraudulent conveyance under applicable fraudulent conveyance provisions of the United States
Bankruptcy Code or any comparable provision of state law. To effectuate that intention, the
Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of each
Guarantor under its Note Guarantee are limited to the maximum amount that would not render the
Guarantor’s obligations subject to avoidance under applicable fraudulent conveyance provisions of
the United States Bankruptcy Code or any comparable provision of state law.

     Section 2.08. Execution and Delivery of Guarantee. The execution by each Guarantor of this
supplemental indenture evidences the Note Guarantee of such Guarantor.

     Section 2.09. Release of Guarantee. The Note Guarantee of a Guarantor will be released in
accordance with the provisions of Article 10 of the Indenture

     Section 3. This Supplemental Indenture shall be governed by and construed in accordance with
the laws of the State of New York.

     Section 4. This Supplemental Indenture may be signed in various counterparts which together
will constitute one and the same instrument.

     Section 5. This Supplemental Indenture is an amendment supplemental to the Indenture and the
Indenture and this Supplemental Indenture will henceforth be read together.

B-4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the date first above written.

	 	 	 	 	 
	 	PHH Corporation, as Issuer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	The Bank of New York Mellon Trust 

Company, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

B-5

 

	 	 	 	 	 

EXHIBIT C

RESTRICTED LEGEND

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES ACT, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE
WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE
ACQUIRER:

	 	(A)	 	REPRESENTS THAT:

	 	(i)	 	IT AND ANY ACCOUNT FOR WHICH IT IS
ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF
RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE
INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT,
	 
	 	(ii)	 	IT IS AN INSTITUTIONAL ACCREDITED
INVESTOR (WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7)
UNDER THE SECURITIES ACT) (AN “INSTITUTIONAL ACCREDITED INVESTOR”),
OR
	 
	 	(iii)	 	IT IS NOT A U.S. PERSON (WITHIN THE
MEANING OF REGULATION S UNDER THE SECURITIES ACT) AND

	 	(B)	 	AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL, PLEDGE
OR OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL INTEREST HEREIN, EXCEPT IN
ACCORDANCE WITH THE SECURITIES ACT AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES AND ONLY

	 	(i)	 	TO THE COMPANY,
	 
	 	(ii)	 	PURSUANT TO A REGISTRATION STATEMENT
WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT,
	 
	 	(iii)	 	TO A QUALIFIED INSTITUTIONAL BUYER IN
COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT,
	 
	 	(iv)	 	IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT,
	 
	 	(v)	 	IN A PRINCIPAL AMOUNT AT MATURITY OF
NOT LESS THAN $250,000, TO AN INSTITUTIONAL ACCREDITED INVESTOR
THAT, PRIOR TO SUCH TRANSFER, DELIVERS TO THE TRUSTEE A DULY
COMPLETED AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED
FROM THE TRUSTEE) RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS
NOTE, OR
	 
	 	(vi)	 	PURSUANT TO AN EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR

C-1

 

	 	 	 	ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.

PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (B)(iii) OR (iv) ABOVE, A DULY
COMPLETED AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM THE TRUSTEE) MUST BE
DELIVERED TO THE TRUSTEE. PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH B(v) OR
(vi) ABOVE, THE ISSUER RESERVES THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS,
CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE
PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY RULE 144 EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

C-2

 

EXHIBIT D

DTC LEGEND

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS A BENEFICIAL INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES
OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE
INDENTURE.

D-1

 

EXHIBIT E

Regulation S Certificate

                    , ____

The Bank of New York Mellon Trust Company, N.A.

2 N. LaSalle Street, Suite 1020

Chicago, Illinois 60606

Attention: Corporate Trust Administration

	 	 	 

	Re:

	 	PHH Corporation
	 

	 	9 1/4 % Senior
	 

	 	Notes due 2016 (the “Notes”)
	 

	 	Issued under the Indenture (the “Indenture”) dated as
	 

	 	as of August 11, 2010 relating to the Notes

Ladies and Gentlemen:

     Terms are used in this Certificate as used in Regulation S (“Regulation S”) under the
Securities Act of 1933, as amended (the “Securities Act”), except as otherwise stated herein.

     [CHECK A OR B AS APPLICABLE.]

	 	oA.	 	This Certificate relates to our proposed transfer of $___principal amount of
Notes issued under the Indenture. We hereby certify as follows:

	 	1.	 	The offer and sale of the Notes was not and will not
be made to a person in the United States (unless such person is excluded
from the definition of “U.S. person” pursuant to Rule 902(k)(2)(vi) or the
account held by it for which it is acting is excluded from the definition
of “U.S. person” pursuant to Rule 902(k)(2)(i) under the circumstances
described in Rule 902(h)(3)) and such offer and sale was not and will not
be specifically targeted at an identifiable group of U.S. citizens abroad.
	 
	 	2.	 	Unless the circumstances described in the
parenthetical in paragraph 1 above are applicable, either (a) at the time
the buy order was originated, the buyer was outside the United States or
we and any person acting on our behalf reasonably believed that the buyer
was outside the United States or (b)
the transaction was executed in, on or through the facilities

E-1

 

	 		 	of a designated offshore securities market, and neither we nor any person
acting on our behalf knows that the transaction was pre-arranged with a
buyer in the United States.
	 
	 	3.	 	Neither we, any of our affiliates, nor any person
acting on our or their behalf has made any directed selling efforts in the
United States with respect to the Notes.
	 
	 	4.	 	The proposed transfer of Notes is not part of a plan
or scheme to evade the registration requirements of the Securities Act.
	 
	 	5.	 	If we are a dealer or a person receiving a selling
concession, fee or other remuneration in respect of the Notes, and the
proposed transfer takes place during the Restricted Period (as defined in
the Indenture), or we are an officer or director of the Company or an
Initial Purchaser (as defined in the Indenture), we certify that the
proposed transfer is being made in accordance with the provisions of Rule
904(b) of Regulation S.

	 	o B.	 	This Certificate relates to our proposed exchange of $___principal amount of
Notes issued under the Indenture for an equal principal amount of Notes to be held by
us. We hereby certify as follows:

	 	1.	 	At the time the offer and sale of the Notes was made
to us, either (i) we were not in the United States or (ii) we were
excluded from the definition of “U.S. person” pursuant to Rule
902(k)(2)(vi) or the account held by us for which we were acting was
excluded from the definition of “U.S. person” pursuant to Rule
902(k)(2)(i) under the circumstances described in Rule 902(h)(3); and we
were not a member of an identifiable group of U.S. citizens abroad.
	 
	 	2.	 	Unless the circumstances described in paragraph 1(ii)
above are applicable, either (a) at the time our buy order was originated,
we were outside the United States or (b) the transaction was executed in,
on or through the facilities of a designated offshore securities market
and we did not pre-arrange the transaction in the United States.
	 
	 	3.	 	The proposed exchange of Notes is not part of a plan
or scheme to evade the registration requirements of the Securities Act.

E-2

 

     You and the Company are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	Very truly yours,

[NAME OF SELLER (FOR TRANSFERS)

OR OWNER (FOR EXCHANGES)]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Address:  	 	 
	 

Date:                     

E-3

 

EXHIBIT F

Rule 144A Certificate

                    , ____

The Bank of New York Mellon Trust Company, N.A.

2 N. LaSalle Street, Suite 1020

Chicago, Illinois 60606

Attention: Corporate Trust Administration

	 	 	 	 	 	 
	 	 	 	 	 	 
	 

	 	Re:
	 	PHH Corporation	 
	 

	 	 	 	9 1/4% Senior	 
	 

	 	 	 	Notes due 2016 (the “Notes”)	 
	 

	 	 	 	Issued under the Indenture (the “Indenture”) dated as	 
	 

	 	 	 	as of August 11, 2010 relating to the Notes	 

Ladies and Gentlemen:

     TO BE COMPLETED BY PURCHASER IF (1) ABOVE IS CHECKED.

     This Certificate relates to:

     [CHECK A OR B AS APPLICABLE.]

	 	o A.	 	Our proposed purchase of $___principal amount of Notes issued under the
Indenture.
	 
	 	o B.	 	Our proposed exchange of $___principal amount of Notes issued under the
Indenture for an equal principal amount of Notes to be held by us.

     We and, if applicable, each account for which we are acting in the aggregate owned and
invested more than $100,000,000 in securities of issuers that are not affiliated with us (or such
accounts, if applicable), as of                     , 20___, which is a date on or since close of our most
recent fiscal year. We and, if applicable, each account for which we are acting, are a qualified
institutional buyer within the meaning of Rule 144A (“Rule 144A”) under the Securities Act of 1933,
as amended (the “Securities Act”). If we are acting on behalf of an account, we exercise sole
investment discretion with respect to such account. We are aware that the transfer of Notes to us,
or such exchange, as applicable, is being made in reliance upon the exemption from the provisions
of Section 5 of the Securities Act provided by Rule 144A. Prior to the date of this Certificate we
have received such information regarding the Company as we have requested pursuant to Rule
144A(d)(4) or have determined not to request such information.

F-1

 

     You and the Company are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	Very truly yours,

[NAME OF PURCHASER (FOR

TRANSFERS) OR OWNER (FOR

EXCHANGES)]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Address: 	
 	 
	 

Date:                                         

F-2

 

EXHIBIT G

Institutional Accredited Investor Certificate

The Bank of New York Mellon Trust Company, N.A.

2 N. LaSalle Street, Suite 1020

Chicago, Illinois 60606

Attention: Corporate Trust Administration

	 	 	 	 	 	 
	 	 	 	 	 	 
	 

	 	Re:
	 	PHH Corporation	 
	 

	 	 	 	9 1/4% Senior	 
	 

	 	 	 	Notes due 2016 (the “Notes”)	 
	 

	 	 	 	Issued under the Indenture (the “Indenture”) dated as	 
	 

	 	 	 	as of August 11, 2010 relating to the Notes	 

Ladies and Gentlemen:

     This Certificate relates to:

     [CHECK A OR B AS APPLICABLE.]

	 	o A.	 	Our proposed purchase of $___principal amount of Notes issued under the
Indenture.
	 
	 	o B.	 	Our proposed exchange of $___principal amount of Notes issued under the
Indenture for an equal principal amount of Notes to be held by us.

     We hereby confirm that:

	 	1.	 	We are an institutional “accredited investor” within the meaning of
Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the
“Securities Act”) (an “Institutional Accredited Investor”).
	 
	 	2.	 	Any acquisition of Notes by us will be for our own account or for the
account of one or more other Institutional Accredited Investors as to which we
exercise sole investment discretion.
	 
	 	3.	 	We have such knowledge and experience in financial and business matters
that we are capable of evaluating the merits and risks of an investment in the
Notes and we and any accounts for which we are acting are able to bear the economic
risks of and an entire loss of our or their investment in the Notes.

G-1

 

	 	4.	 	We are not acquiring the Notes with a view to any distribution thereof
in a transaction that would violate the Securities Act or the securities laws of
any State of the United States or any other applicable jurisdiction; provided that
the disposition of our property and the property of any accounts for which we are
acting as fiduciary will remain at all times within our and their control.
	 
	 	5.	 	We acknowledge that the Notes have not been registered under the
Securities Act and that the Notes may not be offered or sold within the United
States or to or for the benefit of U.S. persons except as set forth below.
	 
	 	6.	 	The principal amount of Notes to which this Certificate relates is at
least equal to $250,000.

     We agree for the benefit of the Company, on our own behalf and on behalf of each account for
which we are acting, that such Notes may be offered, sold, pledged or otherwise transferred only in
accordance with the Securities Act and any applicable securities laws of any State of the United
States and only (a) to the Company, (b) pursuant to a registration statement which has become
effective under the Securities Act, (c) to a qualified institutional buyer in compliance with Rule
144A under the Securities Act, (d) in an offshore transaction in compliance with Rule 904 of
Regulation S under the Securities Act, (e) in a principal amount of not less than $250,000, to an
Institutional Accredited Investor that, prior to such transfer, delivers to the Trustee a duly
completed and signed certificate (the form of which may be obtained from the Trustee) relating to
the restrictions on transfer of the Notes or (f) pursuant to an exemption from registration
provided by Rule 144 under the Securities Act or any other available exemption from the
registration requirements of the Securities Act.

     Prior to the registration of any transfer in accordance with (c) or (d) above, we acknowledge
that a duly completed and signed certificate (the form of which may be obtained from the Trustee)
must be delivered to the Trustee. Prior to the registration of any transfer in accordance with (e)
or (f) above, we acknowledge that the Company reserves the right to require the delivery of such
legal opinions, certifications or other evidence as may reasonably be required in order to
determine that the proposed transfer is being made in compliance with the Securities Act and
applicable state securities laws. We acknowledge that no representation is made as to the
availability of any Rule 144 exemption from the registration requirements of the Securities Act.

     We understand that the Trustee will not be required to accept for registration of transfer any
Notes acquired by us, except upon presentation of evidence satisfactory to the Company and the
Trustee that the foregoing restrictions on transfer have been complied with. We further understand
that the Notes acquired by us will be in the form of definitive physical certificates and that

G-2

 

such certificates will bear a legend reflecting the substance of the preceding paragraph. We
further agree to provide to any person acquiring any of the Notes from us a notice advising such
person that resales of the Notes are restricted as stated herein and that certificates representing
the Notes will bear a legend to that effect.

     We agree to notify you promptly in writing if any of our acknowledgments, representations or
agreements herein ceases to be accurate and complete.

     We represent to you that we have full power to make the foregoing acknowledgments,
representations and agreements on our own behalf and on behalf of any account for which we are
acting.

     You and the Company are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	Very truly yours,

[NAME OF PURCHASER (FOR

TRANSFERS) OR OWNER (FOR

EXCHANGES)]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Address: 	
 	 
	 

Date:                                         

G-3

 

     Upon transfer, the Notes would be registered in the name of the new beneficial owner as
follows:

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 
	Date:	 	 	 
	 
	Taxpayer ID number: 
	 
	 

G-4

 

EXHIBIT H

[COMPLETE FORM I OR FORM II AS APPLICABLE.]

[FORM I]

Certificate of Beneficial Ownership

	 	 	 

	To:

	 	The Bank of New York Mellon Trust Company, N.A.
	 

	 	2 N. LaSalle Street, Suite 1020               Chicago, Illinois 60606
	 

	 	Attention: Corporate Trust Administration OR
	 
	 	 
	 

	 	[Name of DTC Participant]]

	 	 	 	 	 	 
	 	 	 	 	 	 
	 

	 	Re:
	 	PHH Corporation	 
	 

	 	 	 	9 1/4% Senior	 
	 

	 	 	 	Notes due 2016 (the “Notes”)	 
	 

	 	 	 	Issued under the Indenture (the “Indenture”) dated as	 
	 

	 	 	 	as of August 11, 2010 relating to the Notes	 

Ladies and Gentlemen:

     We are the beneficial owner of $___principal amount of Notes issued under the Indenture and
represented by a Temporary Offshore Global Note (as defined in the Indenture).

     We hereby certify as follows:

     [CHECK A OR B AS APPLICABLE.]

	 	o  A.	 	We are a Non-U.S. person (within the meaning of Regulation S under the
Securities Act of 1933, as amended).
	 
	 	o  B.	 	We are a U.S. person (within the meaning of Regulation S under the Securities
Act of 1933, as amended) that purchased the Notes in a transaction that did not require
registration under the Securities Act of 1933, as amended.

     You and the Company are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.

H-1

 

	 	 	 	 	 
	 	Very truly yours,

[NAME OF BENEFICIAL OWNER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Address: 	
 	 
	 

Date:                                         

[FORM II]

Certificate of Beneficial Ownership

	 	 	 

	To:

	 	The Bank of New York Mellon Trust Company, N.A.
	 

	 	2 N. LaSalle Street, Suite
	 

	 	1020 Chicago, Illinois 60606
	 

	 	Attention: Corporate Trust Administration
	 
	 	 
	Re:

	 	PHH Corporation
	 

	 	9 1/4% Senior
	 

	 	Notes due 2016 (the “Notes”)
	 

	 	Issued under the Indenture (the “Indenture”) dated as
	 

	 	as of August 11, 2010 relating to the Notes

Ladies and Gentlemen:

     This is to certify that based solely on certifications we have received in writing, by tested
telex or by electronic transmission from Institutions appearing in our records as persons being
entitled to a portion of the principal amount of Notes represented by a Temporary Offshore Global
Note issued under the above-referenced Indenture, that as of the date hereof, $___principal
amount of Notes represented by the Temporary Offshore Global Note being submitted herewith for
exchange is beneficially owned by persons that are either (i) Non-U.S. persons (within the meaning
of Regulation S under the Securities Act of 1933, as amended) or (ii) U.S. persons that purchased
the Notes in a transaction that did not require registration under the Securities Act of 1933, as
amended.

     We further certify that (i) we are not submitting herewith for exchange any portion of such
Temporary Offshore Global Note excepted in such certifications and (ii) as of the date hereof we
have not received any notification from any Institution to the effect that the statements made by
such Institution with respect

H-2

 

to any portion of such Temporary Offshore Global Note submitted herewith for exchange are no
longer true and cannot be relied upon as of the date hereof.

     You and the Company are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	Yours faithfully,

[Name of DTC Participant]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Address: 	
 	 
	 

Date:                                         

H-3

 

EXHIBIT I

THIS NOTE IS A TEMPORARY GLOBAL NOTE. PRIOR TO THE EXPIRATION OF THE RESTRICTED PERIOD APPLICABLE
HERETO, BENEFICIAL INTERESTS HEREIN MAY NOT BE HELD BY ANY PERSON OTHER THAN (1) A NON-U.S. PERSON
OR (2) A U.S. PERSON THAT PURCHASED SUCH INTEREST IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER
THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). BENEFICIAL INTERESTS HEREIN
ARE NOT EXCHANGEABLE FOR PHYSICAL NOTES OTHER THAN A PERMANENT GLOBAL NOTE IN ACCORDANCE WITH THE
TERMS OF THE INDENTURE. TERMS IN THIS LEGEND ARE USED AS USED IN REGULATION S UNDER THE SECURITIES
ACT.

NO BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNTIL SUCH BENEFICIAL INTEREST IS EXCHANGED OR TRANSFERRED FOR AN
INTEREST IN ANOTHER NOTE

I-1exv10w1

Exhibit 10.1

REGISTRATION RIGHTS AGREEMENT

by and among

PHH Corporation

and

Banc of America Securities LLC

Citigroup Global Markets Inc.

J.P. Morgan Securities Inc.

RBS Securities Inc.

as representatives of the Initial Purchasers

Dated as of August 11, 2010

 

 

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of August
11, 2010, by and among PHH Corporation, a Maryland corporation (the “Company”), and Banc of America
Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and RBS Securities Inc.,
as representatives of the initial purchasers listed on Schedule I to the Purchase Agreement (each
an “Initial Purchaser” and collectively, the “Initial Purchasers”), each of whom has agreed to
purchase the Company’s 9.25% Senior Notes due 2016 (the “Initial Notes”) pursuant to the Purchase
Agreement (as defined below).

     This Agreement is made pursuant to the Purchase Agreement, dated August 6, 2010 (the “Purchase
Agreement”), by and among the Company and Banc of America Securities LLC, Citigroup Global Markets
Inc., J.P. Morgan Securities Inc. and RBS Securities Inc., as representatives of the Initial
Purchasers (i) for the benefit of the Initial Purchasers and (ii) for the benefit of the holders
from time to time of Transfer Restricted Notes (as defined below), including the Initial
Purchasers. In order to induce the Initial Purchasers to purchase the Initial Notes, the Company
has agreed to provide the registration rights set forth in this Agreement. The execution and
delivery of this Agreement is a condition to the obligations of the Initial Purchasers set forth in
Section 6(g) of the Purchase Agreement.

     The parties hereby agree as follows:

     SECTION 1. Definitions. As used in this Agreement, the following capitalized terms
shall have the following meanings:

     Additional Interest: As defined in Section 5 hereof.

     Advice: As defined in Section 6(c) hereof.

     Broker-Dealer: Any broker or dealer registered under the Exchange Act.

     Business Day: Any day other than a Saturday, Sunday or U.S. federal holiday or a day on which
banking institutions or trust companies located in New York, New York are authorized or obligated
to be closed.

     Closing Date: The date of this Agreement.

     Commission: The Securities and Exchange Commission.

     Consummate: A registered Exchange Offer shall be deemed “Consummated” for purposes of this
Agreement upon the occurrence of (i) the filing and effectiveness under the Securities Act of the
Exchange Offer Registration Statement relating to the Exchange Notes to be issued in the Exchange
Offer, (ii) the maintenance of such Registration Statement continuously effective and the keeping
of the Exchange Offer open for a period not less than the minimum period required pursuant to
Section 3(b) hereof, and (iii) the delivery by the Company to the Registrar under the Indenture of
Exchange Notes in the same aggregate principal amount as the aggre-gate principal amount of Initial Notes that were tendered by Holders thereof pursuant to the
Exchange Offer.

 

 

     Effectiveness Target Date: As defined in Section 5 hereto.

     Exchange Act: The Securities Exchange Act of 1934, as amended, including the rules and
regulations promulgated thereunder.

     Exchange Date: As defined in Section 3(a) hereto.

     Exchange Notes: The 9.25% Senior Notes due 2016, of the same series under the Indenture as
the Notes and having terms substantially identical in all material respects to the Notes (except
that the Exchange Notes will not contain terms with respect to transfer restrictions), to be issued
to Holders in exchange for Transfer Restricted Notes pursuant to this Agreement.

     Exchange Offer: The registration by the Company under the Securities Act of the Exchange
Notes pursuant to a Registration Statement pursuant to which the Company offers the Holders of all
outstanding Transfer Restricted Notes the opportunity to exchange all such outstanding Transfer
Restricted Notes held by such Holders for Exchange Notes in an aggregate principal amount equal to
the aggregate principal amount of the Transfer Restricted Notes tendered in such exchange offer by
such Holders.

     Exchange Offer Registration Statement: The Registration Statement relating to the Exchange
Offer, including the related Prospectus.

     FINRA: Financial Industry Regulatory Authority, Inc.

     Freely Tradable: Means, with respect to a Note, a Note that at any time of determination (i)
may be sold to the public in accordance with Rule 144 under the Securities Act (“Rule 144”) by a
person that is not an “affiliate” (as defined in Rule 144 under the Securities Act) of the Company
where no conditions of Rule 144 are then applicable (other than the holding period requirement in
paragraph (d) of Rule 144 so long as such holding period requirement is satisfied at such time of
determination), (ii) does not bear any restrictive legends relating to the Securities Act and (iii)
bears an unrestricted CUSIP number.

     Holders: As defined in Section 2(b) hereof.

     Indemnified Holder: As defined in Section 8(a) hereof.

     Indenture: The Indenture, dated as of August 11, 2010, by and between the Company and The
Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), pursuant to which the
Notes are to be issued, as such Indenture is amended or supplemented from time to time in
accordance with the terms thereof.

     Initial Notes: As defined in the preamble hereto.

 

 

     Initial Placement: The issuance and sale by the Company of the Initial Notes to the Initial
Purchasers pursuant to the Purchase Agreement.

     Initial Purchaser: As defined in the preamble hereto.

     Interest Payment Date: As defined in the Indenture and the Notes.

     Notes: The Initial Notes and the Exchange Notes.

     Person: An individual, partnership, corporation, trust or unincorporated organization, or a
government or agency or political subdivision thereof.

     Prospectus: The prospectus included in a Registration Statement, as amended or supplemented
by any prospectus supplement and by all other amendments thereto, including post-effective
amendments, and all material incorporated by reference into such prospectus.

     Registration Default: As defined in Section 5 hereof.

     Registration Statement: Any registration statement of the Company relating to (a) an offering
of Exchange Notes pursuant to an Exchange Offer or (b) the registration for resale of Transfer
Restricted Notes pursuant to the Shelf Registration Statement, which in each case is filed pursuant
to the provisions of this Agreement, in each case, including the Prospectus included therein, all
amendments and supplements thereto (including post-effective amendments) and all exhibits and
material incorporated by reference therein.

     Securities Act: The Securities Act of 1933, as amended, including the rules and regulations
promulgated thereunder.

     Shelf Filing Deadline: As defined in Section 4(a) hereof.

     Shelf Registration Statement: As defined in Section 4(a) hereof.

     Suspension Period: As defined in Section 6(d) hereof.

     Transfer Restricted Notes: Each Note until the earliest to occur of (i) the date on which
such Transfer Restricted Note has been exchanged by a person other than a broker-dealer for an
Exchange Note in the Exchange Offer, (ii) following the exchange by a broker-dealer in the Exchange
Offer of an Initial Note for an Exchange Note, the date on which such Exchange Note is sold to a
purchaser who receives from such broker-dealer on or prior to the date of such sale a copy of the
prospectus contained in the Exchange Offer Registration Statement, (iii) the date on which such
Initial Note has been effectively registered under the Securities Act and disposed of in accordance
with the Shelf Registration Statement or (iv) the date on which such Note ceases to be outstanding.

     Trust Indenture Act: The Trust Indenture Act of 1939, as amended, including the rules and
regulations promulgated thereunder.

 

 

     Underwritten Registration or Underwritten Offering: A registration in which securities of the
Company are sold to an underwriter for reoffering to the public.

          SECTION 2. Securities Subject to this Agreement.

     (a) Transfer Restricted Notes. The securities entitled to the benefits of this Agreement are
the Transfer Restricted Notes.

     (b) Holders of Transfer Restricted Notes. A Person is deemed to be a holder of Transfer
Restricted Notes (each, a “Holder”) whenever such Person owns Transfer Restricted Notes.

          SECTION 3. Registered Exchange Offer.

     (a) Unless the Exchange Offer shall not be permissible under applicable law or Commission
policy (after the procedures set forth in Section 6(a) hereof have been complied with), the Company
shall (x) (i) use its commercially reasonable efforts to file with the Commission, a Registration
Statement under the Securities Act relating to the Exchange Notes and the Exchange Offer on or
prior to 120 days after the Closing Date, (ii) use its commercially reasonable efforts to cause
such Registration Statement to be declared effective on or prior to 210 days after the Closing
Date, (iii) in connection with the foregoing, (A) file all pre-effective amendments to such
Registration Statement as may be necessary in order to cause such Registration Statement to become
effective, (B) file, if applicable, a post-effective amendment to such Registration Statement
pursuant to Rule 430A under the Securities Act and (C) cause all necessary filings in connection
with the registration and qualification of the Exchange Notes to be made under the state securities
or blue sky laws of such jurisdictions as are necessary to permit Consummation of the Exchange
Offer; provided, that the Company shall not be required to make any such filings or take any action
which would subject it to general service of process or to taxation in any jurisdiction where it is
not then so subject, (iv) unless there are no Transfer Restricted Notes outstanding (A) upon the
effectiveness of such Registration Statement, commence the Exchange Offer and (B) issue the
Exchange Notes in exchange for all Transfer Restricted Notes tendered prior thereto in the Exchange
Offer. The Company shall use its commercially reasonable efforts to Consummate the Exchange Offer
within 30 Business Days of the Effectiveness Target Date with respect to the Exchange Offer
Registration Statement (the “Exchange Date”). The Exchange Offer shall be on the appropriate form
permitting registration of the Exchange Notes to be offered in exchange for the Transfer Restricted
Notes and to permit resales of Transfer Restricted Notes held by Broker-Dealers as contemplated by
Section 3(c) hereof.

     (b) The Company shall use its commercially reasonable efforts to cause the Exchange Offer
Registration Statement to be effective continuously and shall keep the Exchange Offer open for a
period of not less than the minimum period required under applicable federal and state securities
laws to Consummate the Exchange Offer; provided, however, that in no event shall such period be
less than 30 days after the date notice of the Exchange Offer is mailed to the Holders. The
Company shall cause the Exchange Offer to comply with all applicable federal and state securities
laws. No securities other than the Exchange Notes shall be included in the Ex-

 

 

change Offer Registration Statement. The Company shall use its commercially reasonable
efforts to cause the Exchange Offer to be Consummated by the Exchange Date.

     (c) The Company shall indicate in a “Plan of Distribution” section contained in the Prospectus
forming a part of the Exchange Offer Registration Statement that any Broker-Dealer who holds
Initial Notes that are Transfer Restricted Notes and that were acquired for its own account as a
result of market-making activities or other trading activities (other than Transfer Restricted
Notes acquired directly from the Company), may exchange such Initial Notes pursuant to the Exchange
Offer; however, such Broker-Dealer may be deemed to be an “underwriter” within the meaning of the
Securities Act and must, therefore, deliver a prospectus meeting the requirements of the Securities
Act in connection with any resales of the Exchange Notes received by such Broker-Dealer in the
Exchange Offer, which prospectus delivery requirement may be satisfied by the delivery by such
Broker-Dealer of the Prospectus contained in the Exchange Offer Registration Statement. Such “Plan
of Distribution” section shall also contain all other information with respect to such resales by
Broker-Dealers that the Commission may require in order to permit such resales pursuant thereto,
but such “Plan of Distribution” shall not name any such Broker-Dealer or disclose the amount of
Transfer Restricted Notes held by any such Broker-Dealer except to the extent required by the
Commission as a result of a change in policy after the date of this Agreement.

     The Company shall use its commercially reasonable efforts to keep the Exchange Offer
Registration Statement continuously effective, supplemented and amended as required by the
provisions of Section 6(c) hereof to the extent necessary to ensure that it is available for
resales of Transfer Restricted Notes acquired by Broker-Dealers for their own accounts as a result
of market-making activities or other trading activities, and to ensure that it conforms with the
requirements of this Agreement, the Securities Act and the policies, rules and regulations of the
Commission as announced from time to time, for a period ending on the earlier of (i) 90 days from
the date on which the Exchange Offer Registration Statement is declared effective and (ii) the date
on which a Broker-Dealer is no longer required to deliver a prospectus in connection with
market-making or other trading activities.

     The Company shall provide a reasonable number of copies of the latest version of such
Prospectus to Broker-Dealers promptly upon request at any time during such 90-day (or shorter as
provided in the foregoing sentence) period in order to facilitate such resales.

          SECTION 4. Shelf Registration.

     (a) Shelf Registration. If (i) the Exchange Offer is not permitted by applicable law or
Commission policy (after the procedures set forth in Section 6(a) hereof have been complied with),
(ii) for any reason the Exchange Offer is not Consummated by the Exchange Date, or (iii) prior to
the 20th day following the date on which the Exchange Offer is consummated, any Holder, including
the Initial Purchasers, notifies the Company that: (A) such Holder is prohibited by applicable law
or Commission policy from participating in the Exchange Offer, (B) such Holder may not resell the
Exchange Notes acquired by it in the Exchange Offer to the public without delivering a prospectus
and that the Prospectus contained in the Exchange Offer Registration Statement is not appropriate
or available for such resales by such Holder, or (C) such

 

 

Holder is a Broker-Dealer and holds Transfer Restricted Notes acquired directly from the
Company or one of its affiliates, the Company shall

     (x) use its commercially reasonable efforts to cause to be filed a shelf registration
statement pursuant to Rule 415 under the Securities Act, which may be an amendment to the
Exchange Offer Registration Statement (in either event, the “Shelf Registration Statement”)
on or prior to the 120th day after the date such obligation arises under this Section 4
(such date being the “Shelf Filing Deadline”), which Shelf Registration Statement shall
provide for resales of all Transfer Restricted Notes the Holders of which shall have
provided the information required pursuant to Section 4(b) hereof; and

     (y) use its commercially reasonable efforts to cause such Shelf Registration Statement
to be declared effective by the Commission and on or prior to the 210th day after the
obligation to file such Shelf Registration Statement arises under this Section 4.

     Subject to Section 6(d) hereof, the Company shall use its commercially reasonable efforts to
keep such Shelf Registration Statement continuously effective, supplemented and amended as required
by the provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is
available for resales of Transfer Restricted Notes by the Holders of such Notes entitled to the
benefit of this Section 4(a), and to ensure that it conforms with the requirements of this
Agreement, the Securities Act and the policies, rules and regulations of the Commission as
announced from time to time, from the date on which the Shelf Registration Statement is declared
effective by the Commission until the expiration of the one-year period referred to in Rule 144
applicable to the Initial Notes held by non-affiliates under the Securities Act (or shorter period
that will terminate when all the Transfer Restricted Notes covered by such Shelf Registration
Statement have been sold pursuant to such Shelf Registration Statement).

     (b) Provision by Holders of Certain Information in Connection with the Shelf Registration
Statement. No Holder of Transfer Restricted Notes may include any of its Transfer Restricted Notes
in any Shelf Registration Statement pursuant to this Agreement or benefit from the provisions
regarding Additional Interest for a Registration Default with respect to a Shelf Registration
Statement unless and until such Holder furnishes to the Company in writing, within 15 Business Days
after receipt of a request therefor, such information as the Company may reasonably request for use
in connection with any Shelf Registration Statement or Prospectus or preliminary Prospectus
included therein. Each Holder as to which any Shelf Registration Statement is being effected
agrees to furnish promptly to the Company all information required to be disclosed in order to make
the information previously furnished to the Company by such Holder not materially misleading.

     SECTION 5. Additional Interest. If either (i) the Company fails to file with the Commission
any Registration Statement required to be filed by this Agreement on or prior to the date specified
(without, for the avoidance of doubt, giving effect to any commercially reasonable efforts
qualifier) for such filing in this Agreement, (ii) any of such Registration Statements is not
declared effective by the Commission on or prior to the date specified (without, for the avoidance
of doubt, giving effect to any commercially reasonable efforts qualifier) for such effectiveness in
this Agreement (the “Effectiveness Target Date”), (iii) the Company fails to Consummate

 

 

the Exchange Offer within 30 Business Days of the Effectiveness Target Date with respect to
the Exchange Offer Registration Statement, or (iv) other than in connection with a Suspension
Period, the Shelf Registration Statement or the Exchange Offer Registration Statement is declared
effective but thereafter ceases to be effective or usable in connection with resales or exchanges
of Transfer Restricted Notes during the applicable periods specified in this Agreement without
being succeeded within 10 Business Days of such Registration Statement ceasing to be effective or
usable by a post-effective amendment to such Registration Statement that cures such failure or
usability and that is itself declared effective within 10 Business Days of such Registration
Statement ceasing to be effective or usable (each such event referred to in clauses (i) through
(iv), a “Registration Default”), the Company hereby agrees that the interest rate borne by the
Transfer Restricted Notes affected thereby shall be increased by 0.25% per annum during the 90-day
period immediately following the occurrence of any Registration Default and shall increase by an
additional 0.25% per annum at the end of each subsequent 90-day period until all Registration
Defaults have been cured, up to a maximum amount of additional interest for all Registration
Defaults of 1.0% per annum (“Additional Interest”). Following the cure of all Registration
Defaults, or in the case of a Registration Default with respect to a Shelf Registration Statement,
at the time such security ceases to be a Transfer Restricted Note that is not Freely Tradable, the
accrual of Additional Interest will cease; provided, however, that, if after any such cessation, a
different Registration Default occurs, the interest rate borne by the relevant Transfer Restricted
Notes shall again be increased pursuant to the foregoing provisions.

     All accrued obligations of the Company set forth in the preceding paragraph that are
outstanding with respect to any Transfer Restricted Note at the time such security ceases to be a
Transfer Restricted Note, or in the case of a Shelf Registration Statement, outstanding at the time
such security ceases to be a Transfer Restricted Note that is not Freely Tradable, shall survive
until such time as all such accrued obligations with respect to such security shall have been
satisfied in full.

     All accrued and unpaid Additional Interest will be paid by the Company on each Interest
Payment Date in the same manner as interest on the Notes.

          SECTION 6. Registration Procedures.

     (a) Exchange Offer Registration Statement. In connection with the Exchange Offer, if required
pursuant to Section 3(a) hereof, the Company shall comply with all of the provisions of Section
6(c) hereof, shall use its commercially reasonable efforts to effect such exchange and to permit
the sale of Transfer Restricted Notes being sold in accordance with the intended method or methods
of distribution thereof, and shall comply with all of the following provisions:

     (i) To the extent the Commission raises an objection as to whether the Exchange Offer
is permitted by applicable law, upon request of the Holders of a majority in principal
amount of Transfer Restricted Notes, the Company hereby agrees to seek a no-action letter or
other favorable decision from the Commission allowing the Company to Consummate an Exchange
Offer for such Initial Notes. The Company hereby agrees to pursue the issuance of such a
decision to the Commission staff level but shall not be required to take commercially
unreasonable action to effect a change of Commission policy.

 

 

The Company hereby agrees, however, to (A) participate in telephonic conferences
with the Commission, (B) deliver to the Commission staff an analysis prepared by counsel to
the Company setting forth the legal bases, if any, upon which such counsel has concluded
that such an Exchange Offer should be permitted and (C) diligently pursue a favorable
resolution by the Commission staff of such submission.

     (ii) As a condition to its participation in the Exchange Offer pursuant to the terms of
this Agreement, each Holder of Transfer Restricted Notes shall furnish, upon the request of
the Company, prior to the Consummation thereof, a written representation to the Company
(which may be contained in the letter of transmittal contemplated by the Exchange Offer
Registration Statement) to the effect that (A) any Exchange Notes to be received by it will
be acquired in the ordinary course of its business, (B) it has no arrangement or
understanding with any Person to participate in the distribution (within the meaning of the
Securities Act) of the Exchange Notes, (C) it is not an affiliate (as such term is defined
in Rule 405 under the Securities Act) of the Company or, if it is such an affiliate, it will
comply with the registration and prospectus delivery requirements of the Securities Act, to
the extent applicable, (D) it is not acting on behalf of any Person who could not truthfully
make the foregoing representations set forth in (A), (B) and (C) of this Section 6(a)(ii)
and (E) it shall have made such other representations as may be reasonably necessary under
applicable Commission rules, regulations or interpretations to render the use of Form S-4 or
another appropriate form under the Securities Act available or for the Exchange Offer
Registration Statement to be declared effective. In addition, all such Holders of Transfer
Restricted Notes shall otherwise cooperate in the Company’s preparations for the Exchange
Offer. Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such
Holder using the Exchange Offer to participate in a distribution of the securities to be
acquired in the Exchange Offer (1) could not under Commission policy as in effect on the
date of this Agreement rely on the position of the Commission enunciated in Morgan
Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings
Corporation (available May 13, 1988), as interpreted in the Commission’s letter to
Shearman & Sterling dated July 2, 1993, and similar no-action letters (which may include any
no-action letter obtained pursuant to clause (i) above), and (2) must comply with the
registration and prospectus delivery requirements of the Securities Act in connection with a
secondary resale transaction and that such a secondary resale transaction should be covered
by an effective registration statement containing the selling security holder information
required by Item 507 or 508, as applicable, of Regulation S-K if the resales are of Exchange
Notes obtained by such Holder in exchange for Initial Notes acquired by such Holder directly
from the Company.

     (b) Shelf Registration Statement. If required pursuant to Section 4, in connection with the
Shelf Registration Statement, the Company shall comply with all the provisions of Section 6(c)
hereof and shall use its commercially reasonable efforts to effect such registration to permit the
sale of the Transfer Restricted Notes being sold in accordance with the intended method or methods
of distribution thereof, and pursuant thereto the Company will as expeditiously as possible prepare
and file with the Commission a Registration Statement relating to the registration on any
appropriate form under the Securities Act, which form shall be available for

 

 

the sale of the Transfer Restricted Notes in accordance with the intended method or methods of
distribution thereof.

     (c) General Provisions. In connection with any Registration Statement and any Prospectus
required by this Agreement to permit the sale or resale of Transfer Restricted Notes (including,
without limitation, any Registration Statement and the related Prospectus required to permit
resales of Transfer Restricted Notes by Broker-Dealers), the Company shall:

     (i) use its commercially reasonable efforts to keep such Registration Statement
continuously effective for the applicable period of time specified in this Agreement and
provide all requisite financial statements for the period specified in Section 3 or 4
hereof, as applicable; upon the occurrence of any event that would cause any such
Registration Statement or the Prospectus contained therein (A) to contain a material
misstatement or omission or (B) not to be effective and usable for resale of Transfer
Restricted Notes during the period required by this Agreement, the Company shall file
promptly an appropriate amendment to such Registration Statement, in the case of clause (A),
correcting any such misstatement or omission, and, in the case of either clause (A) or (B),
use its commercially reasonable efforts to cause such amendment to be declared effective and
such Registration Statement and the related Prospectus to become usable for their intended
purpose(s) as soon as practicable thereafter;

     (ii) prepare and file with the Commission such amendments and post-effective amendments
to the applicable Registration Statement as may be necessary to keep the Registration
Statement effective for the applicable period set forth in Section 3 or 4 hereof, as
applicable, or such shorter period as will terminate when all Transfer Restricted Notes
covered by such Registration Statement have been sold, or, in the case of a Shelf
Registration Statement, are Freely Tradable; cause the Prospectus to be supplemented by any
required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424
under the Securities Act, and to comply fully with the applicable provisions of Rules 424
and 430A under the Securities Act in a timely manner; and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
Registration Statement during the applicable period in accordance with the intended method
or methods of distribution by the sellers thereof set forth in such Registration Statement
or supplement to the Prospectus;

     (iii) advise the underwriter(s), if any, and selling Holders promptly and, if requested
by such Persons, confirm such advice in writing, (A) when the Prospectus or any Prospectus
supplement or post-effective amendment has been filed, and, with respect to any Registration
Statement or any post-effective amendment thereto, when the same has become effective, (B)
of any request by the Commission for amendments to the Registration Statement or amendments
or supplements to the Prospectus or for additional information relating thereto, (C) of the
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement under the Securities Act or of the suspension by any state securities
commission of the qualification of the Transfer Restricted Notes for offering or sale in any
jurisdiction, or the initiation of any proceeding for any of the preceding purposes, (D) of
the existence of any fact or the happening of

 

 

any event that makes any statement of a material fact made in the Registration
Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated
by reference therein untrue, or that requires the making of any additions to or changes in
the Registration Statement or the Prospectus in order to make the statements therein not
misleading. If at any time the Commission shall issue any stop order suspending the
effectiveness of the Registration Statement, or any state securities commission or other
regulatory authority shall issue an order suspending the qualification or exemption from
qualification of the Transfer Restricted Notes under state securities or blue sky laws, the
Company shall use its commercially reasonable efforts to obtain the withdrawal or lifting of
such order at the earliest possible time;

     (iv) furnish without charge to the Initial Purchasers, each selling Holder named in any
Registration Statement, and each of the underwriter(s), if any, before filing with the
Commission, copies of any Registration Statement or any Prospectus included therein or any
amendments or supplements to any such Registration Statement or Prospectus (including all
documents incorporated by reference after the initial filing of such Registration
Statement), which documents will be subject to the review and reasonable comment of such
Holders and underwriter(s) in connection with such sale, if any, for a period of at least
three Business Days, and the Company will not file any such Registration Statement or
Prospectus or any amendment or supplement to any such Registration Statement or Prospectus
(including all such documents incorporated by reference) to which an Initial Purchaser of
Transfer Restricted Notes covered by such Registration Statement or the underwriter(s), if
any, shall reasonably object in writing within three Business Days after the receipt thereof
(such objection to be deemed timely made upon confirmation of telecopy transmission within
such period). The objection of an Initial Purchaser or underwriter, if any, shall be deemed
to be reasonable if such Registration Statement, amendment, Prospectus or supplement, as
applicable, as proposed to be filed, contains a material misstatement or omission;

     (v) make available at reasonable times for inspection by the Initial Purchasers, the
managing underwriter(s), if any, participating in any disposition pursuant to such Shelf
Registration Statement and any attorney or accountant retained by such Initial Purchasers or
any of the underwriter(s), all financial and other records, pertinent corporate documents
and properties of the Company and cause the Company’s officers, directors and employees to
supply all information reasonably requested by any such Holder, underwriter, attorney or
accountant in connection with such Shelf Registration Statement or any post-effective
amendment thereto subsequent to the filing thereof and prior to its effectiveness; provided,
however, that the foregoing inspection and information gathering shall be coordinated on
behalf of the Initial Purchasers by Banc of America Securities LLC in connection with any
underwritten offering to which it is a party, and on behalf of the Holders by one counsel,
who shall be Davis Polk & Wardwell LLP or such other counsel designated by the Holders of a
majority of the Transfer Restricted Notes included therein; provided, further, that any
information provided pursuant to this paragraph that is designated in writing by the
Company, in good faith, as confidential at the time of delivery of such information shall be
kept confidential by any such Holder, Initial Purchaser, underwriter, attorney or
accountant, and shall be used only in connection with such Shelf

 

 

Registration Statement and the transactions contemplated thereby unless such disclosure
is made in connection with a court proceeding or required by law, or such information
becomes available to the public generally or through a third party without an accompanying
obligation of confidentiality;

     (vi) if requested by any selling Holders or the underwriter(s), if any, as soon as
practicable incorporate in any Shelf Registration Statement or Prospectus, pursuant to a
supplement or post-effective amendment if necessary, such information as such selling
Holders and underwriter(s), if any, may reasonably request to have included therein,
including, without limitation, information relating to the “Plan of Distribution” of the
Transfer Restricted Notes, information with respect to the principal amount of Transfer
Restricted Notes being sold to such underwriter(s), the purchase price being paid therefor
and any other terms of the offering of the Transfer Restricted Notes to be sold in such
offering; and make all required filings of such Prospectus supplement or post-effective
amendment as soon as practicable after the Company is notified of the matters to be
incorporated in such Prospectus supplement or post-effective amendment;

     (vii) cause the Transfer Restricted Notes covered by the Registration Statement to be
rated with at least one rating agency (which such rating agency shall be a nationally
recognized statistical rating organization), if so requested by the Holders of a majority in
aggregate principal amount of Notes covered thereby or the underwriter(s), if any;

     (viii) furnish to each Initial Purchaser, each selling Holder and each of the
underwriter(s), if any, upon request without charge, at least one copy of the Shelf
Registration Statement, as first filed with the Commission, and of each amendment thereto,
including financial statements and schedules, all documents incorporated by reference
therein and all exhibits;

     (ix) deliver to each selling Holder and each of the underwriter(s), if any, without
charge, as many copies of the Prospectus (including each preliminary prospectus) and any
amendment or supplement thereto as such Persons reasonably may request; the Company hereby
consents to the use of the Prospectus and any amendment or supplement thereto by each of the
selling Holders and each of the underwriter(s), if any, in connection with the offering and
the sale of the Transfer Restricted Notes covered by the Prospectus or any amendment or
supplement thereto;

     (x) enter into such agreements (including an underwriting agreement), and make such
representations and warranties, and take all such other actions in connection therewith in
order to expedite or facilitate the disposition of the Transfer Restricted Notes pursuant to
any Shelf Registration Statement contemplated by this Agreement, all to such extent as may
be reasonably requested by any Initial Purchaser or by the Holder of a majority in aggregate
principal amount of Transfer Restricted Notes or the managing underwriter in connection with
any sale or resale pursuant to any Shelf Registration Statement contemplated by this
Agreement; and whether or not an underwriting agreement is entered into and whether or not
the registration is an Underwritten Registration, the Company shall:

 

 

     (A) furnish to each Initial Purchaser, each selling Holder named therein
and each underwriter, if any, in such substance and scope as they may request and as
are customarily made by issuers to underwriters in primary underwritten offerings,
upon the effectiveness of the Shelf Registration Statement:

     (1) a certificate, dated the date of effectiveness of the Shelf
Registration Statement signed by (y) the Chairman of the Board or the Chief
Executive Officer and (z) the principal financial or accounting officer of
the Company, confirming, as of the date thereof, the matters set forth in
paragraphs (i) and (ii) of Section 6(b) of the Purchase Agreement and such
other matters as such parties may reasonably request;

     (2) an opinion and negative assurance letter, dated the date of
effectiveness of the Shelf Registration Statement of counsel for the
Company, covering such matters as are customarily covered in opinions and
negative assurance letters requested in underwritten offerings; and

     (3) a customary comfort letter, dated the date of effectiveness of the
Shelf Registration Statement, from the Company’s independent accountants, in
the customary form and covering matters of the type customarily requested to
be covered in comfort letters by underwriters in connection with primary
underwritten offerings, and covering or affirming the matters set forth in
the comfort letters delivered pursuant to Section 6(c) of the Purchase
Agreement, without exception;

     (B) set forth in full or incorporate by reference in the underwriting
agreement, if any, the indemnification provisions and procedures of Section 8 hereof
with respect to all parties to be indemnified pursuant to said Section; and

     (C) deliver such other documents and certificates as may be reasonably
requested by such parties to evidence compliance with Section 6(c)(xi)(A) hereof and
with any customary conditions contained in the underwriting agreement or other
agreement entered into by the Company pursuant to this Section 6(c)(xi), if any.

     If at any time when the Shelf Registration Statement is required to be effective under
this Agreement the representations and warranties of the Company contemplated in Section
6(c)(xi)(A)(1) hereof cease to be true and correct, the Company shall so advise the Initial
Purchasers and the underwriter(s), if any, and each selling Holder named therein promptly
and, if requested by such Persons, shall confirm such advice in writing;

     (xi) prior to any public offering of Transfer Restricted Notes pursuant to a Shelf
Registration Statement, cooperate with the selling Holders, the underwriter(s), if any, and
their respective counsel in connection with the registration and qualification of the
Transfer Restricted Notes under the state securities or blue sky laws of such jurisdictions
as the selling Holders or underwriter(s), if any, may request and do any and all other

 

 

acts or things necessary or advisable to enable the disposition in such jurisdictions of the
Transfer Restricted Notes covered by the Shelf Registration Statement; provided, however,
that the Company shall not be required to register or qualify as a foreign corporation where
it is not then so qualified or to take any action that would subject it to the service of
process in suits or to taxation, other than those arising out of the offering or sale of the
Transfer Restricted Notes, in any jurisdiction where it is not then so subject;

     (xii) shall issue, upon the request of any Holder of Transfer Restricted Notes covered
by the Registration Statement, Exchange Notes having an aggregate principal amount equal to
the aggregate principal amount of Transfer Restricted Notes surrendered to the Company by
such Holder in exchange therefor or being sold by such Holder; such Exchange Notes to be
registered in the name of such Holder or in the name of the purchaser(s) of such Notes, as
the case may be; in return, the Transfer Restricted Notes held by such Holder shall be
surrendered to the Company for cancellation;

     (xiii) cooperate with the selling Holders and the underwriter(s), if any, to facilitate
the timely preparation and delivery of certificates representing Transfer Restricted Notes
to be sold and not bearing any restrictive legends; and enable such Transfer Restricted
Notes to be in such denominations and registered in such names as the Holders or the
underwriter(s), if any, may request at least two Business Days prior to any sale of Transfer
Restricted Notes made by such Holders or underwriter(s) pursuant to such Shelf Registration
Statement;

     (xiv) use its commercially reasonable efforts to cause the Transfer Restricted Notes
covered by the Shelf Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the seller or sellers
thereof or the underwriter(s), if any, to consummate the disposition of such Transfer
Restricted Notes, subject to the proviso contained in Section 6(c)(xii) hereof;

     (xv) if any fact or event contemplated by Section 6(c)(iii)(D) hereof shall exist or
have occurred, prepare a supplement or post-effective amendment to the Registration
Statement or related Prospectus or any document incorporated therein by reference or file
any other required document so that, as thereafter delivered to the purchasers of Transfer
Restricted Notes, the Prospectus will not contain an untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements therein not
misleading;

     (xvi) provide a CUSIP number for all Notes not later than the effective date of the
Registration Statement covering such Notes and provide the Trustee under the Indenture with
printed certificates for such Notes which are in a form eligible for deposit with the
Depository Trust Company and take all other action necessary to ensure that all such Notes
are eligible for deposit with the Depository Trust Company;

     (xvii) cooperate and assist in any filings required to be made with the FINRA and in
the performance of any due diligence investigation by any underwriter (including

 

 

any
“qualified independent underwriter”) that is required to be retained in accordance with the
rules and regulations of the FINRA;

     (xviii) otherwise use its commercially reasonable efforts to comply with all applicable
rules and regulations of the Commission, and make generally available to its security
holders, as soon as practicable, a consolidated earnings statement meeting the requirements
of Rule 158 under the Securities Act (which need not be audited) for the twelve-month period
(A) commencing at the end of any fiscal quarter in which Transfer Restricted Notes are sold
to underwriters in a firm commitment or best efforts Underwritten Offering or (B) if not
sold to underwriters in such an offering, beginning with the first month of the Company’s
first fiscal quarter commencing after the effective date of the Registration Statement;

     (xix) cause the Indenture to be qualified under the Trust Indenture Act not later than
the effective date of the first Registration Statement required by this Agreement, and, in
connection therewith, cooperate with the Trustee and the Holders of Notes to effect such
changes to the Indenture as may be required for such Indenture to be so qualified in
accordance with the terms of the Trust Indenture Act; and to execute and use its
commercially reasonable efforts to cause the Trustee to execute, all documents that may be
required to effect such changes and all other forms and documents required to be filed with
the Commission to enable such Indenture to be so qualified in a timely manner;

     (xx) cause all Notes covered by the Registration Statement to be listed on each
securities exchange or automated quotation system on which securities of the same class or
series issued by the Company are then listed if requested by the Holders of a majority in
aggregate principal amount of Notes or the managing underwriter(s), if any; and

     (xxi) provide promptly to each Holder upon request each document filed with the
Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange Act (if
such document is not otherwise publicly available).

     Each Holder agrees by acquisition of a Transfer Restricted Note that, upon receipt of any
notice from the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D)
hereof, such Holder will forthwith discontinue disposition of Transfer Restricted Notes pursuant to
the applicable Registration Statement until such Holder’s receipt of the copies of the supplemented
or amended Prospectus contemplated by Section 6(c)(xvi) hereof, or until it is advised in writing
(the “Advice”) by the Company that the use of the Prospectus may be resumed, and has received
copies of any additional or supplemental filings that are incorporated by reference in the
Prospectus. If so directed by the Company, each Holder will deliver to the Company (at the
Company’s expense) all copies, other than permanent file copies then in such Holder’s possession,
of the Prospectus covering such Transfer Restricted Notes that was current at the time of receipt
of such notice. In the event the Company shall give any such notice, the time period regarding the
effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable,
shall be extended by the number of days during the period from and including the date of the giving
of such notice pursuant to Section 6(c)(iii)(D) hereof to and including the date when each selling
Holder covered by such Registration Statement shall have received the copies

 

 

of the supplemented or
amended Prospectus contemplated by Section 6(c)(xvi) hereof or shall have received the Advice;
provided, however, that no such extension shall be taken into account in determining whether
Additional Interest is due pursuant to Section 5 hereof or the amount of such Additional Interest,
it being agreed that the Company’s option to suspend use of a Registration Statement pursuant to
this paragraph shall be treated as a Registration Default for purposes of Section 5 hereof, except
as otherwise provided therein.

     (d) Notwithstanding anything to the contrary contained herein, the Company may suspend the
effectiveness of the Shelf Registration Statement for up to 45 days in any 90-day period but no
more than 90 days in any 360-day period (such period, a “Suspension Period”) (except for the
consecutive 45-day period immediately prior to maturity of the Notes), if there is a possible
acquisition or business combination or other transaction, business development or event involving
the Company that may require disclosure in the Shelf Registration Statement and the Company
determines in the exercise of its reasonable judgment that such disclosure is not in the best
interests of the Company or obtaining any financial statements relating to an acquisition or
business combination required to be included in the Shelf Registration Statement would be
impracticable. If a Suspension Period is triggered, the Company shall promptly notify any such
Holders of the suspension of the effectiveness of the Shelf Registration Statement; provided that
such notice shall not require the Company to disclose the possible acquisition or business
combination or other transaction, business development or event if the Company determines in good
faith that such acquisition or business combination or other transaction, business development or
event should remain confidential. Upon the abandonment, consummation or termination of the
possible acquisition or business combination or other transaction, business development or event or
the availability of the required financial statements with respect to a possible acquisition or
business combination, the suspension of the use of the Shelf Registration Statement pursuant to
this paragraph shall cease and the Company shall promptly notify such Holders that the use of the
prospectus contained in the Shelf Registration Statement as amended or supplemented, as applicable,
may resume. The Company shall provide a reasonable number of copies of the latest version of such
prospectus to such Holders, promptly upon written request, and in no event later than five Business
Days after such request, at any time during such period.

          SECTION 7. Registration Expenses.

     (a) All expenses incident to the Company’s performance of or compliance with this Agreement
will be borne by the Company, regardless of whether a Registration Statement becomes effective,
including, without limitation: (i) all registration and filing fees and expenses (including filings
made by any Initial Purchaser or Holder with the FINRA (and, if applicable, the reasonable fees and
expenses of any “qualified independent underwriter” and its counsel that may be required by the
rules and regulations of the FINRA; provided, that the Company shall not be responsible for fees
for such counsel in excess of $10,000)); (ii) all fees and expenses of compliance with federal
securities and state securities or blue sky laws; (iii) all expenses of printing (including
printing certificates for the Exchange Notes to be issued in the Exchange Offer and printing of
Prospectuses), messenger and delivery services and telephone; (iv) all fees and disbursements of
counsel for the Company and, subject to Section 7(b) hereof, the Holders of

 

 

Transfer Restricted
Notes; (v) if required pursuant to the terms of this Agreement, all application and filing fees in
connection with listing the Exchange Notes on a securities exchange or automated quotation system
pursuant to the requirements thereof; and (vi) all fees and disbursements of independent certified
public accountants of the Company (including the expenses of any special audit and comfort letters
required by or incident to such performance).

     The Company will, in any event, bear its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or accounting duties), the
expenses of any annual audit and the fees and expenses of any Person, including special experts,
retained by the Company.

     (b) In connection with any Registration Statement required by this Agreement (including,
without limitation, the Exchange Offer Registration Statement and the Shelf Registration
Statement), the Company, will reimburse the Initial Purchasers and the Holders of Transfer
Restricted Notes being tendered in the Exchange Offer and/or resold pursuant to the “Plan of
Distribution” contained in the Exchange Offer Registration Statement or registered pursuant to the
Shelf Registration Statement, as applicable, for the reasonable fees and disbursements of not more
than one counsel, who shall be Davis Polk & Wardwell LLP or such other counsel as may be
chosen by the Holders of a majority in principal amount of the Transfer Restricted Notes for whose
benefit such Registration Statement is being prepared, in each case up to a maximum of $25,000.

          SECTION 8. Indemnification.

     (a) The Company agrees to indemnify and hold harmless (i) each Holder, (ii) each Person, if
any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) any Holder (any of the Persons referred to in this clause (ii) being hereinafter
referred to as a “controlling person”) and (iii) the respective officers, directors, partners,
employees, and agents of any Holder or any controlling person (any Person referred to in clause
(i), (ii) or (iii) may hereinafter be referred to as an “Indemnified Holder”), to the fullest
extent lawful, from and against any and all losses, claims, damages, liabilities, judgments,
actions and expenses (including, without limitation, and as incurred, reimbursement of all
reasonable costs of investigating, preparing, pursuing, settling, compromising, paying or defending
any claim or action, or any investigation or proceeding by any governmental agency or body,
commenced or threatened, including the reasonable fees and expenses of counsel to any Indemnified
Holder), joint or several, directly or indirectly caused by, related to, based upon, arising out of
or in connection with any untrue statement or alleged untrue statement of a material fact contained
in any Registration Statement or Prospectus (or any amendment or supplement thereto), or any
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such losses, claims,
damages, liabilities or expenses are caused by an untrue statement or omission or alleged untrue
statement or omission that is made in reliance upon and in conformity with information relating to
any of the Holders furnished in writing to the Company by any of the Holders expressly for use
therein. This indemnity agreement shall be in addition to any liability which the Company may
otherwise have.

 

 

     In case any action or proceeding (including any governmental or regulatory investigation or
proceeding) shall be brought or asserted against any of the Indemnified Holders with respect to
which indemnity may be sought against the Company, such Indemnified Holder (or the Indemnified
Holder controlled by such controlling person) shall promptly notify the Company in writing;
provided, however, that the failure to give such notice shall not relieve the Company of its
obligations pursuant to this Agreement unless and to the extent such failure to give notice results
in the loss or compromise of any substantial rights or defenses of the Company. The Company shall
be entitled to participate in any such action and, to the extent that it shall wish, to assume the
defense thereof, with counsel reasonable satisfactory to such Indemnified Holder, and, after notice
from the Company to such Indemnified Holder of its election so to assume the defense, thereof, the
Company shall not be liable to such Indemnified Holder pursuant to this Agreement for any legal or
other expenses, in each case subsequently incurred by such Indemnified Holder, in connection with
the defense thereof other than reasonable costs of investigation. Notwithstanding the Company’s
election to appoint counsel to represent the Indemnified Holders in an action, such Indemnified
Holders shall have the right to employ separate counsel (including local counsel), and the Company
shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of
counsel chosen by the Company to represent the Indemnified Holders would present such counsel with
a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action
include both the Indemnified Holders and the Company and the Indemnified Holders shall have
reasonably concluded that there may be legal defenses available to it and/or other Indemnified
Holders which are different from or additional to those available to the Company, (iii) the Company
shall not have employed counsel satisfactory to the Indemnified Holders to represent the
Indemnified Holders within a reasonable time after notice of the institution of such action or (iv)
the Company shall authorize the Indemnified Holders to employ separate counsel at the expense of
the Company. The Company shall not, in connection with any one such action or proceeding or
separate but substantially similar or related actions or proceedings in the same jurisdiction
arising out of the same general allegations or circumstances, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time
for such Indemnified Holders. The Company shall be liable for any settlement of any such action or
proceeding effected with the Company’s prior written consent, and the Company agrees to indemnify
and hold harmless any Indemnified Holder from and against any loss, claim, damage, liability or
expense by reason of any settlement of any action effected with the written consent of the Company.
The Company shall not, without the prior written consent of each Indemnified Holder, settle or
compromise or consent to the entry of judgment in or otherwise seek to terminate any pending or
threatened action, claim, litigation or proceeding in respect of which indemnification or
contribution may be sought hereunder (whether or not any Indemnified Holder is a party thereto),
unless such settlement, compromise, consent or termination includes an unconditional release of
each Indemnified Holder from all liability arising out of such action, claim, litigation or
proceeding.

     (b) Each Holder of Transfer Restricted Notes agrees, severally and not jointly, to indemnify
and hold harmless the Company, its directors and officers who sign a Registration Statement, and
any Person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) the Company, and the respective officers, directors, partners, employees,
representatives and agents of each such Person, to the same extent as the foregoing

 

 

indemnity from
the Company to each of the Indemnified Holders, but only with respect to claims and actions based
on information relating to such Holder furnished by such Holder in writing expressly for inclusion
in any Exchange Offer Registration Statement or Shelf Registration Statement. In case any action
or proceeding shall be brought against the Company or its directors or officers or any such
controlling person in respect of which indemnity may be sought against a Holder of Transfer
Restricted Notes, such Holder shall have the rights and duties given the Company, and the Company,
its directors and officers and such controlling person shall have the rights and duties given to
each Holder by the preceding paragraph.

     (c) If the indemnification provided for in this Section 8 is unavailable to an indemnified
party under Section 8(a) or (b) hereof (other than by reason of exceptions provided in those
Sections) in respect of any losses, claims, damages, liabilities, judgments, actions or expenses
referred to therein, then each applicable indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages, liabilities or expenses in such proportion as is
appropriate to reflect the relative benefits received by the Company, on the one hand, and the
Holders, on the other hand, from the Initial Placement (which in the case of the Company shall be
deemed to be equal to the total net proceeds to the Company from the Initial Placement) or if such
allocation is not permitted by applicable law, the relative fault of the Company, on the one hand,
and the Holders, on the other hand, in connection with the statements or omissions which resulted
in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable
considerations. The relative fault of the Company on the one hand and of the Indemnified Holder on
the other shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company, on the one hand, or the Indemnified Holders, on the
other hand, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The amount paid or payable by a party as a result
of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to
include, subject to the limitations set forth in the second paragraph of Section 8(a) hereof, any
legal or other fees or expenses reasonably incurred by such party in connection with investigating
or defending any action or claim.

     The Company and each Holder of Transfer Restricted Notes agree that it would not be just and
equitable if contribution pursuant to this Section 8(c) were determined by pro rata allocation
(even if the Holders were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to in the
immediately preceding paragraph. The amount paid or payable by an indemnified party as a result of
the losses, claims, damages, liabilities or expenses referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this Section 8, none of the
Holders (and its related Indemnified Holders) shall be required to contribute, in the aggregate,
any amount in excess of the amount by which the total price at which the Initial Notes or Exchange
Notes sold by such Holder exceeds the amount of any damages that such Holder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section

 

 

11(f) of
the Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to this Section 8(c)
are several in proportion to the respective principal amount of Initial Notes held by each of the
Holders hereunder and not joint.

     SECTION 9. Rule 144A. The Company hereby agrees with each Holder, for so long as
any Transfer Restricted Notes remain outstanding, to make available to any Holder or
beneficial owner of Transfer Restricted Notes in connection with any sale thereof and any
prospective purchaser of such Transfer Restricted Notes from such Holder or beneficial
owner, the information required by Rule 144A(d)(4) under the Securities Act in order to
permit resales of such Transfer Restricted Notes pursuant to Rule 144A under the
Securities Act.

     SECTION 10. Participation in Underwritten Registrations. No Holder may participate
in any Underwritten Registration hereunder unless such Holder (a) agrees to sell such
Holder’s Transfer Restricted Notes on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b) completes
and executes all reasonable questionnaires, powers of attorney, indemnities, underwriting
agreements, lock-up letters and other documents required under the terms of such
underwriting arrangements.

     SECTION 11. Selection of Underwriters. The Holders of Transfer Restricted Notes
covered by the Shelf Registration Statement who desire to do so may sell such Transfer
Restricted Notes in an Underwritten Offering. In any such Underwritten Offering, the
investment banker(s) and managing underwriter(s) that will administer such offering will
be selected by the Holders of a majority in aggregate principal amount of the Transfer
Restricted Notes included in such offering; provided, however, that such investment
banker(s) and managing underwriter(s) must be reasonably satisfactory to the Company.

     SECTION 12. Miscellaneous.

     (a) Remedies. The Company hereby agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement
and hereby agrees to waive the defense in any action for specific performance that a remedy at law
would be adequate.

     (b) No Inconsistent Agreements. The Company will not on or after the date of this Agreement
enter into any agreement with respect to its securities that is inconsistent with the rights
granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The
rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of the Company’s securities under any agreement in effect on
the date hereof.

     (c) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions

 

 

hereof may not be given
unless the Company has (i) in the case of Section 5 hereof and this Section 12(d)(i), obtained the
written consent of Holders of all outstanding Transfer Restricted Notes and (ii) in the case of all
other provisions hereof, obtained the written consent of Holders of a majority of the outstanding
principal amount of Transfer Restricted Notes (excluding any Transfer Restricted Notes held by the
Company or its Affiliates). Notwithstanding the foregoing, a waiver or consent to departure from
the provisions hereof that relates exclusively to the rights of Holders whose securities are being
tendered pursuant to the Exchange Offer and that does not affect directly or indirectly the rights
of other Holders whose securities are not being tendered pursuant to such Exchange Offer may be
given by the Holders of a majority of the outstanding principal amount of Transfer Restricted Notes
being tendered or registered; provided, however, that, with respect to any matter that directly or
indirectly affects the rights of any Initial Purchaser hereunder, the Company shall obtain the
written consent of each such Initial Purchaser with respect to which such amendment, qualification,
supplement, waiver, consent or departure is to be effective.

     (d) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, first-class mail (registered or certified, return receipt
requested), telex, telecopier, or air courier guaranteeing overnight delivery:

     (i) if to a Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture; and

     (ii) if to the Company:

PHH Corporation

3000 Leadenhall Road

Mount Laurel, New Jersey 08054

Fax: (856) 917-0950

Attention: General Counsel

With a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates

4 Times Square

New York, New York 10036

Fax: (212) 735-2000

Attention: Michael Zeidel

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if
telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery.

     Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee at the address specified in the Indenture.

 

 

     (e) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties, including, without limitation, and without the
need for an express assignment, subsequent Holders of Transfer Restricted Notes; provided, however,
that this Agreement shall not inure to the benefit of or be binding upon a successor or assign of a
Holder unless and to the extent such successor or assign acquired Transfer Restricted Notes from
such Holder.

     (f) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

     (g) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

     (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.

     (i) Severability. In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or unenforceable, the
validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

(j) Entire Agreement. This Agreement is intended by the parties as a final expression of their
agreement and intended to be a complete and exclusive statement of the agreement and understanding
of the parties hereto in respect of the subject matter contained herein. There are no
restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with respect to the Transfer
Restricted Notes. This Agreement supersedes all prior agreements and understandings between the
parties with respect to such subject matter.

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

	 	 	 	 	 
	 	PHH CORPORATION

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Title: SVP & Treasurer 	 
	 	 	 	 

 

 

     The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date
first above written:

BANC OF AMERICA SECURITIES LLC

CITIGROUP GLOBAL MARKETS INC.

J.P. MORGAN SECURITIES INC.

RBS SECURITIES INC.

	 	 	 	 	 
	 	By: Banc of America Securities LLC

 	 
	 	By:  	/s/ Adam Cady
 	 
	 	 	Title: Managing Director 	 
	 	 	 	 
	 
	 	By: Citigroup Global Markets Inc.

 	 
	 	By:  	/s/ Robert Goldstein
 	 
	 	 	Title: Managing Director 	 
	 	 	 	 
	 
	 	By: J.P. Morgan Securities Inc.

 	 
	 	By:  	/s/ Maria Sramek
 	 
	 	 	Title: Executive Director 	 
	 	 	 	 
	 
	 	By: RBS Securities Inc.

 	 
	 	By:  	/s/ Michael F. Newcomb II
 	 
	 	 	Title: Managing Directors

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]