Document:

EX-10.75

Exhibit 10.75

EXECUTION COPY

AMENDMENT NO. 4

to

AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

     This AMENDMENT NO. 4 (this “Amendment”), dated as of March 13, 2009 (the “Amendment Effective Date”), is made by and between PHH MORTGAGE CORPORATION, a New Jersey
corporation (the “Seller”) and THE ROYAL BANK OF SCOTLAND PLC (the “Buyer”).

WITNESSETH:

     WHEREAS, Seller and Buyer are parties to that certain Amended and Restated Master Repurchase
Agreement, dated as of June 26, 2008, as amended by Amendment No. 1 thereto, dated as of July 29,
2008, as amended by Amendment No. 2 thereto, dated as of December 19, 2008 and as amended by
Amendment No. 3 thereto, dated as of December 30, 2008 (as further amended, supplemented or
otherwise modified from time to time in accordance with its terms, the “Master Repurchase
Agreement”), whereby Buyer has agreed to purchase from time to time, certain Eligible Loans, as
provided in and subject to the terms and conditions of the Master Repurchase Agreement, and the
other agreements entered into in connection with the Master Repurchase Agreement (the “Program
Documents”);

     WHEREAS, the parties desire to amend certain provisions of the Master Repurchase Agreement as
set forth herein; and

     WHEREAS, Section 30 of the Master Repurchase Agreement permits the amendments contemplated
herein.

     NOW, THEREFORE, in consideration of the foregoing and the mutual agreements hereinafter set
forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

1. Definitions. Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed thereto in the Master Repurchase Agreement, including by way of reference to any
other documents or agreements.

2. Amendments to Master Repurchase Agreement. As of the Amendment Effective Date, the
Master Repurchase Agreement is hereby amended as provided below:

     (a) Section 2 of the Master Repurchase Agreement is hereby amended by adding the following
defined terms in their appropriate alphabetical positions:

     “Correspondent Loan” shall mean a Loan which is (i) originated by a
Correspondent Seller and underwritten in accordance with the Underwriting Guidelines
and (ii) acquired by the Seller from a Correspondent Seller in the ordinary course
of business for sale to the Buyer pursuant to this Agreement. A Correspondent Loan
may be either a Dry Loan or an Undocumented Loan.

 

 

     “Correspondent Loan Schedule” shall have the meaning specified in the
Custodial Agreement.

     “Correspondent Seller” shall mean a mortgage loan originator that sells
Loans originated by it to the Seller as a “correspondent” or “private label” client.

     “Correspondent Seller Release” shall mean, with respect to any
Correspondent Loan, a release by the related Correspondent Seller, in the form of
Exhibit M hereto, of all right, title and interest, including any security interest,
in such Correspondent Loan.

     “Wet Loan Schedule” shall have the meaning specified in the Custodial
Agreement.

     (b) Section 3(a) of the Master Repurchase Agreement is hereby amended and restated in its
entirety to read as follows:

     “(a) Subject to the terms and conditions of the Program Documents, Buyer shall,
from time to time enter into Transactions with an aggregate Purchase Price for all
Purchased Loans acquired by Buyer not to exceed the Maximum Aggregate Purchase
Price. Unless otherwise agreed, Seller shall request that Buyer enter into a
Transaction by delivering or causing to be delivered (A) in the case of any Dry
Loans or any Undocumented Loans (other than any Dry Loans or Undocumented Loans that
are Correspondent Loans), (i) a Transaction Notice, appropriately completed, and a
Loan Schedule to Buyer and Custodian, and (ii) the Mortgage File to Custodian for
each Loan proposed to be included in such Transaction, which Transaction Notice and
Loan Schedule must be received no later than 5:00 p.m. (New York City time) one
Business Day prior to the requested Purchase Date, (B) in the case of any
Correspondent Loans, (i) a Transaction Notice, appropriately completed, and a Loan
Schedule to Buyer, Custodian and Disbursement Agent and a Correspondent Seller
Release, duly executed and delivered by each applicable Correspondent Seller, to the
Buyer, and (ii) the Mortgage File to Custodian for each Loan proposed to be included
in such Transaction, which Transaction Notice, Loan Schedule and Correspondent
Seller Releases must be received no later than 11:00 a.m. (New York City time) on
the requested Purchase Date or (C) in the case of any Wet Loans, (i) a Transaction
Notice, appropriately completed, and a Loan Schedule to Buyer, Custodian and
Disbursement Agent, and (ii) the Mortgage File to Custodian for each Loan proposed
to be included in such Transaction. The Transaction Notice and Loan Schedule
relating to any AM Funded Wet Loan must be received by no later than 5:00 p.m. (New
York City time) one Business Day prior to the requested Purchase Date. The Loan Schedule relating to any PM Funded Wet Loan
must be received by no later than 9:00 a.m. (New York City time) and the Transaction
Notice relating to any PM Funded Wet Loan must be received by no later than 11:00
a.m. (New York City time), in each case on the requested Purchase Date. Each
Transaction Notice and the Loan Schedule in respect of the Eligible Loans that
Seller proposes to include in the related Transaction shall

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clearly indicate those Loans that are intended to be Undocumented Loans (other than
Correspondent Loans), AM Funded Wet Loans, PM Funded Wet Loans, Dry Loans (other
than Correspondent Loans) or Correspondent Loans (separately identifying
Correspondent Loans that are Dry Loans and Correspondent Loans that are Undocumented
Loans). Each Transaction Notice shall specify the proposed Purchase Date, Purchase
Price, Pricing Rate and Repurchase Date (subject to Section 3(i)). Seller agrees to
repurchase from Buyer, on the same Business Day of discovery, any Undocumented Loans
or Wet Loans that were previously subject to a Transaction that do not close for any
reason including, but not limited to, a Rescission. In the event that the parties
hereto desire to enter into a Transaction on terms other than as set forth in this
Agreement and the Transaction Notice, Buyer shall deliver to Seller, in electronic
or other format, a “Confirmation” specifying such terms prior to entering into such
Transaction, including, without limitation, the Purchase Date, the Purchase Price,
the Pricing Rate therefor and the Repurchase Date. By entering in to a Transaction
with Buyer, Seller consents to the terms set forth in any related Confirmation. Any
such Transaction Notice and the related Confirmation, if any, together with this
Agreement, shall constitute conclusive evidence of the terms agreed to between Buyer
and Seller with respect to the Transaction to which the Transaction Notice and
Confirmation, if any, relates. In the event of any conflict between this Agreement
and any Confirmation, the terms of such Confirmation shall control with respect to
the related Transaction.”

     (c) Section 3(b) of the Master Repurchase Agreement is hereby amended and restated in its
entirety to read as follows:

     “(b) Pursuant to and in accordance with the terms and provisions of the
Custodial Agreement, the Custodian shall review any Required Documents delivered to
it and shall deliver to Buyer, via Electronic Transmission acceptable to Buyer,
Custodian Loan Transmissions and Exception Reports showing the status of all Loans
then held by the Custodian, including but not limited to the Undocumented Loans
(other than Correspondent Loans), Wet Loans, Dry Loans (other than Correspondent
Loans) and Correspondent Loans (including whether such Correspondent Loans are Dry
Loans or Undocumented Loans) subject to Exceptions, and the time the related Loan
Documents have been released pursuant to Sections 6(b) or Section 7 of the Custodial
Agreement. In addition, pursuant to and in accordance with the terms and provisions
of the Custodial Agreement, the Custodian shall deliver to Buyer on each Purchase
Date and such other dates as specified in the Custodial Agreement, one or more Trust
Receipts relating to the Loans. The original copies of each Trust Receipt shall be
delivered to JPMorgan Chase Bank at Four New York Plaza, Ground Floor, Outsourcing
Department, New York, New York 10004, [***], telephone number [***], as agent for
Buyer

 

			
	[***]	 	INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

3

 

by overnight delivery using a nationally recognized insured overnight delivery
service.”

     (d) Section 3(c) of the Master Repurchase Agreement is hereby amended and restated in its
entirety to read as follows:

     “(c) Notwithstanding the provisions of Sections 3(a) and 3(b) above requiring
the execution of a Transaction Notice and delivery of the Mortgage Files to the
Custodian prior to the Purchase Date, with respect to each Transaction involving a
Wet Loan or an Undocumented Loan (including any Correspondent Loan that is an
Undocumented Loan), Seller shall, in lieu of delivering the Mortgage Files with
respect to such Wet Loans and Undocumented Loans on such Purchase Date or date of
substitution: (i) prior to 5:00 p.m. (New York City time) on the Business Day
immediately preceding the related Purchase Date or date of substitution of any
Undocumented Loans (other than any Correspondent Loans), deliver to the Custodian an
Undocumented Loan Schedule setting forth a list of all such Undocumented Loans and
cause the Custodian to deliver to Buyer, by no later than 6:00 p.m. (New York City
time) on such preceding Business Day, a Notice of Intent to Issue Trust Receipt with
respect thereto in accordance with the Custody Agreement, (ii) prior to 11:00 a.m.
(New York City time) on the related Purchase Date or date of substitution of any
Undocumented Loans that are Correspondent Loans, deliver to the Custodian a
Correspondent Loan Schedule setting forth a list of all such Undocumented Loans that
are Correspondent Loans and cause the Custodian to deliver to Buyer, by no later
than 1:00 p.m. (New York City time) on such Business Day, a Notice of Intent to
Issue Trust Receipt with respect thereto in accordance with the Custody Agreement,
(iii) prior to 5:00 p.m. (New York City time) on the Business Day immediately
preceding the related Purchase Date or date of substitution of any AM Funded Wet
Loans deliver to the Custodian a Wet Loan Schedule, setting forth a list of all such
AM Funded Wet Loans and cause the Custodian to deliver to Buyer, by no later than
6:00 p.m. (New York City time) on such preceding Business Day, a Notice of Intent to
Issue Trust Receipt, with respect thereto, in accordance with the Custody Agreement,
(iv) prior to 9:00 a.m. (New York City time) on the Purchase Date or date of
substitution of any PM Funded Wet Loans deliver to the Custodian a Wet Loan Schedule
setting forth a list of all such PM Funded Wet Loans and cause the Custodian to
deliver to Buyer by no later than 11:00 a.m. (New York City time) on such Purchase
Date a Notice of Intent to Issue Trust Receipt with respect thereto, in accordance
with the Custody Agreement, and (v) in each case, deliver the Mortgage Files to the
Custodian and cause the Custodian to deliver a Trust Receipt to Buyer (by telecopier
with hard copy to follow on the following Business Day) not later than the day that
is ten (10) Business Days following the related Purchase Date or date of
substitution, as applicable, indicating that such Wet Loan or Undocumented Loan has
converted to a Dry Loan, in accordance with the procedures set forth in the Custody
Agreement. The original copies of

4

 

such Trust Receipts shall be delivered to JPMorgan Chase Bank at Four New York
Plaza, Ground Floor, Outsourcing Department, New York, New York 10004, Attention:
[***], telephone number [***], as agent for Buyer by overnight delivery using a
nationally recognized insured overnight delivery service.”

 

			
	[***]	 	INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED.  ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

5

 

     (e) Section 3(d) of the Master Repurchase Agreement is hereby amended and restated in its
entirety to read as follows:

     “(d) Upon Seller’s request to enter into a Transaction pursuant to Section
3(a), Buyer shall, provided all conditions precedent set forth in Section 3 and in
Sections 9(a) and 9(b) have been met, and provided no Default, Event of Default or
Event of Termination shall have occurred and be continuing, if all conditions
precedent are satisfied (i) with respect to Dry Loans or Undocumented Loans (other
than any Dry Loans or Undocumented Loans that are Correspondent Loans), by 6:00 p.m.
(New York City time) on the Business Day preceding the requested Purchase Date, (ii)
with respect to AM Funded Wet Loans, by 6:00 p.m. (New York City time) on the
Business Day preceding the requested Purchase Date, (iii) with respect to PM Funded
Wet Loans, by 11:00 a.m. (New York City Time) on the requested Purchase Date or (iv)
with respect to Correspondent Loans, by 1:00 p.m. on the requested Purchase Date,
purchase the Eligible Loans included in the related Transaction Notice by
transferring, via wire transfer (pursuant to Wire Instructions provided by Seller to
Buyer and, in the case of any Wet Loans or Correspondent Loans, to Disbursement
Agent, on or prior to such Purchase Date), the Purchase Price. Buyer shall pay such
Purchase Price (i) with respect to Dry Loans or Undocumented Loans (other than any
Dry Loans or Undocumented Loans that are Correspondent Loans), not later than 2:00
p.m. (New York City time) on the requested Purchase Date, (ii) with respect to AM
Funded Wet Loans, not later than 9:00 a.m. (New York City time) on the requested
Purchase Date, (iii) with respect to PM Funded Wet Loans, not later than 11:30 a.m.
(New York City time) on the requested Purchase Date and (iv) with respect to
Correspondent Loans, by 3:00 p.m. on the requested Purchase Date. Purchases of Wet
Loans and Correspondent Loans shall be consummated in accordance with the procedures
set forth in the Disbursement Agent Agreement. Seller acknowledges and agrees that
the Purchase Price paid in connection with any servicing released Loans that are
purchased in any Transaction includes a mutually negotiated premium allocable to the
portion of such Purchased Loans that constitutes the related Servicing Rights.”

     (f) Section 9(b)(v)(B) of the Master Repurchase Agreement is hereby amended and restated in
its entirety to read as follows:

     “(B) The Dry Loan Trust Receipt with respect to such Purchased Loans consisting
of Dry Loans (including any Correspondent Loan that is a Dry Loan), the Undocumented
Loan Trust Receipt with respect to such Purchased Loans consisting of Undocumented
Loans (including any Correspondent Loan that is an Undocumented Loan), and the Wet
Loan Trust Receipt with respect to such Purchased Loans consisting of Wet Loans, in
each case separately identifying such categories of Loans as Buyer may from time to
time request pursuant to the terms and provisions of the Custodial Agreement and
with the related Custodian Loan Transmission and Exception Report or Undocumented
Loan Schedule,

6

 

Correspondent Loan Schedule (with respect to any Correspondent Loan that is an
Undocumented Loan) and Wet Loan Schedule, as applicable, attached; and”

     (g) A new Section 9(b)(xix) is hereby added to Section 9(b) of the Master Repurchase Agreement
to read as follows:

     “(xix) With respect to the initial purchase of any Purchased Loan that is a
Correspondent Loan, prior to the initial Purchase Date for any such Correspondent
Loan (i) Seller and the Disbursement Agent shall have entered into an amendment and
restatement of the Disbursement Agent Agreement in the form attached hereto as
Exhibit A and (ii) Seller and Custodian shall have entered Amendment No. 3 to the
Custodial Agreement in the form attached hereto as Exhibit B.”

     (h) A new Section 9(b)(xx) is hereby added to Section 9(b) of the Master Repurchase Agreement
to read as follows:

     “(xx) With respect to each Correspondent Loan, Buyer shall have received a
Correspondent Seller Release for such Purchased Loan that is duly executed and
delivered by the related Correspondent Seller by no later than the time set forth in
Section 3(a) hereof.”

     (i) Beginning with Section 12(ee), all subsections of Section 12 having a later alphabetical
designation are hereby amended and restated in their entirety to read as follows:

“(ee) [Reserved].

(ff) [Reserved].

(gg) [Reserved].

(hh) [Reserved].

(ii) Third Party Loan Purchase Proceeds Account. Seller has directed all
third party purchasers to deposit into the Third Party Loan Purchase Proceeds
Account the purchase price and all other amounts to be deposited by any third party
purchaser into the Third Party Loan Purchase Proceeds Account in connection with
such third party’s purchase from Seller from time to time of Purchased Loans that
are subject to Transactions under this Agreement immediately prior to such purchase.
The Third Party Loan Purchase Proceeds Account Bank shall transfer, each Business
Day, amounts held in the Third Party Loan Purchase Proceeds Account to an account
designated by Buyer in the amount necessary to reduce the aggregate outstanding
Repurchase Price of all Purchased Loans sold by Seller to third parties and all
other related Obligations to zero. Seller shall have no right of withdrawal from
the Third Party Loan Purchase Proceeds Account.

(jj) Errors and Omissions Insurance. As of the Amendment Effective Date,
and as of the date of each delivery of a Wet Loan, Seller shall have obtained a

7

 

certificate of the related insurer certifying to the existence of errors and
omissions insurance and/or mortgage impairment insurance maintained in sufficient
amounts with financially sound and reputable insurance companies in accordance with
Section 13(v) (or written evidence that Seller’s blanket bond coverage maintained in
accordance with Section 13(v) is in effect with respect to such Wet Loan) and, upon
request by Buyer, all such certificates or written evidence in possession of Seller
shall be made available for audit by Buyer or its designee. Such insurance policies
inure to the benefit of, and the rights thereunder may be enforced by, Seller and
its successors and assigns, including Buyer.

(kk) Instructions to Disbursement Agent. The wire amounts set forth in the
Wire Instructions provided to the Disbursement Agent pursuant to Section 3(a),
Section 3(b) and Section 3(e) of the Disbursement Agent Agreement are identical to
the balances set forth in the related Wet Loan Schedule (with respect to Wet Loans)
and the related Correspondent Loan Schedule (with respect to Correspondent Loans),
in either case provided to Buyer and no discrepancy exists between the information
set forth in such Wire Instructions and the related Wet Loan Schedule or related
Correspondent Loan Schedule, as applicable.”

     (j) Subsection (a) of Schedule 1-A of the Master Repurchase Agreement is hereby amended and
restated in its entirety to read as follows:

     “(a) Loans as Described. The information set forth in the Loan
Schedule, the Undocumented Loan Schedule, the Correspondent Loan Schedule and the
Wet Loan Schedule, as applicable, with respect to the Loan is complete, true and
correct in all material respects.”

     (k) Exhibit D (Form of Transaction Notice) is hereby deleted in its entirety and replaced with
the exhibit attached hereto as Exhibit D.

     (l) Exhibit M (Form of Correspondent Seller Release) is hereby added to the Exhibits to the
Master Repurchase Agreement in the form attached hereto as Exhibit M.

3. Fees and Expenses. Seller hereby agrees to pay to Buyer, on demand, any and all
reasonable fees, costs and expenses (including reasonable fees and expenses of counsel) incurred by
Buyer in connection with the development, preparation and execution of this Amendment, irrespective
of whether any transactions hereunder are executed.

4. Confirmation of Master Repurchase Agreement; Seller Representations.

     (a) Seller hereby acknowledges and agrees that, upon effectiveness of this Amendment, the
Master Repurchase Agreement shall be, and be deemed to be, modified and amended in accordance
herewith and the respective rights, limitations, obligations, duties, liabilities and immunities of
Seller and Buyer shall hereafter be determined, exercised and enforced subject in all respects to
such modifications and amendments, and all the terms and conditions of this Amendment shall be and
be deemed to be part of the terms and conditions of the Master Repurchase Agreement and the other
Program Documents for any and all purposes. Except as expressly amended or released and discharged
hereby, all of the terms of the Master Repurchase

8

 

Agreement and the other Program Documents including, without limitation, security interests
granted thereunder, shall remain in full force and effect and are hereby ratified and confirmed in
all respects. Seller hereby acknowledges and agrees that any and all Obligations of Seller arising
out of or relating to Purchases, or otherwise, shall remain in full force and effect until their
payment in full and termination in accordance with the terms of the Master Repurchase Agreement.
This Amendment shall not constitute a novation.

     (b) Seller represents and warrants that, as of the date of this Amendment, (i) Seller has the
requisite power and authority, and legal right, to execute and deliver this Amendment and to
perform its obligations under this Amendment and the Master Repurchase Agreement, (ii) Seller has
taken all necessary corporate and legal action to duly authorize the execution and delivery of this
Amendment and the performance of its obligations under this Amendment and the Master Repurchase
Agreement, (iii) this Amendment has been duly executed and delivered by Seller, (iv) each of this
Amendment and the Master Repurchase Agreement constitutes a legal, valid and binding obligation of
Seller enforceable against it in accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
rights of creditors generally and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law), and (v) after giving effect to this Amendment, no Default or
Event of Default has occurred and is continuing.

     (c) Each representation and warranty of Seller contained in the Master Repurchase Agreement is
true and correct and is hereby restated and affirmed.

     (d) Each covenant and each other agreement of Seller contained in the Master Repurchase
Agreement (as modified by this Amendment, if applicable) is hereby restated and affirmed.

5. Further Assurances. The Seller hereby agrees to execute and deliver such additional
documents, opinions, instruments or agreements as may be reasonably necessary and appropriate to
effectuate the purposes of this Amendment and the Master Repurchase Agreement.

6. Conflicts. In the event of a conflict of any provision hereof with any provision or
definition set forth in the Master Repurchase Agreement the provisions and definitions of this
Amendment shall control.

7. Governing Law. This Amendment and the Master Repurchase Agreement shall be governed by
New York law without reference to choice of law doctrine (but with reference to Section 5-1401 of
the New York General Obligations Law, which by its terms applies to this Amendment and the Master
Repurchase Agreement).

8. Severability. Any provision of this Amendment, the Master Repurchase Agreement or the
other Program Documents which is prohibited, unenforceable or not authorized in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability
or non-authorization without invalidating the remaining provisions hereof or thereof or affecting
the validity, enforceability or legality of such provisions in any other jurisdiction.

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9. Entire Agreement. This Amendment, together with the Exhibits attached hereto and the
Master Repurchase Agreement and the other Program Documents as amended hereby, embody the entire
agreement and understanding of the parties hereto with respect to the subject matter hereof and
supersede any and all prior agreements, arrangements and understandings relating to the matters
provided for herein. No alteration, waiver, amendments, or change or supplement hereto shall be
binding or effective unless the same is set forth in writing and is signed by a duly authorized
representative of each party hereto.

10. Binding Effect. This Amendment, together with the Exhibits attached hereto and the
Master Repurchase Agreement and the other Program Documents as amended hereby, shall be binding
upon, enure to the benefit of and be enforceable by each of Seller and Buyer and each of their
respective successors and permitted assigns.

11. Counterparts. This Amendment may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument, and any of the parties hereto
may execute this Amendment by signing any such counterpart.

12. Headings. The headings appearing in this Amendment are included solely for convenience
of reference and are not intended to affect the interpretation of any other provision of this
Amendment.

[Signature pages follow]

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     IN WITNESS WHEREOF, the undersigned parties have caused this Amendment to be duly executed and
delivered by their respective authorized officers as of the date first above written.

	 	 	 	 	 
	 	BUYER

THE ROYAL BANK OF SCOTLAND PLC

By: Greenwich Capital Markets, Inc., its Agent

 	 
	 	By:  	/s/ Regina Abayev
 	 
	 	 	Name:  	Regina Abayev 	 
	 	 	Title:  	Vice President 	 
	 

[Amendment No. 4]

 

 

	 	 	 	 	 
	 	SELLER

PHH MORTGAGE CORPORATION

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name:  	Mark E. Johnson 	 
	 	 	Title:  	Senior Vice President and Treasurer 	 
	 

[Amendment No. 4]

 

 

EXHIBIT A

AMENDED AND RESTATED DISBURSEMENT AGENT AGREEMENT

          AMENDED AND RESTATED DISBURSEMENT AGENT AGREEMENT (“Agreement”) dated as of March 13,
2009, made by and among PHH MORTGAGE CORPORATION, a New Jersey corporation (“Seller”), THE
ROYAL BANK OF SCOTLAND PLC (“Buyer”) and JPMORGAN CHASE BANK, N.A. (“Disbursement
Agent”).

          Reference is hereby made to (i) the Amended and Restated Master Repurchase Agreement, dated as
of June 26, 2008, as amended by Amendment No. 1 thereto, dated July 29, 2008, as amended by
Amendment No. 2 thereto, dated as of December 19, 2008, as amended by Amendment No. 3 thereto,
dated as of December 30, 2008 and as amended by Amendment No. 4 thereto, dated as of March 13, 2009
(as further supplemented or otherwise modified and in effect from time to time in accordance with
the terms thereof, the “Repurchase Agreement”), between Buyer and Seller, pursuant to which
Seller sold its interests in certain Mortgage Loans to Buyer and simultaneously agreed to purchase
such interests from Buyer on a date certain or under certain other conditions and (ii) the Amended
and Restated Tri-Party Custody Agreement among Buyer, Seller and The Bank of New York Mellon Trust
Company, N.A., as custodian (the “Custodian”) dated as of June 26, 2008, as amended by
Amendment No. 1 thereto, dated as of November 12, 2008, as amended by Amendment No. 2 thereto dated
as of December 19, 2008 and as amended by Amendment No. 3 thereto, dated as of March 13, 2009 (as
further amended, supplemented or otherwise modified from time to time in accordance with the terms
thereof, the “Tri-Party Custody Agreement”) to appoint the Custodian to hold the files
relating to such Mortgage Loans as bailee of and agent for Buyer.

          WHEREAS, it was a condition precedent to the purchase of any Wet Loans under the Repurchase
Agreement that the parties hereto execute and deliver a Disbursement Agent Agreement to provide for
the appointment of a disbursement agent;

          WHEREAS, the parties hereto previously executed and delivered a Disbursement Agent Agreement
(the “Original Disbursement Agreement”), dated as of December 19, 2008, to provide for the
appointment of the Disbursement Agent as disbursement agent thereunder in connection with the
purchase of Wet Loans under the Repurchase Agreement;

          WHEREAS, the Buyer and the Seller are amending the Repurchase Agreement on the date hereof and
the Buyer, the Seller and the Custodian are amending the Tri-Party Custody Agreement on the date
hereof to provide for the purchase of Correspondent Loans under the Repurchase Agreement; and

          WHEREAS, in connection with the amendment of the Repurchase Agreement and the Tri-Party
Custody Agreement to provide for the purchase of Correspondent Loans, the Buyer, Seller and the
Disbursement Agent desire to amend and restate the Original Disbursement Agreement in its entirety
and contemporaneously therewith enter into this Agreement.

 

 

          NOW THEREFORE, in consideration of the premises and the mutual promises herein set forth and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

          Section 1. Definitions. Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed thereto in Annex I.

          Section 2. Appointment of Disbursement Agent. Buyer and Seller hereby appoint JPMorgan Chase
Bank, N.A. as Disbursement Agent for the purpose of disbursing funds on account of any Transactions
in accordance with the provisions of this agreement, and JPMorgan Chase Bank, N.A. hereby accepts
such appointment.

          The Disbursement Agent undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement on its part to be performed and no implied covenants or
obligations shall be read into this Agreement against the Disbursement Agent. The Disbursement
Agent shall not be required to exercise any discretionary power granted to it herein and as to any
matters not expressly provided for by this Agreement the Disbursement Agent shall not be required
to exercise any discretion, but may act or refrain from acting only upon the written instructions
of the Seller and the Buyer as provided in this Agreement and only if furnished with indemnity
reasonably satisfactory to the Disbursement Agent; provided, however, the Disbursement Agent shall
not be required under any circumstances to take any action that (in its sole opinion) exposes it to
personal liability or that is contrary to this Agreement or applicable law. The Disbursement Agent
shall not be responsible for the negligence or misconduct of any agents or attorney-in-fact
selected by it with due care. The Disbursement Agent shall not be deemed to have knowledge of or
to be bound by any agreement between the other parties hereto, other than this Agreement.

          The Disbursement Agent shall not be responsible in any manner for the effectiveness,
enforceability, genuineness, validity or due execution of any certificate, report, financial
statement or other document delivered to it hereunder or in connection herewith. The Disbursement
Agent shall be entitled to rely on any notice, consent, certificate, report, request, direction,
affidavit, letter or other document or statement believed by it to be genuine and to have been
signed and sent by the proper Person or Persons and shall have no duty to make any investigation
into any facts or matters stated therein. The Disbursement Agent may consult with legal counsel or
other experts selected by it and shall not be liable for any action taken or omitted in good faith
and reasonable reliance on the advice of such counsel or other experts. The Disbursement Agent and
its affiliates may make loans to, accept deposits from and generally engage in any kind of business
with any Person or entity as though the Disbursement Agent were not the Disbursement Agent
hereunder.

          In the event of any disagreement between the other parties hereto resulting in adverse claims or
demands being made in connection with any property held by the Disbursement Agent hereunder, or in
the event that the Disbursement Agent in good faith is in doubt as to what action it should take
hereunder, the Disbursement Agent shall be entitled to retain such property until Disbursement
Agent shall have received (i) a final non-appealable order of court of competent jurisdiction
directing delivery of such property or (ii) a written agreement executed by the other parties
hereto directing delivery of such property, in which

2

 

event the Disbursement Agent shall disburse such property in accordance with such order or
agreement. Any court order shall be accompanied by a legal opinion by counsel for the presenting
party satisfactory to the Disbursement Agent to the effect that said order is final and
non-appealable.

          Section 3. Establishment of Accounts.

          (a) In connection with the funding of Wet Loans and Correspondent Loans, the Seller shall
cause the Disbursement Agent to establish and maintain an aggregation account (the “Aggregation
Account”) for and on behalf of Buyer entitled “PHH Mortgage Corp. Aggregation Account for the
benefit of RBS” The Aggregation Account account number shall be [***]. Seller shall upload the
Wire Instructions into the Disbursement Agent’s cash management system no later than (i) with
respect to AM Funded Wet Loans, 9:00 a.m. (eastern time) on the related Purchase Date, (ii) with
respect to PM Funded Wet Loans, 11:30 a.m. (eastern time) on the related Purchase Date or (iii),
with respect to Correspondent Loans, 1:30 p.m. (eastern time) on the related Purchase Date. On the
Purchase Date for a Transaction with respect to any Wet Loans or Correspondent Loans, Buyer shall
wire funds to the Disbursement Agent on account of any such Transaction, for which Seller has
requested such remittance of Buyer and such funds shall be deposited in the Aggregation Account by
the Disbursement Agent upon receipt. All amounts remitted by Buyer to Seller on account of
Transactions in respect of Wet Loans (the “AM Buyer’s Funds” or the “PM Buyer’s
Funds”, as applicable) shall be remitted by Buyer to the Aggregation Account no later than 9:00
a.m. (eastern time) on the related Purchase Date with respect to the AM Funded Wet Loans and no
later than 11:30 a.m. (eastern time) on the related Purchase Date with respect to PM Funded Wet
Loans. All amounts remitted by Buyer to Seller on account of Transactions in respect of
Correspondent Loans (the “Correspondent Buyer’s Funds”) shall be remitted by Buyer to the
Aggregation Account no later than 3:00 p.m. (eastern time) on the related Purchase Date. In each
case, Seller shall notify Disbursement Agent in writing substantially in the form attached hereto
as Annex II (the “Seller Notice”), prior to such respective timings, of the total amount of
funds to be disbursed in connection with such AM Funded Wet Loans (the “AM Total Funds”),
PM Funded Wet Loans (the “PM Total Funds”) or Correspondent Loans (the “Correspondent
Total Funds”), as applicable. With respect to any AM Funded Wet Loans, Disbursement Agent shall
transfer an amount equal to the AM Shortfall, if any, specified in the related Seller Notice from
the Operating Account to the Aggregation Account in connection with such AM Funded Wet Loans. With
respect to any PM Funded Wet Loans, Disbursement Agent shall transfer an amount equal to the PM
Shortfall, if any, specified in the related Seller Notice from the Operating Account to the
Aggregation Account in connection with such PM Funded Wet Loans. With respect to any Correspondent
Loans, Disbursement Agent shall transfer an amount equal to the Correspondent Shortfall, if any,
specified in the related Seller Notice from the Operating Account to the Aggregation Account in
connection with such Correspondent Loans. Buyer shall not be required to remit any funds to the
Aggregation Account unless and until all conditions precedent set forth in the Repurchase Agreement
have been satisfied. Seller hereby represents that it shall be solely responsible for assuring that
the information provided in each Seller Notice and the related Wire Instructions is correct.

          (b) In connection with the funding of Wet Loans and Correspondent Loans, Seller shall cause
the Disbursement Agent to establish and maintain a Disbursement Account

 

			
	[***]	 	INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

3

 

(the “Disbursement Account”) with Disbursement Agent for and on behalf of Seller to be
designated “PHH Mortgage Corporation Disbursement Account for RBS Repurchase Facility”. The
Disbursement Account account number shall be [***]. With respect to any Wet Loan to be funded in
the morning on any Business Day (an “AM Funded Wet Loan”), Seller, by delivery of the
related Seller Notice to Disbursement Agent, requests Disbursement Agent to, and Disbursement Agent
shall, transfer from the Aggregation Account to the Disbursement Account by 9:00 a.m. (eastern
time) on the Purchase Date for such AM Funded Wet Loan the AM Buyer’s Funds and AM Shortfall
specified in such Seller Notice. With respect to any Wet Loan to be funded in the afternoon on any
Business Day (a “PM Funded Wet Loan”), Seller, by delivery of the related Seller Notice to
Disbursement Agent, requests Disbursement Agent to, and Disbursement Agent shall, transfer from the
Aggregation Account to the Disbursement Account by 11:30 a.m. (eastern time) on the Purchase Date
for such PM Funded Wet Loan the PM Buyer’s Funds and PM Shortfall specified in such Seller Notice.
With respect to any Correspondent Loan, Seller, by delivery of the related Seller Notice to
Disbursement Agent, requests Disbursement Agent to, and Disbursement Agent shall, transfer from the
Aggregation Account to the Disbursement Account by 3:00 p.m. (eastern time) on the Purchase Date
for such Correspondent Loan the Correspondent Buyer’s Funds and Correspondent Shortfall specified
in such Seller Notice. In the case of any Wet Loan, Seller will be obligated to (i) cover any
shortfalls related to the Disbursement Account if Buyer’s requirement to pay the Purchase Price
will not be sufficient to cover disbursements to the Settlement Agent due to a Rescission or other
reason that the Mortgage Loan expected to be funded with such funds did not close and (ii) promptly
notify Buyer and Disbursement Agent of such Rescission. The Seller shall identify all funds
received in connection with the Rescission of any Mortgage Loan and promptly provide such
information to the Disbursement Agent and Buyer. Disbursement Agent shall provide to Seller and,
upon request, to Buyer the federal wire reference number for a particular payment made by
Disbursement Agent out of the Disbursement Account.

          (c) The Disbursement Account shall be maintained for the sole and exclusive benefit of Seller
and the Aggregation Account shall be maintained for the sole and exclusive benefit of Buyer.
Disbursement Agent shall take direction as to the Disbursement Account and, except as expressly
provided in this Agreement, the Aggregation Account solely from Seller. Neither Seller nor any
other person claiming on behalf of or through Seller shall have any right or authority, whether
express or implied, to close or make use of, or, except as expressly provided in this Agreement,
withdraw any funds from the Aggregation Account. As between the Seller and the Buyer, the Seller
undertakes to the Buyer that neither Seller nor any other person claiming on behalf of or through
Seller shall make use of, or, except as expressly provided in this Agreement, withdraw any funds
from, the Disbursement Account. Seller hereby authorizes Disbursement Agent to provide “view only”
access and reports to Buyer with respect to the Disbursement Account. Buyer hereby authorizes
Disbursement Agent for purposes hereof, unless Disbursement Agent shall receive notice in writing
from Buyer to the contrary at least two (2) Business Days prior to the transfer of such funds, on
each Purchase Date to transfer all funds which are deposited to the Aggregation Account to the
Disbursement Account. To the extent that such notice not to disburse funds is received by
Disbursement Agent as provided above, any funds in the Aggregation Account received from Buyer
shall be promptly returned to Buyer. Disbursement Agent will not transfer any funds from the
Aggregation Account to the Disbursement Account until 100% of the AM Total Funds (in connection
with any Purchase of

 

			
	[***]	 	INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

4

 

AM Funded Wet Loans), 100% of the PM Total Funds (in connection with any Purchase of PM Funded
Wet Loans) and/or 100% of the Correspondent Total Funds (in connection with any Purchase of
Correspondent Loans), as specified in the related Seller Notice, are on deposit in the Aggregation
Account.

          (d) Seller shall reconcile the Disbursement Account and the Aggregation Account on a daily
basis. Seller shall use reasonable efforts to identify all funds received in connection with the
Rescission of any Mortgage Loan.

          (e) In connection with the funding of Wet Loans or Correspondent Loans pursuant to the
Aggregation Account, Seller shall establish an Operating Account (the “Operating Account”)
with Disbursement Agent to be designated “PHH Mortgage Corporation Operating Account for RBS
Repurchase Facility”. The Operating Account account number shall be [***]. With respect to any AM
Funded Wet Loans, Seller, by delivery of a Seller Notice, requests Disbursement Agent to, and
Disbursement Agent shall, transfer from the Operating Account to the Aggregation Account by 9:00
a.m. (eastern time) on the Purchase Date for the related AM Funded Wet Loan an amount equal to the
AM Shortfall specified in such Seller Notice. With respect to any PM Funded Wet Loans, Seller, by
delivery of a Seller Notice, requests Disbursement Agent to, and Disbursement Agent shall, transfer
from the Operating Account to the Aggregation Account by 11:30 a.m. (eastern time) on the day of
closing for the related PM Funded Wet Loan, an amount equal to the PM Shortfall specified in such
Seller Notice. With respect to any Correspondent Loans, Seller, by delivery of a Seller Notice,
requests Disbursement Agent to, and Disbursement Agent shall, transfer from the Operating Account
to the Aggregation Account by 3:00 p.m. (eastern time) on the Purchase Date for the related
Correspondent Loan an amount equal to the Correspondent Shortfall specified in such Seller Notice.

          (f) All related fees and expenses for the Aggregation Account, Disbursement Account and
Operating Account shall be borne by Seller. Funds retained in the Aggregation Account, Disbursement
Account and the Operating Account shall remain uninvested and Disbursement Agent shall not be
liable for interest on such funds.

          (g) All amounts delivered to the Disbursement Agent under this Agreement shall be accompanied
by a written direction of Seller identifying the nature of such amounts and specifying in
reasonable detail the account or accounts into which such amounts are to be deposited, and the
Disbursement Agent shall deposit such amounts in accordance with such direction. If the
Disbursement Agent shall receive any amounts without such written direction, it shall notify Seller
and Buyer within two Business Days following receipt thereof and shall hold any such amounts
received in the Aggregation Account until it receives the written direction described above.

          Section 4. Disbursements. On each Purchase Date, Disbursement Agent shall allow the release of
funds in the Disbursement Account to the Settlement Agent (in the case of any Wet Loan) and to the
Correspondent Seller (in the case of any Correspondent Loan) in accordance with the Wire
Instructions as soon as funds become available in the Disbursement Account, but, in any event, by
no later than (i) 10:30 a.m. (eastern time) with respect to AM

 

			
	[***]	 	INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

5

 

Funded Wet Loans, (ii) 1:00 p.m. (eastern time) with respect to PM Funded Wet Loans and (iii)
4:00 p.m. (eastern time) with respect to Correspondent Loans. Disbursement Agent shall have no
duty to verify or review any Wire Instructions (other than as necessary to send such wire) given
to it hereunder. Seller hereby covenants and agrees that it shall not direct the Disbursement
Agent to disburse funds to Seller as payee, unless otherwise authorized by Buyer in writing.

          Section 5. Settlements.

          (a) If any funds disbursed on any date in accordance with Section 5(b) are returned to the
Disbursement Account (i) Disbursement Agent shall wire transfer such funds from the Disbursement
Account to the NY Account (as defined below) in accordance with Section 5(b), and (ii) Buyer shall,
upon receipt of such amounts, apply the same to the prepayment of the Purchase Price relating to
such Mortgage Loan or Mortgage Loans. Seller shall instruct each Settlement Agent (in the case of
any Wet Loan) and each Correspondent Seller (in the case of any Correspondent Loan) regarding funds
disbursed to such Settlement Agents or Correspondent Seller, as applicable, in accordance with the
terms of the Repurchase Agreement. Disbursement Agent shall provide access to Buyer and Seller to
review all activity in the Disbursement Account as requested on any Business Day.

          (b) Seller hereby authorizes Disbursement Agent to transfer as promptly as possible after 7:15
a.m. (eastern time) and 5:00 p.m. (eastern time) on each Business Day, unless Disbursement Agent is
otherwise instructed by Buyer in writing at least two (2) Business Days prior to the effective date
(and Seller hereby acknowledges, agrees and consents to the Disbursement Agent’s compliance with
such instructions), all collected amounts as of such times then standing to the credit of the
Disbursement Account by wire transfer to the following account maintained by Buyer: JP Morgan Chase
Bank, New York, for The Royal Bank of Scotland plc, ABA [***], Account # [***], Attn: [***] (the
“NY Account”). Buyer hereby agrees to wire to Seller on such Business Day all amounts
remitted to the NY Account from the Disbursement Account on such Business Day pursuant to this
Section 5(b) which are not required to be paid to Buyer in accordance with the Repurchase
Agreement.

          Section 6. Set-off. Disbursement Agent agrees that it shall not exercise any right of
set-off, banker’s lien or any similar right in connection with funds on deposit in any Disbursement
Account.

          Section 7. Fees and Expenses of Disbursement Agent.

          (a) Disbursement Agent agrees to act hereunder at no charge to Buyer.

          (b) Disbursement Agent shall charge such fees for its services under this Agreement as are set
forth in a separate agreement between Disbursement Agent and Seller, the payment of which fees,
together with Disbursement Agent’s expenses in connection herewith, shall be solely the obligation
of Seller. Subject to the rights of the Disbursement Agent under Section 10, the failure of Seller
to pay any such fees shall not excuse the performance by Disbursement Agent of any of its
obligations hereunder. The obligations of Seller to pay

 

			
	[***]	 	INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

6

 

Disbursement Agent such fees and reimburse Disbursement Agent for such expenses in connection
with services provided by Disbursement Agent prior to the termination of this

7

 

          (c) Agreement and the earlier of the resignation or removal of Disbursement Agent shall
survive such termination, resignation or removal.

          Section 8. No Adverse Interest. Except for the claims and interest of Buyer, by execution of
this Agreement, Disbursement Agent represents and warrants that it currently holds, and during the
existence of this Agreement shall hold, no adverse interest, by way of security or otherwise, in
any Mortgage Loan, and hereby waives and releases any such interest which it may have in any
Mortgage Loan as of the date hereof. The Mortgage Loans shall not be subject to any security
interest, lien or right to set-off by Disbursement Agent or any third party claiming through
Disbursement Agent, and Disbursement Agent shall not pledge, encumber, hypothecate, transfer,
dispose of, or otherwise grant any third party interest in, the Mortgage Loans.

          Section 9. Indemnification.

          Seller agrees to indemnify and hold Disbursement Agent and its affiliates, directors,
officers, agents and employees harmless against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, of any kind or nature whatsoever, including
reasonable attorney’s fees and expenses, that may be imposed on, incurred by, or asserted against
it or them in any way relating to or arising out of this Agreement or any action taken or not taken
by it hereunder unless such liabilities, obligations, losses, damages, penalties, actions,
judgements, suits, cost, expenses or disbursements were imposed on, incurred by or asserted against
Disbursement Agent as a result of the gross negligence, bad faith or willful misconduct on the part
of Disbursement Agent or any of its directors, officers, agents or employees. Disbursement Agent
agrees that it will promptly notify Seller of any such claim, action or suit asserted or commenced
against it (provided that any failure to so notify shall not release Seller of its obligations
hereunder) and that Seller may assume the defense thereof with counsel reasonably satisfactory to
Disbursement Agent at Seller’s sole expense, that Disbursement Agent will cooperate with Seller on
such defense, and that Seller will not settle any such claim, action or suit without the consent of
Disbursement Agent. The foregoing indemnification shall survive any resignation or removal of
Disbursement Agent or the termination or assignment of this Agreement. The Disbursement Agent
shall not be liable for any special, indirect, consequential or punitive damages in connection with
this Agreement.

          Section 10. Termination. Disbursement. Disbursement Agent may resign and terminate this
Agreement in its discretion upon the sending of at least sixty (60) days’ advance written notice to
the other parties hereto. Promptly after receipt of notice of Disbursement Agent’s resignation,
Buyer or Seller, as applicable, shall appoint, by written instrument, a successor disbursement
agent, subject to written approval by Seller (which approval shall not be unreasonably withheld).
One original counterpart of such instrument of appointment shall be delivered to each of Seller and
Disbursement Agent and the successor disbursement agent. In the event that Buyer or Seller have
not appointed a successor disbursement agent prior to the expiration of such sixty (60) day notice
period, the resigning Disbursement Agent shall have no further obligation to perform any duties
under this Agreement, but may, at its option, petition any court of competent jurisdiction to
appoint a successor disbursement agent. In the event of any such resignation, Disbursement Agent
shall, upon payment of its fees and expenses, promptly transfer to the successor disbursement
agent, as directed in writing, all funds in the Disbursement

8

 

Account. Seller shall be responsible for the fees and expenses of the successor disbursement
agent and the fees and expenses as shall be necessary to effectuate such transfer.

          Section 11. Notices. All demands, notices and communications hereunder shall be in writing and
shall be deemed to have been duly given when received by the recipient party at the address shown
on its signature page hereto, or at such other addresses as may hereafter be furnished to each of
the other parties by like notice. Any such demand, notice or communication hereunder shall be
deemed to have been received on the date delivered to or received at the premises of the addressee.
Each party hereto hereby represents and warrants that its office is located at the respective
address set forth on its signature page hereto, and each such party shall notify each other party
hereto if such address should change.

          Section 12. Binding Effect; Governing Law. This Agreement shall be binding and inure to the
benefit of the parties hereto and their respective successors and assigns; provided, however, that
Seller and Disbursement Agent may not assign this Agreement or any of their rights or obligations
hereunder except with the prior written consent of Buyer. This Agreement shall be construed in
accordance with, and governed by the law of the State of New York, without giving effect to the
conflict of law principles thereof.

          Section 13. Amendments. No amendment or waiver of any provision of this Agreement nor consent
to any departure herefrom shall in any event be effective unless the same shall be in writing and
signed by all the parties hereto and then such amendment, waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given. This Agreement constitutes
the entire agreement and understanding of the parties with respect to the matters and transactions
contemplated by this Agreement and supersedes any prior agreement and understandings with respect
to those matters and transactions. The provisions of this Agreement set forth the exclusive duties
of Disbursement Agent and no implied duties shall be read into this Agreement against Disbursement
Agent.

          Section 14. Severability. If any provision of this Agreement is declared invalid by any court
of competent jurisdiction, this Agreement shall be enforced to the fullest extent required by law.

          Section 15. Execution in Counterparts. This Agreement may be executed in counterparts, each
of which when so executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same agreement.

          Section 16. Waiver of Trial by Jury. THE PARTIES FURTHER HEREBY WAIVE ANY RIGHT TO A TRIAL BY
JURY WITH RESPECT TO ANY LAWSUIT OR JUDICIAL PROCEEDING ARISING OR RELATING TO THIS AGREEMENT.

          Section 17. Amendment and Restatement of Original Disbursement Agreement.

          (a) As of the date first written above, the terms and provisions of the Original Disbursement
Agreement shall be and hereby are amended, superseded and restated in their entirety by the terms
and provisions of this Agreement.

9

 

          (b) Upon the effectiveness of this Agreement on the date first written above, unless the
context otherwise requires, each reference to the Original Disbursement Agreement in either the
Repurchase Agreement or the Tri-Party Custody Agreement and in each document, instrument or
agreement executed and/or delivered in connection therewith shall mean and be a reference to this
Agreement.

10

 

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

	 	 	 	 	 	 	 
	BUYER:	 	 	 	Address for Notices:
	 
	 	 	 	 	 	 
	THE ROYAL BANK OF SCOTLAND PLC	 	 	 	c/o Greenwich Capital Markets, Inc.
	 

	 	 	 	 	 	600 Steamboat Road
	By:

	 	 
	 	 	 	Greenwich, Connecticut 06830
	 

	 	Name:
	 	 	 	Attn: James Esposito
	 

	 	Title:
	 	 	 	Telephone: 203-625-6072
	 

	 	 	 	 	 	Facsimile: 203-422-4072
	 

	 	 	 	 	 	E-mail: james.esposito@rbsgc.com
	 
	 	 	 	 	 	 
	SELLER:
	 	 	 	Address for Notices:
	 
	 	 	 	 	 	 
	PHH MORTGAGE CORPORATION,	 	 	 	PHH Mortgage Corporation
	a New Jersey corporation	 	 	 	3000 Leadenhall Road
	 

	 	 
	 	 	 	Mail Stop PCLG
	By:
	 	 
	 	 	 	Mt. Laurel, New Jersey 08054
	 
	 	Name:	 	 	 	Attention Mark Johnson
	 

	 	Title:
	 	 	 	Telephone: (856) 917-0176
	 

	 	 	 	 	 	Facsimile: (856) 917-4278
	 

	 	 	 	 	 	E-mail: Mark.Johnson@phhmail.com
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	With a copy to:
	 

	 	 	 	 	 	William F. Brown, General Counsel
	 
	 	 	 	 	 	 
	DISBURSEMENT AGENT:	 	 	 	Address for Notices:
	 
	 	 	 	 	 	 
	JPMORGAN CHASE BANK, N.A.	 	 	 	JPMorgan Chase Bank, N.A.
	 

	 	 	 	 	 	1111 Fannin St. 12th floor
	By:

	 	 
	 	 	 	Houston, TX 77002
	 

	 	Name:
	 	 	 	Mailstop: TX2-F200
	 

	 	Title
	 	 	 	Attention: Bea R. Delgado
	 

	 	 	 	 	 	Telephone: (713) 427-6455
	 

	 	 	 	 	 	Facsimile: (713) 427-6453
	 

	 	 	 	 	 	E-mail: bea.r.delgado@jpmorgan.com

11

 

Annex I

     “AM Shortfall” shall have the meaning set forth in the Seller Notice.

     “Business Day” shall mean any day excluding Saturday, Sunday and any day on which
banks located in the states of New York, Texas or Connecticut are authorized or permitted to close
for business.

     “Correspondent Loan” shall mean a Mortgage Loan which is (i) originated by a
Correspondent Seller and underwritten in accordance with the Underwriting Guidelines and (ii)
acquired by the Seller from a Correspondent Seller in the ordinary course of business for sale to
the Buyer pursuant to the Repurchase Agreement. A Correspondent Loan may be either a Dry Loan or
an Undocumented Loan.

     “Correspondent Loan Schedule” shall mean a schedule in computer readable standardized
text formats, delivered by the Seller to Buyer and the Custodian in connection with a Purchase Date
or date of substitution, as applicable, identifying Correspondent Loans to be purchased or
substituted as of such date and setting forth whether each such Correspondent Loan is a Dry Loan or
an Undocumented Loan, and which shall be attached by the Custodian to the related Notice of Intent
to Issue Trust Receipt.

     “Correspondent Seller” shall mean a mortgage loan originator identified to the
Disbursement Agent in the Wire Instructions that sells Mortgage Loans originated by it to the
Seller as a “correspondent” or “private label” client.

     “Correspondent Shortfall” shall have the meaning set forth in the Seller Notice.

     “Dry Loan” shall mean a first lien Mortgage Loan which is underwritten in accordance
with the Underwriting Guidelines and as to which the related Mortgage File delivered to the
Custodian contains all Mortgage Loan Documents that are required to be delivered under the
Tri-Party Custody Agreement.

     “Dry Loan Trust Receipt” shall mean a Trust Receipt with respect to Dry Loans subject
to the Tri-Party Custody Agreement as of the date of such Trust Receipt.

     “Escrow Letter” shall mean, with respect to any Wet Loan that becomes subject to a
Transaction, an escrow agreement or letter, which is fully assignable to Buyer, stating that in the
event of a Rescission or if for any other reason the Mortgage Loan fails to fund on a given day,
the party conducting the closing is holding all funds which would have been disbursed on behalf of
the Mortgagor as agent for and for the benefit of Buyer and such funds shall be returned to Seller
not later than one Business Day after the date of Rescission or other failure of the Mortgage Loan
to fund on a given day.

Annex I-1

 

     “First Lien” shall mean with respect to each Mortgaged Property, the lien of the
mortgage, deed of trust or other instrument securing a mortgage note which creates a first lien on
the Mortgaged Property.

     “Insured Closing Letter” shall mean, with respect to any Wet Loan that becomes subject
to a Transaction, a letter of indemnification from an approved title insurance company, in any
jurisdiction where insured closing letters are permitted under applicable law and regulation,
addressed to Seller, which is fully assignable to and may be enforced by, the loan originator and
its successors and assigns, including Buyer, with coverage that is customarily acceptable to
Persons engaged in the origination of mortgage loans (including, but not limited to any losses
occurring due to the fraud, dishonesty or mistakes of the closing agent, identifying the Settlement
Agent) covered thereby, which may be in the form of a blanket letter.

     “Mortgage” shall mean a duly recorded first mortgage or first deed of trust on a
one-four family residential property.

     “Mortgage File” shall mean, as to each Mortgage Loan subject to the Tri-Party Custody
Agreement, the Required Documents and all other documents relating to such Mortgage Loan that are
held by the Custodian.

     “Mortgage Loan” shall mean a mortgage loan (including a jumbo mortgage loan), or
Cooperative Loan which is secured by a first mortgage lien (as reflected on the Mortgage Loan
Schedule) on a one to four family residential property, which the Custodian has been instructed in
writing to hold for the Buyer pursuant to the Tri-Party Custody Agreement, and which Mortgage Loan
includes, without limitation, (i) the Mortgage Note, the related Mortgage and all other Mortgage
Loan Documents and (ii) all right, title and interest of the Seller in and to the Mortgaged
Property covered by such Mortgage.

     “Mortgage Loan Documents” shall mean, with respect to a Mortgage Loan, the documents
comprising the Mortgage File for such Mortgage Loan.

     “Mortgage Note” shall mean, with respect to any Mortgage Loan, the related promissory
note together with all riders thereto and amendments thereof or other evidence of indebtedness of
the related Mortgagor.

     “Mortgaged Property” shall mean the real property (including all improvements,
buildings, fixtures, building equipment and personal property thereon and all additions,
alterations and replacements made at any time with respect to the foregoing) and all other
collateral securing repayment of the debt evidenced by a Mortgage Note.

     “Mortgagor” shall mean the obligor or obligors on a Mortgage Note, including any
person who has assumed or guaranteed the obligations of the obligor thereunder.

     “Notice of Intent to Issue Trust Receipt” shall mean a notice delivered by the
Custodian to the Buyer. Such Notice of Intent to Issue Trust Receipt shall state that the
Custodian intends

Annex I-2

 

to issue a Trust Receipt with respect to certain Mortgage Loans pursuant to Section 5 of the
Tri-Party Custody Agreement.

     “Person” shall mean any individual, corporation, company, voluntary association,
partnership, joint venture, limited liability company, trust, unincorporated association or
government (or any agency, instrumentality or political subdivision thereof).

     “PM Shortfall” shall have the meaning set forth in the Seller Notice.

     “Purchase Date” shall mean the date specified as such in the Seller Notice.

     “Rescission” shall mean the right of a Mortgagor to rescind the related Mortgage Note
and related documents pursuant to applicable law.

     “Required Documents” shall refer to the documents listed in Section 4 to the Tri-Party
Custody Agreement.

     “Settlement Agent” shall mean, with respect to any Wet Loan, the Person specified in
the Transaction Notice (which may be a title company, escrow company or attorney in accordance with
local law and practice in the jurisdiction where the related Wet Loan is being originated and which
is not an Unapproved Settlement Agent) to which the proceeds of the related purchase are to be
distributed by the Disbursement Agent in accordance with the instructions of Seller provided in the
applicable Wet Loan Schedule.

     “Transaction” shall mean a transaction in which Seller transfers to Buyer Mortgage
Loans against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to
Seller Purchased Loans at a date certain, against the transfer of funds by Seller, both such
transfers in accordance with the terms of the Repurchase Agreement.

     “Transaction Notice” means a written request of Seller to enter into a Transaction, in
the form set forth in the Repurchase Agreement which is delivered to Buyer and Custodian.

     “Trust Receipt” shall mean a “Dry Loan Trust Receipt”, “Wet Loan Trust Receipt” or
“Undocumented Loan Trust Receipt”, as applicable.

     “Underwriting Guidelines” shall mean the underwriting guidelines of Seller attached as
Exhibit E to the Repurchase Agreement, in effect as of the date of the Repurchase Agreement, as the
same may be amended, supplemented or otherwise modified from time to time (including without
limitation by the addition of any third party’s underwriting guidelines) and, with respect only to
material amendments, supplements or other modifications, with Buyer’s prior written consent.

     “Undocumented Loan” shall mean a Mortgage Loan, listed on an Undocumented Loan
Schedule or a Correspondent Loan Schedule, which is not a Wet Loan and with respect to which the
Mortgage File has not been delivered to the Custodian.

Annex I-3

 

     “Undocumented Loan Schedule” shall mean a schedule in computer readable standardized
text formats, delivered by the Seller to Buyer and the Custodian in connection with a Purchase Date
or date of substitution, as applicable, identifying Undocumented Loans (other than Undocumented
Loans that are Correspondent Loans) to be purchased or substituted as of such date, and which shall
be attached by the Custodian to the related Notice of Intent to Issue Trust Receipt.

     “Wet Loan” shall mean a Mortgage Loan, listed on a Wet Loan Schedule, which is not an
Undocumented Loan and with respect to which the Mortgage File does not contain all the Required
Documents in the Mortgage File and which has the following additional characteristics:

          (a) the proceeds thereof have been funded (or on the Purchase Date for a Transaction
are being funded) by wire transfer or cashier’s check, cleared check or draft or other form
of immediately available funds to the Settlement Agent for such Wet Loan;

          (b) such Wet Loan has closed and become a valid lien securing actual indebtedness by
funding to the order of the Mortgagor thereunder;

          (c) the proceeds thereof have not been returned to the Buyer or its agent from the
Settlement Agent for such Wet Loan;

          (d) Seller has not learned that such Wet Loan will not be closed and funded to the
order of the Mortgagor;

          (e) upon recordation such Mortgage Loan will constitute a first or second lien on the
premises described therein; and

          (f) Seller shall have obtained an Insured Closing Letter and an Escrow Letter with
respect to such Wet Loan.

     “Wet Loan Schedule” shall mean a schedule in computer readable standardized text
formats delivered to the Custodian by Seller in connection with a Purchase Date or date of
substitution, as applicable, identifying Wet Loans to be purchased or substituted as of such date,
setting forth the information in Section 5(b)(4) of the Tri-Party Custody Agreement, and which
shall be attached by the Custodian to the related Wet Loan Trust Receipt.

     “Wet Loan Trust Receipt” shall mean a document substantially in form of Exhibit G to
the Tri-Party Custody Agreement with respect to Wet Loans subject to the Tri-Party Custody
Agreement as of the date of such Wet Loan Trust Receipt.

     “Wire Instructions” shall mean the applicable information relating to funding for the
origination of a Wet Loan or the purchase of a Correspondent Loan uploaded into Disbursement
Agent’s cash management system by Seller.

Annex I-4

 

Annex II to Disbursement Agent Agreement

NOTICE OF [AM FUNDED WET LOAN] [PM FUNDED WET LOAN]

[CORRESPONDENT LOAN] TOTAL FUNDS

[Disbursement Agent]

[Address]

[DATE]

			
	          Re:	 	Amended and Restated Disbursement Agent Agreement, dated as of March 13, 2009
(the “Disbursement Agent Agreement”), among PHH Mortgage Corporation, as
Seller, JPMorgan Chase Bank, N.A., as Disbursement Agent, and the Royal Bank of
Scotland plc, as Buyer

Ladies and Gentlemen:

In accordance with the provisions of Section 3 of the above-referenced Disbursement Agent Agreement
(capitalized terms not otherwise defined herein having the meanings ascribed to them in the
Disbursement Agent Agreement), the undersigned, as Seller, hereby certifies that the total amount
of funds to be disbursed in connection with the [AM Funded Wet Loans] [PM Funded Wet Loans]
[Correspondent Loans] to be closed on [date] (the “Purchase Date”) is $_________.

You are hereby notified that the [AM Total Funds] [PM Total Funds] [Correspondent Total Funds] to
be disbursed from the Disbursement Account (Account [***]) on the Purchase Date is $_________. In
addition, Seller hereby authorizes the Disbursement Agent to transfer from the Operating Account
(Account [***]) to the Aggregation Account (Account [***]) by [9:00 a.m.] [11:30 a.m.] [3:00 p.m.]
(eastern time) on the Purchase Date $____________ (the [“[AM Shortfall”] [“PM Shortfall”]
[“Correspondent Shortfall”]).

The Disbursement Agent shall have no obligation to transfer the amount of the [AM Shortfall] [PM
Shortfall] [Correspondent Shortfall] from the Operating Account to the Aggregation Account on the
Purchase Date if the Operating Account does not have sufficient funds to cover the [AM Shortfall]
[PM Shortfall] [Correspondent Shortfall] required to close on the Purchase Date the [AM Funded Wet
Loans] [PM Funded Wet Loans] [Correspondent Loans].

 

			
	[***]	 	INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

Annex II-1

 

	 	 	 	 	 
	 	PHH MORTGAGE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Annex II-2

 

EXHIBIT B

AMENDMENT NO. 3 TO THE CUSTODIAL AGREEMENT

     This AMENDMENT NO. 3 (this “Amendment”), dated as of March 13, 2009 (the
“Amendment Effective Date”), is made by and among PHH MORTGAGE CORPORATION, a New Jersey
corporation (the “Seller”), THE ROYAL BANK OF SCOTLAND PLC (“Buyer”) and THE BANK
OF NEW YORK MELLON TRUST COMPANY, N.A.(f/k/a The Bank of New York Trust Company, N.A.)
(“Custodian”).

WITNESSETH:

     WHEREAS, Seller and Buyer are parties to that certain Amended and Restated Master Repurchase
Agreement, dated as of June 26, 2008, as amended by Amendment No. 1 thereto, dated as of July 29,
2008, as amended by Amendment No. 2 thereto, dated as of December 19, 2008 and as amended by
Amendment No. 3 thereto, dated as of December 30, 2008 (as further amended, supplemented or
otherwise modified, from time to time, in accordance with its terms, the “Master Repurchase
Agreement”), whereby Buyer has agreed to purchase from time to time, certain Eligible Loans, as
provided in and subject to the terms and conditions of the Master Repurchase Agreement, and the
other agreements entered into in connection with the Master Repurchase Agreement (the “Loan
Documents”);

     WHEREAS, in connection therewith, Buyer and Seller entered into the Amended and Restated
Tri-Party Custody Agreement, dated as of June 26, 2008, as amended by Amendment No. 1 thereto,
dated as of November 12, 2008 and as amended by Amendment No. 2 thereto, dated as of December 19,
2008 (as further amended, supplemented or otherwise modified from time to time in accordance with
its terms, the “Custody Agreement”), by and among Seller, Buyer and Custodian to appoint
Custodian to hold files relating to such Loans as bailee of and agent for Buyer;

     WHEREAS, the parties desire to amend certain provisions of the Custody Agreement as set forth
herein; and

     WHEREAS, Section 21 of the Custody Agreement permits the amendments contemplated herein.

     NOW, THEREFORE, in consideration of the foregoing and the mutual agreements hereinafter set
forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

1. Definitions. Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed thereto in the Custody Agreement or the Master Repurchase Agreement, as
applicable, including by way of reference to any other documents or agreements.

 

 

2. Amendments to Custody Agreement. As of the Amendment Effective Date, the Custody
Agreement is hereby amended as follows:

     (a) Section 1 of the Custody Agreement is hereby amended by adding the following terms in
their appropriate alphabetical positions:

     “Correspondent Loan” shall mean a Mortgage Loan which is (i) originated by a
Correspondent Seller and underwritten in accordance with the Underwriting Guidelines
and (ii) acquired by the Seller from a Correspondent Seller in the ordinary course
of business for sale to the Buyer pursuant to the Master Repurchase Agreement. A
Correspondent Loan may be either a Dry Loan or an Undocumented Loan.

     “Correspondent Loan Schedule” shall mean a schedule in computer readable
standardized text formats, delivered by the Seller to Buyer and the Custodian in
connection with a Purchase Date or date of substitution, as applicable, identifying
Correspondent Loans to be purchased or substituted as of such date and setting forth
whether each such Correspondent Loan is a Dry Loan or an Undocumented Loan, and
which shall be attached by the Custodian to the related Notice of Intent to Issue
Trust Receipt.

     “Correspondent Seller” shall mean a mortgage loan originator that sells
Mortgage Loans originated by it to the Seller as a “correspondent” or “private
label” client.

     (b) The definition of “Disbursement Agent Agreement” in Section 1 of the Custody Agreement is
hereby deleted in its entirety and replaced with the following:

     “Disbursement Agent Agreement” shall mean an agreement substantially in the
form of Exhibit J hereto to be entered into by Buyer, Seller and the Disbursement
Agent prior to the initial Purchase Date for Wet Loans and Correspondent Loans as
the same may be amended, restated and supplemented from time to time in accordance
with the terms thereof.

     (c) The definition of “Mortgage Loan Schedule” in Section 1 of the Custody Agreement is hereby
deleted in its entirety and replaced with the following:

     “Mortgage Loan Schedule” shall mean a listing of Dry Loans (other than Dry
Loans that are Correspondent Loans) in computer readable standardized text formats,
delivered by the Seller to Buyer and the Custodian, setting forth, as to each Dry
Loan listed thereon, the Seller Loan Number, the Mortgagor’s name, the outstanding
principal amount and incorporating such other information and fields as may be
mutually agreed upon by Buyer, Seller and the Custodian and in a form satisfactory
to Buyer and the Custodian.

     (d) The definition of “Undocumented Loan” in Section 1 of the Custody Agreement is hereby
deleted in its entirety and replaced with the following:

2

 

     “Undocumented Loan” shall mean a Mortgage Loan, listed on an Undocumented Loan
Schedule or a Correspondent Loan Schedule which is not a Wet Loan and with respect
to which the Mortgage File has not been delivered to the Custodian.

     (e) The definition of “Undocumented Loan Schedule” in Section 1 of the Custody Agreement is
hereby deleted in its entirety and replaced with the following:

     “Undocumented Loan Schedule” shall mean a schedule in computer readable
standardized text formats, delivered by the Seller to Buyer and the Custodian in
connection with a Purchase Date or date of substitution, as applicable, identifying
Undocumented Loans (other than Undocumented Loans that are Correspondent Loans) to
be purchased or substituted as of such date, and which shall be attached by the
Custodian to the related Notice of Intent to Issue Trust Receipt.

     (f) The definition of “Wire Instructions” in Section 1 of the Custody Agreement is hereby
deleted in its entirety and replaced with the following:

     “Wire Instructions” shall mean the applicable information provided relating to
funding for the origination of a Wet Loan or the purchase of a Correspondent Loan,
which data shall include the amount of the related wire transfer and related
depository information as required by Buyer.”

     (g) Section 3(a) of the Custody Agreement is hereby amended and restated in its entirety to
read as follows:

     “(a) The Seller shall from time to time deliver Mortgage Files to the Custodian
to be held hereunder, which shall be reviewed by the Custodian as provided in
Section 5. With respect to each Transaction, (i) in the case of Dry Loans (other
than Dry Loans that are Correspondent Loans), the Seller (A) shall provide written
notice, in the form of a Transaction Notice to the Buyer and the Custodian with
respect to such Dry Loans which are to be purchased by the Buyer from the Seller,
and shall deliver by electronic transmission to the Custodian and the Buyer the
Mortgage Loan Schedule, in each case no later than 5:00 p.m. (eastern time) one
Business Day prior to the requested Purchase Date, and (B) shall have delivered to
the Custodian the items set forth in Section 4 (none of which shall contain an
Exception) with respect to such Dry Loans by not later than 11:30 a.m. (eastern
time) one Business Day prior to the requested Purchase Date; (ii) (A) in the case of
AM Funded Wet Loans, Seller shall provide written notice, in the form of a
Transaction Notice to Buyer and Custodian, together with the related Wet Loan
Schedule to Buyer and Custodian and deliver, by electronic transmission, the Wire
Instructions to Buyer and a Seller Notice to Disbursement Agent with respect to such
AM Funded Wet Loans which are to be purchased no later than 5:00 p.m. (eastern time)
on the Business Day prior to the requested Purchase Date, (B) in the case of PM
Funded Wet Loans, Seller shall provide a Wet Loan Schedule, by no later than 9:00
a.m. (eastern time) to Buyer and

3

 

Custodian, together with written notice, in the form of a Transaction Notice to
Buyer and Custodian by no later than 11:00 a.m. (eastern time) on the requested
Purchase Date and deliver, by electronic transmission, the Wire Instructions to
Buyer and a Seller Notice to Disbursement Agent with respect to such PM Funded Wet
Loans which are to be purchased no later than 11:00 a.m. (eastern time) on the
requested Purchase Date; (iii) in the case of Undocumented Loans (other than
Undocumented Loans that are Correspondent Loans), the Seller shall provide written
notice, in the form of a Transaction Notice to the Buyer and the Custodian with
respect to such Undocumented Loans which are to be purchased by the Buyer from the
Seller, and shall deliver by electronic transmission to the Custodian and the Buyer
the Undocumented Loan Schedule, in each case no later than 5:00 p.m. (eastern time)
one Business Day prior to the requested Purchase Date; and (iv) in the case of
Correspondent Loans, Seller (A) shall provide written notice, in the form of a
Transaction Notice to Buyer and Custodian, together with the related Correspondent
Loan Schedule to Buyer and Custodian and deliver, by electronic transmission, the
Wire Instructions to Buyer and a Seller Notice to Disbursement Agent with respect to
such Correspondent Loans which are to be purchased no later than 11:00 a.m. (eastern
time) on the requested Purchase Date, and (B) shall have delivered to the Custodian
the items set forth in Section 4 (none of which shall contain an Exception) with
respect to any Correspondent Loans that are Dry Loans by not later than 11:30 a.m.
(eastern time) one Business Day prior to the requested Purchase Date.”

     (h) The first sentence of Section 3(c) of the Custody Agreement is hereby amended and restated
in its entirety to read as follows:

     “With respect to Wet Loans and Undocumented Loans (including any Correspondent
Loans that are Undocumented Loans) the delivery of the Transaction Notice and a Wet
Loan Schedule, Undocumented Loan Schedule or Correspondent Loan Schedule, as the
case may be, to the Custodian by the Seller shall be deemed to constitute “Required
Documents” with respect to the related Wet Loan or Undocumented Loan (and shall be
deemed to be a certification by the Seller, upon which the Custodian is entitled to
rely, that such Mortgage Loan is a Wet Loan or Undocumented Loan) and the documents
specified in Section 4 below shall not be required to be delivered with respect to
such Wet Loan or Undocumented Loan on the related Purchase Date.”

     (i) Section 5(b) of the Custody Agreement is hereby amended and restated in its entirety to
read as follows:

     “(b) In the case of Wet Loans and Undocumented Loans (including any
Correspondent Loans that are Undocumented Loans), the review procedures shall be as
follows:

1. The original Transaction Notice and Wet Loan Schedule, Undocumented Loan Schedule
or Correspondent Loan Schedule, as applicable, have been received by the Custodian.”

4

 

     (j) Section 5(c) of the Custody Agreement is hereby amended and restated in its entirety to
read as follows:

     “(c) If Custodian has determined that the documents delivered in connection
with any particular Transaction satisfy the requirements enumerated in Sections 5(a)
or 5(b) above and that all other Required Documents delivered in connection
therewith are complete and conform to the description thereof set forth herein,
Custodian shall deliver to Buyer or its designee by no later than (i) 6:00 p.m.
(eastern time) on the Business Day immediately preceding the related Purchase Date
for any Dry Loans or Undocumented Loans (other than any Dry Loans or Undocumented
Loans that are Correspondent Loans), a Notice of Intent to Issue Trust Receipt and
Exception Report, as applicable, with respect to such Mortgage Files, (ii) 6:00 p.m.
(eastern time) on the Business Day prior to the related Purchase Date for any AM
Funded Wet Loans, a Notice of Intent to Issue Trust Receipt and Exception Report, as
applicable, with respect to such Mortgage Loans, (iii) 11:00 a.m. (eastern time) on
the related Purchase Date for any PM Funded Wet Loans, a Notice of Intent to Issue
Trust Receipt and Exception Report, as applicable, with respect to such Mortgage
Loans and (iv) 1:00 p.m. (eastern time) on the related Purchase Date for any
Correspondent Loans, a Notice of Intent to Issue Trust Receipt and Exception Report,
as applicable, with respect to such Mortgage Loans. In addition, Custodian shall
deliver to Buyer or its designee, by no later than 5:00 p.m. (eastern time) on each
Business Day, one or more (but in no event exceeding five at any one time) Trust
Receipts and Exception Reports, as applicable, with respect to all Mortgage Loans
then subject to Transactions under the Master Repurchase Agreement. By no later than
5:00 p.m. (eastern time) on each Business Day, Custodian shall deliver by electronic
transmission to Seller and Buyer, separate Custodian Loan Transmissions and
Exception Reports with respect to the related Trust Receipts separately identifying
Undocumented Loans (other than Correspondent Loans), Wet Loans, Dry Loans (other
than Correspondent Loans) and Correspondent Loans (separately identifying
Correspondent Loans that are Dry Loans and Correspondent Loans that are Undocumented
Loans). Custodian shall deliver any additional Exception Reports to Buyer as Buyer
may from time to time reasonably request. Custodian shall send each Trust Receipt
and the related Exception Report to JPMorgan Chase Bank at Four New York Plaza,
Ground Floor, Outsourcing Department, New York, New York 10004, Attention: [***]
(telephone number [***]), by overnight delivery using a nationally recognized
overnight delivery service at Seller’s expense. Separate Trust Receipts shall be
delivered with respect to AM Funded Wet Loans, PM Funded Wet Loans, Undocumented
Loans (other than Correspondent Loans), Dry Loans (other than Correspondent Loans),
Correspondent Loans that are Dry Loans and Correspondent Loans that are Undocumented
Loans, as applicable, or such other categories of Mortgage Loans as Buyer may from
time to time reasonably request in writing. Each Trust Receipt and related
Custodian Loan Transmission, Exception Report,

 

			
	[***]	 	INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

5

 

Undocumented Loan Schedule, Wet Loan Schedule or Correspondent Loan Schedule, as the
case may be (A) shall supersede, cancel and replace any Trust

6

 

Receipt and related Custodian Loan Transmission, Exception Report, Undocumented Loan
Schedule, Wet Loan Schedule or Correspondent Loan Schedule, as the case may be,
previously delivered by Custodian to Buyer relating to the Mortgage Loans set forth
on such attached Custodian Loan Transmission, Exception Report, Undocumented Loan
Schedule, Wet Loan Schedule or Correspondent Loan Schedule, as the case may be;
provided, that any Wet Loan Trust Receipt issued shall only supersede any previously
issued Wet Loan Trust Receipt and any Undocumented Loan Trust Receipt issued shall
only supersede any previously issued Undocumented Loan Trust Receipt and (B) shall
be superseded, cancelled and replaced by any Trust Receipt and related Custodian
Loan Transmission, Exception Report, Undocumented Loan Schedule, Wet Loan Schedule
or Correspondent Loan Schedule, as the case may be, subsequently delivered by
Custodian to Buyer relating to the Mortgage Loans set forth on the attached
Custodian Loan Transmission, Exception Report, Undocumented Loan Schedule, Wet Loan
Schedule or Undocumented Loan Schedule, as the case may be. The most recently
delivered Trust Receipt with respect to specified Mortgage Loans shall control and
be binding with respect to such Mortgage Loans. Upon the termination of Custodian’s
obligations under this Agreement and delivery of the Mortgage Files to a successor
custodian or Buyer’s designee, all Trust Receipts issued hereunder automatically
shall be null and void. If upon examination of the Required Documents relating to
any Mortgage File, Custodian determines that such documents do not satisfy the above
requirements, is unable to confirm that such documents satisfy such requirements, or
Seller cannot cure any noted Exception, Custodian shall identify such Mortgage Loan
as having an Exception on the Mortgage Loan Schedule. Custodian shall promptly
deliver any Required Documents to Buyer upon its written request.”

     (k) Section 5(d) of the Custody Agreement is hereby amended and restated in its entirety to
read as follows:

     “(d) With respect to Wet Loans or Undocumented Loans (including any
Correspondent Loans that are Undocumented Loans), the delivery of the Transaction
Notice and Wet Loan Schedule, Undocumented Loan Schedule or Correspondent Loan
Schedule, as the case may be, to the Custodian by the Seller shall be deemed to
constitute “Required Documents” with respect to the related Wet Loan or Undocumented
Loan (and shall be deemed to be a certification by the Seller that such Loan is a
Wet Loan or an Undocumented Loan) and the documents specified in Section 4 above
shall not be required to be delivered with respect to such Wet Loan or Undocumented
Loan on the related Purchase Date. The Custodian shall deliver to Buyer or its
designee a Notice of Intent to Issue Trust Receipt for such Wet Loans or
Undocumented Loans in accordance with Section 5(c) hereof.”

     (l) The second to last paragraph of Section 17 of the Custody Agreement is hereby amended and
restated in its entirety to read as follows:

7

 

     “Custodian shall have no liability to any third party, other than any assignee
pursuant to Section 26 hereof, including without limitation any Person to whom a
Trust Receipt is delivered, in the event that (a) the related Custodian Loan
Transmission and Exception Report or Wet Loan Schedule, Undocumented Loan Schedule
or Correspondent Loan Schedule, as the case may be, attached to such Trust Receipt
is not the most recently delivered, (b) a Trust Receipt has been superseded,
cancelled or replaced by any Trust Receipt subsequently delivered by Custodian to
the Buyer, (c) any superseded, cancelled or replaced Trust Receipt has not been
delivered to Custodian and such third party is claiming under such superseded,
cancelled or replaced Trust Receipt or (d) any of the Mortgage Files with respect to
the Mortgage Loans set forth on a Custodian Loan Transmission attached to a Trust
Receipt have been released from Custodian’s possession as provided in this
Agreement.”

     (m) Exhibit A-1 is hereby deleted in its entirety and replaced with the exhibit attached
hereto as Exhibit A-1.

     (n) Exhibit A-2 is hereby deleted in its entirety and replaced with the exhibit attached
hereto as Exhibit A-2.

3. Fees and Expenses. Seller hereby agrees to pay to Buyer and Custodian, on demand, any
and all reasonable fees, costs and expenses (including reasonable fees and expenses of counsel)
incurred by Buyer in connection with the development, preparation, review and execution of this
Amendment, irrespective of whether any transactions hereunder are executed.

4. Confirmation of Custody Agreement; Seller Representations.

     (a) Seller hereby acknowledges and agrees that, upon effectiveness of this Amendment the
Custody Agreement shall be, and be deemed to be, modified and amended in accordance herewith and
the respective rights, limitations, obligations, duties, liabilities and immunities of Seller,
Custodian and Buyer shall hereafter be determined, exercised and enforced subject in all respects
to such modifications and amendments, and all the terms and conditions of this Amendment shall be
and be deemed to be part of the terms and conditions of the Custody Agreement for any and all
purposes. Except as expressly amended hereby, all of the terms of the Custody Agreement shall
remain in full force and effect and are hereby ratified and confirmed in all respects.

     (b) Seller represents and warrants that, as of the date of this Amendment, (i) Seller has the
requisite power and authority, and legal right, to execute and deliver this Amendment and to
perform its obligations under this Amendment and the Custody Agreement, (ii) Seller has taken all
necessary corporate and legal action to duly authorize the execution and delivery of this Amendment
and the performance of its obligations under this Amendment and the Custody Agreement, (iii) this
Amendment has been duly executed and delivered by Seller, (iv) each of this Amendment and the
Custody Agreement constitutes a legal, valid and binding obligation of Seller enforceable against
it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally
and by general equitable principles (whether enforcement is sought

8

 

by proceedings in equity or at law), and (v) after giving effect to this Amendment, no Default
or Event of Default has occurred and is continuing.

     (c) Each representation and warranty of Seller contained in the Custody Agreement is true and
correct and is hereby restated and affirmed.

     (d) Each covenant and each other agreement of Seller contained in the Custody Agreement (as
modified by this Amendment, if applicable) is hereby restated and affirmed.

5. Confirmation of Custody Agreement; Custodian Representations.

     (a) Custodian hereby acknowledges and agrees that, upon effectiveness of this Amendment, the
Custody Agreement shall be, and be deemed to be, modified and amended in accordance herewith and
the respective rights, limitations, obligations, duties, liabilities and immunities of Seller,
Custodian and Buyer shall hereafter be determined, exercised and enforced subject in all respects
to such modifications and amendments, and all the terms and conditions of this Amendment shall be
and be deemed to be part of the terms and conditions of the Custody Agreement for any and all
purposes. Except as expressly amended hereby, all of the terms of the Custody Agreement shall
remain in full force and effect and are hereby ratified and confirmed in all respects.

     (b) Custodian represents and warrants that, as of the date of this Amendment, (i) Custodian
has the requisite power and authority, and legal right, to execute and deliver this Amendment and
to perform its obligations under this Amendment and the Custody Agreement, (ii) Custodian has taken
all necessary corporate and legal action to duly authorize the execution and delivery of this
Amendment and the performance of its obligations under this Amendment and the Custody Agreement,
(iii) this Amendment has been duly executed and delivered by Custodian, and (iv) each of this
Amendment and the Custody Agreement constitutes a legal, valid and binding obligation of Custodian
enforceable against it in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights
of creditors generally and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law).

     (c) Each representation and warranty of Custodian contained in the Custody Agreement is true
and correct and is hereby restated and affirmed.

     (d) Each covenant and each other agreement of Custodian contained in the Custody Agreement (as
modified by this Amendment, if applicable) is hereby restated and affirmed.

6. Further Assurances. Seller hereby agrees to execute and deliver such additional
documents, opinions, instruments or agreements as may be reasonably necessary and appropriate to
effectuate the purposes of this Amendment and the Custody Agreement.

7. Conflicts. In the event of a conflict of any provision hereof with any provision or
definition set forth in the Custody Agreement the provisions and definitions of this Amendment
shall control.

9

 

8. Governing Law. This Amendment and the Custody Agreement shall be governed by New York
law without reference to choice of law doctrine (but with reference to Section 5-1401 of the New
York General Obligations Law, which by its terms applies to this Amendment and the Custody
Agreement).

9. Severability. Any provision of this Amendment and the Custody Agreement which is
prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition, unenforceability or non-authorization without
invalidating the remaining provisions hereof or thereof or affecting the validity, enforceability
or legality of such provisions in any other jurisdiction.

10. Entire Agreement. This Amendment, together with the Exhibits attached hereto and the
Custody Agreement as amended hereby, embody the entire agreement and understanding of the parties
hereto with respect to the subject matter hereof and supersede any and all prior agreements,
arrangements and understandings relating to the matters provided for herein. No alteration,
waiver, amendments, or change or supplement hereto shall be binding or effective unless the same is
set forth in writing and is signed by a duly authorized representative of each party hereto.

11. Binding Effect. This Amendment, together with the Exhibits attached hereto and the
Custody Agreement as amended hereby, shall be binding upon, enure to the benefit of and be
enforceable by each of the parties hereto and each of their respective successors and permitted
assigns.

12. Counterparts. This Amendment may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument, and any of the parties hereto
may execute this Amendment by signing any such counterpart.

13. Headings. The headings appearing in this Amendment are included solely for convenience
of reference and are not intended to affect the interpretation of any other provision of this
Amendment.

[Signature pages follow]

10

 

     IN WITNESS WHEREOF, the undersigned parties have caused this Amendment to be duly executed and
delivered by their respective authorized officers as of the date first above written.

	 	 	 	 	 
	 	BUYER

THE ROYAL BANK OF SCOTLAND PLC

By: Greenwich Capital Markets, Inc., its Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Amendment No. 3]

 

 

	 	 	 	 	 
	 	SELLER

PHH MORTGAGE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Amendment No. 3]

 

 

	 	 	 	 	 
	 	CUSTODIAN

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

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[Amendment No. 3]

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

EXHIBIT A-1

[UNDOCUMENTED LOAN] [DRY LOAN] TRUST RECEIPT

[•], 200_

To: The Royal Bank of Scotland plc

     Reference is made to the Amended and Restated Tri-Party Custody Agreement among The Royal Bank
of Scotland plc (the “Buyer”), PHH Mortgage Corporation (the “Seller”) and The Bank of New York
Trust Company, N.A., as custodian (the “Custodian”), dated as of June 25, 2008 (as amended,
supplemented or otherwise modified from time to time) (the “Tri-Party Custody Agreement”), pursuant
to which the Seller has delivered to the Custodian, with respect to each Mortgage Loan set forth on
Schedule A hereto (the “Mortgage Loan Schedule”), the documents set forth in Section 4 (subject to
the Exceptions listed in the Exception Report attached herewith) of the Tri-Party Custody
Agreement.

     With respect to each Mortgage Loan listed on the attached Custodian Loan Transmission and
except as otherwise noted in the following paragraph or on the Exception Report attached as
Schedule B hereto, the Custodian confirms that as of the date of this Trust Receipt (1) the
Custodian has received all of the documents required to be delivered to the Custodian pursuant to
Sections 4 (a)-(f) of the Tri-Party Custody Agreement, (2) the Custodian has reviewed each Mortgage
File in accordance with Section 5 of the Tri-Party Custody Agreement and the Review Procedures, and
the documents contained in each Mortgage File other than the Exceptions listed in the attached
Exception Report, conform to the requirements set forth in Section 5 of the Tri-Party Custody
Agreement, and (3) except to the extent released in accordance with the terms of the Tri-Party
Custody Agreement, the Custodian has physical possession of the documents in each Mortgage File and
will continue to hold each Mortgage File as bailee of and agent and custodian for, and for the sole
and exclusive use and benefit of, the addressee of this Trust Receipt, until such addressee directs
the Custodian in writing to the contrary in accordance with the Tri-Party Custody Agreement.

     Certain Mortgage Loans on the attached Custodian Loan Transmission may be Undocumented Loans.
An Undocumented Loan is defined in the Tri-Party Custody Agreement as a Mortgage Loan, listed on an
Undocumented Loan Schedule or a Correspondent Loan Schedule, with respect to which the Mortgage
File has not been delivered to the Custodian. With respect to each Undocumented Loan listed on the
attached Custodian Loan Transmission, the Custodian confirms only that it has been advised by
Seller that such Mortgage Loan is an Undocumented Loan under the Master Repurchase Agreement.

     This Trust Receipt and attached Custodian Loan Transmission and Exception Report (a) shall
supersede, cancel and replace any Trust Receipt and related Custodian Loan Transmission and
Exception Report previously delivered by Custodian to the Buyer relating to the Mortgage Loans set
forth on the attached Custodian Loan Transmission and Exception Report; and (b) shall be
superseded, cancelled and replaced by any Trust Receipt and related Custodian Loan Transmission and
Exception Report subsequently delivered by Custodian to the Buyer relating to the Mortgage Loans
set forth on the attached Custodian Loan Transmission and Exception

Exhibit A-1-1

 

Report. The most recently delivered Trust Receipt with respect to specified Mortgage Loans
shall control and be binding with respect to such Mortgage Loans.

     The holder of this Trust Receipt is advised to contact the Buyer or its agent to determine
whether the attached Custodian Loan Transmission and Exception Report is the most recently
delivered, whether the attached Custodian Loan Transmission and Exception Report has been
superseded or cancelled, and whether this Trust Receipt has been superseded, cancelled or replaced
by any Trust Receipt subsequently delivered by Custodian to the Buyer. The holder of this Trust
Receipt also is advised to contact the Buyer or its agent to determine whether (i) Buyer has
entered into repurchase transactions with respect to or pledged or assigned its ownership in the
Mortgage Loans set forth on the attached Custodian Loan Transmission as collateral for an
obligation of Buyer or (ii) any of the Mortgage Files with respect to the Mortgage Loans set forth
on the attached Custodian Loan Transmission have been released from Custodian’s possession as
provided in the Tri-Party Custody Agreement.

     Custodian shall have no liability to any third party, including without limitation any Person
to whom this Trust Receipt is delivered, in the event that (a) the attached Custodian Loan
Transmission and Exception Report is not the most recently delivered, (b) this Trust Receipt has
been superseded, cancelled or replaced by any Trust Receipt subsequently delivered by Custodian to
the Buyer, (c) any superseded, cancelled or replaced Trust Receipt has not been delivered to
Custodian or (d) any of the Mortgage Files with respect to the Mortgage Loans set forth on the
Custodian Loan Transmission have been released from Custodian’s possession as provided in the
Tri-Party Custody Agreement.

     If this Trust Receipt is held by a Person other than Buyer, the Custodian will accept and act
on instructions from the Assignee only if a Notice of Default is executed and delivered by Assignee
to the Custodian and the provisions set forth in Section 26 of the Tri-Party Custody Agreement have
been complied with.

     Custodian makes no representations as to and shall not be responsible for or required to
verify (A) the validity, legality, enforceability, due authorization, effectiveness, recordability,
insurability, sufficiency, value, form, substance, or genuineness of any of the documents contained
in each Mortgage File or (B) the collectibility, ownership, insurability, validity,
transferability, insurability, value, effectiveness, perfection, priority or suitability of any
Mortgage Loan, and shall have no obligation to determine that any of such documents delivered to it
hereunder have been actually recorded or that they are other than what they purport to be on their
face.

     Upon the termination of the Custodian’s obligations under the Tri-Party Custody Agreement and
delivery of the Mortgage Files to a successor custodian in accordance with the provisions of the
Tri-Party Custody Agreement, this Trust Receipt automatically shall be null and void.

     THIS TRUST RECEIPT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

Exhibit A-1-2

 

     All terms used herein and not otherwise defined herein shall have the respective meaning
ascribed to such term in the Tri-Party Custody Agreement.

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

Custodian

 	 
	 	By:  	 	 
	 	 	Name: 	 	 
	 	 	Title:  	 	 
	 

Exhibit A-1-3

 

Schedule A

Mortgage Loan Schedule

Exhibit A-1-4

 

Schedule B

Schedule of Exceptions

Exhibit A-1-5

 

EXHIBIT A-2

NOTICE OF INTENT TO ISSUE TRUST RECEIPT

No. __________

[Date]

     Reference is made to the Amended and Restated Tri-Party Custody Agreement among The Royal Bank
of Scotland plc (the “Buyer”), PHH Mortgage Corporation (the “Seller”) and The Bank of New York
Trust Company, N.A., as custodian (the “Custodian”), dated as of June 25, 2008 (as amended,
supplemented or otherwise modified from time to time) (the “Tri-Party Custody Agreement”), pursuant
to which the Custodian hereby notifies the Buyer that the Custodian shall issue a Trust Receipt, in
the case of Dry Loans, confirming, among other things, that the Custodian shall hold the Mortgage
File relating to each Mortgage Loan listed on the Mortgage Loan Schedule attached as Schedule A
hereto (subject to the Exceptions listed in the Exception Report attached as Schedule D hereto) as
bailee of and agent and custodian for the Buyer, upon the Custodian’s receipt of notice that the
Purchase Price for such Mortgage Loans has been paid by Buyer to Seller, (ii) in the case of
Undocumented Loans listed on the attached Undocumented Loan Schedule or Correspondent Loan
Schedule, as applicable, confirming only that the Custodian has been advised by Seller that such
Mortgage Loan is an Undocumented Loan under the Master Repurchase Agreement and (iii) in the case
of Wet Loans listed on the attached Wet Loan Schedule, confirming, among other things, Custodian
has been advised by Seller that such Mortgage Loan is a Wet Loan under the Master Repurchase
Agreement and that (subject to the Exceptions listed in the Exception Report attached as Schedule D
hereto) the Insured Closing Letter and Escrow Letter are present.

     Each capitalized term used herein and not otherwise defined herein shall have the respective
meaning ascribed to such term in the Tri-Party Custody Agreement.

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

as Custodian

 	 
	 	By:  	 	 
	 	 	Its: 	 
	 	 	Date: 	 
	 

Exhibit A-2-1

 

Schedule A

Mortgage Loan Schedule

Exhibit A-2-2

 

Schedule B

[Undocumented Loan Schedule] [Correspondent Loan Schedule]

Exhibit A-2-3

 

Schedule C

Wet Loan Schedule

Exhibit A-2-4

 

Schedule D

Schedule of Exceptions

Exhibit A-2-5

 

EXHIBIT D

FORM OF TRANSACTION NOTICE

[insert date]

The Royal Bank of Scotland plc

c/o Greenwich Capital Markets, Inc.

600 Steamboat Road

Greenwich, Connecticut 06830

Attention: ___________________________

Transaction Notice No.: __________________ — AM Funded Wet Loans / PM Funded Wet Loans /
Undocumented Loans (other than Correspondent Loans) / Dry Loans (other than Correspondent Loans) /
Correspondent Loans (circle one)

Ladies/Gentlemen:

          Reference is made to the Amended and Restated Master Repurchase Agreement, dated as of June
26, 2008, as amended by Amendment No. 1 thereto, dated as of July 29, 2008, as amended by Amendment
No. 2 thereto, dated as of December 19, 2008, as amended by Amendment No. 3 thereto, dated as of
December 30, 2008 and as amended by Amendment No. 4 thereto, dated as of March 13, 2009 (as further
amended, supplemented or otherwise modified, from time to time, in accordance with its terms, the
“Repurchase Agreement”; capitalized terms used but not otherwise defined herein shall have
the meaning given them in the Repurchase Agreement), between PHH Mortgage Corporation (the
“Seller”) and The Royal Bank of Scotland plc (the “Buyer”).

          In accordance with Section 3(a) of the Repurchase Agreement, the undersigned Seller hereby
requests that you, Buyer, agree to enter into a Transaction with us in connection with our delivery
of Loans on [insert one (1) Business Days from date hereof, in the case of Dry Loans and
Undocumented Loans (other than any Dry Loans or Undocumented Loans that are Correspondent Loans)]
[insert one (1) Business Day from the date hereof, in the case of AM Funded Wet Loans] [insert the
date hereof, in the case of PM Funded Wet Loans] [insert the date hereof, in the case of
Correspondent Loans] in connection with which we shall sell to you the Loans set forth on the Loan
Schedule attached hereto. The Purchase Price shall be the applicable Purchase Price as set forth
in the Pricing Side Letter, the Pricing Rate shall be the applicable Pricing Rate as set forth in
the Pricing Side Letter, and Seller agrees to repurchase such Loans on [the 25th of the
immediately following calendar month] [insert alternative Repurchase Date if desired] at the
Repurchase Price.

          Seller hereby certifies, as of such Purchase Date, that:

D-1

 

     1. no Default, Event of Default or Event of Termination has occurred and is continuing
on the date hereof nor will occur after giving effect to such Transaction as a result of
such Transaction;

     2. each of the representations and warranties made by Seller in or pursuant to the
Program Documents is true and correct in all material respects on and as of such date (in
the case of the representations and warranties in respect of Loans, solely with respect to
Loans being purchased on the Purchase Date) as if made on and as of the date hereof (or, if
any such representation or warranty is expressly stated to have been made as of a specific
date, as of such specific date);

     3. Seller is in compliance with all governmental licenses and authorizations and is
qualified to do business and is in good standing in all required jurisdictions except where
the lack of any such license or authorization would not be reasonably likely to have a
Material Adverse Effect;

     4. Seller has delivered, or within 2 Business Days after the Purchase Date for any
purchase of Additional Collateral Mortgage Loans, Seller will deliver, to each Surety Bond
Issuer any instrument required to be delivered under the related Surety Bond, executed by
the necessary parties, and comply with all other requirements for transferring coverage
under the related Surety Bonds in respect of such Additional Collateral Mortgage Loans to
the Buyer; and

     5. Seller has satisfied all conditions precedent in Sections 9(a) and (b) of the
Repurchase Agreement and all other requirements of the Program Documents.

          The undersigned duly authorized officer of Seller further represents and warrants that (1) the
documents constituting the Mortgage File (as defined in the Custodial Agreement) and the other
Program Documents with respect to the Loans that are the subject of the Transaction requested
herein and more specifically identified on the mortgage loan schedule or computer readable magnetic
transmission delivered to, Buyer and the Custodian in connection herewith (the “Receipted Loans”)
[with respect to Dry Loans (including any Correspondent Loans that are Dry Loans): have been or
are hereby submitted] [with respect to Undocumented Loans (including any Correspondent Loans that
are Undocumented Loans) or Wet Loans: shall be delivered, within ten (10) Business Days of the
date of the execution of this Transaction Notice] to Custodian and such Required Documents are to
be held by the Custodian for Buyer, (2) all other documents related to such Receipted Loans
(including, but not limited to, mortgages, insurance policies, loan applications and appraisals)
have been or will be created and held by Seller in trust for Buyer, (3) all documents related to
such Receipted Loans withdrawn from Custodian shall be held in trust by Seller for Buyer, and (4)
upon Buyer’s wiring of the Purchase Price pursuant to Section 3(d) of the Repurchase Agreement,
Buyer will have agreed to the terms of the Transaction as set forth herein and purchased the
Receipted Loans from Seller.

D-2

 

          Seller hereby represents and warrants that (x) the Receipted Loans have an unpaid principal
balance as of the date hereof of $_________ and (y) the number of Receipted Loans is _________.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

D-3

 

	 	 	 	 	 

EXHIBIT M

FORM OF CORRESPONDENT SELLER RELEASE

[insert date]

PHH Mortgage Corporation

3000 Leadenhall Road

Mail Stop PCLG

Mt. Laurel, New Jersey 08054

Attention: ____________________________

          Re: Correspondent Seller Release

     Effective immediately upon the receipt (the date and time of such receipt, the “Date and
Time of Sale”) by [Name of Correspondent Lender] of $____________, [Name of Correspondent
Lender] hereby relinquishes any and all right, title and interest it may have in and to the
mortgage loans described in Exhibit A attached hereto (the “Loans”), including any security
interest therein, and certifies that all notes, mortgages, assignments and other documents in its
possession or in the possession of its custodial agent relating to such Loans have been released to
PHH Mortgage Corporation or its designee as of the Date and Time of Sale.

	 	 	 	 	 
	 	[NAME OF CORRESPONDENT LENDER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

M-1

 

	 	 	 	 	 

EXHIBIT A TO CORRESPONDENT SELLER RELEASE

[List of Loans]

M-2EX-10.40

UFood Restaurant Group, Inc.

255 Washington St.

Newton, MA 02458

January 22, 2009

Personal and Confidential

Eric Spitz

53 Fuller Street

Waban, MA 02468

Dear Eric:

This letter agreement (the “Agreement”) will confirm the agreements that we have reached concerning
your separation of employment with UFood Restaurant Group, Inc. (“UFood”). The purpose of this
Agreement is to set out our mutual understandings with respect to the termination of your
employment, and to provide for a mutual release of certain claims against UFood and its affiliates,
or by UFood and its affiliates against you, and is intended to supplement and amend, as applicable,
the Employment Agreement, dated as of October 15, 2007, between you and a predecessor of UFood (the
“Employment Agreement”).

With those understandings and in exchange for the promises of you and UFood set forth below, you
and UFood agree as follows:

1. Termination of Employment

In consideration of the promises and covenants made by you and us in this Agreement, UFood hereby
agrees that you shall be deemed to have effectively terminated your employment for “Good Reason” as
of December 31, 2008. UFood further agrees and acknowledges that it did not and does not have
reason to terminate your employment for “Cause” under the Employment Agreement, and hereby
withdraws such notice in all respects. Because your employment with UFood continued through
December 31, 2008, UFood hereby agrees to immediately pay to you the wages due to you as of
December 31, 2008 in the amount of $___, subject to applicable withholding for state and federal
income and employment-related taxes (but no further withholding or offset).

2. Further Severance and Benefits

You and UFood hereby agree that UFood’s severance payments to you are limited to $175,000 (plus the
same employee benefits (including health, dental, etc.) which were being provided to you and your
family as of the termination of your employment), and that such severance payments include all
payments made on and after September 1, 2008. UFood will continue to make severance payments to
you (plus the same employee benefits (including health, dental, etc.) which were being provided to
you and your family as of the termination of your employment obligation) in the amount of $7,291.67
per month, payable in accordance with UFood’s regular salary payment process for its other
employees and subject to applicable withholding for state and federal income and employment-related
taxes (but no further withholding or offset) until such time as you have received aggregate
severance payments of $175,000. Notwithstanding the other provisions of this Agreement, UFood
may, at any time, pay you the remaining

 

 

and unpaid balance of the $175,000, including employee
benefits through the date of payment. From and after such payment in accordance with this
paragraph 2, no further severance or other benefit payments shall be due under this Agreement or
the Employment Agreement. The benefits provided by this paragraph 2 and paragraphs 3 and 4 below
are intended to modify and replace in their entirety the severance benefits otherwise payable under
the Employment Agreement

3. Acceleration of Benefits Upon Consummation of Financing

UFood hereby agrees that in the event that UFood consummates, on or after the date hereof, an
equity and/or debt financing (which may include a single transaction or a series of related
transactions) raising new proceeds of no less than
$4,500,000, then upon the consummation of such financing, UFood shall increase the monthly
severance payments due you in paragraph 2 hereof to $14.583.33, until such time as you have
received aggregate severance payments of $175,000 From and after such payment in accordance with
this paragraph 3, no further severance or other benefit payments shall be due under this Agreement
or the Employment Agreement. Any payment pursuant to this paragraph 3 shall be subject to
applicable withholding for state and federal income and employment-related taxes (but no further
withholding or offset).

4. Acceleration of Benefits Upon Certain Other Events

UFood hereby agrees that in the event that UFood files for bankruptcy protection, then you shall
immediately be due an amount equal to (x) the sum of $175,000, minus (y) the sum of the
aggregate salary and wages (including any cash severance paid to you pursuant to paragraph 3 above)
paid to you since September 1, 2008, plus the product of the monthly cost of UFood to
provide the benefits to you and your family that were being provided to you as of the termination
of employment, multiplied by the number of months from and after September 1, 2008, that
such benefits were actually provided to you (including pursuant to paragraph 2 above). From and
after such payment in accordance with this paragraph 4, no further severance or other benefit
payments shall be due under this Agreement or the Employment Agreement. Any payment pursuant to
this paragraph 4 shall be subject to applicable withholding for state and federal income and
employment-related taxes (but no further withholding or offset).

6. COBRA.

At your election, at the conclusion of payment of your severance obligations, you and your
beneficiaries will be entitled to continuation of group health plan benefits to the extent
authorized by and consistent with 29 U.S.C. § 1161 et seq. (commonly known as “COBRA”) for the
remainder of the 18-month COBRA period at your own expense, provided that you remain eligible under
COBRA.

7. General Release of Claims

     (a) In consideration for UFood’s assumption of its obligations hereunder, you voluntarily
release and discharge UFood, and its affiliates, subsidiaries, predecessors and successors, and the
current and former partners, officers, directors, shareholders, employees, and agents of each of
the foregoing (any and all of which are referred to as “UFood Parties”) generally from all charges,
complaints, claims, promises, agreements, causes of action, damages, and debts of any nature
whatsoever, known or unknown (“Claims”), which, as of the date of this Agreement, you have, claim
to have, ever had, or ever claimed to have had against any of the UFood Parties. This General
Release of Claims includes, without limitation, all Claims related to your employment or your
separation from employment with UFood, the compensation provided to you by UFood, and your
activities on behalf of UFood, including, without limitation, any Claims of wrongful discharge,
breach of contract, breach of an implied covenant of good

2

 

faith and fair dealing, tortious
interference with advantageous relations, any intentional or negligent misrepresentation, and
unlawful discrimination or retaliation under the common law or any statute (including, without
limitation, Chapter 151B of the M.G.L.). You hereby acknowledge and agree that the termination of
your employment on the Separation Date as contemplated herein shall not give rise to any actionable
claims, and such termination is expressly encompassed within the General Release of Claims covered
in this paragraph 7. Nothing in this General Release of Claims shall be construed to bar or limit
your right to enforce the terms of this Agreement or your right to indemnification under the
charter and by-laws of UFood for periods during which you were employed by, or a director of,
UFood.

     (b) In consideration for the issuance of the release by you in subparagraph (a) above, UFood,
on behalf of itself and the other UFood Parties hereby release and discharge you generally from all
Claims which, as of the date of this Agreement, we or any of the other UFood Parties have, claim to
have, ever had, or ever claimed to have had against you, including but not limited to any claims
arising out of the employment of you by the UFood Parties, or the events, facts or circumstances
alleged in the notice, dated December 30, 2008, delivered to you by UFood with reference to the
Employment Agreement.

8. Nondisparagement

You hereby agree that you will not make any statements or take any actions that criticize or
disparage any UFood Parties in any manner. UFood hereby agrees on behalf of itself and the other
UFood Parties that it and they will not make any statements or take any actions that criticize or
disparage you in any manner.

9. Notices, Acknowledgments and Other Terms

This Agreement (together with the other agreements and amendments referenced herein, as applicable,
including the Employment Agreement) represents the entire agreement between you and UFood regarding
the matters addressed in this Agreement. All previous agreements and promises between you and
UFood regarding the matters addressed in this Agreement are superseded, null and void.

In the event of any dispute, this Agreement will be construed as a whole, will be interpreted in
accordance with its fair meaning, and will not be construed strictly for or against either you or
UFood. The laws of the Commonwealth of Massachusetts shall govern any dispute about this
Agreement, including any interpretation or enforcement of this Agreement, without giving effect to
the conflict of laws provisions of Massachusetts law (except to the extent that the partnership
agreements and amendments referenced herein specify that they are to be governed by the laws of
another jurisdiction). In the event that any provision or portion of a provision of this Agreement
shall be determined to be unenforceable, the remainder of this Agreement shall be enforced to the
fullest extent possible as if such provision or portion of a provision were not included. This
Agreement may be modified only by a written agreement signed by you and an authorized
representative of UFood.

3

 

10. Indemnification and Insurance.

We hereby agree that you shall remain entitled to any indemnification or exculpation provisions
contained in any of the UFood constitutive documents with respect to all periods of service to
UFood or its predecessors.

11. Legal Fees Relating to Enforcement.

In any suit, proceeding or claim relating to the enforcement of this Agreement against any of the
parties hereto, the prevailing party shall be entitled to reimbursement of any legal fees, costs or
expenses incurred in connection with such enforcement by such party.

Please indicate your agreement to the terms of this Agreement by promptly signing and returning to
me an original copy of this Agreement.

Sincerely,

UFOOD RESTAURANT GROUP, INC.

	 	 	 	 	 
	By:

	 	/s/ Charles Cocotas
 

President
	 	 

ACCEPTED AND AGREED:

	 	 	 
	/s/ Eric Spitz
 

Name: Eric Spitz

	 	 

Date: January 22, 2009

4

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