Document:

Exhibit

Exhibit 10.11.1

PHH CORPORATION
2018 MANAGEMENT INCENTIVE PLAN
(Under the PHH Corporation 2014 Equity and Incentive Plan)

I.  INTRODUCTION

1.1.    Purposes.  The purposes of this PHH Corporation 2018 Management Incentive Plan (this “MIP”) are to provide incentives to the officers and other employees of PHH Corporation (the “Company”) and its Affiliates (as defined below) to attain the goals established by the Committee (as defined below), to provide such officers and other employees with incentive compensation that is based on Company and individual performance, and to align their interests with the interests of the Company’s shareholders.  

1.2.    Description.  This MIP is a sub-plan under Section 3.5 of the PHH Corporation 2014 Equity and Incentive Plan (as amended from time to time, the “2014 EIP”) and is subject to the terms of the 2014 EIP.  This MIP is the means by which the Committee shall determine cash incentives and affect and implement awards for participating employees hereunder.  

II.  DEFINITIONS

As used in this MIP, the following terms shall have the following meanings:

“Affiliate” has the meaning ascribed to it in the 2014 EIP.

“Award Agreement” has the meaning ascribed to it in the 2014 EIP.

“Board of Directors” has the meaning ascribed to it in the 2014 EIP.

“Cash Incentive Award” means an award hereunder with respect to a Plan Year determined in accordance with Article V hereof and evidenced by an Award Agreement.

“Cash Incentive Payment” means a payment pursuant to a Cash Incentive Award.

“Change in Control” has the meaning ascribed to it in the 2014 EIP.

“Committee” has the meaning ascribed to it in the 2014 EIP.
    
“Participant” has the meaning ascribed to it in the 2014 EIP.  

“Performance Goals” has the meaning ascribed to it in the 2014 EIP.  

“Plan Year” means the consecutive twelve‐month period commencing on January 1 and ending on December 31.

III.  ADMINISTRATION

The administration and operation of this MIP shall be supervised by the Committee with respect to all matters.  The Committee shall interpret and construe any and all provisions of this MIP and any determination made by the Committee under this MIP shall be final and conclusive.  Neither the Board of Directors nor the Committee, nor any member of the Board of Directors, nor any employee of the Company or its Affiliates shall be liable for any act, omission, interpretation, construction or determination made in connection with this MIP (other than acts of willful misconduct) and the members of the Board of Directors and the Committee and the employees of the Company and its Affiliates shall be entitled to indemnification and reimbursement by the Company to the maximum extent permitted at law in respect of any claim, loss, damage or expense (including counsel’s fees) arising from their acts, omissions and conduct in their official capacity with respect to this MIP.  If the terms of this MIP conflict with the terms of the 2014 EIP in a manner that would make compliance with the terms of both this MIP and the 2014 EIP impossible, the terms of the 2014 EIP shall control. 

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IV.  PARTICIPATION

Cash Incentive Awards may be granted to officers and other employees of the Company or its Affiliates selected in the discretion of the Committee for participation in this MIP for a Plan Year.  Once a person becomes a Participant under this MIP, the Participant shall remain a Participant until any Cash Incentive Payments payable to such Participant pursuant to this MIP and any Cash Incentive Awards granted hereunder have been paid out or forfeited.

V.  AWARDS

5.1.    Establishment of Performance Goals or Other Criteria.  The Committee shall establish the Performance Goals for the payment under Cash Incentive Awards, if any, that it determines in its sole discretion are necessary or appropriate in such time and manner as the Committee may determine.  Performance Goals and other performance criteria, as applicable, will be reflected in the applicable Award Agreements for any Cash Incentive Award hereunder.

5.2.    Cash Incentive Award Limitations and Committee Discretion.  The Committee will establish the maximum Cash Incentive Payment that can be made pursuant to a Cash Incentive Award.  Subject to Section 5.5, after establishing the maximum Cash Incentive Payment that can be made pursuant to a Cash Incentive Award under this Article V for a Plan Year, the Committee may reduce or increase the Cash Incentive Payment payable to a Participant based upon the Committee’s determination of the individual performance of such Participant for such Plan Year and such other factors as the Committee deems appropriate.

5.3.    Determination of Achievement of Performance Goals or Other Measures.  The Committee shall certify the level of achievement of the Performance Goals or such other performance criteria as soon as practical after the end of the Plan Year for which the determination is being made, including by certifying that the Performance Goals or such other performance criteria were not attained, if applicable.

5.4.    Cash Incentive Payments.  Unless contrary to applicable law and except as provided in Section 5.5, no Participant shall vest in a Cash Incentive Payment unless he or she is employed by the Company or an Affiliate on the date the Committee certifies the level of achievement under the Performance Goals or other performance criteria under Section 5.3; provided that the Committee (with respect to those Participants for whom the Committee has responsibility to determine compensation) or the Company (for all other Participants) may waive this requirement in its discretion.  Except as provided in Section 5.5, no Cash Incentive Payment shall be made to a Participant prior to the certification by the Committee of the level to which the Performance Goals or other performance criteria have been attained.  Vested Cash Incentive Payments under this Section will be made within thirty (30) days following such certification, but in no event later than March 15 of the Plan Year in which such certification occurs.  If the Committee exercises discretion in Section 5.2 to reduce a Participant’s Cash Incentive Payment to zero dollars, or if the Committee certifies that the Performance Goals or other performance criteria have not been met and does not increase the amount of the Cash Incentive Payment, the Cash Incentive Payment will be deemed paid as of the date such discretion is exercised or certification is made, as applicable.

5.5    Change in Control Provisions. 

(a)    Unless otherwise determined by the Committee and evidenced in an Award Agreement in respect of a Cash Incentive Award, in the event of a Change in Control before the end of the performance period to which the Performance Goals or other performance criteria relates, performance will be determined as of the date of the Change in Control (or if the metric is not calculable as of that date, the earliest date prior to the Change in Control for which performance is calculable) and the Cash Incentive Award will be settled, if at all, by no later than March 15 of the year following the year in which the Change in Control occurs.

(c)    Unless otherwise determined by the Committee and evidenced in an Award Agreement in respect of a Cash Incentive Award, if (i) a Change in Control occurs after the Committee certifies the level of attainment of Performance Goals or other performance criteria under Section 5.3 and before any Cash Incentive Payment in respect of such Cash Incentive Award is paid, and (ii) the Participant is employed by the Company or an Affiliate on the date of the Change in Control, then the Committee will not have any discretion to reduce such Cash Incentive Payment pursuant to Section 5.2 on or after the effective date of the Change in Control.

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VI.  GENERAL PROVISIONS

6.1.    Amendment and Termination.  The Committee may at any time amend, suspend, discontinue or terminate this MIP; provided, however, that no such amendment, suspension, discontinuance or termination shall materially and adversely affect the rights of any Participant with respect to a Cash Incentive Award with respect to any Plan Year which has then ended.  All determinations concerning the interpretation and application of this Section 6.1 shall be made by the Committee.

6.2.    Payment on Death.  In the event a Participant dies after a Cash Incentive Payment has vested under this MIP, such Cash Incentive Payment shall be made to the Participant’s estate.

6.3.    Rights Unsecured.  The right of any Participant to receive vested Cash Incentive Payments under this MIP shall constitute an unsecured claim against the general assets of the Company.

6.4.    Withholding Taxes.  The Company shall have the right to deduct from each Cash Incentive Payment any federal, state and local taxes required by such laws to be withheld with respect to any payment under this MIP. 

6.5.    Miscellaneous.

(a)    No Right of Continued Employment.  Nothing in this MIP shall be construed as conferring upon any Participant any right to continue in the employment of the Company or any of its Affiliates.

(b)    No Limitation on Corporate Actions.  Nothing contained in this MIP shall be construed to prevent the Company or any Affiliate from taking any corporate action which is deemed by it to be appropriate or in its best interest, whether or not such action would have an adverse effect on this MIP or any awards made under this MIP.  No employee, Participant or other person shall have any claim against the Company or any of its Affiliates as a result of any such action.

(c)    Nonalienation of Benefits.  Except as expressly provided herein, neither a Participant nor his or her heirs, executors, or administrators shall have the power or right to transfer, hypothecate, alienate, assign, or otherwise encumber the Participant’s interest under this MIP.  The Company’s obligations under this MIP are not assignable or transferable except to a corporation which acquires all or substantially all of the assets of the Company or any corporation into which the Company may be merged or consolidated.  

(d)    Severability.  If any provision of this MIP is determined by a court of competent jurisdiction to be unenforceable, the remainder of this MIP shall continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in this MIP.

(e)    Governing Law.  This MIP shall be construed in accordance with and governed by the laws of the State of Maryland, without reference to the principles of conflict of laws.

(f)    Headings.  Headings are inserted in this MIP for convenience of reference only and are to be ignored in a construction of the provisions of this MIP.

3Exhibit

Exhibit 10.12.3

FORM OF PHH CORPORATION 
MANAGEMENT INCENTIVE PLAN
2018 AWARD NOTICE
This Award Notice is delivered by PHH Corporation, a Maryland corporation (the “Company”), to ______________ (the “Grantee”).  Upon and subject to the terms and conditions below and the terms and conditions of the PHH Corporation 2018 Management Incentive Plan (the “MIP”) and the PHH Corporation 2014 Equity and Incentive Plan (as amended from time to time, the “2014 EIP”), each to the extent applicable, the Company hereby awards to the Grantee a cash incentive bonus (the “Award”) described herein.  Capitalized terms used, but not defined, in this Award have the respective meanings ascribed to them in the MIP or the 2014 EIP.

		
	A.
	Plan Year (to which the Award relates) means: January 1, 2018 through December 31, 2018.

		
	B.
	Target Amount, Targets, and Performance Criteria: In calculating the final amount available for payment under this Award for 2018, the Committee will take into account the results achieved by the Company and its Affiliates against the performance criteria described in Appendix A (the “Performance Criteria”). The Grantee’s individual 2018 MIP goal of $[__________] (the “Target Amount”) will be adjusted based on performance against the Performance Criteria for the Plan Year as approved by the Committee in the manner which is shown in Appendix A. The Grantee’s final MIP award, if any, is subject to Company and individual performance as well as Committee discretion. 

Your 2018 MIP is based on Performance Criteria measuring the [_____________] organizational segment based on the role you are in on the date this award is granted.  Any changes that might occur to your role and its corresponding organizational segment may result in an adjustment of your Target Amount opportunity and/or the applicable organizational segment Performance Criteria based on the portion of the year which you completed in the respective segments and roles.  

Notwithstanding the foregoing, no payment will be made under any award unless (1) the 2019 Business plan demonstrates, in the discretion of the Committee, adequate available liquidity resources to meet the 2019 business liquidity needs and (2) the Company is in compliance with the minimum net worth covenants in its borrowing arrangements.  

		
	C.
	Impact of Performance on MIP:  Subject to the MIP, the 2014 EIP, and the other terms of this Award, the Committee will assess the level of attainment of the Plan Year Performance Criteria set forth in Appendix A based on the “Threshold”, “Target”, and “Maximum” goals provided on Appendix A, as certified by the Committee. 

		
	D.
	Vesting and Payment:  Unless contrary to applicable law and except as provided in this Paragraph D or the MIP, the Grantee will only become vested in the Award if the Grantee is employed by the Company or an Affiliate on the date the Committee certifies the level of achievement of all of the Plan Year Performance Criteria.  Except as provided in this Paragraph D or the MIP, if the Committee does not certify the level of achievement of all of the Plan Year Performance Criteria, or if the Grantee is not an employee of the Company or an Affiliate on the date, if any, that such certification occurs, no amount will be payable pursuant to this Award.  

If the Grantee is terminated without Cause, the Grantee will be entitled to a pro-rata portion of the final Award based on the number of days worked by the Grantee in the Plan Year over the total number of days in the Plan Year with performance against the Performance Criteria (other than individual Performance Criteria) determined by the Committee for the entire Plan Year and with individual Performance Criteria considered met at the “Target” level. 

If the Grantee experiences a Separation from Service with the Company and its Affiliates during the Plan Year due to his death or Disability, the Grantee will be entitled to a pro-rata portion of the final Award based on the number of days worked by the Grantee in the Plan Year over the total number of days in the Plan Year with all Performance Criteria considered met at the “Target” level. 

The Change in Control provisions of the MIP, including, without limitation, Section 5.5 thereof, do not apply.  If a Change in Control occurs, all Performance Criteria will be considered met at the “Target” level.  

Any vested Award amount will be paid in accordance with Section 5.4 of the MIP.  Notwithstanding the foregoing, if (1) a Change in Control occurs and the Grantee continues to be employed by the Company or an Affiliate through the end 

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of the Plan Year, any vested Award amount will be paid within sixty (60) days following the end of the Plan Year; (2) a Change in Control occurs and the Grantee is terminated without Cause or resigns for Good Reason, any vested Award amount will be paid within sixty (60) days following such termination; and (3) a Change in Control occurs and the Grantee experiences a Separation from Service with the Company and its Affiliates during the Plan Year due to his death or Disability, any vested Award amount will be paid within sixty (60) days following such termination.   

		
	E.
	Definitions: For purposes of this Award, “Cause” means any one of the following: (1) a material failure of the Grantee to substantially perform the Grantee’s duties with the Company or its Affiliates (other than failure resulting from incapacity due to physical or mental illness); (2) any act of fraud, misappropriation, dishonesty, embezzlement or similar conduct against, or relating to the assets of, the Company or its Affiliates; (3) conviction (or plea of nolo contendere) of a felony or any crime involving moral turpitude; (4) repeated instances of negligence in the performance of the Grantee’s job or any instance of gross negligence in the performance of the Grantee’s duties as an employee of the Company or one of its Affiliates; (5) any breach by the Grantee of any fiduciary obligation owed to the Company or any Affiliate or any material element of the Company’s Code of Business Ethics and Conduct or other applicable workplace policies; or (6) failure by the Grantee to perform the Grantee’s job duties for the Company or any Affiliate to the best of the Grantee’s ability and in accordance with reasonable instructions and directions from the Board of Directors or its designee, and the reasonable workplace policies and procedures established by the Company or any Affiliate, as applicable, from time to time.

For purposes of this Award, “Disability” means the Grantee is (1) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months or (2) by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company and its Affiliates is (1) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months or (2) by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company and its Affiliates.

For purposes of this Award, “Good Reason” means any one of the following: (1) a material diminution in the Grantee’s base compensation (from the amount in effect on the date of the applicable Change in Control); (2) a material diminution in authority, duties, or responsibilities of the Grantee; (3) a material diminution in the budget over which the Grantee retains authority; (4) a material change in the geographic location at which the Grantee is required to perform services; or (5) any other action or inaction that constitutes a material breach of this Award; provided, however, that for the Grantee to be able to resign for “Good Reason,” the Grantee must give the Company notice of the above conditions within 90 days after the condition first exists, the Company must not have not remedied the condition within 30 days after receiving written notice, and the Grantee must resign within 60 days after the Company’s failure to remedy.

		
	F.
	Committee Discretion:  The Committee may exercise discretion to reduce or increase the amount payable under this Award only prior to the occurrence of a Change in Control.  Such discretion may be exercised based on the factors the Committee deems necessary or appropriate in its sole and absolute discretion.  Notwithstanding the foregoing, the implementation of any adjustment to an Award shall be made pursuant to parameters established by the Committee prior to the Change in Control, if any.

PHH CORPORATION

By:  ____________________________________                       Name: Robert B. Crowl
Title:  President and CEO, PHH Corporation

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2018 Award Notice, Appendix A 
COMPANY PERFORMANCE CRITERIA, Listed by Organizational Segment
	
					
	PERFORMANCE CRITERIA
	WEIGHT
	LEVEL OF ACHIEVEMENT
	PAYOUT PERCENTAGE
(% OF WEIGHT)

	SERVICING

	[***]
	[TBD]%
	Maximum
	[***]
	150%

	Target
	[***]
	100%

	Threshold
	[***]
	50%

	[***]
	[TBD]%
	Maximum
	[***]
	150%

	Target
	[***]
	100%

	Threshold
	[***]
	50%

	[***]
	[TBD]%
	Maximum
	[***]
	150%

	Target
	[***]
	100%

	Threshold
	[***]
	50%

	PORTFOLIO RETENTION

	[***]
	[TBD]%
	Maximum
	[***]
	150%

	Target
	[***]
	100%

	Threshold
	[***]
	50%

	[***]
	[TBD]%
	Maximum
	[***]
	150%

	Target
	[***]
	100%

	Threshold
	[***]
	50%

	[***]
	[TBD]%
	Maximum
	[***]
	150%

	Target
	[***]
	100%

	Threshold
	[***]
	50%

	ENABLING FUNCTIONS

	[***]
	[TBD]%
	Maximum
	[***]
	150%

	Target
	[***]
	100%

	Threshold
	[***]
	50%

	[***]
	[TBD]%
	Maximum
	[***]
	150%

	Target
	[***]
	100%

	Threshold
	[***]
	50%

	INDIVIDUAL PERFORMANCE CRITERIA

	Individual performance against personal objectives (MBOs) that are separately communicated to the Grantee
	50%
	The Committee may exercise discretion to reduce or increase the amount payable.

	TOTAL WEIGHT
	      100%

The Payout Percentage for a level of achievement of a Plan Year Performance Criteria as certified by the Committee that is between the “Threshold” level and the lowest “Target” level or between the highest “Target” level and the “Maximum” level, as applicable will be determined based on straight-line interpolation.  No interpolation will occur for achievement of any Plan Year Performance Criteria in excess of the “Maximum” level.

__________________
[***] 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.

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