Document:

EXHIBIT 10.1

 

Exhibit 10.1

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY OPERATING AGREEMENT

PHH HOME LOANS, LLC

January 31, 2005

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I Definitions

	 
	 	 	 	 	 	 
	Section 1.1
	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 
	Section 1.2
	 	Interpretation	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE II General Provisions

	 
	 	 	 	 	 	 
	Section 2.1
	 	Form	 	 	14	 
	 
	 	 	 	 	 	 
	Section 2.2
	 	Company Name	 	 	14	 
	 
	 	 	 	 	 	 
	Section 2.3
	 	Registered Office; Registered Agent	 	 	15	 
	 
	 	 	 	 	 	 
	Section 2.4
	 	Place of Business	 	 	15	 
	 
	 	 	 	 	 	 
	Section 2.5
	 	Purpose; Nature of Business Permitted; Powers	 	 	15	 
	 
	 	 	 	 	 	 
	Section 2.6
	 	Business Transactions of a Member with the Company	 	 	16	 
	 
	 	 	 	 	 	 
	Section 2.7
	 	No State-Law Partnership	 	 	16	 
	 
	 	 	 	 	 	 
	Section 2.8
	 	Authorized Representatives	 	 	16	 
	 
	 	 	 	 	 	 
	Section 2.9
	 	Term	 	 	16	 
	 
	 	 	 	 	 	 
	Section 2.10
	 	D/B/As, Fictitious Names, Licenses and Regulatory Approvals	 	 	16	 
	 
	 	 	 	 	 	 
	Section 2.11
	 	Subsequent Capital Contributions	 	 	17	 
	ARTICLE III Members

	 
	 	 	 	 	 	 
	Section 3.1
	 	Members	 	 	20	 
	 
	 	 	 	 	 	 
	Section 3.2
	 	Admission of New Members	 	 	21	 
	 
	 	 	 	 	 	 
	Section 3.3
	 	Representations	 	 	21	 
	 
	 	 	 	 	 	 
	Section 3.4
	 	No Liability of Members	 	 	22	 
	 
	 	 	 	 	 	 
	Section 3.5
	 	Company Property	 	 	23	 
	 
	 	 	 	 	 	 
	Section 3.6
	 	Confidentiality	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE IV Capital Contributions

	 
	 	 	 	 	 	 
	Section 4.1
	 	Capital Structure	 	 	24	 
	 
	 	 	 	 	 	 
	Section 4.2
	 	Capital Contributions	 	 	24	 
	 
	 	 	 	 	 	 
	Section 4.3
	 	Additional Provisions Concerning Capital Contributions	 	 	24	 
	 
	 	 	 	 	 	 
	Section 4.4
	 	Capital Accounts	 	 	25	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 4.5
	 	Return of Capital Contributions	 	 	26	 
	 
	 	 	 	 	 	 
	Section 4.6
	 	Loans From Members	 	 	26	 
	 
	 	 	 	 	 	 
	ARTICLE V Allocations and Distributions

	 
	 	 	 	 	 	 
	Section 5.1
	 	Allocations of Net Income and Net Loss	 	 	26	 
	 
	 	 	 	 	 	 
	Section 5.2
	 	Adjustments and Special Allocations	 	 	27	 
	 
	 	 	 	 	 	 
	Section 5.3
	 	Net Loss Limitation	 	 	28	 
	 
	 	 	 	 	 	 
	Section 5.4
	 	Other Allocation Rules	 	 	29	 
	 
	 	 	 	 	 	 
	Section 5.5
	 	Tax Allocations; Code Section 704(c)	 	 	29	 
	 
	 	 	 	 	 	 
	Section 5.6
	 	Distributions	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE VI Management

	 
	 	 	 	 	 	 
	Section 6.1
	 	Managing Member	 	 	30	 
	 
	 	 	 	 	 	 
	Section 6.2
	 	Board of Advisors	 	 	32	 
	 
	 	 	 	 	 	 
	Section 6.3
	 	Actions Requiring Board Approval	 	 	34	 
	 
	 	 	 	 	 	 
	Section 6.4
	 	Company Resources	 	 	37	 
	 
	 	 	 	 	 	 
	Section 6.5
	 	Advisors Have No Managerial Authority	 	 	37	 
	 
	 	 	 	 	 	 
	Section 6.6
	 	Devotion of Time	 	 	37	 
	 
	 	 	 	 	 	 
	Section 6.7
	 	Officers	 	 	38	 
	 
	 	 	 	 	 	 
	Section 6.8
	 	Remuneration; Reimbursement	 	 	38	 
	 
	 	 	 	 	 	 
	Section 6.9
	 	Approval of Annual Business Plan	 	 	38	 
	 
	 	 	 	 	 	 
	Section 6.10
	 	Reports	 	 	38	 
	 
	 	 	 	 	 	 
	ARTICLE VII Changes in Law; Financial Reporting

	 
	 	 	 	 	 	 
	Section 7.1
	 	Compliance with Law; Changes in Law	 	 	39	 
	 
	 	 	 	 	 	 
	Section 7.2
	 	Consolidation	 	 	41	 
	 
	 	 	 	 	 	 
	Section 7.3
	 	Certain Actions	 	 	41	 
	 
	 	 	 	 	 	 
	ARTICLE VIII Termination of Relationship

	 
	 	 	 	 	 	 
	Section 8.1
	 	Cendant Termination Events	 	 	41	 
	 
	 	 	 	 	 	 
	Section 8.2
	 	Effects of a Cendant Termination Event	 	 	43	 
	 
	 	 	 	 	 	 
	Section 8.3
	 	PHH Termination Event	 	 	46	 
	 
	 	 	 	 	 	 
	Section 8.4
	 	Two Year Termination, Special Termination Event and 25-Year Termination	 	 	47	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 8.5
	 	Effect of Termination Events	 	 	51	 
	 
	 	 	 	 	 	 
	ARTICLE IX Dissolution and Winding Up

	 
	 	 	 	 	 	 
	Section 9.1
	 	Events Causing Dissolution	 	 	51	 
	 
	 	 	 	 	 	 
	Section 9.2
	 	Winding Up	 	 	52	 
	 
	 	 	 	 	 	 
	Section 9.3
	 	Compensation of Liquidating Trustee	 	 	53	 
	 
	 	 	 	 	 	 
	Section 9.4
	 	Distribution of Company Property and Proceeds of Sale Thereof	 	 	53	 
	 
	 	 	 	 	 	 
	Section 9.5
	 	Company Termination	 	 	54	 
	 
	 	 	 	 	 	 
	Section 9.6
	 	Final Audit	 	 	54	 
	 
	 	 	 	 	 	 
	ARTICLE X Transfers and Assignment of Interests

	 
	 	 	 	 	 	 
	Section 10.1
	 	Consent Required for Transfer	 	 	55	 
	 
	 	 	 	 	 	 
	Section 10.2
	 	Withdrawal	 	 	56	 
	 
	 	 	 	 	 	 
	ARTICLE XI Fiscal Matters; Books and Records

	 
	 	 	 	 	 	 
	Section 11.1
	 	Bank Accounts; Investments	 	 	56	 
	 
	 	 	 	 	 	 
	Section 11.2
	 	Records Required by Act; Right of Inspection	 	 	56	 
	 
	 	 	 	 	 	 
	Section 11.3
	 	Books and Records of Account	 	 	57	 
	 
	 	 	 	 	 	 
	Section 11.4
	 	Expenses	 	 	57	 
	 
	 	 	 	 	 	 
	Section 11.5
	 	Tax Returns and Information	 	 	57	 
	 
	 	 	 	 	 	 
	Section 11.6
	 	Delivery of Audited Financial Statements to Members	 	 	57	 
	 
	 	 	 	 	 	 
	Section 11.7
	 	Audits	 	 	58	 
	 
	 	 	 	 	 	 
	Section 11.8
	 	Fiscal Year	 	 	58	 
	 
	 	 	 	 	 	 
	Section 11.9
	 	Tax Elections	 	 	58	 
	 
	 	 	 	 	 	 
	Section 11.10
	 	Tax Matters Member	 	 	58	 
	 
	 	 	 	 	 	 
	ARTICLE XII Indemnification and Insurance

	 
	 	 	 	 	 	 
	Section 12.1
	 	Indemnification and Advancement of Expenses	 	 	59	 
	 
	 	 	 	 	 	 
	Section 12.2
	 	Insurance	 	 	60	 
	 
	 	 	 	 	 	 
	Section 12.3
	 	Limit on Liability of Members	 	 	61	 
	 
	 	 	 	 	 	 
	Section 12.4
	 	Indemnification by Managing Member	 	 	61	 
	 
	 	 	 	 	 	 
	Section 12.5
	 	No Additional Indemnification Rights	 	 	62	 
	 
	 	 	 	 	 	 
	ARTICLE XIII Miscellaneous Provisions

	 
	 	 	 	 	 	 
	Section 13.1
	 	Counterparts	 	 	62	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 13.2
	 	Entire Agreement	 	 	62	 
	 
	 	 	 	 	 	 
	Section 13.3
	 	Partial Invalidity	 	 	62	 
	 
	 	 	 	 	 	 
	Section 13.4
	 	Amendment	 	 	62	 
	 
	 	 	 	 	 	 
	Section 13.5
	 	Binding Effect	 	 	63	 
	 
	 	 	 	 	 	 
	Section 13.6
	 	Negotiation and Mediation	 	 	63	 
	 
	 	 	 	 	 	 
	Section 13.7
	 	Governing Law	 	 	64	 
	 
	 	 	 	 	 	 
	Section 13.8
	 	Offset	 	 	64	 
	 
	 	 	 	 	 	 
	Section 13.9
	 	Effect of Waiver or Consent	 	 	64	 
	 
	 	 	 	 	 	 
	Section 13.10
	 	Notices	 	 	64	 
	 
	 	 	 	 	 	 
	Section 13.11
	 	No Consequential Damages	 	 	66	 
	 
	 	 	 	 	 	 
	Section 13.12
	 	Most Favored Nation	 	 	66	 
	 
	 	 	 	 	 	 
	Section 13.13
	 	Impossibility of Performance	 	 	66	 

iv

 

Index of Defined Terms

	 	 	 	 	 
	 	 	Page	 
	Act
	 	 	1	 
	Additional Capital Determination
	 	 	26	 
	Adjusted Capital Account
	 	 	2	 
	Advisor
	 	 	34
	 
	Affiliate
	 	 	2	 
	Agreement
	 	 	1,2	 
	Annual Business Plan
	 	 	40	 
	Assignment
	 	 	2	 
	Authorized Representatives
	 	 	17	 
	Bankruptcy
	 	 	2	 
	Bankruptcy Event
	 	 	45	 
	Beneficial Owner
	 	 	3	 
	Board
	 	 	34	 
	Business Day
	 	 	3	 
	Capital Account
	 	 	26	 
	Capital Contribution
	 	 	3	 
	Cendant
	 	 	3	 
	Cendant Advisors
	 	 	34	 
	Cendant Designated Buyer
	 	 	45,50	 
	Cendant List
	 	 	45	 
	Cendant Member
	 	 	1	 
	Cendant Mobility
	 	 	3	 
	Cendant Mobility Offices
	 	 	3	 
	Cendant Owned Real Estate Offices
	 	 	3	 
	Cendant Put
	 	 	45	 
	Cendant Put Notice
	 	 	46	 
	Cendant Real Estate
	 	 	3	 
	Cendant Termination Event
	 	 	41	 
	Certificate of Formation
	 	 	1	 
	Change of Control
	 	 	3	 
	Closing Date
	 	 	4	 
	Code
	 	 	4	 
	Common Interest Percentage
	 	 	25	 
	Common Interests
	 	 	25	 
	Company
	 	 	1	 
	Company Expenses
	 	 	61	 
	Company Minimum Gain
	 	 	4	 

v

 

	 	 	 	 	 
	 	 	Page	 
	Company Property or Properties
	 	 	4	 
	Company Regulatory Event
	 	 	5	 
	Confidential Information
	 	 	24	 
	Contributed Property
	 	 	5	 
	Contribution Agreement
	 	 	5	 
	Contribution Date
	 	 	19	 
	Contribution Notice
	 	 	18	 
	Control
	 	 	5	 
	Controlling Person
	 	 	5	 
	Customer
	 	 	5	 
	Depreciation
	 	 	5	 
	Dispute
	 	 	67	 
	Disputing Member
	 	 	67	 
	Distributable Net Income
	 	 	6	 
	Event of Dissolution
	 	 	54	 
	Fair Market Value
	 	 	6	 
	FHA
	 	 	6	 
	Fiscal Period
	 	 	6	 
	Fiscal Quarter
	 	 	6	 
	GAAP
	 	 	6	 
	Governmental Entity
	 	 	6	 
	Gross Asset Value
	 	 	6	 
	HUD
	 	 	8	 
	HUD-Manager
	 	 	34	 
	Indemnified Parties
	 	 	63	 
	Initial Capital Contribution
	 	 	25	 
	Initial Officers
	 	 	40	 
	Initial Operating Agreement
	 	 	1	 
	Insolvency
	 	 	8	 
	Interest
	 	 	8	 
	Investor Commitments
	 	 	8	 
	Lease
	 	 	8	 
	License Agreement
	 	 	8	 
	Liquidating Trustee
	 	 	55	 
	Loan Funding Facility
	 	 	8	 
	Losses
	 	 	8	 
	LTM Net Income
	 	 	47	 
	Major Action
	 	 	36	 
	Management
Services Agreement
	 	 	8	 
	Managing Member
	 	 	9	 
	Master Sublease Agreement
	 	 	9	 
	Mediation Request
	 	 	67	 
	Member
	 	 	1,9	 

2

 

	 	 	 	 	 
	 	 	Page	 
	Member Nonrecourse Debt
	 	 	9	 
	Member Nonrecourse Debt Minimum Gain
	 	 	9	 
	Member Nonrecourse Deductions
	 	 	9	 
	Members
	 	 	1	 
	Minimum Capital Requirements
	 	 	38	 
	Mobility Interim MSA
	 	 	9	 
	Mortgage Instrument
	 	 	10	 
	Mortgage Loan
	 	 	10	 
	Mortgage Loan Disclosure
	 	 	10	 
	Mortgage Loan Documents
	 	 	10	 
	Mortgage
Loan Sale Agreement
	 	 	10	 
	Mortgage Note
	 	 	10	 
	Mortgaged Property
	 	 	10	 
	MSA
	 	 	10	 
	Net Income
	 	 	10	 
	Net Loss
	 	 	10	 
	New Member
	 	 	12	 
	Nonrecourse Deductions
	 	 	12	 
	Nonrecourse Liability
	 	 	12	 
	Non-Renewal
Notice
	 	 	53	 
	Non-Renewal
PHH Sale
	 	 	53	 
	Non-Renewal
Put
	 	 	53	 
	NRT Interim MSA
	 	 	12	 
	Origination Channels
	 	 	12	 
	Other Indemnified Parties
	 	 	65	 
	Person
	 	 	12	 
	PHH
	 	 	12	 
	PHH Advisors
	 	 	34	 
	PHH Change of Control
	 	 	13	 
	PHH Interests
	 	 	47	 
	PHH Material Breach
	 	 	44	 
	PHH Member
	 	 	1	 
	PHH Regulatory Event
	 	 	12	 
	PHH Sale
	 	 	45	 
	PHH Sale Notice
	 	 	47	 
	PHH Termination Event
	 	 	48	 
	PIMI Contributed Assets
	 	 	19	 
	PMC
	 	 	12	 
	Proceeding
	 	 	13	 
	Purchase Notice
	 	 	49	 
	Purchase Price
	 	 	49	 
	Purchase Right
	 	 	49	 
	Put Date
	 	 	46	 
	Put Price
	 	 	45	 

3

 

	 	 	 	 	 
	 	 	Page	 
	Regulatory Event Fee
	 	 	44	 
	Regulatory Order
	 	 	13	 
	Related Transaction
	 	 	33	 
	RESPA
	 	 	13	 
	Rules
	 	 	67	 
	Sale Date
	 	 	48	 
	Sale Price
	 	 	47	 
	Securities Act
	 	 	13	 
	Small Corps
	 	 	13	 
	Special Termination Event
	 	 	42	 
	Special Termination Notice
	 	 	42	 
	Special Termination Put
	 	 	53	 
	SRA
	 	 	1	 
	State Agency
	 	 	13	 
	Subsequent Capital Contributions
	 	 	19	 
	Subsidiary
	 	 	13	 
	Tax Matters Member
	 	 	62	 
	Termination Payment
	 	 	47	 
	Transaction Documents
	 	 	13	 
	Transfer
	 	 	14	 
	Treasury Regulations
	 	 	14	 
	Two Year PHH Sale
	 	 	50	 
	Two Year Put
	 	 	50	 
	Two Year Put Closing Date
	 	 	51	 
	Two Year Put Date
	 	 	50	 
	Two Year Put Price
	 	 	50	 
	Two Year Sale Date
	 	 	50	 
	Two Year Sale Price
	 	 	52	 
	Two-Year Termination Notice
	 	 	50	 
	Venture License Agreement
	 	 	14	 

4

 

This AMENDED AND RESTATED LIMITED LIABILITY COMPANY OPERATING AGREEMENT, dated as of
January 31, 2005 (this “Agreement”), of PHH Home Loans, LLC (the “Company”), a
Delaware limited liability company, is by and between PHH Broker Partner Corporation, a Maryland
corporation (the “PHH Member”), and Cendant Real Estate Services Venture Partner, Inc., a
Delaware corporation (the “Cendant Member”) and each Person (as hereinafter defined)
subsequently admitted as a member of the Company (individually, a “Member” and,
collectively, the “Members”).

W I T N E S S E T H:

WHEREAS, the PHH Member and the Cendant Member entered into a Limited Liability Company
Operating Agreement, effective as of November 3, 2004 (the “Initial Operating Agreement”)
and formed the Company pursuant to and in accordance with the Limited Liability Company Act of the
State of Delaware (the “Act”) by filing the Certificate of Formation of the Company (the
“Certificate of Formation”) in accordance with the Act;

WHEREAS, the Members desire to amend and restate the Initial Operating Agreement;

WHEREAS, the Members intend that hereafter the principal purpose of the Company shall be to
originate and sell mortgage loans sourced through Cendant’s owned residential real estate brokerage
and corporate relocations businesses and from all U.S.-based employees of Cendant and its
Subsidiaries, in accordance with the terms and provisions of this Agreement;

WHEREAS, this Agreement sets forth, among other things, the agreement among the Members as to
the governance of the affairs of the Company and the conduct of its business; and

WHEREAS, concurrently with the execution of this Agreement, Cendant Real Estate, PHH, the
Cendant Member, PMC, the PHH Member and the Company have entered into a Strategic Relationship
Agreement (as amended from time to time, the “SRA”) which sets forth certain matters
related to the business relationship among the parties thereto during the term of this Agreement.

NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants,
promises and agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Members agree as follows:

ARTICLE I

Definitions

 

 

Section 1.1      Definitions. As used in this Agreement, the following terms shall each
have the meaning set forth in this Article (unless the context otherwise requires).

“Adjusted Capital Account” means, with respect to any Member, the balance, if any, in
such Member’s Capital Account as of the end of the relevant Fiscal Period, after: (i) crediting to
such Capital Account any amounts that such Member is obligated to restore pursuant to Treasury
Regulation Section 1.704-1(b)(2)(ii)(c) (or is deemed to be obligated to restore pursuant to the
penultimate sentences of Treasury Regulation Sections 1.704-2(g)(1) and 1.704-2(i)(5)) and (ii)
debiting to such Capital Account the items described in Treasury Regulation Sections
1.704-1(b)(2)(ii)(d)(4), (5) and (6).

“Affiliate” means, when used with reference to a specific Person, any Person that,
directly or indirectly, through one or more intermediaries, controls, is controlled by or is under
common control with such specific Person. For the avoidance of doubt, neither the Company nor any
of the Brand Franchisees, as defined in the SRA, shall be deemed to be an Affiliate of Cendant or
any of Cendant’s Affiliates for any purpose hereunder or under any of the other Transaction
Documents.

“Agreement” means this Agreement, including the Schedules and Exhibits hereto, as
originally executed and as subsequently amended from time to time in accordance with the provisions
hereof.

“Assignment” shall mean a document, sufficient under the laws of the jurisdiction
where the related Mortgaged Property is located, to reflect all transfers of the applicable
Mortgage Instrument and the Mortgage Note.

“Bankruptcy” means, with respect to any Person, the happening of any one or more of
the following events: (a) such Person (or, in the case of any Person which is a partnership, any
general partner thereof): (i) makes an assignment for the benefit of creditors; (ii) files a
voluntary petition in bankruptcy; (iii) is adjudged bankrupt or insolvent, or there has been
entered against such Person (or general partner) an order for relief, in any bankruptcy or
insolvency proceeding; (iv) files a petition or answer seeking in respect of such Person (or
general partner) any reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any statute, law or regulation; (v) files an answer or other
pleading admitting or failing to contest the material allegations of a petition filed against such
Person (or such general partner) in any proceeding of a nature described above; or (vi) seeks,
consents or acquiesces in the appointment of a trustee, receiver or liquidator of such Person (or
such general partner) or of all or any substantial part of such Person’s (or such general
partner’s) properties; or (b) 120 days after the commencement of any proceeding against any such
Person (or such general partner)
seeking reorganization, arrangement, composition, readjustment,

2

 

liquidation, dissolution or
similar relief under any statute, law or regulation, if such proceeding has not been dismissed, or
within 90 days after the appointment without such Person’s (or such general partner’s) consent or
acquiescence of a trustee, receiver or liquidator of the Person (or such general partner) or of all
or any substantial part of such Person’s (or such general partner’s) properties, if such
appointment is not vacated or stayed, or within 90 days after the expiration of any such stay, if
such appointment is not vacated.

“Beneficial Owner” shall, with respect to any Person, be determined as set forth in
Rule 13d-3 of the General Rules and Regulations of the Securities Exchange Act of 1934, as in
effect on the date hereof.

“Business Day” means any day other than a Saturday, Sunday or a holiday on which
commercial banks in the State of New York are closed.

“Cendant” means Cendant Corporation, a Delaware corporation.

“Capital Contribution” means, with respect to any Member, the amount of cash and the
initial Gross Asset Value of any asset (other than cash) contributed to the capital of the Company
pursuant to Article IV hereof.

“Cendant Mobility Office” means any office comprising part of Cendant’s corporate
relocation business, including, without limitation, any office of Cendant Mobility Services
Corporation (“Cendant Mobility”) or any of its Subsidiaries, whether owned as of the date
hereof or acquired or opened hereafter by Cendant Mobility or one of its Subsidiaries.

“Cendant Owned Real Estate Office” means any residential real estate brokerage office
owned as of the date hereof or acquired or opened hereafter by Cendant Real Estate or one of its
Subsidiaries, including NRT Incorporated.

“Cendant Real Estate” means Cendant Real Estate Services Group, LLC, a Delaware
limited liability company.

“Change of Control” means, with respect to any Person, the occurrence of any event
set forth in one of the following paragraphs:

	 	(a)	 	any “person” or “group” (as such terms are used in Section
13(d)(3) of the Exchange Act) is or becomes the Beneficial Owner, directly or
indirectly, of securities of such Person representing greater than one-third
of the combined voting power of such Person’s outstanding securities;

3

 

	 	(b)	 	during any period of two consecutive years, individuals who
at the beginning of such period constituted the Board of Directors of such
Person (together with any new directors whose election or appointment by such
Board or whose nomination for election by the stockholders of such Person was
approved by a vote of not less than a majority of the directors then still in
office who were either directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any
reason to constitute at least two-thirds of the Board of Directors of such
Person;

	 
	 	(c)	 	there is consummated a merger, consolidation or similar
transaction (including a recapitalization) of such Person with any other
Person, other than a merger or consolidation immediately following which the
stockholders of such Person immediately prior thereto own in the aggregate not
less than two-thirds of the combined voting power of the entity surviving such
merger, consolidation or similar transaction or the Controlling Person
thereof; or

	 
	 	(d)	 	there is consummated a sale or disposition by such Person of
all or a substantial portion of such Person’s assets to another Person, other
than a sale or disposition immediately following which the stockholders of
such Person immediately prior thereto own in the aggregate not less than
two-thirds of the combined voting power of such other Person or the
Controlling Person thereof.

“Closing Date” means January 31, 2005.

“Code” means the Internal Revenue Code of 1986.

“Company Minimum Gain” means “partnership minimum gain” as set forth in Treasury
Regulation Sections 1.704-2(b)(2) and 1.704-2(d).

“Company Property or Properties” means all interests, properties, whether real or
personal, and rights of any type owned or held by the Company, whether owned or held by the Company
at the date of its formation or thereafter acquired.

“Company Regulatory Event” means a situation in which (i) the Company becomes subject
to any Regulatory Order, or any Governmental Entity initiates a Proceeding with respect to the
Company, and (ii) such Regulatory Order or Proceeding prevents or materially impairs the
Company’s ability to originate loans for any period of time in a manner that adversely affects the
value of one or more of the quarterly distributions to be paid by the Company pursuant to Section
5.6 of this Agreement; provided, however, that Company Regulatory Event shall not
include (1) any order,

4

 

directive or interpretation or change in law, rule or regulation, in any such case that is
applicable generally to companies engaged in the mortgage lending business such that the Company is
unable to cure the resulting circumstances described in (ii) above, or (2) any Regulatory Order or
Proceeding that results solely from acts or omissions on the part of the Cendant Entities or their
Affiliates.

“Contributed Property” means property or other consideration (other than cash)
contributed to the Company in exchange for Interests.

“Contribution Agreement” means the Contribution Agreement to be entered into by and
among the Cendant Member, the Company and the PHH Member pursuant to
Section 2.11 hereof.

“Control” shall mean, with regard to any Person, the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative with the foregoing.

“Controlling Person” means a Person who controls another Person.

“Customer” means any individual who contacts the Company, whether in person or by
mail, phone, via the Internet (including by electronic mail), or otherwise, or who is so contacted
by the Company, about the possibility of obtaining a Mortgage Loan through the Company, or who
otherwise obtains a Mortgage Loan from or through the Company.

“Depreciation” means, for each Fiscal Period, an amount equal to the depreciation,
amortization or other cost recovery deduction allowable with respect to an asset for such Fiscal
Period; provided, however, that if the Gross Asset Value of an asset differs from
its adjusted basis for federal income tax purposes at the beginning of such Fiscal Period,
Depreciation shall be an amount that bears the same ratio to such Gross Asset Value which the asset
had when its value was last adjusted, as the federal income tax depreciation, amortization or other
cost recovery deduction with respect to such asset for such Fiscal Period bears to the adjusted tax
basis which the asset had when its value was last adjusted; and provided, further,
that if the federal income tax depreciation, amortization or other cost recovery deduction for such
Fiscal Period is zero, then, subject to Section 6.3(a)(xiv), Depreciation shall be determined with
reference to such beginning Gross Asset Value using any reasonable method selected by the Managing
Member.

“Distributable Net Income” shall mean, for each Fiscal Quarter, an amount equal to the
net income of the Company and its Subsidiaries, on a consolidated basis, determined in accordance
with GAAP, less any amounts retained by the Company as

5

 

shall be necessary to meet the Minimum Capital Requirements (which requirements shall be approved by
the Board pursuant to Section 6.3).

“Fair Market Value” means the fair market value of an asset, as determined by the
Managing Member using any reasonable method of valuation, except as otherwise provided herein;
provided, however, that such fair market value shall be approved by the Board as
provided in Section 6.3(a)(xvii).

“FHA” means the Federal Housing Administration of HUD or any successor thereto.

“Fiscal Period” means the period (i) commencing (w) at the beginning of each Fiscal
Quarter, (x) the date of any acquisition of Interests by any new or existing Member in exchange for
a Capital Contribution, or (y) on each date following the effective date of any distribution to a
Member of any property as consideration for an Interest in the Company, and (ii) ending on the date
immediately preceding the first day of the next Fiscal Period; provided, that the last
Fiscal Period shall end on the date on which all assets of the Company are distributed to the
Members pursuant to Section 9.4 hereof.

“Fiscal Quarter “ means (i) the period commencing on the date of this Agreement and
ending on March 31, 2005, or (ii) any subsequent three (3) month period commencing on January 1,
April 1, July 1 and October 1 and ending on March 31, June 30, September 30 and December 31,
respectively; provided, that the last Fiscal Quarter shall end on the date on which all
assets of the Company are distributed to the Members pursuant to Section 9.4 hereof.

“GAAP” means generally accepted accounting principles in the United States.

“Governmental Entity” means any court, agency or commission or other governmental or
regulatory authority.

“Gross Asset Value” means, with respect to any asset, such asset’s adjusted basis for
federal income tax purposes, except as follows:

(i) the initial Gross Asset Value of any asset contributed by a Member to
the Company shall be the Fair Market Value of such asset;

(ii) the Gross Asset Value of all Company assets shall be adjusted to equal
their respective Fair Market Values, as of the following times: (a) the
acquisition of an additional interest in the Company by any new or existing Member
in exchange for more than a de minimis Capital

6

 

Contribution, (b) the distribution
by the Company to a Member of more
than a de minimis amount of Company assets as consideration for an interest
in the Company and (c) the liquidation of the Company, within the meaning of
Treasury Regulation Section 1.704-1(b)(2)(ii)(g); provided,
however, that, with approval of the Board pursuant to Section 6.3(a)(xiv)
hereof, adjustments pursuant to clause (ii)(a) or (ii)(b) of this definition shall
be made only if the Managing Member reasonably determines that such adjustments
are necessary or appropriate to reflect the relative economic interests of the
Members in the Company;

(iii) the Gross Asset Value of any Company asset distributed to any Member
shall be adjusted to equal the Fair Market Value of such asset on the date of such
distribution, unreduced by any liability secured by such asset; and

(iv) the Gross Asset Value of Company assets will be increased or decreased to
reflect any adjustment to the adjusted basis of such assets under Sections 734(b) or 743(b)
of the Code, but only to the extent that the adjustment is taken into account in
determining Capital Accounts under Treasury Regulation Section 1.704-1(b)(2)(iv)(m) and
paragraph (f) of the definition of Net Income and Net Loss or Section 5.2(f),
provided, however, that Gross Asset Values shall not be adjusted pursuant
to this paragraph (iv) to the extent the Managing Member determines that an adjustment
pursuant to paragraph (ii) above is necessary or appropriate in connection with a
transaction that would otherwise result in an adjustment pursuant to this paragraph (iv)
and the Board authorizes such paragraph (ii) adjustment pursuant to Section 6.3(a)(xiv)
hereof.

If the Gross Asset Value of an asset has been determined or adjusted pursuant to paragraph (i),
paragraph (ii) or paragraph (iv) above, such Gross Asset Value shall thereafter be adjusted by the
Depreciation taken into account with respect to such asset for purposes of computing Net Income and
Net Loss.

“HUD” means the United States Department of Housing and Urban Development or any
successor thereto.

“Interest” means (i) a Member’s share of Net Income (and items of income and gain) and
Net Loss (and items of loss and deduction) of the Company and a Member’s right to receive
distributions from the Company in accordance with the provisions of this Agreement and the Act and
(ii) such Member’s other rights and privileges as herein provided, including, without limitation,
voting privileges.

7

 

“Insolvency” means, when used with respect to any Person, such Person is unable to pay
its debts and obligations as they become due, or has incurred debts beyond its ability to pay such
debts as they mature.

“Investor Commitments” means any agreement, contract or arrangement pursuant to which
any Person purchases or agrees to purchase Mortgage Loans from the Company or any Subsidiary of the
Company.

“Lease” means the Bishop’s Gate Sublease, substantially in the form of
Exhibit A hereto, to be entered into between the Company and PMC on the
Contribution Date, pursuant to which the Company will lease space from PMC at 3000 Leadenhall Road,
Mt. Laurel, NJ 08054.

“License Agreement” means the Trademark License Agreement, dated as of the date of
this Agreement, between PMC and TM Acquisition Corp., Coldwell Banker Real Estate
Corporation and ERA Franchise Systems, Inc., pursuant to which PMC has been granted a license
to use the Cendant Real Estate Franchisee Brands (as defined in the SRA) in connection with its
business, on the terms set forth therein.

“Loan Funding Facility” means a credit or loan agreement or other funding arrangement,
approved by the Board pursuant to Section 6.3 hereof, pursuant to which the Company and/or its
Subsidiaries borrows money for the purpose of funding Mortgage Loan originations.

“Losses” means any and all losses, damages, disbursements, suits, claims, liabilities,
obligations, judgments, fines, penalties, charges, amounts paid in settlement, costs and expenses
(including, without limitation, reasonable attorneys’ fees and expenses), and shall specifically
include, but only for purposes of Section 12.4 hereof, any indirect, special, incidental or
consequential damages (including lost profits and lost cash distributions).

“Management Services Agreement” means the Management Services Agreement, substantially in
the form attached hereto as Exhibit B, to be entered into by the Company and PMC in accordance with
Section 2.11 of this Agreement.

“Managing Member” means the PHH Member, or such other Member as may replace the PHH
Member as Managing Member pursuant to Section 8.2 or 8.4 hereof.

“Master Sublease Agreement” means the Master Shared Office Space Agreement,
substantially in the form attached hereto as Exhibit C, to be entered into between
the Company and NRT on the Contribution Date, pursuant to which the

8

 

Company will sublease from NRT
office space utilized by field personnel of the Company who are co-located in a Cendant Owned Real
Estate Office.

“Member” means, at any time, a Person admitted as a member of the Company pursuant to
Section 3.2 hereof and listed on Schedule I hereto. If a Member Transfers its Interest or
any portion thereof to a Person who is not a Member, reference in
this Agreement to a “Member” or such Member’s Capital Account in connection with such
Transferred Interest or portion thereof shall be deemed to be a reference to the record holder of
such Transferred Interest or portion thereof for the purpose of calculating the economic interest
and Capital Account balances and adjustments represented by such Transferred Interest or portion
thereof until such record holder of such Transferred Interest or portion thereof is admitted as a
Member.

“Member Nonrecourse Debt” means “partner nonrecourse debt” as set forth in Treasury
Regulation Section 1.704-2(b)(4).

“Member Nonrecourse Debt Minimum Gain” means an amount with respect to each Member
Nonrecourse Debt, equal to the Company Minimum Gain that would result if such Member Nonrecourse
Debt were treated as a Nonrecourse Liability, determined in accordance with Treasury Regulation
Section 1.704-2(i)(3).

“Member Nonrecourse Deductions” means “partner nonrecourse deductions” as set forth in
Treasury Regulation Section 1.704-2(i)(2), and the amount of Member Nonrecourse Deductions with
respect to a Member Nonrecourse Debt for a Fiscal Period shall be determined in accordance with the
rules of Treasury Regulation Section 1.704-2(i)(2).

“Mobility
Interim MSA” means the Marketing Agreement, by and between Cendant Mobility and
PMC, dated as of January 31, 2005.

“Mortgage Instrument” means any deed of trust, security deed, mortgage, or other
instrument which constitutes a first lien or second lien on the Mortgaged Property securing payment
by a mortgagor of a Mortgage Note.

“Mortgage Loan” means a mortgage loan (including a home equity line of credit)
evidenced by one or more promissory notes and secured by a mortgage or deed of trust on one or more
residential real estate properties.

“Mortgage Loan Disclosure” shall mean any disclosure, notice or other document or
statement that, pursuant to applicable law, must be provided to a Customer by or on behalf of the
Company in connection with the origination, closing and funding of a Mortgage Loan or an
application for a Mortgage Loan.

9

 

“Mortgage Loan Documents” means the Mortgage Instruments, Mortgage Notes and
Assignments.

“Mortgage
Loan Sale Agreement” means a Mortgage Loan Sale Agreement to be entered into by
and between the Company and PMC in accordance with Section 2.11 hereof.

“Mortgage Note” means the mortgage note, deed of trust note, security deed note or
other form of promissory note executed by a mortgagor and secured by a Mortgage Instrument
evidencing the indebtedness of the mortgagor under a Mortgage Loan.

“Mortgaged Property” means the interest in real property pledged to secure a Mortgage
Note, as evidenced by one or more Mortgage Instruments.

“MSA” means the Marketing Services Agreement, dated as of the date of this
Agreement, by and between PMC and certain Subsidiaries of Cendant Real Estate.

“Net Income” and “Net Loss” shall mean, for each Fiscal Period, an amount
equal to the Company’s items of taxable income or loss for such Fiscal Period, determined in
accordance with Section 703 of the Code (for this purpose all items of income, gain, loss and
deduction required to be separately stated pursuant to Section 703(a)(1) of the Code shall be
included in taxable income or loss), with the following adjustments (without duplication):

(a) any income that is exempt from federal income tax and not otherwise taken
into account in computing Net Income or Net Loss shall be added to taxable income
or loss;

(b) any expenditures of the Company described in Section 705(a)(2)(B) or that
are treated as Section 705(a)(2)(B) expenditures pursuant to Treasury Regulation
Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Net
Income or Net Loss, shall be subtracted from such taxable income or loss;

(c) in the event that the Gross Asset Value of any Company asset is adjusted
pursuant to the definition of Gross Asset Value, the amount of such adjustment
shall be taken into account as an item of gain (if the adjustment increases the
Gross Asset Value of the asset) or an item of loss (if the adjustment decreases the
Gross Asset Value of the asset) from the disposition of such asset and shall be
taken into account for purposes of computing Net Income or Net Loss;

10

 

(d) gain or loss resulting from the disposition of property with respect to
which gain or loss is recognized for federal income tax purposes shall be computed
by reference to the Gross Asset Value of the property disposed of, notwithstanding
that the adjusted tax basis of such property differs from its Gross Asset Value;

(e) in lieu of the depreciation, amortization, and other costs recovery
deductions taken into account in computing such taxable income
or loss, there shall be taken into account Depreciation with respect to each
asset of the Company for such Fiscal Period computed in accordance with the
definition of Depreciation;

(f) to the extent an adjustment to the adjusted basis of any Company asset
pursuant to Section 734(b) or 743(b) of the Code is required pursuant to Treasury
Regulation Section 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining
Capital Accounts as a result of a distribution other than in complete liquidation
of a Member’s Interest, the amount of such adjustment shall be treated as an item
of gain (if the adjustment increases the basis of the asset) or loss (if the
adjustment decreases the basis of the asset) from the disposition of the asset and
shall be taken into account in computing Net Income or Net Loss; and

(g) notwithstanding any other provision of this definition, any items
specially allocated pursuant to Section 5.2 shall not be considered in determining
Net Income or Net Loss.

“New Member” means any Person not listed on Schedule I as of the date hereof
who has been admitted as a Member to the Company pursuant to Section 3.2 hereof.

“Nonrecourse Deductions” has the meaning set forth in Treasury Regulation Section
1.704-2(b)(1), and the amount of the Nonrecourse Deductions for a Fiscal Period shall be determined
in accordance with Treasury Regulation Section 1.704-2(c).

“Nonrecourse Liability” means a liability (or that portion of a liability) with
respect to which no Member bears the economic risk of loss as determined under Treasury Regulation
Section 1.704-2(b)(3).

“NRT Interim MSA” means the Marketing Agreement, by and between NRT Incorporated and PMC,
dated as of January 31, 2005.

“Origination Channels” has the meaning assigned to such term in the SRA.

11

 

“Person” means any individual, general partnership, limited partnership, corporation,
limited liability company, joint venture, trust, business trust, governmental agency, cooperative,
association, or other entity, and the heirs, executors, administrators, legal representatives,
successors and assigns of such person, as the context may require.

“PHH” means PHH Corporation, a Maryland corporation.

“PHH Regulatory Event” means a situation in which (i) PMC or any of its Affiliates
(other than the Company) becomes subject to any Regulatory Order, or any
Governmental Entity initiates a Proceeding with respect to PMC or any of its Affiliates (other
than the Company), and (ii) such Regulatory Order or Proceeding prevents or materially impairs the
Company’s ability to originate loans for any period of time in a manner that adversely affects the
value of one or more quarterly distributions to be paid by the Company pursuant to Section 5.6 of
this Agreement; provided, however, that PHH Regulatory Event shall not include (1)
any order, directive or interpretation or change in law, rule or regulation, in any such case that
is applicable generally to companies engaged in the mortgage lending business such that PMC or such
Affiliate or the Company is unable to cure the resulting circumstances described in (ii) above, or
(2) any Regulatory Order or Proceeding that results solely from acts or omissions on the part of
Cendant or its Affiliates.

“PMC” means PHH Mortgage Corporation, a New Jersey corporation.

“PHH Change of Control” means a Change of Control of PHH, or the Managing Member or
any other Affiliate of PHH that beneficially owns, directly or indirectly, any Interest of the
Company.

“Proceeding” means any legal, administrative, arbitral or other proceeding, claim,
action or governmental or regulatory investigation of any nature.

“Regulatory Order” means any injunction, order, judgment, decree, memorandum of
understanding, consent decree, directive or regulatory restriction, or any change in or
interpretation of any law, rule or regulation, imposed by a Governmental Entity.

“RESPA” means the Real Estate Settlement Procedures Act, 12 U.S.C. § 2601 et seq., and
the Department of Housing and Urban Development’s implementing regulation, Regulation X, 24 C.F.R.
§ 3500 et seq.

“Securities Act” means the Securities Act of 1933.

“Small Corps” means, collectively, the companies listed in Exhibit D.

12

 

“State Agency” means any agency or other Governmental Entity of any of the fifty
states of the United States or of the District of Columbia, in each case having authority to
regulate the mortgage-related activities of the Company or any of its Subsidiaries or to determine
the investment requirements with regard to mortgage loan originations performed by the Company or
any of its Subsidiaries.

“Subsidiary” means, when used with respect to any party, any corporation, partnership,
limited liability company or other organization, whether incorporated or unincorporated, which is
consolidated with such party for financial reporting purposes
under GAAP, and, when used with respect to the Company, shall include, without limitation,
those Small Corps that will become Subsidiaries of the Company following the completion of the
Subsequent Capital Contributions in accordance with Section 2.11 hereof.

“Transaction Documents” means, collectively, this Agreement, the SRA, the MSA, the
NRT Interim MSA, the Mobility Interim MSA, the License Agreement, the Venture License Agreement,
the Management Services Agreement, the Lease Agreement, the Master Sublease Agreement, the
Contribution Agreement and the Mortgage Loan Sale Agreement.

“Transfer” means any change in the record or beneficial ownership of an Interest,
whether made voluntarily or involuntarily by operation of law.

“Treasury Regulations” means the regulations promulgated by the U.S. Treasury
Department pursuant to the Code.

“Venture License Agreement” means the Trademark License Agreement, by and among TM
Acquisition Corp., Coldwell Banker Real Estate Corporation, ERA Franchise Systems, Inc. and the
Company, dated as of January 31, 2005.

Section 1.2      Interpretation. Each definition in this Agreement includes the singular
and the plural, and reference to the neuter gender includes the masculine and feminine where
appropriate. References to any statute or Treasury Regulations means such statute or regulations
as amended at the time and include any successor legislation or regulations. The headings to the
Articles and Sections are for convenience of reference and shall not affect the meaning or
interpretation of this Agreement. Except as otherwise stated, reference to Articles, Exhibits,
Sections and Schedules mean the Articles, Exhibits, Sections and Schedules of this Agreement. The
Exhibits and Schedules are hereby incorporated by reference into and shall be deemed a part of this
Agreement.

13

 

ARTICLE II

General Provisions

Section 2.1      Form. The Members hereby agree to operate the Company as a limited
liability company pursuant to the provisions of the Act and upon the terms and conditions set forth
in this Agreement. Except as expressly provided herein to the contrary, the rights and
obligations of the Members and the administration and termination of the Company shall be
governed by the Act.

Section 2.2      Company Name. The name of the Company is “PHH Home Loans, LLC” or such
other name or names as may be selected by a unanimous vote of the Members from time to time, and
its business shall be carried on in such name and in the other names
listed on Schedule 2.2
hereto, with such variations and changes thereto as the Members shall deem necessary to comply with
requirements of the jurisdictions in which the Company’s operations are conducted.

Section 2.3      Registered Office; Registered Agent. The Company shall maintain a
registered office in the State of Delaware at 2711 Centerville Road, Suite 400, in the City of
Wilmington, County of New Castle, and the name of the Company’s registered agent in the State of
Delaware is, Corporation Service Company.

Section 2.4      Place of Business. The business address of the Company is 3000 Leadenhall
Road, Mt. Laurel, New Jersey 08054, or such other place as the Members shall designate by unanimous
vote.

Section 2.5      Purpose; Nature of Business Permitted; Powers.

(a)     The Company is formed for the purposes of (1) originating Mortgage Loans that are sourced
through any Cendant Owned Real Estate Office and fulfilled through any of the Origination Channels,
(2) originating Mortgage Loans that are sourced through any Cendant Mobility Office and fulfilled
through any of the Origination Channels, (3) originating Mortgage Loans for U.S.-based employees of
Cendant and its Subsidiaries and fulfilled through any of the Origination Channels, (4) originating
Mortgage Loans sourced by any loan officer of the Company, either through any Cendant Owned Real
Estate Office or through any Cendant Mobility Office, (5) selling all Mortgage Loans originated by
the Company on a servicing-released basis on terms consistent with the provisions of Section 6.1(b)
below, and (6) any other purpose agreed to unanimously by the Members in writing. For the
avoidance of doubt, the purposes for which the Company is formed shall not include, and without the
prior unanimous written consent of all Members the Company shall not engage in, (i) originating,
purchasing or otherwise acquiring and holding Mortgage Loans for investment purposes, or (ii)
servicing
Mortgage Loans or retaining servicing rights with respect to any Mortgage Loans originated and
sold by the Company.

14

 

(b)      Subject to the other provisions of this Agreement, the Company shall possess and may
exercise all of the powers and privileges granted by the Act or by any other law or by this
Agreement, together with any powers incidental thereto, but only in so far as such powers and
privileges are necessary to the conduct, promotion or attainment of the business purposes of the
Company specified in Section 2.5(a) hereof, including, without limitation, the power:

(i)      to acquire, hold, manage, own, sell, transfer, convey, assign, exchange, license,
pledge or otherwise dispose of the Company’s interest in assets or any property held by the
Company, including, without limitation, interests in technology, intellectual property
rights and other proprietary processes, products or services;

(ii)      to establish, have, maintain or close one or more offices within or without the
State of Delaware and in connection therewith to rent or acquire office space and to engage
personnel;

(iii)      to open, maintain and close bank and brokerage accounts, including the power to
draw checks or other orders for the payment of moneys, and to invest such funds as are
temporarily not otherwise required for Company purposes;

(iv)      to bring and defend actions and proceedings at law or in equity or before any
Governmental Entity, including any State Agency;

(v)      to hire consultants, custodians, attorneys, accountants and such other agents,
officers and employees of the Company as it may deem necessary or advisable, and to
authorize each such agent and employee to act for and on behalf of the Company;

(vi)      to enter into, perform and carry out contracts and agreements of every kind
necessary or incidental to the accomplishment of the Company’s business purposes, and to
take or omit to take such other action in connection with the business of the Company as
may be necessary or desirable to further the business purposes of the Company;

(vii)      to obtain and hold any and all permits, licenses, consents, authorizations and
approvals as the Managing Member may from time to time deem necessary or appropriate for
the conduct of the business of the Company and its Subsidiaries, including, without
limitation, any such licenses and
authorizations as may be required pursuant to the rules and regulations of any State
Agency; and

15

 

(viii)      to carry on any other activities necessary or incidental to any of the
foregoing.

Section 2.6      Business Transactions of a Member with the Company. In accordance with
Section 18-107 of the Act and subject to the requirements of
Section 6.1(e) and Section 6.3 hereof,
a Member may lend money to, borrow money from, act as surety, guarantor or endorser for, guarantee
or assume one or more specific obligations of, provide collateral for, and transact other business
with, the Company and, subject to applicable law, shall have the same rights and obligations with
respect to any such matter as a Person who is not a Member.

Section 2.7      No State-Law Partnership. No provisions of this Agreement shall be deemed
or construed to constitute the Company a partnership (including, without limitation, a limited
partnership), or any Member a partner of a partnership or a partner with any other Member, for any
purpose other than, in each case, federal and state income tax purposes.

Section 2.8      Authorized Representatives. The “Authorized Representatives” of each
Member shall be those Persons appointed from time to time as Advisors by such Member in accordance
with Section 6.2 hereof. The written statements and representations of an Authorized
Representative on behalf of a Member shall be the only authorized statements and representations of
such Member with respect to the matters specifically covered by this Agreement. The term “approved
by” or “consented to by” or “consent of” or “satisfactory to” with respect to a Member means a
decision or action which has been consented to in writing by an Authorized Representative of such
Member.

Section 2.9      Term. The existence of the Company commenced on the date of the filing of
the Certificate of Formation in the Office of the Secretary of State of the State of Delaware,
and shall continue until January 31, 2055, unless earlier dissolved pursuant to the
provisions of Article IX hereof. Upon the occurrence of an Event of Dissolution, all FHA-insured
loans held by the Company shall be transferred to an approved mortgagee or lender prior to
dissolution of the Company.

Section 2.10      D/B/As, Fictitious Names, Licenses and Regulatory Approvals.

(a)      The Company and its Subsidiaries shall make all d/b/a, fictitious name and similar filings
as are listed on Schedule 2.10(a) hereto and shall obtain all licenses and regulatory
approvals in each of the fifty (50) states and in the District of Columbia as shall be necessary to
conduct its loan origination, loan sales and related operations as contemplated by this Agreement
and the other Transaction Documents in all such jurisdictions. The Cendant Member shall be
responsible for

16

 

making all such d/b/a, fictitious name and similar filings, and the PHH Member
shall be responsible for obtaining all such licenses and regulatory approvals. On the fifteenth
(15th) of February, 2005 and on the first (1st) and fifteenth
(15th) of each month thereafter, the PHH Member shall provide to the Cendant Member a
detailed report on the status of all licenses and regulatory approvals necessary to operate the
Company and its Subsidiaries.

(b)      Not more than forty-five (45) days after the PHH Member receives all of the requisite
d/b/a, fictitious name and other similar approvals for filings made by the Cendant Member in
accordance with Section 2.10(a) above in any state, the PHH Member shall cause the Company to file
with the appropriate regulatory authorities in such state all applications for the requisite
licenses and regulatory approvals with respect to the business to be conducted by the Company and
any of its Subsidiaries in such state; provided, however, that for purposes of
counting the forty-five day period herein, no such approvals shall be deemed received by the PHH
Member prior to February 15, 2005. The PHH Member shall pay to the Cendant Member a cash payment
of $50,000 per month with respect to each state for which the Company shall not have met such
forty-five (45) day deadline, with such payment being due and payable on the day of such deadline
and again every thirty (30) days thereafter until such filing has been made.

(c)      The PHH Member shall cause the Company to diligently pursue and use its reasonable best
efforts to obtain all such licenses and regulatory approvals described above not later than July
31, 2005. Without limiting the foregoing, the PHH Member shall comply in a timely manner with all
requests for information received from any State Agency (provided that the PHH Member shall not be
responsible for any failure or refusal by Cendant to provide any information so requested) and
shall cause representatives of the Company to meet in person with the requisite regulatory
authorities in any state where such authorities have so requested or where receipt of approval from
such authorities has been delayed and the Cendant Member so reasonably requests.

Section 2.11
     Subsequent Capital Contributions.

(a)      At any time after the Company shall have obtained all requisite licenses and approvals and
made all other filings necessary to enable it to operate
its business both (1) in not less than 25 states and (2) in each of those states listed on
Schedule 2.11(a) hereto or any subset thereof approved by the Cendant Member in writing,
the Cendant Member shall have the right to deliver to the PHH Member a written notice (the
“Contribution Notice”) containing the Cendant Member’s election to cause the Subsequent
Capital Contributions (as defined below) to occur. The Parties shall consummate the transactions
constituting the Subsequent Capital Contributions on the date specified by the Cendant Member in
the Contribution Notice, which date (the

17

 

“Contribution Date”) shall be no earlier than the
seventh (7th) day following the date of delivery of such notice to the PHH Member. On
the Contribution Date, the Parties shall take the following actions:

(i)      the PHH Member shall contribute, or cause to be contributed, to the Company, (A)
substantially all of the assets constituting the businesses of each of the companies
constituting the Small Corps (with the form of the transaction in which such transfer shall
occur being determined pursuant to subparagraph (b) below), and (B) those separately
identifiable assets that comprise part of PMC’s “phone-in, move-in” origination channel and
that will be utilized by the Company and its employees in the operation of its loan
origination business (as identified and scheduled by the Parties in accordance with
subparagraph (b) below) (the “PIMI Contributed Assets”);

(ii)      the Cendant Member shall contribute, or cause to be contributed, to the Company
(A) the right to use those tradenames and marks specified in the Venture License
Agreement, on a royalty-free basis and otherwise on the terms set forth in such
agreement, and (B) an amount of cash determined in accordance with subparagraph (b) below;

(iii)      the parties shall execute the Contribution Agreement, the Management
Services Agreement, the Mortgage Loan Sale Agreement, the Lease and the Master Sublease
Agreement;

(iv)      the PHH Member shall cause the Company to offer employment to (A) such employees
of PMC as shall be reasonably necessary to enable the Company to perform its obligations
pursuant to the terms of the SRA, and (B) all of the employees of the Small Corps
(other than those Small Corps that will become Subsidiaries of the Company upon being
contributed to the Company); and

(v)     the PHH Member shall cause the Company
to sponsor and maintain its own employee benefit plans (including,
but not limited to welfare benefit plans and tax-qualified pension
and retirement plans) for the benefit of the employees of the Company
and its Subsidiaries.

The actions contemplated by subparagraphs (i) through (v) above are referred to herein as
the “Subsequent Capital Contributions.”

(b)     As soon as practicable after the date of this Agreement, in preparation for the Subsequent
Capital Contributions, the Parties shall cooperate in good faith to do each of the following as
promptly as practicable following the date hereof and

18

 

in any event within such time as shall be
necessary to enable the Subsequent Capital Contributions to occur by mid-year 2005:

(i)      Determine the form of the transaction (merger, asset transfer, transfer of
equity interests or other) pursuant to which the businesses of the Small Corps will be
contributed to the Company (including, among other things, determining the consents and
approvals and d/b/a and other filings, qualifications and notices required
to be obtained or made in connection with such transaction and the expected timing
thereof), it being understood that the final determination regarding the form of such
transaction shall be made by the Cendant Member in its sole discretion, and that the
Parties will work together with a view toward structuring the contributions so that the
loans originated by the Small Corps whose businesses will be combined directly with the
Company’s (rather than becoming Subsidiaries of the Company) will constitute not less than
15% of all loans originated directly by the Company;

(ii)      Obtain all such consents and approvals and make all such d/b/a and other
filings, qualifications and notices as shall be necessary to complete the
contribution of the businesses of the Small Corps to the Company pursuant to the form of
transaction determined in accordance with subparagraph (b)(i) above;

(iii)      Prepare detailed and complete schedules identifying all of the PIMI Contributed
Assets, all of the employees of PMC and its Subsidiaries who will be offered
employment with the Company on the Contribution Date, and, if the form of transaction
determined pursuant to subparagraph (i) above contemplates one or more asset
transfer transactions, all of the assets, contracts and other rights constituting
the businesses of the applicable Small Corps to be contributed to the Company
pursuant to such transactions;

(iv)      Obtain valuations (which in the case of subclauses (A) and (C) below shall be
performed by an unaffiliated third party selected by the Cendant Member) for (A) the
businesses of the Small Corps to be contributed to the Company pursuant to Section
2.11(a)(i)(A) above, (B) the PIMI Contributed Assets to be contributed to the
Company pursuant to Section 2.11(a)(i)(B) above, and (C) the Venture Trademark License to
be contributed to the Company pursuant to Section 2.11(a)(ii)(A) (it being understood that
the amount of cash to be
contributed to the Company by the Cendant Member pursuant to Section 2.11(a)(ii)(B)
shall equal the difference between the total of the amounts determined pursuant to
subclauses (A) and (B) above and the amount determined pursuant to subclause (C)
above), and finalize Schedule II to this Agreement to reflect the updated Gross
Asset Values for such assets based upon such valuations;

19

 

(v)      Prepare all agreements, instruments and other documents necessary or appropriate
to effect the transactions constituting the Subsequent Capital Contributions (including
without limitation a Contribution Agreement), which agreements shall include provisions
for, among other things, (A) customary representations from the PHH Member with respect to
the assets to be contributed by it to the Company, the consents and approvals necessary to
effect such contributions, compliance with law and other regulatory matters with respect to
the businesses of the Small Corps and employee matters with respect to the period prior
to the Contribution Date, and (B) indemnification of the Company by the PHH Member with
respect to Losses arising out of or resulting from any matter, circumstance or event
occurring prior to the Contribution Date with respect to or affecting the business,
assets or employees of the Small Corps contributed by or on behalf of the PHH
Member; and

(vi)      Prepare a Mortgage Loan Sale Agreement having terms consistent with
Section 6.1(b) of this Agreement.

(c)      Prior to making the Subsequent Capital Contributions contemplated by subparagraph
(a) above, if the form of transaction involves any of the companies comprising the Small Corps
being merged into the Company or being contributed to the Company and becoming a Subsidiary of
the Company as a result thereof, the PHH Member shall (i) settle and eliminate all
intercompany accounts receivable, accounts payable or other arrangements and obligations between
PHH or any of its Subsidiaries, on the one hand, and each such company, on the other, (ii)
cause all of the ownership interests in Landover Mortgage LLC held by any such company to be
distributed by such company to PMC, and (iii) in the case of any such company that will become
a Subsidiary of the Company following the contribution, convert such company to a limited liability
company pursuant to a transaction acceptable in form and substance to tax counsel for the Cendant
Member prior to the Contribution Date.

(d)     The PHH Member and its Affiliates (other than the Company and any of the Small Corps
(or any successor thereto) that is merged into the Company or contributed as a Subsidiary
of the Company) shall bear and pay all costs and expenses (including Taxes) associated with the
contribution of the businesses of the Small Corps contemplated by Section 2.11(a) hereof, all of
the transactions contemplated by Section 2.11(c) hereof, and obtaining the consents and approvals
required in connection with the contribution of the Small Corps contemplated by Section 2.11(b)(ii)
above. Each
Member shall bear and pay its own costs in connection with the other transactions contemplated
by this Section 2.11.

ARTICLE III

Members

20

 

Section 3.1      Members. The Company shall consist of the Members executing this
Agreement and any New Members admitted to the Company by the Members in accordance with terms
hereof. The Members of the Company, together with the Common Interest Percentages and
addresses of such Members, are listed on Schedule I of this Agreement. As of the date
hereof, there are no other Members of the Company and no other Person has any right to take part in
the ownership or share in the profits of the Company. The Managing Member shall have the
authority, without the consent of the Members, but subject to the limitations contained in Article
VI hereof and otherwise in accordance with the terms of this Agreement, to amend Schedule I
in connection with any Transfer or other change in ownership of Interests permitted hereunder and
to reflect (a) the admission of any New Member, (b) the removal, expulsion, retirement or death of
any Member, in each case, in accordance with the terms of this Agreement and (c) any change in the
Interests of any Member effected in accordance with the terms of this Agreement (including Section
4.3 or 10.1 hereof). No Person shall be deemed to be a Member unless such Person has executed and
delivered to the Company a copy of this Agreement. Each New Member shall be deemed to have
a fully executed copy of this Agreement if such Member is delivered a copy of this Agreement which
(a) has been executed by such Member and (b) is countersigned on the same page by an authorized
officer of the Company.

Section 3.2      Admission of New Members. New Members of the Company may only be added if
the addition of any such proposed New Member is approved, prior to such admission, by the unanimous
consent of all Members and if such proposed New Member executes this Agreement and makes the
representations and warranties set forth in Section 3.3 hereof. Notwithstanding the foregoing, a
Person that (a) is an Affiliate of a Member and to whom such Member has Transferred all or
any portion of its Interest in accordance with Section 10.1 hereof or (b) is a transferee of
all or a portion of the Cendant Member’s Interest as permitted by Section 10.1 hereof shall be
admitted as a New Member without the consent of the other Members, provided that such New Member
executes this Agreement and makes the representations and warranties set forth in Section 3.3
hereof.

Section 3.3      Representations. Each Member hereby represents and warrants to the
Company as follows:

(a)      Such Member is a corporation, limited liability company, partnership or business trust
duly organized, validly existing and in good standing under the laws of its jurisdiction of
incorporation or organization. Such Member has full right, power and authority to execute and
deliver this Agreement and to perform each of its obligations hereunder.

(b)      All necessary action, corporate or otherwise, on the part of such Member necessary to
authorize the execution and delivery by such Member

21

 

of this Agreement and the performance by such
Member of its obligations hereunder has been taken, and no further action on the part of such
Member is necessary for such authorization. This Agreement has been duly authorized, executed and
delivered by such Member and (assuming due authorization, execution and delivery by the other
Members), constitutes a legal, valid and binding obligation of such Member enforceable against such
Member in accordance with its terms.

(c)     Except as otherwise set forth in or contemplated by this Agreement with respect to the
Company, no consent, approval or authorization of, or filing or registration with, any governmental
or regulatory authority or any other Person (other than such as have been obtained or made by such
Member) is required to be made or obtained by such Member in connection with the execution,
delivery and performance of this Agreement and the consummation of the transactions contemplated by
this Agreement.

(d)      Neither the execution and delivery of this Agreement by such Member nor the consummation
by such Member of the transactions contemplated hereby, nor compliance by such Member with any of
the terms or provisions hereof, will (i) conflict with or result in a breach of any provision of
the certificate of incorporation, by-laws or similar governing documents of such Member or (ii)
assuming the consents, permits, authorizations, approvals, filings and registrations previously
disclosed in writing by such Member to the other Members are obtained or made (x) violate any
statute, code, ordinance, rule, regulation, judgment, order, write, decree or injunction applicable
to such Member or any of its properties or assets or (y) violate, conflict with, result in a breach
of any provisions of, constitute a default (or an event which, with notice or lapse of time, or
both, would constitute a default) under, result in the termination of, accelerate the performance
required by, or result in a right of termination or acceleration or the creation of any encumbrance
upon any of the properties or assets of such Member under, any of the terms, conditions or
provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or
other instrument or obligation to which such Member is a party, or by which its properties or
assets may be bound or affected, except, in the case of clause (ii), for such violations,
conflicts, breaches or defaults which, either individually or
in the aggregate, would not prevent or materially hinder or delay such Member’s ability to
consummate the transactions contemplated hereby or perform its obligations hereunder.

Section 3.4      No Liability of Members. All debts, obligations and liabilities of the
Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and
liabilities of the Company, and no Member shall be obligated personally for any such debt,
obligation or liability of the Company solely by reason of being a Member.

22

 

Section 3.5      Company Property. No real or other property of the Company shall be
deemed to be owned by any Member individually but shall be owned by and title shall be vested
solely in the Company. The Interests of the Members in the Company shall constitute personal
property.

Section 3.6      Confidentiality.

(a)      Each Member agrees not to disclose, communicate, use to the detriment of the Company or
for the benefit of any other Person, or misuse in any way, any confidential information or trade
secrets of the Company or any Subsidiary or any other Member or its Affiliates, including personnel
information, secret processes, know-how, customer lists, formulas or other technical data
(“Confidential Information”), except as may be required by law; provided,
however, that (i) this prohibition shall not apply to (x) any information which, through no
improper action of such Member, is publicly available or generally known in the industry or (y) any
information which is disclosed upon the approval of all of the Members and (ii) such information
may be disclosed to the extent required by law, legal process or applicable stock exchange rule.
Each Member acknowledges and agrees that any information or data such Member has acquired on any of
these matters or items were received in confidence and as fiduciary of the Company.

(b)     It is agreed between the parties that the Company would be irreparably damaged by reason
of any violation of the provisions of this Section 3.6 and that any remedy at law for a breach of
such provisions would be inadequate. Therefore, the Company shall be entitled to seek and obtain
injunctive or other equitable relief (including, but not limited to, a temporary restraining order,
a temporary injunction or a permanent injunction) against any Member, such Member’s agents, assigns
or successors for a breach or threatened breach of such provisions and without the necessity of
proving actual
monetary loss. It is expressly understood among the parties that this injunctive or other
equitable relief shall not be the Company’s exclusive remedy for any breach of this Section 3.6 and
that the Company shall be entitled to seek any other relief or remedy that it may have by contract,
statute, law or otherwise for any breach hereof, and it is agreed that the Company shall also be
entitled to recover its attorneys’ fees and expenses in any successful action or suit against any
Member relating to any such breach. It is also expressly agreed that any Member shall have the
right to enforce this Section 3.6 on behalf of the Company against the other Members.

(c)      Notwithstanding the foregoing, the participation or involvement of any Member in the
Company shall not confer upon the Company or otherwise entitle the Company or any other Member
thereof to use or otherwise disclose in connection with the Company and its business and affairs
the name of such Member without such Member’s prior consent.

23

 

(d)     Except as otherwise agreed by the Members, in the event of a PHH Change of Control or
anticipated PHH Change of Control, the PHH Member shall implement reasonable internal access
controls and other restrictions on the use and disclosure of Confidential Information to prevent
any directors, officers, employees, agents, consultants or contractors of a third party from having
access to such Confidential Information.

ARTICLE IV

Capital Contributions

Section 4.1      Capital Structure. The capital structure of the Company shall consist of
one class of Interests (“Common Interests”). Except as otherwise set forth herein, each of
the Common Interests shall be identical.

Section 4.2      Capital Contributions.

(a)     Each Member has contributed, as an initial capital contribution (“Initial Capital
Contribution”) to the Company, the amount set forth opposite such Member’s name on Schedule
I hereto, and hereby agrees to contribute, in accordance with the provisions of Section 2.11 of
this Agreement, all of its right, title and interest (whether now held or hereafter acquired) in
and to the assets described in Section 2.11(a) hereto having the estimated Gross Asset Values as
are reflected on Schedule II hereto (with
the final Gross Asset Values for such assets to be determined for purposes of this Agreement
in accordance with Section 2.11).

(b)      In exchange for the Initial Capital Contributions, each Member has received an Interest in
the Company in proportion to the Interest percentage (“Common Interest Percentage”) set
forth opposite the name of such Member on Schedule I hereto.

Section 4.3      Additional Provisions Concerning Capital Contributions.

(a)     Capital Contributions. Other than as set forth in Section 4.2, no Member shall be
permitted to make additional Capital Contributions to the Company except upon the prior written
approval of all the other Members; provided, however, that notwithstanding anything
to the contrary contained herein, in the event of an Additional Capital Determination (as defined
below), then additional Capital Contributions shall be made by each Member in an amount equal to
the product of (x) the Additional Capital Amount with respect to such Additional Capital
Determination and (y) such Member’s Common Interest Percentage. An “Additional Capital
Determination” shall mean a determination made by the Managing Member (which determination, if

24

 

made, shall be immediately notified in writing to the Board), and approved by the Board pursuant to
Section 6.3, that the Company requires additional Capital Contributions from the Members to satisfy
the Minimum Capital Requirements, as defined in Section 6.3(a)(xviii) herein. The “Additional
Capital Amount” with respect to any Additional Capital Determination shall mean the aggregate
additional Capital Contributions required from all Members in connection therewith, as approved by
the Board pursuant to Section 6.3.

(b)     Interest. Interest, if any, earned on funds contributed or held by the Company
shall inure to the benefit of the Company; the Members shall not be entitled to receive interest or
any other payments from the Company with respect to their Capital Contributions or Capital
Accounts.

Section 4.4      Capital Accounts.

(a)     In accordance with Treasury Regulation Section 1.704-1(b)(2)(iv), a capital account (a
“Capital Account”) shall be established and maintained for each Member throughout the full
term of the Company. A Member’s Capital Account (i) shall be increased by (A) the amount of cash
and the Fair Market Value of property (other than cash) contributed by such Member and (B) such
Member’s allocable share of the Company’s Net Income (and items of income and gain) for each
Fiscal Period; and (ii) shall be decreased by (A) the amount of cash and the Fair Market Value
of property (other than cash) distributed to such Member and (B) such Member’s allocable share of
the Company’s Net Loss (and items of deduction and loss) for each Fiscal Period.

(b)     In addition to the adjustments specified by Section 4.4(a), each Member’s Capital Account
shall also be adjusted for any other increases or decreases that are made to Capital Accounts
pursuant to Section 704(b) of the Code and Treasury Regulation Section 1.704-1(b)(2)(iv).

(c)      In the event any Interest or portion thereof is transferred in accordance with the terms
of this Agreement, the transferee shall succeed to the Capital Account or ratable portion thereof
of the transferor to the extent such Capital Account relates to the Interest or portion thereof so
transferred, except to the extent provided in Treasury Regulation Section 1.704-1(b)(2)(iv)(m).

(d)     It is the intention of the Members that Capital Accounts shall be maintained in accordance
with Section 704(b) of the Code and with the Treasury Regulations promulgated thereunder so that
the allocations of items of income, gain, loss, deduction and credit provided herein have
substantial economic effect thereunder.

(e)      Except as may be required by the provisions of the Act or to the extent of any withdrawal
of capital in contravention of this Agreement or any

25

 

distribution in contravention of this
Agreement, at no time during the term of the Company or upon dissolution and liquidation thereof
shall a Member with a negative balance in his Capital Account have any obligation to the Company or
the other Members to restore such negative balance, and such negative balance shall not be treated
as an asset of the Company. Notwithstanding whether a Member has a positive or a negative balance
in its Capital Account, a Member shall be obligated to restore to the Company the amount of any
withdrawal of capital in contravention of this Agreement or any distribution in contravention of
this Agreement.

Section 4.5      Return of Capital Contributions. Except as otherwise provided herein or
in the Act, no Member shall have the right to withdraw, or receive any return of, all or any
portion of such Member’s Capital Contribution.

Section 4.6      Loans From Members. Loans by a Member to the Company shall not be
considered Capital Contributions. If any Member shall advance funds to the Company in excess of
the amounts contributed by such Member to the capital of the Company, the making of such
advances shall not result in any increase in the amount of the Capital Account of such Member.
The amounts of any such advances shall be a debt of the Company to such Member and shall be
payable or collectible only out of the Company assets in accordance with the terms and conditions
upon which such advances are made. The repayment of loans from a Member to the Company upon
liquidation shall be subject to the order of priority set forth in Section 9.4 hereof.
Notwithstanding anything to the contrary in this Agreement, any Loan by a Member to the Company
shall be subject to the provisions of Section 6.1(e) and shall be on arm’s-length market terms.

ARTICLE V

Allocations and Distributions

Section 5.1      Allocations of Net Income and Net Loss. This Section 5.1 sets forth the
rules for both the book allocations of Net Income (and items of income and gain) and Net Loss (and
items of loss and deduction), to reflect the economic arrangements of the Members and, subject to
Section 5.5, for the tax allocations for United States federal income tax purposes, pursuant to
Section 704 of the Code and the Treasury Regulations promulgated thereunder.

(a)     Except as otherwise provided in this Article V, Net Loss shall be allocated among the
Members with respect to each Fiscal Period as of the end of such Fiscal Period pro rata based upon
their respective Common Interest Percentages.

26

 

(b)      Except as otherwise provided in this Article V, Net Income shall be allocated among the
Members with respect to each Fiscal Period as of the end of such Fiscal Period pro rata based upon
their respective Common Interest Percentages.

Section 5.2      Adjustments and Special Allocations.

The following special allocations shall be made in the following order and prior to any other
allocations under this Agreement:

(a)     Minimum Gain Chargeback. Notwithstanding any other provision of this Article V
and except as otherwise provided in Treasury Regulation Section 1.704-2(f), if there is a net
decrease in Company Minimum Gain during any Fiscal Period of the Company, each Member shall be
specially allocated items of Company income and gain for such Fiscal Period (and, if necessary,
subsequent Fiscal Periods) in an amount equal to such Member’s share of the net decrease in Company
Minimum Gain, as determined under Treasury Regulation Section 1.704-2(g). Allocations pursuant to
the previous sentence shall be made in proportion to the respective amounts required to be
allocated to each Member pursuant thereto. The items to be so allocated shall be determined in
accordance with Treasury Regulation Sections 1.704-2(f)(6) and (j)(2). This Section 5.2(a) is
intended to comply with the minimum gain chargeback requirement in such Treasury Regulation Section
1.704-2(f) and shall be interpreted consistently therewith.

(b)     Member Minimum Gain Chargeback. Notwithstanding any other provision of this
Article V, if there is a net decrease in Member Nonrecourse Debt Minimum Gain attributable to a
Member Nonrecourse Debt, then, each Member who has a share of the Member Nonrecourse Debt Minimum
Gain attributable to such Member Nonrecourse Debt, determined in accordance with Treasury
Regulation Section 1.704-2(i), shall be specially allocated items of Company income and gain for
such Fiscal Period (and, if necessary, subsequent Fiscal Periods) in an amount equal to such
Member’s share of the net decrease in Member Nonrecourse Debt Minimum Gain attributable to such
Member Nonrecourse Debt, determined in accordance with Treasury Regulation Section 1.704-2(i)(4).
Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts
required to be allocated to each Member pursuant thereto. The items to be allocated shall be
determined in accordance with Treasury Regulation Sections 1.704-2(i)(4) and (j)(2). This Section
5.2(b) is intended to comply with the minimum gain chargeback requirement in Treasury Regulation
Section 1.704-2(i)(4) and shall be interpreted consistently therewith.

(c)     Qualified Income Offset. Pursuant to Treasury Regulation Section
1.704-1(b)(2)(ii)(d), in the event any Member unexpectedly receives any adjustments, allocations,
or distributions described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6),
items of Company income and gain shall be specially

27

 

allocated to such Member in an amount and
manner sufficient to eliminate, to the extent required by the Treasury Regulations, any Adjusted
Capital Account Deficit as quickly as possible, provided that an allocation pursuant to this
Section 5.2(c) shall be made only if and to the extent that such Member would have an Adjusted
Capital Account Deficit after all other allocations provided for in this Section have been
tentatively made as if this Section 5.2(c) were not in the Agreement. This Section 5.2(c) is
intended to satisfy the provisions of Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be
interpreted consistent therewith.

(d)     Nonrecourse Deductions. Nonrecourse Deductions for any Fiscal Period shall be
allocated among the Members in accordance with their respective Common Interest Percentage.

(e)     Member Nonrecourse Deductions. Any Member Nonrecourse Deductions for any Fiscal
Period of the Company or portion thereof shall be allocated to the Member who bears the economic
risk of loss with respect to the Member
Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable, in accordance
with Treasury Regulation Section 1.704-2(i)(1).

(f)     Section 754 Adjustments. To the extent an adjustment to the adjusted tax basis of
any Company asset is required pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m) (2) or
(4) to be taken into account in determining Capital Accounts, the amount of such adjustment to the
Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the
asset) or loss (if the adjustment decreases such basis), and such gain or loss shall be allocated
to the Members in a manner consistent with the manner in which their Capital Accounts are required
to be adjusted pursuant to such sections of the Treasury Regulations.

Section 5.3      Net Loss Limitation.

Notwithstanding the provisions of Section 5.1(a), the Net Losses (or items of deduction or
loss) allocated pursuant to Section 5.1(a) hereof shall not exceed the maximum amount of Net Losses
(or items of deduction or loss) that can be so allocated without causing any Member to have an
Adjusted Capital Account Deficit at the end of any Fiscal Period. In the event that some but not
all Members would have Adjusted Capital Account Deficits as a consequence of the allocation of Net
Losses (or items of deduction or loss) pursuant to Section 5.1 hereof, the limitation set forth in
this Section 5.3 shall be applied on a Member by Member basis and Net Losses (or items of deduction
or loss) not allocable to any Member as a result of such limitation shall be allocated to the other
Members in accordance with the respective positive balances in such Members’ Capital Accounts so as
to allocate the maximum permissible Net Losses (or items of deduction or loss) to each Member under
Treasury Regulation Section 1.704-1(b)(2)(ii)(d).

28

 

Section 5.4      Other Allocation Rules.

(a)      For purposes of determining the Net Income, Net Loss or other items allocable to any
Fiscal Period, subject to approval by the Board pursuant to Section 6.3(a)(xiv) hereof, Net Income,
Net Losses and such other items shall be determined on a daily, monthly or other basis as
determined by the Managing Member using any permissible method under Section 706 of the Code and
the Treasury Regulations thereunder. Without limiting the generality of the foregoing, the
Managing Member shall, subject to approval by the Board pursuant to Section 6.3(a)(xiv), allocate
items of Net Income (and items of income or gain) and Net Loss (and items of deduction or loss)
between a Member and any Person who has acquired an Interest in the Company from such
Member (including as a result of the provisions of Article VIII) using any permissible method
under Section 706 of the Code and the Treasury Regulations thereunder.

(b)     “Excess nonrecourse liabilities” of the Company, within the meaning of Treasury Regulation
Section 1.752-3(a)(3), shall, subject to Section 6.3(a)(xiv) hereof, be allocated to the Members in
any permissible method as determined by the Managing Member.

Section 5.5      Tax Allocations; Code Section 704(c).

(a)      Except as otherwise provided for in this Agreement, each item of income, gain, loss,
deduction and credit shall be allocated among the Members in the same manner for U.S. federal
income tax purposes as the correlative item of book income, gain, loss, deduction and credit is
allocated pursuant to Sections 5.1, 5.2, 5.3 and 5.4. In addition, in accordance with Code Section
704(c) and the Treasury Regulations thereunder, items of income, gain, loss, deduction and credit
with respect to any property contributed to the capital of the Company shall, solely for U.S.
federal income tax purposes, be allocated among the Members so as to take account of any variation
between the adjusted tax basis of such property at the time of contribution to the Company for U.S.
federal income tax purposes and its initial Gross Asset Value at the time of contribution using the
“traditional method” as set forth in Treasury Regulation Section 1.704-3(b).

(b)      In the event the Gross Asset Value of any Company asset is adjusted in accordance with the
definition of Gross Asset Value hereof, subsequent allocations of items of income, gain, loss and
deduction with respect to such asset shall take account of any variation between the adjusted tax
basis of such asset for U.S. federal income tax purposes and its adjusted Gross Asset Value in a
manner consistent with the principles of Code Section 704(c) and the Treasury Regulations
promulgated thereunder.

29

 

(c)      Any elections or other decisions relating to such allocations shall, subject to Section
6.3(a)(xiv) hereof, be made by the Managing Member in any manner that reasonably reflects the
purpose and intention of this Agreement. Allocations pursuant to this Section are solely for
purposes of U.S. federal, state, and local income taxes and shall not affect, or in any way be
taken into account in computing, any Members’ Capital Account or share of Net Income (or items of
income or gain) or Net Loss (or items of loss or deduction), other items, or distributions pursuant
to any provision of this Agreement.

Section 5.6      Distributions.

Within thirty (30) days following the completion of each Fiscal Quarter, the Managing Member
shall cause the Company to distribute to all Members an amount equal to the Distributable Net
Income for such Fiscal Quarter pro rata based upon their respective Common Interest
Percentages.

ARTICLE VI

Management

Section 6.1      Managing Member.

(a)     General. The PHH Member shall be the Managing Member of the Company, and shall
manage the Company in accordance with this Agreement. The actions of the Managing Member taken in
such capacity and in accordance with this Agreement shall bind the Company.

(b)      Powers and Duties. Except for circumstances in which the approval of the Board is
required by this Agreement pursuant to Section 6.3, the Managing Member shall have full, exclusive
and complete discretion to manage the business and affairs of the Company in the ordinary course.
Notwithstanding the foregoing, the Managing Member covenants and agrees to manage the business and
affairs of the Company in accordance with the following terms and provisions:

(i)     The Managing Member shall manage the business and affairs of the Company only in a
manner consistent with and in furtherance of the purposes set forth in Section 2.5(a) of
this Agreement. The Managing Member shall not cause or permit the Company or any of its
Subsidiaries to engage in any business or activity other than that permitted to be
conducted by the Company or any of its Subsidiaries pursuant to Section 2.5(a) of this
Agreement, or take or fail to take any action that would prevent or preclude the Company
from carrying on its business as contemplated in this Agreement.

30

 

(ii)     The Managing Member shall cause the Company and its Subsidiaries to sell any and
all Mortgage Loans it originates as promptly as practicable, but in
no event earlier than three (3) Business Days following the closing and
funding of such Mortgage Loan, and at no time shall the Managing Member cause or permit the
Company or any of its Subsidiaries to hold any Mortgage Loans for investment purposes (it
being the Members’ intent that at least 15% of the total number of all loans originated by
the Company be sold to unaffiliated Persons pursuant to Investor Commitments or other sale
arrangements entered into on terms consistent with the provisions of Section 6.1(b)(iii)
below).

(iii)     In connection with any sales of Mortgage Loans by the Company or any Subsidiary
of the Company, whether to the Managing Member or any of its Affiliates or to
Persons that are not Affiliates of any Member, the Managing Member shall cause the Company
or such Subsidiary to sell such Mortgage Loans only on arm’s-length terms pursuant to
industry-standard loan sale documentation and on industry-standard terms for best efforts
execution inclusive for servicing released sales.

Such duties may be delegated by the Managing Member to such officers, agents or employees of the
Company as the Managing Member may deem appropriate from time to time.

(c)      Fiduciary Duties of Managing Member. The Managing Member, in the performance of
its duties as such, shall owe to the Members duties of loyalty and due care of the type owed by the
general partner of a limited partnership to its limited partners under the laws of the State of
Delaware.

(d)     Compliance with Transaction Documents. Without limiting the provisions of Section
6.1(b), the Managing Member shall cause the Company to operate its business at all times in a
manner consistent with the SRA, this Agreement and all the other Transaction Documents.

(e)     Transactions With Affiliates. Any transactions between the Company, on the one
hand, and the Managing Member or any Affiliate thereof, on the other hand (any such transaction, a
“Related Transaction”), including without limitation any arrangements for sale of Mortgage
Loans (including the Mortgage Loan Sale Agreement), shall be approved by the Board in accordance
with Section 6.3 prior to the time that the Company engages or agrees or commits to engage in any
such Related Transaction. Notwithstanding the fact that the terms of a Related Transaction have
been previously approved by the Board, the Managing Member shall not permit the Company to enter
into a Related Transaction unless the transaction is entered into on an arm’s length basis on terms
no less favorable to the Company than the terms that the Company could obtain from an independent
third party.

31

 

(f)     Status of Managing Member. The Managing Member shall be the sole “manager” (as
that term is used in the Act) of the Company. Neither the Advisors nor the officers of the
Company, in such capacity, shall be “managers.” No Person who is not also a Member may be appointed
or serve as the Managing Member.

(g)      Reliance by Third Parties. Third parties dealing with the Company may rely
conclusively upon any certificate of the Managing Member to the effect that it (or its designee) is
acting on behalf of the Company. Subject to the provisions
of this Agreement, the signature of an authorized officer of the Managing Member shall be
sufficient to bind the Company in every manner to any agreement or on any document.

(h)      HUD Manager. Notwithstanding any other provisions of this Agreement, however, for
the purposes of complying with the regulations of the HUD only, a separate person shall be
designated by the Managing Member (upon prior written consent of the Cendant Member) as the
HUD-Manager, who will have as his/her principal activity the management of the Company as
it relates to the origination of FHA-insured mortgages and shall have exclusive authority to deal
with HUD/FHA on behalf of the Company (the “HUD-Manager”). If the HUD-Manager withdraws or
is removed, a new HUD-Manager shall be designated by the Managing Member, and HUD shall be notified
of the change. Upon admission of any new Member, such new Member shall be deemed to agree that the
HUD-Manager shall have exclusive authority to deal with HUD/FHA on behalf of the Company.

Section 6.2      Board of Advisors.

(a)     Establishment. There is hereby established a committee (the “Board”)
comprised of natural persons (the “Advisors”), whose primary purpose shall be to provide a
means for the Cendant Member to exercise its approval rights over certain actions of the Company,
as set forth in Section 6.3 below.

(b)     Number of Advisors. The authorized number of Advisors shall be five (5) and the
Board shall be designated as set forth in paragraphs (c) and (d) below. No Member may appoint any
Advisor except as expressly set forth in paragraphs (c) and (d) below.

(c)      Appointment by the PHH Member. The PHH Member shall have the right to designate
(and to remove and/or designate successive replacements for) three (3) Advisors (“PHH
Advisors”). Each PHH Advisor shall have one (1) vote with respect to any matter to be voted on
by the Board. The initial PHH Advisors shall be Donna Van Osten, Marshall Gayden and Robert
Groody.

32

 

(d)     Appointment by Cendant. The Cendant Member shall have the right to designate
(and to remove and/or designate successive replacements for) two (2) Advisors (“Cendant
Advisors”). Each Cendant Advisor shall have one (1) vote with respect to any matter to be
voted on by the Board. The initial Cendant Advisors shall be Dave Weaving and Judy Reeves.

(e)     Term of Office. Once designated, an Advisor shall continue in office until such
Advisor’s removal in accordance with this Agreement or such Advisor’s earlier death or resignation.
Any Advisor may resign at any time by giving written notice to that effect to the Board and the
Managing Member. Any such resignation shall take effect at the time of the receipt of that notice
or any later effective time specified in that notice, and, unless otherwise specified in that
notice, the acceptance of the resignation shall not be necessary to make it effective.

(f)     Meetings of the Board. The Board shall meet regularly at least once each Fiscal
Quarter, at such time and at such place as the Board may designate. Special meetings of the Board
shall be held on the call of any Advisor upon at least five (5) Business Days (if the meeting is to
be held in person) or two (2) Business Days (if the meeting is held by telephone communications)
notice to each of the other Advisors, or upon such shorter notice as may be approved by the
Advisors (including at least one PHH Advisor and at least one Cendant Advisor), and such notice may
be delivered personally or by telephone, electronic mail, facsimile transmission, United States
mail or courier to each Advisor at his or her business or residence address, provided that notice
shall be deemed given when actually delivered to the Advisor. Any Advisor may waive such notice as
to himself or herself.

(g)     Conduct of Meeting. Any meeting of the Advisors may be held in person or
telephonically.

(h)     Quorum. A majority of the Advisors which have been designated and who are then in
office shall constitute a quorum of the Board for purposes of conducting business, provided
that such quorum shall include at least one Cendant Advisor, and provided further
that proper notice of such meeting was delivered pursuant to paragraph (f) above.

(i)     Voting. The effectiveness of any vote, consent or other action of the Board in
respect of any matter set forth in Section 6.3 shall require a majority vote of the entire Board
(at least three Advisors voting in favor of such consent or other action), provided that
such majority must include the affirmative vote of at least one Cendant Advisor. No Advisor shall
be disqualified from voting on, or shall be required to recuse himself or herself from the
consideration of or voting on, any matter by reason of such Advisor’s or any related Person’s
interest in such matter (it being understood that in approving or disapproving any matter an
Advisor may act to protect

33

 

the interests of such
Advisor or related Person, as the Managing Member, a Member, or in any other capacity), so
long as such Advisor discloses such interest to, or such interest is reasonably apparent to, the
other Advisors. Only the Advisors in attendance at (or participating by telephone in) any meeting
of the Board may vote on any matter as to which a vote is taken during such meeting, and no Advisor
may vote by proxy, absentee ballot or any other means.

(j)     Action Without Meeting. Any action required or permitted to be taken at any
meeting of the Board may be taken without a meeting if all of the Advisors consent thereto in
writing, and such writing is filed with the minutes of proceedings of the Board.

Section 6.3     Actions Requiring Board Approval.

(a)     It is hereby understood and agreed by the Members that (x) the Company shall not take, nor
shall the Managing Member and/or any officer of the Company cause the Company to take, nor shall
the Company authorize or permit any of its Subsidiaries to take, any of the following actions (in
each case, the taking of which shall be hereinafter referred to as a “Major Action”)
without first obtaining approval thereof by the Board in accordance with Section 6.2, in each case:

(i)     Accounting. (a) Except as otherwise may be mandated by GAAP, change any
of the accounting principles or practices used by the Company or (b) change the independent
auditors of the Company;

(ii)     Acquisitions and Dispositions. Other than as specifically contemplated
by this Agreement or any other Transaction Document or the then-current Annual Business
Plan approved in accordance with Section 6.9 of this Agreement, (a)(1) purchase or acquire
any assets or property (including real property or capital stock of a business) or (2) make
any capital expenditures in excess of $100,000, or (b) sell, option, convey, exchange,
lease (as lessor), license or otherwise dispose of or transfer any portion of or any
interest in any property of the Company, other than sales of Mortgage Loans made in
accordance with Section 6.1(b)(iii);

(iii)     Advisors. Employ accountants, legal counsel, investment bankers or
other experts, other than those currently used by PHH or Cendant, to perform services for
the Company;

(iv)     Bankruptcy. Make, execute or deliver on behalf of the Company an
assignment for the benefit of creditors; or cause the Company, or any part thereof or
interest therein to be subject to the authority of any trustee,
custodian or receiver or to be subject to any proceeding for bankruptcy,

34

 

insolvency,
reorganization, arrangement, readjustment of debt, relief of debtors, dissolution or
liquidation, or similar proceedings with respect to the Company;

(v)     Distributions or Capital Returns. Declare, set aside, or pay any dividend
or make any distribution of assets (whether in cash, securities, property, or any
combination thereof), or return to a Member any amount of its Capital Contribution, except,
in each case, as expressly provided herein;

(vi)     Indebtedness. Obligate the Company, any Subsidiary of the Company or any
Member as a surety, guarantor, or accommodation party to any obligation; incur any
indebtedness for borrowed money (other than pursuant to the Loan Funding Facility and trade
payables incurred in the ordinary course of business); or impose upon any Member any
personal liability in respect of any indebtedness of the Company, except as and to the
extent agreed in writing by such Member;

(vii)     Issuances or Repurchases of Interests. (a) sell or issue, or enter into
any agreement to sell or issue, to any Person any Interest in the Company or option or
other right to acquire any Interest or any other equity interest or quasi equity interest
in the Company; (b) repurchase any Interest or any other equity interest in the Company, in
each case other than as specifically contemplated by this Agreement; or (c) admit any
Person as a Member;

(viii)     Joint Ventures. Enter into any joint venture, joint operating or
similar arrangement;

(ix)     Judgments. (1) Confess a judgment against the Company, or settle or
adjust any claims against the Company, resulting in either (A) the payment or transfer of
consideration of more than $150,000 for a single judgment or claim or more than $500,000 in
the aggregate during any 12-month period, (B) any material or significant restriction on
the ability of the Company to conduct its business as contemplated by this Agreement and
the other Transaction Documents, or (C) that otherwise causes a significant change in the
business operations of the Company; or (2) commence any legal action or proceeding
involving the Company where the amount exceeds $300,000;

(x)     Liens or Encumbrances. Grant any lien or encumbrance on any property of
the Company (other than the interest of any lessor in property leased by the Company as
lessee under a capitalized lease or operating lease entered into in accordance with this
Agreement), other than as specifically contemplated by this Agreement or the Loan Funding
Facility;

35

 

(xi)     Material Contracts. Enter into any new contract, or modify any existing
contract, if such contract is a Transaction Document or is otherwise material to the
business, results of operations or financial condition of the Company and its Subsidiaries
taken as a whole;

(xii)     Related Transactions. Enter into, modify or amend the terms of in any
material manner, make any material waiver on behalf of the Company under, or terminate any
Related Transaction, including any Transaction Document to which the Company, on the one
hand, and PHH or any of its Subsidiaries (other than the Company), on the other, are
parties;

(xiii)     Mergers. Directly or indirectly, by operation of law or otherwise,
merge with, consolidate with, acquire all or substantially all of the assets or capital
stock of, or otherwise combine with, any Person, other than as specifically contemplated by
this Agreement;

(xiv)     Tax Matters. Take any action to the extent that this Agreement
provides that such action is subject to the provisions of this Section 6.3(a)(xiv), make
any election under the Code and other relevant tax laws as to the status of the Company,
the treatment of items of income, gain, loss, deduction and expense, and as to all other
relevant matters, including, without limitation, elections referred to in Section 754 of
the Code, determine which items of cash outlay are to be capitalized or treated as current
expenses, or select the method of accounting and bookkeeping procedures to be used by the
Company;

(xv)     Annual Business Plan. Approve each Annual Business Plan and any material
changes thereto or deviations therefrom;

(xvi)     Chief
Executive Officer. Appointment of the president and/or chief executive officer of
the Company;

(xvii)     Fair Market Value. Make any determination of Fair Market Value required
to be made under this Agreement;

(xviii)     Minimum Capital Requirements. Make any final Additional Capital
Determination or any determination regarding the respective Additional Capital Amounts
required to be made by Members in connection therewith; or approve the amount of cash or
cash equivalents that should be retained by the Company in order to meet minimum regulatory
capital and reserve requirements imposed by any Governmental Entity, whether in connection
with retaining the licenses and registrations necessary for the Company to originate
Mortgage Loans or otherwise, or by any creditor of the

36

 

Company or
any of its Subsidiaries, including any lender under the Loan Funding Facility (the
“Minimum Capital Requirements”);

(xix)     Liquidating Trustee. The appointment of a Liquidating Trustee that is a
Person other than the Managing Member; or

(xx)     Agree to do any of the foregoing.

The Managing Member shall cause the governing documents of each of the Company’s Subsidiaries
to provide that such Subsidiary must obtain the approval of the Company, as outlined pursuant to
this Section 6.3, prior to taking any action set forth in this Section 6.3.

Section 6.4     Company Resources. Except as specifically provided in this Agreement or any other
Transaction Document, or with the prior approval of the Board, the Company shall not pay to or use
for the benefit of any Member, funds, assets, credit or other resources of any kind or description
of the Company. Funds of the Company shall be deposited only in the accounts of the Company in the
Company’s name, shall not be commingled with funds of any Member, and shall be withdrawn only upon
such signature or signatures as may be designated in writing from time to time by the Managing
Member.

Section 6.5     Advisors Have No Managerial Authority.

(a)     Neither the Board nor the Advisors (individually or together with one or more other
Advisors) shall have power to direct or participate in the management of the Company;
provided, however, that nothing contained in this Section 6.5(a) shall adversely
affect or impair the authority and obligations of the Board and the Advisors pursuant to Sections
6.2 and 6.3 hereof.

(b)     The Advisors (acting in their individual capacity as such) shall owe no fiduciary or other
duties to the Company or any Member.

(c)     Unless expressly and duly authorized in writing to do so by the Managing Member and the
Board, no other Member and no Advisor shall have any power or authority to bind or act on behalf of
the Company in any way, to pledge its credit, or to render it liable for any purpose.

Section 6.6     Devotion of Time. The Advisors (in their capacity as Advisors) shall not be obligated
to devote all of their time or business efforts to the affairs of the Company, and shall devote
such time, effort, and skill as they deem appropriate for the execution of their duties and
responsibilities under this Agreement.

37

 

Section 6.7     Officers. The initial executive officers of the Company shall be the individuals set
forth in Schedule 6.7 hereto (the “Initial Officers”). Successors to the Initial
Officers, and such other executive officers as may be necessary to conduct the business of the
Company, shall be chosen by the Managing Member, subject to the approval of the Board if required
pursuant to Section 6.3 hereof.

Section 6.8     Remuneration; Reimbursement. Neither the Managing Member nor any Advisor or officer
shall be entitled to remuneration in its capacity as such.

Section 6.9     Approval of Annual Business Plan. Not less than seventy-five (75) days prior to the
end of each fiscal year, the Managing Member shall submit to the Board the business plan of
operations for the Company for the upcoming fiscal year, which shall contain detailed budget,
planning, projection and profitability information (the “Annual Business Plan”). Each
Annual Business Plan shall be subject to approval of the Board in accordance with Section 6.3.

Section 6.10     Reports.

(a)     No later than the sixth (6th) Business Day following the end of each calendar
month, the PHH Member shall, in its capacity as Managing Member on an outsourced basis, deliver to
the Cendant Member:

(i)     those surveys and reports listed and described in Schedule 6.10(a)(i)
hereto to verify compliance with the covenant contained in Section 6.1(d); and

(ii)     a copy of (a) the balance sheet of the Company as of the end of the month, (b) an
income statement of the Company for such month, and (c) reports reflecting other financial
and statistical information with respect to the Company, prepared substantially in the form
of the report set forth in Schedule 6.10(a)(ii).

(b)     No later than the tenth (10th) Business Day following the end of each calendar
month, the PHH Member shall, in its capacity as Managing Member on an outsourced basis, deliver to
the Cendant Member such forward-looking financial information about the Company and the Company’s
operations as the Cendant Member may reasonably request (i.e., that is capable of being obtained,
produced, or generated without undue effort by the Company and the Managing Member) from time to
time (the “Monthly Forecasts”). The Managing Member shall (i) provide the Monthly
Forecasts to the Cendant Member in the format requested by the Cendant Member and on a timely basis
and (ii) make members of its management and the Company’s management reasonably available for
discussion relating to such Monthly Forecasts. The Managing

38

 

Member acknowledges that the Cendant
Member and any Affiliate thereof may use the Monthly Forecasts for the purpose of developing
projections of the Company’s future financial performance and may include such projections in
reports and other documents filed with Governmental Entities, and as such, the Managing Member
represents and warrants to Cendant that the Managing Member shall prepare the Monthly Forecasts in
good faith and shall use its reasonable best efforts to ensure that the Monthly Forecasts provide
the most accurate estimate of the Company’s future results.

(c)     No later than the tenth (10th) Business Day following the completion of each
Fiscal Quarter, the PHH Member shall, in its capacity as Managing Member on an outsourced basis,
deliver to the Cendant Member all statements, reports and other documents reasonably requested by
the Cendant Member that may be necessary or appropriate for the Cendant Member or any Controlling
Person thereof (including, without limitation, Cendant) to satisfy all its reporting requirements
pursuant to the Securities Exchange Act of 1934.

(d)     The Managing Member shall cause the Company to deliver to the Cendant Member the financial
reports and other information described in Sections 11.5 and 11.6 hereof.

ARTICLE VII

Changes in Law; Financial Reporting

Section 7.1     Compliance with Law; Changes in Law.

(a)     The Members shall use commercially reasonable efforts to ensure that the Company’s
business and operations comply at all times with all applicable laws, including RESPA.

(b)     In the event that, as a result of any change in law, rule or regulation or interpretation
thereof after the date hereof, as set forth in a written document
by a Governmental Entity of competent jurisdiction, (i) any term or provision of this
Agreement or any of the other Transaction Documents, in the written opinion of
nationally-recognized counsel of either party, is not compliant in any material respect with any
applicable law, including RESPA, or (ii) the financial terms of this Agreement and the
other Transaction Documents, taken as a whole, become materially inconsistent with the then-current
market, the Members shall use commercially reasonable efforts to restructure the business and
operations of the Company and amend the relevant provisions of this Agreement and the other
Transaction Documents to the extent necessary to achieve as closely as possible the intention of
the parties with respect to the economics of the relationships provided for in this Agreement and
the other Transaction Documents in a manner that complies with such law, and, in the case of a
change in law, rule or regulation described in (ii) above, the Cendant Member shall have the right,
by

39

 

providing written notice to the PHH Member, to cause PMC and the PHH Member to enter into good
faith discussions to renegotiate the economic terms provided for in this Agreement and the other
Transaction Documents. In the event the Members fail to reach agreement regarding any such
restructuring and renegotiation on terms that are reasonably satisfactory to the Cendant Member
within thirty (30) days following the date on which written notice is provided by the Cendant
Member, the existing financial terms shall remain in full force and effect; provided,
however, that in such case the Cendant Member may elect to solicit from the PHH Member and
from other Persons a request for proposals for the provision of mortgage services substantially
similar to those provided for in this Agreement and the other Transaction Documents. In the event
that any proposal received by the Cendant Member contains financial and other terms that, taken as
a whole, are reasonably determined by the Cendant Member to be superior to those set forth in the
PHH Member’s proposal, and the Cendant Member notifies the PHH Member of its intent to accept such
proposal, the PHH Member shall have thirty (30) days from the date of such notification to review
and determine whether to accept all of the terms of such proposal, so long as such proposal
complies with all applicable laws and regulations (it being understood that the Cendant Member
shall have no obligation to accept any proposal at all). In the event that the PHH Member agrees
to the terms of such proposal within such thirty (30) day period, such terms shall be incorporated
into this Agreement and the other Transaction Documents effective as of a date not later than ten
(10) days following such agreement. In the event the PHH Member fails to accept the terms of such
proposal, then the Cendant Member, at its option, shall have the
right to terminate its relationship as set forth in this Agreement
by providing written notice (the “Special Termination Notice”) to the PHH Member and
through completion of the transaction contemplated by
Section 8.4(b) (a “Special Termination
Event”). In the event that the proposal submitted by the PHH Member is selected by the Cendant
Member, the terms of such proposal shall be incorporated into this Agreement and the other
Transaction Documents effective as of a date not later than 20 days following the Cendant Member’s
selection of such proposal.

(c)     If any change in law, rule or regulation described in (b) above involves a change in RESPA
that would permit Cendant or an Affiliate of Cendant to be paid directly for loan referrals to the
Company, then in lieu of the provisions described in (b) above, the Members shall revise the
structure and terms of this Agreement and the other Transaction Documents so that, in lieu of the
distributions provided for in this Agreement, the Company shall pay a fee to the Cendant Member in
respect of each Mortgage Loan referred to the Company by Cendant or an Affiliate of Cendant in an
amount not less than, at Cendant’s option, (i) 10 basis points over the average return to the
Cendant Member with respect to its interest in the Company, computed as basis points per loan, over
the immediately preceding six Quarterly Periods and (ii) the price the Cendant Member could obtain
in the then-current market on substantially similar terms, based upon a survey of the market by
Cendant and PMC with the highest and lowest bids being discounted.

40

 

Section 7.2     Consolidation.

(a)     The PHH Member hereby represents and warrants to the Cendant Member that the Company will
be consolidated on the books of PHH for financial reporting purposes, and that PHH has undertaken
and completed prior to date hereof all analyses and investigations as shall be necessary and
appropriate to support such position.

(b)     The Members shall use commercially reasonable efforts to take all such actions as shall be
necessary to ensure that the Company is consolidated on the books of PHH for financial reporting
purposes. Without limiting the foregoing, in the event that, as a result of a change or
interpretation in United States generally accepted accounting principles after the date hereof, the
Company is required to be consolidated on the balance sheet of Cendant, the Members shall use
commercially reasonable efforts to make such changes to the business relationship between the
parties and to the provisions of this Agreement as are requested by the Cendant Member to mitigate
the effects to Cendant of such change.

Section 7.3     Certain Actions.

The Managing Member shall (i) promptly notify the Cendant Member in writing of any claim or
action, or any inquiry or investigation that could result in a claim or action, initiated by any
Person (including any Governmental Entity) that, if adversely resolved, would result in a material
or significant restriction on the ability of the Company
to conduct its business as contemplated by this Agreement and the other Transaction Documents,
or that would otherwise cause a significant change in the business operations of the Company, and
(ii) keep the Cendant Member actively involved in the settlement or other resolution of any such
claim, action, inquiry or investigation; provided, however, that such claim,
action, inquiry or investigation shall not be settled or adjusted, and the Company shall not
confess a judgment against it in connection therewith, without the approval of the Board pursuant
to Section 6.3 hereof.

ARTICLE VIII

Termination of Relationship

Section 8.1     Cendant Termination Events. For purposes of this Agreement, “Cendant Termination
Event” means the occurrence of any of the following events:

41

 

(a)     A PHH Regulatory Event occurs and is continuing for a period of six consecutive months or
more; provided, however, that the PHH Member may elect to defer a termination
pursuant to this Section 8.1(a) for up to six (6) additional one-month periods following the time
that such termination event shall have first occurred if, no later than the second Business Day
prior to the commencement of each such additional one-month period the PHH Member pays the Cendant
Member in cash, by wire transfer of immediately available funds to an account designated in writing
by the Cendant Member, one million dollars ($1,000,000) (the “Regulatory Event Fee”);

(b)     A Company Regulatory Event occurs and is continuing for a period of six consecutive months
or more; provided, however, that the PHH Member may elect to defer a termination
pursuant to this Section 8.1(b) for up to six (6) additional one-month periods following the time
that such termination event shall have first occurred if, no later than the second Business Day
prior to the commencement of each such additional one-month period the PHH Member pays the Cendant
Member in cash, by wire transfer of immediately available funds to an account designated in writing
by the Cendant Member, an amount equal to the Regulatory Event Fee;

(c)     There is a material violation or breach by the PHH Member (acting in any capacity
whatsoever, including as Managing Member) of any representation, warranty, covenant or other
agreement contained in this Agreement or any other Transaction Document (a “PHH Material
Breach”), which violation or breach is not cured by the PHH Member or the other relevant PHH
party, in a manner reasonably satisfactory to the Cendant Member, within thirty (30) days after
written notice relating to such PHH Material Breach has been delivered by the Cendant Member to the
PHH Member;

(d)     The Company fails to make a distribution for any Fiscal Quarter in accordance with the
provisions of Section 5.6 hereof within ten (10) Business Days after the date on which the Cendant
Member first provides notice to the Company of such failure; provided, however,
that any payment of a distribution to the Cendant Member after the due date provided for under
Section 5.6 shall include interest from the due date through the payment date at the prime rate;

(e)     (i) The occurrence of a PHH Change of Control involving any entity on the Cendant List
attached hereto as Schedule 8.1(e) or any other entity that directly or indirectly conducts
or engages in any business covered by the non-competition provisions set forth in Article X of the
SRA. The Cendant List shall contain up to ten companies and may be refreshed by the Cendant Member
no more frequently than once every two years beginning from the date of this Agreement;
provided, however, that if any Person on the Cendant List enters into a merger,
consolidation or similar business combination transaction with another Person on the Cendant List,
then Cendant may add another Person to the Cendant List to replace such Person within sixty (60)
days after the

42

 

announcement of such transaction, and such addition shall not constitute a
refreshing of the Cendant List as discussed above;

(f)     The occurrence of any event or circumstance constituting Insolvency or Bankruptcy with
respect to PHH or PMC (a “Bankruptcy Event”); or

(g)     The occurrence of any act or omission by PHH or any of its Subsidiaries that causes or
would reasonably be expected to cause material harm to the reputation of Cendant or any of its
Subsidiaries.

Section 8.2     Effects of a Cendant Termination Event. Upon the occurrence of a Cendant Termination
Event during the term of the Company, the Cendant Member shall have the right to either (i) cause
PMC or the PHH Member to purchase (the “Cendant Put”) all of the Interests then held by the
Cendant Member or any of its Affiliates or (ii) cause the PHH Member to sell (the “PHH
Sale”) all of the Interests then held by the PHH Member or any of its Affiliates to a Person
not affiliated with Cendant (any such Person, for purposes of this Section 8.2, the “Cendant
Designated Buyer”).

(a)     Cendant Put.

(i)     The exercise price of the Cendant Put (the “Put Price”) shall be an amount
equal to the sum of (A) the then-current Capital Account balance of the Cendant Member plus
the then-current Capital Account balance of any other Affiliate of Cendant holding an
Interest, in each case, as of the Put Date plus (B) the aggregate amount of all past due
quarterly distributions to the Cendant
Member and to any other Affiliate of Cendant and any unpaid distribution in respect of
the most recently completed Fiscal Quarter pursuant to Section 5.6 hereof, in each case as
of the Put Date, plus (C) liquidated damages in an amount equal to the Termination Payment
(as defined below), calculated as of the Put Date, plus (D) an amount equal to 49.9% of the
Net Income, if any, realized by the Company at any time after the end of the Fiscal Quarter
most recently completed as of the Put Date attributable to Mortgage Loans in process at any
time prior to the Put Date. In the event that the Cendant Member elects to exercise the
Cendant Put, the Cendant Member shall provide written notice (the “Cendant Put
Notice”) to the PHH Member. The Cendant Put Notice shall set forth the Cendant
Member’s calculation of the Put Price and the basis for such calculation. Any disagreement
regarding the Put Price or any other matter related to the exercise of the Cendant Put
shall be resolved in accordance with the provisions of Section 13.6 hereof. In the event
that the Cendant Member elects to exercise the Cendant Put, the PHH Member and the Cendant
Member shall, and shall cause their respective Affiliates to, cooperate as fully as
reasonably practicable with one another to consummate the Cendant Put transaction as soon
as reasonably practicable following the receipt of the Cendant Put Notice by the

43

 

PHH
Member. Concurrently with the consummation of the Cendant Put transaction, the PHH Member
shall pay or cause to be paid the Put Price to the Cendant Member in cash by wire transfer
of immediately available funds to an account or accounts designated in writing by the
Cendant Member. The “Put Date” shall be the date on which the Cendant Put is
consummated.

(ii)     Upon the consummation of a Cendant Put, (A) all of the other Transaction
Documents shall automatically terminate (except as otherwise provided in any such
Transaction Document), (B) neither the Cendant Member nor any Affiliate thereof shall be
subject to any restriction under this Agreement or any other Transaction Document to pursue
a partnership, joint venture or other arrangement with any third party mortgage operation,
and (C) the PHH Member shall, and shall cause the Company to, cause all loan officers
employed by PMC or any of its Subsidiaries (including the Company) that are located in any
of Cendant’s Owned Real Estate Offices to vacate those offices promptly following the
Cendant Member’s request.

(iii)     “Termination Payment” means an amount equal to (A) the product of (x)
two (2) and (y) the actual Net Income of the Company for the trailing twelve months
(“LTM Net Income”), plus (B) all costs reasonably incurred by Cendant in unwinding
its relationship with PHH pursuant to this Agreement and the other Transaction Documents
and transitioning to a new mortgage venture partner; provided, however,
that in the case of a Cendant Termination Event pursuant to a PHH Change in Control, in
calculating the Termination Payment, the LTM Net Income shall instead be multiplied by the
number of years (including fractions thereof) remaining until the tenth (10th)
anniversary of the Closing Date;
provided further, however, that if such PHH Change in Control
termination occurs on or after the eighth (8th) anniversary of the Closing Date,
the LTM Net Income shall be multiplied by two (2).

(b)     PHH Sale.

(i)     If the Cendant Member elects to cause the PHH Sale, it shall deliver written
notice (the “PHH Sale Notice”) to the PHH Member. The Cendant Member shall provide
written notice to the PHH Member of the identity of the Cendant Designated Buyer as
promptly as reasonably practicable after delivery of the PHH Sale Notice.

(ii)     The sale price (the “Sale Price”) of the Interests then held by the PHH
Member and any of its Affiliates (the “PHH Interests”) to the Cendant Designated
Buyer shall be an amount equal to the sum of (A) the fair value of the Interests of the PHH
Member and any Affiliate thereof as of the date that the PHH Sale Notice is delivered,
which value shall be determined by

44

 

multiplying the PHH Member’s then-current proportionate
membership interest by the Company’s EBITDA for the trailing twelve months, multiplied by a
then-current average market EBITDA multiple for mortgage banking companies, plus (B) the
aggregate amount of all past due quarterly distributions to the PHH Member and any
Affiliate thereof and any unpaid distribution in respect of the most recently completed
Fiscal Quarter pursuant to Section 5.6 hereof, plus (C) an amount equal to 50.1% of the Net
Income realized by the Company at any time after the end of the Fiscal Quarter most
recently completed as of the Sale Date attributable to Mortgage Loans in process prior to
the Sale Date. The PHH Sale Notice shall set forth the Cendant Member’s calculation of the
Sale Price and the basis for such calculation. Any disagreement regarding the Sale Price
or any other matter related to the PHH Sale shall be resolved in accordance with the
provisions of Section 13.6 hereof.

(iii)     If the Cendant Member delivers a PHH Sale Notice, then promptly thereafter the
Cendant Member and the PHH Member shall work together to effect the sale by the PHH Member
and its Affiliates of the PHH Interests to the Cendant Designated Buyer, and the PHH Member
shall use its reasonable best efforts to complete such sale as promptly as practicable
thereafter. The PHH Member shall cooperate with and assist the Cendant Member and the
Cendant Designated Buyer in obtaining all consents and approvals of, making all filings and
registrations with and providing all notices to, such Governmental Entities or third
parties as shall be necessary or advisable to consummate such sale. At the time agreed upon
for the closing of the PHH Sale (the “Sale Date”), (i) the Cendant Designated Buyer
shall pay to the PHH Member (and/or, as directed by the PHH Member, to any of its
Affiliates) the Sale Price, by wire transfer of immediately available funds, in
consideration for the PHH Interests, and (ii) the
PHH Member shall pay to the Cendant Member liquidated damages in an amount equal to
the Termination Payment as of the Sale Date.

(iv)     Upon consummation of the PHH Sale, (A) the other Transaction Documents (except as
otherwise provided in any such Transaction Document) shall automatically terminate, (B)
neither Cendant nor any Affiliate thereof shall be subject to any restriction under this
Agreement or any other Transaction Document to pursue a partnership, joint venture or
another arrangement with any third party mortgage operation, (C) the PHH Member shall cause
all loan officers employed by PMC or any of its Subsidiaries that are located in any of
Cendant’s Owned Real Estate Offices to vacate those offices promptly following the Cendant
Member’s request, and (D) the Cendant Designated Buyer or an Affiliate thereof shall become
a Member and the sole Managing Member of the Company. The PHH Member shall, and shall cause
its Affiliates to, execute any agreement or document necessary to effectuate the provisions
of this paragraph (iv).

45

 

Section 8.3     PHH Termination Event.

For purposes of this Agreement, a “PHH Termination Event” means the occurrence of any
of the following events: (i) a material violation or breach by Cendant or any Subsidiary thereof of
any material covenant, agreement or obligation set forth in this Agreement or any other Transaction
Document, which violation or breach is not cured and is continuing within sixty (60) days following
written notice to the Cendant Member; provided, however, that the PHH Member shall
have no right pursuant to this Section 8.3 or otherwise to terminate this Agreement as a result of
a breach by any Affiliate of Cendant of the covenant set forth in Section 3.13(b) of the SRA; or
(ii) the Bankruptcy of Cendant.

(a)     In the event that a PHH Termination Event shall have occurred, the PHH Member shall have
the right to purchase (the “Purchase Right”) all of the Interests then held by the Cendant
Member and any of its Affiliates. The exercise price of the Purchase Right (the “Purchase
Price”) shall be an amount equal to the sum of (i) the fair value of the Interests then held by
the Cendant Member and by any of its Affiliates as of the date that the Purchase Right is
exercised, which value shall be determined by multiplying the Cendant Member’s then-current
proportionate membership interest by the Company’s EBITDA for the trailing twelve months,
multiplied by a then-current average market EBITDA multiple for mortgage banking companies, plus
(ii) the aggregate amount of all past due quarterly distributions to the Cendant Member and any
Affiliate thereof and any unpaid distribution in respect of the most recently completed Fiscal
Quarter pursuant to Section 5.6 hereof, plus (iii) an amount equal to 49.9% of the Net Income
realized by the Company at any time after the end of the Fiscal Quarter most recently completed as
of the
date of purchase attributable to Mortgage Loans in process at any time prior to completion of
the Purchase Right transaction. The Purchase Right shall remain exercisable for a period of two
(2) months following the occurrence of a PHH Termination Event. In the event that the PHH Member
elects to exercise the Purchase Right, the PHH Member shall provide written notice (the
“Purchase Notice”) to the Cendant Member prior to the expiration of such two-month period.
The Purchase Notice shall set forth the PHH Member’s calculation of the Purchase Price and the
basis for such calculation. Any disagreement regarding the Purchase Price or any other matter
related to the exercise of the Purchase Right shall be resolved in accordance with the provisions
of Section 13.6 hereof. In the event that the PHH Member elects to exercise the Purchase Right,
the PHH Member and the Cendant Member shall, and shall cause their respective Affiliates to,
cooperate as fully as reasonably practicable with one another to consummate the Purchase Right
transaction; provided, however, that the Purchase Right transaction shall not be
consummated earlier than the one-year anniversary of delivery of the Purchase Notice. Concurrently
with the consummation of the Purchase Right transaction, the PHH Member shall pay or cause to be
paid the Purchase Price to the Cendant Member in cash by wire transfer of immediately available
funds to an account or accounts designated in writing by the Cendant Member.

46

 

(b)     Upon consummation of the Purchase Right transaction, (i) all other Transaction Documents
shall automatically terminate (except as otherwise provided in any such Transaction Document), (ii)
neither the Cendant Member nor any Affiliate thereof shall be subject to any restriction under this
Agreement or any other Transaction Document to pursue a partnership, joint venture or another
arrangement with any third party mortgage operation and (iii) the PHH Member shall, and shall cause
the Company to, cause all loan officers employed by PMC or any of its Subsidiaries (including the
Company) that are located in any of Cendant’s Owned Real Estate Offices to vacate those offices
promptly following the Cendant Member’s request.

(c)     The PHH Member’s sole remedy hereunder or under any other Transaction Document with
respect to a breach of the covenant set forth in Section 3.13(b) of the SRA shall be the right to
receive from the Cendant Entities liquidated damages in an amount equal to the aggregate amount of
all documented out-of-pocket costs actually incurred and paid by the PHH Member or any of its
Affiliates to one or more third parties as a direct result of such breach.

Section 8.4     Two Year Termination, Special Termination Event and 25-Year Termination.

(a)     Two-Year Termination. At any time after the eighth (8th) anniversary
of the Closing Date, the Cendant Member may deliver to the PHH Member a
written notice (the “Two-Year Termination Notice”) requesting that the PHH Member
either (i) purchase or cause to be purchased (the “Two Year Put”) all of the Interests held
by the Cendant Member or any of its Affiliates on a date no earlier than two years after such
Two-Year Termination Notice is delivered to the PHH Member (“Two Year Put Date”) or (ii)
sell (the “Two Year PHH Sale”) all of the Interests then held by the PHH Member and/or any
of its Affiliates to a Person that is not affiliated with Cendant (any such Person, for purposes of
this Section 8.4, the “Cendant Designated Buyer”) on a date no earlier than two years after
such Two-Year Termination Notice is delivered to the PHH Member (“Two Year Sale Date”).

(i)     Two Year Put.

(1)     The exercise price of the Two Year Put (the “Two Year Put Price”)
shall be an amount equal to the sum of (A) the fair value of the Interests of the
Cendant Member and any Affiliate thereof as of the Two Year Put Closing Date,
which value shall be determined by multiplying the Cendant Member’s then-current
proportionate membership interest by the Company’s EBITDA for the trailing twelve
months, multiplied by a then-current average market EBITDA multiple for mortgage
banking companies, plus (B) the aggregate amount of all past due quarterly
distributions to the Cendant

47

 

Member and any Affiliate thereof and any unpaid
distribution in respect of the most recently completed Fiscal Quarter pursuant to
Section 5.6 hereof as of the Two Year Put Closing Date, plus (C) an amount equal
to 49.9% of the Net Income realized by the Company at any time after the end of
the Fiscal Quarter most recently completed as of the Two Year Put Closing Date
attributable to Mortgage Loans in process at any time prior to the Two Year Put
Closing Date. No later than sixty (60) days prior to the Two Year Put Date, the
Cendant Member shall deliver to the PHH Member a written notice setting forth the
Cendant Member’s calculation of the Two Year Put Price and the basis for such
calculation. Any disagreement regarding the Two Year Put Price or any other
matter related to the exercise of the Two Year Put shall be resolved in accordance
with the provisions of Section 13.6 hereof. In the event that the Cendant Member
elects to exercise the Two Year Put, the PHH Member and the Cendant Member shall,
and shall cause their respective Affiliates to, cooperate as fully as reasonably
practicable with one another to consummate the Two Year Put transaction on the Two
Year Put Date. Concurrently with the consummation of the Two Year Put transaction,
the PHH Member shall pay or cause to be paid the Two Year Put Price to the Cendant
Member in cash by wire transfer of immediately available funds to an account or
accounts designated in writing by the Cendant Member. The “Two Year Put
Closing Date” shall be the date on which the Two Year Cendant Put is
consummated.

(2)     On the Two Year Put Closing Date, (A) all other Transaction Documents
shall automatically terminate (except as otherwise provided in any such
Transaction Document), (B) neither Cendant nor any Affiliate thereof shall be
subject to any restriction under this Agreement or any other Transaction Document
to pursue a partnership, joint venture or another arrangement with any third party
mortgage operation, and (C) the PHH Member shall, and shall cause the Company to,
cause all loan officers employed by PMC or any of its Subsidiaries (including the
Company) that are located in any of Cendant’s Owned Real Estate Offices to vacate
those offices promptly following the Cendant Member’s request.

(ii)     Two Year PHH Sale.

(1)     If the Cendant Member elects to cause the Two Year PHH Sale, it shall
provide written notice to the PHH Member of the identity of the Cendant Designated
Buyer no later than 180 days before the Two Year Sale Date.

48

 

(2)     The sale price (the “Two Year Sale Price”) of the PHH Member’s
Interest to the Cendant Designated Buyer shall be an amount equal to the sum of
(A) the fair value of the PHH Member’s Interest, which value shall be determined
by multiplying the PHH Member’s then-current proportionate membership interest by
the Company’s EBITDA for the trailing twelve months, multiplied by a then-current
average market EBITDA multiple for mortgage banking companies, plus (B) the
aggregate amount of all past due quarterly distributions to the PHH Member and any
Affiliate thereof and any unpaid distribution in respect of the most recently
completed Fiscal Quarter pursuant to Section 5.6 hereof as of such date, plus (C)
an amount equal to 50.1% of the Net Income realized by the Company at any time
after the end of the Fiscal Quarter most recently completed on or after the Two
Year Sale Date attributable to Mortgage Loans in process at any time prior to the
Two Year Sale Date. No later than sixty (60) days prior to the Two Year Sale
Date, the Cendant Member shall deliver to PMC or the PHH Member a notice that sets
forth the Cendant Member’s calculation of the Two Year Sale Price and the basis
for such calculation. Any disagreement regarding the Two Year Sale Price or any
other matter related to the Two Year PHH Sale shall be resolved in accordance with
the provisions of Section 13.6 hereof.

(3)     The Cendant Member, PMC and the PHH Member shall work together to effect
the sale by the PHH Member or
its Affiliates of the PHH Interests to the Cendant Designated Buyer, and the
PHH Member shall use its reasonable best efforts to complete such sale on the Two
Year Sale Date. PMC and the PHH Member shall cooperate with and assist the Cendant
Member and the Cendant Designated Buyer in obtaining all consents and approvals
of, making all filings and registrations with and providing all notices to, such
Governmental Entities or third parties as shall be necessary or advisable to
consummate such sale. At the time agreed upon for the closing of the Two Year PHH
Sale, the Cendant Designated Buyer shall pay to the PHH Member (or, as directed by
the PHH Member, any of its Affiliates) the Two Year Sale Price, by wire transfer
of immediately available funds, in consideration for the PHH Interests.

(4)     Upon consummation of the Two Year PHH Sale, (A) the other Transaction
Documents shall automatically terminate (other than as set forth in any such
Transaction Document), (B) neither Cendant nor any Affiliate thereof shall be
subject to any restriction under this Agreement or any other Transaction Document
to pursue a partnership, joint venture or another arrangement with any third party

49

 

mortgage operation, (C) the PHH Member shall, and shall cause the Company to,
cause all loan officers employed by PMC or any of its Subsidiaries (including the
Company) that are located in any of Cendant’s Owned Real Estate Offices to vacate
those offices promptly following the Cendant Member’s request, and (D) the Cendant
Designated Buyer or an Affiliate thereof shall become a Member and the sole
Managing Member of the Company. The PHH Member shall, and shall cause its
Affiliates, to execute any agreement or document necessary to effectuate the
provisions of this paragraph (iv).

(b)     Special Termination Event. Upon the occurrence of a Special Termination Event,
the Members shall as promptly as practicable take all such actions necessary to consummate a
transaction identical in all material respects to a Two Year Put (a “Special Termination
Put”), except that (1) the purchase price shall be calculated as of the date the Special
Termination Put is completed, and (2) such transaction shall be completed not later than ninety
(90) days following the delivery by the Cendant Member of the Special Termination Notice pursuant
to Section 7.1(b). On the date of completion of the Special Termination Put, (A) all other
Transaction Documents shall automatically terminate (except as otherwise provided in any such
Transaction Document), (B) neither Cendant nor any Affiliate thereof shall be subject to any
restriction under this Agreement or any other Transaction Document to pursue a partnership, joint
venture or another arrangement with any third party mortgage operation, and (C) the PHH Member
shall, and shall cause the Company to, cause all loan officers employed by PMC or any of its
Subsidiaries (including the Company) that are located in any of Cendant’s Owned Real Estate Offices
to vacate those offices promptly following the Cendant Member’s request.

(c)     PHH 25-Year Termination. The PHH Member may terminate the relationship between
the Parties to this Agreement, effective as of January 31, 2030, by delivering written notice
thereof to the Cendant Member (a “Non-Renewal Notice”), which notice shall be delivered no
earlier than January 31, 2027 and not later than January 31, 2028. Upon delivery of a Non-Renewal
Notice, PMC and the PHH Member shall work together with the Cendant Member to consummate a
transaction identical in all material respects to, at the election of the PHH Member, either the
Two Year Put (a “Non-Renewal Put”) or Two Year PHH Sale (a “Non-Renewal PHH Sale”), except
that (1) the purchase price for such transaction shall be calculated as of the date of completion
of such transaction, and (2) such transaction shall be completed no earlier than January 31, 2030.
Upon consummation of the Non-Renewal Put or the Non-Renewal PHH Sale, (A) the other Transaction
Documents shall automatically terminate (other than as set forth in any such Transaction Document),
(B) neither Cendant nor any Affiliate thereof shall be subject to any restriction under this
Agreement or any other Transaction Document to pursue a partnership, joint venture or another
arrangement with any third party mortgage operation, (C) the PHH Member shall, and shall cause the

50

 

Company to, cause all loan officers employed by PMC or any of its Subsidiaries (including the
Company) that are located in any of Cendant’s Owned Real Estate Offices to vacate those offices
promptly following the Cendant Member’s request, and (D) in the case of a Non-Renewal PHH Sale, the
Cendant Designated Buyer or an Affiliate thereof shall become a Member and the sole Managing Member
of the Company. The PHH Member shall, and shall cause its Affiliates, to execute any agreement or
document necessary to effectuate the provisions of this paragraph (c).

Section 8.5     Effect of Termination Events.

(a)     Notwithstanding anything to the contrary set forth in this Agreement, upon the
consummation of a Cendant Put, a Two Year Put, a Purchase Right, a Special Termination Event Put or
a Non-Renewal Put, the Cendant Member and each of its Affiliates that is a Member shall cease to be
a Member and to have any obligations pursuant to this Agreement.

(b)     Notwithstanding anything to the contrary set forth in this Agreement, upon the
consummation of a PHH Sale, a Two Year PHH Sale or a Non-Renewal PHH Sale, the PHH Member and each
of its Affiliates that is a Member shall cease to be a Member and to have any obligations pursuant
to this Agreement.

ARTICLE IX

Dissolution and Winding Up

Section 9.1     Events Causing Dissolution.

(a)     The Company shall be dissolved upon the first of the following events to occur (an
“Event of Dissolution”):

(i)     The written consent all Members at any time to dissolve and wind up the affairs of
the Company; or

(ii)     The entry of a decree of judicial dissolution under Section 18-802 of the Act.

No other event, including the retirement, insolvency, liquidation, dissolution, expulsion,
bankruptcy, death, incapacity or adjudication of incompetence of a Member, shall cause the
existence of the Company to terminate.

(b)     Except as otherwise set forth in this Section 9.1, dissolution shall be effective on the
effective date of the Event of Dissolution, but the Company shall not terminate until the assets
thereof have been distributed in accordance with the

51

 

provisions of Section 9.4 hereof and all other
provisions of the Act with respect to the dissolution of a limited liability company have been
complied with. Notwithstanding the dissolution of the Company, prior to the termination of the
Company, the business, assets and affairs of the Company shall continue to be governed by this
Agreement.

Section 9.2     Winding Up. If the Company is dissolved pursuant to Section 9.1, the Company’s
affairs shall be wound up as soon as reasonably practicable in the manner set forth below.

(a)     Upon the occurrence of an Event of Dissolution, sole and plenary authority to effectuate
the liquidation of the Company shall be vested in the Managing Member or a Person designated by the
Managing Member (subject to the approval of the Board pursuant to Section 6.3 hereof) to effectuate
the liquidation of the Company or if the Managing Member elects not to effectuate such liquidation
and fails to designate a liquidator, such Person as is selected by the Members (the Managing Member
or any such liquidating trustee who assumes such responsibility being referred to herein as the
“Liquidating Trustee”). The Liquidating Trustee shall proceed diligently to wind up the
affairs of the Company, liquidate the assets of the Company in an orderly and businesslike manner
consistent with obtaining the fair value thereof and distribute the assets of the Company in
accordance with the provisions of Section 9.4 hereof. A reasonable amount of time shall be allowed
for the orderly liquidation of the assets of the Company and the discharge of liabilities to
creditors so as to enable the Liquidating Trustee to minimize the
losses attendant upon such liquidation. All FHA-insured loans held by the Company shall be
transferred to an approved mortgagee or lender prior to dissolution of the Company. Prior to such
distribution of the Company’s assets, the Liquidating Trustee shall continue to exploit the rights,
activities and properties of the Company consistent with the sale or liquidation thereof,
exercising in connection therewith all of the power and authority of the Managing Member as herein
set forth.

(b)     In winding up the affairs of the Company, the Liquidator shall have full right and
unlimited discretion, in the name of and for and on behalf of the Company to:

(i)     Prosecute and defend civil, criminal or administrative suits;

(ii)     Collect Company assets, including obligations owed to the Company;

(iii)     Settle and close the Company’s business;

(iv)     Dispose of and convey all Company Property for cash, and in connection therewith
to determine the time, manner and terms of any

52

 

sale or sales of Company Property, having
due regard for the activity and condition of the relevant market and general financial and
economic conditions;

(v)     Pay all reasonable selling costs and other expenses incurred in connection with
the winding up out of the proceeds of the disposition of Company Property;

(vi)     Discharge the Company’s known liabilities and, if necessary, to set up, for a
period not to exceed five (5) years after the date of dissolution, such cash reserves as
the Liquidator may deem reasonably necessary for any contingent or unforeseen liabilities
or obligations of the Company;

(vii)     Distribute any remaining proceeds from the sale of Company Property to the
Members;

(viii)     Prepare, execute, acknowledge and file articles of dissolution under the Act
and any other certificates, tax returns or instruments necessary or advisable under any
applicable law to effect the winding up and termination of the Company;

(ix)     Upon the distribution of the assets of the Company in accordance with the
provisions of Section 9.4 hereof, the Liquidating Trustee shall cause the Company’s
accountants to make a full and proper accounting of the
assets, liabilities and operations of the Company, as of and through the date on which
such distribution occurs; and

(x)     Exercise, without further authorization or consent of any of the parties hereto or
their legal representatives or successors in interest, all of the powers conferred upon the
Members under the terms of this Agreement to the extent necessary or desirable in the good
faith judgment of the Liquidating Trustee to perform its duties and functions. The
Liquidating Trustee (unless such Liquidating Trustee is the Managing Member or an Affiliate
thereof) shall, while acting in such capacity on behalf of the Company, be entitled to the
indemnification rights set forth in Section 12.1 hereof.

Section 9.3     Compensation of Liquidating Trustee. The Liquidating Trustee appointed as provided
herein shall be entitled to receive such reasonable compensation for its services as shall be
agreed upon by the Liquidating Trustee and the Managing Member.

Section 9.4     Distribution of Company Property and Proceeds of Sale Thereof.

53

 

(a)     Upon completion of all desired sales of Company Property, and after payment of all selling
costs and expenses, the Liquidating Trustee shall distribute the proceeds of such sales, and any
Company Property that is to be distributed in kind, to the following groups in the following order
of priority:

(i)     to satisfy Company liabilities to creditors, including Members who are creditors,
to the extent otherwise permitted by law (other than for past due Company distributions),
whether by payment or establishment of reserves;

(ii)     to satisfy Company obligations to Members and former Members to pay past due
Company distributions;

(iii)     pro rata among the Members who have made Capital Contributions to the extent of
their Capital Contributions; and

(iv)     to the Members pro rata in accordance with their positive Capital Account
balances, taking into account all Capital Account adjustments for the Fiscal Period in
which the liquidation occurs and any distributions to such Member pursuant to Section
9.4(a)(iii).

All distributions required under this Section 9.4 shall be made to the Members by the end of the
taxable year in which the liquidation occurs or, if later, within 90 days after the date of such
liquidation.

(b)     The claims of each priority group specified above shall be satisfied in full before
satisfying any claims of a lower priority group. If the assets available for disposition are
insufficient to dispose of all of the claims of a priority group, the available assets shall be
distributed in proportion to the amounts owed to each creditor or the respective Capital Account
balances or Interests of each Member in such group.

Section 9.5     Company Termination. Upon compliance with the foregoing distribution plan, the
Company shall cease to be such, and the Liquidating Trustee shall execute, acknowledge and cause to
be filed with the Secretary of State of the State of Delaware articles of dissolution of the
Company.

Section 9.6     Final Audit. Within a reasonable time following the completion of the liquidation,
the Liquidating Trustee shall supply to each of the Members a statement that shall set forth the
assets and the liabilities of the Company as of the date of complete liquidation and each Member’s
pro rata portion of distributions pursuant to Section 9.4.

54

 

ARTICLE X

Transfers and Assignment of Interests

Section 10.1     Consent Required for Transfer.

(a)     No Member shall be entitled to directly or indirectly sell, assign, Transfer or otherwise
dispose of all or any portion of his Interest, involuntarily or voluntarily, without the written
consent of all the other Members, which consent may be given or withheld in each such other
Member’s sole and absolute discretion; provided, however, that notwithstanding the
foregoing any Member may sell, assign, Transfer or otherwise dispose of all or any portion of such
Member’s Interest to an Affiliate of such Member without the written consent of the other Members;
provided further, however, that the Cendant Member may at its election Transfer a
portion of its Interest to any Person that acquires or otherwise succeeds to a portion of the
business of Cendant Real Estate, and shall transfer (i) its entire Interest to any Person that
acquires or otherwise succeeds to substantially all of the business of Cendant Real Estate, or (ii)
an appropriate portion of its
Interest to any Person that acquires or otherwise succeeds to substantially all of the
business of NRT, in each case, whether by merger, asset sale, stock sale, or otherwise (it being
understood that in the case of any transfer of a portion of the Cendant Member’s Interest
contemplated by this second proviso, the percentage represented by the portion of the Interest so
transferred shall be determined based upon the percentage of the Company’s revenue for the
then-current trailing twelve months represented by the portion of the business of Cendant Real
Estate so transferred in the transaction).

(b)     It shall be a condition to any Transfer of all or a portion of the Cendant Member’s
Interest permitted by Section 10.1(a) that any Person acquiring such Interest or portion thereof
shall agree in writing to be bound by this Agreement and all of the other Transaction Documents
with respect to the portion of the business of Cendant Real Estate acquired by such Person, to the
same extent that Cendant Real Estate and the Cendant Member were so bound prior to such transfer
(other than as set forth in any such other Transaction Document). In the event of consummation of
any such Transfer in accordance with Section 10.1(a), the Managing Member shall amend Schedule
I to reflect such Transfer.

(c)     It shall be a condition to any Transfer by a Member which may be permitted under Section
10.1(a) that the transferee assume by written agreement all of the obligations of the transferor
under this Agreement with respect to such transferred Interests and make the representations in
Section 3.3 hereof. Any attempted or purported Transfer in violation of this Article X shall be
null and void ab initio.

55

 

Section 10.2     Withdrawal. No Member may withdraw from the Company without the prior written consent
of all Members, which consent may be given or withheld for any reason.

ARTICLE XI

Fiscal Matters; Books and Records

Section 11.1     Bank Accounts; Investments. Capital Contributions, revenues and any other Company
funds shall be deposited by the Company in a bank account established in the name of the Company,
or shall be invested by the Company, at the direction of the Managing Member, in time deposits,
short-term governmental obligations, commercial paper or other short-term money market instruments
in furtherance of the purposes of the Company. No other funds shall be deposited into Company bank
accounts or commingled with Company investments. Funds deposited in the Company’s bank accounts
may be withdrawn only to be invested in time deposits, short-term governmental obligations,
commercial paper or other short-term money market instruments in furtherance of the Company’s
purposes, to pay Company debts or obligations or to be distributed to the Members pursuant to this
Agreement.

Section 11.2     Records Required by Act; Right of Inspection.

(a)     During the term of the Company’s existence and for a period of four (4) years thereafter,
there shall be maintained in the Company’s principal office specified pursuant to Section 2.4 all
records required to be kept pursuant to Section 18-305(a) of the Act, including, without
limitation, a current list of the names, addresses and Common Interest Percentage held by each of
the Members (including the dates on which each of the Members became a Member), copies of federal,
state and local information or income tax returns for each of the Company’s tax years, copies of
this Agreement and the Certificate of Formation, including all amendments or restatements, and
correct and complete books and records of account of the Company for all periods of operations.

(b)     Each of the Company and the Managing Member shall, at their sole cost and expense, make
available, or cause to be made available, to the Cendant Member or any person designated by the
Cendant Member, in a timely manner, all documents or materials in the possession of, or available
to, the Company or the Managing Member that the Cendant Member may reasonably request for any
business purpose (including, without limitation, any such documents and materials the Cendant
Member may request to verify the accuracy of the calculation of Distributable Net Income for any
Fiscal Quarter). In furtherance of the foregoing, each of the Company and the Managing Member
shall, at its sole cost and expense, make available, or cause to be made available, during normal
business hours and with reasonable advance notice, to

56

 

the Cendant Member
or any Person designated by the Cendant Member, resources, including, but not limited to,
access to employees, sufficient to respond adequately to any issue or concern raised by the Cendant
Member.

Section 11.3     Books and Records of Account. The Company shall maintain books and records in such a
manner as to enable the preparation of the Company’s U.S. federal information tax return in
compliance with Section 6031 of the Code, and such other records as may be required in connection
with the preparation and filing of the Company’s required U.S. federal, state and local income tax
returns or other tax returns or reports of foreign jurisdictions, including, without limitation,
the records reflecting the Capital Accounts and adjustments thereto specified in Article V hereof.
Subject to Section 3.6, all such books and records shall at all times be made available at the
principal office of the Company and shall be open to the reasonable inspection and examination by
the Members or their duly authorized representatives during normal business hours. Notwithstanding
the definition of “Members” herein, only Members admitted as such to the Company shall have the
inspection rights provided in the preceding sentence.

Section 11.4     Expenses. The Company will be responsible for all expenses (“Company
Expenses”), including, without limitation, (i) all reasonable accounting and legal expenses
incurred in connection with Company operations, (ii) all reasonable costs incurred in connection
with the preparation of or relating to reports made to the Members, (iii) all reasonable costs
related to litigation involving the Company, directly or indirectly, including, without limitation,
attorneys’ fees incurred in connection therewith and (iv) all reasonable costs related to the
Company’s obligations set forth in Sections 11.10 and 12.1; provided, however, that
any Company Expenses must be attributable solely to the operations of the Company, and that any
expenses relating to, resulting from or in connection with any other Person, including without
limitation any other Person who is an Affiliate of the Managing Member, shall not be Company
Expenses.

Section 11.5     Tax Returns and Information. The Members intend for the Company to be treated as a
partnership for tax purposes. The Company shall prepare or cause to be prepared all federal, state
and local income and other tax returns that the Company is required to file. After the end of each
fiscal year of the Company, the Company shall prepare and transmit to each Member a report (i.e.,
Schedule K-1) that shall include all necessary tax reporting information required by Members for
preparation of their federal, state and local income or franchise tax returns, including the amount
of income, gain, loss, deduction and credit allocated to each Member for such fiscal year.

Section 11.6     Delivery of Audited Financial Statements to Members. As to each fiscal year of the
Company, the Company shall send to each Member a copy of (a) the balance sheet of the Company as of
the end of the fiscal year, (b) an income

57

 

statement of the Company for such year, and (c) a
statement showing the Net Income distributed by the Company to Members in respect of such year.
Such financial statements shall be delivered sixty (60) days following the end of such fiscal year.
The Company shall send to each Member all other reports or statements prepared by the Company’s
accountants promptly after receipt thereof.

Section 11.7     Audits. The fiscal year-end financial statements to be delivered pursuant to Section
11.6 shall be audited and prepared in accordance with GAAP. The audit shall be performed by an
accounting firm selected pursuant to Section 6.3(a)(iii).

Section 11.8     Fiscal Year. The Company’s fiscal year shall end on December 31 of each calendar
year.

Section 11.9     Tax Elections. The Company shall, subject to approval of the Board pursuant to
Section 6.3(a)(xiv) hereof, make the following elections on the appropriate tax returns:

(a)     to adopt the calendar year as the Company’s fiscal year, if permitted by the Code;

(b)     to elect to amortize the organizational expenses of the Company ratably over a period of
sixty (60) months as permitted by Section 709(b) of the Code; and

(c)     any other election the Managing Member determines is in the best interests of the Members,
including an election pursuant to Section 754 of the Code to adjust Company Properties upon a
distribution of Company Property as described in Section 734 of the Code or a transfer of any
Interests as described in Section 743 of the Code.

Neither the Company nor any Member may make an election for the Company to be (i) excluded from the
application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or any similar
provisions of applicable state law or (ii) classified as a corporation for income tax purposes.

Section 11.10     Tax Matters Member. The PHH Member shall be designated as the “tax matters partner”
(the “Tax Matters Member”) of the Company pursuant to Section 6231(a)(7) of the Code or
corresponding provisions of state or local law, to manage administrative tax proceedings conducted
at the Company level by the Internal Revenue Service or the state or local taxing authority with
respect to Company matters. The Tax Matters Member is, subject to Section 6.3(a)(xiv) directed and
authorized to take whatever steps it, in its reasonable judgment, determines is necessary

58

 

or
desirable to perfect such designation, including, without limitation, filing any forms or documents
with the Internal Revenue Service or any state or local taxing authority and taking such other
action as may from time to time be required under Treasury Regulations and corresponding provisions
of state or local law. Expenses of administrative proceedings relating to the determination of
Company items at the Company level undertaken by the Tax Matters Member shall be expenses of the
Company. The Tax Matters Member shall inform each Member of the commencement of any audit of the
Company by the Internal Revenue Service or any other taxing authority.

ARTICLE XII

Indemnification and Insurance

Section 12.1     Indemnification and Advancement of Expenses.

(a)     In General. The Company shall, to the maximum extent permitted by applicable law,
indemnify and hold harmless all Advisors and officers of the Company (“Indemnified
Parties”), to the fullest extent permitted by law, from and against any and all Losses,
including, without limitation, Losses incurred in investigating, preparing or defending any action,
claim, suit, inquiry, proceeding, investigation or appeal taken from any of the foregoing by or
before any court or governmental, administrative or other regulatory agency, body or commission,
whether pending or threatened, whether or not an Indemnified Party is or may be a party thereto,
which arises out of, relates to or is in connection with this Agreement or the management or
conduct of the business or affairs of the Company, except for any such Losses that are found,
pursuant to a final and nonappealable judgment of a court of competent jurisdiction, to have
resulted from the gross negligence, bad faith, fraud or willful misconduct of, or breach of this
Agreement or knowing violation of law by, the Indemnified Party seeking indemnification. The
termination of any proceeding by settlement shall not be deemed to create a presumption that the
Indemnified Party involved in such settlement acted in a manner which constituted gross negligence,
bad faith, fraud or willful misconduct or a knowing violation of law. All judgments against an
Indemnified Party wherein such Indemnified Party is entitled to indemnification shall, to the
extent available, be satisfied from Company assets. The
provisions of this Section 12.1 shall survive any termination or expiration of this Agreement.
Expenses incurred by an Indemnified Party in defense or settlement of any claim that may be
subject to a right of indemnification hereunder may be advanced (and must be advanced to Advisors)
by the Company prior to the final disposition thereof upon receipt of an undertaking by or on
behalf of the Indemnified Party to repay such amount if it shall ultimately be determined that the
Indemnified Party is not entitled to be indemnified by the Company. The right of any Indemnified
Party to the indemnification and advancement of expenses provided herein shall be cumulative of and
in addition to any and all rights to which such Indemnified Party may otherwise be

59

 

entitled by
contract or as a matter of law or equity and shall extend to such Indemnified Party’s successors,
assigns and legal representatives.

(b)     Any indemnification under paragraph (a) of this Section 12.1 (unless ordered by a court of
competent jurisdiction) shall be made by the Company only as authorized in the specific case upon a
determination that indemnification of the Indemnified Party is proper in the circumstances because
he or she has met the applicable standard of conduct set forth in paragraph (a) of this Section
12.1. Such determination shall be made (i) by a four-fifths vote of the Board, or (ii) if a
four-fifths vote of the Board so directs, by independent legal counsel in a written opinion.

(c)     For purposes of this Section 12.1, any reference to the “Company” shall include, in
addition to the resulting or surviving entity, any constituent entity (including any constituent of
a constituent) absorbed in a consolidation or merger which, if its separate existence had
continued, would have had power and authority to indemnify its directors or officers, so that any
Person who is or was a director or officer of such constituent entity, or is or was serving at the
request of such constituent entity as a director, officer or manager of another corporation,
limited liability company, partnership, joint venture, trust or other enterprise, shall stand in
the same position under the provisions of this Section 12.1 with respect to the resulting or
surviving entity as he or she would have with respect to such constituent entity if its separate
existence had continued.

(d)     Notwithstanding anything in this Article XII to the contrary, the Company will not have
the obligation of indemnifying any Person with respect to proceedings, claims or actions initiated
or brought voluntarily by such Person and not by way of defense.

(e)     Any indemnification or advancement of expenses provided by, or granted pursuant to, this
Section 12.1 shall be considered retroactive to the date upon which the Certificate of Formation
was filed with the State of Delaware.

Section 12.2     Insurance. The Company may purchase and maintain insurance or another arrangement on
behalf of any Person who is or was an Advisor or officer identified in Section 12.1 against any
liability asserted against such Person or incurred by such Person in such a capacity or arising out
of the status of such a Person, whether or not the Company would have the power to indemnify such
Person against that liability under Section 12.1 or otherwise.

60

 

Section 12.3     Limit on Liability of Members. The indemnification set forth in this Article XII
shall in no event cause the Members to incur any personal liability beyond their total Capital
Contributions, nor shall it result in any liability of the Members to any third party.

Section 12.4     Indemnification by Managing Member.

(a)     The Managing Member shall indemnify and hold harmless the Company and all other Members
and their respective Affiliates (“Other Indemnified Parties”), to the fullest extent
permitted by law, from and against any and all Losses, including, without limitation, Losses
incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding,
investigation or appeal taken from any of the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or commission, whether pending or threatened,
whether or not an Other Indemnified Party is or may be a party thereto, arising out of or resulting
from (i) the negligence, willful misconduct or violation of law or erroneous acts of or by the
Managing Member or any of its officers or employees in connection with the management of the
business and affairs of the Company, and (ii) any breach or violation by PMC or any of its
Affiliates of any representation, warranty, covenant or other agreement contained in this Agreement
or any other Transaction Document (including, without limitation, any indemnification payment made
to an Advisor or officer under this Article XII hereof as a result of such breach or violation), it
being understood that the Company shall retain all risk with respect to, and the Managing Member
shall have no indemnification obligations hereunder with respect to, loan level origination defects
not otherwise resulting from any of the circumstances described in clause (i) or (ii) of this
Section 12.4(a). The provisions of this Section 12.4 shall survive any termination or expiration
of this Agreement or any other Transaction Document. The right of any Other Indemnified Party to
the indemnification and advancement of expenses provided herein shall be cumulative of and in
addition to any and all rights to which such Other Indemnified Party may otherwise be entitled by
contract or as a matter of law or equity and shall extend to such Other Indemnified Party’s
successors, assigns and legal representatives.

(b)     In the case of a PHH Regulatory Event, the PHH Member shall indemnify and hold harmless
the Company from and against all Losses incurred by it arising out of or resulting from such PHH
Regulatory Event, except, in any such case, to the extent that the Regulatory Order or Proceeding
or Losses leading to such PHH Regulatory Event are caused solely by Cendant or any of its
Affiliates or any of their respective directors, officers, advisors or employees.

(c)     In the case of a Company Regulatory Event, the PHH Member shall indemnify and hold
harmless the Company from and against all Losses incurred or sustained by it arising out of or
resulting from such Company Regulatory

61

 

Event, except, in any case, to the extent that the
Regulatory Order or Proceeding or Losses leading to such Company Regulatory Event are caused solely
by Cendant or any of its Affiliates or any of their respective directors, officers, advisors or
employees.

(d)     In the event there is a breach or violation by PMC or its Affiliates (excluding the
Company), on the one hand, or by Cendant or its Affiliates, on the other hand, of any
representation, warranty, covenant or other agreement contained in this Agreement or any other
Transaction Document, then the breaching Party shall give prompt written notice thereof to the
other Party and each Advisor.

Section 12.5     No Additional Indemnification Rights.

Except as set forth herein, no Person (including, without limitation, any Member and any
officer, director or agent of any Member) shall have indemnification rights against the Company.

ARTICLE XIII

Miscellaneous Provisions

Section 13.1     Counterparts. This Agreement may be executed in several counterparts, each of which
will be deemed an original but all of which will constitute one and the same.

Section 13.2     Entire Agreement. This Agreement and the other Transaction Documents constitute the
entire agreement among the parties hereto and contains all of the agreements among such parties
with respect to the subject matter hereof and thereof. This Agreement and the other Transaction
Documents supersede any and all other agreements, either oral or written, between such parties with
respect to the subject matter hereof and thereof.

Section 13.3     Partial Invalidity. Wherever possible, each provision hereof shall be interpreted in
such manner as to be effective and valid under applicable law, but in case any one or more of the
provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such provision shall be ineffective to the extent, but only to the extent, of such
invalidity, illegality or unenforceability without invalidating the remainder of such invalid,
illegal or unenforceable provision or provisions or any other provisions hereof, unless such a
construction would be unreasonable.

Section 13.4     Amendment. Except as expressly provided herein (including Section 10.1 hereof), this
Agreement may be amended only by a written agreement executed by all the Members. Following such
amendment, the Agreement, as

62

 

amended, shall be binding upon all Members. The Company shall notify
the Secretary of HUD of any amendments to this Agreement which would affect the Company’s action
under any HUD/FHA administered mortgage insurance program.

Section 13.5     Binding Effect. Subject to the provisions of this Agreement relating to
transferability, this Agreement will be binding upon and shall inure to the benefit of the parties,
and their respective distributees, heirs, successors and assigns.

Section 13.6     Negotiation and Mediation.

(a)     Negotiation. In the event of any dispute, controversy or claim arising out of or
relating to this Agreement or the breach, termination or validity thereof, or the transactions
contemplated hereby (a “Dispute”), upon the written notice of any Member hereto, the
Members shall attempt in good faith to negotiate a resolution of the Dispute. If the Members are
unable for any reason to resolve a Dispute within 30 days after the receipt of such notice, the
Dispute shall be submitted to mediation in accordance with Section 13.6(b) hereof.

(b)     Mediation. Any Dispute not resolved pursuant to Section 13.6(a) hereof shall, at
the request (the “Mediation Request”) of any Member (the “Disputing Member”), be
submitted to mediation in accordance with the then-prevailing Commercial Mediation Rules of the
American Arbitration Association, as modified herein (the “Rules”). The mediation shall be
held in New York, New York. The Members shall have twenty (20) days from receipt by a party of a
Mediation Request to agree on a
mediator. If no mediator has been agreed upon by the Members within twenty (20) days of
receipt by a Member (or Members) of a Mediation Request, then any Member may request (on written
notice to the other Member or Members), that the American Arbitration Association appoint a
mediator in accordance with the Rules. All mediation pursuant to this Section 13.6(b) shall be
confidential and shall be treated as compromise and settlement negotiations, and no oral or
documentary representations made by the Members during such mediation shall be admissible for any
purpose in any subsequent proceedings. No Member shall disclose or permit the disclosure of any
information about the evidence adduced or the documents produced by another Member in the mediation
proceedings or about the existence, contents or results of the mediation award without the prior
written consent of such other Member except in the course of a judicial or regulatory proceeding or
as may be required by law, rule or regulation or requested by a governmental authority or
securities exchange. Before making any disclosure permitted by the preceding sentence, the Member
intending to make such disclosure shall give the other Member a reasonable opportunity to protect
its interests. If the Dispute has not been resolved within sixty (60) days of the appointment of a
Mediator, or within ninety (90) days of delivery by a Disputing Member of notice in accordance with
Section 13.10 (whichever occurs sooner) or within such longer period as the

63

 

Members may agree to in
writing, then any Member may file an action on the Dispute in any court having jurisdiction in
accordance with Section 13.7 herein.

Section 13.7     Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REGARD TO THE CHOICE OF LAWS RULES THEREOF, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE MEMBERS HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. Any legal
suit, action or proceeding against any of the Parties hereto arising out of or relating to this
Agreement shall only be instituted in any federal or state court in New York, New York, pursuant to
Section 5-1402 of the New York General Obligations Law, and each of the Parties hereby irrevocably
submits to the exclusive jurisdiction of any such court in any such suit, action or proceeding.
The Parties hereby agree to venue in such courts and hereby waive, to the fullest extent permitted
by law, any claim that any such action or proceeding was brought in an inconvenient forum. Each of
the Parties hereby irrevocably waives all right to trial by jury in any action, proceeding or
counterclaim arising out of or relating to this Agreement.

Section 13.8     Offset. Whenever the Company is to pay any sum to any Member, any amounts that Member
owes the Company may be deducted from that sum before payment.

Section 13.9     Effect of Waiver or Consent. No provision of this Agreement shall be deemed to have
been waived unless such waiver is contained in a written notice given to the party claiming such
waiver has occurred. A waiver or consent, express or implied, to or of any breach or default by
any Person in the performance by that Person of its obligations with respect to the Company is not
a consent or waiver to or of any other breach or default in the performance by that Person of the
same or any other obligations of that Person with respect to the Company. Failure on the part of a
Person to complain of any act of any Person or to declare any Person in default with respect to the
Company, irrespective of how long that failure continues, does not constitute a waiver by that
Person of its rights with respect to that default until the applicable statute-of-limitations
period has run.

Section 13.10     Notices. To be effective, unless otherwise specified in this Agreement, all notices
and demands, consents and other communications under this Agreement must be in writing and must be
given (a) by depositing the same in the United States mail, postage prepaid, certified or
registered, return receipt requested, (b) by delivering the same in person and receiving a signed
receipt therefore, (c) by sending the same by a nationally recognized overnight delivery service or
(d) by telecopy (promptly confirmed by telephone and followed by personal or nationally recognized
overnight

64

 

delivery). For purposes of notices, demands, consents and other communications under
this Agreement, the addresses of the Members (and their respective counsel, if applicable) shall be
as follows:

If to the PHH Member, addressed to:

PHH Broker Partner Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08054

Attn: William F. Brown

With a copy to:

PHH Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08054

Attn: William F. Brown

If to the Cendant Member, addressed to:

Cendant Real Estate Services Venture Partner, Inc.

1 Campus Drive

Parsippany, NJ 07054

Attn: Eric Bock

With a copy to:

Cendant Corporation

9 West 57th Street, 37th Floor

New York, NY 10019

Attn: Eric Bock

Notices, demands, consents and other communications mailed in accordance with the foregoing
clause (a) shall be deemed to have been given, made and received three (3) Business Days following
the date so mailed. Notices, demands, consents and other communications given in accordance with
the foregoing clauses (b) and (d) shall be deemed to have been given, made and received when sent
on a Business Day or, if not sent on a Business Day, then the next succeeding Business Day.
Notices, demands, consents and other communications given in accordance with the foregoing clause
(c) shall be deemed to have been given, made and received when delivered or

65

 

refused on a Business
Day or, if not delivered or refused on a Business Day, then the next succeeding Business Day. Any
Member or its assignee may designate a different address to which notices or demands shall
thereafter be directed and such designation shall be made by written notice given in the manner
hereinabove required, provided, that at all times each Member shall be required to maintain a
notice address in the continental United States.

Section 13.11     No Consequential Damages.

In no event shall the Cendant Member or any of its Affiliates have any liability to the PHH
Member or any of its Affiliates for any indirect, consequential, incidental, collateral, exemplary,
punitive, enhanced, special or other similar damages of
any kind or nature whatsoever, including, without limitation, lost profits to the PHH Member
or any of its Affiliates from past, present or future business opportunities, loss of use or
revenue, loss of savings or losses by reason of cost of capital, arising out of or in any manner
relating to this Agreement or any other Transaction Document, the performance or breach thereof or
the subject matter thereof, whether or not the Cendant Member or any of its Affiliates have been
advised of, or otherwise might or should have anticipated, the possibility or likelihood of such
damages. The limitations of liability set forth in this Section 13.11 shall apply regardless of
the form of action in which a claim is brought, whether in contract, tort (including negligence of
any kind, whether active or passive), warranty, strict liability or any other legal or equitable
grounds, and shall survive failure of an exclusive remedy.

Section 13.12     Most Favored Nation.

If during the term of this Agreement PMC or any of its Affiliates enters into any agreement,
arrangement or understanding with a third party whereby PMC or such Affiliate (or any other entity
formed in connection with such agreement, arrangement or understanding) agrees to provide
substantially the same Mortgage Loan origination services to such third party, and such agreement,
arrangement or understanding contains pricing (other than the pricing of loans) or servicing terms
or conditions that, taken as a whole, are more favorable to such third party than the comparable
terms of this Agreement and the related Transaction Documents, taken as a whole, are to Cendant,
then the Company shall offer such favorable terms and conditions to the Cendant Member with respect
to Mortgage Loans originated by the Company pursuant to this Agreement and amend this Agreement and
any other Transaction Documents, as applicable, to the extent necessary so that such terms and
conditions are incorporated in a manner reasonably acceptable to the Cendant Member.

Section 13.13     Impossibility of Performance.

66

 

If during the term of this Agreement, without any change in applicable law, rule or regulation
and through no fault or breach of any Party hereto, it shall have become impossible for the Parties
to fulfill the objectives of the Company and to perform their obligations hereunder, then the
Parties shall proceed with an orderly liquidation and dissolution of the Company in accordance with
Article IX hereof.

67

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective officers thereunto duly authorized, as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	CENDANT REAL ESTATE SERVICES
	 	 	 	 	VENTURE PARTNER, INC.
	 
	 	 	 	 	 	 
	

	 	By:	 	 /s/ Eric J. Bock	 	 
	 	 	 	 	 
	

	 	 	 	Name:
	 	Eric J. Bock
	

	 	 	 	Title:
	 	Executive Vice President and Secretary
	 
	 	 	 	 	 	 
	 	 	PHH BROKER PARTNER
	 	 	 	 	CORPORATION
	 
	 	 	 	 	 	 
	

	 	By:	 	 /s/ Terence W. Edwards	 	 
	 	 	 	 	 
	

	 	 	 	Name:
	 	Terence W. Edwards
	

	 	 	 	Title:
	 	President

68EXHIBIT 10.2

 

Exhibit 10.2

STRATEGIC RELATIONSHIP AGREEMENT

BY AND AMONG

CENDANT REAL ESTATE SERVICES GROUP, LLC,

CENDANT REAL ESTATE SERVICES VENTURE PARTNER, INC.,

PHH CORPORATION,

CENDANT MORTGAGE CORPORATION,

PHH BROKER PARTNER CORPORATION,

AND

PHH HOME LOANS, LLC

January 31, 2005

*The term
“Confidential” 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.

 

 

Table of Contents

	 	 	 	 	 	 	 
	ARTICLE I

	 
	 	 	 	 	 	 
	DEFINITIONS

	 
	 	 	 	 	 	 
	Section 1.1

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.2

	 	Interpretation
	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 
	 	 	 	 	 	 
	EXCLUSIVITY; MARKETING

	 
	 	 	 	 	 	 
	Section 2.1

	 	Exclusivity; Marketing
	 	 	11	 
	 
	 	 	 	 	 	 
	Section 2.2

	 	Termination of Exclusivity
	 	 	11	 
	 
	 	 	 	 	 	 
	Section 2.3

	 	Marketing
	 	 	12	 
	 
	 	 	 	 	 	 
	Section 2.4

	 	Variable Compensation
	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 
	 	 	 	 	 	 
	LOAN ORIGINATION

	 
	 	 	 	 	 	 
	Section 3.1

	 	Marketing
	 	 	13	 
	 
	 	 	 	 	 	 
	Section 3.2

	 	Mortgage Loan Types
	 	 	13	 
	 
	 	 	 	 	 	 
	Section 3.3

	 	Company Origination Channels
	 	 	13	 
	 
	 	 	 	 	 	 
	Section 3.4

	 	Mortgage Loan Application Processing
	 	 	16	 
	 
	 	 	 	 	 	 
	Section 3.5

	 	Underwriting Guidelines
	 	 	17	 
	 
	 	 	 	 	 	 
	Section 3.6

	 	Degree of Care
	 	 	17	 
	 
	 	 	 	 	 	 
	Section 3.7

	 	Mortgage Loan Closing
	 	 	17	 
	 
	 	 	 	 	 	 
	Section 3.8

	 	Company Personnel
	 	 	18	 
	 
	 	 	 	 	 	 
	Section 3.9

	 	Processors
	 	 	18	 
	 
	 	 	 	 	 	 
	Section 3.10

	 	Access
	 	 	18	 
	 
	 	 	 	 	 	 
	Section 3.11

	 	Maintenance of Licenses
	 	 	19	 
	 
	 	 	 	 	 	 
	Section 3.12

	 	Record Keeping
	 	 	19	 
	 
	 	 	 	 	 	 
	Section 3.13

	 	Legal and Regulatory Compliance
	 	 	19	 
	 
	 	 	 	 	 	 
	Section 3.14

	 	Customer Fees and Charges
	 	 	20	 
	 
	 	 	 	 	 	 
	Section 3.15

	 	Pricing Standards
	 	 	20	 
	 
	 	 	 	 	 	 
	Section 3.16

	 	Service Standards
	 	 	21	 

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 	 	 
	REPRESENTATIONS AND WARRANTIES

	 
	 	 	 	 	 	 
	Section 4.1

	 	Representations
	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 
	 	 	 	 	 	 
	CENDANT REAL ESTATE COVENANTS

	 
	 	 	 	 	 	 
	Section 5.1

	 	Cendant Real Estate Trade Shows, Conferences and Conventions
	 	 	23	 
	 
	 	 	 	 	 	 
	Section 5.2

	 	Offline Promotion to Consumers
	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 	 	 
	REAL ESTATE BROKERAGE AND SETTLEMENT SERVICES

	 
	 	 	 	 	 	 
	Section 6.1

	 	Exclusive Recommended Real Estate Broker
	 	 	24	 
	 
	 	 	 	 	 	 
	Section 6.2

	 	Commercial Real Estate
	 	 	24	 
	 
	 	 	 	 	 	 
	Section 6.3

	 	Settlement Services
	 	 	24	 
	 
	 	 	 	 	 	 
	Section 6.4

	 	REO Services
	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 	 	 
	CUSTOMER DATA; PRIVACY REQUIREMENTS

	 
	 	 	 	 	 	 
	Section 7.1

	 	Customer Information
	 	 	25	 
	 
	 	 	 	 	 	 
	Section 7.2

	 	Compliance with Privacy Requirements
	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 	 	 
	CENDANT FRANCHISEES

	 
	 	 	 	 	 	 
	Section 8.1

	 	Mortgage Loan Types
	 	 	27	 
	 
	 	 	 	 	 	 
	Section 8.2

	 	Origination Channels
	 	 	27	 
	 
	 	 	 	 	 	 
	Section 8.3

	 	Mortgage Loan Application Processing
	 	 	29	 
	 
	 	 	 	 	 	 
	Section 8.4

	 	Underwriting Guidelines
	 	 	29	 
	 
	 	 	 	 	 	 
	Section 8.5

	 	Degree of Care
	 	 	30	 
	 
	 	 	 	 	 	 
	Section 8.6

	 	Mortgage Loan Closing
	 	 	30	 
	 
	 	 	 	 	 	 
	Section 8.7

	 	PMC Personnel
	 	 	30	 
	 
	 	 	 	 	 	 
	Section 8.8

	 	Processors
	 	 	31	 
	 
	 	 	 	 	 	 
	Section 8.9

	 	Maintenance of Licenses
	 	 	31	 
	 
	 	 	 	 	 	 
	Section 8.10

	 	Legal and Regulatory Compliance
	 	 	31	 
	 
	 	 	 	 	 	 
	Section 8.11

	 	Customer Fees and Charges
	 	 	31	 

iii

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.12

	 	Surveys
	 	 	32	 
	 
	 	 	 	 	 	 
	Section 8.13

	 	MSA Payments
	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 	 	 
	FUTURE CENDANT REAL ESTATE BROKERAGE ACQUISITIONS

	 
	 	 	 	 	 	 
	Section 9.1

	 	Subsequent Small Corps
	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE X

	 
	 	 	 	 	 	 
	NON-COMPETITION

	 
	 	 	 	 	 	 
	Section 10.1

	 	PHH Non-Compete
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 10.2

	 	No Mortgage Loan Solicitation by PHH
	 	 	37	 
	 
	 	 	 	 	 	 
	Section 10.3

	 	Cendant Participation
	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE XI

	 
	 	 	 	 	 	 
	TERMINATION ASSISTANCE

	 
	 	 	 	 	 	 
	Section 11.1

	 	Termination Assistance Services
	 	 	38	 
	 
	 	 	 	 	 	 
	Section 11.2

	 	Development of Transition Plan
	 	 	40	 
	 
	 	 	 	 	 	 
	Section 11.3

	 	Post-Termination Assistance
	 	 	40	 
	 
	 	 	 	 	 	 
	ARTICLE XII

	 
	 	 	 	 	 	 
	TERM AND TERMINATION

	 
	 	 	 	 	 	 
	Section 12.1

	 	Term
	 	 	40	 
	 
	 	 	 	 	 	 
	Section 12.2

	 	SRA Termination Event
	 	 	40	 
	 
	 	 	 	 	 	 
	ARTICLE XIII

	 
	 	 	 	 	 	 
	MISCELLANEOUS PROVISIONS

	 
	 	 	 	 	 	 
	Section 13.1

	 	PHH Guarantee
	 	 	41	 
	 
	 	 	 	 	 	 
	Section 13.2

	 	Notice of Certain Events
	 	 	42	 
	 
	 	 	 	 	 	 
	Section 13.3

	 	Indemnification
	 	 	42	 
	 
	 	 	 	 	 	 
	Section 13.4

	 	Lawful Conduct; Severability; Release
	 	 	43	 
	 
	 	 	 	 	 	 
	Section 13.5

	 	Confidential Treatment
	 	 	43	 
	 
	 	 	 	 	 	 
	Section 13.6

	 	Expenses
	 	 	43	 
	 
	 	 	 	 	 	 
	Section 13.7

	 	Confidentiality and No Personal Solicitation
	 	 	44	 
	 
	 	 	 	 	 	 
	Section 13.8

	 	Entire Agreement
	 	 	44	 
	 
	 	 	 	 	 	 
	Section 13.9

	 	Amendment
	 	 	44	 

iv

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Section 13.10

	 	Binding Effect
	 	 	45	 
	 
	 	 	 	 	 	 
	Section 13.11

	 	Negotiation and Mediation
	 	 	45	 
	 
	 	 	 	 	 	 
	Section 13.12

	 	Governing Law
	 	 	46	 
	 
	 	 	 	 	 	 
	Section 13.13

	 	Effect of Waiver or Consent
	 	 	46	 
	 
	 	 	 	 	 	 
	Section 13.14

	 	Notices
	 	 	46	 
	 
	 	 	 	 	 	 
	Section 13.15

	 	No Assignment
	 	 	47	 
	 
	 	 	 	 	 	 
	Section 13.16

	 	Benefit of Parties Only
	 	 	48	 
	 
	 	 	 	 	 	 
	Section 13.17

	 	No Joint Venture; Legal Entity
	 	 	48	 
	 
	 	 	 	 	 	 
	Section 13.18

	 	Counterparts
	 	 	48	 

v

 

Index of Defined Terms

	 	 	 	 	 
	Additional Services

	 	 	40	 
	Affiliate

	 	 	1	 
	Agreement

	 	 	1	 
	Applicable Requirements

	 	 	2	 
	Brand Franchisee

	 	 	2	 
	Cendant

	 	 	2	 
	Cendant Competitor

	 	 	38	 
	Cendant Customer

	 	 	2	 
	Cendant Employees

	 	 	2	 
	Cendant Entities

	 	 	2	 
	Cendant Indemnitees

	 	 	44	 
	Cendant Indemnitor

	 	 	44	 
	Cendant Member

	 	 	1	 
	Cendant Mobility

	 	 	2	 
	Cendant Mobility Broker Network

	 	 	3	 
	Cendant Mobility Office

	 	 	3	 
	Cendant Owned Real Estate Offices

	 	 	3	 
	Cendant Owned Real Estate Offices Tradenames

	 	 	3	 
	Cendant Real Estate

	 	 	1	 
	Cendant Real Estate Franchisee Brands

	 	 	3	 
	Cendant Real Estate Seller

	 	 	34	 
	Cendant Real Estate Services Division

	 	 	3	 
	Cendant Restricted Brands

	 	 	3	 
	Cendant Websites

	 	 	3	 
	Company

	 	 	1	 
	Company Loan Officers

	 	 	17	 
	Company Pricing

	 	 	14	 
	Competitor Data Point

	 	 	21	 
	Competitors

	 	 	22	 
	Content

	 	 	4	 
	CSSG

	 	 	4	 
	Cure Period

	 	 	12	 
	Customer

	 	 	4	 
	Customer Fees and Charges

	 	 	4	 
	Customer Information

	 	 	15	 
	Customer Payment

	 	 	15	 
	Customer Survey

	 	 	22	 
	Dispute

	 	 	47	 
	Disputing Party

	 	 	47	 

vi

 

	 	 	 	 	 
	Domain Name

	 	 	5	 
	FHLMC

	 	 	18	 
	FNMA

	 	 	18	 
	Franchisee Customer

	 	 	5	 
	Franchisee Customer Survey

	 	 	33	 
	Franchisee Key Customer Question

	 	 	34	 
	Franchisee Key Referral Question

	 	 	34	 
	Franchisee Mortgage Content

	 	 	29	 
	Franchisee Referral Survey

	 	 	33	 
	Franchisee Surveys

	 	 	33	 
	Franchisee Telephone Lines

	 	 	28	 
	Guarantee

	 	 	43	 
	Guarantee Amount

	 	 	15	 
	HMDA

	 	 	7	 
	Hyperlink

	 	 	6	 
	Information Security Program

	 	 	6	 
	Interagency Guidelines

	 	 	28	 
	Internet

	 	 	6	 
	Internet Customer Payment

	 	 	17	 
	Key Customer Question

	 	 	22	 
	Key Referral Question

	 	 	22	 
	Losses

	 	 	44	 
	Managing Member

	 	 	6	 
	Mediation Request

	 	 	47	 
	Mortgage Content

	 	 	16	 
	Mortgage Lending Law

	 	 	6	 
	Mortgage Loan

	 	 	7	 
	Mortgage Loan Disclosure

	 	 	7	 
	Mortgage Loan Documents

	 	 	7	 
	Mortgage Loan Pricing

	 	 	7	 
	Mortgage Loan Types

	 	 	7	 
	MSA

	 	 	7	 
	Non-Competitive

	 	 	22	 
	Nonperformance Jurisdiction

	 	 	12	 
	NRT

	 	 	7	 
	Operating Agreement

	 	 	7	 
	Origination Channels

	 	 	8	 
	Other Origination Channels

	 	 	13	 
	Parties

	 	 	1	 
	Party

	 	 	1	 
	PHH

	 	 	1	 
	PHH Affiliates

	 	 	43	 

vii

 

\

	 	 	 	 	 
	PHH Data Point

	 	 	21	 
	PHH Entities

	 	 	8	 
	PHH Indemnitees

	 	 	44	 
	PHH Indemnitor

	 	 	44	 
	PHH Member

	 	 	1	 
	PIMI Origination Channel

	 	 	8	 
	Pipeline Loans

	 	 	43	 
	PLS

	 	 	26	 
	PMC

	 	 	1	 
	PMC Mortgage Loan Types

	 	 	8	 
	PMC Pricing

	 	 	28	 
	PMC Underwriting Guidelines

	 	 	31	 
	Point of Sale Origination Channel

	 	 	8	 
	Pre-Approval Decision

	 	 	9	 
	Premier Agent Program

	 	 	9	 
	Pricing Occurrence

	 	 	21	 
	Pricing Ratio

	 	 	22	 
	Privacy Requirements

	 	 	27	 
	Private Label Business Channel

	 	 	9	 
	Programs

	 	 	22	 
	Purchase Price

	 	 	34	 
	Qualifying Target

	 	 	34	 
	Qualifying Target EBITDA Multiple

	 	 	35	 
	Qualifying Target Mortgage Business

	 	 	34	 
	Rates

	 	 	21	 
	Referral Agent

	 	 	22	 
	Referral Survey

	 	 	22	 
	Rules

	 	 	47	 
	Settlement Services

	 	 	10	 
	Small Corp Notification

	 	 	34	 
	Small Corps

	 	 	10	 
	SRA Termination Event

	 	 	42	 
	STARS

	 	 	10	 
	Survey Failure

	 	 	23	 
	Surveys

	 	 	22	 
	Telephone Lines

	 	 	14	 
	Termination Assistance Period

	 	 	40	 
	Termination Assistance Services

	 	 	40	 
	URL

	 	 	10	 
	Venture Underwriting Guidelines

	 	 	18	 
	Website

	 	 	10	 
	World Wide Web

	 	 	11	 

viii

 

This STRATEGIC RELATIONSHIP AGREEMENT, dated as of January 31, 2005 (this “Agreement”),
is by and among Cendant Real Estate Services Group, LLC, a Delaware limited liability company
(“Cendant Real Estate”), Cendant Real Estate Services Venture Partner, Inc., a Delaware
corporation (the “Cendant Member”), PHH Corporation, a Maryland corporation (“PHH”),
Cendant Mortgage Corporation, a New Jersey corporation (to be renamed “PHH Mortgage Corporation”)
(“PMC”), PHH Broker Partner Corporation, a Maryland corporation (the “PHH Member”)
and PHH Home Loans, LLC, a Delaware limited liability company (the “Company”). Each of
Cendant Real Estate, the Cendant Member, PHH, PMC, the PHH Member and the Company is sometimes
referred to herein as a “Party” and, collectively, as the “Parties.”

W I T N E S S E T H:

WHEREAS, the PHH Member and the Cendant Member formed the Company on November 3, 2004, for the
principal purpose of originating and selling mortgage loans sourced through Cendant’s residential
real estate brokerage and corporate relocations businesses and from employees of Cendant and its
Subsidiaries, in accordance with the terms and provisions of this Agreement and the Operating
Agreement; and

WHEREAS, this Agreement sets forth, among other things, certain matters related to the
business relationship among the Parties.

NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants,
promises and agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally
bound, hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1      Definitions. As used in this Agreement, the following terms shall each have
the meaning set forth in this Article (unless the context otherwise requires). All capitalized
terms not otherwise defined herein shall have the meaning assigned to them in the Operating
Agreement.

“Additional Services” has the meaning set forth in Section 11.1(b).

“Affiliate” means, when used with reference to a specific Person, any Person that,
directly or indirectly, through one or more intermediaries, controls, is controlled by or is under
common control with such specific Person. For the avoidance of doubt, neither the Company nor any
of the “Brand Franchisees” shall be deemed to be an Affiliate of Cendant or any of Cendant’s
Affiliates.

“Agreement” has the meaning set forth in the preamble.

“Applicable Requirements” means, as of the time of reference, collectively, (A) with
respect to the Mortgage Loans, all of the following: (i) all contractual

 

 

obligations, including those contractual obligations contained in this Agreement, in any agreement with any investor or
insurer or in the applicable Mortgage Loan; (ii) all applicable federal, state and local legal and
regulatory requirements (including statutes, rules, administrative interpretations, regulations and
ordinances), including all Mortgage Lending Laws; (iii) all other applicable requirements and
guidelines of each investor, insurer, governmental agency, board, commission, instrumentality and
other governmental body or office having jurisdiction; (iv) all other applicable judicial and
administrative judgments, orders, stipulations, awards, writs and injunctions; and (v) the
reasonable and customary mortgage origination practices of prudent mortgage lending institutions
which make mortgage loans of the same type as the Mortgage Loans in the jurisdictions in which the
related mortgaged properties are located; and (B) the Foreign Corrupt Practices Act of 1977, as
amended.

“Brand Franchisee” means any residential real estate brokerage business that (i)
operates under a Cendant Real Estate Franchisee Brand and (ii) is not owned by Cendant Real Estate
or any of its Subsidiaries; provided, that the Parties acknowledge that the “Sotheby’s
International Realty” brand may not be included in this definition for certain aspects of this
Agreement.

“Cendant” means Cendant Corporation, a Delaware corporation.

“Cendant Competitor” has the meaning set forth in Section 10.1(c).

“Cendant Customer” means any customer of the Cendant Entities or any of their
respective Subsidiaries; provided, however, that for purposes of this Agreement the
term “Cendant Customer” shall not include any Brand Franchisee or any employee or independent sale
associate thereof acting in such capacity.

“Cendant Employees” means, collectively, all U.S.-based employees of Cendant and its
Subsidiaries.

“Cendant Entities” means, collectively, Cendant Real Estate and the Cendant Member.

“Cendant Indemnitees” has the meaning set forth in Section 13.3(a).

“Cendant Indemnitor” has the meaning set forth in Section 13.3(b).

“Cendant Member” has the meaning set forth in the preamble.

“Cendant Mobility” means Cendant Mobility Services Corporation, a Delaware Corporation.

“Cendant Mobility Broker Network” means the network of real estate brokers who have
executed agreements with Cendant Mobility to assist customers of Cendant Mobility clients in
acquiring or disposing of a home.

2

 

“Cendant Mobility Office” means any office comprising part of Cendant’s corporate
relocation business, including, without limitation, any office of Cendant Mobility or any of its
Subsidiaries.

“Cendant Owned Real Estate Office” means any residential real estate brokerage office
owned as of the date hereof or acquired or opened hereafter by Cendant Real Estate or one of its
Subsidiaries, including, without limitation, NRT.

“Cendant Owned Real Estate Offices Tradenames” means, collectively, the real estate
brand names or trade names owned or licensed as of the date hereof or acquired or licensed
hereafter by Cendant Real Estate or one of its Subsidiaries under which the Cendant Owned Real
Estate Offices operate, including those brand names and trade names listed in Exhibit A.

“Cendant Real Estate” has the meaning set forth in the preamble.

“Cendant Real Estate Franchisee Brands” means, collectively, the real estate brand
names or trade names owned or licensed as of the date hereof or acquired or licensed hereafter by
the franchisor Subsidiaries of Cendant Real Estate or one of its Subsidiaries, including those
brand names and trade names listed in Exhibit B; provided, that the Parties
acknowledge that the “Sotheby’s International Realty” brand may not be included in this definition
for certain aspects of this Agreement.

“Cendant Real Estate Services Division” means (i) the residential and commercial real
estate brokerage business owned and operated by NRT and its Subsidiaries; (ii) the relocation
business owned and operated by Cendant Mobility and its Subsidiaries; and (iii) the Settlement
Services business owned and operated by CSSG and its Subsidiaries (it being understood that for all
purposes of this Agreement, the Cendant Real Estate Services Division shall not include Century 21
Real Estate LLC, Coldwell Banker Real Estate Corporation, ERA Franchise Systems, Inc. and Sotheby’s
International Realty Affiliates, Inc.).

“Cendant Restricted Brands” means the “Sotheby’s International Realty” trade name and
any other real estate brand name or trade name that may be licensed or acquired by Cendant or any
of its Subsidiaries but which has not been licensed to PMC or an Affiliate thereof pursuant to
either the License Agreement or a similar agreement between Cendant or an Affiliate thereof, on the
one hand, and PMC or an Affiliate thereof, on the other hand.

“Cendant Websites” means (i) all Websites operated by, or on behalf of, any of the
Cendant Owned Real Estate Offices or the Cendant Mobility Offices and (ii) all Cendant Owned Real Estate Offices Tradename Websites and Cendant Real Estate
Franchisee Brand Websites operated by Cendant Real Estate, Cendant Mobility, or a Subsidiary
thereof, in either case through which inquiries or applications for Mortgage Loans may be made. For
the avoidance of doubt, the term “Cendant Websites” shall not include any Website operated by, or
on behalf of, any Brand Franchisee.

“Company” has the meaning set forth in the preamble.

3

 

“Company Loan Officers” has the meaning set forth in Section 3.3(b)(i).

“Company Pricing” has the meaning set forth in Section 3.2(a).

“Competitor Data Point” has the meaning set forth in Section 3.15(a).

“Competitors” has the meaning set forth in Section 3.15(c)(ii).

“Content” means, with respect to any Person, all content which such Person has created
or may hereafter create, has licensed or may hereafter license, or has acquired or may hereafter
acquire, in any form and in any medium now known or hereafter developed, including: (a) art,
audiovisual works, animations, cartoons, characters, choreography, compilations, collective works,
computer software and programs, data, designs, emblems, films, film clips, graphics, images,
illustrations, likenesses, literary works, logos, motion pictures, musical compositions, music
videos, performances, photographs, pictorial works, songs, song lyrics, sound recordings, scripts,
screenplays, templates, text, video recordings, copyrightable subject matter, works of authorship,
trade secrets (including customer and vendor lists), and other proprietary rights; (b) all rights
under copyright and moral rights associated with the foregoing; (c) all copyrightable derivative
works, enhancements, improvements, modifications, updates, new releases or other revisions of the
foregoing; (d) all publicity rights or privacy rights (or waivers or quitclaims thereof) of any
person or entity, and (e) all rights corresponding to the foregoing throughout the world.

“CSSG” means Cendant Settlement Services Group LLC, a Delaware limited liability
company.

“Cure Period” has the meaning set forth in Section 2.2(a).

“Customer” means any individual who contacts the Company, whether in person, by mail,
phone, via the Internet (including by electronic mail), or otherwise, or who is so contacted by the
Company, about the possibility of obtaining a Mortgage Loan through the Company, or who otherwise
obtains a Mortgage Loan from or through the Company.

“Customer Fees and Charges” means, with respect to any Mortgage Loan, an amount equal
to the sum of: (i) all reasonable charges or fees paid or incurred by the Mortgage Loan originator
for taking the Mortgage Loan application, locking-in Mortgage Loan Pricing, surveys, title insurance premiums, appraisal fees, abstract
and attorneys’ fees, recording or registration charges, escrow fees, document preparation fees,
credit report charges, tax service fees and similar charges, and all other reasonable and customary
third-party charges for settlement services contracted for and permitted by applicable law related
to the origination of a Mortgage Loan; and (ii) all origination and discount points or other
similar amounts described in the Mortgage Loan Pricing for such Mortgage Loan.

“Customer Information” means any personally identifiable information or records in any
form (written, electronic, or otherwise) relating to a Customer, including a

4

 

Customer’s name, address, telephone number, electronic mail address, loan number, loan payment history, delinquency
status, insurance carrier or payment information, tax amount or payment information, the fact that
the Customer has a relationship with the Company or the Cendant Entities or the Brand Franchisees
or their respective Affiliates and any other personally identifiable information.

“Customer Payment” has the meaning set forth in Section 3.3(a)(i)(C).

“Customer Survey” has the meaning set forth in Section 3.16(a).

“Dispute” has the meaning set forth in Section 13.11(a).

“Disputing Party” has the meaning set forth in Section 13.11(b).

“Domain Name” means the unique name that identifies an Internet site.

“FHLMC” has the meaning set forth in Section 3.5.

“FNMA” has the meaning set forth in Section 3.5.

“Franchisee Customer” means any customer of a Brand Franchisee that contacts PMC or an
Affiliate thereof, whether in person, by mail, phone, via the Internet (including by electronic
mail), or otherwise, or who is so contacted by PMC or such Affiliate, about the possibility of
obtaining a Mortgage Loan through PMC or an Affiliate thereof, or who otherwise obtains a Mortgage
Loan from or through PMC or an Affiliate thereof.

“Franchisee Customer Survey” has the meaning set forth in Section 8.12.

“Franchisee Key Customer Question” has the meaning set forth in Section 8.12.

“Franchisee Key Referral Question” has the meaning set forth in Section 8.12.

“Franchisee Mortgage Content” has the meaning set forth in Section 8.2(a)(ii)(A).

“Franchisee Referral Survey” has the meaning set forth in Section 8.12.

“Franchisee Surveys” has the meaning set forth in Section 8.12.

“Franchisee
Telephone Lines” has the meaning set forth in
Section 8.2(a)(i)(A).

“Guarantee” has the meaning set forth in Section 13.1(a).

“Guarantee Amount” has the meaning set forth in Section 3.3(a)(i)(C).

5

 

“HMDA” has the meaning set forth in the definition of “Mortgage Lending Law.”

“Hyperlink” means an electronic link providing direct access from one distinctively
marked place in a World Wide Web page to another place in the same or a different World Wide Web
page.

“Information Security Program” means the Company’s information security program to (i)
insure the security and confidentiality of Customer Information, (ii) protect against any
anticipated threats or hazards to the security or integrity of the Customer Information and (iii)
protect against unauthorized access to or use of the Customer Information that could result in
substantial harm or inconvenience to any Customer.

“Interagency Guidelines” has the meaning set forth in Section 7.2(b).

“Internet” means the electronic communications network that connects computer networks
and organizational computer facilities around the world.

“Internet Customer Payment” has the meaning set forth in Section 3.3(a)(ii)(D).

“Key Customer Question” has the meaning set forth in Section 3.16(a).

“Key Referral Question” has the meaning set forth in Section 3.16(a).

“Losses” has the meaning set forth in Section 13.3(a).

“Managing Member” means the PHH Member or such other member as may replace the PHH
Member as managing member pursuant to the Operating Agreement.

“Mediation Request” has the meaning set forth in Section 13.11(b).

“Mortgage
Content” has the meaning set forth in
Section 3.3(a)(ii)(A).

“Mortgage Lending Law” means any federal, state or local constitution, statute, rule,
regulation, order or similar legal or regulatory requirement applicable to: the communication with,
and marketing directed toward Mortgage Loan customers; the application process for Mortgage Loans;
the Pre-Approval Decision process; the processing of Mortgage Loan applications; the communication
to the customer of a Mortgage Loan underwriting decision; the closing and funding of a Mortgage
Loan; and the preparation, execution and delivery of Mortgage Loan Documents and Mortgage Loan
Disclosures. Mortgage Lending Laws include, but are not limited to, the following: (i) the record
keeping and reporting requirements of the Home Mortgage Disclosure Act (“HMDA”); (ii) the
Real Estate Settlement Procedures Act and Regulation X (24 C.F.R. Part 3500); (iii) the Fair
Housing Act; (iv) the Fair Credit Reporting Act; (v) the Flood Disaster Protection Act; (vi) the
Truth-in-Lending Act and (Regulation Z); (vii) the

6

 

National Housing Act; (viii) the Servicemen’s Readjustment Act; (ix) the Equal Credit Opportunity Act and (Regulation B); (x) any usury laws or
regulations; and (xi) the Homeowner’s Protection Act.

“Mortgage Loan” means a mortgage loan (including a home equity line of credit)
evidenced by one or more promissory notes and secured by a mortgage or deed of trust on one or more
residential real estate properties.

“Mortgage Loan Disclosure” shall mean any disclosure, notice or other document or
statement that, according to a Mortgage Lending Law, must be provided to a customer by or on behalf
of the Person originating the Mortgage Loan in connection with the origination, closing and funding
of a Mortgage Loan or an application for a Mortgage Loan.

“Mortgage Loan Documents” means the Mortgage Instruments, Mortgage Notes and
Assignments.

“Mortgage Loan Pricing” means the interest rates, discount points, loan origination
fees, loan application fee, closing costs and other associated cost elements for a Mortgage Loan.

“Mortgage Loan Types” means the various types of Mortgage Loans offered by the Company
from time to time.

“MSA” shall have the meaning set forth in the Operating Agreement.

“Non-Competitive” has the meaning set forth in Section 3.15(b).

“Nonperformance Jurisdiction” has the meaning set forth in Section 2.2(a).

“NRT” means NRT Incorporated, a Delaware corporation.

“Operating Agreement” means the Amended and Restated Limited Liability Company
Operating Agreement of the Company, dated as of January 31, 2005, as it may be amended from time to
time.

“Origination Channels” means the PIMI Origination Channel, Point of Sale Origination
Channel and the Other Origination Channels, together with any improvements made thereto from time
to time.

“Other Origination Channels” has the meaning set forth in Section 3.1.

“Party” or “Parties” has the meaning set forth in the preamble.

“PHH” has the meaning set forth in the preamble.

“PHH Affiliates” has the meaning set forth in Section 13.1(a).

“PHH Data Point” has the meaning set forth in Section 3.15(a).

7

 

“PHH Entities” means, collectively, PHH, PMC and the PHH Member.

“PHH Indemnitees” has the meaning set forth in Section 13.3(b).

“PHH Indemnitor” has the meaning set forth in Section 13.3(a).

“PHH Member” has the meaning set forth in the Preamble.

“PIMI Origination Channel” means the system of exclusive and dedicated toll-free
telephone lines, Websites, World Wide Web pages, electronic mail addresses, or other means of
remote electronic communication established from time to time to meet the Mortgage Loan needs of
the Customers and Franchisee Customers.

“Pipeline Loans” has the meaning set forth in Section 12.2(c).

“PLS” has the meaning set forth in Section 6.3.

“PMC” has the meaning set forth in the preamble.

“PMC Mortgage Loan Types” means the various types of Mortgage Loans now or hereafter
offered by PMC and its Affiliates.

“PMC Pricing” has the meaning set forth in Section 8.1.

“PMC Underwriting Guidelines” has the meaning set forth in Section 8.4.

“Point of Sale Origination Channel” means the system, including related software,
hardware and other facilities (including Telephone Lines, Websites, World Wide Web pages,
electronic mail addresses, or other means of communication) established from time to time to meet
the Mortgage Loan needs of Customers through Company Loan Officers located in or near Cendant Owned
Real Estate Offices and other field locations. The “Point of Sale Origination Channel” shall
include the origination channel referred to as the “My Choice” origination channel whereby loan
officers can take Mortgage Loan applications and submit them through the PIMI Origination Channel,
or through processing systems used in the PIMI Origination Channel.

“Pre-Approval Decision” means the process by which (i) the Company or PMC, as the case
may be, requests certain information from a Customer or Franchisee Customer, as the case may be,
and, with such customer’s permission, obtains a credit report on such customer; (ii) the Company or
PMC, as the case may be, analyzes the information provided by the Customer or Franchisee Customer,
as the case may be, and the credit report and (iii) then advises the Customer or Franchisee
Customer, as the case may be, whether or not it is likely that he or she will be approved for a
Mortgage Loan and, if so, the maximum amount of such Mortgage Loan.

“Premier Agent Program” means a program sponsored by PMC whereby certain real estate
agents whose real estate sales performances (based on buyer controlled sales, gross commission
income and/or sales volume) reach a target level are invited (at

8

 

their option) to participate in a program in which PMC provides certain resources, including telephone services (800 numbers and
priority handling), personalized marketing materials and post-closing customer gifts.

“Pricing Occurrence” has the meaning set forth in Section 3.15(a).

“Pricing Ratio” has the meaning set forth in Section 3.15(b).

“Privacy Requirements” has the meaning set forth in Section 7.2(b).

“Private Label Business Channel” means PHH’s and its Affiliates’ lending partners, the
financial institutions, the depository institution Subsidiaries of the foregoing and the investment
securities brokers/dealers utilizing a private label telemarketing program for first lien mortgage
loans.

“Programs” has the meaning set forth in Section 3.15(c)(i).

“Purchase Price” has the meaning set forth in Section 9.1(a).

“Qualifying Target” has the meaning set forth in Section 9.1(a).

“Qualifying Target EBITDA Multiple” has the meaning set forth in Section 9.1(a)(i).

“Qualifying Target Mortgage Business” has the meaning set forth in Section 9.1(a).

“Rates” has the meaning set forth in Section 3.15(a).

“Referral Agent” has the meaning set forth in Section 3.16(a)

“Referral Survey” has the meaning set forth in Section 3.16(a).

“Rules” has the meaning set forth in Section 13.11(b).

“Settlement Services” means the provision of title, closing, escrow or search-related
services for residential real estate transactions and all other mortgage-related transactions
(including, without limitation, first mortgage loans, second mortgage loans, home equity lines of
credit, other home equity loans and refinance transactions), including the issuance of title
insurance policy (including title search procedures), property tax tracking service and closing
escrow service; provided, however, that Settlement Services shall not include, by way
of example, credit review services, appraisal review services or flood zone determinations for
properties.

“Small Corp Notification” has the meaning set forth in Section 9.1(a).

“Small Corps” means, collectively, the companies listed in Exhibit C.

“SRA Termination Event” has the meaning set forth in Section 12.2(a).

9

 

“STARS” means Speedy Title and Appraisal Review Services LLC, a Delaware limited
liability company.

“Survey Failure” has the meaning set forth in Section 3.16(b).

“Surveys” has the meaning set forth in Section 3.16(a).

“Telephone Lines” has the meaning set forth in Section 3.3(a)(i)(A).

“Termination Assistance Period” has the meaning set forth in Section 11.1(a).

“Termination Assistance Services” has the meaning set forth in Section 11.1(a).

“URL” means the address of a computer or a document on the Internet that consists of a
communications protocol followed by a colon and two slashes (as http://), the identifier of a
location of computer, or a path through a directory to a file.

“Venture Underwriting Guidelines” has the meaning set forth in Section 3.5.

“Website” means a group of World Wide Web pages containing Hyperlinks to each other.

“World Wide Web” means the part of the Internet designed to allow easier navigation
through the use of graphical user interfaces and Hyperlinks between different URLs.

Section 1.2      Interpretation. Each definition in this Agreement includes the singular
and the plural, and reference to the neuter gender includes the masculine and feminine where
appropriate. References to any statute or Treasury Regulations means such statute or regulations
as amended at the time and include any successor legislation or regulations. The word “including”
or any variations thereof means “including, without limitation” and shall not be construed to limit
any general statement that it follow to the specific or similar items or matters immediately
following it. The headings to the Articles and Sections are for convenience of reference and shall
not affect the meaning or interpretation of this Agreement. Except as otherwise stated, reference
to Articles, Exhibits, Sections and Schedules mean the Articles, Exhibits, Sections and Schedules
of this Agreement. The Exhibits and Schedules are hereby incorporated by reference into and shall
be deemed a part of this Agreement.

ARTICLE II

EXCLUSIVITY; MARKETING

10

 

Section 2.1      Exclusivity; Marketing.

(a)           The Cendant Entities hereby agree that, except as set forth below or elsewhere in this
Agreement, the Cendant Real Estate Services Division shall exclusively recommend the Company as
provider of Mortgage Loans to (a) the independent sales associates affiliated with a Cendant Entity
or any Subsidiary thereof (provided that, for the avoidance of doubt, this clause (a) shall not
include any independent sale associate of a Brand Franchisee acting in such capacity), (b) all
Cendant Customers, and (c) all Cendant Employees. The Cendant Entities further agree that the
Cendant Real Estate Services Division shall actively and exclusively promote the
Company and its Mortgage Loan origination services to Cendant Customers and Cendant Employees;
provided, however that:

(i)      the Cendant Real Estate Services Division shall not be required, in any
manner whatsoever, to condition doing business with a customer on such customer
obtaining a Mortgage Loan from, having to contact, or having to agree to be
contacted by, the Company; and

(ii)      the Company and PMC acknowledge that neither Cendant nor any of its
Affiliates have the right to co-brand with a Person that is not a Cendant
Affiliate the “Sotheby’s International Realty” name and mark and that all
marketing materials directed to the customers of the Sotheby’s brand will be
branded as “PHH Home Loans.”

(b)           For the avoidance of doubt, for purposes of this Section 2.1, the “Cendant Real Estate
Services Division” shall not include Cendant’s and its Affiliates’ hospitality services business,
including the business of selling vacation ownership and fractional ownership interests, or any
successor business thereto.

Section 2.2      Termination of Exclusivity. Notwithstanding anything to the contrary
contained in this Agreement:

(a)           The Cendant Entities shall have the right to terminate the exclusivity provisions of
Section 2.1, following notice and an opportunity to cure within the applicable Cure Period set
forth below, (i) if the Company is prohibited by law, regulation, rule, order or other legal or
regulatory restriction, or for any other reason, from performing its origination function in any
jurisdiction (the “Nonperformance Jurisdiction”), but in such case exclusivity shall only be
terminated with respect to the Nonperformance Jurisdiction; (ii) in the event there is a material
violation or breach by PHH or any of its respective Affiliates (including the PHH Member acting in
any capacity whatsoever, including as Managing Member) of any representation, warranty, covenant or
other agreement contained in this Agreement or any other Transaction Document; or (iii) upon the
occurrence of a “PHH Regulatory Event” or a “Company Regulatory Event,” as each are defined in the
Operating Agreement. The “Cure Period” shall be (x) in the case of (ii) and (iii) above,
thirty (30) calendar days after notice of such event has been provided by any of the Cendant
Entities to the PHH Entities; provided,

11

 

however, that PHH shall have an additional
thirty (30) day cure period (other than in respect of breaches resulting from payment defaults) if
it is diligently pursuing a cure and the Cendant Member, in its reasonable judgment, believes that
the event will be cured within such extension period, and (y) in the case of (i) above, ninety (90)
calendar days after notice of such event has been provided by any of the Cendant Entities to the
PHH Entities; provided, however, that PHH shall have an additional thirty (30) day
cure period if it is diligently pursuing a cure and the Cendant Member, in its reasonable judgment,
believes that the event will be cured within such extension.

(b)           The exclusivity provisions of Section 2.1 shall not be applicable to any Cendant Owned
Real Estate Office or Cendant Mobility Office acquired by Cendant Real Estate, Cendant Mobility or
any of their respective Subsidiaries after the date hereof, which at the time of such acquisition
is subject to an agreement, arrangement or understanding with respect to the origination of
Mortgage Loans for customers of such office that would conflict with the provisions of this
Agreement; provided, however, that nothing in this Section 2.2(b) shall affect any of
the obligations of the Parties pursuant to Article IX hereof.

Section 2.3      Marketing. The Cendant Entities shall, and shall cause their Subsidiaries
to, cooperate with and support the Company in the marketing of Mortgage Loans through the
Origination Channels to Cendant Customers and Cendant Employees, and arrange for the Company to
have reasonable access thereto. Cendant Real Estate shall make information provided by the Company
related to the Origination Channels available to its and its Subsidiaries’ employees, sales agents
and sales associates and provide other information to its sales agents and sales associates with
respect to such Origination Channels as Cendant Real Estate may deem appropriate in its sole
discretion. Cendant Real Estate shall use its commercially reasonable best efforts to ensure that
each Cendant Owned Real Estate Office and Cendant Mobility Office, and their respective office
managers, agents and sales associates, to the fullest extent practicable, market the goods and
services which are the subject of the Origination Channels, it being understood that such
“commercially reasonable best efforts” shall not include taking actions against any sales
associates which Cendant Real Estate reasonably believes will have any negative impact on its
business.

Section 2.4      Variable Compensation. Without reimbursement by any PHH Entity or the
Company, Cendant Real Estate may pay, or cause to be paid, to each NRT and/or Cendant Mobility
office manager that is an employee of Cendant Real Estate or a Subsidiary thereof a variable
component of annual compensation, which component may be based on either (i) the volume of Mortgage
Loans originated by such manager’s Cendant Owned Real Estate Office or Cendant Mobility Office, as
the case may be, (ii) penetration rate of Mortgage Loans, or (iii) any other measure;
provided, however, that Cendant shall have sole control over determining the form of
such program and the right to modify or terminate any such program at any time, so long as such
program is replaced with another program, policy or arrangement that, in Cendant’s sole and
exclusive discretion, is intended to incentivize NRT and/or Cendant Mobility office managers.

12

 

ARTICLE III

LOAN ORIGINATION

The Company shall, and the PHH Member shall cause the Company to, operate in accordance with
the provisions of this Article III.

Section 3.1      Marketing. The Company shall market the PIMI Origination Channel, Point of
Sale Origination Channel and any other origination channels that may be developed by the Company
(“Other Origination Channels”), at its expense, to Cendant Customers and Cendant Employees,
and shall secure, at its expense, such forms of insurance coverage and other protection from
liability as is customary in the industry for similar originators of Mortgage Loans, including but
not limited to insurance coverage and protections from liability for the acts or failures of its
employees, officers, agents and other representatives.

Section 3.2      Mortgage Loan Types.

(a)           The Company shall offer to the Customers a variety of Mortgage Loan Types in order to
permit Customers to select a Mortgage Loan Type best suited to their financial needs. The Company
shall be responsible for developing the various Mortgage Loan Types and establishing the Mortgage
Loan Pricing associated therewith (the “Company Pricing”); provided, however,
that the Company shall offer to the Customers the full range of Mortgage Loan Types that are
currently offered or may in the future be offered by PHH or any of its Affiliates to their
customers.

(b)           From time to time, the Cendant Entities may request that a Mortgage Loan Type not offered
by the Company be made available to Customers pursuant to this Agreement and the Company shall,
and the PHH Member shall cause the Company to, make such Mortgage Loan Type available to Customers.
Upon such request, the Parties shall mutually agree upon the cost allocation of the set-up and
processing functions to be implemented by the Company and the PHH Entities to accommodate the
Cendant Entities’ request. The Parties acknowledge that the typical start-up time necessary for
any such product is 6 to 8 weeks from the time the Parties mutually agree to make such product
available.

Section 3.3      Company Origination Channels.

(a)           PIMI Origination Channel. The Company’s PIMI Origination Channel shall be operated
in accordance with the provisions of this Section 3.3(a).

(i)      Telephone Lines.

(A)      The Company shall provide to the Cendant Owned Real Estate Offices,
Cendant Mobility Offices and participants in the Cendant Real Estate Services
Division’s Premier Agent Program, dedicated and exclusive toll-free telephone
lines established and

13

 

operated at the expense of and by the Company (“Telephone
Lines”), which the Company reasonably believes are adequate to meet the
reasonably anticipated needs of the current and prospective Customers.

(B)      Trained Company personnel shall answer Telephone Lines in the name of (i)
the appropriate Cendant Owned Real Estate Offices Tradename, if such Telephone
Line has been assigned to a Cendant Owned Real Estate Office; provided,
however, that the Telephone Lines dedicated to a Cendant Owned Real Estate
Office operating under a Cendant Restricted Brand shall be answered in the name of
“PHH Home Loans,” (ii) “PHH Home Loans,” if such Telephone Line has been assigned
to a Cendant Mobility Office, (iii) the appropriate Small Corps entity, if such
Telephone Line has been assigned to the Point of Sale Origination Channel, or (iv)
the appropriate Cendant Owned Real Estate Offices Tradename, if such Telephone
Line has been assigned to the Premier Agent Program, as the case may be. Such
personnel shall explain to the Customer, as appropriate: (a) the procedure to be
followed in obtaining a Mortgage Loan; (b) the various Mortgage Loan Types
available and their associated Mortgage Loan Pricing; and (c) their short- and
long-term financial implications. Such personnel shall provide counsel and advice
to the Customer as to the Mortgage Loan Types that might best serve the Customer’s
needs, including answering any questions the Customer might have regarding the
process.

(C)      The Company shall provide each Customer who utilizes the Telephone Lines
with a same day Pre-Approval Decision and Guarantee. A “same day” Pre-Approval
Decision and Guarantee means that the Company will provide the Customer with a
Pre-Approval Decision during the same day the Customer provided the Company with
the information requested from the Customer for purposes of making a Pre-Approval
Decision for that Customer or, if the Company does not provide the Customer with
such a Pre-Approval Decision, the Company will promptly pay the Customer the
Guarantee Amount (a “Customer Payment”). The Cendant Entities and their
respective Subsidiaries shall have the right to publicize and advertise to their
customers the availability of such Pre-Approval Decisions and Guarantees in
accordance with all Mortgage Lending Laws. For purposes of this Agreement, the
“Guarantee Amount” shall mean an amount equal to the higher of (a) $250 and
(b) such other amount as may be offered by PMC or any Affiliate thereof to
customers under a similar program (exclusive of client subsidized programs).

(D)      The Company will provide to Customers for whom it has made a Pre-Approval
Decision and which Customer is likely to be approved for a Mortgage Loan
information tailored to the Customer’s individual circumstances. Such information
will be designed to enable the Customer to determine the nature of the

14

 

Mortgage Loan the Customer may qualify for if an appropriate property securing the Mortgage
Loan is identified and all information submitted is verified.

(ii)      Internet.

(A)      The Company will take applications for Mortgage Loans via the Internet.
In order to accomplish this, the Company will provide each operator of a Cendant
Website with Hyperlinks to such Content as the Company reasonably believes is
adequate to meet the reasonably anticipated needs of the current and prospective
Customers (the “Mortgage Content”). The Cendant Entities shall, and shall
cause their respective Subsidiaries to, embed such Hyperlinks prominently in a
consumer oriented and contextually relevant position on each Cendant Website. The
Parties will cooperate in structuring and embedding such Hyperlinks so that, by
clicking on the Hyperlink at the Cendant Websites, the Customer will be
immediately transferred to the Mortgage Content via the Internet. Except in the
case of Cendant Restricted Brands, such Mortgage Content will be presented by the
Company in such a way that it will appear as if it were on a World Wide Web page
or series of World Wide Web Pages on the Cendant Website from which the Hyperlink
originated to the extent it is consistent with Applicable Requirements to do so.
The form and substance of such World Wide Web pages will be subject to the prior
written consent of the Cendant Entities. In order to improve the graphical
compatibility of the Cendant Websites and the Company’s sites, the Company and the
Cendant Entities will consult with each other when developing or modifying such
World Wide Web pages, and also when considering the design of future releases of
their respective Websites. The Company shall not permit the Mortgage Content
accessed by Customers via Hyperlinks from the Cendant Websites contemplated by
this Agreement to display any advertising, except in such instances where the
Cendant Entities have provided their prior written consent to such advertising.

(B)      The Mortgage Content will include information about the Mortgage Loans
and Mortgage Loan Types, Mortgage Loan calculators, counseling regarding down
payments and Mortgage Loan affordability, pre-qualification tools to be used by
consumers and Mortgage Loan application modules. The Company will ensure that a
Customer shall be able to complete and submit a Mortgage Loan application by means
of the Mortgage Content without any other contact with the Company.

(C)      Customers utilizing the Mortgage Content to initiate the Mortgage Loan
process will be offered the option of communicating with a processing team or
other persons contemplated in

15

 

Section 3.9 of this Agreement, either by electronic mail or by telephone, or by a combination of electronic mail and telephone.

(D)      Each Customer initiating the origination process via the Internet shall
receive a Pre-Approval Decision within 24 hours of the time such Customer either
(i) submits a complete Mortgage Loan application via the Mortgage Content, or (ii)
first speaks with a Company loan consultant by telephone after submitting certain
information not constituting a complete Mortgage Loan application through the
Mortgage Content, or the Company shall promptly pay the Customer the Guarantee
Amount (the “Internet Customer Payment”).

(b)           Point of Sale Origination Channel.

(i)      Cendant Real Estate shall have the right to request at any time that the
Company designate a specific number of loan officers (“Company Loan
Officers”) to be located in and around any Cendant Owned Real Estate Office
and other field locations identified by Cendant Real Estate, provided that the
number of Company Loan Officers requested shall be commercially reasonable. The
Company shall use reasonable best efforts to satisfy any such request within 90
days after it is first delivered in writing to the Company.

(ii)      Company Loan Officers will be Company employees and will take loan
applications from Customers in a face-to-face setting, unless Cendant Real Estate
and the Company agree otherwise. Company Loan Officers will promptly transmit
applications taken in a face-to-face setting to the Company via the Point of Sale
Origination Channel, unless Cendant Real Estate and the Company agree otherwise.
The Company shall provide dedicated Telephone Lines for Company Loan Officers that
use the “My Choice” origination channel described in the definition of “Point of
Sale Origination Channel.”

(iii)      The Company shall pay Cendant Real Estate a fee for the lease or
sublease of the office space occupied by any Company Loan Officer in any Cendant
Owned Real Estate Office, in each case as set forth in the Master Sublease
Agreement, as defined in the Operating Agreement.

Section 3.4      Mortgage Loan Application Processing. For each Customer who applies for a
Mortgage Loan through the origination channels described in Section 3.3, the Company shall arrange
for the receipt by the Customer, as promptly as practicable under the circumstances, and in any event in
accordance with applicable law, of (i) the Mortgage Loan application for the Customer to review and
sign, accompanied by a request for appropriate Customer documents and (ii) all Mortgage Loan
Disclosures. In addition, and to the extent required or permitted under the Venture Underwriting
Guidelines, as applicable, the Company shall: (i) verify the Customer’s credit history; (ii)

16

 

obtain an appraisal or other appropriate valuation of the real property that will secure the Customer’s
Mortgage Loan; (iii) cause to be conducted a review of or report on the status of the legal title
to the real property prepared by either (A) CSSG, if the Company is permitted to make the service
provider decision under Applicable Requirements, or (B) a qualified title company or other entity
acceptable to the PHH Member and the Cendant Member, if the Company does not make the service
provider decision; (iv) evaluate the Customer’s employment history; (v) evaluate any information
provided with respect to the Customer by a Cendant Entity or any of their respective Subsidiaries,
(vi) perform such other underwriting functions as the Company deems appropriate, all in accordance
with the Venture Underwriting Guidelines; and (vii) communicate a loan decision or counteroffer to
the Customer in accordance with all applicable laws.

Section 3.5      Underwriting Guidelines. The Company shall develop appropriate underwriting
guidelines for each Mortgage Loan Type (the “Venture Underwriting Guidelines”), which
Venture Underwriting Guidelines shall be consistent with the underwriting guidelines followed by
PHH and its Affiliates in connection with Mortgage Loans offered to their own customers for the
same products in the same geographic area and at the same time. Unless the Venture Underwriting
Guidelines specify otherwise for specific Mortgage Loan Types, all Mortgage Loans shall be
underwritten in accordance with the standards of the Federal Home Loan Mortgage Corporation
(“FHLMC”), the Federal National Mortgage Association (“FNMA”) and other applicable
federal agencies providing standards for the sale of loans in the secondary market for mortgage
loans. The Company shall issue approval letters on those applications which generally satisfy the
Venture Underwriting Guidelines.

Section 3.6      Degree of Care. The Company shall perform the origination, processing,
underwriting, approval, closing, shipping, and other origination services on all Mortgage Loans in
all material respects in accordance with all Mortgage Lending Laws and with no less degree of care
than PMC or any of its Affiliates exercises in originating Mortgage Loans for its own account or
the account of any third party with a similar regulatory profile, provided, that in no event
shall the Company exercise a lesser degree of care than PMC exercised in originating Mortgage Loans
prior to the Closing Date.

Section 3.7      Mortgage Loan Closing. The Company shall use its best efforts to complete
the processing and closing of all Mortgage Loans originated pursuant to this Agreement in the time
frame requested by the Customer at the time of submission of the Mortgage Loan application. The
Company shall: (i) prepare all required Mortgage Loan closing documents in accordance with all
applicable Mortgage Lending Laws; (ii) arrange for their execution by the Customer; (iii) provide
the Customer with a copy of the Company’s privacy policy in accordance with the Privacy
Requirements; and (iv) arrange for the Mortgage Loan closing. All Mortgage Loans shall be closed
in the name of the Company or the name under which the Company is doing business in the appropriate
jurisdiction. On purchase money Mortgage Loans, the Company shall meet the closing date set by the
Customer or the Company shall reduce the interest rate payable on that Customer’s Mortgage Loan by
one-eighth percent (1/8%) for the life of loan. For refinance loans, the Company shall use its
best efforts (taking

17

 

into consideration factors such as periods of high volume loan refinance
activity (as substantiated by the Refinance Application Index as promulgated by the Mortgage
Bankers Association)) to perform its obligations hereunder to complete the processing and closing
within sixty (60) days from the date of application.

Section 3.8      Company Personnel.

(a)           The Company will provide, supervise and make available such personnel as are reasonably
necessary to carry out the Company’s obligations under this Agreement. Such personnel, including
rate lock personnel, shall be available between the hours of 8:30 a.m. and 10:00 p.m. Eastern time,
or such additional hours as may be required by operating conditions and requested by the Cendant
Entities, on Business Days. Such personnel, excluding rate lock personnel, shall also be
available, as needed, to process Mortgage Loans and contact Customers, between the hours of 10 a.m.
and 7 p.m., Eastern time, or such additional hours as may be required by operating conditions and
requested by the Cendant Entities, on Saturdays and Sundays, except in those instances where a
Saturday falls on or near a national holiday and the Company provides reasonable advance notice to
Cendant Real Estate in writing that its facilities will be closed on any such day.

(b)           The Company shall at all times permit employees of Cendant Real Estate and its
Subsidiaries access to the Company’s offices (including offices where it conducts Mortgage Loan
origination services) during the Company’s working hours to observe the origination, processing and
closing of the Mortgage Loans. The Company shall, at its expense, make available all customary,
reasonable office space, facilities, and equipment for such employees. The salaries, travel,
subsistence and other related expenses for such employees shall be borne by Cendant Real Estate.

Section 3.9      Processors. The Company shall cause each Customer who makes an application
for a Mortgage Loan to be processed through any of the origination channels described in Section
3.3 to be served by a processing team or other persons employed by the Company and determined by
the Company to be most efficient under the circumstances. The Company shall cause each such
processing team or other persons to serve the Customer throughout the entire process of Mortgage
Loan application, processing, underwriting and closing, and to use best efforts to meet the
Customer’s closing date.

Section 3.10      Access. At any time, upon the Cendant Member’s request, the Company shall
afford to the officers, employees, accountants, counsel and other representatives of any of the
Cendant Entities, as well as any regulatory officials with regulatory authority over any of the
Cendant Entities or their respective Affiliates, access to all its properties, books, contracts,
commitments, records, officers, employees, accountants, counsel and other representatives.
Furthermore, each of the Company, the PHH Member and PMC, at their sole cost and expense, shall
make available, or cause to be made available, to the Cendant Member all information concerning the
Company’s business, properties and personnel as the Cendant Member may reasonably request.

18

 

Section 3.11      Maintenance of Licenses. The Company shall, at its own cost and expense,
obtain and maintain any and all licenses and registrations, and cause each of its employees to
obtain any and all licenses and registrations, that are necessary or desirable in the performance
of the Mortgage Loan origination services to be provided by the Company pursuant to the terms of
this Agreement.

Section 3.12      Record Keeping.

(a)           The Company shall maintain at all times a system that tracks accurately and verifiably the
number and dollar volume of Mortgage Loans originated by the Company and the Company’s revenue and
expense items including income and net profits.

(b)           The Parties shall develop and maintain commercially reasonable, appropriate and
cost-effective voice, data, facsimile and e-mail processes and systems to support communication
between them. Each Party shall pay the costs it incurs in developing such communications.

Section 3.13      Legal and Regulatory Compliance.

(a)           Actions taken or not taken by the Company, and all communications made by the Company, in
each case when performing its obligations under this Agreement shall comply in all material
respects with the requirements of all applicable Mortgage Lending Laws.

(b)           Actions taken or not taken by any of the Cendant Entities, and all communications made by
any of them, in each case when performing its obligations under this Agreement, shall comply in all
material respects with the requirements of applicable Mortgage Lending Laws.

(c)           The Company shall keep in full effect its existence, rights and franchises in the state of
its incorporation except as permitted herein or in the Operating Agreement, and will obtain and
preserve its qualifications to do business as a foreign entity in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and enforceability of this Agreement or any of the Mortgage Loans and/or
to perform its duties under this Agreement.

(d)           The Company shall not engage in activities in performing origination services hereunder
that generally would be reasonably likely to be determined by the relevant regulatory agency to be
prohibited as “predatory.”

(e)           Each of the Company and PMC shall promptly inform the Cendant Member in writing of any
notices, inquiries or other communications, written or oral, received by the Company, or by PMC or
the PHH Member, respectively, with respect to any material legal, administrative, arbitral or other
proceedings, claims, actions or governmental or regulatory investigations or findings with respect
to Mortgage Loans originated, closed and funded by the Company or any action or omission of the
Company in connection therewith.

19

 

(f)           Any fine, penalty, levy or restitution ordered by any such federal or state body that
would give rise to indemnity by a PHH Entity pursuant to Section 13.3 of this Agreement shall be
paid by PHH or, if a Cendant Entity or any Affiliate thereof shall have paid any such amount, PHH
shall immediately reimburse the Cendant Member for such amount.

Section 3.14      Customer Fees and Charges.

(a)           At the closing of any Mortgage Loan and at such other times as may be customary, the
closing agent may collect from the Customer and forward to the Company the Customer Fees and
Charges for such Mortgage Loan.

(b)           The amount, payor and payee of any Customer Fees and Charges shall be described in the
Mortgage Loan Disclosures in accordance with the Mortgage Lending Laws. The Company shall retain
and distribute the Customer Fees and Charges to third parties, including settlement service
providers, in accordance with applicable law, this Agreement and the arrangements governing such
relationships. The Company covenants and agrees that the payment of Customer Fees and Charges to
third parties shall be made in a timely manner and in accordance with payment terms governing such
relationships.

Section 3.15      Pricing Standards.

(a)           On Friday of each week, PMC shall cause its pricing department to conduct a survey of
interest rates, inclusive of points and fees (“Rates”), in the relevant marketplaces for
Wednesday of that week, offered by the Competitors for each of the Programs. Each Rate applicable
for each Program of each Competitor shall be charted as a “Competitor Data Point.” Also on
Friday of each week, PMC shall chart the Rates offered to customers of the Private Label Business
Channel for substantially similar Programs on Wednesday of that week (each, a “PHH Data
Point”) against the corresponding Competitor Data Points. Each instance in which the PHH Data
Point reflects a higher Rate than the corresponding Competitor Data Point shall be deemed to be a
“Pricing Occurrence.” There will initially be eighty (80) Competitor Data Points and sixteen (16) PHH Data Points for each
bi-monthly period (assuming eight-week bi-monthly periods). At the end of each bi-monthly period,
PMC shall review the number of Pricing Occurrences for the previous period and shall deliver to the
Cendant Member a written report detailing the Competitor Data Points, PHH Data Points and Pricing
Occurrences for such bi-monthly period together with all other relevant market and other data for
such bi-monthly period so as to enable the Cendant Member to review the competitiveness of the
Company’s pricing over such bi-monthly period.

(b)           In the event the ratio (expressed as a percentage) obtained by dividing the total number
of Pricing Occurrences by the total number of Competitor Data Points (the “Pricing Ratio”)
is *CONFIDENTIAL.

20

*The term
“Confidential” 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.

 

(c)      For purposes of this Agreement:

(i)      “Programs” shall mean collectively, the programs listed in
Schedule 3.15(c)(i) hereto; provided, however, that such list
may be modified by the Cendant Entities from time to time in their sole discretion
by giving written notice to PMC; provided further, however,
that such list may not be so modified by the Cendant Entities more than twice in
any twelve-month period; and

(ii)      “Competitors” shall mean, collectively, the five (5) Persons
listed in Schedule 3.15(c)(ii) hereto; provided, however,
that such list may be modified by the Cendant Entities from time to time in their
sole discretion by giving written notice to PMC; provided further,
however, that such list may not be so modified by the Cendant Entities more
than twice in any twelve-month period.

Section 3.16      Service Standards.

(a)           With respect to all closed Mortgage Loans, the Company shall conduct a survey of the
related Customer contemporaneously with the closing (the “Customer Survey”) and a survey of
the Cendant Employee or independent sales associates affiliated with the Cendant Entity (the
“Referral Agent”) that referred such Customer (the “Referral Survey” and, together
with the Customer Survey, the “Surveys”) for the purpose of assessing overall satisfaction
levels relating to the Company’s performance as loan originator. The Company shall administer such
Surveys and shall provide the results of the Surveys to the Cendant Member on a monthly basis.
Schedule 3.16(a) hereto sets forth an example of the content of such Surveys;
provided, however, that the Cendant Entities shall have the right to amend such
Surveys from time to time in their sole discretion; provided further, however, that (i) the Referral Survey shall always contain the question
“would you recommend a PHH Home Loan Mortgage Loan to another client?” (the “Key Referral
Question”), and (iii) the Customer Survey shall always contain the question “Would you
recommend [us] to a friend/another person?” (the “Key Customer Question”). The Cendant
Entities shall (A) have the right to review and audit all Survey responses at any time, and (B)
have the right, but not the obligation, to disseminate such Surveys once annually at its option.

(b)     
     The Company shall maintain a
*CONFIDENTIAL or greater rate of customer satisfaction on Customer
Surveys received during each calendar month as measured by the percentage of positive responses to
the Key Customer Question and a *CONFIDENTIAL or greater rate of satisfaction on Referral Surveys
received during each calendar month as measured by the percentage of positive responses to the Key
Referral Question (the failure of either or both Survey(s) to obtain such satisfaction level in a
given month, a “Survey Failure”). The Parties hereby agree that failure to maintain either
satisfaction level shall result in damage amounts to be payable by the Company upon demand in
immediately available funds, in the manner set forth in Schedule 3.16(b) hereto.

21

*The term
“Confidential” 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.

 

(c)           Notwithstanding paragraph (b) above, during any calendar month during which PHH and its
Subsidiaries experience a volume of loan refinance activity which
exceeds an average level of *CONFIDENTIAL
for such month on the Refinance Application Index promulgated by the Mortgage Bankers Association,
the satisfaction levels required for all purposes under paragraph (b) with respect to Surveys
conducted for such month shall be *CONFIDENTIAL for the Customers
Surveys and *CONFIDENTIAL for the Referral Surveys.

(d)           A “PHH Material Breach,” as defined in Section 8.1(c) of the Operating Agreement, shall be
deemed to have occurred (it being understood and agreed that such breach is not curable) if the
Company shall fail to maintain a satisfaction rate of at least *CONFIDENTIAL for either of the Customer
Surveys or the Referral Surveys for nine (9) consecutive months; provided, that if during
any such month, refinance activity meets the level described in paragraph (c) above, the Company
shall only be required to achieve an *CONFIDENTIAL satisfaction rate for the Referral Surveys and the
Customer Surveys for such month.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

Section 4.1      Representations. Each of the Cendant Entities hereby represents and
warrants to the PHH Entities, and each of the PHH Entities and the Company hereby represents and
warrants to the Cendant Entities, as of the date hereof and throughout the term of this Agreement,
that:

(a)           Such Party is a corporation, limited liability company, partnership or business trust duly
organized, validly existing and in good standing under the laws of its jurisdiction of
incorporation or organization. Such Party has full right, power and authority to execute and
deliver this Agreement and to perform each of its obligations hereunder.

(b)           All necessary action, corporate or otherwise, on the part of such Party necessary to
authorize the execution and delivery by such Party of this Agreement and the performance by such
Party of its obligations hereunder has been taken, and no further action on the part of such Party
is necessary for such authorization. This Agreement has been duly authorized, executed and
delivered by such Party and (assuming due authorization, execution and delivery by the other
Parties), constitutes a legal, valid and binding obligation of such Party enforceable against such
Party in accordance with its terms.

(c)           No consent, approval or authorization of, or filing or registration with, any governmental
or regulatory authority or any other Person (other than such as have been obtained or made by such
Party) is required to be made or obtained by such Party in connection with the execution, delivery
and performance of this Agreement and the consummation of the transactions contemplated by this
Agreement.

22

*The term
“Confidential” 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.

 

(d)           Neither the execution and delivery of this Agreement by such Party nor the consummation by
such Party of the transactions contemplated hereby, nor compliance by such Party with any of the
terms or provisions hereof, will (i) conflict with or result in a breach of any provision of the
certificate of incorporation, by-laws or similar governing documents of such Party or (ii) assuming
the consents, permits, authorizations, approvals, filings and registrations previously disclosed in
writing by such Party to the other Parties are obtained or made (x) violate any statute, code,
ordinance, rule, regulation, judgment, order, write, decree or injunction applicable to such Party
or any of its properties or assets or (y) violate, conflict with, result in a breach of any
provisions of, constitute a default (or an event which, with notice or lapse of time, or both,
would constitute a default) under, result in the termination of, accelerate the performance
required by, or result in a right of termination or acceleration or the creation of any encumbrance
upon any of the properties or assets of such Party under, any of the terms, conditions or
provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or
other instrument or obligation to which such Party is a party, or by which its properties or assets
may be bound or affected, except, in the case of clause (ii), for such violations, conflicts,
breaches or defaults which, either individually or in the aggregate, would not prevent or
materially hinder or delay such Party’s ability to consummate the transactions contemplated hereby
or perform its obligations hereunder.

ARTICLE V

CENDANT REAL ESTATE COVENANTS

Section 5.1      Cendant Real Estate Trade Shows, Conferences and Conventions.

(a)           Cendant Real Estate shall use reasonable efforts to reserve for the Company and PMC (and
not any other Mortgage Loan originator), at each real estate business trade show and Cendant
Mobility Conference which Cendant Real Estate or any of its Affiliates organizes: (1) no less than
two standard sized booths at a mutually agreeable location prominent to visitors to such trade
shows and international business conferences, subject to the same terms and conditions (including
registration and other fees) applicable to other participants; and (2) a meaningful opportunity for
a Company representative to speak at break-out sessions (if any) during such conferences for such
amount of time as shall be mutually agreed upon by Cendant Real Estate and PMC.

(b)           Cendant Real Estate shall provide to the Company, and not any other Mortgage Loan
originator, the opportunity (at no charge to the Company) for a senior member of the Company’s (or
PMC’s) management to speak at the annual real estate brokerage convention/conference and annual
Cendant Mobility conference sponsored by Cendant Real Estate or its Affiliates, subject to Cendant
Real Estate’s approval of individual and script. The Company and PMC shall abide by all reasonable
rules established by Cendant Real Estate for each such convention or conference, including payment
of any non-speaking fees charged to other participants and attendees.

23

 

(c)           Cendant Real Estate shall provide to the Company (subject to the payment of any fees
charged to other event sponsors) a “premier” (or the highest level that may exist) sponsorship at
all national conventions and regional or local conferences under the control of Cendant Real Estate
that relate to the real estate brokerage business or the corporate relocation business.

(d)           At the Cendant Member’s request, the Company shall direct Company representatives (in such
number and of such seniority as the Cendant Member may reasonably request) to attend, at the
Company’s expense, such real estate business or corporate relocation business conventions, trade
shows, conferences, meetings and seminars as Cendant may designate from time to time.

Section 5.2      Offline Promotion to Consumers.

Cendant Real Estate shall provide the opportunity to advertise the mortgage products and
services offered by the Company in all Cendant Owned Real Estate Offices Tradename publications at
Cendant Real Estate’s most favorable pricing, but never below the actual cost incurred by Cendant
Real Estate and its Affiliates in connection therewith. Cendant Real Estate will have sole
discretion to control positioning and content of advertising of the Company in its publications,
provided however, the Company shall not be treated less favorably than other
advertisers paying similar prices for advertisement in such publications.

ARTICLE VI

REAL ESTATE BROKERAGE AND SETTLEMENT SERVICES

Section 6.1      Exclusive Recommended Real Estate Broker.

PHH shall, and shall cause its Subsidiaries to, adopt such internal policies and procedures as
shall be reasonably necessary so that Cendant Real Estate shall be the exclusive recommended real
estate firm for employees of PHH or any of its Subsidiaries and for all customers of PHH or any of
its Subsidiaries other than any such customers who are subject to any other venture agreement with
a third party.

Section 6.2      Commercial Real Estate.

PHH shall, and shall cause its Subsidiaries to, use Cendant Real Estate on all commercial real
estate transactions where a Cendant commercial real estate agent is available, except for
transactions in progress as of the date of this Agreement.

Section 6.3      Settlement Services.

PHH shall, and shall cause its Subsidiaries to (i) recommend CSSG as provider of Settlement
Services (including, without limitation, on all transactions where PHH or one of its Subsidiaries
has the option to choose the provider of such services, all closings
by mail, all *CONFIDENTIAL and all search products such as Property and Judgment Reports), (ii)
utilize CSSG on an exclusive basis

24

*The term
“Confidential” 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.

 

whenever PHH or one of its Subsidiaries has the option to choose
the title or escrow agent and, in the applicable jurisdiction, CSSG either provides such services
or receives compensation in connection with such services or both, and (iii) recommend CSSG as
provider of Settlement Services to private label solutions (“PLS”) partners and the Small
Corps; provided, however, that: (a) during the first eighteen (18) months after the
date of this Agreement, CSSG shall provide all such services at the pricing levels which existed
immediately prior to execution of this Agreement (and, thereafter, agree to most favored nation
status for such pricing); and (b) within one hundred eighty (180) days from the date of this
Agreement, Cendant Real Estate shall cause CSSG to provide most favored nation status on service
level agreements and processes that are consistent with existing CSSG service levels. PHH shall
not, and shall cause its Subsidiaries not to, enter into any arrangement that provides for a party
other than CSSG to provide the products and services set forth in (i) above to PHH’s customers or
its PLS partners’ customers, unless such PLS partner requires an alternative provider as a
condition to entering into or renewing such arrangement with PHH or such Subsidiary and then only
after CSSG has been afforded the opportunity to present its service offerings to such PLS partner.

Section 6.4      REO Services. PHH shall, and shall cause its asset management vendors
(i.e., attorneys, REO property managers and/or realtors) to utilize, where Cendant has a
Brand Franchisee or an NRT office providing such services, such Brand Franchisee and/or NRT office
for any and all real estate owned assets of PHH, provided that such Brand Franchisees and/or
NRT shall adhere to performance standards substantially similar to those common in the industry.

ARTICLE VII

CUSTOMER DATA; PRIVACY REQUIREMENTS

Section 7.1      Customer Information. Subject to such rights as any Person may acquire in
any Customer Information of any Customer as a result of owning the servicing rights with respect to
a Mortgage Loan to such Customer, the Company and PMC acknowledge and agree that, as between the
Company, PMC, and the Cendant Entities, the Cendant Entities are the owner of all rights in
Customer Information provided by the Cendant Entities to the Company pursuant to the terms of this
Agreement or any other Transaction Document. Nothing contained herein shall be construed as
granting the Company or PMC or any Affiliate thereof any rights, express or implied to such
Customer Information other than those rights necessary to the conduct, promotion or attainment of
the business purposes of the Company specified herein or in Section 2.5(a) of the Operating
Agreement.

Section 7.2      Compliance with Privacy Requirements.

(a)           In connection with the origination of Mortgage Loans, each of the Company and PMC shall
comply with the Privacy Requirements, subject to (i) the mandatory compliance date of such Privacy
Requirements and (ii) the applicability of such Privacy Requirements to the Company or PMC, as the
case may be. The foregoing obligation to comply with the Privacy Requirements may include the
following:

25

 

(i)      the Company shall not disclose any Customer Information to any person or
entity, other than to the extent necessary to carry out Mortgage Loan origination
services, and for no other purpose. The Company shall ensure that each person or
entity to whom or to which the Company intends to disclose Customer Information
shall, prior to any such disclosure of information, agree to: (A) keep
confidential any such Customer Information and (B) use or disclose such Customer
Information only to the extent necessary to carry out Mortgage Loan origination
services;

(ii)      the Company shall not use Customer Information for any purpose,
including the marketing of products or services to, or the solicitation of
business from Customers. The Company may use the Customer Information to the
extent necessary to carry out the Company’s express obligations under the
Transaction Documents;

(iii)      The Company shall assess, manage, and control risks relating to the
security and confidentiality of Customer Information, shall implement the
standards relating to such risks in the manner set forth in the FFIEC Interagency
Guidelines Establishing Standards for Safeguarding Customer Information set forth
in 12 CFR Parts 30, 208, et al, and shall maintain at all times an Information
Security Program;

(iv)      without limiting the scope of the above, the Company shall use at least
the same physical and other security measures to protect all Customer Information
in the Company’s possession or control, as PHH uses for its own confidential and
proprietary information.

(b)           “Privacy Requirements” means (a) Title V of the Gramm-Leach-Bliley Act, 15 U.S.C.
§ 6801 et seq.; (b) the applicable federal regulations implementing such act and codified at 12 CFR
Parts 40, 216, 332, and/or 573; (c) Interagency Guidelines Establishing Standards For Safeguarding
Borrower Information proposed on June 26, 2000, unless and until such proposed guidelines are
superseded by final guidelines (such proposed and/or final guidelines and/or rules, the
“Interagency Guidelines”); and (d) other applicable federal, state and local laws, rules,
regulations, and orders relating to the privacy and security of Customer Information.

ARTICLE VIII

CENDANT FRANCHISEES

PMC shall, and shall cause its Subsidiaries to, abide by the following provisions of this
Article VIII in connection with its provision of Mortgage Loan services to Brand Franchisees and
their customers in connection with the Program contemplated by the MSA:

26

 

Section 8.1      Mortgage Loan Types. PMC shall offer to the Franchisee Customers a variety
of PMC Mortgage Loan Types in order to permit Franchisee Customers to select a PMC Mortgage Loan
Type best suited to their financial needs. PMC shall be responsible for developing the various PMC
Mortgage Loan Types to be available to Franchisee Customers and establishing the Mortgage Loan
Pricing associated therewith (the “PMC Pricing”); provided, however, that
PMC shall offer to the Franchisee Customers the full range of Mortgage Loan Types that are
currently offered or may in the future be offered by PHH or any of its Affiliates to their other
customers.

Section 8.2      Origination Channels.

(a)           PIMI Origination Channel. PMC’s PIMI Origination Channel shall be operated in
accordance with the provisions of this Section 8.2(a) in connection with the origination of
Mortgage Loans for Franchisee Customers.

(i)      Telephone Lines.

(A)      PMC shall provide to the Brand Franchisees dedicated and exclusive
toll-free telephone lines established and operated at the expense of and by PMC
(“Franchisee Telephone Lines”), which PMC reasonably believes are adequate
to meet the reasonably anticipated needs of the current and prospective Franchisee
Customers.

(B)      Trained PMC personnel shall answer Franchisee Telephone Lines in the name
of the appropriate Cendant Real Estate Franchisee Brand; provided,
however, that the Telephone Lines dedicated to the Brand Franchisees
operating under a Cendant Restricted Brand shall be answered in the name of “PHH
Mortgage.” Such personnel shall explain to the Franchisee Customer, as
appropriate: (a) the procedure to be followed in obtaining a Mortgage Loan; (b)
the various Mortgage Loan Types available and their associated Mortgage Loan
Pricing; and (c) their short- and long-term financial implications. Such
personnel shall provide counsel and advice to the Franchisee Customer as to the
Mortgage Loan Types that might best serve the Franchisee Customer’s needs,
including answering any questions the Franchisee Customer might have regarding the
process.

(C)      PMC shall provide each Franchisee Customer who utilizes the Franchisee
Telephone Lines with a same day Pre-Approval Decision and Guarantee. A “same day”
Pre-Approval Decision and Guarantee means that PMC will provide the Franchisee

27

 

Customer with a Pre-Approval Decision during the same day the Franchisee Customer
provided PMC with the information requested from the Franchisee Customer for
purposes of making a Pre-Approval Decision for that Franchisee Customer or, if PMC
does not provide the Franchisee Customer with such Pre-Approval Decision, PMC will
promptly pay the Customer the Guarantee Amount. The Brand Franchisees shall have
the right to publicize and advertise to their customers the availability of such
Pre-Approval Decisions and Guarantees in accordance with all Mortgage Lending
Laws.

(D)      PMC will provide to Franchisee Customers for whom it has made a
Pre-Approval Decision and which Franchisee Customer is likely to be approved for a
Mortgage Loan information tailored to the Franchisee Customer’s individual
circumstances. Such information will be designed to enable the Franchisee
Customer to determine the nature of the Mortgage Loan the Franchisee Customer may
qualify for if an appropriate property securing the Mortgage Loan is identified
and all information submitted is verified.

(ii)      Internet.

(A)      PMC will take applications for Mortgage Loans from Franchisee Customers
via the Internet. In order to accomplish this, PMC will provide each operator of
a Cendant Real Estate Franchisee Brand Website with Hyperlinks to such Content as
PMC reasonably believes is adequate to meet the reasonably anticipated needs of
the current and prospective Franchisee Customers (the “Franchisee Mortgage
Content”). By clicking on the Hyperlink at the Cendant Real Estate Franchisee
Brand Websites, the Franchisee Customer will be immediately transferred to the
Franchisee Mortgage Content via the Internet. Except in the case of Cendant
Restricted Brands, such Franchisee Mortgage Content will presented by the Company
in such a way that it will appear as if it were on a World Wide Web page or series
of World Wide Web Pages on the Cendant Real Estate Franchisee Brand Website from
which the Hyperlink originated to the extent it is consistent with Applicable
Requirements to do so. The form and substance of such World Wide Web pages will be
subject to the prior written consent of the Cendant Entities. In order to improve
the graphical compatibility of the Franchisee Websites and PMC’s sites, PMC and
the Cendant Entities will consult with each other when developing or modifying
such World Wide Web pages, and also when considering the design of future releases
of their respective Websites. PMC shall not permit the Franchisee Mortgage
Content accessed by Franchisee Customers via Hyperlinks from the Cendant Real
Estate Franchisee Brand Websites contemplated by this Agreement to display any
advertising, except in such instances where the Cendant Entities have provided
their prior written consent to such advertising.

28

 

(B)      The Franchisee Mortgage Content will include information about the
Mortgage Loans and Mortgage Loan Types, Mortgage Loan calculators, counseling
regarding down payments and Mortgage Loan affordability, pre-qualification tools
to be used by consumers and Mortgage Loan application modules. PMC will ensure
that a Franchisee Customer shall be able to complete and submit a Mortgage Loan
application by means of the Franchisee Mortgage Content without any other contact
with the Company.

(C)      Franchisee Customers utilizing the Mortgage Content to initiate the
Mortgage Loan process will be offered the option of communicating with a
processing team or other persons contemplated in Section 8.8 of this Agreement,
either by electronic mail or by telephone, or by a combination of electronic mail
and telephone.

(D)      Each Franchisee Customer initiating the origination process via the
Internet shall receive a Pre-Approval Decision within 24 hours of the time such
Franchisee Customer either (i) submits a complete Mortgage Loan application via
the Mortgage Content, or (ii) first speaks with a PMC loan consultant by telephone
after submitting certain information not constituting a complete Mortgage Loan
application through the Mortgage Content, or PMC shall promptly pay the Franchisee
Customer the Guarantee Amount.

Section 8.3      Mortgage Loan Application Processing. For each Franchisee Customer who
applies for a Mortgage Loan through the origination channels described in Section 8.2, PMC shall
arrange for the receipt by the Franchisee Customer, as promptly as practicable under the
circumstances, and in any event in accordance with applicable law, of (i) the Mortgage Loan
application for the Franchisee Customer to review and sign, accompanied by a request for
appropriate Franchisee Customer documents and (ii) all Mortgage Loan Disclosures. In addition, and
to the extent required or permitted under PMC Underwriting Guidelines, as applicable, PMC shall
communicate a loan decision or counteroffer to the Franchisee Customer in accordance with all
applicable laws.

Section 8.4      Underwriting Guidelines. PMC shall develop appropriate underwriting
guidelines for each PMC Mortgage Loan Type available to Franchisee Customers (the “PMC
Underwriting Guidelines”), which PMC Underwriting Guidelines shall be consistent with the
underwriting guidelines followed by PHH and its Affiliates in connection with Mortgage Loans
offered to their own customers for the same products in the same geographic area and at the same
time. Unless the PMC Underwriting Guidelines specify otherwise for specific PMC Mortgage Loan
Types, all Mortgage Loans shall be underwritten in accordance with the standards of FHLMC, FNMA and
other applicable federal agencies providing standards for the sale of loans in the secondary market
for mortgage loans. PMC shall issue approval letters on those applications which generally satisfy
the PMC Underwriting Guidelines.

29

 

Section 8.5      Degree of Care. PMC and its Affiliates shall perform the origination,
processing, underwriting, approval, closing, shipping, and other origination services on all
Mortgage Loans in all material respects in accordance with all Mortgage Lending Laws and with no
less degree of care than PMC or any of its Affiliates exercises in originating other Mortgage Loans
for its own account or the account of any third party with similar regulatory profile,
provided that in no event shall PMC exercise a lesser degree of care than it exercised in
originating Mortgage Loans prior to the Closing Date.

Section 8.6      Mortgage Loan Closing. PMC shall use its best efforts to complete the
processing and closing of all Mortgage Loans originated pursuant to this Article VIII in the time
frame requested by the Franchisee Customer at the time of submission of the Mortgage Loan
application. PMC shall: (i) prepare all required Mortgage Loan closing documents in accordance
with applicable Mortgage Lending Laws; (ii) arrange for their execution by the Franchisee
Customer; (iii) provide the Franchisee Customer with a copy of PMC’s
privacy policy in accordance with the Privacy Requirements; and (iv) arrange for the Mortgage
Loan closing. All Mortgage Loans shall be closed in the name of PMC or an Affiliate thereof. On
purchase money Mortgage Loans, PMC shall meet the closing date set by the Franchisee Customer or
PMC shall reduce the interest rate payable on that Franchisee Customer’s Mortgage Loan by
one-eighth percent (1/8%) for the life of loan. For refinance loans, PMC shall use its best
efforts (taking into consideration factors such as periods of high volume loan refinance activity
(as substantiated by the Refinance Application Index as promulgated by the Mortgage Bankers
Association)) to perform its obligations hereunder to complete the processing and closing within
thirty (30) days from the date of application.

Section 8.7      PMC Personnel.

(a)           PMC will provide, supervise and make available such personnel as are reasonably necessary
to carry out PMC’s obligations under this Article VIII. Such personnel, including rate lock
personnel, shall be available between the hours of 8:30 a.m. and 10:00 p.m. Eastern time, or such
additional hours as may be required by operating conditions and requested by the Cendant Entities,
on Business Days. Such personnel, excluding rate lock personnel, shall also be available, as
needed, to process Mortgage Loans and contact Franchisee Customers, between the hours of 10 a.m.
and 7 p.m., Eastern time, or such additional hours as may be required by operating conditions and
requested by the Cendant Entities, on Saturdays and Sundays, except in those instances where a
Saturday falls on or near a national holiday and PMC provides reasonable advance notice to Cendant
Real Estate in writing that its facilities will be closed on any such day.

(b)           PMC shall at all times permit employees of Cendant Real Estate and its Subsidiaries access
to PMC’s offices (including offices where it conducts Mortgage Loan origination services) during
PMC’s working hours to observe the origination, processing and closing of the Mortgage Loans to
Franchisee Customers. PMC shall, at its expense, make available all customary, reasonable office
space,

30

 

facilities, and equipment for such employees. The salaries, travel, subsistence and other
related expenses for such employees shall be borne by Cendant Real Estate.

Section 8.8      Processors. PMC shall cause each Franchisee Customer who makes an
application for a Mortgage Loan to be processed through any of the origination channels described
in Section 8.2 to be served by a processing team or other persons employed by PMC and determined by
PMC to be most efficient under the circumstances. PMC shall cause each such processing team or
other persons to serve the Franchisee Customer throughout the entire process of Mortgage Loan
application, processing, underwriting and closing, and to use best efforts to meet the Franchisee
Customer’s closing date.

Section 8.9      Maintenance of Licenses.

PMC shall, at its own cost and expense, obtain and maintain any and all licenses and
registrations, and cause each of its employees to obtain any and all licenses and registrations,
that are necessary or desirable in the performance of the Mortgage Loan origination services to be
provided by PMC pursuant to the terms of this Article VIII.

Section 8.10      Legal and Regulatory Compliance.

(a)           Actions taken or not taken by PMC and its Affiliates, and all communications made when
performing its obligations under this Agreement (including this Article VIII) shall comply in all
material respects with the requirements of all applicable Mortgage Lending Laws.

(b)           PMC shall, and shall cause its Affiliates to, keep in full effect its existence, rights
and franchises in the state of its incorporation except as permitted herein or in the Operating
Agreement, and will obtain and preserve its qualifications to do business as a foreign entity in
each jurisdiction in which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement or any of the Mortgage Loans and/or to perform its duties under
this Agreement.

(c)           PMC and its Affiliates shall not engage in activities in performing origination services
hereunder that generally would be reasonably likely to be determined by the relevant regulatory
agency to be prohibited as “predatory.”

(d)           PMC shall promptly inform the Cendant Entities in writing of any notices, inquiries or
other communications, written or oral, received by PMC or any Affiliate thereof with respect to any
material legal, administrative, arbitral or other proceedings, claims, actions or governmental or
regulatory investigations or findings with respect to Mortgage Loans originated, closed and funded
by PMC or any Affiliate thereof or any action or omission of PMC or any of its Affiliates in
connection therewith.

Section 8.11      Customer Fees and Charges.

(a)           At the closing of any Mortgage Loan and at such other times as may be customary, the
closing agent may collect from the Franchisee Customer and

31

 

forward to PMC or an Affiliate thereof the Customer Fees and Charges for such Mortgage Loan.

(b)           The amount, payor and payee of any Customer Fees and Charges shall be described in the
Mortgage Loan Disclosures in accordance with the Mortgage Lending Laws. PMC shall retain and
distribute the Customer Fees and Charges to third parties, including settlement service providers,
in accordance with applicable law, this Agreement and the arrangements governing such
relationships. PMC covenants and agrees that the payment of Customer Fees and Charges to third
parties shall be made in a timely manner and in accordance with payment terms governing such
relationships.

Section 8.12      Surveys.

With respect to all closed Mortgage Loans, PMC shall conduct a survey of the related
Franchisee Customer contemporaneously with the closing (the “Franchisee Customer Survey”)
and a survey of the Brand Franchisee that referred such Franchisee Customer (the “Franchisee
Referral Survey” and, together with the Franchisee Customer Survey, the “Franchisee
Surveys”) for the purpose of assessing overall satisfaction levels relating to PMC’s
performance as loan originator. PMC shall administer such Surveys and shall provide the results of
the Franchisee Surveys to Cendant Real Estate on a monthly basis. Schedule 3.16(a) hereto
sets forth an example of the content of such Franchisee Surveys; provided, however,
that Cendant Real Estate shall have the right to amend such Franchisee Surveys from time to time in
its sole discretion; provided further, however, that (i) the Franchisee
Referral Survey shall always contain the question “would you recommend a PMC Loan to another
client?” (the “Franchisee Key Referral Question”), and (iii) the Franchisee Customer Survey
shall always contain the question “Would you recommend PMC to a friend/another person?” (the
“Franchisee Key Customer Question”). Cendant Real Estate shall (A) have the right to review
and audit all Franchisee Survey responses at any time, and (B) have the right, but not the
obligation, to disseminate such Surveys once annually at its option.

Section 8.13      MSA Payments.

The Parties hereby agree and acknowledge that all payments under the MSA payable to any Brand
(as defined in the MSA) shall be the sole responsibility of PMC and its Affiliates (other than the
Company), and neither the Cendant Entities nor their Affiliates, nor the Company, shall be
responsible for making any such payment.

ARTICLE IX

FUTURE CENDANT REAL ESTATE BROKERAGE ACQUISITIONS

Section 9.1      Subsequent Small Corps.

(a)           In the event that, during the term of this Agreement, Cendant Real Estate, or any
Affiliate of Cendant Real Estate, notifies (a “Small Corp Notification”) PMC and the Company
of its intent to acquire, or enter into an agreement to acquire, directly or indirectly, any Person
that owns or conducts a residential real estate brokerage

32

 

business and in connection therewith also
owns or conducts, directly or indirectly, a mortgage loan origination business (any such Person, a
“Qualifying Target”), then promptly thereafter Cendant Real Estate, PMC and the Company
shall work together to formulate a plan for the sale by Cendant Real Estate or such Person (such
seller, the “Cendant Real Estate Seller”) of such mortgage loan origination business (or the
stock or other equity of an entity directly or indirectly conducting such business, as determined
by Cendant Real Estate in its sole discretion) (the “Qualifying Target Mortgage Business”)
to the Company, and Cendant Real Estate, the Cendant Real Estate Seller and PMC shall use their
reasonable best efforts to complete such sale as promptly as practicable thereafter. Cendant Real
Estate shall use reasonable best efforts to provide PMC and the Company an adequate opportunity to
conduct due diligence with respect to the Qualifying Target Mortgage Business. Cendant Real
Estate, the Company and PMC shall cooperate with and assist each other in obtaining all consents
and approvals of, making all filings and registrations with and providing all notices to, such
Governmental Entities or third parties as shall be necessary or advisable to consummate such sale.
At the time agreed upon for the closing of such sale, the Company shall pay to the Cendant Real
Estate Seller, by wire transfer of immediately available funds, in consideration for the Qualifying
Target Mortgage Business to be acquired, a purchase price (the “Purchase Price”) calculated
as follows (with each of the PHH Member and the Cendant Member contributing to the Company cash in
an amount equal to its ratable share of the Purchase Price based on their respective percentage
ownership interests in the Company):

(i)      If the purchase price paid by Cendant to acquire the Qualifying Target
represents a multiple (a “Qualifying Target EBITDA Multiple”) of such
Qualifying Target’s trailing 12-months’ EBITDA of
*CONFIDENTIAL or less, then the Purchase
Price shall be equal to the product of (A) such Qualifying Target EBITDA Multiple
and (B) such Qualifying Target Mortgage Business’ trailing 12-months EBITDA,
adjusted to remove all refinance originations in excess of *CONFIDENTIAL% of the Qualifying
Target Mortgage Business’ total originations for such trailing twelve months;

(ii)
     If the Qualifying Target EBITDA Multiple is more than *CONFIDENTIAL, then Cendant
Real Estate and PMC shall negotiate in good faith to agree upon the Purchase
Price, provided that in no event shall the Purchase Price be less than the product
of (A) *CONFIDENTIAL and (B) such Qualifying Target Mortgage Business’ trailing 12-months
EBITDA, adjusted to remove all refinance originations in excess of *CONFIDENTIAL% of the
Qualifying Target Mortgage Business’ total originations for such trailing twelve
months;

(iii)
     If the total purchase price of a Qualifying Target is $*CONFIDENTIAL (to
be increased annually by the percentage increase in the National Consumer Price
Index) or greater, then the Purchase Price shall be equal to the product of (A)
such Qualifying Target Mortgage Business’ trailing 12-months EBITDA, adjusted to
remove all refinance originations in excess of *CONFIDENTIAL% of the Qualifying Target
Mortgage

33

*The term
“Confidential” 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.

 

Business’ total originations for such trailing twelve months and (B)
either (1) the Qualifying Target EBITDA Multiple paid by Cendant if such multiple
is less than *CONFIDENTIAL, or (2) *CONFIDENTIAL if the Qualifying Target EBITDA Multiple paid by
Cendant is *CONFIDENTIAL or greater.

(b)           If, within thirty (30) days after Cendant Real Estate or any Affiliate of Cendant Real
Estate delivers to PMC and the Company a Small Corp Notification, PMC and the Company have not
completed their due diligence and Cendant Real Estate, PMC and the Company have not agreed upon the
amount to be paid by the Company to the Cendant Real Estate Seller, then (i) Cendant Real Estate
shall have the option to either (A) sell (or cause to be sold) such mortgage loan origination business to a
third party; provided, however, that if the price to be paid by the third party in
such sale is less than *CONFIDENTIAL of the Purchase Price for such Qualifying Target Mortgage Business
determined pursuant to Section 9.1(a), or, if no formula is applicable, the price offered by
Cendant Real Estate to the Company, then the Company shall have a right of first refusal with
respect to such sale at the purchase price offered to the third party (in which case Cendant Real
Estate shall offer such Qualifying Target Mortgage Business to the Company for a period of 15 days,
during which period the Company shall have the option to accept the sale of such Qualifying Target
Mortgage Business on all terms, including price, of such third party
sale; provided that if
the Company fails to accept all such sale terms pursuant to a binding agreement with Cendant Real
Estate within such 15 day period, then the sale to the third party may proceed as planned), or (B)
continue to own and operate such mortgage loan origination business and (ii) in either case, the
exclusivity provisions of Section 2.1 hereof shall, at the option of the Cendant Entities,
terminate with respect to each county in which the Qualifying Target Mortgage Business conducts
business (except that exclusivity shall not terminate with respect to any county where the total
amount of originations by the Qualifying Target Mortgage Business for the trailing 12-months were
less than *CONFIDENTIAL (to be increased annually by the percentage increase in the National Consumer
Price Index)).

(c)           If Cendant Real Estate, PMC and the Company agree upon the amount to be paid in connection
with, and execute an agreement for, the sale of a Qualifying Target Mortgage Business to the
Company within the 30-day period set forth above, then the Company shall pay to the Cendant Real
Estate Seller an amount equal to 25% of the Purchase Price agreed to by the Parties if such sale is
not consummated in the time frame reasonably requested by Cendant Real Estate (unless such delay is
due to the failure to obtain a required regulatory approval, which approval has been diligently
pursued by the Company, or due to acts or omissions on the part of Cendant or any of its Affiliates
or any of their respective officers, directors or advisors). Such payment shall be made not later
than the 30th day following the date on which such acquisition was scheduled to close
and, if made on any day other than the scheduled closing date, shall include interest through the
date of payment. If such payment is not made by the Company within such 30-day period, the
exclusivity provisions of Section 2.1 shall, at the option of the Cendant Entities, terminate with
respect to each county in which the Qualifying Target conducts business (except that exclusivity
shall not terminate with respect to any county where the total amount of originations by the
Qualifying Target

34

*The term
“Confidential” 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.

 

Mortgage Business for the
trailing 12-months were less than *CONFIDENTIAL (to be
increased annually by the percentage increase in the National Consumer Price Index)).

(d)           No term or provision contained in this Section 9.1 or elsewhere in this Agreement shall be
deemed to restrict the ability of Cendant Real Estate or any of its Subsidiaries to acquire any
Person that owns or conducts a residential real estate brokerage business and in connection
therewith also owns or conducts a mortgage loan origination business, provided that such
acquisition is completed pursuant to the terms of this Section 9.1.

(e)           Notwithstanding anything to the contrary contained in this Agreement, the Parties shall
use their reasonable best efforts to structure a sale by the Cendant Real Estate Seller to the
Company of the Qualifying Target Mortgage Business on a tax efficient basis to Cendant Real Estate
and its Affiliates (including Cendant), including, without limitation, by (x) causing the Cendant
Real Estate Seller to contribute a portion of the Qualifying Target Mortgage Business (equal to the
Cendant Member’s percentage ownership interest in the Company) to the Company in a transaction
intended to qualify as a tax-free contribution under section 721 of the Internal Revenue Code of
1986, as amended and (y) by causing the Cendant Real Estate Seller to sell to the PHH Member the
remaining portion of the Qualifying Target Mortgage Business (equal to the PHH Member’s percentage
ownership interest in the Company) for an amount equal to the PHH Member’s ratable share of the
Purchase Price based on its percentage ownership interest in the Company, followed by the
contribution by the PHH Member of such purchased portion of the Qualifying Target Mortgage Business
to the Company; provided, however, that nothing contained in this section 9.1(e)
shall require the PHH Member to contribute to the Company or pay to Cendant Real Estate or the
Cendant Real Estate Seller in respect of the Qualifying Target Mortgage Business an amount in
excess of the PHH Member’s ratable share of the Purchase Price based on its percentage ownership
interest in the Company.

ARTICLE X

NON-COMPETITION

Section 10.1      PHH Non-Compete.

(a)           Without the express prior written consent of the Cendant Entities, neither PHH nor any
Affiliate of PHH shall, within the United States of America, directly or indirectly:

(i)      engage in the Settlement Services business (or provide any services or
products which as of the date of this Agreement are otherwise provided and/or
offered by CSSG),

(ii)      engage in the residential real estate brokerage business, commercial
real estate brokerage business, or corporate relocation services business, or
become or operate as a broker, owner or franchisor in any such business, or
otherwise, directly or

35

*The term
“Confidential” 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.

 

indirectly, assist or facilitate the purchase or sale of
residential or commercial real estate other than through (x) the origination and
servicing of Mortgage Loans, or (y) the conduct of the business of STARS
substantially as currently conducted, or

(iii)      engage in any other business which as of the date of this Agreement is
conducted by the Cendant Real Estate Services Division; provided that, to
the extent that Cendant Real Estate Services expands into new businesses from and
after the date of this Agreement and at the time of such expansion PHH or any of its Affiliates is
currently engaged in the same business, nothing herein shall be deemed to prohibit
PHH or any such Affiliate from continuing to conduct such business thereafter.
Notwithstanding the foregoing, (1) PHH may obtain real estate brokerage licenses
solely to the extent necessary to engage in, and solely for the purpose of
engaging in, referral business with a Cendant Affiliate via the Cendant Mobility
Broker Network and (2) nothing contained herein shall prohibit PHH from acquiring,
directly or indirectly, any company that engages in a business as described in
(i), (ii) or (iii) above if the revenue derived from such business for the last
four full calendar quarters preceding such acquisition equals less than the
greater of $1 million or 1% of such acquired company’s total consolidated revenue
for such last four full calendar quarters.

(b)           In the event that, at any time after the date of this Agreement and prior to the
expiration of the covenant set forth in Section 10.1(a), any Person shall, directly or indirectly,
acquire PHH or any of its significant subsidiaries (as defined under Regulation S-X of the
Securities and Exchange Commission), including but not limited to by way of merger, consolidation,
share exchange, asset acquisition or similar transaction (including a merger of PHH or such
subsidiary with another Person where the common stockholders of PHH or such subsidiary immediately
prior to such merger do not own more than two-thirds of the common stock of the surviving entity in
such merger or the Controlling Person thereof), then (i) the acquiring Person, (ii) any Controlling
Person thereof, and (iii) all Persons that are Affiliates of such acquiring Person or any such
Controlling Person immediately prior to completion of such acquisition shall be bound by the
covenant contained in Section 10.1(a) from and after the completion of such acquisition.

(c)           PHH shall not, and shall cause its Subsidiaries not to, without the consent of the Cendant
Entities, sell directly or indirectly, any Mortgage Loans or mortgage servicing rights to any
Cendant Competitor; provided, however, that with respect to any agreement in effect
as of the date of this Agreement with a Cendant Competitor, the PHH Member shall use its reasonable
best efforts to cause such agreement to be terminated prior to October 1, 2005 if such agreement
would violate the provisions of this Section 10.1(c), but only as long as such termination can be
accomplished without the payment of a significant economic penalty. A “Cendant Competitor”
is any entity that is, or directly or indirectly is affiliated with or controls, one

36

 

of the twenty (20) largest residential real estate brokerage firms in the United States or one of the ten largest
residential real estate brokerage franchisors in the United States.

(d)           PHH acknowledges that the restrictions and agreements contained in this Section 10.1 are
reasonable and necessary to protect the legitimate interests of the Cendant Entities, and that any
violation of this Section 10.1 will cause substantial and irreparable injury to the Cendant
Entities that would not be quantifiable and for which no adequate remedy would exist at law and
agrees that injunctive relief, in addition to all other remedies, shall be available therefor.

(e)           The covenants contained in this Section 10.1 shall survive for (i) two (2) years following
the termination of this Agreement as a result of an SRA Termination Event described in Sections
12.2(a)(i) and (ii), and (ii) one (1) year following a termination of this Agreement as a result of
any other SRA Termination Event; provided, however, that in the case of a termination
of this Agreement as a result of an SRA Termination Event described in Section 12.2(a)(iv) or (v),
the covenants contained in subparagraph (a)(i) of this Section 10.1 shall not survive termination
of this Agreement.

Section 10.2      No Mortgage Loan Solicitation by PHH. PHH shall not, and shall cause its
Affiliates not to, knowingly solicit any Cendant Customers for Mortgage Loans, except through the
Company and as provided for in this Agreement and the Operating Agreement; provided,
however, that PMC and its Affiliates may market Mortgage Loans to affinity groups and other
groups so long as the information has not been obtained by PMC or its Affiliates from information
provided through Cendant Real Estate and its Subsidiaries, the Company or any of their respective
customers.

Section 10.3      Cendant Participation.

(a)           Neither PHH nor any of its Subsidiaries shall directly solicit any Customer or any Cendant
Customer to purchase any product or service, unless an appropriate, mutually agreed upon
participation in such transaction by the Cendant Member or by an Affiliate thereof is structured;
provided, however, that nothing herein shall prohibit PHH or any of its Subsidiaries
from conducting general advertising campaigns through print or other media so long as such
campaigns are not directed specifically at such individual Customers or Cendant Customers and do
not involve any direct marketing such as mailings, telephone calls, faxes or e-mails or other
direct electronic communications.

(b)           PHH shall, and shall cause its Subsidiaries to, use commercially reasonable efforts to
direct to the Company any Mortgage Loan origination opportunity where such Mortgage Loan refinances
or replaces a Mortgage Loan originated by the Company and where such Mortgage Loan results from a
general solicitation of the type permitted by Section 10.3(a) above.

(c)           Notwithstanding the foregoing, none of the restrictions on cross-selling or refinancing
set forth above in this Section 10.3 shall apply to PHH, the

37

 

Company or any of their Subsidiaries with respect to Mortgage Loans that have been sold by PHH or one of its Subsidiaries on a
servicing-released basis.

(d)           For a period of one (1) year following the effective date of any termination of the
Company pursuant to Article VIII of the Operating Agreement, the Party relinquishing its interest
in the Company in connection with such termination shall not, and shall cause its Affiliates not
to, directly or indirectly, solicit for employment any of the employees of the Company or any of
its Subsidiaries; provided, however, that nothing herein shall prohibit (i) a general solicitation or advertisement
through print or other media not targeted directly or specifically at the Company or any of its
Subsidiaries or any of their employees, or (ii) the relinquishing party from hiring or considering
for hire any employee of the Company or any of its Subsidiaries if contact was initiated by such
employee independently and not pursuant to any solicitation or communication by the relinquishing
party in violation of this Section 10.3(d).

ARTICLE XI

TERMINATION ASSISTANCE

Section 11.1      Termination Assistance Services.

(a)           Termination Assistance Services. Upon the consummation of a PHH Sale, a Two Year
PHH Sale or a Non-Renewal PHH Sale, PMC shall for a period of one (1) year following the
termination date (the “Termination Assistance Period”), upon the Cendant Member’s request
and at the Cendant Member’s expense, continue to provide to the Company all such transition and
other services as shall be reasonably necessary to facilitate an orderly transition of the business
and operations of the Company to the Cendant Designated Buyer (“Termination Assistance
Services”). In providing Termination Assistance Services, PMC shall provide such reasonable
cooperation and technical assistance as required to facilitate the transfer of the management of
the Company to a Cendant Designated Buyer. The rights of the Cendant Member under this Article XI
shall be without prejudice to the Parties’ rights to pursue legal remedies for breach of this
Agreement, either for breaches prior to termination or during the period this Agreement continues
to be in force post-termination. Termination Assistance Services shall be provided for a fee
calculated based on then-current fair value for such services, and PMC shall use commercially
reasonable best efforts to perform the Termination Assistant Services at the same service levels as
such services were provided prior to termination.

(b)           Additional Services. From time to time during the Termination Assistance Period,
the Cendant Member may find it desirable to request, in addition to the Termination Assistance
Services, additional services to be made available to the Company by PMC (the “Additional
Services”). In the event that the Cendant Member makes a written request that PMC provide
Additional Services and PMC agrees to provide such Additional Services, PMC and the Cendant Member
shall negotiate in good faith to agree upon, among other things, (a) the time period during which
the Additional Services shall be provided, (b) a description of the Additional Services, and (c)

38

 

and the estimated charge for the Additional Services. PMC’s obligations with respect to providing
any such Additional Services shall become effective only upon an agreement with respect thereto
being duly executed and delivered by each of PMC and the Cendant Member.

(c)           Obligations as to Additional Services. PMC agrees to enter into discussions with
the Cendant Member to provide any Additional Services that (i) the Company is unable to obtain from
a third party provider, (ii) are directly dependent upon or inextricably intertwined with the
Termination Assistance Services or (iii) were inadvertently and unintentionally omitted from the
list of Termination Assistance Services; provided, however, that PMC shall not be
obligated to provide such Additional Services if, following good-faith negotiation, PMC and the
Cendant Member are unable to reach agreement on such terms.

(d)           Standard of Service. PMC agrees that in providing (or causing others to provide)
the Termination Assistance Services under this Agreement, it shall (and shall cause each Affiliate
or advisor and, to the extent practicable, any or other third-party service provider to): (i)
conduct itself in accordance with (A) standards of quality consistent with the standards applied by
PMC as of the date of the beginning of the Termination Assistance Period with respect to the
specific matters in question, and (B) standards of quality consistent with those applied by PMC
hereafter with respect to the specific matters in question in its own business; (ii) comply with
all laws, regulations and orders applicable to the conduct of the activities contemplated hereby in
all material respects; (iii) comply in all material respects with any applicable standards,
procedures, policies, operating guidelines, practices and instructions mutually agreed upon with
respect to the relevant Termination Assistance Services; and (iv) comply in all material respects
with any commercially reasonable standards, procedures, policies, operating guidelines, practices
and instructions imposed by third-parties in connection with the Termination Assistance Services.
Notwithstanding the foregoing, it shall not be deemed to be a breach of this Agreement if PMC fails
to meet the standards required under this Section 11.1 because of the failure of the Cendant Member
to cooperate with PHH or any of its Subsidiaries as may be required under this Agreement.

(i)      In addition to the provisions of Section 11.1, if the Cendant Member
desires a higher quality of Termination Assistance Services than PMC is otherwise
obligated to provide pursuant to Section 11.1 or any of the other provisions of
this Agreement, the Cendant Member will be entitled to receive such higher level
of quality after giving no less than 30 days’ prior written notice to PMC if (i)
the Cendant Member agrees to pay for all additional actual costs associated with
such increased level and (ii) in the sole judgment of PMC, such increased level
does not impose an additional burden on PMC.

(ii)      PMC shall promptly notify the Cendant Member of any event or
circumstance of which PMC or any of its representatives has knowledge that would
or would be reasonably likely to cause a disruption in the Termination Assistance
Services.

39

 

(e)           Supervision and Compensation. PMC shall select, employ, pay, supervise, direct and
discharge all the personnel providing Termination Assistance Services under this Article XI. PMC
shall be solely responsible for the payment of all benefits and any other direct and indirect
compensation for PMC personnel assigned to perform services under this Article XI, as well as such personnel’s
worker’s compensation insurance, employment taxes, and other employer liabilities relating to such
personnel as required by law. PMC shall be an independent contractor in connection with the
performance of Termination Assistance Services hereunder and the employees performing Termination
Assistance Services in connection herewith shall not be deemed to be employees of the Cendant
Member or any affiliate thereof.

(f)           Staffing of Personnel. PMC shall be solely responsible for assigning personnel to
perform the Termination Assistance Services, which personnel will be instructed by PMC to perform
the Termination Assistance Services in a timely, efficient and workmanlike manner.

Section 11.2      Development of Transition Plan. If and to the extent requested by the
Cendant Member, whether prior to, upon, or following any termination of this Agreement, PMC shall
reasonably assist the Cendant Member in developing a plan which shall specify the tasks to be
performed by PMC in connection with the Termination Assistance Services and the schedule for the
performance of such tasks. The transition plan shall include descriptions of the Termination
Assistant Services, service levels, fees, documentation and access requirements that will promote
an orderly transition of such services.

Section 11.3      Post-Termination Assistance. For a period of six (6) months following the
Termination Assistance Period, PMC shall: (i) answer all reasonable and pertinent verbal or written
questions from the Cendant Member or the Cendant Designated Buyer regarding the Termination
Assistance Services on an “as needed” basis and (ii) deliver to the Cendant Member any remaining
Company-owned reports and documentation still in PMC’s possession.

ARTICLE XII

TERM AND TERMINATION

Section 12.1      Term. The term of this Agreement shall be coextensive with the term of
the Operating Agreement, subject to termination as set forth in Section 12.2 below.

Section 12.2      SRA Termination Event.

(a)           For purposes of this Agreement, an “SRA Termination Event” means the consummation
of (i) a Cendant Put, (ii) a PHH Sale, (iii) a
Purchase Right transaction, (iv) a Two Year Put, (v) a Two Year
PHH Sale, (vi) a Special Termination Put, (vii) a Non-Renewal Put, (viii) a Non-Renewal PHH
Sale, or (ix) the dissolution of the Company pursuant to Article IX of the Operating Agreement.

40

 

(b)           Upon the occurrence of an SRA Termination Event, this Agreement shall automatically expire
and terminate, provided that:

(i)      The obligations of PHH and its Affiliates pursuant to Article VII hereof
shall survive the termination of this Agreement to the extent required by law.

(ii)      The obligations of PHH and its Affiliates under Section 10.1 of this
Agreement shall survive the termination of this Agreement as set forth in Section
10.1(e).

(iii)      The respective obligations of each Party under the provisions of
Article XI, Article XII and Article XIII hereof shall survive the termination of
this Agreement.

(c)           Notwithstanding anything to the contrary contained herein, immediately following the
consummation of a Cendant Put, a Two Year Put, a Purchase Right
transaction, a Special Termination Put or
a Non-Renewal Put, the Company and its Subsidiaries shall continue to process, close, fund and sell
all Pipeline Loans in a manner consistent with the terms of this Agreement and the Operating
Agreement. For purposes of this paragraph (c), “Pipeline Loans” shall mean all potential
Mortgage Loans which are in one of various stages of loan origination, approval and processing at
the Company or one of its Subsidiaries, but which, as of the time of consummation of a Cendant Put,
a Two Year Put, a Purchase Right transaction, a Special Termination Put or a Non-Renewal Put, shall not
have closed and funded.

ARTICLE XIII

MISCELLANEOUS PROVISIONS

Section 13.1      PHH Guarantee.

(a)           Each of PHH and PMC irrevocably, absolutely and unconditionally guarantees (the
“Guarantee”) each and every representation, warranty, covenant, agreement and other
obligation of its Subsidiaries and Affiliates (including the PHH Member but excluding the Company
and any Subsidiaries of the Company) and/or any of their respective permitted assigns
(collectively, the “PHH Affiliates”) set forth in, and the full and timely performance of
their respective obligations under the provisions of, this Agreement and each of the other
Transaction Documents. This is a guarantee of payment and performance, and not of collection, and
each of PHH and PMC acknowledges and agrees that this Guarantee is full and unconditional, and no
discharge, release or extinguishment of any of the PHH Affiliates’ liabilities (other than in
accordance with the terms of this Agreement), whether by decree in any insolvency, bankruptcy,
reorganization or other similar proceeding or otherwise, and no change in the corporate existence,
structure or ownership of any of the parties hereto or any of their Affiliates, and no assignment,
pledge or other transfer (whether voluntary, involuntary or by operation of law) of any of the rights, interests or obligations
of the parties hereto under this Agreement or the other Transaction Documents, shall affect the
continuing

41

 

validity and enforceability of this Guarantee, as well as any provision requiring or
contemplating performance by PHH.

(b)           Each of PHH and PMC hereby waives, for the benefit of the Cendant Entities, (i) any right
to require the Cendant Entities, as a condition of payment or performance by either PHH or PMC, to
proceed against any of the PHH Affiliates or pursue any other remedy whatsoever and (ii) to the
fullest extent permitted by law, any defenses or benefits that may be derived from or afforded by
law which limit the liability of or exonerate either PHH or PMC or sureties, except to the extent
that any such defense is available to the appropriate PHH Affiliates.

(c)           Without limiting in any way the foregoing Guarantee, each of PHH and PMC covenants and
agrees to take all actions to enable the PHH Affiliates to adhere to each provision of this
Agreement and the other Transaction Documents which requires an act or omission on the part of PHH
or PMC or any of their Subsidiaries to enable the PHH Affiliates to comply with their obligations
under this Agreement.

(d)           Each of PHH and PMC understands that the Cendant Entities are relying on this Guarantee in
entering into this Agreement and the other Transaction Documents and may, to the extent PHH or PMC
is not a party to any such other Transaction Document, enforce this Guarantee as if each of PHH and
PMC were a party thereto.

Section 13.2      Notice of Certain Events. Each Party shall promptly notify the others of
(i) any event or condition that would cause any of the representations or warranties of such party
contained herein no longer to be complete and accurate, and (ii) any failure on the part of such
Party to comply with any of its covenants or agreements contained herein.

Section 13.3      Indemnification.

(a)           PHH Indemnification. Except as otherwise provided by the terms of this Agreement,
each of the PHH Entities, jointly and severally (each, a “PHH Indemnitor”) agrees to
indemnify, defend and hold harmless each of the Cendant Entities and their respective officers,
directors, employees, agents, attorneys, members and shareholders (collectively called the
“Cendant Indemnitees”) from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any
kind or nature whatsoever (including reasonable attorneys’ fees and disbursements in connection
with any investigative, administrative or judicial proceeding) (“Losses”) imposed on,
incurred by or asserted against any such Cendant Indemnitee, whether brought under common law or in
equity, or in contract, tort or otherwise, caused by, arising from or connected with (i) any
misrepresentation or the breach in any material respect by the PHH Indemnitor of any term, condition, representation,
obligation or warranty of the PHH Indemnitor set forth in this Agreement or in any schedule,
exhibit, or certificate furnished by the PHH Indemnitor pursuant to this Agreement; or (ii) the
negligence or willful misconduct of the PHH Indemnitor.

42

 

(b)           Cendant Indemnification. Except as otherwise provided by the terms of this
Agreement, each of the Cendant Entities, jointly and severally (each, a “Cendant
Indemnitor”) agrees to indemnify, defend and hold harmless each of the PHH Entities and the
respective officers, directors, employees, agents, attorneys, members and shareholders
(collectively called the “PHH Indemnitees”) from and against any and all Losses imposed on,
incurred by or asserted against such PHH Indemnitees, whether brought under common law or in
equity, or in contract, tort or otherwise, caused by, arising from or connected with (i) any
misrepresentation or the breach in any material respect by the Cendant Indemnitor of any term,
condition, representation, obligation or warranty of the Cendant Indemnitor set forth in this
Agreement or in any schedule, exhibit, or certificate furnished by the Cendant Indemnitor pursuant
to this Agreement; or (ii) the negligence or willful misconduct of the Cendant Indemnitor.

(c)           Indemnification of the Company. PMC shall indemnify and hold the Company harmless
from and against the following Losses incurred or sustained by the Company:

(i)      any amounts paid by the Company to Cendant Real Estate pursuant to
Section 9.1(c) hereof, and

(ii)      any interest paid by the Company pursuant to Section 8.1(d) of the
Operating Agreement.

Section 13.4      Lawful Conduct; Severability; Release. The Parties hereto shall not
perform, or be expected to perform, any act hereunder that is, or is reasonably believed to be, in
violation of any applicable state or federal rule or regulation. If any provision of this
Agreement is now or later in violation of any local, state or federal law, then such provision
shall be considered null and void for purposes of this Agreement with all other provisions
remaining in full force and effect. Each Party expressly releases each other Party from any
liability in the event any such Party cannot fulfill any obligation hereunder due to any
prohibition under local, state or federal laws pertaining to such obligation; provided,
however, that nothing herein shall relieve or release any Party hereto from any liability or
obligation under the Operating Agreement.

Section 13.5      Confidential Treatment. Each Party and its respective Affiliates shall
request confidential treatment for this Agreement and all Transaction Documents (or appropriate
provisions of this Agreement, where applicable) by all applicable regulatory bodies, including,
without limitation, the Securities and Exchange Commission, when making any
regulatory filings, registrations or notifications, to the extent such request may be made in
good faith.

Section 13.6      Expenses. Except as otherwise specified in this Agreement, all costs, fees
and expenses incurred in connection with the performance of any and all obligations pursuant to
this Agreement shall be paid by the Party incurring such costs, fees and expenses.

43

 

Section 13.7      Confidentiality and No Personal Solicitation. Each Party understands that
certain information which it has been furnished and will be furnished in connection with this
Agreement, including, but not limited to information concerning business procedures or prices,
policies or plans of the other Party or any of its Affiliates, is confidential and proprietary, and
each Party agrees that it will maintain the confidentiality of such information and will not
disclose it to others or use it except in connection with the proposed transactions contemplated by
this Agreement, without the prior written consent of the Party furnishing such information.
Information which is generally known in the industry concerning a Party or among such Party’s
creditors generally or which has been disclosed to the other Party by third parties who have a
right to do so shall not be deemed confidential or proprietary information for these purposes. If
PHH, any of its Affiliates or any officer, director, employee or agent of any of the foregoing is
at any time requested or required to disclose any information supplied to it by or on behalf of a
Cendant Entity or an Affiliate thereof in connection with the transactions contemplated hereby, PHH
agrees to provide the Cendant Entities with prompt notice of such request(s) so that the Cendant
Entities may seek an appropriate protective order and/or waive PHH’s compliance with the terms of
this Section 13.7. If the Cendant Entities, any of their Affiliates or any officer, director,
employee or agent of any of the foregoing is at any time requested or required to disclose any
information supplied to it by or on behalf of PHH or an Affiliate thereof in connection with the
transactions contemplated hereby, the Cendant Entities agree to provide PHH with prompt notice of
such request(s) so that PHH may seek an appropriate protective order and/or waive the Cendant
Entities’ compliance with the terms of this Section 13.7. Notwithstanding the terms of this
Section 13.7, if, in the absence of a protective order or the receipt of a waiver hereunder, any
Party is nonetheless, in the opinion of its counsel, compelled to disclose information concerning
the other Party to any tribunal or else stand liable for contempt or suffer other censure or
penalty, such Party may disclose such information to such tribunal without liability hereunder.
Upon termination of this Agreement, each Party agrees to promptly return to the other all
confidential materials, and all copies thereof, which have been furnished to it in connection with
the transactions contemplated hereby.

Section 13.8      Entire Agreement. This Agreement and the other Transaction Documents, as
defined in Section 1.1 of the Operating Agreement, constitute the entire agreement among the
Parties hereto and contains all of the agreements among such Parties with respect to the
subject matter hereof and thereof. This Agreement and the other Transaction Documents
supersede any and all other agreements, either oral or written, between such Parties with respect
to the subject matter hereof and thereof.

Section 13.9      Amendment. Except as expressly provided herein, this Agreement may be
amended only by a written agreement executed by all the Parties. Following such amendment, the
Agreement, as amended, shall be binding upon all Parties. Notwithstanding the foregoing, in the
event that Cendant Real Estate transfers all or part of its interest in Cendant Mobility or NRT,
and in connection therewith the Cendant Member transfers a portion of its Interest in the Company,
the Person acquiring such portion of the Cendant Member’s Interest shall become a party to this
Agreement and shall have all of the same rights and shall be subject to all of the same obligations

44

 

with respect to the business acquired from Cendant Real Estate as Cendant Real Estate has
hereunder, and the Parties shall execute an amendment to this Agreement to reflect the same.

Section 13.10      Binding Effect. This Agreement will be binding upon and shall inure to
the benefit of the Parties and their respective successors and assigns; provided,
however, that in the event that any Person acquires Cendant Real Estate, this Agreement will
continue to be binding upon Cendant Real Estate but shall not be binding upon such acquiring Person
or any Person that was an Affiliate of such acquiring Person immediately prior to such acquisition.
In the event that Cendant Real Estate sells, transfers or otherwise disposes of NRT substantially
as an entirety (whether by merger, sale of stock, sale of assets or otherwise), Cendant Real Estate
shall make proper provision so that NRT and the Person acquiring or succeeding to NRT shall
acknowledge and agree in writing that NRT shall assume all rights and obligations of Cendant Real
Estate under this Agreement solely as they relate to the business of NRT; provided,
however, that this Agreement shall not be binding upon any real estate or other business
already owned and operated by such acquiring Person or any Person that was an Affiliate of such
acquiring Person immediately prior to the completion of such acquisition.

Section 13.11      Negotiation and Mediation.

(a)           Negotiation. In the event of any dispute, controversy or claim arising out of or
relating to this Agreement or the breach, termination or validity thereof, or the transactions
contemplated hereby (a “Dispute”), upon the written notice of any Party hereto, the Parties
shall attempt in good faith to negotiate a resolution of the Dispute. If the Parties are unable
for any reason to resolve a Dispute within 30 days after the receipt of such notice, the Dispute
shall be submitted to mediation in accordance with Section 13.11(b) hereof.

(b)           Mediation. Any Dispute not resolved pursuant to Section 13.11(a) hereof shall, at
the request (the “Mediation Request”) of any Party (the “Disputing Party”), be submitted to mediation in accordance with the
then-prevailing Commercial Mediation Rules of the American Arbitration Association, as modified
herein (the “Rules”). The mediation shall be held in New York, New York. The Parties shall
have twenty (20) days from receipt by a Party of a Mediation Request to agree on a mediator. If no
mediator has been agreed upon by the Parties within twenty (20) days of receipt by a Party (or
Parties) of a Mediation Request, then any Party may request (on written notice to the other Party
or Parties), that the American Arbitration Association appoint a mediator in accordance with the
Rules. All mediation pursuant to this Section 13.11(b) shall be confidential and shall be treated
as compromise and settlement negotiations, and no oral or documentary representations made by the
Parties during such mediation shall be admissible for any purpose in any subsequent proceedings.
No Party shall disclose or permit the disclosure of any information about the evidence adduced or
the documents produced by another Party in the mediation proceedings or about the existence,
contents or results of the mediation award without the prior written consent of such other Party
except in the course of a judicial or regulatory proceeding or as may be required by law, rule or
regulation or requested by a governmental authority or securities

45

 

exchange. Before making any
disclosure permitted by the preceding sentence, the Party intending to make such disclosure shall
give the other Party a reasonable opportunity to protect its interests. If the Dispute has not
been resolved within sixty (60) days of the appointment of a mediator, or within ninety (90) days
of receipt by a Party of a Mediation Request in accordance with this Section 13.11 (whichever
occurs sooner) or within such longer period as the Parties may agree to in writing, then any Party
may file an action on the Dispute in any court having jurisdiction in accordance with Section 13.12
herein.

Section 13.12      Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CHOICE OF LAWS RULES THEREOF, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS. Any legal suit, action or proceeding against any of the Parties hereto arising out of
or relating to this Agreement shall only be instituted in any federal or state court in New York,
New York, pursuant to Section 5-1402 of the New York General Obligations Law, and each Party hereby
irrevocably submits to the exclusive jurisdiction of any such court in any such suit, action or
proceeding. The Parties hereby agree to venue in such courts and hereby waive, to the fullest
extent permitted by law, any claim that any such action or proceeding was brought in an
inconvenient forum. Each of the Parties hereby irrevocably waives all right to trial by jury in
any action, proceeding or counterclaim arising out of or relating to this Agreement.

Section 13.13      Effect of Waiver or Consent. No provision of this Agreement shall be
deemed to have been waived unless such waiver is contained in a written notice given to the Party
claiming such waiver has occurred. A waiver or consent, express or implied, to or of any breach or
default by any Person in the performance by that Person of its obligations with respect to
this Agreement is not a consent or waiver to or of any other breach or default in the performance
by that Person of the same or any other obligations of that Person with respect to this Agreement.
Failure on the part of a Person to complain of any act of any Person or to declare any Person in
default with respect to this Agreement, irrespective of how long that failure continues, does not
constitute a waiver by that Person of its rights with respect to that default until the applicable
statute-of-limitations period has run.

Section 13.14      Notices. To be effective, unless otherwise specified in this Agreement,
all notices and demands, consents and other communications under this Agreement must be in writing
and must be given (a) by depositing the same in the United States mail, postage prepaid, certified
or registered, return receipt requested, (b) by delivering the same in person and receiving a
signed receipt therefore, (c) by sending the same by a nationally recognized overnight delivery
service or (d) by telecopy (promptly confirmed by telephone and followed by personal or nationally
recognized overnight delivery). For purposes of notices, demands, consents and other
communications under this Agreement, the addresses of the Parties (and their respective counsel, if
applicable) shall be as follows:

If to a Cendant Entity, addressed to:

46

 

Cendant Corporation

9 West 57th Street

New York, New York 10021

Facsimile:  (212) 413-1922

Attention:      Eric J. Bock,

                      Executive Vice President-Law

                      and Corporate Secretary

If to a PHH Entity or the Company, addressed to:

PHH Mortgage Corporation

3000 Leadenhall Road

Mail Stop ACC

Mt. Laurel, NJ 08054

Facsimile:  (856) 917-0950

Attention:      William F. Brown,

                      Senior Vice President

                      and General Counsel

Copies of all notices hereunder shall be delivered to:

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036

Facsimile: (212) 735-2000

Attention: Fred B. White III, Esq.

Notices, demands, consents and other communications mailed in accordance with the foregoing clause
(a) shall be deemed to have been given, made and received three (3) Business Days following the
date so mailed. Notices, demands, consents and other communications given in accordance with the
foregoing clauses (b) and (d) shall be deemed to have been given, made and received when sent on a
Business Day or, if not a Business Day, then the next succeeding Business Day. Notices, demands,
consents and other communications given in accordance with the foregoing clause (c) shall be deemed
to have been given, made and received when delivered or refused on a Business Day or, if not a
Business Day, then the next succeeding Business Day. Any Party or its assignee may designate a
different address to which notices or demands shall thereafter be directed and such designation
shall be made by written notice given in the manner hereinabove required, provided, that at all
times each Party shall be required to maintain a notice address in the continental United States.

Section 13.15      No Assignment. Except as specifically provided elsewhere herein, no
Party may assign all or any part of its rights or obligations hereunder without first obtaining the
written consent of the other Party.

47

 

Section 13.16      Benefit of Parties Only. This Agreement is made for the sole benefit of
the Parties hereto and of their respective successors and permitted assigns. Nothing herein shall
create, or be deemed to create, a relationship between the Parties hereto, or either of them and
any third person in the nature of a third-party beneficiary, equitable lien or fiduciary
relationship.

Section 13.17      No Joint Venture; Legal Entity. The Parties hereto agree that the
relationships existing among them are contractual in nature, and that nothing contained herein or
in the other Transaction Documents is intended to create, or shall be deemed or construed as
creating, any legal entity between the Parties hereto or the Parties thereto other than as
specifically set forth in the Operating Agreement. This Agreement shall not be deemed to create a
joint venture or partnership among the Parties hereto. No Party hereto shall have the authority or
right, or hold itself out as having the authority or right, to assume, create or undertake any
obligation of any kind whatsoever, express of implied, on behalf of or in the name of any other
Party hereto, except as expressly provided herein or in the Operating Agreement.

Section 13.18      Counterparts. This Agreement may be executed in several counterparts,
each of which will be deemed an original but all of which will constitute one and the same.

48

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their
respective officers thereunto duly authorized, as of the day and year first above written.

	 	 	 	 	 
	 	 	CENDANT REAL ESTATE SERVICES GROUP, LLC
	 
	 	 	 	 
	

	 	By:
	 	/s/ Eric J. Bock
	

	 	 	 	 
	

	 	 	 	Name: Eric J. Bock
	

	 	 	 	Title: Executive Vice President and Secretary
	 
	 	 	 	 
	 	 	CENDANT REAL ESTATE SERVICES VENTURE PARTNER, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Eric J. Bock
	

	 	 	 	 
	

	 	 	 	Name: Eric J. Bock
	

	 	 	 	Title: Executive Vice President and Secretary
	 
	 	 	 	 
	 	 	PHH CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Terence W. Edwards
	

	 	 	 	 
	

	 	 	 	Name: Terence W. Edwards
	

	 	 	 	Title: President and Chief Executive Officer
	 
	 	 	 	 
	 	 	CENDANT MORTGAGE CORPORATION
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Terence W. Edwards
	

	 	 	 	 
	

	 	 	 	Name: Terence W. Edwards
	

	 	 	 	Title: President and Chief Executive Officer
	 
	 	 	 	 
	 	 	PHH HOME LOANS, LLC
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Terence W. Edwards
	

	 	 	 	 
	

	 	 	 	Name: Terence W. Edwards
	

	 	 	 	Title: President and Chief Executive Officer

49

 

	 	 	 	 	 
	 
	 	 	 	 
	 	 	PHH BROKER PARTNER CORPORATION
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Terence W. Edwards
	

	 	 	 	 
	

	 	 	 	Name: Terence W. Edwards
	

	 	 	 	Title: President

50

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}]]