Document:

Exhibit 10.1

Exhibit 10.1

WESTMORELAND COAL COMPANY

Performance-Based Restricted Stock Unit Agreement

Amended and Restated 2007 Equity Incentive Plan for Employees and Non-Employee Directors

	 	 	 
	Name of Recipient:
	 	 
	 

	 	 
	 
	 	 
	Performance-Based RSUs at Grant Date:
	 	 
	 

	 	 
	 
	 	 
	Performance Criterion:

	 	3-year Cumulative Free Cash Flow
	 
	 	 
	Grant Date:

	 	April 1, 2011

Westmoreland Coal Company (the “Company”) has selected you (the “Recipient”) to receive the
restricted stock unit award described above, which is subject to the provisions of the Company’s
Amended and Restated 2007 Equity Incentive Plan for Employees and Non-Employee Directors (the
“Plan”) and the terms and conditions contained in this Restricted Stock Unit Agreement (this
“Agreement”). The terms and conditions of the award of restricted stock units (the “RSUs”) made to
the Recipient are as follows:

	1.	 	Issuance of Restricted Stock Units. The performance-contingent RSUs are issued to
the Recipient on the Grant Date set forth above, in consideration of employment services
rendered and to be rendered by the Recipient to the Company. Each RSU represents one share of
the Company’s common stock, $2.50 par value per share (the “Common Stock”) upon vesting in
accordance with Section 3. Unless and until performance is completed and the RSUs vest,
Recipient will have no right to receive the shares of Common Stock.

	2.	 	Issuance of RSUs.

	 	a.	 	Performance Period. The Performance Period consists of a cumulative
three-year measurement period.

	 	b.	 	Award. Subject to the terms of this Agreement and the Plan, the
Recipient is hereby granted the opportunity to earn the RSUs as shown above in
accordance with the terms of the remainder of this Agreement.

	 	c.	 	Settlement of Awards.

	 	i.	 	Form of Settlement. RSUs will be settled in shares
of Common Stock on the date that the RSUs vest if the performance criterion
has been met.
The Committee, at its sole discretion, can elect to pay any or all RSUs in the
form cash, equivalent to the closing stock price of shares of Common Stock on the
date that the RSUs vest.

 

 

 

	 	ii.	 	Distribution of RSUs. The shares of Common Stock
payable upon vesting of the RSUs shall be distributed to you as soon as
practical following the vesting date. Notwithstanding any other provisions of
this Agreement, the Company shall not be obligated to deliver the RSUs if the
delivery thereof shall constitute a violation of any provision of any law or
of any regulation of any governmental authority, and delivery of the RSUs may
be postponed for such period as may be required to comply with any
requirements under any law or regulation applicable to the issuance or
delivery of such shares. The Recipient agrees that his or her right to
receive the RSUs shall be subject to the vesting schedule set forth in Section
3 of this Agreement, the termination provisions set forth in Section 4 of this
Agreement, and the restrictions on transfer set forth in Section 5 of this
Agreement.

	3.	 	Vesting.

	 	a.	 	Vesting Schedule. Unless otherwise provided in this Agreement or the
Plan, the RSUs shall 100% vest on the third anniversary of the Grant Date upon the
successful achievement of the performance criterion. Should the Company fail to
achieve the performance criterion, all RSUs shall be forfeited.

	 	b.	 	Vesting upon Death or Disability. RSUs will be earned on a pro-rata
basis based on the date of death or Disability and will be paid out at the end of the
three-year period, with the payout determined based on the final performance
determination. For purposes of this Agreement, “Disability” is as used in the
Company’s long-term disability plan, if any; if not defined in the long-term disability
plan, is a physical or mental infirmity which impairs the Recipient’s ability to
substantially perform his or her duties for a period of 180 consecutive days.

	 	c.	 	Reorganization Event. If the Company undergoes a Reorganization Event
(as defined in the Plan) other than a liquidation or dissolution, the RSUs will
represent a right to receive the cash, securities, or other property into which the
Common Stock of the Company was converted or for which it was exchanged pursuant to the
Reorganization Event. Upon a liquidation or dissolution of the Company, all
restrictions and conditions on all RSUs are automatically deemed terminated.

	4.	 	Termination of RSUs Upon Employment Termination. In the event that the Recipient
ceases to be employed by the Company for any reason or no reason, with or without cause, all
of the RSUs that are unvested as of the time of such employment termination shall be
terminated immediately and automatically, without the payment of any consideration to the
Recipient, effective as of such termination of employment. The Recipient shall have no
further rights with respect to any RSUs that are so terminated, and shall have no further
right to receive a distribution. If the Recipient is employed by a subsidiary of the Company,
any references in this Agreement to employment with the Company shall instead be deemed to
refer to employment with such subsidiary.

 

 

 

	5.	 	Restrictions on Transfer. The Recipient shall not sell, assign, transfer, pledge,
hypothecate, or otherwise dispose of, by operation of law or otherwise (collectively
“transfer”) any RSUs, or any interest therein, until such RSUs have vested. The Company
shall not be required to treat as owner of such RSUs any transferee to whom such RSUs have
been transferred in violation of any of the provisions of this Agreement.

	6.	 	Rights as a Shareholder. The Recipient shall have no right to vote the shares of
Common Stock or to act in respect of the Common Stock at any meeting of shareholders and is
not entitled to any dividends paid with respect to the Common Stock until issuance upon
vesting.

	7.	 	Provisions of the Plan. This Agreement is subject to the provisions of the Plan, a
copy of which will be furnished to you upon your request.

	8.	 	Tax Matters.

	 	a.	 	Acknowledgments. The Recipient acknowledges that he or she is
responsible for obtaining the advice of the Recipient’s own tax and financial advisors
with respect to the federal and state tax considerations resulting from Recipient’s
receipt of the RSUs. The Recipient understands that the Company will report to
appropriate taxing authorities the payment to the Recipient of compensation income upon
the vesting of the RSUs. The Recipient understands that the Recipient (and not the
Company) shall be responsible for the Recipient’s federal and state tax liability that
may arise in connection with the acquisition, vesting, and/or disposition of the RSUs.

	 	b.	 	Withholding. The Recipient acknowledges and agrees that the Company
has the right to deduct from payments of any kind otherwise due to the Recipient any
federal, state, local or other taxes of any kind required by law to be withheld with
respect to the RSUs. On each date on which RSUs vest, the Company shall deliver
written notice to the Recipient of the amount of withholding taxes due with respect to
the vesting of the RSUs that vest on
such date; provided, however, that the total tax withholding cannot exceed the Company’s
minimum statutory withholding obligations (based on minimum statutory withholding rates
for federal and state tax purposes, including payroll taxes, that are applicable to such
supplemental taxable income). In satisfaction of its withholding obligations, the
Company shall reduce the cash distribution by the applicable withholding amount. Should
the RSUs be distributed in the form of shares of Company Stock, then the Company shall
reduce the number of RSUs deliverable to Recipient in respect of such vesting by the
number of RSUs that have a fair market value on such vesting date (calculated using the
last reported sale price of the common stock of the Company on the principal stock
exchange on which the Common Stock is traded on such vesting date) equal to the amount of
the Company’s tax withholding obligation in connection with the vesting of such RSUs.
Any fractional number of RSUs resulting from tax withholding shall be rounded up to the
nearest whole number of RSUs. With respect to tax withholding amounts, the Company has
all of the rights specified in Section 9 of this Agreement and has no obligations to the
Recipient except as expressly stated in Section 9 of this Agreement.

 

 

 

	9.	 	Miscellaneous.

	 	a.	 	Authority of Compensation and Benefits Committee. In making any
decisions or taking any actions with respect to the matters covered by this Agreement,
the Compensation and Benefits Committee shall have all of the authority and discretion,
and shall be subject to all of the protections, provided for in the Plan. All decisions
and actions by the Compensation and Benefits Committee with respect to this Agreement
shall be made in the Compensation and Benefits Committee’s discretion and shall be
final and binding on the Recipient.

	 	b.	 	No Right to Continued Employment. The Recipient acknowledges and
agrees that, notwithstanding the fact that the vesting of the RSUs is contingent upon
his or her continued employment by the Company, this Agreement does not constitute an
express or implied promise of continued employment or confer upon the Recipient any
rights with respect to continued employment by the Company.

	 	c.	 	Governing Law. This Agreement shall be construed, interpreted, and
enforced in accordance with the internal laws of the State of Delaware without regard
to any applicable conflict of law provisions.

	 	d.	 	Conflicts and Interpretation. In the event of any conflict between
this Agreement and the Plan, this Agreement shall control. In the event of any
ambiguity in this Agreement, or any matters as to which this Agreement is
silent, the Plan shall govern, including, without limitation, the provisions thereof
pursuant to which the Compensation and Benefits Committee has the power, among others, to
(i) interpret the Plan, (ii) amend and repeal administrative rules, guidelines, and
practices relating to the Plan and (iii) make all other determinations deemed necessary
or advisable for the administration of the Plan.

	 	e.	 	Compliance with Internal Revenue Service Tax Code.

	 	i.	 	IRC Section 83. The RSUs granted under this Agreement
are governed by Section 83 of the Internal Revenue Code.

	 	ii.	 	IRC Section 409A. Section 409A of the Code imposes a
number of requirements on “non-qualified deferred compensation plans and
arrangements.” This Agreement and the Plan shall be operated in compliance
with Section 409A of the Code and each provision Plan shall be interpreted, to
the extent possible, to comply with Section 409A of the Code. Notwithstanding
any provision of the Plan to the contrary, in the event that the Employer
determines that any provision of the Plan is not in compliance with Section
409A of the Code, the Employer may (i) adopt such amendments to the Plan and
appropriate policies and procedures, including amendments and policies with
retroactive effect, that the Employer determines necessary or appropriate to
preserve the intended tax treatment of the Plan benefits provided by the Plan
and/or (ii) take such other actions as the Employer determines necessary or
appropriate to comply with the requirements of Section 409A of the Code.

 

 

 

	 	f.	 	Binding Agreement. Subject to the limitation on the transferability of
this grant contained herein, this Agreement will be binding upon and inure to the
benefit of the heirs, legatees, legal representatives, successors, and assigns of the
parties hereto.

	 	g.	 	Captions. Captions provided herein are for convenience only and are not
to serve as a basis for interpretation or construction of this Agreement.

	 	h.	 	Agreement Severable. In the event that any provision in this Agreement
will be held invalid or unenforceable, such provision will be severable from, and such
invalidity or unenforceability will not be construed to have any effect on, the
remaining provisions of this Agreement.

	 	i.	 	Modifications to the Agreement. This Agreement constitutes the entire
understanding of the parties on the subjects covered. The Employee expressly warrants
that he is not accepting this Agreement in reliance on any
promises, representations, or inducements other than those contained herein.
Modifications to this Agreement can be made only in an express written contract executed
by a duly authorized officer of the Company.

	 	j.	 	Recipient’s Acknowledgments. The Recipient acknowledges that he or she
has read this Agreement, has read the Plan and the Information About Restricted Stock
Units (“Information”), and understands the terms and conditions of this Agreement, the
Plan and the Information.

	 	 	 	 	 
	 	WESTMORELAND COAL COMPANY

 	 
	 	By:  	/s/ Jennifer S. Grafton
 	 
	 	 	Name:  	Jennifer S. Grafton 	 
	 	 	Title:  	General Counsel and Secretary 	 

Accepted and Agreed:

	 	 	 
	 

Name:exv10w1

Exhibit 10.1

SEPARATION AGREEMENT

     THIS SEPARATION AGREEMENT (“Agreement”) is executed as of May 6, 2011, by and between Sandra
E. Bell (“Ms. Bell”) and PHH Corporation (the “Company”).

     WHEREAS, Ms. Bell’s employment was terminated by the Company without cause and Ms. Bell is no
longer as Executive Vice President and Chief Financial Officer of the Company, effective as of
March 1, 2011 (the “Termination Date”);

     WHEREAS, during Ms. Bell’s employment with the Company she was given access to the Company’s
confidential, proprietary and trade secret information and the Company’s employees, customers and
contacts; and

     WHEREAS, the parties desire to provide for certain payments and benefits as consideration for
Ms. Bell’s agreement to certain restrictive covenants and her execution of a general release of
claims.

     NOW THEREFORE, intending to be legally bound hereby, the Company and Ms. Bell agree as
follows:

Last Day of Employment

     Ms. Bell’s employment with the Company and any of its subsidiaries and affiliates is hereby
terminated on the Termination Date. She has received her salary through the Termination Date and
her bonus for the year ended December 31, 2010 and has been reimbursed for all business expenses
incurred on or prior to the Termination Date in accordance with the Company’s policies.

Release and Covenant Not to Sue.

     In consideration for the benefits and payments specified in this Agreement, Ms. Bell hereby
fully and forever releases and discharges the Company and each of its subsidiaries and affiliates,
and all of their predecessors and successors, assigns, officers, directors, trustees, employees,
agents and attorneys, past and present (“Releasees”) of and from any and all claims, demands,
liens, agreements, contracts, covenants, actions, suits, causes of action, obligations,
controversies, debts, costs, expenses, damages, judgments, orders and liabilities, of whatever kind
or nature, direct or indirect, in law, equity or otherwise, whether known or unknown, arising
through the date of this Agreement, out of Ms. Bell’s employment with the Company or any Releasee,
including the termination thereof. By this paragraph Ms. Bell waives any claims which Ms. Bell has
or may have against Releasees, or any of them. This includes all rights and obligations under any
federal, state or local laws or ordinances pertaining to employment, including but not limited to
any claims for relief or causes of action under the Age Discrimination in Employment Act, 29 U.S.C.
§621 et seq., or any other federal, state or local statute, ordinance or regulation regarding
discrimination in employment, all claims for wrongful discharge, all claims that Releasees, or any
of them, dealt unfairly with Ms. Bell, in bad faith or in violation of any contract or agreement,
expressed or implied, that may have existed between Releasees, or any of them, and Ms. Bell, and
all claims against Releasees, or any of them, for assault, battery, personal injury, emotional
distress, pain and suffering.

 

 

     Ms. Bell expressly represents that she has not filed a lawsuit or initiated any other
administrative proceeding against Releasees, or any of them, and that she has not assigned any
claim against the Releasees, or any of them, Ms. Bell further promises not to initiate a lawsuit or
to bring any other claim against Releasees, or any of them, arising out of or in any way related to
Ms. Bell’s employment by the Company or any Releasee, including the termination of that employment.
This Agreement will not prevent Ms. Bell from filing a charge with the Equal Employment
Opportunity Commission (or similar state agency) or participating in any investigation conducted by
the Equal Employment Opportunity Commission (or similar state agency); provided, however, that any
claims by Ms. Bell for personal relief in connection with such a charge or investigation (such as
reinstatement or monetary damages) would be barred by this Agreement.

     The foregoing will not be deemed to release the Company from any of the following claims,
entitlements or rights of Ms. Bell for or to:

	 	1.	 	Claims or actions brought, in good faith, solely to enforce or clarify the
promises, rights, entitlements, obligations, and benefits provided in this Agreement;
	 
	 	2.	 	Vested benefits under retirement plans sponsored by the Company in which Ms.
Bell is a participant, based on services performed on or prior to the Termination Date;
	 
	 	3.	 	Benefits under welfare plans sponsored by the Company in which Ms. Bell was a
participant, based on either (i) her participation in such plans on the Termination
Date or (ii) her participation pursuant to any continuation of coverage under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, (“COBRA”), but only
to the extent COBRA is applicable to any such plan and only to the extent COBRA is
elected by Ms. Bell;
	 
	 	4.	 	Rights to convert coverage under an existing life insurance policy provided by
the Company, subject to the conversion rights of such policy;
	 
	 	5.	 	Coverage, if any, under any policy of liability or directors and officers
liability insurance for matters subject to said policies for activities arising out of
or in any way related to Ms. Bell’s employment prior to the Termination Date;
	 
	 	6.	 	Any right to indemnification or cost of defense from or by the Company pursuant
to the Company’s by-laws or charter, or duly adopted resolution of the Company’s Board
of Directors for activities and actions by Ms. Bell as an agent, officer, or employee
of the Company, prior to the Termination Date;
	 
	 	7.	 	Earned wages and compensation, accrued vacation and accrued fringe benefits, or
reimbursement for authorized expenses acquired or incurred before the Termination Date;
and
	 
	 	8.	 	Any counterclaims in connection with a lawsuit or administrative proceeding in
which the Company, its successors, assigns or subrogees seek legal or equitable relief
from Ms. Bell provided such counterclaim (i) arises out of the transaction or
occurrence that is the subject matter of the claim raised by the Company in such
lawsuit or proceeding, (ii) does not require for adjudication the joinder or
presence of third parties, and (iii) does not relate to or arise out of the
termination of Ms. Bell’s employment or involve any claim for compensation or
benefits for services rendered to the Company.

-2-

 

     Additionally, the Company agrees that it will continue to cover Ms. Bell under any policy of
liability or directors and officers liability insurance, but only to the same extent it makes
coverage available to other former officers and directors and this release does not release any
rights Ms. Bell may have under such coverage.

Rescission Right.

     Ms. Bell expressly acknowledges and recites that (a) she has read and understands the terms of
this Agreement in its entirety, (b) she has entered into this Agreement knowingly and voluntarily,
without any duress or coercion; (c) she has been advised orally and is hereby advised in writing to
consult with an attorney with respect to this Agreement before signing it; (d) she was provided
twenty-one (21) calendar days after the receipt of this Agreement to consider its terms before
signing it; and (e) she has seven (7) calendar days from the date of signing to terminate and
revoke this Agreement in which case this Agreement will be unenforceable, null and void. Ms. Bell
may revoke this Agreement during those seven (7) days by providing written notice of revocation to
the Company. The revocation must be delivered to the General Counsel of PHH Corporation, 3000
Leadenhall Road, Mail Stop LGL, Mt. Laurel, NJ 08054.

Consideration.

     In consideration of Ms. Bell’s execution of and failure to revoke this Agreement contained,
and her continued compliance with the terms and conditions of this Agreement, the Company agrees to
pay or provide the following payments and benefits:

     (a) Pay to Ms. Bell, as severance, four hundred thousand dollars ($400,000) (the “Severance
Amount”). The Severance Amount shall be paid in installments, with each installment paid on each
pay date during the period commencing on the Termination Date and ending on February 29, 2012 (the
“Severance Period”), provided that no payment shall be made to Ms. Bell unless and until Ms. Bell
has signed this Agreement and it has become irrevocable. The payments scheduled to be paid after
the Termination Date and before this Agreement becomes irrevocable will not be paid until the first
pay date after the date that the Agreement becomes irrevocable. In accordance with Ms. Bell’s
request, payments will be made via direct deposit to the account she designated for her salary when
she was employed, unless and until Ms. Bell directs otherwise.

     (b) Allow Ms. Bell to continue to vest in any outstanding equity awards that have been awarded
to Ms. Bell under the PHH Corporation Amended and Restated 2005 Equity and Incentive Plan (the
“Equity Plan”), subject to the terms and conditions of the Equity Plan and any applicable award
agreement, on the same basis and at the same time as such awards would have vested had Ms. Bell
remained in the employ of the Company through November 30, 2011. Ms. Bell will have the right to
exercise the portion of any option that is vested and unexercised

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as of the Termination Date in accordance with the terms of the applicable option agreement
(which, for the sake of clarity, is through February 29, 2012). Ms. Bell may also exercise any
option which vests after the Termination Date pursuant to this Agreement for a period extending not
beyond the period that vested options as of the Termination Date could have been exercised under
the applicable option agreement.

     (c) Reimburse Ms. Bell for COBRA continuation coverage under the Company’s group health plan,
if elected by Ms. Bell and her eligible dependents, for the period commencing upon April 1, 2011,
and ending on the earlier to occur of the date she becomes covered under another group health plan
or March 31, 2012.

     (d) On March 1, 2012, the Company will pay to Ms. Bell a lump sum cash payment equal to two
hundred thousand dollars ($200,000.00); provided that Ms. Bell has complied with the terms of this
Agreement through that date.

     (e) Provide Ms. Bell reasonable outplacement services for up to twelve (12) months beginning
on the Termination Date, not to exceed $15,000.00 in fees. Fees for such outplacement services may
be paid for directly by the Company to a service provider selected by the Company or a provider of
her choice for which she provides to the Company documentation of outplacement expenses she incurs,
provided that the aggregate amount of such fees may not exceed $15,000.

     (f) Transfer to Ms. Bell, as soon as practicable following the date this Agreement becomes
irrevocable, but in no event later than 90 days from the date hereof, ownership of the car
currently provided to her by the Company.

     (g) The Company shall reimburse Ms. Bell in 2011 for the costs of her legal fees in 2011 in
connection with the negotiation and execution of this Agreement and Release in an amount not to
exceed $7,500.

     None of the foregoing payments or benefits will be made or provided if this Agreement has not
become irrevocable within 90 days after the Termination Date. Payment and provision of the
foregoing benefits are conditioned on Ms. Bell’s continued compliance with this Agreement.

     All amounts paid and property transferred under this Agreement shall be subject to applicable
withholdings for federal, state, and local taxes.

     Ms. Bell acknowledges that: (A) the payments and benefits set forth in this Agreement
constitute full settlement of all her rights arising out of her employment with the Company except
to matters specifically preserved herein, (B) she has no entitlement under any other severance or
similar arrangement maintained by the Company, and (C) except as otherwise provided specifically in
this Agreement, the Company does not and will not have any other liability or obligation to Ms.
Bell. Ms. Bell further acknowledges that, in the absence of her execution of this Agreement,
benefits and payments specified in the “Consideration” section of this Agreement would not
otherwise be due to Ms. Bell.

-4-

 

No Mitigation or Off-Set

     Ms. Bell is under no obligation to seek other employment and there shall be no offset against
amounts or benefits due to Ms. Bell under this Agreement as a result of any compensation that Ms.
Bell may earn in connection with future employment.

Covenants Not to Compete

     In further consideration for the benefits and payments set forth in this Agreement, Ms. Bell
agrees that she shall not compete with the Company or any of its subsidiaries or affiliates (the
“PHH Group”), as set forth below:

	 	1.	 	Ms. Bell agrees that, during the Non-Compete Period, she will not, directly or
indirectly, as an individual on Ms. Bell’s own account, or as an independent
contractor, employee, consultant, agent, partner, member, or joint venturer, (A)
provide any service or assistance to any Prohibited Entity or (B) otherwise be engaged
in the business of fleet management, prime mortgage origination and/or prime mortgage
servicing services as such businesses were conducted by the Company on the Termination
Date (which, for the sake of clarity, include, but are not limited to, appraisal
management services and tax services, but do not include default services, title
services and mortgage insurance). For this purpose, a “Prohibited Entity” is any one
of the following: Mike Albert Leasing, Inc.; Allstate Leasing, Inc.; ARI (Automotive
Rentals, Inc.); Donlen Corporation; Enterprises Leasing Company; GE Commercial Finance
Fleet Services; Emkay Vehicle Leasing; Lease Plan U.S.A.; Wheels, Incorporated;
American Leasing; BBL; MotoLease; Merchants Leasing; Sutton Leasing; ULTEA; The CEI
Group; Fleet Response; CCM; Union Leasing; Wells Fargo Home Mortgage; Bank of America
Mortgage; Chase Home Finance; Nexstar Financial; CitiMortgage, Inc.; GMAC Residential
Holdings; SunTrust Mortgage, Inc.; MetLife Bank; Quicken Loans, Inc.; CTX Mortgage; the
prime mortgage business of Branch Banking & Trust Co.; Pulte Mortgage; AmSouth
Mortgage; Fifth Third Mortgage; U.S. Bank Home Mortgage; Citizens Mortgage
Corporation; Nationstar Mortgage; and any successor of one or more of the foregoing
that is created by merger, consolidation or any other similar transaction. For the
sake of clarity, Ms. Bell (i) may provide investment or commercial banking services to
a Prohibited Entity, (ii) may consult or advise private equity firms, hedge funds or
other investment firms generally with respect to investments in the financial services
industry so long as she recuses herself from giving advice regarding the Company or a
Prohibited Entity (general advice to such investment firms that does not relate
specifically to the Company or a Prohibited Entity shall not be a breach of this
Agreement), (iii) be on the board of directors (or similar body) of an entity in the
financial service industry (other than a Prohibited Entity), (iv) may be employed by or
provide consulting services to a consulting firm, bank or other financial services firm
so long as she recuses herself from performing any work, or making recommendations,
related to the Company or any Prohibited Entity (general advice to such firm that does
not relate specifically to the Company or a Prohibited Entity shall not be a breach of
this Agreement). In the event that any

-5-

 

	 	 	 	Prohibited Entity merges or otherwise combines with a subsequent employer of Ms.
Bell or an employer of Ms. Bell subsequent to the commencement of her employment
decides to engage in the fleet management, prime mortgage origination and/or prime
mortgage servicing industry, Ms. Bell will take reasonable steps to recuse herself
from the business of such entity and such subsequent event shall not, in and of
itself, be a violation of this Agreement. Notwithstanding the foregoing, nothing in
this Agreement shall limit Ms. Bell, as an individual on Ms. Bell’s own account, or
as an independent contractor, employee, consultant, agent, partner, member, or joint
venturer, from providing any service or assistance to government-sponsored
enterprises or quasi-governmental agencies, including, without limitation, Fannie
Mae and Freddie Mac, provided that such enterprise or agency is not engaged in fleet
management, prime mortgage origination and/or prime mortgage servicing.

	 	2.	 	Ms. Bell acknowledges that the PHH Group’s businesses are conducted nationally
and agrees that the restrictions herein shall operate throughout the United States.
Nothing herein shall prohibit Ms. Bell from being a passive owner of not more than five
percent (5%) of the outstanding securities of any company that would be a competing
company as described in section 1 above, so long as Ms. Bell has no active
participation in the business of such company.
	 
	 	3.	 	Ms. Bell agrees that she will not, directly or indirectly, on her own behalf or
on behalf of any third party, solicit, induce or encourage, during the Restriction
Period, any person who was employed by the PHH Group on the Termination Date, and/or
any person who was employed by the PHH Group at any time during the twelve-month period
immediately preceding the Termination Date, to terminate their employment with the PHH
Group.
	 
	 	4.	 	Ms. Bell agrees that she will not, directly or indirectly, on her own behalf or
on behalf of any third party, during the Restriction Period, call on, or solicit any
person or entity who was a customer or client, of PHH Group at any time during the
twelve-month period immediately preceding the Termination Date for any purpose which
directly or indirectly competes with the business of the PHH Group.

     Ms. Bell agrees and acknowledges that the promises and covenants not to compete set forth
above each have a unique, very substantial and immeasurable value to the PHH Group, that the PHH
Group is engaged in a highly competitive industry, and that Ms. Bell is receiving significant
consideration in exchange for these promises and covenants. Ms. Bell acknowledges that the
promises and covenants set forth above are necessary for the reasonable and proper protection of
the PHH Group’s legitimate business interests; and that each and every promise and covenant is
reasonable with respect to activities restricted, geographic scope and length of time.

     The “Non-Compete Period” for purposes of these “Covenants Not to Compete” shall start on the
Termination Date and end on November 30, 2011. The “Restriction Period” for purposes of these
“Covenants Not to Compete” shall start on the Termination Date and end on the last day of the
Severance Period.

-6-

 

Confidential Information

     Ms. Bell acknowledges that as part of her employment with the PHH Group, she had access to
information that was not generally disclosed or made available to the public. Ms. Bell recognizes
that in order to guard the legitimate interests of the PHH Group, it is necessary for it to protect
all confidential information. Ms. Bell agrees to keep secret all non-public, confidential and/or
proprietary information, matters and materials of the PHH Group, and personal confidential or
otherwise proprietary information regarding the PHH Group’s employees, executives, directors or
consultants affiliated with the PHH Group, including, but not limited to, documents, materials or
information regarding, concerning or related to the PHH Group’s research and development, its
business relationships, corporate structure, financial information, financial dealings, fees,
charges, personnel, methods, trade secrets, systems, procedures, manuals, confidential reports,
clients or potential clients, financial information, business and strategic plans, proprietary
information regarding its financial or other business arrangements with the executives, sales
representatives, editors and other professionals with which it works, software programs and codes,
access codes, and other similar materials or information, as well as all other information relating
to the business of the PHH Group which is not generally known to the public or within the fleet
management and/or mortgage industries or any other industry or trade in which the PHH Group
competes (collectively, “Confidential Information”), to which Ms. Bell has had or may have access
and shall not use or disclose such Confidential Information to any person except (a) to the extent
required by applicable law, (b) to her personal advisors, to the extent such advisors agree to be
bound by this provision, or (c) to the minimum necessary to enforce this Agreement. This
obligation is understood to be in addition to any agreements Ms. Bell may have signed with the PHH
Group or any of its subsidiaries or affiliates concerning confidentiality and non-disclosure,
non-competition, non-solicitation, and assignment of inventions or other intellectual property
developments, which agreements will remain in full force and effect.

Non-Disparagement

     Ms. Bell will not disparage or defame, through verbal or written statements or otherwise, the
PHH Group or any of its members, directors, officers, agents or employees or otherwise take any
action which could reasonably be expected to adversely affect the reputation, business practices,
good will, products and services of the PHH Group or the personal or professional reputation of any
of the PHH Group’s members, directors, officers, agents or employees.

     The Company, in its official capacity, will direct its officers and directors not disparage or
defame, through verbal or written statements or otherwise, Ms. Bell or otherwise take any action
which could reasonably be expected to adversely affect Ms. Bell’s reputation.

     Neither this non-disparagement provision nor the cooperation section below shall be construed
to prevent any such person from testifying truthfully under oath in a legal or regulatory
proceeding.

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Enforcement of Restrictive Covenants

     Ms. Bell agrees and acknowledges that in the event of a breach or threatened breach by Ms.
Bell of one or more of the covenants and promises described above in “Covenants Not to Compete,”
“Confidential Information,” and “Non Disparagement,” the PHH Group may suffer irreparable harm that
is not compensable solely by damages. Ms. Bell agrees that under such circumstances, no further
payments, rights or benefits provided under the “Consideration” section this Agreement will be due
to Ms. Bell, Ms. Bell must repay to the Company amounts described under “Consideration” paid to her
in cash and upon payment or exercise of equity awards that would have terminated or not become
vested without operation of the provisions in “Consideration” above, within 10 days after demand by
the Company, and the PHH Group shall be entitled, upon application to a court of competent
jurisdiction, to obtain injunctive or other relief to enforce these promises and covenants. The
Company and any other member of the PHH Group will, in addition to the remedies provided in this
Agreement, be entitled to avail itself of all such other remedies as may now or hereafter exist at
law or in equity for compensation and for the specific enforcement of the covenants in this
Agreement. Resort to any remedy provided for in this Agreement or provided for by law will not
prevent the concurrent or subsequent employment of any other appropriate remedy or remedies or
preclude the Company or PHH Group’s recovery of monetary damages and compensation.

Cooperation

     Ms. Bell further agrees that, subject to reimbursement of her reasonable expenses, she will
cooperate with the Company (with due regard to her obligations to a subsequent employer) and any
of its subsidiaries and affiliates and their counsel with respect to any matter (including any
pending or future litigation, investigations, or governmental proceedings) which relates to matters
with which Ms. Bell was involved during her employment with the Company. Ms. Bell will render such
cooperation in a timely manner upon reasonable notice from the Company.

Challenge

     If Ms. Bell violates or successfully challenges the enforceability of any provisions of this
Agreement, no further payments, rights or benefits provided under the “Consideration” section this
Agreement will be due to Ms. Bell. However, Ms. Bell may seek clarification from the Company of
her rights and obligations under this Agreement, and, if a dispute remains after seeking
clarification, Ms. Bell may raise a dispute regarding her rights under this Agreement pursuant to
the Arbitration provisions of this Agreement.

Arbitration

     Any and all disputes arising under this Agreement or out of Ms. Bell’s employment with the
Company will be resolved exclusively by arbitration administered exclusively in New Jersey by JAMS,
pursuant to its then-prevailing Employment Arbitration Rules & Procedures, before an arbitrator or
arbitrators whose decision shall be final, binding and conclusive on the parties, and judgment on
the award may be entered in any court having jurisdiction. The Company shall bear any and all
costs of the arbitration process, excluding any attorneys’ fees incurred by Ms. Bell with regard to
such arbitration. Ms. Bell and the Company further acknowledge and agree that,

-8-

 

due to the nature of the confidential information, trade secrets, and intellectual property
belonging to the PHH Group to which Ms. Bell has been given access, and the likelihood of
significant harm that the PHH Group would suffer in the event that such information was disclosed
to third parties, nothing in this paragraph shall preclude the Company or any other member of the
PHH Group from seeking declaratory or injunctive relief to prevent Ms. Bell from violating, or
threatening to violate, the terms under the “Covenants Not to Compete,” “Confidential Information”
and “Non-Disparagement” sections of this Agreement. The exclusive forum for any action seeking
declaratory or injunctive relief under this Agreement shall be the state and federal courts sitting
in the state of New Jersey and each party to this Agreement consents to the exercise of personal
jurisdiction and venue by such courts.

	 	 	 	 	 

	 

	 	Acknowledgment (initial below):

Company:   DJC  
	 	 

Ms. Bell:  SEB  

Miscellaneous

     No Admission of Liability. This Agreement is not to be construed as an admission of
any violation of any federal, state or local statute, ordinance or regulation or of any duty owed
by the Company or any other person to Ms. Bell, or by Ms. Bell or any other person to the Company.
There have been no such violations, and both the Company and Ms. Bell specifically deny any such
violations.

     Absence of Reliance. Ms. Bell acknowledges that in agreeing to this Agreement, she
has not relied in any way upon representations or statements of the Company other than those
representations or statements set forth in this Agreement.

     No Reinstatement. Ms. Bell agrees that she will not apply for reinstatement with the
Company or any other member of the PHH Group or seek in any way to be reinstated, reemployed or
hired by the Company or any other member of the PHH Group in the future.

     Section Headings. The section headings are solely for convenience of reference and
shall not in any way affect the interpretation of this Agreement.

     Notice: All notices, requests, demands and other communications made or given in
connection with this Agreement shall be in writing and shall be deemed to have been duly given (a)
if hand delivered, at the same time delivered, or (b) at the time shown on the return receipt if
mailed in a certified postage prepaid envelope (return receipt requested) addressed to the
respective parties as follows:

     If to PHH Corporation:

	 	 	 	PHH Corporation

c/o General Counsel

3000 Leadenhall Road

Mt. Laurel, NJ 08054

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     If to Ms. Bell:

	 	 	 	Ms. Sandra E Bell

At her address in the payroll records of the Company

with a copy to:

Bonnie Klugman

Becker, Glynn, Melamed & Muffly, LLP

299 Park Avenue

New York, NY 10171

or to such other address as the party to whom notice is to be given may have previously furnished
to the other party in writing in the manner set forth above.

     409A Compliance: The payments and benefits provided under this Agreement will not be
paid or provided to Ms. Bell until six months and one day following the Termination Date, to the
extent necessary to avoid the imposition of additional tax under Section 409A of the Internal
Revenue Code and the Treasury Regulations thereunder (“Section 409A”). All such payments and
benefits that would otherwise have been paid or provided prior to six months and one day following
the Termination Date shall accrue and be paid in one lump sum or provided, as applicable, on such
date; provided, however, that benefits and payments under this Agreement may be made prior to such
date to the extent that the payments and benefits under “Consideration” in this Agreement are not
subject to the 6 month delay in payment described in Section 409A due to application of the
exemptions in Treasury Regulation Section 1.409A-1(b)(9)(iii) (the “two times, two year rule”),
Treasury Regulation Section 1.409A-1(b)(4) (the “short-term deferral rule”), Treasury Regulation
Section 1.409A-1(b)(9)(v)(B) (medical benefits), and Treasury Regulation Section
1.409A-1(b)(9)(v)(A) (outplacement services).

     For purposes of Section 409A, the right to a series of installment payments under this
Agreement shall be treated as a right to a series of separate payments. “Termination of
employment,” or words of similar import, as used in this Agreement means, for purposes of any
payments under this Agreement that are payments of deferred compensation subject to Section 409A,
Ms. Bell’s “separation from service” as defined in Section 409A.

     With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, Ms.
Bell, as specified under this Agreement, such reimbursement of expenses or provision of in-kind
benefits shall be subject to the following conditions to the extent necessary to avoid the
imposition of additional tax under Section 409A: (1) the expenses eligible for reimbursement or the
amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for
reimbursement or the amount of in-kind benefits provided in any other taxable year; (2) the
reimbursement of an eligible expense shall be made no later than the end of the year after the year
in which such expense was incurred; and (3) the right to reimbursement or in-kind benefits shall
not be subject to liquidation or exchange for another benefit.

     Successors and Assigns. This Agreement will inure to the benefit of and be binding
upon the Company and Ms. Bell and their respective successors, executors, administrators and heirs.
Ms. Bell may not make any assignment of this Agreement or any interest herein, by operation of law
or otherwise. The Company may assign this Agreement to any successor to all or

-10-

 

substantially all of its assets and business by means of liquidation, dissolution, merger,
consolidation, transfer of assets, or otherwise.

     Severability. Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law. However, if any provision of
this Agreement is held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability will be modified or reformed to the extent necessary to bring the
provision into compliance with applicable law and then enforced as reformed or modified.

     Entire Agreement; Amendments. Except as otherwise provided herein, this Agreement
contains the entire agreement and understanding of the parties hereto relating to the subject
matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and
understandings of every nature relating to the subject matter hereof. This Agreement may not be
changed or modified, except by an agreement in writing signed by each of the parties hereto.

     Governing Law. This Agreement will be governed by, and enforced in accordance with,
the laws of the State of New Jersey without regard to the application of the principles of
conflicts of laws.

     Counterparts and Facsimiles. This Agreement may be executed, including execution by
facsimile signature, in multiple counterparts, each of which will be deemed an original, and all of
which together will be deemed to be one and the same instrument.

[signature page to follow]

-11-

 

     IN WITNESS WHEREOF, Ms. Bell and the Company have executed this Agreement as of the date first
above written.

	 	 	 	 	 
	 	 	 
	 	/s/ Sandra E. Bell
 	  	 
	 	Sandra E.  Bell 

	 	 
	 	Date:  	April 29, 2011 	 
	 
	 	PHH CORPORATION

 	 
	 	By:  	/s/ David J. Coles
 	 
	 	 	 	 
	 	Date:  	May 6, 2011 	 
	 

-12-

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