Document:

EX-10.11

 

Exhibit 10.11

PHH CORPORATION

OFFICER DEFERRED COMPENSATION PLAN

ARTICLE 1-INTRODUCTION

1.1 Purpose of Plan

PHH Corporation has adopted the Plan set forth herein to provide a means by which certain
employees may elect to defer receipt of designated percentages or amounts of their Compensation and
to provide a means for certain other deferrals of Compensation.

1.2 Status of Plan

The Plan is intended to be “a plan which is unfunded and is maintained by an employer primarily for
the purpose of providing deferred compensation for a select group of management or highly
compensated employees” within the meaning of Sections 201(2) and 301(a)(3) of the Employee
Retirement Income Security Act of 1974 (“ERISA”), and shall be interpreted and administered to the
extent possible in a manner consistent with such intent.

ARTICLE 2-DEFINITIONS

Wherever used herein, the following terms have the meanings set forth below, unless a
different meaning is clearly required by the context:

2.1 Account means, for each Participant, the account established for his or her benefit under
Section 5.1.

2.2 Adoption Agreement means such agreement, if deemed by PHH Corporation to be necessary and
appropriate, between Merrill Lynch and the Employer establishing the Plan and/or containing all the
options selected by the Employer, as the same may be amended from time to time.

2.3 Change of Control Transaction means any transaction or series of transactions pursuant to or as
a result of which (i) during any period of not more than 24 months, individuals who at the
beginning of such period constitute the Board of Directors of PHH Corporation (the “Board”), and
any new director (other than a director designated by a third party who has entered into an
agreement to effect a transaction described in clause (ii), (iii) or (iv) of this section 2.3)
whose election by the Board or nomination for election by the PHH Corporation’s stockholders was
approved by a vote of at least a majority of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for election was
previously so approved (other than approval given in connection with an actual or threatened proxy
or election contest), cease for any reason to constitute at least a majority of the members of the
Board, (ii) any person or entity is or becomes, directly or indirectly, the beneficial owner of 50%
or more of the common stock of PHH Corporation (or other securities of the PHH Corporation having
generally the right to vote for election of the Board), (iii) PHH Corporation or any subsidiary
shall sell, assign or otherwise transfer, directly or indirectly, assets (including stock or other
securities of subsidiaries) having a fair market or book value or earning power of 50% or more of
the assets or earning power of PHH Corporation and its subsidiaries (taken as a whole) to any third
party, other than PHH Corporation or a wholly-owned subsidiary thereof, (iv) control of 50% or more
of the business of PHH Corporation shall be sold, assigned or otherwise transferred directly or
indirectly to any third party, (v) there is consummated a merger or consolidation of PHH
Corporation with any other corporation, other than (A) a merger or consolidation which would result
in the voting securities of PHH Corporation outstanding immediately prior to such event continuing
to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity or any parent thereof) at least 50% of the combined voting power of the securities
of PHH Corporation or such surviving entity or any parent thereof outstanding immediately after
such event or (B) a merger or consolidation effected to implement a

 

 

recapitalization of PHH Corporation (or similar transaction) in which no person or entity becomes
the beneficial owner or more than 50% or more of the combined voting power of PHH Corporation’s
then outstanding securities or (vi) the shareholders of PHH Corporation approve a plan of
liquidation or dissolution.

2.4 Code means the Internal Revenue Code of 1986, as amended from time to time. Reference to any
section or subsection of the Code includes reference to any comparable or succeeding provisions of
any legislation which amends, supplements or replaces such section or subsection.

2.5 Compensation has the meaning elected by the Employer in the Adoption Agreement, or as otherwise
determined by the Employer.

2.6 Effective Date means the date chosen in the Adoption Agreement as of which the Plan first
becomes effective from time to time.

2.7 Election Form means the participation election form as approved and prescribed by the Plan
Administrator.

2.8 Elective Deferral means the portion of Compensation which is deferred by a Participant under
Section 4.1.

2.9 Eligible Employee means, on the Effective Date or on any Entry Date thereafter, each employee
of the Employer who satisfies the criteria established in the Adoption Agreement, or as otherwise
determined by the Employer in its sole discretion.

2.10 Employer means the corporation referred to in the Adoption Agreement, any successor to all or
a major portion of the Employer’s assets or business which assumes the obligations of the Employer,
and each other entity that is affiliated with the Employer which adopts the Plan with the consent
of the Employer, provided that the Employer that signs the Adoption Agreement shall have the sole
power to amend this Plan and shall be the Plan Administrator if no other person or entity is so
serving at any time.

2.11 ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time.
Reference to any section or subsection of ERISA includes reference to any comparable or succeeding
provisions of any legislation which amends, supplements or replaces such section or subsection.

2.12 Incentive Contribution means a discretionary additional contribution made by the Employer as
described in Section 4.3.

2.13 Insolvent means either (i) the Employer is unable to pay its debts as they become due, or (ii)
the Employer is subject to a pending proceeding as a debtor under the United States Bankruptcy
Code.

2.14 Matching Deferral means a deferral for the benefit of a Participant as described in Section
4.2.

2.15 Participant means any individual who participates in the Plan in accordance with Article 3.

2.16 Plan means this PHH Officer Corporation Deferred Compensation Plan, as amended from time to
time, and the provisions of the Adoption Agreement incorporated therein.

2.17 Plan Administrator means the person, persons or entity designated by the Employer in the
Adoption Agreement to administer the Plan and to serve as the agent for “Company” with respect to
the Trust as contemplated by the agreement establishing the Trust. If no such person or entity is
so serving at any time, the Employer shall be the Plan Administrator.

2.18 Plan Year means the 12-month period chosen in the Adoption Agreement.

 

 

2.19 Total and Permanent Disability means the inability of a Participant to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted or can be expected to last for a
continuous period of not less than 12 months, and the permanence and degree of which shall be
supported by medical evidence satisfactory to the Plan Administrator.

2.20 Trust means the trust established by the Employer that identifies the Plan as a plan with
respect to which assets are to be held by the Trustee.

2.21 Trustee means the trustee or trustees under the Trust.

2.22 Year of Service means the computation period and service requirement elected in the Adoption
Agreement.

ARTICLE 3-PARTICIPATION

3.1 Commencement of Participation

Any individual who elects to defer part of his or her Compensation in accordance with Section 4.1
shall become a Participant in the Plan as of the date such deferrals commence in accordance with
Section 4.1. Any individual who is not already a Participant and whose Account is credited with an
Incentive Contribution shall become a Participant as of the date such amount is credited.

3.2 Continued Participation

A Participant in the Plan shall continue to be a Participant so long as any amount remains credited
to his or her Account. Notwithstanding the foregoing, Participation in respect of any calendar
year is not a guarantee of participation in respect of any future calendar year.

ARTICLE 4-ELECTIVE AND MATCHING DEFERRALS

4.1 Elective Deferrals

An individual who is an Eligible Employee on the Effective Date may, by completing an Elections
Form and filing it with the Plan Administrator within 30 days following the Effective Date, elect
to defer a percentage or dollar amount of one or more payments of Compensation, on such terms as
the Plan Administrator may permit, which are payable to the Participant after the date on which the
individual files the Election Form. Any individual who becomes an Eligible Employee after the
Effective Date may, by completing an Election Form and filing it with the Plan Administrator within
30 days following the date on which the Plan Administrator gives such individual written notice
that the individual is an Eligible Employee, elect to defer a percentage or dollar amount of one or
more payments of Compensation, on such terms as the Plan Administrator may permit, which are
payable to the Participant after the date on which the individual files the Election Form. Any
Eligible Employee who has not otherwise initially elected to defer Compensation in accordance with
this paragraph 4.1 may elect to defer a percentage or dollar amount of one or more payments of
Compensation, on such terms as the Plan Administrator may permit, commencing with Compensation paid
in the next succeeding Plan Year, by completing an Election Form prior to the first day of such
succeeding Plan Year. In addition, a Participant may defer all or part of the amount of any
elective deferral or matching contribution made on his or her behalf to the Employer’s 401(k) plan
for the prior Plan Year but treated as an excess deferral, an excess contribution or otherwise
limited by the application of the limitations of sections 401(k), 401(m), 415 or 402(q) of the
Code, so long as the Participant so indicates on an Election Form. A Participant’s Compensation
shall be reduced in accordance with the Participant’s election hereunder and amounts deferred
hereunder shall be paid by the Employer to the Trust as soon as administratively feasible and
credited to the Participant’s Account as of the date the amounts are received by the Trustee.

 

 

An election to defer a percentage or dollar amount of Compensation for any Plan Year shall apply
for subsequent Plan Years unless changed or revoked. A Participant may change or revoke his or her
deferral election as of the first day of any Plan Year by giving written notice to the Plan
Administrator before such first day (or any such earlier date as the Plan Administrator may
prescribe).

4.2 Matching Deferrals

After each payroll period, monthly, quarterly, or annually, at the Employer’s discretion, the
Employer shall contribute to the Trust Matching Deferrals equal to the rate of Matching
Contribution selected by the Employer and multiplied by the amount of the Elective Deferrals
credited to the Participants’ Accounts for such period under Section 4.1. Each Matching Deferral
will be credited, as of the later of the date it is received by the Trustee or the date the Trustee
receives from the Plan Administrator such instructions as the Trustee may reasonably require to
allocate the amount received among the asset accounts maintained by the Trustee, to the
Participants’ Accounts pro rata in accordance with the amount of Elective Deferrals of each
Participant which are taken into account in calculating the Matching Deferral.

4.3 Incentive Contributions

In addition to other contributions provided for under the Plan, the Employer may, in its sole
discretion, select one or more Eligible Employees to receive an Incentive Contribution to his or
her Account on such terms as the Employer shall specify at the time it makes the contribution. For
example, the Employer may contribute an amount to a Participant’s Account and condition the payment
of that amount and accrued earnings thereon upon the Participant remaining employed by the Employer
for an additional specified period of time. The terms specified by the Employer shall supersede any
other provision of this Plan as regards Incentive Contributions and earnings with respect thereto,
provided that if the Employer does not specify a method of distribution, the Incentive Contribution
shall be distributed in a manner consistent with the election last made by the particular
Participant prior to the year in which the Incentive Contribution is made. The Employer, in its
discretion, may permit the Participant to designate a distribution schedule for a particular
Incentive Contribution provided that such designation is made prior to the time that the Employer
finally determines that the Participant will receive the Incentive Contribution.

ARTICLE 5-ACCOUNTS

5.1 Accounts

The Plan Administrator shall establish an Account for each Participant reflecting Elective
Deferrals, Matching Deferrals and Incentive Contributions made for the Participant’s benefit
together with any adjustments for income, gain or loss and any payments from the Account. The Plan
Administrator may cause the Trustee to maintain and invest separate asset accounts corresponding to
each Participant’s Account. The Plan Administrator shall establish sub-accounts for each
Participant that has more than one election in effect under Section 7.1 and such other sub-accounts
as are necessary for the proper administration of the Plan. As of the last business day of each
calendar quarter, the Plan Administrator shall provide the Participant with a statement of his or
her Account reflecting the income, gains and losses (realized and unrealized), amounts of
deferrals, and distributions of such Account since the prior statement.

5.2 Investments

The assets of the Trust shall be invested in such investments as the Trustee shall determine. The
Trustee may (but is not required to) consider the Employer’s or a Participant’s investment
preferences when investing the assets attributable to a Participant’s Account.

ARTICLE 6-VESTING

6.1 General

 

 

A Participant shall be immediately vested in, i.e., shall have a nonforfeitable right to,
all Elective Deferrals, and all income and gain attributable thereto, credited to his or her
Account. A Participant shall become vested in the portion of his or her Account attributable to
Matching Deferrals and income and gain attributable thereto in accordance with the schedule
selected by the Employer in the Adoption Agreement, subject to earlier vesting in accordance with
Sections 6.3, 6.4, and 6.5.

6.2 Vesting Service

For purposes of applying the vesting schedule in the Adoption Agreement, a Participant shall be
considered to have completed a Year of Service for each complete year of full-time service with the
Employer or an Affiliate, measured from the Participant’s first date of such employment, unless the
Employer also maintains a 401(k) plan that is qualified under section 401(a) of the Internal
Revenue Code in which the Participant participates, in which case the rules governing vesting
service under that plan shall also be controlling under this Plan.

6.3 Change of Control

A Participant shall become fully vested in his or her Account immediately prior to a Change of
Control of the Employer.

6.4 Death or Disability

A Participant shall become fully vested in his or her Account immediately prior to termination of
the Participant’s employment by reason of the Participant’s death or Total and Permanent
Disability. Whether a Participant’s termination of employment is by reason of the Participant’s
Total and Permanent Disability shall be determined by the Plan Administrator in its sole
discretion.

ARTICLE 7 – PAYMENTS

7.1 Election as to Time and Form of Payment

A Participant shall elect (on the Election Form used to elect to defer Compensation under Section
4.1) the date at which the Elective Deferrals and vested Matching Deferrals (including any earnings
attributable thereto) will commence to be paid to the Participant. Such date will be either a
fixed date, which shall be no earlier than 5 years from the date such election is made or shall be
the date which is 7 months following the Participant’s termination of employment for any reason
whatsoever. The Participant shall also elect thereon for payments to be paid in either:

	 	a.	 	a single lump-sum payment; or

	 
	 	b.	 	annual installments over a period elected by the Participant up to 10 years, the amount of
each installment to equal the balance of his or her Account
immediately prior to the installment divided by the number of installments

remaining to be paid.

Each such election will be effective for the Plan Year for which it is made and succeeding Plan
Years. Such election may not be changed under any circumstances. Except as provided in Sections
7.2 and 7.3, payment of a Participant’s Account shall be made in accordance with the Participant’s
elections under this Section 7.1.

7.2 Change of Control Transaction

As soon as possible following a Change of Control Transaction, each Participant shall be paid his
or her entire Account balance (including any amount vested pursuant to Section 6.3) in a single
lump sum.

7.3 Death

 

 

If a Participant dies prior to the complete distribution of his or her Account, the balance of the
Account shall be paid as soon as practicable to the Participant’s designated beneficiary or
beneficiaries, in the form elected by the Participant under either of the following options:

	 	a.	 	a single lump-sum payment; or

	 
	 	b.	 	annual installments over a period elected by the Participant up to 10 years, the
amount of each installment to equal the balance of the Account immediately
prior to the installment divided by the number of installments remaining to be
paid.

Any designation of beneficiary and form of payment to such beneficiary shall be made by the
Participant on an Election Form filed with the Plan Administrator and may be changed by the
Participant at any time by filing another Election Form containing the revised instructions. If no
beneficiary is designated or no designated beneficiary survives the Participant, payment shall be
made to the Participant’s surviving spouse, or, if none, to his or her issue per stirpes, in a
single payment. If no spouse or issue survives the Participant, payment shall be made in a single
lump sum to the Participant’s estate.

7.4 Taxes

All federal, state or local taxes that the Plan Administrator determines are required to be
withheld from any payments made pursuant to this Article 7 shall be withheld.

ARTICLE 8 – PLAN ADMINISTRATOR

8.1 Plan Administration and Interpretation

The Plan Administrator shall oversee the administration of the Plan. The Plan Administrator shall
have complete control and authority to determine the rights and benefits and all claims, demands
and actions arising out of the provisions of the Plan of any Participant, beneficiary, deceased
Participant, or other person having or claiming to have any interest under the Plan. The Plan
Administrator shall have complete discretion to interpret the Plan and to decide all matters under
the Plan. Such interpretation and decision shall be final, conclusive and binding on all
Participants and any person claiming under or through any Participant, in the absence of clear and
convincing evidence that the Plan Administrator acted arbitrarily and capriciously. Any
individual(s) serving as Plan Administrator who is a Participant will not vote or act on any matter
relating solely to himself or herself. When making a determination or calculation, the Plan
Administrator shall be entitled to rely on information furnished by a Participant, a beneficiary,
the Employer or the Trustee. The Plan Administrator shall have the responsibility for complying
with any reporting and disclosure requirements or ERISA.

8.2 Powers, Duties, Procedures, Etc.

The Plan Administrator shall have such powers and duties, may adopt such rules and tables, may act
in accordance with such procedures, may appoint such officers or agents, may delegate such powers
and duties, may receive such reimbursements and compensation, and shall follow such claims and
appeal procedures with respect to the Plan as it may establish.

8.3 Information

To enable the Plan Administrator to perform its functions, the Employer shall supply full and
timely information to the Plan Administrator on all matters relating to the compensation of
Participants, their employment, retirement, death, termination of employment, and such other
pertinent facts as the Plan Administrator may require.

8.4 Indemnification of Plan Administrator

 

 

The Employer agrees to indemnify and to defend to the fullest extent permitted by law any
officer(s) or employee(s) who serve as Plan Administrator (including any such individual who
formerly served as Plan Administrator) against all liabilities, damages, costs and expenses
(including attorneys’ fees and amounts paid in settlement of any claims approved by the Employer)
occasioned by any act or omission to act in connection with the Plan, if such act or omission is in
good faith.

ARTICLE 9 – AMENDMENT AND TERMINATION

9.1 Amendments

The Employer shall have the right to amend the Plan from time to time, subject to Section 9.3, by
an instrument in writing which has been executed on the Employer’s behalf by its duly authorized
officer.

9.2 Termination of Plan

This Plan is strictly a voluntary undertaking on the part of the Employer and shall not be deemed
to constitute a contract between the Employer and any Eligible Employee (or any other employee) or
a consideration for, or an inducement or condition of employment for, the performance of the
services by any Eligible Employee (or other employee). The Employer reserves the right to
terminate the Plan at any time, subject to Section 9.3, by an instrument in writing which has been
executed on the Employer’s behalf by its duly authorized officer. Upon termination, the Employer
may (a) elect to continue to maintain the Trust to pay benefits hereunder as they become due as if
the Plan had not terminated or (b) direct the Trustee to pay promptly to Participants (or their
beneficiaries) the vested balance of their Accounts. For purposes of the preceding sentence, in
the event the Employer chooses to implement clause (b), the Account balances of all Participants
who are in the employ of the Employer at the time the Trustee is directed to pay such balances
shall become fully vested and nonforfeitable. After Participants and their beneficiaries are paid
all Plan benefits to which they are entitled, all remaining assets of the Trust attributable to
Participants who terminated employment with the Employer prior to termination of the Plan and who
were not fully vested in their Accounts under Article 6 at that time shall be returned to the
Employer.

9.3 Existing Rights

No amendment or termination of the Plan shall adversely affect the rights of any Participant with
respect to amounts that have been credited to his or her Account prior to the date of such
amendment or termination.

ARTICLE 10 – MISCELLANEOUS

10.1 No Funding

The Plan constitutes a mere promise by the Employer to make payments in accordance with the terms
of the Plan and Participants and beneficiaries shall have the status of general unsecured creditors
of the Employer. Nothing in the Plan will be construed to give any employee or any other person
rights to any specific assets of the Employer or of any other person. In all events, it is the
intent of the Employer that the Plan be treated as unfunded for tax
purposes and for purposes of
Title I of ERISA.

10.2 Non-assignability

None of the benefits, payments, proceeds or claims of any Participant or beneficiary shall be
subject to any claim of any creditor of any Participant or beneficiary and, in particular, the same
shall not be subject to attachment or garnishment or other legal process by any creditor of such
Participant or beneficiary, nor shall any Participant or beneficiary have any right to alienate,
anticipate, commute, pledge, encumber or assign any of the benefits or payments or proceeds which
he or she may expect to receive, contingently or otherwise, under the Plan.

 

 

10.3 Limitation of Participants’ Rights

Nothing contained in the Plan shall confer upon any person a right to be employed or to continue in
the employ of the Employer, or interfere in any way with the right of the Employer to terminate the
employment of a Participant in the Plan at any time, with or without cause.

10.4 Participants Bound

Any action with respect to the Plan taken by the Plan Administrator or the Employer or the Trustee
or any action authorized by or taken at the direction of the Plan Administrator, the Employer or
the Trustee shall be conclusive upon all Participants and beneficiaries entitled to benefits under
the Plan.

10.5 Receipt and Release

Any payment to any Participant or beneficiary in accordance with the provisions of the Plan shall,
to the extent thereof, be in full satisfaction of all claims against the Employer, the Plan
Administrator and the Trustee under the Plan, and the Plan Administrator may require such
Participant or beneficiary, as a condition precedent to such payment, to execute a receipt and
release to such effect. If any Participant or beneficiary is determined by the Plan Administrator
to be incompetent by reason of physical or mental disability (including minority) to give a valid
receipt and release, the Plan Administrator may cause the payment or payments becoming due to such
person to be made to another person for his or her benefit without responsibility on the part of
the Plan Administrator, the Employer or the Trustee to follow the application of such funds.

10.6 Governing Law

The Plan shall be construed, administered, and governed in all respects under and by the laws of
the state of New York, without effect to conflicts of laws provisions thereof. If any provision
shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining
provisions hereof shall continue to be fully effective.

10.7 Headings and Subheadings

Headings and subheadings in this Plan are inserted for convenience only and are not to be
considered in the construction of the provisions hereof.EX-10.12

 

Exhibit 10.12

PHH CORPORATION

SAVINGS RESTORATION PLAN

 

 

Table of Contents

	 	 	 	 	 
	Article I

	 	Sponsorship and Purpose of Plan
	 	 
	 
	 	 	 	 
	Article II

	 	Definitions	 	 
	 
	 	 	 	 
	Article III

	 	Enrollment and Participation	 	 
	 
	 	 	 	 
	Article IV

	 	Deferral Contributions	 	 
	 
	 	 	 	 
	Article V

	 	Earnings	 	 
	 
	 	 	 	 
	Article VI

	 	Vesting	 	 
	 
	 	 	 	 
	Article VII

	 	Distribution and Form of Benefits	 	 
	 
	 	 	 	 
	Article VIII

	 	Beneficiary Designation	 	 
	 
	 	 	 	 
	Article IX

	 	Plan Administration	 	 
	 
	 	 	 	 
	Article X

	 	Amendment and Termination	 	 
	 
	 	 	 	 
	Article XI

	 	Miscellaneous	 	 
	 
	 	 	 	 
	Article XII

	 	Funding	 	 

 

 

PHH CORPORATION

SAVINGS RESTORATION PLAN

Article I — Sponsorship and Purpose of Plan

1.1      Sponsorship. PHH Corporation, a corporation organized under the laws of the State of
Maryland, sponsors the PHH Corporation Savings Restoration Plan, a non-qualified deferred
compensation plan for the benefit of Participants and Beneficiaries (as defined herein).

1.2      Purpose of Plan. The Plan is established and maintained for the purpose of enabling a
select group of management or highly compensated employees of the Employer (as defined herein) to
enhance their retirement security by permitting the deferral of compensation in excess of certain
limitations on contributions imposed by the Internal Revenue Code of 1986 on the PHH Corporation
Employee Savings Plan.

Article II – Definitions

Wherever used in the Plan the following terms when capitalized shall have the meanings set forth in
this Article, unless otherwise required by the context.

2.1      Account shall mean the book entries maintained by the Employer or its designee on
behalf of each Participant reflecting Deferral Contributions that have been made and adjusted to
reflect Earnings; provided, however, that the existence of such Account shall not be deemed to vest
in any Participant any right, title or interest in or to any specific assets of the Employer.

2.2      Beneficiary shall mean the person(s) or entity designated by the Participant in
accordance with the provisions of Article VIII to receive benefits under the Plan as a result of a
Participant’s death.

2.3      Board shall mean the Board of Directors of the Sponsor.

2.4      Code shall mean the Internal Revenue Code of 1986, as amended, including regulations
thereunder.

2.5      Committee shall mean Compensation Committee of the Board; provided, that the
Committee may designate certain administrative functions to the Sponsor’s Employee Benefits
Committee.

2.6      Compensation shall have the meaning set forth under the Qualified Plan, and
additionally any bonus payments to the extent determined by the Committee from time to time in its
sole discretion, but without regard to the limitations provided under Code Section 401(a)(17).

1

 

2.7      Deferral Contribution shall mean the amount allocated to a Participant’s Account for
any Plan Year pursuant to Section 4.1 hereof.

2.8      Earnings shall mean the amount determined in accordance with Article V hereof by which
the value of a Participant’s Account is adjusted.

2.9      Effective Date shall mean February 1, 2005.

2.10      Eligible Employee shall mean, with respect to any Plan Year, any officer or other
employee of the Employer who is each of (i) selected for participation by the Committee based upon
eligibility criteria that it shall establish from time to time in its sole discretion, (ii) a
Management or Highly Compensated Employee (within the meaning of ERISA, as defined below) and (iii)
eligible for participation in the Qualified Plan.

2.11      Employer shall mean the Sponsor and its successors and assigns and any subsidiary or
affiliate of the Employer that adopts the Plan with the approval of the Board.

2.12      Enrollment Agreement shall mean the agreement, in a form acceptable to the Committee
(including the use of a Voice Response System), by which an Eligible Employee may enroll as a
Participant, and which will document the Participant’s elections under this Plan, including a
Participant’s Deferral Contribution election, Investment Fund selection, Beneficiary designation
and form of distribution.

2.13      Investment Fund shall mean one or more investment vehicles in which amounts allocated
to a Participant’s Account shall be deemed to have been invested and which shall be used to
determine Earnings in accordance with Article V.

2.14      Participant shall mean any Eligible Employee who has enrolled in the Plan upon the
execution of an Enrollment Agreement, or any former Eligible Employee or Beneficiary for whom an
Account is maintained.

2.15      Plan shall mean this PHH Corporation Savings Restoration Plan.

2.16      Plan Year shall mean the twelve consecutive month period ending each December
31st.

2.17      Qualified Plan shall mean the PHH Corporation Employee Savings Plan, as amended and
restated from time to time.

2.18      Sponsor shall mean PHH Corporation.

2.19      Termination of Employment shall mean a Participant’s separation from the service of
the Employer by reason of resignation, discharge, retirement, disability or death. Separation from
service as a result of a transfer to an affiliate or subsidiary of the Employer does not constitute
Termination of Employment.

2

 

2.20      Valuation Date shall mean the last day of each Plan Year and any other date upon which
the value of a Participant’s Account is determinable from the custodial records.

Article III — Enrollment and Participation

3.1      Enrollment. Upon initially becoming eligible to participate, an Eligible Employee
shall enroll in the Plan by executing and filing an Enrollment Agreement with the Committee no
later than the 30th day preceding the beginning of the Plan Year, or such other date
approved by the Committee.

3.2      Continuation of Participation. A Participant shall continue to remain a Participant as
long as he or she is entitled to benefits under the Plan.

3.3      Inactive Participants. In the event a Participant is no longer an Eligible Employee,
such Participant shall become an inactive Participant, retaining all the rights described herein,
except the right to make any future Deferral Contributions.

Article IV — Deferral Contributions

4.1      Deferral Contribution. For each Plan Year, a Participant may elect to defer up to 8%
of the Compensation payable to such Participant. Such election to defer shall be reflected in the
Enrollment Agreement in effect for the Participant or in such other manner acceptable to the
Committee. A Participant’s Deferral Contribution shall not be made available to such Participant,
except as provided in Article VII hereof, but instead shall be allocated to the Participant’s
Account as soon as administratively feasible following the date such Compensation would otherwise
have been paid to the Participant.

4.2      Application of Deferral Contribution Election. The amount of a Participant’s Deferral
Contribution election shall be effective for compensation payable in the Plan Year following the
execution of the Enrollment Agreement. Such election shall continue to remain in effect for all
future Plan Years until a new election has been made. Except as provided in Section 7.3 hereof, a
Participant’s election may not be changed during the Plan Year. Any change to the amount of a
Participant’s Deferral Contribution election shall be effective for Compensation payable in the
Plan Year following the Plan Year during which such new election has been made.

Article V — Earnings

5.1      Investment Direction. Each Participant has the right to select, subject to the
approval of the Committee, the Investment Fund in which the Deferral Contributions and any related
Earnings will be deemed to have been invested as of the date such amounts have been allocated to
the Participant’s Account. Any selection made by the Participant shall be reflected on the
Enrollment Agreement or in such other manner acceptable to the Committee. The Committee, in its
sole discretion, may allow, limit or prohibit changes by a Participant to his or her selected
Investment Funds. Neither the Employer nor the Committee is liable for any loss resulting from the
Investment Fund vehicles offered for investment of a Participant’s Account nor from a Participant’s
direction of

3

 

the investment of any part of his or her Account. Any Participant election may be subject to the
approval of any trustee of any trust holding Deferred Contributions.

5.2      Calculation of Earnings and Losses. As of each Valuation Date, earnings or losses will
be credited to each Participant’s Account for the period beginning with the previous Valuation Date
and ending with the current Valuation Date. Earnings and losses shall be based on rate of return
(including a negative return) determined by the performance of the Investment Fund.

Article VI — Vesting

6.1      Vesting. A Participant’s Deferral Contributions and any related Earnings shall at all
times be fully vested.

Article VII — Distribution and Form of Benefits

7.1      Timing of Distribution. Except as provided in Section 7.3 hereof, amounts credited to
a Participant’s Account shall be distributed to the Participant or Beneficiary as soon as
administratively feasible following the later to occur of the close of the Plan Year during which
the Participant has incurred a Termination of Employment and the date which is seven months
following the Participant’s Termination of Employment. Distribution under this Section shall be
made at such times as the Committee shall determine, and the Participant’s Accounts shall be
reduced by the amount distributed.

7.2      Form of Benefit. Amounts distributable pursuant to Section 7.1 hereof will be paid in
any of the following forms: (i) in one lump sum or (ii) in installments payable for a term not to
exceed five years. Distributions shall be made in the form elected by the Participant in writing
in a manner acceptable to the Committee. Such election will be as made in such Participant’s
Enrollment Agreement at the time of such Participant’s initial participation in the Plan and can
only be amended in accordance with the procedures established and maintained by the Committee.
Notwithstanding the above, if (i) there is no valid election in effect at the time of a
Participant’s Termination of Employment, or (ii) the Account balance of a Participant on the date
of such Participant’s Termination of Employment is less than $25,000, the Committee may, in its
sole discretion, distribute the entire Account balance in a single lump sum.

7.3      Unforeseeable Emergency Distribution. Notwithstanding Section 7.1, in the event a
Participant (or a former Participant who is then receiving a distribution of his or her Accounts
pursuant to the installment method under Section 7.2) suffers an Unforeseeable Emergency (as
hereinafter defined), the Company shall distribute to such Participant as a hardship benefit (the
“Hardship Benefit”) all or any portion of the Participant’s Accounts, but only such amount
necessary to satisfy the Unforeseeable Emergency, not of tax withstanding. An Unforeseeable
Emergency shall be distributed at such times as the Committee shall determine, and the
Participant’s Accounts shall be reduced by the amount so distributed. Financial Hardship shall
have the meaning set forth under Section 409A of the Code and/or the regulations thereunder as in
effect from time to time. The Committee shall make the decision of whether or not, and to what
extent, an Unforeseeable Emergency is payable to the Participant, based on the facts and

4

 

circumstances of the case. The Committee’s decision as to whether or not an Unforeseeable
Emergency is payable, and to what extent it is payable, shall be final, conclusive and binding on
all persons.

Article VIII — Beneficiary Designation

8.1      Designation. Upon enrollment in the Plan, each Participant shall file with the
Committee a written designation of one or more persons as the Beneficiary who shall be entitled to
receive the amount, if any, payable under the Plan upon the Participant’s death. A Participant
may, from time to time, revoke or change his or her Beneficiary designation without the consent of
any prior Beneficiary by filing a new such designation with the Committee on a form designated by
the Committee for such purpose. The most recent such designation received by the Committee shall
be controlling and shall be effective upon receipt and acceptance by the Committee; provided,
however, that no designation, or change or revocation thereof, shall be effective unless received
by the Committee prior to the Participant’s death.

8.2      Failure to Designate Beneficiary. If no such Beneficiary designation is in effect at
the time of a Participant’s death, or if no designated Beneficiary survives the Participant, or if
such designation conflicts with law, the Participant’s estate shall be deemed to have been
designated as the Beneficiary and shall receive the payment of the amount, if any, payable under
the Plan upon the Participant’s death. If the Committee is in doubt as to the right of any person
to receive such amount, the Committee may retain such amount, without liability for any interest
thereon, until the rights thereto are determined, or the Committee may pay such amount into any
court of appropriate jurisdiction and such payment shall be a complete discharge of the obligations
of the Employer under the Plan.

8.3      Payment to Representatives. If the Committee determines that a Participant or
Beneficiary is legally incapable of giving valid receipt and discharge for the payment due from
this Plan, such amounts shall be paid to a duly appointed and acting guardian, if any. If no such
guardian is appointed and acting, the Committee may retain such amount, without liability for any
interest thereon, until the rights thereto are determined, or the Committee may pay such amount
into any court of appropriate jurisdiction on behalf of the Participant or Beneficiary and such
payment shall be a complete discharge of the obligations of the Employer under the Plan.

Article IX — Plan Administration

9.1      Powers and Duties of Administrative Committee. The Committee shall have absolute
discretion with respect to the operation, interpretation and administration of the Plan. The
Committee’s powers and duties shall include, but not be limited to:

	 	a)	 	Establishing Accounts for Participants;

	 	b)	 	Determining eligibility for, and amount of, distributions from the Plan;

5

 

	 	c)	 	Adopting, interpreting, altering, amending or revoking rules and regulations
necessary to administer the Plan;

	 	d)	 	Delegating ministerial duties and employing outside professionals as may be
required; and

	 	e)	 	Entering into agreements or taking such other actions on behalf of the Employer
as are necessary to implement the Plan.

In the event a member of the Committee is also a Participant, such member shall not be entitled to
make any decision with respect to his or her own participation in, and benefits under, the Plan.
Any action of the Committee may be taken by a vote or written consent of the majority of the
Committee members entitled to act. Any Committee member shall be entitled to represent the
Committee, including the signing of any certificate or other written direction, with regard to any
action approved by the Committee.

9.2      Expenses. All expenses, including, but not limited to any investment fees,
administrative fees and income taxes, incurred with respect to the Plan shall be paid by the
Employer.

9.3      Claims Procedure. In the event a claim by a Participant relating to the amount of any
distribution is denied, such person will be given written notice by the Committee of such denial,
which notice shall set forth the reason for denial. The Participant may, within sixty (60) days
after receiving the notice, request a review of such denial by filing notice in writing with the
Committee. The Committee, in its discretion, may request a meeting with the Participant to clarify
any matters it deems pertinent. The Committee will render a written decision within sixty (60)
days after receipt of such request, stating the reason for its decision. If the Committee is
unable to respond within sixty (60) days, an additional sixty (60) days may be taken by the
Committee to respond. The Participant will be notified if the additional time is necessary by the
end of the initial sixty (60) day period. The determination of the Committee as to any disputed
questions or issues arising under the Plan and all interpretations, determinations and decisions of
the Committee with respect to any claim hereunder shall be final, conclusive and binding upon all
persons.

Article X — Amendment and Termination

10.1      Amendment. Except as expressly provided in Section 10.3 hereof, the Sponsor, in its
sole discretion, by action of its Board or other governing body charged with the management of the
Sponsor, or its designee, may amend the Plan, in whole or in part, at any time.

10.2      Termination. The Sponsor, by action of its Board or such other governing body charged
with the management of the Sponsor, or its designee, may terminate this Plan at any time. Upon
termination of the Plan, all future Deferral Contributions hereof will be suspended. However,
earnings will continue to be credited in accordance with Article V until such time that a complete
distribution has been made. Upon such Plan termination, distributions from the Plan will be made
in accordance with Article VII as if no such termination had occurred.

6

 

10.3      Protection of Benefit. No amendment or termination of this Plan shall reduce the
rights of any Participant with respect to amounts allocated to a Participant’s Account prior to the
date of such amendment or termination without the Participant’s express written consent.

Article XI — Miscellaneous

11.1      Tax Withholding. The Employer shall have the right to deduct an amount sufficient in
the opinion of the Employer to satisfy all federal, state and other governmental tax withholding
requirements relating to any distribution from the Plan.

11.2      Offset to Benefits. Amounts payable to the Participant under the Plan may be offset
by any reasonable monetary claims the Employer has against the Participant.

11.3      Inalienability. Except as provided in Section 11.2 hereof, a Participant’s right to
payments under this Plan are not subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Participant. In no
event shall the Employer make any payment under this Plan to any person or entity other than the
Participant or Beneficiary, unless required by law.

11.4      Employment. The adoption and maintenance of this Plan does not constitute a contract
between the Employer and any Participant and is not consideration for the employment of any person.
Nothing contained herein gives any Participant the right to be retained in the employ of the
Employer or derogates from the right of the Employer to discharge any Participant at any time and
for any reason without regard to the effect of such discharge upon his or her rights as a
Participant in the Plan.

11.5      Indemnity of Committee. The Employer indemnifies and holds harmless the Committee and
its designees from and against any and all losses resulting from any liability to which the
Committee may be subjected by reason of any act or conduct (except willful misconduct or gross
negligence) in its official capacity in the administration of this Plan, including all costs and
expenses reasonably incurred in its defense, in case the Employer fails to provide such defense.

11.6      Liability. No member of the Board, the Committee, or management of the Employer shall
be liable to any person for any action taken under the Plan.

11.7      Rules of Construction.

(a)      Governing Law. The construction and operation of this Plan are governed by the
laws of the State of Delaware, except to the extent superseded by federal law.

(b)      Headings. The headings of Articles, Sections and Subsections are for reference
only and are not to be utilized in construing the Plan.

(c)      Gender. Unless clearly inappropriate, all pronouns of whatever gender refer

7

 

indifferently to persons or objects of any gender.

(d)      Singular and Plural. Unless clearly inappropriate, singular terms refer also to
the plural number and vice versa.

(e)      Severability. If any provision of this Plan is held illegal or invalid for any
reason, the remaining provisions are to remain in full force and effect and to be reformed,
construed and enforced in accordance with the purposes of the Plan as if the illegal or
invalid provision did not exist.

Article XII — Funding

12.1      Unfunded Plan. This Plan is intended to be unfunded for tax purposes and all
distributions hereunder shall be made out of the general assets of the Employer. No Participant or
Beneficiary shall have any right, title, interest, or claim in or to any assets of the Employer
other than as an unsecured creditor. The Plan constitutes only an unsecured commitment by the
Employer to pay benefits to the extent, and subject to the limitations, provided for herein.
Although, this Plan constitutes an “employee benefit plan” within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974 (“ERISA”), it is intended to cover only a
select group of management or highly compensated employees pursuant to Sections 201, 301 and 401 of
ERISA.

12.2      Trust. Notwithstanding the foregoing, the Employer shall contribute to an irrevocable
grantor trust amounts allocated to a Participant’s Account under Article IV and V hereof. The
assets of such trust shall be available to the creditors of the Employer in the event of bankruptcy
or insolvency. To the extent of the trust assets, amounts due under the Plan shall be payable
first from such trust to Plan Participants before any claim is made against the Employer. The
Committee may provide direction to the trustee or custodian on behalf of the Employer as it deems
necessary to provide for the proper distribution of benefits from the trust.

8

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