Document:

exv10w1

Exhibit 10.1

FORM OF

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is made and entered into this  day
of                     , 201___(“Agreement”), among PHH Corporation, a Maryland corporation (the “Company”),
and        (“Indemnitee”).

WHEREAS, the Company desires to attract and retain the services of highly qualified individuals,
such as Indemnitee, to serve as officers and directors of the Company;

WHEREAS, highly qualified individuals have become more reluctant to serve corporations as directors
or officers unless they are provided adequate protection through insurance and indemnification
against the risks of claims and actions against them arising out of their service to and activities
on behalf of such corporations;

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that the increased
difficulty in attracting and retaining such individuals is detrimental to the best interests of the
Company’s stockholders and the Company should act to assure such individuals that there will be
increased certainty of such protection in the future;

WHEREAS, it is reasonable, prudent and necessary for the Company to contractually obligate itself
to indemnify, and to advance expenses on behalf of, such individuals to the fullest extent
permitted by applicable law so that they will serve or continue to serve the Company free from
undue concern that they will not be so indemnified;

WHEREAS, at the request of the Company, Indemnitee currently serves as [a member of the Company’s
Board of Directors] [and] [an officer of the Company] and may, therefore, be subjected to claims,
suits or proceedings arising as a result of [his][her] service;

WHEREAS, as an inducement to Indemnitee to continue to serve as such [director] [and] [officer],
the Company has agreed to enter into this Agreement to indemnify and advance expenses and costs
incurred by Indemnitee in connection with any claims, suits or proceedings arising as a result of
[his][her] service, to the maximum extent permitted by law;

WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service for or
on behalf of the Company on the condition that Indemnitee be indemnified on the terms set forth in
this Agreement; and

WHEREAS, this Agreement is a supplement to and in furtherance of the provisions of the Company’s
Charter and Bylaws regarding indemnification and advancement of expenses and shall not be deemed a
substitute therefor, nor to diminish or abrogate any rights of the Indemnitee thereunder.

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company
and Indemnitee do hereby covenant and agree as follows:

Section 1. Definitions. For purposes of this Agreement:

	(a)	 	“Change in Control” shall be deemed to have occurred if the event set forth in any one of the
following paragraphs shall have occurred:

	 	(i)	 	any Person is or becomes the Beneficial Owner, directly or indirectly,
of securities of the Company (not including in the securities beneficially owned by

 

 

	 	 	 	such Person any securities acquired directly from the Company) representing 40% or
more of the combined voting power of the Company’s then outstanding securities,
excluding any Person who becomes such a Beneficial Owner in connection with a
transaction described in clause (1) of paragraph (iii) below; or
	 
	 	(ii)	 	the following individuals cease for any reason to constitute a majority
of the number of directors then serving: individuals who, on the date hereof,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by the Board or
nomination for election by the Company’s stockholders was approved or recommended
by a vote of at least two-thirds (2/3) of the directors then still in office who
either were directors on the date hereof or whose appointment, election or
nomination for election was previously so approved or recommended; or
	 
	 	(iii)	 	there is consummated a merger or consolidation of the Company or any
direct or indirect subsidiary of the Company with any other corporation, other than
(1) a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior to such merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof), in combination with the
ownership of any trustee or other fiduciary holding securities under an employee
benefit plan of the Company or any subsidiary of the Company, at least 70% of the
combined voting power of the securities of the Company or such surviving entity or
any parent thereof outstanding immediately after such merger or consolidation, and
in proportion to their voting power immediately prior to such merger or
consolidation, or (2) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no Person is or
becomes the Beneficial Owner, directly or indirectly, of securities of the Company
representing 25% or more of the combined voting power of the Company’s then
outstanding securities; or
	 
	 	(iv)	 	the stockholders of the Company approve a plan of complete liquidation
or dissolution of the Company or there is consummated an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets,
other than a sale or disposition by the Company of all or substantially all of the
Company’s assets to an entity, at least 70% of the combined voting power of the
voting securities of which are owned by stockholders of the Company in
substantially the same proportions as their ownership of the Company immediately
prior to such sale. Notwithstanding the foregoing, a “Change in Control” shall not
be deemed to have occurred by virtue of the consummation of any transaction or
series of integrated transactions immediately following which the record holders of
the common stock of the Company immediately prior to such transaction or series of
transactions continue to have substantially the same proportionate ownership in an
entity which owns all or substantially all of the assets of the Company immediately
following such transaction or series of transactions.

	(b)	 	“Corporate Status” means the status of a person who is or was a director, officer, employee
or agent of the Company or one or more of its subsidiaries.

 

 

	(c)	 	“Disinterested Director” means a director of the Company who is not and was not a party to
the Proceeding in respect of which indemnification is sought by Indemnitee.
	 
	(d)	 	“Effective Date” means the date set forth in the first paragraph of this Agreement.
	 
	(e)	 	“Expenses” shall include any and all reasonable and out-of-pocket attorneys’ fees and costs,
retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage, delivery service
fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual
or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and
any other disbursements or expenses incurred in connection with prosecuting, defending,
preparing to prosecute or defend, investigating, being or preparing to be a witness in or
otherwise participating in a Proceeding. Expenses shall also include Expenses incurred in
connection with any appeal resulting from any Proceeding including, without limitation, the
premium, security for and other costs relating to any cost bond, supersedeas bond or other
appeal bond or its equivalent.
	 
	(f)	 	“Independent Counsel” means a law firm, or a member of a law firm that is experienced in
matters of corporation law and neither presently is, nor in the past five years has been,
retained to represent: (i) the Company or Indemnitee in any matter material to either such
party, or (ii) any other party to the Proceeding giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any
person who, under the applicable standards of professional conduct then prevailing, would have
a conflict of interest in representing either the Company or Indemnitee in an action to
determine Indemnitee’s rights under this Agreement. If a Change in Control has not occurred,
Independent Counsel shall be selected by the Board, with the approval of Indemnitee, which
approval will not be unreasonably withheld. If a Change in Control has occurred, Independent
Counsel shall be selected by Indemnitee, with the approval of the Board, which approval will
not be unreasonably withheld.
	 
	(g)	 	“Person” as used herein shall be broadly interpreted to include, without limitation, any
corporation, company, group, partnership or individual.
	 
	(h)	 	“Proceeding” includes any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, administrative hearing or any other
proceeding, whether civil, criminal, administrative or investigative (including on appeal),
except one (i) initiated by an Indemnitee pursuant to Section 11 of this Agreement to enforce
his rights under this Agreement or (ii) pending or completed on or before the Effective Date,
unless otherwise specifically agreed in writing by the Company and Indemnitee. If Indemnitee
reasonably believes that a given situation may lead to or culminate in the institution of a
Proceeding, such situation shall also be considered a Proceeding.

Section 2. Services by Indemnitee. Indemnitee currently serves as a director, officer or
employee of the Company or of one or more of its subsidiaries. However, this Agreement shall not
impose any obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company
or any of its subsidiaries beyond any period otherwise required by law or by other agreements or
commitments of the parties, if any.

Section 3. Indemnification — General. The Company shall indemnify, and advance Expenses to,
Indemnitee (a) as provided in this Agreement and (b) otherwise to the fullest extent permitted by
Maryland law in effect on the date hereof (including applicable case law) and as amended from time
to time; provided, however, that no change in Maryland law shall have the effect of

 

 

reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the
date hereof. The rights of Indemnitee provided in this Section 3 shall include, without limitation,
the rights set forth in the other sections of this Agreement, including any additional
indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law (“MGCL”).

Section 4. Proceedings Other Than Proceedings by or in the Right of the Company.

	(a)	 	Indemnitee shall be entitled to the rights of indemnification provided in this Section 4 if,
by reason of Indemnitee’s Corporate Status, he or she was or is, or is threatened to be, made
a party to or a witness in any threatened, pending, or completed Proceeding, other than a
Proceeding by or in the right of the Company. Pursuant to this Section 4, Indemnitee shall be
indemnified against all judgments, penalties, fines and amounts paid in settlement and all
Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in connection
with a Proceeding by reason of Indemnitee’s Corporate Status unless it is established that (i)
the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and
(a) was committed in bad faith or (b) was the result of active and deliberate dishonesty, (ii)
Indemnitee actually received an improper personal benefit in money, property or services, or
(iii) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that
his conduct was unlawful.
	 
	(b)	 	Indemnitee shall be deemed to have acted in good faith if, in performing his or her duties,
Indemnitee relied on any information, opinion, report or statement, including any financial
statement or other financial data prepared or presented by:

	 	(i)	 	an officer or employee of the Company whom Indemnitee reasonably believes to be
reliable and competent in the matters presented;
	 
	 	(ii)	 	a lawyer, certified public accountant, investment banker, engineer, consultant,
investment or financial advisor or other person, as to a matter which Indemnitee
reasonably believes to be within the person’s professional or expert competence; or
	 
	 	(iii)	 	a committee of the Board on which Indemnitee does not serve, as to a matter
within its designated authority, if Indemnitee reasonably believes the committee to
merit confidence.

	(c)	 	Indemnitee has not acted in good faith if he or she had any knowledge concerning the matter
in question which would cause the reliance set forth in paragraph (b) above to be unwarranted.

Section 5. Proceedings by or in the Right of the Company.

	(a)	 	Indemnitee shall be entitled to the rights of indemnification provided in this Section 5 if,
by reason of Indemnitee’s Corporate Status, he or she is, or is threatened to be, made a party
to or a witness in any threatened, pending or completed Proceeding brought by or in the right
of the Company to procure a judgment in its favor. Pursuant to this Section 5, Indemnitee
shall be indemnified against all amounts paid in settlement and all Expenses actually and
reasonably incurred by Indemnitee or on his or her behalf in connection with such Proceeding
unless it is established that (i) the act or omission of Indemnitee was material to the matter
giving rise to such a Proceeding and (a) was committed in bad faith or (b) was the result of
active and deliberate dishonesty or (ii) Indemnitee actually received an improper personal
benefit in money, property or services.

 

 

	(b)	 	Indemnitee shall be deemed to have acted in good faith if, in performing his or her duties,
Indemnitee relied on any information, opinion, report or statement, including any financial
statement or other financial data prepared or presented by:

	 	(i)	 	an officer or employee of the Company whom Indemnitee reasonably believes to be
reliable and competent in the matters presented;
	 
	 	(ii)	 	a lawyer, certified public accountant, investment banker, engineer, consultant,
investment or financial advisor or other person, as to a matter which Indemnitee
reasonably believes to be within the person’s professional or expert competence; or
	 
	 	(iii)	 	committee of the Board on which Indemnitee does not serve, as to a matter
within its designated authority, if Indemnitee reasonably believes the committee to
merit confidence.

	(c)	 	Indemnitee has not acted in good faith if he or she had any knowledge concerning the matter
in question which would cause the reliance set forth in paragraph (b) above to be unwarranted.

Section 6. Court-Ordered Indemnification. Notwithstanding any other provision of this
Agreement, a court of appropriate jurisdiction, upon application of a director or officer
(including the Indemnitee) and such notice as the court shall require, may order indemnification in
the following circumstances:

	(a)	 	if it determines a director or officer is entitled to reimbursement under Section 2-418(d)(1)
of the MGCL, the court shall order indemnification, in which case the director or officer
shall be entitled to recover the expenses of securing such reimbursement; or
	 
	(b)	 	if it determines that the director or officer is fairly and reasonably entitled to
indemnification in view of all the relevant circumstances, whether or not the director or
officer (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii)
has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of
the MGCL, the court may order such indemnification as the court shall deem proper. However,
indemnification with respect to any Proceeding by or in the right of the Company or in which
liability shall have been adjudged in the circumstances described in Section 2-418(c) of the
MGCL shall be limited to Expenses.

Section 7. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, and without limiting any such provision, to
the extent that Indemnitee is, by reason of his Corporate Status, made a party to and is successful
in accordance with the standards in Section 4 or Section 5, as applicable, on the merits or
otherwise, in the defense of any Proceeding, he shall be indemnified for all Expenses actually and
reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly
successful in accordance with the standards in Section 4 or Section 5, as applicable, in such
Proceeding such that he would not be entitled to indemnification as to some or all matters under
Section 4 or Section 5, as applicable, but is successful in accordance with the standards in
Section 4 or Section 5, as applicable, on the merits or otherwise, as to one or more but less than
all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this
Section 7 for all Expenses actually and reasonably incurred by him or on his behalf in connection
with each successfully resolved claim, issue or matter. For purposes of this Section and without
limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with
or without prejudice, shall be deemed to be a successful

 

 

result as to such claim, issue or matter. Notwithstanding anything to the contrary contained
herein, regardless of the outcome of any Proceeding, Indemnitee’s defense in any such Proceeding
shall be deemed successful for purposes of this Section 7 so long as none of the matters set forth
in the last sentence of Section 4(a) or Section 5(a) above, as applicable, shall have been
conclusively established.

Section 8. Advance of Expenses. The Company shall advance all reasonable Expenses incurred
by or on behalf of Indemnitee in connection with any Proceeding to which Indemnitee is, or is
threatened to be, made a party or a witness, within ten days after the receipt by the Company of a
statement or statements from Indemnitee requesting such advance or advances from time to time,
whether prior to or after final disposition of such Proceeding. Such statement or statements shall
reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or
accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the
standard of conduct necessary for indemnification by the Company as authorized by law and by this
Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially
the form attached hereto as Exhibit A or in such form as may be required under applicable
law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses
advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it shall
ultimately be established that the standard of conduct has not been met and which has not been
successfully resolved as described in Section 7. To the extent that Expenses advanced to Indemnitee
do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be
allocated on a reasonable and proportionate basis. The undertaking required by this Section 8 shall
be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without
reference to Indemnitee’s financial ability to repay such advanced Expenses and without any
requirement to post security therefor and without any requirement to post security therefor.
Advances shall be unsecured and interest free. Such advances are deemed to be an obligation of the
Company to Indemnitee hereunder, and shall in no event be deemed a personal loan.

Section 9. Procedure for Determination of Entitlement to Indemnification.

	(a)	 	To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a
written request, including therein or therewith such documentation and information as is
reasonably available to Indemnitee and is reasonably necessary to determine whether and to
what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall,
promptly upon receipt of such a request for indemnification, advise the Board of Directors in
writing that Indemnitee has requested indemnification.
	 
	(b)	 	Upon written request by Indemnitee for indemnification pursuant to the first sentence of
Section 9(a) hereof, a determination, if required by applicable law, with respect to
Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) if a Change
in Control shall have occurred, by Independent Counsel in a written opinion to the Board, a
copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control shall not have
occurred, (A) by the Board (or a duly authorized committee thereof) by a majority vote of a
quorum consisting of Disinterested Directors (as herein defined), or (B) if a quorum of the
Board consisting of Disinterested Directors is not obtainable or, even if obtainable, such
quorum of Disinterested Directors so directs, by Independent Counsel in a written opinion to
the Board, a copy of which shall be delivered to Indemnitee, or (C) if so directed by a
majority of the members of the Board, by the stockholders of the Company; and, if it is so
determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made
within ten days after such determination. Indemnitee shall cooperate with the person, persons
or entity making such determination with respect to Indemnitee’s entitlement to

 

 

	 	 	indemnification, including providing to such person, persons or entity upon reasonable advance
request any documentation or information which is not privileged or otherwise protected from
disclosure and which is reasonably available to Indemnitee and reasonably necessary to such
determination. Any costs or Expenses (including reasonable attorneys’ fees and disbursements)
incurred by Indemnitee in so cooperating with the person, persons or entity making such
determination shall be borne by the Company (irrespective of the determination as to
Indemnitee’s entitlement to indemnification) and the Company hereby agrees to indemnify and hold
Indemnitee harmless therefrom.

Section 10. Presumptions and Effect of Certain Proceedings.

	(a)	 	In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume that Indemnitee is
entitled to indemnification under this Agreement if Indemnitee has submitted a request for
indemnification in accordance with Section 9(a) of this Agreement, and the Company shall have
the burden of proof to overcome that presumption in connection with the making of any
determination contrary to that presumption.
	 
	(b)	 	The termination of any Proceeding by judgment, order, settlement, conviction, a plea of
nolo contendere or its equivalent, or an entry of an order of probation prior
to judgment, does not create a presumption that Indemnitee did not meet the requisite standard
of conduct described herein for indemnification.

Section 11. Remedies of Indemnitee.

	(a)	 	If (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not
entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made
pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to
indemnification shall have been made pursuant to Section 9(b) of this Agreement within 90 days
after receipt by the Company of the request for indemnification, (iv) payment of
indemnification is not made pursuant to Section 7 of this Agreement within ten days after
receipt by the Company of a written request therefor, or (v) payment of indemnification is not
made within ten days after a determination has been made that Indemnitee is entitled to
indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court of
the State of Maryland, or in any other court of competent jurisdiction, of his entitlement to
such indemnification or advance of Expenses. Alternatively, Indemnitee, at his option, may
seek an award in arbitration to be conducted by a single arbitrator pursuant to the commercial
Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such
proceeding seeking an adjudication or an award in arbitration within 180 days following the
date on which Indemnitee first has the right to commence such proceeding pursuant to this
Section 11(a); provided, however, that the foregoing clause shall not apply in respect of a
proceeding brought by Indemnitee to enforce his rights under Section 7 of this Agreement.
	 
	(b)	 	In any judicial proceeding or arbitration commenced pursuant to this Section 11 the Company
shall have the burden of proving that Indemnitee is not entitled to indemnification or advance
of Expenses, as the case may be.
	 
	(c)	 	If a determination shall have been made pursuant to Section 9(b) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in
any judicial proceeding or arbitration commenced pursuant to this Section 11, absent a
misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to
make Indemnitee’s statement not materially misleading, in connection with the request for

 

 

	 	 	indemnification.
	 
	(d)	 	In the event that Indemnitee, pursuant to this Section 11, seeks a judicial adjudication of
or an award in arbitration to enforce his rights under, or to recover damages for breach of,
this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be
indemnified by the Company for, any and all Expenses actually and reasonably incurred by him
in such judicial adjudication or arbitration. If it shall be determined in such judicial
adjudication or arbitration that Indemnitee is entitled to receive part but not all of the
indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in
connection with such judicial adjudication or arbitration shall be appropriately prorated.

Section 12. Defense of the Underlying Proceeding.

	(a)	 	Indemnitee shall notify the Company promptly upon being served with or receiving any summons,
citation, subpoena, complaint, indictment, information, notice, request or other document
relating to any Proceeding which may result in the right to indemnification or the advance of
Expenses hereunder; provided, however, that the failure to give any such notice, or the
lateness of inaccuracy of such notice, shall not disqualify Indemnitee from the right, or
otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of
Expenses under this Agreement unless the Company’s ability to defend in such Proceeding or to
obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and
then only to the extent the Company is thereby actually so prejudiced.
	 
	(b)	 	Subject to the provisions of the last sentence of this Section 12(b) and of Section 12(c)
below, the Company shall have the right to defend Indemnitee in any Proceeding which may give
rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee
of any such decision to defend within 15 calendar days following receipt of notice of any such
Proceeding under Section 12(a) above. The Company shall not, without the prior written consent
of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of
any judgment against Indemnitee or enter into any settlement or compromise which (i) includes
an admission of fault of Indemnitee or (ii) does not include, as an unconditional term
thereof, the full release of Indemnitee from all liability in respect of such Proceeding,
which release shall be in form and substance reasonably satisfactory to Indemnitee. This
Section 12(b) shall not apply to a Proceeding brought by Indemnitee under Section 11 above or
Section 18 below.
	 
	(c)	 	Notwithstanding the provisions of Section 12(b) above, if in a Proceeding to which Indemnitee
is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes,
based upon an opinion of Independent Counsel, that he or she may have separate defenses or
counterclaims to assert with respect to any issue which may not be consistent with other
defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of
Independent Counsel, that an actual or apparent conflict of interest or potential conflict of
interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume
the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be
represented by separate legal counsel of Indemnitee’s choice, subject to the prior approval of
the Company, which shall not be unreasonably withheld, at the expense of the Company. In
addition, if the Company fails to comply with any of its obligations under this Agreement or
in the event that the Company or any other person takes any action to declare this Agreement
void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the
benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to
retain counsel of Indemnitee’s choice, subject to the prior approval of the Company, which
shall not be unreasonably

 

 

	 	 	withheld, at the expense of the Company (subject to Section 11(d)), to represent Indemnitee in
connection with any such matter.

Section 13. Non-Exclusivity; Survival of Rights; Insurance; Subrogation.

	(a)	 	The rights of indemnification and advance of Expenses as provided by this Agreement shall not
be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under
applicable law, the Charter or Bylaws of the Company or any subsidiary or Portfolio Company,
as applicable, any agreement or a resolution of the stockholders entitled to vote generally in
the election of directors or of the Board, or otherwise. No amendment, alteration or repeal of
this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee
under this Agreement in respect of any action taken or omitted by such Indemnitee in his
Corporate Status prior to such amendment, alteration or repeal.
	 
	(b)	 	In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all
papers required and take all action necessary to secure such rights, including execution of
such documents as are necessary to enable the Company to bring suit to enforce such rights.
	 
	(c)	 	The Company shall not be liable under this Agreement to make any payment of amounts otherwise
indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received
such payment under any insurance policy, contract, agreement or otherwise.

Section 14. Insurance. The Company will use its reasonable best efforts to acquire
directors and officers liability insurance, on terms and conditions deemed appropriate by the
Board, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee for
service as a director or officer of the Company or any of its subsidiaries and covering the Company
for any indemnification or advance of expenses made by the Company to Indemnitee for any claims
made against Indemnitee for service as a director or officer of the Company or any of its
subsidiaries. Without in any way limiting any other obligation under this Agreement, the Company
shall indemnify Indemnitee for any payment by Indemnitee arising out of the amount of any
deductible or retention and the amount of any excess of the aggregate of all judgments, penalties,
fines, settlements and reasonable expenses incurred by Indemnitee in connection with a Proceeding
over the coverage of any insurance referred to in the first sentence of this Section 14.

Section 15. Indemnification for Expenses of a Witness. Notwithstanding any other provision
of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness
in any Proceeding, whether instituted by the Company or any other party, and to which Indemnitee is
not a party, he shall be advanced all reasonable Expenses and indemnified against all Expenses
actually and reasonably incurred by him or on his behalf in connection therewith.

Section 16. Duration of Agreement; Binding Effect.

	(a)	 	This Agreement shall continue until and terminate ten years after the date that Indemnitee
shall have ceased to serve as a director, trustee, officer, employee, or agent of the Company
or of any other corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise which Indemnitee served at the request of the Company; provided, that the rights of
Indemnitee hereunder shall continue until the later of final termination (i) of any Proceeding
then pending in respect of which Indemnitee is granted rights of indemnification

 

 

	 	 	or advance of Expenses hereunder and (ii) of any proceeding commenced by Indemnitee pursuant to
Section 11 of this Agreement relating thereto.
	 
	(b)	 	The indemnification and advance of Expenses provided by, or granted pursuant to, this
Agreement shall be binding upon and be enforceable by the parties hereto and their respective
successors and assigns (including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business or assets of the
Company), shall continue as to an Indemnitee who has ceased to be a director, officer,
employee or agent of the Company or of any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise which such person is or was serving at the
request of the Company, and shall inure to the benefit of Indemnitee and his or her spouse,
assigns, heirs, devisees, executors and administrators and other legal representatives.
	 
	(c)	 	The Company shall require and cause any successor (whether direct or indirect by purchase,
merger, consolidation or otherwise) to all, substantially all or a substantial part, of the
business and/or assets of the Company, by written agreement in form and substance satisfactory
to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform if no such succession had
taken place.

Section 17. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any section of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that is not itself invalid,
illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 18. Exception to Right of Indemnification or Advance of Expenses. Notwithstanding
any other provision of this Agreement, Indemnitee shall not be entitled to indemnification or
advance of Expenses under this Agreement with respect to any Proceeding brought by Indemnitee,
unless (a) the Proceeding is brought to enforce indemnification under this Agreement or otherwise
or (b) the Company’s Bylaws, Charter, a resolution of the stockholders entitled to vote generally
in the election of directors or of the Board or an agreement approved by the Board to which the
Company is a party expressly provide otherwise.

Section 19. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. One such counterpart signed by the party
against whom enforceability is sought shall be sufficient to evidence the existence of this
Agreement.

Section 20. Headings. The headings of the paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

Section 21. Modification and Waiver; Entire Agreement. No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by both of the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute

 

 

a continuing waiver. This Agreement constitutes the full and entire understanding and agreement
among the parties with regard to the subject matter hereof, and supersedes all prior agreements.

Section 22. Notice by Indemnitee. Indemnitee shall promptly notify the Company in writing
upon being served with any summons, citation, subpoena, complaint, indictment, information or other
document relating to any Proceeding or matter which may be subject to indemnification or advance of
Expenses covered hereunder.

Section 23. Notices. All notices and other communications under this Agreement shall be in
writing and shall be deemed given (i) when delivered personally by hand (with written confirmation
of receipt), (ii) when sent by facsimile (with written confirmation of transmission) or (iii) three
business days following the day sent by overnight courier (with written confirmation of receipt),
in each case at the following addresses and facsimile numbers (or to such other address or
facsimile number as a party may have specified by notice given to the other party pursuant to this
provision):

(a) If to Indemnitee, to: The address set forth on the signature page hereto.

(b) If to the Company to:

PHH Corporation

3000 Leadenhall Road

Mt. Laurel, New Jersey 08054

Attn:

William F. Brown

Senior Vice President, General Counsel and Secretary

or to such other address as may have been furnished to Indemnitee by the Company or to the Company
by Indemnitee, as the case may be.

Section 24. Notice to the Company’s Stockholders. Any indemnification of, or advancement of
Expenses, to Indemnitee arising out of a Proceeding by or in the right of the Company, shall be
reported in writing to the stockholders of the Company with the notice of the next stockholders’
meeting or prior to the meeting.

Section 25. Governing Law. The parties agree that this Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Maryland, without regard to its
conflicts of laws rules.

Section 26. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of
the feminine pronoun where appropriate.

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above
written.

	 	 	 	 	 	 	 

	ATTEST:	 	PHH CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	(SEAL)
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	WITNESS:	 	INDEMNITEE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 

 

 

EXHIBIT A

FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED

The Board of Directors of PHH Corporation

Re: Undertaking to Repay Expenses Advanced

Ladies and Gentlemen:

This undertaking is being provided pursuant to that certain Indemnification Agreement dated the
 day of         , 201_, by and between PHH Corporation, a Maryland corporation,
(the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to
which I am entitled to advance of expenses in connection with [Description of Proceeding] (the
“Proceeding”).

Terms used herein and not otherwise defined shall have the meanings specified in the
Indemnification Agreement.

I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or
omissions by me in such capacity. I hereby affirm that at all times, insofar as I was involved as
[a director] [an officer] of the Company or one of its subsidiaries, in any of the facts or events
giving rise to the Proceeding, I (1) acted in good faith and honestly, (2) did not receive any
improper personal benefit in money, property or services and (3) in the case of any criminal
proceeding, had no reasonable cause to believe that any act or omission by me was unlawful.

In consideration of the advance of expenses by the Company for reasonable attorney’s fees and
related expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I
hereby agree that if, in connection with the Proceeding, it is established that (1) an act or
omission by me was material to the matter giving rise to the Proceeding and (a) was committed in
bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an
improper personal benefit in money, property or services or (3) in the case of any criminal
proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall
promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters
in the Proceeding as to which the foregoing findings have been established and which have not been
successfully resolved as described in Section 7 of the Indemnification Agreement. To the extent
that Advanced Expenses do not relate to a specific claim, issue or matter in the Proceeding, I
agree that such Expenses shall be allocated on a reasonable and proportionate basis.

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this         day of
       , 201       .exv10w2

Exhibit 10.2

PHH CORPORATION

UNANIMOUS WRITTEN CONSENT OF THE BOARD OF DIRECTORS

     THE UNDERSIGNED, being all of the members of the Board of Directors (the “Board”) of
PHH Corporation, a Maryland Corporation (the “Company”), acting in lieu of a meeting of the
Board and pursuant to Section 2-408 of the Maryland General Corporation Law, hereby waive the
calling or holding of a meeting of the Board, and waive any rights to dissent in such matters,
consent in writing, as of the latest day and year set forth below on the signature page, to the
following, and direct that this Unanimous Written Consent of the Board (this “Consent”) be
filed with the minutes of the proceedings of the Company.

Adoption of Amendment to Equity and Incentive Plan

     WHEREAS, the Company maintains the PHH Corporation Amended and Restated 2005 Equity and
Incentive Plan (the “2005 EIP”), which was last amended and restated June 17, 2009;

     WHEREAS, Section 6(b)(iv)(D) of the 2005 EIP provides for the grants of restricted stock units
to non-employee directors of the Company in lieu of cash payment of non-employee director fees and
stipends;

     WHEREAS, the Human Capital and Compensation Committee (the “Committee”) has
recommended to the Board that it approve an amendment to the 2005 EIP to provide flexibility to the
Board in determining the portion of non-employee director fees and stipends that will be paid in
the form of restricted stock units under the 2005 EIP;

     WHEREAS, Section 8(d)(ii) of the 2005 EIP gives the Board the ability to amend the 2005 EIP;
and

     WHEREAS, the Board has determined that it is in the best interests of the Company to adopt
such an amendment to the 2005 EIP.

     NOW, THEREFORE, BE IT RESOLVED, that the Board hereby approves and adopts the First Amendment
to the 2005 EIP in substantially the form attached hereto as Exhibit A (the “First
Amendment”); and

Changes in Form and Amount of Non-Employee Director Compensation

     WHEREAS, the Committee has recommended to the Board that the Board take action to increase the
compensation payable to the Company’s non-employee directors;

     WHEREAS, consistent with the changes to be made to the 2005 EIP by the First Amendment, the
Committee has recommended that the Board specify the portion of the non-employee director fees and
stipends that will be payable in cash and the portion of the non-employee director fees and
stipends that will be payable in restricted stock units under the 2005 EIP from and after the
Effective Date (defined below) and until the Board shall take action to modify such portions; and

 

 

     WHEREAS, the Board has determined that it is in the best interests of the Company to adopt the
changes in non-employee director compensation recommended by the Committee.

     NOW, THEREFORE, BE IT RESOLVED, that the Board hereby approves and adopts an increase in the
annual retainer fee for each non-employee director to an annualized rate of $220,000, payable in
four equal quarterly installments, with an annualized amount of $85,000 payable in cash and an
annualized amount of $135,000 payable in restricted stock units, in the manner described in these
resolutions and in Section 6(b)(iv)(D) of the 2005 EIP as amended by the First Amendment, effective
on and after the effective date of the Board’s approval of the First Amendment (the “Effective
Date”) and until the Board shall take action to modify such amounts, which amounts shall be
prorated for the period from the Effective Date through December 31, 2010, and shall also be
prorated for the portion of any calendar quarter in which a non-employee director first commences
or ceases service as a director of the Company;

     FURTHER RESOLVED, that, notwithstanding the foregoing determination of the amount of the
annual retainer fees paid in restricted stock units described above, for annual retainer fees
payable for each calendar quarter (or portion thereof) in 2010 on or after the Effective Date, the
former percentage of annual retainer fees payable in restricted stock units shall continue to apply
to the amount of annual retainer fees which would have been payable prior to these resolutions and
the increase in annual retainer fees shall be paid in cash or restricted stock units, as
applicable, so that the total amount payable in restricted stock units with respect to annual
retainer fees for each such calendar quarter (or portion thereof) shall be equal to the prorata
amount determined in the immediately preceding resolution;

     FURTHER RESOLVED, that the Board hereby approves and adopts an increase in the supplemental
annual retainer fee of the Non-Executive Chairman of the Board to an annualized amount of $75,000
(the “Non-Executive Chairman Annual Supplemental Retainer Fee”), payable in four equal
quarterly installments, with 50% of such Non-Executive Chairman Annual Supplemental Retainer Fee
payable in cash and the other 50% payable in restricted stock units, in the manner described in
these resolutions and in Section 6(b)(iv)(D) of the 2005 EIP as amended by the First Amendment,
effective on and after the Effective Date and until the Board shall take action to modify such
amount or percentages, which amount shall be prorated for the period from the Effective Date
through December 31, 2010, and shall also be prorated for the portion of any calendar quarter in
which the Non-Executive Chairman of the Board first commences or ceases service as the
Non-Executive Chairman of the Board;

     FURTHER RESOLVED, that the Board hereby approves and adopts increases in the Board committee
stipends for non-employee directors to the following annualized amounts, payable in four equal
quarterly installments, with 50% of each amount payable in cash and the other 50% payable in
restricted stock units, in the manner described in these resolutions and in Section 6(b)(iv)(D) of
the 2005 EIP as amended by the First Amendment, effective on and after the Effective Date and until
the Board shall take action to modify such amounts or percentages, which amounts shall be prorated
for the period from the Effective Date through December 31, 2010, and shall also be prorated for
the portion of any calendar quarter in which a non-employee director first commences or ceases
service as a member or Chair of any of the following committees of the Board:

2

 

	 	 	 	 	 
	Committee	 	Stipend
	Audit Committee, Chair
	 	$	25,000	 
	Audit Committee, Member
	 	$	15,000	 
	Human Capital and Compensation Committee, Chair
	 	$	25,000	 
	Human Capital and Compensation Committee, Member
	 	$	15,000	 
	Corporate Governance Committee, Chair
	 	$	10,000	 
	Corporate Governance Committee, Member
	 	$	8,000	 
	Finance and Risk Management Committee, Chair
	 	$	25,000	 
	Finance and Risk Management Committee, Member
	 	$	15,000;	 

     FURTHER RESOLVED, that, consistent with the historical practice of the Company, the annual
retainer fees and annual committee stipends shall be paid in quarterly installments in arrears on
the last day of each calendar quarter (the “Fee Payment Date”);

     FURTHER RESOLVED, that the number of restricted stock units granted as of each Fee Payment
Date shall be determined pursuant to the 2005 EIP as amended by the First Amendment, including the
definition of “Fair Market Value” provided therein; and

Elimination of Initial Equity Grant to Non-Employee Directors

     WHEREAS, the Committee has recommended that the Board take action to eliminate the $60,000
one-time initial grant of restricted stock units under the 2005 EIP payable to new non-employee
directors on the first Fee Payment Date following the date on which a non-employee director is duly
qualified and first commences service on the Board, as described in the March 31, 2005, unanimous
written consent of the Board (the “Initial Equity Grant”); and

     WHEREAS, the Board has determined that it is in the best interests of the Company to eliminate
the Initial Equity Grant.

     NOW, THEREFORE, BE IT RESOLVED, that, effective upon the Effective Date, the Initial Equity
Grant to new non-employee directors that first commence service on the Board on or after the
Effective Date be, and hereby is, eliminated; and

Superseding Prior Resolutions

     FURTHER RESOLVED, that the foregoing resolutions supersede any and all prior resolutions of
the Board governing the compensation of non-employee directors to the extent such resolutions are
inconsistent with the foregoing resolutions; and

General Authority

     FURTHER RESOLVED, that any action taken in furtherance of the foregoing resolutions by an
officer of the Company or any designee of an officer of the Company is hereby ratified, affirmed
and approved in all respects; and

3

 

     FURTHER RESOLVED, that any officer of the Company and any designee of any officer of the
Company, is hereby authorized and directed to take all actions and to finalize, execute and deliver
all agreements, instruments, and other documents as he or she shall deem necessary, desirable or
appropriate to carry out the intent of the foregoing resolutions and the signature of any officer
of the Company or his or her designee on any document executed in furtherance of the foregoing
resolutions shall be conclusive evidence of such determination.

[Signature Page Follows]

4

 

     IN WITNESS WHEREOF, the undersigned members of the Board have executed this Consent, which
shall be effective as of the latest date set forth below on this signature page.

	 	 	 	 	 

	Date: August 13, 2010

	 	/s/ James W. Brinkley
 

James W. Brinkley
	 	 
	 
	 	 	 	 
	Date: August 13, 2010

	 	/s/ James O. Egan	 	 
	 

	 	 	 	 
	 

	 	James O. Egan, Chairman	 	 
	 
	 	 	 	 
	Date: August 13, 2010

	 	/s/ Allan Z. Loren	 	 
	 

	 	 	 	 
	 

	 	Allan Z. Loren	 	 
	 
	 	 	 	 
	Date: August 16, 2010

	 	/s/ Gregory J. Parseghian	 	 
	 

	 	 	 	 
	 

	 	Gregory J. Parseghian	 	 
	 
	 	 	 	 
	Date: August 16, 2010

	 	/s/ Deborah M. Reif	 	 
	 

	 	 	 	 
	 

	 	Deborah M. Reif	 	 
	 
	 	 	 	 
	Date: August 17, 2010

	 	/s/ Jerome J. Selitto	 	 
	 

	 	 	 	 
	 

	 	Jerome J. Selitto	 	 
	 
	 	 	 	 
	Date: August 18, 2010

	 	/s/ Carroll R. Wetzel, Jr.	 	 
	 

	 	 	 	 
	 

	 	Carroll R. Wetzel, Jr.	 	 

 

 

EXHIBIT A

FIRST AMENDMENT TO THE

PHH CORPORATION

AMENDED AND RESTATED

2005 EQUITY AND INCENTIVE PLAN

     WHEREAS, PHH Corporation, a corporation duly organized and existing under the laws of the
State of Maryland (the “Company”), maintains the PHH Corporation Amended and Restated 2005 Equity
and Incentive Plan (as amended through June 17, 2009) (the “2005 EIP”); and

     WHEREAS, Section 8(d)(ii) of the 2005 EIP gives the Board of Directors of the Company (the
“Board”) the power to amend the 2005 EIP; and

     WHEREAS, the Board has approved the following amendment to the 2005 EIP effective as of August
18, 2010, to provide flexibility to the Board in determining the portion of non-employee director
fees and stipends that will be paid in the form of restricted stock units under the 2005 EIP.

     NOW, THEREFORE, the 2005 EIP is amended effective as of August 18, 2010, by deleting the sixth
sentence of the existing Section 6(b)(iv)(D) and substituting therefor the following:

“The number of RSUs to be credited to each Non-Employee Director’s account as of each Fee
Payment Date shall be calculated by dividing (1) the amount of annual retainer fee and
committee stipends payable to such Non-Employee Director on such Fee Payment Date in the
form of RSUs, as determined by the Committee or the Board from time to time, by (2) the Fair
Market Value of a share of Stock on such date. Any change during a calendar year in the
percentage or dollar amount of annual retainer fee or committee stipends payable in the form
of RSUs shall only be applied to compensation for services performed in the calendar years
following the date of such change; provided, however, that, notwithstanding the foregoing,
such change may, in the event of any increase in such fees or stipends, be applied
prospectively to any such increase payable during the remainder of the calendar year of such
change (with the old percentage or dollar amount, as applicable, applying to the fees and
stipends that otherwise would have been paid absent such increase) in order to comply with
Section 409A of the Code and the regulations promulgated pursuant thereto.”

     Except as set forth herein, the 2005 EIP shall remain in full force and effect as prior to
this First Amendment.

6

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