Document:

ex10-1.htm

    
      Exhibit
10.1

       

      
      

    

    
      

    

    

     

    Between:

     

     

    CIGNA Corporation, as
Issuer

     

     

    and

     

     

    Goldman, Sachs & Co., as
Dealer

     

     

    Concerning
Notes to be issued pursuant to an

     

     

    Issuing
and Paying Agency Agreement dated as of March 14, 2008

     

     

    between
the Issuer and

     

     

    JPMorgan
Chase Bank, N.A. as Issuing

     

     

    and
Paying Agent

     

     

    Dated as
of

     

     

    March 14,
2008

     

     

    
       

       

    

    
      
        
        

      

      
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    This
agreement (the “Agreement”) sets forth the understandings between the Issuer and
the Dealer, each named on the cover page hereof, in connection with the issuance
and sale by the Issuer of its short-term promissory notes (the “Notes”) through
the Dealer.

     

    Certain
terms used in this Agreement are defined in Section 6 hereof.

     

    The
Addendum to this Agreement, and any Annexes or Exhibits described in this
Agreement or such Addendum, are hereby incorporated into this Agreement and made
fully a part hereof.

     

    
      	
              1.  

            	
              Offers,
      Sales and Resales of Notes.

            

    

     

    
      	
               
      

            	
              1.1

            	
              While
      (i) the Issuer has and shall have no obligation to sell the Notes to the
      Dealer or to permit the Dealer to arrange any sale of the Notes for the
      account of the Issuer, and (ii) the Dealer has and shall have no
      obligation to purchase the Notes from the Issuer or to arrange any sale of
      the Notes for the account of the Issuer, the parties hereto agree that in
      any case where the Dealer purchases Notes from the Issuer, or arranges for
      the sale of Notes by the Issuer, such Notes will be purchased or sold by
      the Dealer in reliance on the representations, warranties, covenants and
      agreements of the Issuer contained herein or made pursuant hereto and on
      the terms and conditions and in the manner provided
  herein.

            

    

     

    
      	
               
      

            	
              1.2

            	
              So
      long as this Agreement shall remain in effect, and in addition to the
      limitations contained in Section 1.7 hereof, the Issuer shall not, without
      the consent of the Dealer, offer, solicit or accept offers to purchase, or
      sell, any Notes except (a) in transactions with one or more dealers which
      may from time to time after the date hereof become dealers with respect to
      the Notes by executing with the Issuer one or more agreements which
      contain provisions substantially identical to those contained in Section 1
      of this Agreement, of which the Issuer hereby undertakes to provide the
      Dealer prompt notice or (b) in transactions with the other dealers listed
      on the Addendum hereto, which are executing agreements with the Issuer
      which contain provisions substantially identical to Section 1 of this
      Agreement contemporaneously herewith.  So long as this Agreement
      is in effect, in no event shall the Issuer offer, solicit or accept offers
      to purchase, or sell, any Notes directly on its own behalf in transactions
      with persons other than broker-dealers as specifically permitted in this
      Section 1.2.

            

    

     

    
      	
               
      

            	
              1.3

            	
              The
      Notes shall be in a minimum denomination of $250,000 or integral multiples
      of $1,000 in excess thereof, will bear such interest rates, if interest
      bearing, or will be sold at such discount from their face amounts, as
      shall be agreed upon by the Dealer and the Issuer, shall have a maturity
      not exceeding 397 days from the date of issuance and may have such terms
      as are specified in Exhibit C hereto or the Private Placement
      Memorandum.  The Notes shall not contain any provision for
      extension, renewal or automatic
“rollover.”

            

    

     

     

    
      
        
        

      

      
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              1.4

            	
              The
      authentication and issuance of, and payment for, the Notes shall be
      effected in accordance with the Issuing and Paying Agency Agreement, and
      the Notes shall be either individual physical certificates or book-entry
      notes evidenced by one or more master notes (each, a “Master Note”)
      registered in the name of The Depository Trust Company (“DTC”) or its
      nominee, in the form or forms annexed to the Issuing and Paying Agency
      Agreement.

            

    

     

    
      	
               
      

            	
              1.5

            	
              If
      the Issuer and the Dealer shall agree on the terms of the purchase of any
      Note by the Dealer or the sale of any Note arranged by the Dealer
      (including, but not limited to, agreement with respect to the date of
      issue, purchase price, principal amount, maturity and interest rate or
      interest rate index and margin (in the case of interest-bearing Notes) or
      discount thereof (in the case of Notes issued on a discount basis), and
      appropriate compensation for the Dealer’s services hereunder) pursuant to
      this Agreement, the Issuer shall cause such Note to be issued and
      delivered in accordance with the terms of the Issuing and Paying Agency
      Agreement and payment for such Note shall be made by the purchaser
      thereof, either directly or through the Dealer, to the Issuing and Paying
      Agent, for the account of the Issuer.  Except as otherwise
      agreed, in the event that the Dealer is acting as an agent and a purchaser
      shall either fail to accept delivery of or make payment for a Note on the
      date fixed for settlement, the Dealer shall promptly notify the Issuer,
      and if the Dealer has theretofore paid the Issuer for the Note, the Issuer
      will promptly return such funds to the Dealer against its return of the
      Note to the Issuer, in the case of a certificated Note, and upon notice of
      such failure in the case of a book-entry Note.  If such failure
      occurred for any reason other than default by the Dealer, the Issuer shall
      reimburse the Dealer on an equitable basis for the Dealer’s loss of the
      use of such funds for the period such funds were credited to the Issuer’s
      account.

            

    

     

    
      	
               
      

            	
              1.6

            	
              The
      Dealer and the Issuer hereby establish and agree to observe the following
      procedures in connection with offers, sales and subsequent resales or
      other transfers of the Notes:

            

    

     

    
      	
            	
              (a)  

            	
              Offers
      and sales of the Notes by or through the Dealer shall be made only to: (i)
      investors reasonably believed by the Dealer to be Qualified Institutional
      Buyers, Institutional Accredited Investors or Sophisticated Individual
      Accredited Investors and (ii) non-bank fiduciaries or agents that will be
      purchasing Notes for one or more accounts, each of which is reasonably
      believed by the Dealer to be an Institutional Accredited Investor or
      Sophisticated Individual Accredited
Investor.

            

    

     

    
      	
            	
              (b)  

            	
              Resales
      and other transfers of the Notes by the holders thereof shall be made only
      in accordance with the restrictions in the legend described in clause (e)
      below.

            

    

     

    
      	
            	
              (c)  

            	
              No
      general solicitation or general advertising shall be used in connection
      with the offering of the Notes.  Without limiting the generality
      of the foregoing, without the prior written approval of the Dealer, the
      Issuer shall 

            

    

    
       

       

    

    
      
        
        

      

      
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      	 	not
      issue any press release or place or publish any “tombstone” or other
      advertisement relating to the Notes.

    

     

    
      	
            	
              (d)  

            	
              No
      sale of Notes to any one purchaser shall be for less than $250,000
      principal or face amount, and no Note shall be issued in a smaller
      principal or face amount.  If the purchaser is a non-bank
      fiduciary acting on behalf of others, each person for whom such purchaser
      is acting must purchase at least $250,000 principal or face amount of
      Notes.

            

    

     

    
      	
            	
              (e)  

            	
              Offers
      and sales of the Notes by the Issuer through the Dealer acting as agent
      for the Issuer shall be made in accordance with Rule 506 under the
      Securities Act, and shall be subject to the restrictions described in the
      legend appearing on Exhibit A hereto.  A legend substantially to
      the effect of such Exhibit A shall appear as part of the Private Placement
      Memorandum used in connection with offers and sales of Notes hereunder, as
      well as on each individual certificate representing a Note and each Master
      Note representing book-entry Notes offered and sold pursuant to this
      Agreement.

            

    

     

    
      	
            	
              (f)  

            	
              The
      Dealer shall furnish or shall have furnished to each purchaser of Notes
      for which it has acted as the Dealer a copy of the then-current Private
      Placement Memorandum unless such purchaser has previously received a copy
      of the Private Placement Memorandum as then in effect.  The
      Private Placement Memorandum shall expressly state that any person to whom
      Notes are offered shall have an opportunity to ask questions of, and
      receive publicly available information from, the Issuer and the Dealer and
      shall provide the names, addresses and telephone numbers of the persons
      from whom information regarding the Issuer may be
  obtained.

            

    

     

    
      	
            	
              (g)  

            	
              The
      Issuer agrees, for the benefit of the Dealer and each of the holders and
      prospective purchasers from time to time of the Notes that, if at any time
      the Issuer shall not be subject to Section 13 or 15(d) of the Exchange
      Act, the Issuer will furnish, upon request and at its expense, to the
      Dealer and to holders and prospective purchasers of Notes information
      required by Rule 144A(d)(4)(i) in compliance with Rule
      144A(d).

            

    

     

    
      	
            	
              (h)  

            	
              In
      the event that any Note offered or to be offered by the Dealer would be
      ineligible for resale under Rule 144A(d)(3), the Issuer shall immediately
      notify the Dealer (by telephone, confirmed in writing) of such fact and
      shall promptly prepare and deliver to the Dealer an amendment or
      supplement to the Private Placement Memorandum describing the Notes that
      are ineligible, the reason for such ineligibility and any other relevant
      information relating thereto.

            

    

     

    
      	
            	
              (i)  

            	
              The
      Issuer represents that it is not currently issuing commercial paper in the
      United States market in reliance upon the exemption provided by Section
      3(a)(3) of the Securities Act.  The Issuer agrees that, if it
      shall issue 

            

    

    
       

       

    

    
      
        
        

      

      
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              commercial
      paper after the date hereof in reliance upon such exemption (a) the
      proceeds from the sale of the Notes will be segregated from the proceeds
      of the sale of any such commercial paper by being placed in a separate
      account; (b) the Issuer will institute appropriate corporate procedures to
      ensure that the offers and sales of notes issued by the Issuer pursuant to
      the Section 3(a)(3) exemption are not integrated with offerings and sales
      of Notes hereunder; and (c) the Issuer will comply with each of the
      requirements of Section 3(a)(3) of the Securities Act in selling
      commercial paper or other short-term debt securities other than the Notes
      in the United States.

            

    

     

    
      	
               
      

            	
              1.7

            	
              The
      Issuer hereby represents and warrants to the Dealer, in connection with
      offers, sales and resales of Notes, as
follows:

            

    

     

    
      	
            	
              (a)  

            	
              The
      Issuer hereby confirms to the Dealer that (except as permitted by Section
      1.6(i)) within the preceding six months neither the Issuer nor any person
      other than the Dealer or the other dealers referred to in Section 1.2
      hereof acting on behalf of the Issuer has offered or sold any Notes, or
      any substantially similar security of the Issuer (including, without
      limitation, medium-term notes issued by the Issuer), to, or solicited
      offers to buy any such security from, any person other than the Dealer or
      the other dealers referred to in Section 1.2 hereof.  The Issuer
      also agrees that (except as permitted by Section 1.6(i)), as long as the
      Notes are being offered for sale by the Dealer and the other dealers
      referred to in Section 1.2 hereof as contemplated hereby and until at
      least six months after the offer of Notes hereunder has been terminated,
      neither the Issuer nor any person other than the Dealer or the other
      dealers referred to in Section 1.2 hereof (except as contemplated by
      Section 1.2 hereof) will offer the Notes or any substantially similar
      security of the Issuer for sale to, or solicit offers to buy any such
      security from, any person other than the Dealer or the other dealers
      referred to in Section 1.2 hereof, it being understood that such agreement
      is made with a view to bringing the offer and sale of the Notes within the
      exemption provided by Section 4(2) of the Securities Act and Rule 506
      thereunder and shall survive any termination of this
      Agreement.  The Issuer hereby represents and warrants that it
      has not taken or omitted to take, and will not take or omit to take, any
      action that would cause the offering and sale of Notes hereunder to be
      integrated with any other offering of securities, whether such offering is
      made by the Issuer or some other party or
  parties.

            

    

     

    
      	
            	
              (b)  

            	
              The
      Issuer represents and agrees that the proceeds of the sale of the Notes
      are not currently contemplated to be used for the purpose of buying,
      carrying or trading securities within the meaning of Regulation T and the
      interpretations thereunder by the Board of Governors of the Federal
      Reserve System. In
      the event that the Issuer determines to use such proceeds for the purpose
      of buying, carrying or trading securities, whether in connection with an
      acquisition of another company or otherwise, the Issuer shall give the
      

            

    

     

     

    
      
        
        

      

      
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              Dealer
      at least five business days’ prior written notice to that effect;
      provided, however, that no such notice shall be required of the Issuer for
      purchases of Securities issued by the Issuer and purchased for immediate
      retirement.  The Issuer shall also give the Dealer prompt notice
      of the actual date that it commences to purchase securities with the
      proceeds of the Notes.  Thereafter, in the event that the Dealer
      purchases Notes as principal and does not resell such Notes on the day of
      such purchase, to the extent necessary to comply with Regulation T and the
      interpretations thereunder, the Dealer will sell such Notes either (i)
      only to offerees it reasonably believes to be Qualified Institutional
      Buyers or to Qualified Institutional Buyers it reasonably believes are
      acting for other Qualified Institutional Buyers, in each case in
      accordance with Rule 144A or (ii) in a manner which would not cause a
      violation of Regulation T and the interpretations
    thereunder.

            

    

     

    
      	
              2.  

            	
              Representations
      and Warranties of Issuer.

            

    

    
 

    The Issuer
represents and warrants that:

     

    
      	
            	
              2.1  

            	
              The
      Issuer is a corporation duly organized, validly existing and in good
      standing under the laws of the jurisdiction of its incorporation and has
      all the requisite power and authority to execute, deliver and perform its
      obligations under the Notes, this Agreement and the Issuing and Paying
      Agency Agreement.

            

    

     

    
      	
            	
              2.2  

            	
              This
      Agreement and the Issuing and Paying Agency Agreement have been duly
      authorized, executed and delivered by the Issuer and constitute legal,
      valid and binding obligations of the Issuer enforceable against the Issuer
      in accordance with their terms, subject to applicable bankruptcy,
      insolvency and similar laws affecting creditors’ rights generally, and
      subject, as to enforceability, to general principles of equity (regardless
      of whether enforcement is sought in a proceeding in equity or at
      law).

            

    

     

    
      	
            	
              2.3  

            	
              The
      Notes have been duly authorized, and when issued as provided in the
      Issuing and Paying Agency Agreement, will be duly and validly issued and
      will constitute legal, valid and binding obligations of the Issuer
      enforceable against the Issuer in accordance with their terms, subject to
      applicable bankruptcy, insolvency and similar laws affecting creditors’
      rights generally, and subject, as to enforceability, to general principles
      of equity (regardless of whether enforcement is sought in a proceeding in
      equity or at law).

            

    

     

    
      	
            	
              2.4  

            	
              The
      offer and sale of the Notes in the manner contemplated hereby do not
      require registration of the Notes under the Securities Act, pursuant to
      the exemption from registration contained in Section 4(2) thereof, and no
      indenture in respect of the Notes is required to be qualified under the
      Trust Indenture Act of 1939, as
amended.

            

    

     

    
      	
            	
              2.5  

            	
              The
      Notes will rank at least pari passu with all other unsecured and
      unsubordinated indebtedness of the
Issuer.

            

    

    
       

       

    

    
      
        
        

      

      
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              2.6  

            	
              Except
      as provided in Section 1.6(j) hereof, no consent or action of, or filing
      or registration with, any governmental or public regulatory body or
      authority, including the SEC, is required to authorize, or is otherwise
      required in connection with the execution, delivery or performance of,
      this Agreement, the Notes or the Issuing and Paying Agency Agreement,
      except as may be required by the securities or Blue Sky laws of the
      various states in connection with the offer and sale of the
      Notes.

            

    

     

    
      	
            	
              2.7  

            	
              Neither
      the execution and delivery of this Agreement and the Issuing and Paying
      Agency Agreement, nor the issuance of the Notes in accordance with the
      Issuing and Paying Agency Agreement, nor the fulfillment of or compliance
      with the terms and provisions hereof or thereof by the Issuer, will (i)
      result in the creation or imposition of any mortgage, lien, charge or
      encumbrance of any nature whatsoever upon any of the properties or assets
      of the Issuer, or (ii) violate or result in a breach or a default under
      any of the terms of the Issuer’s charter documents or by-laws, any
      contract or instrument to which the Issuer is a party or by which it or
      its property is bound, or any law or regulation, or any order, writ,
      injunction or decree of any court or government instrumentality, to which
      the Issuer is subject or by which it or its property is bound, which
      breach or default might have a material adverse effect on the condition
      (financial or otherwise), operations or business prospects of the Issuer
      or the ability of the Issuer to perform its obligations under this
      Agreement, the Notes or the Issuing and Paying Agency
      Agreement.

            

    

     

    
      	
            	
              2.8  

            	
              Except
      as otherwise disclosed by the Issuer in the Company Information (as
      defined below), there is no litigation or governmental proceeding pending,
      or to the knowledge of the Issuer threatened, against or affecting the
      Issuer or any of its subsidiaries which might reasonably be expected to
      result in a material adverse change in the condition (financial or
      otherwise), operations or business prospects of the Issuer or the ability
      of the Issuer to perform its obligations under this Agreement, the Notes
      or the Issuing and Paying Agency
Agreement.

            

    

     

    
      	
            	
              2.9  

            	
              The
      Issuer is not an “investment company” within the meaning of the Investment
      Company Act of 1940, as amended.

            

    

     

    
      	
            	
              2.10  

            	
              Neither
      the Private Placement Memorandum nor the Company Information contains any
      untrue statement of a material fact or omits to state a material fact
      required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading.

            

    

     

    
      	
            	
              2.11  

            	
              Each
      (a) issuance of Notes by the Issuer hereunder and (b) amendment or
      supplement of the Private Placement Memorandum shall be deemed a
      representation and warranty by the Issuer to the Dealer, as of the date
      thereof, that, both before and after giving effect to such issuance and
      after giving effect to such amendment or supplement, (i) the
      representations and warranties given by the Issuer set forth in this
      Section 2 remain true and correct on and as of such date as if made on and
      as of such date, (ii) in the case of an issuance of Notes, the Notes being
      issued on such date have been duly and validly issued and constitute
      legal, valid and binding obligations of the

            

    

     

     

    
      
        
        

      

      
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              Issuer,
      enforceable against the Issuer in accordance with their terms, subject to
      applicable bankruptcy, insolvency and similar laws affecting creditors’
      rights generally and subject, as to enforceability, to general principles
      of equity (regardless of whether enforcement is sought in a proceeding in
      equity or at law) and (iii) in the case of an issuance of Notes, since the
      date of the most recent Private Placement Memorandum, there has been no
      change in the condition (financial or otherwise), operations or business
      prospects of the Issuer that would be materially adverse to the holders of
      the Notes or potential holders of the Notes which has not been disclosed
      to the Dealer in writing.

            

    

     

    
      	
              3.  

            	
              Covenants
      and Agreements of Issuer.

            

    

    
 

    The Issuer
covenants and agrees that:

     

    
      	
            	
              3.1  

            	
              The
      Issuer will give the Dealer prompt notice (but in any event prior to any
      subsequent issuance of Notes hereunder) of any amendment to, modification
      of or waiver with respect to, the Notes or the Issuing and Paying Agency
      Agreement, including a complete copy of any such amendment, modification
      or waiver.

            

    

     

    
      	
            	
              3.2  

            	
              The
      Issuer shall, whenever there shall occur any change in the Issuer’s
      condition (financial or otherwise), operations or business prospects or
      any development or occurrence in relation to the Issuer that would be
      materially adverse to holders of the Notes or potential holders of the
      Notes (including any downgrading or receipt of any notice of intended or
      potential downgrading or any review for potential change in the rating
      accorded any of the Issuer’s securities by any nationally recognized
      statistical rating organization which has published a rating of the
      Notes), promptly, and in any event prior to any subsequent issuance of
      Notes hereunder, notify the Dealer (by telephone, confirmed in writing) of
      such materially adverse change, development or
  occurrence.

            

    

     

    
      	
            	
              3.3  

            	
              To
      the extent permitted by applicable law, the Issuer shall from time to time
      furnish to the Dealer such information as the Dealer may reasonably
      request, including, without limitation, any press releases or material
      provided by the Issuer to any national securities exchange or rating
      agency, regarding (i) the Issuer’s operations and financial condition,
      (ii) the due authorization and execution of the Notes and (iii) the
      Issuer’s ability to pay the Notes as they
  mature.

            

    

     

    
      	
            	
              3.4  

            	
              The
      Issuer will take all such action as the Dealer may reasonably request to
      ensure that each offer and each sale of the Notes will comply with any
      applicable state Blue Sky laws; provided, however, that the Issuer shall
      not be obligated to file any general consent to service of process or to
      qualify as a foreign corporation in any jurisdiction in which it is not so
      qualified or subject itself to taxation in respect of doing business in
      any jurisdiction in which it is not otherwise so
  subject.

            

    

     

    
      	
            	
              3.5  

            	
              The
      Issuer will not be in default of any of its obligations hereunder, under
      the Notes or under the Issuing and Paying Agency Agreement, at any time
      that any of the Notes are
outstanding.

            

    

    
       

    

    
      
        
        

      

      
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              3.6  

            	
              The
      Issuer shall not issue or sell Notes hereunder until the Dealer shall have
      received (a) an opinion of counsel to the Issuer, addressed to the Dealer,
      satisfactory in form and substance to the Dealer, (b) a copy of the
      executed Issuing and Paying Agency Agreement as then in effect, (c) a copy
      of resolutions adopted by the Board of Directors of the Issuer,
      satisfactory in form and substance to the Dealer and certified by the
      Secretary or similar officer of the Issuer, authorizing execution and
      delivery by the Issuer of this Agreement, the Issuing and Paying Agency
      Agreement and the Notes and consummation by the Issuer of the transactions
      contemplated hereby and thereby, (d) prior to the issuance of any
      book-entry Notes represented by a master note registered in the name of
      DTC or its nominee, a copy of the executed Letter of Representations among
      the Issuer, the Issuing and Paying Agent and DTC and of the executed
      master note, (e) prior to the issuance of any Notes in physical form, a
      copy of such form (unless attached to this Agreement or the Issuing and
      Paying Agency Agreement) and (f) such other certificates, opinions,
      letters and documents as the Dealer shall have reasonably
      requested.

            

    

     

    
      	
            	
              3.7  

            	
              The
      Issuer shall reimburse the Dealer for all of the Dealer’s reasonable
      out-of-pocket expenses related to this Agreement, including expenses
      incurred in connection with its preparation and negotiation, and the
      transactions contemplated hereby (including, but not limited to, the
      printing and distribution of the Private Placement Memorandum), but not
      including fees and out-of-pocket expenses of the Dealer’s
      counsel.

            

    

     

    
      	
              4.  

            	
              Disclosure.

            

    

    
 

    
      	
            	
              4.1  

            	
              The
      Private Placement Memorandum and its contents (other than the Dealer
      Information) shall be the sole responsibility of the
      Issuer.  The Private Placement Memorandum shall contain a
      statement expressly offering an opportunity for each prospective purchaser
      to ask questions of, and receive answers from, the Issuer concerning the
      offering of Notes and to obtain relevant additional publicly available
      information which the Issuer possesses or can acquire without unreasonable
      effort or expense.  Notwithstanding the foregoing, nothing in
      this Agreement or the Private Placement Memorandum shall obligate the
      Issuer to provide information to investors which has not been previously
      made available to the public, or to the Dealer, other than in accordance
      with Section 3.3.

            

    

     

    
      	
            	
              4.2  

            	
              The
      Issuer agrees to promptly furnish the Dealer with any material public
      Company Information as it becomes
available.

            

    

     

    
      	
                     
      4.3   

            	
              (a)  

            	
              The
      Issuer further agrees to notify the Dealer promptly upon the occurrence of
      any event relating to or affecting the Issuer that would cause the Company
      Information then in existence to include an untrue statement of a material
      fact or to omit to state a material fact necessary in order to make the
      statements contained therein, in light of the circumstances under which
      they are made, not misleading.

            

    

    
       

       

    

    
      
        
        

      

      
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              (b)  

            	
              In
      the event that the Issuer gives the Dealer notice pursuant to Section
      4.3(a) and the Dealer notifies the Issuer that it then has Notes it is
      holding in inventory, the Issuer agrees promptly to supplement or amend
      the Private Placement Memorandum so that the Private Placement Memorandum,
      as amended or supplemented, shall not contain an untrue statement of a
      material fact or omit to state a material fact necessary in order to make
      the statements therein, in light of the circumstances under which they
      were made, not misleading, and the Issuer shall make such supplement or
      amendment available to the Dealer.

            

    

     

    
      	 	
              (c)  

            	
              In
      the event that (i) the Issuer gives the Dealer notice pursuant to Section
      4.3(a), (ii) the Dealer does not notify the Issuer that it is then
      holding Notes in inventory and (iii) the Issuer chooses not to
      promptly amend or supplement the Private Placement Memorandum in the
      manner described in clause (b) above, then all solicitations and sales of
      Notes shall be suspended until such time as the Issuer has so amended or
      supplemented the Private Placement Memorandum, and made such amendment or
      supplement available to the Dealer.

            

    

     

    
      	 	
              (d)  

            	
              Without limiting the
      generality of Section 4.3(a), the Issuer shall review, amend and
      supplement the Private Placement Memorandum on a periodic basis, but no
      less than at least once annually, to incorporate current financial
      information of the Issuer to the extent necessary to ensure that the
      information provided in the Private Placement Memorandum is accurate and
      complete.

            

    

     

    
      	
              5.  

            	
              Indemnification
      and Contribution.

            

    

     

    
      	
                     
      5.1 

            	The
      Issuer will indemnify and hold harmless the Dealer, each individual,
      corporation, partnership, trust, association or other entity controlling
      the Dealer, any affiliate of the Dealer or any such controlling entity and
      their respective directors, officers, employees, partners, incorporators,
      shareholders, servants, trustees and agents (hereinafter the
      “Indemnitees”) against any and all liabilities, penalties, suits, causes
      of action, losses, damages, claims, costs and expenses (including, without
      limitation, reasonable fees and disbursements of counsel) or judgments of
      whatever kind or nature (each a “Claim”), imposed upon, incurred by or
      asserted against the Indemnitees arising out of or based upon (i) any
      allegation that the Private Placement Memorandum, the Company Information
      or any information provided by the Issuer to the Dealer included (as of
      any relevant time) or includes an untrue statement of a material fact or
      omitted (as of any relevant time) or omits to state any material fact
      necessary to make the statements therein, in light of the circumstances
      under which they were made, not misleading or (ii) arising out of or based
      upon the breach by the Issuer of any agreement, covenant or representation
      made in or pursuant to this Agreement.  The Issuer and the
      Dealer agree that the Issuer shall have no liability under this Section
      for any Claim arising out of or based on Dealer Information.
	 	 
	
                     
      5.2  

            	
              Provisions
      relating to claims made for indemnification under this Section 5 are set
      forth on Exhibit B to this
Agreement.

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	
                     
      5.3  

            	
              In
      order to provide for just and equitable contribution in circumstances in
      which the indemnification provided for in this Section 5 is held to be
      unavailable or insufficient to hold harmless the Indemnitees, although
      applicable in accordance with the terms of this Section 5, the Issuer
      shall contribute to the aggregate costs incurred by the Dealer in
      connection with any Claim in the proportion of the respective economic
      interests of the Issuer and the Dealer; provided, however, that such
      contribution by the Issuer shall be in an amount such that the aggregate
      costs incurred by the Dealer do not exceed the aggregate of the
      commissions and fees earned by the Dealer hereunder with respect to the
      issue or issues of Notes to which such Claim relates. The respective
      economic interests shall be calculated by reference to the aggregate
      proceeds to the Issuer of the Notes issued hereunder and the aggregate
      commissions and fees earned by the Dealer
  hereunder.

            

    

     

    
      	
              6.  

            	
              Definitions.

            

    

    
 

    
      	
                     
      6.1  

            	
              “Claim”
      shall have the meaning set forth in Section
5.1.

            

    

     

    
      	
                     
      6.2  

            	
              “Company
      Information” at any given time shall mean the Private Placement Memorandum
      together with, to the extent applicable, (i) the Issuer’s most recent
      report on Form 10-K filed with the SEC and each report on Form 10-Q or 8-K
      filed by the Issuer with the SEC since the most recent Form 10-K, (ii) the
      Issuer’s most recent annual audited financial statements and each interim
      financial statement or report prepared subsequent thereto, if not included
      in item (i) above, (iii) the Issuer’s and its affiliates’ other publicly
      available recent reports, including, but not limited to, any publicly
      available filings or reports provided to their respective shareholders,
      (iv) any other information or disclosure prepared pursuant to Section 4.3
      hereof and (v) any information prepared or approved by the Issuer for
      dissemination to investors or potential investors in the
      Notes.

            

    

     

    
      	
                     
      6.3  

            	
              “Dealer
      Information” shall mean material concerning the Dealer provided by the
      Dealer in writing expressly for inclusion in the Private Placement
      Memorandum.

            

    

     

    
      	
                     
      6.4  

            	
              “Exchange
      Act” shall mean the U.S. Securities Exchange Act of 1934, as
      amended.

            

    

     

    
      	
                     
      6.5  

            	
              “Indemnitee”
      shall have the meaning set forth in Section
5.1.

            

    

     

    
      	
                     
      6.6  

            	
              “Institutional
      Accredited Investor” shall mean an institutional investor that is an
      accredited investor within the meaning of Rule 501 under the Securities
      Act and that has such knowledge and experience in financial and business
      matters that it is capable of evaluating and bearing the economic risk of
      an investment in the Notes, including, but not limited to, a bank, as
      defined in Section 3(a)(2) of the Securities Act, or a savings and loan
      association or other institution, as defined in Section 3(a)(5)(A) of the
      Securities Act, whether acting in its individual or fiduciary
      capacity.

            

    

     

    
      	
                     
      6.7  

            	
              “Issuing
      and Paying Agency Agreement” shall mean the issuing and paying agency
      agreement described on the cover page of this Agreement, as such agreement
      may be amended or supplemented from time to
  time.

            

    

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	
                     
      6.8  

            	
              “Issuing
      and Paying Agent” shall mean the party designated as such on the cover
      page of this Agreement, as issuing and paying agent under the Issuing and
      Paying Agency Agreement, or any successor thereto in accordance with the
      Issuing and Paying Agency
Agreement.

            

    

     

    
      	
                     
      6.9  

            	
              “Non-bank
      fiduciary or agent” shall mean a fiduciary or agent other than (a) a bank,
      as defined in Section 3(a)(2) of the Securities Act, or (b) a savings and
      loan association, as defined in Section 3(a)(5)(A) of the Securities
      Act.

            

    

     

    
      	
                     
      6.10  

            	
              “Private
      Placement Memorandum” shall mean offering materials prepared in accordance
      with Section 4 (including materials referred to therein or incorporated by
      reference therein, if any) provided to purchasers and prospective
      purchasers of the Notes, and shall include amendments and supplements
      thereto which may be prepared from time to time in accordance with this
      Agreement (other than any amendment or supplement that has been completely
      superseded by a later amendment or
supplement).

            

    

     

    
      	
                     
      6.11  

            	
              “Qualified
      Institutional Buyer” shall have the meaning assigned to that term in Rule
      144A under the Securities Act.

            

    

     

    
      	
                     
      6.12  

            	
              “Rule
      144A” shall mean Rule 144A under the Securities
  Act.

            

    

     

    
      	
                     
      6.13  

            	
              “SEC”
      shall mean the U.S. Securities and Exchange
  Commission.

            

    

     

    
      	
                     
      6.14  

            	
              “Securities
      Act” shall mean the U.S. Securities Act of 1933, as
    amended.

            

    

     

    
      	
                     
      6.15  

            	
              “Sophisticated
      Individual Accredited Investor” shall mean an individual who (a) is an
      accredited investor within the meaning of Regulation D under the
      Securities Act and (b) based on his or her pre-existing relationship with
      the Dealer, is reasonably believed by the Dealer to be a sophisticated
      investor (i) possessing such knowledge and experience (or represented by a
      fiduciary or agent possessing such knowledge and experience) in financial
      and business matters that he or she is capable of evaluating and bearing
      the economic risk of an investment in the Notes and (ii) having not less
      than $5 million in investments (as defined, for purposes of this section,
      in Rule 2a51-1 under the Investment Company Act of 1940, as
      amended).

            

    

     

    
      	
              7.

            	
              General

            

    

    
 

    
      	
                     
      7.1  

            	
              Unless
      otherwise expressly provided herein, all notices under this Agreement to
      parties hereto shall be in writing and shall be effective when received at
      the address of the respective party set forth in the Addendum to this
      Agreement.

            

    

     

    
      	
                     
      7.2  

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of the State of New York, without regard to its conflict of laws
      provisions.

            

    

     

    
      	
                     
      7.3  

            	
              The
      Issuer agrees that any suit, action or proceeding brought by the Issuer
      against the Dealer in connection with or arising out of this Agreement or
      the Notes or the offer 

            

    

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	 	and
      sale of the Notes shall be brought solely in the United States federal
      courts located in the Borough of Manhattan or the courts of the State of
      New York located in the Borough of Manhattan.  EACH OF THE
      DEALER AND THE ISSUER WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY SUIT,
      ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS
      CONTEMPLATED HEREBY.

    

     

    
      	
                     
      7.4  

            	
              This
      Agreement may be terminated, at any time, by the Issuer, upon one business
      day’s prior notice to such effect to the Dealer, or by the Dealer upon one
      business day’s prior notice to such effect to the Issuer.  Any
      such termination, however, shall not affect the obligations of the Issuer
      under Sections 3.7, 5 and 7.3 hereof or the respective representations,
      warranties, agreements, covenants, rights or responsibilities of the
      parties made or arising prior to the termination of this
      Agreement.

            

    

     

    
      	
                     
      7.5  

            	
              This
      Agreement is not assignable by either party hereto without the written
      consent of the other party; provided, however, that the Dealer may assign
      its rights and obligations under this Agreement to any affiliate of the
      Dealer.

            

    

     

    
      	
                     
      7.6  

            	
              This
      Agreement may be signed in any number of counterparts, each of which shall
      be an original, with the same effect as if the signatures thereto and
      hereto were upon the same
instrument.

            

    

     

    
      	
                     
      7.7  

            	
              This
      Agreement is for the exclusive benefit of the parties hereto, and their
      respective permitted successors and assigns hereunder, and shall not be
      deemed to give any legal or equitable right, remedy or claim to any other
      person whatsoever.

            

    

     

    
      	
               
      

            	
              7.8  
      

            	
              The
      Issuer acknowledges and agrees that (i) the purchase and sale of the
      Notes pursuant to this Agreement including, the determination of any
      prices for the Notes and Dealer compensation, are arm's-length commercial
      transactions between the Issuer, on the one hand, and the Dealer, on the
      other, (ii) in connection therewith and with the process leading to
      such transactions, the Dealer is acting solely as a principal and not the
      agent or fiduciary of the Issuer, (iii) the Dealer has not assumed an
      advisory or fiduciary responsibility in favor of the Issuer or any of its
      Affiliates with respect to the offering contemplated hereby or the process
      leading thereto (irrespective of whether the Dealer has advised or is
      currently advising the Issuer or any of its Affiliates on other matters)
      or any other obligation to the Issuer except the obligations expressly set
      forth in this Agreement and (iv) the Issuer has consulted its own
      legal and financial advisors to the extent it deemed
      appropriate.  The Issuer agrees that it will not claim that the
      Dealer has rendered advisory services of any nature or respect, or owes a
      fiduciary or similar duty to the Issuer, in connection with such
      transaction or the process leading
thereto.

            

    

     

    
      	
               
      

            	
              7.9  
      

            	
              In
      the case of any agreement by a Dealer to purchase a Note hereunder (other
      than as agent) which provides for a settlement date that is three Business
      Days or more after 

            

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	 	 	the
      date of such agreement, the obligation of the Dealer to purchase the Note
      under such agreement shall be subject to the following
    conditions:

    

     

    
      	
               
      

            	
              (a) 
      

            	
              the
      representations and warranties given by the Issuer set forth above in
      Section 2 shall be true and correct on and as of the settlement date as if
      made on and as of such date, and the Issuer  shall have
      performed all of its obligations hereunder to be performed as of such
      date,

            

    

     

    
      	
               
      

            	
              (b) 
      

            	
              since
      the date of the most recent Private Placement Memorandum, there shall have
      been no material adverse change in the condition (financial or otherwise),
      operations or business prospects of the Issuer (whether occurring before
      or after such agreement was entered into) which was not disclosed to the
      Dealer in writing prior to the time such agreement was entered
      into,

            

    

     

    
      	
               
      

            	
              (c) 
      

            	
              the
      Issuer shall not be in default of any of its obligations hereunder, under
      the Notes or under the Issuing and Paying Agency
  Agreement.

            

    

     

    
      	
               
      

            	
              (d) 
      

            	
              on
      or after the date of such agreement there shall not have occurred any of
      the following: (i) a suspension or material limitation in trading in
      securities generally on the New York Stock Exchange; (ii) a suspension or
      material limitation in trading in the Issuer’s securities on the NYSE;
      (iii) a general moratorium on commercial banking activities declared by
      either Federal or New York State authorities or a material disruption in
      commercial banking or securities settlement or clearance services in the
      United States; (iv) the outbreak or escalation of hostilities involving
      the United States or the declaration by the United States of a national
      emergency or war or (v) the occurrence of any other calamity or crisis or
      any change in financial, political or economic conditions in the United
      States or elsewhere, if the effect of any such event specified in clause
      (iv) or (v) in the judgment of the Dealer makes it impracticable or
      inadvisable to proceed with the offering or the delivery of the Note on
      the terms and in the manner contemplated in the Private Placement
      Memorandum,

            

    

     

    
      	
               
      

            	
              (e) 
      

            	
              on
      or after the date of such agreement, (i) no downgrading shall have
      occurred in the rating accorded the Issuer's debt securities by any
      nationally recognized statistical rating organization and (ii) no such
      organization shall have publicly announced that it has under surveillance
      or review, with possible negative implications, its rating of any of the
      Issuer's debt securities.

            

    

     

    “Business Day”
shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a
day on which banking institutions in New York are generally authorized or
obligated by law or executive order to close.

     

    This Agreement
supersedes all prior agreements and understandings (whether written or oral)
between the Issuer and the Dealer, or any of them, with respect to the subject
matter hereof.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
 

               IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date and year first above written.

     

     

     

    
      	
              CIGNA
      Corporation, as Issuer

            	
              Goldman,
      Sachs & Co., as
    Dealer

            
	 	 
	
              By:
      /s/ Mordecai
      Schwartz

            	
              By: 
      /s/ Nicholas
      Philip

            
	 	 
	
              Name: 
      Mordecai Schwartz

            	
              Name: 
      Nicholas Philip

            
	 	 
	
              Title: 
      Vice President and Treasurer

            	
              Title: 
      Vice President

            

    

     

    
 

     

     

    

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

     

    Addendum

     

    The
following additional clauses shall apply to the Agreement and be deemed a part
thereof.

     

    
      	
              1.  

            	
              The
      other dealer referred to in clause (b) of Section 1.2 of the Agreement is
      J.P. Morgan Securities Inc.

            

    

     

    
      	
              2.  

            	
              The
      following changes are hereby made to the
  Agreement:

            

    

     

    (a)           Section
1.6(j) is hereby added to the Agreement, as follows:

     

    (j) The
Issuer hereby agrees that, not later than 15 days after the first sale of Notes
as contemplated by this Agreement, it will file with the SEC a notice on Form D
in accordance with Rule 503 under the Securities Act and that it will thereafter
file such amendments to such notice as Rule 503 may require.

     

    (b)           Section
2.4 of the Agreement is amended by adding the words “and Regulation D
thereunder” after the words “Section 4(2) thereof “on the third 

    line of
such Section.

     

    (c)           A
new Section 6.16 is hereby added to the Agreement, as follows:

     

    6.16 “Regulation
D” shall mean Regulation D (Rules 501 et seq.) under theSecurities
Act.

     

    
      	
              3.  

            	
              The
      addresses of the respective parties for purposes of notices under Section
      7.1 are as follows:

            

    

     

    For the
Issuer:

     

    
      	
              Address:

            	
              CIGNA
      Corporation

            
	 
      	
              TL15J

            
	 
      	
              1601
      Chestnut Street

            
	 
      	
              Philadelphia,
      PA  19192

            
	 
      	
              Attention:  Treasurer

            

    

    
      	
              Telephone
      number:

            	
              215.761.2814

            
	
              Fax
      number:

            	
              215.761.5516

            

    

     

    For the
Dealer:

     

    
      	
              Address:

            	
              Goldman,
      Sachs & Co.

            
	 
      	
              85
      Broad Street

            
	 
      	
              New
      York, NY  10004

            
	 
      	
              Attention:  Money
      Market Origination

            

    

    
      	
              Telephone
      number:

            	
              212
      902 2525

            
	
              Fax
      number:

            	
              212
      902 0683

            

    

     

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

     

    Exhibit
A

     

    Form
of Legend for Private Placement Memorandum and Notes

     

     

    THE NOTES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR ANY OTHER APPLICABLE SECURITIES LAW, AND OFFERS AND SALES THEREOF MAY
BE MADE ONLY IN COMPLIANCE WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.  BY
ITS ACCEPTANCE OF A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT THAT (I) IT
HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER
AND THE NOTES, (II) IT IS NOT ACQUIRING SUCH NOTE WITH A VIEW TO ANY
DISTRIBUTION THEREOF AND (III) IT IS EITHER (A)(1) AN INSTITUTIONAL INVESTOR OR
SOPHISTICATED INDIVIDUAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE
MEANING OF RULE 501(a) UNDER THE ACT AND WHICH, IN THE CASE OF AN INDIVIDUAL,
(i) POSSESSES SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS
THAT HE OR SHE IS CAPABLE OF EVALUATING AND BEARING THE ECONOMIC RISK OF AN
INVESTMENT IN THE NOTES AND (ii) HAS NOT LESS THAN $5 MILLION IN INVESTMENTS (AN
“INSTITUTIONAL ACCREDITED INVESTOR” OR “SOPHISTICATED INDIVIDUAL ACCREDITED
INVESTOR”, RESPECTIVELY) AND (2)(i) PURCHASING NOTES FOR ITS OWN ACCOUNT, (ii) A
BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT) OR A SAVINGS AND LOAN
ASSOCIATION OR OTHER INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A) OF THE ACT)
ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY OR (iii) A FIDUCIARY OR AGENT
(OTHER THAN A U.S. BANK OR SAVINGS AND LOAN ASSOCIATION) PURCHASING NOTES FOR
ONE OR MORE ACCOUNTS EACH OF WHICH ACCOUNTS IS SUCH AN INSTITUTIONAL ACCREDITED
INVESTOR OR SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR; OR (B) A QUALIFIED
INSTITUTIONAL BUYER (“QIB”) WITHIN THE MEANING OF RULE 144A UNDER THE ACT THAT
IS ACQUIRING NOTES FOR ITS OWN ACCOUNT OR FOR ONE OR MORE ACCOUNTS, EACH OF
WHICH ACCOUNTS IS A QIB; AND THE PURCHASER ACKNOWLEDGES THAT IT IS AWARE THAT
THE SELLER MAY RELY UPON THE EXEMPTION FROM THE REGISTRATION PROVISIONS OF
SECTION 5 OF THE ACT PROVIDED BY RULE 144A.  BY ITS ACCEPTANCE OF A
NOTE, THE PURCHASER THEREOF SHALL ALSO BE DEEMED TO AGREE THAT ANY RESALE OR
OTHER TRANSFER THEREOF WILL BE MADE ONLY (A) IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE ACT, EITHER (1) TO THE ISSUER OR TO A PLACEMENT AGENT
DESIGNATED BY THE ISSUER AS A PLACEMENT AGENT FOR THE NOTES (COLLECTIVELY, THE
“PLACEMENT AGENTS”), NONE OF WHICH SHALL HAVE ANY OBLIGATION TO ACQUIRE SUCH
NOTE, (2) THROUGH A PLACEMENT AGENT TO AN INSTITUTIONAL ACCREDITED INVESTOR,
SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR OR A QIB, OR (3) TO A QIB IN A
TRANSACTION THAT MEETS THE REQUIREMENTS OF RULE 144A AND (B) IN MINIMUM AMOUNTS
OF $250,000.

     

     

    

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

     

    Exhibit
B

     

    Further
Provisions Relating to Indemnification

     

     

    
      	
              (a)

            	
              The
      Issuer agrees to reimburse each Indemnitee for all expenses (including
      reasonable fees and disbursements of internal and external counsel) as
      they are incurred by it in connection with investigating or defending any
      loss, claim, damage, liability or action in respect of which
      indemnification may be sought under Section 5 of the Agreement (whether or
      not it is a party to any such
proceedings).

            

    

     

     

    
      	
              (b)

            	
              Promptly
      after receipt by an Indemnitee of notice of the existence of a Claim, such
      Indemnitee will, if a claim in respect thereof is to be made against the
      Issuer, notify the Issuer in writing of the existence thereof; provided
      that (i) the omission so to notify the Issuer will not relieve the Issuer
      from any liability which it may have hereunder unless and except to the
      extent it did not otherwise learn of such Claim and such failure results
      in the forfeiture by the Issuer of substantial rights and defenses, and
      (ii) the omission so to notify the Issuer will not relieve it from
      liability which it may have to an Indemnitee otherwise than on account of
      this indemnity agreement.  In case any such Claim is made
      against any Indemnitee and it notifies the Issuer of the existence
      thereof, the Issuer will be entitled to participate therein, and to the
      extent that it may elect by written notice delivered to the Indemnitee, to
      assume the defense thereof, with counsel reasonably satisfactory to such
      Indemnitee; provided that if the defendants in any such Claim include both
      the Indemnitee and the Issuer, and the Indemnitee shall have concluded
      that there may be legal defenses available to it which are different from
      or additional to those available to the Issuer, the Issuer shall not have
      the right to direct the defense of such Claim on behalf of such
      Indemnitee, and the Indemnitee shall have the right to select separate
      counsel to assert such legal defenses on behalf of such
      Indemnitee.  Upon receipt of notice from the Issuer to such
      Indemnitee of the Issuer’s election so to assume the defense of such Claim
      and approval by the Indemnitee of counsel, the Issuer will not be liable
      to such Indemnitee for expenses incurred thereafter by the Indemnitee in
      connection with the defense thereof (other than reasonable costs of
      investigation) unless (i) the Indemnitee shall have employed separate
      counsel in connection with the assertion of legal defenses in accordance
      with the proviso to the next preceding sentence (it being understood,
      however, that the Issuer shall not be liable for the expenses of more than
      one separate counsel (in addition to any local counsel in the jurisdiction
      in which any Claim is brought), approved by the Dealer, representing the
      Indemnitee who is party to such Claim), (ii) the Issuer shall not have
      employed counsel reasonably satisfactory to the Indemnitee to represent
      the Indemnitee within a reasonable time after notice of existence of the
      Claim or (iii) the Issuer has authorized in writing the employment of
      counsel for the Indemnitee.  The indemnity, reimbursement and
      contribution obligations of the Issuer hereunder shall be in addition to
      any other liability the Issuer may otherwise have to an Indemnitee and
      shall be binding upon and inure to the benefit of any successors, assigns,
      heirs and personal representatives of the Issuer and any
      Indemnitee.  The Issuer agrees that without the Dealer’s prior
      written consent, it will not settle, compromise or consent to the entry of
      any judgment in any Claim in respect of which indemnification may be
      sought under the indemnification provision of the Agreement (whether or
      not the Dealer 

            

    

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
      	 	or
      any other Indemnitee is an actual or potential party to such Claim),
      unless such settlement, compromise or consent (i) includes an
      unconditional release of each Indemnitee from all liability arising out of
      such Claim and (ii) does not include a statement as to or an admission of
      fault, culpability or failure to act, by or on behalf of any
      Indemnitee.

    

     

     

    

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

    

     

    Exhibit
C

     

    Statement
of Terms for Interest – Bearing Commercial Paper Notes of [Name of
Issuer]

     

    THE
PROVISIONS SET FORTH BELOW ARE QUALIFIED TO THE EXTENT APPLICABLE BY THE
TRANSACTION SPECIFIC [PRICING] [PRIVATE PLACEMENT MEMORANDUM] SUPPLEMENT (THE
“SUPPLEMENT”) (IF ANY) SENT TO EACH PURCHASER AT THE TIME OF THE
TRANSACTION.

     

    
      	
              1.

            	
              General.  (a)  The
      obligations of the Issuer to which these terms apply (each a “Note”) are
      represented by one or more Master Notes (each, a “Master Note”) issued in
      the name of (or of a nominee for) The Depository Trust Company (“DTC”),
      which Master Note includes the terms and provisions for the Issuer's
      Interest-Bearing Commercial Paper Notes that are set forth in this
      Statement of Terms, since this Statement of Terms constitutes an integral
      part of the Underlying Records as defined and referred to in the Master
      Note.

            

    

     

    
      	
               
      

            	
              (b)

            	
              “Business
      Day” means any day other than a Saturday or Sunday that is neither a legal
      holiday nor a day on which banking institutions are authorized or required
      by law, executive order or regulation to be closed in New York City and,
      with respect to LIBOR Notes (as defined below) is also a London Business
      Day.  “London Business Day” means, a day, other than a Saturday
      or Sunday, on which dealings in deposits in U.S. dollars are transacted in
      the London interbank market.

            

    

     

    
      	
              2.

            	
              Interest.  (a)  Each
      Note will bear interest at a fixed rate (a “Fixed Rate Note”) or at a
      floating rate (a “Floating Rate
    Note”).

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      Supplement sent to each holder of such Note will describe the following
      terms: (i) whether such Note is a Fixed Rate Note or a Floating Rate Note
      and whether such Note is an Original Issue Discount Note (as defined
      below); (ii) the date on which such Note will be issued (the “Issue
      Date”); (iii) the Stated Maturity Date (as defined below); (iv) if such
      Note is a Fixed Rate Note, the rate per annum at which such Note will bear
      interest, if any, and the Interest Payment Dates; (v) if such Note is a
      Floating Rate Note, the Base Rate, the Index Maturity, the Interest Reset
      Dates, the Interest Payment Dates and the Spread and/or Spread Multiplier,
      if any (all as defined below), and any other terms relating to the
      particular method of calculating the interest rate for such Note; and (vi)
      any other terms applicable specifically to such Note.  “Original
      Issue Discount Note” means a Note which has a stated redemption price at
      the Stated Maturity Date that exceeds its Issue Price by more than a
      specified de minimus amount and which the Supplement indicates will be an
      “Original Issue Discount Note”.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Each
      Fixed Rate Note will bear interest from its Issue Date at the rate per
      annum specified in the Supplement until the principal amount thereof is
      paid or made 

            

    

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
      	 	 	available
      for payment.  Interest on each Fixed Rate Note will be payable
      on the dates specified in the Supplement (each an “Interest Payment Date”
      for a Fixed Rate Note) and on the Maturity Date (as defined
      below).  Interest on Fixed Rate Notes will be computed on the
      basis of a 360-day year of twelve 30-day
months.

    

     

    
      	
               
      

            	
              If
      any Interest Payment Date or the Maturity Date of a Fixed Rate Note falls
      on a day that is not a Business Day, the required payment of principal,
      premium, if any, and/or interest will be payable on the next succeeding
      Business Day, and no additional interest will accrue in respect of the
      payment made on that next succeeding Business
  Day.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      interest rate on each Floating Rate Note for each Interest Reset Period
      (as defined below) will be determined by reference to an interest rate
      basis (a “Base Rate”) plus or minus a number of basis points (one basis
      point equals one-hundredth of a percentage point) (the “Spread”), if any,
      and/or multiplied by a certain percentage (the “Spread Multiplier”), if
      any, until the principal thereof is paid or made available for
      payment.  The Supplement will designate which of the following
      Base Rates is applicable to the related Floating Rate Note: (a) the CD
      Rate (a “CD Rate Note”), (b) the Commercial Paper Rate (a “Commercial
      Paper Rate Note”), (c) the Federal Funds Rate (a “Federal Funds Rate
      Note”), (d) LIBOR (a “LIBOR Note”), (e) the Prime Rate (a “Prime Rate
      Note”), (f) the Treasury Rate (a “Treasury Rate Note”) or (g) such other
      Base Rate as may be specified in such
  Supplement.

            

    

     

    The rate of
interest on each Floating Rate Note will be reset daily, weekly, monthly,
quarterly or semi-annually (the “Interest Reset Period”).  The date or
dates on which interest will be reset (each an “Interest Reset Date”) will be,
unless otherwise specified in the Supplement, in the case of Floating Rate Notes
which reset daily, each Business Day, in the case of Floating Rate Notes (other
than Treasury Rate Notes) that reset weekly, the Wednesday of each week; in the
case of Treasury Rate Notes that reset weekly, the Tuesday of each week; in the
case of Floating Rate Notes that reset monthly, the third Wednesday of each
month; in the case of Floating Rate Notes that reset quarterly, the third
Wednesday of March, June, September and December; and in the case of Floating
Rate Notes that reset semiannually, the third Wednesday of the two months
specified in the Supplement.  If any Interest Reset Date for any
Floating Rate Note is not a Business Day, such Interest Reset Date will be
postponed to the next day that is a Business Day, except that in the case of a
LIBOR Note, if such Business Day is in the next succeeding calendar month, such
Interest Reset Date shall be the immediately preceding Business Day. Interest on
each Floating Rate Note will be payable monthly, quarterly or semiannually (the
“Interest Payment Period”) and on the Maturity Date.  Unless otherwise
specified in the Supplement, and except as provided below, the date or dates on
which interest will be payable (each an “Interest Payment Date” for a Floating
Rate Note) will be, in the case of Floating Rate Notes with a monthly Interest
Payment Period, on the third Wednesday of each month; in the case of Floating
Rate Notes with a quarterly Interest Payment Period, on the third Wednesday of
March, June, September and December; and in the case of Floating Rate Notes with
a semiannual Interest Payment Period, on the third Wednesday of the two months
specified in the Supplement.  In addition, the Maturity Date will also
be an Interest Payment Date.

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    If any
Interest Payment Date for any Floating Rate Note (other than an Interest Payment
Date occurring on the Maturity Date) would otherwise be a day that is not a
Business Day, such Interest Payment Date shall be postponed to the next day that
is a Business Day, except that in the case of a LIBOR Note, if such Business Day
is in the next succeeding calendar month, such Interest Payment Date shall be
the immediately preceding Business Day.  If the Maturity Date of a
Floating Rate Note falls on a day that is not a Business Day, the payment of
principal and interest will be made on the next succeeding Business Day, and no
interest on such payment shall accrue for the period from and after such
maturity.

     

    Interest payments
on each Interest Payment Date for Floating Rate Notes will include accrued
interest from and including the Issue Date or from and including the last date
in respect of which interest has been paid, as the case may be, to, but
excluding, such Interest Payment Date.  On the Maturity Date, the
interest payable on a Floating Rate Note will include interest accrued to, but
excluding, the Maturity Date.  Accrued interest will be calculated by
multiplying the principal amount of a Floating Rate Note by an accrued interest
factor.  This accrued interest factor will be computed by adding the
interest factors calculated for each day in the period for which accrued
interest is being calculated.  The interest factor (expressed as a
decimal) for each such day will be computed by dividing the interest rate
applicable to such day by 360, in the cases where the Base Rate is the CD Rate,
Commercial Paper Rate, Federal Funds Rate, LIBOR or Prime Rate, or by the actual
number of days in the year, in the case where the Base Rate is the Treasury
Rate.  The interest rate in effect on each day will be (i) if such day
is an Interest Reset Date, the interest rate with respect to the Interest
Determination Date (as defined below) pertaining to such Interest Reset Date, or
(ii) if such day is not an Interest Reset Date, the interest rate with respect
to the Interest Determination Date pertaining to the next preceding Interest
Reset Date, subject in either case to any adjustment by a Spread and/or a Spread
Multiplier.

     

    The “Interest
Determination Date” where the Base Rate is the CD Rate or the Commercial Paper
Rate will be the second Business Day next preceding an Interest Reset
Date.  The Interest Determination Date where the Base Rate is the
Federal Funds Rate or the Prime Rate will be the Business Day next preceding an
Interest Reset Date.  The Interest Determination Date where the Base
Rate is LIBOR will be the second London Business Day next preceding an Interest
Reset Date.  The Interest Determination Date where the Base Rate is
the Treasury Rate will be the day of the week in which such Interest Reset Date
falls when Treasury Bills are normally auctioned.  Treasury Bills are
normally sold at auction on Monday of each week, unless that day is a legal
holiday, in which case the auction is held on the following Tuesday or the
preceding Friday.  If an auction is so held on the preceding Friday,
such Friday will be the Interest Determination Date pertaining to the Interest
Reset Date occurring in the next succeeding week.

     

    The “Index
Maturity” is the period to maturity of the instrument or obligation from which
the applicable Base Rate is calculated.

     

    The “Calculation
Date,” where applicable, shall be the earlier of (i) the tenth calendar day
following the applicable Interest Determination Date or (ii) the Business Day
preceding the applicable Interest Payment Date or Maturity
Date.

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    All times referred
to herein reflect New York City time, unless otherwise
specified.

     

    The Issuer shall
specify in writing to the Issuing and Paying Agent which party will be the
calculation agent (the “Calculation Agent”) with respect to the Floating Rate
Notes.  The Calculation Agent will provide the interest rate then in
effect and, if determined, the interest rate which will become effective on the
next Interest Reset Date with respect to such Floating Rate Note to the Issuing
and Paying Agent as soon as the interest rate with respect to such Floating Rate
Note has been determined and as soon as practicable after any change in such
interest rate.

     

    All percentages
resulting from any calculation on Floating Rate Notes will be rounded to the
nearest one hundred-thousandth of a percentage point, with five-one millionths
of a percentage point rounded upwards.  For example, 9.876545% (or
..09876545) would be rounded to 9.87655% (or .0987655).  All dollar
amounts used in or resulting from any calculation on Floating Rate Notes will be
rounded, in the case of U.S. dollars, to the nearest cent or, in the case of a
foreign currency, to the nearest unit (with one-half cent or unit being rounded
upwards).

     

    CD
Rate Notes

     

    “CD Rate”
means the rate on any Interest Determination Date for negotiable certificates of
deposit having the Index Maturity as published by the Board of Governors of the
Federal Reserve System (the “FRB”) in “Statistical Release H.15(519), Selected
Interest Rates” or any successor publication of the FRB (“H.15(519)”) under the
heading “CDs (Secondary Market)”.

     

    If the
above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date,
the CD Rate will be the rate on such Interest Determination Date set forth in
the daily update of H.15(519), available through the world wide website of the
FRB at http://www.federalreserve.gov/releases/h15/Update, or any successor site
or publication or other recognized electronic source used for the purpose of
displaying the applicable rate (“H.15 Daily Update”) under the caption “CDs
(Secondary Market)”.

     

    If such
rate is not published in either H.15(519) or H.15 Daily Update by 3:00 p.m. on
the Calculation Date, the Calculation Agent will determine the CD Rate to be the
arithmetic mean of the secondary market offered rates as of 10:00 a.m. on such
Interest Determination Date of three leading nonbank dealers1
in negotiable U.S. dollar certificates of deposit in New York City selected by
the Calculation Agent for negotiable U.S. dollar certificates of deposit of
major United States money center banks of the highest credit standing in the
market for negotiable certificates of deposit with a remaining maturity closest
to the Index Maturity in the denomination of $5,000,000.

     

    If the
dealers selected by the Calculation Agent are not quoting as set forth above,
the CD Rate will remain the CD Rate then in effect on such Interest
Determination Date.

    

      

    

    
      1   Such
nonbank dealers referred to in this Statement of Terms may include affiliates of
the Dealer.

    

     

    

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

     

    Commercial
Paper Rate Notes

     

    “Commercial
Paper Rate” means the Money Market Yield (calculated as described below) of the
rate on any Interest Determination Date for commercial paper having the Index
Maturity, as published in H.15(519) under the heading “Commercial
Paper-Nonfinancial”.

     

    If the
above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date,
then the Commercial Paper Rate will be the Money Market Yield of the rate on
such Interest Determination Date for commercial paper of the Index Maturity as
published in H.15 Daily Update under the heading “Commercial
Paper-Nonfinancial”.

     

    If by
3:00 p.m. on such Calculation Date such rate is not published in either
H.15(519) or H.15 Daily Update, then the Calculation Agent will determine the
Commercial Paper Rate to be the Money Market Yield of the arithmetic mean of the
offered rates as of 11:00 a.m. on such Interest Determination Date of three
leading dealers of U.S. dollar commercial paper in New York City selected by the
Calculation Agent for commercial paper of the Index Maturity placed for an
industrial issuer whose bond rating is “AA,” or the equivalent, from a
nationally recognized statistical rating organization.

     

    If the
dealers selected by the Calculation Agent are not quoting as mentioned above,
the Commercial Paper Rate with respect to such Interest Determination Date will
remain the Commercial Paper Rate then in effect on such Interest Determination
Date.

     

    “Money
Market Yield” will be a yield calculated in accordance with the following
formula:

     

    D x
360

    Money
Market Yield
=                                    
     x 100

    360 - (D x
M)

     

    where “D”
refers to the applicable per annum rate for commercial paper quoted on a bank
discount basis and expressed as a decimal and “M” refers to the actual number of
days in the interest period for which interest is being calculated.

     

    Federal
Funds Rate Notes

     

    “Federal
Funds Rate” means the rate on any Interest Determination Date for federal funds
as published in H.15(519) under the heading “Federal Funds (Effective)” and
displayed on Moneyline Telerate (or any successor service) on page 120 (or any
other page as may replace the specified page on that service) (“Telerate Page
120”).

     

    If the
above rate does not appear on Telerate Page 120 or is not so published by 3:00
p.m. on the Calculation Date, the Federal Funds Rate will be the rate on such
Interest Determination Date as published in H.15 Daily Update under the heading
“Federal Funds/(Effective)”.

     

    If such
rate is not published as described above by 3:00 p.m. on the Calculation Date,
the Calculation Agent will determine the Federal Funds Rate to be the arithmetic
mean of the 

     

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    rates for
the last transaction in overnight U.S. dollar federal funds arranged by each of
three leading brokers of Federal Funds transactions in New York City selected by
the Calculation Agent prior to 9:00 a.m. on such Interest Determination
Date.

     

    If the
brokers selected by the Calculation Agent are not quoting as mentioned above,
the Federal Funds Rate will remain the Federal Funds Rate then in effect on such
Interest Determination Date.

     

    LIBOR
Notes

     

    The
London Interbank offered rate (“LIBOR”) means, with respect to any Interest
Determination Date, the rate for deposits in U.S. dollars having the Index
Maturity that appears on the Designated LIBOR Page as of 11:00 a.m., London
time, on such Interest Determination Date.

     

    If no
rate appears, LIBOR will be determined on the basis of the rates at
approximately 11:00 a.m., London time, on such Interest Determination Date at
which deposits in U.S. dollars are offered to prime banks in the London
interbank market by four major banks in such market selected by the Calculation
Agent for a term equal to the Index Maturity and in principal amount equal to an
amount that in the Calculation Agent’s judgment is representative for a single
transaction in U.S. dollars in such market at such time (a “Representative
Amount”).  The Calculation Agent will request the principal London
office of each of such banks to provide a quotation of its rate.  If
at least two such quotations are provided, LIBOR will be the arithmetic mean of
such quotations.  If fewer than two quotations are provided, LIBOR for
such interest period will be the arithmetic mean of the rates quoted at
approximately 11:00 a.m., in New York City, on such Interest Determination Date
by three major banks in New York City, selected by the Calculation Agent, for
loans in U.S. dollars to leading European banks, for a term equal to the Index
Maturity and in a Representative Amount; provided, however, that if fewer than
three banks so selected by the Calculation Agent are providing such quotations,
the then existing LIBOR rate will remain in effect for such Interest Payment
Period.

     

    “Designated
LIBOR Page” means the display designated as Reuters Screen “LIBOR01” (or such
other page as may replace such page on Reuters Monitor Money Rate Service or
such other service or services as may be nominated by the British Bankers’
Association for the purposes of displaying London interbank offered rates for
U.S. dollar deposits).

     

    Prime
Rate Notes

     

    “Prime
Rate” means the rate on any Interest Determination Date as published in
H.15(519) under the heading “Bank Prime Loan”.

     

    If the
above rate is not published in H.15(519) prior to 3:00 p.m. on the Calculation
Date, then the Prime Rate will be the rate on such Interest Determination Date
as published in H.15 Daily Update opposite the caption “Bank Prime
Loan”.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    If the
rate is not published prior to 3:00 p.m. on the Calculation Date in either
H.15(519) or H.15 Daily Update, then the Calculation Agent will determine the
Prime Rate to be the arithmetic mean of the rates of interest publicly announced
by each bank that appears on the Reuters Screen US PRIME1 Page (as defined
below) as such bank’s prime rate or base lending rate as of 11:00 a.m., on that
Interest Determination Date.

     

    If fewer
than four such rates referred to above are so published by 3:00 p.m. on the
Calculation Date, the Calculation Agent will determine the Prime Rate to be the
arithmetic mean of the prime rates or base lending rates quoted on the basis of
the actual number of days in the year divided by 360 as of the close of business
on such Interest Determination Date by three major banks in New York City
selected by the Calculation Agent.

     

    If the
banks selected are not quoting as mentioned above, the Prime Rate will remain
the Prime Rate in effect on such Interest Determination Date.

     

    “Reuters
Screen US PRIME1 Page” means the display designated as page “US PRIME1” on the
Reuters Monitor Money Rates Service (or such other page as may replace the US
PRIME1 page on that service for the purpose of displaying prime rates or base
lending rates of major United States banks).

     

    Treasury
Rate Notes

     

    “Treasury
Rate” means:

     

    (1) the
rate from the auction held on the Interest Determination Date (the “Auction”) of
direct obligations of the United States (“Treasury Bills”) having the Index
Maturity specified in the Supplement under the caption “INVESTMENT RATE” on the
display on Moneyline Telerate (or any successor service) on page 56 (or any
other page as may replace that page on that service) (“Telerate Page 56”) or
page 57 (or any other page as may replace that page on that service) (“Telerate
Page 57”), or

     

    (2) if
the rate referred to in clause (1) is not so published by 3:00 p.m. on the
related Calculation Date, the Bond Equivalent Yield (as defined below) of the
rate for the applicable Treasury Bills as published in H.15 Daily Update, under
the caption “U.S. Government Securities/Treasury Bills/Auction High”,
or

     

    (3) if
the rate referred to in clause (2) is not so published by 3:00 p.m. on the
related Calculation Date, the Bond Equivalent Yield of the auction rate of the
applicable Treasury Bills as announced by the United States Department of the
Treasury, or

     

    (4) if
the rate referred to in clause (3) is not so announced by the United States
Department of the Treasury, or if the  Auction is not held, the Bond
Equivalent Yield of the rate on the particular Interest Determination Date of
the applicable Treasury Bills as published in H.15(519) under the caption “U.S.
Government Securities/Treasury Bills/Secondary Market”, or

    
       

       

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    (5) if
the rate referred to in clause (4) not so published by 3:00 p.m. on the related
Calculation Date, the rate on the particular Interest Determination Date of the
applicable Treasury Bills as published in H.15 Daily Update, under the caption
“U.S. Government Securities/Treasury Bills/Secondary Market”, or

     

    (6) if
the rate referred to in clause (5) is not so published by 3:00 p.m. on the
related Calculation Date, the rate on the particular Interest Determination Date
calculated by the Calculation Agent as the Bond Equivalent Yield of the
arithmetic mean of the secondary market bid rates, as of approximately 3:30 p.m.
on that Interest Determination Date, of three primary United States government
securities dealers selected by the Calculation Agent, for the issue of Treasury
Bills with a remaining maturity closest to the Index Maturity specified in the
Supplement, or

     

    (7) if
the dealers so selected by the Calculation Agent are not quoting as mentioned in
clause (6), the Treasury Rate in effect on the particular Interest Determination
Date.

     

    “Bond
Equivalent Yield” means a yield (expressed as a percentage) calculated in
accordance with the following formula:

     

      D x
N

    Bond
Equivalent Yield
=                                           x
100

    360 - (D x
M)

     

    where “D”
refers to the applicable per annum rate for Treasury Bills quoted on a bank
discount basis and expressed as a decimal, “N” refers to 365 or 366, as the case
may be, and “M” refers to the actual number of days in the applicable Interest
Reset Period.

     

    
      	
              3. 
      

            	
              Final
      Maturity.  The Stated Maturity Date for any Note will be
      the date so specified in the Supplement, which shall be no later than 397
      days from the date of issuance.  On its Stated Maturity Date, or
      any date prior to the Stated Maturity Date on which the particular Note
      becomes due and payable by the declaration of acceleration, each such date
      being referred to as a Maturity Date, the principal amount of each Note,
      together with accrued and unpaid interest thereon, will be immediately due
      and
payable.

            

    

     

    
      	
              4. 
      

            	
              Events
      of Default.  The occurrence of any of the following shall
      constitute an “Event of Default” with respect to a Note:  (i)
      default in any payment of principal of or interest on such Note (including
      on a redemption thereof); (ii) the Issuer makes any compromise arrangement
      with its creditors generally including the entering into any form of
      moratorium with its creditors generally; (iii) a court having jurisdiction
      shall enter a decree or order for relief in respect of the Issuer in an
      involuntary case under any applicable bankruptcy, insolvency or other
      similar law now or hereafter in effect, or there shall be appointed a
      receiver, administrator, liquidator, custodian, trustee or sequestrator
      (or similar officer) with respect to the whole or substantially the whole
      of the assets of the Issuer and any such decree, order or appointment is
      not removed, discharged or withdrawn within 60 days thereafter; or (iv)
      the Issuer shall commence a voluntary case under any applicable
      bankruptcy, insolvency or other similar law now or hereafter in effect, or
      consent to the entry of an order for relief in an
      

            

    

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
      	 	
              involuntary case
      under any such law, or consent to the appointment of or taking possession
      by a receiver, administrator, liquidator, assignee, custodian, trustee or
      sequestrator (or similar official), with respect to the whole or
      substantially the whole of the assets of the Issuer or make any general
      assignment for the benefit of creditors.  Upon the occurrence of
      an Event of Default, the principal of each obligation evidenced by such
      Note (together with interest accrued and unpaid thereon) shall become,
      without any notice or demand, immediately due and payable. 2

            

    

     

    
      	
              5. 
      

            	
              Obligation
      Absolute.  No provision of the Issuing and Paying Agency
      Agreement under which the Notes are issued shall alter or impair the
      obligation of the Issuer, which is absolute and unconditional, to pay the
      principal of and interest on each Note at the times, place and rate, and
      in the coin or currency, herein
      prescribed.

            

    

     

    
      	
              6. 
      

            	
              Supplement.  Any
      term contained in the Supplement shall supersede any conflicting term
      contained
herein.

            

    

     

    

      

    

      
      
        	
                 
      

              	
                2 
      Unlike single payment notes, where a default arises only at the stated
      maturity, interest-bearing notes with multiple payment dates should
      contain a default provision permitting acceleration of the maturity if the
      Issuer defaults on an interest
      payment.

              

      

    

     

     

     

    
28ex10-2.htm

     

    Exhibit
10.2

      
        	
                
                   

                   

                

              

      

       

       

        
          

        

      

      

       

      Between:

       

       

      CIGNA CORPORATION, as
Issuer

       

       

      and

       

       

      J.P. MORGAN SECURITIES INC.,
as Dealer

       

       

      Concerning
Notes to be issued pursuant to an

       

       

      Issuing
and Paying Agency Agreement dated as of March 14, 2008

       

       

      between
the Issuer and

       

       

      JPMorgan
Chase Bank, as Issuing

       

       

      and
Paying Agent

       

       

      Dated as
of

       

       

      March 14,
2008

       

       

       

       

       

      

       

      
        
           

            	
                  

          

        

        
          1

          
            

          

        

        
           

        

      

       

      This
agreement (the “Agreement”) sets forth the understandings between the Issuer and
the Dealer, each named on the cover page hereof, in connection with the issuance
and sale by the Issuer of its short-term promissory notes (the “Notes”) through
the Dealer.

       

       

      Certain
terms used in this Agreement are defined in Section 6 hereof.

       

       

      The
Addendum to this Agreement, and any Annexes or Exhibits described in this
Agreement or such Addendum, are hereby incorporated into this Agreement and made
fully a part hereof.

       

      
        	
                1.

              	
                Offers,
      Sales and Resales of Notes.

              

      

      

      
        	
                 
      

              	
                1.1

              	
                While
      (i) the Issuer has and shall have no obligation to sell the Notes to the
      Dealer or to permit the Dealer to arrange any sale of the Notes for the
      account of the Issuer, and (ii) the Dealer has and shall have no
      obligation to purchase the Notes from the Issuer or to arrange any sale of
      the Notes for the account of the Issuer, the parties hereto agree that in
      any case where the Dealer purchases Notes from the Issuer, or arranges for
      the sale of Notes by the Issuer, such Notes will be purchased or sold by
      the Dealer in reliance on the representations, warranties, covenants and
      agreements of the Issuer contained herein or made pursuant hereto and on
      the terms and conditions and in the manner provided
  herein.

              

      

      

      
        	
                 
      

              	
                1.2

              	
                So
      long as this Agreement shall remain in effect, and in addition to the
      limitations contained in Section 1.7 hereof, the Issuer shall not, without
      the consent of the Dealer, offer, solicit or accept offers to purchase, or
      sell, any Notes except (a) in transactions with one or more dealers which
      may from time to time after the date hereof become dealers with respect to
      the Notes by executing with the Issuer one or more agreements which
      contain provisions substantially identical to those contained in Section 1
      of this Agreement, of which the Issuer hereby undertakes to provide the
      Dealer prompt notice or (b) in transactions with the other dealers listed
      on the Addendum hereto, which are executing agreements with the Issuer
      which contain provisions substantially identical to Section 1 of this
      Agreement contemporaneously herewith.  So long as this Agreement
      is in effect, in no event shall the Issuer offer, solicit or accept offers
      to purchase, or sell, any Notes directly on its own behalf in transactions
      with persons other than broker-dealers as specifically permitted in this
      Section 1.2.

              

      

       

      
        	
                 
      

              	
                1.3

              	
                The
      Notes shall be in a minimum denomination of $250,000 or integral multiples
      of $1,000 in excess thereof, will bear such interest rates, if interest
      bearing, or will be sold at such discount from their face amounts, as
      shall be agreed upon by the Dealer and the Issuer, shall have a maturity
      not exceeding 397 days from the date of issuance and may have such terms
      as are specified in Exhibit C hereto or the Private Placement
      Memorandum.   The Notes shall not contain any provision for
      extension, renewal or automatic
“rollover.”

              

      

       

       

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                1.4

              	
                The
      authentication and issuance of, and payment for, the Notes shall be
      effected in accordance with the Issuing and Paying Agency Agreement, and
      the Notes shall be either individual physical certificates or book-entry
      notes evidenced by one or more master notes (each, a “Master Note”)
      registered in the name of The Depository Trust Company (“DTC”) or its
      nominee, in the form or forms annexed to the Issuing and Paying Agency
      Agreement.

              

      

       

      
        	
                 
      

              	
                1.5

              	
                If
      the Issuer and the Dealer shall agree on the terms of the purchase of any
      Note by the Dealer or the sale of any Note arranged by the Dealer
      (including, but not limited to, agreement with respect to the date of
      issue, purchase price, principal amount, maturity and interest rate or
      interest rate index and margin (in the case of interest-bearing Notes) or
      discount thereof (in the case of Notes issued on a discount basis), and
      appropriate compensation for the Dealer’s services hereunder) pursuant to
      this Agreement, the Issuer shall cause such Note to be issued and
      delivered in accordance with the terms of the Issuing and Paying Agency
      Agreement and payment for such Note shall be made by the purchaser
      thereof, either directly or through the Dealer, to the Issuing and Paying
      Agent, for the account of the Issuer.  Except as otherwise
      agreed, in the event that the Dealer is acting as an agent and a purchaser
      shall either fail to accept delivery of or make payment for a Note on the
      date fixed for settlement, the Dealer shall promptly notify the Issuer,
      and if the Dealer has theretofore paid the Issuer for the Note, the Issuer
      will promptly return such funds to the Dealer against its return of the
      Note to the Issuer, in the case of a certificated Note, and upon notice of
      such failure in the case of a book-entry Note.  If such failure
      occurred for any reason other than default by the Dealer, the Issuer shall
      reimburse the Dealer on an equitable basis for the Dealer’s loss of the
      use of such funds for the period such funds were credited to the Issuer’s
      account.

              

      

       

      
        	
                 
      

              	
                1.6

              	
                The
      Dealer and the Issuer hereby establish and agree to observe the following
      procedures in connection with offers, sales and subsequent resales or
      other transfers of the Notes:

              

      

       

       

      
        	
                 
      

              	
                (a)

              	
                Offers
      and sales of the Notes by or through the Dealer shall be made only to: (i)
      investors reasonably believed by the Dealer to be Qualified Institutional
      Buyers, Institutional Accredited Investors or Sophisticated Individual
      Accredited Investors and (ii) non-bank fiduciaries or agents that will be
      purchasing Notes for one or more accounts, each of which is reasonably
      believed by the Dealer to be an Institutional Accredited Investor or
      Sophisticated Individual Accredited
Investor.

              

      

       

       

      
        	
                 
      

              	
                (b)

              	
                Resales
      and other transfers of the Notes by the holders thereof shall be made only
      in accordance with the restrictions in the legend described in clause (e)
      below.

              

      

       

       

      
           
(c)                   No
general solicitation or general advertising shall be used in connection with the
offering of the Notes.  Without limiting the generality of the
foregoing, without the prior written approval of the Dealer, the Issuer shall

         

         

         

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        not issue
any press release or place or publish any “tombstone” or other advertisement
relating to the Notes.

      

       

       

      
        	
                 
      

              	
                (d)

              	
                No
      sale of Notes to any one purchaser shall be for less than $250,000
      principal or face amount, and no Note shall be issued in a smaller
      principal or face amount.  If the purchaser is a non-bank
      fiduciary acting on behalf of others, each person for whom such purchaser
      is acting must purchase at least $250,000 principal or face amount of
      Notes.

              

      

       

       

      
        	
                 
      

              	
                (e)

              	
                Offers
      and sales of the Notes by the Issuer through the Dealer acting as agent
      for the Issuer shall be made in accordance with Rule 506 under the
      Securities Act, and shall be subject to the restrictions described in the
      legend appearing on Exhibit A hereto.  A legend substantially to
      the effect of such Exhibit A shall appear as part of the Private Placement
      Memorandum used in connection with offers and sales of Notes hereunder, as
      well as on each individual certificate representing a Note and each Master
      Note representing book-entry Notes offered and sold pursuant to this
      Agreement.

              

      

       

       

      
        	
                 
      

              	
                (f)

              	
                The
      Dealer shall furnish or shall have furnished to each purchaser of Notes
      for which it has acted as the Dealer a copy of the then-current Private
      Placement Memorandum unless such purchaser has previously received a copy
      of the Private Placement Memorandum as then in effect.  The
      Private Placement Memorandum shall expressly state that any person to whom
      Notes are offered shall have an opportunity to ask questions of, and
      receive publicly available information from, the Issuer and the Dealer and
      shall provide the names, addresses and telephone numbers of the persons
      from whom information regarding the Issuer may be
  obtained.

              

      

       

       

      
        	
                 
      

              	
                (g)

              	
                The
      Issuer agrees, for the benefit of the Dealer and each of the holders and
      prospective purchasers from time to time of the Notes that, if at any time
      the Issuer shall not be subject to Section 13 or 15(d) of the Exchange
      Act, the Issuer will furnish, upon request and at its expense, to the
      Dealer and to holders and prospective purchasers of Notes information
      required by Rule 144A(d)(4)(i) in compliance with Rule
      144A(d).

              

      

       

       

      
        	
                 
      

              	
                (h)

              	
                In
      the event that any Note offered or to be offered by the Dealer would be
      ineligible for resale under Rule 144A(d)(3), the Issuer shall immediately
      notify the Dealer (by telephone, confirmed in writing) of such fact and
      shall promptly prepare and deliver to the Dealer an amendment or
      supplement to the Private Placement Memorandum describing the Notes that
      are ineligible, the reason for such ineligibility and any other relevant
      information relating thereto.

              

      

       

       

      
         (i)                   The
Issuer represents that it is not currently issuing commercial paper in the
United States market in reliance upon the exemption provided by Section 3(a)(3)
of the Securities Act.  The Issuer agrees that, if it shall issue

         

         

         

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        commercial
paper after the date hereof in reliance upon such exemption (a) the proceeds
from the sale of the Notes will be segregated from the proceeds of the sale of
any such commercial paper by being placed in a separate account; (b) the Issuer
will institute appropriate corporate procedures to ensure that the offers and
sales of notes issued by the Issuer pursuant to the Section 3(a)(3) exemption
are not integrated with offerings and sales of Notes hereunder; and (c) the
Issuer will comply with each of the requirements of Section 3(a)(3) of the
Securities Act in selling commercial paper or other short-term debt securities
other than the Notes in the United States.

      

       

       

      
        	
                 
      

              	
                1.7

              	
                The
      Issuer hereby represents and warrants to the Dealer, in connection with
      offers, sales and resales of Notes, as
follows:

              

      

       

       

      
        	
                 
      

              	
                (a)

              	
                The
      Issuer hereby confirms to the Dealer that (except as permitted by Section
      1.6(i)) within the preceding six months neither the Issuer nor any person
      other than the Dealer or the other dealers referred to in Section 1.2
      hereof acting on behalf of the Issuer has offered or sold any Notes, or
      any substantially similar security of the Issuer (including, without
      limitation, medium-term notes issued by the Issuer), to, or solicited
      offers to buy any such security from, any person other than the Dealer or
      the other dealers referred to in Section 1.2 hereof.  The Issuer
      also agrees that (except as permitted by Section 1.6(i)), as long as the
      Notes are being offered for sale by the Dealer and the other dealers
      referred to in Section 1.2 hereof as contemplated hereby and until at
      least six months after the offer of Notes hereunder has been terminated,
      neither the Issuer nor any person other than the Dealer or the other
      dealers referred to in Section 1.2 hereof (except as contemplated by
      Section 1.2 hereof) will offer the Notes or any substantially similar
      security of the Issuer for sale to, or solicit offers to buy any such
      security from, any person other than the Dealer or the other dealers
      referred to in Section 1.2 hereof, it being understood that such agreement
      is made with a view to bringing the offer and sale of the Notes within the
      exemption provided by Section 4(2) of the Securities Act and Rule 506
      thereunder and shall survive any termination of this
      Agreement.  The Issuer hereby represents and warrants that it
      has not taken or omitted to take, and will not take or omit to take, any
      action that would cause the offering and sale of Notes hereunder to be
      integrated with any other offering of securities, whether such offering is
      made by the Issuer or some other party or
  parties.

              

      

       

       

      
         
(b)                The
Issuer represents and agrees that the proceeds of the sale of the Notes are not
currently contemplated to be used for the purpose of buying, carrying or trading
securities within the meaning of Regulation T and the interpretations thereunder
by the Board of Governors of the Federal Reserve System. In the event that the
Issuer determines to use such proceeds for the purpose of buying, carrying or
trading securities, whether in connection with an acquisition of another company
or otherwise, the Issuer shall give the 

         

         

         

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        Dealer at
least five business days’ prior written notice to that effect; provided,
however, that no such notice shall be required of the Issuer for purchases of
Securities issued by the Issuer and purchased for immediate
retirement.  The Issuer shall also give the Dealer prompt notice of
the actual date that it commences to purchase securities with the proceeds of
the Notes.  Thereafter, in the event that the Dealer purchases Notes
as principal and does not resell such Notes on the day of such purchase, to the
extent necessary to comply with Regulation T and the interpretations thereunder,
the Dealer will sell such Notes either (i) only to offerees it reasonably
believes to be Qualified Institutional Buyers or to Qualified Institutional
Buyers it reasonably believes are acting for other Qualified Institutional
Buyers, in each case in accordance with Rule 144A or (ii) in a manner which
would not cause a violation of Regulation T and the interpretations
thereunder.

      

       

      
        	
                2.

              	
                Representations
      and Warranties of Issuer.

              

      

      

      The
Issuer represents and warrants that:

       

      
        	
                2.1

              	
                The
      Issuer is a corporation duly organized, validly existing and in good
      standing under the laws of the jurisdiction of its incorporation and has
      all the requisite power and authority to execute, deliver and perform its
      obligations under the Notes, this Agreement and the Issuing and Paying
      Agency Agreement.

              

      

       

       

      
        	
                2.2

              	
                This
      Agreement and the Issuing and Paying Agency Agreement have been duly
      authorized, executed and delivered by the Issuer and constitute legal,
      valid and binding obligations of the Issuer enforceable against the Issuer
      in accordance with their terms, subject to applicable bankruptcy,
      insolvency and similar laws affecting creditors’ rights generally, and
      subject, as to enforceability, to general principles of equity (regardless
      of whether enforcement is sought in a proceeding in equity or at
      law).

              

      

       

       

      
        	
                2.3

              	
                The
      Notes have been duly authorized, and when issued as provided in the
      Issuing and Paying Agency Agreement, will be duly and validly issued and
      will constitute legal, valid and binding obligations of the Issuer
      enforceable against the Issuer in accordance with their terms, subject to
      applicable bankruptcy, insolvency and similar laws affecting creditors’
      rights generally, and subject, as to enforceability, to general principles
      of equity (regardless of whether enforcement is sought in a proceeding in
      equity or at law).

              

      

       

       

      
        	
                2.4

              	
                The
      offer and sale of the Notes in the manner contemplated hereby do not
      require registration of the Notes under the Securities Act, pursuant to
      the exemption from registration contained in Section 4(2) thereof, and no
      indenture in respect of the Notes is required to be qualified under the
      Trust Indenture Act of 1939, as
amended.

              

      

       

       

      
        	
                2.5

              	
                The
      Notes will rank at least pari passu with all other unsecured and
      unsubordinated indebtedness of the
Issuer.

              

      

       

       

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	
                2.6

              	
                Except
      as provided in Section 1.6(j) hereof, no consent or action of, or filing
      or registration with, any governmental or public regulatory body or
      authority, including the SEC, is required to authorize, or is otherwise
      required in connection with the execution, delivery or performance of,
      this Agreement, the Notes or the Issuing and Paying Agency Agreement,
      except as may be required by the securities or Blue Sky laws of the
      various states in connection with the offer and sale of the
      Notes.

              

      

       

       

      
        	
                2.7

              	
                Neither
      the execution and delivery of this Agreement and the Issuing and Paying
      Agency Agreement, nor the issuance of the Notes in accordance with the
      Issuing and Paying Agency Agreement, nor the fulfillment of or compliance
      with the terms and provisions hereof or thereof by the Issuer, will (i)
      result in the creation or imposition of any mortgage, lien, charge or
      encumbrance of any nature whatsoever upon any of the properties or assets
      of the Issuer, or (ii) violate or result in a breach or a default under
      any of the terms of the Issuer’s charter documents or by-laws, any
      contract or instrument to which the Issuer is a party or by which it or
      its property is bound, or any law or regulation, or any order, writ,
      injunction or decree of any court or government instrumentality, to which
      the Issuer is subject or by which it or its property is bound, which
      breach or default might have a material adverse effect on the condition
      (financial or otherwise), operations or business prospects of the Issuer
      or the ability of the Issuer to perform its obligations under this
      Agreement, the Notes or the Issuing and Paying Agency
      Agreement.

              

      

       

       

      
        	
                2.8

              	
                Except
      as otherwise disclosed by the Issuer in the Company Information (as
      defined below), there is no litigation or governmental proceeding pending,
      or to the knowledge of the Issuer threatened, against or affecting the
      Issuer or any of its subsidiaries which might reasonably be expected to
      result in a material adverse change in the condition (financial or
      otherwise), operations or business prospects of the Issuer or the ability
      of the Issuer to perform its obligations under this Agreement, the Notes
      or the Issuing and Paying Agency
Agreement.

              

      

       

       

      
        	
                2.9

              	
                The
      Issuer is not an “investment company” within the meaning of the Investment
      Company Act of 1940, as amended.

              

      

       

       

      2.10                
Neither
the Private Placement Memorandum nor the Company Information contains any untrue
statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

       

      2.11                
Each (a)
issuance of Notes by the Issuer hereunder and (b) amendment or supplement of the
Private Placement Memorandum shall be deemed a representation and warranty by
the Issuer to the Dealer, as of the date thereof, that, both before and after
giving effect to such issuance and after giving effect to such amendment or
supplement, (i) the representations and warranties given by the Issuer set forth
in this Section 2 remain true and correct on and as of such date as if made on
and as of such date, (ii) in the case of an issuance of Notes, the Notes being
issued on such date have been duly and validly issued and constitute legal,
valid and binding obligations of the 

      
         

         

         

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        Issuer,
enforceable against the Issuer in accordance with their terms, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors’ rights
generally and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law) and (iii) in the case of an issuance of Notes, since the date of the most
recent Private Placement Memorandum, there has been no change in the condition
(financial or otherwise), operations or business prospects of the Issuer that
would be materially adverse to the holders of the Notes or potential holders of
the Notes which has not been disclosed to the Dealer in
writing.

      

       

      
        	
                3.

              	
                Covenants
      and Agreements of Issuer.

              

      

      

      The Issuer covenants and agrees
that:

       

      
        	
                3.1

              	
                The
      Issuer will give the Dealer prompt notice (but in any event prior to any
      subsequent issuance of Notes hereunder) of any amendment to, modification
      of or waiver with respect to, the Notes or the Issuing and Paying Agency
      Agreement, including a complete copy of any such amendment, modification
      or waiver.

              

      

       

       

      
        	
                3.2

              	
                The
      Issuer shall, whenever there shall occur any change in the Issuer’s
      condition (financial or otherwise), operations or business prospects or
      any development or occurrence in relation to the Issuer that would be
      materially adverse to holders of the Notes or potential holders of the
      Notes (including any downgrading or receipt of any notice of intended or
      potential downgrading or any review for potential change in the rating
      accorded any of the Issuer’s securities by any nationally recognized
      statistical rating organization which has published a rating of the
      Notes), promptly, and in any event prior to any subsequent issuance of
      Notes hereunder, notify the Dealer (by telephone, confirmed in writing) of
      such materially adverse change, development or
  occurrence.

              

      

       

       

      
        	
                3.3

              	
                To
      the extent permitted by applicable law, the Issuer shall from time to time
      furnish to the Dealer such information as the Dealer may reasonably
      request, including, without limitation, any press releases or material
      provided by the Issuer to any national securities exchange or rating
      agency, regarding (i) the Issuer’s operations and financial condition,
      (ii) the due authorization and execution of the Notes and (iii) the
      Issuer’s ability to pay the Notes as they
  mature.

              

      

       

       

      
        	
                3.4

              	
                The
      Issuer will take all such action as the Dealer may reasonably request to
      ensure that each offer and each sale of the Notes will comply with any
      applicable state Blue Sky laws; provided, however, that the Issuer shall
      not be obligated to file any general consent to service of process or to
      qualify as a foreign corporation in any jurisdiction in which it is not so
      qualified or subject itself to taxation in respect of doing business in
      any jurisdiction in which it is not otherwise so
  subject.

              

      

       

       

      
        	
                3.5

              	
                The
      Issuer will not be in default of any of its obligations hereunder, under
      the Notes or under the Issuing and Paying Agency Agreement, at any time
      that any of the Notes are
outstanding.

              

      

       

       

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	
                3.6

              	
                The
      Issuer shall not issue or sell Notes hereunder until the Dealer shall have
      received (a) an opinion of counsel to the Issuer, addressed to the Dealer,
      satisfactory in form and substance to the Dealer, (b) a copy of the
      executed Issuing and Paying Agency Agreement as then in effect, (c) a copy
      of resolutions adopted by the Board of Directors of the Issuer,
      satisfactory in form and substance to the Dealer and certified by the
      Secretary or similar officer of the Issuer, authorizing execution and
      delivery by the Issuer of this Agreement, the Issuing and Paying Agency
      Agreement and the Notes and consummation by the Issuer of the transactions
      contemplated hereby and thereby, (d) prior to the issuance of any
      book-entry Notes represented by a master note registered in the name of
      DTC or its nominee, a copy of the executed Letter of Representations among
      the Issuer, the Issuing and Paying Agent and DTC and of the executed
      master note, (e) prior to the issuance of any Notes in physical form, a
      copy of such form (unless attached to this Agreement or the Issuing and
      Paying Agency Agreement) and (f) such other certificates, opinions,
      letters and documents as the Dealer shall have reasonably
      requested.

              

      

       

       

      
        	
                3.7

              	
                The
      Issuer shall reimburse the Dealer for all of the Dealer’s reasonable
      out-of-pocket expenses related to this Agreement, including expenses
      incurred in connection with its preparation and negotiation, and the
      transactions contemplated hereby (including, but not limited to, the
      printing and distribution of the Private Placement Memorandum), and, if
      applicable, for the reasonable fees and out-of-pocket expenses of the
      Dealer’s counsel.

              

      

       

      
        	
                4.

              	
                Disclosure.

              

      

      

      
        	
                 
      

              	
                4.1

              	
                The
      Private Placement Memorandum and its contents (other than the Dealer
      Information) shall be the sole responsibility of the
      Issuer.  The Private Placement Memorandum shall contain a
      statement expressly offering an opportunity for each prospective purchaser
      to ask questions of, and receive answers from, the Issuer concerning the
      offering of Notes and to obtain relevant additional publicly available
      information which the Issuer possesses or can acquire without unreasonable
      effort or expense.  Notwithstanding the foregoing, nothing in
      this Agreement or the Private Placement Memorandum shall obligate the
      Issuer to provide information to investors which has not been previously
      made available to the public, or to the Dealer, other than in accordance
      with Section 3.3.

              

      

       

       

      
        	
                 
      

              	
                4.2

              	
                The
      Issuer agrees to promptly furnish the Dealer with any material public
      Company Information as it becomes
available.

              

      

       

       

      
        	
                 
      

              	
                4.3

              	
                (a)

              	
                The
      Issuer further agrees to notify the Dealer promptly upon the occurrence of
      any event relating to or affecting the Issuer that would cause the Company
      Information then in existence to include an untrue statement of a material
      fact or to omit to state a material fact necessary in order to make the
      statements contained therein, in light of the circumstances under which
      they are made, not misleading.

              

      

       

       

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (b)

              	
                In
      the event that the Issuer gives the Dealer notice pursuant to Section
      4.3(a) and the Dealer notifies the Issuer that it then has Notes it is
      holding in inventory, the Issuer agrees promptly to supplement or amend
      the Private Placement Memorandum so that the Private Placement Memorandum,
      as amended or supplemented, shall not contain an untrue statement of a
      material fact or omit to state a material fact necessary in order to make
      the statements therein, in light of the circumstances under which they
      were made, not misleading, and the Issuer shall make such supplement or
      amendment available to the Dealer.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                In
      the event that (i) the Issuer gives the Dealer notice pursuant to Section
      4.3(a), (ii) the Dealer does not notify the Issuer that it is then
      holding Notes in inventory and (iii) the Issuer chooses not to
      promptly amend or supplement the Private Placement Memorandum in the
      manner described in clause (b) above, then all solicitations and sales of
      Notes shall be suspended until such time as the Issuer has so amended or
      supplemented the Private Placement Memorandum, and made such amendment or
      supplement available to the Dealer.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Without
      limiting the generality of Section 4.3(a), the Issuer shall review, amend
      and supplement the Private Placement Memorandum on a periodic basis, but
      no less than at least once annually, to incorporate current financial
      information of the Issuer to the extent necessary to ensure that the
      information provided in the Private Placement Memorandum is accurate and
      complete.

              

      

       

      
        	
                5.

              	
                Indemnification
      and Contribution.

              

      

      

      
        	
                5.1

              	
                The
      Issuer will indemnify and hold harmless the Dealer, each individual,
      corporation, partnership, trust, association or other entity controlling
      the Dealer, any affiliate of the Dealer or any such controlling entity and
      their respective directors, officers, employees, partners, incorporators,
      shareholders, servants, trustees and agents (hereinafter the
      “Indemnitees”) against any and all liabilities, penalties, suits, causes
      of action, losses, damages, claims, costs and expenses (including, without
      limitation, reasonable fees and disbursements of counsel) or judgments of
      whatever kind or nature (each a “Claim”), imposed upon, incurred by or
      asserted against the Indemnitees arising out of or based upon (i) any
      allegation that the Private Placement Memorandum, the Company Information
      or any information provided by the Issuer to the Dealer included (as of
      any relevant time) or includes an untrue statement of a material fact or
      omitted (as of any relevant time) or omits to state any material fact
      necessary to make the statements therein, in light of the circumstances
      under which they were made, not misleading or (ii) arising out of or based
      upon the breach by the Issuer of any agreement, covenant or representation
      made in or pursuant to this Agreement.  The Issuer and the
      Dealer agree that the Issuer shall have no liability under this Section
      for any Claim arising out of or based on Dealer
    Information.

              

      

       

       

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	
                5.2

              	
                Provisions
      relating to claims made for indemnification under this Section 5 are set
      forth on Exhibit B to this
Agreement.

              

      

       

       

      
        	
                5.3

              	
                In
      order to provide for just and equitable contribution in circumstances in
      which the indemnification provided for in this Section 5 is held to be
      unavailable or insufficient to hold harmless the Indemnitees, although
      applicable in accordance with the terms of this Section 5, the Issuer
      shall contribute to the aggregate costs incurred by the Dealer in
      connection with any Claim in the proportion of the respective economic
      interests of the Issuer and the Dealer; provided, however, that such
      contribution by the Issuer shall be in an amount such that the aggregate
      costs incurred by the Dealer do not exceed the aggregate of the
      commissions and fees earned by the Dealer hereunder with respect to the
      issue or issues of Notes to which such Claim relates. The respective
      economic interests shall be calculated by reference to the aggregate
      proceeds to the Issuer of the Notes issued hereunder and the aggregate
      commissions and fees earned by the Dealer
  hereunder.

              

      

       

      
        	
                6.

              	
                Definitions.

              

      

      

      
        	
                6.1

              	
                “Claim”
      shall have the meaning set forth in Section
5.1.

              

      

       

      
        	
                6.2

              	
                “Company
      Information” at any given time shall mean the Private Placement Memorandum
      together with, to the extent applicable, (i) the Issuer’s most recent
      report on Form 10-K filed with the SEC and each report on Form 10-Q or 8-K
      filed by the Issuer with the SEC since the most recent Form 10-K, (ii) the
      Issuer’s most recent annual audited financial statements and each interim
      financial statement or report prepared subsequent thereto, if not included
      in item (i) above, (iii) the Issuer’s and its affiliates’ other publicly
      available recent reports, including, but not limited to, any publicly
      available filings or reports provided to their respective shareholders,
      (iv) any other information or disclosure prepared pursuant to Section 4.3
      hereof and (v) any information prepared or approved by the Issuer for
      dissemination to investors or potential investors in the
      Notes.

              

      

       

       

      
        	
                6.3

              	
                “Dealer
      Information” shall mean material concerning the Dealer provided by the
      Dealer in writing expressly for inclusion in the Private Placement
      Memorandum.

              

      

       

       

      
        	
                6.4

              	
                “Exchange
      Act” shall mean the U.S. Securities Exchange Act of 1934, as
      amended.

              

      

       

       

      
        	
                6.5

              	
                “Indemnitee”
      shall have the meaning set forth in Section
5.1.

              

      

       

       

      
        	
                6.6

              	
                “Institutional
      Accredited Investor” shall mean an institutional investor that is an
      accredited investor within the meaning of Rule 501 under the Securities
      Act and that has such knowledge and experience in financial and business
      matters that it is capable of evaluating and bearing the economic risk of
      an investment in the Notes, including, but not limited to, a bank, as
      defined in Section 3(a)(2) of the Securities Act, or a savings and loan
      association or other institution, as defined in Section 3(a)(5)(A) of the
      Securities Act, whether acting in its individual or fiduciary
      capacity.

              

      

       

       

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	
                6.7

              	
                “Issuing
      and Paying Agency Agreement” shall mean the issuing and paying agency
      agreement described on the cover page of this Agreement, as such agreement
      may be amended or supplemented from time to
  time.

              

      

       

       

      
        	
                6.8

              	
                “Issuing
      and Paying Agent” shall mean the party designated as such on the cover
      page of this Agreement, as issuing and paying agent under the Issuing and
      Paying Agency Agreement, or any successor thereto in accordance with the
      Issuing and Paying Agency
Agreement.

              

      

       

       

      
        	
                6.9

              	
                “Non-bank
      fiduciary or agent” shall mean a fiduciary or agent other than (a) a bank,
      as defined in Section 3(a)(2) of the Securities Act, or (b) a savings and
      loan association, as defined in Section 3(a)(5)(A) of the Securities
      Act.

              

      

       

       

      
        	
                6.10

              	
                “Private
      Placement Memorandum” shall mean offering materials prepared in accordance
      with Section 4 (including materials referred to therein or incorporated by
      reference therein, if any) provided to purchasers and prospective
      purchasers of the Notes, and shall include amendments and supplements
      thereto which may be prepared from time to time in accordance with this
      Agreement (other than any amendment or supplement that has been completely
      superseded by a later amendment or
supplement).

              

      

       

       

      
        	
                6.11

              	
                “Qualified
      Institutional Buyer” shall have the meaning assigned to that term in Rule
      144A under the Securities Act.

              

      

       

       

      
        	
                6.12

              	
                “Rule
      144A” shall mean Rule 144A under the Securities
  Act.

              

      

       

       

      
        	
                6.13

              	
                “SEC”
      shall mean the U.S. Securities and Exchange
  Commission.

              

      

       

       

      
        	
                6.14

              	
                “Securities
      Act” shall mean the U.S. Securities Act of 1933, as
    amended.

              

      

       

       

      
        	
                6.15

              	
                “Sophisticated
      Individual Accredited Investor” shall mean an individual who (a) is an
      accredited investor within the meaning of Regulation D under the
      Securities Act and (b) based on his or her pre-existing relationship with
      the Dealer, is reasonably believed by the Dealer to be a sophisticated
      investor (i) possessing such knowledge and experience (or represented by a
      fiduciary or agent possessing such knowledge and experience) in financial
      and business matters that he or she is capable of evaluating and bearing
      the economic risk of an investment in the Notes and (ii) having not less
      than $5 million in investments (as defined, for purposes of this section,
      in Rule 2a51-1 under the Investment Company Act of 1940, as
      amended).

              

      

       

      
        	
                7.

              	
                General

              

      

      

      
        	
                7.1

              	
                Unless
      otherwise expressly provided herein, all notices under this Agreement to
      parties hereto shall be in writing and shall be effective when received at
      the address of the respective party set forth in the Addendum to this
      Agreement.

              

      

       

       

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	
                7.2

              	
                This
      Agreement shall be governed by and construed in accordance with the laws
      of the State of New York, without regard to its conflict of laws
      provisions.

              

      

       

       

      
        	
                7.3

              	
                The
      Issuer agrees that any suit, action or proceeding brought by the Issuer
      against the Dealer in connection with or arising out of this Agreement or
      the Notes or the offer and sale of the Notes shall be brought solely in
      the United States federal courts located in the Borough of Manhattan or
      the courts of the State of New York located in the Borough of
      Manhattan.  EACH OF THE DEALER AND THE ISSUER WAIVES ITS RIGHT
      TO TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS
      AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
  HEREBY.

              

      

       

       

      
        	
                7.4

              	
                This
      Agreement may be terminated, at any time, by the Issuer, upon one business
      day’s prior notice to such effect to the Dealer, or by the Dealer upon one
      business day’s prior notice to such effect to the Issuer.  Any
      such termination, however, shall not affect the obligations of the Issuer
      under Sections 3.7, 5 and 7.3 hereof or the respective representations,
      warranties, agreements, covenants, rights or responsibilities of the
      parties made or arising prior to the termination of this
      Agreement.

              

      

       

       

      
        	
                7.5

              	
                This
      Agreement is not assignable by either party hereto without the written
      consent of the other party; provided, however, that the Dealer may assign
      its rights and obligations under this Agreement to any affiliate of the
      Dealer.

              

      

       

       

      
        	
                7.6

              	
                This
      Agreement may be signed in any number of counterparts, each of which shall
      be an original, with the same effect as if the signatures thereto and
      hereto were upon the same
instrument.

              

      

       

       

      
        	
                7.7

              	
                This
      Agreement is for the exclusive benefit of the parties hereto, and their
      respective permitted successors and assigns hereunder, and shall not be
      deemed to give any legal or equitable right, remedy or claim to any other
      person whatsoever.

              

      

       

      7.8                  
The
Issuer acknowledges and agrees that (i) the purchase and sale of the Notes
pursuant to this Agreement including, the determination of any prices for the
Notes and Dealer compensation, are arm's-length commercial transactions between
the Issuer, on the one hand, and the Dealer, on the other, (ii) in
connection therewith and with the process leading to such transactions, the
Dealer is acting solely as a principal and not the agent or fiduciary of the
Issuer,  (iii) the Dealer has not assumed an advisory or
fiduciary responsibility in favor of the Issuer or any of its Affiliates with
respect to the offering contemplated hereby or the process leading thereto
(irrespective of whether the Dealer has advised or is currently advising the
Issuer or any of its Affiliates on other matters) or any other obligation to the
Issuer except the obligations expressly set forth in this Agreement and
(iv) the Issuer has consulted its own legal and financial advisors to the
extent it deemed appropriate.  The Issuer agrees that it will not
claim that the Dealer has rendered advisory services of any

       

       

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

         
nature or respect, or owes a fiduciary or similar duty to the Issuer, in
connection with such transaction or the process leading thereto.

       

      
        	
                 
      

              	
                7.9

              	
                In
      the case of any agreement by a Dealer to purchase a Note hereunder (other
      than as agent) which provides for a settlement date that is three Business
      Days or more after the date of such agreement, the obligation of the
      Dealer to purchase the Note under such agreement shall be subject to the
      following conditions:

              

      

       

      

      
           
(a)              
the
representations and warranties given by the Issuer set forth above in Section 2
shall be true and correct on and as of the settlement date as if made on and as
of such date, and the Issuer  shall have performed all of its
obligations hereunder to be performed as of such date,

      

      

      
        	
                 
      

              	
                (b)

              	
                since
      the date of the most recent Private Placement Memorandum, there shall have
      been no material adverse change in the condition (financial or otherwise),
      operations or business prospects of the Issuer (whether occurring before
      or after such agreement was entered into) which was not disclosed to the
      Dealer in writing prior to the time such agreement was entered
      into,

              

      

      

      
        	
                 
      

              	
                (c
      )

              	
                the
      Issuer shall not be in default of any of its obligations hereunder, under
      the Notes or under the Issuing and Paying Agency
  Agreement.

              

      

      

      
        	
                 
      

              	
                (d)

              	
                on
      or after the date of such agreement there shall not have occurred any of
      the following: (i) a suspension or material limitation in trading in
      securities generally on the New York Stock Exchange; ; (ii) a suspension
      or material limitation in trading in the Issuer’s securities on the NYSE ;
      (iii) a general moratorium on commercial banking activities declared by
      either Federal or New York State authorities or a material disruption in
      commercial banking or securities settlement or clearance services in the
      United States; (iv) the outbreak or escalation of hostilities involving
      the United States or the declaration by the United States of a national
      emergency or war or (v) the occurrence of any other calamity or crisis or
      any change in financial, political or economic conditions in the United
      States or elsewhere, if the effect of any such event specified in clause
      (iv) or (v) in the judgment of the Dealer makes it impracticable or
      inadvisable to proceed with the offering or the delivery of the Note on
      the terms and in the manner contemplated in the Private Placement
      Memorandum,

              

      

      

      
        	
                 
      

              	
                (e)

              	
                on
      or after the date of such agreement, (i) no downgrading shall have
      occurred in the rating accorded the Issuer's debt securities by any
      nationally recognized statistical rating organization and (ii) no such
      organization shall have publicly announced that it has under surveillance
      or review, with possible negative implications, its rating of any of the
      Issuer's debt securities.

              

      

       

       

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      
 

      “Business Day” shall mean each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in New York are generally authorized or obligated by law or
executive order to close.

      

      This Agreement supersedes all prior
agreements and understandings (whether written or oral) between the Issuer and
the Dealer, or any of them, with respect to the subject matter
hereof.

      

      IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed as of the date and year
first above written.

      

      

      
        	
                CIGNA
      Corporation, as Issuer

              	
                J.P. Morgan Securities
      Inc., as Dealer

              
	 	 
	
                By: 
      /s/ Mordecai
      Schwartz

              	
                By: 
      /s/ Johanna C.
      Foley

              
	
                Name: 
      Mordecai
      Schwartz                                  

              	
                Name: 
      Johanna C.
      Foley                                                                

              
	
                Title: 
      Vice President and Treasurer

              	
                Title: 
      Executive
      Director                                         

              

      

       

      

       

      
 

      
 

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      Addendum

       

       

      The
following additional clauses shall apply to the Agreement and be deemed a part
thereof.

       

       

      
        	
                1.

              	
                The
      other dealer referred to in clause (b) of Section 1.2 of the Agreement is
      Goldman, Sachs & Co.

              

      

       

       

      
        	
                2.

              	
                The
      following changes are hereby made to the
  Agreement:

              

      

       

       

      (a)           Section
1.6(j) is hereby added to the Agreement, as follows:

       

       

      (j) The
Issuer hereby agrees that, not later than 15 days after the first sale of Notes
as contemplated by this Agreement, it will file with the SEC a notice on Form D
in accordance with Rule 503 under the Securities Act and that it will thereafter
file such amendments to such notice as Rule 503 may require.

       

       

      (b)           Section
2.4 of the Agreement is amended by adding the words “and Regulation D
thereunder” after the words “Section 4(2) thereof ” on the 

      third
line of
such Section.

       

       

      (c)           A
new Section 6.16 is hereby added to the Agreement, as follows:

       

      6.16 “Regulation D” shall mean
Regulation D (Rules 501 et seq.) under the Securities Act.

      
        

         

        
          
            	
                    3.            
      The addresses of the respective parties for purposes of notices under
      Section 7.1 are as follows:

                  

          

        

         

        
          	 	
                  For
      the Issuer:

                	 
      
	 	 	 
	 	
                  Address:

                	
                  CIGNA
      Corporation

                
	 
      	
                  TL15J

                
	 
      	
                  1601
      Chestnut Street

                
	 
      	
                  Philadelphia,
      PA  19192

                
	 
      	
                  Attention:  Treasurer

                

        

      

      
        	 	
                Telephone
      number:

              	
                215.761.2814

              
	 	
                Fax
      number:

              	
                215.761.5516

              

      

       

      

       

      
        	
                For
      the Dealer:

              	 
      
	
                Address:

              	
                270
      Park Avenue

              
	 
      	
                8th
      Floor

              
	 
      	
                New
      York, NY  10017

              
	 
      	
                Attention:  Short
      Term Fixed Income Division

              

      

      
        	
                Telephone
      number:

              	
                (212)
      834-5543

              
	
                Fax
      number:

              	
                (212)
      834-6172

              

      

       

       

       

      
 

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      Exhibit
A

       

       

      Form
of Legend for Private Placement Memorandum and Notes

       

       

      THE NOTES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR ANY OTHER APPLICABLE SECURITIES LAW, AND OFFERS AND SALES THEREOF MAY
BE MADE ONLY IN COMPLIANCE WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.  BY
ITS ACCEPTANCE OF A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT THAT (I) IT
HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER
AND THE NOTES, (II) IT IS NOT ACQUIRING SUCH NOTE WITH A VIEW TO ANY
DISTRIBUTION THEREOF AND (III) IT IS EITHER (A)(1) AN INSTITUTIONAL INVESTOR OR
SOPHISTICATED INDIVIDUAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE
MEANING OF RULE 501(a) UNDER THE ACT AND WHICH, IN THE CASE OF AN INDIVIDUAL,
(i) POSSESSES SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS
THAT HE OR SHE IS CAPABLE OF EVALUATING AND BEARING THE ECONOMIC RISK OF AN
INVESTMENT IN THE NOTES AND (ii) HAS NOT LESS THAN $5 MILLION IN INVESTMENTS (AN
“INSTITUTIONAL ACCREDITED INVESTOR” OR “SOPHISTICATED INDIVIDUAL ACCREDITED
INVESTOR”, RESPECTIVELY) AND (2)(i) PURCHASING NOTES FOR ITS OWN ACCOUNT, (ii) A
BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT) OR A SAVINGS AND LOAN
ASSOCIATION OR OTHER INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A) OF THE ACT)
ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY OR (iii) A FIDUCIARY OR AGENT
(OTHER THAN A U.S. BANK OR SAVINGS AND LOAN ASSOCIATION) PURCHASING NOTES FOR
ONE OR MORE ACCOUNTS EACH OF WHICH ACCOUNTS IS SUCH AN INSTITUTIONAL ACCREDITED
INVESTOR OR SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR; OR (B) A QUALIFIED
INSTITUTIONAL BUYER (“QIB”) WITHIN THE MEANING OF RULE 144A UNDER THE ACT THAT
IS ACQUIRING NOTES FOR ITS OWN ACCOUNT OR FOR ONE OR MORE ACCOUNTS, EACH OF
WHICH ACCOUNTS IS A QIB; AND THE PURCHASER ACKNOWLEDGES THAT IT IS AWARE THAT
THE SELLER MAY RELY UPON THE EXEMPTION FROM THE REGISTRATION PROVISIONS OF
SECTION 5 OF THE ACT PROVIDED BY RULE 144A.  BY ITS ACCEPTANCE OF A
NOTE, THE PURCHASER THEREOF SHALL ALSO BE DEEMED TO AGREE THAT ANY RESALE OR
OTHER TRANSFER THEREOF WILL BE MADE ONLY (A) IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE ACT, EITHER (1) TO THE ISSUER OR TO A PLACEMENT AGENT
DESIGNATED BY THE ISSUER AS A PLACEMENT AGENT FOR THE NOTES (COLLECTIVELY, THE
“PLACEMENT AGENTS”), NONE OF WHICH SHALL HAVE ANY OBLIGATION TO ACQUIRE SUCH
NOTE, (2) THROUGH A PLACEMENT AGENT TO AN INSTITUTIONAL ACCREDITED INVESTOR,
SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR OR A QIB, OR (3) TO A QIB IN A
TRANSACTION THAT MEETS THE REQUIREMENTS OF RULE 144A AND (B) IN MINIMUM AMOUNTS
OF $250,000.

       

       

       

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      Exhibit
B

       

      Further
Provisions Relating to Indemnification

       

       

      
        	
                (a)

              	
                The
      Issuer agrees to reimburse each Indemnitee for all expenses (including
      reasonable fees and disbursements of internal and external counsel) as
      they are incurred by it in connection with investigating or defending any
      loss, claim, damage, liability or action in respect of which
      indemnification may be sought under Section 5 of the Agreement (whether or
      not it is a party to any such
proceedings).

              

      

       

       

      
        (b)          
Promptly
after receipt by an Indemnitee of notice of the existence of a Claim, such
Indemnitee will, if a claim in respect thereof is to be made against the Issuer,
notify the Issuer in writing of the existence thereof; provided that (i) the
omission so to notify the Issuer will not relieve the Issuer from any liability
which it may have hereunder unless and except to the extent it did not otherwise
learn of such Claim and such failure results in the forfeiture by the Issuer of
substantial rights and defenses, and (ii) the omission so to notify the Issuer
will not relieve it from liability which it may have to an Indemnitee otherwise
than on account of this indemnity agreement.  In case any such Claim
is made against any Indemnitee and it notifies the Issuer of the existence
thereof, the Issuer will be entitled to participate therein, and to the extent
that it may elect by written notice delivered to the Indemnitee, to assume the
defense thereof, with counsel reasonably satisfactory to such Indemnitee;
provided that if the defendants in any such Claim include both the Indemnitee
and the Issuer, and the Indemnitee shall have concluded that there may be legal
defenses available to it which are different from or additional to those
available to the Issuer, the Issuer shall not have the right to direct the
defense of such Claim on behalf of such Indemnitee, and the Indemnitee shall
have the right to select separate counsel to assert such legal defenses on
behalf of such Indemnitee.  Upon receipt of notice from the Issuer to
such Indemnitee of the Issuer’s election so to assume the defense of such Claim
and approval by the Indemnitee of counsel, the Issuer will not be liable to such
Indemnitee for expenses incurred thereafter by the Indemnitee in connection with
the defense thereof (other than reasonable costs of investigation) unless (i)
the Indemnitee shall have employed separate counsel in connection with the
assertion of legal defenses in accordance with the proviso to the next preceding
sentence (it being understood, however, that the Issuer shall not be liable for
the expenses of more than one separate counsel (in addition to any local counsel
in the jurisdiction in which any Claim is brought), approved by the Dealer,
representing the Indemnitee who is party to such Claim), (ii) the Issuer shall
not have employed counsel reasonably satisfactory to the Indemnitee to represent
the Indemnitee within a reasonable time after notice of existence of the Claim
or (iii) the Issuer has authorized in writing the employment of counsel for the
Indemnitee.  The indemnity, reimbursement and contribution obligations
of the Issuer hereunder shall be in addition to any other liability the Issuer
may otherwise have to an Indemnitee and shall be binding upon and inure to the
benefit of any successors, assigns, heirs and personal representatives of the
Issuer and any Indemnitee.  The Issuer agrees that without the
Dealer’s prior written consent, it will not settle, compromise or consent to the
entry of any judgment in any Claim in respect of which indemnification may be
sought under the indemnification provision of the Agreement (whether or not the
Dealer 

         

         

         

         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

         

        or any other Indemnitee is an actual or potential party to such
Claim), unless such settlement, compromise or consent (i) includes an
unconditional release of each Indemnitee from all liability arising out of such
Claim and (ii)does not include a statement as to or an admission of fault,
culpability or failure to act, by or on behalf of any Indemnitee.

      

       

      
 

       

       

       

      
 

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      

       

       

      Exhibit
C

       

      Statement
of Terms for Interest – Bearing Commercial Paper Notes of [Name of
Issuer]

       

       

      THE
PROVISIONS SET FORTH BELOW ARE QUALIFIED TO THE EXTENT APPLICABLE BY THE
TRANSACTION SPECIFIC [PRICING] [PRIVATE PLACEMENT MEMORANDUM] SUPPLEMENT (THE
“SUPPLEMENT”) (IF ANY) SENT TO EACH PURCHASER AT THE TIME OF THE
TRANSACTION.

       

       

      
        	
                1.

              	
                General.  (a)  The
      obligations of the Issuer to which these terms apply (each a “Note”) are
      represented by one or more Master Notes (each, a “Master Note”) issued in
      the name of (or of a nominee for) The Depository Trust Company (“DTC”),
      which Master Note includes the terms and provisions for the Issuer's
      Interest-Bearing Commercial Paper Notes that are set forth in this
      Statement of Terms, since this Statement of Terms constitutes an integral
      part of the Underlying Records as defined and referred to in the Master
      Note.

              

      

       

       

      
        	
                 
      

              	
                (b)

              	
                “Business
      Day” means any day other than a Saturday or Sunday that is neither a legal
      holiday nor a day on which banking institutions are authorized or required
      by law, executive order or regulation to be closed in New York City and,
      with respect to LIBOR Notes (as defined below) is also a London Business
      Day.  “London Business Day” means, a day, other than a Saturday
      or Sunday, on which dealings in deposits in U.S. dollars are transacted in
      the London interbank market.

              

      

       

       

      
        	
                2.

              	
                Interest.  (a)  Each
      Note will bear interest at a fixed rate (a “Fixed Rate Note”) or at a
      floating rate (a “Floating Rate
Note”).

              

      

       

       

      
        	
                 
      

              	
                (b)

              	
                The
      Supplement sent to each holder of such Note will describe the following
      terms: (i) whether such Note is a Fixed Rate Note or a Floating Rate Note
      and whether such Note is an Original Issue Discount Note (as defined
      below); (ii) the date on which such Note will be issued (the “Issue
      Date”); (iii) the Stated Maturity Date (as defined below); (iv) if such
      Note is a Fixed Rate Note, the rate per annum at which such Note will bear
      interest, if any, and the Interest Payment Dates; (v) if such Note is a
      Floating Rate Note, the Base Rate, the Index Maturity, the Interest Reset
      Dates, the Interest Payment Dates and the Spread and/or Spread Multiplier,
      if any (all as defined below), and any other terms relating to the
      particular method of calculating the interest rate for such Note; and (vi)
      any other terms applicable specifically to such Note.  “Original
      Issue Discount Note” means a Note which has a stated redemption price at
      the Stated Maturity Date that exceeds its Issue Price by more than a
      specified de minimus amount and which the Supplement indicates will be an
      “Original Issue Discount Note”.

              

      

       

       

      
           
(c)           Each
Fixed Rate Note will bear interest from its Issue Date at the rate per annum
specified in the Supplement until the principal amount thereof is paid or made

         

         

         

         

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

         

        available
for payment.  Interest on each Fixed Rate Note will be payable on the
dates specified in the Supplement (each an “Interest Payment Date” for a Fixed
Rate Note) and on the Maturity Date (as defined below).  Interest on
Fixed Rate Notes will be computed on the basis of a 360-day year of twelve
30-day months.

      

       

       

      
        	
                 
      

              	
                If
      any Interest Payment Date or the Maturity Date of a Fixed Rate Note falls
      on a day that is not a Business Day, the required payment of principal,
      premium, if any, and/or interest will be payable on the next succeeding
      Business Day, and no additional interest will accrue in respect of the
      payment made on that next succeeding Business
  Day.

              

      

       

       

      
        	
                 
      

              	
                (d)

              	
                The
      interest rate on each Floating Rate Note for each Interest Reset Period
      (as defined below) will be determined by reference to an interest rate
      basis (a “Base Rate”) plus or minus a number of basis points (one basis
      point equals one-hundredth of a percentage point) (the “Spread”), if any,
      and/or multiplied by a certain percentage (the “Spread Multiplier”), if
      any, until the principal thereof is paid or made available for
      payment.  The Supplement will designate which of the following
      Base Rates is applicable to the related Floating Rate Note: (a) the CD
      Rate (a “CD Rate Note”), (b) the Commercial Paper Rate (a “Commercial
      Paper Rate Note”), (c) the Federal Funds Rate (a “Federal Funds Rate
      Note”), (d) LIBOR (a “LIBOR Note”), (e) the Prime Rate (a “Prime Rate
      Note”), (f) the Treasury Rate (a “Treasury Rate Note”) or (g) such other
      Base Rate as may be specified in such
  Supplement.

              

      

       

       

      The rate of interest on each Floating
Rate Note will be reset daily, weekly, monthly, quarterly or semi-annually (the
“Interest Reset Period”).  The date or dates on which interest will be
reset (each an “Interest Reset Date”) will be, unless otherwise specified in the
Supplement, in the case of Floating Rate Notes which reset daily, each Business
Day, in the case of Floating Rate Notes (other than Treasury Rate Notes) that
reset weekly, the Wednesday of each week; in the case of Treasury Rate Notes
that reset weekly, the Tuesday of each week; in the case of Floating Rate Notes
that reset monthly, the third Wednesday of each month; in the case of Floating
Rate Notes that reset quarterly, the third Wednesday of March, June, September
and December; and in the case of Floating Rate Notes that reset semiannually,
the third Wednesday of the two months specified in the Supplement.  If
any Interest Reset Date for any Floating Rate Note is not a Business Day, such
Interest Reset Date will be postponed to the next day that is a Business Day,
except that in the case of a LIBOR Note, if such Business Day is in the next
succeeding calendar month, such Interest Reset Date shall be the immediately
preceding Business Day. Interest on each Floating Rate Note will be payable
monthly, quarterly or semiannually (the “Interest Payment Period”) and on the
Maturity Date.  Unless otherwise specified in the Supplement, and
except as provided below, the date or dates on which interest will be payable
(each an “Interest Payment Date” for a Floating Rate Note) will be, in the case
of Floating Rate Notes with a monthly Interest Payment Period, on the third
Wednesday of each month; in the case of Floating Rate Notes with a quarterly
Interest Payment Period, on the third Wednesday of March, June, September and
December; and in the case of Floating Rate Notes with a semiannual Interest
Payment Period, on the third Wednesday of the two months specified in the
Supplement.  In addition, the Maturity Date will also be an Interest
Payment Date.

       

       

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      If any
Interest Payment Date for any Floating Rate Note (other than an Interest Payment
Date occurring on the Maturity Date) would otherwise be a day that is not a
Business Day, such Interest Payment Date shall be postponed to the next day that
is a Business Day, except that in the case of a LIBOR Note, if such Business Day
is in the next succeeding calendar month, such Interest Payment Date shall be
the immediately preceding Business Day.  If the Maturity Date of a
Floating Rate Note falls on a day that is not a Business Day, the payment of
principal and interest will be made on the next succeeding Business Day, and no
interest on such payment shall accrue for the period from and after such
maturity.

       

       

      Interest payments on each Interest
Payment Date for Floating Rate Notes will include accrued interest from and
including the Issue Date or from and including the last date in respect of which
interest has been paid, as the case may be, to, but excluding, such Interest
Payment Date.  On the Maturity Date, the interest payable on a
Floating Rate Note will include interest accrued to, but excluding, the Maturity
Date.  Accrued interest will be calculated by multiplying the
principal amount of a Floating Rate Note by an accrued interest
factor.  This accrued interest factor will be computed by adding the
interest factors calculated for each day in the period for which accrued
interest is being calculated.  The interest factor (expressed as a
decimal) for each such day will be computed by dividing the interest rate
applicable to such day by 360, in the cases where the Base Rate is the CD Rate,
Commercial Paper Rate, Federal Funds Rate, LIBOR or Prime Rate, or by the actual
number of days in the year, in the case where the Base Rate is the Treasury
Rate.  The interest rate in effect on each day will be (i) if such day
is an Interest Reset Date, the interest rate with respect to the Interest
Determination Date (as defined below) pertaining to such Interest Reset Date, or
(ii) if such day is not an Interest Reset Date, the interest rate with respect
to the Interest Determination Date pertaining to the next preceding Interest
Reset Date, subject in either case to any adjustment by a Spread and/or a Spread
Multiplier.

       

       

      The “Interest Determination Date” where
the Base Rate is the CD Rate or the Commercial Paper Rate will be the second
Business Day next preceding an Interest Reset Date.  The Interest
Determination Date where the Base Rate is the Federal Funds Rate or the Prime
Rate will be the Business Day next preceding an Interest Reset
Date.  The Interest Determination Date where the Base Rate is LIBOR
will be the second London Business Day next preceding an Interest Reset
Date.  The Interest Determination Date where the Base Rate is the
Treasury Rate will be the day of the week in which such Interest Reset Date
falls when Treasury Bills are normally auctioned.  Treasury Bills are
normally sold at auction on Monday of each week, unless that day is a legal
holiday, in which case the auction is held on the following Tuesday or the
preceding Friday.  If an auction is so held on the preceding Friday,
such Friday will be the Interest Determination Date pertaining to the Interest
Reset Date occurring in the next succeeding week.

       

       

      The “Index Maturity” is the period to
maturity of the instrument or obligation from which the applicable Base Rate is
calculated.

       

       

      The “Calculation Date,” where
applicable, shall be the earlier of (i) the tenth calendar day following the
applicable Interest Determination Date or (ii) the Business Day preceding the
applicable Interest Payment Date or Maturity Date.

       

       

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      All times referred to herein reflect
New York City time, unless otherwise specified.

       

       

      The Issuer shall specify in writing to
the Issuing and Paying Agent which party will be the calculation agent (the
“Calculation Agent”) with respect to the Floating Rate Notes.  The
Calculation Agent will provide the interest rate then in effect and, if
determined, the interest rate which will become effective on the next Interest
Reset Date with respect to such Floating Rate Note to the Issuing and Paying
Agent as soon as the interest rate with respect to such Floating Rate Note has
been determined and as soon as practicable after any change in such interest
rate.

       

       

      All percentages resulting from any
calculation on Floating Rate Notes will be rounded to the nearest one
hundred-thousandth of a percentage point, with five-one millionths of a
percentage point rounded upwards.  For example, 9.876545% (or
..09876545) would be rounded to 9.87655% (or .0987655).  All dollar
amounts used in or resulting from any calculation on Floating Rate Notes will be
rounded, in the case of U.S. dollars, to the nearest cent or, in the case of a
foreign currency, to the nearest unit (with one-half cent or unit being rounded
upwards).

       

       

      CD
Rate Notes

       

      “CD Rate”
means the rate on any Interest Determination Date for negotiable certificates of
deposit having the Index Maturity as published by the Board of Governors of the
Federal Reserve System (the “FRB”) in “Statistical Release H.15(519), Selected
Interest Rates” or any successor publication of the FRB (“H.15(519)”) under the
heading “CDs (Secondary Market)”.

       

       

      If the
above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date,
the CD Rate will be the rate on such Interest Determination Date set forth in
the daily update of H.15(519), available through the world wide website of the
FRB at http://www.federalreserve.gov/releases/h15/Update, or any successor site
or publication or other recognized electronic source used for the purpose of
displaying the applicable rate (“H.15 Daily Update”) under the caption “CDs
(Secondary Market)”.

       

       

      If such
rate is not published in either H.15(519) or H.15 Daily Update by 3:00 p.m. on
the Calculation Date, the Calculation Agent will determine the CD Rate to be the
arithmetic mean of the secondary market offered rates as of 10:00 a.m. on such
Interest Determination Date of three leading nonbank dealers1  in negotiable U.S. dollar
certificates of deposit in New York City selected by the Calculation Agent for
negotiable U.S. dollar certificates of deposit of major United States money
center banks of the highest credit standing in the market for negotiable
certificates of deposit with a remaining maturity closest to the Index Maturity
in the denomination of $5,000,000.

       

       

      If the
dealers selected by the Calculation Agent are not quoting as set forth above,
the CD Rate will remain the CD Rate then in effect on such Interest
Determination Date.

       

       

       

      1   Such
nonbank dealers referred to in this Statement of Terms may include affiliates of
the Dealer.

       

       

       

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

        Commercial
Paper Rate Notes

      

       

      “Commercial
Paper Rate” means the Money Market Yield (calculated as described below) of the
rate on any Interest Determination Date for commercial paper having the Index
Maturity, as published in H.15(519) under the heading “Commercial
Paper-Nonfinancial”.

       

       

      If the
above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date,
then the Commercial Paper Rate will be the Money Market Yield of the rate on
such Interest Determination Date for commercial paper of the Index Maturity as
published in H.15 Daily Update under the heading “Commercial
Paper-Nonfinancial”.

       

       

      If by
3:00 p.m. on such Calculation Date such rate is not published in either
H.15(519) or H.15 Daily Update, then the Calculation Agent will determine the
Commercial Paper Rate to be the Money Market Yield of the arithmetic mean of the
offered rates as of 11:00 a.m. on such Interest Determination Date of three
leading dealers of U.S. dollar commercial paper in New York City selected by the
Calculation Agent for commercial paper of the Index Maturity placed for an
industrial issuer whose bond rating is “AA,” or the equivalent, from a
nationally recognized statistical rating organization.

       

       

      If the
dealers selected by the Calculation Agent are not quoting as mentioned above,
the Commercial Paper Rate with respect to such Interest Determination Date will
remain the Commercial Paper Rate then in effect on such Interest Determination
Date.

       

       

      “Money
Market Yield” will be a yield calculated in accordance with the following
formula:

       

      D x 360

      Money
Market Yield
=                                       x
100

      360 - (D x M)

       

       

      where “D”
refers to the applicable per annum rate for commercial paper quoted on a bank
discount basis and expressed as a decimal and “M” refers to the actual number of
days in the interest period for which interest is being calculated.

       

       

      Federal
Funds Rate Notes

       

      “Federal
Funds Rate” means the rate on any Interest Determination Date for federal funds
as published in H.15(519) under the heading “Federal Funds (Effective)” and
displayed on Moneyline Telerate (or any successor service) on page 120 (or any
other page as may replace the specified page on that service) (“Telerate Page
120”).

       

       

      If the
above rate does not appear on Telerate Page 120 or is not so published by 3:00
p.m. on the Calculation Date, the Federal Funds Rate will be the rate on such
Interest Determination Date as published in H.15 Daily Update under the heading
“Federal Funds/(Effective)”.

       

       

      If such
rate is not published as described above by 3:00 p.m. on the Calculation Date,
the Calculation Agent will determine the Federal Funds Rate to be the arithmetic
mean of the 

       

       

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      rates for
the last transaction in overnight U.S. dollar federal funds arranged by each of
three leading brokers of Federal Funds transactions in New York City selected by
the Calculation Agent prior to 9:00 a.m. on such Interest Determination
Date.

       

       

      If the
brokers selected by the Calculation Agent are not quoting as mentioned above,
the Federal Funds Rate will remain the Federal Funds Rate then in effect on such
Interest Determination Date.

       

       

      LIBOR
Notes

       

       

      The
London Interbank offered rate (“LIBOR”) means, with respect to any Interest
Determination Date, the rate for deposits in U.S. dollars having the Index
Maturity that appears on the Designated LIBOR Page as of 11:00 a.m., London
time, on such Interest Determination Date.

       

       

      If no
rate appears, LIBOR will be determined on the basis of the rates at
approximately 11:00 a.m., London time, on such Interest Determination Date at
which deposits in U.S. dollars are offered to prime banks in the London
interbank market by four major banks in such market selected by the Calculation
Agent for a term equal to the Index Maturity and in principal amount equal to an
amount that in the Calculation Agent’s judgment is representative for a single
transaction in U.S. dollars in such market at such time (a “Representative
Amount”).  The Calculation Agent will request the principal London
office of each of such banks to provide a quotation of its rate.  If
at least two such quotations are provided, LIBOR will be the arithmetic mean of
such quotations.  If fewer than two quotations are provided, LIBOR for
such interest period will be the arithmetic mean of the rates quoted at
approximately 11:00 a.m., in New York City, on such Interest Determination Date
by three major banks in New York City, selected by the Calculation Agent, for
loans in U.S. dollars to leading European banks, for a term equal to the Index
Maturity and in a Representative Amount; provided, however, that if fewer than
three banks so selected by the Calculation Agent are providing such quotations,
the then existing LIBOR rate will remain in effect for such Interest Payment
Period.

       

       

      “Designated
LIBOR Page” means the display designated as Reuters Screen “LIBOR01” (or such
other page as may replace such page on Reuters Monitor Money Rate Service or
such other service or services as may be nominated by the British Bankers’
Association for the purposes of displaying London interbank offered rates for
U.S. dollar deposits).

       

       

      Prime
Rate Notes

       

      “Prime
Rate” means the rate on any Interest Determination Date as published in
H.15(519) under the heading “Bank Prime Loan”.

       

       

      If the
above rate is not published in H.15(519) prior to 3:00 p.m. on the Calculation
Date, then the Prime Rate will be the rate on such Interest Determination Date
as published in H.15 Daily Update opposite the caption “Bank Prime
Loan”.

       

       

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      If the
rate is not published prior to 3:00 p.m. on the Calculation Date in either
H.15(519) or H.15 Daily Update, then the Calculation Agent will determine the
Prime Rate to be the arithmetic mean of the rates of interest publicly announced
by each bank that appears on the Reuters Screen US PRIME1 Page (as defined
below) as such bank’s prime rate or base lending rate as of 11:00 a.m., on that
Interest Determination Date.

       

       

      If fewer
than four such rates referred to above are so published by 3:00 p.m. on the
Calculation Date, the Calculation Agent will determine the Prime Rate to be the
arithmetic mean of the prime rates or base lending rates quoted on the basis of
the actual number of days in the year divided by 360 as of the close of business
on such Interest Determination Date by three major banks in New York City
selected by the Calculation Agent.

       

       

      If the
banks selected are not quoting as mentioned above, the Prime Rate will remain
the Prime Rate in effect on such Interest Determination Date.

       

       

      “Reuters
Screen US PRIME1 Page” means the display designated as page “US PRIME1” on the
Reuters Monitor Money Rates Service (or such other page as may replace the US
PRIME1 page on that service for the purpose of displaying prime rates or base
lending rates of major United States banks).

       

       

      Treasury
Rate Notes

       

      “Treasury
Rate” means:

       

      (1) the
rate from the auction held on the Interest Determination Date (the “Auction”) of
direct obligations of the United States (“Treasury Bills”) having the Index
Maturity specified in the Supplement under the caption “INVESTMENT RATE” on the
display on Moneyline Telerate (or any successor service) on page 56 (or any
other page as may replace that page on that service) (“Telerate Page 56”) or
page 57 (or any other page as may replace that page on that service) (“Telerate
Page 57”), or

       

       

      (2) if
the rate referred to in clause (1) is not so published by 3:00 p.m. on the
related Calculation Date, the Bond Equivalent Yield (as defined below) of the
rate for the applicable Treasury Bills as published in H.15 Daily Update, under
the caption “U.S. Government Securities/Treasury Bills/Auction High”,
or

       

       

      (3) if
the rate referred to in clause (2) is not so published by 3:00 p.m. on the
related Calculation Date, the Bond Equivalent Yield of the auction rate of the
applicable Treasury Bills as announced by the United States Department of the
Treasury, or

       

       

      (4) if
the rate referred to in clause (3) is not so announced by the United States
Department of the Treasury, or if the  Auction is not held, the Bond
Equivalent Yield of the rate on the particular Interest Determination Date of
the applicable Treasury Bills as published in H.15(519) under the caption “U.S.
Government Securities/Treasury Bills/Secondary Market”, or

       

       

       

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      (5) if
the rate referred to in clause (4) not so published by 3:00 p.m. on the related
Calculation Date, the rate on the particular Interest Determination Date of the
applicable Treasury Bills as published in H.15 Daily Update, under the caption
“U.S. Government Securities/Treasury Bills/Secondary Market”, or

       

       

      (6) if
the rate referred to in clause (5) is not so published by 3:00 p.m. on the
related Calculation Date, the rate on the particular Interest Determination Date
calculated by the Calculation Agent as the Bond Equivalent Yield of the
arithmetic mean of the secondary market bid rates, as of approximately 3:30 p.m.
on that Interest Determination Date, of three primary United States government
securities dealers selected by the Calculation Agent, for the issue of Treasury
Bills with a remaining maturity closest to the Index Maturity specified in the
Supplement, or

       

       

      (7) if
the dealers so selected by the Calculation Agent are not quoting as mentioned in
clause (6), the Treasury Rate in effect on the particular Interest Determination
Date.

       

       

      “Bond
Equivalent Yield” means a yield (expressed as a percentage) calculated in
accordance with the following formula:

       

        D x N

      Bond
Equivalent Yield
=                                        x
100

      360 - (D x M)

       

       

      where “D”
refers to the applicable per annum rate for Treasury Bills quoted on a bank
discount basis and expressed as a decimal, “N” refers to 365 or 366, as the case
may be, and “M” refers to the actual number of days in the applicable Interest
Reset Period.

       

       

      
        	
                3.

              	
                Final
      Maturity.  The Stated Maturity Date for any Note will be
      the date so specified in the Supplement, which shall be no later than 397
      days from the date of issuance.  On its Stated Maturity Date, or
      any date prior to the Stated Maturity Date on which the particular Note
      becomes due and payable by the declaration of acceleration, each such date
      being referred to as a Maturity Date, the principal amount of each Note,
      together with accrued and unpaid interest thereon, will be immediately due
      and payable.

              

      

       

       

      
        4.     Events of
Default.  The occurrence of any of the following shall
constitute an “Event of Default” with respect to a Note:  (i) default
in any payment of principal of or interest on such Note (including on a
redemption thereof); (ii) the Issuer makes any compromise arrangement with its
creditors generally including the entering into any form of moratorium with its
creditors generally; (iii) a court having jurisdiction shall enter a decree or
order for relief in respect of the Issuer in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or there shall be appointed a receiver, administrator, liquidator,
custodian, trustee or sequestrator (or similar officer) with respect to the
whole or substantially the whole of the assets of the Issuer and any such
decree, order or appointment is not removed, discharged or withdrawn within 60
days thereafter; or (iv) the Issuer shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or consent to the entry of an order for relief in an 

         

         

         

         

        
          
            
            

          

          
            27

            
              

            

          

          
            
            

          

        

         

        involuntary
case under any such law, or consent to the appointment of or taking possession
by a receiver, administrator, liquidator, assignee, custodian, trustee or
sequestrator (or similar official), with respect to the whole or substantially
the whole of the assets of the Issuer or make any general assignment for the
benefit of creditors.  Upon the occurrence of an Event of Default, the
principal of each obligation evidenced by such Note (together with interest
accrued and unpaid thereon) shall become, without any notice or demand,
immediately due and payable. 2

      

       

       

      
        	
                5.

              	
                Obligation
      Absolute.  No provision of the Issuing and Paying Agency
      Agreement under which the Notes are issued shall alter or impair the
      obligation of the Issuer, which is absolute and unconditional, to pay the
      principal of and interest on each Note at the times, place and rate, and
      in the coin or currency, herein
prescribed.

              

      

       

       

      
        	
                6.

              	
                Supplement.  Any
      term contained in the Supplement shall supersede any conflicting term
      contained herein.

              

      

       

       

      

       

       

      

      

        
          

        

      

      
        2  Unlike
single payment notes, where a default arises only at the stated maturity,
interest-bearing notes with multiple payment dates should contain a default
provision permitting acceleration of the maturity if the Issuer defaults on an
interest payment.

       

       

       

      28

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