Document:

Citigroup Global Markets Inc. Commercial Paper Dealer Agreement

Exhibit 10.1(b)

 

COMMERCIAL
PAPER DEALER AGREEMENT

 

 

Between:

 

 

CENDANT
CORPORATION, as Issuer 

 

 

And

 

 

CITIGROUP
GLOBAL MARKETS INC., as Dealer

 

Concerning
Notes to be issued pursuant to an
Issuing and
Paying Agency Agreement dated as of March 30, 2005 between the Issuer and
JPMorgan Chase Bank, N.A. as Issuing and Paying Agent

Dated
as of

March
30, 2005

 

 

Commercial
Paper Dealer Agreement

4(2)
Program

 

 

This
agreement as amended, supplemented or otherwise modified and in effect from time
to time (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. 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 365 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.”

 

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 

 

2

“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 for the Issuer 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 up to an amount equal to the reimbursement of such funds
(as required above) plus interest at the rate and on the terms for the
Note for which such failure occurred 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 by the
      Dealer 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 (not to be
      unreasonably withheld), the Issuer shall 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.

 

3

 

	(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
      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, 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
      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
    

 

4

 

		
      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 Dealer at least five business days’ prior
      written notice to that effect. 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 

 

 

5

 

	  	
      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.

 

 

	2.6  	
      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 financial
      condition 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 disclosed in the Issuer’s periodic reports filed with the SEC, 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 result in a material adverse change in the
      financial condition 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. 

 

6

 

	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 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
      material adverse change in the financial condition of the Issuer 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
      financial condition or any development or occurrence in relation to the
      Issuer that would have a material adverse effect on the holders of the
      Notes or potential holders 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 change, development or
      occurrence.

 

 

	3.3  	
      The
      Issuer shall from time to time furnish to the Dealer such public
      information as the Dealer may reasonably request, 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.
  

 

7

 

	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.

 

 

	3.6  	
      The
      Issuer shall not issue Notes hereunder until the Dealer shall have
      received (a) an opinion of counsel to the Issuer, addressed to the Dealer,
      reasonably 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,
      reasonably 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 information which the Issuer possesses or can
      acquire without unreasonable effort or
expense.

 

 

	4.2  	
      Upon
      request of the Dealer, the Issuer agrees to promptly furnish the Dealer
      the 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. The Dealer agrees
      that, upon such notification, all solicitations and sales of Notes shall
      be suspended.

 

	(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 

 

8

 

	 	
       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, 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
      other written 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. This
      indemnification shall not apply to the extent that the Claim arises out of
      or is based upon Dealer Information or that the Claim is determined by a
      court of competent jurisdiction to have resulted from an Indemnitee’s
      gross negligence or willful misconduct. 

 

 

	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

 

 

9

 

	  	
      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 in writing 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.

 

 

	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.

 

 

10

 

	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 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, 

 

11

 

	  	
      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 with the consent of the Issuer (which consent shall not be
      unreasonably withheld or delayed).

 

 

	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.

 

 

12

 

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

 

	
      CENDANT
      CORPORATION, as Issuer

       

       

      By: 
      /s/ David B. Wyshner
	 	
      CITIGROUP
      GLOBAL MARKETS INC., as Dealer

       

       

      By: 
      /s/ James M. Hennessy

	
      Name: David
      B. Wyshner 

      Title:
       Treasurer
      
	 	
      Name: 
      James M. Hennessy 

      Title: 
      Managing Director 

 

 

13

 

Addendum

 

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

 

 

	1.  	
      The
      other dealers referred to in clause (b) of Section 1.2 of the Agreement
      are Banc of America Securities LLC and J.P. Morgan Securities Inc.
      

 

 

	2.  	
      The
      addresses of the respective parties for purposes of notices under Section
      7.1 are as follows:

 

 

For the
Issuer: Cendant
Corporation

 

	
      Address:
	
      One
      Campus Drive 

      Parsippany,
      NJ 07054

Attention:
 Treasurer

 

Telephone
number: (973) 496-7938

Fax
number: (973) 496-5080

 

 

 

 

For the
Dealer: Citigroup
Global Markets Inc.

 

 

	
      Address:
      
	
      390
      Greenwich Street, 5th
      Floor

      New York, NY 10013 

Attention:
 Money
Markets Origination 

 

Telephone
number: (212) 723-6378

Fax
number: (212) 723-8624

 

 

14

 

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.

 

 

15

 

Exhibit
B

 

Further
Provisions Relating to Indemnification

 

 

	
      (a)
	
      The
      Issuer agrees to reimburse each Indemnitee for all reasonable 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 any of its 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 reasonable 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 (not to be unreasonably withheld), 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 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.

 

16

 

Exhibit
C

 

Statement
of Terms for Interest - Bearing Commercial Paper Notes of Cendant
Corporation

 

 

THE
PROVISIONS SET FORTH BELOW ARE QUALIFIED TO THE EXTENT APPLICABLE BY THE
TRANSACTION SPECIFIC PRICING 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
minimis 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
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 

 

17

 

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.

 

 

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.

 

18

 

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.

 

 

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.

 

19

 

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 dealers 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.

 

 

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 

 

20

 

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 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 

 

21

 

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 page “3750” on Moneyline Telerate
(or such other page as may replace the 3750 page on that 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”.

 

 

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).

 

22

 

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

 

 

(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)

 

23

 

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 365 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
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.

 

 

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 supercede any conflicting term contained
herein.

 

 

24J.P. Morgan Securities Inc. Commercial Paper Dealer Agreement

 

Exhbit 10.1(c)

 

COMMERCIAL
PAPER DEALER AGREEMENT

 

 

Between:

 

 

CENDANT
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 30, 2005 between the Issuer and
JPMorgan Chase Bank, N.A. as Issuing and Paying Agent

Dated
as of

March
30, 2005

 

 

Commercial
Paper Dealer Agreement

4(2)
Program

 

 

This
agreement as amended, supplemented or otherwise modified and in effect from time
to time (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. 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 365 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.”

 

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.

 

2

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 for the Issuer 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 up to an amount equal to the reimbursement of such funds
(as required above) plus interest at the rate and on the terms for the
Note for which such failure occurred 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 by the
      Dealer 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 (not to be
      unreasonably withheld), the Issuer shall 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.

 

3

 

	(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
      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, 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
      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
    

 

 

4

 

	  	
      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 Dealer at least five business days’ prior
      written notice to that effect. 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 

 

 

5

 

	 	
      
      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.

 

 

	2.6  	
      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 financial
      condition 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 disclosed in the Issuer’s periodic reports filed with the SEC, 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 result in a material adverse change in the
      financial condition 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. 

 

 

6

 

	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 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
      material adverse change in the financial condition of the Issuer 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
      financial condition or any development or occurrence in relation to the
      Issuer that would have a material adverse effect on the holders of the
      Notes or potential holders 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 change, development or
      occurrence.

 

 

	3.3  	
      The
      Issuer shall from time to time furnish to the Dealer such public
      information as the Dealer may reasonably request, 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.
  

 

 

7

 

	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.

 

 

	3.6  	
      The
      Issuer shall not issue Notes hereunder until the Dealer shall have
      received (a) an opinion of counsel to the Issuer, addressed to the Dealer,
      reasonably 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,
      reasonably 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 information which the Issuer possesses or can
      acquire without unreasonable effort or
expense.

 

 

	4.2  	
      Upon
      request of the Dealer, the Issuer agrees to promptly furnish the Dealer
      the 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. The Dealer agrees
      that, upon such notification, all solicitations and sales of Notes shall
      be suspended.

 

	(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

 

 

8

 

	  	
      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, 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
      other written 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. This
      indemnification shall not apply to the extent that the Claim arises out of
      or is based upon Dealer Information or that the Claim is determined by a
      court of competent jurisdiction to have resulted from an Indemnitee’s
      gross negligence or willful misconduct. 

 

 

	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

 

 

9

 

		
      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 in writing 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.

 

 

	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.

 

 

10

 

	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 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, 

 

 

11

 

	  	
      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 with the consent of the Issuer (which consent shall not be
      unreasonably withheld or delayed).

 

 

	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.

 

 

12

 

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

 

	
      CENDANT
      CORPORATION, as Issuer

       

       

      By: 
      /s/ David B. Wyshner 
	 	
      J.P.
      MORGAN SECURITIES INC., as Dealer

       

       

      By: 
      /s/ Johanna C. Foley 

	
      Name: David
      B. Wyshner 

      Title:
       Treasurer
      
	 	
      Name:
      Johanna C. Foley 

      Title: 
      Vice President 

 

 

13

 

Addendum

 

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

 

 

	1.  	
      The
      other dealers referred to in clause (b) of Section 1.2 of the Agreement
      are Banc of America Securities LLC and Citigroup Global Markets Inc.
      

 

 

	2.  	
      The
      addresses of the respective parties for purposes of notices under Section
      7.1 are as follows:

 

 

For the
Issuer: Cendant
Corporation

 

 

	
      Address:
	
      One
      Campus Drive 

      Parsippany, NJ 07054

Attention:
 Treasurer

 

Telephone
number: (973) 496-7938

Fax
number: (973) 496-5080

 

 

 

 

For the
Dealer: J.P.
Morgan Securities Inc. 

 

	
      Address:
	
      270
      Park Avenue, Floor 8

      New York, NY 10017

Attention:
 Short-Term
Fixed Income Origination 

 

 

Telephone
number: (212) 834-5543

Fax
number: (212) 834-6172

 

 

14

 

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.

 

15

 

Exhibit
B

 

Further
Provisions Relating to Indemnification

 

 

	
      (a)
	
      The
      Issuer agrees to reimburse each Indemnitee for all reasonable 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 any of its 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 reasonable 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 (not to be unreasonably withheld), 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 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.

 

 

16

 

Exhibit
C

 

Statement
of Terms for Interest - Bearing Commercial Paper Notes of Cendant
Corporation

 

 

THE
PROVISIONS SET FORTH BELOW ARE QUALIFIED TO THE EXTENT APPLICABLE BY THE
TRANSACTION SPECIFIC PRICING 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
minimis 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
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 

 

17

 

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.

 

 

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.

 

18

 

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.

 

 

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.

 

19

 

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 dealers 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.

 

 

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 

 

 

20

 

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 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 

 

21

 

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 page “3750” on Moneyline Telerate
(or such other page as may replace the 3750 page on that 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”.

 

 

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).

 

22

 

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

 

 

(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)

 

23

 

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 365 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
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.

 

 

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 supercede any conflicting term contained
herein.

 

24

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