Document:

AGREEMENT

 

EXHIBIT 10.2

CERTAIN PORTIONS OF THIS EXHIBIT

HAVE BEEN OMITTED AND FILED

SEPARATELY WITH THE SECURITIES

AND EXCHANGE COMMISSION PURSUANT

TO A REQUEST FOR CONFIDENTIAL

TREATMENT. THE SYMBOL “****”

HAS BEEN INSERTED IN PLACE

OF THE PORTIONS SO OMITTED.

CITIBANK — MASTERCARD AGREEMENT

This Agreement, dated as of the Effective Date (as defined below), and made by
and between Citibank, N.A., a national banking association, having its
principal place of business at 399 Park Avenue, New York, NY 10043; Citibank
(South Dakota), N.A., a national banking association having its principal place
of business at 701 East 60th Street North, Sioux Falls, SD 57117; Citibank
Canada, a Canadian chartered bank, having its principal place of business at
123 Front Street, Toronto, Ontario, M5C 2V6 Canada; Citibank USA, N.A., a
national banking association having its principal place of business at 701 East
60th Street North, Sioux Falls, SD 57117; Citibank International, an Edge Act
Bank chartered under the laws of the United States, having its principal place
of business at 201 South Biscayne Blvd, Suite 3300, Miami, FL 33131; Citibank,
F.S.B., a federal savings bank, having its principal place of business at 11800
Spectrum Center Drive, Reston, Virginia 20190; Citibank (West), FSB, a federal
savings bank, having its principal place of business at One Sansome Street, San
Francisco, California 94101 (the foregoing entities being individually and
collectively referred to herein as “Citibank”) and MasterCard International
Incorporated, a Delaware corporation having its principal place of business at
2000 Purchase Street, Purchase, New York 10557 (“MasterCard”);

WITNESSETH:

     WHEREAS, Citibank is licensed to issue Citibank MasterCard Cards (as
defined below) in the United States of America (“U.S.”), Canada, Puerto Rico,
and the United States Virgin Islands; and

     WHEREAS, MasterCard and Citibank (each a “Party” and together the
“Parties”) intend to enter into an arrangement regarding Citibank MasterCard
Cards;

     NOW, THEREFORE, in consideration of the mutual covenants and promises
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree as follows:

	 	 	SECTION I. DEFINED TERMS. The following terms shall have the following
meanings:

	 	A.	 	“Account” means the record, maintained by Citibank, of activity
with respect to any Card, without regard to the number of Cards
issued to Persons for use in making charges billed to the Card
Account.
	 
	 	B.	 	“Acquired Card Inclusion Agreement” has the meaning set forth
in Section VII.D.
	 
	 	C.	 	“Affiliate” shall mean, with respect to any Person, any other
Person that, directly or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common
control with, such Person. The term “control” (including, with its
correlative meanings, “controlled by” or “under common control with”)
means possession, directly or indirectly, of power to direct or cause
the direction of management

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	 	 	 	or policies (whether through ownership of securities or partnership or
other ownership interests, by contract or otherwise).
	 
	 	D.	 	“Agent Bank” shall mean a Card issuer or other entity engaged
in an agent banking relationship with Citibank.
	 
	 	E.	 	“Agreement” means this Citibank-MasterCard Agreement, including
any exhibits that are or may be appended hereto, as it may, from time
to time, be amended in accordance with Section VII.M hereof.
	 
	 	F.	 	“Applicable Law” means, with respect to any Person, any law
(including common law), ordinance, judgment, order, decree,
injunction, permit, statue, treaty, rule or regulation, regulatory
bulletin or guidance, regulatory examination, order or
recommendation, or determination of (or agreement with) an arbitrator
or a Governmental Authority, applicable to such Person.
	 
	 	G.	 	“Area of Use” means the U.S., Canada, Puerto Rico and the
United States Virgin Islands.
	 
	 	H.	 	“Card” means a Credit Card or Debit Card, any stored value card
or any other general purpose card (including a combined Credit Card
and Debit Card) issued by Citibank and branded by MasterCard or a
Competing Brand, and includes the Account number and all alternative
modes of access thereto (e.g., a convenience check or a virtual
card). “Card” shall also include a card issued by Citibank in the
U.S. or Canada that contains both the Diners Club brand and the
MasterCard brand on the front of such card. “Card” shall not include
any Enabled International Cards as defined in and issued pursuant to
the Diners Agreement.
	 
	 	I.	 	“Cardholder” means a Person obligated on a Card Account.
	 
	 	J.	 	“Citibank” has the meaning set forth in the preamble.
	 
	 	K.	 	“Citibank Active Account” means an Account for which there has
been a Cardholder purchase, cash advance, or other spending activity
within the three months prior to the date of measurement.
	 
	 	L.	 	“Citibank MasterCard Account” means an Account to which a
Citibank MasterCard Card has been issued.
	 
	 	M.	 	“Citibank MasterCard Active Account” means a Citibank
MasterCard Account for which there has been a Cardholder purchase,
cash advance, or other spending activity within the three months
prior to the date of measurement.
	 
	 	N.	 	“Citibank MasterCard Active Account Share” means, for any
period of calculation, the ratio of Citibank MasterCard Active
Accounts for such period of calculation to all Citibank Active
Accounts for such period of calculation, expressed as a percentage.
	 
	 	O.	 	“Citibank MasterCard Card” means a Card bearing one or more
names, logos, holograms, or service marks of MasterCard.
	 
	 	P.	 	“Citibank MasterCard Card GDV” means, for any period of
calculation, the aggregate amount of all GDV on all Citibank
MasterCard Cards issued in or to residents of the Area of Use, as
reported for such applicable period of calculation.
	 
	 	Q.	 	“Co-branded Card” means a Card that is issued pursuant to an
agreement between Citibank and any third party, which Card is issued
by Citibank under an affinity Card program that employs the
trademark, trade name, logotype, good will, good name, or reputation
of such third party and that provides a value proposition to the
Cardholder(s) via such affinity or branding relationship.

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	 	R.	 	“Competing Brand” shall mean any brand owned or licensed by
VISA, American Express, Discover, JCB, or any other brand that the
Parties reasonably and mutually determine to be in competition with
MasterCard.
	 
	 	S.	 	“Confidential Information” has the meaning set forth in Section
IV.A.
	 
	 	T.	 	“Core Services” shall consist of those services ****.
	 
	 	U.	 	“Credit Card” means a general purpose credit device, including
a charge card, a consumer credit card or a commercial credit card,
that can be used to access a line of credit, either to make purchases
or to effect cash advances, and that is maintained on behalf of the
cardholder by an issuer. “Credit Card” shall not include any Debit
Card.
	 
	 	V.	 	“Debit Card” means a general purpose debit device that can be
used to access a checking, savings, NOW, current, sight deposit or
share draft account or other prepaid deposit account which is
maintained by or on behalf of a cardholder with an issuer. “Debit
Card” shall not include any Credit Card or any on-line PIN-based
debit card (e.g. which does not require the signature of the
cardholder and there is an immediate deduction from the account of
the amount accessed effected by a single interbank message).
	 
	 	W.	 	“Defaulting Party” has the meaning set forth in Section VI.B.2.
	 
	 	X.	 	“Diners Agreement” means that certain agreement entered into by
and among MasterCard, Citibank USA, N.A. and certain Affiliates of
Citibank USA, N.A. named therein, dated March 31, 2004.
	 
	 	Y.	 	“Disclosing Party” has the meaning set forth in Section IV.A.
	 
	 	Z.	 	“Dispute” has the meaning set forth in Section VII.L.
	 
	 	AA.	 	“Effective Date” has the meaning set forth in Section VI.A.
	 
	 	BB.	 	“GDV” means, for any period of calculation, ****. Any activity
denominated in a currency other than U.S. dollars shall be converted
to U.S. dollars for purposes of GDV calculations in accordance with
MasterCard’s standard methodology, in effect from time to time.
	 
	 	CC.	 	“Governmental Authority” means any of the following with due
jurisdiction over this Agreement or either Party: (1) nation, state,
county, city, town, borough, village, district or other jurisdiction;
(2) federal, state, local, municipal, foreign or other government;
(3) governmental authority of any nature (including any agency,
branch, department, board, commission, court, tribunal or other
entity exercising due governmental powers); (4) multinational
organization or body; (5) body exercising, or entitled to exercise,
any administrative, executive, judicial, legislative, police,
regulatory or taxing authority or power; or (6) official of any of
the foregoing.
	 
	 	DD.	 	“Includes” or “including” means without limitation.
	 
	 	EE.	 	“Indemnified Parties” has the meaning set forth in Section VII.K.
	 
	 	FF.	 	“Indemnifying Party” has the meaning set forth in Section VII.K.
	 
	 	GG.	 	“Initial Instance Quarter” has the meaning set forth in Section II.A.5.a.
	 
	 	HH.	 	“Issuer Fees” means all fees and assessments that MasterCard
imposes on its Members from time to time, in respect of the gross
dollar volume on, and transactions using, MasterCard Debit Cards or
Credit Cards issued by such Members that are located in the Area of
Use. The term includes fees and assessments imposed in respect of
counterfeit cards, but does not include cross border or merchant
investment fees that are required to be collected at the time of, or
in connection with, interchange

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	 	 	 	revenue received by an issuer. “Issuer Fees” do not include any
component of foreign exchange calculations or revenues.
	 
	 	II.	 	“MasterCard” has the meaning set forth in the preamble.
	 
	 	JJ.	 	“MasterCard Rules” means the MasterCard Bylaws and Rules, dated
April 2004, and such other bylaws, rules, policies, procedures,
bulletins, memoranda, board of directors actions and other directives
as may be adopted, modified, supplemented, changed or rescinded by
MasterCard from time to time, to the extent the foregoing apply in
the Area of Use.
	 
	 	KK.	 	“MasterCard Standard Pricing” means, for any period of
calculation, the aggregate Issuer Fees for Core Services that, but
for this Agreement, would apply to Citibank in respect of Citibank
MasterCard Cards issued in or to residents of the Area of Use.
	 
	 	LL.	 	“MCBS” means the MasterCard Consolidated Billing System.
	 
	 	MM.	 	“Measurement Period” means each twelve (12) month period during
the Term that begins on the            Effective Date.
	 
	 	NN.	 	“Member” has the meaning ascribed to it in the MasterCard Rules.
	 
	 	OO.	 	“Party” and “Parties” have the meanings set forth in the recitals.
	 
	 	PP.	 	“Person” means any individual, corporation, partnership, joint
venture, association, joint stock company, trust, unincorporated
organization or other entity.
	 
	 	QQ.	 	“Quarterly Member Report” means the quarterly report required
to be filed by Members under the MasterCard Rules.
	 
	 	RR.	 	“Rebate” has the meaning set forth in Section II.A.6.
	 
	 	SS.	 	“Receiving Party” has the meaning set forth in Section IV.A.
	 
	 	TT.	 	“SEC” has the meaning set forth in Section IV.J.
	 
	 	UU.	 	“Target Percentage” has the meaning set forth in Section II.B.2.a.
	 
	 	VV.	 	“Term” has the meaning set forth in Section VI.A.
	 
	 	WW.	 	“True-Up Amount” has the meaning set forth in Section II.B.3.
	 
	 	XX.	 	“User-Pay Services” means all optional Member-specific,
customized, user-based or similarly optional services offered or
provided by MasterCard to a Member in respect of MasterCard Cards,
the costs of which services are charged to specific participating
Members, other than Core Services. “User-Pay Services” also includes
any services that MasterCard offers or provides in replacement for
any of the foregoing.
	 
	 	YY.	 	“VISA” means VISA U.S.A., Inc., VISA International, Inc. and
any Affiliate of VISA International, Inc., or their successors, that
authorize issuance in the Area of Use.

	 	 	SECTION II. BENEFITS. In consideration of Citibank’s full and timely
performance of its commitments and other obligations under this Agreement,
MasterCard will provide benefits to Citibank as follows:

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	 	A.	 	Quarterly Pricing Procedure. For each calendar quarter during
the Term, subject to the provisions of this Agreement, Issuer Fees
for Core Services for Citibank MasterCard Card GDV during such
calendar quarter shall be subject to the following ****:

	 	1.	 	If, for such calendar quarter, the Citibank
MasterCard Card GDV was greater than or equal to **** but less
than ****, then Citibank’s Issuer Fees for Core Services for
such calendar quarter shall be calculated as **** basis points
(****) times all Citibank MasterCard Card GDV for such calendar
quarter.
	 
	 	2.	 	If, for such calendar quarter, the Citibank
MasterCard Card GDV was greater than or equal to **** but less
than ****, then:

	 	a.	 	Citibank’s Issuer Fees for Core Services
for the first **** of Citibank MasterCard Card GDV for
such calendar quarter shall be calculated as **** basis
points (****) times such **** in Citibank MasterCard Card
GDV; and
	 
	 	b.	 	Citibank’s Issuer Fees for Core Services
for the incremental Citibank MasterCard Card GDV in excess
of **** for such calendar quarter shall be calculated as
**** basis points (****) times such incremental Citibank
MasterCard Card GDV.

	 	3.	 	If, for such calendar quarter, the Citibank
MasterCard Card GDV was greater than or equal to ****, then
Citibank’s Issuer Fees for Core Services for such calendar
quarter shall be calculated as **** basis points (****) times
all Citibank MasterCard Card GDV for such calendar quarter.
	 
	 	4.	 	If, for such calendar quarter, the Citibank
MasterCard Card GDV was greater than or equal to **** but less
than ****, then Citibank’s Issuer Fees for Core Services for
such calendar quarter shall be calculated in accordance with
the following:

	 	a.	 	Calculation of applicable rate in basis points (R) = ****÷
(x ÷ ****)
	 
	 	 	 	where “x” represents the actual Citibank MasterCard Card
GDV for such calendar quarter.
	 
	 	b.	 	Then Citibank’s Issuer Fees for Core
Services for such calendar quarter shall be calculated as
(R) (determined in accordance with Section II.A.4.a) times
all Citibank MasterCard Card GDV for such calendar
quarter.
	 
	 	c.	 	For example, if for such calendar quarter
the Citibank MasterCard Card GDV was equal to **** then
(i) the applicable rate would be **** basis points (****),
calculated as (****÷ (****÷ ****)) and (ii) Citibank’s
Issuer Fees for Core Services for such calendar quarter
would be calculated as **** times ****.

	 	5.	 	If, for such calendar quarter, the Citibank
MasterCard Card GDV was less than ****, then Citibank’s Issuer
Fees for Core Services for such calendar quarter shall be
calculated in accordance with the following:

	 	a.	 	The first time during the Term that the
Citibank MasterCard Card GDV for a calendar quarter is
less than **** (the “Initial Instance Quarter”) Citibank’s
Issuer Fees for Core Services for such calendar quarter
shall be calculated in accordance with Sections II.A.4.a
and II.A.4.b above.

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	 	b.	 	After the Initial Instance Quarter, for
any ensuing calendar quarter during the Term that the
Citibank MasterCard Card GDV for such calendar quarter is
less than ****, then Citibank’s Issuer Fees for Core
Services for such calendar quarter shall be mutually
agreed to by the Parties, provided, that if the Parties
cannot reach an agreement as to the alternative rate
within seven (7) days after MasterCard has received all
reports required by Section V for such calendar quarter
then the Issuer Fees for Core Services for such quarter
shall be calculated in accordance with MasterCard Standard
Pricing.

	 	6.	 	Notwithstanding the above, Citibank shall pay
MasterCard Standard Pricing on Citibank MasterCard GDV in
accordance with the MasterCard Rules; the applicable
alternative rates described above will be reflected in a rebate
(the “Rebate”) computed by MasterCard using the information
provided by Citibank pursuant to Section V. Within thirty (30)
days after MasterCard has received all reports required by
Section V for a calendar quarter, the Parties will promptly
arrange for such payments as are necessary to reflect the
application of the appropriate alternative rate, if any, to the
actual Citibank MasterCard Card GDV for such calendar quarter.
MasterCard shall make portions of each Rebate payment to
Citibank USA, N.A. and Citibank Canada by one of the following
means, as designated by Citibank: crediting the Citibank USA,
N.A. and Citibank Canada accounts in MCBS; wire transfer to an
account designated by Citibank; or such other payment method as
is reasonably requested by Citibank. The portion of the Rebate
payment to Citibank Canada shall be calculated based on the
equivalent portion of the GDV that is attributable to Citibank
MasterCard Cards issued by Citibank Canada. The remaining
Rebate payment shall be paid to Citibank USA, N.A. which shall
distribute all or a portion of such remaining amounts to the
other Citibank entities that are Parties as it may determine in
its reasonable discretion (and shall allocate to such Citibank
entities responsibility for any payments owed to MasterCard
pursuant to this Agreement in its reasonable discretion). The
procedures described in the previous three sentences shall also
be used for payments owed to Citibank pursuant to Section
II.B.3 below.
	 
	 	7.	 	Notwithstanding the above, ****.

	 	B.	 	Yearly True-Up Procedure. At the conclusion of each
Measurement Period, subject to the provisions of this Agreement, the
Parties shall review the Citibank MasterCard Card GDV during such
Measurement Period for the following purposes:

	 	1.	 	If, for such Measurement Period, the Citibank
MasterCard Card GDV was greater than or equal to ****, then the
Parties shall reconcile the Issuer Fees for Core Services paid
by Citibank for the four calendar quarters of such Measurement
Period pursuant to Section II.A above (including any Rebate
paid by MasterCard to Citibank) in accordance with the
following:

	 	a.	 	If, for such Measurement Period, the
Citibank MasterCard Card GDV was greater than or equal to
**** but less than ****, then Citibank’s Issuer Fees for
Core Services for such Measurement Period shall be
calculated as **** basis points (****) times all Citibank
MasterCard Card GDV for such Measurement Period.
	 
	 	b.	 	If, for such Measurement Period, the
Citibank MasterCard Card GDV was greater than or equal to
**** but less than ****, then:

	 	(i)	 	Citibank’s Issuer Fees for
Core Services for the first **** of Citibank
MasterCard Card GDV for such Measurement Period
shall be calculated as ****basis points (****) times
such **** in Citibank MasterCard Card GDV; and

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	 	(ii)	 	Citibank’s Issuer Fees for
Core Services for the incremental Citibank
MasterCard Card GDV in excess of **** for such
Measurement Period shall be calculated as **** basis
points (****) times such incremental Citibank
MasterCard Card GDV.

	 	c.	 	If, for such Measurement Period, the
Citibank MasterCard Card GDV was greater than or equal to
****, then Citibank’s Issuer Fees for Core Services for
such Measurement Period shall be calculated as ****basis
points (****) times all Citibank MasterCard Card GDV for
such Measurement Period.

	 	2.	 	If, for such Measurement Period, the Citibank
MasterCard Card GDV was less than ****, then the Parties shall
reconcile the Issuer Fees for Core Services paid by Citibank
for the four calendar quarters of such Measurement Period
pursuant to Section II.A above (including any Rebate paid by
MasterCard to Citibank) in accordance with the following:

	 	a.	 	If, for such Measurement Period, the
Citibank MasterCard Card GDV was greater than or equal to
**** but less than **** and during such Measurement Period
the Citibank MasterCard Active Account Share equaled or
exceeded **** (****%) (the “Target Percentage”), then
Citibank’s Issuer Fees for Core Services for such
Measurement Period shall be calculated as follows:

	 	(i)	 	Calculation of applicable rate in basis points (R) = **** ÷ (x ÷ ****)
	 
	 	 	 	where “x” represents the actual Citibank MasterCard
Card GDV for such Measurement Period.
	 
	 	(ii)	 	Then Citibank’s Issuer Fees
for Core Services for such calendar quarter shall be
calculated as (R) (determined in accordance with
Section II.B.2.a.(i)) times all Citibank MasterCard
Card GDV for such Measurement Period.
	 
	 	(iii)	 	For example, if for such
Measurement Period the Citibank MasterCard Card GDV
was equal to **** then (i) the applicable rate would
be **** basis points (****), calculated as (**** ÷
(**** ÷ ****)) and (ii) Citibank’s Issuer Fees for
Core Services for such Measurement Period would be
calculated as ****times ****.

	 	b.	 	If, for such Measurement Period, the
Citibank MasterCard Card GDV was greater than or equal to
**** but less than **** and during such Measurement Period
Citibank did not satisfy the Target Percentage, then
Citibank’s Issuer Fees for Core Services for such
Measurement Period shall be calculated as follows:

	 	(i)	 	Calculation of applicable
rate in basis points (R) = [(**** ÷ (x ÷ ****)) +
****]
	 
	 	 	 	where “x” represents the actual Citibank MasterCard
Card GDV for such Measurement Period.
	 
	 	(ii)	 	Then Citibank’s Issuer Fees
for Core Services for such calendar quarter shall be
calculated as (R) (determined in accordance with
Section II.B.2.b.(i)) times all Citibank MasterCard
Card GDV for such Measurement

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	 	 	 	Period.
	 
	 	(iii)	 	For example, if for such
Measurement Period the Citibank MasterCard Card GDV
was equal to **** and the Target Percentage was not
satisfied then (i) the applicable rate would be ****
basis points (****), calculated as [(**** ÷ (**** ÷
****)) + ****] and (ii) Citibank’s Issuer Fees for
Core Services for such Measurement Period would be
calculated as **** times ****.

	 	c.	 	If, for such Measurement Period, the
Citibank MasterCard Card GDV was less than ****, then
Citibank’s Issuer Fees for Core Services for such
Measurement Period shall be mutually agreed to by the
Parties, provided, that if the Parties cannot reach an
agreement as to the alternative rate within seven (7) days
after MasterCard has received all reports required by
Section V for such Measurement Period then the Issuer Fees
for Core Services for such Measurement Period shall be
calculated in accordance with MasterCard Standard Pricing.

	 	3.	 	Notwithstanding the above, during each calendar
quarter of such Measurement Period Citibank shall pay Issuer
Fees for Core Services on Citibank MasterCard GDV in accordance
with Section II.A; the applicable alternative rates described
in this Section II.B will be reflected in an annual rebate to
Citibank or annual payment to MasterCard, as applicable (the
“True-Up Amount”) computed by MasterCard using the information
provided by Citibank pursuant to Section V. Within thirty (30))
days after MasterCard has received all reports required by
Section V for such Measurement Period, the Parties will
promptly arrange for payment of the True-Up Amount to reflect
the application of the appropriate alternative rate, if any,
provided in this Section II.B to the actual Citibank MasterCard
Card GDV for such Measurement Period.

	 	 	SECTION III. COMMITMENTS. In consideration of MasterCard’s obligation
to provide benefits as provided in this Agreement, Citibank agrees to
observe the following commitments:

	 	A.	 	****.
	 
	 	B.	 	****.
	 
	 	C.	 	****.

	 	 	SECTION IV. CONFIDENTIALITY.

	 	A.	 	In General. The terms of this Agreement and all information
provided pursuant to or in connection with either Party’s
performance under this Agreement (“Confidential Information”) is
confidential and proprietary to the Party providing the Confidential
Information (“Disclosing Party”) to the other Party (“Receiving
Party”). Notwithstanding the foregoing, Confidential Information
shall not include information which: (i) is or hereafter becomes
part of the public domain through no fault of the Receiving Party;
(ii) is received from or furnished to a third party without similar
restriction on the third party’s rights; (iii) is independently
developed by the Receiving Party; or (iv) is disclosed pursuant to a
requirement of Applicable Law. If the Receiving Party asserts that
any exception set out in the preceding sentence allows the disclosure of any
Confidential Information, it shall promptly

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	 	 	 	submit to the Disclosing
Party written documentation demonstrating the applicability of the
claimed exception.
	 
	 	B.	 	Use. The Receiving Party shall not use any Confidential
Information provided by the Disclosing Party for any purposes other
than as permitted or required under this Agreement or the MasterCard
Rules.
	 
	 	C.	 	Disclosure. Without the express written consent of the
Disclosing Party, the Receiving Party shall not disclose or provide
access to any Confidential Information to any Person, with the
exception of disclosure to any Affiliate, agent, representative,
servant, contractor and employee that has a need to know, for the
purposes of complying with its obligations hereunder, the specific
Confidential Information, and that has agreed to keep confidential
such Confidential Information.
	 
	 	D.	 	Data Protection. The Receiving Party shall take reasonable
measures, using the same care taken by such Party to safeguard its
own confidential and proprietary information, to prevent disclosure
by its Affiliates, agents, representatives, servants, contractors
and employees of any Confidential Information.
	 
	 	E.	 	Post-Termination Obligations. Upon the conclusion of the Term,
the Receiving Party shall, upon reasonable request from the
Disclosing Party, return or destroy all Confidential Information
provided by the Disclosing Party, including any summaries thereof,
and all copies and duplicates thereof (in whatever form maintained),
except as may be otherwise required by Applicable Law.
	 
	 	F.	 	Remedies. The Parties acknowledge that the Confidential
Information provided by the Disclosing Party constitutes
confidential and proprietary information of the Disclosing Party and
that use or disclosure thereof by the Receiving Party or any
Affiliates, agents, representatives, servants, contractors or
employees of such Receiving Party, other than in accordance with the
express terms of this Agreement or as otherwise authorized in
writing by a senior officer of the Disclosing Party, constitutes a
material breach of the Agreement or, after the Term, of such
Disclosing Party’s continuing rights. In such event, the Parties
acknowledge that such Disclosing Party may be immediately and
irreparably harmed, that money damages may not provide full and
appropriate relief, and that, notwithstanding any other provision
hereof, such Disclosing Party may therefore immediately seek to
terminate this Agreement and obtain an order for appropriate
injunctive relief.
	 
	 	G.	 	Notice. Each Party shall notify the other immediately of any loss
or unauthorized disclosure or use of Confidential Information that
comes to such Party’s attention.
	 
	 	H.	 	Subpoenas, Etc. In the event that either Party receives a
subpoena, court order or other similar process purporting to require
it to disclose Confidential Information, it shall provide the other
Party with written notice and documentation thereof as soon as
practicable, and shall cooperate with the other Party in the event
that such other Party determines to seek a protective order or other
remedy with regard to such disclosure.
	 
	 	I.	 	No Public Announcement. Neither Party shall issue any public
announcements or make any published statements regarding this
Agreement or the subject matter hereof, without the prior written
consent of the other Party; provided however that the Parties shall
work together in good faith to develop mutually-agreed upon responses
to media inquiries concerning this Agreement.
	 
	 	J.	 	Confidential Treatment. If MasterCard or Citibank is required
to file this Agreement as an exhibit to any report or other filing
with the Securities and Exchange Commission (the “SEC”), such Party
shall file with the Secretary of the SEC an application requesting
confidential treatment of the Agreement pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended, at or about the time of
such filing, provided that no such filing shall be deemed to violate
this Section IV.

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	 	 	SECTION V. REPORTING AND AUDIT.

	 	A.	 	Citibank Reporting. Within fifteen (15) days following the close
of each calendar quarter during a Measurement Period and within
fifteen (15) days following the close of each Measurement Period,
Citibank will report information in accordance with the MasterCard
Rules in the Quarterly Member Report or such other reports as are
required by the MasterCard Rules. Citibank shall provide information
to MasterCard concerning Citibank Active Accounts on an as-needed
basis as required to effectuate this Agreement or under the
MasterCard Rules.
	 
	 	B.	 	MasterCard Audit Rights. MasterCard and its designated auditors
shall have the right to audit Citibank’s books and records to verify
all information supplied by Citibank pursuant to Section V.A.
MasterCard shall give Citibank not less than thirty (30) days prior
notice of the scope and nature of any such audit. Each audit shall
be conducted at MasterCard’s expense and shall be conducted at all
times so as to not unreasonably interfere with the normal business
and operations of Citibank. Subject to the foregoing, Citibank
shall cooperate, and cause the cooperation of its independent
auditors and other necessary personnel, in the conduct of each
audit. If an audit reveals that a Party has overpaid or underpaid
any sum owing hereunder, the Parties shall promptly arrange for such
payments as are necessary to correct the overpayment or underpayment
(exclusive of the time value of money).
	 
	 	C.	 	MasterCard Reporting. Each payment by MasterCard hereunder shall
be accompanied by adequate supporting documentation. If Citibank
reasonably requests additional supporting documentation, MasterCard
shall promptly fulfill such request.

	 	 	SECTION VI. TERM AND TERMINATION.

	 	A.	 	Term. Unless terminated earlier in accordance with the terms
hereof, the term of this Agreement will begin on January 1, 2004
(the “Effective Date”) and shall continue through December 31, 2013
(the “Term”).
	 
	 	B.	 	Termination. Either Party shall have the right to terminate this
Agreement immediately upon written notice to the other Party if:

	 	1.	 	The other Party fails to observe or perform any of
its material obligations under this Agreement, which failure is
not cured within thirty (30) days after notice of the failure,
or if cure cannot be effected in such time, then within such
additional time as is necessary to cure using commercially
reasonable efforts.
	 
	 	2.	 	The other Party (“Defaulting Party”): (a) admits
in writing its inability to pay its debts generally as they
become due; (b) becomes insolvent (whether by balance sheet
insolvency or a failure to meet its obligations in the ordinary
course); (c) makes an assignment for the benefit of its
creditors; (d) calls a meeting of creditors; (e) files any
voluntary petition in bankruptcy under the U.S. Bankruptcy
Code, under the laws of Puerto Rico or Canada, or under any
similar state, provincial or local bankruptcy or insolvency
laws, as in effect from time to time; (f) has an involuntary
petition in bankruptcy filed against it under any such law and
such petition is not discharged within sixty (60) days from the
date of filing; (g) consents to the appointment of a receiver
for all or a substantial portion of its property; and/or (h)
becomes subject to an order of a court of competent
jurisdiction assuming custody, attaching or sequestering all or
a material portion of the Defaulting Party’s property

10

 

	 	 	 	or
assets, which order is not suspended or terminated within sixty
(60) days from the inception thereof.

	 	 	SECTION VII. OTHER TERMS AND CONDITIONS.

	 	A.	 	Taxes. All payments, consideration and the value of
services made by the Parties under this Agreement shall be deemed
inclusive of all sales, use, excise, occupancy, income and similar
taxes, the sole obligation for reporting and remittance of which
shall be that of the Party to which the payment is made. For tax
purposes, the Parties agree to treat the Rebate as an adjustment to
the Issuer Fees payable to MasterCard under this Agreement, any
similar agreement or otherwise payable to MasterCard pursuant to
MasterCard Rules.
	 
	 	B.	 	MasterCard Assessments and Fees.

	 	1.	 	****.
	 
	 	2.	 	****.

	 	C.	 	Notices. Any notice, advice or other written information,
documentation or statement required or permitted to be given under
the Agreement shall be deemed duly given to a Party upon hand
delivery, upon receipt if sent by an international courier delivery
service of general commercial use and acceptance to the following
addresses or such other address as may hereafter be designated by
notice given by such Party, or upon delivery by e-mail or facsimile
transmission, so long as receipt of such delivery is evidenced in
writing:

	 	 	 	If to Citibank:
	 
	 	 	 	Address:
	 
	 	 	 	Chairman and CEO

Citicorp Credit Services, Inc.

One Court Square, Forty-First Floor

Long Island City, New York 11120
	 
	 	 	 	With a copy to:
	 
	 	 	 	Director, Association Management

Citicorp Credit Services, Inc.

One Court Square, Forty-First Floor

Long Island City, New York 11120
	 
	 	 	 	If to MasterCard:
	 
	 	 	 	Address:
	 
	 	 	 	Executive Vice President, Global Key Accounts

MasterCard International Incorporated

2000 Purchase Street

Purchase, NY 10577-2509

11

 

	 	 	 	With a copy to:
	 
	 	 	 	General Counsel

MasterCard International Incorporated

2000 Purchase Street

Purchase, NY 10577-2509
	 
	 	D.	 	Entire Agreement. This Agreement evidences the entire agreement
and understanding between the Parties with respect to the
transactions contemplated hereby in the Area of Use and supersedes
the following agreements as to the subject matter hereof: (i) the
agreement entered into among Citibank (South Dakota), N.A.,
MasterCard and certain other parties as of March 1, 1999 (the “Prior
Agreement”), (ii) the incentive agreement relating to Puerto Rico
entered into by Citibank International, MasterCard and certain other
parties as of December 18, 2003 and (iii) the incentive agreement
relating to Canada entered into by Citibank Canada and MasterCard as
of January 1, 2001. In addition, the Parties do not intend for this
Agreement, in any way, to supersede the agreement entered into by
MasterCard and Citibank USA, N.A. as of November 3, 2003 (the
“Acquired Card Inclusion Agreement”). The Parties intend for such
Acquired Card Inclusion Agreement to remain effective in accordance
with its terms for the stated duration therein. However, upon the
conclusion of the term thereof, any cards subject to such Acquired
Card Inclusion Agreement will be included in this Agreement for the
duration of the Term, subject to all the terms and conditions
contained herein.
	 
	 	E.	 	Release. The Parties acknowledge that as of the Effective Date
the Prior Agreement is terminated in its entirety and is of no
further force or effect whatsoever. Each Party hereby agrees and
acknowledges that as of the date of execution of this Agreement it
has received all payments and services due to it from the other Party
under the Prior Agreement pursuant to the terms thereof up to the
date of execution of this Agreement and that such payments and
services represent the full and complete satisfaction of any
liabilities that such Party may have with respect to such Prior
Agreement. In consideration of the execution of this Agreement and
the full and timely performance
of each Party’s obligations hereunder, MasterCard, Citibank and each
of their respective Affiliates, jointly and severally, release and
forever discharge each other and each other’s Affiliates from and
against any and all manner of actions, causes, causes of actions,
claims, suits, debts, controversies, damages, judgments,
liabilities, executions and demands whatsoever, whether asserted or
unasserted, suspected or unsuspected, known or unknown, foreseen or
unforeseen, actual or contingent, liquidated or unliquidated, in
law or in equity, which either Citibank, MasterCard or any of their
respective Affiliates may have against the other Party or any of the
other Party’s Affiliates, that arise out of, or are related in any
way to, the Prior Agreement (including under the MasterCard Rules
with respect to the Prior Agreement).
	 
	 	F.	 	Express Waiver. Neither MasterCard nor Citibank believe that
the relief provided in the decision and final judgment in United
States v. VISA U.S.A., et al., 98 Civ. 7076 (BSJ) would permit
Citibank to terminate its obligations under this Agreement. However,
in the event that a court of competent jurisdiction determines
otherwise, Citibank hereby explicitly waives any such right. In the
event that such waiver is not recognized by a court of competent
jurisdiction and Citibank rescinds its obligations under this
Agreement pursuant to such relief, Citibank hereby agrees to repay to
MasterCard all amounts received by it from MasterCard under this
Agreement prior to such rescission.
	 
	 	G.	 	Survival. Except as otherwise provided herein, the obligations
in Sections II and V shall survive for forty-five (45) days after the
conclusion of the Term; the obligations in Section VII.A shall
survive for the applicable statute of limitations period, plus thirty
(30) days; the rights and obligations in Section VII.B shall survive
through the payment of any Rebates or True-Up Amounts required

12

 

	 	 	 	thereby; and the obligations in Section IV and Sections VII.C through
VII.M shall survive any termination of this Agreement for a period of
five (5) years.
	 
	 	H.	 	Assignment. No Party may assign or otherwise convey this
Agreement, or any of its rights and obligations hereunder, to any
third party without the prior written consent of MasterCard and
Citibank, which may be withheld in such Party’s sole discretion, and
any such attempted assignment without consent shall be void;
provided, however, that, upon thirty (30) days prior written notice
to the other Party, any Party may assign or transfer this Agreement
in whole or in part to an Affiliate with reasonably sufficient or
comparable resources to perform the assigned provisions hereof. If
any Person acquires any interest in this Agreement or the subject
matter hereof in any manner, whether by voluntary or involuntary
transfer, operation of Applicable Law or otherwise, such interest
shall be held subject to all of the terms of the Agreement and by
taking or holding such interest, such Person shall be conclusively
deemed to have agreed to be bound by, and to comply with, all of the
terms and obligations of the Agreement, and the Parties shall use
commercially reasonable efforts to cause such Person to execute any
applicable documents to reflect the rights and obligations obtained
by such Person. All rights, remedies and obligations of the Parties
shall accrue or apply solely thereto or to their permitted successors
or assigns, and there is no intent to benefit or obligate any other
Person hereby.
	 
	 	I.	 	No Violation. Notwithstanding anything else contained in this
Agreement, neither MasterCard nor Citibank (nor any of their
respective Affiliates) shall, and none of them shall be obligated to,
take any action that such entity believes in good faith would
violate, or would cause any of them to violate, Applicable Law.
	 
	 	J.	 	Representations, Warranties and Covenants.

	 	1.	 	Each Party covenants, represents and warrants to
the other that on a continuing basis during the Term, and for
such additional period after the Term during which such Party
has not completed full performance of its obligations
hereunder, that: (i) it is duly organized, validly
existing and in good standing under Applicable Law and (ii) it
has full corporate power and authority to execute, deliver, and
perform this Agreement according to its terms, it possesses all
licenses, consents, and approvals required to do so, and the
execution, delivery, and performance of this Agreement have
been duly authorized by it.
	 
	 	2.	 	Each Party represents and warrants to the other
that as of the Effective Date there are no actions, suits, or
proceedings existing or pending against or affecting it before
any Governmental Authority which would have a material adverse
effect on its ability to perform its obligations hereunder
except for proceedings which it is contesting and challenging
in good faith and which it does not reasonably believe will
result in a final order or decree materially affecting its
ability to perform this Agreement.
	 
	 	3.	 	Citibank covenants, represents and warrants to
MasterCard on a continuing basis during the Term, and for such
additional period after the Term during which Citibank has not
completed full performance of its obligations hereunder, that
Citibank shall cause all Affiliates of Citibank that issue
Cards in the Area of Use to become Parties hereto.
	 
	 	4.	 	MasterCard covenants, represents and warrants to
Citibank on a continuing basis during the Term, and for such
additional period after the Term during which MasterCard has
not completed full performance of its obligations hereunder,
that in the event that Citibank causes an Affiliate of Citibank
to become a Party hereto pursuant to Section VII.J.3, then
MasterCard, subject to all the terms and conditions contained
in this Agreement, shall make available to such Affiliate the
enumerated benefits hereunder.

13

 

	 	K.	 	Indemnification. Each Party (the “Indemnifying Party”) agrees,
at its own expense, to defend, protect, indemnify, and hold the other
Party and its Affiliates, and any of their directors, officers,
employees and agents (the “Indemnified Parties”) harmless from and
against any action or threatened action, suit, claim or proceeding
(including regulatory actions), whether or not well grounded, arising
out of any alleged act or omission of the Indemnifying Party, its
employees, agents, and subcontractors relating to the subject matter
of this Agreement and against any and all expenses (including
reasonable attorney’s fees), judgments, fines, costs, amounts paid in
settlement or any loss or damage incurred by any of the Indemnified
Parties relating thereto. Each Party shall give prompt notice to the
other Party of any event or circumstances that it believes gives rise
to an obligation of indemnity, and the Parties shall cooperate with
each other in the defense and resolution thereof.
	 
	 	L.	 	Dispute Resolution. The Parties will endeavor in good faith to
promptly settle any disputes relating to this Agreement (each a
“Dispute”). If the appropriate members of each Party’s management
team cannot promptly settle a Dispute, senior executives from each
Party will try to resolve the dispute. If no resolution is reached
then either Party may submit the Dispute to the American Arbitration
Association for binding arbitration. The Party prevailing in such
arbitration shall be entitled to a recovery of its costs and
attorneys fees from the non-prevailing Party. Subject to Section
IV.F, the procedures included in this Section VII.L will be the
exclusive procedures for resolution of any and all Disputes.
	 
	 	M.	 	Miscellaneous. A failure or delay of either Party to enforce
any provision of or exercise any right under this Agreement shall not
be construed to be a waiver. No waiver by a Party shall be effective
unless expressly made in writing. If any provision of this Agreement
is held by a court (pursuant to Section IV.F) or an arbitrator to be
unenforceable or invalid in any respect, such unenforceability or
invalidity shall not affect any other provision of this Agreement,
and this Agreement shall then be construed as if such unenforceable
or invalid provisions had never been a part of this Agreement and the
Parties shall immediately commence negotiations in good faith to
reform this Agreement to make alternative provisions herein that
reflect the intentions and purposes of the severed provisions in a
manner that does not run afoul of the basis for such unenforceability
or invalidity. The captions in this Agreement are included for
convenience only and shall not affect the meaning or interpretation
of this Agreement. This Agreement may be amended or modified only
in a written agreement signed by all Parties. This Agreement shall
be binding upon, and inure to the benefit of, each Party’s
respective successors and assigns. This Agreement and the respective
rights and obligations of the Parties shall be governed by the laws
of the State of New York without reference to its conflict-of-laws
or similar provisions that would mandate or permit application of
the substantive Applicable Law of any other jurisdiction. This
Agreement may be executed in one or more counterparts, each of
which, taken together, shall constitute but one original document.
Citibank’s obligations under this Agreement supplement (and do not
replace) Citibank’s obligations under the MasterCard Rules.

(one signature page follows)

14

 

     IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on this    
day of May, 2004.

	 	 	 
	MASTERCARD INTERNATIONAL INCORPORATED

	 	CITIBANK (SOUTH DAKOTA), N.A.
	/s/ Alan Heurer
	 	/s/ Douglas C. Morrison
	

	 	

	By:
Alan Heurer

	 	By: Douglas C. Morrison
	Title:

	 	Title: Chief Financial
Officer/O&T
	Date:

	 	Date:
	 
	 	 
	CITIBANK, N.A.

	 	CITIBANK USA, N.A.
	/s/
Maryanne Mayner
	 	/s/ Douglas C. Morrison
	

	 	

	By:
Maryanne Mayner

	 	By: Douglas C. Morrison
	Title:

	 	Title: Chief Financial
Officer/O&T
	Date:

	 	Date:
	 
	 	 
	CITIBANK CANADA

	 	CITIBANK INTERNATIONAL
	/s/
Martin Johansson
	 	/s/ Miguel A. Cervoni, CFA
	

	 	

	By:
Martin Johansson

	 	By: Miguel A. Cervoni
	Title:
Chief Executive Officer

	 	Title: President
	Date:

	 	Date:
	 
	 	 
	CITIBANK, F.S.B.

	 	CITIBANK (WEST), FSB
	/s/
Paul D. Burner
	 	/s/ Michael Washington
	

	 	

	By:
Paul D. Burner

	 	By: Michael Washington
	Title:
CFO-CBNA

	 	Title:
	Date:

	 	Date:

15<PAGE>

                                                                    EXHIBIT 4(a)

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST
COMPANY (THE "SECURITIES DEPOSITORY") TO A NOMINEE OF THE SECURITIES DEPOSITORY
OR BY THE SECURITIES DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR
A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE SECURITIES DEPOSITORY, TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE SECURITIES DEPOSITORY (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE SECURITIES DEPOSITORY), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH
AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

No.                                                                $250,000,000
CUSIP: 428040 BV 0
ISIN: US428040BV07
Common Code: 019844994

                              THE HERTZ CORPORATION
                     Floating Rate Notes due August 5, 2008

Original Issue Date: August 5, 2004
Interest Payment Dates: February 5, May 5, August 5 and November 5
Maturity Date: August 5, 2008
Interest Rate: 3-month LIBOR, reset quarterly, plus 1.20%

      THE HERTZ CORPORATION, a Delaware corporation (hereinafter called the
"Company", which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE &
CO., or registered assigns, the principal sum of $250,000,000 (the "Principal
Amount") on the Maturity Date shown above, except as provided below, and to pay
interest thereon at the rate per annum shown above. The Company will pay
interest quarterly on the Interest Payment Dates, commencing November 5, 2004.
Interest on this Note shall be calculated on the basis of a 360-day year and the
actual number of days elapsed during the related Interest Period. Interest
payable on any Interest

<PAGE>

Payment Date will include interest accrued from, and including, the most recent
date to which interest has been paid or, if no interest has been paid, from the
Original Issue Date shown above to, but excluding, such Interest Payment Date or
Maturity Date, or date of earlier redemption, as the case may be (an "Interest
Period"). The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Note (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the fifteenth calendar day (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for shall forthwith cease to be
payable to the registered Holder on such Regular Record Date, and may be paid to
the Person in whose name this Note (or one or more Predecessor Securities) is
registered on a Special Record Date for the payment of such Defaulted Interest
to be fixed by the Company, notice whereof shall be given to holders of Notes
not less than 15 calendar days prior to such Special Record Date, or may be paid
at any time in any other lawful manner not inconsistent with the requirements of
any securities exchange upon which the Notes may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in such
Indenture.

      The initial rate of interest on the Notes is 2.90%. The rate of interest
on the Notes will be reset on February 5, May 5, August 5 and November 5 of each
year, commencing November 5, 2004 (each such date being referred to as an
"Interest Reset Date"). If any Interest Reset Date would otherwise be a day that
is not a Business Day, that Interest Reset Date will be postponed to the next
succeeding Business Day, except if that Business Day falls in the next
succeeding calendar month, that Interest Reset Date will be the immediately
preceding Business Day. The Trustee will determine 3-month LIBOR on the second
London Banking Day (as defined below) preceding the related Interest Reset Date
(each such date being referred to as an "Interest Determination Date").

      "3-month LIBOR" means with respect to any Interest Period:

      (a) the rate for three-month deposits in United States dollars commencing
on the related Interest Reset Date, that appears on the Moneyline Telerate Page
3750 as of 11:00 AM London time, on the Interest Determination Date, or

      (b) if no rate appears on the particular Interest Determination Date on
the Moneyline Telerate Page 3750 (as defined below), the rate calculated by the
Trustee as the arithmetic mean of at least two offered quotations obtained by
the Trustee after requesting the principal London offices of each of four major
reference banks in the London interbank market to provide the Trustee with its
offered quotation for deposits in United States dollars for the period of three
months, commencing on the related Interest Reset Date, to prime banks in the
London interbank market at approximately 11:00 AM London time on that Interest
Determination Date and in a principal amount that is representative for a single
transaction in United States dollars in that market at that time, or

      (c) if fewer than two offered quotations referred to in clause (b) are
provided as requested, the rate calculated by the Trustee as the arithmetic mean
of the rates quoted at approximately 11:00 AM New York time, on the particular
Interest Determination Date by three major banks in The City of New York
selected by the Trustee for loans in United States dollars

                                       3

<PAGE>

to leading European banks for a period of three months and in a principal amount
that is representative for a single transaction in United States dollars in that
market at that time, or

      (d) if the banks so selected by the Trustee are not quoting as mentioned
in clause (c), 3-month LIBOR in effect on the particular Interest Determination
Date.

      "Moneyline Telerate Page 3750" means the display on Moneyline Telerate (or
any successor service) on such page (or any other page as may replace such page
on such service) for the purpose of displaying the London interbank rates of
major banks for United States dollars.

      "London banking day" means a day on which commercial banks are open for
business, including dealings in United States dollars, in London.

      In the event this Global Note is surrendered in exchange for Notes in
definitive form, principal and interest payable with respect to Notes in
definitive form will be payable at the office or agency of the Company
maintained for that purpose in New York, New York (the Place of Payment), in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however, that
payment of interest payable with respect to such Notes in definitive form, may
be made at the option of the Company by check mailed to the address of the
Person entitled thereto as such address shall appear on the Security Register.

      This Note is one of a duly authorized issue of securities of the Company
(herein referred to as the "Securities") evidencing its unsecured indebtedness,
of the series hereinafter specified, all issued under and pursuant to an
indenture, dated as of March 16, 2001, (herein referred to as the "Indenture"),
duly executed and delivered by the Company and The Bank of New York, as Trustee
(hereinafter called the "Trustee"), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and Holders of the Securities. The Securities may be issued
in one or more series, which different series may be issued in various aggregate
principal amounts, may mature at different times, may bear interest, if any, at
different rates, may be subject to different redemption provisions, if any, may
be subject to different sinking, purchase or analogous funds, if any, may be
subject to different covenants and Events of Default and may otherwise vary as
provided in the Indenture. This Note is one of the series designated as the
Floating Rate Notes due August 5, 2008 of the Company (herein referred to as the
"Notes"), limited except as provided in the Indenture to the aggregate principal
amount of two hundred-fifty million dollars ($250,000,000). The Company may,
without the consent of the Holder hereof, create and issue additional securities
ranking pari pasu with the Notes of this series in all respects and so that such
additional securities shall be consolidated and form a single series having the
same terms as to status, redemption or otherwise as the Notes initially issued.
No additional securities may be issued if an Event of Default has occurred.

      The Notes are not entitled to any sinking fund.

      The Company may not redeem the Notes, in whole or in part, at its option
at any time prior to the Maturity Date, except upon the occurrence of certain
tax events as described below.

                                       4

<PAGE>

            The Company will, subject to the exceptions and limitations set
forth below, pay as additional interest on the Notes of this series such
additional amounts as are necessary in order that the net payment by the Company
or a Paying Agent of the principal of and interest thereon in respect of any
beneficial owner thereof who is a non-United States person, after deduction for
any present or future tax, assessment or governmental charge of the United
States or a political subdivision or taxing authority thereof or therein,
imposed by withholding with respect to the payment, will not be less than the
amount provided in the Notes of this series in respect of such beneficial owner,
to be then due and payable; provided, however, that the foregoing obligation to
pay additional amounts shall not apply:

            (1)   to a tax, assessment or governmental charge that is imposed or
      withheld solely by reason of the beneficial owner of any portion of the
      Notes of this series, or a fiduciary, settlor, beneficiary, member or
      shareholder of such beneficial owner if such beneficial owner is an
      estate, trust, partnership or corporation, or a person holding a power
      over an estate or trust administered by a fiduciary holder, being
      considered as:

            (a)   being or having been present or engaged in trade or
            business in the United States or having or having had a permanent
            establishment in the United States;

            (b)   having a current or former relationship with the United
            States, including a relationship as a citizen or resident thereof;

            (c)   being or having been a foreign or domestic personal holding
            company, a passive foreign investment company or a controlled
            foreign corporation with respect to the United States or a
            corporation that has accumulated earnings to avoid United States
            federal income tax; or

            (d)   being or having been a "10-percent shareholder" of the Company
            as defined in Section 871(h)(3) of the United States Internal
            Revenue Code or any successor provision;

            (2)   to any holder of the Notes of this series that is not the sole
      beneficial owner of any Note of this series, or portion thereof, or that
      is a fiduciary or partnership, but only to the extent that a beneficiary
      or settlor with respect to the fiduciary, or a beneficial owner or member
      of the partnership would not have been entitled to the payment of an
      additional amount had the beneficiary, settlor, beneficial owner or member
      received directly its beneficial or distributive share of the payment;

            (3)   to a tax, assessment or governmental charge that is imposed or
      withheld by reason of the failure of the holder of any portion of the
      Notes of this series or any other person to comply with the certification,
      identification or information reporting requirements concerning the
      nationality, residence, identity or connection with the United States of
      the holder or the beneficial owner of any portion of the Notes of this
      series, if compliance is required by statute or by regulation of the
      United States Treasury Department or by an applicable income tax treaty to
      which the United States is a party as a precondition to exemption from
      such tax, assessment or other governmental charge;

                                       5

<PAGE>

            (4)   to a tax, assessment or governmental charge that is imposed
      otherwise than by withholding by the Company or a Paying Agent from the
      payment;

            (5)   to a tax, assessment or governmental charge that is imposed or
      withheld solely by reason of a change in law, regulation, or
      administrative or judicial interpretation that becomes effective more than
      15 days after the payment becomes due or is duly provided for, whichever
      occurs later;

            (6)   to any estate, inheritance, gift, sales, excise, transfer,
      wealth or personal property tax or a similar tax, assessment or
      governmental charge;

            (7)   to any tax, assessment or other governmental charge required
      to be withheld by any Paying Agent from any payment of principal of or
      interest on any Notes of this series, if such payment can be made without
      such withholding by any other paying agent;

            (8)   to any tax, assessment or governmental charge required to be
      withheld or deducted where such withholding or deduction is imposed on a
      payment to an individual and is required to be made pursuant to any
      European Union Directive on the taxation of savings or any law
      implementing or complying with, or introduced in order to conform to, such
      directive; or

            (9)   in the case of any combination of items (1), (2), (3), (4),
      (5), (6), (7) and (8).

      The Notes of this series are subject in all cases to any tax, fiscal or
other law or regulation or administrative or judicial interpretation applicable
thereto. Except as specifically provided herein, the Company shall not be
required to make any payment with respect to any tax, assessment or governmental
charge imposed by any government or a political subdivision or taxing authority
thereof or therein.

      If (a) as a result of any change in, or amendment to, the laws (or any
regulations or rulings promulgated thereunder) of the United States, or any
change in, or amendments to, official position regarding the application or
interpretation of such laws, regulations or rulings, which change or amendment
is announced or becomes effective on or after July 29, 2004, the Company becomes
or will become obligated to pay additional amounts as described above with
respect to any Notes of this series or (b) any act is taken by a taxing
authority of the United States on or after July 29, 2004, whether or not such
act is taken with respect to the Company or any affiliate, that results in a
substantial probability that the Company will or may be required to pay such
additional amounts with respect to any Notes of this series, then the Company
may, at its option, redeem, as a whole, but not in part, all of the Notes of
this series on not less than 30 nor more than 60 days' prior notice, at a
redemption price equal to 100% of their principal amount, together with interest
accrued thereon to the date fixed for redemption, provided that the Company
determines, in its business judgment, that the obligation to pay such additional
amounts cannot be avoided by the use of reasonable measures available to it, not
including substitution of the obligor under the Notes of this series. No
redemption pursuant to (b) above may be made unless the Company shall have
received an opinion of independent counsel to the

                                       6

<PAGE>

effect that an act taken by a taxing authority of the United States results in a
substantial probability that it will or may be required to pay the additional
amounts described above and the Company shall have delivered to the Trustee a
certificate, signed by a duly authorized officer, stating that based on such
opinion the Company is entitled to redeem the Notes of this series pursuant to
their terms. Unless the Company defaults in payment of the redemption price on
the redemption date, interest will cease to accrue on the Notes of this series
on and after the redemption date.

      As used herein, the term "United States" means the United States of
America (including the States and the District of Columbia), and its
territories, its possessions and other areas subject to its jurisdiction; the
term "United States person" means an individual who is a citizen or resident of
the United States, a corporation or partnership (or other entity treated as a
partnership or corporation for federal income tax purposes) created or organized
in or under the laws of the United States, any state thereof or the District of
Columbia (other than a partnership that is not treated as a United State person
under the applicable Treasury regulations), any estate the income of which is
subject to United States federal income taxation regardless of its source, or
any trust if a court within the United States is able to exercise primary
supervision over the administration of the trust and one or more United States
persons have the authority to control all substantial decisions of the trust.
Notwithstanding the preceding sentence, to the extent provided in the Treasury
regulations, certain trusts in existence on August 20, 1996, and treated as
United States persons prior to such date that elect to continue to be treated as
United States persons will also be a United States person; and "non-United
States person" means a person who is not a United States person.

      Notices with respect to the Notes of this series will be published in
newspapers in The City of New York and in London. It is expected that
publication will be made in the City of New York in The Wall Street Journal and
in London in the Financial Times. Any such notice shall be deemed to have been
given on the date of such publication or, if published more than once, on the
date of the first such publication.

      In case an Event of Default, as defined in the Indenture, with respect to
the Notes shall have occurred and be continuing, the principal hereof may be
declared, and upon such declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.
The Indenture provides that in certain events such declaration and its
consequences may be waived by the Holders of a majority in aggregate principal
amount of the Notes then Outstanding. Any such waiver by the Holder of this Note
(unless revoked as provided in the Indenture) shall be conclusive and binding
upon such Holder and upon all future Holders and owners of this Note and of any
Note issued upon the transfer hereof or in exchange or substitution herefor,
irrespective of whether or not any notation of such waiver is made upon this
Note or such other Notes.

      The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the Holders of not less than a majority in aggregate
principal amount of all Outstanding Securities or, in certain cases, of the
Outstanding Securities of each series to be affected, evidenced as in the
Indenture provided, to execute supplemental indentures adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture
or of any supplemental indenture or modifying in any manner the rights of the
Holders of the

                                       7

<PAGE>

Securities of each such series; provided, however, that no such supplemental
indenture shall (i) change the Stated Maturity of the principal of, or any
installment of principal or interest on, any Security, or reduce the principal
amount thereof or the rate of interest, if any, thereon, or any premium payable
upon the redemption thereof, or reduce the amount of the principal of a
Discounted Security that would be due and payable upon a declaration of the
Maturity thereof, or change the coin or currency in which any Security or the
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date) or (ii) reduce the
percentage in principal amount of the Outstanding Securities or the Outstanding
Securities of any particular series, the consent of whose Holders is required
for any such supplemental indenture, or the consent of whose Holders is required
for any waiver of compliance with certain provisions of the Indenture or certain
defaults thereunder or their consequences provided for in the Indenture. It is
also provided in the Indenture that prior to the acceleration of maturity of the
Securities of any particular series upon the occurrence of an Event of Default
with respect to such series as permitted by the Indenture, the Holders of a
majority in aggregate principal amount of the Securities of such series at the
time Outstanding may on behalf of the Holders of all of the Securities of such
series waive any past default under the Indenture with respect to Securities of
such series and its consequences, except a default in the payment of the
principal of or premium, if any, or interest, if any, on any of the Securities
of such series. Any such consent or waiver by the Holder of this Note (unless
revoked as provided in the Indenture) shall be conclusive and binding upon such
Holder and upon all future Holders and owners of this Note and of any Note
issued upon transfer hereof or in exchange or substitution herefor, irrespective
of whether or not any notation of such consent or waiver is made upon this Note
or such other Notes.

      No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the time, place and rate, and in the coin or currency, as prescribed herein and
in the Indenture.

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registrable by the Holder hereof on the
Security Register of the Company, upon due presentment of this Note for
registration of transfer at the office of the Security Registrar, or at the
office of any Security Co-Registrar duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to, the Company and the
Security Registrar or any such Security Co-Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Notes of authorized denominations and for the same aggregate principal
amount will be issued to the designated transferee or transferees.

      The Notes are issuable only as registered Notes without coupons in
denominations of $1,000 and integral multiples of $1,000 in excess thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Notes are exchangeable for new Notes of any authorized denominations of the same
aggregate principal amount as requested by the Holder surrendering the same. If
(x) the Securities Depository is at any time unwilling or unable to continue as
securities depository and a successor depository is not appointed by the Company
within 60 days, (y) the Company executes and delivers to the Trustee a Company
Order to the effect that this Note shall be exchangeable or (z) an Event of
Default has occurred and is

                                       8

<PAGE>

continuing with respect to the Notes, this Note shall be exchangeable for Notes
in definitive form of like tenor and of an equal aggregate principal amount, in
denominations of $1,000 and integral multiples of $1,000 in excess thereof. Such
definitive Notes shall be registered in such name or names as the Securities
Depository shall instruct the Trustee. If definitive Notes are so delivered, the
Company may make such changes to the form of this Note as are necessary or
appropriate to allow for the issuance of such definitive Notes.

      No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      Prior to due presentment for registration of transfer, the Company, the
Trustee, the Security Registrar, any Security Co-Registrar and any agent of the
Company or the Trustee may treat the Person in whose name this Note is
registered as the absolute owner hereof for all purposes, whether or not this
Note be overdue, and neither the Company, the Trustee, the Security Registrar,
any Security Co-Registrar nor any such agent shall be affected by notice to the
contrary.

      The Holder of this Note shall not have recourse for the payment of
principal of or interest on this Note or for any claim based on this Note or the
Indenture against any director, officer or stockholder, past, present or future,
of the Company. By acceptance of this Note, the Holder waives any such claim
against any such Person.

      The Indenture and this Note shall be governed by and construed in
accordance with the laws of the State of New York.

      All terms used but not defined in this Note which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

      Unless the certificate of authentication hereon has been executed by the
Trustee under such Indenture, this Note shall not be entitled to any benefit
under such Indenture or be valid or obligatory for any purpose.

                                       9

<PAGE>

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
manually or in facsimile, and a facsimile of its corporate seal to be imprinted
hereon.

Dated:  August 5, 2004

                                      THE HERTZ CORPORATION

                                      By:______________________________________
                                                      Treasurer

                                      Attest:__________________________________
                                                     Assistant Secretary

[SEAL]

Dated:  August 5, 2004

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Securities of
the series designated herein,
issued under the Indenture
described herein.

THE BANK OF NEW YORK, as Trustee

By:__________________________________
        Authorized Signatory

                                       10

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