AMENDMENT TO THE TAX SHARING
AGREEMENT
This
Amendment, executed July 8, 2008 and effective as of
July 28, 2006 (this “ Amendment ”),
to the Tax Sharing Agreement, entered into as of July 28, 2006
(as may be amended from time to time, the “
Agreement ”), by and between Avis Budget Group,
Inc., a Delaware corporation, formerly known as Cendant Corporation
(“ Cendant ”), Realogy Corporation, a
Delaware corporation (“ Realogy ”),
Wyndham Worldwide Corporation, a Delaware corporation (“
Wyndham ”) and Travelport Inc., a Delaware
corporation (“ Travelport ”). Capitalized
terms used but not defined herein shall have the meanings ascribed
to them in the Agreement.
WHEREAS , Section 13.6 of the Agreement provides that
no amendment to the Agreement shall be effective unless it shall be
in writing and signed by each Party to the Agreement;
WHEREAS , Section 1.3(c)(ii) of the Agreement provides
that if a Travelport Sale occurs, any and all rights and
obligations of and to Travelport pursuant to the Agreement will be
terminated and deemed null and void and be of no further force or
effect;
WHEREAS , Travelport was sold to TDS Investor Corporation,
formerly known as TDS Investor LLC, pursuant to the Purchase
Agreement, dated as of June 30, 2006, as amended on
August 23, 2006, between Cendant and Travelport, on the one
hand, and TDS Investor Corporation, on the other hand;
and
WHEREAS , Cendant, Realogy and Wyndham (together, the
“Parties”) wish to amend the Agreement as provided in
this Amendment.
NOW, THEREFORE , in consideration of the mutual premises and
covenants set forth herein and for other good and valuable
consideration, the receipt and adequacy of which are hereby
acknowledged, and intending to be legally bound, the Parties hereby
agree as follows:
1.
Amendment to Section 1.1 . Section 1.1 of the
Agreement is hereby amended by adding the following defined term
after subsection (11).
“(11A)
“ Assume ” has the meaning set forth in
Section 3.1 .”
2.
Amendment to Section 1.1 . Section 1.1 of the
Agreement is hereby amended by adding the following defined term
after subsection (12).
“(12A)
“ Avis Australia ” means Avis Management Pty.
Ltd.
3.
Amendment to Section 1.1(15) (definition of “CCRG
Audit Sharing Percentage”) . Section 1.1(15) of the
Agreement is hereby amended as follows:
(a) Delete
“and” at the end of subsection (i)(II).
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(b) Add
“and” at the end of subsection (i)(III).
(c) Add
new subsection (i)(IV) which shall state “the aggregate
amount of disallowed deduction, loss or credit directly
attributable to any (x) election by or on behalf of Avis
Australia and any Subsidiary thereof that is engaged in the Vehicle
Rental Business to claim accelerated depreciation for Australian
Income Tax purposes or (y) any Refund received by Cendant
pursuant to Section 4.1(e).”
4.
Amendment to Section 1(16) (definition of “CCRG
Entities”) . Section 1.1(16) is hereby amended as
follows:
(a) Delete
“.” at the end of such definition.
(b) Add
“and Avis Australia and its Subsidiaries that are engaged in
the Vehicle Rental Business, provided , however ,
that solely for purposes of Income Taxes for the taxable years
ended December 31, 2005 and December 31, 2006, Avis
Australia and such Subsidiaries shall not be treated as CCRG
Entities.”
5.
Amendment to Section 1.1(31) (definition of “Cendant
Shared Entities”) . Section 1.1(31) of the Agreement is
hereby amended as follows:
(a) Delete
“and” at the end of subsection (iii).
(b) Delete
“.” at the end of subsection (iv) and insert
“; and”
(c) Add
subsection (v), which shall state “Avis Australia and its
Subsidiaries that are engaged in the Vehicle Rental Business,
provided , however , that Avis Australia and such
Subsidiaries shall be treated as Cendant Shared Entities solely for
purposes of Income Taxes for the taxable years ended
December 31, 2005 and December 31,
2006.”
6.
Amendment to Section 1.1 . Section 1.1 of the
Agreement is hereby amended by adding the following defined terms
after subsection (45).
“(45A)
“ Excess 2006 Avis Australia Income Tax Refund ”
shall mean, with respect to the taxable year ended
December 31, 2006 of Avis Australia and its Subsidiaries that
are engaged in the Vehicle Rental Business, the excess, if any, of
(i) the amount of the Refund for Income Taxes received by Avis
Australia and such Subsidiaries for such taxable year over
(ii) the amount of the Refund for Income Taxes, if any, that
hypothetically would have been received by Avis Australia and such
Subsidiaries for such taxable year assuming (x) that Avis
Australia and such Subsidiaries did not elect to claim accelerated
depreciation for Australian Income Tax purposes for such year and
(y) the same facts and using the same methods, rate(s),
elections (other than the election to claim accelerated
depreciation), conventions and practices used in determining the
actual Income Tax liability of Avis Australia and such Subsidiaries
and the amount of such Refund for such Income Taxes for such
taxable year set forth in clause (i) of this
definition.
7.
Amendment to Section 1.1(98) . Section 1.1(98)
(definition of “Pre-2007 Shared Entity Audit Other
Adjustments”) of the Agreement is hereby amended as
follows:
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(a) Delete
subsection (i), and
(b) Add
new subsection (i) which shall state:
“the
aggregate amount of income and gain set forth in clause (i)(I), the
aggregate amount of disallowed deduction, loss or credit (and
increased income and gain) set forth in clause (i)(II), the
aggregate amount of income and gain (and disallowed deduction, loss
or credit) set forth in clause (i)(III), and the aggregate amount
of disallowed deduction, loss or credit set forth in clause
(i)(IV), of the definition of the defined term “CCRG Audit
Sharing Percentage”
8.
Amendment to Section 1.1(99) . Section 1.1(99)
(definition of “Pre-2007 Shared Entity Audit Tax
Amount”) of the Agreement is hereby amended by adding the
following sentence at the end of such definition:
“For the
avoidance of doubt, Pre-2007 Shared Entity Audit Tax Amount shall
include any additional amount of Tax required to be paid (including
the disallowance of a Refund) resulting from the disallowance of
any deduction, loss or credit directly attributable to any election
by or on behalf of Avis Australia and any Subsidiary thereof that
is engaged in the Vehicle Rental Business to claim accelerated
depreciation for Australian Income Tax purposes.”
9.
Amendment to Section 2.1 . The second sentence of
Section 2.1(a)(i) is hereby replaced and amended in its
entirety with the following:
“Such
Pre-2007 Cendant Shared Entity Tax Returns shall be prepared in a
manner consistent with the past practice of each Cendant Shared
Entity unless otherwise required by applicable Law, provided
, however , that Cendant shall be permitted to file Income
Tax Returns fo
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