Exhibit 1.01 TERMS AGREEMENT September 14, 1995 Travelers Group Inc. 388 Greenwich Street, 20th Floor New York, New York 10013 Attention: Chief Financial Officer ----------------------- Dear Sirs: We understand that Travelers Group Inc., a Delaware corporation (the "Company"), proposes to issue and sell $150,000,000 aggregate principal amount of its debt securities (the "Securities"). Subject to the terms and conditions set forth herein or incorporated by reference herein, the underwriters (the "Underwriters"), for whom CS First Boston Corporation, PaineWebber Incorporated and Citicorp Securities, Inc. are acting as representatives, offer to purchase the Securities at 98.930% of the principal amount thereof, together with accrued interest thereon from September 15, 1995 to the date of payment and delivery. The Closing Date shall be September 19, 1995 at 8:30 A.M. at the offices of the Company, 388 Greenwich Street, 20th Floor, New York, New York 10013. The Securities shall have the following terms: Title: 6-5/8% Notes due September 15, 2005 Maturity: September 15, 2005 Interest Rate: 6-5/8% Interest Payment Dates: March 15 and September 15, commencing March 15, 1996 Regular Record Dates: February 28 and August 31 Initial Price to Public: 99.552% of the principal amount thereof plus accrued interest from September 15, 1995 to the date of payment and delivery Redemption Provisions: The Securities are not redeemable by the Company prior to maturity. Additional terms: The provisions of Section 11.03 and 11.04 of the Indenture relating to defeasance shall apply to the Securities. The Securities shall be issuable as Registered Securities only. Principal and interest on the Securities shall be payable in United States dollars. The Securities will be initially represented by one or more global Securities registered in the name of The Depository Trust Company ("DTC") or its nominee. Beneficial interests in the Securities will be shown on, and transfers thereof will be effected only through, records maintained by DTC and its participants. Owners of beneficial interests in Securities will be entitled to physical delivery of Securities in certificated form only under the limited circumstances described in the Company's Prospectus Supplement dated September 14, 1995. All the provisions contained in the document entitled "Primerica Corporation-Debt Securities-Underwriting Agreement Basic Provisions" and dated January 12, 1993 (the "Basic Provisions"), a copy of which you have previously received, are, except as indicated below, herein incorporated by reference in their entirety and shall be deemed to be a part of this Terms Agreement to the same extent as if the Basic Provisions had been set forth in full herein. Terms defined in the Basic Provisions are used herein as therein defined. Basic Provisions varied with respect to this Terms Agreement: (a) All references to Primerica Corporation shall refer to Travelers Group Inc.; (b) In the first line of Section 2(a), delete "(33-55542)" and insert in lieu thereof "(33-68760)" and any reference in the Basic Provisions to a registration statement shall be deemed to be a reference to such registration statement on Form S-3); (c) In the fifth line of the third paragraph of Section 3, delete the phrase "New York Clearing House (next day)" and insert in lieu thereof "federal or other same day"; and (d) In the fourteenth line of the third paragraph of Section 3, delete the word "definitive" and insert in lieu thereof "global." Charles O. Prince, III, Esq., is counsel to the Company. Dewey Ballantine is counsel to the Underwriters. The Securities will be made available for checking and packaging at the designated office of The Bank of New York at least 24 hours prior to the Closing Date. 2 Please accept this offer no later than 9:00 o'clock P.M. on September 14, 1995, by signing a copy of this Terms Agreement in the space set forth below and returning the signed copy to us, or by sending us a written acceptance in the following form: "We hereby accept your offer, set forth in the Terms Agreement, dated September 14, 1995, to purchase the Securities on the terms set forth therein." Very truly yours, CS FIRST BOSTON CORPORATION CITICORP SECURITIES, INC. PAINEWEBBER INCORPORATED, as Representatives By: /s/ Robert A. Hansen ------------------------ Name: Robert A. Hansen Title: Vice President ACCEPTED: TRAVELERS GROUP INC. By: /s/ Firoz B. Tarapore ---------------------------- Name: Firoz B. Tarapore Title: Deputy Treasurer 3