EX-4.38



 





Exhibit 4.38




 






CAPITAL SECURITIES GUARANTEE AGREEMENT




Citigroup
Capital XXIX




Dated as of           , 20




 






 









 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS AND INTERPRETATION
	 	 	 	 
	 
	SECTION 1.1 Definitions and Interpretation
	 	 	1	 
	 
	ARTICLE II TRUST INDENTURE ACT
	 	 	 	 
	 
	SECTION 2.1 Trust Indenture Act; Application
	 	 	4	 
	SECTION 2.2 Lists of Holders of Securities
	 	 	4	 
	SECTION 2.3 Reports by the Capital Guarantee Trustee
	 	 	4	 
	SECTION 2.4 Periodic Reports to Capital Guarantee Trustee
	 	 	5	 
	SECTION 2.5 Evidence of Compliance with Conditions Precedent
	 	 	5	 
	SECTION 2.6 Events of Default; Waiver
	 	 	5	 
	SECTION 2.7 Event of Default; Notice
	 	 	5	 
	SECTION 2.8 Conflicting Interests
	 	 	5	 
	 
	ARTICLE III POWERS, DUTIES AND RIGHTS OF CAPITAL GUARANTEE TRUSTEE
	 	 	 	 
	 
	SECTION 3.1 Powers and Duties of the Capital Guarantee Trustee
	 	 	6	 
	SECTION 3.2 Certain Rights of Capital Guarantee Trustee
	 	 	7	 
	SECTION 3.3 Not Responsible for Recitals or Issuance of Guarantee
	 	 	9	 
	 
	ARTICLE IV CAPITAL GUARANTEE TRUSTEE
	 	 	 	 
	 
	SECTION 4.1 Capital Guarantee Trustee; Eligibility
	 	 	9	 
	SECTION 4.2 Appointment, Removal and Resignation of Capital Guarantee Trustees
	 	 	10	 
	 
	ARTICLE V GUARANTEE
	 	 	 	 
	 
	SECTION 5.1 Guarantee
	 	 	11	 
	SECTION 5.2 Waiver of Notice and Demand
	 	 	11	 
	SECTION 5.3 Obligations Not Affected
	 	 	11	 
	SECTION 5.4 Rights of Holders
	 	 	12	 
	SECTION 5.5 Guarantee of Payment
	 	 	12	 
	SECTION 5.6 Subrogation
	 	 	13	 
	SECTION 5.7 Independent Obligations
	 	 	13	 
	 
	ARTICLE VI LIMITATION OF TRANSACTIONS; SUBORDINATION
	 	 	 	 
	 
	SECTION 6.1 Limitation of Transactions
	 	 	13	 






 









 






	 	 	 	 	 
	 	 	Page	 
	SECTION 6.2 Subordination
	 	 	13	 
	SECTION 6.3 Pari Passu Guarantees
	 	 	14	 
	 
	ARTICLE VII TERMINATION
	 	 	 	 
	 
	SECTION 7.1 Termination
	 	 	14	 
	 
	ARTICLE VIII INDEMNIFICATION
	 	 	 	 
	 
	SECTION 8.1 Exculpation
	 	 	14	 
	SECTION 8.2 Indemnification
	 	 	15	 
	 
	ARTICLE IX MISCELLANEOUS
	 	 	 	 
	 
	SECTION 9.1 Successors and Assigns
	 	 	15	 
	SECTION 9.2 Amendments
	 	 	15	 
	SECTION 9.3 Notices
	 	 	15	 
	SECTION 9.4 Benefit
	 	 	16	 
	SECTION 9.5 Governing Law
	 	 	16	 







 









 








CAPITAL SECURITIES GUARANTEE AGREEMENT




          This GUARANTEE AGREEMENT (the “Capital Securities Guarantee”), dated as of           
        , 20      , is executed and delivered by Citigroup Inc., a Delaware corporation (the “Guarantor”), and
The Bank of New York, as trustee (the “Capital Guarantee Trustee”), for the benefit of the Holders
(as defined herein) from time to time of the Capital Securities (as defined herein) of Citigroup
Capital XXIX, a Delaware statutory trust (the “Issuer”).




          WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the “Declaration”), dated
as of          , 20      , among the trustees of the Issuer named therein, the Guarantor, as
sponsor, and the holders from time to time of undivided beneficial interests in the assets of the
Issuer, the Issuer is issuing on the date hereof            capital securities, having an
aggregate liquidation amount of $            and may issue up to an additional
capital securities, having an aggregate liquidation amount of $           in
connection with an over-allotment option, collectively designated the      % Capital Securities
(the “Capital Securities”);




          WHEREAS, as incentive for the Holders to purchase the Capital Securities, the Guarantor
desires irrevocably and unconditionally to agree, to the extent set forth in this Capital
Securities Guarantee, to pay to the Holders the Guarantee Payments (as defined herein) and to make
certain other payments on the terms and conditions set forth herein.




          NOW, THEREFORE, in consideration of the purchase by each Holder of Capital Securities, which
purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and
delivers this Capital Securities Guarantee for the benefit of the Holders.




ARTICLE I

DEFINITIONS AND INTERPRETATION




               SECTION 1.1 Definitions and Interpretation



          In this Capital Securities Guarantee, unless the context otherwise requires:




          (a) Capitalized terms used in this Capital Securities Guarantee but not defined in the
preamble above have the respective meanings assigned to them in this Section 1.1;




          (b) a term defined anywhere in this Capital Securities Guarantee has the same meaning
throughout;




          (c) all references to “the Capital Securities Guarantee” or “this Capital Securities
Guarantee” are to this Capital Securities Guarantee as modified, supplemented or amended from time
to time;




          (d) all references in this Capital Securities Guarantee to Articles and Sections are to
Articles and Sections of this Capital Securities Guarantee, unless otherwise specified;




 









 








          (e) a term defined in the Trust Indenture Act has the same meaning when used in this Capital
Securities Guarantee, unless otherwise defined in this Capital Securities Guarantee or unless the
context otherwise requires; and




          (f) a reference to the singular includes the plural and vice versa.




          “Authorized Officer” of a Person means any Person that is authorized to bind such
Person.




          “Affiliate” has the same meaning as given to that term in Rule 405 of the Securities
Act of 1933, as amended, or any successor rule thereunder.




          “Business Day” means any day other than a Saturday, Sunday or a day on which banking
institutions in the City of New York, New York are permitted or required by any applicable law to
close.




          “Capital Guarantee Trustee” means The Bank of New York, until a Successor Capital
Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of
this Capital Securities Guarantee, and thereafter means each such Successor Capital Guarantee
Trustee.




          “Common Securities” means the securities representing common undivided beneficial
interests in the assets of the Issuer.




          “Corporate Trust Office” means the office of the Capital Guarantee Trustee at which
the corporate trust business of the Capital Guarantee Trustee shall, at any particular time, be
principally administered, which office at the date of execution of this Agreement is located at 101
Barclay Street-8W, New York, New York 10286.




          “Covered Person” means any Holder or beneficial owner of Capital Securities.




          “Debentures” means the series of junior subordinated debt securities of the Guarantor
designated the      % Junior
Subordinated Deferrable Interest Debentures due      , 20   held by the Institutional Trustee (as defined in the Declaration) of the Issuer.




          “Event of Default” means a default by the Guarantor on any of its payment or other
obligations under this Capital Securities Guarantee.




          “Guarantee Payments” means the following payments or distributions, without
duplication, with respect to the Capital Securities, to the extent not paid or made by the Issuer:
(i) any accrued and unpaid Distributions (as defined in Annex I to the Declaration) that are
required to be paid on the Capital Securities, to the extent the Issuer has funds available
therefor, (ii) the redemption price of $  per Capital Security, plus all accrued and unpaid
Distributions to the date of redemption (the “Redemption Price”), to the extent that the Issuer has
funds available therefor, with respect to any Capital Securities called for redemption by the
Issuer and (iii) upon a voluntary or involuntary dissolution, winding-up or termination of the
Issuer (other than in connection with the distribution of Debentures to the Holders in exchange for
Capital Securities as provided in the Declaration or the redemption of all of the Capital
Securities upon the maturity




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or redemption of all of the Debentures as provided in the Declaration)
the lesser of (a) the aggregate of the liquidation amount of $  per Capital Security and all
accrued and unpaid Distributions on the Capital Securities to the date of payment, or (b) the
amount of assets of the
Issuer remaining for distribution to Holders in liquidation of the Issuer (in either case, the
“Liquidation Distribution”).




          “Holder” shall mean any holder, as registered on the books and records of the Issuer,
of any Capital Securities; provided, however, that, in determining whether the holders of the
requisite percentage of Capital Securities have given any request, notice, consent or waiver
hereunder, “Holder” shall not include the Guarantor or any Affiliate of the Guarantor.




          “Indemnified Person” means the Capital Guarantee Trustee, any Affiliate of the Capital
Guarantee Trustee, or any officers, directors, shareholders, members, partners, employees,
representatives, nominees, custodians or agents of the Capital Guarantee Trustee.




          “Indenture” means the Indenture dated as of          , 20      , among the
Guarantor and The Bank of New York, as trustee, and any indenture supplemental thereto, pursuant to
which the Debentures are to be issued to the Institutional Trustee as defined in the Declaration.




          “Majority in liquidation amount of the Securities” means, except as provided by the
Trust Indenture Act, a vote by Holder(s), voting separately as a class, holding Capital Securities
representing more than 50% of the aggregate liquidation amount (including the stated amount that
would be paid on redemption, liquidation or otherwise, plus accrued and unpaid Distributions to the
date upon which the voting percentages are determined) of all Capital Securities.




          “Officers’ Certificate” means, with respect to any Person, a certificate signed by two
Authorized Officers of such Person. Any Officers’ Certificate delivered with respect to compliance
with a condition or covenant provided for in this Capital Securities Guarantee shall include:




          (a) a statement that each officer signing the Officers’ Certificate has read the covenant or
condition and the definitions relating thereto;




          (b) a brief statement of the nature and scope of the examination or investigation undertaken
by each officer in rendering the Officers’ Certificate;




          (c) a statement that each such officer has made such examination or investigation as, in such
officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether
or not such covenant or condition has been complied with; and




          (d) a statement as to whether, in the opinion of each such officer, such condition or covenant
has been complied with.




          “Person” means a legal person, including any individual, corporation, estate,
partnership, joint venture, association, joint stock company, limited liability company, trust,




3









 







unincorporated association, or government or any agency or political subdivision thereof, or any
other entity of whatever nature.




          “Responsible Officer” means, with respect to the Capital Guarantee Trustee, any
officer within the Corporate Trust Office of the Capital Guarantee Trustee with direct
responsibility for the administration of this Capital Securities Guarantee and also means, with
respect to a particular corporate trust matter, any other officer to whom such matter is referred
because of that officer’s knowledge of and familiarity with the particular subject.




          “Successor Capital Guarantee Trustee” means a successor Capital Guarantee Trustee
possessing the qualifications to act as Capital Guarantee Trustee under Section 4.1.




          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.




          “Underwriting Agreement” has the meaning set forth in the Indenture.




ARTICLE II

TRUST INDENTURE ACT




               SECTION 2.1 Trust Indenture Act; Application



          (a) This Capital Securities Guarantee is subject to the provisions of the Trust Indenture Act
that are required to be part of this Capital Securities Guarantee and shall, to the extent
applicable, be governed by such provisions; and




          (b) if and to the extent that any provision of this Capital Securities Guarantee limits,
qualifies or conflicts with the duties imposed by Section 310 to 317, inclusive, of the Trust
Indenture Act, such imposed duties shall control.




               SECTION 2.2 Lists of Holders of Securities



          (a) The Guarantor shall provide the Capital Guarantee Trustee with a list, in such form as the
Capital Guarantee Trustee may reasonably require, of the names and addresses of the Holders (“List
of Holders”) as of such date, (i) within one Business Day after January 1 and June 30 of each year,
and (ii) at any other time within 30 days of receipt by the Guarantor of a written request for a
List of Holders as of a date no more than 14 days before such List of Holders is given to the
Capital Guarantee Trustee; provided, that the Guarantor shall not be obligated to provide such List
of Holders at any time the List of Holders does not differ from the most recent List of Holders
given to the Capital Guarantee Trustee by the Guarantor. The Capital Guarantee Trustee may destroy
any List of Holders previously given to it on receipt of a new List of Holders.




          (b) The Capital Guarantee Trustee shall comply with its obligations under Sections 311(a),
311(b) and 312(b) of the Trust Indenture Act.




               SECTION 2.3 Reports by the Capital Guarantee Trustee



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          Within 60 days after May 15 of each year, the Capital Guarantee Trustee shall provide to the
Holders such reports as are required by Section 313 of the Trust Indenture Act, if any, in the form
and in the manner provided by Section 313 of the Trust Indenture Act. The Capital Guarantee
Trustee shall also comply with the requirements of Section 313(d) of the Trust Indenture Act.




               SECTION 2.4 Periodic Reports to Capital Guarantee Trustee



          The Guarantor shall provide to the Capital Guarantee Trustee such documents, reports and
information as required by Section 314 (if any) and the compliance certificate required by Section
314 of the Trust Indenture Act in the form, in the manner and at the times required by Section 314
of the Trust Indenture Act.




               SECTION 2.5 Evidence of Compliance with Conditions Precedent



          The Guarantor shall provide to the Capital Guarantee Trustee such evidence of compliance with
any conditions precedent, if any, provided for in this Capital Securities Guarantee that relate to
any of the matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate or
opinion required to be given by an officer pursuant to Section 314(c)(1) may be given in the form
of an Officers’ Certificate.




               SECTION 2.6 Events of Default; Waiver



          The Holders of a Majority in liquidation amount of Capital Securities may, by vote, on behalf
of the Holders of all of the Capital Securities, waive any past Event of Default and its
consequences. Upon such waiver, any such Event of Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose of this Capital
Securities Guarantee, but no such waiver shall extend to any subsequent or other default or Event
of Default or impair any right consequent thereon.




               SECTION 2.7 Event of Default; Notice



          (a) The Capital Guarantee Trustee shall, within 90 days after the occurrence of an Event of
Default, transmit by mail, first class postage prepaid, to the Holders, notices of all Events of
Default actually known to a Responsible Officer of the Capital Guarantee Trustee, unless such
defaults have been cured before the giving of such notice; provided, that the Capital Guarantee
Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of
the Capital Guarantee Trustee in good faith determines that the withholding of such notice is in
the interests of the Holders.




          (b) The Capital Guarantee Trustee shall not be deemed to have knowledge of any Event of
Default unless either the Capital Guarantee Trustee shall have received written notice, or a
Responsible Officer of the Capital Guarantee Trustee charged with the administration of the
Declaration shall have obtained actual knowledge.




               SECTION 2.8 Conflicting Interests



5









 





          The Declaration shall be deemed to be specifically described in this Capital Securities
Guarantee for the purposes of clause (i) of the first proviso contained in Section 310(b) of the
Trust Indenture Act.




ARTICLE III

POWERS, DUTIES AND RIGHTS OF

CAPITAL GUARANTEE TRUSTEE




               SECTION 3.1 Powers and Duties of the Capital Guarantee Trustee



          (a) This Capital Securities Guarantee shall be held by the Capital Guarantee Trustee for the
benefit of the Holders, and the Capital Guarantee Trustee shall not transfer its right, title and
interest in this Capital Securities Guarantee to any Person except a Holder exercising his or her
rights pursuant to Section 5.4(b) or to a Successor Capital Guarantee Trustee on acceptance by such
Successor Capital Guarantee Trustee of its appointment to act as Successor Capital Guarantee
Trustee. The right, title and interest of the Capital Guarantee Trustee shall automatically vest
in any Successor Capital Guarantee Trustee, and such vesting and cessation of title shall be
effective whether or not conveyancing documents have been executed and delivered pursuant to the
appointment of such Successor Capital Guarantee Trustee.




          (b) If an Event of Default actually known to a Responsible Officer of the Capital Guarantee
Trustee has occurred and is continuing, the Capital Guarantee Trustee shall enforce this Capital
Securities Guarantee for the benefit of the Holders of the Capital Securities.




          (c) The Capital Guarantee Trustee, before the occurrence of any Event of Default and after the
curing of all Events of Default that may have occurred, shall undertake to perform only such duties
as are specifically set forth in this Capital Securities Guarantee, and no implied covenants shall
be read into this Capital Securities Guarantee against the Capital Guarantee Trustee. In case an
Event of Default has occurred (that has not been cured or waived pursuant to Section 2.6) and is
actually known to a Responsible Officer of the Capital Guarantee Trustee, the Capital Guarantee
Trustee shall exercise such of the rights and powers vested in it by this Capital Securities
Guarantee, and use the same degree of care and skill in its exercise thereof, as a prudent person
would exercise or use under the circumstances in the conduct of his or her own affairs.




          (d) No provision of this Capital Securities Guarantee shall be construed to relieve the
Capital Guarantee Trustee from liability for its own negligent action, its own negligent failure to
act or its own willful misconduct, except that:





     (i) Prior to the occurrence of any Event of Default and after the curing or
waiving of all such Events of Default that may have occurred:




     (A) the duties and obligations of the Capital Guarantee Trustee
shall be determined solely by the express provisions of this Capital
Securities Guarantee, and the Capital Guarantee Trustee shall not be
liable except for the performance of such duties and obligations as
are specifically set forth in this Capital Securities



6









 







Guarantee, and
no implied covenants or obligations shall be read into this Capital
Securities Guarantee against the Capital Guarantee Trustee; and




     (B) in the absence of bad faith on the part of the Capital
Guarantee Trustee, the Capital Guarantee Trustee may conclusively
rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates
or opinions furnished to the Capital Guarantee Trustee and
conforming to the requirements of this Capital Securities Guarantee;
but in the case of any such certificates or opinions that by any
provision hereof are specifically required to be furnished to the
Capital Guarantee Trustee, the Capital Guarantee Trustee shall be
under a duty to examine the same to determine whether or not they
conform to the requirements of this Capital Securities Guarantee;




     (ii) the Capital Guarantee Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer of the Capital Guarantee
Trustee, unless it shall be proved that the Capital Guarantee Trustee was negligent
in ascertaining the pertinent facts upon which such judgment was made;




     (iii) the Capital Guarantee Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of not less than a Majority in liquidation amount of the
Capital Securities relating to the time, method and place of conducting any
proceeding for any remedy available to the Capital Guarantee Trustee, or exercising
any trust or power conferred upon the Capital Guarantee Trustee under this Capital
Securities Guarantee; and




     (iv) no provision of this Capital Securities Guarantee shall require the
Capital Guarantee Trustee to expend or risk its own funds or otherwise incur
personal financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers, if the Capital Guarantee Trustee shall have
reasonable grounds for believing that the repayment of such funds or liability is
not reasonably assured to it under the terms of this Capital Securities Guarantee or
indemnity, reasonably satisfactory to the Capital Guarantee Trustee, against such
risk or liability is not reasonably assured to it.



               SECTION 3.2 Certain Rights of Capital Guarantee Trustee



          (a) Subject to the provisions of Section 3.1:





     (i) The Capital Guarantee Trustee may conclusively rely, and shall be fully
protected in acting or refraining from acting upon, any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or document



7









 







believed by it to be genuine and to have been signed, sent or presented by the
proper party or parties.




     (ii) Any direction or act of the Guarantor contemplated by this Capital
Securities Guarantee shall be sufficiently evidenced by an Officers’ Certificate.




     (iii) Whenever, in the administration of this Capital Securities Guarantee, the
Capital Guarantee Trustee shall deem it desirable that a matter be proved or
established before taking, suffering or omitting any action hereunder,
the Capital Guarantee Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, request and conclusively
rely upon an Officers’ Certificate which, upon receipt of such request, shall be
promptly delivered by the Guarantor.




     (iv) The Capital Guarantee Trustee shall have no duty to see to any recording,
filing or registration of any instrument (or any rerecording, refiling or
registration thereof).




     (v) The Capital Guarantee Trustee may consult with counsel, and the written
advice or opinion of such counsel with respect to legal matters shall be full and
complete authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in accordance with such advice or opinion.
Such counsel may be counsel to the Guarantor or any of its Affiliates and may
include any of its employees. The Capital Guarantee Trustee shall have the right at
any time to seek instructions concerning the administration of this Capital
Securities Guarantee from any court of competent jurisdiction.




     (vi) The Capital Guarantee Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Capital Securities Guarantee at the
request or direction of any Holder, unless such Holder shall have provided to the
Capital Guarantee Trustee such security and indemnity, reasonably satisfactory to
the Capital Guarantee Trustee, against the costs, expenses (including attorneys’
fees and expenses and the expenses of the Capital Guarantee Trustee’s agents,
nominees or custodians) and liabilities that might be incurred by it in complying
with such request or direction, including such reasonable advances as may be
requested by the Capital Guarantee Trustee; provided that, nothing contained in this
Section 3.2(a)(vi) shall be taken to relieve the Capital Guarantee Trustee, upon the
occurrence of an Event of Default, of its obligation to exercise the rights and
powers vested in it by this Capital Securities Guarantee.




     (vii) The Capital Guarantee Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Capital Guarantee Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit.



8









 






     (viii) The Capital Guarantee Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through agents,
nominees, custodians or attorneys, and the Capital Guarantee Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney
appointed with due care by it hereunder.




     (ix) Any action taken by the Capital Guarantee Trustee or its agents hereunder
shall bind the Holders of the Capital Securities, and the signature of the Capital
Guarantee Trustee or its agents alone shall be sufficient and effective to
perform any such action. No third party shall be required to inquire as to the
authority of the Capital Guarantee Trustee to so act or as to its compliance with
any of the terms and provisions of this Capital Securities Guarantee, both of which
shall be conclusively evidenced by the Capital Guarantee Trustee’s or its agent’s
taking such action.




     (x) Whenever in the administration of this Capital Securities Guarantee the
Capital Guarantee Trustee shall deem it desirable to receive instructions with
respect to enforcing any remedy or right or taking any other action hereunder, the
Capital Guarantee Trustee (i) may request instructions from the Holders of a
Majority in liquidation amount of the Capital Securities, (ii) may refrain from
enforcing such remedy or right or taking such other action until such instructions
are received, and (iii) shall be protected in conclusively relying on or acting in
accordance with such instructions.



          (b) No provision of this Capital Securities Guarantee shall be deemed to impose any duty or
obligation on the Capital Guarantee Trustee to perform any act or acts or exercise any right,
power, duty or obligation conferred or imposed on it in any jurisdiction in which it shall be
illegal, or in which the Capital Guarantee Trustee shall be unqualified or incompetent in
accordance with applicable law, to perform any such act or acts or to exercise any such right,
power, duty or obligation. No permissive power or authority available to the Capital Guarantee
Trustee shall be construed to be a duty.




               SECTION 3.3 Not Responsible for Recitals or Issuance of Guarantee



          The recitals contained in this Guarantee shall be taken as the statements of the Guarantor,
and the Capital Guarantee Trustee does not assume any responsibility for their correctness. The
Capital Guarantee Trustee makes no representation as to the validity or sufficiency of this Capital
Securities Guarantee.




ARTICLE IV

CAPITAL GUARANTEE TRUSTEE




               SECTION 4.1 Capital Guarantee Trustee; Eligibility



          (a) There shall at all times be a Capital Guarantee Trustee which shall:





     (i) not be an Affiliate of the Guarantor; and



9









 






     (ii) be a corporation organized and doing business under the laws of the United
States of America or any State or Territory thereof or of the District of Columbia,
or a corporation or Person permitted by the Securities and Exchange Commission to
act as an institutional trustee under the Trust Indenture Act, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus of at
least 50 million U.S. dollars ($50,000,000), and subject to supervision or
examination by Federal, State, Territorial or District of Columbia authority. If
such corporation publishes reports of condition at least annually, pursuant to law
or to the requirements of the supervising or examining authority
referred to above, then, for the purposes of this Section 4.1(a)(ii), the
combined capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published.



          (b) If at any time the Capital Guarantee Trustee shall cease to be eligible to so act under
Section 4.1(a), the Capital Guarantee Trustee shall immediately resign in the manner and with the
effect set out in Section 4.2(c).




          (c) If the Capital Guarantee Trustee has or shall acquire any “conflicting interest” within
the meaning of Section 310(b) of the Trust Indenture Act, the Capital Guarantee Trustee and
Guarantor shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.




               SECTION 4.2 Appointment, Removal and Resignation of Capital Guarantee
Trustees



          (a) Subject to Section 4.2(b), the Capital Guarantee Trustee may be appointed or removed
without cause at any time by the Guarantor except if an Event of Default shall have occurred and be
continuing.




          (b) The Capital Guarantee Trustee shall not be removed in accordance with Section 4.2(a) until
a Successor Capital Guarantee Trustee has been appointed and has accepted such appointment by
written instrument executed by such Successor Capital Guarantee Trustee and delivered to the
Guarantor.




          (c) The Capital Guarantee Trustee appointed to office shall hold office until a Successor
Capital Guarantee Trustee shall have been appointed or until its removal or resignation. The
Capital Guarantee Trustee may resign from office (without need for prior or subsequent accounting)
by an instrument in writing executed by the Capital Guarantee Trustee and delivered to the
Guarantor, which resignation shall not take effect until a Successor Capital Guarantee Trustee has
been appointed and has accepted such appointment by instrument in writing executed by such
Successor Capital Guarantee Trustee and delivered to the Guarantor and the resigning Capital
Guarantee Trustee.




          (d) If no Successor Capital Guarantee Trustee shall have been appointed and accepted
appointment as provided in this Section 4.2 within 60 days after delivery to the Guarantor of an
instrument of resignation, the resigning Capital Guarantee Trustee may petition any court of
competent jurisdiction for appointment of a Successor Capital Guarantee Trustee.




10









 







Such court may
thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor
Capital Guarantee Trustee.




          (e) No Capital Guarantee Trustee shall be liable for the acts or omissions to act of any
Successor Capital Guarantee Trustee.




          (f) Upon termination of this Capital Securities Guarantee or removal or resignation of the
Capital Guarantee Trustee pursuant to this Section 4.2, the Guarantor shall pay to the Capital
Guarantee Trustee all amounts accrued and owing to such Capital Guarantee Trustee to the date of
such termination, removal or resignation.




ARTICLE V

GUARANTEE




               SECTION 5.1 Guarantee



          The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the
Guarantee Payments, as and when due, regardless of any defense, right of set-off or counterclaim
that the Issuer may have or assert. The Guarantor’s obligation to make a Guarantee Payment may be
satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing
the Issuer to pay such amounts to the Holders.




               SECTION 5.2 Waiver of Notice and Demand



          The Guarantor hereby waives notice of acceptance of this Capital Securities Guarantee and of
any liability to which it applies or may apply, presentment, demand for payment, any right to
require a proceeding first against the Issuer or any other Person before proceeding against the
Guarantor, protest, notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands.




               SECTION 5.3 Obligations Not Affected



          The obligations, covenants, agreements and duties of the Guarantor under this Capital
Securities Guarantee shall in no way be affected or impaired by reason of the happening from time
to time of any of the following:




          (a) the release or waiver, by operation of law or otherwise, of the performance or observance
by the Issuer of any express or implied agreement, covenant, term or condition relating to the
Capital Securities to be performed or observed by the Issuer;




          (b) the extension of time for the payment by the Issuer of all or any portion of the
Distributions, Redemption Price, Liquidation Distribution or any other sums payable under the terms
of the Capital Securities or the extension of time for the performance of any other obligation
under, arising out of, or in connection with, the Capital Securities;




          (c) any failure, omission, delay or lack of diligence on the part of the Holders to enforce,
assert or exercise any right, privilege, power or remedy conferred on the Holders




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pursuant to the
terms of the Capital Securities, or any action on the part of the Issuer granting indulgence or
extension of any kind;




          (d) the voluntary or involuntary liquidation, dissolution, sale of any collateral,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the
Issuer or any of the assets of the Issuer;




          (e) any invalidity of, or defect or deficiency in, the Capital Securities;




          (f) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or




          (g) any other circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a guarantor, it being the intent of this Section 5.3 that the obligations
of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances.




          There shall be no obligation of the Holders to give notice to, or obtain consent of, the
Guarantor with respect to the happening of any of the foregoing.




               SECTION 5.4 Rights of Holders



          (a) The Holders of a Majority in liquidation amount of the Capital Securities have the right
to direct the time, method and place of conducting any proceeding for any remedy available to the
Capital Guarantee Trustee in respect of this Capital Securities Guarantee or exercising any trust
or power conferred upon the Capital Guarantee Trustee under this Capital Securities Guarantee.




          (b) If the Capital Guarantee Trustee fails to enforce its rights under this Capital Securities
Guarantee, any Holder may directly institute a legal proceeding against the Guarantor to enforce
the Capital Guarantee Trustee’s rights under this Capital Securities Guarantee, without first
instituting a legal proceeding against the Issuer, the Capital Guarantee Trustee or any other
Person or entity.




          (c) A Holder of Capital Securities may also directly institute a legal proceeding against the
Guarantor to enforce such Holder’s right to receive payment under this Capital Securities Guarantee
without first (i) directing the Capital Guarantee Trustee to enforce the terms of this Capital
Securities Guarantee or (ii) instituting a legal proceeding directly against the Issuer or any
other Person or entity.




               SECTION 5.5 Guarantee of Payment



          This Capital Securities Guarantee creates a guarantee of payment and not of collection.




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               SECTION 5.6 Subrogation



          The Guarantor shall be subrogated to all (if any) rights of the Holders of Capital Securities
against the Issuer in respect of any amounts paid to such Holders by the Guarantor under this
Capital Securities Guarantee; provided, however, that the Guarantor shall not (except to the extent
required by mandatory provisions of law) be entitled to enforce or exercise any right that it may
acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a
result of payment under this Capital Securities Guarantee, if, at the time of any such payment, any
amounts are due and unpaid under this Capital Securities Guarantee. If any amount shall be paid to
the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in
trust for the Holders and to pay over such amount to the Holders.




               SECTION 5.7 Independent Obligations



          The Guarantor acknowledges that its obligations hereunder are independent of the obligations
of the Issuer with respect to the Capital Securities, and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Capital
Securities Guarantee notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 5.3 hereof.




ARTICLE VI

LIMITATION OF TRANSACTIONS; SUBORDINATION




               SECTION 6.1 Limitation of Transactions



          So long as any Capital Securities remain outstanding, if there shall have occurred any event
that would constitute an Event of Default or a Default under the Declaration, then (a) the
Guarantor shall not declare or pay any dividend on, make any distributions with respect to, or
redeem, purchase, acquire or make a liquidation payment with respect to, any of its capital stock
or make any guarantee payment with respect thereto (other than (i) repurchases, redemptions or
other acquisitions of shares of capital stock of the Guarantor in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of employees, officers,
directors or consultants, (ii) repurchases of common stock of the Guarantor pursuant to a
contractually binding requirement to buy stock existing prior to the Event of Default or Default,
(iii) as a result of an exchange or conversion of any class or series of the Guarantor’s capital
stock for any other class or series of the Guarantor’s capital stock, (iv) the purchase of
fractional interests in shares of the Guarantor’s capital stock pursuant to the conversion or
exchange provisions of such capital stock or the security being converted or exchanged) or (v)
purchase of the Guarantor’s capital stock in connection with the distribution thereof and (b) the
Guarantor shall not make any payment of interest on, or principal of (or premium, if any, on), or
repay, repurchase or redeem, any debt securities or guarantees issued by the Guarantor that rank
pari passu with or junior to the Debentures; provided, however, the Guarantor may declare and pay a
stock dividend where the dividend stock is the same stock as that on which the dividend is being
paid.




               SECTION 6.2 Subordination



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          The obligations of the Guarantor under this Capital Securities Guarantee will constitute
unsecured obligations of the Guarantor and will rank subordinate and junior in right of payment to
all Senior Indebtedness (as defined in the Indenture) of the Guarantor to the extent and in the
manner set forth in the Indenture with respect to the Debentures, and the provisions of Article
Fourteen of the Indenture will apply, mutatis mutandis, to the obligations of the Guarantor
hereunder. The obligations of the Guarantor hereunder do not constitute Senior Indebtedness (as
defined in the Indenture) of the Guarantor.




               SECTION 6.3 Pari Passu Guarantees 



          The obligations of the Guarantor under this Capital Securities Guarantee shall rank pari passu
with the obligations of the Guarantor under (i) any similar guarantee agreements issued by the
Guarantor on behalf of the holders of preferred or capital securities issued by any Citigroup Trust
(as defined in the Indenture), (ii) the Indenture and the Securities (as defined therein) issued
thereunder, (iii) any expense agreements entered into by the Guarantor in connection with the
offering of preferred or capital securities by any Citigroup Trust (as defined in the Indenture),
and (iv) any other security, guarantee or other agreement or obligation that is by its terms pari
passu with the Securities (as defined in the Indenture) and, in the case of this clause (iv) only,
(x) is issued with the concurrence or approval of the staff of the Federal Reserve Bank of New York
or the staff of the Board of Governors of the Federal Reserve System or (y) does not at the time of
issuance prevent the Securities from qualifying for tier 1 capital treatment (irrespective of any
limits on the amount of the Company’s tier 1 capital) under the applicable capital adequacy
guidelines, regulations, policies or published interpretations of the Board of Governors of the
Federal Reserve System.




ARTICLE VII

TERMINATION




               SECTION 7.1 Termination



          This Capital Securities Guarantee shall terminate upon (i) full payment of the Redemption
Price of all Capital Securities, (ii) the distribution of the Debentures to the Holders of all of
the Capital Securities or (iii) full payment of the amounts payable in accordance with the
Declaration upon liquidation of the Issuer. Notwithstanding the foregoing, this Capital Securities
Guarantee will continue to be effective or will be reinstated, as the case may be, if at any time
any Holder must restore payment of any sums paid under the Capital Securities or under this Capital
Securities Guarantee.




ARTICLE VIII

INDEMNIFICATION




               SECTION 8.1 Exculpation



          (a) No Indemnified Person shall be liable, responsible or accountable in damages or otherwise
to the Guarantor or any Covered Person for any loss, damage or claim incurred by reason of any act
or omission performed or omitted by such Indemnified Person in good faith in accordance with this
Capital Securities Guarantee and in a manner that such Indemnified Person reasonably believed to be
within the scope of the authority conferred on such




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Indemnified Person by this Capital Securities Guarantee or by law, except that an Indemnified
Person shall be liable for any such loss, damage or claim incurred by reason of such Indemnified
Person’s negligence or willful misconduct with respect to such acts or omissions.




          (b) An Indemnified Person shall be fully protected in relying in good faith upon the records
of the Guarantor and upon such information, opinions, reports or statements presented to the
Guarantor by any Person as to matters the Indemnified Person reasonably believes are within such
other Person’s professional or expert competence and who has been selected with reasonable care by
or on behalf of the Guarantor, including information, opinions, reports or statements as to the
value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the
existence and amount of assets from which Distributions to Holders might properly be paid.




               SECTION 8.2 Indemnification



          The Guarantor agrees to indemnify each Indemnified Person for, and to hold each Indemnified
Person harmless against, any loss, liability or expense incurred without negligence or bad faith on
its part, arising out of or in connection with the acceptance or administration of the trust or
trusts hereunder, including the costs and expenses (including reasonable legal fees and expenses)
of defending itself against, or investigating, any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The obligation to indemnify as
set forth in this Section 8.2 shall survive the termination of this Capital Securities Guarantee.




ARTICLE IX

MISCELLANEOUS




               SECTION 9.1 Successors and Assigns



          All guarantees and agreements contained in this Capital Securities Guarantee shall bind the
successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to
the benefit of the Holders of the Capital Securities then outstanding.




               SECTION 9.2 Amendments



          Except with respect to any changes that do not adversely affect the rights of Holders (in
which case no consent of Holders will be required), this Capital Securities Guarantee may be
amended only with the prior approval of the Holders of not less than a Majority in aggregate
liquidation amount (including the stated amount that would be paid on redemption, liquidation or
otherwise, plus accrued and unpaid Distributions to the date upon which the voting percentages are
determined) of all the outstanding Capital Securities. The provisions of Section 12.2 of the
Declaration with respect to meetings of Holders apply to the giving of such approval.




               SECTION 9.3 Notices



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          All notices provided for in this Capital Securities Guarantee shall be in writing, duly signed
by the party giving such notice, and shall be delivered, telecopied or mailed by registered or
certified mail, as follows:




          (a) If given to the Capital Guarantee Trustee, at the Capital Guarantee Trustee’s mailing
address set forth below (or such other address as the Capital Guarantee Trustee may give notice of
to the Holders):



The Bank of New York

101 Barclay Street-8W

New York, New York 10286

Attn: Global Trust Administration




          (b) If given to the Guarantor, at the Guarantor’s mailing address set forth below (or such
other address as the Guarantor may give notice of to the Holders):



Citigroup Inc.,

153 East 53rd Street

New York, NY 10043

Attention: Charles E. Wainhouse, Assistant Treasurer




          (c) If given to any Holder, at the address set forth on the books and records of the Issuer.




          All such notices shall be deemed to have been given when received in person, telecopied with
receipt confirmed, or mailed by first class mail, postage prepaid except that if a notice or other
document is refused delivery or cannot be delivered because of a changed address of which no notice
was given, such notice or other document shall be deemed to have been delivered on the date of such
refusal or inability to deliver.




               SECTION 9.4 Benefit



          This Capital Securities Guarantee is solely for the benefit of the Holders of the Capital
Securities and, subject to Section 3.1(a), is not separately transferable from the Capital
Securities.




               SECTION 9.5 Governing Law



          THIS CAPITAL SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED
BY SUCH LAWS WITHOUT REGARD FOR THE PRINCIPLES OF ITS CONFLICTS OF LAWS.




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          THIS CAPITAL SECURITIES GUARANTEE is executed as of the day and year first above written.




	 	 	 	 	 
	 	CITIGROUP INC.,

as Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NEW YORK,

as Capital Guarantee Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 




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