Source: https://es.scribd.com/document/116350508/CitiGroup-BarrierCallsAndPutWarrantsMay42010
Timestamp: 2019-04-24 13:48:55
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CitiGroup BarrierCallsAndPutWarrantsMay42010 | Warrant (Finance) | Citigroup
CitiGroup BarrierCallsAndPutWarrantsMay42010
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Chock Full O' Nuts Corporation v. United States, 453 F.2d 300, 2d Cir. (1971)
RBS Round UP: 08 September 2010
Mbb Intro Draft
Final Us-jp CA Mou Investment Bank 12-27-05
Barrier call and put warrants in respect of: Australia and New Zealand Banking Group Limited BHP Billiton
Limited Commonwealth Bank of Australia CSL Limited Fortescue Metals Group Ltd Macquarie Group Limited Newcrest Mining Limited Rio Tinto Limited Santos Limited Woolworths Limited
Barrier Call and Put Warrants
Issued by Citigroup Global Markets Australia Pty Limited (ABN 64 003 114 832 and AFSL 240992) Guaranteed by Citigroup Inc.
This document is a Supplementary Product Disclosure Statement for the purposes of Part 7.9 of the Corporations Act (Supplementary), and has been issued by Citigroup Global Markets Australia Pty Limited. IT SUPPLEMENTS THE PRODUCT DISCLOSURE STATEMENT DATED11052010 CONJUNCTION WITH THE PDS. This Supplementary is dated 20 May 2010 Defined terms in this Supplementary have the same meaning as those terms in the PDS. This Supplementary has been issued for the purposes of varying the Exercise Price and Barrier Level of the specified Series of Warrants. The details of the Warrants and the revised Terms appear in the table below. 6 MAY 2010, 4 MAY 2010 IN
RELATION TO THE BARRIER CALL AND PUT WARRANTS (TOGETHER, THE “PDS”) AND MUST ONLY BE READ IN
New ASX Code Type Exercise Price BHPYOS CSLXOP FMGXOB FMGXOQ NCMXOE RIOXOY Barrier Put Barrier Put Barrier Call Barrier Put Barrier Call Barrier Put 39.00 33.00 3.60 4.10 31.00 65.00
New Barrier Level 39.00 33.00 3.60 4.10 31.00 65.00 Single-Touch Single-Touch Single-Touch Single-Touch Single-Touch Single-Touch Barrier Trigger
Relevant Expiry Date 29 July 2010 29 July 2010 29 July 2010 29 July 2010 29 July 2010 29 July 2010
Required Number 2 2 2 2 4 4
Issue Size 20MM 20MM 20MM 20MM 40MM 40MM
European European European European European European
ASIC and ASX This Supplementary is not required to be and will not be lodged with ASIC. Citigroup will notify ASIC that this 1Supplementary is in use in accordance with section 1015D of the Corporations Act. Neither ASIC nor ASX takes any responsibility for the contents of this Supplementary or the Warrants. THIS DOCUMENT IS NOT INVESTMENT ADVICE This is an important document and should be read in its entirety before any decision is made to apply for or acquire the Warrants. The information provided in this PDS is not financial product advice and has been prepared without taking into account your personal investment objectives or financial situation. Accordingly, nothing in this PDS is a recommendation by Citigroup, its associates or any other person to invest in the Warrants or in the Securities that make up an Underlying Parcel. YOU SHOULD CONTACT YOUR STOCKBROKER OR OTHER PROFESSIONAL FINANCIAL ADVISER BEFORE MAKING ANY DECISION TO INVEST IN THE WARRANTS, AND TAKE INTO ACCOUNT YOUR OWN PERSONAL INVESTMENT OBJECTIVES AND FINANCIAL SITUATION. INVESTORS SHOULD NOTE THAT AN INVESTMENT IN TURBO WARRANTS REPRESENTS A GREATER DEGREE OF RISK THAN AN INVESTMENT IN REGULAR EQUITY WARRANTS. IN PARTICULAR, INVESTORS SHOULD NOTE THAT IF A BARRIER LEVEL IS TRIGGERED DURING THE LIFE OF A WARRANT, INVESTORS MAY LOSE THEIR ENTIRE INVESTMENT. YOU SHOULD READ THIS ENTIRE PDS AND CONTACT YOUR STOCKBROKER OR OTHER PROFES SIONAL FINANCIAL ADVISER BEFORE MAKING ANY DECISION TO INVEST.
Citigroup Inc_Turbo_20100504_20100506_20100511_20100520
Australia and New Zealand Banking Group Limited BHP Billiton Limited Commonwealth Bank of Australia CSL Limited Fortescue Metals Group Ltd Macquarie Group Limited Newcrest Mining Limited Rio Tinto Limited Santos Limited Woolworths Limited
This document is a Supplementary Product Disclosure Statement for the purposes of Part 7.9 of the Corporations Act (Supplementary), and has been issued by Citigroup Global Markets Australia Pty Limited. IT SUPPLEMENTS THE PRODUCT DISCLOSURE STATEMENT DATED 6 MAY 2010, 4 MAY 2010 IN RELATION TO THE BARRIER CALL AND PUT WARRANTS (TOGETHER, THE “PDS”) AND MUST ONLY BE READ IN CONJUNCTION WITH THE PDS. This Supplementary is dated 11 May 2010 Defined terms in this Supplementary have the same meaning as those terms in the PDS. This Supplementary has been issued for the purposes of varying the Exercise Price and Barrier Level of the specified Series of Warrants. The details of the Warrants and the revised Terms appear in the table below.
New ASX Code Type Exercise Price ANZXOH ANZXOV CBAYOP CSLXOP RIOXOX RIOXOY STOXOT Barrier Call Barrier Put Barrier Put Barrier Put Barrier Put Barrier Put Barrier Put 20.00 23.50 56.50 28.00 73.00 81.00 13.50
New Barrier Level 20.00 23.50 56.50 28.00 73.00 81.00 13.50 Single-Touch Single-Touch Single-Touch Single-Touch Single-Touch Single-Touch Single-Touch Barrier Trigger
Relevant Expiry Date 29 July 2010 29 July 2010 29 July 2010 29 July 2010 29 July 2010 29 July 2010 29 July 2010
Required Number 2 2 5 2 4 4 2
Issue Size 20MM 20MM 50MM 20MM 40MM 40MM 20MM
European European European European European European European
ASIC and ASX This Supplementary is not required to be and will not be lodged with ASIC. Citigroup will notify ASIC that this 1Supplementary is in use in accordance with section 1015D of the Corporations Act. Neither ASIC nor ASX takes any responsibility for the contents of this Supplementary or the Warrants. THIS DOCUMENT IS NOT INVESTMENT ADVICE This is an important document and should be read in its entirety before any decision is made to apply for or acquire the Warrants. The information provided in this PDS is not financial product advice and has been prepared without taking into account your personal investment objectives or financial situation. Accordingly, nothing in this PDS is a recommendation by Citigroup, its associates or any other person to invest in the Warrants or in the Securities that make up an Underlying Parcel. YOU SHOULD CONTACT YOUR STOCKBROKER OR OTHER PROFESSIONAL FINANCIAL ADVISER BEFORE MAKING ANY DECISION TO INVEST IN THE WARRANTS, AND TAKE INTO ACCOUNT YOUR OWN PERSONAL INVESTMENT OBJECTIVES AND FINANCIAL SITUATION. INVESTORS SHOULD NOTE THAT AN INVESTMENT IN TURBO WARRANTS REPRESENTS A GREATER DEGREE OF RISK THAN AN INVESTMENT IN REGULAR EQUITY WARRANTS. IN PARTICULAR, INVESTORS SHOULD NOTE THAT IF A BARRIER LEVEL IS TRIGGERED DURING THE LIFE OF A WARRANT, INVESTORS MAY LOSE THEIR ENTIRE INVESTMENT. YOU SHOULD READ THIS ENTIRE PDS AND CONTACT YOUR STOCKBROKER OR OTHER PROFESSIONAL FINANCIAL ADVISER BEFORE MAKING ANY DECISION TO INVEST.
Citigroup Inc_Turbo_20100504_20100506_20100511
Barrier call and put warrants in respect of: Australia and New Zealand Banking Group Limited BHP Billiton Limited Commonwealth Bank of Australia CSL Limited Fortescue Metals Group Ltd Macquarie Group Limited Newcrest Mining Limited Rio Tinto Limited Santos Limited Woolworths Limited Turbo Warrants Supplementary Product Disclosure Statement Barrier Call and Put Warrants 6 May 2010 Issued by Citigroup Global Markets Australia Pty Limited (ABN 64 003 114 832 and AFSL 240992) Guaranteed by Citigroup Inc. .
00 34. INVESTORS MAY LOSE THEIR ENTIRE INVESTMENT.00 Single-Touch 29 July 2010 2 20MM FMGXOB Barrier Call 4. AND TAKE INTO ACCOUNT YOUR OWN PERSONAL INVESTMENT OBJECTIVES AND FINANCIAL SITUATION. THE “PDS”) AND MUST ONLY BE READ IN CONJUNCTION WITH THE PDS. YOU SHOULD READ THIS ENTIRE PDS AND CONTACT YOUR STOCKBROKER OR OTHER PROFESSIONAL FINANCIAL ADVISER BEFORE MAKING ANY DECISION TO INVEST.This document is a Supplementary Product Disclosure Statement for the purposes of Part 7.00 26. Accordingly.00 Single-Touch 29 July 2010 4 40MM STOXOA Barrier Call 10.00 4. nothing in this PDS is a recommendation by Citigroup.00 Single-Touch Barrier Trigger Relevant Expiry Date 29 July 2010 Required Number 5 Style European Style European Style European Style European Style European Style Issue Size 50MM CSLXOP Barrier Put 34. Citigroup will notify ASIC that this 1Supplementary is in use in accordance with section 1015D of the Corporations Act.9 of the Corporations Act (Supplementary). Neither ASIC nor ASX takes any responsibility for the contents of this Supplementary or the Warrants. The details of the Warrants and the revised Terms appear in the table below. This Supplementary has been issued for the purposes of varying the Exercise Price and Barrier Level of the specified Series of Warrants.00 New Barrier Level 58. This Supplementary is dated 6 May 2010 Defined terms in this Supplementary have the same meaning as those terms in the PDS. INVESTORS SHOULD NOTE THAT AN INVESTMENT IN TURBO WARRANTS REPRESENTS A GREATER DEGREE OF RISK THAN AN INVESTMENT IN REGULAR EQUITY WARRANTS. New ASX Code Type Exercise Price CBAXOY Barrier Put 58. IN PARTICULAR. The information provided in this PDS is not financial product advice and has been prepared without taking into account your personal investment objectives or financial situation. Citigroup Inc_Turbo_20100504_20100506 1 .00 Single-Touch 29 July 2010 2 20MM NCMXOE Barrier Call 26. its associates or any other person to invest in the Warrants or in the Securities that make up an Underlying Parcel. INVESTORS SHOULD NOTE THAT IF A BARRIER LEVEL IS TRIGGERED DURING THE LIFE OF A WARRANT.50 Single-Touch 29 July 2010 2 20MM ASIC and ASX This Supplementary is not required to be and will not be lodged with ASIC.50 10. THIS DOCUMENT IS NOT INVESTMENT ADVICE This is an important document and should be read in its entirety before any decision is made to apply for or acquire the Warrants. YOU SHOULD CONTACT YOUR STOCKBROKER OR OTHER PROFESSIONAL FINANCIAL ADVISER BEFORE MAKING ANY DECISION TO INVEST IN THE WARRANTS. IT SUPPLEMENTS THE PRODUCT DISCLOSURE STATEMENT DATED 4 MAY 2010 IN RELATION TO THE BARRIER CALL AND PUT WARRANTS (TOGETHER. and has been issued by Citigroup Global Markets Australia Pty Limited.
Barrier call and put warrants in respect of: Australia and New Zealand Banking Group Limited BHP Billiton Limited Commonwealth Bank of Australia CSL Limited Fortescue Metals Group Ltd Macquarie Group Limited Newcrest Mining Limited Rio Tinto Limited Santos Limited Woolworths Limited Turbo Warrants Product Disclosure Statement Barrier Call and Put Warrants 4 May 2010 Issued by Citigroup Global Markets Australia Pty Limited (ABN 64 003 114 832 and AFSL 240992) Guaranteed by Citigroup Inc. Citigroup Inc_Turbo_20100504 .
This PDS is not required to be and will not be lodged with ASIC. THIS DOCUMENT IS NOT INVESTMENT ADVICE This is an important document and should be read in its entirety before any decision is made to apply for or acquire the Warrants. Information in this PDS may change from time to time. TURBO CALL PUT SPDS . The Issuer is not subject to regulatory supervision by APRA. YOU SHOULD CONTACT YOUR STOCKBROKER OR OTHER PROFESSIONAL FINANCIAL ADVISER BEFORE MAKING ANY DECISION TO INVEST IN THE WARRANTS. A copy of this PDS is also available on the ASX website www. Disclaimer The Warrants and any securities recommended. Investors are encouraged to read these booklets and the information that is available on the ASX website in relation to warrants. to understand the types of warrants.This document is a Combined Financial Services Guide and Product Disclosure Statement for the purposes of Part 7.com. US Persons. Citi will provide Holders with a paper copy of that information.au. ASIC takes no responsibility for the contents of this PDS or the Warrants.citiwarrants.au. Overseas Distribution Neither the Warrants nor this PDS have been or will be registered in any jurisdiction outside of Australia. a representation as to the future performance of the Warrants. and (iii) are subject to investment risks. on request. or the benefit of. free of charge. and has been issued by Citigroup Global Markets Australia Pty Limited. which can be downloaded free of charge from the ASX website www. Citi may provide that information on its website www. N. Representations No person is authorised by the Issuer to give any information or to make any representation not contained in this PDS. A paper copy of this PDS will be provided. ASX takes no responsibility for the contents of this PDS or the Warrants. or to any person to whom. Any failure to comply with these restrictions may Glossary If this PDS is accessed electronically. constitute a violation of applicable securities laws. Persons who obtain this PDS in jurisdictions outside Australia should seek advice on and observe such restrictions. including the possible loss of the principal amount invested in the event of an Early Maturity. N.com.asx.au.A. The Warrants do not represent a deposit or other liability of Citigroup Pty Limited or Citibank. on request.com. The information provided in this PDS is not financial product advice and has been prepared without taking into account your personal investment objectives or financial situation.DOC 19/05/10 17:14 Page 1 . This PDS does not constitute an offer or an invitation in any place outside Australia where.9 of the Corporations Act and the Corporations Regulations. the terms and conditions under which warrants are issued and the operation of the warrants market in general.asx. Citi will notify ASIC that this PDS is in use in accordance with section 1015D of the Corporations Act. free of charge. Electronic Documents ASX Booklets A copy of this PDS is available online at www. its associates or any other person to invest in the Warrants or in the Securities that make up an Underlying Parcel. it must be downloaded in its entirety.). Neither the Warrants nor this PDS will be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States or to. Section 8 contains definitions of certain terms used in this PDS.A. it would be unlawful to make such an offer or invitation.com.4 MAY 10. Nothing in this PDS is. or sold by the Issuer: (i) are not insured by the Federal Deposit Insurance Corporation. AND TAKE INTO ACCOUNT YOUR OWN PERSONAL INVESTMENT OBJECTIVES AND FINANCIAL SITUATION.au. The offer of Warrants under this PDS is only made to Australian residents located in Australia. nothing in this PDS is a recommendation by Citi. (Sydney Branch) and these entities do not stand in any way behind the capital value and/or performance of the Warrants. (ii) are not deposits or other obligations or liabilities of any insured depository institution (including Citibank. Cooling-off Period There is no cooling off period when you buy or sell the Warrants issued under this PDS. or may be relied upon as. This PDS is dated 4 May 2010. offered. The ASX publishes a number of booklets in relation to warrants.citiwarrants. Any information or representation not contained in this PDS must not be relied upon as having been authorised by or on behalf of the Issuer. This PDS complies with section 10 of the Market Rules as varied or waived by ASX. On the exercise of a Warrant the Holder represents and warrants that the Warrant is neither directly nor indirectly held in favour of a US Person. Accordingly. Where those changes are not materially adverse to Holders. The distribution of this PDS in jurisdictions outside Australia may be restricted by law. or for the account of.
70 4.00 35.00 32.00 Single-Touch 29 July 2010 2 European Style 20MM BHPYOS Barrier Put 45.50 Barrier Level 22.00 Single-Touch 29 July 2010 2 European Style 20MM FMGXOB Barrier Call 4.00 Single-Touch 29 July 2010 4 European Style 40MM NCMXOA Barrier Call 28.50 57.00 63.50 36.00 29.00 46.50 Single-Touch 29 July 2010 5 European Style 50MM CBAXOZ Barrier Put 63.00 5.50 Single-Touch 29 July 2010 2 European Style 20MM BHPXOH Barrier Call 36.TERM SHEET ASX Code Type Exercise Price 22.50 Single-Touch 29 July 2010 2 European Style 20MM BHPXOO Barrier Call 30.00 Single-Touch 29 July 2010 2 European Style 20MM CSLXOP Barrier Put 33.80 Single-Touch 29 July 2010 2 European Style 20MM FMGXOQ Barrier Put 5.50 37.50 27.00 28.00 Single-Touch 29 July 2010 2 European Style 20MM CSLXOQ Barrier Put 35.00 30.00 Single-Touch 29 July 2010 2 European Style 20MM CBAXOY Barrier Put 57.00 Single-Touch 29 July 2010 4 European Style 40MM NCMXOB Barrier Call 29.00 Single-Touch 29 July 2010 5 European Style 50MM CSLXOA Barrier Call 30.10 Single-Touch 29 July 2010 2 European Style 20MM FMGXOD Barrier Call 3.10 4.00 33.80 3.00 Single-Touch 29 July 2010 2 European Style 20MM FMGXOS Barrier Put 4.50 Barrier Trigger Single-Touch Relevant Expiry Date 29 July 2010 Required Number 2 Exercise Style Issue Size 20MM ANZXOA Barrier Call European Style ANZXOH Barrier Call 23.00 23.70 Single-Touch 29 July 2010 2 European Style 20MM MQGXOG Barrier Call 46.50 Single-Touch 29 July 2010 2 European Style 20MM BHPXOI Barrier Call 37.00 45.00 Single-Touch 29 July 2010 5 European Style 50MM CBAYOP Barrier Put 64.00 30.00 Single-Touch 29 July 2010 2 European Style 20MM CSLXOB Barrier Call 32.00 Single-Touch 29 July 2010 2 European Style 20MM ANZXOV Barrier Put 27.00 64.00 Single-Touch 29 July 2010 4 European Style 40MM Citigroup Inc_Turbo_20100504 2 .
00 16.00 87. YOU SHOULD READ THIS ENTIRE PDS AND CONTACT YOUR STOCKBROKER OR OTHER PROFESSIONAL FINANCIAL ADVISER BEFORE MAKING ANY DECISION TO INVEST Citigroup Inc_Turbo_20100504 3 .00 Single-Touch 29 July 2010 4 European Style 40MM RIOXOX Barrier Put 84.00 62.00 84. IN PARTICULAR.00 Single-Touch 29 July 2010 4 European Style 40MM RIOXOD Barrier Call 62.00 Single-Touch 29 July 2010 4 European Style 40MM STOXOA Barrier Call 12.00 Single-Touch 29 July 2010 4 European Style 40MM RIOXOE Barrier Call 58.50 11.00 Single-Touch 29 July 2010 4 European Style 40MM RIOXOY Barrier Put 87. INVESTORS WILL LOSE THEIR ENTIRE INVESTMENT.00 Single-Touch 29 July 2010 2 European Style 20MM WOWXOR Barrier Put 28.00 58.00 30.00 Single-Touch 29 July 2010 2 European Style 20MM IMPORTANT NOTE INVESTORS SHOULD NOTE THAT AN INVESTMENT IN TURBO WARRANTS REPRESENTS A GREATER DEGREE OF RISK THAN AN INVESTMENT IN REGULAR EQUITY PUT AND CALL WARRANTS.50 Single-Touch 29 July 2010 2 European Style 20MM STOXOT Barrier Put 16.50 12.00 28.50 Single-Touch 29 July 2010 2 European Style 20MM STOXOE Barrier Call 11. INVESTORS SHOULD NOTE THAT IF A BARRIER LEVEL IS TRIGGERED DURING THE LIFE OF A WARRANT.NCMXOE Barrier Call 30.
TABLE OF CONTENTS SECTION 1 KEY INFORMATION SECTION 2 THE UNDERLYING PARCEL SECTION 3 ISSUER AND GUARANTOR DETAILS SECTION 4 RISK FACTORS SECTION 5 TAXATION CONSIDERATIONS SECTION 6 ADDITIONAL INFORMATION SECTION 7 TERMS OF ISSUE SECTION 8 DEFINITIONS AND INTERPRETATION APPENDIX 1 FINANCIAL SERVICES GUIDE APPENDIX 2 EXERCISE NOTICE CORPORATE DIRECTORY Citigroup Inc_Turbo_20100504 4 .
What is a Put Warrant? A put warrant gives a holder the right to put or sell the underlying parcel to the warrant issuer. this is when the price at which the underlying parcel is trading on ASX is lower than the exercise price at the time the warrant is exercised. this is when the price at which the underlying parcel is trading on ASX is greater than the exercise price at the time the warrant is exercised. or in the case of cash settled warrants (such as index warrants). cash settled warrants (such as index warrants). The underlying instrument is usually referred to as the Underlying Parcel. The Terms of Issue prevail to the extent of any inconsistency with any other part of this PDS. the Warrant will terminate. a commodity or a currency. Citigroup Inc_Turbo_20100504 5 . The “time” at which a Warrant will terminate as a result of a Barrier Level being triggered will depend on the type of Barrier Trigger for the particular Series of Warrants. a call warrant gives a holder of the required number of warrants the right to acquire the underlying parcel (the BHP-Billiton share) from the warrant issuer for the exercise price on the valid exercise of the warrant and payment of the exercise price. Investors should note that the exercise of a warrant would only usually take place when the warrant is “in the money”. If the Securities that make up the Underlying Parcel trade on ASX at or beyond the Barrier Level. A warrant is a derivative product. In the case of a put warrant.SECTION 1 – KEY INFORMATION This is a brief description only. The terms under which the Warrants are issued include a Barrier Level and a Barrier Trigger. derives its value from an underlying instrument. or in the case of The “time” at which a Warrant terminates due to a breach of the Barrier Level will depend on the type of Barrier Trigger. Barrier Warrants are also described as “Turbo Warrants”. as set out in section 7. What is the Barrier Trigger? Investors should note that in circumstances where a Warrant terminates as a result of the Barrier Level being triggered. and as such. and differ from regular. a BHP-Billiton share). a Holder will lose their entire investment in the Warrants. prior to making any decision to invest. In the case of a warrant where the underlying parcel is a security or securities (for instance. In the case of a call warrant. Details of the type of Warrants issued under this PDS appear in the Term Sheet and are discussed in more detail below. Investors should read this entire PDS. to receive a cash payment. a Rio Tinto share). The Securities that make up the Underlying Parcels of the Warrants are ASX listed securities. in particular the Terms of Issue. The terms of issue of the Warrants and the rights and obligations of Holders and Citi are governed by the Terms of Issue. What is the Underlying Parcel? Information about the Underlying Parcel of the Warrants The Warrants issued under this PDS are known as Barrier Warrants. Investors should note that the exercise of a warrant would only usually take place when the warrant is “in the money”. What is a Warrant? Warrants are financial products that are traded on ASX. a put warrant gives a holder of the required number of warrants the right to sell the underlying parcel (the Rio Tinto share) to the warrant issuer for the exercise price on the valid exercise of the warrant. Details of the Barrier Level and the Barrier Trigger appear in the Term Sheet. The Barrier Trigger is either “Single-Touch” or “On-Close”. This includes both ordinary shares in the capital of companies and units of listed trusts. In the case of a warrant where the underlying parcel is a security or securities (for instance. What are the features of a Barrier Warrant? A call warrant gives a holder the right to call for the delivery of the underlying parcel from the warrant issuer. and is indicated in the Term Sheet. or “vanilla” equity put and call warrants. What is a Call Warrant? appears in the Term Sheet and further details appear in section 2. The underlying instrument can be a security or securities. The Entities ASX codes appear in the Term Sheet as the first 3 letters of the ASX code for a particular Warrant. to receive a cash payment. an index.
acquire the Underlying Parcel for a total cost of $11. distributions or other rights which may be payable where Securities make up the Underlying Parcel. • the ability to buy and sell the Warrants on ASX at any time prior to expiry. ASX will suspend the Warrant from trading and the Warrant will automatically terminate with effect from the time of suspension of trading pursuant to the Terms of Issue. Citigroup Inc_Turbo_20100504 6 . on exercise of the Required Number of Warrants. then the Warrant will automatically terminate and a Holder will not be entitled to any payment with respect to that Warrant. if the Last Traded Price on ASX of the Securities that make up the Underlying Parcel: • is less than or equal to the Barrier Level in the case of a Call Warrant. What happens if a Barrier Level is triggered? If a Barrier Level is triggered in respect of a particular Series of Warrants. In the case of a Put Warrant. this is when the closing price of the Underlying Parcel on ASX is lower than the exercise price at the time the Warrant is exercised. Investors should note that they are not entitled to any dividends. the Holder can. How are these benefits calculated? A Holder will generally only receive a financial benefit on the exercise of a Warrant where that Warrant is “in the money”. the Holder can. Holders may also be entitled to receive benefits in circumstances where the Warrants are terminated early or where a Holder has failed to exercise prior to expiry. however Holders will not receive any benefit if a Warrant terminates early due to a Barrier Level being triggered. Citi will notify ASX and will cease making markets in the Warrant. or • is greater than or equal to the Barrier Level in the case of a Put Warrant. • • gaining exposure to the instrument that makes up the Underlying Parcel for a fraction of the upfront cost of acquiring the Underlying Parcel outright. In each case the Warrant has an Exercise Price of $10. What are the significant benefits that a Holder of a Warrant may receive? • The potential benefits of investing in Barrier Warrants issued by Citi include: • greater leverage than regular or “vanilla” equity put and call warrants. • • In the case of a Call Warrant. this is when the closing price of the Underlying Parcel on ASX is greater than the exercise price at the time the Warrant is exercised. or • is greater than or equal to the Barrier Level in the case of a Put Warrant.Single-Touch Barrier Trigger In the case of a “Single-Touch” Barrier Trigger. Following this notification. In the case of a Put Warrant. • the ability to fix the price at which the Underlying Parcel can be bought and sold at the time of purchase. then the Warrant will automatically terminate and a Holder will not be entitled to any payment with respect to that Warrant. In what circumstances can I receive these benefits? In the case of an “On-Close” Barrier Trigger. • the potential for greater returns than the equivalent investment in the Underlying Parcel due to the leverage provided by the Warrants. The figures used in the following examples are illustrative only for the purpose of explaining how the financial benefits are calculated.00 (Exercise Price plus purchase price of the Warrants). on any Trading Day prior to the Relevant Expiry Date. dispose of the Underlying Parcel for the net sale proceeds of $9.00 and a purchase price of $1. In the case of a Call Warrant. and • at any time on any Trading Day prior to Closing Time on the Relevant Expiry Date.00. “On-Close” Barrier Trigger the ability to take advantage of both rising and falling markets. if the Market Price on ASX of the Securities that make up the Underlying Parcel: • is less than or equal to the Barrier Level in the case of a Call Warrant.00 (Exercise Price less purchase price of the Warrants). on exercise of the Required Number of Warrants.
on the completion of a takeover offer and the compulsory acquisition of the Securities that make up the Underlying Parcel.What are the significant risks associated with the Warrants? A full description of risk factors relating to investing in Warrants can be found in section 4 of this PDS. the Underlying Parcel can change during the life of the Warrant. Citi will reduce the Barrier Level and Exercise Price of that Warrant by an amount equal to the Dividend amount. a particular Series of Warrants will automatically terminate on a Barrier Level for that Warrant being triggered. Can the terms of the Warrant or the Underlying Parcel change? Yes. Can the Warrants terminate early? Yes. make an assessment of whether the Warrants are a suitable investment before any decision is made to invest. The Warrants will also automatically terminate on the occurrence of an Extraordinary Termination Event. A European Style Warrant can Warrants to be issued under this PDS will only be made to Citigroup Australia Holdings. Investors should consult their stockbroker or financial adviser to ascertain the suitability of investing in Warrants as part of their particular investment strategies. or on court approval of a scheme of arrangement. Citigroup Inc_Turbo_20100504 7 . See clause 1. in conjunction with their professional advisers. Potential investors should. in accordance with such other method as determined by Citi. • • gearing without the risks of margin calls. or. This adjustment will take effect on the ex-dividend date of the relevant Securities. Like any investment that offers the potential for profit there is a corresponding potential for loss. and • risks associated with options and share markets generally. The Warrants have the following key risks: • may terminate early if a Barrier Level is triggered. INVESTORS SHOULD ALSO NOTE THAT IF A BARRIER LEVEL IS TRIGGERED THEY MAY RECEIVE NO PAYMENTS AND SUFFER THE LOSS OF THEIR ENTIRE INVESTMENT. if the application of those rules is inappropriate in the circumstances. The Term Sheet details whether a Warrant is an American Style Warrant or European Style Warrant. with the consent of ASX. In circumstances where Securities make up the Underlying Parcel. Investors should be aware that the Warrants may decrease in value at a greater rate than an investment in the Underlying Parcel. Details of these changes appear in section 2 and the Terms of Issue. the Exercise Price and/or the Required Number. IN PARTICULAR. Who can apply for Warrants under this PDS? The initial offer by Citi of each Series of Put and Call What is the difference between American and European style warrants? The way in which a Warrant may be exercised depends on whether that Warrant is an American Style Warrant or European Style Warrant. Are Warrants a suitable investment for me? The Warrants issued under this PDS offer investors the following features: • the ability to leverage short term views of securities on the share market generally. and greater volatility and price movement than a direct investment in the Underlying Parcel. An American Style Warrant may be exercised at any time during its term up to and including the expiry date. No application form is included in this PDS and applications from any other person will not be accepted. only be exercised on the expiry date. • risk of losing all or part of an investment in the Warrants. Investing in Warrants involves a significant degree of risk. When do the Warrants expire? The Relevant Expiry Date for each particular Series of Warrants appears in the Term Sheet. the Barrier Level. On the declaration of a Dividend in relation to a Security which makes up the Underlying Parcel. Subject to the consent of ASX. Citi reserves the right to increase or decrease the issue size of a particular Series of Warrants in its absolute discretion. These changes will be made in accordance with the Market Rules. corporate actions (such as rights issues or reconstructions) may result in a change to the Securities that make up the Underlying Parcel.4 of the Terms of Issue for further details.
This is not a fixed amount. This is an amount that forms part of the price of the Warrant. Investors should also note that a discretionary risk premium is applied by Citi when pricing a Barrier Warrant on ASX. Citi does not pay fees or commissions to brokers or financial advisers in relation to the purchase of Warrants.No Warrants will be issued on the basis of the PDS later than the Closing Date which is the Business Day that is 14 days prior to the Relevant Expiry Date. The Required Number of Warrants for a particular Series relates to one Underlying Parcel. The Exercise Price is set out in the Term Sheet but may be varied by Citi in accordance with clauses 1. How do you exercise the Warrants? Exercise Notices for the Warrants appear at the back of • the anticipated volatility of the Underlying Parcel. and that number is set out in the Term ▲ ▲ ▼ Sheet. the proximity of the price of the Securities which make up the Underlying Parcel to the relevant Barrier Level.8 of the Terms of Issue. this will require you to provide payment of the Exercise Price for the Warrants. Citigroup Inc_Turbo_20100504 8 . In the case of the exercise of a Put Warrant. this will The effect that these factors may have on the price of the Warrants is demonstrated in the following table: Variable Change in Variable Effect on Price of Call Warrant Price of Underlying Parcel Volatility of Underlying Parcel Time remaining to maturity Holders should note that one Warrant does not Future expected dividends Interest rates Effect on Price of Put Warrant require you to provide details of your shareholding in relation to the Securities that make up the Underlying Parcel that are to be delivered to Citi. The Exercise Price is set out in the Term Sheet but may be varied by Citi in accordance with clauses 1. this PDS and include detailed instructions on how they should be completed. among other things.asx. valid Exercise Notices are irrevocable and will be acted upon on their becoming effective.com.7 or 1. including accessing the relevant information online (through www. and may vary depending on. however investors should note your stockbroker or financial adviser may charge you commission on the purchase of Warrants. Holders must exercise a multiple of the Required Number of Warrants in order to put or call for the Underlying Parcel. How much do the Warrants cost? The Issue Price of each Series of Warrant is not set out in this PDS. • the time remaining to the Relevant Expiry Date. to the purchase of Warrants. The Issue Price for each Series will be determined by Citi based on the price at which the Securities that make up the Underlying Parcel are trading when the initial offer of the Warrants is taken up by Citigroup Australia Holdings.8 of the Terms of Issue. and is a cost associated with managing the barrier risk. and prevailing interest rates. ▲ ▼ ▲ necessarily equal one Underlying Parcel. subject only to no other Exercise Notice being given in respect of the ▲ ▲ ▼ ▲ ▲ ▲ same Warrant which renders the first Exercise Notice ineffective. The risk premium is an amount determined by Citi in its sole discretion.7 or 1.au) or contacting their stockbroker or other financial adviser. Once given. See clause 3 of the Terms of Issue for further details of the requirements for completing a valid Exercise ▼ ▼ ▼ Notice. fees and expenses payable? You will not pay any fees or commissions to Citi in relation Investors wishing to purchase the Warrants in the secondary market will be able to determine the price at which the Warrant is trading in a number of ways. In the case of the exercise of a Call Warrant. including: • the price at which the Underlying Parcel is trading. Are any commissions. • • future expected dividends (if any). This price will be impacted by a number of factors. Holders will receive the Exercise Price in return for the delivery of the Underlying Parcel.
If a Warrant has been exercised before Closing Time on the Relevant Expiry Date. Investors should obtain their own independent taxation advice prior to any decision to invest in the Warrants. What are the taxation implications associated with the Warrants? The acquisition.6 of the Terms of Issue.What happens if I do not exercise my Warrants? If a Warrant has not been exercised by a Holder before Closing Time on the Relevant Expiry Date for that Series. and exercise of Warrants may have income tax or capital gains tax implications for Holders. subject to no early termination due to a Barrier Level being reached. Citigroup Inc_Turbo_20100504 9 . dealing in. depending upon their own individual circumstances. then the Holder will be entitled to receive the Expiry Value less any Exercise Costs. but the Exercise Notice is invalid. An explanation of how the Expiry Value of a Warrant is calculated appears in clause 1. See section 5 of this PDS for details. then the Holder will be entitled to receive the Expiry Value of the Warrant.
bonus issues and rights issues. this may be adjusted to take into account corporate actions that may affect the Securities that make up the Underlying Parcels (see “Corporate Actions” below). Corporate Actions: Variation of Exercise Price. the Entities themselves. During the life of the Warrant. the Warrants will terminate on the date the scheme procedure is approved by court order pursuant to clause 1. Holders should note that one Warrant does not necessarily equal one Underlying Parcel. with the consent of ASX.4 of the Terms of Issue. obtain advice in relation to any investment decisions. Information (including historical data and trading information) about these Entities can be obtained from a variety of sources including ASX. Holders should obtain professional advice in relation to the takeover offer and its relationship to any Warrants they may hold. This includes both ordinary shares in the capital of companies and units of listed trusts. Dividends and other Distribution Rights A Holder is not entitled to any dividends. The Entities ASX codes appear in the Term Sheet as the first 3 letters of the ASX code for a particular Warrant. and that number is set out in the Term Sheet. If the application of these provisions is inappropriate in particular circumstances. the Warrant will terminate early pursuant to clause 1. Where a Dividend is declared by an Entity in relation to Securities which make up the Underlying Parcel of a Warrant. Investors should make their own inquiries and where appropriate. These adjustments will take effect on the exdividend date of the relevant Securities. Citi takes no responsibility and accepts no liability for. undertaking or guarantee that a Holder will be able to participate in a takeover on the exercise of a Call Warrant. The initial Underlying Parcel for each Series of Warrants is one Security. Citi gives no assurance. then Citi will. brokers and investment advisers. Voting Rights A Holder is not entitled to any voting rights that may relate to the Underlying Parcel. a Holder of a Call Warrant may be able to participate in the takeover by exercising the Warrant and calling for the Securities. a Holder may not be able to participate in a takeover due to the nature of the particular takeover offer or due to the operation of the Corporations Act or other relevant laws in those circumstances. If a scheme of arrangement is adopted in relation to the Securities that make up the Underlying Parcel. Information may also be found on the websites of the Entities. and makes no representation or warranty (whether express or implied) as to the accuracy or completeness of any information obtained by an investor about an Entity. the ASX website and related sites. Citi (or an associate) may in its absolute discretion exercise any voting rights it may have in relation to those securities with regard to its interests alone. These Entities are subject to the continuous disclosure requirements imposed by ASX and by the Corporations Act. The treatment of these corporate actions by Citi with respect to the Warrants is set out in clause 1. These events include a reconstruction of capital.7 of the Terms of Issue and is consistent with the treatment of options under the Market Rules in relation to the exchange traded options market. adopt an alternative treatment to preserve the interests and position of Holders under the Warrants. Citi (or an associate) may from time to time hold the Securities that make up or relate to the Underlying Parcel. If a takeover in respect of the Securities that make up an Underlying Parcel reaches compulsory acquisition. The Required Number of Warrants for a particular Series relates to one Underlying Parcel. however. Barrier Level and Underlying Parcel A number of corporate actions by the relevant Entity whose Securities make up the Underlying Parcel may have the effect of varying the Exercise Price and the Barrier Level of a Warrant and/or the composition of the Underlying Parcel.4 of the Terms of Issue. Citi will reduce the Barrier Level and Exercise Price of that Warrant by an amount equal to the Dividend amount. Takeovers and Schemes of Arrangement If a takeover offer is made for the Securities that make up the Underlying Parcel. However. Citigroup Inc_Turbo_20100504 10 . a cash return of capital. Holders must exercise a multiple of the Required Number of Warrants in order to put or call for the Underlying Parcel.SECTION 2 – THE UNDERLYING PARCEL Introduction The Securities that make up the Underlying Parcels of the Warrants are ASX listed securities. distributions or other rights that may relate to the Underlying Parcel.
’s activities and the activities of its subsidiaries are conducted through the Global Consumer Group and the Institutional Clients Group business segments and through Citi Holdings. and subject to examination by.com. Primerica and Banamex.S. Disclaimer The Group established a presence in Australia in 1971 and in New Zealand in 1982. Citi in Australia and New Zealand The principal executive offices of companies are located at 399 Park Avenue.A. most credit rating agencies are no longer consenting to the inclusion of credit rating information in retail disclosure documents issued in Australia. governments and institutions with a broad range of financial products and services. which has a 49% Citigroup Inc_Turbo_20100504 11 .400 full-time and 4. in respect of the Warrants appear in section 6 of this PDS. the capacity of the Guarantor to fulfil its obligations under the deed of guarantee or the risks. in this PDS.’s website at www.com. securities brokerage. has more than 200 million customer accounts and does business in more than 100 countries.). Citigroup Inc. Additional information may be found at www. Citigroup Inc. Details of the guarantee given by Citigroup Inc. The Group counts as valued clients 10 million customers across 18 countries and territories.citigroup. U. rights or obligations associated with the Warrants since 31 December 2006 (in the case of Citigroup Australia) and 31 December 2007 (in the case of Citigroup Inc. the Group provides financial services to more than 1 million consumers and over 900 corporate clients in Australia and New Zealand.com.S. Citigroup Inc. As a consequence.. become available except as disclosed in this PDS. Today. corporate and investment banking. a leading global financial services company.citigroup. but does not guarantee the performance of the Warrants. one of Australia’s leading private client groups. CitiFinancial.. Citigroup Inc. and wealth management. Financial Information about Citigroup Australia and the Guarantor Audited financial information about Citigroup Australia and the Guarantor. Citigroup Inc. including consumer banking and credit.au. At 31 December 2008.’s major brand names include Citibank. the Board of Governors of the Federal Reserve System (FRB). Other information about the Guarantor can be found on Citigroup Inc.citiwarrants. Due to changes to the regulatory environment. and its subsidiaries had approximately 134.citiwarrants. Copies of financial statements of the Issuer can be found on: http://www. Bank Holding Company Act of 1956 registered with. the group’s securities and investment banking business commenced operations and in 1985 Citibank Pty Limited (now Citigroup Pty Limited) became the first foreign bank to be granted an Australian banking licence. corporations.au/library/financials/ Hard copies of those financial statements can be obtained free of charge by calling Citi on 1300 30 70 70. guarantees the performance of the Issuer’s obligations under this PDS and the Terms.com. General Information about the Guarantor No circumstance has arisen and no information has The obligations of Citigroup Australia under this PDS in respect of the Warrants are guaranteed by Citigroup Inc. stake in Morgan Stanley Smith Barney Pty Limited. the Issuer is not able to provide information in relation to the credit ratings of Citigroup Inc.citi. New York 10022. In 1984. Citigroup Inc. was incorporated in 1988 under the laws of the State of Delaware and is a bank holding company within the meaning of the U.100 part-time employees in the United States and approximately 188. to ASX or on the website referred to in the previous paragraph that would materially affect an investor’s decision for the purpose of making an informed assessment of the capacity of Citigroup Australia to fulfil its obligations under the Terms of Issue. The Group has been in the Asia Pacific region for more than 100 years and today provides more services in more markets for more clients than any other financial institution. as well as information about the directors of Citigroup Australia and the Guarantor can be found online at www.SECTION 3 – ISSUER AND GUARANTOR DETAILS The Warrants issued under this PDS will be issued by Citigroup Global Markets Australia Pty Limited which is a wholly owned subsidiary of Citigroup Inc.com or www. New York.400 full-time employees outside the United States. providing consumers. and a member of the Citigroup Inc group of companies (“Group”).
and the ability of the Guarantor to fulfil its obligations under the deed of guarantee. and investors will lose their entire investment in the Warrant. Investors should note that the Warrants may terminate early. Nothing in this PDS is.4. Potential investors should note that this means that an investment in Barrier Warrants represents a greater level of risk than an investment in regular equity put and call Warrants. Nor is there sufficient evidence as to whether that market will be liquid or illiquid. • in the case of a Call Warrant where the Barrier Trigger is “Single-Touch”. The quality of market making will depend on competitive pressures. POTENTIAL INVESTORS SHOULD REACH AN INVESTMENT DECISION ONLY AFTER CAREFULLY CONSIDERING. the presence of quotes suitable to your particular requirements in the market cannot always be assured. The Warrants may be significantly less valuable on the Relevant Expiry Date or may expire worthless. the volatility of those Securities. In times of extreme volatility the ability of market makers to maintain a market will be put under stress. Unlike regular. in the circumstances described in clauses 1. the Barrier Level of the Warrants. Performance of Obligations by Citi and the Guarantor The value of the Warrants depends on the ability of Citi to fulfil its obligations under the Terms of Issue on exercise. interest rates and risks applicable to stock markets generally. or may be relied upon as being. Possible Illiquidity of Trading Market Investors should be aware that there is no firm indication Specific Risks associated with Barrier Warrants The Warrants issued under this PDS are Barrier Warrants. as to how the Warrants will trade in the secondary market. Investors should be aware that in these situations. OPTION TRANSACTIONS. applied to the market making requirements. Citigroup Inc_Turbo_20100504 12 . and the Relevant Expiry Date may be postponed.SECTION 4 – RISK FACTORS SUBSCRIPTION FOR OR THE PURCHASE OF THE WARRANTS IS CONSIDERED BY CITI TO BE SUITABLE ONLY FOR INVESTORS WITH EXPERIENCE IN. However.3 and 2. the Required Number of Warrants for a particular Series. early termination or expiry.4 of the Terms of Issue. the relevant Warrant will automatically terminate. if the Market Price of the Underlying Parcel at any time on any Trading Day is equal to or falls below the Barrier Level. If a Barrier Level is reached. WITH THEIR ADVISERS. the time remaining to expiry. if the Market Price of the Underlying Parcel at any time on any Trading Day is equal to or exceeds the Barrier Level. TAKING INTO ACCOUNT THE RISK FACTORS RELATING TO THE WARRANTS SET OUT BELOW. Postponement or early termination may affect the value of the Warrants and may result in a partial or total loss of the investment. if the Last Traded Price of the Underlying Parcel is equal to or falls below the Barrier Level. THE SUITABILITY OF THE WARRANTS IN LIGHT OF THEIR PARTICULAR CIRCUMSTANCES. Factors Affecting Warrant Value The value at which a Warrant may be bought or sold on ASX is expected to be dependent upon such factors as the price at which the Securities that make up the Underlying Parcel are trading on ASX. • in the case of a Put Warrant where the Barrier Trigger is “On-Close”. there are no spread or quantity obligations Termination will occur in the following circumstances: • in the case of a Call Warrant where the Barrier Trigger is “On-Close”. if the Last Traded Price of the Underlying Parcel is equal to or exceeds the Barrier Level. Investors must make their own assessment of the ability of Citi to meet its obligations in respect of the Warrants and the ability of the Guarantor to meet its obligations under the deed of guarantee. OR ON THE ADVICE OF PROFESSIONAL ADVISERS WITH EXPERIENCE IN. or • in the case of a Put Warrant where the Barrier Level is “Single-Touch”. a representation as to any future event or a promise as to the future of Citi’s or the Guarantor’s ability to perform their respective obligations. Barrier Warrants will automatically terminate if the Barrier Level of a particular Series of Warrants is reached. This means that Holders may either lose money or sustain a total loss on their investment. 2. Citi has arranged for its Broker to conduct market making activities in relation to the Warrants by the provision of bids and offers made in a spread around the prevailing market price to help ensure liquidity in the market for the Warrants. the Exercise Price of the Warrants. Investment in the Warrants is speculative. or “vanilla” equity put and call Warrants.
See clause 1. Legislative Risks A number of risks may exist and impact on a Holder of a Warrant as a result of Australian legislation. Accordingly. The issues raised by Chapter 6 in the context of Warrants are complex. and are dependant on individual circumstances and the interpretation of the law in this area. Prospective investors should therefore ensure that they understand the nature of the Warrants and carefully study the risk factors set out in this PDS before they invest in the Warrants. or the Warrants. This is known as an Extraordinary Postponing Event. The fact that Warrants may become significantly less valuable over their term and in certain circumstances automatically terminate or expire worthless. in particular those provisions that relate to an acquisition by a person of shares or other securities that would give rise to a relevant interest (as defined in the Corporations Act). Holders will be entitled to receive the Expiry Value of the Warrants. These include the powers to nominate Extraordinary Postponing Events and Extraordinary Termination Events. Extraordinary Events Citi may. nothing in this PDS should be construed as a recommendation by Citi or any associate of Citi or any other person concerning investment in the Warrants.General Market Risks General movement in local and international stock markets. If the Warrants terminate early. Citigroup Inc_Turbo_20100504 13 . the Barrier Level or the nature of the Underlying Parcel. The acquisition and/or exercise of a Warrant may also have implications for certain Holders under the provisions of the Foreign Acquisitions and Takeovers Act 1975 (Cth). An Extraordinary Termination Event is an event which is beyond the reasonable control of Citi and which in the reasonable opinion of Citi has or will have a material adverse effect on its ability to perform its obligations or hedge its exposure with respect to the Warrants. or any other security. Holders should obtain their own legal advice on this issue. terminate the Warrants before their Relevant Expiry Date on the occurrence of an Extraordinary Event.1 of the Terms of Issue and include the removal from quotation on ASX. Prospective Holders should seek independent professional advice on the nature of these risks. Investment Decisions The information in this PDS is intended to provide investors and their professional advisers information they would reasonably require and reasonably expect to find for the purpose of making an informed assessment of the capacity of Citi to fulfil its obligations under the Warrants and the risks. The Extraordinary Events are set out in clause 2. financial situation and particular needs of each investor. Exercise of Discretion by Citi Investors should note that a number of provisions of the Terms of Issue confer discretions on Citi which could affect the value of the Warrants. Holders do not have the power to direct Citi concerning the exercise of any discretion. rights and obligations associated with the Warrants. Readers should not rely on this PDS other than in respect of those matters referred to above. However. prevailing and anticipated economic conditions and interest rates. Investors should note that the trigger of a Barrier Level of a Warrant is not an Extraordinary Event. The acquisition and/or exercise of a Warrant may have implications for Holders under Chapter 6 of the Corporations Act. with the consent of ASX. Citi may only exercise those discretions with the consent of ASX. to determine whether rights offered have value and to calculate or modify the method of calculation of the Exercise Price. Potential Holders should obtain their own legal advice on this question. and should not rely on it as the sole basis for any investment decision in relation to Warrants. means that the purchaser of a Warrant may lose some or all of the purchase price paid for the Warrants. in relation to many of these discretions. It is impossible in a document of this type to take into account the investment objectives. investor sentiment and general economic conditions could all affect the market price of Warrants (in the same way that they affect other investments). unless that consent is unreasonably withheld or delayed. which is calculated in accordance with the Market Rules.4 of the Terms of Issue. Investors are warned that the price of a Warrant may fall in value as rapidly as it may rise and Holders may sustain a total loss of their investment. which is held to be an Extraordinary Termination Event. the withdrawal from admission to trading status on ASX or the suspension of trading status on ASX of the Securities that make up the Underlying Parcel. including tax law. The Relevant Expiry Date may also be postponed for up to 10 Business Days if an Extraordinary Event has occurred and is continuing on the Relevant Expiry Date.
the Warrants will continue notwithstanding any delisting. Potential Conflicts of Interest Companies in the Citigroup group of companies and Citi itself may buy and sell Warrants. either as principal or agent. Suspension of Warrant Trading Trading of Warrants on the stock market conducted by ASX may be halted or suspended by ASX. Matters that may be considered also include circumstances where Citi becomes unable or unwilling or fails to comply with the Market Rules or if ASX in its absolute discretion thinks fit. Except where it is determined to be an Extraordinary Termination Event. withdrawal of trading status or suspension of the Warrants from ASX. Citigroup Inc_Turbo_20100504 14 . the National Guarantee Fund or ASTC. Citi may have a potential conflict of interest of which you are not aware and which it is unable to disclose to you. Any profits earned and losses incurred by Citi and its Broker in their trading activities in Warrants will accrue entirely to them independent of Citi's obligations to Holders. Citi and its Broker are not in a fiduciary relationship with Holders. This may occur whenever ASX deems such action appropriate in the interests of maintaining a fair and orderly market in Warrants or otherwise deems such action advisable in the public interest or to protect investors. Securities and other interests relating to the Warrants or the Securities. The capacity of Citi to settle all outstanding Warrants is not guaranteed by ASX. where the individuals conducting market making activities in relation to the Warrants are prevented from knowing or taking into account such information by reason of Chinese walls. companies in the Citigroup group of companies and Citi itself may have material price sensitive information relating to securities that make up the Underlying Parcel. This trading may impact positively or negatively on the price at which the Warrants trade on ASX. In addition.National Guarantee Fund – not a Guarantor in all cases Claims against the National Guarantee Fund may only be made in respect of secondary trading in Warrants between brokers on ASX and cannot be made in relation to the primary issue of Warrants by Citi. The rights of Holders against Citi are set out in the Terms of Issue.
is sold or is exercised. the purchase price. The Holder will make a capital gain to the extent that the disposal proceeds exceed the cost base of the Warrants. and no franking tax offsets will be available by virtue of holding the Warrants. Holding your Warrants Holders will not receive any dividends or distributions as a result of holding the Warrants. Certain other Holders may hold the Warrants on revenue account. This advice is based on law and Australian Taxation Office practice that is current as at the date of this PDS. A Holder will be regarded as having disposed of a Warrant for the purposes of this section if it is sold. expires unexercised or is terminated early (for example. The Warrants may be trading stock of a Holder if they are acquired for the purposes of sale or exchange in the ordinary course of the Holder’s business. if they acquire the Warrants to hedge securities that they hold on capital account) will likely hold the Warrants on capital account for tax purposes. Purchasing your Warrants Purchasing Warrants does not give rise to any immediate This section is necessarily general in nature and does not take into account the specific taxation circumstances of each potential investor. If a Holder makes a capital loss the loss can only be used to reduce the Holder’s capital gains. forms part of the cost base of the Warrant for capital gains tax purposes and part of the “cost” of the Warrants if the Holder holds the Warrants on revenue account. terminates. companies and complying superannuation funds. the TOFA regime may impact upon the tax character and tax timing of gains and losses arising from those financial arrangements. Consequently no assessable income will arise. Potential investors should obtain advice on this issue as the rules are complex and their application will be dependent upon an investor’s own specific circumstances. Potential investors acquiring a Put Warrant to hedge an Underlying Parcel should be aware that the “franking credit trading provisions” in the applicable taxation legislation may affect the availability of franking tax offsets on dividends or distributions they receive from the Underlying Parcel. Potential investors should not rely on this section and should obtain specific taxation advice referable to their own circumstances prior to making any investment decision. if the Warrant is terminated as a result of the Barrier Level being reached). Holders may derive assessable dividends or distributions (and franking tax offsets) referable to the Securities comprising the Underlying Parcel if they exercise a Call Warrant and acquire an Underlying Parcel. Moreover. TOFA Investors on capital account A regime for the taxation of certain financial arrangements (the “TOFA regime”) was enacted on 26 March 2009. Potential investors should seek their own advice on any changes after the date of this PDS to any law or administrative interpretation which may affect the tax consequences of investing in the Warrants. Holders who acquire the Warrants for the purpose of disposing of them at a profit will typically hold the Warrants on revenue account for tax purposes. This will be relevant to the tax consequences for the Holder when the Warrant expires. are advised to obtain independent tax advice as to its potential impact upon the taxation consequences discussed in this section. exceptions to the TOFA regime would be expected to apply to many retail investors. Where it applies. Whether a Holder holds the Warrants on capital or revenue account will potentially affect the tax implications arising for a Holder of investing in the Warrants. which are not covered in this section. For example. tax consequences for a Holder. depending on their particular circumstances. specialised trading stock provisions. will apply. Disposal of your Warrants Holders who acquire Warrants otherwise than as described above (eg. Potential investors should seek specific advice if the Warrants are likely to be held as trading stock. Citigroup Inc_Turbo_20100504 15 . if the Barrier Level is reached or following an Extraordinary Termination Event). together with any brokerage. If so. Investors who are subject to the TOFA regime. a Holder cannot deduct the purchase price of the Warrant. If Disposing of the Warrants is a CGT event. However. The TOFA regime should not mandatorily apply to Warrants acquired before 1 July 2010. or who are considering electing into the TOFA regime.SECTION 5 – TAXATION CONSIDERATIONS This section is intended only as a general summary of some of the taxation consequences arising for potential investors who are Australian resident taxpayers including individuals. Rather. A Holder will make a capital loss if the cost base of the Warrants exceeds the proceeds received (for example.
then only 50% of the amount of the capital gain is included in the assessable income of a Holder who is an individual or a trust. Instead. The general eligibility criteria for discount capital gains treatment are discussed above. Broadly. and 66⅔% for an investor that is a complying superannuation entity. Holders should seek specific advice if they acquire a Put Warrant less than 12 months after acquiring the relevant Underlying Parcel as the ATO has expressed the view that. any capital gain or capital loss also arising on disposal is reduced by the amount of the assessable gain or deductible loss. as appropriate. It should be noted that the period during which the Holder held the Call Warrants is not taken into account in calculating this 12 month period. The Holder will make a capital gain to the extent that the exercise price exceeds the cost base of the Underlying Parcel (comprising the cost of the Underlying Parcel and the purchase price of the Put Warrant). sale. This is because these supplies will either fall outside the GST provisions. the purchase price of the Call Warrant and the amount paid to exercise the Call Warrant should form part of the “cost” of the Underlying Parcel that the Holder acquires when the Call Warrant is exercised. Alternatively. On the other hand. The Holder will make a capital loss if the cost base of the Underlying Parcel (which includes the purchase price of the Underlying Parcel and the Put Warrant) exceeds the relevant exercise price. exercise. the Holder will have a net capital loss for the income year which can generally be carried forward to offset future capital gains. which will be taken into account in calculating the taxable profit or loss on any subsequent disposal of the Underlying Parcel. On the other hand. or will be a “financial supply” on which no GST is payable. Exercising Call Warrants Exercising Call Warrants does not give rise to immediate tax consequences for a Holder. expiry or termination of the Warrants. Exercising Put Warrants If the Holder holds Put Warrants on capital account. Investors on revenue account If a Holder holds the Warrants on revenue account. expiry or termination of the Warrants should not be liable to stamp duty in any Australian jurisdiction. No stamp duty should be payable by the Holder on giving an Exercise Notice or acquiring or disposing of the listed Securities comprising an Underlying Parcel. under anti-overlap provisions. the excess of the cost of the Underlying Parcel (as calculated above) over the exercise price will be deductible by the Holder. The capital gain or loss on any subsequent disposal of the Underlying Parcel will be calculated taking into account this cost base. trust or a complying superannuation entity and the Underlying Parcel is disposed of at least 12 months after the Holder acquired them. any loss represented by the excess of the cost of the Warrant over the proceeds received will be deductible to the Holder. Stamp Duty The purchase. If a Holder holds Call Warrants on capital account. The time of the CGT event is when the Holder exercises the Put Warrants. then the profit calculated as the excess of the proceeds received over the cost of the Warrant will be included in the Holder’s assessable income. the Holder’s cost base for the Underlying Parcel received as a result of the exercise of the Call Warrant will be what the Holder paid to acquire the Call Warrant plus the amount the Holder paid to exercise the Call Warrant. Capital gains are only discounted after a Holder’s other capital losses and carried forward net capital losses have been applied. then the exercise of a Call Warrant should not give rise to a taxing point to the Holder. the transfer of the Underlying Parcel to Citi is a CGT event for the Holder. discount capital gains treatment would not be available. If the Holder holds the Underlying Parcel on revenue account. then the excess of the exercise price over the cost of the Underlying Parcel (which includes the purchase price of the Underlying Parcel and the Put Warrant) will be included in the Holder’s assessable income. the capital gain may be eligible to be a discount capital gain provided the Holder is an individual. if the Holder holds Call Warrants on revenue account. Goods and Services Tax (GST) No GST will be payable by Holders on the purchase. If a Holder makes a capital gain on a subsequent disposal or other CGT event in respect of the Underlying Parcel. sale.there are insufficient capital gains to absorb the capital losses. However. the transfer of an Underlying Parcel to Holders on the exercise of a Call Warrant or the transfer of an Underlying Parcel from the Holder on the exercise of a Put Warrant. Capital gains made by companies and other taxpayers are not discounted. If a capital gain is eligible to be discounted. Citigroup Inc_Turbo_20100504 16 . in broadly similar circumstances.
Citigroup Inc_Turbo_20100504 17 . and • no person (together with their associates) will hold 20% or more of the Securities of any trust Entity. • there will be at least 300 holders of the Securities in any trust Entity (where associates are treated as a single holder).That is on the basis that at the time of the relevant transaction: • the Warrant or Security will be quoted on the ASX.
an issuer sponsored subregister will also be maintained. This relief does not apply to the substantial shareholding provisions of the Corporations Act. ASX has not authorised or caused the issue of this PDS and is not in any way a party to or concerned in authorising or causing the issue of this PDS or the making of offers or invitations with respect to the Warrants. In addition to a CHESS subregister. Holders will be provided with a holding statement which sets out the number of Warrants held by a Holder. Class Order 02/925 which modifies the Corporations Act so that any relevant interest that a call warrant issuer may have as a result of holding securities as cover for its obligations under the terms of the call warrant is disregarded. The Guarantee The obligations of Citi under this PDS in respect of the Warrants are guaranteed by Citi Inc. ASX does not warrant the accuracy or truth of the contents of this PDS. and a Securityholder Reference Number (SRN) in the case of a holding on the issuer sponsored subregister. instead of certificates. including a claim for any financial or consequential loss or damage suffered by Holders or any other person. The holding statements will include a Holder’s Holder Identification Number (HIN) in the case of a holding on the CHESS subregister. ASX will be under no liability for any claim whatsoever. or omission from. The register may be inspected during normal business hours by any Holder or authorised representative. Class Order 02/926 which modifies the Corporations Act so that no associate relationship arises between a put warrant holder and a put warrant issuer merely because of the put warrant. ASIC has issued the following Class Orders that will apply to the Warrants issued under this PDS: Citigroup Inc_Turbo_20100504 18 . Class Order 02/924 which modifies the Corporations Act so that a call warrant holder does not have a relevant interest for the purposes of the Corporations Act takeover provisions. All payments made by the Guarantor under the guarantee will be made free and clear and without any deduction for present or future taxes.SECTION 6 – ADDITIONAL INFORMATION Admission to Trading Status Application has been made and approval given for the Warrants offered by this PDS to be admitted to trading status by ASX. The Guarantor must also pay interest on any amount payable by it under the terms of the guarantee during any period when it remains unpaid. irrevocable and unconditional guarantee of the due and punctual payment of all moneys which may become actually or contingently payable to a Holder by Citi under or in connection with the Warrants and the due and punctual performance of Citi’s obligations under the Terms of Issue. so that no associate relationship arises between a call warrant holder and a call warrant issuer merely because of the call warrant. Holders in the same manner and currency as Citi would be required to make to satisfy its obligations under the relevant Warrants. Any payments under the guarantee must be made to In admitting the Warrants to trading status and not objecting to the Terms of Issue. The guarantee given to each Holder is a continuing. Under the CHESS system. ASX takes no responsibility for the contents of this PDS. The fact that ASX has admitted the Warrants to trading status is not to be taken in any way as an indication of the merits of Citi or of the Warrants. whether or not that claim arises wholly or substantially out of reliance on any information contained in this PDS or any error in. Each Holder is entitled to severally enforce the guarantee. Class Order 04/1430 which modifies the Corporations Act so that disclosure in dollar terms is not required where the dollar amount to be disclosed depends on a fact or Class Order 02/926 which modifies the Corporations Act so that any relevant interest that a put warrant issuer may have merely because the warrant issuer has the power to control voting or disposal where the warrant expires or the holder defaults is disregarded. this PDS. ASIC Class Orders To the extent permitted by the Trade Practices Act 1974 (Cth) or any other relevant law. Registrar Citi will arrange (at its cost) for a separate register of Holders of the Warrants to be established and maintained at the offices of the Registrar. ASX makes no representation as to whether this PDS and the Terms of Issue of the Warrants comply with the Corporations Act or the Market Rules. CHESS Class Order 02/925 which modifies the Corporations Act The Warrants issued under this PDS will be declared eligible to participate in CHESS pursuant to the ASTC Settlement Rules.
Citigroup Inc_Turbo_20100504 19 . Freehills has not provided any taxation advice in. Any information about an Entity that appears in this PDS is information that is publicly available. Citi Inc. Environmental etc Citi will not take into account labour standards or environmental. Governing Law Consents The Warrants and this PDS are governed by and Citi Inc. No Entity accepts any responsibility for any statement in this PDS. or in relation to. or purport to make. Citi has not verified any information about an Entity that appears in this PDS. does not make. or purport to make. Any reference to an Entity in this PDS is only for the purpose of identifying the Securities that comprise the Underlying Parcel and the Entity that issued those Securities. this PDS and has not authorised or caused the issue of this PDS. Freehills does not make. Labour Standards. Role of Entities No Entity has been involved in the preparation of this PDS and no Entity has provided any information to Citi for the purposes of the preparation of this PDS. social or ethical considerations in selecting. Dispute Resolution System Citi has established procedures to ensure that any enquiries or complaints that you may have in relation to the Warrants will be dealt with in a proper and timely manner.circumstance that is not known. and makes no representation or warranty (whether express or implied) as to the accuracy or completeness of any information about an Entity in this PDS. Computershare Investor Services Pty Limited has not construed in accordance with the law of New South Wales and the parties submit to the non-exclusive jurisdiction of the courts of New South Wales and any court hearing appeals from those courts. No Entity or authorised officer of an Entity has authorised the issue of or any statement in this PDS. Citi takes no responsibility and accepts no liability for. Computershare Investor Services Pty Limited has given and has not withdrawn its consent to be named in this PDS in the form and context in which it is named. Freehills has given and has not withdrawn its consent to be named in this PDS as lawyers to the issue in the form and context in which it is named. any statement in this PDS. retaining or realising the investment represented by the Warrants. and takes no responsibility for any part of this PDS other than references to its name (except to the extent required by the Corporations Act). Class Order 04/1433 which modifies the Corporations Act so that disclosure in dollar terms is not required in relation to non-monetary benefits required to be disclosed in a PDS. has given and has not withdrawn its consent to be named in this PDS in the form and context in which it is named. any statement in this PDS. The references are not an express or implied endorsement of the Warrants by an Entity. Class Order 04/1431 which modifies the Corporations Act so that disclosure in dollar terms is not required in relation to the costs associated with acquiring derivatives and amounts that will or may be payable following acquisition. and could not have been found out. Investors should make their own enquiries as to whether labour standards or environmental. any statement in this PDS or any statement on which a statement in the PDS is based except as stated in this paragraph. authorised or caused the issue of this PDS. does not make. Freehills takes no responsibility for any part of this PDS to the maximum extent permitted by law other than references to its name to which it has consented. Potential Holders should make their own enquiries. social or ethical considerations are taken into account by the Entities whose Securities make up the Underlying Parcels of the Warrants. No Entity has given its consent to be named in this PDS. has not authorised or caused the issue of this PDS. Full details of these procedures appear in the FSG which is annexed to this PDS. and takes no responsibility for any part of this PDS other than references to its name (except to the extent required by the Corporations Act). or purport to make.
1.4 shall be known as the Termination Date. be postponed if there is an Extraordinary Postponing Event declared under clause 2. to procure that the Holder acquire one Underlying Parcel from Citi for each Required Number of Warrants held by that Holder. Citigroup Inc_Turbo_20100504 20 . which is irrevocable and will become effective on the Exercise Date on which Citi has received it prior to Closing Time. and in such circumstances Citi shall give a notice to Holders in accordance with clause 4. they are cancelled by Citi pursuant to clause 1.4(c). and (b) on exercise of the right conferred by clause 1. subject to the payment of the Exercise Price: (i) in the case of a Call Warrant. Citi will pay to the Holder the Expiry Value of the Warrant (calculated in accordance with clause 1.2(a) in accordance with these Terms of Issue. or (e) a scheme of arrangement is adopted with respect to the Securities that make up the Underlying Parcel.4. Citi grants the relevant Warrants to Citigroup Australia Holdings.3 to 1. 1.2 Nature of Warrant Subject to clauses 1. these Terms of Issue prevail.6.10.SECTION 7 – TERMS OF ISSUE To the extent of any inconsistency between these Terms of Issue and any other part of this PDS. requires Citi.5. to acquire from the Holder one Underlying Parcel for each Required Number of Warrants held by that Holder. each Warrant is an option which: (a) confers on the Holder the right. In such circumstances.3 Postponement of Exercise Date or Relevant Expiry Date An Exercise Date or the Relevant Expiry Date may. by delivering to Citi during the Exercise Period. or (ii) in the case of a Put Warrant. they terminate pursuant to clause 1. but not the obligation. at Citi's option. a notice is given pursuant to section 661B or section 664C of the Corporations Act relating to compulsory acquisition in respect of the Securities that make up the Underlying Parcel (with termination taking effect from the date of that notice).4 Early Termination of Warrant Warrants in a particular Series automatically terminate if: (a) (b) (c) (d) there is an Extraordinary Termination Event declared under clause 2. Other than in the case of termination pursuant to clause 1.1 THE WARRANT Grant of Warrant In return for Citigroup Australia Holdings paying the relevant Issue Price to Citi (receipt of which is acknowledged by Citi). 1.6) by substituting the date being the Termination Date for the Relevant Expiry Date in the determination of the Closing Price. 1.3. an Exercise Notice. 1. 1. with termination taking effect from the date the procedure is approved by court order. the date on which a Warrant terminates under this clause 1. to give Citi.
If an item of property that makes up the Underlying Parcel is not traded on a Recognised Market. Citi will pay to the Holder the Expiry Value of the Warrant. the Last Traded Price of the Underlying Parcel is greater than or equal to the Barrier Level on any Trading Day prior to the Relevant Expiry Date.5(a). when the Closing Price is above the Exercise Price or zero when the Closing Price is the same as or less than the Exercise Price.6 Failure by a Holder to Exercise If a Warrant has not been exercised by Closing Time on the Relevant Expiry Date. determined by Citi. the difference between the Closing Price of the Underlying Parcel on the Relevant Expiry Date and the Exercise Price for that particular Series. the Closing Price of the Underlying Parcel is the combined value of all the items of property that make up the Underlying Parcel at Closing Time on the Relevant Expiry Date. For the purposes of this clause 1. or (b) in the case of Put Warrants. Citi will announce the termination of the applicable Series of Warrants and the Barrier Date in a manner reasonably satisfactory to ASX. For the avoidance of doubt. 1. In such circumstances: (i) as soon as reasonably practicable after the Barrier Level is triggered. if the Barrier Level is triggered as a result of a trade of a Security that comprises the Underlying Parcel at the Market Price and that trade is ultimately cancelled in accordance with the Market Rules or otherwise. (iii) in the case of a Put Warrant where the Barrier Trigger is On-Close.1. the Market Price of the Underlying Parcel is greater than or equal to the Barrier Level at any time on any Trading Day up to and including the Relevant Expiry Date. where the Barrier Trigger is Single-Touch. the Market Price of the Underlying Parcel is less than or equal to the Barrier Level at any time on any Trading Day up to and including the Relevant Expiry Date. with the consent of ASX. If a Warrant has been exercised by Closing Time on the Relevant Expiry Date. to be the fair market value of that item of property on the Relevant Expiry Date. the date on which the Warrant terminates shall be known as the Barrier Date. that trade will be deemed to have taken place for the purposes of this clause 1. with effect from suspension of the Warrants from trading by ASX if: (i) in the case of a Call Warrant where the Barrier Trigger is On-Close. the difference between the Closing Price of the Underlying Parcel on the Relevant Expiry Date and the Exercise Price for that particular Series.5 Barrier Warrant Provisions (a) A Warrant will automatically terminate.6. when the Closing Price is below the Exercise Price or zero when the Closing Price is the same as or above the Exercise Price. the Last Traded Price of the Underlying Parcel is less than or equal to the Barrier Level on any Trading Day prior to the Relevant Expiry Date. and (ii) (c) the Holder will not be entitled to any payment in respect of the Warrant. (ii) in the case of a Call Warrant where the Barrier Trigger is Single-Touch. but the Exercise Notice is invalid. The Expiry Value of a Warrant is: (a) in the case of Call Warrants. the value of the item of property shall be the value.5. Citi will pay to the Holder the Expiry Value less any Exercise Costs. or (iv) in the case of a Put Warrant where the Barrier Trigger is Single-Touch.7 Adjustment for Corporate Actions Citigroup Inc_Turbo_20100504 21 . 1. (b) If a Warrant terminates early under clause 1.
which shall not terminate when bought back. with the consent of ASX. 1. Citi may. Citi will reduce the Barrier Level and Exercise Price by an amount equal to the Dividend for the relevant Securities.3. Citi shall give Holders and ASX written notice of that adjustment as soon as practicable in accordance with Market Rule 11.7. in its absolute discretion. the Exercise Price or the Required Number. with the consent of ASX. in the event of: (i) (ii) (iii) (iv) (v) (vi) a reconstruction or reorganisation of capital. the Barrier Level. These adjustments will take effect on the ex-dividend date of the relevant Securities. which relates to the Securities that make up the Underlying Parcel with respect to a particular series of Warrants Citi may.8 is the estimated Dividend.11 Register Citi at its cost will arrange for the establishment and maintenance of a register of Holders which complies with the Corporations Act and the Listing Rules as if the Warrants were shares in a company. make alternative adjustments it considers appropriate in those circumstances. any other adjustment circumstances as prescribed in Appendix 11. a rights issue. a cash return of capital.3. or any other event which Citi considers.(a) Subject to clause 1. or (b) where a Dividend is declared that is an estimate and the relevant Entity has not specified the exact amount payable by the Trading Day which is two Trading Days immediately prior to the ex-dividend date. a bonus issue. then the amount of the Dividend for the purposes of this clause 1. adjust that Underlying Parcel. Subject to the consent of ASX. 1. The Warrant may be subsequently resold by Citi. subject to: (a) where a Dividend is declared in a currency other than Australian dollars and the relevant Entity has not specified the Australian dollar amount payable by the Trading Day which is two Trading Days immediately prior to the ex-dividend date.1 to the Market Rules.8 Adjustment for Dividends Where a Dividend is declared by an Entity whose Securities make up the Underlying Parcel of a Warrant.7. 1. such an adjustment shall be made in accordance with Market Rule 11.9 Buy-Backs Citi may buy back a Warrant and become the Holder of the Warrant.3. (c) If there is an adjustment pursuant to this clause 1. by recording the cancellation in the Register. then the amount of the Dividend for the purposes of this clause 1. to preserve the interests and position of Holders under the Warrants. Citigroup Inc_Turbo_20100504 22 .10 Cancellation Citi may cancel any Warrant if Citi is the Holder of the Warrant.7(b).8 is the amount of the Dividend in Australian dollars converted at the relevant exchange rate determined by Citi on the Trading Day falling immediately prior to the ex-dividend date of the relevant Securities. should give rise to an adjustment pursuant to this clause 1. 1. (b) If Citi determines that the application of the Market Rules is uncertain or inappropriate in particular circumstances of corporate actions by an Entity or Entities.
If there are joint Holders of any Warrant and one of these joint Holders dies.1. 1. or the Warrants. the actual or proposed: (a) (b) (c) cessation of quotation on ASX.13 in accordance with the Market Rules and the ASTC Settlement Rules. 2.1 EXTRAORDINARY EVENTS Definition Citi may. with the consent of ASX.2 Citi’s Discretion to Nominate Citigroup Inc_Turbo_20100504 23 . 1. and (b) may refuse to register such a transfer in any of the circumstances where such refusal is permitted by. where the withdrawal or suspension is caused by Citi. All notices.15 Registration of Transfer of Warrants Citi: (a) must deal with. 2.16 Status of Warrants The Warrants establish general. given or made to the first-named joint Holder on the Register. any event that may reasonably be expected by Citi to lead to a material limitation of Citi to hedge the Warrants or to maintain a secondary market in the Warrants. nominate as an Extraordinary Event. 1. certify and register a transfer of a Warrant which complies with clause 1. or (d) (e) the Securities that make up the Underlying Parcel or Warrants cease to be CHESS Approved Securities. except in the case of a Warrant. or without limitation. 2. 1. unsecured and non-subordinated obligations of Citi (except for any obligations which have precedence by force of law). on any Business Day. or suspension of trading status on ASX. payments and other correspondence to joint Holders may be directed. and in accordance with any procedures prescribed by the Market Rules and the ASTC Settlement Rules.13 Transfer (a) A Warrant may be transferred if and only if the transfer is in the manner prescribed by or under the Corporations Act. (b) The transferor of a Warrant is regarded as remaining the owner of the Warrant the subject of the instrument of transfer until the name of the transferee is entered in the Register in respect of that Warrant. which have equivalent rank to each other and to the other existing. of the Securities that make up the Underlying Parcel. withdrawal of admission to trading status on ASX.14 Joint Holders There must not be more than 3 joint Holders of a Warrant except in the case of the legal representatives of a deceased Holder. the survivors shall be the only persons recognised by Citi as having any title or interest in the Warrant. immediate and unsecured contractual obligations of Citi.12 Holding Statements Citi will comply with the Listing Rules in relation to the issue and despatch of holding statements for the Warrants as if the Warrants were shares in a company. the Market Rules and the ASTC Settlement Rules (as applicable).
at Citi's option. no Extraordinary Event continuing (an Extraordinary Postponing Event). the Exercise Date or Relevant Expiry Date shall be that day. provided that if. in the reasonable opinion of Citi. Citi may.2 Exercise by Unregistered Person Where a person claims to be entitled to be registered as the Holder of a Warrant but whose name does not appear in the Register as the Holder. before the Closing Time on the Exercise Date. in the reasonable opinion of Citi. if the person giving the Exercise Notice becomes registered or is entitled to be registered as the Holder before the Business Day which is 6 Business Days after the Exercise Date then the Exercise Notice is to be treated as having been properly given and becomes effective immediately on that person becoming so registered. with the consent of ASX. In no circumstance shall the Exercise Date or Relevant Expiry Date be postponed to a date later than 10 Business Days after the original Exercise Date or Relevant Expiry Date. The Extraordinary Termination Event shall not exist until the consent of ASX to the proposed termination has been obtained. 3.1 but the Warrant has yet to terminate under clause 1. or in the reasonable opinion. of Citi. unless it is received after Closing Time in which case it shall become effective on the next Business Day during the Exercise Period (provided that date is before the Relevant Expiry Date) as determined by Citi in its absolute discretion. then the Exercise Date or Relevant Expiry Date may. if that is the case. became entitled to be registered as the Holder of that Warrant (which may. 3. 3.1 and clause 3. withdraw that nomination at any time prior to the termination of the Warrants. 2. an Extraordinary Event is continuing on that day.4 Extraordinary Termination Events If an Extraordinary Event has occurred and. In the case of an American Style Warrant. in the reasonable opinion of Citi. an Exercise Notice can be delivered to Citi on any Business Day prior to Closing Time on the Relevant Expiry Date.Where Citi has nominated an Extraordinary Event under clause 2. the Exercise Notice will be treated as having been received on the Relevant Expiry Date.2 in respect of a Warrant. with that termination taking effect as and from the date on which that determination is made (the Termination Date). Citi may terminate a Series of Warrants (an Extraordinary Termination Event). In those circumstances.4(a). 3. include the person entitled to be registered as the Holder at the Closing Time on the Citigroup Inc_Turbo_20100504 24 . is continuing and is likely to continue. Citi shall publicly announce the termination of the applicable Series of Warrants and the Termination Date in a manner reasonably satisfactory to ASX. As soon as reasonably possible after an Extraordinary Termination Event.1 EXERCISE OF WARRANT Exercise Notice (a) (b) A Holder of a Warrant may exercise the Warrants by delivering to Citi a duly completed Exercise Notice. was the last of those persons who. that person may exercise the Warrant by giving to Citi an Exercise Notice in respect of the Warrants to be exercised specifying that the person claims to be so entitled.3 Multiple Exercise Notices If more than one Exercise Notice which is otherwise effective is given under either or both clause 3. however. an Exercise Notice can be delivered and becomes effective on any Business Day it is delivered to Citi prior to Closing Time on the Relevant Expiry Date (as determined by Citi in its absolute discretion). be postponed to the next Business Day in respect of which there is. the only Exercise Notice in respect of that Warrant which is to be treated as being effective is that given by the person who.3 Extraordinary Postponing Events If an Extraordinary Event has occurred and is continuing on an Exercise Date or Relevant Expiry Date. (c) In the case of a European Style Warrant. to the knowledge. 2.
but is not obliged to. and (iii) any other documents required to transfer the Underlying Parcel to Citi. where possible: (i) (ii) the payment required will be rounded down to a lower dollar amount.2. where the Underlying Parcel is held in a issuer sponsored subregister. exercise the discretions in this clause 3. in the case of a Call Warrant. If the requirements for an effective exercise notice set out in this clause 3.4.3 becomes valid and effective if and only if: (a) (b) (c) (d) (e) it is duly completed and in proper form.4(a) to (f) above are not satisfied. it is accompanied by a cheque completed in favour of Citi. plus any Exercise Costs. (f) in the case of a Put Warrant. it is received by Citi prior to Closing Time on the Relevant Expiry Date. the Exercise Notice is null and void and Citi must give a notice accompanied by the purported Exercise Notice and all documents which accompanied it (including any cheque) to the person who gave that Exercise Notice not later than the Business Day which is 10 Business Days after the day which the purported Exercise Notice was given to Citi.2 or 3. Any determination as to whether an Exercise Notice is duly completed and in proper form and otherwise effective shall be made by Citi and shall be conclusive and binding on Citi and the Holder.1. The cheque (which must clear within 5 Business Days following receipt) shall be for an amount which is the Exercise Price multiplied by a number.5 Errors in Exercise Notices and Accompanying Materials Citi may. the Warrant has not terminated under clause 1. or (ii) a copy of the Holder’s written instruction to its broker to deliver the Underlying Parcel to Citi (which must include the Holder’s HIN and the broker’s PID). and Citigroup Inc_Turbo_20100504 25 . that lower dollar amount will be calculated by the application of the formula in clause 3.4(e). being the number of Warrants being exercised divided by the Required Number. to ensure that the number of Call Warrants being exercised by the Holder is equal to a simple multiple of the Required Number for that Series. notwithstanding clauses 3. (a) If an Exercise Notice is given which specifies a number of Warrants which is not a simple multiple of the Required Number. 3. it is accompanied by evidence of the holding of the Underlying Parcel.4 Effectiveness of Exercise Notices An Exercise Notice given under clause 3. 3. (b) If the cheque accompanying an Exercise Notice for a Call Warrant is for an amount that is less than the amount required pursuant to clause 3. it is for the Required Number or a multiple of the Required Number of Warrants. This shall be achieved by rounding down the number of Warrants identified in the Exercise Notice until that simple multiple is achieved. the Exercise Notice will be treated as stating a simple multiple of the Required Number. where the Underlying Parcel is held in a CHESS Holding subregister. being: (i) a copy of a Holding Statement (which must include the Holder’s SRN).4(e).5.Exercise Date) and every other Exercise Notice given in respect of that Warrant.1 and 3. 3. is of no force or effect.
including without limitation. to enable it to acquire the Underlying Parcel and to cancel the exercised Warrant. between the original cheque and the lower dollar amount used to determine the Holder’s entitlement.4(f) in respect of all the Put Warrants that are the subject of an Exercise Notice. to enable it to effect delivery of the Underlying Parcel from the Holder to Citi and to cancel the exercised Warrant. to act as the agent of the Holder in entering into (or instructing a broker to enter into) at no cost to the Holder (except for payment of the Exercise Price and any applicable Exercise Costs) a contract for the sale and purchase (or other acquisition) of the Underlying Parcel on behalf of the Holder in order to fulfil the obligations of Citi referred to in clause 3.6(b)(ii). (b) in the case of Put Warrants. 3. supplying a Holder Identification Number. (iii) the Holder irrevocably authorises Citi.7 Completion Subject to the Market Rules and the ASTC Settlement Rules. a contract arises on the Exercise Date under which: (i) Citi must pay to the Holder 10 Business Days after the Exercise Date. supplying a Holder Identification Number. and (iv) the Holder irrevocably authorises Citi (either itself or through a person acting on its behalf) to act as its agent to do all things required to be done. at the option of Citi. at the option of Citi.4(f) are met. and (c) the Warrant ceases to exist. 3.(iii) Citi will give the Holder a notice to this effect together with a cheque for the difference (if any). the Exercise Price less the Exercise Costs. to act as the agent of the Holder in entering into (or instructing a broker to enter into) at no cost to the Holder (except for deduction from the Exercise Price of any applicable Exercise Costs) a contract for the sale and purchase of the Underlying Parcel on behalf of the Holder in order to fulfil the obligations of the Holder referred to in clause 3. and (iii) the Holder irrevocably authorises Citi (either itself or through a person acting on its behalf) to act as its agent to do all things required to be done. the Exercise Notice will be treated as effective only to the extent that the requirements of clause 3.6(a)(i). a contract arises on the Exercise Date under which: (i) Citi must procure performance of all that is required under the ASTC Settlement Rules to enable one Underlying Parcel to be acquired by the Holder for the Exercise Price free from any security or third party interests or restriction on transfer (other than one that has been accepted by ASX for the purpose of quotation of the property comprising the Underlying Parcel). the contract arising under clause 3. including without limitation.6 Delivery of the Underlying Parcel When a valid Exercise Notice is given: (a) in the case of Call Warrants. (ii) the Holder irrevocably authorises Citi. (c) Where the Holder of a Put Warrant is unable to comply with the requirements of clause 3.6 is to be completed by: Citigroup Inc_Turbo_20100504 26 . (ii) the Holder must procure performance of all that is required under the ASTC Settlement Rules to enable one Underlying Parcel to be acquired by Citi from the Holder free from any security or third party interests or restriction on transfer (other than one that has been accepted by ASX for the purpose of quotation of the property comprising the Underlying Parcel).
8(a) and Market Rule 10.12 Warranties by Exercising Holder on Exercise of Warrant By giving an Exercise Notice. Citi procuring the Holder to become the registered owner of one Underlying Parcel on or before Closing Time on the Business Day which is 20 Business Days after the later of the Exercise Date. (c) in the case of Put Warrants.8 by the time specified.6 or 3.7 and that on a Holder giving notice under clause 3. Citigroup Inc_Turbo_20100504 27 . subject to the receipt from the Holder of a notice requiring payment pursuant to Market Rule 10. the Holder warrants that: (a) in the case of Call Warrants. nothing in these Terms of Issue or the Market Rules derogates from a Holder’s right in relation to any other accrued rights and remedies.12. and no rounding of numbers will occur until a Holder exercises a Warrant and at that time the entitlement attaching to all Warrants of that Holder the subject of exercise will be aggregated and that aggregate will be rounded so that all money amounts are rounded to the nearest whole cent and all numbers of Securities are rounded down to the nearest whole number. or the day on which the Holder has satisfied its obligations under these Terms of Issue to enable Citi to procure the acquisition by the Holder of one Underlying Parcel. the Holder has good. interest accrues on that amount at the Default Rate accruing daily from the last day on which Citi was required to pay the Exercising Holder under clause 3. (b) in the case of Put Warrants. registration of the Holder as the holder of the property which constitutes the Underlying Parcel will not contravene any law or any provisions of the constitution of the relevant Company. complete and unencumbered title to the Underlying Parcel. 3.6 or 3. Citi must pay to the Holder by cheque a liquidated damages payment payable in accordance with Market Rule 10. Citi is relieved of its obligations under clauses 3.6 and 3. (b) in the case of Call Warrants. Citi paying to the Holder the relevant Exercise Price less the Exercise Costs 10 Business Days after the Exercise Date (provided that Citi is registered or able to be registered as the Holder of one Underlying Parcel within 8 Business Days after the Exercise Date).10 Acknowledgment The Holder and Citi acknowledge to each other that the amounts of damages calculated under clauses 3. 3.8 or 3.11 Calculations and Securities In these Terms of Issue: (a) (b) all calculations will be done to no less than three decimal places.9.7 and its only obligation is to make the payments required by clauses 3.7.(a) in the case of Call Warrants. 3.8 until payment is made. 3. (b) If a Holder does not exercise its rights to provide a notice to Citi pursuant to clause 3.12.8 and 3.9 are a genuine pre-estimate of the damage that the Holder would suffer from the failure of Citi to perform its obligations under clauses 3.8 Failure of Citi to Perform (a) If Citi fails to perform any of its obligations under clauses 3.8 to Citi. 3. the Holder has obtained all consents which may be required by law to enable the Holder to acquire the Underlying Parcel and to become registered as holder of the property comprising the Underlying Parcel.9 Interest If Citi does not pay the amount calculated in accordance with clause 3.12.
and none of the Securities to be delivered upon the exercise of such Warrants.3 Time of Receipt A notice given by Citi in accordance with clause 4. 4. cost or expense incurred as a result. a notice given to any of those persons is effective as notice to all those persons. liability. 4. and the Holder agrees to indemnify Citi against any loss. damage. Method of giving Notice Except where otherwise provided by these Terms of Issue. directly or indirectly.(d) (e) the Holder has good. or sent by pre-paid mail to the Holder’s address as it appears in the Register (which must be airmail if that address is not within Australia). 4. 4. 4. none of the Warrants the subject of the Exercise Notice.5 Notices by Holder All notices required or permitted to be given by the Holder to Citi pursuant to these Terms of Issue or otherwise in respect of the Warrant must be in writing and are treated as being duly given if and only if they are actually received at the office of Citi’s Broker or at such other address as Citi may notify to the Holder. fiscal or other laws or regulations for the time being applicable. claim. 5.4 Address of Parties For the purposes of this clause 4 if more than one person is entered in the Register as the Holder of a Warrant.1 GENERAL Variation of Terms of Issue Citi may from time to time by notice sent to the Holder make any Change to these Terms of Issue: Citigroup Inc_Turbo_20100504 28 . all notices required or permitted to be given by Citi to a Holder pursuant to these Terms of Issue must be in writing and are treated as being duly given if: (a) (b) left at the Holder’s address as it appears in the Register. and (f) the Holder is not a resident or national of any jurisdiction where the exercise of the Warrants is prohibited by any law or regulation or where compliance with the relevant laws or regulations would require filing or other action by Citi or any related entity of Citi. 5.2 is treated as having been duly given and received: (a) (b) when delivered – in the case of it being left at the Holder’s address as it appears in the Register. will breach or result in a breach of any exchange control.4 of the Terms of Issue within 10 Business Days after the Termination Date. or on the third Business Day after posting – in the case of it being sent by pre-paid mail.12 proving to be untrue or incorrect.1 NOTICES When Notice is required Citi must give notice to each Holder in the following circumstances: (a) on the termination of a Warrant under clause 1. complete and unencumbered title to the Warrants. of any warranty given by the Holder in this clause 3. and (b) 4.2 on the occurrence of an Extraordinary Postponing Event.
3 No Requisition by Holders Nothing in these Terms of Issue authorises a Holder (alone or together with other Holders) to requisition the consideration of any resolution. defective provision or minor modification which does not materially prejudice the interests of Holders.1(b). 5. or if the change is made for the purpose of curing any ambiguity. (ii) (iii) to accommodate transfers. error.1(b). (iii) Citi's auditor (after consultation with Citi's lawyers. 5. if requested by ASX. if desired by either the auditor or Citi) determines the validity of all ballot papers returned during the voting period and if Citi or an “associate” of Citi (within the meaning of Part 1. (ii) Citi retains all ballot papers which are returned to it within the voting period (which must. relaxation or indulgence on the part of Citi in exercising any power or right conferred upon Citi by these Terms of Issue does not operate as a waiver of that power or right nor does any single exercise of any power or right preclude any other or further exercise of it or the exercise of any other power or right under these Terms of Issue. be notified to the market. be not less than 20 Business Days after the date of dispatch of the last of the notices referred to in paragraph (i) of clause 5.(a) with the consent of ASX: (i) if the change is necessary or desirable in the reasonable opinion of Citi to comply with any statutory or other requirement of law or any requirement of ASX. (iv) Citi's auditor adds together all of the votes cast on valid ballot papers during the voting period (calculated on the basis of one vote for each Warrant held by the person casting that vote) in favour of the Change and all of the votes cast on valid ballot papers during the voting period (calculated on the same basis) against the Change. a document setting out the reasons for and any advantages or disadvantages of the Change and a document summarising the provisions of this clause 5. except that the Relevant Expiry Date is not to be amended except in the case of an Extraordinary Termination Event or Extraordinary Postponing Event. Citigroup Inc_Turbo_20100504 29 . Division 2 of the Corporations Act (other than section 13)) (except if the person holds the relevant Warrants as trustee or nominee for another person) returns a ballot paper to a Holder it is to be treated as not being valid. in any event. and (v) the number of votes validly cast in favour of the Change (as determined by the previous paragraph) is not less than three times greater than the number of votes validly cast against the Change (as so determined).1 must be notified to ASX and.2.2 Notification of Change to ASX Any Change to these Terms of Issue made under clause 5. 5. or (b) where the terms of that Change are authorised by a resolution of the Holders passed in accordance with the following: (i) Citi dispatches by notice to every Holder a document setting out the terms of the proposed Change together with a ballot paper enabling the Holder (other than Citi or its associates) to vote either in favour of or against the Change. delay.4 Waiver The failure.
or any discretion conferred on Citi by these Terms of Issue.7 Telephone Recording The Holder agrees to the tape recording by Citi of any telephone conversations concerning the Warrant.5 Discretions The Holder may not give any direction to Citi. the retention of any tape recording so made and the use of any tape recording so made as evidence of the content of the conversation. Citigroup Inc_Turbo_20100504 30 . 5. concerning the exercise by Citi of any discretion relating to the Warrants.5. even where the Warrant is exercised. 5.6 Governing Law and Jurisdiction The Warrants and this PDS are governed by and construed in accordance with the law of New South Wales and the parties submit to the non-exclusive jurisdiction of the courts of New South Wales and any court hearing appeals from those courts.
Barrier Trigger means. Corporations Act means the Corporations Act 2001 (Cth). Dividend means. the Terms of Issue. Exercise Period means: (a) (b) in the case of American Style Warrants. in respect of a Warrant. Barrier Warrant has the same meaning as Warrant. and in respect of a Warrant where the Underlying Parcel comprises units of a listed trust. ASTC means ASX Settlement and Transfer Corporation Pty Limited (ABN 49 008 504 532). ASTC Settlement Rules means the settlement rules of ASTC. or in the case of European Style Warrants. European Style means. any Business Day prior to Closing Time on the Relevant Expiry Date on which the Holder has delivered to Citi an Exercise Notice. Exercise Costs means any stamp duty or equivalent government tax. a distribution of income or gains of the relevant trust. Change means in respect of the Terms of Issue. the period beginning on the day the Warrants commence trading on ASX. the Relevant Expiry Date. Citigroup Inc_Turbo_20100504 31 . impost or duty. Barrier Date means the date nominated by Citi pursuant to clause 1. Business Day has the meaning given to it in the Market Rules. in relation to each Series.SECTION 8 – DEFINITIONS AND INTERPRETATION 1. a dividend of the relevant company. Broker means Citigroup Global Markets Australia Pty Limited (ABN 64 003 114 832 and AFSL 240992). the price that appears in the Term Sheet. any modification. a Warrant that can only be exercised on the Relevant Expiry Date for that Warrant. Default Rate means. commission or other transaction cost charged to a Holder on the exercise of a Warrant. any brokerage. ASX means ASX Limited (ACN 008 624 691). the interest rate calculated by adding 2 per cent to the prime rate (being the base lending rate published for prime corporate customers by Citibank in Australia) which applies on that day to overdrafts with Citibank. Citi or Citigroup Australia means Citigroup Global Markets Australia Pty Limited (ABN 64 003 114 832 and AFSL 240992). and ending on and including the Relevant Expiry Date. CHESS Approved Securities means securities which are approved under section 3 of the ASTC Settlement Rules. a Warrant that can be exercised on any Business Day during an Exercise Period. in respect of a Warrant where the Underlying Parcel comprises shares of a company. Exercise Price means the price which appears in the Term Sheet at which a particular Series of Warrants issued under this PDS may be exercised. DEFINITIONS American Style means. or addition to. Barrier Level means. on any day. Closing Time means the official close of trading on ASX as represented by the occurrence of the ‘closing single price auction’ (as defined in the Market Rules). CHESS means the Clearing House Electronic Subregister System established and operated by ASTC. alteration or deletion of. in respect of a Warrant.5 of the Terms of Issue. the Relevant Expiry Date. the method nominated in the Term Sheet (being either On-Close or Single-Touch) for determining if the Underlying Parcel breaches the Barrier Level. variation. Exercise Date means: (a) (b) in the case of American Style Warrants. or in the case of European Style Warrants. ASIC means the Australian Securities and Investments Commission. in relation to each Series. Entity means any body corporate or other entity whose Securities make up the Underlying Parcel. and includes a Special Dividend. Call Warrant means a Warrant whose type is specified as a "Barrier Call” in the Term Sheet. Corporations Regulations means the regulations made under the Corporations Act. Exercise Notice means a notice in the form enclosed with this PDS given by the Holder or other person entitled to give such a notice to Citi in respect of a Warrant in accordance with clause 3 of the Terms of Issue. Citigroup Australia Holdings means Citigroup Global Markets Australia Holdings Pty Limited (ABN 56 081 472 684).
3 of the Terms of Issue.9 of the Terms of Issue. PID has the meaning given to it in the ASTC Settlement Rules. Security has the meaning given to it in the Corporations Act. the amount (if any) by which the Exercise Price exceeds the Final Value of the Underlying Parcel divided by the Required Number of Warrants. On-Close means the Barrier Trigger nominated in the Term Sheet for determining early termination pursuant to clause 1. Required Number and Relevant Expiry Date and. in relation to a Series. Final Value means the combined value of all items of property that make up the Underlying Parcel being: (a) where the item of property is traded on ASX on the five Trading Days following the Barrier Date. and otherwise. to be the fair market value of that item of property on the Barrier Date. or in the case of a Put Warrant. Required Number means the number of Warrants that make up one Underlying Parcel.5 of the Terms of Issue. Guarantor means Citigroup Inc. Listing Rules means the listing rules of ASX as amended or varied from time to time. and otherwise. or such other registrar as may be approved by Citi. a Delaware corporation. option exercises and overseas sales reported as such during open trading under the Market Rules). Register means the register of Holders kept and maintained under clause 1. Issue Price means. Barrier Level. have the same Exercise Price. Extraordinary Event has the meaning given to it in clause 2. in relation to a Series. Holder means a person whose name is for the time being entered in the Register as the holder of a Warrant. Last Traded Price means the price at which the “closing single price auction” is conducted on ASX as defined in the Market Rules and displayed on ITS on the relevant Trading Day. the arithmetic average of the Weighted Average Sale Price of that item of property on ASX determined for each of the five Trading Days following the Barrier Date.. the value determined in accordance with clause 1. Series means Warrants which: (a) (b) are either a Put Warrant or a Call Warrant. and includes any financial market authorised under the Corporations Act. the earlier of: (a) (b) the date on which the Warrants in that Series terminate pursuant to clause 1.6 of the Terms of Issue. Put Warrant means a Warrant whose type is specified as a “Barrier Put” in the Term Sheet. Rebate Amount means. an amount equal to: (a) (b) in the case of a Call Warrant. in circumstances where a Holder has failed to exercise a Warrant prior to Closing Time on the Relevant Expiry Date. Extraordinary Termination Event has the meaning given to it in clause 2. Extraordinary Postponing Event has the meaning given to it in clause 2. HIN has the meaning given to it in the ASTC Settlement Rules.4 of the Terms of Issue (in which circumstances it will be the Termination Date). with the consent of ASX. the value of the item of property as determined by the Issuer. (b) FSG means the financial services guide that appears as Appendix 1 to this PDS. Citigroup Inc_Turbo_20100504 32 . being the number set out in the Term Sheet. or the expiry date that appears in the Term Sheet. PDS means this Combined Financial Services Guide and Product Disclosure Statement. Relevant Expiry Date means. ITS means the Integrated Trading System provided for the trading of securities on ASX.4 of the Terms of Issue. the amount (if any) by which the Final Value of the Underlying Parcel exceeds the Exercise Price divided by the Required Number of Warrants. in relation to each series. the amount paid for one Warrant in that Series. the market price of that item of property on ASX on that date (excluding special crossings.Expiry Value means. an exempt stock market and a futures market of a futures exchange. Registrar means Computershare Investor Services Pty Limited (ACN 078 279 277). Recognised Market means any stock market of a securities exchange. the value of the item of property as determined by the Issuer.1 of the Terms of Issue. Market Price means the combined value of all items of property that make up the Underlying Parcel being: (a) where the item of property is traded on ASX on the Barrier Date. Barrier Trigger. to be the fair market value of that item of property on the Barrier Date. with the consent of ASX. (b) Market Rules means the market rules of ASX as amended or varied from time to time.
abnormal. additional or extra. Part. partnership. government and governmental authority and vice versa. Underlying Parcel means one Security. where applicable.5 of the Terms of Issue. extraordinary. schedule or annexure of or to this PDS. association. unless the context otherwise requires: (a) a reference to any legislation or legislative provision includes any statutory modification or re-enactment of. or legislative provision substituted for. a reference to any agreement or document to that agreement or document (and. Warrant means a Warrant offered on the terms of this PDS.(c) are issued on the same terms. a reference to "dollars".7 or 1. a reference to an individual or person includes a corporation. Special Dividend means a special or abnormal dividend and includes those dividends which are described by the relevant Entity as: (a) (b) (c) special. or are otherwise characterised by ASX as a special dividend. headings are for convenience only and do not affect interpretation. 2. Single-Touch means the Barrier Trigger nominated in the Term Sheet for determining early termination pursuant to clause 1. Term Sheet means the summary table that appears on page 3 of this PDS setting out the product specific information for each of the Warrants to be issued under this PDS. Terms of Issue means the terms of issue of the Warrants contained in section 7 of this PDS. US Person has the meaning given to it by Regulation S under the US Securities Act. that legislation or legislative provision. option exercises and overseas sales reported on that Trading Day). Australia unless otherwise stated. supplemented or replaced from time to time. Schedule or Annexure is to a clause. novated. the ASTC Settlement Rules. authority. INTERPRETATION In this PDS and the Terms of Issue. the Market Rules or the Listing Rules (as the case may be). where an expression is defined. and expressions not otherwise defined which are defined in the Corporations Act.8 of the Terms of Issue). "cents" and "$" is a reference to Australian currency unless otherwise stated. and is identified by the first 3 letters of the ASX Code for the particular Series of Warrants as set out in the Term Sheet (subject to any adjustment pursuant to clause 1. SRN has the meaning given to it in the ASTC Settlement Rules. another part of speech or grammatical form of that expression has a corresponding meaning. Weighted Average Sale Price means the weighted average sale price determined by Citi by dividing the total of the sale prices of identical items of property traded on the relevant Recognised Market by the number of those items the subject of sales on the relevant Trading Day (excluding special crossings. (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Citigroup Inc_Turbo_20100504 33 . a reference to a date or time is to a date or time in Sydney.4 of the Terms of Issue. a reference to a matter being "with the consent of ASX" is a reference to that matter being with the consent of ASX unless than consent is unreasonably withheld or delayed. the Market Rules or the Listing Rules have the meaning given to them in the Corporations Act. any of its provisions) as amended. part of a special distribution involving a return of capital. Trading Day has the meaning given to it in the Market Rules. part of a scheme of arrangement or takeover consideration. and any subordinate legislation issued under. a reference to clause. the singular includes the plural and vice versa. joint venture. trust. Termination Date means the date nominated by Citi pursuant to clause 1. the ASTC Settlement Rules.
our internal and external complaints handling procedures and how you can access them.au.APPENDIX 1 – FINANCIAL SERVICES GUIDE CITIGROUP GLOBAL MARKETS AUSTRALIA PTY LIMITED (ABN 64 003 114 832 / AFSL 240992) Dated: 22 July 2008 This FSG is an important document and a regulatory requirement under the Corporations Act. if you do not have a nominated representative. advisory.citigroup. companies and other entities. the financial products and services set out in this FSG. Citi is a Participant of the ASX Group. who we are and how we can be contacted.com. visiting our website at www. In Australia. superannuation funds and trusts. This FSG should assist you in determining whether to use any of our financial services or products. calling us on + 61 2 8225 4000. any potential conflicts of interest we may have. Citigroup Inc_Turbo_20100504 34 . how we (and any other relevant parties) are remunerated. you may also receive other documents relevant to the services or products which you should also read carefully. or arrange to provide. and how we keep the information you provide to us private. You can contact Citi by: • • • • speaking to your nominated representative. or writing to us at: Citigroup Global Markets Australia Limited Citigroup Centre 2 Park Street Sydney NSW 2000 WHAT KIND OF FINANCIAL SERVICES IS CITI AUTHORISED TO PROVIDE? Citi is authorised by its Australian Financial Services Licence to provide. Details of Citi and its relationship with other members of the Citigroup group of companies appear in section 3 of the PDS to which this FSG is annexed. Citi is able to provide a range of investment. WHO IS RESPONSIBLE FOR FINANCIAL SERVICES PROVIDED TO YOU? Citi is responsible for the financial services described in this FSG. and stockbroking services to individuals. It provides you with information about: • • • • • • the products and services we are authorised to provide you. Should you choose to use any of our financial services or products. Any financial services offered will be provided by representatives of Citi.
and financial products other than foreign exchange. securities. debentures. foreign exchange contracts. OUR PRODUCTS AND SERVICES In Australia. domestic and international futures. interests in managed investment schemes excluding investor directed portfolio services. and financial products limited to miscellaneous financial investment products limited to managed investment warrants: (A) to which the definition of derivative in sub section 761D(1) applies. We also provide a custodial or depository service in relation to our nominee company services. and online access for both Australian and international trading accounts. stock lending. We are authorised to make a market in: • • • derivatives. that is a financial product of the kind referred to in subparagraph 764A(1)(b)(ii) or 764A(1)(ba)(ii). government bonds and debentures. listed property trusts. and to deal on behalf of retail and wholesale clients in relation to: • • • • • • derivatives. Citigroup Inc_Turbo_20100504 35 . managed funds. Citi provides investors with access to a comprehensive range of financial products and services. IPOs and secondary market offerings. and that is a warrant as defined in the ASX Settlement Rules that has been admitted by the ASX to trading status on a financial market of the ASX. listed options and warrants. cash management accounts and trusts. bank bills and fixed income investments. including: • • • • • • • • • • • domestic and international equities.We are authorised to provide both general and personal advice to. stocks or bonds issued or proposed to be issued by a government. and (B) (C) that is transferable. portfolio reporting and administration services.
bonus objectives are not related to any particular product. If you have any complaint about the service provided to you. that person may receive a share of brokerage charged to you. by telephone. Our management is committed to a high level of client service. consistently and in a professional manner. Clients may either complain verbally or in written form. However. Material interests are those that could be reasonably expected to be capable of influencing the recommendation of a financial product to you. Citi or any of their associates may have in financial products. YOUR RIGHTS AS AN INVESTOR Your representative will be acting on behalf of Citi. and as such regard all complaints as serious and entitled to be handled promptly. and provide all relevant details of your complaint. you should be aware that: • if you have been referred to Citi by a third party. Written complaints If you wish to make a written complaint. you have the right for any complaints in relation to your dealings with Citi to be considered in a timely manner. Citi is therefore responsible to you for any advice your representative provides to you. Your representative will provide you with more details and will disclose any other material interest when he or she makes specific recommendations. your representative is not required to place any portion of investments placed with Citi and/or its subsidiaries and/or associates. • representatives are paid an annual salary and your representative may also receive a bonus. HOW YOU CAN TRANSACT WITH US You have the right to specify how you would like to give us instructions to transact. you should write to the Compliance Manager. As a client. • members of the Citigroup group of companies may from time to time issue financial products that are recommended and/or distributed by Citi and may benefit from that. fax. mail or other means.Products and services are not limited to products offered by Citi and/or its subsidiaries and/or associates. For example. Level 22. Citigroup Inc_Turbo_20100504 36 . Citigroup Global Markets Australia Pty Limited. you should take the following steps. Verbal complaints If you wish to make a verbal complaint. 2 Park Street. WHAT YOU SHOULD DO IF YOU HAVE A COMPLAINT Citi has formal internal complaint handling procedures which are consistent with the Australian Standard 4269 1995. Furthermore. and • Citi will also trade financial products on its own account. you can call Citi on 1300 30 70 70 or + 61 2 8225 4000 and provide details of your complaint to the Compliance Manager. email. Accordingly. POTENTIAL CONFLICTS OF INTEREST WE MAY HAVE You have the right to be advised of any material interest that your representative. service or specific business that your representative may arrange on your behalf. fairly. • members of the Citigroup group of companies may from time to time provide investment banking and other financial services to issuers of financial products. Sydney NSW 2000.
Citigroup Inc_Turbo_20100504 37 . FOS’ details are: Financial Ombudsman Service GPO Box 3. HOW WE ARE REMUNERATED FOR THE SERVICES WE PROVIDE Citi will charge you a fee for the services provided to you.External Complaint Services and Regulatory Bodies Citi is a member of the Financial Ombudsman Service (FOS). The guarantee reduces the risk that Citi cannot pay customer claims because of insufficient financial resources. The complaint must be lodged within 6 years of the date you knew or reasonably ought to have known of the loss. the complaint should relate to a potential financial loss of an amount up to $150. You will be advised of the rate of commission when you open an account with us and of any changes to our commission rates from time to time.000 (unless Citi and you agree otherwise in writing). may apply to some transactions. of which you will be advised before you make a transaction.5 Division 4 of the Corporations Regulations. A minimum charge. Tollfree: 1300 30 06 30. The circumstances of when this fund may be available to you is set out in Part 7.au.000. you need to refer to the National Guarantee Fund booklet available on the ASX website at www. Citi will charge you a commission on transactions undertaken based on the value of the securities bought or sold. The guarantee is approved by ASIC as an alternate compensation arrangement put in place instead of professional indemnity insurance. it excludes monies held in a cash management account that may be associated with any affiliate of Citi or your broker.org. To make a claim under the National Guarantee Fund. Transaction based fee arrangement Under a transaction based fee arrangement. For example. ASIC also has a toll free information line that you may use to make a complaint and obtain information about your rights. COMPENSATION ARRANGEMENTS Citigroup Inc. Investors should note that the National Guarantee Fund does not cover all financial products to which this FSG relates. For a complaint in relation to a potential financial loss of an amount greater than $150. THE NATIONAL GUARANTEE FUND The National Guarantee Fund is an external fund set up to provide compensation for valid claims arising from dealings with stockbrokers. alternative dispute resolution mechanisms may be utilised. Melbourne VIC 3001 Toll-free: 1300 78 08 08 Fax: + 61 3 9613 6399 Email: info@fos. The guarantee satisfies the requirements under section 912B of the Corporations Act. you have the right to take your complaint to FOS. has provided a guarantee in respect of Citi’s liabilities to customers due to breaches by Citi or its current representatives of their relevant obligations under Chapter 7 of the Corporations Act. Further information is available from either Citi or FOS. FOS assists with the resolution of disputes between consumers and participating financial services providers.au PLEASE NOTE: for FOS to handle a complaint. Details of these commissions and fees are set out in the confirmation or PDS for that particular financial product. or if the complaint has not been resolved to your satisfaction. If you have made a complaint to Citi and have not received a response within 45 days.com.asx.
and/or a director or employee of Citi or its related bodies corporate that relate to the provision to you of a financial service. The privacy of your personal information is important to us at Citi. Any personal information collected will be handled in accordance with our Privacy Protection Policy. HOW ARE OUR REPRESENTATIVES REMUNERATED? Representatives are remunerated on a salary and bonus basis. volume bonuses and other incentives from fund managers and product issuers (including Citi and/or its associates) whose products we recommend to you.au. We will tell you how and where to conveniently access your account information (except when we’re prohibited by law) and how to notify us about errors which we will promptly correct.Other Fees may also be payable for provision of services such as the provision of custody arrangements. GST is levied on fees charged to Australian residents.citigroup. A copy of that policy can be obtained by visiting the Citi website at www. up to date and accurate. that request must be made within a reasonable time after you are provided with a copy of this FSG and before any financial services identified in this FSG are provided to you. Your representative will explain to you the level of commissions at the time of making the recommendation. bonuses based on performance criteria and other benefits from us. The commissions we receive are usually a percentage of the fund manager’s initial and/or ongoing fees. WILL ANYONE BE PAID FOR REFERRALS? Where you have been referred to us by a third party such as a financial planning group or accountant. Our Privacy Protection Policy details how we comply with the requirements of the Privacy Act in the handling of your personal information.com. Citigroup Inc_Turbo_20100504 38 . PARTICULARS OF REMUNERATION You may request particulars of the remuneration (including commission) or other benefits received by Citi. Your Representative will explain to you how those commissions are calculated at the time of making the recommendation. Citi employees and directors receive salaries. we may pay an introductory fee or commission rebate in relation to the referral. However. Citi may also receive commission. its related bodies corporate. Please refer to the FSG or SOA provided by the relevant third party for more detailed information on payments (if any) that may be payable. The bonus is entirely at the discretion of management. Commissions received by Citi are described in the PDS for those products that we recommend. Your Representative will inform you of these in advance. The PDS for the particular product will disclose further details of remuneration received by Citi employees or paid to representatives. PRIVACY PROTECTION AT CITI We will attempt to keep your customer files complete.
hereby exercise the Warrants pursuant to the right granted under clause 1.APPENDIX 2 – EXERCISE NOTICE PLEASE ENSURE YOU COMPLETE BOTH PAGES. SIGN AND RETURN THE REQUIRED DOCUMENTS AND/OR A CHEQUE MADE OUT TO CITIGROUP GLOBAL MARKETS AUSTRALIA PTY LIMITED [insert date] CitiWarrants Operations Citigroup Global Markets Australia Pty Limited GPO Box 557 Sydney NSW 2001 [insert name and delete as appropriate] of [insert address] being the Holder of the of Warrants specified below.2 of the Terms of Issue. This Exercise Notice is irrevocable. By completing this Exercise Notice. I/we represent and warrant that the Warrants are neither directly nor indirectly held in favour of a United States Person and have been acquired in accordance with the sales restrictions set forth in the PDS. Completed if the Holder is a company [COMPANY NAME] LIMITED ) ) Signature Print name Office held Signature Print name Office held Completed if the Holder is an individual SIGNED SEALED and DELIVERED by [NAME] in the presence of: ) ) ) Signature Witness Print name Citigroup Inc_Turbo_20100504 39 .
WARRANTS MUST BE EXERCISED IN MULTIPLES OF THE REQUIRED NUMBER. to deliver the Underlying Parcel to Citi where your Securities are held in a CHESS Holding (which must include your HIN and the broker’s PID). IF THIS EXERCISE NOTICE DOES NOT SPECIFY A NUMBER OF WARRANTS THAT IS SUCH A MULTIPLE. prior to this Exercise Notice being sent. If you already own Securities of the type that make up the Underlying Parcel.H) Citigroup Inc_Turbo_20100504 40 . in addition to this Exercise Notice. a copy of the written instruction that has been given to your broker. you must provide: 1. The cheque must be for an amount which is the Exercise Price for the particular Series. or 2. you must provide a cheque made out to Citigroup Global Markets Australia Pty Limited. please supply details in the space below and the Underlying Parcel will be added to that holding: Shareholder Reference Number (SRN) Holder Identification Number (HIN) Participant Identification (PID) Exercise Notice for Put Warrants If you are exercising a Put Warrant. Please complete the table below to estimate the proceeds you will receive for the sale of your Securities to Citigroup Global Markets Australia Pty Limited. Exercise Notice for Call Warrants If you are exercising a Call Warrant. A ASX Code B Underlying Parcel C Exercise Price D Required Number for Exercise E Number of Warrants being exercised F Number of Securities to be delivered (E ÷ D) G Amount of cheque excluding Exercise Costs (C x F) H Exercise Costs to be deducted I Total amount of the cheque to you (G . CITI MAY (BUT IS NOT OBLIGED TO) TREAT THE NOTICE AS SUCH BY ROUNDING DOWN. in addition to this Exercise Notice. Please complete the table below to determine the amount of the cheque. plus any Exercise Costs. A ASX Code B Underlying Parcel C Exercise Price D Required Number for Exercise E Number of Warrants being exercised F Number of Securities to be delivered to you (E ÷ D) G Amount of cheque excluding Exercise Costs (C x F) H Exercise Costs to be added I Total amount of the cheque (G + H) The Exercise Costs can be determined by contacting your broker or by calling Computershare on 1300 364 060 during normal business hours. multiplied by the number of Warrants being exercised divided by the Required Number. a copy of the Issuer Sponsored Holding Statement where your Securities are held in an Issuer Sponsored Holding (which must include your SRN). The Exercise Costs can be determined by contacting your broker or by calling Computershare on 1300 364 060 during normal business hours.
CORPORATE DIRECTORY Citi Citigroup Global Markets Australia Pty Limited Level 40 Citigroup Centre 2 Park Street Sydney NSW 2000 Guarantor Citigroup Inc. 399 Park Avenue New York New York 10043 United States of America Broker Citigroup Global Markets Australia Pty Limited Level 40 Citigroup Centre 2 Park Street Sydney NSW 2000 Lawyers Freehills MLC Centre Martin Place Sydney NSW 2000 Registrar Computershare Investor Services Pty Limited Level 3 60 Carrington Street Sydney NSW 2000 Citigroup Inc_Turbo_20100504 41 .
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