Document:

Stock Purchase Warrant to Purchase Shares of Common Stock, $.05 Par Value

 Exhibit 10.1 
 NEITHER THIS WARRANT, NOR THE SHARES OF COMMON STOCK FOR WHICH IT IS EXERCISABLE, HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND NO TRANSFER OR ASSIGNMENT OF THIS WARRANT OR THE SHARES ISSUABLE UPON ITS EXERCISE MAY BE MADE IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR THE AVAILABILITY OF AN EXEMPTION IN FACT FROM THE REGISTRATION PROVISIONS OF SUCH ACT IN RESPECT OF SUCH TRANSFER OR ASSIGNMENT. 
  

			
	December 30, 2005	 	100,000 Shares

 TRANSCEND SERVICES, INC. 
 STOCK PURCHASE WARRANT 
 TO PURCHASE SHARES OF COMMON STOCK, $.05 PAR VALUE

 This is to certify that, for value received, HFG Healthco-4, LLC, a Delaware limited liability company (“Holder” or
“Warrant Holder”), or its successors and permitted assigns, is entitled upon the due exercise hereof at any time during the period commencing on December 30, 2005 and terminating at 5:00 p.m., Eastern Daylight Time, on the later of
(i) December 29, 2009 or (ii) date that is 90 days after the date that the loans under the Loan Agreement are paid in full (the later of such dates under the preceding subitems (i) or (ii) shall be referred to as the
“Termination Date”), to purchase 100,000 shares of the $0.05 par value Common Stock of Transcend Services, Inc. at a price per share as specified in Section 2 of this Warrant and to exercise the other rights, powers and privileges
hereinafter provided, all on the terms and subject to the conditions specified herein. 
 1. Certain Definitions. Unless the context otherwise
requires, the following terms as used in this Warrant shall have the following meanings: 
  

	 	(a)	Average Market Value. The average of the Closing Prices for the security in question for the five trading days immediately preceding the date of determination.

  

	 	(b)	Closing Price. The last reported sale price per share of the Company’s Common Stock on the NASDAQ Small Cap Market System, or other primary market for the Company’s
Common Stock, for such trading day. In the event that there shall not have been a sale on such exchange for such trading day, then the last reported sale price per share of the Company’s Common Stock on such exchange for the most recent
previous day in which there was a reported sale. 

  

	 	(c)	Common Stock. The Company’s $0.05 par value Common Stock, any stock into which such stock shall have been changed or any stock resulting from reclassification of such
stock. 

  

	 	(d)	Company. Transcend Services, Inc., a Delaware corporation, and its successors and assigns. 

	 	(e)	Exercise Price. The price specified in Section 2 hereof, as the same shall be adjusted from time to time pursuant to the provisions of this Warrant.

  

	 	(f)	Loan Agreement. That certain Loan and Security Agreement, dated as of December 30, 2005, among the Company, HFG Healthco-4, LLC, as Agent, HFG Healthco-4, LLC, as
Revolving Lender, and HFG Healthco-6, LLC, as Acquisition Lender, as amended or otherwise modified from time to time. 

  

	 	(g)	Warrant Shares. The shares of Common Stock issued upon exercise of all or a portion of this Warrant. 

 2. Exercise Price. The initial Exercise Price per share shall be $2.25. 
 3. Exercise of Warrant. 
 3.1 (a) The Holder of this Warrant may, at any time on and after the date hereof but prior to the Termination
Date (the “Exercise Date”), exercise this Warrant in whole or in part (provided that exercises in part must be in whole increments of 50,000 shares each), at any time or in part from time to time for the number of shares which such Holder
is then entitled to purchase hereunder. 
 (b) The Holder may exercise this Warrant, in whole or in part, by delivering to the Company at its
office maintained pursuant to Section 4 for such purpose (i) a written notice of such Holder’s election to exercise this Warrant, which notice shall specify the number of shares to be purchased, (ii) this Warrant, and
(iii) a sum equal to the Exercise Price therefor in cash or by certified check or bank draft. 
 (c) Such notice may be in the form of
an election to subscribe attached hereto. Upon delivery thereof, the Company shall as promptly as practicable and in any event within ten (10) business days thereafter, cause to be executed and delivered to such Holder a certificate or
certificates representing the aggregate number of fully-paid and nonassessable shares of Common Stock issuable upon such exercise. 
 3.2 (a) In lieu of
exercising the Warrant for cash pursuant to Section 3.1 above, and to the extent otherwise permitted under laws and regulations applicable to the Company or its successor, the Holder may exercise the Warrant by converting all or any part of the
Warrant into a number of Warrant Shares calculated as described below (the “Conversion Right”). In order to exercise the Conversion Right, the Holder shall deliver to the Company a written notice of conversion signed by the Holder (a
“Notice of Conversion”) and which shall specify the number of Warrant Shares as to which the Conversion Right is to be exercised (the “Conversion Shares”) and be accompanied by this original Agreement. The Holder’s exercise
of the Conversion Right shall be deemed to be effective on the date on which the Notice of Conversion actually is received by the Company; however, to be an effective exercise, the Holder’s Notice of Conversion must actually be received by the
Company prior to the time the Warrant terminates. Any references in this Warrant to the “exercise” of this Warrant, and the use of the term “exercise” herein, shall be deemed to include, without limitation, any exercise of the
Conversion Right. 
 (b) Within 10 business days after the exercise of the Conversion Right as provided in this Section 3.2, the Company
shall deliver to the Holder (without payment by the Holder of any cash in respect of the Exercise Price) a certificate or certificates, in such names and denominations as are requested by the Holder, for that total number of Warrant Shares which is
equal to the amount obtained by dividing (x) an amount equal to the difference between (A) the aggregate of the average Closing Price for the ten trading days immediately prior to the exercise date for the Conversion Shares, minus
(B) the aggregate Exercise Price of the Conversion Shares (such difference, the “Conversion Amount”), by 

 (y) the aggregate of the average Closing Price for the ten trading days immediately prior to the exercise date of
one share of Common Stock determined as described below as of the date on which the exercise of the Conversion Right is effective. Upon exercise of the Conversion Right, the Conversion Amount shall be deemed to have been paid to the Company in
respect of the Warrant Shares so acquired. 
 (c) In the event the exercise of the Conversion Right does not apply to all Warrant Shares,
then the Warrant Shares covered by the Warrant shall be reduced by the number of Warrant Shares subject to such partial exercise, and the Company, at its expense, shall forthwith issue and deliver to Holder a new original copy of this Warrant
Agreement signed by the Company reflecting the adjusted number of Warrant Shares as to which the Warrant remains exercisable. Holder shall promptly execute a photocopy of such replacement copy and return it to the Company, but such replacement copy
shall be deemed to be an original agreement fully executed and delivered by both parties despite any failure by Holder to do so. 
 3.3 (a) The stock
certificate or certificates for shares of Common Stock so delivered shall be in such denominations as may be specified in said notice and shall be registered in the name of such Holder or such other name or names as shall be designated in said
notice. Such certificate or certificates shall be deemed to have been issued and such Holder or any other person so designated to be named therein shall be deemed to have become a Holder of record of such shares, including to the extent permitted by
law the right to vote such shares or to consent or to receive notice as a stockholder, as of the time said notice is delivered to the Company as aforesaid. If this Warrant shall have been exercised only in part, the Company shall, at the time of
delivery of said certificate or certificates, deliver to such Holder a new Warrant dated the date it is issued, evidencing the rights of such Holder to purchase the remaining shares of Common Stock called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant, or, at the request of such Holder, appropriate notation may be made on this Warrant and the Warrant shall be returned to such Holder. 
 (b) The Company shall pay all expenses, transfer taxes and other charges payable in connection with the preparation, issue and delivery of stock
certificates under this Section 3, except that, in case such stock certificates shall be registered in a name or names other than the name of the Holder, funds sufficient to pay all stock transfer taxes which shall be payable upon the issuance
of such stock certificate or certificates shall be paid by the Holder hereof at the time of delivering the notice of exercise mentioned above. 
 (c) The Company shall not issue certificates for fractional shares of stock upon any exercise of this Warrant. Whenever, in order to implement the provisions of this Warrant, the issuance of fractional shares is required, the Company shall,
in lieu of the issuance of a fractional share, pay to the Holder an amount in cash equal to the Average Market Value of such fractional share. 
 4.
Warrant Registration. The Company shall at all times while any portion of this Warrant remains outstanding and exercisable keep and maintain at its principal office a register in which the registration and exchange of this Warrant shall be
provided for. The Company shall not at any time, except upon the dissolution, liquidation or winding up of the Company, close such register so as to result in preventing or delaying the exercise or transfer of this Warrant. 
 5. Transferability. This Warrant and all rights hereunder shall not be transferable by the Holder hereof except to either (i) a company or entity that is
affiliated through common ownership with Holder, or (ii) a third party to whom a participating interest in the loans made to the Company under the Loan Agreement, provided that any assignment under this subitem (ii) shall require the
written consent of the Company, which shall not be unreasonably withheld. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for all purposes and shall not be affected by any notice to the contrary.

 6. Exchange. This Warrant is exchangeable, upon the surrender hereof by the Holder at the offices of the Company,
for new warrants, in such denominations as Holder shall designate at the time of surrender for exchange; of like tenor and date representing in the aggregate the right to subscribe for and purchase the number of shares which may be subscribed for
and purchased hereunder, each of such new warrants to represent the right to subscribe for and purchase not less than 1,000 shares of Common Stock (except to the extent necessary to round out the balance of the number of shares purchasable
hereunder). 
 7. Representations and Covenants of Company. 
  

	 	(a)	The Company is a corporation duly organized and validly existing and in good standing under the laws of the State of Delaware. The Company has the corporate power and authority to
execute and deliver this Agreement and to perform the terms hereof, including the issuance of shares of Common Stock issuable upon exercise of the Warrant. The Company has taken all action necessary to authorize the execution, delivery and
performance of this Agreement and the issuance of the shares of Common Stock issuable upon exercise of the Warrant. This Agreement has been duly authorized and executed and constitutes the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors’ rights
generally. 

  

	 	(b)	The Company covenants and agrees that all shares which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be fully paid and
non-assessable and free from all taxes, liens and charges with respect to the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). 

 8. Adjustment of Warrant. 
 The Exercise Price and
number of shares of Common Stock purchasable pursuant to this Warrant shall be subject to adjustment from time to time as follows: 
  

	 	(a)	In case the Company shall at any time exchange as a whole, by subdivision or combination in any manner or by the making of a stock dividend, the number of shares of Common Stock
then outstanding into a different number of shares, with or without par value, then thereafter the number of shares of Common Stock which the Holder of this Warrant shall be entitled to purchase (calculated immediately prior to such change), shall
be increased or decreased, as the case may be, in direct proportion to the increase or decrease in the number of shares of Common Stock of the Company by reason of such change, and the Exercise Price of the shares of such Common Stock after such
change shall, in case of an increase in the number of shares of Common Stock, be proportionately reduced, and, in case of a decrease in the number of shares of Common Stock, be proportionately increased. 

  

	 	(b)	In case of any reclassification or change of outstanding shares of Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par
value, or as a result of a subdivision, combination or stock dividend as provided for in Section 8(a)), or in case of any consolidation of the Company with, or merger of the Company into, another corporation, or in case of any sale of all, or
substantially all, of the 

 property, assets, business and good will of the Company as an entirety, the Company, or such successor or
purchasing corporation, as the case may be, shall provide that the Holder of this Warrant shall thereafter be entitled to purchase the kind and amount of shares of stock and other securities and property receivable upon such reclassification,
change, consolidation, merger or sale by a holder of the number of shares of Common Stock which this Warrant entitles the Holder hereof to purchase immediately prior to such reclassification, change, consolidation, merger or sale. Any such successor
corporation thereafter shall be deemed to be the Company for purposes of this Warrant. 
 9. Holder’s Rights. Except as otherwise expressly
agreed to herein, this Warrant shall not entitle the Holder to any rights of a stockholder of the Company. 
 10. Notices. If there shall be any
adjustment as provided above in Section 8, the Company shall forthwith cause written notice thereof to be sent by registered mail, postage prepaid, to the registered Holder of this Warrant at the address of such Holder shown on the books of the
Company, which notice shall be accompanied by an explanation prepared by the Company setting forth in reasonable detail the basis for the Holder’s becoming entitled to purchase such shares and the number of shares which may be purchased and the
Exercise Price thereof, or the facts requiring any such adjustment and the Exercise Price and number of shares purchasable after such adjustment, or the kind and amount of any such securities or property so purchasable upon the exercise of this
Warrant, as the case may be. At the request of Holder and upon surrender of this Warrant, the Company shall reissue this Warrant in a form conforming to such adjustments. 
 11. Cash in Lieu of Fractional Shares. The Company shall not be required to issue fractional shares upon the exercise of this Warrant. If, by reason of any change made pursuant to Section 8 hereof, the
Holder of this Warrant would be entitled, upon the exercise of any rights evidenced hereby, to receive a fractional interest in a share, the Company shall, upon such exercise, purchase such fractional interest for an amount in cash equal to the
Average Market Value of such fractional interest, determined as of the Exercise Date. 
 12. Registration Rights. 
  

	 	(a)	As used in this Section 12, the following terms shall have the following respective meanings: 

 “Registrable Securities” shall mean the Warrant Shares actually issued and shares issuable upon exercise of the Warrant(s), which have
not been sold to the public. 
 The terms “register,” “registered” and “registration” refer
to a registration effected by preparing and filing a registration statement in compliance with the Securities Act of 1933, as amended (the “Securities Act”), and the declaration or ordering of the effectiveness of such registration
statement. 
 “Registration Expenses” shall mean all expenses incurred by the Company in complying with this Section 12
hereof, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses, fees of the National Association of Securities Dealers, Inc. and
accountants’ expenses, and any fees and disbursements of underwriters customarily paid by issuers or sellers of securities, but excluding underwriting discounts and commissions. 

	 	(b)	Restrictions on Transfer. The Holder represents to the Company that it is acquiring the Warrant(s) for its own investment account and without a view to the subsequent public
distribution of the Warrant(s) or Warrant Shares actually issued otherwise than pursuant to an effective registration statement under the Securities Act or an exemption therefrom. Each Warrant and each certificate for Warrant Shares issued to the
Holder which have not been sold to the public pursuant to an effective registration statement under the Securities Act or as to which the restrictions on transfer have not been removed as hereinafter provided, shall bear a restrictive legend
reciting that the same have not been registered pursuant to the Securities Act and may not be transferred in the absence of an effective registration statement as to such Warrant(s) or shares or an exemption in fact from the registration
requirements thereof. Simultaneously with any purchase of shares of Common Stock hereunder, the Holder will provide the Company upon request with a written representation that it or he is acquiring the shares of Common Stock for its or his own
investment account and without a view to the subsequent public distribution of the shares of Common Stock otherwise than in compliance with the Securities Act. Prior to any proposed transfer of any Registrable Securities, except pursuant to an
effective registration statement under the Securities Act, the Holder thereof shall give written notice to the Company of its intention to effect such transfer. Each such notice shall describe the manner of the proposed transfer and shall be
accompanied by an opinion of counsel experienced in federal securities laws matters and reasonably acceptable to the Company and its counsel to the effect that the proposed transfer may be effected without registration under the Securities Act,
whereupon the Holder shall be entitled to transfer such securities in accordance with the terms of its notice and such opinion. Restrictions imposed under this Section 12(b) upon the transferability of Registrable Securities shall cease when

  

	 	(i)	a registration statement covering such Registrable Securities becomes effective under the Securities Act, or 

  

	 	(ii)	the Company receives from the Holder thereof an opinion of counsel experienced in federal securities laws matters, which counsel shall be reasonably acceptable to the Company, that
such restrictions are no longer required in order to insure compliance with the Securities Act. 

 When such restrictions
terminate, the Company shall, or shall instruct its transfer agent to, issue new securities in the name of the Holder not bearing the legends required by this Section 12(b). 
  

	 	(c)	Incidental Registration - Right to Include Registrable Securities. If, prior to the time that the Registrable Securities become eligible for resale pursuant to Rule 144 under
the Securities Act, the Company proposes to register any of its equity securities under the Securities Act, whether or not for sale for its own account, on a form and in a manner which would permit registration of Registrable Securities for sale to
the public under the Securities Act, it will each such time give prompt written notice to the Holder of Registrable Securities of its intention to do so, describing such securities and specifying the form and manner and the other relevant facts
involved in such proposed registration, and upon the written request of such Holder delivered to the Company within ten (10) business days after the giving of any such notice (which request shall specify the Registrable Securities intended to
be disposed of by such Holder and the intended method or methods of disposition thereof), the Company will use its best efforts to effect the registration under the Securities Act of all Registrable Securities which the Company has been so requested
to register by the Holder of Registrable Securities (hereinafter 

 “Requesting Holder”), to the extent requisite to permit the disposition of the Registrable
Securities in accordance with the intended methods thereof as specified by the holders of a majority of the Registrable Securities so to be registered, provided that: 
  

	 	(i)	if, at any time after giving such written notice of its intention to register any of its securities and prior to the effective date of the registration statement filed in connection
with such registration, the Company shall determine for any reason not to register such securities, the Company may, at its election, give written notice of such determination to the Requesting Holder and thereupon shall be relieved of its
obligation to register any Registrable Securities in connection with such registration (but not from its obligation to pay the Registration Expenses in connection therewith as provided in subdivision (d) of this Section 12);

  

	 	(ii)	if (A) the registration so proposed by the Company involves an underwritten offering of the securities so being registered, whether or not for sale for the account of the
Company, to be distributed by or through one or more underwriters of recognized standing under underwriting terms appropriate for such a transaction, (B) the Company proposes that the securities to be registered in such underwritten offering
will not include all of the Registrable Securities requested to be so included, and (C) the managing underwriter of such underwritten offering shall advise the Company that, in its judgment, the distribution of all or a specified portion of
such Registrable Securities concurrently with the securities being distributed by such underwriters will adversely affect the distribution of such securities by such underwriters, then the distribution of all or a specified portion of such
Registrable Securities shall be excluded from such distribution (in case of an exclusion of a portion of such Registrable Securities, such portion to be allocated among all such Holders in proportion to the respective numbers of shares of
Registrable Securities owned by such Holders); and 

  

	 	(iii)	the Company shall not be obligated to effect any registration of Registrable Securities under this Section 12 incidental to the registration of any of its securities in
connection with mergers, acquisitions, exchange offers, dividend reinvestment plans or stock option or other employee benefit plans or incidental to the registration of any non-equity securities not convertible into equity securities.

  

	 	(d)	Expenses. Except as otherwise prohibited by applicable law, the Company will pay all Registration Expenses in connection with each registration of Registrable Securities
requested pursuant to this Section 12. 

  

	 	(e)	Rights After Exercise. Notwithstanding that this Warrant may have been exercised or that the period of exercisability may have expired, each holder of Warrant Shares shall
continue to be entitled to all rights to which a Warrantholder would be entitled pursuant to this Warrant, except rights which by their terms are clearly inapplicable to Warrant Shares. Upon request by any holder of Warrant Shares, the Company will
acknowledge such holders’ continuing rights. 

 13. Lost, Stolen, Mutilated, or Destroyed Warrants. If this Warrant shall become
lost, stolen, mutilated, or destroyed, the Company shall, on such terms as to indemnity or otherwise as it may in its reasonable discretion impose upon the registered Holder thereof (as shown on the register of Warrants maintained by the Company),
issue a new warrant of like denomination, tenor, and date as the warrant so lost, stolen, mutilated, or destroyed. 

 14. Limitation of Liability. No provision hereof, in the absence of affirmative action by the Holder hereof to
purchase shares of Common Stock, and no mere enumeration herein of the rights or privileges of the Holder hereof, shall give rise to any liability of such Holder for the purchase price of the shares or as a stockholder of the Company, whether such
liability is asserted by the Company or by creditors of the Company. 
 15. Applicable Law. The validity, interpretation, and performance of this
Warrant shall be governed by the laws of the State of Delaware. 
 16. Successors and Assigns. This Warrant and the rights evidenced hereby shall
inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the Holder hereof. 
 17. Headings. Headings of
the paragraphs in this Warrant are for convenience and reference only and shall not, for any purpose, be deemed a part of this Warrant. 
 [Signature Appears on Following Page] 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed as of the 30th day of December, 2005, by its duly authorized officers, each of which may be by facsimile. 
  

			
	TRANSCEND SERVICES, INC.
		
	By:	 	 /s/ Lance Cornell

	Name:	 	Lance Cornell
	Title:	 	C.F.O.

  

	
	ATTEST:
	
	 /s/ Lance Cornell

	Secretary or Assistant Secretary

 EXHIBIT A 
 [Subscription Form to Be Executed Upon Exercise of Warrant] 
 The undersigned, registered holder or
permitted assignee of such registered holder of the within Warrant, hereby (1) subscribes for              Shares which the undersigned is entitled to purchase under the terms
of the within Warrant, (2) makes the full cash payment therefor called for by the within Warrant, and (3) directs that the shares issuable upon exercise of said Warrant be issued as follows: 
  

			
	(Name)
	
	(Address)
	
	  
 Signature

		
	Dated:	 	  

 NOTICE: The signature on this subscription form must correspond with the name as written upon the
face of the within Warrant in every particular, without alteration or enlargement, or any change whatsoever and must be guaranteed by a bank, other than a savings bank or trust company, or by a firm having membership on a registered national
securities exchange.Form of Note

 Exhibit 4.01 
 THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM,
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO A NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO CITIGROUP FUNDING INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

					
	No. R-1	  		  	INITIAL PRINCIPAL AMOUNT
	CUSIP: 17308C 66 8	  		  	REPRESENTED $112,500,000
	ISIN: US17308C6681	  		  	representing 11,250,000 ELKS
		  		  	($10 per ELKS)

 CITIGROUP FUNDING INC. 
 8.4% Equity LinKed Securities (ELKS®) Based Upon the Common Stock of 
 Texas Instruments Inc. Due March 14, 2007 
 Citigroup Funding Inc., a Delaware corporation (hereinafter referred to as the “Company,” which term includes any successor corporation
under the Indenture herein referred to), for value received and on condition that this Note is not redeemed by the Company prior to March 14, 2007 (the “Stated Maturity Date”), hereby promises to pay to CEDE & CO., or
its registered assigns, the Maturity Payment (as defined below), on the Stated Maturity Date. This Note will pay semi-annual coupon payments, is not subject to any sinking fund, is not subject to redemption at the option of the holder thereof prior
to the Stated Maturity Date, and is not subject to the defeasance provisions of the Indenture. The payments due on this note are fully and unconditionally guaranteed by Citigroup Inc., a Delaware corporation (the “Guarantor”).

 Payment of the Maturity Payment with respect to this Note shall be made upon presentation and surrender of this Note at the corporate
trust office of the Trustee in the Borough of Manhattan, The City and State of New York, in such coin or currency of the United States as at the time of payment is legal tender for payment of public and private debts or, if applicable, in the common
stock of Texas Instruments Inc. (“Texas Instruments”). 
 This Note is one of the series of 8.4% Equity LinKed Securities
Based Upon the Common Stock of Texas Instruments Inc. Due March 14, 2007 (the “ELKS”). 

 COUPON 
 A
coupon of $0.4597 per ELKS will be paid in cash on September 14, 2006 and a coupon of $0.4200 per ELKS will be paid in cash on March 14, 2007. The September 14, 2006 coupon will be composed of $0.2707 of interest and a partial payment
of an option premium in the amount of $0.1890. The March 14, 2007 coupon will be composed of $0.2473 of interest and a partial payment of an option premium in the amount of $0.1727. Coupon payments will be payable to the persons in whose names
the ELKS are registered at the close of business on the third Business Day preceding each Coupon Payment Date. If a Coupon Payment Date falls on a day that is not a Business Day, the coupon payment to be made on such Coupon Payment Date will be made
on the next succeeding Business Day with the same force and effect as if made on such Coupon Payment Date, and no additional interest will accrue as a result of such delayed payment. 
 “Business Day” means any day that is not a Saturday, a Sunday or a day on which securities exchanges or banking institutions or trust
companies in the City of New York are authorized or obligated by law or executive order to close. 
 The interest portion of the coupon will
represent interest accruing at a rate of 4.94626% per annum from February 27, 2006 or from the most recent Coupon Payment Date to which the interest portion of the coupon has been paid or provided for until the Stated Maturity Date. The
interest portion of the coupon will be computed on the basis of a 360-day year of twelve 30-day months. 
 PAYMENT AT MATURITY 
 On the Stated Maturity Date, holders of the ELKS will receive for each ELKS the Maturity Payment described below. 
 DETERMINATION OF THE MATURITY PAYMENT 
 The Maturity Payment for each ELKS will equal either: 
  

	 	•	 	a number of shares of Texas Instruments common stock equal to the Exchange Ratio, if the Trading Price of Texas Instruments common stock on any Trading Day after February 22,
2006 up to and including the third Trading Day before the Stated Maturity Date (whether intra-day or at the close of trading on any day) is less than or equal to $24.04 (approximately 77.5% of the Initial Share Price), which price will be referred
to as the “Downside Trigger Price,” or 

  

	 	•	 	$10 in cash. 

 In lieu of any fractional share of Texas
Instruments common stock otherwise payable in respect of any ELKS, at the Stated Maturity Date, the holder of this Note will receive an amount in cash equal to the value of such fractional share. The number of full shares of Texas Instruments common
stock, and any cash in lieu of a fractional share, to be delivered at the 
  

 2 

 Stated Maturity Date to the holder of this Note will be calculated based on the aggregate number of ELKS held by such
holder. 
 The “Initial Share Price” equals $31.02, the price per share of Texas Instruments common stock at the market
close on February 22, 2006. 
 The “Exchange Ratio” equals 0.32237. 
 A “Market Disruption Event” means the occurrence or existence of any suspension of or limitation imposed on trading (by reason of
movements in price exceeding limits permitted by any exchange or market or otherwise) of, or the unavailability, through a recognized system of public dissemination of transaction information, of accurate price, volume or related information in
respect of, (1) the shares of Texas Instruments common stock (or any other security for which a Trading Price or Closing Price must be determined) on any exchange or market, or (2) any options contracts or futures contracts relating to the
shares of Texas Instruments common stock (or other security), or any options on such futures contracts, on any exchange or market if, in each case, in the determination of the calculation agent, any such suspension, limitation or unavailability is
material. 
 A “Trading Day” means a day, as determined by the calculation agent, on which trading is generally conducted
(or was scheduled to have been generally conducted, but for the occurrence of a Market Disruption Event) on the New York Stock Exchange, the American Stock Exchange, the Nasdaq National Market, the Chicago Mercantile Exchange and the Chicago Board
Options Exchange, and in the over-the-counter market for equity securities in the United States. 
 The “Trading Price” of
Texas Instruments common stock or any other capital stock on any date of determination will be (1) if the common stock or capital stock is listed on a national securities exchange on that date of determination, any reported sale price, regular
way, of the principal trading session on that date on the principal U.S. exchange on which the common stock or capital stock is listed or admitted to trading, (2) if the common stock or capital stock is not listed on a national securities
exchange on that date of determination, or if the reported sale price on such exchange is not obtainable (even if the common stock or capital stock is listed or admitted to trading on such exchange), and the common stock or capital stock is quoted
on the Nasdaq National Market, any reported sale price of the principal trading session on that date as reported on the Nasdaq, and (3) if the common stock or capital stock is not quoted on the Nasdaq on that date of determination, or if the
reported sale price on the Nasdaq is not obtainable (even if the common stock or capital stock is quoted on the Nasdaq), any reported sale price of the principal trading session on the over-the-counter market on that date as reported on the OTC
Bulletin Board, the National Quotation Bureau or a similar organization. The determination of the Trading Price by the calculation agent in the event of a Market Disruption Event may be deferred by the calculation agent for up to five consecutive
Trading Days on which a Market Disruption Event is occurring, but not past the Trading Day prior to the Stated Maturity Date. If no reported sale price of the principal trading session is available pursuant to clauses (1), (2) or (3) above
or if there is a Market Disruption Event, the Trading Price on any date of determination, unless deferred by the calculation agent as described in the preceding sentence, 
  

 3 

 will be the arithmetic mean, as determined by the calculation agent, of the bid prices of the common stock or capital
stock obtained from as many dealers in such stock (which may include Citigroup Global Markets Inc. or any of our other subsidiaries or affiliates), but not exceeding three such dealers, as will make such bid prices available to the calculation
agent. A security “quoted on the Nasdaq National Market” will include a security included for listing or quotation in any successor to such system and the term “OTC Bulletin Board” will include any successor to such
service. 
 DILUTION ADJUSTMENTS 
 If Texas Instruments Inc., after February 22, 2006, 
 (1) pays a stock dividend or makes a distribution
with respect to its common stock in shares of the stock, 
 (2) subdivides or splits the outstanding shares of its common stock into a
greater number of shares, 
 (3) combines the outstanding shares of the common stock into a smaller number of shares, or 
 (4) issues by reclassification of shares of its common stock any shares of other common stock of Texas Instruments Inc., 
 then, in each of these cases, the Exchange Ratio will be multiplied by a dilution adjustment equal to a fraction, the numerator of which will be the number of shares of
common stock outstanding immediately after the event, plus, in the case of a reclassification referred to in (4) above, the number of shares of other common stock of Texas Instruments Inc., and the denominator of which will be the number of
shares of common stock outstanding immediately before the event. The Initial Share Price and the Downside Trigger Price will also be adjusted in that case in the manner described below. 
 If Texas Instruments Inc., after February 22, 2006, issues, or declares a record date in respect of an issuance of, rights or warrants to all
holders of its common stock entitling them to subscribe for or purchase shares of its common stock at a price per share less than the Then-Current Market Price of the common stock, other than rights to purchase common stock pursuant to a plan for
the reinvestment of dividends or interest, then, in each case, the Exchange Ratio will be multiplied by a dilution adjustment equal to a fraction, the numerator of which will be the number of shares of common stock outstanding immediately before the
adjustment is effected, plus the number of additional shares of common stock offered for subscription or purchase pursuant to the rights or warrants, and the denominator of which will be the number of shares of common stock outstanding immediately
before the adjustment is effected by reason of the issuance of the rights or warrants, plus the number of additional shares of common stock which the aggregate offering price of the total number of shares of common stock offered for subscription or
purchase pursuant to the rights or warrants would purchase at the Then-Current Market Price of the common stock, which will be determined by multiplying the total number of 
  

 4 

 shares so offered for subscription or purchase by the exercise price of the rights or warrants and dividing the product
obtained by the Then-Current Market Price. To the extent that, after the expiration of the rights or warrants, the shares of common stock offered thereby have not been delivered, the Exchange Ratio will be further adjusted to equal the Exchange
Ratio which would have been in effect had the adjustment for the issuance of the rights or warrants been made upon the basis of delivery of only the number of shares of common stock actually delivered. The Initial Share Price and the Downside
Trigger Price will also be adjusted in that case in the manner described below. 
 If Texas Instruments Inc., after February 22, 2006,
declares or pays a dividend or makes a distribution to all holders of the common stock of any class of its capital stock, the capital stock of one or more of its subsidiaries, evidences of its indebtedness or other non-cash assets, excluding any
dividends or distributions referred to in the above paragraph and excluding any issuance or distribution to all holders of its common stock, in the form of Marketable Securities, of capital stock of one or more of its subsidiaries, or issues to all
holders of its common stock rights or warrants to subscribe for or purchase any of its or one or more of its subsidiaries’ securities, other than rights or warrants referred to in the above paragraph, then, in each of these cases, the Exchange
Ratio will be multiplied by a dilution adjustment equal to a fraction, the numerator of which will be the Then-Current Market Price of one share of the common stock, and the denominator of which will be the Then-Current Market Price of one share of
the common stock, less the fair market value (as determined by a nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final) as of the time the adjustment is effected of the
portion of the capital stock, assets, evidences of indebtedness, rights or warrants so distributed or issued applicable to one share of common stock. The Initial Share Price and the Downside Trigger Price will also be adjusted in that case in the
manner described below. If any capital stock declared or paid as a dividend or otherwise distributed or issued to all holders of Texas Instruments common stock consists, in whole or in part, of Marketable Securities, then the fair market value of
such Marketable Securities will be determined by the calculation agent by reference to the Trading Price of such capital stock. The fair market value of any other distribution or issuance referred to in this paragraph will be determined by a
nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final. 
 Notwithstanding the foregoing, in the event that, with respect to any dividend or distribution to which the above paragraph would otherwise apply, the denominator in the fraction referred to in the above formula is less than $1.00 or is a
negative number, then the Company may, at its option, elect to have the adjustment provided by the above paragraph not be made and in lieu of this adjustment, the Trading Price of Texas Instruments common stock on any Trading Day thereafter up to
and including the third Trading Day before the Stated Maturity Date will be deemed to be equal to the fair market value of the capital stock, evidences of indebtedness, assets, rights or warrants (determined, as of the date this dividend or
distribution is made, by a nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final) so distributed or issued applicable to one share of Texas Instruments common stock and,
if the Trading Price of Texas Instruments common stock on any Trading Day thereafter, up to and including the third Trading Day before the Stated Maturity Date, is less than or equal to the Downside Trigger Price, each holder of the ELKS will

  

 5 

 have the right to receive at the Stated Maturity Date cash in an amount per ELKS equal to the Exchange Ratio multiplied
by such fair market value. 
 If Texas Instruments Inc., after February 22, 2006, declares a record date in respect of a distribution of
cash, other than any Permitted Dividends described below, any cash distributed in consideration of fractional shares of common stock and any cash distributed in a Reorganization Event referred to below, by dividend or otherwise, to all holders of
its common stock, or makes an Excess Purchase Payment, then the Exchange Ratio will be multiplied by a dilution adjustment equal to a fraction, the numerator of which will be the Then-Current Market Price of the common stock, and the denominator of
which will be the Then-Current Market Price of the common stock on the record date less the amount of the distribution applicable to one share of common stock which would not be a Permitted Dividend, or, in the case of an Excess Purchase Payment,
less the aggregate amount of the Excess Purchase Payment for which adjustment is being made at the time divided by the number of shares of common stock outstanding on the record date. The Initial Share Price and the Downside Trigger Price will also
be adjusted in that case in the manner described below. 
 For the purposes of these adjustments: 
 A “Permitted Dividend” is any cash dividend in respect of Texas Instruments common stock, other than a cash dividend that exceeds the
immediately preceding cash dividend, and then only to the extent that the per share amount of this dividend results in an annualized dividend yield on the common stock in excess of 10%. 
 An “Excess Purchase Payment” is the excess, if any, of (x) the cash and the value (as determined by a nationally recognized
independent investment banking firm retained for this purpose by the Company, whose determination will be final) of all other consideration paid by Texas Instruments Inc. with respect to one share of common stock acquired in a tender offer or
exchange offer by Texas Instruments Inc., over (y) the Then-Current Market Price of the common stock. 
 Notwithstanding the foregoing,
in the event that, with respect to any dividend, distribution or Excess Purchase Payment to which the sixth paragraph in this section would otherwise apply, the denominator in the fraction referred to in the formula in that paragraph is less than
$1.00 or is a negative number, then the Company may, at its option, elect to have the adjustment provided by the sixth paragraph in this section not be made and in lieu of this adjustment, the Trading Price of Texas Instruments common stock on any
Trading Day thereafter up to and including the third Trading Day before the Stated Maturity Date will be deemed to be equal to the sum of the amount of cash and the fair market value of other consideration (determined, as of the date this dividend
or distribution is made, by a nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final) so distributed or applied to the acquisition of the common stock in the tender offer
or exchange offer applicable to one share of Texas Instruments common stock and, if the Trading Price of Texas Instruments common stock on any Trading Day thereafter, up to and including the third Trading Day before the Stated Maturity Date, is less
than or equal to 
  

 6 

 the Downside Trigger Price, each holder of the ELKS will have the right to receive at the Stated Maturity Date cash in an
amount per ELKS equal to the Exchange Ratio multiplied by such sum. 
 If any adjustment is made to the Exchange Ratio as set forth above, an
adjustment will also be made to the Initial Share Price and the Downside Trigger Price. The required adjustment will be made by dividing the Initial Share Price and the Downside Trigger Price by the relevant dilution adjustment. 
 If Texas Instruments Inc., after February 22, 2006, issues or makes a distribution to all holders of its common stock of the capital stock of one or
more of its subsidiaries, in each case in the form of Marketable Securities, and if the Trading Price on any Trading Day after February 22, 2006 up to and including the third Trading Day before the Stated Maturity Date (whether intra-day or at
the close of trading on any day) is less than or equal to the Downside Trigger Price, then, in each of these cases, each holder of the ELKS will receive at the Stated Maturity Date for each ELKS a combination of shares of Texas Instruments common
stock equal to the Exchange Ratio and a number of shares of such Texas Instruments subsidiaries’ capital stock equal to the Exchange Ratio times the number of shares of such subsidiaries’ capital stock distributed per share of Texas
Instruments common stock. Following the record date for an event described in this paragraph, the “Trading Price” will equal the Trading Price of Texas Instruments common stock, plus the Trading Price of such subsidiaries’ capital
stock times the number of shares of such subsidiaries’ capital stock distributed per share of Texas Instruments common stock. In the event a distribution pursuant to this paragraph occurs, following the record date for such distribution, the
adjustments described in “Dilution Adjustments” will also apply to such subsidiaries’ capital stock if any of the events described in “Dilution Adjustments” occurs with respect to such capital stock. 
 Each dilution adjustment will be effected as follows: 
  

	 	•	 	in the case of any dividend, distribution or issuance, at the opening of business on the Business Day next following the record date for determination of holders of Texas
Instruments common stock entitled to receive this dividend, distribution or issuance or, if the announcement of this dividend, distribution, or issuance is after this record date, at the time this dividend, distribution or issuance was announced by
Texas Instruments Inc., 

  

	 	•	 	in the case of any subdivision, split, combination or reclassification, on the effective date of the transaction, 

  

	 	•	 	in the case of any Excess Purchase Payment for which Texas Instruments Inc. announces, at or prior to the time it commences the relevant share repurchase, the repurchase price per
share for shares proposed to be repurchased, on the date of the announcement, and 

  

	 	•	 	in the case of any other Excess Purchase Payment, on the date that the holders of the repurchased shares become entitled to payment in respect thereof. 

  

 7 

 All dilution adjustments will be rounded upward or downward to the nearest 1/10,000th or, if there is not
a nearest 1/10,000th, to the next lower 1/10,000th. No adjustment in the Exchange Ratio will be required unless the adjustment would require an increase or decrease of at least one percent therein, provided, however, that any adjustments which by
reason of this sentence are not required to be made will be carried forward (on a percentage basis) and taken into account in any subsequent adjustment. If any announcement or declaration of a record date in respect of a dividend, distribution,
issuance or repurchase requiring an adjustment as described herein is subsequently canceled by Texas Instruments Inc., or this dividend, distribution, issuance or repurchase fails to receive requisite approvals or fails to occur for any other
reason, then, upon the cancellation, failure of approval or failure to occur, the Exchange Ratio, the Initial Share Price and the Downside Trigger Price will be further adjusted to the Exchange Ratio, the Initial Share Price and the Downside Trigger
Price which would then have been in effect had adjustment for the event not been made. If a Reorganization Event described below occurs after the occurrence of one or more events requiring an adjustment as described herein, the dilution adjustments
previously applied to the Exchange Ratio will not be rescinded but will be applied to the Reorganization Event as provided for below. 
 The
“Then-Current Market Price” of the common stock, for the purpose of applying any dilution adjustment, means the average Closing Price per share of common stock for the ten Trading Days immediately before this adjustment is effected
or, in the case of an adjustment effected at the opening of business on the Business Day next following a record date, immediately before the earlier of the date the adjustment is effected and the related Ex-Date. For purposes of determining the
Then-Current Market Price, the determination of the Closing Price by the calculation agent in the event of a Market Disruption Event, as described in the definition of Closing Price, may be deferred by the calculation agent for up to five
consecutive Trading Days on which a Market Disruption Event is occurring, but not past the Trading Day prior to the Stated Maturity Date. 
 The “Closing Price” of Texas Instruments common stock (or any other security for which a Closing Price must be determined) on any date of determination will be (1) if the common stock or other security is listed on a
national securities exchange on that date of determination, the closing sale price or, if no closing sale price is reported, the last reported sale price on that date on the principal U.S. exchange on which the common stock or other security is
listed or admitted to trading, (2) if the common stock or other security is not listed on a national securities exchange on that date of determination, or if the closing sale price or last reported sale price is not obtainable (even if the
common stock or other security is listed or admitted to trading on such exchange), and the common stock or other security is quoted on the Nasdaq National Market, the closing sale price or, if no closing sale price is reported, the last reported
sale price on that date as reported on the Nasdaq, and (3) if the common stock or other security is not quoted on the Nasdaq on that date of determination or, if the closing sale price or last reported sale price is not obtainable (even if the
common stock or other security is quoted on the Nasdaq), the last quoted bid price for the common stock or other security in the over-the-counter market on that date as reported by the OTC Bulletin Board, the National Quotation Bureau or a similar
organization. The determination of the Closing Price by the calculation agent in the event of a Market Disruption Event may be deferred by the calculation agent for up to five consecutive Trading Days on which a Market Disruption Event is occurring,
but not past the Trading Day 
  

 8 

 prior to the Stated Maturity Date. If no closing sale price or last reported sale price is available pursuant to clauses
(1), (2) or (3) above or if there is a Market Disruption Event, the Closing Price on any date of determination, unless deferred by the calculation agent as described in the preceding sentence, will be the arithmetic mean, as determined by
the calculation agent, of the bid prices of the common stock or other security obtained from as many dealers in such security (which may include Citigroup Global Markets Inc. or any of our other subsidiaries or affiliates), but not exceeding three
such dealers, as will make such bid prices available to the calculation agent. A security “quoted on the Nasdaq National Market” will include a security included for listing or quotation in any successor to such system and the term
“OTC Bulletin Board” will include any successor to such service. If, during any period of ten Trading Days used to calculate the Then-Current Market Price, there occurs any event requiring an adjustment to be effected as described herein,
then the Closing Price for each Trading Day in such period of ten Trading Days occurring prior to the day on which such adjustment is effected will be adjusted by being divided by the relevant dilution adjustment. 
 The “Ex-Date” relating to any dividend, distribution or issuance is the first date on which the shares of the common stock trade in the
regular way on their principal market without the right to receive this dividend, distribution or issuance. 
 In the event of any of the
following “Reorganization Events:” 
  

	 	•	 	any consolidation or merger of Texas Instruments Inc., or any surviving entity or subsequent surviving entity of Texas Instruments Inc., with or into another entity, other than a
merger or consolidation in which Texas Instruments Inc. is the continuing corporation and in which the common stock outstanding immediately before the merger or consolidation is not exchanged for cash, securities or other property of Texas
Instruments Inc. or another issuer, 

  

	 	•	 	any sale, transfer, lease or conveyance to another corporation of the property of Texas Instruments Inc. or any successor as an entirety or substantially as an entirety,

  

	 	•	 	any statutory exchange of securities of Texas Instruments Inc. or any successor of Texas Instruments Inc. with another issuer, other than in connection with a merger or acquisition,
or 

  

	 	•	 	any liquidation, dissolution or winding up of Texas Instruments Inc. or any successor of Texas Instruments Inc., 

 the Trading Price of Texas Instruments common stock on any Trading Day thereafter up to and including the third Trading Day before the Stated Maturity Date will be
deemed to be equal to the Transaction Value. 
 The “Transaction Value” will be the sum of: 
  

 9 

 (1) for any cash received in a Reorganization Event, the amount of cash received per share of common
stock, 
 (2) for any property other than cash or Marketable Securities received in a Reorganization Event, an amount equal to the market
value on the date the Reorganization Event is consummated of that property received per share of common stock, as determined by a nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination
will be final, and 
 (3) for any Marketable Securities received in a Reorganization Event, an amount equal to the Closing Price per share of
these Marketable Securities on the applicable Trading Day multiplied by the number of these Marketable Securities received for each share of common stock. 
 “Marketable Securities” are any perpetual equity securities or debt securities with a stated maturity after the Stated Maturity Date, in each case that are listed on a U.S. national securities
exchange or reported by the Nasdaq National Market. The number of shares of any equity securities constituting Marketable Securities included in the calculation of Transaction Value pursuant to clause (3) above will be adjusted if any event
occurs with respect to the Marketable Securities or the issuer of the Marketable Securities between the time of the Reorganization Event and the Stated Maturity Date that would have required an adjustment as described above, had it occurred with
respect to Texas Instruments common stock or Texas Instruments Inc. Adjustment for these subsequent events will be as nearly equivalent as practicable to the adjustments described above. 
 If Texas Instruments common stock has been subject to a Reorganization Event and the Trading Price of Texas Instruments common stock on any Trading Day
thereafter, up to and including the third Trading Day before the Stated Maturity Date, is less than or equal to the Downside Trigger Price, then each holder of the ELKS will have the right to receive per $10 principal amount of ELKS (i) cash in
an amount equal to the Exchange Ratio multiplied by the sum of clauses (1) and (2) in the definition of “Transaction Value” above and (ii) the number of Marketable Securities received for each share of stock in the
Reorganization Event multiplied by the Exchange Ratio. 
 GENERAL 
 This Note is one of a duly authorized issue of Debt Securities of the Company, issued and to be issued in one or more series under a Senior Debt
Indenture, dated as of June 1, 2005 (the “Indenture”), among the Company, the Guarantor, and The Bank of New York, as trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to
which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantor, the Trustee and the holders of the ELKS, and the terms upon which the ELKS are,
and are to be, authenticated and delivered. 
 In case an Event of Default with respect to the ELKS shall have occurred and be continuing,
the principal of the ELKS may be declared due and payable in the manner and with 
  

 10 

 the effect provided in the Indenture. In such case, the amount declared due and payable upon any acceleration permitted
by the Indenture will be determined by the calculation agent and will be equal to, with respect to this Note, the Maturity Payment calculated as though the Stated Maturity Date of this Note were the date of early repayment. In case of default at the
Stated Maturity Date of this Note, this Note shall bear interest, payable upon demand of the beneficial owners of this Note in accordance with the terms of the ELKS, from and after the Stated Maturity Date through the date when payment of such
amount has been made or duly provided for, at the rate of 5.5% per annum on the unpaid amount (or the cash equivalent of such unpaid amount) due. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company, the Guarantor and the rights of the holders of the Debt
Securities of each series to be affected under the Indenture at any time by the Company, the Guarantor and a majority in aggregate principal amount of the Debt Securities at the time Outstanding of each series affected thereby. The Indenture also
contains provisions permitting the holders of specified percentages in aggregate principal amount of the Debt Securities of any series at the time Outstanding, on behalf of the holders of all Debt Securities of such series, to waive compliance by
the Company and the Guarantor with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and
upon all future holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
 The holder of this Note may not enforce such holder’s rights pursuant to the Indenture or the Notes except as provided in the Indenture. No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, or, failing which, the Guarantor to pay the Maturity Payment with respect to this Note, and to pay any interest
on any overdue amount thereof at the time, place and rate, and in the coin or currency, herein prescribed. 
 All terms used in this Note
which are defined in the Indenture but not in this Note shall have the meanings assigned to them in the Indenture. 
 Unless the certificate
of authentication hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purposes. 
  

 11 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

  

			
	CITIGROUP FUNDING INC.
		
	By:	 	 /s/ Geoffrey S. Richards

	Name:	 	Geoffrey S. Richards
	Title:	 	Vice President and Assistant Treasurer

  

			
	Corporate Seal
	Attest:	 	
		
	By:	 	 /s/ Douglas C. Turnbull

	Name:	 	Douglas C. Turnbull
	Title:	 	Assistant Secretary
	
	Dated February 27, 2006
	
	CERTIFICATE OF AUTHENTICATION
		 	This is one of the Notes referred to in the within-mentioned Indenture.
	
	 The Bank of New York,
 as
Trustee

		
	By:	 	 /s/ Geovanni Barris

		 	Authorized Signatory

  

 12

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