Document:

Form of Restricted Stock Award Agreement

 EXHIBIT 10.1 
  
 FORM OF 
 RESTRICTED STOCK AWARD AGREEMENT 
 UNDER THE WET SEAL, INC. 
 2005 STOCK INCENTIVE PLAN 
  
 THIS RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”), made as of the          day of
                    , 200     (the “Grant Date”) by and between The Wet Seal, Inc. (the
“Company”) and                      (the “Participant”) who is a director who serves on the Board of
Directors of the Company (the “Board”), evidences the grant by the Company of a stock award of restricted Class A common stock of the Company (the “Restricted Stock”) to the Participant and the
Participant’s acceptance of the Restricted Stock in accordance with the provisions of The Wet Seal, Inc. 2005 Stock Incentive Plan (the “Plan”). The Company and the Participant agree as follows: 
  
 1. Basis for Award. The award of Restricted Stock is made
under the Plan pursuant to Section 9 thereof for service rendered to the Company by the Participant. 
  
 2. Stock Awarded. 
  
 (a) The Company hereby awards to the Participant, in the aggregate, an award of
                     shares of Class A common stock of the Company (the “Award”) which shall be subject to the
conditions and restrictions set forth in the Plan and this Agreement. 
  
 (b) Shares of Restricted Stock shall be evidenced by book-entry registration with the Company’s transfer agent, subject to such stop-transfer orders and other terms deemed appropriate by the Committee to reflect the restrictions
applicable to such Restricted Stock. Notwithstanding the foregoing, if any certificate is issued in respect of such Restricted Stock, at the sole discretion of the Committee, such certificate shall be registered in the name of the Participant and
shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to this Award, substantially in the following form: 
  
 “THE TRANSFERABILITY OF THIS CERTIFICATE AND THE CLASS A COMMON STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING
FORFEITURE) CONTAINED IN THE RESTRICTED STOCK AWARD AGREEMENT DATED AS OF                     , 200    , ENTERED
INTO BETWEEN THE REGISTERED OWNER AND THE WET SEAL, INC.” 
  
 If a
certificate is issued with respect to the Restricted Stock, the Committee may require that the certificate evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed and that the Participant deliver a
stock power, endorsed in blank, relating to the shares covered by this Award. At the expiration of the restrictions, the Company shall instruct the transfer agent to release the shares from the restrictions applicable to such Restricted Stock,
subject to the terms of the Plan and applicable law or, in the event that a certificate has been issued, redeliver to the Participant (or his legal representative, beneficiary or heir) share certificates for the shares deposited with it without any
legend except as otherwise provided by the Plan, this Agreement or applicable law. During the period that the Participant holds the Restricted Stock, the Participant shall have the right to receive dividends on and to vote 

  

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the Restricted Stock while it is subject to restriction, except as otherwise provided by the Plan. If the Restricted Stock is forfeited, in whole or in part,
the Participant will assign, transfer and deliver any evidence of the Restricted Stock to the Company and cooperate with the Company to reflect such forfeiture. By accepting this Award, the Participant acknowledges that the Company does not have an
adequate remedy in damages for the breach by the Participant of the conditions and covenants set forth in this Agreement and agrees that the Company is entitled to and may obtain an order or a decree of specific performance against the Participant
issued by any court having jurisdiction. 
  
 (c) Except as
provided in the Plan or this Agreement, the restrictions on the Restricted Stock are that prior to vesting as provided in Section 3 of this Agreement, the shares will be forfeited by the Participant and all of the Participant’s rights to
such stock shall immediately terminate without any payment or consideration by the Company, in the event of any sale, assignment, transfer, hypothecation, pledge or other alienation of such Restricted Stock made or attempted, whether voluntary or
involuntary, and if involuntary whether by process of law in any civil or criminal suit, action or proceeding, whether in the nature of an insolvency or bankruptcy proceeding or otherwise. Notwithstanding the foregoing, Participant may transfer the
Restricted Stock to his Immediate Family Members (or to corporations, trusts, partnerships or limited liability companies established for the Participant and/or such family members); provided, that, (i) such transfer is for no
consideration other than securities or other interests in such corporations, trusts, partnerships or limited liability companies, (ii) the Restricted Stock shall continue to be subject to the terms, conditions and restrictions herein and
(iii) the transfer is effected through procedures established by the Committee from time to time. 
  
 3. Vesting. The restrictions described in Section 2 of this Agreement will lapse with respect to 33-1/3% of the shares of Restricted
Stock (                     shares) on
                    , 200     and as to an additional 33-1/3% of the shares of Restricted Stock
(                     shares) on
                    , 200     and 33-1/3% of the shares of Restricted Stock
(                     shares) on
                    , 200    , provided the Participant is still a director serving on the Board of the Company on
each of those dates. Notwithstanding the foregoing, if the Participant’s service as a director on the Board ceases before a Change of Control occurs or before public announcement is made of a proposed Change of Control that has been approved by
the Board of the Company and thereafter occurs, (i) as a result of his death, (ii) due to his permanent and total disability (within the meaning of Section 22(e) of the Internal Revenue Code), (iii) due to his failure to be
nominated or reelected as a director serving on the Board, (iv) due to his resignation at any time after the policy limit under the Company’s directors’ and officers’ liability insurance policy has been reduced (including without
limitation, a reduction attributable to any claim paid or payable under the policy during the particular policy year) to an amount less than U.S.$35 million (being the amount of coverage in force on the date of this Agreement), or after the
insurance policy has been cancelled or has expired without having been replaced as of the effective date of cancellation or expiration with a substantially similar policy with a coverage limit of at least U.S.$35 million or (v) due to any other
reason acceptable to the Committee in its sole discretion (any of the foregoing, a “Termination Event”), all restrictions on any Restricted Stock that would have vested on the next
                     to occur after such Termination Event shall lapse and the shares of Restricted Stock that would have vested on the next
                     to occur after such Termination Event shall vest as of the date of the Termination Event, and all remaining unvested
Restricted Stock shall be forfeited. If the Participant ceases to serve as a director on the Board for a reason other than a Termination Event at any time prior to the 

  

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respective vesting dates, any shares of Restricted Stock that are unvested as of the date of such cessation of service shall automatically be forfeited. Upon
the occurrence of a Change in Control, or upon public announcement of a proposed Change of Control that has been approved by the Board of the Company and thereafter occurs, in either case while the Participant is serving as a director on the Board,
all restrictions on 100% of the then unvested Restricted Stock shall automatically lapse on the date the Change of Control shall be consummated and all of the Restricted Stock shall be vested. For purposes of this Agreement, the definition of Change
in Control shall have the same meaning as provided in the Plan; provided, that, a Change in Control shall also include (a) the consummation of a complete liquidation or dissolution of the Company or (b) a sale or other
disposition of all or substantially all of the assets of the Company or (c) a transaction or event that the Committee in its sole discretion determines to be a Change of Control for purposes of this Agreement. 
  
 4. Company; Participant. The term “Company” as
used in this Agreement with reference to service shall include the Company and its Affiliates, as appropriate. 
  
 (a) Whenever the word “Participant” is used in any provision of this Agreement under circumstances where the provision should logically
be construed to apply to the beneficiaries, the executors, the administrators, or the person or persons to whom the Restricted Stock may be transferred by will or by the laws of descent and distribution, the word “Participant” shall
be deemed to include such person or persons. 
  
 5.
Adjustments. The Award may be adjusted as provided for in Section 12 of the Plan. 
  
 6. Compliance with Law. Notwithstanding any of the provisions hereof, the Company will not be obligated to issue or transfer any Stock to
the Participant hereunder, if the exercise thereof or the issuance or transfer of such Stock shall constitute a violation by the Participant or the Company of any provisions of any law or regulation of any governmental authority. Any determination
in this connection by the Committee shall be final, binding and conclusive. The Company will take all appropriate steps, including, to the extent necessary, the filing of an appropriate registration statement at its sole expense, such that
Participant may sell the Stock upon the lapse of the restrictions set forth herein, subject to the Company’s insider trading policies. 
  
 7. No Right to Continued Service. Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continue as a
director or shall interfere with or restrict in any way the rights of the Company’s stockholders, which are hereby expressly reserved, to remove the Participant as a director at any time for any reason whatsoever, with or without cause. Except
as provided herein, Participant acknowledges and agrees that the continued vesting of the Restricted Stock granted hereunder is premised upon his provision of future services with the Company and the vesting of such Restricted Stock shall not
accelerate upon his termination of service for any reason except as specifically provided herein. 
  
 8. Representations and Warranties of Participant. The Participant represents and warrants to the Company that: 
  
 (a) Agrees to Terms of the Plan. The
Participant has received a copy of the Plan and has read and understands the terms of the Plan and this Agreement, and agrees to be 

  

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bound by their terms and conditions. In the event of an express conflict or inconsistency between the terms and provisions of the Plan and the provisions of
this Agreement, the Plan shall govern and control. All capitalized terms not defined herein shall have the meaning ascribed to them as set forth in the Plan. The Participant acknowledges that there may be adverse tax consequences upon the vesting of
the Restricted Stock or disposition of the shares of Stock once vested, and that the Participant should consult a tax adviser prior to such time. 
  
 (b) Cooperation. The Participant agrees to sign such additional documentation as may reasonably be required from time to time by the
Company. 
  
 9. Taxes. The Participant agrees that,
to the extent required by law, no later than the date as of which the restrictions on the Restricted Stock shall lapse with respect to all or any of the Stock covered by this Agreement, the Participant shall pay to the Company (in cash, or to the
extent permitted by the Committee, Stock held by the Participant for at least six (6) months whose Fair Market Value on the date the Restricted Stock vests is equal to the amount of the Participant’s tax withholding liability) any federal,
state or local taxes of any kind required by law to be withheld, if any, with respect to the Restricted Stock for which the restrictions shall lapse. The Participant and the Company acknowledge that under current law, the Company is not required to
withhold from income earned by Non-Employee Directors of the Company. 
  
 10. Notice. Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by
it in a notice mailed or delivered to the other party as herein provided; provided, that, unless and until some other address be so designated, all notices or communications by the Participant to the Company shall be mailed or
delivered to the Company at its principal executive office, and all notices or communications by the Company to the Participant may be given to the Participant personally or may be mailed to him at his address as recorded in the records of the
Company. Notwithstanding the foregoing, at such time as the Company institutes a policy for delivery of notice by e-mail, notice may be given in accordance with such policy. 
  
 11. Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State
of California without regard to its conflict of law principles. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above
written. 
  

			
	 THE WET SEAL, INC.

		
	 By:
	 	

	 	 	 Name:

	 	 	 Title:

	
	 PARTICIPANT

	
	

	 Name:

  

 5Form of Note for Citigroup Funding Inc

 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 76 7	  	REPRESENTED $68,400,000
	ISIN: US17308C7671	  	representing 6,840,000 ELKS
	 	  	($10 per ELKS)

  
 CITIGROUP FUNDING INC.

 9.25% Equity Linked Securities (ELKS®) Based Upon the Common Stock of 
 Best Buy
Co., Inc. Due December 7, 2006 
  
 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 December 7, 2006 (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 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 Best Buy
Co., Inc. (“Best Buy”). 
  
 This Note is one of
the series of 9.25% Equity Linked Securities Based Upon the Common Stock of Best Buy Co., Inc. Due December 7, 2006 (the “ELKS”). 

 COUPON 
  
 A coupon of $0.4831 per ELKS will be paid in cash on June 7, 2006 and a coupon of $0.4625 per ELKS will be paid in cash
on December 7, 2006. The June 7, 2006 coupon will be composed of $0.2416 of interest and a partial payment of an option premium in the amount of $0.2415. The December 7, 2006 coupon will be composed of $0.2313 of interest and a
partial payment of an option premium in the amount of $0.2312. Coupon payments will be payable to the persons in whose names the ELKS are registered at the close of business on the fifth 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 4.6265% per annum from November 29, 2005 or from the most recent Coupon Payment Date to which the interest portion of the coupon has been paid or provided for until maturity. 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 Best Buy common stock equal to the Exchange Ratio, if the Trading Price of Best Buy common stock on any Trading Day after November 21, 2005 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 $35.29 (approximately 75% 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 Best Buy 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 Best Buy common stock, and any cash in lieu of a fractional share, to be delivered at the Stated Maturity Date to the holder of this Note will be calculated based on the aggregate number of ELKS held by
such holder. 
  

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 The “Initial Share Price” equals $47.05, the price per share of Best Buy common stock at
the market close on November 21, 2005. 
  
 The
“Exchange Ratio” equals 0.21254. 
  
 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 Best Buy 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 Best Buy 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 Best Buy 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, 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 
  

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 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 Best Buy Co., Inc., after the closing date of the offering of the ELKS, 
  
 (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 Best Buy Co., 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 Best Buy Co., 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 Best Buy Co., Inc., after the closing date, 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 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 
  

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 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 Best Buy Co., Inc., after the closing date, 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 Best Buy 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
Citigroup Funding, 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 Best Buy 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 Best Buy common stock and, if the Trading Price
of Best Buy 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 approximately 75% of the Initial Share Price, each holder of the ELKS will have the right to
receive at maturity cash in an amount per ELKS equal to the Exchange Ratio multiplied by such fair market value. 
  

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 If Best Buy Co., Inc., after the closing date, 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 Best Buy 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 Best Buy Co., Inc. with respect to one share of common stock acquired in a tender offer or exchange offer by Best Buy Co., 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 Best Buy 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 Best Buy common stock and, if the Trading Price of Best Buy 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 $35.29
(approximately 75% of the Initial Share Price), each holder of the ELKS will have the right to receive at maturity cash in an amount per ELKS equal to the Exchange Ratio multiplied by such sum. 
  

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 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 Best Buy Co., Inc., after the closing date, 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 at any time after the date of this prospectus supplement up to and including the
third Trading Day before maturity (whether intra-day or at the close of trading on any day) is less than or equal to $35.29 (approximately 75% of the Initial Share Price), then, in each of these cases, each holder of the ELKS will receive at
maturity for each ELKS a combination of shares of Best Buy common stock equal to the Exchange Ratio and a number of shares of such Best Buy subsidiaries’ capital stock equal to the Exchange Ratio times the number of shares of such
subsidiaries’ capital stock distributed per share of Best Buy common stock. Following the record date for an event described in this paragraph, the “Trading Price” will equal the Trading Price of Best Buy 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 Best Buy common stock. In the event a distribution pursuant to this paragraph occurs, following the
record date for such distribution, the adjustment 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 Best Buy 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 Best Buy Co., 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 Best Buy Co., 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. 

  
 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 
  

 7 

 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 Best Buy Co., 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 Best Buy 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 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 
  

 8 

 bid prices of the common stock or other security 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. 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 Best Buy Co., Inc., or any surviving entity or subsequent surviving entity of Best Buy Co., Inc., with or into another entity, other than a merger or
consolidation in which Best Buy Co., 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 Best Buy Co., Inc. or another
issuer, 

  

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

  

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

  

	 	•	 	any liquidation, dissolution or winding up of Best Buy Co., Inc. or any successor of Best Buy Co., Inc., 

  
 the Trading Price of Best Buy 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: 
  
 (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 
  

 9 

 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 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 maturity that would have required an adjustment as described above, had it occurred with respect to Best Buy common stock or Best Buy Co., Inc. Adjustment for these subsequent events will be as nearly equivalent as
practicable to the adjustments described above. 
  
 If Best Buy
common stock has been subject to a Reorganization Event and the Trading Price of Best Buy 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 $35.29
(approximately 75% of the Initial Share 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 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 Maturity 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 Maturity through the date when 
  

 10 

 payment of such amount has been made or duly provided for, at the rate of 5.125% 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 November 29, 2005
	
	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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