Document:

exv4w1

Exhibit 4.1

Execution Version

 

WARRANT AGREEMENT

Dated as of

January 25, 2011

between

CITIGROUP INC.

and

COMPUTERSHARE INC.

and

COMPUTERSHARE TRUST COMPANY, N.A.

as Warrant Agent

 

Warrants for

Common Stock

 

 

 

 

	Table of Contents
	 	 	 	 
	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Other Definitions
	 	 	3	 
	Section 1.03. Rules of Construction
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	WARRANTS
	 	 	 	 
	 
	 	 	 	 
	Section 2.01. Form
	 	 	3	 
	Section 2.02. Execution and Countersignature
	 	 	5	 
	Section 2.03. Registry
	 	 	5	 
	Section 2.04. Transfer and Exchange
	 	 	6	 
	Section 2.05. Definitive Warrants
	 	 	8	 
	Section 2.06. Replacement Certificates
	 	 	9	 
	Section 2.07. Outstanding Warrants
	 	 	9	 
	Section 2.08. Cancellation
	 	 	9	 
	Section 2.09. CUSIP Numbers
	 	 	10	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	EXERCISE TERMS
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. Exercise
	 	 	10	 
	Section 3.02. Manner of Exercise and Issuance of Shares
	 	 	10	 
	Section 3.03. Covenant to Make Stock Certificates Available
	 	 	10	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	ANTIDILUTION PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	Section 4.01. Antidilution Adjustments; Notice of Adjustment
	 	 	11	 
	Section 4.02. Adjustment to Warrant Certificate
	 	 	11	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	WARRANT AGENT
	 	 	 	 
	 
	 	 	 	 
	Section 5.01. Appointment of Warrant Agent
	 	 	11	 
	Section 5.02. Rights and Duties of Warrant Agent
	 	 	11	 
	Section 5.03. Individual Rights of Warrant Agent
	 	 	12	 
	Section 5.04. Warrant Agent’s Disclaimer
	 	 	13	 
	Section 5.05. Compensation and Indemnity
	 	 	13	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 5.06. Successor Warrant Agent
	 	 	14	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	Section 6.01. Persons Benefitting
	 	 	15	 
	Section 6.02. Amendment
	 	 	16	 
	Section 6.03. Notices
	 	 	16	 
	Section 6.04. Governing Law
	 	 	17	 
	Section 6.05. Successors
	 	 	17	 
	Section 6.06. Multiple Originals
	 	 	17	 
	Section 6.07. Inspection of Agreement
	 	 	18	 
	Section 6.08. Table of Contents
	 	 	18	 
	Section 6.09. Severability
	 	 	18	 
	 
	 	 	 	 
	EXHIBIT A Form of Warrant
	 	 	 	 

ii

 

          WARRANT AGREEMENT dated as of January 25, 2011 (this “Agreement”), between
CITIGROUP INC. (the “Company”) and Computershare Inc., a Delaware corporation and its
wholly-owned subsidiary Computershare Trust Company, N.A., a federally chartered, limited purpose
trust company (collectively, the “Warrant Agent” or individually, “Computershare” and the
“Trust Company,” respectively).

          The Company has issued the warrants described herein (each, a “Warrant” and
collectively, the “Warrants”) to the U.S. Department of the Treasury (“Treasury”)
in two issuances: (i) warrants to purchase 188,501,414 shares of Common Stock were issued to
Treasury pursuant to a Securities Purchase Agreement dated December 31, 2008 between the Company
and Treasury and (ii) warrants to purchase 66,531,728 shares of Common Stock were issued to
Treasury pursuant to a Securities Purchase Agreement dated January 15, 2009 among the Company,
Treasury and the Federal Deposit Insurance Corporation. Treasury desires to sell all or a portion
of the Warrants at any time or from time to time.

          Each Warrant entitles the registered holder thereof (the “Holder”) to purchase one
share of Common Stock, subject to the provisions of this Agreement and the relevant Warrant
Certificate. Each Warrant Certificate (including any Global Warrant) shall evidence such number of
Warrants as is set forth therein, subject to adjustment pursuant to the provisions of the Warrant
Certificate.

          The Warrants and the shares of Common Stock issuable upon exercise of the Warrants will be
freely transferable by Holders that are not Affiliates of the Company. The Company desires the
Warrant Agent to act on behalf of the Company in connection with the registration, transfer,
exchange, redemption, exercise and cancellation of the Warrants as provided herein and the Warrant
Agent is willing to so act.

          Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of Warrants:

ARTICLE I

DEFINITIONS

          Section 1.01. Definitions.

          “Affiliate” means, with respect to any Person, any Person directly or indirectly
controlling, controlled by or under common control with, such other Person. For purposes of this
definition, “control” (including, with correlative meanings, the terms “controlled by” and “under
common control with”) when used with respect to any Person, means the possession, directly or
indirectly, of the power to cause the direction of management and/or policies of such Person,
whether through the ownership of voting securities by contract or otherwise.

          “Agent Members” means the securities brokers and dealers, banks and trust companies,
clearing organizations and certain other organizations that are participants in the Depositary’s
system.

1

 

          “business day” means any day except Saturday, Sunday and (i) at any time when the
Warrants are listed on the New York Stock Exchange, any day on which the New York Stock Exchange is
authorized or required by law or other governmental actions to close or (ii) at any time when the
Warrants are not listed on the New York Stock Exchange, any day on which banking institutions in
the State of New York are authorized or required by law or other governmental actions to close.

          “Common Stock” means the common stock, par value $0.01 per share, of the Company.

          “Definitive Warrant” means a Warrant Certificate in definitive form that is not
deposited with the Depositary or with the Warrant Agent as custodian for the Depositary.

          “Depositary” means The Depository Trust Company, its nominees and their respective
successors.

          “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, or any
successor statute, and the rules and regulations promulgated thereunder.

          “Exercise Price” has the meaning set forth in the form of Warrant Certificate attached
as Exhibit A hereto.

          “Expiration Time” has the meaning set forth in the form of Warrant Certificate
attached as Exhibit A hereto.

          “Officer” means the Chief Executive Officer, the President, the Chief Financial
Officer, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant
Secretary of the Company.

          “Officers’ Certificate” means a certificate signed by two Officers.

          “Opinion of Counsel” means a written opinion from legal counsel who is reasonably
acceptable to the Warrant Agent. Such counsel may be an employee of or counsel to the Company or
the Warrant Agent.

          “Person” means an individual, corporation, partnership, joint venture, association,
joint-stock company, limited liability company, limited liability partnership, trust,
unincorporated organization, or government or any agency or political subdivision thereof or any
other entity.

          “Shares” has the meaning set forth in the form of Warrant Certificate attached as
Exhibit A hereto.

          “Transfer Agent” has the meaning set forth in the form of Warrant Certificate attached
as Exhibit A hereto.

2

 

          “Warrant Certificate” means any fully registered certificate (including a Global
Warrant) issued by the Company and authenticated by the Warrant Agent under this Agreement
evidencing Warrants, in the form attached as Exhibit A hereto.

          “Warrant Share Number” has the meaning set forth in the form of Warrant Certificate
attached as Exhibit A hereto.

          Section 1.02. Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Agreement”

	 	Recitals

	“Company”

	 	Recitals

	“Global Warrant”

	 	 	2.01	(a)
	“Holders”

	 	Recitals

	“Registry”

	 	 	2.03	 
	“Warrant”

	 	Recitals

	“Warrant Agent”

	 	Recitals

          Section 1.03. Rules of Construction.

          Unless the text otherwise requires:

	 	(i)	 	a defined term has the meaning assigned to it;
	 
	 	(ii)	 	an accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect on the date hereof;
	 
	 	(iii)	 	“or” is not exclusive;
	 
	 	(iv)	 	“including” means including, without limitation; and
	 
	 	(v)	 	words in the singular include the plural and words in the plural include the
singular.

ARTICLE II

WARRANTS

          Section 2.01. Form.

          (a) Global Warrants. Except as provided in Section 2.04 or 2.05, Warrants issued upon
any transfer or exchange thereof shall be issued in the form of one or more permanent

3

 

global Warrants in fully registered form with the global securities legend set forth in Exhibit A hereto
(each, a “Global Warrant”), which shall be deposited on behalf of the Company with the
Warrant Agent, as custodian for the Depositary (or with such other custodian as the Depositary may
direct), and registered in the name of the Depositary or a nominee of the Depositary, duly executed
by the Company and countersigned by the Warrant Agent as hereinafter provided.

          (b) Book-Entry Provisions. This Section 2.01(b) shall apply only to a Global Warrant
deposited with or on behalf of the Depositary.

          (i) The Company shall execute and the Warrant Agent shall, in accordance with Section
2.02, countersign, by either manual or facsimile signature, and deliver one or more Global
Warrants that (A) shall be registered in the name of the Depositary or the nominee of the
Depositary and (B) shall be delivered by the Warrant Agent to the Depositary or pursuant to
the Depositary’s instructions or held by the Warrant Agent as custodian for the Depositary.
Each Global Warrant shall be dated the date of its countersignature by the Warrant Agent.

          (ii) Agent Members shall have no rights under this Agreement with respect to any Global
Warrant held on their behalf by the Depositary or by the Warrant Agent as the custodian of
the Depositary or under such Global Warrant except to the extent set forth herein or in a
Warrant Certificate, and the Depositary may be treated by the Company, the Warrant Agent and
any agent of the Company or the Warrant Agent as the absolute owner of such Global Warrant
for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall (A)
prevent the Company, the Warrant Agent or any agent of the Company or the Warrant Agent from
giving effect to any written certification, proxy or other authorization furnished by the
Depositary or (B) impair, as between the Depositary and the Agent Members, the operation of
customary practices of the Depositary governing the exercise of the rights of a holder of a
beneficial interest in any Warrant. The rights of beneficial owners in a Global Warrant
shall be exercised through the Depositary subject to the applicable procedures of the
Depositary except to the extent set forth herein or in a Warrant Certificate.

          (c) Definitive Securities. Except as provided in Section 2.04 or 2.05, owners of
beneficial interests in Global Warrants will not be entitled to receive physical delivery of
Definitive Warrants.

          (d) Warrant Certificates. Warrant Certificates shall be in substantially the form
attached as Exhibit A hereto and shall be typed, printed, lithographed or engraved or produced by
any combination of such methods or produced in any other manner permitted by the rules of any
securities exchange on which the Warrants may be listed, all as determined by the Officer or
Officers executing such Warrant Certificates, as evidenced by their execution thereof. Any Warrant
Certificate shall have such insertions as are appropriate or required or permitted by this
Agreement and may have such letters, numbers or other marks of identification and such legends and
endorsements, stamped, printed, lithographed or engraved thereon, (i) as the Company may deem
appropriate and as are not inconsistent with the provisions of this Agreement, (ii) such as
may be required to comply with this Agreement, any law or any rule of any securities exchange

4

 

on which the Warrants may be listed, and (iii) such as may be necessary to conform to customary
usage.

          Section 2.02. Execution and Countersignature.

          At least one Officer shall sign the Warrant Certificates for the Company by manual or
facsimile signature.

          If an Officer whose signature is on a Warrant Certificate no longer holds that office at the
time the Warrant Agent countersigns the Warrant Certificate, the Warrants evidenced by such Warrant
Certificate shall be valid nevertheless.

          The Warrant Agent shall initially countersign, by either manual or facsimile signature, and
deliver Warrant Certificates entitling the Holders thereof to purchase in the aggregate not more
than 255,033,142 shares of Common Stock (subject to adjustment as provided in such Warrant
Certificates) upon a written order of the Company signed by one Officer of the Company. Each
Warrant Certificate shall be dated the date of its countersignature by the Warrant Agent.

          At any time and from time to time after the execution of this Agreement, the Warrant Agent
shall upon receipt of a written order of the Company signed by an Officer of the Company
countersign, by either manual or facsimile signature, for issue a Warrant Certificate evidencing
the number of Warrants specified in such order; provided, however, that the Warrant
Agent shall be entitled to receive an Officers’ Certificate and an Opinion of Counsel of the
Company that it may reasonably request in connection with such countersignature of Warrants. Such
order shall specify the number of Warrants to be evidenced on the Warrant Certificate to be
countersigned, the date on which such Warrant Certificate is to be countersigned and the number of
Warrants then authorized.

          The Warrants evidenced by a Warrant Certificate shall not be valid until an authorized
signatory of the Warrant Agent countersigns the Warrant Certificate either manually or by facsimile
signature. Such signature shall be solely for the purpose of authenticating the Warrant Certificate
and shall be conclusive evidence that the Warrant Certificate so countersigned has been duly
authenticated and issued under this Agreement.

          Section 2.03. Registry.

          The Warrants shall be issued in registered form only. The Warrant Agent shall keep a registry
(the “Registry”) of the Warrant Certificates and of their transfer and exchange. The
Registry shall show the names and addresses of the respective Holders and the date and number of
Warrants evidenced on the face of each of the Warrant Certificates. The Holder of any Global
Warrant will be the Depositary or a nominee of the Depositary in whose name the Global Warrant is
registered. The Warrant holdings of Agent Members will be recorded on the books of the Depositary.
The beneficial interests in the Global Warrant held by customers of Agent Members will be
reflected on the books and records of such Agent Members and will not be known to the Warrant
Agent, the Company or to the Depositary.

5

 

          Except as otherwise provided herein or in the Warrant Certificate, the Company and the Warrant
Agent may deem and treat any Person in whose name a Warrant Certificate is registered in the
Registry as the absolute owner of such Warrant Certificate for all purposes whatsoever and neither
the Company nor the Warrant Agent shall be affected by notice to the contrary.

          Section 2.04. Transfer and Exchange.

          (a) Transfer and Exchange of Global Warrants.

          (i) Registration of the transfer and exchange of Global Warrants or beneficial
interests therein shall be effected through the book-entry system maintained by the
Depositary, in accordance with this Agreement and the Warrant Certificates and the
procedures of the Depositary therefor. A transferor of a beneficial interest in a Global
Warrant (or the relevant Agent Member on behalf of such transferor) shall deliver to the
Warrant Agent (x) a written order given in accordance with the Depositary’s procedures
containing information regarding the account of the Agent Member to be credited with a
beneficial interest in the Global Warrant and (y) a written instruction of transfer in form
satisfactory to the Warrant Agent, duly executed by the Holder thereof or by his attorney,
duly authorized in writing. Additionally, prior to the Holder registering the transfer or
making the exchange as requested, the requirements for such transfer or exchange to be
issued in a name other than the registered Holder shall be met. Such requirements include,
inter alia, a signature guarantee from an eligible guarantor institution participating in a
signature guarantee program approved by the Securities Transfer Association, and any other
reasonable evidence of authority that may be required by the Warrant Agent. Upon
satisfaction of the conditions in this Clause (i), the Warrant Agent shall, in accordance
with such instructions, instruct the Depositary to credit to the account of the Agent Member
specified in such instructions a beneficial interest in the Global Warrant and to debit the
account of the Agent Member making the transfer of the beneficial interest in the Warrant
being transferred.

          (ii) Notwithstanding any other provisions of this Agreement (other than the provisions
set forth in Section 2.05), a Global Warrant may only be transferred as a whole, and not in
part, and only by (i) the Depositary, to a nominee of the Depositary, (ii) a nominee of the
Depositary, to the Depositary or another nominee of the Depositary, or (iii) the Depositary
or any such nominee to a successor Depositary or its nominee.

          (iii) In the event that a Global Warrant is exchanged and transferred for Definitive
Warrants pursuant to Section 2.05, such Warrants may be exchanged only in accordance with
such procedures as are substantially consistent with the provisions of this Section 2.04 and
the requirements of any Warrant Certificate and such other procedures as may from time to
time be adopted by the Company that are not inconsistent with the terms of this Agreement or
of any Warrant Certificate.

          (b) Cancellation or Adjustment of Global Warrant. At such time as all beneficial
interests in a Global Warrant have been exchanged for Definitive Warrants, redeemed,

6

 

repurchased or canceled, such Global Warrant shall be returned to the Depositary for
cancellation or retained and canceled by the Warrant Agent. At any time prior to such cancellation,
if any beneficial interest in a Global Warrant is transferred or exchanged for Definitive Warrants,
redeemed, repurchased or canceled, the number of Warrants represented by such Global Warrant shall
be reduced and an adjustment shall be made on the books and records of the Warrant Agent to reflect
such reduction.

          (c) Obligations with Respect to Transfers and Exchanges of Warrants.

          (i) To permit registrations of transfers and exchanges, the Company shall execute and
the Warrant Agent shall countersign, by either manual or facsimile signature, Global
Warrants and Definitive Warrants as required pursuant to the provisions of Section 2.02 and
this Section 2.04.

          (ii) No service charge shall be made to a Holder for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any transfer tax,
assessments, or similar governmental charge payable in connection therewith.

          (iii) All Warrants issued upon any registration of transfer or exchange pursuant to the
terms of this Agreement shall be the valid obligations of the Company, entitled to the same
benefits under this Agreement as the Warrants surrendered upon such registration for
transfer or exchange.

          (d) No Obligation of the Warrant Agent.

          (i) The Warrant Agent shall have no responsibility or obligation to any beneficial
owner of a Global Warrant, any Agent Member or other Person with respect to the accuracy of
the records of the Depositary or its nominee or of any participant or member thereof, with
respect to any ownership interest in the Warrants or with respect to the delivery to any
Agent Member, beneficial owner or other Person (other than the Depositary) of any notice or
the payment of any amount, under or with respect to such Warrants. All notices and
communications to be given to the Holders and all payments to be made to Holders under the
Warrants shall be given or made only to or upon the order of the registered Holders (which
shall be the Depositary or its nominee in the case of a Global Warrant). The rights of
beneficial owners in any Global Warrant shall be exercised only through the Depositary
subject to the applicable rules and procedures of the Depositary. The Warrant Agent may
rely and shall be fully protected in relying upon information furnished by the Depositary
with respect to its members, participants and any beneficial owners.

          (ii) The Warrant Agent shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer imposed under this Agreement or
under applicable law with respect to any transfer of any interest in any Warrant (including
any transfer between or among the Agent Members or beneficial owners in any Global Warrant)
other than to require delivery of such certificates and other documentation or evidence as
are expressly required by, and to do so if and when

7

 

expressly required by, the terms of this Agreement, and to examine the same to
determine substantial compliance as to form with the express requirements hereof.

          Section 2.05. Definitive Warrants.

          (a) Beneficial interests in a Global Warrant deposited with the Depositary or with the Warrant
Agent as custodian for the Depositary pursuant to Section 2.01 shall be transferred to each
beneficial owner thereof in the form of Definitive Warrants evidencing a number of Warrants
equivalent to such owner’s beneficial interest in such Global Warrant, in exchange for such Global
Warrant, only if such transfer complies with Section 2.04 and (i) the Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for such Global Warrant or if at
any time the Depositary ceases to be a “clearing agency” registered under the Exchange Act and, in
each such case, a successor Depositary is not appointed by the Company within 90 days of such
notice, (ii) the Company, in its sole discretion, notifies the Warrant Agent in writing that it
elects to cause the issuance of Definitive Warrants under this Agreement, or (iii) the Company
shall be adjudged a bankrupt or insolvent or makes an assignment for the benefit of its creditors
or institutes proceedings to be adjudicated a bankrupt or shall consent to the filing of a
bankruptcy proceeding against it, or shall file a petition or answer or consent seeking
reorganization under Federal bankruptcy laws or any other similar applicable Federal or State law,
or shall consent to the filing of any such petition, or shall consent to the appointment of a
receiver or custodian of all or any substantial part of its property, or shall admit in writing its
inability to pay or meet its debts as they mature, or if a receiver or custodian of it or all or
any substantial part of its property shall be appointed, or if a public officer shall have taken
charge or control of the Company or of its property or affairs, for the purpose of rehabilitation,
conservation or liquidation.

          (b) Any Global Warrant that is transferable to the beneficial owners thereof in the
form of Definitive Warrants pursuant to this Section 2.05 shall be surrendered by the Depositary to
the Warrant Agent, to be so transferred, in whole or from time to time in part, without charge, and
the Warrant Agent shall countersign, by either manual or facsimile signature, and deliver to each
beneficial owner in the name of such beneficial owner, upon such transfer of each portion of such
Global Warrant, Definitive Warrants evidencing a number of Warrants equivalent to such beneficial
owner’s beneficial interest in the Global Warrant. The Warrant Agent shall register such transfer
in the Registry, and upon such transfer the surrendered Global Warrant shall be cancelled by the
Warrant Agent.

          (c) All Definitive Warrants issued upon registration of transfer pursuant to this Section 2.05
shall be the valid obligations of the Company, evidencing the same obligations of the Company and
entitled to the same benefits under this Agreement and the Global Warrant surrendered for
registration of such transfer.

          (d) Subject to the provisions of Section 2.05(b), the registered Holder of a Global Warrant
may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action that a Holder is entitled to take under
this Agreement or the Warrants.

8

 

          (e) In the event of the occurrence of any of the events specified in Section 2.05(a), the
Company will promptly make available to the Warrant Agent a reasonable supply of Definitive
Warrants in definitive, fully registered form.

          (f) Neither the Company nor the Warrant Agent will be liable or responsible for any
registration or transfer of any Warrants that are registered or to be registered in the name of a
fiduciary or the nominee of a fiduciary.

          Section 2.06. Replacement Certificates.

          If a mutilated Warrant Certificate is surrendered to the Warrant Agent or if the Holder of a
Warrant Certificate provides proof reasonably satisfactory to the Company and the Warrant Agent
that the Warrant Certificate has been lost, destroyed or wrongfully taken, the Company shall issue
and the Warrant Agent shall countersign, by either manual or facsimile signature, a replacement
Warrant Certificate of like tenor and representing an equivalent number of Warrants, if the
reasonable requirements of the Warrant Agent and of Section 8-405 of the Uniform Commercial Code as
in effect in the State of New York are met. If required by the Warrant Agent or the Company, such
Holder shall furnish an indemnity bond sufficient in the reasonable judgment of the Company and the
Warrant Agent to protect the Company and the Warrant Agent from any loss that either of them may
suffer if a Warrant Certificate is replaced. The Company and the Warrant Agent may charge the
Holder for their expenses in replacing a Warrant Certificate. Every replacement Warrant
Certificate evidences an additional obligation of the Company.

          Section 2.07. Outstanding Warrants.

          The Warrants outstanding at any time are all Warrants evidenced on all Warrant Certificates
authenticated by the Warrant Agent except for those canceled by it and those delivered to it for
cancellation. A Warrant ceases to be outstanding if the Company or an Affiliate of the Company
holds the Warrant.

          If a Warrant Certificate is replaced pursuant to Section 2.06, the Warrants evidenced thereby
cease to be outstanding unless the Warrant Agent and the Company receive proof satisfactory to them
that the replaced Warrant Certificate is held by a bona fide purchaser.

          Section 2.08. Cancellation.

          In the event the Company shall purchase or otherwise acquire Definitive Warrants, the same
shall thereupon be delivered to the Warrant Agent for cancellation.

          The Warrant Agent and no one else shall cancel and destroy all Warrant Certificates
surrendered for registration of transfer, exchange, replacement, exercise or cancellation and
deliver a certificate of such destruction to the Company unless the Company directs the Warrant
Agent to deliver canceled Warrant Certificates to the Company. The Company may not issue new
Warrant Certificates to replace Warrant Certificates to the extent they evidence Warrants that have
been exercised or Warrants that the Company has purchased or otherwise acquired.

9

 

          Section 2.09. CUSIP Numbers.

          The Company in issuing the Warrants may use “CUSIP” numbers (if then generally in use) and, if
so, the Warrant Agent shall use “CUSIP” numbers in notices as a convenience to Holders;
provided, however, that any such notice may state that no representation is made as
to the correctness of such numbers either as printed on the Warrant Certificates or as contained in
any notice and that reliance may be placed only on the other identification numbers printed on the
Warrant Certificates.

ARTICLE III

EXERCISE TERMS

          Section 3.01. Exercise.

          The Exercise Price of each Warrant, the Warrant Share Number, the number of Warrants evidenced
by any Warrant Certificate and the Expiration Time of each Warrant shall be set forth in the
related Warrant Certificate. The Exercise Price of each Warrant and the Warrant Share Number are
subject to adjustment pursuant to the terms set forth in the Warrant Certificate.

          Section 3.02. Manner of Exercise and Issuance of Shares.

          Warrants may be exercised in the manner set forth in Section 3 of the Warrant Certificate, and
upon any such exercise, Shares shall be issued in the manner set forth in Section 4 of the Warrant
Certificate.

          Section 3.03. Covenant to Make Stock Certificates Available.

          (a) The Warrant Agent is hereby authorized to requisition from time to time from any stock
transfer agents of the Company stock certificates required to honor outstanding Warrants upon
exercise thereof in accordance with the terms of this Agreement, and the Company agrees to
authorize and direct such transfer agents to comply with all such requests of the Warrant Agent.
The Company shall supply such transfer agents with duly executed stock certificates for such
purposes and shall provide or otherwise make available any cash or scrip that may be payable upon
exercise of Warrants as provided herein and in each Warrant Certificate.

          (b) The Warrant Agent is hereby authorized to create a special account for the reserve of
shares of Common Stock to be issued upon exercise of the Warrants.

          (c) In connection with the shares of Common Stock to be issued upon exercise, the Company
shall, if so required by the Warrant Agent, provide an opinion of counsel, stating that all such
shares, when issued, will be:

          (i) registered, or subject to a valid exemption from registration, under the Securities
Act of 1933, as amended, and all material and necessary State securities law filings will
have been made with respect to such shares; and

10

 

          (ii) validly issued, fully paid and non-assessable.

ARTICLE IV

ANTIDILUTION PROVISIONS

          Section 4.01. Antidilution Adjustments; Notice of Adjustment.

          The Exercise Price and the Warrant Share Number shall be subject to adjustment from time to
time as provided in Section 12 of the Warrant Certificate. Whenever the Exercise Price or the
Warrant Share Number is so adjusted or is proposed to be adjusted as provided in Section 12 of the
Warrant Certificate, the Company shall deliver to the Warrant Agent the notices or statements, and
shall cause a copy of such notices or statements to be sent or communicated to each Holder pursuant
to Section 6.03, as provided in Sections 12(H) and (I) of the Warrant Certificate.

          Section 4.02. Adjustment to Warrant Certificate.

          The form of Warrant Certificate need not be changed because of any adjustment made pursuant to
the Warrant Certificate, and Warrant Certificates issued after such adjustment may state the same
Exercise Price and the same Warrant Share Number as are stated in the Warrant Certificates
initially issued pursuant to this Agreement. The Company, however, may at any time in its sole
discretion make any change in the form of Warrant Certificate that it may deem appropriate to give
effect to such adjustments and that does not affect the substance of the Warrant Certificate, and
any Warrant Certificate thereafter issued or countersigned, whether in exchange or substitution for
an outstanding Warrant Certificate or otherwise, may be in the form as so changed.

ARTICLE V

WARRANT AGENT

          Section 5.01. Appointment of Warrant Agent.

          The Company hereby appoints the Warrant Agent to act as agent for the Company in accordance
with the provisions of this Agreement and the Warrant Agent hereby accepts such appointment. The
Warrant Agent shall not be liable and shall be indemnified pursuant to Section 5.05 below, and held
harmless for anything that it may do or refrain from doing in connection with this Agreement,
except for its own gross negligence, willful misconduct or bad faith.

          Section 5.02. Rights and Duties of Warrant Agent.

          (a) Agent for the Company. In acting under this Warrant Agreement and in connection
with the Warrant Certificates, the Warrant Agent is acting solely as agent of the Company and does
not assume any obligation or relationship of agency or trust for or with any of the holders of
Warrant Certificates or beneficial owners of Warrants.

11

 

          (b) Counsel. The Warrant Agent may consult with counsel satisfactory to it (who may
be counsel to the Company), and the advice of such counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it hereunder in good faith
and in accordance with the advice of such counsel.

          (c) Documents. The Warrant Agent shall be protected and shall incur no liability for
or in respect of any action taken or thing suffered by it in reliance upon any Warrant Certificate,
notice, direction, consent, certificate, affidavit, statement or other paper or document reasonably
believed by it to be genuine and to have been presented or signed by the proper parties.

          (d) No Implied Obligations. The Warrant Agent shall be obligated to perform only such
duties as are specifically set forth herein and in the Warrant Certificates, and no implied duties
or obligations of the Warrant Agent shall be read into this Agreement or the Warrant Certificates
against the Warrant Agent. The Warrant Agent shall not be under any obligation to take any action
hereunder that may involve it in any expense or liability for which it does not receive indemnity
if such indemnity is reasonably requested. The Warrant Agent shall not be accountable or under any
duty or responsibility for the use by the Company of any of the Warrant Certificates countersigned
by the Warrant Agent and delivered by it to the Holders or on behalf of the Holders pursuant to
this Agreement or for the application by the Company of the proceeds of the Warrants. The Warrant
Agent shall have no duty or responsibility in case of any default by the Company in the performance
of its covenants or agreements contained herein or in the Warrant Certificates or in the case of
the receipt of any written demand from a Holder with respect to such default, including any duty or
responsibility to initiate or attempt to initiate any proceedings at law or otherwise.

          (e) Not Responsible for Adjustments or Validity of Stock. The Warrant Agent shall not
at any time be under any duty or responsibility to any Holder to determine whether any facts exist
that may require an adjustment of the Warrant Share Number or the Exercise Price, or with respect
to the nature or extent of any adjustment when made, or with respect to the method employed, or
herein or in any supplemental agreement provided to be employed, in making the same. The Warrant
Agent shall not be accountable with respect to the validity or value of any Shares or of any
securities or property that may at any time be issued or delivered upon the exercise of any Warrant
or upon any adjustment pursuant to Section 12 of the Warrant Certificate, and it makes no
representation with respect thereto. The Warrant Agent shall not be responsible for any failure of
the Company to make any cash payment or to issue, transfer or deliver any Shares or stock
certificates upon the surrender of any Warrant Certificate for the purpose of exercise or upon any
adjustment pursuant to Section 12 of the Warrant Certificate, or to comply with any of the
covenants of the Company contained in the Warrant Certificate.

          (f) If the Warrant Agent shall receive any notice or demand (other than Notice of Exercise of
Warrants) addressed to the Company by the Holder of a Warrant, the Warrant Agent shall promptly
forward such notice or demand to the Company.

          Section 5.03. Individual Rights of Warrant Agent.

12

 

          The Warrant Agent and any stockholder, director, officer or employee of the Warrant Agent may
buy, sell or deal in any of the Warrants or other securities of the Company or its affiliates or
become pecuniarily interested in transactions in which the Company or its affiliates may be
interested, or contract with or lend money to the Company or its affiliates or otherwise act as
fully and freely as though it were not the Warrant Agent under this Agreement. Nothing herein shall
preclude the Warrant Agent from acting in any other capacity for the Company or for any other legal
entity.

          Section 5.04. Warrant Agent’s Disclaimer.

          The Warrant Agent shall not be responsible for, and makes no representation as to the validity
or adequacy of, this Agreement (except the due and valid authorized execution and delivery of this
Agreement by the Warrant Agent) or the Warrant Certificates (except the due countersignature of the
Warrant Certificate(s) by the Warrant Agent) and it shall not be responsible for any statement in
this Agreement or the Warrant Certificates other than its countersignature thereon.

          Section 5.05. Compensation and Indemnity.

          (a) The Company agrees to pay the Warrant Agent from time to time reasonable compensation for
its services as agreed and to reimburse the Warrant Agent upon request for all reasonable
out-of-pocket expenses incurred by it, including the reasonable compensation and expenses of the
Warrant Agent’s agents and counsel as agreed. The Company shall indemnify the Warrant Agent, its
officers, directors, agents and counsel against any loss, liability or expense (including
reasonable agents’ and attorneys’ fees and expenses) incurred by it without gross negligence,
willful misconduct or bad faith on its part arising out of or in connection with the acceptance or
performance of its duties under this Agreement. The Warrant Agent shall notify the Company
promptly of any claim for which it may seek indemnity. The Company need not reimburse any expense
or indemnify against any loss or liability incurred by the Warrant Agent through willful
misconduct, gross negligence or bad faith. The Company’s payment obligations pursuant to this
Section shall survive the termination of this Agreement.

          (b) The Warrant Agent shall be responsible for and shall indemnify and hold the Company
harmless from and against any and all losses, damages, costs, charges, counsel fees, payments,
expenses and liability arising out of or attributable to the Warrant Agent’s refusal or failure to
comply with the terms of this Agreement, or which arise out of Warrant Agent’s gross negligence,
bad faith or willful misconduct or which arise out of the breach of any representation or warranty
of the Warrant Agent hereunder, for which the Warrant Agent is not entitled to indemnification
under this Agreement; provided, however, the Warrant Agent’s aggregate liability hereunder during
any term of this Agreement with respect to, arising from, or arising in connection with this
Agreement, whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the
amounts paid hereunder by the Company to the Warrant Agent as fees and charges, but not including
reimbursable expenses.

          To secure the Company’s payment obligations under this Agreement, the Warrant Agent shall have
a lien prior to the Holders on all money or property held or collected by the Warrant Agent.

13

 

          Section 5.06. Successor Warrant Agent.

          (a) Company to Provide and Maintain Warrant Agent. The Company agrees for the benefit
of the Holders that there shall at all times be a Warrant Agent hereunder until all the Warrants
have been exercised or cancelled or are no longer exercisable.

          (b) Resignation and Removal. The Warrant Agent may at any time resign by giving
written notice to the Company of such intention on its part, specifying the date on which its
desired resignation shall become effective; provided, however, that such date shall
not be less than 60 days after the date on which such notice is given unless the Company otherwise
agrees. The Warrant Agent hereunder may be removed at any time by the filing with it of an
instrument in writing signed by or on behalf of the Company and specifying such removal and the
date when it shall become effective, which date shall not be less than 60 days after such notice is
given unless the Warrant Agent otherwise agrees. Any removal under this Section shall take effect
upon the appointment by the Company as hereinafter provided of a successor Warrant Agent (which
shall be (i) a bank or trust company, (ii) organized under the laws of the United States of America
or one of the states thereof, (iii) authorized under the laws of the jurisdiction of its
organization to exercise corporate trust powers, (iv) having a combined capital and surplus of at
least $50,000,000 (as set forth in its most recent reports of condition published pursuant to law
or to the requirements of any United States federal or state regulatory or supervisory authority)
and (v) having an office in the Borough of Manhattan, The City of New York) and the acceptance of
such appointment by such successor Warrant Agent. The obligations of the Company under Section
5.05 shall continue to the extent set forth herein notwithstanding the resignation or removal of
the Warrant Agent.

          (c) Company to Appoint Successor. In the event that at any time the Warrant Agent
shall resign, or shall be removed, or shall become incapable of acting, or shall be adjudged
bankrupt or insolvent, or shall commence a voluntary case under the Federal bankruptcy laws, as now
or hereafter constituted, or under any other applicable Federal or State bankruptcy, insolvency or
similar law or shall consent to the appointment of or taking possession by a receiver, custodian,
liquidator, assignee, trustee, sequestrator (or other similar official) of the Warrant Agent or its
property or affairs, or shall make an assignment for the benefit of creditors, or shall admit in
writing its inability to pay its debts generally as they become due, or shall take corporate action
in furtherance of any such action, or a decree or order for relief by a court having jurisdiction
in the premises shall have been entered in respect of the Warrant Agent in an involuntary case
under the Federal bankruptcy laws, as now or hereafter constituted, or any other applicable Federal
or State bankruptcy, insolvency or similar law, or a decree or order by a court having jurisdiction
in the premises shall have been entered for the appointment of a receiver, custodian, liquidator,
assignee, trustee, sequestrator (or similar official) of the Warrant Agent or of its property or
affairs, or any public officer shall take charge or control of the Warrant Agent or of its property
or affairs for the purpose of rehabilitation, conservation, winding up or liquidation, a successor
Warrant Agent, qualified as aforesaid, shall be appointed by the Company by an instrument in
writing, filed with the successor Warrant Agent. In the event that a successor Warrant Agent is
not appointed by the Company, a successor Warrant Agent, qualified as aforesaid, may be appointed
by the Warrant Agent or the Warrant Agent may petition a court to appoint a successor Warrant
Agent. Upon the appointment as aforesaid of a successor Warrant Agent and acceptance by the
successor Warrant Agent of such appointment,

14

 

the Warrant Agent shall cease to be Warrant Agent hereunder; provided,
however, that in the event of the resignation of the Warrant Agent under this subsection
(c), such resignation shall be effective on the earlier of (i) the date specified in the Warrant
Agent’s notice of resignation and (ii) the appointment and acceptance of a successor Warrant Agent
hereunder.

          (d) Successor to Expressly Assume Duties. Any successor Warrant Agent appointed
hereunder shall execute, acknowledge and deliver to its predecessor and to the Company an
instrument accepting such appointment hereunder, and thereupon such successor Warrant Agent,
without any further act, deed or conveyance, shall become vested with all the rights and
obligations of such predecessor with like effect as if originally named as Warrant Agent hereunder,
and such predecessor, upon payment of its charges and disbursements then unpaid, shall thereupon
become obligated to transfer, deliver and pay over, and such successor Warrant Agent shall be
entitled to receive, all monies, securities and other property on deposit with or held by such
predecessor, as Warrant Agent hereunder.

          (e) Successor by Merger. Any entity into which the Warrant Agent hereunder may be
merged or consolidated, or any entity resulting from any merger or consolidation to which the
Warrant Agent shall be a party, or any entity to which the Warrant Agent shall sell or otherwise
transfer all or substantially all of its assets and business, shall be the successor Warrant Agent
under this Agreement without the execution or filing of any paper or any further act on the part of
any of the parties hereto; provided, however, that it shall be qualified as
aforesaid.

          Section 5.07. Representations of the Company. The Company represents and warrants to the
Warrant Agent that:

          (a) the Company has been duly organized and is validly existing under the laws of the
jurisdiction of its incorporation;

          (b) this Agreement has been duly authorized, executed and delivered by the Company and is
enforceable against the Company in accordance with its terms, except as may be limited by
bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting the enforcement
of creditors’ rights generally; and

          (c) the execution and delivery of this Agreement does not, and the issuance of the Warrants in
accordance with the terms of this Agreement and the Warrant Certificate will not, (i) violate the
Company’s certificate of incorporation or by-laws, (ii) violate any law or regulation applicable to
the Company or order or decree of any court or public authority having jurisdiction over the
Company, or (iii) result in a breach of any mortgage, indenture, contract, agreement or undertaking
to which the Company is a party or by which it is bound, except in the case of (ii) and (iii) for
any violations or breaches that could not reasonably be expected to have a material adverse effect
on the Company and its subsidiaries, taken as a whole.

ARTICLE VI

MISCELLANEOUS

          Section 6.01. Persons Benefitting.

15

 

          Nothing in this Agreement is intended or shall be construed to confer upon any Person other
than the Company, the Warrant Agent and the Holders any right, remedy or claim under or by reason
of this Agreement or any part hereof.

          Section 6.02. Amendment.

          This Agreement and the Warrants may be amended by the parties hereto without the consent of
any Holder for the purpose of curing any ambiguity, or of curing, correcting or supplementing any
defective provision contained herein or therein or adding or changing any other provisions with
respect to matters or questions arising under this Agreement or the Warrants as the Company and the
Warrant Agent may deem necessary or desirable; provided, however, that such action
shall not adversely affect the rights of any of the Holders in any material respect. Any amendment
or supplement to this Agreement or the Warrants that has a material adverse effect on the interests
of any of the Holders or owners of a beneficial interest in a Global Warrant shall require the
written consent of the Holders of a majority of the then outstanding Warrants; provided
that the consent of each Holder affected thereby shall be required for any amendment pursuant to
which (i) the Exercise Price would be increased or the Warrant Share Number would be decreased (in
each case, other than pursuant to adjustments provided for in Section 12 of the Warrant
Certificate), (ii) the time period during which the Warrants are exercisable would be shortened or
(iii) any change adverse to the Holder would be made to the anti-dilution provisions set forth in
Article IV of this Agreement or Section 12 of the Warrant Certificate. In determining whether the
Holders of the required number of Warrants have concurred in any direction, waiver or consent,
Warrants owned by the Company or by any Affiliate of the Company shall be disregarded and deemed
not to be outstanding, except that, for the purpose of determining whether the Warrant Agent shall
be protected in relying on any such direction, waiver or consent, only Warrants that the Warrant
Agent knows are so owned shall be so disregarded. Also, subject to the foregoing, only Warrants
outstanding at the time shall be considered in any such determination. The Warrant Agent shall
have no duty to determine whether any such amendment would have an effect on the rights or
interests of the holders of the Warrants. Upon receipt by the Warrant Agent of an Officer’s
Certificate and an Opinion of Counsel, each stating that all conditions precedent to the execution
of the amendment have been complied with and such execution is permitted by this Agreement and the
Warrant Certificate, the Warrant Agent shall join in the execution of such amendment; provided,
that the Warrant Agent may, but shall not be obligated to, execute any amendment or supplement
which affects the rights or changes or increases the duties or obligations of the Warrant Agent.

          Section 6.03. Notices.

          Any notice or communication shall be in writing and delivered in person or mailed by
first-class mail addressed as follows:

16

 

          if to the Company:

Citigroup Inc.

One Court Square, 45th Floor

Long Island City, NY 11120

Telephone: (718) 248-4107

Facsimile: (718) 248-2705

Attention: Michael J. Tarpley

                 Associate General Counsel-Capital Markets

          if to the Warrant Agent:

Computershare Trust Company, N.A.

250 Royall Street

Canton MA, 02021

Facsimile: (781) 575-2901

Attention: Corporate Actions

          The Company or the Warrant Agent by notice to the other may designate additional or different
addresses for subsequent notices or communications.

          Unless the Warrant is a Global Warrant, any notice or communication mailed to a Holder shall
be mailed to the Holder at the Holder’s address as it appears on the Registry and shall be
sufficiently given if so mailed within the time prescribed. Any notice to the owners of a
beneficial interest in a Global Warrant shall be distributed through the Depositary in accordance
with the procedures of the Depositary. Communications to such Holder shall be deemed to be
effective at the time of dispatch to the Depositary.

          Failure to provide a notice or communication to a Holder or any defect in it shall not affect
its sufficiency with respect to other Holders. If a notice or communication is provided in the
manner provided above, it is duly given, whether or not the intended recipient actually receives
it.

          Section 6.04. Governing Law.

          This Agreement will be governed by and construed in accordance with the laws of the State of
New York applicable to contracts made and to be performed entirely within such State.

          Section 6.05. Successors.

          All agreements of the Company in this Agreement and the Warrants shall bind its successors.
All agreements of the Warrant Agent in this Agreement shall bind its successors.

          Section 6.06. Multiple Originals.

17

 

          The parties may sign any number of copies of this Agreement. Each signed copy shall be an
original, but all of them together represent the same agreement. One signed copy is enough to prove
this Agreement.

          Section 6.07. Inspection of Agreement.

          A copy of this Agreement shall be made available at all reasonable times for inspection by any
registered Holder or owner of a beneficial interest in a Global Warrant at the principal office of
the Warrant Agent (or successor warrant agent).

          Section 6.08. Table of Contents.

          The table of contents and headings of the Articles and Sections of this Agreement have been
inserted for convenience of reference only, are not intended to be considered a part hereof and
shall not modify or restrict any of the terms or provisions hereof.

          Section 6.09. Severability.

          The provisions of this Agreement are severable, and if any clause or provision shall be held
invalid, illegal or unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect in that jurisdiction only such clause or provision, or part thereof,
and shall not in any manner affect such clause or provision in any other jurisdiction or any other
clause or provision of this Agreement in any jurisdiction.

18

 

          IN WITNESS WHEREOF, the parties have caused this Warrant Agreement to be duly executed as of
the date first written above.

	 	 	 	 	 
	 	CITIGROUP INC.

 	 
	 	By:  	/s/ Martin A. Waters	 
	 	 	Name:  	Martin A. Waters	 
	 	 	Title:  	Assistant Treasurer	 
	 
	 	COMPUTERSHARE TRUST COMPANY, N.A.,

AND COMPUTERSHARE INC.

Collectively, as Warrant Agent,

 	 
	 	By:  	/s/ Thomas Borbely	 
	 	 	Name:  	Thomas Borbely	 
	 	 	Title:  	Manager, Corporate Actions	 
	 

19

 

EXHIBIT A

FORM OF WARRANT

[Global Securities Legend]

     UNLESS THIS GLOBAL WARRANT IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY WARRANT CERTIFICATE ISSUED IS REGISTERED IN
THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS 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.

     TRANSFERS OF THIS GLOBAL WARRANT SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL WARRANT SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE WARRANT AGREEMENT REFERRED TO ON THE REVERSE HEREOF.

1

 

GLOBAL WARRANT

representing

WARRANTS

to purchase

Shares of

Common Stock

of

CITIGROUP INC.

No. [ ]

CUSIP No: 172967 226

     1. Definitions.Unless the context otherwise requires, when used herein the following
terms shall have the meanings indicated. Any capitalized terms used but not defined herein that
are defined in the Warrant Agreement shall have the meanings set forth in the Warrant Agreement.

     “Affiliate” means, with respect to any Person, any Person directly or indirectly controlling,
controlled by or under common control with, such other Person. For purposes of this definition,
“control” (including, with correlative meanings, the terms “controlled by” and “under common
control with”) when used with respect to any Person, means the possession, directly or indirectly,
of the power to cause the direction of management and/or policies of such Person, whether through
the ownership of voting securities by contract or otherwise.

     “Agent Members” means the securities brokers and dealers, banks and trust companies, clearing
organizations and certain other organizations that are participants in the Depositary’s system.

     “Board of Directors” means the board of directors of the Company, including any duly
authorized committee thereof.

     “Business Combination” means a merger, consolidation, statutory share exchange or similar
transaction that requires the approval of the Company’s stockholders.

     “business day” means any day except Saturday, Sunday and (i) at any time when the Warrants are
listed on the New York Stock Exchange, any day on which The New York Stock Exchange is authorized
or required by law or other governmental actions to close or (ii) at any time when the Warrants are
not listed on the New York Stock Exchange, any day on which banking institutions in the State of
New York are authorized or required by law or other governmental actions to close.

     “Capital Stock” means (A) with respect to any Person that is a corporation or company, any and
all shares, interests, participations or other equivalents (however designated) of capital

2

 

or capital stock of such Person and (B) with respect to any Person that is not a corporation
or company, any and all partnership or other equity interests of such Person.

     “Charter” means, with respect to any Person, its certificate or articles of incorporation,
articles of association, or similar organizational document.

     “Common Stock” means the common stock, par value $0.01 per share, of the Company.

     “Company” means Citigroup Inc., a corporation duly organized and existing under the laws of
Delaware.

     “Definitive Warrant” means a Warrant Certificate in definitive form that is not deposited with
the Depositary or with the Warrant Agent as custodian for the Depositary.

     “Depositary” means The Depository Trust Company, its nominees and their respective successors.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder.

     “Exercise Price” means $10.61, subject to adjustment as set forth herein.

     “Expiration Time” has the meaning set forth in Section 3.

     “Fair Market Value” means, with respect to any security or other property, the fair market
value of such security or other property as determined by the Board of Directors, acting in good
faith.

     “Global Warrant” means a Warrant Certificate in global form that is deposited with the
Depositary or with the Warrant Agent as custodian for the Depositary.

     “Governmental Entities” means, collectively, all United States and other governmental,
regulatory or judicial authorities.

     “Issue Date” means January 4, 2009.

     “Market Price” means, with respect to a particular security, on any given day, the last
reported sale price regular way or, in case no such reported sale takes place on such day, the
average of the last closing bid and ask prices regular way, in either case on the principal
national securities exchange on which the applicable securities are listed or admitted to trading,
or if not listed or admitted to trading on any national securities exchange, the average of the
closing bid and ask prices as furnished by two members of the Financial Industry Regulatory
Authority, Inc. selected from time to time by the Company for that purpose. “Market Price” shall
be determined without reference to after hours or extended hours trading. If such security is not
listed and traded in a manner that the quotations referred to above are available for the period
required hereunder, the Market Price per share of Common Stock shall be deemed to be the fair
market value per share of such security as determined in good faith by the Board of Directors in
reliance on an opinion of a nationally recognized independent investment banking corporation
retained by

3

 

the Company for this purpose; provided that if any such security is listed or traded
on a non-U.S. market, such fair market value shall be determined by reference to the closing price
of such security as of the end of the most recently ended business day in such market prior to the
date of determination; and further, provided that if making such determination
requires the conversion of any currency other than U.S. dollars into U.S. dollars, such conversion
shall be done in accordance with customary procedures based on the rate for conversion of such
currency into U.S. dollars displayed on the relevant page by Bloomberg L.P. (or any successor or
replacement service) on or by 4:00 p.m., New York City time, on such exercise date. For the
purposes of determining the Market Price of the Common Stock on the “trading day” preceding, on or
following the occurrence of an event, (i) that trading day shall be deemed to commence immediately
after the regular scheduled closing time of trading on the New York Stock Exchange or, if trading
is closed at an earlier time, such earlier time and (ii) that trading day shall end at the next
regular scheduled closing time, or if trading is closed at an earlier time, such earlier time (for
the avoidance of doubt, and as an example, if the Market Price is to be determined as of the last
trading day preceding a specified event and the closing time of trading on a particular day is 4:00
p.m. and the specified event occurs at 5:00 p.m. on that day, the Market Price would be determined
by reference to such 4:00 p.m. closing price).

     “Ordinary Cash Dividends” means a regular quarterly cash dividend on shares of Common Stock
out of surplus or net profits legally available therefor (determined in accordance with U.S. GAAP
in effect from time to time), provided that Ordinary Cash Dividends shall not include any
cash dividends paid subsequent to the Issue Date to the extent the aggregate per share dividends
paid on the outstanding Common Stock in any quarter exceed $0.01, as adjusted for any stock split,
stock dividend, reverse stock split, reclassification or similar transaction.

     “Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

     “Per Share Fair Market Value” has the meaning set forth in Section 12(B).

     “Pro Rata Repurchases” means any purchase of shares of Common Stock by the Company or any
Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or
14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available
to substantially all holders of Common Stock, in the case of both (A) and (B), whether for cash,
shares of Capital Stock of the Company, other securities of the Company, evidences of indebtedness
of the Company or any other Person or any other property (including, without limitation, shares of
Capital Stock, other securities or evidences of indebtedness of a subsidiary), or any combination
thereof, effected while this Warrant Certificate is outstanding. The “Effective Date” of a Pro
Rata Repurchase shall mean the date of acceptance of shares for purchase or exchange by the Company
under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with
respect to any Pro Rata Repurchase that is not a tender or exchange offer.

     “SEC” means the U.S. Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and
the rules and regulations promulgated thereunder.

4

 

     “Shares” has the meaning set forth in Section 2.

     “trading day” means (A) if the shares of Common Stock are not traded on any national or
regional securities exchange or association or over-the-counter market, a business day or (B) if
the shares of Common Stock are traded on any national or regional securities exchange or
association or over-the-counter market, a business day on which such relevant exchange or quotation
system is scheduled to be open for business and on which the shares of Common Stock (i) are not
suspended from trading on any national or regional securities exchange or association or
over-the-counter market for any period or periods aggregating one half hour or longer; and (ii)
have traded at least once on the national or regional securities exchange or association or
over-the-counter market that is the primary market for the trading of the shares of Common Stock.
The term “trading day” with respect to any security other than the Common Stock shall have a
correlative meaning based on the primary exchange or quotation system on which such security is
listed or traded.

     “Transfer Agent” means Computershare Trust Company, N.A., as transfer agent of the Company,
and any successor transfer agent.

     “U.S. GAAP” means United States generally accepted accounting principles.

     “Warrant” means a right to purchase a number of shares of the Company’s Common Stock equal to
the Warrant Share Number as provided herein. References herein to “Warrant” shall include the
Global Warrant where the context requires.

     “Warrant Agent” has the meaning set forth in Section 16.

     “Warrant Agreement” has the meaning set forth in Section 16.

     “Warrant Certificate” means a fully registered certificate evidencing Warrants.

     “Warrantholder” means a registered owner of Warrants as set forth in the Registry.

     “Warrant Share Number” means one share of Common Stock, as subsequently adjusted pursuant to
the terms of this Warrant and the Warrant Agreement.

     2. Number of Shares; Exercise Price. This certifies that, for value received, Cede &
Co., and any of its registered assigns, is the registered owner of the number of Warrants set forth
on Schedule A hereto, each of which entitles the Warrantholder to purchase from the Company, upon
the terms and subject to the conditions hereinafter set forth, a number of fully paid and
nonassessable shares of Common Stock (each a “Share” and collectively the “Shares”) equal to the
Warrant Share Number at a purchase price per share equal to the Exercise Price. The Warrant Share
Number and the Exercise Price are subject to adjustment as provided herein, and all references to
“Warrant Share Number” and “Exercise Price” herein shall be deemed to include any such adjustment
or series of adjustments.

     3. Exercise of Warrant; Term. Subject to Section 2, to the extent permitted by
applicable laws and regulations, all or a portion of the Warrants evidenced by this Warrant

5

 

Certificate are exercisable by the Warrantholder, at any time or from time to time after the
execution and delivery of this Warrant Certificate by the Company on the date hereof, but in no
event later than 5:00 p.m., New York City time on the tenth anniversary of the Issue Date (the
“Expiration Time”), by (A) delivery to the Warrant Agent of a Notice of Exercise in the form
annexed hereto, duly completed and executed (or to the Company or to such other office or agency of
the Company in the United States as the Company may designate by notice in writing to the
Warrantholders pursuant to Section 18), and (B) payment of the Exercise Price for the Shares
thereby purchased by having the Company withhold, from the shares of Common Stock that would
otherwise be delivered to such Warrantholder upon such exercise, Shares issuable upon exercise of
the Warrants so exercised equal in value to the aggregate Exercise Price as to such Shares, based
on the Market Price of the Common Stock on the trading day on which such Warrants are exercised and
the Notice of Exercise is delivered to the Warrant Agent pursuant to this Section 3. For the
avoidance of doubt, if Warrants are exercised such that the Exercise Price would exceed the value
of the Shares issuable upon exercise, no amount shall be due and payable by the Warrantholder to
the Company. In the case of a Global Warrant, any person with a beneficial interest in such Global
Warrant shall effect compliance with the requirements in clauses (A) and (B) above through the
relevant Agent Member in accordance with procedures of the Depositary.

     In the case of a Global Warrant, whenever some but not all of the Warrants represented by such
Global Warrant are exercised in accordance with the terms thereof and of the Warrant Agreement,
such Global Warrant shall be surrendered by the Warrantholder to the Warrant Agent, which shall
cause an adjustment to be made to Schedule A to such Global Warrant so that the number of Warrants
represented thereby will be equal to the number of Warrants theretofor represented by such Global
Warrant less the number of Warrants then exercised. The Warrant Agent shall thereafter promptly
return such Global Warrant to the Warrantholder or its nominee or custodian. In the case of a
Definitive Warrant, whenever some but not all of the Warrants represented by such Definitive
Warrant are exercised in accordance with the terms thereof and of the Warrant Agreement, the
Warrantholder shall be entitled, at the request of such Warrantholder, to receive from the Company
within a reasonable time, not to exceed three business days, a new Definitive Warrant in
substantially identical form for the number of Warrants equal to the number of Warrants theretofor
represented by such Definitive Warrant less the number of Warrants then exercised.

     If this Warrant Certificate shall have been exercised in full, the Warrant Agent shall
promptly cancel such certificate following its receipt from the Warrantholder or the Depositary, as
applicable.

     Notwithstanding anything in this Warrant Certificate to the contrary, in the case of Warrants
evidenced by a Global Warrant, any Agent Member may, without the consent of the Warrant Agent or
any other person, on its own behalf and on behalf of any beneficial owner for which it is acting,
enforce, and may institute and maintain, any suit, action or proceeding against the Company
suitable to enforce, or otherwise in respect of, its right to exercise, and to receive
Shares for, its Warrants as provided in the Global Warrant, and to enforce the Warrant
Agreement.

6

 

     4. Issuance of Shares; Authorization; Listing. Shares issued upon exercise of
Warrants evidenced by this Warrant Certificate shall be (i) issued in such name or names as the
exercising Warrantholder may designate and (ii) delivered by the Transfer Agent to such
Warrantholder or its nominee or nominees (A) via book-entry transfer crediting the account of such
Warrantholder (or the relevant Agent Member for the benefit of such Warrantholder) through the
Depositary’s DWAC system (if the Transfer Agent participates in such system), or (B) otherwise in
certificated form by physical delivery to the address specified by the Warrantholder in the Notice
of Exercise. The Company shall use its commercially reasonable efforts to cause its Transfer Agent
to be a participant in the Depositary’s DWAC system. The Company shall cause the number of full
Shares to which such Warrantholder shall be entitled to be so delivered by the Transfer Agent
within a reasonable time, not to exceed three business days after the date on which Warrants
evidenced by this Warrant Certificate have been duly exercised in accordance with the terms hereof.

     The Company hereby represents and warrants that any Shares issued upon the exercise of
Warrants evidenced by this Warrant Certificate in accordance with the provisions of Section 3 will
be duly and validly authorized and issued, fully paid and nonassessable and free from all taxes,
liens and charges (other than liens or charges created by a Warrantholder, income and franchise
taxes incurred in connection with the exercise of the Warrant or taxes in respect of any transfer
occurring contemporaneously therewith). The Company agrees that the Shares so issued will be
deemed to have been issued to a Warrantholder as of the close of business on the date on which
Warrants evidenced by this Warrant Certificate have been duly exercised, notwithstanding that the
stock transfer books of the Company may then be closed or certificates representing such Shares may
not be actually delivered on such date. The Company will at all times until the Expiration Time
(or, if such date shall not be a business day, then on the next succeeding business day) reserve
and keep available, out of its authorized but unissued Common Stock, solely for the purpose of
providing for the exercise of Warrants evidenced by this Warrant Certificate, the aggregate number
of shares of Common Stock then issuable upon exercise hereof at any time. The Company will (A)
procure, at its sole expense, the listing of the Shares issuable upon exercise hereof at any time,
subject to issuance or notice of issuance, on all principal stock exchanges on which the Common
Stock is then listed or traded and (B) maintain such listings of such Shares at all times after
issuance. The Company will use reasonable best efforts to ensure that the Shares may be issued
without violation of any applicable law or regulation or of any requirement of any securities
exchange on which the Shares are listed or traded.

     5. No Fractional Shares or Scrip. No fractional Shares or scrip representing
fractional Shares shall be issued upon any exercise of Warrants evidenced by this Warrant
Certificate. In lieu of any fractional Share that would otherwise be issued to a Warrantholder
upon the exercise of any Warrants, such Warrantholder shall be entitled to receive a cash payment
equal to the Market Price of the Common Stock on the trading day on which such warrants are
exercised representing such fractional Share. The beneficial owners of the Warrants and the
Warrantholder, by their
acceptance hereof, expressly waive their right to receive any fraction of a share of Common
Stock or a certificate representing a fraction of a share of Common Stock or Warrant Certificate
representing a fractional Warrant upon exercise of any Warrant.

7

 

     6. No Rights as Stockholders; Transfer Books. Warrants evidenced by this Warrant
Certificate do not entitle the Warrantholder or the owner of any beneficial interest in such
Warrants to any voting rights or other rights as a stockholder of the Company prior to the date of
exercise hereof. The Company will at no time close its transfer books against transfer of Warrants
in any manner which interferes with the timely exercise hereof.

     7. Charges, Taxes and Expenses. Issuance of Shares in certificated or book-entry form
to the Warrantholder upon the exercise of Warrants evidenced by this Warrant Certificate shall be
made without charge to the Warrantholder for any issue or transfer tax or other incidental expense
in respect of the issuance of such Shares (other than liens or charges created by a Warrantholder,
income and franchise taxes incurred in connection with the exercise of the Warrant or taxes in
respect of any transfer occurring contemporaneously therewith), all of which taxes and expenses
shall be paid by the Company.

     8. Transfer/Assignment. This Warrant Certificate and all rights hereunder are
transferable, in whole or in part, upon the books of the Company (or an agent duly appointed by the
Company) by the registered holder hereof in person or by duly authorized attorney, and one or more
new Warrant Certificates shall be made and delivered by the Company, of the same tenor and date as
this Warrant Certificate but registered in the name of one or more transferees, upon surrender of
this Warrant Certificate, duly endorsed, to the office or agency of the Company described in
Section 3; provided that if this Warrant Certificate is a Global Warrant registered in the
name of the Depositary, transfers of such Global Warrant may only be made as a whole, and not in
part, and only by (i) the Depositary to a nominee of the Depositary, (ii) a nominee of the
Depositary to the Depositary or another nominee of the Depositary or (iii) the Depositary or any
such nominee to a successor Depositary or its nominee. All expenses (other than stock transfer
taxes) and other charges payable in connection with the preparation, execution and delivery of the
new Warrant Certificates pursuant to this Section 8 shall be paid by the Company.

     If this Warrant Certificate is a Global Warrant, then so long as the Global Warrant is
registered in the name of the Depositary, the holders of beneficial interests in the Warrants
evidenced thereby shall have no rights under this Warrant Certificate with respect to the Global
Warrant held on their behalf by the Depositary or the Warrant Agent as its custodian, and the
Depositary may be treated by the Company, the Warrant Agent and any agent of the Company or the
Warrant Agent as the absolute owner of the Global Warrant for all purposes whatsoever except to the
extent set forth herein. Accordingly, any such owner’s beneficial interest in the Global Warrant
will be shown only on, and the transfer of such interest shall be effected only through, records
maintained by the Depositary or the Agent Members, and neither the Company
nor the Warrant Agent shall have any responsibility with respect to such records maintained by
the Depositary or the Agent Members. Notwithstanding the foregoing, nothing herein shall (i)
prevent the Company, the Warrant Agent or any agent of the Company or the Warrant Agent from giving
effect to any written certification, proxy or other authorization furnished by the Depositary or
(ii) impair, as between the Depositary and the Agent Members, the operation of customary practices
governing the exercise of the rights of a holder of a beneficial interest in any Warrant. Except
as may otherwise be provided in this Warrant Certificate or the Warrant Agreement, the rights of
beneficial owners in a Global Warrant shall be exercised through the Depositary subject to the
applicable procedures of the Depositary. Any holder of the Global

8

 

Warrant shall, by acceptance of
the Global Warrant, agree that transfers of beneficial interests in the Global Warrant may be
effected only through a book-entry system maintained by the Depositary, and that ownership of a
beneficial interest in the Warrants represented thereby shall be required to be reflected in
book-entry form.

     A Global Warrant shall be exchanged for Definitive Warrants, and Definitive Warrants may be
transferred or exchanged for a beneficial interest in a Global Warrant, only at such times and in
the manner specified in the Warrant Agreement. Subject to the provisions of the Warrant Agreement,
the holder of a Global Warrant may grant proxies and otherwise authorize any person, including
Agent Members and persons that may hold beneficial interests in such Global Warrant through Agent
Members, to take any action that a Warrantholder is entitled to take under a Warrant or the Warrant
Agreement.

     9. Exchange and Registry of Warrants. This Warrant Certificate is exchangeable, upon
the surrender hereof by the Warrantholder to the Company, for a new Warrant Certificate or Warrant
Certificates of like tenor and representing the same aggregate number of Warrants. The Company or
an agent duly appointed by the Company (which initially shall be the Warrant Agent) shall maintain
a Registry showing the name and address of the Warrantholder as the registered holder of this
Warrant Certificate. This Warrant Certificate may be surrendered for exchange or exercise in
accordance with its terms, at the office of the Company or any such agent, and the Company shall be
entitled to rely in all respects, prior to written notice to the contrary, upon such Registry.

     10. Loss, Theft, Destruction or Mutilation of Warrant Certificate. Upon receipt by
the Company of proof reasonably satisfactory to it of the loss, theft, destruction or mutilation of
this Warrant Certificate, and in the case of any such loss, theft or destruction, upon receipt of a
bond, indemnity or security reasonably satisfactory to the Company and the Warrant Agent, or, in
the case of any such mutilation, upon surrender and cancellation of this Warrant Certificate, the
Company shall make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant
Certificate, a new Warrant Certificate of like tenor and representing the same aggregate number of
Warrants as provided for in such lost, stolen, destroyed or mutilated Warrant Certificate.

     11. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a business day, then such action may be taken or such right
may be exercised on the next succeeding day that is a business day.

     12. Adjustments and Other Rights. The Exercise Price and the Warrant Share Number
shall be subject to adjustment from time to time as follows; provided that if more than one
subsection of this Section 12 is applicable to a single event, the subsection shall be applied that
produces the largest adjustment and no single event shall cause an adjustment under more than one
subsection of this Section 12 so as to result in duplication:

     (A) Stock Splits, Subdivisions, Reclassifications or Combinations. If the Company
shall (i) declare and pay a dividend or make a distribution on its Common Stock in shares of Common
Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of
shares, or (iii) combine or reclassify the outstanding shares of Common Stock

9

 

into a smaller number
of shares, the Warrant Share Number at the time of the record date for such dividend or
distribution or the effective date of such subdivision, combination or reclassification shall be
proportionately adjusted so that the holder of a Warrant after such date shall be entitled to
purchase the number of shares of Common Stock which such holder would have owned or been entitled
to receive in respect of the Warrant Share Number had such Warrant been exercised immediately prior
to such date. In such event, the Exercise Price in effect immediately prior to the record date for
such dividend or distribution or the effective date of such subdivision, combination or
reclassification shall be adjusted by multiplying such Exercise Price by the quotient of (x) the
Warrant Share Number immediately prior to such adjustment divided by (y) the new Warrant Share
Number determined pursuant to the immediately preceding sentence.

     (B) Other Distributions. In case the Company shall fix a record date for the making
of a distribution to all holders of shares of its Common Stock of securities, evidences of
indebtedness, assets, cash, rights or warrants (excluding Ordinary Cash Dividends, dividends of its
Common Stock and other dividends or distributions referred to in Section 12(A)), in each such case,
the Exercise Price in effect prior to such record date shall be reduced immediately thereafter to
the price determined by multiplying the Exercise Price in effect immediately prior to the reduction
by the quotient of (x) the Market Price of the Common Stock on the last trading day preceding the
first date on which the Common Stock trades regular way on the principal national securities
exchange on which the Common Stock is listed or admitted to trading without the right to receive
such distribution, minus the amount of cash and/or the Fair Market Value of the securities,
evidences of indebtedness, assets, rights or warrants to be so distributed in respect of one share
of Common Stock (such subtracted amount and/or Fair Market Value, the “Per Share Fair Market
Value”) divided by (y) such Market Price on such date specified in clause (x); such adjustment
shall be made successively whenever such a record date is fixed. In such event, the Warrant Share
Number shall be increased to the number obtained by multiplying the Warrant Share Number
immediately prior to such adjustment by the quotient of (x) the Exercise Price in
effect immediately prior to the distribution giving rise to this adjustment divided by (y) the
new Exercise Price determined in accordance with the immediately preceding sentence. In the case
of adjustment for a cash dividend that is, or is coincident with, a regular quarterly cash
dividend, the Per Share Fair Market Value would be reduced by the per share amount of the portion
of the cash dividend that would constitute an Ordinary Cash Dividend. In the event that such
distribution is not so made, the Exercise Price and the Warrant Share Number then in effect shall
be readjusted, effective as of the date when the Board of Directors determines not to distribute
such shares, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to
the Exercise Price and the Warrant Share Number that would then be in effect if such record date
had not been fixed.

     (C) Certain Repurchases of Common Stock. In case the Company effects a Pro Rata
Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined by
multiplying the Exercise Price in effect immediately prior to the Effective Date of such Pro Rata
Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of
shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market
Price of a share of Common Stock on the trading day immediately preceding the first public
announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata
Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which

10

 

the denominator shall be the product of (i) the number of shares of Common Stock outstanding
immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so
repurchased and (ii) the Market Price per share of Common Stock on the trading day immediately
preceding the first public announcement by the Company or any of its Affiliates of the intent to
effect such Pro Rata Repurchase. In such event, the Warrant Share Number shall be increased to the
number obtained by multiplying the Warrant Share Number immediately prior to such adjustment by the
quotient of (x) the Exercise Price in effect immediately prior to the Pro Rata Repurchase giving
rise to this adjustment divided by (y) the new Exercise Price determined in accordance with the
immediately preceding sentence. For the avoidance of doubt, no increase to the Exercise Price or
decrease in the Warrant Share Number shall be made pursuant to this Section 12(C).

     (D) Business Combinations or Reclassifications of Common Stock. In case of any
Business Combination or reclassification of Common Stock (other than a reclassification of Common
Stock referred to in Section 12(A)), a Warrantholder’s right to receive Shares upon exercise of a
Warrant shall be converted into the right to exercise such Warrant to acquire the number of shares
of stock or other securities or property (including cash) which the Common Stock issuable (at the
time of such Business Combination or reclassification) upon exercise of such Warrant immediately
prior to such Business Combination or reclassification would have been entitled to receive upon
consummation of such Business Combination or reclassification; and in any such case, if necessary,
the provisions set forth herein with respect to the rights and interests thereafter of the
Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably
be, to such Warrantholder’s right to exercise a Warrant in exchange for any shares of stock or
other securities or property pursuant to this paragraph. In determining the kind and amount of
stock, securities or the property receivable upon exercise of a Warrant following the consummation
of such Business Combination, if the holders of Common Stock have the right to elect the kind or
amount of consideration receivable upon consummation of such Business Combination, then the
consideration that a Warrantholder shall be entitled to receive upon exercise shall be deemed to be
the types and amounts of consideration received by the majority of all holders of the shares of
Common Stock that affirmatively make an election (or of all such holders if none make an election).
For purposes of determining any amount to be withheld pursuant to Section 3 from stock, securities
or the property that would otherwise be delivered to a Warrantholder upon exercise of Warrants
following any Business Combination, the amount of such stock, securities or property to be withheld
shall have a Market Price equal to the aggregate Exercise Price as to which such Warrants are so
exercised, based on the fair market value of such stock, securities or property on the trading day
on which such Warrants are exercised and the Notice of Exercise is delivered to the Warrant Agent;
provided that in the case of any property that is not a security, the Market Price of such
property shall be deemed to be its fair market value as determined in good faith by the Board of
Directors in reliance on an opinion of a nationally recognized independent investment banking firm
retained by the Company for this purpose; and further, provided that if making such
determination requires the conversion of any currency other than U.S. dollars into U.S. dollars,
such conversion shall be done in accordance with customary procedures based on the rate for
conversion of such currency into U.S. dollars displayed on the relevant page by Bloomberg L.P. (or
any successor or replacement service) on or by 4:00 p.m., New York City time, on such exercise
date.

11

 

     (E) Rounding of Calculations; Minimum Adjustments. All calculations under this
Section 12 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest
one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 12 to the
contrary notwithstanding, no adjustment in the Exercise Price or the Warrant Share Number shall be
made if the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of
Common Stock, but any such amount shall be carried forward and an adjustment with respect thereto
shall be made at the time of and together with any subsequent adjustment which, together with such
amount and any other amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a
share of Common Stock, or more, or on exercise of a Warrant if it shall earlier occur.

     (F) Timing of Issuance of Additional Common Stock Upon Certain Adjustments. In any
case in which the provisions of this Section 12 shall require that an adjustment shall become
effective immediately after a record date for an event, the Company may defer until the occurrence
of such event (i) issuing to a Warrantholder of Warrants exercised after such record date and
before the occurrence of such event the additional shares of Common Stock issuable upon such
exercise by reason of the adjustment required by such event over and above the shares of Common
Stock issuable upon such exercise before giving effect to such adjustment and (ii) paying to such
Warrantholder any amount of cash in lieu of a fractional share of Common Stock; provided,
however, that the Company upon request shall deliver to such Warrantholder a due bill or
other appropriate instrument evidencing such Warrantholder’s right to receive such additional
shares, and such cash, upon the occurrence of the event requiring such adjustment.

     (G) Other Events. Neither the Exercise Price nor the Warrant Share Number shall be
adjusted in the event of a change in the par value of the Common Stock or a change in the
jurisdiction of incorporation of the Company.

     (H) Statement Regarding Adjustments. Whenever the Exercise Price or the Warrant Share
Number shall be adjusted as provided in Section 12, the Company shall forthwith file at the
principal office of the Company a statement showing in reasonable detail the facts requiring such
adjustment and the Exercise Price that shall be in effect and the Warrant Share Number after such
adjustment. The Company shall deliver to the Warrant Agent a copy of such statement and shall
cause a copy of such statement to be sent or communicated to the Warrantholders pursuant to Section
18.

     (I) Notice of Adjustment Event. In the event that the Company shall propose to take
any action of the type described in this Section 12 (but only if the action of the type described
in this Section 12 would result in an adjustment in the Exercise Price or the Warrant Share Number
or a change in the type of securities or property to be delivered upon exercise of a Warrant), the
Company shall deliver to the Warrant Agent a notice and shall cause such notice to be sent or
communicated to the Warrantholders in the manner set forth in Section 18, which notice shall
specify the record date, if any, with respect to any such action and the approximate date on which
such action is to take place. Such notice shall also set forth the facts with respect thereto as
shall be reasonably necessary to indicate the effect on the Exercise Price and the number, kind or
class of shares or other securities or property which shall be deliverable upon exercise of a
Warrant. In the case of any action which would require the fixing of a record date, such notice
shall be given at least 10 days prior to the date so fixed, and in case of all other action, such
notice shall be given at least 15 days prior to the taking of such proposed action. Failure to
give such

12

 

notice, or any defect therein, shall not affect the legality or validity of any such
action.

     (J) Proceedings Prior to Any Action Requiring Adjustment. As a condition precedent to
the taking of any action which would require an adjustment pursuant to this Section 12, the Company
shall take any action which may be necessary, including obtaining regulatory, New York Stock
Exchange, NASDAQ Stock Market or other applicable national securities exchange or stockholder
approvals or exemptions, in order that the Company may thereafter validly and legally issue as
fully paid and nonassessable all Shares that a Warrantholder is entitled to receive upon exercise
of a Warrant pursuant to this Section 12.

     (K) Adjustment Rules. Any adjustments pursuant to this Section 12 shall be made
successively whenever an event referred to herein shall occur. If an adjustment in Exercise Price
made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock,
then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par
value of the Common Stock.

     13. No Impairment. The Company will not, by amendment of its Charter or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Company, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant Certificate and in taking of all
such action as may be necessary or appropriate in order to protect the rights of the Warrantholder.

     14. Governing Law. This Warrant Certificate and the Warrants evidenced hereby shall
be governed by and construed in accordance with the laws of the State of New York applicable to
contracts made and to be performed entirely within such State.

     15. Binding Effect; Countersignature by Warrant Agent. This Warrant Certificate shall
be binding upon any successors or assigns of the Company. This Warrant Certificate shall not be
valid until an authorized signatory of the Warrant Agent (as defined below) or its agent as
provided in the Warrant Agreement (as defined below) countersigns this Warrant Certificate. Such
signature shall be solely for the purpose of authenticating this Warrant Certificate and shall be
conclusive evidence that this Warrant Certificate has been countersigned under the Warrant
Agreement.

     16. Warrant Agreement; Amendments.This Warrant Certificate is issued under and in
accordance with a Warrant Agreement dated as of January 25, 2011 (the “Warrant Agreement”), between
the Company and Computershare Inc. and Computershare Trust Company, N.A. (collectively, the
“Warrant Agent,” which term includes any successor Warrant Agent under the Warrant Agreement), and
is subject to the terms and provisions contained in the Warrant Agreement, to all of which terms
and provisions the beneficial owners of the Warrants and the Warrantholders consent by acceptance
hereof. The Warrant Agreement is hereby incorporated herein by reference and made a part hereof.
Reference is hereby made to the Warrant Agreement for a statement of the respective rights,
limitations of rights, duties and obligations of the Company, the Warrant Agent and the
Warrantholders and beneficial owners of the Warrants. A

13

 

copy of the Warrant Agreement may be
obtained for inspection by the Warrantholders or beneficial owners of the Warrants upon request to
the Warrant Agent at the address of the Warrant Agent (or successor warrant agent) set forth in the
Warrant Agreement. The Warrant Agreement and this Warrant Certificate may be amended and the
observance of any term of the Warrant Agreement or this Warrant Certificate may be waived only to
the extent provided in the Warrant Agreement.

     17. Prohibited Actions. The Company agrees that it will not take any action which
would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of
shares of Common Stock issuable after such action upon exercise of the Warrants evidenced by this
Warrant Certificate, together with all shares of Common Stock then outstanding and all shares of
Common Stock then issuable upon the exercise of all outstanding options, warrants,
conversion and other rights, would exceed the total number of shares of Common Stock then
authorized by its Charter.

     18. Notices. Unless this Warrant Certificate is a Global Warrant, any notice or
communication mailed to the Warrantholder shall be mailed to the Warrantholder at the
Warrantholder’s address as it appears in the Registry and shall be sufficiently given if so mailed
within the time prescribed. Any notice to holders of a beneficial interest in a Global Warrant
shall be distributed through the Depositary in accordance with the procedures of the Depositary.
Communications to such holders shall be deemed to be effective at the time of dispatch to the
Depositary.

[Remainder of page intentionally left blank]

14

 

     IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed
by a duly authorized officer. This Warrant Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Warrant Agent.

Dated: _______________

	 	 	 	 	 
	 	CITIGROUP INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Countersigned:

COMPTERSHARE TRUST COMPANY, N.A.

AND COMPUTERSHARE INC.

Collectively, as Warrant Agent

	 	 	 	 	 
	By:  	 	 
	 	Authorized Signatory 	 
	 	 	 

15

 

	 	 	 	 	 

Schedule A to Global Warrant

     The initial number of Warrants represented by the Global Warrant is 255,033,142.

     The following decreases in the number of Warrants represented by this Global Warrant have been
made as a result of the exercise of certain Warrants represented by this Global Warrant:

	 	 	 	 	 	 	 
	 	 	 	 	Total Number of Warrants	 	 
	Date of Exercise	 	Number of	 	Represented Hereby	 	Notation Made
	of Warrants	 	Warrants Exercised	 	Following Such Exercise	 	by Warrant Agent
	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 

1

 

Form of Notice of Exercise

(to be executed only upon exercise of Warrants)

Date: _________

TO:  Citigroup Inc. (the “Company”)

RE:  Election to Purchase Common Stock

     The undersigned registered holder of [________] Warrants irrevocably elects to exercise the
number of Warrants set forth below represented by the Global Warrant (or, in the case of a
Definitive Warrant, the Warrant Certificate enclosed herewith), and surrenders all right, title and
interest in the number of Warrants exercised hereby to the Company, and directs that the shares of
Common Stock or other securities or property delivered upon exercise of such Warrants, and any
interests in the Global Warrant or Definitive Warrant representing unexercised Warrants, be
registered or placed in the name and at the address specified below and delivered thereto.

Number of Warrants                                 

	 	 	 	 	 
	 	Holder: 	 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature guaranteed by (if a guarantee is required):

1

 

Securities and/or check to be issued to:

If in book-entry form through the Depositary:

	 	 	 

	Depositary Account Number:
	 	 
	 

	 	 
	 
	 	 
	Name of Agent Member:
	 	 
	 

	 	 

If in definitive form:

	 	 	 

	Social Security Number 

or Other Identifying Number:
	 	 
	 

	 	 
	 
	 	 
	Name:
	 	 
	 

	 	 
	 
	 	 
	Street Address:
	 	 
	 

	 	 
	 
	 	 
	City, State and Zip Code:
	 	 
	 

	 	 

Any unexercised Warrants evidenced by the exercising Warrantholder’s interest in the Global Warrant
or Definitive Warrant, as the case may be, to be issued to:

If in book-entry form through the Depositary:

	 	 	 

	Depositary Account Number:
	 	 
	 

	 	 
	 
	 	 
	Name of Agent Member:
	 	 
	 

	 	 

If in definitive form:

	 	 	 

	 Social Security Number 

or Other Identifying Number:
	 	 
	 

	 	 
	 
	 	 
	 Name:
	 	 
	 

	 	 
	 
	 	 
	Street Address:
	 	 
	 

	 	 
	 
	 	 
	City, State and Zip Code:
	 	 
	 

	 	 

2

 

Form of Assignment

     For value received, the undersigned registered Warrantholder of the within Warrant Certificate
hereby sells, assigns and transfers unto the Assignee(s) named below (including the undersigned
with respect to any Warrants constituting a part of the Warrants evidenced by the within Warrant
Certificate not being assigned hereby) all of the right, title and interest of the undersigned
under the within Warrant Certificate with respect to the number of Warrants set forth below.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Social Security
	 	 	 	 	 	 	Number
	 	 	 	 	 	 	or other Identifying
	Name of Assignees	 	Address	 	Number of Warrants	 	Number
	 
	 	 
	 	 
	 	 

and does irrevocably constitute and appoint [___________], the undersigned’s attorney, to make
such transfer on the books of the Company maintained for the purpose, with full power of
substitution in the premises.

Dated:

	 	 	 	 	 
	 	Holder: 	 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature guaranteed by (if a guarantee is required):

3Exhibit 10.1

Exhibit 10.1

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (this “Agreement”) is entered into as
of January 21, 2011 (the “Effective Date”) between BLUELINX CORPORATION, a Georgia
corporation (the “Company”), and George R. Judd (“Executive”).

RECITALS:

WHEREAS, the Company and Executive entered into an Employment Agreement dated October 29, 2008
(the “Prior Agreement”), pursuant to which Executive agreed to provide services to the Company and
the Company agreed to provide certain compensation and benefits to Executive; and

WHEREAS, the Company and Executive mutually desire to amend and completely restate the Prior
Agreement, to update the terms of Executive’s employment as the Chief Executive Officer of the
Company.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

1. Certain Definitions. Certain words or phrases with initial capital letters not
otherwise defined herein are to have the meanings set forth in Section 8.

2. Employment. The Company shall continue to employ Executive, and Executive accepts
continued employment with the Company upon the terms and conditions set forth in this Agreement for
the period beginning on the Effective Date and ending as provided in Section 5 (the “Employment
Period”).

3. Position and Duties.

(a) During the Employment Period, Executive shall serve as the Chief Executive Officer and
President of the Company and BlueLinx Holdings Inc. (“BHI”) and shall have the normal
duties, responsibilities and authority of an executive serving in such position, including those
duties described on Exhibit A hereto, subject to the power of the Board of Directors of
the Company (the “Company Board”) and the Board of Directors of BHI (the “BHI
Board”), to provide oversight and direction with respect to such duties, responsibilities and
authority, either generally or in specific instances. The Executive also shall hold similar
titles, offices and authority with BHI’s direct and indirect subsidiaries, as requested by the BHI
Board from time to time, subject to the oversight and direction of the respective boards of
directors of such entities.

(b) During the Employment Period, the Executive shall be included in the management’s slate
for election as a member of the BHI Board. Subject, as required, to reelection by BHI’s
stockholders, Executive shall serve as a member of the BHI Board with no additional remuneration
payable to Executive for that service. Upon the Date of Termination, Executive shall, at the BHI
Board’s request, resign from the Company Board, the BHI Board
and any other board or committee of the Company, BHI or any of their respective subsidiaries
or affiliates.

 

 

 

(c) During the Employment Period, Executive shall devote Executive’s reasonable best efforts
and Executive’s full professional time and attention (except for permitted vacation periods and
reasonable periods of illness or other incapacity) to the business and affairs of the Company, BHI
and their respective subsidiaries and affiliates. Executive shall perform Executive’s duties and
responsibilities to the best of Executive’s abilities in a diligent, trustworthy and business-like
manner. During the Employment Period, Executive shall not serve as a director or a principal of
another company or any charitable or civic organization without the Company Board’s prior consent.
Notwithstanding the foregoing, during the Employment Period, Executive may render charitable and
civic services so long as such services do not materially interfere with Executive’s ability to
discharge his duties hereunder.

(d) Executive shall perform Executive’s duties and responsibilities with his principal office
located in the Atlanta, Georgia metropolitan area.

4. Compensation and Benefits.

(a) Salary. The Company agrees to pay Executive a salary during the Employment
Period in installments based on the Company’s payroll practices as may be in effect from time to
time. The Executive’s salary is currently set at the rate of $650,000 per year (“Base
Salary”). Base Salary shall be reviewed at least annually and may be increased at the sole
discretion of the BHI Board or the Compensation Committee of the BHI Board.

(b) Annual Bonus.

(i) Executive shall be eligible to receive an annual bonus, with the annual bonus target to be
100% of Base Salary (i.e., 100% upon achievement of annual “target” performance goals) and a
maximum of 200% of Base Salary (i.e., 200% upon achievement of annual “maximum” performance goals),
with the “target” and “maximum” based upon satisfaction of performance goals and bonus criteria to
be defined and approved by the Compensation Committee of the BHI Board in advance for each fiscal
year. The Company shall pay any such annual bonus earned to Executive in accordance with the terms
of the applicable bonus plan, but in no event later than March 15 of the calendar year following
the calendar year in which such bonus is earned and vested.

(ii) During the Employment Period, Executive will be eligible to participate in long term
incentive programs of the Company and BHI now or hereafter made available to senior executives, in
accordance with the provisions thereof as in effect from time to time, and as deemed appropriate by
the Compensation Committee to be applicable to this position.

(c) Expense Reimbursement. The Company shall reimburse Executive for all reasonable
expenses incurred by Executive during the Employment Period in the course of performing
Executive’s duties under this Agreement in accordance with the Company’s policies in effect from
time to time with respect to travel, entertainment and other business expenses, and subject to the
Company’s requirements applicable generally with respect to
reporting and documentation of such expenses and subject to the Reimbursement Rules. In
order to be entitled to expense reimbursement, the Executive must be employed as Chief Executive
Officer and President on the date the Executive incurred the expense.

 

2

 

(d) Standard Executive Benefits Package. Executive is entitled during the Employment
Period to participate, on the same basis as the Company’s other senior executives, in the
Company’s Standard Executive Benefits Package. The Company’s “Standard Executive Benefits
Package” means those benefits (including insurance, vacation and other benefits, but
excluding, except as hereinafter provided in Section 6, any severance pay program or policy of the
Company) for which substantially all of the executives of the Company are from time to time
generally eligible, as determined from time to time by the Board. A summary of such benefits
available to Executive as in effect on the date of this Agreement is attached hereto as
Exhibit B.

(e) Additional Compensation/Benefits. The Compensation Committee of the BHI Board,
in its sole discretion, will determine any compensation or benefits to be provided to Executive
during the Employment Period other than as set forth in this Agreement, including, without
limitation, any future grant of stock options or other equity awards.

(f) Disgorgement of Compensation. If BHI or the Company is required to prepare an
accounting restatement due to material noncompliance by BHI or the Company, as a result of
misconduct, with any financial reporting requirement under the federal securities laws, to the
extent required by law Executive will reimburse the Company for (i) any bonus or other
incentive-based or equity-based compensation received by Executive from the Company (including such
compensation payable in accordance with this Section 4 and Section 6) during the 12-month period
following the first public issuance or filing with the Securities and Exchange Commission
(whichever first occurs) of the financial document embodying that financial reporting requirement;
and (ii) any profits realized by Executive from the sale of BHI’s securities during that 12-month
period.

5. Employment Period.

(a) Subject to subsection 5(b), the Employment Period will commence on the Effective Date and
will continue until, and will end upon January 21, 2013 (the “Initial Term”). The
Agreement shall automatically be extended for successive one year terms (each, a “Renewal
Term”), unless either party shall have given the other written notice of non-extension at
least 90 days prior the expiration of the Initial Term or any Renewal Term.

(b) Notwithstanding subsection 5(a), the Employment Period will end upon the first to occur of
any of the following events: (i) Executive’s death; (ii) the Company’s termination of Executive’s
employment on account of Disability; (iii) the Company’s termination of Executive’s employment for
Cause (a “Termination for Cause”); (iv) the Company’s termination of Executive’s employment
without Cause (a “Termination without Cause”); (v) Executive’s termination of Executive’s
employment for Good Reason (a “Termination for Good Reason”); or (vi) Executive’s
termination of Executive’s employment for any reason other than Good Reason (a “Voluntary
Termination”).

 

3

 

(c) Any termination of Executive’s employment under subsection 5(b) (other than 5(b)(i)) must
be communicated by a Notice of Termination delivered by the Company or Executive, as the case may
be, to the other party.

(d) Executive will be deemed to have waived any right to a Termination for Good Reason based
on the occurrence or existence of a particular event or circumstance constituting Good Reason
unless Executive delivers a Notice of Termination within 45 days from the date the BHI Board first
made Executive aware of the event or circumstance.

6. Post-Employment Period Payments.

(a) Except as otherwise provided in 6(c) below, at the Date of Termination, Executive will be
entitled to (i) any Base Salary that has accrued but is unpaid, any annual bonus that has been
earned for the fiscal year prior to the year in which the Date of Termination occurs, but is
unpaid, any reimbursable expenses that have been incurred but are unpaid, and any unexpired
vacation days that have accrued under the Company’s vacation policy but are unused, as of the end
of the Employment Period, which amount shall be paid in a lump sum in cash within 30 days of the
Date of Termination in accordance with the Reimbursement Rules, where applicable, (ii) any plan
benefits that by their terms extend beyond termination of Executive’s employment (but only to the
extent provided in any such benefit plan in which Executive has participated as a Company employee
and excluding, except as hereinafter provided in Section 6, any Company severance pay program or
policy) and (iii) any benefits to which Executive is entitled in accordance with Part 6 of Subtitle
B of Title I of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”).
Except as specifically described in this subsection 6(a) and in the succeeding subsections of this
Section 6 (under the circumstances described in those succeeding subsections), from and after the
Date of Termination Executive shall cease to have any rights to salary, bonus, expense
reimbursements or other benefits from the Company, BHI or any of their subsidiaries or affiliates.

(b) If Executive’s employment terminates on account of Executive’s death, Disability,
Voluntary Termination or Termination for Cause in accordance with Section 5(a), the Company will
make no further payments to Executive except as contemplated in subsection 6(a).

(c) If Executive’s employment terminates on account of a Termination without Cause or a
Termination for Good Reason, Executive shall be entitled to the following:

(i) payment equal to one (1) time the Executive’s annual Base Salary in effect immediately
prior to the Date of Termination, plus one (1) time the cash bonus amount equal to the
Target Bonus set forth in clause (i) of subsection 4(b) hereof for the fiscal year prior to the
year of termination of Executive’s employment, payable in twelve equal monthly installments
commencing on the earlier to occur of the first business day of the seventh month after the Date of
Termination or Executive’s death;

(ii) automatic vesting of all unvested restricted stock grants effective as of the Date of
Termination;

 

4

 

(iii) continued participation in the Company’s medical and dental plans, on the same basis as
active employees participate in such plans, until the earlier of (1)
Executive’s eligibility for any such coverage under another employer’s or any other medical or
dental insurance plans or (2) the first anniversary of the Date of Termination; except that in the
event that participation in any such plan is barred, the Company shall reimburse Executive on a
monthly basis in accordance with the Reimbursement Rules for any premiums paid by Executive to
obtain benefits (for Executive and his dependents) equivalent to the benefits he is entitled to
receive under the Company’s benefit plans. Executive agrees that the period of coverage under such
plans (or the period of reimbursement if participation is barred) shall count against the plans’
obligation to provide continuation coverage pursuant to COBRA;

(iv) up to $25,000 in aggregate outplacement services to be used within one year of the Date
of Termination, the scope and provider of which shall be selected by Executive in his sole
discretion; and

(v) to the extent not theretofore paid or provided, any other amounts or benefits required to
be paid or provided or which the Executive is eligible to receive under any plan, program, policy
or practice or contract or agreement of the Company (such other amounts and benefits shall be
hereinafter referred to as the “Other Benefits”).

(d) The Company shall have no obligation to make any payments in accordance with subsection
6(c) if Executive declines to sign and return a Release Agreement or revokes the Release Agreement
within the time provided in the Release Agreement.

(e) Executive is not required to mitigate the amount of any payment or benefit provided for in
this Agreement by seeking other employment or otherwise.

7. Competitive Activity; Confidentiality; Non-solicitation.

(a) Confidential Information and Trade Secrets.

(i) The Executive shall hold in a fiduciary capacity for the benefit of the Company and BHI
all Confidential Information and Trade Secrets. During his employment with the Company and for a
period of five years following the termination of the Executive’s employment for any reason, the
Executive shall not, without the prior written consent of the Company or BHI or as may otherwise be
required by law or legal process, communicate or divulge Confidential Information; provided,
however, that if the Confidential Information is deemed a trade secret under Georgia law, then the
period for nondisclosure shall continue for the applicable period under Georgia Trade Secret laws
in effect at the time of Executive’s termination. In addition, except as necessary to perform his
duties for the Company, during Executive’s employment and thereafter for the applicable period
under Georgia Trade Secret laws in effect at the time of Executive’s termination, Executive will
not, directly or indirectly, transmit or disclose any Trade Secrets to any person or entity, and
will not, directly or indirectly, make use of any Trade Secrets, for himself or any other person or
entity, without the express written consent of the Company. This provision will apply for so long
as a particular Trade Secret retains its status as a trade secret under applicable law. The
protection afforded to Trade Secrets and/or Confidential Information by this Agreement is not
intended by the parties hereto to limit, and is intended to be in addition to, any protection
provided to any such information under any applicable federal, state or local law.

 

5

 

(ii) All files, records, documents, drawings, specifications, data, computer programs,
customer or vendor lists, specific customer or vendor information, marketing techniques, business
strategies, contract terms, pricing terms, discounts and management compensation of the Company,
BHI or any of their respective subsidiaries and affiliates, whether prepared by the Executive or
otherwise coming into the Executive’s possession, shall remain the exclusive property of the
Company, BHI or any of their respective subsidiaries and affiliates, and the Executive shall not
remove any such items from the premises of the Company, BHI or any of their respective subsidiaries
and affiliates, except in furtherance of the Executive’s duties.

(iii) It is understood that while employed by the Company, the Executive will promptly
disclose to the Company in writing, and assign to the Company the Executive’s interest in any
invention, improvement, copyrightable material or discovery made or conceived by the Executive,
either alone or jointly with others, which arises out of the Executive’s employment (“Executive
Invention”). At the Company’s request and expense, the Executive will reasonably assist the
Company, BHI or any of their respective subsidiaries and affiliates during the period of the
Executive’s employment by the Company and thereafter in connection with any controversy or legal
proceeding relating to an Executive Invention and in obtaining domestic and foreign patent or other
protection covering an Executive Invention. As a matter of record, Executive hereby states that he
or she has provided below a list of all unpatented inventions in which Executive owns all or
partial interest. Executive agrees not to assert any right against BHI with respect to any
invention which is not patented or which is not listed.

(iv) As requested by the Company and at the Company’s expense, from time to time and upon the
termination of the Executive’s employment with the Company for any reason, the Executive will
promptly deliver to the Company, BHI or any of their respective subsidiaries and affiliates all
copies and embodiments, in whatever form, of all Confidential Information in the Executive’s
possession or within his control (including, but not limited to, memoranda, records, notes, plans,
photographs, manuals, notebooks, documentation, program listings, flow charts, magnetic media,
disks, diskettes, tapes and all other materials containing any Confidential Information)
irrespective of the location or form of such material. If requested by the Company, the Executive
will provide the Company with written confirmation that all such materials have been delivered to
the Company as provided herein.

(b) Non-Solicitation. During his employment with the Company and for a period of one
year following the termination of the Executive’s employment for any reason, the Executive shall
not solicit or attempt to solicit, (a) any party who is a customer of the Company, BHI or any of
their respective subsidiaries and affiliates and with which Executive had contact while employed
with the Company, for the purpose of marketing, selling or providing to any such party any services
or products offered by the Company, BHI or any of their respective subsidiaries and affiliates to
such customer other than general solicitations to the public and not directed specifically at a
customer of the Company, (b) any party who is a vendor of the Company, BHI or any of their
respective subsidiaries and affiliates to sell similar products and with which Executive had
contact while employed with the Company or (c) any employee of the Company, BHI or any of their
respective subsidiaries and affiliates to terminate such employee’s employment relationship with
the Company, BHI and any of their respective subsidiaries and
affiliates in order, in either case, to enter into a similar relationship with the Executive,
or any other person or any entity in competition with the Company, BHI or any of their respective
subsidiaries and affiliates (other than with respect to general employment solicitations to the
public and not directed specifically at employees of the Company, BHI and any of their respective
subsidiaries and affiliates).

 

6

 

(c) Non-Competition. During Executive’s employment by the Company and, if the
Executive is terminated pursuant to Section 6(c) or in the event of Executive’s Voluntary
Termination, for a period of one year following the termination of the Executive’s employment (the
“Restricted Period”), the Executive shall not render services substantially the same as the
services rendered by Executive to the Company to any person or entity that engages in or owns,
invests in, operates, manages or controls any venture or enterprise which engages or proposes to
engage in the building products distribution business in the United States (the
“Business”). Notwithstanding anything to the contrary herein, during the Restricted
Period, in no event shall Executive render services substantially the same as the services rendered
by Executive to the Company to the Company’s competitors listed on Exhibit C hereto or any
of their subsidiaries or affiliates. Notwithstanding the foregoing, nothing in this Agreement
shall prevent the Executive from owning for passive investment purposes not intended to circumvent
this Agreement, less than five percent (5%) of the publicly traded voting securities of any company
engaged in the Business (so long as the Executive has no power to manage, operate, advise, consult
with or control the competing enterprise and no power, alone or in conjunction with other
affiliated parties, to select a director, manager, general partner, or similar governing official
of the competing enterprise other than in connection with the normal and customary voting powers
afforded the Executive in connection with any permissible equity ownership).

(d) Remedies; Specific Performance. The parties acknowledge and agree that the
Executive’s breach or threatened breach of any of the restrictions set forth in this Section 7 will
result in irreparable and continuing damage to the Company, BHI and their respective subsidiaries
and affiliates for which there may be no adequate remedy at law and that the Company and BHI shall
be entitled to equitable relief, including specific performance and injunctive relief as remedies
for any such breach or threatened or attempted breach. The Executive hereby consents to the grant
of an injunction (temporary or otherwise) against the Executive or the entry of any other court
order against the Executive prohibiting and enjoining him from violating, or directing him to
comply with any provision of this Section 7. The Executive also agrees that such remedies shall be
in addition to any and all remedies, including damages, available to the Company and BHI against
him for such breaches or threatened or attempted breaches. In addition, without limiting the
remedies of the Company and BHI for any breach of any restriction on the Executive set forth in
this Section 7, except as required by law, the Executive shall not be entitled to any payments set
forth in Section 6 hereof if the Executive breaches the covenant applicable to the Executive
contained in this Section 7 and the Company, BHI and their respective subsidiaries and affiliates
will have no obligation to pay any of the amounts that remain payable by the Company under Section
6.

(e) Communication of Contents of Agreement. During Executive’s employment and for one
year thereafter, Executive will communicate his obligations under this Section 7 to any person,
firm, association, partnership, corporation or other entity which Executive intends to be employed
by, associated with, or represent.

 

7

 

(f) The existence of any claim, demand, action or cause of action of Executive against the
Company, whether predicated upon this Agreement or otherwise, is not to constitute a defense to the
Company’s enforcement of any of the covenants or agreements contained in Section 7. The Company’s
rights under this Agreement are in addition to, and not in lieu of, all other rights the Company
may have at law or in equity to protect its confidential information, trade secrets and other
proprietary interests.

(g) Extension. If a court of competent jurisdiction finally determines that Executive
has violated any of Executive’s obligations under this Section 7, then the period applicable to
those obligations is to automatically be extended by a period of time equal in length to the period
during which those violations occurred.

8. Definitions.

(a) “Cause” means, as determined by the BHI Board in good faith:

(i) a Material Breach of the duties and responsibilities of Executive;

(ii) Executive’s (x) commission of a felony or (y) commission of any misdemeanor involving
willful misconduct (other than minor violations such as traffic violations) if such misdemeanor
causes material damage to the property, business or reputation of BHI or the Company or their
respective subsidiaries and affiliates;

(iii) acts of dishonesty by Executive resulting or intending to result in personal gain or
enrichment at the expense of the Company, BHI or their respective subsidiaries and affiliates;

(iv) Executive’s Material Breach of any provision of this Agreement;

(v) Executive’s failure to follow the lawful written directions of the Company Board or the
BHI Board;

(vi) conduct by Executive in connection with his duties hereunder that is fraudulent, unlawful
or willful and materially injurious to the Company, BHI or their respective subsidiaries and
affiliates;

(vii) Executive’s engagement in habitual insobriety or the use of illegal drugs or substances;

(viii) Executive’s failure to cooperate fully, or failure to direct the persons under
Executive’s management or direction, or employed by, or consultants or agents to, the Company (or
its subsidiaries and affiliates) to cooperate fully, with all corporate investigations or
independent investigations by the Board or the BHI Board, all governmental investigations of the
Company or its subsidiaries and affiliates, and all orders involving Executive or the Company (or
its subsidiaries and affiliates) entered by a court of competent jurisdiction;

 

8

 

(ix) Executive’s material violation of BHI’s Code of Conduct (including as applicable to
senior executive officers), or any successor codes;

(x) Executive’s engagement in activities prohibited by Section 7; or

(xi) Notwithstanding the foregoing, no termination of the Executive’s employment shall be for
Cause until (a) there shall have been delivered to the Executive a copy of a written notice setting
forth the basis for such termination in reasonable detail, and (b) the Executive shall have been
provided an opportunity to be heard in person by the BHI Board (with the assistance of the
Executive’s counsel if the Executive so desires). No act, or failure to act, on the Executive’s
part shall be considered “willful” unless the Executive has acted or failed to act with a lack of
good faith and with a lack of reasonable belief that the Executive’s action or failure to act was
in the best interests of the Company. Any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the BHI Board or the Company Board or based upon the
advice of counsel for BHI or the Company shall be conclusively presumed to be done, or omitted to
be done, by the Executive in good faith and in the best interests of the Company. Any termination
of the Executive’s employment by the Company hereunder shall be deemed to be a termination other
than for Cause unless it meets all requirements of this Section 8(a)(xi).

(b) “Confidential Information” means knowledge or data relating to the Company, BHI or
any of their respective subsidiaries and affiliates, and their respective businesses that is not
generally known to persons not employed by the Company, BHI or any of their respective subsidiaries
and affiliates, is not generally disclosed by the Company, BHI or any of their respective
subsidiaries and affiliates, and is the subject of reasonable efforts to keep it confidential.
Confidential Information includes, but is not limited to, information regarding product or service
cost or pricing, information regarding personnel allocation or organizational structure,
information regarding the business operations or financial performance of the Company, BHI or any
of their respective subsidiaries and affiliates, sales and marketing plans, and strategic
initiatives (independent or collaborative), information regarding existing or proposed methods of
operation, current and future development and expansion or contraction plans, sale/acquisition
plans and non-public information concerning the legal or financial affairs of the Company, BHI or
any of their respective subsidiaries and affiliates. Confidential Information does not include
information that has become generally available to the public by the act of one who has the right
to disclose such information without violating any right or privilege of the Company, BHI or any of
their respective subsidiaries and affiliates. This definition is not intended to limit any
definition of confidential information or any equivalent term under applicable federal, state or
local law.

(c) “Date of Termination” means (i) if Executive’s employment is terminated by the
Company for Disability, 30 days after the Company gives Notice of Termination to Executive
(provided that Executive has not returned to the performance of Executive’s duties on a full-time
basis during this 30-day period), (ii) if Executive’s employment is terminated by Executive for
Good Reason, the date specified in the Notice of Termination (but in no event prior to 30 days
following the delivery of the Notice of Termination), and (iii) if Executive’s employment is
terminated by the Company for any other reason, the date on which a Notice of Termination is given;
except that if within 30 days after any Notice of Termination is
given to Executive by the Company, Executive notifies the

 

9

 

 Company that a dispute exists concerning the termination, the
Date of Termination is to be the date the dispute is finally determined, whether by mutual written
agreement of the parties or upon final judgment, order or decree of a court of competent
jurisdiction (the time for appeal thereof having expired and no appeal having been perfected). A
termination of employment shall not be deemed to have occurred for purposes of any provision of
this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon or
following a termination of employment unless such termination is also a “separation from service”
within the meaning of Section 409A.

(d) “Disability” means the determination by the Company, in accordance with applicable
law, based on information provided by a physician selected by the Company or its insurers and
reasonably acceptable to Executive or Executive’s legal representative that, as a result of a
physical or mental injury or illness, Executive has been unable to perform the essential functions
of his job with or without reasonable accommodation for a period of (i) 90 consecutive days or (ii)
180 days in any one-year period. Notwithstanding the foregoing, in the event that as a result of
absence because of mental or physical incapacity the Executive incurs a “separation from service”
within the meaning of the term under Section 409A of the Internal Revenue Code of 1986, as amended
(“Section 409A”), the Executive shall on such date automatically be terminated from employment
because of Disability.

(e) “Good Reason” means, without the consent of Executive, (A) the assignment to
Executive of any duties inconsistent in any material adverse respect with Executive’s position
(including offices, titles and reporting requirements), authority, duties or responsibilities
immediately following the Effective Date, or any other action by the Company which results in a
material diminution in such position, authority, duties or responsibilities; (B) a material
reduction by the Company in Executive’s Base Salary or annual bonus opportunity, other than
pursuant to a reduction generally applicable to senior executives of the Company; (C) the Company’s
requiring Executive to be based at any office or location outside of the metropolitan area of
Atlanta, Georgia; or (D) any failure by the Company to comply with and satisfy the requirements for
any assignment of its rights and obligations under Section 13. Notwithstanding the foregoing,
“Good Reason” shall not be deemed to exist for purposes of (A) through (D) if the event or
circumstances are rescinded or remedied by the Company within thirty (30) days after receipt of
notice thereof given by Executive.

(f) “Material Breach” means an intentional act or omission by Executive which
constitutes substantial non-performance of Executive’s obligations under this Agreement and causes
material damage to the Company.

(g) “Notice of Termination” means a written notice that indicates those specific
termination provisions in this Agreement relied upon and that sets forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of Executive’s employment under
the provision so indicated. For purposes of this Agreement, no purported termination by either
party is to be effective without a Notice of Termination.

 

10

 

(h) “Reimbursement Rules” means the requirement that any amount of expenses eligible
for reimbursement under this Agreement be made (i) in accordance with the reimbursement payment
date set forth in the applicable provision of the Agreement providing
for the reimbursement or (ii) where the applicable provision does not provide for a
reimbursement date, thirty (30) calendar days following the date on which Executive incurs the
expense, but, in each case, no later than December 31 of the year following the year in which the
Executive incurs the related expenses; provided, that in no event shall the reimbursements or
in-kind benefits to be provided by the Company in one taxable year affect the amount of
reimbursements or in-kind benefits to be provided in any other taxable year, nor shall the
Executive’s right to reimbursement or in-kind benefits be subject to liquidation or exchange for
another benefit.

(i) “Release Agreement” means an agreement, substantially in a form approved by the
Company, pursuant to which Executive releases all current or future claims, known or unknown,
arising on or before the date of the release against the Company, its subsidiaries and its
officers.

(j) “Standard Executive Benefits Package” means those benefits (including, without
limitation, retirement, insurance and other welfare benefits, but excluding, except as provided in
Section 6, any severance pay program or policy of the Company) for which substantially all of the
Company’s senior executives are from time to time generally eligible, as determined from time to
time by the Board.

(k) “Trade Secrets” means all secret, proprietary or confidential information
regarding the Company, BHI or any of their respective subsidiaries and affiliates or that meets the
definition of “trade secrets” within the meaning set forth in O.C.G.A. § 10-1-761.

9. Executive Representations. Executive represents to the Company that (a) the
execution, delivery and performance of this Agreement by Executive does not and will not conflict
with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment
or decree to which Executive is a party or by which Executive is bound, (b) Executive is not a
party to or bound by any employment agreement, noncompete agreement or confidentiality agreement
with any other person or entity and (c) upon the execution and delivery of this Agreement by the
Company, this Agreement will be the valid and binding obligation of Executive, enforceable in
accordance with its terms.

10. Withholding of Taxes. The Company shall withhold from any amounts payable under
this Agreement all federal, state, city or other taxes that the Company is required to withhold
under any applicable law, regulation or ruling.

11. Section 409A.

(a) Notwithstanding any provisions of this Agreement to the contrary, if the Executive is a
“specified employee” (within the meaning of Section 409A and determined pursuant to procedures
adopted by the Company) at the time of his separation from service (within the meaning of Section
409A) and if any portion of the payments or benefits to be received by the Executive upon
separation from service would be considered deferred compensation under Section 409A, amounts that
would otherwise be payable pursuant to this Agreement during the six-month period immediately
following the Executive’s separation from service (the “Delayed Payments”) and benefits
that would otherwise be provided pursuant to this Agreement (the
“Delayed Benefits”) during the six-month period

 

11

 

immediately following
the Executive’s separation from service (such period, the “Delay Period”) shall instead be
paid or made available on the earlier of (i) the first business day of the seventh month following
the date of the Executive’s separation from service or (ii) Executive’s death (the applicable date,
the “Permissible Payment Date”). The Company shall also reimburse the Executive for the
after-tax cost incurred by the Executive in independently obtaining any Delayed Benefits (the
“Additional Delayed Payments”).

(b) With respect to any amount of expenses eligible for reimbursement under Section 6(a), such
expenses shall be reimbursed by the Company within thirty (30) calendar days following the date on
which the Company receives the applicable invoice from the Executive but in no event later than
December 31 of the year following the year in which the Executive incurs the related expenses;
provided, that with respect to reimbursement relating to the Additional Delayed Payments, such
reimbursement shall be made on the Permissible Payment Date. In no event shall the reimbursements
or in-kind benefits to be provided by the Company in one taxable year affect the amount of
reimbursements or in-kind benefits to be provided in any other taxable year, nor shall the
Executive’s right to reimbursement or in-kind benefits be subject to liquidation or exchange for
another benefit.

(c) Each payment under this Agreement shall be considered a “separate payment” and not of a
series of payments for purposes of Section 409A.

(d) Any Delayed Payments shall bear interest at the United States 5-year Treasury Rate plus
2%, which accumulated interest shall be paid to the Executive on the Permissible Payment Date.

12. Excess Parachute Payments.

(a) In the event that it shall be determined, based upon the advice of the independent public
accountants for BHI or the Company (the “Accountants”), that any payment, benefit or
distribution by the Company, BHI or any of their respective subsidiaries or affiliates (a
“Payment”) constitute “parachute payments” under Section 280G(b)(2) of the Code, as
amended, then, if the aggregate present value of all such Payments (collectively, the
“Parachute Amount”) exceeds 2.99 times the Executive’s “base amount”, as defined in Section
280G(b)(3) of the Code (the “Executive Base Amount”), the amounts constituting “parachute payments”
which would otherwise be payable to or for the benefit of Executive shall be reduced to the extent
necessary so that the Parachute Amount is equal to 2.99 times the Executive Base Amount (the
“Reduced Amount”); provided that such amounts shall not be so reduced if the Executive
determines, based upon the advice of the Accountants, that without such reduction Executive would
be entitled to receive and retain, on a net after tax basis (including, without limitation, any
excise taxes payable under Section 4999 of the Code), an amount which is greater than the amount,
on a net after tax basis, that the Executive would be entitled to retain upon his receipt of the
Reduced Amount.

 

12

 

(b) If the determination made pursuant to clause (a) of this Section 12 results in a reduction
of the payments that would otherwise be paid to Executive except for the application
of clause (a) of this Section 12, Executive may then elect, in his sole discretion, which and
how much of any particular entitlement shall be eliminated or reduced and shall advise the Company
in writing of his election within ten days of the determination of the reduction in payments. If
no such election is made by Executive within such ten-day period, the Company may elect which and
how much of any entitlement shall be eliminated or reduced and shall notify Executive promptly of
such election.

(c) As a result of the uncertainty in the application of Section 280G of the Code at the time
of a determination hereunder, it is possible that payments will be made by the Company which
should not have been made under clause (a) of this Section 12 (“Overpayment”) or that
additional payments which are not made by the Company pursuant to clause (a) of this Section 12
should have been made (“Underpayment”). In the event that there is a final determination
by the Internal Revenue Service, or a final determination by a court of competent jurisdiction,
that an Overpayment has been made, any such Overpayment shall be repaid by Executive to the
Company together with interest at the applicable Federal rate provided for in Section 7872(f)(2)
of the Code. In the event that there is a final determination by the Internal Revenue Service, a
final determination by a court of competent jurisdiction or a change in the provisions of the Code
or regulations pursuant to which an Underpayment arises, any such Underpayment shall be promptly
paid by the Company to or for the benefit of Executive, together with interest at the applicable
Federal rate provided for in Section 7872(f)(2) of the Code.

13. Successors and Assigns. This Agreement is to bind and inure to the benefit of and
be enforceable by Executive, the Company and their respective heirs, executors, personal
representatives, successors and assigns, except that neither party may assign any rights or
delegate any obligations hereunder without the prior written consent of the other party. Executive
hereby consents to the assignment by the Company of all of its rights and obligations under this
Agreement to any successor to the Company by merger or consolidation or purchase of all or
substantially all of the Company’s assets, provided that the transferee or successor assumes the
Company’s liabilities under this Agreement by agreement in form and substance reasonably
satisfactory to Executive.

14. Survival. Subject to any limits on applicability contained therein, Section 7
will survive and continue in full force in accordance with its terms notwithstanding any
termination of the Employment Period.

15. Choice of Law. This Agreement is to be governed by the internal law, and not the
laws of conflicts, of the State of Georgia.

16. Severability. Whenever possible, each provision of this Agreement is to be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, that invalidity, illegality or unenforceability is not
to affect any other provision or any other jurisdiction, and this Agreement is to be reformed,
construed and enforced in the jurisdiction as if the invalid, illegal or unenforceable provision
had never been contained herein.

 

13

 

17. Notices. Any notice provided for in this Agreement is to be in writing and is to
be either personally delivered, sent by reputable overnight carrier or mailed by first class mail,
return receipt requested, to the recipient at the address indicated as follows:

Notices to Executive:

To the address listed in the personnel records of the Company.

Notices to the Company:

BlueLinx Corporation

4300 Wildwood Parkway

Atlanta, Georgia 30339

Attention: Legal Department

Facsimile: (770) 953-7008

or any other address or to the attention of any other person as the recipient party shall have
specified by prior written notice to the sending party. Any notice under this Agreement is to be
deemed to have been given when so delivered, sent or mailed.

18. Amendment and Waiver. The provisions of this Agreement may be amended or waived
only with the prior written consent of the Company and Executive, and no course of conduct or
failure or delay in enforcing the provisions of this Agreement is to affect the validity, binding
effect or enforceability of this Agreement.

19. Complete Agreement. This Agreement embodies the complete agreement and
understanding between the parties with respect to the subject matter hereof and effective as of its
date supersedes and preempts any prior understandings, agreements or representations by or between
the parties, written or oral, that may have related to the subject matter hereof in any way,
including, but not limited to, any prior agreements with respect to Executive’s employment or
termination of employment with the Company.

20. Counterparts. This Agreement may be executed in separate counterparts, each of
which are to be deemed to be an original and both of which taken together are to constitute one and
the same agreement.

 

14

 

The parties are signing this Agreement as of the date stated in the introductory clause.

	 	 	 	 	 
	 	BLUELINX CORPORATION

 	 
	 	By:  	/s/ Dean Adelman
 	 
	 	 	Name:  	Dean Adelman 	 
	 	 	Title:  	Chief Administration Officer & Vice
President — Human Resources 	 
	 
	 	EXECUTIVE

 	 
	 	/s/ George R. Judd
 	 
	 	George R. Judd 	 

LIST OF UNPATENTED INVENTIONS

Executive represents that he or she has no such inventions by initialing below next to the word
“NONE.”

	 	 	 	 	 
	NONE:

	 	/s/ GRJ
 

	 	 

 

15

 

EXHIBIT A

EXECUTIVE’S DUTIES

Position Purpose Summary:

Executive team member, fully responsible for driving the assessment, planning and execution of plans for the Supply Chain
organization. Develops and runs the required end-to-end product supply chain capabilities in alignment with cost, customer
expectation, quality, reliability and other key company deliverables. Oversees operations and coordination between facilities
to maintain best-in-class service levels, optimized inventory management and efficiently utilized manufacturing resources.
Improves existing business systems and processes by working effectively across all functions, facilities and suppliers.
Provides direction and leadership in the continuing roll-out of the company’s articulated goals, values, vision and culture
while encouraging aggressive and prudent risk-oriented business activities by leaders and employees across the company.

KEY TASKS / RESPONSIBILITIES

	•	 	Understands the company’s vision, mission, and strategy; understands business unit objectives and sets/accomplishes
individual performance goals accordingly.

	 
	•	 	Establishes personal credibility with the executive team and leaders throughout the organization, through a deep
understanding of the business and strategic levers.

	 
	•	 	Partners with senior leadership team to build support for Supply Chain strategy and ensures alignment with overall
business plans.

	 
	•	 	Develops and executes strategies and contracts to manage the Company’s spend in critical areas involving supply,
operations and maintenance.

	 
	•	 	Oversees and improves national and international procurement strategies and optimize cost savings, delivery and
services.

	 
	•	 	Ensures a system is in place that identifies and mitigates various supply chain risks. Ensures there is a robust
process in place to ensure the company’s supplier business practices policies are enforced.

	 
	•	 	Establishes, measures, and monitors key metrics to evaluate the effectiveness of the Supply Chain organization.
Monitors core supply chain performance, including delivery against product and service level agreements and cost objectives.

	 
	•	 	Leads team; selects/hires; develops objectives; coaches and evaluates performance. Ensures direct reports obtain
applicable training and development opportunities to enhance performance, development, and contributions to the company. Holds
direct reports accountable for individual and team performance. Addresses performance issues appropriately and timely.

 

16

 

EXHIBIT B

EXECUTIVE BENEFITS PACKAGE

The following benefits will be provided as for other salaried employees

Salaried 401(k) Plan

Medical and Dental Insurance

The following benefits will be provided to Mr. Judd:

	 	•	 	Life Insurance — $1,000,000.00

	 
	 	•	 	Executive Annual Physical

	 
	 	•	 	Annual Country Club dues/auto allowance — $10,000.00

	 
	 	•	 	Annual tax/accounting allowance — up to $3,500.00

 

17

 

EXHIBIT C

COMPANY’S COMPETITORS

Weyerhauser

Boise Cascade

Georgia-Pacific

Louisiana Pacific

Norbord

Beacon Roofing Supply

Huttig

Universal Forest Products

Builders Firstsource

Watsco

Interline Brands

 

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]