Document:

Exhibit 10.9

                                                                         ANNEX V
                                                                              TO
                                                   SECURITIES PURCHASE AGREEMENT
                                                   <PROTOTYPE FOR EACH ISSUANCE>

                                 FORM OF WARRANT

      THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD
      OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
      FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE
      TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

                        MOBILE REACH INTERNATIONAL, INC.

                          COMMON STOCK PURCHASE WARRANT

            1. Issuance. In consideration of good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged by MOBILE REACH
INTERNATIONAL, INC., a Delaware corporation (the "Company"),
_____________________________ or registered assigns (the "Holder") is hereby
granted the right to purchase at any time after the Commencement Date (as
defined below) until 5:00 P.M., New York City time, on _____________, 200__(1)
(the "Expiration Date"), _________________ Thousand __________ (____________)(2)
fully paid and nonassessable shares of the Company's Common Stock, $0.0001 par
value per share (the "Common Stock"), at an initial exercise price per share
(the "Exercise Price") of $0.32 per share, subject to further adjustment as set
forth herein. This Warrant is being issued pursuant to the terms of that certain
Securities Purchase Agreement, dated as of February 27, 2004 (the "Agreement"),
to which the Company and Holder (or Holder's predecessor in interest) are
parties. Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in the Agreement. This Warrant was originally issued to the
Holder of the Holder's predecessor in interest on _____________, 2004(3) (the
"Issue Date").

----------
(1) Insert date which the last calendar of the month in which the second
anniversary of the Closing Date occurs.

(2) Insert number equal to 29,750 shares of Common Stock for each 100,000 Issue
Date Conversion Shares.

(3) Insert the Closing Date.
<PAGE>

            2. Exercise of Warrants.

                  2.1 General.

                  (a) This Warrant is exercisable in whole or in part at any
time and from time to time commencing on the Commencement Date and continuing
until and including the Expiration Date. Such exercise shall be effectuated by
submitting to the Company (either by delivery to the Company or by facsimile
transmission as provided in Section 8 hereof) a completed and duly executed
Notice of Exercise (substantially in the form attached to this Warrant
Certificate) as provided in this paragraph. The date such Notice of Exercise is
faxed to the Company shall be the "Exercise Date," provided that, if such
exercise represents the full exercise of the outstanding balance of the Warrant,
the Holder of this Warrant tenders this Warrant Certificate to the Company
within five (5) business days thereafter. The Notice of Exercise shall be
executed by the Holder of this Warrant and shall indicate (i) the number of
shares then being purchased pursuant to such exercise and (ii) if applicable,
whether the exercise is a cashless exercise. Upon surrender of this Warrant
Certificate, together with appropriate payment of the Exercise Price, if any,
for the shares of Common Stock purchased, the Holder shall be entitled to
receive a certificate or certificates for the shares of Common Stock so
purchased.

                  (b) If the Notice of Exercise form elects a "cashless"
exercise, the Holder shall thereby be entitled to receive a number of shares of
Common Stock equal to (w) the excess of the Current Market Value (as defined
below) over the total cash exercise price of the portion of the Warrant then
being exercised, divided by (x) the Market Price of the Common Stock as of the
Exercise Date. For the purposes of this Warrant, the terms (y) "Current Market
Value" shall be an amount equal to the Market Price of the Common Stock as of
the Exercise Date, multiplied by the number of shares of Common Stock specified
in such Notice of Exercise Form, and (z) "Market Price of the Common Stock"
shall be the average closing sale price per share of the Common Stock for the
five (5) Trading Days ending on the Trading Day immediately before the relevant
date, as reported by the Reporting Service for such dates.

                  (c) If the Notice of Exercise form elects a "cash" exercise,
the Exercise Price per share of Common Stock for the shares then being exercised
shall be payable in cash or by certified or official bank check.

                  (d) The Holder shall be deemed to be the holder of the shares
issuable to it in accordance with the provisions of this Section 2.1 (i) if a
cashless exercise was elected, on the Exercise Date, and (ii) if a cash exercise
was elected, on the date on which the Company receives the Exercise Price for
such shares.

                  (e) The term "Commencement Date" means the earlier of (i) the
date which is sixty-five (65) days after the Issue Date, or (ii) the Effective
Date.

                                       2                               2/19/04

<PAGE>

                  2.2 Limitation on Exercise. Notwithstanding the provisions of
this Warrant, the Agreement or of the other Transaction Agreements, in no event
(except (i) as specifically provided in this Warrant as an exception to this
provision, (ii) during the forty-five (45) day period prior to the Expiration
Date, or (iii) while there is outstanding a tender offer for any or all of the
shares of the Company's Common Stock) shall the Holder be entitled to exercise
this Warrant, or shall the Company have the obligation to issue shares upon such
exercise of all or any portion of this Warrant to the extent that, after such
exercise the sum of (1) the number of shares of Common Stock beneficially owned
by the Holder and its affiliates (other than shares of Common Stock which may be
deemed beneficially owned through the ownership of the unexercised portion of
the Warrants or other rights to purchase Common Stock or through the ownership
of the unconverted portion of the Debentures or other convertible securities),
and (2) the number of shares of Common Stock issuable upon the exercise of the
Warrants with respect to which the determination of this proviso is being made,
would result in beneficial ownership by the Holder and its affiliates of more
than 4.99% of the outstanding shares of Common Stock (after taking into account
the shares to be issued to the Holder upon such exercise). For purposes of the
proviso to the immediately preceding sentence, beneficial ownership shall be
determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the "1934 Act"), except as otherwise provided in clause (1) of
such sentence. The Holder, by its acceptance of this Warrant, further agrees
that if the Holder transfers or assigns any of the Warrants to a party who or
which would not be considered such an affiliate, such assignment shall be made
subject to the transferee's or assignee's specific agreement to be bound by the
provisions of this Section 2.2 as if such transferee or assignee were the
original Holder hereof.

            3. Reservation of Shares. The Company hereby agrees that at all
times during the term of this Warrant there shall be reserved for issuance upon
exercise of this Warrant one hundred ten percent (110%) of the number of shares
of its Common Stock as shall be required for issuance upon exercise of this
Warrant (the "Warrant Shares").

            4. Mutilation or Loss of Warrant. Upon receipt by the Company of
evidence satisfactory to it of the loss, theft, destruction or mutilation of
this Warrant, and (in the case of loss, theft or destruction) receipt of
reasonably satisfactory indemnification, and (in the case of mutilation) upon
surrender and cancellation of this Warrant, the Company will execute and deliver
a new Warrant of like tenor and date and any such lost, stolen, destroyed or
mutilated Warrant shall thereupon become void.

            5. Rights of the Holder. The Holder shall not, by virtue hereof, be
entitled to any rights of a stockholder in the Company, either at law or equity,
and the rights of the Holder are limited to those expressed in this Warrant and
are not enforceable against the Company except to the extent set forth herein.

                                       3                               2/19/04

<PAGE>

             6. Protection Against Dilution and Other Adjustments.

                  6.1 Adjustment Mechanism. If an adjustment of the Exercise
Price is required pursuant to this Section 6, the Holder shall be entitled to
purchase such number of shares of Common Stock as will cause (i) (x) the total
number of shares of Common Stock Holder is entitled to purchase pursuant to this
Warrant following such adjustment, multiplied by (y) the adjusted Exercise Price
per share, to equal the result of (ii) (x) the remaining total number of shares
of Common Stock Holder is entitled to purchase pursuant to this Warrant before
adjustment, multiplied by (y) the Exercise Price per share before adjustment.(4)

                  6.2 Capital Adjustments. In case of any stock split or reverse
stock split, stock dividend, reclassification of the Common Stock,
recapitalization, merger or consolidation (where the Company is not the
surviving entity), the provisions of this Section 6 shall be applied as if such
capital adjustment event had occurred immediately prior to the date of this
Warrant and the original Exercise Price had been fairly allocated to the stock
resulting from such capital adjustment; and in other respects the provisions of
this Section shall be applied in a fair, equitable and reasonable manner so as
to give effect, as nearly as may be, to the purposes hereof. A rights offering
to stockholders shall be deemed a stock dividend to the extent of the bargain
purchase element of the rights.

                  6.3 Adjustment for Spin Off. If, for any reason, prior to the
exercise of this Warrant in full, the Company spins off or otherwise divests
itself of a part of its business or operations or disposes all or of a part of
its assets in a transaction (the "Spin Off") in which the Company does not
receive compensation for such business, operations or assets, but causes
securities of another entity (the "Spin Off Securities") to be issued to
security holders of the Company, then the Company shall cause (i) to be reserved
Spin Off Securities equal to the number thereof which would have been issued to
the Holder had all of the Holder's unexercised Warrants outstanding on the
record date (the "Record Date") for determining the amount and number of Spin
Off Securities to be issued to security holders of the Company (the "Outstanding
Warrants") been exercised as of the close of business on the Trading Day
immediately before the Record Date (the "Reserved Spin Off Shares"), and (ii) to
be issued to the Holder on the exercise of all or any of the Outstanding
Warrants, such amount of the Reserved Spin Off Shares equal to (x) the Reserved
Spin Off Shares, multiplied by (y) a fraction, of which (I) the numerator is the
amount of the Outstanding Warrants then being exercised, and (II) the
denominator is the amount of the Outstanding Warrants.

                  6.4 Adjustment for Certain Transactions. Reference is made to
the provisions of Section 4(g) of the Agreement, the terms of which are
incorporated herein by

----------
(4) Example: Assume 10,000 shares remain under Warrant at original stated
Exercise Price of $0.32. Total exercise price (clause (y) in text) is (i) 10,000
x (ii) $0.32, or $3,200. Company effects 2:1 stock split. Exercise Price is
adjusted to $0.16. Number of shares covered by Warrant is adjusted to 20,000,
because (applying clause (x) in text) (i) 20,000 x (ii) $0.16 = $3,200.

                                       4                               2/19/04

<PAGE>

reference. The number of shares covered by this Warrant and the Exercise Price
shall be adjusted as provided in the applicable provisions of said Section 4(g)
of the Agreement.

             7. Transfer to Comply with the Securities Act; Registration Rights.

                  7.1 Transfer. This Warrant has not been registered under the
Securities Act of 1933, as amended, (the "Act") and has been issued to the
Holder for investment and not with a view to the distribution of either the
Warrant or the Warrant Shares. Neither this Warrant nor any of the Warrant
Shares or any other security issued or issuable upon exercise of this Warrant
may be sold, transferred, pledged or hypothecated in the absence of an effective
registration statement under the Act relating to such security or an opinion of
counsel satisfactory to the Company that registration is not required under the
Act. Each certificate for the Warrant, the Warrant Shares and any other security
issued or issuable upon exercise of this Warrant shall contain a legend on the
face thereof, in form and substance satisfactory to counsel for the Company,
setting forth the restrictions on transfer contained in this Section.

                  7.2 Registration Rights. (a) Reference is made to the
Registration Rights Agreement. The Company's obligations under the Registration
Rights Agreement and the other terms and conditions thereof with respect to the
Warrant Shares, including, but not necessarily limited to, the Company's
commitment to file a registration statement including the Warrant Shares, to
have the registration of the Warrant Shares completed and effective, and to
maintain such registration, are incorporated herein by reference.

                  (b) In addition to the registration rights referred to in the
preceding provisions of Section 7.2(a), effective after the expiration of the
effectiveness of the Registration Statement as contemplated by the Registration
Rights Agreement, the Holder shall have piggy-back registration rights with
respect to the Warrant Shares then held by the Holder or then subject to
issuance upon exercise of this Warrant (collectively, the "Remaining Warrant
Shares"), subject to the conditions set forth below. If, at any time after the
Registration Statement has ceased to be effective, the Company participates
(whether voluntarily or by reason of an obligation to a third party) in the
registration of any shares of the Company's stock (other than a registration on
Form S-8 or on Form S-4), the Company shall give written notice thereof to the
Holder and the Holder shall have the right, exercisable within ten (10) business
days after receipt of such notice, to demand inclusion of all or a portion of
the Holder's Remaining Warrant Shares in such registration statement,, subject,
in the event of an underwritten offering, to customary cutbacks and lock-ups
requested by the managing underwriter of all selling stockholders thereunder, on
a pro-rata basis with such other selling stockholders; it being understood that
if the Company is registering shares to be sold by the Company, such cutback may
be a complete cutback (but in any event shall be on a pro rata basis with any
other non-Company selling shareholders which are being or were to be included in
such registration statement). If the Holder exercises such election, the
Remaining Warrant Shares so designated shall be included in the registration
statement at no cost or expense to the Holder (other than any costs or
commissions which would be borne by the Holder under the terms of the
Registration Rights Agreement). The Holder's rights under this Section 7 shall
expire at such time

                                       5                               2/19/04

<PAGE>

as the Holder can sell all of the Remaining Warrant Shares under Rule 144
without volume or other restrictions or limit. The Company shall have the right
to terminate or withdraw any registration initiated by it prior to the
effectiveness of such registration regardless of whether the Holder has elected
to include any of the Remaining Warrant Shares in such registration. In such
event, the provisions of this Section 7.2(b) shall continue to apply to all
Remaining Warrant Shares as provided above.

            8. Notices. Any notice required or permitted hereunder shall be
given in manner provided in the Section headed "NOTICES" in the Agreement, the
terms of which are incorporated herein by reference.

            9. Supplements and Amendments; Whole Agreement. This Warrant may be
amended or supplemented only by an instrument in writing signed by the parties
hereto. This Warrant contains the full understanding of the parties hereto with
respect to the subject matter hereof and thereof and there are no
representations, warranties, agreements or understandings other than expressly
contained herein and therein.

            10. Governing Law. This Warrant shall be deemed to be a contract
made under the laws of the State of New York for contracts to be wholly
performed in such state and without giving effect to the principles thereof
regarding the conflict of laws. Each of the parties consents to the exclusive
jurisdiction of the federal courts whose districts encompass any part of the
County of New York or the state courts of the State of New York sitting in the
County of New York in connection with any dispute arising under this Warrant and
hereby waives, to the maximum extent permitted by law, any objection, including
any objection based on forum non conveniens, to the bringing of any such
proceeding in such jurisdictions. To the extent determined by such court, the
Company shall reimburse the Holder for any reasonable legal fees and
disbursements incurred by the Buyer in enforcement of or protection of any of
its rights under any of the Transaction Agreements.

            11. JURY TRIAL WAIVER. The Company and the Holder hereby waive a
trial by jury in any action, proceeding or counterclaim brought by either of the
Parties hereto against the other in respect of any matter arising out or in
connection with this Warrant.

            12. Counterparts. This Warrant may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.

                       [Balance of page intentionally left blank]

                                       6                               2/19/04

<PAGE>

            13. Descriptive Headings. Descriptive headings of the several
Sections of this Warrant are inserted for convenience only and shall not control
or affect the meaning or construction of any of the provisions hereof.

      IN WITNESS WHEREOF, the parties hereto have executed this Warrant as of
the ___th day of _____________________________, 200__.

                                    MOBILE REACH INTERNATIONAL, INC.

                                    By: _______________________________

                                    ___________________________________
                                    (Print Name)

                                    ___________________________________
                                    (Title)

<PAGE>

                          NOTICE OF EXERCISE OF WARRANT

TO:   MOBILE REACH INTERNATIONAL, INC.             VIA FAX:  (919) 465-9102
      8000 Regency Parkway, Suite 660
      Cary, North Carolina 27511
      Attn: Michael Hewitt, CEO

      The undersigned hereby irrevocably elects to exercise the right,
represented by the Warrant Certificate dated as of ________________, 20___, to
purchase ___________ shares of the Common Stock, $0.0001 par value, of MOBILE
REACH INTERNATIONAL, INC. and tenders herewith payment in accordance with
Section 1 of said Common Stock Purchase Warrant.

|_|   CASH:$ _____________________ = (Exercise Price x Exercise Shares)

      Payment is being made by:

           |_|   enclosed check

           |_|   wire transfer

           |_|   other _______________________

|_|   CASHLESS EXERCISE

           Net number of Warrant Shares to be issued to Holder : _________*

           * based on: Current Market Value - (Exercise Price x Exercise Shares)
                       ---------------------------------------------------------
                                    Market Price of Common Stock

           where:
           Market Price of Common Stock ["MP"]           =   $_______________
           Current Market Value [MP x Exercise Shares]   =   $_______________

      It is the intention of the Holder to comply with the provisions of Section
2.2 of the Warrant regarding certain limits on the Holder's right to exercise
thereunder. Based on the analysis on the attached Worksheet Schedule, the Holder
believe this exercise complies with the provisions of said Section 2.2.
Nonetheless, to the extent that, pursuant to the exercise effected hereby, the
Holder would have more shares than permitted under said Section, this notice
should be amended and revised, ab initio, to refer to the exercise which would
result in the issuance of shares consistent with such provision. Any exercise
above such amount is hereby deemed void and revoked.

                                                                         2/19/04
<PAGE>

      As contemplated by the Warrant and the Securities Purchase Agreement, this
Notice of Conversion is being sent by facsimile to the telecopier number and
officer indicated above.

      If this Notice of Exercise represents the full exercise of the outstanding
balance of the Warrant, the Holder either (1) has previously surrendered the
Warrant to the Company or (2) will surrender (or cause to be surrendered) the
Warrant to the Company at the address indicated above by express courier within
five (5) business days after delivery or facsimile transmission of this Notice
of Exercise.

      The certificates representing the Warrant Shares should be transmitted by
the Company to the Holder via express courier or by electronic transfer after
receipt of this Notice of Exercise (by facsimile transmission or otherwise) to:

                  _____________________________________

                  _____________________________________

                  _____________________________________

                  _____________________________________

                  _____________________________________

Dated: ______________________

____________________________
[Name of Holder]

By: _________________________

                                       9                               2/19/04

<PAGE>

                          NOTICE OF EXERCISE OF WARRANT
                               WORKSHEET SCHEDULE

1.    Current Common Stock holdings of Holder and Affiliates  ___________

2.    Shares to be issued on current exercise                 ___________

3.    Other shares to be issued on other current exercise(s)
      and other current conversion(s)(1)                      ___________

4.    Other shares eligible to be acquired within next
      60 days without restriction                             ___________

5.    Total [sum of Lines 1 through 4]                              ___________

6.    Outstanding shares of Common Stock(2)                         ___________

7.    Adjustments to Outstanding

      a.    Shares known to Holder as previously issued
            to Holder or others but not included in Line 6    ___________

      b.    Shares to be issued per Line(s) 2 and 3           ___________

      c.    Total Adjustments [Lines 7a and 7b]                     ___________

8.    Total Adjusted Outstanding [Lines 6 plus 7c]                  ___________

9.    Holder's Percentage [Line 5 divided by Line 8]                ___________%

[Note: Line 9 not to be above 4.99%]

----------
(1) Includes shares issuable on conversion of convertible securities (including
assumed payment of interest or dividends) or exercise of other rights, including
other warrants or options

(2) Based on latest SEC filing by Company or information provided by executive
officer of Company, counsel to Company or transfer agent

                                                                         2/19/04Form of Note

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

			
	 No. R-1
	 	INITIAL PRINCIPAL AMOUNT
	 CUSIP 173076 85 2
	 	REPRESENTED $100,000,000
	 	 	representing 10,000,000 Notes
	 	 	($10 per Note)

  
 CITIGROUP GLOBAL
MARKETS HOLDINGS INC. 
 2% Principal-Protected Equity Linked Notes 
 Based Upon the Dow Jones Industrial Average Index Due December 29, 2009 
  
 Citigroup Global Markets Holdings Inc., a New York corporation (hereinafter referred to as the “Company”, which term includes any successor
corporation under the Indenture herein referred to), for value received and on condition that this Note is not redeemed by the Company prior to December 29, 2009 (the “Stated Maturity Date”), hereby promises to pay to CEDE & CO., or
its registered assigns, the Maturity Payment (as defined below), on the Stated Maturity Date. This Note will bear semi-annual payments of interest, is not subject to any sinking fund, is not subject to redemption at the option of the holder thereof
prior to the Stated Maturity Date, and is not subject to the defeasance provisions of the Indenture. 
  
 Payment of the Maturity Payment with respect to this Note shall be made upon presentation and surrender of this Note at the corporate trust office of the
Trustee in the Borough of Manhattan, The City and State of New York, in such coin or currency of the United States as at the time of payment is legal tender for payment of public and private debts. 
  
 This Note is one of the series of 10,000,000 2% Principal-Protected Equity
Linked Notes Based Upon the Dow Jones Industrial Average (the “Index”) Due 2009 (the “Notes”). 

 INTEREST 
  
 The Notes bear interest at the rate of 2% per annum. Interest will be paid in cash semi-annually on each 29th day of each
June and December commencing on December 29, 2004 (each such date, an “Interest Payment Date”). Interest will be payable to the persons in whose names the Notes are registered at the close of business on the fifth Business Day preceding
each Interest Payment Date. Interest will be computed on the basis of a 360-day year of twelve 30-day months. If an Interest Payment Date falls on a day that is not a Business Day, the interest payment to be made on such Interest Payment Date will
be made on the next succeeding Business Day with the same force and effect as if made on such Interest Payment Date, and no additional interest will accrue as a result of such delayed payment. 
  
 “Business Day” means any day that is not a Saturday, a Sunday or a
day on which the securities exchanges or banking institutions or trust companies in the City of New York are authorized or obligated by law or executive order to close. 
  
 PAYMENT AT MATURITY 
  
 On the Stated Maturity Date, holders of the Notes will receive for each Note the Maturity Payment described below.

  
 DETERMINATION OF THE MATURITY PAYMENT

  
 The Maturity Payment for each Note equals the sum of the
initial principal amount of $10 per Note plus the Interest Distribution Amount. 
  
 The “Interest Distribution Amount” is calculated as follows: 
  

	 	•	If the Index Return is less than or equal to the Interest Received Percentage, the Interest Distribution Amount will equal zero. 

  

	 	•	If the Index Return is greater than the Interest Received Percentage, the Interest Distribution Amount will equal the product of will equal the product of: 

 
 $10 * (Index Return – Interest Received Percentage)

  
 The “Index Return” will equal the compounded value
of the Periodic Capped Return for each Reset Period. 
  
 The
“Periodic Capped Return” for any Reset Period (including the Reset Period ending at maturity) will equal: 
  
 Ending Value – Starting Value 
 Starting Value 
  
 provided that the Periodic
Capped Return for any Reset Period shall not exceed 4%. 
  

 2 

 The “Interest Received Percentage” is 10.66%. 
  
 A “Reset Period” is the period between any two consecutive Reset
Dates (or August 25, 2004 and the first Reset Date). 
  
 A
“Reset Date” is the 25th day of each month, commencing September 25, 2004 and ending on December 24, 2009. 
  
 The “Starting Value” will be: 
  

	 	•	For the initial Reset Period, 10181.74, the closing value of the Index on August 25, 2004. 

  

	 	•	For each subsequent Reset Period, the Ending Value with respect to the immediately preceding reset period. 

  
 The “Ending Value” will be: 
  

	 	•	For any Reset Period other than the Reset Period ending on the Stated Maturity Date, the closing value of the Dow Jones Industrial Average on the Reset Date at the end of the
period. 

  

	 	•	For the Reset Period that ends on the Stated Maturity Date, the Ending Value for closing value of the Dow Jones Industrial Average on the date three Index Business Days before the
Stated Maturity Date. 

  
 An “Index Business
Day” means a day, as determined by the calculation agent, on which the Index or any successor index is calculated and published and on which securities comprising more than 80% of the value of the Index on such day are capable of being traded
on their relevant exchanges during the one-half hour before the determination of the closing value of the Index. All determinations made by the calculation agent will be at the sole discretion of the calculation agent and will be conclusive for all
purposes and binding on the Company and the beneficial owners of the Notes, absent manifest error. 
  
 A “Market Disruption Event” means, as determined by the calculation agent in its sole discretion, the occurrence or existence of any suspension
of or limitation imposed on trading (by reason of movements in price exceeding limits permitted by any relevant exchange or market or otherwise) of, or the unavailability, through a recognized system of public dissemination of transaction
information, for a period longer than two hours, or during the one-half hour period preceding the close of trading, on the applicable exchange or market, of accurate price, volume or related information in respect of (a) stocks which then comprise
20% or more of the value of the Index or any successor index, (b) any options or futures contracts, or any options on such futures contracts relating to the Index or any successor index, or (c) any options or futures contracts relating to stocks
which then comprise 20% or more of the value of the Index or any successor index on any exchange or market if, in each case, in the determination of the calculation agent, any such suspension, limitation or unavailability is material. For the
purpose of determining whether a 
  

 3 

 Market Disruption Event exists at any time, if trading in a security included in the Index is materially suspended or
materially limited at that time, then the relevant percentage contribution of that security to the value of the Index will be based on a comparison of the portion of the value of the Index attributable to that security relative to the overall value
of the Index, in each case immediately before that suspension or limitation. 
  
 If no closing value of the Index is available on any Index Business Day because of a Market Disruption Event or otherwise, the value of the Index for that Index Business Day, unless deferred by the calculation agent
as described below, will be the arithmetic mean, as determined by the calculation agent, of the value of the Index obtained from as many dealers in equity securities (which may include Citigroup Global Markets Inc. or any of the Company’s other
subsidiaries or affiliates), but not exceeding three such dealers, as will make such value available to the calculation agent. The determination of the value of the Index by the calculation agent in the event of a Market Disruption Event may be
deferred by the calculation agent for up to five consecutive Index Business Days on which a Market Disruption Event is occurring, but not past the Index Business Day prior to the Stated Maturity Date. 
  
 DISCONTINUANCE OF THE DOW JONES INDUSTRIAL AVERAGE

  
 If Dow Jones discontinues publication of the Index or if it
or another entity publishes a successor or substitute index that the calculation agent determines, in its sole discretion, to be comparable to the Index, then the Ending Value of any succeeding Reset Date will be determined by reference to the value
of that index, which is referred to as a “successor index.” 
  
 Upon any selection by the calculation agent of a successor index, the calculation agent will cause notice to be furnished to the Company and the Trustee, who will provide notice of the selection of the successor index to the registered
holders of the Notes. 
  
 If Dow Jones discontinues publication of
the Index and a successor index is not selected by the calculation agent or is no longer published on any Reset Date, the periodic index level to be substituted for the Index for that Reset Date will be a value computed by the calculation agent for
that Reset Date in accordance with the procedures last used to calculate the Index prior to any such discontinuance. 
  
 If Dow Jones discontinues publication of the Index prior to the determination of the Interest Distribution Amount and the calculation agent determines
that no successor index is available at that time, then on each Index Business Day until the earlier to occur of (a) the determination of the Interest Distribution Amount and (b) a determination by the calculation agent that a successor index is
available, the calculation agent will determine the value that is to be used in computing the Interest Distribution Amount as described in the preceding paragraph as if such day were a Reset Date. The calculation agent will cause notice of those
daily closing values to be published not less often than once each month in The Wall Street Journal (or another newspaper of general circulation). 
  

 4 

 If a successor index is selected or the calculation agent calculates a value as a substitute for the
Index as described above, the successor index or value will be substituted for the Index for all purposes, including for purposes of determining whether an Index Business Day or Market Disruption Event occurs. 
  
 All determinations made by the calculation agent will be at the sole
discretion of the calculation agent and will be conclusive for all purposes and binding on the Company and the beneficial owners of the Notes, absent manifest error. 
  
 ALTERATION OF METHOD OF CALCULATION 
  
 If at any time the method of calculating the Index or a successor index is changed in any material respect, or if the Index
or a successor index is in any other way modified so that the value of the Index or the successor index does not, in the opinion of the calculation agent, fairly represent the value of that index had the changes or modifications not been made, then,
from and after that time, the calculation agent will, at the close of business in New York, New York, make those adjustments as, in the good faith judgment of the calculation agent, may be necessary in order to arrive at a calculation of a value of
a stock index comparable to the Index or the successor index as if the changes or modifications had not been made, and calculate the closing value with reference to the Index or the successor index. Accordingly, if the method of calculating the
Index or the successor index is modified so that the value of the Index or the successor index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to a split in the Index), then the calculation agent
will adjust that index in order to arrive at a value of the index as if it had not been modified (e.g., as if the split had not occurred). 
  
 GENERAL 
  
 This Note is one of a duly authorized issue of debt securities of the Company (the “Debt Securities”), issued and to be issued in one or more
series under a Senior Debt Indenture, dated as of October 27, 1993, as supplemented by a First Supplemental Indenture, dated as of November 28, 1997, a Second Supplemental Indenture, dated as of July 1, 1999, and as further supplemented from time to
time (the “Indenture”), between the Company and The Bank of New York, as Trustee (the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the holders of the Notes, and the terms upon which the Notes are, and are to be, authenticated and delivered. 
  
 If an Event of Default with respect to the Notes shall have occurred and be
continuing, the principal of the Notes may be declared due and payable in the manner and with the effect provided in the Indenture. In such case, the amount declared due and payable upon any acceleration of the Notes will be determined by the
calculation agent and will equal, for each Note, the maturity payment, calculated as though the maturity of the Notes were the date of early repayment. If a Bankruptcy proceeding is commenced in respect of Citigroup Global Markets Holdings, the
beneficial owner of a Note will not be permitted to make a claim for unmatured interest and therefore, under Section 502(b)(2) of Title 11 of the United States Code, the claim of the beneficial owner of a Note will be capped at the payment at
maturity calculated as though the maturity date 
  

 5 

 of the Notes were the date of the commencement of the proceeding, plus an additional amount of interest accrued on the
principal amount of the Notes at 2% per annum up to the date of the commencement of the proceeding. 
  
 In case of default in payment at maturity of the Notes, the Notes will bear interest, payable upon demand of the beneficial owners of the Notes in
accordance with the terms of the Notes, from and after the maturity date through the date when payment of the unpaid amount has been made or duly provided for, at the rate of 4.5% per annum on the unpaid amount due. 
  
 The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the Company and the rights of the holders of the Debt Securities of each series to be affected under the Indenture at any time by the Company and a majority in aggregate
principal amount of the Debt Securities at the time Outstanding of each series affected thereby. The Indenture also contains provisions permitting the holders of specified percentages in aggregate principal amount of the Debt Securities of any
series at the time Outstanding, on behalf of the holders of all Debt Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Note. 
  
 The holder of this Note may not enforce such holder’s rights pursuant to the Indenture or the Notes except as provided in the Indenture. No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company to pay the Maturity Payment with respect to this Note, and to pay any interest on any overdue amount thereof at the time, place and rate, and in the coin or currency, herein
prescribed. 
  
 All terms used in this Note which are defined in
the Indenture but not in this Note shall have the meanings assigned to them in the Indenture. 
  
 Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purposes.

  

 6 

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

  

			
	CITIGROUP GLOBAL MARKETS HOLDINGS INC.
		
	 By:
	 	 /s/ Scott Freidenrich

	 Name:
	 	 Scott Freidenrich

	 Title:
	 	 Executive Vice President and Treasurer

  
 Corporate Seal 
 Attest: 
  

			
	 By:
	 	 /s/ Douglas C. Turnbull

	 Name:
	 	Douglas C. Turnbull
	 Title:
	 	Assistant Secretary

  
 Dated: August 30, 2004 
  

			
	 CERTIFICATE OF AUTHENTICATION

	        This is one of the Notes referred to in
	        the within-mentioned Indenture.

  
 The Bank of New York, 
 as Trustee 
  

			
	 By:
	 	 /s/ Stacey Poindexter

	 	 	Authorized Signatory

  

 7

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