Document:

<PAGE>
                                                                    Exhibit 4.01

      This Note is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of the Depository named
below or a nominee of the Depository. This Note is not exchangeable for Notes
registered in the name of a Person other than the Depository or its nominee
except in the limited circumstances described herein and in the Indenture, and
no transfer of this Note (other than a transfer of this Note as a whole by the
Depository to a nominee of the Depository or by a nominee of the Depository to
the Depository or another nominee of the Depository) may be registered except in
the limited circumstances described herein.

      Unless this certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation (the "Depository"), to the
Company or its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of the Depository (and any
payment is made to Cede & Co. or to such other entity as is requested by an
authorized representative of the Depository), 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.

                                 CITIGROUP INC.
                    FLOATING RATE NOTES DUE OCTOBER 22, 2004

REGISTERED                                                            REGISTERED

                                                              CUSIP: 172967 BQ 3
                                                            ISIN: US172967 BQ 31
                                                          Common Code: 015679158

No. R-                                                                         $

      CITIGROUP INC., a Delaware corporation (the "Company", which term includes
any successor Person under the Indenture), for value received, hereby promises
to pay to Cede & Co., or registered assigns, the principal sum of $____________
on October 22, 2004 and to pay interest thereon from and including October 22,
2002 or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, quarterly, on January 22, April 22, July 22 and
October 22 of each year, commencing January 22, 2003, at the rate per annum for
each Interest Period of three-month LIBOR plus 0.15%, determined as provided
herein, until the principal hereof is paid or made available for payment. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in the Indenture, be paid to the Person in whose
name this Note is registered at the close of business on the Record Date for
such interest, which shall be the Business Day immediately preceding such
Interest Payment Date.
<PAGE>
      Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the holder on such Record Date and may either
be paid to the Person in whose name this Note is registered at the close of
business on a subsequent Record Date, such subsequent Record Date to be not less
than five days prior to the date of payment of such defaulted interest, notice
whereof shall be given to holders of Notes of this series not less than 15 days
prior to such subsequent Record Date, or be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on
which the Notes of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture.

      Interest hereon will be calculated on the basis of the actual number of
days elapsed in an Interest Period and a 360-day year. Dollar amounts resulting
from such calculation will be rounded to the nearest cent, with one-half cent
being rounded upward. An "Interest Period" shall be the period from and
including an Interest Payment Date (or from October 22, 2002 in the case of the
first Interest Payment Date) to and including the day immediately preceding the
next Interest Payment Date.

      If either an Interest Payment Date or the Maturity of the Notes falls on a
day that is not a Business Day, such Interest Payment Date or the Maturity of
the Notes will be the next succeeding Business Day (unless that day falls in the
next calendar month, in which case such date will be the first preceding
Business Day). If a date for payment of interest or principal on the Notes falls
on a day that is not a business day in the place of payment, such payment will
be made on the next succeeding business day in such place of payment as if made
on the date the payment was due. No interest will accrue on any amounts payable
for the period from and after the due date for payment of such principal or
interest.

      For these purposes, "Business Day" means any day which is a day on which
commercial banks settle payments and are open for general business in The City
of New York.

      Payment of the principal of and interest on this Note will be made at the
office or agency of the Trustee maintained for that purpose in The City of New
York.

      Reference is hereby made to the further provisions of this Note set forth
on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

      Unless the certificate of authentication hereon has been executed by the
Trustee or by an authenticating agent on behalf of the Trustee by manual
signature, this Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

                                       2
<PAGE>
      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:  October 22, 2002

                                    CITIGROUP INC.

                                    By:_________________________________
                                    Title:  Treasurer

ATTEST:

By:___________________________
Assistant Secretary

                                       3
<PAGE>
      This is one of the Notes of the series issued under the within-mentioned
Indenture.

Dated:  October 22, 2002

                                    THE BANK OF NEW YORK,
                                    as Trustee

                                    By:_________________________________
                                          Name:
                                          Title:

                                    -or-

                                    CITIBANK, N.A.,
                                    As Authenticating Agent

                                    By:_________________________________
                                          Name:
                                          Title:

                                       4
<PAGE>
      This Note is one of a duly authorized issue of Securities of the Company
(the "Notes"), issued and to be issued in one or more series under the
Indenture, dated as of March 15, 1987 (as amended and supplemented to date, 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 and all indentures supplemental thereto 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 of the terms upon which the Notes are, and are to be, authenticated and
delivered. This Note is one of the series designated on the face hereof,
initially limited in aggregate principal to $1,500,000,000.

      This Note will bear interest for each Interest Period at a rate determined
by Citibank, N.A., acting as Calculation Agent. The interest rate on this Note
for a particular Interest Period will be a per annum rate equal to LIBOR as
determined on the related Interest Determination Date plus 0.15%. The Interest
Determination Date for an Interest Period will be the second London business day
preceding such Interest Period. Promptly upon determination, the Calculation
Agent will inform the Trustee and the Company of the interest rate for the next
Interest Period. Absent manifest error, the determination of the interest rate
by the Calculation Agent shall be binding and conclusive on the holders of
Notes, the Trustee and the Company.

      A London business day is a day on which dealings in deposits in U.S.
dollars are transacted in the London interbank market.

      On any Interest Determination Date, LIBOR will be equal to the offered
rate for deposits in U.S. dollars having an index maturity of three months for
the next Interest Period, in amounts of at least $1,000,000, as such rate
appears on Telerate Page 3750 at approximately 11:00 a.m., London time, on such
Interest Determination Date. If the Telerate Page 3750 is replaced by another
service or ceases to exist, the Calculation Agent will use the replacing service
or such other service that may be nominated by the British Bankers' Association
for the purpose of displaying London interbank offered rates for U.S. dollar
deposits.

      If no offered rate appears on Telerate Page 3750 on an Interest
Determination Date at approximately 11:00 a.m., London time, then the
Calculation Agent (after consultation with the Company) will select four major
banks in the London interbank market and shall request each of their principal
London offices to provide a quotation of the rate at which three-month deposits
in U.S. dollars in amounts of at least $1,000,000 are offered by it to prime
banks in the London interbank market, on that date and at that time, that is
representative of single transactions at that time. If at least two quotations
are provided, LIBOR will be the arithmetic average of the quotations provided.
Otherwise, the Calculation Agent will select three major banks in New York City
and shall request each of them to provide a quotation of the rate offered by
them at approximately 11:00 a.m., New York City time, on the Interest
Determination Date for loans in U.S. dollars to leading European banks having an
index maturity of three months for the applicable Interest Period in an amount
of at least $1,000,000 that is representative of single transactions at that
time. If three quotations are provided, LIBOR will be the arithmetic average

                                       5
<PAGE>
of the quotations provided. Otherwise, the rate of LIBOR for the next Interest
Period will be set equal to the rate of LIBOR for the current Interest Period.

      The interest rate in effect for this Note for the first Interest Period of
October 22, 2002 through January 21, 2003 shall be 1.97750%.

      Upon request from any Noteholder, the Calculation Agent will provide the
interest rate in effect on this Note for the current Interest Period and, if it
has been determined, the interest rate to be in effect for the next Interest
Period.

      If an event of default (as defined in the Indenture) with respect to Notes
of this series shall occur and be continuing, the principal of the Notes of this
series may be declared due and payable in the manner and with the effect
provided in the Indenture.

      The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Note upon compliance by the Company with certain conditions
set forth in Sections 11.03 and 11.04 thereof, which provisions apply to this
Note.

      The Indenture contains provisions permitting the Company and the Trustee,
without the consent of the holders of the Securities, to establish, among other
things, the form and terms of any series of Securities issuable thereunder by
one or more supplemental indentures, and, with the consent of the holders of not
less than 66 2/3% in aggregate principal amount of Securities at the time
outstanding which are affected thereby, to modify the Indenture or any
supplemental indenture or the rights of the holders of Securities of such series
to be affected, provided that no such modification will (i) extend the fixed
maturity of any Securities, reduce the rate or extend the time of payment of
interest thereon, reduce the principal amount thereof or the premium, if any,
thereon, reduce the amount of the principal of Original Issue Discount
Securities payable on any date, change the currency in which Securities are
payable, or impair the right to institute suit for the enforcement of any such
payment on or after the maturity thereof, without the consent of the holder of
each Security so affected, or (ii) reduce the aforesaid percentage of Securities
of any series the consent of the holders of which is required for any such
modification without the consent of the holders of all Securities of such series
then outstanding, or (iii) modify, without the written consent of the Trustee,
the rights, duties or immunities of the Trustee.

      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, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

      This Note is a Global Security registered in the name of a nominee of the
Depository. This Note is exchangeable for Notes registered in the name of a
person other than the Depository or its nominee only in the limited
circumstances hereinafter described. Unless and until it is exchanged in whole
or in part for definitive Notes in certificated form, this Note may not be
transferred except as a whole by the Depository to a nominee of the Depository
or by a nominee of the Depository to the Depository or another nominee of the
Depository.

                                       6
<PAGE>
      The Notes represented by this Global Security are exchangeable for
definitive Notes in certificated form of like tenor as such Notes in
denominations of $1,000 and integral multiples thereof only if (i) the
Depository notifies the Company that it is unwilling or unable to continue as
Depository for the Notes or (ii) the Depository ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended, or (iii) the
Company in its sole discretion decides to allow the Notes to be exchanged for
definitive Notes in registered form. Any Notes that are exchangeable pursuant to
the preceding sentence are exchangeable for certificated Notes issuable in
authorized denominations and registered in such names as the Depository shall
direct. As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of definitive Notes in certificated form is registrable
in the register maintained by the Company in The City of New York for such
purpose, upon surrender of the definitive Note for registration of transfer at
the office or agency of the registrar, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
registrar duly executed by, the holder thereof or his attorney duly authorized
in writing, and thereupon one or more new Notes of this series and of like
tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees. Subject to the
foregoing, this Note is not exchangeable, except for a Global Security or Global
Securities of this issue of the same principal amount to be registered in the
name of the Depository or its nominee.

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

      Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

      The Company will pay additional amounts ("Additional Amounts") to the
beneficial owner of any Note that is a non-United States person in order to
ensure that every net payment on such Note will not be less, due to payment of
U.S. withholding tax, than the amount then due and payable. For this purpose, a
"net payment" on a Note means a payment by the Company or a paying agent,
including payment of principal and interest, after deduction for any present or
future tax, assessment or other governmental charge of the United States. These
Additional Amounts will constitute additional interest on the Note.

      The Company will not be required to pay Additional Amounts, however, in
any of the circumstances described in items (1) through (13) below.

      (1)   Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any tax, assessment or other governmental
            charge that is imposed or withheld solely by reason of the
            beneficial owner:

                                       7
<PAGE>
            (a)   having a relationship with the United States as a citizen,
                  resident or otherwise;

            (b)   having had such a relationship in the past or

            (c)   being considered as having had such a relationship.

      (2)   Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any tax, assessment or other governmental
            charge that is imposed or withheld solely by reason of the
            beneficial owner:

            (a)   being treated as present in or engaged in a trade or business
                  in the United States;

            (b)   being treated as having been present in or engaged in a trade
                  or business in the United States in the past or

            (c)   having or having had a permanent establishment in the United
                  States.

      (3)   Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any tax, assessment or other governmental
            charge that is imposed or withheld solely by reason of the
            beneficial owner being or having been any of the following (as such
            terms are defined in the Internal Revenue Code of 1986, as amended):

            (a)   personal holding company;

            (b)   foreign personal holding company;

            (c)   foreign private foundation or other foreign tax-exempt
                  organization;

            (d)   passive foreign investment company;

            (e)   controlled foreign corporation or

            (f)   corporation which has accumulated earnings to avoid United
                  States federal income tax.

      (4)   Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any tax, assessment or other governmental
            charge that is imposed or withheld solely by reason of the
            beneficial owner owning or having owned, actually or constructively,
            10 percent or more of the total combined voting power of all classes
            of stock of the Company entitled to vote or by reason of the
            beneficial owner being a bank that has invested in a Note as an
            extension of credit in the ordinary course of its trade or business.

For purposes of items (1) through (4) above, "beneficial owner" means a
fiduciary, settlor, beneficiary, member or shareholder of the holder if the
holder is an estate, trust, partnership, limited liability company, corporation
or other entity, or a person holding a power over an estate or trust
administered by a fiduciary holder.

      (5)   Additional Amounts will not be payable to any beneficial owner of a
            Note that is a:

            (a)   fiduciary;

                                       8
<PAGE>
            (b)   partnership;

            (c)   limited liability company or

            (d)   other fiscally transparent entity

            or that is not the sole beneficial owner of the Note, or any portion
            of the Note. However, this exception to the obligation to pay
            Additional Amounts will only apply to the extent that a beneficiary
            or settlor in relation to the fiduciary, or a beneficial owner or
            member of the partnership, limited liability company or other
            fiscally transparent entity, would not have been entitled to the
            payment of an Additional Amount had the beneficiary, settlor,
            beneficial owner or member received directly its beneficial or
            distributive share of the payment.

      (6)   Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any tax, assessment or other governmental
            charge that is imposed or withheld solely by reason of the failure
            of the beneficial owner or any other person to comply with
            applicable certification, identification, documentation or other
            information reporting requirements. This exception to the obligation
            to pay Additional Amounts will only apply if compliance with such
            reporting requirements is required by statute or regulation of the
            United States or by an applicable income tax treaty to which the
            United States is a party as a precondition to exemption from such
            tax, assessment or other governmental charge.

      (7)   Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any tax, assessment or other governmental
            charge that is collected or imposed by any method other than by
            withholding from a payment on a Note by the Company or a paying
            agent.

      (8)   Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any tax, assessment or other governmental
            charge that is imposed or withheld by reason of a change in law,
            regulation, or administrative or judicial interpretation that
            becomes effective more than 15 days after the payment becomes due or
            is duly provided for, whichever occurs later.

      (9)   Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any tax, assessment or other governmental
            charge that is imposed or withheld by reason of the presentation by
            the beneficial owner of a Note for payment more than 30 days after
            the date on which such payment becomes due or is duly provided for,
            whichever occurs later.

      (10)  Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any:

            (a)   estate tax;

            (b)   inheritance tax;

            (c)   gift tax;

                                       9
<PAGE>
            (d)   sales tax;

            (e)   excise tax;

            (f)   transfer tax;

            (g)   wealth tax;

            (h)   personal property tax or

            (i)   any similar tax, assessment or other governmental charge.

      (11)  Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any tax, assessment, or other governmental
            charge required to be withheld by any paying agent from a payment of
            principal or interest on a Note if such payment can be made without
            such withholding by any other paying agent.

      (12)  Additional amounts will not be payable if a payment on a Note is
            reduced as a result of any tax, assessment or other governmental
            charge that is required to be made pursuant to any European Union
            directive on the taxation of savings income or any law implementing
            or complying with, or introduced to conform to, any such directive.

      (13)  Additional Amounts will not be payable if a payment on a Note is
            reduced as a result of any combination of items (1) through (12)
            above.

      Except as specifically provided herein, the Company will not be required
to make any payment of any tax, assessment or other governmental charge imposed
by any government or a political subdivision or taxing authority of such
government.

      As used in this Note, "United States person" means:

      (a)   any individual who is a citizen or resident of the United States;

      (b)   any corporation, partnership or other entity created or organized in
            or under the laws of the United States;

      (c)   any estate if the income of such estate falls within the federal
            income tax jurisdiction of the United States regardless of the
            source of such income and

      (d)   any trust if a United States court is able to exercise primary
            supervision over its administration and one or more United States
            persons have the authority to control all of the substantial
            decisions of the trust.

      Additionally, "non-United States person" means a person who is not a
United States person, and "United States" means the United States of America,
including the States and the District of Columbia, but excluding its territories
and its possessions.

      Except as provided below, the Notes may not be redeemed prior to maturity.

      (1)   The Company may, at its option, redeem the Notes if:

                                       10
<PAGE>
            (a)   the Company becomes or will become obligated to pay Additional
                  Amounts as described above;

            (b)   the obligation to pay Additional Amounts arises as a result of
                  any change in the laws, regulations or rulings of the United
                  States, or an official position regarding the application or
                  interpretation of such laws, regulations or rulings, which
                  change is announced or becomes effective on or after October
                  16, 2002 and

            (c)   the Company determines, in its business judgment, that the
                  obligation to pay such Additional Amounts cannot be avoided by
                  the use of reasonable measures available to it, other than
                  substituting the obligor under the Notes or taking any action
                  that would entail a material cost to the Company.

      (2)   The Company may also redeem the Notes, at its option, if:

            (a)   any act is taken by a taxing authority of the United States on
                  or after October 16, 2002, whether or not such act is taken in
                  relation to the Company or any affiliate, that results in a
                  substantial probability that the Company will or may be
                  required to pay Additional Amounts as described above;

            (b)   the Company determines, in its business judgment, that the
                  obligation to pay such Additional Amounts cannot be avoided by
                  the use of reasonable measures available to it, other than
                  substituting the obligor under the Notes or taking any action
                  that would entail a material cost to the Company and

            (c)   the Company receives an opinion of independent counsel to the
                  effect that an act taken by a taxing authority of the United
                  States results in a substantial probability that the Company
                  will or may be required to pay the Additional Amounts
                  described above, and delivers to the Trustee a certificate,
                  signed by a duly authorized officer, stating that based on
                  such opinion the Company is entitled to redeem the Notes
                  pursuant to their terms.

Any redemption of the Notes as set forth in clauses (1) or (2) above shall be in
whole, and not in part, and will be made at a redemption price equal to 100% of
the principal amount of the Notes Outstanding plus accrued interest thereon to
the date of redemption. Holders shall be given not less than 30 days nor more
than 60 days prior notice by the Trustee of the date fixed for such redemption.

      All terms used in this Note which are defined in the Indenture shall have
the meanings assigned to them in the Indenture. The Notes are governed by the
laws of the State of New York.

                                       11<PAGE>
                                                                  EXECUTION COPY

                      AMERITRADE OPTION EXERCISE AGREEMENT

                  THIS AMERITRADE OPTION EXERCISE AGREEMENT (the "Agreement")
dated as of October 18, 2002 by and among INSTINET GROUP INCORPORATED, a
Delaware corporation ("Instinet"), DATEK ONLINE HOLDINGS CORP., a Delaware
corporation ("Datek"), and AMERITRADE HOLDING CORPORATION, a Delaware
corporation ("Ameritrade"). Capitalized terms used but not defined herein shall
have the respective meanings given them in the Hedge Option Agreements (as
defined below).

                                    RECITALS

         WHEREAS, Datek and Island Holding Corporation, a Delaware corporation
("Island"), as successor to The Island ECN, Inc., are parties to two Hedge
Option Agreements, each dated as of April 10, 2001 (the "Hedge Option
Agreements"), relating to certain stock appreciation rights granted to employees
of Datek pursuant to the Datek Online Holdings Corp. 2001 Special Island Stock
Appreciation Right Plan (the "SAR Plan");

         WHEREAS, on September 9, 2002, Datek merged with and into a
wholly-owned subsidiary of Ameritrade and in connection therewith Ameritrade
assumed the SAR Plan;

         WHEREAS, effective as of September 20, 2002, Island merged with and
into a wholly-owned subsidiary of Instinet (the "Merger");

         WHEREAS, by virtue of the Merger and pursuant to Section 3(c) of the
Hedge Option Agreements, the right of Datek to purchase Option Shares pursuant
to the Hedge Option Agreements has been converted into the right to purchase
shares of common stock, par value $.01 per share, of Instinet (the "Shares") at
an exchange ratio of 1.30488293010049 Shares per Option Share;

         WHEREAS, Instinet, Ameritrade and certain other parties thereto entered
into a Registration Rights Agreement, dated as of September 20, 2002 (the
"Registration Rights Agreement"), relating to registration rights with respect
to certain securities of Instinet, including up to 1,651,238 Shares that may be
issuable to Datek under the Hedge Option Agreements (the "Instinet Shares");

         WHEREAS, Ameritrade, as successor to Datek under the SAR Plan, wishes
to exercise over the Registration Period (as defined below) all of the
outstanding Options under the Hedge Option Agreements and to purchase all of the
Instinet Shares and Instinet has agreed to facilitate the sale of the Instinet
Shares by Ameritrade by preparing and filing a "shelf" registration statement on
Form S-3;

         NOW, THEREFORE, in consideration of these premises and other good and
valuable consideration, the parties hereto hereby agree as follows:
<PAGE>
                                    ARTICLE I

                   EXERCISE OF OPTIONS; REGISTRATION OF SHARES

         SECTION 1.1. Exercise of Options. The parties hereby agree that
Ameritrade is entitled to exercise all of Datek's rights under the Hedge Option
Agreements and that Datek no longer has any rights or obligations under the
Hedge Option Agreements. Notwithstanding any provision in the Hedge Option
Agreements to the contrary, Ameritrade is entitled to exercise, during the
Registration Period (as defined below) only, all of the outstanding Options
pursuant to the Hedge Option Agreements and to purchase the Instinet Shares. At
any time and from time to time during the Registration Period, Ameritrade may
exercise any or all of the outstanding Options by giving written notice to
Instinet of the exact number of Options to be exercised and the corresponding
number of Instinet Shares to be purchased pursuant to the exercised Options (the
"Exercise Notice"). Notwithstanding any provision in the Hedge Option Agreements
to the contrary, upon payment by Ameritrade to Instinet in cash of the exercise
price of $0.91 per Instinet Share covered by such Exercise Notice (such exercise
price representing the full Exercise Price for such Instinet Share as required
by the Hedge Option Agreements), Instinet shall deliver to Ameritrade a
certificate representing the purchased Instinet Shares, registered in the name
of Ameritrade or its designee, or shall transmit electronically to a brokerage
account designated by Ameritrade the purchased Instinet Shares, as both parties
may mutually agree; provided, that in no event shall Instinet be required to
deliver the purchased Instinet Shares earlier than three business days after its
receipt of the relevant Exercise Notice. Payment of the exercise price for any
Instinet Shares will be made by wire transfer to account number 066-609852 at
JPMorgan Chase, NY, NY (ABA 021000021). Any and all unexercised Options shall
expire at the expiration of the Registration Period.

         SECTION 1.2. Registration Statement. Subject to the terms and
conditions set forth herein and in reliance on the representations and
warranties contained herein, as soon as reasonably practicable after the date
hereof, Instinet shall prepare and file with the U.S. Securities and Exchange
Commission (the "SEC") a "shelf" registration statement (the "Registration
Statement") for the resale by Ameritrade of the Instinet Shares on a continuous
or delayed basis pursuant to Rule 415 under the Securities Act of 1933, as
amended, subject to the limitations provided herein. Instinet shall use its
reasonable best efforts (i) to have the Registration Statement declared
effective by the SEC as soon as practicable after the Registration Statement has
been filed with the SEC and (ii) to keep such Registration Statement
continuously effective and free of material misstatements or omissions
(including the preparation and filing of any amendments and supplements
necessary for that purpose) for the period (the "Registration Period") from the
date the Registration Statement becomes effective until the earlier of (x) the
date on which Ameritrade has consummated the sale of all of the Instinet Shares
under the Registration Statement and (y) 30 days from the date the Registration
Statement first became effective. Ameritrade shall furnish to Instinet such
information regarding Ameritrade and the distribution proposed by Ameritrade as
Instinet may reasonably request in writing and as shall be reasonably required
in connection with the Registration Statement.

         SECTION 1.3. Instinet Blackout Rights. If the filing, initial
effectiveness or continued use of the Registration Statement at any time would
require Instinet to disclose material non-public information which disclosure
(i) would be required to be made in the Registration Statement so that the
Registration Statement would not be materially misleading, (ii) would not be
required to be made at such time but for the filing, effectiveness or continued

                                       2
<PAGE>
use of the Registration Statement and (iii) would be materially detrimental to
Instinet or would materially interfere with any material financing, acquisition,
corporate reorganization or merger or other transaction involving Instinet and
any of its subsidiaries and that, as a result of such potential disclosure or
interference, it is in the best interests of Instinet to delay the filing or
initial effectiveness of, or suspend the use of, the Registration Statement at
such time, and if Instinet delivers to Ameritrade a certificate signed by the
chief executive officer and the general counsel of Instinet to that effect, then
Instinet may delay the filing or initial effectiveness of, or suspend the use
of, such Registration Statement for such period of time not to exceed 120 days
as is determined in good faith by Instinet to be necessary for such purpose. If
the Registration Statement has become effective and Instinet exercises its
rights under the preceding sentence, Ameritrade agrees to suspend, immediately
upon its receipt of the notice referred to above, its use of the prospectus
(including all amendments and supplements to such prospectus and all material
incorporated by reference in such prospectus) relating to the Registration
Statement in connection with any sale or offer to sell the Instinet Shares and
agrees not to disclose to any other Person (as defined below) the fact that
Instinet has exercised such rights or any related facts. Instinet shall
immediately notify Ameritrade of the expiration of any period during which it
exercised its rights under this Section 1.3 and shall immediately notify
Ameritrade that the use of the prospectus may be resumed or as soon as
reasonably practicable provide to Ameritrade copies of a supplemented or amended
prospectus that complies with the provisions of the Securities Act. Ameritrade
shall be entitled to commence or resume disposition of its Instinet Shares after
Ameritrade is notified by Instinet that the use of the prospectus may be resumed
or after receipt by Ameritrade of the copies of the supplemented or amended
prospectus, as the case may be, and, if so directed by Instinet, Ameritrade will
deliver to Instinet (at Instinet's expense) all copies, other than permanent
file copies then in Ameritrade's possession, of the prospectus covering the
Instinet Shares which are current at the time of the receipt of notice of such
suspension. If Ameritrade is required to suspend the use of a prospectus
pursuant to this Section 1.3, the applicable Registration Period shall be
extended by the same number of days as the days such use is suspended. For
purposes herein, "Person" means any individual, partnership, limited liability
company, joint venture, corporation, trust unincorporated association,
government (and any department or agency thereof) or other entity.

         SECTION 1.4. Registration Expenses. Except as provided herein, Instinet
shall pay all Registration Expenses (as defined below) with respect to the
Registration Statement. Except as provided herein, Ameritrade shall be
responsible for its own fees and expenses of counsel and financial advisors and
its internal administrative and similar costs, which shall not constitute
Registration Expenses. For purposes herein, "Registration Expenses" means any
and all expenses incident to performance of or compliance with the registration
of the Instinet Shares pursuant to this Article I, including, without
limitation, (i) the fees, disbursements and expenses of Instinet's counsel and
accountants; (ii) all expenses, including filing fees, in connection with the
preparation, printing and filing of the Registration Statement, any preliminary
prospectus or final prospectus, any amendments and supplements thereto and the
mailing and delivering of copies thereof to Ameritrade and any dealers; (iii)
the cost of printing or producing any blue sky or legal investment memoranda and
any other documents in connection with the offering, sale or delivery of the
Instinet Shares; (iv) all expenses in connection with the qualification of the
Instinet Shares for offering and sale under state securities laws, including the
fees and disbursements of counsel for Ameritrade in connection with such
qualification and in connection with any blue sky and legal investment surveys;
(v) transfer agents' and registrars' fees and

                                       3
<PAGE>
expenses and the fees and expenses of any other agent or trustee appointed in
connection with such offering, sale or delivery; (vi) all security engraving and
security printing expenses; (vii) all fees and expenses payable in connection
with the listing of the Instinet Shares on any securities exchange or automated
interdealer quotation system; and (viii) the reasonable fees and expenses of one
counsel for Ameritrade incurred in connection with the registration hereunder.

         SECTION 1.5. Withdrawal; No Further Obligations. (a) Sections 2.7
(other than subsection (p)), 2.10, 2.11 and 2.14 of the Registration Rights
Agreement are hereby incorporated by reference herein solely to the extent
necessary to permit Ameritrade to effect sales of Instinet Shares under the
Registration Statement as if Ameritrade were a Selling Holder (as defined in the
Registration Rights Agreement) (and the applicable Holder's Representative (as
defined in the Registration Rights Agreement)) and as if the Instinet Shares
were Registrable Securities (as defined in the Registration Rights Agreement);
it being agreed for the purpose of such incorporation that Ameritrade has no
right to make underwritten offerings under the Registration Statement. Except to
the extent expressly set forth in the preceding sentence, Ameritrade hereby
withdraws from the Registration Rights Agreement pursuant to Section 3.12
thereof. Contemporaneously with the signing of this Agreement, Ameritrade agrees
to send written notice of its withdrawal from the Registration Rights Agreement
to the Group R Holders' Representative (as defined in the Registration Rights
Agreement).

         (b) Except for the provisions of the Registration Rights Agreement
incorporated by reference herein pursuant to Section 1.5(a), (i) Instinet has no
rights or obligations under the Registration Rights Agreement as it relates to
Ameritrade and, following the expiration of the Registration Period, neither
Instinet nor Island shall have any further obligations with respect to the
Registration Statement or any rights or obligations under the Hedge Option
Agreements and (ii) Ameritrade has no rights or obligations under the
Registration Rights Agreement and, following the expiration of the Registration
Period, shall have no further rights with respect to the Registration Statement
or any rights or obligations under the Hedge Option Agreements.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

         SECTION 2.1. Representations; Warranties. Each party (the "Representing
Party") hereby represents to each of the other two parties that:

         (i) the Representing Party has the legal authority to execute, deliver
and perform this Agreement;

         (ii) this Agreement has been duly and validly executed and delivered by
such Representing Party;

         (iii) this Agreement constitutes a legal, valid and binding obligation
of the Representing Party, enforceable against such party in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, moratorium or similar laws

                                       4
<PAGE>
affecting creditors' rights generally and to general principles of equity
(whether considered in a proceeding in equity or at law); and

         (iv) the execution and delivery of this Agreement by the Representing
Party and the consummation of the transactions contemplated hereby do not and
will not (A) require any material governmental approval or (B) violate or
conflict with, result in a breach of, or constitute a default under, (x) any
provision of any certificate of incorporation, certificate of formation,
certificate of limited partnership, by-laws, partnership agreement, limited
liability company agreement or other similar constituent, organizational and
governing documents, as applicable, of the Representing Party, (y) any material
contract to which the Representing Party is a party or by which such
Representing Party may be bound or (z) any material applicable law.

                                   ARTICLE III

                                  MISCELLANEOUS

         SECTION 3.1. Notices All notices, demands and other communications
hereunder shall be in writing (including telecopier or similar writing) and
shall be given to the party to whom it is addressed at such party's address, as
set forth below, or as such party may hereinafter specify for the purpose by
notice to the other party. Each such notice, demand or other communication shall
be effective (i) if given by telecopy, when such telecopy is transmitted to the
telecopy number specified below and confirmation is received, (ii) if given by
overnight courier, one business day after deposit thereof with a national
overnight courier service, or (iii) if given by any other means, when delivered
at the address specified in this Section 3.1.

         INSTINET

         Instinet Group Incorporated
         Three Times Square
         10th Floor
         New York, New York 10036
         Attention:  General Counsel
         Telecopy No.:  646-223-9017

         with a copy to:

         Instinet Group Incorporated
         Three Times Square
         11th Floor
         New York, New York 10036
         Attention:  Graham Stanley
         Telecopy No.:  646-223-9091

                                       5
<PAGE>
         and

         Cleary, Gottlieb, Steen & Hamilton
         One Liberty Plaza
         New York, New York 10006
         Attention:  Yvette P. Teofan, Esq.
         Telecopy No.:  212-225-3999

         AMERITRADE OR DATEK

         Ameritrade Holding Corporation
         134 National Business Parkway
         Fourth Floor
         Annapolis Junction, Maryland 20701
         Telecopy No:  240-568-3528
         Attention:  Ellen L.S. Koplow, Esq.

         with a copy to:

         Mayer, Brown, Rowe & Maw
         190 South LaSalle Street
         Chicago, Illinois 60603
         Telecopy No: 312-701-7711
         Attention:  Carol S. Rivers, Esq.

         SECTION 3.2. Waivers; Remedies; Amendments; Termination (a) No failure
or delay on the part of any party in exercising any right, power or remedy
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy.

         (b) The parties hereto acknowledge that in the event that any of the
provisions of this Agreement are not performed in accordance with their specific
terms or are otherwise breached then money damages will be inadequate and no
adequate remedy at law may be available. Accordingly, each party hereto agrees
that each other party hereto shall have the right to enforce its rights and the
obligations of the other parties hereto not only by an action for damages but
also by an action for specific performance, injunction and/or other equitable
relief. The parties hereto agree to waive any requirement for the posting of any
bond in connection with such remedy.

         (c) This Agreement shall not be amended, modified or terminated other
than by a written instrument executed by each of the parties hereto.

         SECTION 3.3. Successors and Assigns. This Agreement shall be binding
on, and shall inure to the benefit of, the parties hereto and their respective
successors and assigns.

         SECTION 3.4. Governing Law. This Agreement shall be construed in
accordance with and governed by the laws of the State of New York.

                                       6
<PAGE>
         SECTION 3.5. Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.

         SECTION 3.6. Counterparts. This Agreement may be executed in any number
of counterparts each of which shall be an original with the same effect as if
the signatures thereto and hereto were upon the same instrument.

         SECTION 3.7. Amendment to Agreements. The parties agree that the
provisions of this Agreement relating to the Hedge Option Agreements and the
parties' rights and obligations thereunder constitute an amendment to the Hedge
Option Agreements pursuant to Section 8(a) thereof.

         SECTION 3.8 Continued Effectiveness. Unless Instinet obtains a consent
or waiver from the Holders of Registrable Securities (as defined in that certain
Registration Rights Agreement, dated as of October 1, 2001, by and among
Instinet, David G. Jamail, David R. Burch, Overunder, LLC, John A. McEntire, IV,
John Bunda, Laura Horne, Currin Van Eman and Shayne Young) that they shall not
exercise any piggyback rights they may have with respect to the Registration
Statement, Instinet shall keep effective the Registration Statement on Form S-3
(Registration No. 333-84960) (the "ProTrader Registration Statement") covering
Shares issued in connection with the acquisition by Instinet of ProTrader Group,
L.P. until the earlier of the expiration of the Registration Period or the sale
of all of the Shares covered by the ProTrader Registration Statement.

         SECTION 3.9 Third Party Beneficiaries. Except as set forth Section 2.10
of the Registration Rights Agreement incorporated herein by reference pursuant
to Section 1.5(a), nothing contained in this Agreement, express or implied, is
intended to confer upon any other Person any benefits, rights or remedies.

                                       7
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers, as of the date first
above written.

                                           INSTINET GROUP INCORPORATED

                                           By: /s/ Mark Nienstedt
                                               ---------------------------------
                                               Name:  Mark Nienstedt
                                               Title: CFO

                                           AMERITRADE HOLDING CORPORATION

                                           By: /s/ Kurt D. Halvorson
                                               ---------------------------------
                                               Name:  Kurt D. Halvorson
                                               Title: EVP/CAO

                                           DATEK ONLINE HOLDINGS CORP.

                                           By: /s/ J. Peter Ricketts
                                               ---------------------------------
                                               Name:  J. Peter Ricketts
                                               Title: President

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]