Document:

EX-4.01

 

Exhibit 4.01

 

CITIGROUP INC.

TO

THE BANK OF NEW YORK

                                                   Trustee

 

INDENTURE

Dated as of [                 ], 2007

 

Providing for the issuance of Junior Subordinated Deferrable Interest Debentures

 

 

 

TABLE OF CONTENTS

Page

	 	 	 	 	 
	Recitals of the Company
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I Definitions And Other Provisions of General Application
	 	 	1	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Compliance Certificates and Opinions
	 	 	12	 
	Section 1.3. Form of Documents Delivered to Trustee
	 	 	12	 
	Section 1.4. Acts of Holders; Record Dates
	 	 	13	 
	Section 1.5. Notices, Etc., to Trustee and Company
	 	 	14	 
	Section 1.6. Notice to Holders; Waiver
	 	 	14	 
	Section 1.7. Conflict with Trust Indenture Act
	 	 	14	 
	Section 1.8. Effect of Headings and Table of Contents
	 	 	15	 
	Section 1.9. Successors and Assigns
	 	 	15	 
	Section 1.10. Separability Clause
	 	 	15	 
	Section 1.11. Benefits of Indenture
	 	 	15	 
	Section 1.12. Governing Law
	 	 	15	 
	Section 1.13. Legal Holidays
	 	 	15	 
	Section 1.14. Tax Characterization
	 	 	15	 
	 
	 	 	 	 
	ARTICLE II Security Forms
	 	 	16	 
	Section 2.1. Forms Generally
	 	 	16	 
	Section 2.2. Form of Face of Security
	 	 	16	 
	Section 2.3. Form of Reverse of Security
	 	 	19	 
	Section 2.4. Form of Trustee’s Certificate of Authentication
	 	 	23	 
	 
	 	 	 	 
	ARTICLE III The Securities
	 	 	23	 
	Section 3.1. Amount Unlimited; Issuable in Series
	 	 	23	 
	Section 3.2. Denominations
	 	 	25	 
	Section 3.3. Execution, Authentication, Delivery and Dating
	 	 	25	 
	Section 3.4. Temporary Securities
	 	 	26	 
	Section 3.5. Registration, Registration of Transfer and Exchange
	 	 	27	 
	Section 3.6. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	28	 
	Section 3.7. Payment of Interest; Interest Rights Preserved
	 	 	28	 
	Section 3.8. Persons Deemed Owners
	 	 	30	 
	Section 3.9. Cancellation
	 	 	30	 
	Section 3.10. Interest
	 	 	30	 
	Section 3.11. Form and Payment
	 	 	32	 
	Section 3.12. Global Securities
	 	 	32	 
	 
	 	 	 	 
	ARTICLE IV Satisfaction And Discharge; Defeasance
	 	 	33	 
	Section 4.1. Satisfaction and Discharge of Indenture
	 	 	33	 
	Section 4.2. Defeasance and Discharge
	 	 	34	 
	Section 4.3. Covenant Defeasance
	 	 	35	 

i 

 

	 	 	 	 	 
	Section 4.4. Conditions to Defeasance or Covenant Defeasance
	 	 	36	 
	Section 4.5. Application of Trust Money
	 	 	36	 
	Section 4.6. Indemnity for U.S. Government Obligations
	 	 	37	 
	Section 4.7. Reinstatement
	 	 	37	 
	 
	 	 	 	 
	ARTICLE V Remedies
	 	 	37	 
	Section 5.1. Events of Default and Acceleration
	 	 	37	 
	Section 5.2. Acceleration of Maturity
	 	 	38	 
	Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	38	 
	Section 5.4. Trustee to File Claims As Attorney-In-Fact
	 	 	39	 
	Section 5.5. Application of Money Collected
	 	 	40	 
	Section 5.6. Control by Holders; Waiver of Past Default
	 	 	41	 
	Section 5.7. Limitation on Suits; Default
	 	 	41	 
	Section 5.8. Costs and Attorneys’ Fees in Legal Proceedings
	 	 	43	 
	Section 5.9. Remedies Cumulative
	 	 	43	 
	Section 5.10. Waiver of Stay or Extension Laws
	 	 	44	 
	Section 5.11. Limitation on Claim for Certain Deferred Interest in Bankruptcy
	 	 	44	 
	 
	 	 	 	 
	ARTICLE VI The Trustee
	 	 	44	 
	Section 6.1. Certain Duties and Responsibilities
	 	 	44	 
	Section 6.2. Notice of Defaults
	 	 	46	 
	Section 6.3. Certain Rights of Trustee
	 	 	46	 
	Section 6.4. Not Responsible for Recitals or Issuance of Securities
	 	 	47	 
	Section 6.5. May Hold Securities
	 	 	47	 
	Section 6.6. Money Held in Trust
	 	 	47	 
	Section 6.7. Compensation and Reimbursement
	 	 	47	 
	Section 6.8. Disqualification; Conflicting Interests
	 	 	49	 
	Section 6.9. Corporate Trustee Required; Eligibility
	 	 	49	 
	Section 6.10. Resignation and Removal; Appointment of Successor
	 	 	49	 
	Section 6.11. Acceptance of Appointment by Successor
	 	 	50	 
	Section 6.12. Merger, Conversion, Consolidation or Succession to Business
	 	 	53	 
	Section 6.13. Preferential Collection of Claims Against Company
	 	 	53	 
	Section 6.14. Appointment of Authenticating Agent
	 	 	53	 
	 
	 	 	 	 
	ARTICLE VII Holders Lists and Reports by Trustee and Company
	 	 	55	 
	Section 7.1. Company to Furnish Trustee Names and Addresses of Holders
	 	 	55	 
	Section 7.2. Preservation of Information; Communications to Holders
	 	 	55	 
	Section 7.3. Reports by Trustee
	 	 	55	 
	Section 7.4. Reports by Company
	 	 	56	 

ii 

 

	 	 	 	 	 
	ARTICLE VIII Consolidation, Merger, Conveyance, Transfer Or Lease
	 	 	57	 
	Section 8.1. Company May Consolidate, Etc., Only on Certain Terms
	 	 	57	 
	Section 8.2. Successor Corporation Substituted
	 	 	58	 
	Section 8.3. Effect of Business Combination
	 	 	58	 
	 
	 	 	 	 
	ARTICLE IX Supplemental Indentures
	 	 	58	 
	Section 9.1. Supplemental Indentures Without Consent of Holders
	 	 	58	 
	Section 9.2. Supplemental Indentures with Consent of Holders
	 	 	 60	 
	Section 9.3. Execution of Supplemental Indentures
	 	 	62	 
	Section 9.4. Effect of Supplemental Indentures
	 	 	62	 
	Section 9.5. Conformity with Trust Indenture Act
	 	 	62	 
	Section 9.6. Reference in Securities to Supplemental Indentures
	 	 	62	 
	 
	 	 	 	 
	ARTICLE X Covenants
	 	 	62	 
	Section 10.1. Payment of Principal, Premium and Interest
	 	 	62	 
	Section 10.2. Maintenance of Office or Agency
	 	 	62	 
	Section 10.3. Money for Securities Payments to Be Held in Trust
	 	 	63	 
	Section 10.4. Statement by Officers as to Default
	 	 	64	 
	Section 10.5. Covenants as to Citigroup Trusts
	 	 	64	 
	Section 10.6. Payment of Expenses
	 	 	65	 
	Section 10.7. Listing on an Exchange
	 	 	66	 
	Section 10.8. Future Issuance of Securities
	 	 	66	 
	 
	 	 	 	 
	ARTICLE XI Redemption Of Securities
	 	 	66	 
	Section 11.1. Applicability of Article; Federal Reserve Concurrence or Approval
	 	 	66	 
	Section 11.2. Election to Redeem; Notice to Trustee
	 	 	66	 
	Section 11.3. Selection by Trustee of Securities to Be Redeemed
	 	 	67	 
	Section 11.4. Notice of Redemption
	 	 	67	 
	Section 11.5. Deposit of Redemption Price
	 	 	68	 
	Section 11.6. Securities Payable on Redemption Date
	 	 	68	 
	Section 11.7. Securities Redeemed in Part
	 	 	68	 
	Section 11.8. Tax Event Redemption
	 	 	69	 
	 
	 	 	 	 
	ARTICLE XII [INTENTIONALLY OMITTED]
	 	 	69	 
	 
	 	 	 	 
	ARTICLE XIII Extension Of Interest Payment Period
	 	 	69	 
	Section 13.1. Extension of Interest Payment Period
	 	 	69	 
	Section 13.2. Notice of Extension
	 	 	70	 
	Section 13.3. Limitation of Transactions
	 	 	71	 
	Section 13.4. Limitation on Source of Payment of Deferred Interest
	 	 	71	 
	Section 13.5. Obligation to Effect Certain Common Stock Sales
	 	 	72	 
	Section 13.6. Notice of Market Disruption Event
	 	 	74	 
	Section 13.7. Notice of Supervisory Event
	 	 	74	 
	Section 13.8. Notices to the Federal Reserve
	 	 	74	 

iii 

 

	 	 	 	 	 
	Section 13.9. Obligation to Notify Federal Reserve of Intent to Sell Stock
	 	 	74	 
	 	 	 	 	 
	ARTICLE XIV Subordination Of Securities
	 	 	75	 
	Section 14.1. Agreement to Subordinate
	 	 	75	 
	Section 14.2. Default on Senior Indebtedness
	 	 	75	 
	Section 14.3. Liquidation; Dissolution; Bankruptcy
	 	 	76	 
	Section 14.4. Subrogation
	 	 	77	 
	Section 14.5. Trustee to Effectuate Subordination
	 	 	79	 
	Section 14.6. Notice by the Company
	 	 	79	 
	Section 14.7. Rights of the Trustee; Holders of Senior Indebtedness
	 	 	80	 
	Section 14.8. Subordination May Not Be Impaired
	 	 	80	 
	Section 14.9. Trustee’s Compensation Not Prejudiced
	 	 	80	 
	Section 14.10. Disclaimer of Right to Enforce Covenants
	 	 	80	 
	 
	 	 	 	 
	ARTICLE XV Miscellaneous
	 	 	81	 
	Section 15.1. Acknowledgement of Rights
	 	 	81	 
	Section 15.2. Severability
	 	 	81	 
	Section 15.3. Counterparts
	 	 	81	 

iv 

 

INDEX OF TERMS

	 	 	 	 	 
	 	 	Page	 
	Act
	 	 	2,13	 
	Additional Interest
	 	 	2,31	 
	Affiliate
	 	 	2	 
	Authenticating Agent
	 	 	2	 
	Board of Directors
	 	 	2	 
	Board Resolution
	 	 	2	 
	Book Entry Interest
	 	 	2	 
	Business Day
	 	 	2	 
	Citigroup Standard TruPS® Trust
	 	 	2	 
	Citigroup Trust
	 	 	3	 
	Commission
	 	 	3	 
	Common Securities
	 	 	3	 
	Company
	 	 	1,3,17	 
	Company Order
	 	 	3	 
	Company Request
	 	 	3	 
	Compounded Interest
	 	 	3,68	 
	Corporate Trust Office
	 	 	3	 
	Coupon Rate
	 	 	3,30	 
	Covenant Defeasance
	 	 	3,35	 
	Current Stock Market Price
	 	 	3	 
	Declaration
	 	 	4	 
	Defaulted Interest
	 	 	4,29	 
	Defeasance
	 	 	4,35	 
	Deferred Interest
	 	 	4,69	 
	Delaware Trustee
	 	 	4	 
	Depositary
	 	 	4	 
	Direct Action
	 	 	4,80	 
	Dissolution Event
	 	 	4	 
	Distributions
	 	 	4	 
	Event of Default and Acceleration
	 	 	4	 
	Exchange Act
	 	 	4	 
	Extended Interest Payment Period
	 	 	4,21,68	 
	Federal Reserve
	 	 	4	 
	Fifth Deferral Anniversary
	 	 	5	 
	Floating or Adjustable Rate Provision
	 	 	5	 
	Floating or Adjustable Rate Security
	 	 	5	 
	generally accepted accounting principles
	 	 	1	 
	Global Security
	 	 	5	 
	Holder
	 	 	5	 
	Indenture
	 	 	5,19	 
	Institutional Trustee
	 	 	5	 
	Interest Payment Date
	 	 	5,17,30	 
	Market Disruption Event
	 	 	5	 

i 

 

	 	 	 	 	 
	 	 	Page	 
	Maturity
	 	 	5	 
	Ministerial Action
	 	 	68	 
	New Equity Amount
	 	 	6	 
	No Recognition Opinion
	 	 	7	 
	Non Book-Entry Preferred Securities
	 	 	7,32	 
	Officers’ Certificate
	 	 	7	 
	Opinion of Counsel
	 	 	7	 
	Optional Redemption
	 	 	19	 
	Optional Redemption Price
	 	 	19	 
	Outstanding
	 	 	7	 
	Paying Agent
	 	 	8	 
	Person
	 	 	8	 
	Place of Payment
	 	 	8	 
	Predecessor Security
	 	 	8	 
	Preferred Securities
	 	 	8	 
	Preferred Security Certificate
	 	 	8	 
	Qualified Warrants
	 	 	8	 
	Qualifying Capital Securities
	 	 	8	 
	Quarterly Interest Accrual Period
	 	 	9	 
	Redemption Date
	 	 	9	 
	Redemption Option Date
	 	 	9	 
	Redemption Price
	 	 	9	 
	Redemption Tax Opinion
	 	 	9	 
	Regular Record Date
	 	 	9	 
	Regular Trustees
	 	 	9	 
	Responsible Officer
	 	 	9	 
	Securities
	 	 	1,9,19	 
	Security Beneficial Owner
	 	 	9	 
	Security Register
	 	 	9,27	 
	Security Registrar
	 	 	9,27	 
	Senior Indebtedness
	 	 	9	 
	Special Event
	 	 	10	 
	Special Record Date
	 	 	10	 
	Stated Maturity
	 	 	11	 
	Supervisory Event
	 	 	11	 
	Tax Event
	 	 	11	 
	Tax Event Opinion
	 	 	11	 
	Tenth Deferral Anniversary
	 	 	11	 
	Trust Indenture Act
	 	 	11	 
	Trust Securities
	 	 	11	 
	Trustee
	 	 	1,11,19	 
	U.S. Government Obligations
	 	 	11,36	 
	Underwriting Agreement
	 	 	11	 
	Vice President
	 	 	12	 

ii 

 

Citigroup Inc.

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of July 23, 2004

	 	 	 	 	 
	Trust Indenture	 	 
	     Act Section	 	Indenture Section
	§ 310
	 	(a)(1)	 	6.9
	 
	 	(a)(2)	 	6.9
	 
	 	(a)(3)	 	Not Applicable
	 
	 	(a)(4)	 	Not Applicable
	 
	 	(b)	 	6.8 6.10
	§ 311
	 	(a)	 	6.13(a)
	 
	 	(b)	 	6.13(b)
	 
	 	(b)(2)	 	7.3(a)(2)
	 
	 	 	 	7.3(b)
	§ 312
	 	(a)	 	7.1 7.2(a)
	 
	 	(b)	 	7.2(b)
	 
	 	(c)	 	7.2(c)
	§ 313
	 	(a)	 	7.3(a)
	 
	 	(b)	 	7.3(b)
	 
	 	(c)	 	7.3(a). 7.3(b)
	 
	 	(d)	 	7.3(c)
	§ 314
	 	(a)	 	7.4
	 
	 	(b)	 	Not Applicable
	 
	 	(c)(1)	 	1.2
	 
	 	(c)(2)	 	1.2
	 
	 	(c)(3)	 	Not Applicable
	 
	 	(d)	 	Not Applicable
	 
	 	(e)	 	1.2
	§ 315
	 	(a)	 	6.1(a)
	 
	 	(b)	 	6.2
	 
	 	 	 	7.3(a)(6)
	 
	 	(c)	 	6.1(b)
	 
	 	(d)	 	6.1(c)
	 
	 	(d)(1)	 	6.1(a)(1)
	 
	 	(d)(2)	 	6.1(c)(2)
	 
	 	(d)(3)	 	6.1(c)(3)
	 
	 	(e)	 	5.14
	§ 316
	 	(a)	 	1.1
	 
	 	(a)(1)(A)	 	5.2
	 
	 	 	 	5.12
	 
	 	(a)(1)(B)	 	5.13
	 
	 	(a)(2)	 	Not Applicable
	 
	 	(b)	 	5.8

viii 

 

	 	 	 	 	 
	Trust Indenture	 	 
	     Act Section	 	Indenture Section
	§ 317
	 	(a)(1)	 	5.3
	 
	 	(a)(2)	 	5.4
	 
	 	(b)	 	10.3
	§ 318
	 	(a)	 	1.7

 

			
	
NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.

ix 

 

     INDENTURE, dated as of [       ], 2007, between CITIGROUP INC., a corporation duly
organized and existing under the laws of the State of Delaware (herein called the “Company”),
having its principal office at 399 Park Avenue, New York, New York 10043, and THE BANK OF NEW YORK,
a national banking association duly organized and existing under the laws of the United States of
America, as Trustee (herein called the “Trustee”).

Recitals of the Company

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured junior subordinated deferrable interest debentures,
notes or other evidences of indebtedness (herein called the “Securities”), to be issued
in one or more series as in
Indenture provided.

     All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of series thereof, as follows:

ARTICLE I

Definitions And Other Provisions

of General Application

Section 1.1. Definitions.

     For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

     (1) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

     (2) all other terms used herein which are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;

     (3) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles, and, except as otherwise
herein expressly provided, the term “generally accepted accounting principles” with respect
to any computation required or permitted hereunder shall mean such accounting principles as
are generally accepted at the date of such computation; and

 

 

     (4) the words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision.

     Certain terms, used principally in Article Six, are defined in that Article.

     “Act” when used with respect to any Holder, has the meaning specified in Section 1.4.

     “Additional Interest” has the meaning specified in Section 3.10(c).

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

     “Alternative Payment Mechanism” has the meaning specified in Section 13.5(a).

     “APM Maximum Obligation” has the meaning specified in Section 13.5(f).

     “Authenticating Agent” means any Person authorized by the Trustee to act on behalf of the
Trustee to authenticate Securities.

     “Board of Directors” means either the board of directors of the Company or any duly authorized
committee of that board.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification, and delivered to the Trustee.

     “Book Entry Interest” means a beneficial interest in a Global Security, ownership of which
shall be maintained and transfers of which shall be made through book entries by the Depositary.

     “Business Day” means any day other than a Saturday, Sunday or any other day on which banking
institutions in New York, New York are authorized or obligated by any applicable law to close.

     “Citigroup Standard TruPS® Trust” means each of Citigroup Capital II,
Citigroup Capital VI, Citigroup Capital VII,

 

			
	
®
 Trups
®
is a registered service mark of Citigroup Global Markets Inc. Citigroup Global
Markets Inc. has applied for patent protection for the Enhanced
Trups®
 structure.

2

 

Citigroup Capital VIII, Citigroup Capital IX, Citigroup Capital X, Citigroup Capital XI,
Citigroup Capital XII and Citigroup Capital XIII, each a Delaware statutory trust, or any other
similar trust created for the purpose of issuing preferred securities in connection with the
issuance of junior subordinated debt securities under either (i) the junior subordinated debt
indenture dated as of July 23, 2004, between Citigroup and JP Morgan Chase Bank, as trustee, as the
same has been or may be amended, modified, or supplemented from time to time or (ii) the indenture,
dated as of October 7, 1996, between Citigroup and JPMorgan Chase Bank, N.A., as trustee, as the
same has been amended, modified, or supplemented.

     “Citigroup Trust” means Citigroup Capital XV, Citigroup Capital XVI, Citigroup Capital XVII or
Citigroup Capital XVIII or any other similar trust created for the purpose of issuing preferred
securities in connection with the issuance of Securities under this Indenture.

     “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act, or, if at any time after the execution of this instrument such
Commission is not existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

     “Common Securities” means undivided beneficial interests in the assets of a Citigroup Trust
which rank, except upon the occurrence and continuation of an Event of Default, pari passu with
Preferred Securities issued by such Citigroup Trust.

     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor corporation shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor corporation.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman or a Vice Chairman of the Board, its President, a Vice President, its
Chief Financial Officer, its Chief Accounting Officer or its Treasurer, and by a Deputy Treasurer,
an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

     “Compounded Interest” has the meaning specified in Section 13.1.

     “Corporate Trust Office” means the principal office of the Trustee in the City of New York,
New York at which at any particular time its corporate trust business shall be principally
administered, which at the date hereof is located at 101 Barclay Street-8W New York, New York
10286.

     “Coupon Rate” has the meaning specified in Section 3.10(a).

     “Covenant Defeasance” has the meaning specified in Section 4.3.

     “Current Stock Market Price” on any date shall be the closing sale price per share of common
stock of the Company (or if no closing sale price is reported, the average of the bid and ask
prices or, if more than one in either case, the average of the average bid

3

 

and the average ask
prices) on that date as reported in composite transactions by the New York Stock Exchange or, if
the Company’s common stock is not then listed on the New York Stock Exchange, as reported by the
principal U.S. securities exchange on which the Company’s common stock is listed. If the Company’s
common stock is not either listed on any U.S. securities exchange on the relevant date, the Current
Stock Market Price shall be the last quoted bid price for its common stock in the over-the-counter
market on the relevant date as reported by the National Quotation Bureau or similar organization.
If the Company’s common stock is not so quoted, the Current Stock Market Price shall be the average
of the mid-point of the last bid and ask prices for its common stock on the relevant date from each
of at least three nationally recognized independent investment banking firms selected by the
Company for this purpose.

     “Declaration” means, with respect to a Citigroup Trust, the amended and restated declaration
of trust or any other governing instrument of such Citigroup Trust.

     “Default” has the meaning specified in Section 5.7.

     “Defaulted Interest” has the meaning specified in Section 3.7.

     “Defeasance” has the meaning specified in Section 4.2.

     “Deferred Interest” has the meaning specified in Section 13.1.

     “Delaware Trustee” has the meaning specified in the Declaration of the applicable Citigroup
Trust.

     “Depositary” means, with respect to Securities of any series issuable in whole or in part in
the form of one or more Global Securities, a clearing agency registered under the Exchange Act that
is designated to act as Depositary for such Securities as contemplated by Section 3.1.

     “Direct Action” has the meaning specified in Section 15.1.

     “Dissolution Event” means, with respect to a Citigroup Trust, that as a result of the
occurrence and continuation of a Special Event with respect to such Citigroup Trust, such Citigroup
Trust is to be dissolved in accordance with its Declaration.

     “Distributions” on Trust Securities of a Citigroup Trust has the meaning set forth in the
Declaration of such Citigroup Trust.

     “Event of Default and Acceleration” has the meaning specified in Section 5.1.

     “Exchange Act” means the Securities Exchange Act of 1934 as amended from time to time, and any
successor legislation.

     “Extended Interest Payment Period” has the meaning specified in Section 13.1.

4

 

     “Federal Reserve” means either or both of the Board of Governors of the Federal Reserve System
and the Federal Reserve Bank of New York, or its successor as the Company’s primary federal banking
regulator.

     “Fifth Deferral Anniversary” means the date which is five (5) years after the date of
commencement of an Extended Interest Payment Period, if on such date such Extended Interest Payment
Period has not ended.

     “Floating or Adjustable Rate Provision” means a formula or provision, specified in a Board
Resolution or an indenture supplemental hereto, providing for the determination, whether pursuant
to objective factors or pursuant to the sole discretion of any Person (including the Company), and
periodic adjustment of the interest rate per annum borne by a Floating or Adjustable Rate Security.

     “Floating or Adjustable Rate Security” means any Security which provides for interest to be
payable thereon at a rate per annum that may vary from time to time over the term thereof in
accordance with a Floating or Adjustable Rate Provision.

     “Global Security” means a Security that evidences all or part of the Securities of any series
and is authenticated and delivered to, and registered in the name of, the Depositary for such
Securities or a nominee thereof.

     “Holder” means a Person in whose name a Security is registered in the Security Register.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and shall include the terms of particular series of Securities
established as contemplated by Section 3.1.

     “Institutional Trustee” has the meaning set forth in the Declaration of the applicable
Citigroup Trust.

     “Interest Payment Date,” when used with respect to any Security, means the Stated Maturity of
an installment of interest on such Security.

     “Maturity,” when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

     “Market Disruption Event,” means the occurrence or existence of any of the following events
or circumstances:

          (1) the Company would be required to obtain the consent or approval of its shareholders or a
regulatory body (including, without limitation, any securities exchange but excluding the Federal
Reserve) or governmental authority to issue or sell shares of its common stock and such consent or
approval has not yet been obtained even

5

 

though the Company has used commercially reasonable efforts
to obtain the required consent or approval;

          (2) trading in securities generally on the principal exchange on which the Company’s
securities are listed and traded (as of the date hereof, the New York Stock Exchange) shall have
been suspended or materially disrupted or minimum prices shall have been established on any such
exchange or market by the Commission, by the relevant exchange or any other regulatory body or by
governmental authority having jurisdiction;

          (3) an event occurs and is continuing as a result of which the offering document for such
offer and sale of securities would, in the reasonable judgment of the Company, contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and either (1) the disclosure of that event
at such time, in the reasonable judgment of the Company, would have a material adverse effect on
the Company’s business or (2) the disclosure relates to a previously undisclosed proposed or
pending material development or business transaction, and the Company has a bona fide business
reason for keeping the same confidential or the disclosure of which would impede the Company’s
ability to consummate such transaction, provided that no single suspension period contemplated by
this paragraph (iii) may exceed 90 consecutive days and multiple suspension periods contemplated by
this paragraph (iii) may not exceed an aggregate of 90 days in any 180-day period;

          (4) the Company reasonably believes that the offering document for such offer and sale of
securities would not be in compliance with a rule or regulation of the Commission (for reasons
other than those referred to in paragraph (iii) above) and the Company is unable to comply with
such rule or regulation or such compliance is impracticable, provided that no single suspension
contemplated by this paragraph (iv) may exceed 90 consecutive days and multiple suspension periods
contemplated by this paragraph (iv) may not exceed an aggregate of 90 days in any 180-day period;

          (5) there is an adverse change in general domestic or international economic, political or
financial conditions, including without limitation as a result of terrorist activities, or the
effect of international conditions on the financial markets in the United States and such adverse
change materially disrupts or otherwise has a material adverse effect on the issuance, sale or
trading of the Company’s common stock;

          (6) a material disruption shall have occurred in commercial banking or securities settlement
or clearing services in the United States; or

          (7) a banking moratorium shall have been declared by federal or state authorities of the
United States.

     “New Equity Amount” means, at any date, (i) the net cash proceeds (after underwriters’ or
placement agents’ fees, commissions or discounts and other expenses relating to the issuances),
plus (ii) the fair market value of property, other than cash

6

 

(based on the Current Stock Market
Price of common stock issued or delivered for such property), received by the Company during the
180-day period immediately prior to such date in arm’s length transactions, from the issuance or
sale of shares of (A) the Company’s common stock, including treasury shares and shares of common
stock sold pursuant to the Company’s dividend reinvestment plan and employee benefit plans and (B)
the Company’s Qualified Warrants.

     “No Recognition Opinion,” with respect to a Citigroup Trust, has the meaning specified in the
Declaration of such Citigroup Trust.

     “Non Book-Entry Preferred Securities” has the meaning specified in Section 3.12(a)(ii).

     “Officers’ Certificate” means a certificate signed by the Chairman or Vice Chairman of the
Board, the President, a Vice President, the Chief Financial Officer, the Chief Accounting Officer
or the Treasurer, and by a Deputy Treasurer, an Assistant Treasurer, the Secretary or an Assistant
Secretary, of the Company, and delivered to the Trustee. The officer signing an Officer’s
Certificate pursuant to Section 10.4 shall be the principal executive, financial or accounting
officer of the Issuer or the Company, as the case may be.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company.

     “Outstanding,” when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture, except:

          (i) Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

          (ii) Securities for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent
(other than the Company) in trust or set aside and segregated in trust by the Company (if the
Company shall act as its own Paying Agent) for the Holders of such Securities; provided that, if
such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made; and

          (iii) Securities which have been paid pursuant to Section 3.6 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a protected purchaser in whose hands such
Securities are valid obligations of the Company;

provided that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice,

7

 

consent or
waiver hereunder, Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding; provided, however, that, in determining whether the Trustee shall be protected in
relying, upon any such request, demand, authorization, direction, notice, consent or waiver, only
Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be so
disregarded and provided, further, that Securities held by the Institutional Trustee for the
benefit of the holders of the Trust Securities shall not be so disregarded. Securities so owned
which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to
the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and
that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of
the Company or of such other obligor.

     “Paying Agent” means any Person authorized by the Company to pay the principal of (or premium,
if any) or interest on any Securities on behalf of the Company.

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

     “Place of Payment,” when used with respect to the Securities of any series, means the place or
places where the principal of (and premium, if any) and interest on the Securities of that series
are payable as specified as contemplated by Section 3.1.

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 3.6 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

     “Preferred Securities” means undivided beneficial interests in the assets of a Citigroup Trust
which rank, except upon the occurrence and continuation of an Event of Default and Acceleration,
pari passu with Common Securities issued by such Citigroup Trust.

     “Preferred Security Certificate” has the meaning specified in the Declaration of the
applicable Citigroup Trust.

     “Qualified Warrants” means warrants for the Company’s common stock that (1) have an exercise
price greater than the Current Stock Market Price of the Company’s common stock on their date of
issuance, and (2) the Company is not entitled to redeem for cash and the holders are not entitled
to require the Company to repurchase for cash in any circumstances.

     “Qualifying Capital Securities” means securities (other than common stock, rights to acquire
common stock and securities convertible into common stock) that, in the determination of the Board
of Directors, have equity-like characteristics that are the same

8

 

as, or more equity-like than, the
applicable characteristics of the Securities at the time of redemption and repurchase.

     “Quarterly Interest Accrual Period” means each period commencing on an Interest Payment Date
and continuing to but not including the next succeeding Interest Payment Date.

     “Redemption Date,” when used with respect to any Security to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.

     “Redemption Option Date” means, with respect to a series of Securities, the date specified as
contemplated by Section 3.1 on or after which, from time to time, the Company, at its option, may
redeem such series of Securities in whole or in part.

     “Redemption Price,” when used with respect to any Security to be redeemed, means such
percentage of the principal amount of such Security that is specified pursuant to Section 3.1 plus
any accrued and unpaid interest thereon to the date of redemption.

     “Redemption Tax Opinion,” with respect to a Citigroup Trust, has the meaning set forth in the
Declaration of the applicable Citigroup Trust.

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified as such pursuant to Section 3.1.

     “Regular Trustees” has the meaning set forth in the Declaration of the applicable Citigroup
Trust.

     “Responsible Officer” means, with respect to the Trustee, any officer within the Corporate
Trust Office of the Trustee having direct responsibility for the administration of this Indenture
and also means, with respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of that officer’s knowledge of and familiarity with the particular
subject.

     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.

     “Security Beneficial Owner” means, with respect to a Book Entry Interest, a person who is the
beneficial owner of such Book Entry Interest, as reflected on the books of the Depositary, or on
the books of a Person maintaining an account with such Depositary (directly as a Depositary
participant or as an indirect participant, in each case in accordance with the rules of the
Depositary).

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
3.5.

     “Senior Indebtedness” means with respect to the Company:(i) the principal, premium, if any,
and interest in respect of (A) indebtedness for money borrowed and (B) indebtedness evidenced by
securities, notes, debentures, bonds or other similar

9

 

instruments issued by the Company, including
without limitation (a) all indebtedness (whether now or hereafter outstanding) issued under the
senior debt indenture, dated as of March 15, 1987, between Citigroup and The Bank of New York, as
trustee, as the same has been or may be amended, modified, or supplemented from time to time, (b)
all indebtedness (whether now or hereafter outstanding) issued under the subordinated debt
indenture, dated as of April 12, 2001, between Citigroup and J.P. Morgan Trust Company, National
Association, as trustee, as the same has been or may be amended, modified, or supplemented from
time to time, (c) all indebtedness (whether now or hereafter outstanding) issued to a Citigroup
Standard TruPS® Trust under the junior subordinated debt indenture dated as of
July 23, 2004, between Citigroup and JP Morgan Chase Bank, N.A., as trustee, as the same has been
or may be amended, modified, or supplemented from time to time, (d) all indebtedness issued to a
Citigroup Standard TruPS® Trust under the indenture, dated as of October 7,
1996, between Citigroup and JPMorgan Chase Bank, N.A., as trustee, as the same has been or may be
amended, modified, or supplemented from time to time, and (e) any guarantee entered into by
Citigroup in respect of any preferred securities, capital securities or preference stock of a
Citigroup Standard TruPS® Trust to which Citigroup issued any indebtedness
under a junior subordinated debt indenture identified in (c) or (d) above; (ii) all capital lease
obligations of the Company; (iii) all obligations of the Company issued or assumed as the deferred
purchase price of property, all conditional sale obligations of the Company and all obligations of
the Company under any conditional sale or title retention agreement (but excluding trade accounts
payable in the ordinary course of business); (iv) all obligations, contingent or otherwise, of the
Company in respect of any letters of credit, banker’s acceptance, security purchase facilities and
similar credit transactions; (v) all obligations of the Company in respect of interest rate swap,
cap or other agreements,
interest rate future or option contracts, currency swap agreements, currency future or option
contracts and other similar agreements; (vi) all obligations of the type referred to in clauses (i)
through (v) of other Persons for the payment of which the Company is responsible or liable as
obligor, guarantor or otherwise; and (vii) all obligations of the type referred to in clauses (i)
through (vi) of other Persons secured by any lien on any property or asset of the Company (whether
or not such obligation is assumed by the Company), except that Senior Indebtedness does not
include obligations in respect of (1) any indebtedness issued under this Indenture, (2) any
guarantee entered into by the Company in respect of any capital securities issued by a Citigroup
Trust, (3) any indebtedness or any guarantee that is by its terms subordinated to, or ranks equally
with, the Securities (including the indebtedness issued in connection with the issuance of enhanced
capital securities by Citigroup Capital XIV) and the issuance of which does not at the time of
issuance prevent the Securities from qualifying for Tier 1 capital treatment (irrespective of any
limits on the amount of Citigroup’s Tier 1 capital) under applicable capital adequacy guidelines,
regulations, policies, published interpretations, or the concurrence or approval of the Federal
Reserve; or (4) trade accounts payable and other accrued liabilities arising in the ordinary course
of business.

     “Share Cap Amount” has the meaning specified in Section 13.5(c).

     “Special Event,” with respect to a Citigroup Trust, has the meaning specified in the
Declaration of such Citigroup Trust.

10

 

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.7.

     “Stated Maturity,” when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable.

     “Supervisory Event,” shall commence upon the later to occur of (i) the Fifth Deferral
Anniversary and (ii) the date on which the Company has given notice to the Federal Reserve pursuant
to Section 13.9 of its intention both (1) to sell shares of its common stock and (2) to apply the
net proceeds from such sale to pay Deferred Interest. A Supervisory Event shall cease upon the
Business Day following the earlier to occur of (A) the tenth business day after the Company gives
notice to the Federal Reserve described in clause (ii) above so long as the Federal Reserve does
not disapprove of the Company’s intention both (1) to sell common stock and (2) to apply the net
proceeds from such sale to pay Deferred Interest, (B) the Tenth Deferral Anniversary or (C) the day
on which the Federal Reserve notifies the Company in writing that it no longer disapproves of the
Company’s intention both (1) to sell common stock and (2) to apply the net proceeds from such sale
to pay Deferred Interest; provided, however, that after the termination of a
Supervisory Event, if the Federal Reserve shall at any time disapprove of the Company (1) selling
common stock and (2) applying the net proceeds from such sale to pay Deferred Interest, a
Supervisory Event shall recommence.

     “Tax Event,” with respect to a Citigroup Trust, has the meaning set forth in the Declaration
of the applicable Citigroup Trust.

     “Tax Event Opinion,” with respect to a Citigroup Trust, has the meaning set forth in the
Declaration of the applicable Citigroup Trust.

     “Tenth Deferral Anniversary “ means the date which is ten (10) years after the date of
commencement of an Extended Interest Payment Period, if on such date such Extended Interest Payment
Period has not ended.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as in force at the date as of
which this instrument was executed, except as provided in Section 9.5.

     “Trust Securities” means Common Securities and Preferred Securities of any Citigroup Trust.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series shall mean the Trustee with respect to Securities of that series.

11

 

     “Underwriting Agreement” has the meaning set forth in the Declaration of the applicable
Citigroup Trust.

     “U.S. Government Obligations” has the meaning specified in Section 4.4.

     “Vice President,” when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president.”

Section 1.2. Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate
stating that all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel sating that in the opinion of
such counsel all such conditions precedent, if any, have been complied with, except that in the
case of any such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such particular application or
request, no additional certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include,

     (1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (3) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion
as to whether or not such covenant or condition has been complied with; and

     (4) a statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.

Section 1.3. Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

12

 

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an officer or officers of
the Company stating that the information with respect to such factual matters is in the possession
of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that
the certificate or opinion or representations with respect to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

Section 1.4. Acts of Holders; Record Dates.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given or taken by Holders shall be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by an agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to
the Trustee and, where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders
signing such instrument or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to
Section 6.1) conclusive in favor of the Trustee and the Company, if made in the manner provided in
this Section.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.

     (c) The ownership of Securities shall be proved by the Security Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered

13

 

to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

Section 1.5. Notices, Etc., to Trustee and Company.

     Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,

     (1) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee at its
Corporate Trust Office, Attention: Institutional Trust Group; provided, however, that such
instrument will be considered properly given if submitted in an electronic format, i.e., by
facsimile, E-Mail or otherwise, or

     (2) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at the address of its principal
office specified in the first paragraph of this instrument or at any other address
previously furnished in writing to the Trustee by the Company; provided, however, that such
instrument will be considered properly given if submitted in an electronic format, i.e., by
facsimile, E-Mail or otherwise.

Section 1.6. Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest date and not earlier than the earliest date,
prescribed for the giving of such notice. In any case where notice to Holders is given by mail,
neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular
Holder shall affect the sufficiency of such notice with respect to other Holders. Where this
Indenture provides for notice in any manner, such notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken-in reliance upon such
waiver.

     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

Section 1.7. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with another provision hereof which is
required to be included in this Indenture by any of the provisions of the Trust Indenture Act, such
required provision shall control.

14

 

Section 1.8. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

Section 1.9. Successors and Assigns.

     All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

Section 1.10. Separability Clause.

     In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

Section 1.11. Benefits of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, the holders of Senior Indebtedness
and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture.

Section 1.12. Governing Law.

     This Indenture and the Securities shall be governed by, and construed and interpreted in
accordance with, the laws of the State of New York, and all rights and remedies shall be governed
by such laws without regard for the principles of its conflicts of laws.

Section 1.13. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities) payment of interest or principal (and premium, if
any) need not be made at such Place of Payment on such date, but may be made on the next succeeding
Business Day at such Place of Payment with the same force and effect as if made on the Interest
Payment Date or Redemption Date, or at the Stated Maturity, provided that no interest shall accrue
for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as
the case may be, except that, if such Business Day is in the next succeeding calendar year, such
payment shall be made on the immediately preceding Business Day, in each case with the same force
and effect as if made on such date.

Section 1.14. Tax Characterization.

     The Company, the Trustee and each Holder of a Security (by acceptance thereof) agrees to treat
the Securities as debt instruments for United States federal, state and local

15

 

income and franchise
tax purposes and agrees not to take any contrary position before any taxing authority or on any tax
return unless otherwise required by law.

ARTICLE II

Security Forms

Section 2.1. Forms Generally.The Securities of each series shall be in substantially the form
set forth in this Article, or in such other form as shall be established by or pursuant to a Board
Resolution or in one or more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any securities exchange
or Depositary therefor or as may, consistently herewith, be determined by the officers executing
such Securities, as evidenced by their execution of such Securities. If the form of Securities of
any series is established by action taken pursuant to a Board Resolution, a copy of an appropriate
record of such action shall be certified by the Secretary or an Assistant Secretary of the Company
and delivered to the
Trustee at or prior to the delivery of the Company Order contemplated by Section 3.3 for the
authentication and delivery of such Securities.

     The Trustee’s certificates of authentication shall be in substantially the form set forth in
this Article.

     The definitive Securities may be produced in any manner as determined by the officers
executing such Securities, as evidenced by their execution of such Securities.

Section 2.2. Form of Face of Security.[IF THE SECURITY IS TO BE A GLOBAL SECURITY, INSERT -
This Security is a Global Security within the meaning of the Indenture hereinafter referred to and
is registered in the name of a Depositary or a nominee of a Depositary. This Security is
exchangeable for Securities registered in the name of a person other than the Depositary or its
nominee only in the limited circumstances described in the Indenture, and no transfer of this
Security (other than a transfer of this Security as a whole by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another nominee of the
Depositary) may be registered except in limited circumstances.

     Unless this Security is presented by an authorized representative of The Depository Trust
Company (55 Water Street, New York, New York) to the issuer or its agent for registration of
transfer, exchange or payment, and any Security issued is registered in the name of Cede & Co. or
such other name as requested by an authorized representative of The Depository Trust Company and
any payment hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY A PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein.]

16

 

No.                     

CITIGROUP INC.

[INSERT TITLE OF SERIES OF SECURITY]

     CITIGROUP INC., a Delaware corporation (the “Company,” which term includes any successor
corporation under the Indenture hereinafter referred to), for value received, hereby promises to
pay to      
      
      
    or registered
assigns, the principal sum of      
          
      Dollars ($  
          
        ) on
        
        
    , ___, and to
pay interest on said principal sum from   
         
         , ___, or
from the most recent interest payment date (each such date, an “Interest Payment Date”) to which
interest has been paid or duly provided for, [quarterly] [(subject to deferral as set forth
herein)] in arrears on [     
           
    ,      
          
     ,    
            
      and   
      
      
      ] of each year
commencing      
         
      , ___, at [If
the Security is to bear interest at a fixed rate, insert
-a rate of ___% per annum,] [If
the Security is a Floating or Adjustable Rate Security, insert a rate of ___% per annum
[computed-determined] in accordance with the [insert defined name of Floating or Adjustable Rate
Provision] set forth below] until the principal hereof shall have become due and payable, and on
any overdue principal and premium, if any, and (without duplication and to the extent that payment
of such interest is enforceable under applicable law) on any overdue installment of interest at the
same rate per annum compounded [quarterly]. The amount of interest payable on any Interest Payment
Date shall be computed on the basis of a 360-day year of twelve 30-day months. In the event that
any date on which interest is payable on this Security is not a Business Day, then payment of
interest payable on such date will be made on the next succeeding day that is a Business Day (and
without any interest or other payment in respect of any such delay), except that, if such Business
Day is in the next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case with the same force and effect as if made on such date. The
interest installment 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 Security (or one
or more Predecessor Securities, as defined in said Indenture) is registered at the close of
business on the regular record date for such interest installment, which shall be the close of
business on the Business Day next preceding such Interest Payment Date, [IF PURSUANT TO THE
PROVISIONS OF THE INDENTURE THE SECURITIES ARE NO LONGER REPRESENTED BY A GLOBAL SECURITY — which
shall be the close of business on the ___Business Day
next preceding such Interest Payment Date.]
Any such interest installment not punctually paid or duly provided for shall forthwith cease to be
payable to the registered Holders on such regular record date and may be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on a special record date to be fixed by the Trustee for the payment of such defaulted
interest, notice whereof shall be given to the registered Holders of this series of Securities not
less than 10 days prior to such special record date, or may be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on which the Securities
may be listed, and upon such notice as may

17

 

be required by such exchange, all as more fully provided
in the Indenture. Payments on this Global Security will be made to the Depository Trust Company,
or to a successor Depositary. [IF PURSUANT TO THE PROVISIONS OF THE INDENTURE THE SECURITIES ARE
NO LONGER REPRESENTED BY A GLOBAL SECURITY —The principal of (and premium, if any) and the
interest on this Security shall be payable at the office or agency of the Trustee maintained for
that purpose in any coin or currency of the United States of America that at the time of payment is
legal tender for payment of public and private debts; provided, however, that payment of interest
may be made at the option of the Company by check mailed to the registered Holder at such address
as shall appear in the Security Register. Notwithstanding the foregoing, so long as the Holder of
this Security is the Institutional Trustee of a Citigroup Trust, the payment of the principal of
(and premium, if any) and interest on this Security will be made at such place and to such account
as may be designated by such Institutional Trustee.]

     The Securities are not deposits or savings accounts. The Securities are not insured by the
Federal Deposit Insurance Corporation or any other governmental agency or instrumentality.

     [At this point in the Security Form of any series of Floating or Adjustable Rate Securities,
the text of the Floating or Adjustable Rate Provision relating thereto should be inserted.]

     The indebtedness evidenced by this Security is, to the extent provided in the Indenture,
subordinate and junior in right of payment to the prior payment in full of all Senior Indebtedness
of the Company, and this Security is issued subject to the provisions of the Indenture with respect
thereto. Each Holder of this Security, by accepting the same, (a) agrees to and shall be bound by,
such provisions, (b) authorizes and directs the Trustee on his or her behalf to take such action as
may be necessary or appropriate to acknowledge or effectuate the subordination so provided and (c)
appoints the Trustee his or her attorney-in-fact for any and all such purposes. Each Holder
hereof, by his or her acceptance hereof, hereby waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder of Senior
Indebtedness of the Company, whether now outstanding or hereafter incurred, and waives reliance by
each such holder upon said provisions.

     This Security shall not be entitled to any benefit under the Indenture hereinafter referred
to, be valid or become obligatory for any purpose until the Certificate of Authentication hereon
shall have been signed by or on behalf of the Trustee.

     The provisions of this Security are continued on the reverse side hereof and such continued
provisions shall for all purposes have the same effect as though fully set forth at this place.

     IN WITNESS WHEREOF, the Company has caused this instrument to be executed.

Dated:                     

18

 

CITIGROUP INC.

By:                                                            

     Name:

     Title:

By:                                                            

     Name:

     Title:

Section 2.3. Form of Reverse of Security.This Security is one of a duly authorized series of
securities of the Company (herein sometimes referred to as the “Securities”), specified in the
Indenture, all issued or to be issued in one or more series under and pursuant to an Indenture
dated as of [            ], 2007 (the “Indenture”), duly executed and delivered between the
Company and The Bank of New York, as Trustee (the “Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the respective rights,
limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company
and the Holders of the Securities. By the terms of the Indenture, the Securities are issuable in
series that may vary as to amount, date of maturity, rate of interest and in other respects as
provided in the Indenture. This series of Securities is limited in aggregate principal amount to $
                    (, plus up to an additional $                      aggregate principal amount which may be issued
upon exercise of the over-allotment option contemplated by the Underwriting Agreement).

     The Company shall have the right to redeem this Security at the option of the Company, in
whole or in part, at any time on or after ___, 20___(an “Optional Redemption”), or any time in
certain circumstances upon the occurrence of a Tax Event, an Investment Company Event or a
Regulatory Capital Event (as defined in the Company’s Prospectus dated ___, 20___) (each, a
“Special Event”) at a redemption price equal to 100% of the principal amount thereof, plus any
accrued and unpaid interest to the date of such redemption (the “Optional Redemption Price”). Any
redemption pursuant to this paragraph will be made upon not less than 30 days nor more than 60 days
notice, or with respect to a redemption upon a Special Event, within 90 days following the
occurrence of such Special Event, at the Optional Redemption Price. If the Securities are only
partially redeemed by the Company pursuant to an Optional Redemption, the Securities will be
redeemed pro rata or by lot or by any other method utilized by the Trustee; provided that if, at
the time of redemption, the Securities are registered as a Global Security, the Depositary (as
defined herein) shall determine the principal amount of such Securities held by each Security
Beneficial Owner to be redeemed in accordance with its procedures.

19

 

     Any redemption of the Securities of this series, in whole or in part, prior to the stated
maturity date is subject to the prior concurrence or approval of the Board of Governors of the
Federal Reserve System, the Federal Reserve Bank of New York, or a successor to either of them, as
the Company’s primary federal banking regulator (the “Federal Reserve”), or the staff thereof, (i)
if such approval is then required in order for securities such as the Securities to qualify as tier
1 capital of a bank holding company under applicable capital adequacy guidelines, regulations,
policies, or published interpretations of the Federal Reserve, or (ii) if the Federal Reserve or
its staff has informed the Company that it must obtain such approval before redeeming the
Securities.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

     In case an Event of Default and Acceleration, as defined in the Indenture, shall have occurred
and be continuing, the principal of all of the Securities may be declared,
and upon such declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Securities of each
series affected at the time outstanding, as defined in the Indenture, to execute supplemental
indentures for the purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of the Indenture or of any supplemental indenture or of modifying in any manner
the rights of the Holders of the Securities; provided, however, that no such supplemental indenture
shall (i) extend the fixed maturity of any Securities of any series, or reduce the principal amount
thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any
premium payable upon the redemption thereof, without the consent of the Holder of each Security so
affected, or (ii) reduce the aforesaid percentage of Securities, the Holders of which are required
to consent to any such supplemental indenture, without the consent of the Holders of each Security
then outstanding and affected thereby. The Indenture also contains provisions permitting the
Holders of a majority in aggregate principal amount of the Securities of any series at the time
outstanding affected thereby, on behalf of all of the Holders of the Securities of such series, to
waive any past default in the performance of any of the covenants contained in the Indenture, or
established pursuant to the Indenture with respect to such series, and its consequences, except a
default in the payment of the principal of or premium, if any, or interest on any of the Securities
of such series. Any such consent or waiver by the registered Holder of this Security (unless
revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all
future Holders and owners of this Security and of any Security issued in exchange herefor or in
place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any
notation of such consent or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and

20

 

unconditional, to pay
the principal of and premium, if any, and interest on this Security at the time and place and at
the rate and in the money herein prescribed.

     The Company shall have the right at any time during the term of the Securities and from time
to time to extend the interest payment period of such Securities for up to 40 consecutive quarters
(an “Extended Interest Payment Period”), at the end of which period the Company shall pay all
interest then accrued and unpaid (together with interest thereon at the rate specified for the
Securities to the extent that payment of such interest is enforceable under applicable law);
provided, that no such Extended Interest Payment Period shall extend beyond the maturity of the
Securities; and provided further that during any such Extended Interest Payment Period (a) the
Company and any subsidiary of the Company shall not declare or pay any dividend on, make any
distributions with respect to, or redeem, purchase, acquire or make a liquidation payment with
respect to, any of its capital stock or make any guarantee payment with respect thereto (other than
(i) purchases, redemptions or other acquisitions of shares of capital stock of the Company in
connection with any employment contract, benefit plan or other similar arrangement with or for the
benefit of
employees, officers, directors or consultants, (ii) purchases of shares of common stock of the
Company pursuant to a contractually binding requirement to buy stock existing prior to the
commencement of the Extended Interest Payment Period, including under a contractually binding stock
repurchase plan, (iii) as a result of an exchange or conversion of any class or series of the
Company’s capital stock for any other class or series of the Company’s capital stock, (iv) the
purchase of fractional interests in shares of the Company’s capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being converted or
exchanged) or (v) the purchase of capital stock of the Company in connection with the distribution
thereof), and (b) the Company and any subsidiary of the Company will not make any payment of
interest, principal or premium on, or repay, purchase or redeem, any debt securities or guarantees
issued by the Company that rank pari passu with or junior to the Securities (other than (i) any
payment of current or Deferred Interest on securities that rank pari passu with the Securities that
is made pro rata to the amounts due on such securities (including the Securities), provided that
any such payments of Deferred Interest are made in accordance with Section 13.5(d) of the
Indenture, (ii) any payments of Deferred Interest on securities that rank pari passu with the
Securities that, if not made, would give rise to an event of default permitting acceleration of
such securities or (iii) any repayment or redemption of a security necessary to avoid a breach of
the instrument governing the same). The foregoing, however, will not apply to any stock dividends
paid by the Company where the dividend stock is the same stock as that on which the dividend is
being paid. Before the termination of any such Extended Interest Payment Period, the Company may
further extend such Extended Interest Payment Period, provided that such Extended Interest Payment
Period together with all such previous and further extensions thereof shall not exceed 40
consecutive quarters. At the termination of any such Extended Interest Payment Period and upon the
payment of all accrued and unpaid interest and any additional amounts then due, the Company may
commence a new Extended Interest Payment Period. The Company may pay current interest at any time
with cash from any source.

21

 

     Commencing on the earlier of (i) the Fifth Deferral Anniversary and (ii) the date of any
payment of current interest on the Securities during an Extended Interest Payment Period, if any
Deferred Interest is outstanding, the Company shall be subject to the Alternative Payment
Mechanism, pursuant to which it will continuously use its commercially reasonable efforts to effect
sales of shares of its common stock, including treasury shares, in an amount that will generate
sufficient net proceeds to enable the Company to pay in full all Deferred Interest on the
Securities then outstanding (subject to the APM Maximum Obligation, if applicable, and the Share
Cap Amount); provided that the Company shall not be obligated to make offers for or effect sales of
its common stock during the occurrence and continuation of a Market Disruption Event or a
Supervisory Event. The Company’s obligation to use commercially reasonable efforts to sell shares
of its common stock to pay all Deferred Interest on the Securities shall resume at such time as no
Market Disruption Event or Supervisory Event exists or is continuing. The Company may pay Deferred
Interest with cash from any source (i) upon and following the Tenth Deferral Anniversary, (ii) upon
the Maturity of the Securities, (iii) during the occurrence and continuation of a Supervisory
Event, (iv) if the Company has previously sold shares of its common stock up to the Share Cap
Amount and the Company has not
increased the Share Cap Amount or (v) if an Event of Default and Acceleration shall have
occurred and be continuing.

     The Holder of this Security, by such holder’s acceptance thereof, agrees that upon any payment
or distribution of assets to creditors of the Company upon any liquidation, dissolution, winding
up, reorganization, or in connection with any insolvency, receivership or proceeding under any
bankruptcy law with respect to the Company, such Holder shall not have a claim for Deferred
Interest, to the extent that the aggregate amount thereof (including Compounded Interest, and
Additional Interest thereon) exceeds 25% of the original principal amount of such Security.

     As provided in the Indenture and subject to certain limitations therein set forth, this
Security is transferable by the registered Holder hereof on the Security Register of the Company,
upon surrender of this Security for registration of transfer at the office or agency of the Trustee
in the City and State of New York accompanied by a written instrument or instruments of transfer in
form satisfactory to the Company or the Trustee duly executed by the registered Holder hereof or
his attorney duly authorized in writing, and thereupon one or more new Securities of authorized
denominations and for the same aggregate principal amount and series will be issued to the
designated transferee or transferees. No service charge will be made for any such transfer, but
the Company or the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge payable in relation thereto.

     Prior to due presentment for registration of transfer of this Security, the Company, the
Trustee, any paying agent and the Security Registrar may deem and treat the registered holder
hereof as the absolute owner hereof (whether or not this Security shall be overdue and
notwithstanding any notice of ownership or writing hereon made by anyone other than the Security
Registrar) for the purpose of receiving payment of or on account of the principal hereof and
premium, if any, and interest due hereon and for all

22

 

other purposes, and neither the Company nor
the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the
contrary.

     No recourse shall be had for the payment of the principal of or the interest on this Security,
or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture, against any incorporator, stockholder, officer or director, past, present or future, as
such, of the Company or of any predecessor or successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the consideration for
the issuance hereof, expressly waived and released.

     [The Securities of this series are issuable only in registered form without coupons in
denominations of $25 and any integral multiple thereof.] [This Global Security is exchangeable for
Securities in definitive form only under certain limited circumstances set forth in the Indenture.
Securities of this series so issued are issuable only in registered form without coupons in
denominations of $25 and any integral multiple thereof.] As provided in the Indenture and subject
to certain limitations [herein and] therein set forth.

     Securities of this series [so issued] are exchangeable for a like aggregate principal amount
of Securities of this series of a different authorized denomination, as requested by the Holder
surrendering the same.

     All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

Section 2.4. Form of Trustee’s Certificate of Authentication.CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series of Securities described in the within-mentioned
Indenture.

THE BANK OF NEW YORK,

      as Trustee

By:                                                             

     Authorized Officer

ARTICLE III

The Securities

Section 3.1. Amount Unlimited; Issuable in Series.

     The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

23

 

     The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution, and set forth in an Officers’ Certificate, or established in one or more
indentures supplemental hereto, prior to the issuance of Securities of any series:

     (1) the title of the Securities of the series (which shall distinguish the Securities
of the series from all Securities of any other series);

     (2) the date or dates on which the principal of the Securities of the series is
payable;

     (3) the rate or rates at which the Securities of the series shall bear interest or the
Floating or Adjustable Rate Provision pursuant to which such rates shall be determined, the
date or dates from which any such interest shall accrue, the Interest Payment Dates on
which any such interest shall be payable and the Regular Record Date for the interest
payable on any Interest Payment Date (if such Interest Payment Dates or Regular Record
Dates differ from those provided herein);

     (4) the place or places where the principal of (and any premium, if any) and interest
on Securities of the series shall be payable;

     (5) in addition to the redemption rights provided herein, the period or periods within
which (including the Redemption Option Date for the series) and the price or prices at
which any Securities of the series may be redeemed, in whole or in part, at the option of
the Company;

     (6) if other than denominations of $25 and any integral multiple thereof, the
denominations in which Securities of the series shall be issuable;

     (7) any other defaults applicable with respect to the Securities of the series in
addition to those provided in Section 5.7(a) through (f);

     (8) any other covenant or warranty included for the benefit of Securities of the
series in addition to (and not inconsistent with) those included in this Indenture for the
benefit of Securities of all series, or any other covenant or warranty included for the
benefit of Securities of the series in lieu of any covenant or warranty included in this
Indenture for the benefit of Securities of all series, or any provision that any covenant
or warranty included in this Indenture for the benefit of Securities of all series shall
not be for the benefit of Securities of the series, or any combination of such covenants,
warranties or provisions;

     (9) the subordination terms of the Securities of the series;

     (10) the provisions of this Indenture, if any, that shall not apply to the series; and

24

 

     (11)any other terms of the series (which additional terms shall not be inconsistent with the provisions of this Indenture).

     All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to such Board Resolution and set forth, or determined in the manner provided, in the Officers’ Certificate referred to above or in any such indenture supplemental hereto.

     If any of the terms of the Securities of a series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers’ Certificate setting forth the terms of the Securities of such series.

Section 3.2.Denominations.
The Securities of each series shall be issuable in registered form without
coupons and in such denominations as shall be specified as contemplated by Section 3.1.
In the absence of any such provisions with respect to the Securities of any series, the Securities
of such series shall be issuable in denominations of $25 and any integral multiple thereof.

Section 3.3. Execution, Authentication, Delivery and Dating. The Securities shall be executed
on behalf of the Company by its Chairman or a Vice Chairman of the Board, its President, a Vice
President, the Chief Financial Officer, the Chief Accounting Officer, the Treasurer, any Deputy
Treasurer or any Assistant Treasurer, under its corporate seal reproduced thereon attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these officers on the
Securities may be manual or facsimile.

     Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver
such Securities. If the form or terms of the Securities of the series have been established in or
pursuant to one or more Board Resolutions as permitted by Sections 2.1 and 3.1, in authenticating
such Securities, and accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive at the time of the initial delivery by
the Company of Securities of such series to the Trustee for authentication, and (subject to Section
6.1) shall be fully protected in relying upon, an Opinion of Counsel stating,

25

 

     (1) if the form of such Securities has been established by or pursuant to Board
Resolution as permitted by Section 2.1, that such form has been established in conformity
with the provisions of this Indenture;

     (2) if the terms of such Securities have been established by or pursuant to Board
Resolution as permitted by Section 3.1, that such terms have been established in conformity
with the provisions of this Indenture; and

     (3) that such Securities, when authenticated and delivered by or on behalf of the
Trustee and issued by the Company in the manner and subject to any conditions specified in
such Opinion of Counsel, will constitute valid and legally binding obligations of the
Company enforceable in accordance with their terms, subject to bankruptcy, insolvency,
reorganization, and other laws of general applicability relating to or affecting the
enforcement or creditors’ rights and to general equity principles.

If such form or terms have been so established, the Trustee shall not be required to authenticate
such Securities if the issue of such Securities pursuant to this Indenture will affect the
Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in
a manner which is not reasonably acceptable to the Trustee.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate
upon any Security shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture.

Section 3.4. Temporary Securities.Pending the preparation of definitive Securities of any
series, the Company may execute, and upon receipt of a Company Order the Trustee shall authenticate
and deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor of the definitive
Securities in lieu of which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the directors or officers executing such Securities may
determine, as evidenced by their execution of such Securities.

     If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Company in a Place of Payment for Securities of that series, without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities of
any series the Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like aggregate principal

26

 

amount of definitive Securities of the same series and of like
tenor of authorized denominations. Until so exchanged, the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities of such series.

Section 3.5. Registration, Registration of Transfer and Exchange.The Company shall cause to be
kept at the Corporate Trust Office of the Trustee a register (the register maintained in such
office and in any other office or agency of the Company in a Place of Payment being herein
sometimes collectively referred to as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Securities, or
of Securities of a particular series, and of transfers of Securities or of Securities of such
series. The Trustee is hereby appointed “Security Registrar” for the purpose of registering
Securities and transfers of Securities as herein provided.

     Subject to Section 3.11, upon surrender for registration of transfer of any Security of any
series at the office or agency of the Company in a Place of Payment for Securities of that series,
the Company shall execute, and the Trustee shall authenticate and deliver,
in the name of the designated transferee or transferees, one or more new Securities of like
tenor of the same series, of any authorized denominations and of a like aggregate principal amount.

     Subject to Section 3.11, at the option of the Holder, Securities of any series may be
exchanged for other Securities of like tenor of the same series, of any authorized denominations
and of a like aggregate principal amount, upon surrender of the Securities to be exchanged at such
office or agency. Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the
exchange is entitled to receive.

     All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

     Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar, duly
executed by the Holder thereof or his attorney duly authorized in writing.

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company or the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of Securities, other than exchanges pursuant to Section 3.4, 9.6 or 11.7 not involving any
transfer.

27

 

     The Company shall not be required (i) to issue, register the transfer of or exchange any
Security of any series during a period beginning at the opening of business 15 days before the day
of the mailing of a notice of redemption of Securities of such series selected for redemption under
Section 11.3 and ending at the close of business on the day of such mailing, or (ii) to register
the transfer of or exchange any Security so selected for redemption in whole or in part, except the
unredeemed portion of any Security being redeemed in part.

Section 3.6. Mutilated, Destroyed, Lost and Stolen Securities.If any mutilated Security is
surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a protected
purchaser, the Company shall execute and
upon its written request the Trustee shall authenticate and deliver, in lieu of any such
destroyed, lost or stolen Security, a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.

     Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     Every new Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that series duly issued hereunder.

     The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.

Section 3.7. Payment of Interest; Interest Rights Preserved.Interest on any Security which is
payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to
the Person in whose name that Security (or one or more Predecessor

28

 

Securities) is registered at the
close of business on the Regular Record Date for such interest.

     Interest on any Security of any series which is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith
cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as
provided in clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this Clause provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which
shall be not more than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Company of such Special Record
Date and, in the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder of Securities of such series at his address as
it appears in the Security Register, not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and the Special Record
Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons
in whose names the Securities of such series (or their respective Predecessor Securities)
are registered at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following clause (2).

     (2) The Company may make payment of any Defaulted Interest on the Securities of any
series in any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be required by
such exchange, if, after written notice given by the Company to the Trustee of the proposed
payment pursuant to this Clause, such manner of payment shall be deemed practicable by the
Trustee in its sole discretion.

     Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other

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Securities shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

     For the purposes of determining the Holders who are entitled to participate in any
distribution on the Securities in respect of which a Regular Record Date or a Special Record Date
is not otherwise provided for in this Indenture, or for the purpose of any other action (unless
provided for pursuant to Section 3.1), the Company may from time to time fix a date, not more than
90 days prior to the date of the payment of distribution or other action, as the case may be, as a
record date for the determination of the identity of the Holders of record for such purposes.

Section 3.8. Persons Deemed Owners.The Company, the Trustee and any agent of the Company or
the Trustee may treat the Person in whose name any Security is registered as the owner of such
Security for the purpose of receiving payment of principal of (and premium, if any) and (subject to
Section 3.7) interest on such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the
Trustee shall be affected by notice to the contrary.

Section 3.9. Cancellation.All Securities surrendered for payment, redemption, registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to
the Trustee and shall be promptly cancelled by it. The Company may at any time deliver to the
Trustee for cancellation any Securities previously authenticated and delivered hereunder which the
Company may have acquired in any manner whatsoever, and all Securities so delivered shall be
promptly cancelled by the Trustee. No Securities shall be authenticated in lieu of or in exchange
for any Securities cancelled as provided in this Section, except as expressly permitted by this
Indenture. Unless otherwise directed by a Company Order, delivery of which must be delivered in a
timely manner to prevent such destruction, all cancelled Securities held by the Trustee shall be
destroyed by it, and the Trustee, upon receipt of a written request of the Company, shall deliver a
certificate of such destruction to the Company.

Section 3.10. Interest. Each Security will bear interest at the rate established for the
series of Securities of which such Security is a part pursuant to Section 3.1 (the “Coupon Rate”)
from and including the original date of issuance of such Security until the principal thereof
becomes due and payable, and on any overdue principal and (to the extent that payment of such
interest is enforceable under applicable law) on any overdue installment of interest at the Coupon
Rate, compounded quarterly, payable (subject to the provisions of Article Four) quarterly in
arrears on March 31, June 30, September 30 and December 31 of each year (or in such other periodic
installments on such other dates established as payment dates for the series of Securities of which
such Security is a part pursuant to Section 3.1) (each, an “Interest Payment Date”) commencing on
the date established for the series of Securities of which such Security is a part pursuant to
Section 3.1, to the Person in whose name such Security or any Predecessor Security is registered,
at the close of business on the Regular Record Date for such interest installment, which, in
respect of any Securities of which the Institutional Trustee of any Citigroup Trust is the Holder
or a Global Security, shall be the close of business on the Business Day next

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preceding that
Interest Payment Date. Notwithstanding the foregoing sentence, if the Preferred Securities of a
Citigroup Trust are no longer in book-entry only form or, except if the Securities originally
issued to such Citigroup Trust are held by the Institutional Trustee of such Citigroup Trust, the
Securities of any series are not represented by a Global Security, the Company may select a Regular
Record Date for such interest installment on such series of Securities which shall be any date more
than 14 days but less than 60 days before an Interest Payment Date.

     (b) The amount of interest payable for any period will be computed on the basis of a 360-day
year of twelve 30-day months and will include the first day but exclude the last day of such
period. Except as provided in the following sentence, the amount of interest payable for any
period shorter than a full quarterly period for which interest is computed, will be computed on the
basis of the actual number of days elapsed in each 30-day month. In the event that any date on
which interest is payable on the
Securities of any series is not a Business Day, then payment of interest payable on such date
will be made on the next succeeding day that is a Business Day (and without any interest or other
payment in respect of any such delay), except that, if such Business Day is in the next succeeding
calendar year, such payment shall be made on the immediately preceding Business Day, in each case
with the same force and effect as if made on such date.

     (c) If, at any time while the Institutional Trustee of a Citigroup Trust is the Holder of
Securities of any series, such Citigroup Trust or such Institutional Trustee is required to pay any
taxes, duties, assessments or governmental charges of whatever nature (other than withholding
taxes) imposed by the United States, or any other taxing authority, then, in any case, the Company
will pay as additional interest (“Additional Interest”) on the Securities of such series, such
additional amounts as shall be required so that the net amounts received and retained by such
Citigroup Trust and/or such Institutional Trustee, as the case may be, after paying such taxes,
duties, assessments or other governmental charges will be equal to the amounts Citigroup Trust
and/or such Institutional Trustee, as the case may be, would have received had no such taxes,
duties, assessments or other government charges been imposed.

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Section 3.11. Form and Payment.Except as provided in Section 3.12, the Securities of each
series shall be issued in fully registered certificated form without interest coupons. Principal
and interest on the Securities issued in certificated form will be payable, the transfer of such
Securities will be registrable, and such Securities will be exchangeable, for Securities of the
same series bearing identical terms and provisions at the office or agency of the Trustee;
provided, however, that payment of interest may be made at the option of the Company by check
mailed to the Holders of such Securities at such address as shall appear in the Security Register.
Notwithstanding the foregoing, so long as the Holder of all Securities of any series is the
Institutional Trustee of any Citigroup Trust, the payment of the principal of and interest
(including Compounded Interest and Additional Interest, if any) on Securities of such series will
be made at such place and to such account as may be designated by the Institutional Trustee.

Section 3.12. Global Securities. In connection with Dissolution Event with respect to any
Citigroup Trust,

          (i) the Securities in non book-entry certificated form held by such Citigroup Trust, or its
Institutional Trustee, will be presented to the Trustee by the Institutional Trustee of such
Citigroup Trust in exchange for a Global Security in an aggregate principal amount equal to the
aggregate principal amount of all outstanding Securities of the series issued to such Citigroup
Trust, to be registered in the name of the Depositary, or its nominee, and delivered by the Trustee
to the Depositary for crediting to the accounts of its participants pursuant to the instructions of
the Regular Trustees of the relevant Citigroup Trust. The Company upon any such presentation shall
execute a
Global Security in such aggregate principal amount and deliver the same to the Trustee for
authentication and delivery in accordance with this Indenture. Payments on any Securities issued
as a Global Security will be made to the Depositary; and

          (ii) if any Preferred Securities of a Citigroup Trust are held in non book-entry certificated
form, the Securities in non book-entry certificated form held by such Citigroup Trust, or its
Institutional Trustee, may be presented to the Trustee by the Institutional Trustee of such
Citigroup Trust and any Preferred Security Certificate which represents Preferred Securities of
such Citigroup Trust other than Preferred Securities held by the Depositary or its nominee (“Non
Book-Entry Preferred Securities”) will be deemed to represent Securities presented to the Trustee
by such Institutional Trustee having an aggregate principal amount equal to the aggregate
liquidation amount of the Non Book-Entry Preferred Securities until such Preferred Security
Certificates are presented to the Security Registrar for transfer or reissuance at which time such
Preferred Security Certificates will be cancelled and a Security, registered in the name of the
holder of the Preferred Security Certificate or the transferee of the holder of such Preferred
Security Certificate, as the case may be, with an aggregate principal amount equal to the aggregate
liquidation amount of the Preferred Security Certificate cancelled, will be executed by the Company
and delivered to the Trustee for authentication and delivery in accordance with this Indenture. On
issue of such Securities, Securities with an equivalent aggregate principal amount that were
presented by the Institutional Trustee to the Trustee will be deemed to have been cancelled.

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     (b) A Global Security may be transferred, in whole but not in part, only to another nominee of
the Depositary, or to a successor Depositary selected or approved by the Company or to a nominee of
such successor Depositary.

     (c) If at any time the Depositary notifies the Company that it is unwilling or unable to
continue as Depositary for any series of Securities or if at any time the Depositary for such
series shall no longer be registered or in good standing under the Exchange Act, or other
applicable statute or regulation, and a successor Depositary for such series is not appointed by
the Company within 90 days after the Company receives such notice or becomes aware of such
condition, as the case may be, the Company will execute, and, subject to this Article III, the
Trustee, upon written notice from the Company, will authenticate and deliver the Securities of such
series in definitive registered form without coupons, in authorized denominations, and in an
aggregate principal amount equal to the principal amount of the Global Security in exchange for
such Global Security. In addition, the Company may at any time determine that the Securities of
any series shall no longer be represented by a Global Security. In such event the Company will
execute, and subject to Section 3.5, the Trustee, upon receipt of an Officers Certificate
evidencing such determination by the Company, will authenticate and deliver the Securities of such
series in definitive registered form without coupons, in authorized denominations, and in an
aggregate principal amount equal to the principal amount of the Global Security for such series in
exchange for such Global Security. Upon the exchange of the Global Security for such Securities in
definitive registered form without coupons, in authorized denominations, the Global Security shall
be
cancelled by the Trustee. Such Securities in definitive registered form issued in exchange
for the Global Security shall be registered in such names and in such authorized denominations as
the Depositary, pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee shall deliver such Securities to the Depositary, for
delivery to the Persons in whose names such Securities are so registered.

ARTICLE IV

Satisfaction And Discharge; Defeasance

Section 4.1. Satisfaction and Discharge of Indenture.This Indenture shall upon Company Request
cease to be of further effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for), and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when

     (1) either

     (A) all Securities theretofore authenticated and delivered (other than (i)
Securities which have been destroyed, lost or stolen and which have been replaced
or paid as provided in Section 3.6 and (ii) Securities for whose payment money has
theretofore been deposited in trust or

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segregated and held in trust by the Company
and thereafter repaid to the Company or discharged from such trust, as provided in
Section 10.3) have been delivered to the Trustee for cancellation; or

     (B) all such Securities not theretofore delivered to the Trustee for
cancellation

(i) have become due and payable, or

(ii) will become due and payable at their Stated Maturity within one year,
or

(iii) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company,

and the Company, in the case of (i), (ii) or (iii) above, has deposited or
caused to be deposited with the Trustee as trust funds in trust for the
purpose an amount sufficient to pay and discharge the entire indebtedness
on such Securities not theretofore delivered to the Trustee for
cancellation, for principal (and premium, if any)
and interest to the date of such deposit (in the case of Securities which
have become due and payable) or to the Stated Maturity or Redemption Date,
as the case may be;

     (2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 6.7, the Company’s obligation to pay the expenses of any
Citigroup Trust under Section 10.6 (except upon the application of subclauses 1(A) or 1(B)(i)
above), the obligations of the Trustee to any Authenticating Agent under Section 6.14, and, if
money shall have been deposited with the Trustee pursuant to subclause (B) of clause (1) of this
Section, the obligations of the Trustee under Section 4.2 and the last paragraph of Section 10.3
shall survive.

Section 4.2. Defeasance and Discharge.The following provisions shall apply to the Securities
of each series unless specifically otherwise provided in a Board Resolution, Officers’ Certificate
or indenture supplemental hereto provided pursuant to Section 3.1. In addition to discharge of
this Indenture pursuant to Sections 4.1 and 4.3, in the case of any series of Securities with
respect to which an amount sufficient to pay and discharge the entire indebtedness on such
Securities not theretofore delivered to the Trustee for

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cancellation, for principal (and premium,
if any) and interest, as certified pursuant to subparagraph (a) of Section 4.4 can be determined at
the time of making the deposit referred to in such subparagraph (a), the Company shall be deemed to
have paid and discharged the entire indebtedness on all the Securities of such a series as provided
in this Section on and after the date the conditions set forth in Section 4.4 are satisfied, and
the provisions of this Indenture with respect to the Securities of such series shall no longer be
in effect (except as to (i) rights of registration of transfer and exchange of Securities of such
series, (ii) substitution of mutilated, defaced, destroyed, lost or stolen Securities of such
series, (iii) rights of Holders of Securities of such series to receive, solely from the trust fund
described in subparagraph (a) of Section 4.4, payments of principal thereof and interest, if any,
thereon upon the original stated due dates therefor (but not upon acceleration), (iv) the rights,
obligations, duties and immunities of the Trustee hereunder, (v) this Section 4.2, (vi) the rights
of the Holders of Securities of such series as beneficiaries hereof with respect to the property so
deposited with the Trustee payable to all or any of them and (vii) the Company’s obligation to pay
the expenses of any Citigroup Trust under Section 10.6) (hereinafter called “Defeasance”), and the
Trustee at the cost and expense of the Company, shall execute proper instruments acknowledging the
same.

Section 4.3. Covenant Defeasance.In the case of any series of Securities with respect to which
an amount sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal (and premium, if any) and
interest, as certified pursuant to subparagraph (a) of Section 4.4 can be determined at the time of
making the deposit referred to in such subparagraph (a), (i) the Company shall be released from its
obligations under any covenants specified in or pursuant to this Indenture (except as to (A) rights
of registration of transfer and exchange of Securities of such series, (B) substitution of
mutilated, defaced, destroyed, lost or stolen Securities of such series, (C) rights of Holders of
Securities of such series to receive, from the Company pursuant to Section 10.1, payments of
principal thereof and interest, if any, thereon upon the original stated due dates therefor (but
not upon acceleration), (D) the rights, obligations, duties and immunities of the Trustee
hereunder, (E) the rights of the Holders of Securities of such series as beneficiaries hereof with
respect to the property so deposited with the Trustee payable to all or any of them and (F) the
Company’s obligation to pay the expenses of any Citigroup Trust under Section 10.6), and (ii) the
occurrence of any event specified in Sections 5.7(d) (with respect to any of the covenants
specified in or pursuant to this Indenture) and 5.7(e) shall be deemed not to be or result in a
Default, in each case with respect to the Outstanding Securities of such series as provided in this
Section on and after the date the conditions set forth in Section 4.4 are satisfied (hereinafter
called “Covenant Defeasance”), and the Trustee, at the cost and expense of the Company, shall
execute proper instruments acknowledging the same. For this purpose, such Covenant Defeasance
means that the Company may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant (to the extent so specified in the case of
Section 5.7(d)), whether directly or indirectly by reason of any reference elsewhere herein to any
such covenant or by reason of any reference in any such covenant to any other provision herein or
in any other document, but the remainder of this Indenture and the Securities of such series shall
be unaffected thereby.

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Section 4.4. Conditions to Defeasance or Covenant Defeasance.The following shall be the
conditions to application of either Section 4.2 or 4.3 to the Outstanding Securities:

     (a) with reference to Section 4.2 or 4.3, the Company has irrevocably deposited or caused to
be irrevocably deposited with the Trustee as funds in trust, specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of Securities of such series (i) cash in an
amount, or (ii) direct obligations of the United States of America, backed by its full faith and
credit (“U.S. Government Obligations”), maturing as to principal and interest, if any, at such
times and in such amounts as will insure the availability of cash, or (iii) a combination thereof,
in each case sufficient, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, to pay and
discharge, the principal of and interest, if any, on all Securities of such series on each date
that such principal or interest, if any, is due and payable;

     (b) in the case of Defeasance under Section 4.2, the Company has delivered to the Trustee an
Opinion of Counsel based on the fact that (x) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling or (y), since the date hereof, there has been a
change in the applicable United States federal income tax law, in either case to the effect that,
and such opinion shall confirm that, the Holders of the Securities of such series will not
recognize income, gain or loss for United States federal income tax purposes as a result of such
deposit, Defeasance and discharge and will be subject to United States federal income tax on the
same amount and in the same manner and at the same times, as would have been the case if such
deposit, Defeasance and discharge had not occurred;

     (c) in the case of Covenant Defeasance under Section 4.3, the Company has delivered to the
Trustee an Opinion of Counsel to the effect that, and such opinion shall confirm that, the Holders
of the Securities of such series will not recognize income, gain or loss for United States federal
income tax purposes as a result of such deposit and Covenant Defeasance and will be subject to
United States federal income tax on the same amount and in the same manner and at the same times,
as would have been the case if such deposit and Covenant Defeasance had not occurred;

     (d) such Defeasance or Covenant Defeasance will not result in a breach or violation of, or
constitute a default under, any agreement or instrument to which the Company is a party or by which
it is bound; and

     (e) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent contemplated by this provision have been
complied with.

Section 4.5. Application of Trust Money.Subject to the provisions of the last paragraph of
Section 10.3, all money and U.S. Government Obligations deposited with the Trustee pursuant to
Section 4.4 shall be held in trust, and such money and all money from such U.S. Government
Obligations shall be applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying

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Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of
the principal (and premium, if any) and interest for whose payment such money and U.S. Government
Obligations has been deposited with the Trustee.

Section 4.6. Indemnity for U.S. Government Obligations.The Company shall pay and indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 4.4 or the principal or interest received in respect of
such obligations other than any such tax, fee or other charge that by law is for the account of the
Holders of Outstanding Securities.

Section 4.7. Reinstatement.If the Trustee is unable to apply any money or Government
Obligations in accordance with Section 4.4 by reason of any legal preceding or by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s obligations under this Indenture and the Securities
shall be revived and reinstated as though no deposit had occurred pursuant to Section 4.4, until
such time as the Trustee or Paying Agent is permitted to apply all such money or Government
Obligations in accordance with Section 4.4; provided that, if the Company has made any payment of
principal or interest on the Securities of any series because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of such Securities to
receive such payment from the money or Government Obligations held by the Trustee or Paying Agent.

ARTICLE V

Remedies

Section 5.1. Events of Default and Acceleration.The term “Event of Default and Acceleration”
as used in this Indenture with respect to Securities of any series shall mean one of the following
described events (whatever the reason for such Event of Default and Acceleration and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any administrative or governmental
body):

     (a) failure to pay in full interest accrued upon any Security of that series upon the
conclusion of a period consisting of 40 consecutive quarters, commencing with the earliest quarter
for which interest (including Deferred Interest) has not been paid in full, and continuance of such
failure to pay for a period of 30 days;

     (b) the entry by a court having jurisdiction in the premises of a decree or order for relief
in respect of the Company in an involuntary case under the Federal bankruptcy code, as now or
hereafter constituted, or any other applicable Federal or State bankruptcy, insolvency or other
similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
trustee or sequestrator (or similar official) of the Company or for substantially all of its
property, or ordering the winding-up or liquidation

37

 

of its affairs and such decree or order shall
remain unstayed and in effect for a period of 90 consecutive days; or

     (c) the commencement by the Company of a voluntary case under the Federal bankruptcy code, as
now or hereafter constituted, or any other applicable Federal or State bankruptcy, insolvency or
other similar law now or hereafter in effect, or the consent by the Company to the entry of an
order for relief in an involuntary case under any such law, or the consent by the Company to the
appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian or sequestrator (or similar official) of the Company
or for substantially all of its property, or the making by it of an assignment for the benefit of
creditors.

Section 5.2. Acceleration of Maturity.If any one or more Event of Default and Acceleration
shall occur with respect to Securities of any series at the time Outstanding, then, and in each and
every such case, during the continuance of any such Event of Default and Acceleration, the Trustee
or the Holders of 25% or more in principal amount of the Securities of such series then Outstanding
may declare the principal amount of all the Securities of such series then Outstanding, if not then
due and payable, to be due and payable immediately, by a notice in writing to the Company (and to
the Trustee if given by such Holders), and upon any such declaration the same shall become and be
immediately due and payable, anything in this Indenture or in the Securities of such series
contained to the contrary notwithstanding. This provision, however, is subject to the condition
that, if at any time after the principal of all the Securities of such series shall have been so
declared to be due and payable, all arrears of interest, if any, upon all the Securities of such
series (with interest, to the extent that interest thereon shall be legally enforceable, on any
overdue installment of interest at the rate borne by the Securities of such series) and all amounts
owing the Trustee and any predecessor trustee hereunder under Section 6.7 and all other sums
payable under this Indenture (except the principal of the Securities of such series which would not
be due and payable were it not for such declaration) shall be paid by the Company, and every other
Default under this Indenture, other than the non-payment of the principal of Securities of that
series which have become due solely by such declaration of acceleration, shall have been made good
to the reasonable satisfaction of the Trustee or of the Holders of a majority in principal amount
of the Securities of such series then Outstanding, or provision deemed by the Trustee or by such
Holders to be adequate therefor shall have been made, then and in every such case the Holders of a
majority in principal amount of the Securities of such series then Outstanding may, on behalf of
the Holders of all the Securities of such series, waive the Event of Default and Acceleration by
reason of which the principal of the Securities of such series shall have been so declared to be
due and payable and may rescind and annul such declaration and its consequences; but no such
waiver, rescission or annulment shall extend to or affect any subsequent Default or impair any
right consequent thereon. Any declaration by the Trustee pursuant to this Section 5.2 shall be by
written notice to the Company, and any declaration or waiver by the Holders of Securities of any
series pursuant to this Section 5.2 shall be by written notice to the Company and the Trustee.

Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee.If the Company
shall fail for a period of 30 days to pay any installment of interest on the

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Securities of any
series or shall fail to pay the principal of and premium, if any, on any of the Securities of such
series when and as the same shall become due and payable, whether at maturity, or by call for
redemption by declaration as authorized by this Indenture or otherwise, then, upon demand of the
Trustee, the Company will pay to the Trustee for the benefit of the Holders of Securities of such
series then Outstanding the
whole amount which then shall have become due and payable on any such Security, with interest
on the overdue principal and premium, if any, and (so far as the same may be legally enforceable)
on the overdue installments of interest at the rate borne by the Securities of such series, and all
amounts owing the Trustee and any predecessor trustee hereunder under Section 6.7.

     In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in
its own name and as trustee of an express trust, shall be entitled and empowered to institute any
action or proceeding at law or in equity for the collection of the sums so due and unpaid, and may
prosecute any such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor upon the Securities of such
series, and collect the moneys adjudged or decreed to be payable out of the property of the Company
or any other obligor upon the Securities of such series, wherever situated, in the manner provided
by law. Every recovery of judgment in any such action or other proceeding, subject to the payment
to the Trustee of all amounts owing the Trustee and any predecessor trustee hereunder under Section
6.7, shall be for the ratable benefit of the Holders of such series of Securities which shall be
the subject of such action or proceeding. All rights of action upon or under any of the Securities
or this Indenture may be enforced by the Trustee without the possession of any of the Securities
and without the production of any thereof at any trial or any proceeding relative thereto.

     If a Default, of which a Responsible Officer of the Trustee has actual knowledge, with respect
to any series of Securities occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders of Securities of such series by such
appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce
any such rights, whether for the specific enforcement of any covenant or agreement in this
Indenture, or in aid of the exercise of any power granted herein, or to enforce any other proper
remedy.

Section 5.4. Trustee to File Claims As Attorney-In-Fact.The Trustee is hereby appointed, and
each and every Holder of the Securities, by receiving and holding the same, shall be conclusively
deemed to have appointed the Trustee, the true and lawful attorney-in-fact of such Holder, with
authority to make or file (whether or not the Company shall be in default in respect of the payment
of the principal of, or interest on, any of the Securities), in its own name and as trustee of an
express trust or otherwise as it shall deem advisable, in any receivership, insolvency,
liquidation, bankruptcy, reorganization or other judicial proceeding relative to the Company or any
other obligor upon the Securities or to their respective creditors or property, any and all claims,
proofs of claim, proofs of debt, petitions, consents, other papers and documents and amendments

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of
any thereof, as may be necessary or advisable in order to have the claims of the Trustee and any
predecessor trustee hereunder and of the Holders of the Securities allowed in any such proceeding
and to collect and receive any moneys or other property payable or deliverable on any such claim,
and to execute and deliver any and all
other papers and documents and to do and perform any and all other acts and things, as it may
deem necessary or advisable in order to enforce in any such proceeding any of the claims of the
Trustee and any predecessor trustee hereunder and of any of such Holders in respect of any of the
Securities; and any receiver, assignee, trustee, custodian or debtor in any such proceeding is
hereby authorized, and each and every taker or Holder of the Securities, by receiving and holding
the same, shall be conclusively deemed to have authorized any such receiver, assignee, trustee,
custodian or debtor, to make any such payment or delivery only to or on the order of the Trustee,
and to pay to the Trustee any amount due it and any predecessor trustee hereunder under Section
6.7; provided, however, that nothing herein contained shall be deemed to authorize or empower the
Trustee to consent to or accept or adopt, on behalf of any Holder of Securities, any plan of
reorganization or readjustment of the Company affecting the Securities or the rights of any Holder
thereof, or to authorize or empower the Trustee to vote in respect of the claim of any Holder of
any Securities in any such proceeding.

Section 5.5. Application of Money Collected.Any moneys collected by the Trustee with respect
to a series of Securities under this Article Five shall be applied in the order following, at the
date or dates fixed by the Trustee for the distribution of such moneys, upon presentation of the
several Securities, and stamping thereon the payment, if only partially paid, and upon surrender
thereof, if fully paid:

     First: To the payment of all amounts due to the Trustee and any predecessor trustee
hereunder under Section 6.7.

     Second: Subject to Article Fourteen, in case the principal of the Outstanding
Securities of such series shall not have become due and be unpaid, to the payment of
interest on the Securities of such series, in the order of the maturity of the
installments of such interest, with interest (to the extent that such interest has been
collected by the Trustee) upon the overdue installments of interest at the rate borne by
such Securities, such payments to be made ratably to the Persons entitled thereto.

     Third: Subject to Article Fourteen, in case the principal of the Outstanding
Securities of such series shall have become due, by declaration or otherwise, to the
payment of the whole amount then owing and unpaid upon the Securities of such series for
principal and premium, if any, and interest, with interest on the overdue principal and
premium, if any, and (to the extent that such interest has been collected by the Trustee)
upon overdue installments of interest at the rate borne by the Securities of such series,
and in case such moneys shall be insufficient to pay in full the whole amounts so due and
unpaid upon the Securities of such series, then to the payment of such principal and
premium, if any, and interest without preference or priority of principal and premium, if
any, over interest, or of interest over principal and premium, if any, or of any

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installment of interest over any other installment of interest, or of any Security of
such series over any other Security of such series, ratably to the aggregate of such
principal and premium, if any, and accrued and unpaid interest.

Section 5.6. Control by Holders; Waiver of Past Default. The Holders of a majority in principal
amount of the Outstanding Securities of any series may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee hereunder, or of exercising any
trust or power hereby conferred upon the Trustee with respect to the Securities of such series;
provided, however, that the Trustee shall have the right to decline to follow any such direction if
the Trustee being advised by counsel determines that the action so directed may not lawfully be
taken or would be unduly prejudicial to Holders not joining in such direction or would involve the
Trustee in personal liability. Prior to any declaration accelerating the maturity of the Securities
of any series, the Holders of a majority in aggregate principal amount of such series of
Outstanding Securities may on behalf of the Holders of all of the Securities of such series waive
any past default hereunder and its consequences except a default not theretofore cured in the
payment of interest or any premium on or the principal of the Securities of such series or in
respect of any covenant or provision hereof which under Article Nine cannot be modified or waived
without the consent of the Holder of each Outstanding Security of each series affected thereby;
provided, however, that if the Securities of such series are held by a Citigroup Trust or a trustee
of such trust, such waiver or modification to such waiver shall not be effective until the holders
of Trust Securities representing a majority in liquidation preference of Trust Securities of the
applicable Citigroup Trust shall have consented to such waiver or modification to such waiver;
provided further, that if the consent of the Holder of each Outstanding Security is required, such
waiver shall not be effective until each holder of the Trust Securities of the applicable Citigroup
Trust shall have consented to such waiver. Upon any such waiver the Company, the Trustee and the
Holders of the Securities of such series shall be restored to their former positions and rights
hereunder, respectively, but no such waiver shall extend to any subsequent or other default or
impair any right consequent thereon. Whenever any default hereunder shall have been waived as
permitted by this Section 5.6, said default shall for all purposes of the Securities of such series
and this Indenture cease to exist, and any Default or Event of Default and Acceleration arising
therefrom shall be deemed to have been cured and to be not continuing.

Section 5.7. Limitation on Suits; Default.No Holder of any Security of any series shall have
any right to institute any action, suit or proceeding at law or in equity for the execution of any
trust hereunder or for the appointment of a receiver or for any other remedy hereunder, in each
case with respect to a Default with respect to such series of Securities, unless such Holder
previously shall have given to the Trustee written notice of the happening of one or more of the
Defaults herein specified with respect to such series of Securities, and unless also the Holders of
25% or more in principal amount of the Securities of such series then Outstanding shall have
requested the Trustee in writing to take action in respect of the matter complained of, and unless
also there shall have been offered to the Trustee
security and indemnity satisfactory to it against the costs, expenses and liabilities to be
incurred therein or thereby, and the Trustee, for 60 days after receipt of such notification,
request and offer of indemnity, shall have neglected or refused to

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institute any such action, suit
or proceeding; and such notification, request and offer of indemnity are hereby declared in every
such case to be conditions precedent to any such action, suit or proceeding by any Holder of any
Security of such series; it being understood and intended that no one or more of the Holders of
Securities of such series shall have any right in any manner whatsoever by his or their action to
enforce any right hereunder, except in the manner herein provided, and that every action, suit or
proceeding at law or in equity shall be instituted, had and maintained in the manner herein
provided and for the equal and ratable benefit of all Holders of the Outstanding Securities of such
series; provided, however, that nothing contained in this Indenture or in the Securities of such
series shall affect or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of, and premium, if any, and interest on the Securities of such series to the
respective Holders of such Securities at the respective due dates in such Securities stated, or
affect or impair the right, which is also absolute and unconditional, of such Holders to institute
suit to enforce the payment thereof.

     The following events shall be “Defaults” with respect to any series of Securities under this
Indenture:

	 	(a)	 	an Event of Default and Acceleration with respect to such series specified
in Section 5.1; or
	 
	 	(b)	 	the failure of the Company to pay any installment of interest on any Security
of such series, when and as the same shall become payable, which failure shall have
continued unremedied for a period of 30 days, it being understood that the occurrence
of an Extended Interest Payment Period in accordance with the terms of such Security
will not constitute such a default; or
	 
	 	(c)	 	the failure of the Company to pay the principal of (and premium, if any, on)
any Security of such series, when and as the same shall become payable, whether at
maturity as therein expressed, by call for redemption, by declaration as authorized by
this Indenture or otherwise, whether or not permitted by Article Fourteen; or
	 
	 	(d)	 	the failure of the Company, subject to the provisions of Section 8.1, to
observe and perform any other of the covenants or agreements on the part of the
Company contained in this Indenture (including any indenture supplemental hereto)
(other than a covenant or agreement which has been expressly included in this
Indenture solely for the benefit of a series of Securities other than that series),
which failure shall not have been remedied for a period of 90 days after written
notice shall have been given to the Company by the Trustee or shall have been given to
the Company
and the Trustee by Holders of 25% or more in aggregate principal amount of the
Securities of such series then Outstanding, specifying such failure and requiring
the Company to remedy the same; or

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	 	(e)	 	in the event Securities of a series are issued and sold to a Citigroup Trust
or a trustee of such trust in connection with the issuance of Trust Securities by such
Citigroup Trust, such Citigroup Trust shall have voluntarily or involuntarily
dissolved, wound-up its business or otherwise terminated its existence except in
connection with (i) the distribution of Securities to holders of Trust Securities in
liquidation or redemption of their interests in such Citigroup Trust upon a Special
Event with respect to such Citigroup Trust, (ii) the redemption of all of the
outstanding Trust Securities of such Citigroup Trust or (iii) certain mergers,
consolidations or amalgamations, each as permitted by the Declaration of such
Citigroup Trust; or
	 
	 	(f)	 	any other Default provided with respect to Securities of that series.

Section 5.8. Costs and Attorneys’ Fees in Legal Proceedings.All parties to this Indenture and
the Holders of the Securities agree that the court may in its discretion require, in any action,
suit or proceeding for the enforcement of any right or remedy under this Indenture, or in any
action, suit or proceeding against the Trustee for any action taken or omitted by it as Trustee,
the filing by any party litigant in such action, suit or proceeding of an undertaking to pay the
costs of such action, suit or proceeding, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in such action,
suit or proceeding, having due regard to the merits and good faith of the claims or defenses made
by such party litigant; provided, however, that the provisions of this Section 5.8 shall not apply
to any action, suit or proceeding instituted by the Trustee, to any action, suit or proceeding
instituted by any one or more Holders of Securities holding in the aggregate more than 10% in
principal amount of the Outstanding Securities, or to any action, suit or proceeding instituted by
any Holder of Securities for the enforcement of the payment of the principal of or premium, if any,
or the interest on, any of the Securities, on or after the respective due dates expressed in such
Securities.

Section 5.9. Remedies Cumulative.Except as provided in the last sentence of Section 3.6, no
remedy herein conferred upon or reserved to the Trustee or to the Holders of Securities of any
series is intended to be exclusive of any other remedy or remedies, and each and every remedy shall
be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter
existing at law or in equity or by statute. No delay or omission of the Trustee or of any Holder of
the Securities of any series to exercise any right or power accruing upon any Default shall impair
any such right or power or shall be construed to be a waiver of any such Default or an acquiescence
therein; and every power and remedy given by this Article Five to the Trustee and to the Holders,
respectively, may be exercised from time
to time and as often as may be deemed expedient by the Trustee or by the Holders, as the case
may be. In case the Trustee or any Holder of Securities shall have proceeded to enforce any right
under this Indenture and the proceedings for the enforcement thereof shall have been discontinued
or abandoned because of waiver or for any other reason or shall have been adjudicated adversely to
the Trustee or to such Holder, then and in every such case the Company, the Trustee and the Holders
shall severally and respectively be restored to their former positions and rights

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hereunder and
thereafter all rights, remedies and powers of the Trustee and the Holders shall continue as though
no such proceedings had been instituted, except as to any matters so waived or adjudicated.

Section 5.10. Waiver of Stay or Extension Laws.The Company covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, which may affect the covenants or the performance of this Indenture;
and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law and covenants that it will not hinder, delay or impede the execution of
any power herein granted to the Trustee, but will suffer and permit the execution of every such
power as though no law had been enacted.

Section 5.11. Limitation on Claim for Certain Deferred Interest in Bankruptcy.

     Notwithstanding anything to the contrary in this Indenture, each Holder of a Security, by such
holder’s acceptance thereof, agrees that upon any payment or distribution of assets to creditors of
the Company upon any liquidation, dissolution, winding up, reorganization, or in connection with
any insolvency, receivership or proceeding under any bankruptcy law with respect to the Company,
such Holder shall not have a claim for Deferred Interest, to the extent that the aggregate amount
thereof (including Compounded Interest and Additional Interest thereon) exceeds 25% of the original
principal amount of such Security.

ARTICLE VI

The Trustee

Section 6.1. Certain Duties and Responsibilities. Except during the continuance of a
Default;

     (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but in the case of any such certificates
or opinions which by any provision hereof are specifically required to be furnished to the
Trustee, the Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture.

     (b) In case a Default with respect to any series of Securities, of which a Responsible Officer
of the Trustee has actual knowledge, has occurred and is continuing,

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the Trustee shall exercise
such of the rights and powers vested in it by this Indenture, and use the same degree of care and
skill in their exercise, as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs.

     (c) No provision of this Indenture shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act, or its own willful misconduct,
except that

     (1) this subsection shall not be construed to limit the effect of subsection (a) of
this Section;

     (2) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

     (3) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a majority in
principal amount of the Outstanding Securities of any series determined as provided in
Section 5.6, relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Indenture with respect to the Securities of such series; and

     (4) no provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or indemnity, reasonably satisfactory to
it, against such risk or liability is not reasonably assured to it.

     (d) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conductor affecting the liability of or affording protection to the Trustee shall be subject
to the provisions of this Section.

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Section 6.2. Notice of Defaults.Within 90 days after the occurrence of any Default hereunder
with respect to Securities of any series, the Trustee shall transmit by mail to all Holders of
Securities of such series, as their names and addresses appear in the Security Register, notice of
such Default hereunder actually known to a Responsible Officer of the Trustee, unless such
Default shall have been cured or waived; provided that, except in the case of a Default in the
payment of the principal of (or premium, if any) or interest on any Security of such series, the
Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of
the Trustee in good faith determines that the withholding of such notice is in the interest of the
Holders of Securities of such series; and provided, further, that in the case of any Default of the
character specified in Section 5.7(e) with respect to Securities of such series, no such notice to
Holders shall be given until at least 30 days after the occurrence thereof.

Section 6.3. Certain Rights of Trustee.Subject to the provisions of Section 6.1

     (a) the Trustee may conclusively rely and shall be fully protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document believed by it to be genuine and to have been signed or presented by the proper
party or parties;

     (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order, and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution;

     (c) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, conclusively rely upon an Officers’ Certificate;

     (d) the Trustee may consult with counsel and the written advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

     (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee security or indemnity, reasonably
satisfactory to it, against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;

     (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee

46

 

shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; and

     (g) the Trustee may execute any of the trust or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder.

     (h) the Trustee shall not be charged with knowledge of any Default or Event of Default and
Acceleration with respect to the Securities, unless either (1) a Responsible Officer shall have
actual knowledge of such Default or Event of Default and Acceleration or (2) written notice of such
Default or Event of Default and Acceleration shall have been given to the Trustee by the Company or
by any Holder of the Securities; and

     (i) the permissive rights of the Trustee enumerated herein shall not be construed as duties.

Section 6.4. Not Responsible for Recitals or Issuance of Securities.The recitals contained
herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken
as the statements of the Company, and the Trustee or any Authenticating Agent assumes no
responsibility for their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities. The Trustee or any Authenticating Agent shall
not be accountable for the use or application by the Company of Securities or the proceeds thereof.

Section 6.5. May Hold Securities.The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to Sections 6.8 and 6.13, may otherwise deal
with the Company with the same rights it would have if it were not Trustee, Authenticating Agent,
Paying Agent, Security Registrar or such other agent.

Section 6.6. Money Held in Trust.Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise agreed with the
Company.

Section 6.7. Compensation and Reimbursement.The Company agrees

     (1) to pay to the Trustee from time to time such reasonable compensation for all
services rendered by it hereunder (which compensation shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust);

     (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this

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Indenture (including the reasonable
compensation and the expenses and disbursements of its agents, nominees, custodians and
counsel), except any such expense, disbursement or advance as may be attributable to its
negligence or bad faith; and

     (3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability
or expense incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trust hereunder, including
the costs and expenses of defending itself against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder.

     As security for the performance of the obligations of the Company under this Section, the
Trustee shall have a lien prior to the Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the benefit of Holders of particular
Securities. The obligations of the Company under this Section shall survive the removal or
resignation of the Trustee and the satisfaction and discharge of this Indenture.

     When the Trustee incurs any expenses or renders any services after the occurrence of an Event
of Default and Acceleration specified in Section 5.1(b) or Section 5.1(c), such expenses and the
compensation for such services are intended to constitute expenses of administration under the
United States Bankruptcy Code (Title 11 of the United States Code) or any similar federal or state
law for the relief of debtors.

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Section 6.8. Disqualification; Conflicting Interests.The Trustee shall be subject to the
provisions of Section 310(b) of the Trust Indenture Act of 1939 during the period of time provided
for therein. In determining whether the Trustee has a conflicting interest as defined in Section
310(b) of the Trust Indenture Act of 1939 with respect to the Securities of any series, there shall
be excluded for purposes of the conflicting interest provisions of such Section 310(b) the
Securities of every other series issued under this Indenture. Nothing herein shall prevent the
Trustee from filing with the Commission the application referred to in the second to last paragraph
of Section 310(b) of the Trust Indenture Act of 1939.

Section 6.9. Corporate Trustee Required; Eligibility.There shall at all times be a Trustee
hereunder which shall be a corporation organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by Federal or State authority. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements of said
supervision or examining authority, then for the purposes of this Section, the combined
capital and surplus of such corporation shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect hereinafter specified in this Article.

Section 6.10. Resignation and Removal; Appointment of Successor. No resignation or removal
of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 6.11.

     (b) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 6.11 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

     (c) The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company.

     (d) If at any time:

     (1) the Trustee shall fail to comply with Section 6.8(a) after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a Security for
at least six months, or

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     (2) the Trustee shall cease to be eligible under Section 6.9 and shall fail to resign
after written request therefor by the Company or by any such Holder, or

     (3) the Trustee shall become incapable of acting or shall be adjudged bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, then, in any such case, (i) the
Company, by a Board Resolution, may remove the Trustee with respect to all Securities, or
(ii) subject to Section 5.8, any Holder who has been a bona fide Holder of a Security for
at least six months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, with respect to the Securities of one or more
series, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee or Trustees with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the Securities of one
or more or all of such series and that at any time there shall be only one Trustee with respect to
the Securities of any particular series) and shall comply with the applicable requirements of
Section 6.11. If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Securities of any series shall
be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities
of such series delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 6.11, become the successor Trustee with respect to the
Securities of such series and to that extent supersede the successor Trustee appointed by the
Company. If no successor Trustee with respect to the Securities of any series shall have been so
appointed by the Company or the Holders and accepted appointment in the manner required by Section
6.11, any Holder who has been a bona fide Holder of a Security of such series for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

     (f) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series by mailing written notice of such event by first-class mail, postage
prepaid, to all Holders of Securities of such series as their names and addresses appear in the
Security Register. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

     Section 6.11. Acceptance of Appointment by Successor. In case of the appointment hereunder
of a successor Trustee with respect to all Securities, every such successor

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Trustee so appointed
shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall
become effective and such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the
request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its
charges, execute and deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee hereunder.

     (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee
with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or
those series to which the appointment of such successor Trustee relates, (2) if the retiring
Trustee is not retiring with respect to the Securities of all series for which it is the Trustee
hereunder, shall contain such provisions as shall be deemed necessary or desirable to confirm that
all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of
that or those series as to which the retiring Trustee is not retiring shall continue to be vested
in the retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as
shall be necessary to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee
of a trust or trusts hereunder separate and apart from any mist or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental indenture the
resignation or removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor Trustee relates; but,
on request of the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the appointment of such
successor Trustee relates.

     (c) Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may
be.

     (d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.

     (e) The Trustee shall not be liable for the acts or omissions to act of any successor Trustee.

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Section 6.12. Merger, Conversion, Consolidation or Succession to Business.Any corporation or
association into which the Trustee may be merged or converted or with which it may be consolidated,
or any corporation or association resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation or association to which all or substantially all
of the corporate trust business of the Trustee may be sold or otherwise transferred, shall be the
successor trustee hereunder without any further act. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such successor Trustee had
itself authenticated such Securities.

Section 6.13. Preferential Collection of Claims Against Company.The Trustee shall comply with
the Trust Indenture Act Section 311(a), excluding any creditor relationship listed in the Trust
Indenture Act Section 311(b). A Trustee who has resigned or been removed shall be subject to the
Trust Indenture Act Section 311(a) to the extent indicated therein.

Section 6.14. Appointment of Authenticating Agent.At any time when any of the Securities
remain Outstanding the Trustee may appoint an Authenticating Agent or Agents with respect to one or
more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon exchange, registration of transfer or partial redemption
thereof or pursuant to Section 3.6, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated
by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such
reference shall be deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at
all times be a corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or State authority. If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the combined capital and
surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section, such Authenticating
Agent shall resign immediately in the manner and with the effect specified in this Section.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency or corporate trust business of an

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Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section,
without the execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give notice of such
appointment by first-class mail, postage prepaid, to all Holders of Securities of the series with
respect to which such Authenticating Agent will serve, as their names and addresses appear in the
Security Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor hereunder, with like
effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall
be appointed unless eligible under the provisions of this Section.

     The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon an alternative certificate of authentication in
the following form:

     “This is one of the Securities of the series designated herein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,
	 
	 	 	 	 
	 

	 	 	 	As Trustee
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	As Authenticating Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Officer

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ARTICLE VII

Holders Lists and Reports by Trustee and Company

Section 7.1. Company to Furnish Trustee Names and Addresses of Holders.The Company will
furnish or cause to be furnished to the Trustee

     (a) semi-annually not more than 15 days after each Regular Record Date a list, in such form as
the Trustee may reasonably require, of the names and addresses of the Holders of Securities of such
series as of the preceding March 1 or September 1, or as of such Regular Record Date, as the case
may be, and

     (b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished;

provided that if and so long as the Trustee shall be the Security Registrar for such series, such
list shall not be required to be furnished.

Section 7.2. Preservation of Information; Communications to Holders. Holders may communicate
pursuant to the Trust Indenture Act Section 312(b) with other Holders with respect to their rights
under this Indenture and the Securities. The Company, the Trustee, the Registrar and any other
person shall have the protection of the Trust Indenture Act Section 312(c).

Section 7.3. Reports by Trustee.(a) Within 60 days after May 15 of each year commencing with
the year 2007, the Trustee shall transmit by mail to all Holders of Securities for which it is
Trustee hereunder, as their names and addresses appear in the Security Register, a brief report
dated as of such May 15 with respect to:

     (1) its eligibility under Section 6.9 and its qualifications under Section 6.8, or in
lieu thereof, if to the best of its knowledge it has continued to be eligible and qualified
under said Sections, a written statement to such effect;

     (2) the character and amount of any advances (and if the Trustee elects so to state,
the circumstances surrounding the making thereof) made by the Trustee (as such) which
remain unpaid on the date of such report, and for the reimbursement of which it claims or
may claim a lien or charge, prior to that of such Securities, on any property or funds held
or collected by it as Trustee, except that the Trustee shall not be required (but may
elect) to report such advances if such advances so remaining unpaid aggregate not more than
1/2 of 1% of the principal amount of such Securities Outstanding on the date of such report;

     (3) the amount, interest rate and maturity date of all other indebtedness owing by the
Company (or by any other obligor on the Securities) to the Trustee in its individual
capacity, on the date of such report, with a brief description of

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any property held as
collateral security therefor, except an indebtedness based upon a creditor relationship
arising in any manner described in Section 6.13(b)(2), (3), (4) or (6);

     (4) the property and funds, if any, physically in the possession of the Trustee as
such on the date of such report;

     (5) any additional issue of Securities for which it is Trustee hereunder which the
Trustee has not previously reported; and

     (6) any action taken by the Trustee in the performance of its duties hereunder which
it has not previously reported and which in its opinion materially affects such Securities,
except action in respect of a default, notice of which has been or is to be withheld by the
Trustee in accordance with Section 6.2.

     (b) The Trustee shall transmit by mail to all Holders of Securities for which it is Trustee
hereunder, as their names and addresses appear in the Security Register, a brief report with
respect to the character and amount of any advances (and if the Trustee elects so to state, the
circumstances surrounding the making thereof) made by the Trustee (as such) since the date of the
last report transmitted pursuant to subsection (a) of this Section (or if no such report has yet
been so transmitted, since the date of execution of this instrument) for the reimbursement of which
it claims or may claim a lien or charge, prior to that of such Securities, on property or funds
held or collected by it as Trustee and which it has not previously reported pursuant to this
subsection, except that the Trustee shall not be required (but may elect) to report such advances
if such advances remaining unpaid at any time aggregate 10% or less of the principal amount of such
Securities Outstanding at such time, such report to be transmitted within 90 days after such time.

     (c) A copy of each such report shall, at the time of such transmission to such Holders, be
filed by the Trustee with each securities exchange upon which any such Securities are listed, with
the Commission and with the Company. The Company will notify the Trustee when any such Securities
are listed on any securities exchange.

Section 7.4. Reports by Company.The Company shall:

     (1) file with the Trustee, within 15 days after the Company is required to file the
same with the Commission, copies of the annual reports and of the information, documents
and other reports (or copies of such portions of any of the foregoing as the Commission may
from time to time by rules and regulations prescribe) which the Company may be required to
file with the Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange
Act of 1934; or, if the Company is not required to file information, documents or reports
pursuant to either of said Sections, then it shall file with the Trustee and the
Commission, in accordance with rules and regulations prescribed from time to time by
the Commission, such of the supplementary and periodic information, documents and reports
which may be required pursuant to Section 13 of the Securities Exchange Act of 1934 in
respect of a security listed and registered on a

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national securities exchange as may be
prescribed from time to time in such rules and regulations;

     (2) file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such additional information,
documents and reports with respect to compliance by the Company with the conditions and
covenants of this Indenture as may be required from time to time by such rules and
regulations; and

     (3) transmit by mail to all Holders, as their names and addresses appear in the
Security Register, within 30 days after the filing thereof with the Trustee, such summaries
of any information, documents and reports required to be filed by the Company pursuant to
paragraphs (1) and (2) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission.

     Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such reports shall not constitute constructive notice of
any information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

ARTICLE VIII

Consolidation, Merger, Conveyance, Transfer Or Lease 

Section 8.1. Company May Consolidate, Etc., Only on Certain Terms.The Company shall not
consolidate with or merge into any other corporation or convey, transfer or lease its properties
and assets substantially as an entirety to any Person, unless:

     (1) the Person formed by such consolidation or into which the Company is merged or the
Person which acquires by conveyance or transfer, or which leases, the properties and assets
of the Company substantially as an entirety shall be a corporation organized and existing
under the laws of the United States of America, any State thereof or the District of
Columbia and shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment
of the principal of (and premium, if any) and interest on all the Securities and the
performance of every covenant of this Indenture on the part of the Company to be
performed or observed;

     (2) immediately after giving effect to such transaction, no Default, and no event
which, after notice or lapse of time or both, would become a Default, shall have happened
and be continuing; and

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     (3) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and
such supplemental indenture comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with.

Section 8.2. Successor Corporation Substituted.Upon any consolidation of the Company with, or
merger of the Company into, any other corporation or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance with Section 8.1,
the successor corporation formed by such consolidation or into with the Company is merged or to
which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the same effect as if such
successor corporation had been named as the Company herein, and thereafter, except in the case of a
lease, the predecessor corporation shall be relieved of all obligations and covenants under this
Indenture and the Securities.

Section 8.3. Effect of Business Combination.

     If the Company is involved in a business combination where, immediately after the consummation
of such business combination, more than 50% of the surviving entity’s voting stock is owned by the
shareholders of the other party to the business combination, then:

     (1) any Deferred Interest on the Securities as of the date of consummation of the
business combination shall not be subject to the requirements of Section 13.4 and Section
13.5 to the extent that the applicable Extended Interest Payment Period is terminated on
the next Interest Payment Date following the date of consummation of the business
combination (or, if later, at any time within 90 days following the date of such
consummation); and

     (2) the Company’s covenant not to, and to not permit its subsidiaries to, purchase any
of its common stock for a one year period following the end of an Extended Interest Payment
Period that lasts longer than one year as described in Section 13.3 will not apply to any
Extended Interest Payment Period that is terminated on the next Interest Payment Date
following the date of consummation of the business combination (or, if later, at any time
within 90 days following the date of such consummation).

ARTICLE IX

Supplemental Indentures 

Section 9.1. Supplemental Indentures Without Consent of Holders.Without the consent of any
Holders, the Company, when authorized by a Board Resolution, and the Trustee,

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at any time and from
time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to
the Trustee, for any of the following purposes:

     (1) to evidence the succession of another corporation to the Company and the
assumption by any such successor of the covenants of the Company contained herein and in
the Securities, pursuant to Article VIII; or

     (2) to add to the covenants of the Company for the benefit of the Holders of all or
any series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included solely for
the benefit of one or more specified series) or to surrender any right or power herein
conferred upon the Company; or

     (3) to add any additional Defaults; or

     (4) to change or eliminate any of the provisions of this Indenture, provided that any
such change or elimination shall become effective only when there is no Security
Outstanding of any series created prior to the execution of such supplemental indenture
which is entitled to the benefit of such provision; or

     (5) to secure the Securities; or

     (6) to establish the form or terms of Securities of any series as permitted by
Sections 2.1 and 3.1; or

     (7) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 6.11(b); or

     (8) to cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions with respect
to matters or questions arising under this Indenture, provided such action shall not
adversely affect the interests of the Holders of Securities of any series in any material
respect.

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Section 9.2. Supplemental Indentures with Consent of Holders.With the consent of the Holders
of not less than a majority in principal amount of the Outstanding Securities of each series
affected by such supplemental indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an
indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner
the rights of the Holders of Securities of such series under this Indenture; provided that no such
supplemental indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby,

     (1) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of
interest thereon (including any change in the Floating or Adjustable Rate Provision
pursuant to which such rate is determined that would reduce that rate for any period) or
any premium payable upon the redemption thereof, or change any Place of Payment where, or
the coin or currency in which, any Security or any premium or the interest thereon is
payable, or impair the right to institute suit for the enforcement of any such payment on
or after the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date), or modify the provisions of this Indenture with respect to the
subordination of the Securities in a manner adverse to the Holders, or

     (2) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or
the consent of whose Holders is required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their consequences) provided
for in this Indenture, or

     (3) modify any of the provisions of this Section or Section 5.6, except to increase
any such percentage or to provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each Outstanding Security affected
thereby; provided that this clause shall not be deemed to require the consent of any Holder
with respect to changes in the references to “the Trustee” and concomitant changes in this
Section or the deletion of this proviso, in accordance with the requirements of Sections
6.11(b) and 9.1(8), or

     (4) remove or impair the rights of any Holder of Securities to bring a Direct Action
in certain circumstances, as provided in Section 15.1;

provided, further, that if the Securities of such series are held by a Citigroup Trust or a trustee
of such trust, such supplemental indenture shall not be effective until the holders of a majority
in liquidation preference of Trust Securities of the applicable Citigroup Trust shall have
consented to such supplemental indenture; provided, further, that if the consent of the Holder of
each Outstanding Security is required, such supplemental

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indenture shall not be effective until each holder of the Trust Securities of the applicable
Citigroup Trust shall have consented to such supplemental indenture.

     A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

     It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

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Section 9.3. Execution of Supplemental Indentures.In executing, or accepting the additional
trusts created by, any supplemental indenture permitted by this Article or the modifications
thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, in
addition to the documents required by Section 1.2, and (subject to Section 6.1) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise.

Section 9.4. Effect of Supplemental Indentures.Upon the execution of any supplemental
indenture under this Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby
to the extent provided therein.

Section 9.5. Conformity with Trust Indenture Act.Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in
effect.

Section 9.6. Reference in Securities to Supplemental Indentures.Securities of any series
authenticated and delivered after the execution of any supplemental indenture pursuant to this
Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee
as to any matter provided for in such supplemental indenture. If the Company shall so determine,
new Securities of any series so modified as to conform, in the opinion of the Trustee and the
Company, to any such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Securities of such series.

ARTICLE X

Covenants

Section 10.1. Payment of Principal, Premium and Interest.The Company covenants and agrees for
the benefit of each series of Securities that it will duly and punctually pay the principal of (and
premium, if any) and interest on the Securities of that series in accordance with the terms of the
Securities of such series and this Indenture, and will duly comply with all other terms, agreements
and conditions contained in, or made in the Indenture for the benefit of, the Securities of such
series.

Section 10.2. Maintenance of Office or Agency.The Company will maintain in each Place of
Payment for any series of Securities an office or agency where Securities of that series may be
presented or surrendered for payment, where Securities of that series may be surrendered for
registration of transfer or exchange and where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served. The Company will give
prompt written notice to the Trustee of the location, and

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any change in the location, of such
office or agency. If at any time the Company shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee,
and the Company hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency.

Section 10.3. Money for Securities Payments to Be Held in Trust.If the Company shall at any
time act as its own Paying Agent with respect to any series of Securities, it will, on or before
each due date of the principal of (and premium, if any) or interest on any of the Securities of
that series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay the principal (and premium, if any) or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify
the Trustee of its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of (and premium, if any) or interest on any
Securities of that series, deposit with a Paying Agent a sum sufficient to
pay the principal (and premium, if any) or interest so becoming due, such sum to be held in
trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless
such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or
failure so to act.

     The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will:

     (1) hold all sums held by it for the payment of the principal of (and premium, if any)
or interest on Securities of that series in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of as herein
provided;

     (2) give the Trustee notice of any default by the Company (or any other obligor upon
the Securities of that series) in the making of any payment of principal (and premium, if
any) or interest on the Securities of that series; and

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     (3) at any time during the continuance of any such default, upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying
Agent.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of (and premium, if any) or interest on any Security of any
series and remaining unclaimed for three years after such principal (and premium, if any) or
interest has become due and payable shall be paid to the Company on Company Request, or (if then
held by the Company) shall be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; provided that the Trustee or such Paying
Agent, before being required to make any such repayment, may at the expense of the Company cause to
be published once, in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in the Borough of Manhattan, The City of New York, New
York, notice that such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

Section 10.4. Statement by Officers as to Default.The Company will deliver to the Trustee,
within 120 days after the end of each fiscal year of the Company ending after the date hereof, an
Officers’ Certificate stating whether or not to the best knowledge of the signers thereof the
Company is in default in the performance and observance of any of the terms, provisions and
conditions of Sections 10.1 to 10.3, inclusive, and if the Company shall be in default, specifying
all such defaults and the nature and status thereof of which they may have knowledge.

Section 10.5. Covenants as to Citigroup Trusts.For so long as any Trust Securities of a
Citigroup Trust remain outstanding, the Company will (i) maintain 100% direct or indirect ownership
of the Common Securities of such Citigroup Trust; provided, however, that any permitted successor
of the Company hereunder may succeed to the Company’s ownership of such Common Securities, (ii) not
voluntarily dissolve, wind up or terminate such Citigroup Trust, except in connection

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with a
distribution of Securities upon a Special Event, and in connection with certain mergers,
consolidations or amalgamations permitted by the Declaration of the applicable Citigroup Trust,
(iii) timely perform its duties as Sponsor of the applicable Citigroup Trust, (iv) use its
reasonable efforts to cause such Citigroup Trust to (a) remain a business trust, except in
connection with a distribution of Securities to the holders of Trust Securities as provided in the
Declaration of such Citigroup Trust, the redemption of all of the Trust Securities and in
connection with certain mergers, consolidations or amalgamations permitted by the Declaration of
such Citigroup Trust, and (b) otherwise continue to be classified as a grantor trust for United
States federal income tax purposes and (v) not knowingly take any action that would cause such
Citigroup Trust to not be classified as a grantor trust for United States federal income tax
purposes.

Section 10.6. Payment of Expenses.(a) In connection with the offering, sale and issuance of
each series of Securities to the Institutional Trustee of a Citigroup Trust and in connection with
the sale of Trust Securities by such Citigroup Trust, the Company, in its capacity as borrower with
respect to such Securities, shall:

          (i) pay all costs and expenses relating to the offering, sale and issuance of such Securities,
including commissions to the underwriters payable pursuant to the applicable Underwriting Agreement
and compensation of the Trustee under this Indenture in accordance with the provisions of Section
6.7;

          (ii) pay all costs and expenses of such Citigroup Trust (including, but not limited to, costs
and expenses relating to the organization of the trust, the offering, sale and issuance of the
Trust Securities of such Citigroup Trust (including commissions to the underwriters in connection
therewith), the fees and expenses of the Institutional Trustee, the Regular Trustees and the
Delaware Trustee of such Citigroup Trust, the costs and expenses relating to the operation,
maintenance and dissolution of such Citigroup Trust and the enforcement by such Institutional
Trustee of the rights of the
holders of the Preferred Securities of such Citigroup Trust, including without limitation,
costs and expenses of accountants, attorneys, statistical or bookkeeping services, expenses for
printing and engraving and computing or accounting equipment, paying agent(s), registrar(s),
transfer agent(s), duplicating, travel and telephone and other telecommunications expenses and
costs and expenses incurred in connection with the acquisition, financing, and disposition of
assets of such Citigroup Trust);

          (iii) be primarily liable for any indemnification obligations arising with respect to the
Declaration of such Citigroup Trust;

          (iv) pay any and all taxes (other than United States withholding taxes in respect of amounts
paid on the Securities held by such Citigroup Trust) and all liabilities, costs and expenses with
respect to such taxes of such Citigroup Trust.

     (b) Upon termination of this Indenture or any series of Securities or the removal or
resignation of the Trustee pursuant to Section 6.10, the Company shall pay to the Trustee all
amounts accrued and owing to the Trustee to the date of such termination, removal or resignation.
Upon termination of the Declaration of any Citigroup Trust or the removal or resignation of the
Delaware Trustee or the Institutional Trustee, as the case

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may be, pursuant to Section 5.6 of the
Declaration of such Citigroup Trust, the Company shall pay to such Delaware Trustee or such
Institutional Trustee, as the case may be, all amounts accrued and owing to such Delaware Trustee
or such Institutional Trustee, as the case may be, to the date of such termination, removal or
resignation.

Section 10.7. Listing on an Exchange.If Securities of any series are to be issued as a Global
Security in connection with the distribution of such Securities to the holders of the Preferred
Securities of a Citigroup Trust upon a Dissolution Event with respect to such Citigroup Trust, the
Company will use its best efforts to list such series of Securities on the New York Stock Exchange,
Inc. or on such other securities exchange as the Preferred Securities of such Citigroup Trust are
then listed. The Company will promptly notify the Trustee in writing of any Securities that will be
listed on any securities exchange.

Section 10.8. Future Issuance of Securities.Any Securities issued under this Indenture shall
(x) be issued with the concurrence or approval of the Federal Reserve or its staff or (y) qualify
at the time of issuance for tier 1 capital treatment (irrespective of any limits on the amount of
the Company’s tier 1 capital) under applicable capital adequacy guidelines, regulations, policies
or published interpretations of the Federal Reserve.

ARTICLE XI

Redemption Of Securities

Section 11.1. Applicability of Article; Federal Reserve Concurrence or Approval.Securities of
each series are redeemable before their respective Stated Maturities in accordance with their
respective terms and (except as otherwise specified as contemplated by Section 3.1 for Securities
of any series) in accordance with this Article. Any redemption of any series of Securities, in
whole or in part, prior to their respective Stated Maturities shall be subject to receipt by the
Company of the prior concurrence or approval of the Federal Reserve or its staff, (i) if such
concurrence or approval is then required in order for securities such as the Securities to qualify
as tier 1 capital under applicable capital adequacy guidelines, regulations, policies, published
interpretations, or concurrence or approval of the Federal Reserve or its staff, or (ii) if the
Federal Reserve or its staff has informed the Company that it must obtain such approval before
redeeming the Securities.

Section 11.2.
Election to Redeem; Notice to Trustee. Subject to the provisions of Section
11.2(b) and to the other provisions of this Article XI, except as otherwise may be specified in
this Indenture or, with respect to any series of Securities, as otherwise specified as contemplated
by Section 3.1 for the Securities of such series, the Company shall have the right to redeem any
series of Securities, in whole or in part, from time to time, on or after the Redemption Option
Date for such series at the Redemption Price. The election of the Company to redeem any Securities
redeemable at the election of the Company shall be evidenced by a Board Resolution. In case of any
redemption at the election of the Company of less than all the Securities of any series, the
Company shall, at least 40 days (unless a shorter period is acceptable to the Trustee), but not
more than 60 days, prior to the Redemption Date fixed by the Company, notify the Trustee of such
Redemption Date and of the principal amount of Securities of such series to be redeemed.

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In the case of any redemption of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish
the Trustee with an Officers’ Certificate evidencing compliance with such restriction.

     (b) If a partial redemption of any series of Securities would result in the delisting of the
Preferred Securities of the Citigroup Trust that purchased such Securities from any national
securities exchange or other organization on which the Preferred Securities of such Citigroup Trust
are then listed, the Company shall not be permitted to effect such partial redemption and may only
redeem such series of Securities in whole.

Section 11.3. Selection by Trustee of Securities to Be Redeemed.If less than all the
Securities of any series are to be redeemed, the particular Securities to be redeemed shall be
selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not
previously called for redemption, by such method as the Trustee shall deem fair and
appropriate and which may provide for the selection for redemption of portions (equal to the
minimum authorized denomination for Securities of that series or any integral multiple thereof) of
the principal amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series; provided, that, if at the time of redemption
such Securities are registered as a Global Security, the Depositary shall determine, in accordance
with its procedures, the principal amount of such Securities held by each Security Beneficial Owner
to be redeemed.

     The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

Section 11.4. Notice of Redemption.Notice of redemption shall be given by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to
each Holder of Securities to be redeemed, at his address appearing in the Security Register.

     All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price,

     (3) if less than all the Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amounts) of the
particular Securities of such series to be redeemed,

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     (4) that on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and that interest thereon will cease to accrue on and
after said date, and

     (5) the place or places where such Securities are to be surrendered for payment of the
Redemption Price.

     Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company.

Section 11.5. Deposit of Redemption Price.Prior to 10:00 a.m., New York City time, on any
Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.3)
an amount of money sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities which are to be redeemed
on that date.

Section 11.6. Securities Payable on Redemption Date.Notice of redemption having been given as
aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable
at the Redemption Price therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such Securities shall cease to
bear interest. Upon surrender of any such Security for redemption in accordance with said notice,
such Security shall be paid by the Company at the Redemption Price, together with accrued interest
to the Redemption Date; provided that installments of interest whose Stated Maturity is on or prior
to the Redemption Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the relevant Record Dates
according to their terms and the provisions of Section 3.7.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate prescribed therefor in the Security.

     The Redemption Price shall be paid prior to 12:00 noon, New York City time, on the date of
such redemption or such earlier time as the Company determines, provided that the Company shall
deposit with the Trustee an amount sufficient to pay the Redemption Price by 10:00 a.m., New York
City time, on the date such Redemption Price is to be paid.

Section 11.7. Securities Redeemed in Part.Any Security which is to be redeemed only in part
shall be surrendered at a Place of Payment for Securities of that series (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company duly executed by, the Holder thereof or his attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the
Holder of such Security without service charge, a new Security or Securities of the same series, of
like tenor and of any authorized

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denomination as requested by such Holder, in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of the Security so
surrendered.

Section 11.8. Tax Event Redemption.If a Tax Event with respect to any Citigroup Trust has
occurred and is continuing and:

     (a) the Company has received a Redemption Tax Opinion with respect to such Citigroup Trust; or

     (b) after receiving a Tax Event Opinion, the Regular Trustees of such Citigroup Trust shall
have been informed by tax counsel rendering the Tax Event Opinion that a No Recognition Opinion
cannot be delivered to such Citigroup Trust,

then, notwithstanding Section 11.2(a) but subject to Section 11.2(b) and Section 11.1, the Company
shall have the right upon not less than 30 days nor more than 60 days notice to the Holders of
Securities of the series issued to such Citigroup Trust, or to its Institutional Trustee, to redeem
such Securities, in whole or in part, for cash within 90 days following the occurrence of such Tax
Event at the Redemption Price, provided that if at the time there is available to the Company or
such Citigroup Trust the opportunity to eliminate, within such 90-day period, the Tax Event by
taking some ministerial action (“Ministerial Action”), such as filing a form or making an election,
or pursuing some other similar reasonable measure which has no adverse effect on the Company, the
Trust or the holders of the Trust Securities of such Citigroup Trust, the Company or such Citigroup
Trust shall pursue such Ministerial Action in lieu of redemption, and, provided further that the
Company shall have no right to redeem such Securities while the Company or such Citigroup Trust is
pursuing any Ministerial Action pursuant to its obligations under the Declaration of such Citigroup
Trust.

ARTICLE XII

[INTENTIONALLY OMITTED]

ARTICLE XIII

Extension Of Interest Payment Period

Section 13.1. Extension of Interest Payment Period.The Company shall have the right, at any
time and from time to time during the term of the Securities of any series, to defer payments of
interest by extending the interest payment period of all Securities of such series for a period not
exceeding 40 consecutive quarters (the “Extended Interest Payment Period”), during which Extended
Interest Payment Period no interest shall be due and payable on Securities of such series; provided
that no Extended Interest Payment Period may extend beyond the Maturity of such Securities. To the
extent permitted by applicable law, interest, the payment of which has been deferred because of the
extension of the
interest payment period pursuant to this Section 13.1, will bear interest thereon at

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the
Coupon Rate compounded quarterly for each quarter of the Extended Interest Payment Period
(“Compounded Interest”). At the end of any Extended Interest Payment Period with respect to any
series of Securities, the Company shall pay all interest accrued and unpaid on such Securities,
including any Additional Interest and Compounded Interest (together, “Deferred Interest”) that
shall be payable to the Holders of Securities of such Series in whose names such Securities are
registered in the Security Register on the first record date after the end of such Extended
Interest Payment Period. Before the termination of any Extended Interest Payment Period, the
Company may further extend such period; provided that such period, together with all such further
extensions thereof, shall not exceed 40 consecutive quarters; and provided further that no
prepayment of interest during an Extended Interest Payment Period shall allow the Company to extend
such Extended Interest Payment Period beyond 40 consecutive quarters. Upon the termination of any
Extended Interest Payment Period with respect to any series of Securities and upon the payment of
all Deferred Interest then due, the Company may commence a new Extended Interest Payment Period
with respect to such series of Securities, subject to the foregoing requirements. No interest on a
series of Securities shall be due and payable during an Extended Interest Payment Period with
respect thereto, except at the end thereof, provided the Company may prepay at any time all or any
portion of the interest accrued during any Extended Interest Payment Period.

Section 13.2. Notice of Extension.(a) If the Institutional Trustee of a Citigroup Trust is the
only Holder of Securities of a series at the time the Company selects an Extended Interest Payment
Period with respect thereto, the Company shall give written notice to the Regular Trustees and the
Institutional Trustee of such Citigroup Trust and to the Trustee of its selection of such Extended
Interest Payment Period at least one Business Day before the earlier of (i) the next succeeding
date on which Distributions on the Trust Securities issued by such Citigroup Trust are payable, or
(ii) the date such Citigroup Trust is required to give notice of the record date, or the date such
Distributions would be payable if not for such Extended Interest Payment Period, to the New York
Stock Exchange or other applicable self-regulatory organization or to holders of the Preferred
Securities issued by such Citigroup Trust, but in any event at least one Business Day before such
record date.

     (b) If the Institutional Trustee of a Citigroup Trust is not the only Holder of Securities of
a series at the time the Company selects an Extended Interest Payment Period with respect thereto,
the Company shall give written notice to the Holders of Securities of such series and the Trustee
of its selection of such Extended Interest Payment Period at least 10 Business Days before the
earlier of (i) the next succeeding Interest Payment Date, or (ii) the date the Company is required
to give notice of the record or payment date of such interest payment to the New York Stock
Exchange or other applicable self-regulatory organization or to Holders of Securities of such
series.

     (c) The quarter in which any notice is given pursuant to paragraphs (a) or (b) of this Section
13.2 shall be counted as one of the 40 quarters permitted in the maximum Extended Interest Payment
Period with respect to any series of Securities permitted under Section 1.3.

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     (d) Notwithstanding anything else contained in this Indenture, the Company shall be
required to give notice to any person of its selection of an Extended Interest Payment Period no
more than 15 Business Days and no less than 5 Business Days before the next succeeding Interest
Payment Date of the affected Securities.

Section 13.3. Limitation of Transactions.If with respect to any series of Securities (i) the Company shall
exercise its right to defer payments of interest thereon as provided in Section 13.1 or (ii) there
shall have occurred any Default, then (a) the Company and any subsidiary of the Company shall not
declare or pay any dividend on, make any distributions with respect to, or redeem, purchase,
acquire or make a liquidation payment with respect to, any of its capital stock or make any
guarantee payment with respect thereto (other than (i) purchases, redemptions or other acquisitions
of shares of capital stock of the Company in connection with any employment contract, benefit plan
or other similar arrangement with or for the benefit of employees, officers, directors or
consultants, (ii) purchases of shares of common stock of the Company pursuant to a contractually
binding requirement to buy stock existing prior to the commencement of the extension period,
including under a contractually binding stock repurchase plan, (iii) as a result of an exchange or
conversion of any class or series of the Company’s capital stock for any other class or series of
the Company’s capital stock, (iv) the purchase of fractional interests in shares of the Company’s
capital stock pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, or (v) purchase of the Company’s capital stock in connection
with the distribution thereof); and (b) the Company and any subsidiary of the Company will not make
any payment of interest, principal or premium on, or repay, purchase or redeem, any debt securities
or guarantees issued by the Company that rank pari passu with or junior to the Securities (other
than (i) any payment of current or Deferred Interest on securities that rank pari passu with the
Securities that is made pro rata to the amounts due on such securities (including the Securities),
provided that any such payments of Deferred Interest are made in accordance with Section 13.5(d),
(ii) any payments of Deferred Interest on securities that rank pari passu with the Securities that,
if not made, would give rise to an event of default permitting acceleration of such securities or
(iii) any repayment or redemption of a security necessary to avoid a breach of the instrument
governing the same), provided, however, that the Company may declare and pay a stock dividend where
the dividend stock is the same stock as that on which the dividend is being paid. If any Extended
Interest Payment Period lasts longer than one year, unless required to do so by the Federal Reserve
and subject to the exceptions listed in clauses (a) and (b) of this Section 13.3, the Company will
not, and will not permit any subsidiary to purchase any of its common stock for a one-year period
following the payment of all Deferred Interest with the New Equity Amount.

Section 13.4. Limitation on Source of Payment of Deferred Interest. During an Extended Interest Payment
Period, the Company may not pay Deferred Interest on the Securities on any date in an amount that
exceeds the New Equity Amount for such date; provided, however, that (i) upon the Maturity of the
Securities, (ii) during
the occurrence and continuation of a Supervisory Event or (iii) if an Event of Default and
Acceleration shall have occurred and be continuing, the provisions of this Section 13.4 shall not
apply and the Company may pay Deferred Interest with cash from any source. Nothing in this

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Indenture will prevent the Company from paying current interest on the Securities at any time using
cash from any source.

Section 13.5 Obligation to Effect Certain Common Stock Sales.(a) Commencing on the earlier of (i) the Fifth
Deferral Anniversary, if on such date the related Extended Interest Payment Period has not ended,
and (ii) the date of any payment of current interest on the Securities during an Extended Interest
Payment Period, if any Deferred Interest is outstanding, the Company shall be subject to the
“Alternative Payment Mechanism,” pursuant to which it will continuously use its commercially
reasonable efforts to effect sales of shares of its common stock, including treasury shares, in an
amount that will generate sufficient net proceeds to enable the Company to pay in full all Deferred
Interest on the Securities then outstanding; provided that the Company shall not be obligated to
make offers for or effect sales of its common stock during the occurrence and continuation of a
Market Disruption Event or a Supervisory Event and will be permitted to pay Deferred Interest using
cash from any source upon the occurrence of a Supervisory Event. The Company’s obligation to use
commercially reasonable efforts to sell shares of its common stock to pay all Deferred Interest on
the Securities shall resume at such time as no Market Disruption Event or Supervisory Event exists
or is continuing.

     (b) As used in this Section 13.5, the term “commercially reasonable efforts” means
commercially reasonable efforts on the part of the Company to complete the sale of shares of its
common stock, including treasury shares, to third parties that are not subsidiaries of the Company.
The Company will not be considered to have used its commercially reasonable efforts to effect a
sale of stock if it determines not to pursue or complete such sale solely due to pricing or
dilution considerations.

     (c) The Company is not permitted to sell shares of common stock in excess of a number of
shares of common stock to be specified pursuant to a Board Resolution, and set forth in an
Officers’ Certificate for each series of Securities (in each case, the “Share Cap Amount”), for the
purpose of satisfying Section 13.5(a) or otherwise paying Deferred Interest on the Securities of
the relevant series then outstanding. If the issued and outstanding shares of common stock shall
have been changed into a different number of shares or a different class by reason of any stock
split, reverse stock split, stock dividend, reclassification, recapitalization, split-up,
combination, exchange of shares or other similar transaction, then each affected Share Cap Amount
shall be correspondingly adjusted. The Company shall increase a Share Cap Amount (including through
the increase of its authorized share capital, if necessary) to an amount that would allow the
Company to raise sufficient proceeds to satisfy its obligations to pay Deferred Interest in full at
the end of the first year of an Extended Interest Payment Period (and on each subsequent
anniversary of the end of the first year of an Extended Interest Payment
Period to the extent that an Extended Interest Payment Period would last more than one year),
if a then-current Share Cap Amount would not allow the Company to raise sufficient proceeds to
satisfy its obligations to pay Deferred Interest (including Compounded Interest to that date)
assuming a price per share equal to the average trading price of the Company’s common shares over
the ten-trading-day period preceding such date; provided that the Company will not be obligated to
increase a Share Cap Amount above the maximum number of shares specified in the relevant Officers’
Certificate.

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Until the Tenth Deferral Anniversary, a Default will occur if the Company does not
increase the relevant Share Cap Amount to an amount that is greater than the minimum number of
shares specified in the relevant Officers’ Certificate when required to do so as described above;
provided that no Default will occur if the Company has increased the relevant Share Cap Amount to
the maximum number of shares specified in the relevant Officers’ Certificate.

     (d) Following the earlier of (i) the Fifth Deferral Anniversary and (ii) the date of any
payment of current interest during an Extended Interest Payment Period, the Company shall apply the
net proceeds received by it from sales of shares of its common stock, including sales of treasury
shares, to the payment of all amounts owing in respect of Deferred Interest, with net proceeds to
be paid promptly after receipt until all amounts owing in respect of Deferred Interest have been
paid in full. In the event that net proceeds received by the Company from one or more sales of
shares of its common stock following such Fifth Deferral Anniversary are not sufficient to satisfy
the full amount of Deferred Interest, such net proceeds will be paid to the holders of the
Securities in chronological order; provided, that if the Company has outstanding at such time any
debt securities ranking pari passu with the Securities under the terms of which the Company is
obligated to sell shares of its common stock and apply the net proceeds to payment of deferred
interest on such pari passu securities and the Company at such time is required to apply such
proceeds to pay deferred interest on such pari passu securities, then on any date and for any
period the amount of net proceeds received by the Company from such sales and available for payment
of such deferred interest shall be applied on a pro rata basis to the amounts due on each series of
such securities (including the Securities) up to any APM Maximum Obligation, Share Cap Amount or
other similar limit then applicable to such series. Notwithstanding the above, the Company shall
not be obligated to sell common stock or to apply such net proceeds or any portion thereof to the
payment of Deferred Interest during the occurrence and continuation of Market Disruption Event or a
Supervisory Event.

     (e) Notwithstanding anything to the contrary in this Indenture, under no circumstances will
the Company be obligated to sell shares of Qualified Warrants or to apply the proceeds of any such
sale to pay Deferred Interest on the Securities.

     (f) Notwithstanding anything to the contrary in this Indenture, the Company will not be
obligated to issue common stock prior to the Fifth Deferral Anniversary if the gross proceeds of
any issuance of common stock and Qualified Warrants applied to pay Deferred Interest on the
Securities pursuant to this Section 13.5, together with the gross proceeds of all prior issuances
of common stock and Qualified Warrants applied since the commencement of the Extended Interest
Payment Period, would exceed an amount equal
to 2% of the product of (1) the average of the Current Stock Market Prices of the Company’s
common stock on the 10 consecutive trading days ending on the fourth trading day immediately
preceding the date of issuance by the Company of common stock applied to pay Deferred Interest on
the Securities pursuant to Section 13.5 and (2) the total number of issued and outstanding shares
of the Company’s common stock as of the date of the Company’s publicly available consolidated
financial statements (the “APM Maximum Obligation”). Once the Company reaches the APM Maximum

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Obligation for an Extended Interest Payment Period, the Company will not be obligated to issue more
common stock or Qualified Warrants pursuant to this Section 13.5 prior to the Fifth Deferral
Anniversary even if the Current Stock Market Price of the Company’s common stock or the number of
outstanding shares of its common stock subsequently increase. The APM Maximum Obligation will cease
to apply following the Fifth Deferral Anniversary, at which point the Company must repay any
Deferred Interest, regardless of the time at which it was deferred, using proceeds from sales of
the Company’s common stock, including treasury shares, subject to any Market Disruption Event,
Supervisory Event, and the Share Cap Amount. If the APM Maximum Obligation has been reached during
an Extended Interest Payment Period and the Company subsequently repays all Deferred Interest, the
APM Maximum Obligation will cease to apply at the termination of such Extended Interest Payment
Period and will not apply again unless and until the Company starts a new Extended Interest Payment
Period.

Section 13.6. Notice of Market Disruption Event.

     Upon and after the Fifth Deferral Anniversary, if a Market Disruption Event has occurred and
is continuing, the Company shall give, as promptly as possible after the Company becomes aware of
such occurrence, a written notice (a “Market Disruption Event Notice”) to the Trustee, stating the
date on which such Market Disruption Event has occurred, the nature thereof and what action it will
take in connection therewith.

Section 13.7. Notice of Supervisory Event.

     Upon and after the Fifth Deferral Anniversary, if a Supervisory Event has occurred and is
continuing, the Company shall give, as promptly as possible after the Company becomes aware of such
occurrence, a written notice (a “Supervisory Event Notice”) to the Trustee stating that a
Supervisory Event has commenced and the actions it will take in connection therewith. No later
than five (5) Business Days following termination of a Supervisory Event, the Company shall give a
written notice to the Trustee stating the date on which such Supervisory Event terminated.

Section 13.8. Notices to the Federal Reserve.The Company shall give written notice to the Federal Reserve:

     (a) No later than five (5) Business Days following commencement of an Extended Interest
Payment Period; and

     (b) Upon the earlier to occur of (i) the Fifth Deferral Anniversary of such Extended Interest
Payment Period or (ii) the payment of current interest during an Extended Interest Payment Period.

Section 13.9. Obligation to Notify Federal Reserve of Intent to Sell Stock.(a) At least 25 Business Days in
advance of the relevant payment date (or such longer period as may be required by the Federal
Reserve or by other supervisory action) the Company shall give written notice to the Federal
Reserve of its intent both (1) to sell shares of common stock or, at the Company’s sole discretion,
Qualified Warrants and (2) to apply the net proceeds from such sale to pay Deferred Interest, and
shall only take any such actions if the

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Federal Reserve does not disapprove of any such actions
within ten (10) Business Days (or such longer period as may be required by Federal Reserve order or
by other supervisory action) after the Company gives such notice to the Federal Reserve or has
withdrawn any prior disapproval.

ARTICLE XIV

Subordination Of Securities

Section 14.1. Agreement to Subordinate.The Company covenants and agrees, and each Holder of Securities
issued hereunder by such Holder’s acceptance thereof likewise covenants and agrees, that all
Securities shall be issued subject to the provisions of this Article Fourteen; and each Holder of a
Security, whether upon original issue or upon transfer or assignment thereof, accepts and agrees to
be bound by such provisions.

     The payment by the Company of the principal of, premium, if any, and interest on all
Securities issued hereunder shall, to the extent and in the manner hereinafter set forth, be
subordinated and junior in right of payment to the prior payment in full of all Senior Indebtedness
of the Company, whether outstanding at the date of this Indenture or thereafter incurred.

     No provision of this Article Fourteen shall prevent the occurrence of any Default hereunder.

Section 14.2. Default on Senior Indebtedness.In the event and during the continuation of any default by the
Company in the payment of principal, premium, interest or any other payment due on any Senior
Indebtedness of the Company, as the case may be, or in the event that the maturity of any Senior
Indebtedness of the Company, as the case may be, has been accelerated because of a default, then,
in either case, no payment shall be made by the Company with respect to the principal (including
redemption payments) of, or premium, if any, or interest on, the Securities or to acquire any of
the Securities.

     In the event that, notwithstanding the foregoing, any payment shall be received by the
Trustee, by any Holder or by any Paying Agent (or, if the Company is acting as its own Paying
Agent, money for any such payment is segregated and held in trust) when such payment is prohibited
by the preceding paragraph of this Section 14.2, before all Senior Indebtedness of the Company is
paid in full, or provision is made for such payment in money in accordance with its terms, such
payment shall be held in trust for the benefit of, and shall be paid over or delivered to, the
holders of Senior Indebtedness of the Company or their respective representatives, or to the
trustee or trustees under any indenture pursuant to which any of such Senior Indebtedness may have
been issued, as their respective interests may appear, ratably according to the aggregate amount
remaining unpaid on account of the principal, premium, interest or any other payment due on the
Senior Indebtedness held or represented by each, for application to the payment of all Senior
Indebtedness of the Company, as the case may be, remaining unpaid to the extent necessary to pay
such Senior Indebtedness in full in money in

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accordance with its terms, after giving effect to any
concurrent payment or distribution to or for the benefit of the holders of such Senior
Indebtedness, but only to the extent that the holders of the Senior Indebtedness (or their
representative or representatives or a trustee) notify the Trustee in writing within 90 days of
such payment of the amounts then due and owing on the Senior Indebtedness and only the amounts
specified in such notice to the Trustee shall be paid to the holders of Senior Indebtedness.

Section 14.3. Liquidation; Dissolution; Bankruptcy.Upon any payment by the Company or distribution of assets
of the Company of any kind or character, whether in cash, property or securities, to creditors upon
any dissolution or winding-up or liquidation or reorganization of the Company, whether voluntary or
involuntary or in bankruptcy, insolvency, receivership or other proceedings, all amounts due upon
all Senior Indebtedness of the Company shall first be paid in full, or payment thereof provided for
in money in accordance with its terms, before any payment is made by the Company on account of the
principal (and premium, if any) or interest on the Securities; and upon any such dissolution or
winding-up or liquidation or reorganization, any payment by the Company, or distribution of assets
of the Company of any kind or character, whether in cash, property or securities, to which the
Holders of the Securities or the Trustee would be entitled to receive, except for the provisions of
this Article Fourteen, shall be paid by the Company or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution, or by the Holders
of the Securities or by the Trustee under this Indenture if received by them or it, directly to the
holders of Senior Indebtedness of the Company (pro rata to such holders on the
basis of the respective amounts of Senior Indebtedness held by such holders, as calculated by the
Company) or their representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness may have been
issued, as their respective interests may appear, to the extent necessary to pay such Senior
Indebtedness in full, in money or money’s worth, after giving effect to any concurrent payment or
distribution to or for the holders of such Senior Indebtedness, before any payment or distribution
is made to the Holders of Securities or to the Trustee.

     In the event that, notwithstanding the foregoing, any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, prohibited by the
foregoing, shall be received by the Trustee, by any Holder or by any Paying Agent (or, if the
Company is acting as its own Paying Agent, money for any such payment is segregated and held in
trust) before all Senior Indebtedness of the Company is paid in full, or provision is made for such
payment in money in accordance with its terms,
such payment or distribution shall be held in trust
for the benefit of and shall be paid over or delivered to the holders of such Senior Indebtedness
or their representative or representatives, or to the trustee or trustees under any indenture
pursuant to which any of such Senior Indebtedness may have been issued, as their respective
interests may appear, ratably according to the aggregate amount remaining unpaid on account of the
principal, premium, interest or any other payment due on the Senior Indebtedness held or
represented by each, as calculated by the Company, for application to the payment of all Senior
Indebtedness of the Company, as the case may be, remaining unpaid to the extent necessary to pay
such Senior Indebtedness in full in money in accordance with its terms,

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after giving effect to any
concurrent payment or distribution to or for the benefit of the holders of such Senior
Indebtedness.

     For purposes of this Article Fourteen, the words “cash, property or securities” shall not be
deemed to include shares of stock of the Company as reorganized or readjusted, or securities of the
Company or any other corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article Fourteen with
respect to the Securities to the payment of all Senior Indebtedness of the Company, as the case may
be, that may at the time be outstanding, provided that (i) such Senior Indebtedness is assumed by
the new corporation, if any, resulting from any such reorganization or readjustment, and (ii) the
rights of the holders of such Senior Indebtedness are not, without the consent of such holders,
altered by such reorganization or readjustment. The consolidation of the Company with, or the
merger of the Company into, another corporation or the liquidation or dissolution of the Company
following the conveyance or transfer of its property as an entirety, or substantially as an
entirety, to another corporation upon the terms and conditions provided for in Article VIII shall
not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this
Section 14.3 if such other corporation shall, as a part of such consolidation, merger, conveyance
or transfer, comply with the conditions stated in Article VIII. Nothing in Section 14.2 or in this
Section 14.3 shall apply to-claims of, or payments to the Trustee under or pursuant to Section 6.7.

Section 14.4. Subrogation.Subject to the payment in full of all Senior Indebtedness of the Company, the
rights of the Holders of the Securities shall be subrogated to the rights of the holders of such
indebtedness to receive payments or distributions of cash, property or securities of the Company,
as the case may be, applicable to such Senior Indebtedness until the principal of (and premium, if
any) and interest on the Securities shall be paid in full; and, for the purposes of such
subrogation, no payments or distributions to the holders of such Senior Indebtedness of any cash,
property or securities to which the Holders of the Securities or the Trustee would be entitled
except for the provisions of this Article
Fourteen, and no payment over pursuant to the provisions of this Article Fourteen to or for
the benefit of the holders of such Senior Indebtedness by Holders of the Securities or the Trustee,
shall, as between the Company, its creditors other than Holders of Senior Indebtedness of the
Company, and the holders of the Securities, be deemed to be a payment by the Company to or on
account of such Senior Indebtedness. It is understood that the provisions of this Article Fourteen
are and are intended solely for the purposes of defining the relative rights of the Holders of the
Securities, on the one hand, and the holders of such Senior Indebtedness on the other hand.

     Nothing contained in this Article Fourteen or elsewhere in this Indenture or in the Securities
is intended to or shall impair, as between the Company, its creditors other than the holders of
Senior Indebtedness of the Company, and the Holders of the Securities, the obligation of the
Company, which is absolute and unconditional, to pay to the Holders of the Securities the principal
of (and premium, if any) and interest on the Securities as and when the same shall become due and
payable in accordance with their terms, or is intended to or shall affect the relative rights of
the Holders of the Securities and creditors of the Company, as the case may be, other than the
holders of Senior Indebtedness of the

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Company, as the case may be, nor shall anything herein or
therein prevent the Trustee or the Holder of any Security from exercising all remedies otherwise
permitted by applicable law upon default under the Indenture, subject to the rights, if any, under
this Article Fourteen of the holders of such Senior Indebtedness in respect of cash, property or
securities of the Company, as the case may be, received upon the exercise of any such remedy.

     Upon any payment or distribution of assets of the Company referred to in this Article
Fourteen, the Trustee, subject to the provisions of Section 6.1, and the Holders of the Securities
shall be entitled to conclusively rely upon any order or decree made by any court of competent
jurisdiction in which such dissolution, winding-up, liquidation or reorganization proceedings are
pending, or a certificate of the receiver, trustee in bankruptcy, liquidation trustee, agent or
other Person making such payment or distribution, delivered to the Trustee or to the Holders of the
Securities, for the purposes of ascertaining the Persons entitled to participate in such
distribution, the holders of Senior Indebtedness and other indebtedness of the Company, as the case
may be, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article Fourteen.

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Section 14.5. Trustee to Effectuate Subordination.Each Holder of Securities by such Holder’s acceptance
thereof authorizes and directs the Trustee on such Holder’s behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in this Article Fourteen and
appoints the Trustee such Holder’s attorney-in-fact for any and all such purposes.

Section 14.6. Notice by the Company.The Company shall give prompt written notice to a Responsible Officer of
the Trustee of any fact known to the Company that would prohibit the making of any
payment of monies to or by the Trustee in respect of the Securities pursuant to the provisions
of this Article Fourteen. Notwithstanding the provisions of this Article Fourteen or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of
any facts that would prohibit the making of any payment of monies to or by the Trustee in respect
of the Securities pursuant to the provisions of this Article Fourteen, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof from the Company or a
holder or holders of Senior Indebtedness or their representative or representatives or from any
trustee therefor; and before the receipt of any such written notice, the Trustee, subject to the
provisions of Section 6.1 shall be entitled in all respects to assume that no such facts exist;
provided, however, that if the Trustee shall not have received the notice provided for in this
Section 14.6 at least three Business Days prior to the date upon which by the terms hereof any
money may become payable for any purpose (including, without limitation, the payment of the
principal of (or premium, if any) or interest on any Security), then, anything herein contained to
the contrary notwithstanding, the Trustee shall have full power and authority to receive such money
and to apply the same to the purposes for which they were received, and shall not be affected by
any notice to the contrary that may be received by it within three Business Days prior to such
date.

     The Trustee, subject to the provisions of Section 6.1, shall be entitled to conclusively rely
on the delivery to it of a written notice by a Person representing himself to be a holder of Senior
Indebtedness of the Company, as the case may be (or a trustee on behalf of such holder), to
establish that such notice has been given by a holder of such Senior Indebtedness or a trustee on
behalf of any such holder or holders. In the event that the Trustee determines in good faith that
further evidence is required with respect to the right of any Person as a holder of such Senior
Indebtedness to participate in any payment or distribution pursuant to this Article Fourteen, the
Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of such Senior Indebtedness held by such Person, the extent to which such Person
is entitled to participate in such payment or distribution and any other facts pertinent to the
rights of such Person under this Article Fourteen, and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as to the right of such
Person to receive such payment.

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Section 14.7. Rights of the Trustee; Holders of Senior Indebtedness.The Trustee in its individual capacity
shall be entitled to all the rights set forth in this Article Fourteen in respect of any Senior
Indebtedness at any time held by it, to the same extent as any other holder of Senior Indebtedness,
and nothing in this Indenture shall deprive the Trustee of any of its rights as such holder.

     With respect to the holders of Senior Indebtedness of the Company, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are specifically set forth in
this Article Fourteen, and no implied covenants or obligations with respect to the holders of such
Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee shall not
be deemed to owe any fiduciary duty to the holders of such Senior Indebtedness and, subject to the
provisions of Section 6.1, the
Trustee shall not be liable to any holder of such Senior Indebtedness if it shall pay over or
deliver to Holders of Securities, the Company or any other Person money or assets to which any
holder of such Senior Indebtedness shall be entitled by virtue of this Article Fourteen or
otherwise.

Section 14.8. Subordination May Not Be Impaired.

     No right of any present or future holder of any Senior Indebtedness of the Company to enforce
subordination as herein provided shall at any time in any way be prejudiced or impaired by any act
or failure to act on the part of the Company, as the case may be, or by any act or failure to act,
in good faith, by any such holder, or by any noncompliance by the Company, as the case may be, with
the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof that any
such holder may have or otherwise be charged with.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness of the Company may, at any time and from time to time, without the consent of or
notice to the Trustee or the Holders of the Securities, without incurring responsibility to the
Holders of the Securities and without impairing or releasing the subordination provided in this
Article Fourteen or the obligations hereunder of the Holders of the Securities to the holders of
such Senior Indebtedness, do any one or more of the following: (i) change the manner, place or
terms of payment or extend the time of payment of, or renew or alter, such Senior Indebtedness, or
otherwise amend or supplement in any manner such Senior Indebtedness or any instrument evidencing
the same or any agreement under which such Senior Indebtedness is outstanding; (ii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise securing such Senior
Indebtedness; (iii) release any Person liable in any manner for the collection of such Senior
Indebtedness; and (iv) exercise or refrain from exercising any rights against the Company, as the
case may be, and any other Person.

Section 14.9. Trustee’s Compensation Not Prejudiced.Nothing in this Article Fourteen shall apply to amounts
due to the Trustee pursuant to Section 6.7 of this Indenture.

Section 14.10. Disclaimer of Right to Enforce Covenants.Except as specifically provided for in this Article
14, no holder of Senior Indebtedness shall have any right to enforce any

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of the covenants in this
Indenture, including but not limited to those contained in Sections 5.11, 13.4, 13.5, 13.6, 13.7
and 13.8

ARTICLE XV

Miscellaneous 

Section 15.1. Acknowledgement of Rights.The Company acknowledges that, with respect to any Securities held
by a Citigroup Trust or a trustee of such Trust, if the Institutional Trustee of such Citigroup
Trust fails to enforce its rights under this Indenture as the Holder of the series of Securities
held as the assets of such Citigroup Trust, any holder of Preferred Securities of such Citigroup
Trust may institute legal proceedings directly against the Company to enforce such Institutional
Trustee’s rights under this Indenture without first instituting any legal proceedings against such
Institutional Trustee or any other person or entity.

     Notwithstanding the foregoing, if a Default has occurred and is continuing and such event is
attributable to the failure of the Company to pay interest or principal on the applicable series of
Securities on the date such interest or principal is otherwise payable (or in the case of
redemption, on the redemption date), the Company acknowledges that a holder of Trust Securities
issued by the Citigroup Trust which is, or the Institutional Trustee of which is, the Holder of
such Securities may directly institute a proceeding for enforcement of payment to such holder of
the principal of or interest on the applicable series of Securities having a principal amount equal
to the aggregate liquidation amount of the Trust Securities of such holder (a “Direct Action”) on
or after the respective due date specified of such holder on or after the respective due date
specified in the applicable series of Securities. Notwithstanding any payments made to such holder
of Trust Securities by the Company in connection with a Direct Action, the Company shall remain
obligated to pay the principal of or interest on the series of Securities held by a Citigroup Trust
or the Institutional Trustee of a Citigroup Trust, and the Company shall be subrogated to the
rights of the holder of such Trust Securities to the extent of any payments made by the Company to
such holder in any Direct Action.

Section 15.2. Severability.

     In case any provision in this Indenture or in any series of Securities shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

Section 15.3. Counterparts.

     This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

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     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the day and year first above written.

	 	 	 	 	 	 	 
	 	 	CITIGROUP INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	  
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,	 	 
	 	 	As Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	  
	 

	 	 	 	Title:EX-4.02

 

Exhibit 4.02

AMENDED AND RESTATED CERTIFICATE OF TRUST

          The undersigned, the trustees of Citigroup Capital XVIII, a Delaware statutory trust formed on
June 19, 2006 under its current name, desiring to amend and restate the Certificate of Trust of
Citigroup Capital XVIII, hereby certify as follows:

(a) The name of the statutory trust being formed hereby (the “Trust”) is “Citigroup Capital
XVIII.”

(b) The name and business address of the trustee of the Trust which has its principal place of
business in the State of Delaware is as follows:

The Bank of New York (Delaware)

100 White Clay Center

Route 273

P. O. Box 6995

Newark, DE 19711

          (c) This amended and restated Certificate of Trust shall be effective as of the date of
filing.

Dated: December 8, 2006

	 	 	 	 	 
	 

	 	/s/ John Gerspach
 

Name: John Gerspach, as Regular Trustee
	 	 
	 
	 	 	 	 
	 

	 	/s/ Sallie Krawcheck
 

Name: Sallie Krawcheck, as Regular Trustee
	 	 
	 
	 	 	 	 
	 

	 	/s/ Saul Rosen
 

Name: Saul Rosen, as Regular Trustee
	 	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK (DELAWARE),

as Delaware Trustee

 	 
	 	By:  	/s/ Kristine K. Gullo
 	 
	 	 	Name:  	Kristine K. Gullo 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CITIGROUP INC., as Sponsor

 	 
	 	By:  	/s/ Charles E. Wainhouse
 	 
	 	 	Name:  	Charles E. Wainhouse 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

1

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