Document:

exhibit10-35.htm

    Exhibit
10.35

     

    [Citi
Letterhead]

     

    June 9, 2008

     

    PRIVATE &
CONFIDENTIAL

     

    Alberto
Verme
Global Co-Head
Investment Banking 
Citigroup
Suite 701, Level 7, Bldg 2 DIFC 
P.O. Box
506560, Dubai

     

    Dear
Alberto:

     

    Global Expatriate Assignment – Letter of
Understanding

     

    On behalf of Global
Mobility, I am pleased to confirm the terms and conditions relating to your
expatriate assignment to the Investment Banking Division in U.A.E. Your assignment
is scheduled to commence on July 1, 2008, subject to your obtaining the
appropriate work permit/visa approvals. Citigroup will assist you and your
family in obtaining the appropriate documents.

     

    During your
expatriate assignment, your salary and benefits will be controlled exclusively
by and administered solely under the terms and conditions of the expatriate
program. Therefore, you are not eligible for any benefits or salary provided
locally in U.A.E. However, you will be subject to certain local practices, such
as office holiday schedules, and restrictions in certain countries on
participation in Citigroup equity compensation and investment
programs.

     

    The following is a
general summary of the key elements of the expatriate policy and benefit plans
that apply to your assignment. Other than in relation to the provisions on
duration of assignment and notice (see below), in the event of any inconsistency
between the following summary and the applicable policy or plan, the terms and
conditions of the applicable policy or plan shall control and govern for the
period of your expatriate assignment.

     

    Attached is a
preliminary salary worksheet, which will provide you with an estimate of your
compensation and allowances under the expatriate program. Allowances fluctuate
based on various conditions, including exchange rates. Refer to the applicable
Expatriate Handbook for details.

     

    DURATION AND REASON FOR
ASSIGNMENT

     

    It is anticipated
that the length of your assignment to fill a specific need with the Investment
Banking Division as a Global Co-Head will not exceed three years, subject to
business needs and circumstances in each case, and to the notice provisions set
out in this letter below. If your assignment extends beyond three years, during
the fourth year, your business in its sole discretion may extend your expatriate
assignment or begin to explore other options, including but not limited to,
termination of your assignment (see notice provisions below). Citigroup may, on
termination of your assignment, at its sole discretion, offer you the
opportunity to either become a local employee, repatriate to your original
sending country, or take another expatriate assignment in another
country.

     

    

    
    

    Page 2 of
7

     

    This letter is
not an employment contract or a guarantee to employ you for any definite period
of time or at any place at any time. To the extent legally permissible, your
employment at all times is on an “at-will” basis.

     

    SALARY

     

    At the start of
your assignment, your annual gross base salary will be US$225,000 and your job
level is Managing Director.

     

    For the
duration of your assignment to the Investment Banking Division in U.A.E, your
salary will be maintained in US Dollars.

     

    You should
refer to the Compensation section of the Expatriate Handbook for further
information relating to the terms and conditions that apply to your salary and
any other discretionary benefits you may be eligible to receive during your
expatriate assignment.

     

    Any
remuneration received under the terms of this letter will be subject to such
deductions as are required by law, as well as any amounts required in accordance
with the expatriate remuneration policy (such as hypothetical taxes and housing
charges referred to below.)

     

    EXPATRIATE
HANDBOOK

     

    All of the
benefits and allowances outlined in this letter are subject to certain limits
and specific definitions. These explanations of other benefits provided to you
during your assignment, and responsibilities associated with your expatriate
assignment, are set forth in the applicable Expatriate Handbook, which is
available on the Global Mobility Web site on the Human Resources Intranet. The
Global Mobility Web site address is:
http://globalmobility.citigroup.net/

     

    In the handbook, you will find
guidelines on:

     

    	Moving and relocation
  procedures (shipment of goods, shipment of pets, temporary living,
  etc.); 
        
	Goods and services differential
  and moving allowance;
        
	Education allowances and
  assistance for your dependent children;
        
	Home leave (if applicable);
        
	Vacation schedules and
  procedures;
        
	Automobile assistance (if
  applicable) and language training;
        
	Pre-assignment medical
  examinations and check-ups; 

    

    
    

    Page 3 of
7

    	Change in family status
  policies;
        
	Emergency leave and evacuation
  procedures, should those be necessary; and
        
	Termination of employment or
  resignation. 

    You’ll also
find a detailed description of Citigroup’s tax equalization and tax protection
policies.

     

    HYPOTHETICAL TAX WITHHOLDING AND
HYPOTHETICAL HOUSING CHARGES

     

    •  Actual and Hypothetical
Taxes
Citigroup will pay all income taxes to all taxing jurisdictions on total
Citigroup compensation paid during your expatriate assignment. During this same
period, Citigroup will deduct hypothetical taxes from your expatriate salary
each month. You are also responsible for hypothetical tax on any Citigroup
equity income during your assignment (e.g., stock option exercise gains and the
value of stock awards at vesting). Hypothetical taxes, calculated on your
Citigroup compensation, are based on United States income tax. You will be
responsible for all actual taxes due on any non-Citigroup income, but you may be
entitled to claim a limited right to tax protection for such income, as more
fully explained in the applicable Expatriate Handbook.

     

    The benefits
described in the Expatriate Handbook and summarized elsewhere herein, for which
you may be eligible as a participant in the expatriate program, including the
tax equalization policy, will at all times be subject to the terms of the
expatriate program then in effect. These benefits are broadly designed to limit
as far as reasonably possible your out-of-pocket costs for certain living
expenses, including income taxes, to what you would have paid had you been an
employee under local terms and conditions in your compensation country. To
ensure the fair and equitable administration of these policies, you agree to
assume the following responsibilities:

     

    •  Payment of Tax Obligations to
Citigroup
You agree to pay Citigroup any outstanding hypothetical taxes within 30
days of the date of your final tax reconciliation statement for the year (the
“Due Date”). Payments not received by the Due Date will be subject to additional
interest charges and penalties.

     

    •  Filing Tax
Returns
You agree to cooperate with PwC in preparing any required income tax
returns including providing PwC with any required information in a timely manner
and ensuring that it is complete and accurate in all material respects. You will
be liable for any charges, penalties and interest assessed by the taxing
authorities as a result of any untimely or inaccurate
submissions.

     

    

    
    

    Page 4 of
7

     

    •  Notice and Right of
Offset
If you cannot meet any of these tax related obligations within the time
provided, you agree to notify Citigroup in writing as soon as reasonably
practicable, fully describing the reasons for your non-compliance. Depending on
the circumstances, Citigroup may, at its discretion, offer you an adjusted
payment schedule (but shall be under no obligation to do so). However, if any
amounts due hereunder remain unpaid for 120 days after the Due Date and a
re-payment schedule has not been agreed to by you and Citigroup in writing, you
hereby consent to the deduction of any such sums owing by you to Citigroup from
your salary, any allowances, reimbursements or any other payment or payments due
to you from Citigroup or any associated company. You hereby also agree to make
immediate payment of any such sums owed by you to Citigroup or any associated
company upon demand.

     

    •  Hypothetical Housing
Charges
Citigroup will deduct a hypothetical housing cost from your expatriate
pay each month. Hypothetical housing costs represent an independent estimate of
the average expense of housing in New York for a person at your salary level and
family size. This deduction can change when there is a change in your base
salary and also annually based upon survey data provided by an independent
consultant. You agree to this deduction from your pay and acknowledge that it
may be less than or may exceed the housing allowance described below, based on
housing costs in your assignment location relative to average housing costs in
New York.

     

    SPECIFIC EXPATRIATE ASSIGNMENT
ALLOWANCES

     

    Listed below
are the major expatriate allowances. Citigroup will pay any taxes due on these
allowances.

     

    •  Housing
Allowance
Citigroup will pay a housing and utility allowance designed to cover the
cost of housing in your assignment country. This amount is based on your family
size (which includes only those who accompany you on assignment) and is limited
to an amount determined for your country of assignment. The allowance is subject
to periodic reviews and may change based upon survey data provided by an
independent consultant. Any rental and utility costs in excess of the country
allowance for your family size is your responsibility.

     

    Citigroup will
pay all taxes incurred on this housing allowance.

     

    •  Moving
Allowance
At the beginning of your assignment, you will receive a one-time lump-sum
moving allowance of US$10,000 to cover some of your incidental moving
expenses.

     

    •  Goods and Services
Differential
To cover the difference in the cost of
goods and services between New York and Dubai, a Goods and Services (G&S)
Differential will be paid to you, if applicable, as a tax-free monthly payment.
The amount provided can change monthly depending on inflation, foreign exchange
rates, salary and family size. It is paid only if the cost of goods and
services, as determined by our outside consultant, exceed the costs in New
York.

     

    

    
    

    Page 5 of
7

     

    •  Hardship
Allowance
Due to living conditions in Dubai, you are eligible for a hardship
allowance. The amount of the allowance is a variable percentage of your base
salary (capped at $150,000), which for your assignment location is currently 10%
per month. Hardship allowances are reviewed periodically (generally, annually)
and are therefore subject to change. Citigroup will pay any taxes due on this
allowance.

     

    EMPLOYMENT
STATUS

     

    During the term
of your assignment you will not be an employee of CGML Dubai or Citibank NA
Dubai Branch. You shall remain an employee of the Citigroup employing entity as
set out in your employment contract which will be lending your services to the
Investment Banking Division of CGML Dubai pursuant to an inter-company agreement
for the supply of employee services.

     

    EMPLOYEE BENEFITS AND COUNTRIES
DEFINED

     

    •  Employee
Benefits
Throughout your assignment, you will be eligible for the expatriate
health and insurance program, which includes medical and dental
coverage.

     

    Information on
your various benefits will be provided to you under separate
cover.

     

    •  Countries
Defined
Your expatriate assignment will typically impact more than one
jurisdiction. In order to facilitate the best possible management of
expatriate-related benefits, the countries to which you have a relationship
during your assignment are specified as follows:

     

    Your assignment country is U.A.E. and your
compensation country is the United
States.

     

    Your pension country is the United States.
You will continue to be covered under the current retirement plan for your
pension country for which you are eligible (if any). Generally, you will not be
eligible for any company or government provided benefits in your assignment
country, unless required by law. You will remain eligible for other mandatory or
government social/welfare programs in your pension country to the extent legally
possible.

     

    Your home
leave country is United States and is the country to which you and
your family may take your annual home leave.

     

    

    
    

    Page 6 of
7

     

    Your principal
residence is located in the United States, which is defined as your property management
country.

     

    The country to
which you are expected to return at the end of your expatriate assignment is the
United States, which is defined as your return country. Citigroup will make a
reasonable effort to find you a suitable position within Citigroup upon your
return to this country. However, you accept that Citigroup does not guarantee
you reinstatement to your pre-assignment position (or any other position of
employment) in this country or anywhere else in the world.

     

    VARIATION OR TERMINATION OF POLICY
AND/OR TERMS OF ASSIGNMENT

     

    Citigroup
reserves the right to modify, amend and/or discontinue any of the terms and
conditions of the policies or programs described in this letter and/or the
Expatriate Handbook, or any other aspect of the expatriate program, at any time
and from time to time. Citigroup also maintains and you acknowledge by signing
below, that the place of work is not an essential element of the employment
relationship and can be changed by the company, in its sole
discretion.

     

    NOTICE

     

    Your employment
may be terminated in accordance with the notice provisions set out in your
contract of employment.

     

    You should
refer to the notice section of the Expatriate Handbook for further information
relating to the terms and conditions that apply to the termination of your
employment (by Citigroup or by you) during your expatriate
assignment.

     

    DATA PRIVACY

     

    By signing this
letter, you agree that Citigroup, any Associated Company and/or third parties
may in connection with your employment and/or your expatriate assignment (during
and after termination), process personal data (including sensitive personal
data) for the purposes of managing your employment and assignment arrangements
(for example, for the provision of benefits to you), for compliance with legal
and regulatory obligations (including, but not limited to, the prevention and
detection of crime and anti-terrorism), for the purpose of Citigroup’s business
or other legitimate interests or as otherwise required or permitted by law or
regulation. Because of the international nature of an expatriate assignment,
your personal data will, subject to applicable law, be transferred
internationally to other countries worldwide for the purposes of managing your
international assignment. This may mean that personal data is transferred to
countries, such as the United States, where the data servers are located. Each
country provides different standards of legal protection of personal
data.

     

    

    
    

    Page 7 of
7

     

    SIGNATURE

     

    Please sign and date two copies of this letter and return one copy to me
and retain the other copy for your records. By signing below, you agree to the
terms of the expatriate program and your assignment as summarized and set forth
in this letter and the Expatriate Handbook, which you acknowledge that you have
read and understood.

     

    I wish you much
success in your new assignment.

     

    Sincerely,

     

    /s/ Abdulla
Edham,
Human
Resources Head – Middle East

     

     

     

    
      	Accepted by: /s/ Alberto Verme 	Date: June 24, 2008 

    

     

     

    Attachments:
Preliminary Compensation Statement

     

    

    
    

    
      	   PREPARED BY:	     	Jo Tolchard	     	DATE:	   	10/06/2008
	   NAME:	
            	ALBERTO VERME	
            	
            	
            	  

    

    
      	EXPATRIATE PAY STATEMENT ESTIMATES
	 
	PLEASE NOTE: ESTIMATE WILL NOT EQUAL
      YOUR ACTUAL NET PAY, SINCE MEDICAL AND
	DENTAL
      DEDUCTIONS, INSURANCE, STOCK PURCHASE PLANS, ETC., ARE NOT
    INCLUDED.

    

    
      	 
	
            	
            	MONTHLY	     	ANNUAL
	   TAXABLE EARNINGS	
            	
            	
            	
            
	                                                       
      BASE SALARY	
            	$18,750.00	
            	$225,000.00
	                                                       
      TAXABLE EARNING	
            	
            	
            	
            
	                                                       
      TAXABLE BONUS	
            	
            	
            	
            
	   NON-TAXABLE EARNINGS	
            	
            	
            	
            
	                                                       
      HARDSHIP ALLOW	
            	$1,250.00	
            	$15,000.00
	                                                       
      GOODS/SVCS ALLOW	
            	$1,036.30	
            	$12,435.57
	   HYPO CHARGES	
            	
            	
            	
            
	                                                       
      HYPO TAX-FEDERAL	
            	($-3,104.72)	
            	($-37,256.58)
	                                                       
      HYPO TAX-STATE	
            	($-1,151.15)	
            	($-13,813.78)
	                                                       
      HYPO FICA SS	
            	($-527.00)	
            	($-6,324.00)
	                                                       
      HYPO FICA MED	
            	($-271.88)	
            	($-3,262.50)
	                                                       
      HYPO NY HOUSING	
            	($-3,003.33)	
            	($-36,040.00)
	  
	   NET PAY
      IN USD	
            	$12,978.23	
            	$155,738.71

    

     

       A
RELOCATION ALLOWANCE OF USD 10,000 WILL BE CREDITED TO YOUR ACCOUNT AT THE
APPROPRIATE TIME. 

     

       CIGNA EMPLOYEE CONTRIBUTIONS
BASED ON A FAMILY SIZE OF 4
   MEDICAL USD $496 PER MONTH 
   DENTAL USD $44.18 PER MONTHexhibit10-36.htm

    Exhibit 10.36 

     

    December 29, 2008

     

    Edward J.
Kelly
Citigroup Inc.
399 Park Avenue
New York, NY 10043 

     

    Dear Ned:

     

    Reference is made to
our letter agreement dated February 4, 2008 (the “Letter Agreement”). In light
of the need to modify the Letter Agreement to reflect your changed position
within Citigroup Alternative Investments (“CAI”) since the execution of the
Letter Agreement, you and we hereby agree to amend the Letter Agreement as
follows: 

     

    The third sentence of
the second paragraph of paragraph 1 shall be amended and restated as follows:

     

    “Good Reason shall mean (i) a material reduction in your title,
responsibilities, duties, authority or positions, all as in effect on the date
hereof or as altered with your written consent; (ii) a decrease in your
guaranteed incentive compensation or annual salary or a failure by the Company
to pay compensation due and payable to you in connection with this offer; (iii)
(A) you are no longer Head of Global Banking and President and CEO of CAI or (B)
a change in your reporting relationship as in effect on the date hereof unless
after such change you report solely to the Chief Executive Officer of Citigroup
Inc. or as altered with your written consent or (iv) a transfer of your primary
workplace outside of Manhattan unless the Company’s or CAI’s principal corporate
office is moved outside Manhattan and you are asked to transfer to such
principal corporate office, in which case Good Reason shall mean moving the
Company’s or CAI’s principal corporate office more than 30 miles outside
Manhattan; provided, however, that no event or condition specified in
subparagraphs (i) - (iv) above shall constitute Good Reason unless (x) you give
the Company written notice of your intention to terminate your employment for
Good Reason and the grounds for such termination within 30 days of your
discovery of such grounds, and (y) such grounds for termination (if susceptible
to correction) are not corrected by the Company within 30 days of its receipt of
such notice (or, in the event that such grounds are susceptible to correction
but cannot be corrected within such 30-day period, the Company has taken all
reasonable steps within such 30-day period to correct such grounds, and such
grounds are not corrected within the next 30-day period thereafter);
provided, further, that no change in title or reporting
relationship shall constitute Good Reason if (aa) such change arises in
connection with a reorganization of the Company’s 

     

    

    
    

    management or organizational structure so that such title no longer
exists and (bb) you are provided a title with substantially similar authority
and/or equivalent reporting relationship.” 

     

    Very truly yours,

     

    CITIGROUP
INC. 
 

     

    
      	/s/ Paul D.
      McKinnon
	Name: Paul D. McKinnon
	Title: Head of Human
Resources

    

    Agreed and
acknowledged: 

     

    
      	/s/ Edward J.
      Kelly
	Edward J. Kelly

    

    

    
    

    February 4, 2008

     

    BY HAND DELIVERY 
Mr. Edward J. Kelly 
 

     

    We are delighted to
extend to you an offer to join Citibank, N.A. (the “Company” and, together with
its parent, and its and their subsidiaries, “Citi”), as President of Citi
Alternative Investments. Upon joining the Company, you will report to the CEO of
CAI. Your expected start date will be Monday, February 4, 2008. 

     

    If you accept, you
will be joining a family of companies that serves 200 million customer accounts
in nearly 100 countries and is bound together by a steady focus on
growth, a workforce committed to excellence, and a workplace based on mutual
respect, where every employee can make a difference. 

     

    Base Salary. Your base salary will be paid semi-monthly at
an annual rate of $225,000.00 (less applicable withholdings and deductions).

     

    Incentive and Retention Awards.

     

    1. 2008 Guaranteed Incentive and Retention
Award. In addition to your
base salary, for fiscal year 2008, your total incentive and retention award is
guaranteed, subject to the provisions below, to be not less than $9,775,000.00,
which will be paid and granted, respectively, no later than March 15, 2009. The
2008 guaranteed incentive and retention award is payable in a combination of
cash and a restricted or deferred stock award pursuant to the Capital
Accumulation Program(s) (“CAP”) in effect at the time of the award. CAP is
composed of two programs, the Core Capital Accumulation Program (“Core CAP”) and
the Supplemental Capital Accumulation Program (“Supplemental CAP”). A copy of
the current CAP Prospectus is enclosed. 

     

         Your 2008 guaranteed incentive and retention
award will not be paid and granted if, before the date of the scheduled payment
and grant you have voluntarily terminated your employment without “Good Reason”
or you have been terminated by the Company for “Cause.” Cause shall mean an
action taken by any governmental or non-governmental regulatory body or self
regulatory organization (“SRO”) which substantially impairs you from performing
your duties; your material misconduct in connection with your employment; your
material breach of any material CAI policy or rule; your dishonesty in
connection with your employment; your breach of your fiduciary duty of loyalty
to CAI; your violation of any securities or banking law, rule or regulation or
of an SRO’s constitution, by-laws, rules or regulation; your failure to obtain
the 

     

    

    
    

    Edward J.
Kelly
February 4, 2008
Page 2 of 9 
 

     

    required licenses
within a reasonable period of time after your start date or to remain licensed
to perform your functions; your failure to devote all of your professional time
to your assigned duties and to the business of CAI; your conviction of a felony;
your conviction for a crime of breach of trust, dishonesty, money laundering or
participation in a pre-trial diversion program for such a crime; your continued,
material failure to perform after written notice or your serious negligence in
the performance of your duties; or, a factual representation made by you in the
furtherance of your hiring which shall prove to have been incorrect in any
material respect when made. Good Reason shall mean (i) a material reduction in
your title, responsibilities, duties, authority or positions; (ii) a decrease in
your guaranteed incentive compensation or annual salary or a failure by the
Company to pay
compensation due and payable to you in connection with this offer; (iii) (A)
someone other than you replaces the current CEO of CAI in that role or (B) a
change in your reporting relationship that results in your reporting to someone
other than the CEO of CAI, unless you become the CEO of CAI or (iv) a transfer
of your primary workplace outside of Manhattan unless the Company’s or CAI’s
principal corporate office is moved outside Manhattan and you are asked to
transfer to such principal corporate office, in which case Good Reason shall
mean moving the Company’s or CAI’s principal corporate office more than 30 miles
outside Manhattan; provided, however, that no event or condition specified in
subparagraphs (i) – (iv) above shall constitute Good Reason unless (x) you give
the Company written notice of your intention to terminate your employment for
Good Reason and the grounds for such termination within 30 days of your
discovery of such grounds, and (y) such grounds for termination (if susceptible
to correction) are not corrected by the Company with 20 days of its receipt of
such notice (or, in the event that such grounds are susceptible to correction
but cannot be corrected within such 20-day period, the Company has taken all
reasonable steps within such 20-day period to correct such grounds, and such
grounds are not corrected within the next 20-day period thereafter); provided,
further, that no change in title or reporting relationship shall constitute Good
Reason if (aa) such change arises in connection with a reorganization of the
Company’s management or organizational structure so that such title no longer
exists and (bb) you are provided a title with substantially similar authority
and/or equivalent reporting relationship. 

     

         Notwithstanding anything to the contrary, if
the Company terminates your employment without Cause, you terminate your
employment with Good Reason, or your employment with the Company is terminated
by reason of your death or total disability (as determined by the Social
Security Administration) (“Disability”), (i) if such termination is prior to the
payment or grant date for the 2008 guaranteed incentive and retention award,
your 2008 guaranteed incentive and retention award will be paid to you or your
estate in all cash on the date other similar 2008 incentive and retention awards
are paid and granted, no later than March 15, 2009 or (ii) to the extent the CAP
portion of this award (not including any premium shares), if any, is not vested
and delivered as a result of such termination, the Company will cancel such
unvested and unpaid portion of this award and will make a cash payment to you
equal to the value of such canceled shares (not including premium shares) as of
the termination date. However, if it is discovered prior to the date of payment
of the award that your employment could have been terminated for Cause,

     

    

    
    

    Edward J.
Kelly
February 4, 2008
Page 3 of 9 
 

     

    your employment
shall, at the election of the Company in its sole discretion, be deemed to have
been terminated for Cause, as of the date the event or events giving rise to the
termination for Cause, and the Company shall have no further obligation to pay
to you any outstanding guaranteed incentive and retention award. 

     

         Upon termination of your employment, all
employee perquisites, entitlements and benefits will immediately cease, except
as otherwise provided for in this agreement, or as otherwise provided under the
relevant benefit plans. In addition, you agree to accept such payments,
perquisites, entitlements and benefits in full satisfaction of any and all
claims arising out of this offer. 

     

    2. Discretionary Incentive and Retention
Award. For fiscal year
2009 and thereafter, you will be eligible to be considered for a discretionary
award package, generally made on an annual basis. Discretionary award packages
will be made at the discretion of management based on a variety of factors,
including Citi’s performance, your business unit’s performance, and your
individual contribution, and are subject to the terms below. 

     

         Award packages are made as a cash bonus or,
for award packages that exceed a certain threshold (as determined by the
Company), as a combination of an incentive award in the form of a cash bonus and
a retention award of restricted or deferred stock in accordance with CAP.

     

         Under current program guidelines, your 2008
guaranteed and any future discretionary award packages will be composed of a
cash bonus, Core CAP and Supplemental CAP award. The Core CAP award will
represent 25% of the pre-tax value of the award package, and the Supplemental
CAP award will represent from 5-15% of the award package. The remainder of the
award package after Core CAP and Supplemental CAP will be in the form of a cash
bonus (less applicable withholdings and deductions). 

     

         CAP awards are governed by the terms of the
prospectus in effect at the time of the award (as may be amended from time to
time) and CAP guidelines that may be modified at management’s discretion. CAP
awards are subject to vesting conditions, including but not limited to continued
employment, and will be cancelled if the conditions of vesting are not met.
Absent a written agreement to the contrary, and except for your 2008 guaranteed
award, all award packages are discretionary and you do not have a right to
receive such an award. In order to be eligible to receive any discretionary
award package, you must be actively employed by Citi on the date the award is
made. 

     

    Sign-On Award. You will receive a sign-on award on your start
date of 36,166 restricted or deferred shares of Citigroup Inc. common stock
pursuant to the Citigroup Stock Award Program (“CSAP”). The shares of restricted
or deferred stock will vest and be distributed to you at a rate of 25% per year
over four years beginning on the first anniversary of the grant date, provided
that you remain continuously employed by Citi 

     

    

    
    

    Edward J.
Kelly
February 4, 2008
Page 4 of 9  
 

     

    through each vesting
date and meet all other vesting conditions. More detailed information on the
terms and conditions of this grant will be outlined in the prospectus and
notification materials, which will be forwarded to you following the award date.
In the event that your employment with the Company is terminated at any time by
you with Good Reason, by involuntary termination not for Cause, or due to your
death or Disability, then the sign-on award shall fully vest and become
non-forfeitable as of the date of termination and shall be delivered to you in
freely tradeable form, or, at the Company’s discretion, the Company shall pay
you the cash equivalent of any forfeited shares measured as of the date of
termination. 

     

    Stock Ownership Commitment. Citi is a leader among companies that
maintain a stock ownership commitment. In 2005, Citi introduced an expanded
version of the stock ownership commitment, with a 25% holding requirement that
applies prospectively. After the expansion of the stock ownership commitment
became effective in 2006, approximately 3,000 employees around the world are
subject to Citi’s stock ownership commitment. We expect that this
stock ownership commitment will apply to you. 

     

    Compensation and Benefits. You will be eligible to participate in the
Company’s comprehensive benefit programs. All compensation and benefits are
deliverable in accordance with the Company’s policies, plans and programs in
effect at the time of delivery. Further details regarding these policies,
benefit plans and programs will be provided when you begin your employment.
Please note that all the Company’s compensation, benefits and other policies,
plans and programs are subject to change at management’s discretion.
Notwithstanding the foregoing, in addition to the Company’s moving the contents
of your current office to your office with the Company in Manhattan, in the
event that during your employment you relocate your primary residence to the New
York City area, you will be eligible for relocation benefits under the Company’s
relocation policy then in effect without regard to any time restrictions that
would otherwise apply. 

     

    Indemnification. You shall be indemnified to the maximum
extent provided by the corporate documents of the Company then in effect or
pursuant to applicable law and subject to your execution of applicable
undertakings, as provided by such corporate documents or applicable law,
including but not limited to recoupment if you do not meet the relevant standard
of conduct. You agree that should you request indemnification and/or the
advancement of expenses, you will repay all of such expenses if the Board of
Directors of the Company that advanced the expenses determines that the actions
for which such indemnification and/or advancement was sought did not meet the
relevant standard of conduct. 

     

    Taxes. All compensation, payments, incentive and
retention awards, perquisites, and benefits set forth in this letter are subject
to applicable federal, state and local taxes, and the Company will withhold such
taxes as it determines are required by applicable law or regulation. You will
remain obligated to pay all required taxes on all compensation, payments,
incentive and retention awards, perquisites, and benefits 

     

    

    
    

    Edward J.
Kelly
February 4, 2008
Page 5 of 9 
 

     

    regardless of whether
these amounts have been withheld or are required to be withheld by the Company.

     

    IRC Section 409A. This letter will be administered in accordance
with section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), and the Treasury pronouncements relating thereto. You
further agree that this Agreement may be amended by the Company to the extent
necessary to comply with section 409A of the Internal Revenue Code of 1986, as
amended, and any rules, regulations and any Treasury pronouncements relating
thereto in order to preserve the payments and benefits provided herein to the
extent possible without additional monetary costs to the Company. 

     

    Prior Restrictive
Covenants. You will abide
by any pre-existing terms and conditions that are contained in any contractual
restrictive covenants you may have entered into with any prior employer, client
or other person or entity, including (without limitation) any covenants relating
to the hiring or solicitation of employees, solicitation of customers, your
employment by a competitor, or maintaining the confidentiality of proprietary
information. You represent that your employment with the Company will not be in
violation of any pre-existing restrictive covenant, and you understand that your
employment with the Company is contingent upon same. If you are subject to any
such restrictive covenants, you have already disclosed them to me and you have
provided copies of them to me. 

     

    Non-Solicitation. In consideration of your employment, you
agree that while you are employed, and for one year following the termination of
your employment, you will not directly or indirectly solicit, induce, or
otherwise encourage any person to leave the employment of or terminate any
customer relationship with Citi. 

     

    Confidentiality. You also agree that during your employment,
you may have access to or acquire confidential, client, employee, competitive
and/or other business information that is unique and cannot be lawfully
duplicated or easily acquired. You understand and agree that you will have a
continuing obligation to protect the confidentiality of such information and not
to use, publish or otherwise disclose such information either during or after
your employment with the Company. 

     

    Pre-Employment Screening. Your employment is contingent upon successful
completion of any and all procedures and verifications to meet employment
eligibility, including completion of a drug screening; completion of reference
checks and a background criminal report; and your providing appropriate work
authorization and completing an “I-9” form. 

     

    Employment at Will. This letter should not be construed as a
promise or guarantee of employment for any defined period of time. Your
employment relationship with the Company is “at will,” which affords either
party the right to terminate the relationship at any time for any reason or for
no reason at all not otherwise prohibited by law. 

     

    

    
    

    Edward J.
Kelly
February 4, 2008
Page 6 of 9
 

     

    Severability. In the event that any provision of this
letter shall be determined to be invalid or unenforceable, in whole or in part
and other than any requirements for a separation agreement and/or general
release, the remaining provisions of this letter shall be unaffected thereby and
shall remain in full force and effect to the fullest extent permitted by law.

     

    This letter and the
enclosed Principles of Employment describe the Company’s offer of employment.
Any discussions that you may have had with us are not part of this offer unless
they are described in this letter, the applicable Employee Handbook, the Citi
Code of Conduct, or the Principles of Employment. 

     

    We are confident that
Citi can offer you a rewarding and challenging career opportunity. Please
confirm that you have accepted the terms of this offer by signing this letter
and the enclosed Principles of Employment. Please return a signed copy of this
letter and the Principles of Employment to me as soon as possible. I look
forward to working with you. 

     

    Sincerely,

     

    /s/ John Havens

     

    John Havens

Chief Executive
Officer
Citi’s Alternative Investments 

     

    
      	ACCEPTED AND AGREED:	 	  
	  
	/s/ Edward J.
      Kelly	 	
            	February 4,
    2008	 
	Edward J. Kelly	 	
            	Date 	 

    

    Enclosure: Principles
of Employment 

     

    

    
    

    Edward J.
Kelly
February 4, 2008
Page 7 of 9 
 

     

    Office Memo

     

    
      	TO:	              
      	All New Hires and Transfers
	 
	FROM:	
            	Human Resources
	 
	SUBJECT:	
            	PRINCIPLES OF
  EMPLOYMENT

    

    As you consider our
offer of employment or continued employment with Citigroup Inc., its
subsidiaries, and its and their affiliates (collectively “Citi”), there are
certain matters that we want to clarify. First, you must observe the policies
that we publish from time to time for employees. These include a requirement
that you maintain the highest standards of conduct and act within the highest
ethical principles. You must not do anything that may be a conflict of interest
with your responsibilities as an employee. These expectations are included in
your business sector’s Employee Handbook, the Citi Code of Conduct, and any
other policies that apply to your business sector or to Citi employees
generally. These documents are available for your review prior to your
acceptance or transfer of employment if you choose to review them. You will be
asked to acknowledge receiving a copy of the Citi Code of Conduct (if you are a
new hire) and the Employee Handbook for your business sector on or before your
start date or transfer date. Remember–it is your responsibility to read and
understand these policies and expectations. If you have any questions, now or in
the future, please ask your Human Resources Generalist.

     

    Second, you must
never use (except when necessary in your employment with us), nor disclose to
any unauthorized person within Citi or anyone not affiliated with Citi, any
confidential or unpublished information you obtain as a result of your
employment with us. This applies both while you are employed with us and after
that employment ends. If you leave our employ, you may not retain or take with
you any writing or other record that relates to the above. 

     

    Third, your
employment with us requires your full attention. You waive any rights to and
further agree to assign, and hereby do assign, any work of authorship,
invention, discovery, development or improvement made or conceived by you,
either alone or jointly with others, during the time you are employed by us
which pertains to our business; arises out of your employment; is aided by the
use of time, materials, property or facilities of Citi; or is at Citi’s request
and expense. In addition, in the event that you currently own rights in any
inventions or technologies (such as financial models, trading strategies or
software programs), you are required to notify your manager of the existence and
nature of such things prior to your employment with us. Unless you obtain a
signed written agreement from an authorized representative of Citi providing
otherwise prior to your employment with us, you agree to assign, and hereby do
assign, to us any interest that you have in such inventions or technologies.

     

    

    
    

    Edward
J. Kelly
February 4, 2008
Page 8 of
9 
 

     

    Additionally you
agree to assist Citi in connection with any effort to perfect such assignment;
any controversy or legal proceeding relating to such invention, improvement,
discovery or work of authorship; and in obtaining domestic and foreign
patient(s), copyright or other protection covering the same.

     

    Fourth, you agree to
follow our dispute resolution/arbitration procedure for resolving all disputes*
arising out of or relating to your employment with and separation from Citi.
This applies while you are employed by us as well as after your employment ends.
While we hope that disputes with our employees will never arise, we want them
resolved promptly if they do arise. These procedures do not preclude us from
taking disciplinary actions (including terminations) at any time, but if you
dispute those actions, we both agree that the disagreement will be resolved
through these procedures. Our procedures are divided into two parts. First, an
internal dispute resolution procedure which allows you to seek review of any
action taken regarding your employment or termination of your employment which
you think is unfair. Second, in the unusual situation when this procedure does
not fully resolve a dispute, and such dispute is based upon a legally protected
right (i.e., statutory, contractual, or common law), we both agree to submit the
dispute, within the time provided by applicable statute(s) of limitations, to
binding arbitration as follows: 

    	Before the arbitration facilities of the
  Financial Industry Regulatory Authority, Inc. (“FINRA”) if: (1) you are an
  employee of the Global Wealth Management or Markets & Banking sectors of
  Citi; or, (2) you are an employee of both Smith Barney, a division of
  Citigroup Global Markets Inc. (“Smith Barney”) (the “Secondary Employer”) and
  another Citi affiliate (the “Primary Employer”) (which together make you a
  “Dual Employee”) and your dispute involves Smith Barney or activities related
  to your securities license(s). In such Dual Employee instances, any other
  related disputes you may have against your Primary Employer must be heard
  before the FINRA as well. 
 
        
	Before the American Arbitration
  Association (“AAA”) where you do not meet the criteria above for FINRA
  arbitration, where the FINRA declines the use of its facilities, or where you
  are a Dual Employee and your dispute does not involve Smith Barney or
  activities related to your securities license(s). 

    Arbitrations shall be
conducted in accordance with the respective arbitration rules of the FINRA or
AAA, as applicable, then in effect and as supplemented by the applicable
Arbitration Policy then in effect for your business sector (“Arbitration
Policy”). Dual Employee disputes shall be governed by the Arbitration Policy of
the Primary Employer, except that notwithstanding the forum designated in such
Arbitration Policy, any disputes with Smith Barney or that relate to your
securities license(s) must be heard before the FINRA. A detailed description of
the applicable Arbitration Policy is available for review prior to your
acceptance or transfer of employment if you choose to review it, and is included
in the Employee Handbook for your business sector. Again, it is your
responsibility to read and understand the dispute resolution/arbitration
procedure. If you have any questions, now or in the future, please ask your
Human Resources Generalist.

     

    Fifth, nothing herein
constitutes a contract of employment for a definite period of time. The
employment relationship is “at-will” which affords either party the right to
terminate the 

     

    

    
    

    Edward
J. Kelly
February 4, 2008
Page 9 of
9 
 

     

    relationship at any
time for no reason or any reason not otherwise prohibited by applicable law.
Citi retains the right to decrease an employee’s compensation and/or benefits,
transfer or demote an employee, or otherwise change the terms and conditions of
any employee’s employment with Citi at any time with or without notice at its
sole discretion. 

     

    We believe these
matters are important to you as an employee and to us as an employer. Your
acceptance of our offer of employment with Citi or to transfer within Citi
constitutes your acceptance of the aforementioned provisions.

     

    Understood and
agreed.  

     

    
    

     

    
      	/s/ Edward J.
      Kelly	 	
            	February 4,
    2008	 
	Signature	 	
            	Date

    

     

    * These include, but
are not limited to, all claims, demands or actions alleging unlawful employment
discrimination or other conduct under Title VII of the Civil Rights Act of 1964,
the Civil Rights Act of 1866, the Civil Rights Act of 1991, the Age
Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the
Americans with Disabilities Act of 1990, the Family and Medical Leave Act of
1993, the Fair Labor Standards Act of 1938, the Equal Pay Act of 1963, the
Employee Retirement Income Security Act of 1974, the Worker Adjustment And
Retraining Notification Act of 1989, the Sarbanes-Oxley Act of 2002, and all
amendments to the aforementioned, and any other federal, state or local statute
or regulation or common law regarding employment, discrimination in employment,
the terms and conditions of employment, employment compensation, breach of
contract, defamation, the termination of employment, retaliation or
whistleblower claims, or any claims arising under any Citigroup Inc. Separation
Pay Plan.

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