Document:

citi_ex4-2.htm

    Exhibit
      4.2

     

    Capital
      Replacement Covenant,
      dated as of December 21, 2007 (this “Covenant”), by Citigroup
      Inc., a Delaware corporation (the “Corporation”), in favor of,
      and for the benefit of, each Covered Debtholder (as defined below).

     

    Recitals

     

    A.           On
      the date hereof, the Corporation is issuing $3,500,500,000
      aggregate principal amount of its 8.300% Fixed Rate/Floating Rate Junior
      Subordinated Deferrable Interest Debentures (the “Notes”)
      to Citigroup Capital
      XXI, a Delaware statutory trust (the “Trust”).

     

    B.           On
      the date hereof, the Trust is issuing $3,500,000,000 aggregate liquidation
      amount of its 8.300% Fixed Rate/Floating Rate Enhanced Trust Preferred
      Securities (the “Enhanced
      TRUPS”®1
      and, together with the Notes, the “Securities”).

     

    C.           This
      Covenant is the “Capital Replacement Covenant” referred to
      in the Prospectus, dated December 17, 2007, relating to the Enhanced TRUPS (the “Prospectus”).

     

    D.           The
      Corporation is entering into this Covenant and disclosing the content of this
      Covenant in the manner provided below with the intent that the covenants
      provided for in this Covenant be enforceable by each Covered Debtholder and
      that
      the Corporation be estopped from disregarding the covenants in this Covenant,
      in
      each case to the fullest extent permitted by applicable law.

     

    E.           The
      Corporation acknowledges that reliance by each Covered Debtholder upon the
      covenants in this Covenant is reasonable and foreseeable by the Corporation
      and
      that, were the Corporation to disregard its covenants in this Covenant, each
      Covered Debtholder would have sustained an injury as a result of its reliance
      on
      such covenants.

     

    NOW,
THEREFORE,
      the Corporation
      hereby covenants and agrees as follows in favor of and for the benefit of each
      Covered Debtholder.

     

    SECTION
      1.        Definitions.  Capitalized
      terms used in this Covenant (including the Recitals) have the meanings set
      forth
      in Schedule I hereto.

     

    SECTION
      2.        Limitation on Repayment,
      Redemption
      and Purchase of Securities.  The Corporation hereby promises
      and covenants to, and for the benefit of, each Covered Debtholder that the
      Corporation shall not, and shall cause its Subsidiaries, including the Trust,
      not to, repay, redeem or purchase all or any part of the Securities before
      the
      Termination Date except to the extent that (a) the total amount repaid or
      the applicable redemption or purchase price is equal to or less than the sum
      of
      the following amounts:

     

     
      
        

      

    

    
      
        	
                1

              	
                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
                  described in the prospectus dated December 17, 2007 with respect
                  to the
                  Enhanced TruPS.

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i) the
      Applicable Percentage of the aggregate amount of (a) net cash proceeds
      received by the Corporation or its Subsidiaries from the sale of Common Stock
      and rights to acquire Common Stock to Persons that are not Subsidiaries of
      the
      Corporation, (b) the Market Value of any Common Stock that the Corporation
      or its Subsidiaries have delivered as consideration for property or assets
      in an
      arm’s length transaction and (c) the Market Value of any Common Stock that
      the Corporation and its Subsidiaries have issued to Persons other than the
      Corporation and its Subsidiaries in connection with the conversion of any
      convertible or exchangeable securities, other than securities for which the
      Corporation or any of its Subsidiaries has received equity credit from any
      NRSRO, in each case since the most recent Measurement Date (without double
      counting proceeds received in any prior Measurement Period); plus

     

    (ii)
      the Applicable Percentage of the aggregate net cash proceeds received by the
      Corporation or its Subsidiaries since the most recent Measurement Date (without
      double counting proceeds received in any prior Measurement Period) from the
      sale
      of Mandatorily Convertible Preferred Stock, Debt Exchangeable for Common Equity,
      Debt Exchangeable for Preferred Equity and REIT Preferred Securities;
      plus

     

    (iii)
      the Applicable Percentage of the aggregate amount of net cash proceeds received
      by the Corporation and its Subsidiaries since the most recent Measurement Date
      (without double counting proceeds received in any prior Measurement Period)
      from
      the sale of Qualifying Capital Securities;

     

    in
      each case to Persons that are not Subsidiaries of the Corporation and (b) in
      the
      case of a redemption or purchase prior to the Scheduled Maturity Date, the
      Corporation has obtained the prior concurrence or approval of the Federal
      Reserve (which includes the Board of Governors of the Federal Reserve System
      and
      the Federal Reserve Bank of New York, or its successor as the Corporation’s
      primary federal banking regulator) if such concurrence or approval is then
      required under the Federal Reserve’s capital rules.  For the avoidance
      of doubt, persons covered by the Corporation’s dividend reinvestment plan and
      employee benefit plans shall be deemed not to be Subsidiaries of the Corporation
      for purposes of this Section 2; provided, however, that the
      provisions of this Section 2 shall not apply to (i) the purchase of the
      Securities or any portion thereof in connection with the distribution thereof,
      (ii) purchases of the Securities or any portion thereof by Affiliates of
      the Corporation in connection with market-making or other secondary-market
      activities or (iii) any distribution of the Notes to holders of the Enhanced
      TruPS upon a dissolution of the Trust.  For purposes of this Covenant,
      the term “repay” includes the defeasance by the Corporation of the Notes as well
      as the satisfaction and discharge of its obligations under the Indenture with
      respect to the Notes.

     

    SECTION
      3.        Covered Debt

     

    (a)           The
      Corporation represents and warrants that the Initial Covered Debt is Eligible
      Debt.

     

    (b)           On
      the Redesignation Date or during the 30-day period immediately preceding the
      Redesignation Date with respect to the then-effective Covered Debt,
      the

     

    
      
        
        

      

      
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    Corporation
      shall identify the series of Eligible Debt that will become the Covered Debt
      on
      and after such Redesignation Date in accordance with the following
      procedures:

     

    (A)          
       the Corporation shall identify each series of its then-outstanding
      long-term indebtedness for money borrowed that is Eligible Debt;

     

    (B)           
       if only one series of the Corporation’s then-outstanding long-term
      indebtedness for money borrowed is Eligible Debt, such series shall become
      the
      Covered Debt on the related Redesignation Date;

     

    (C)            
      if the Corporation has more than one outstanding series of long-term
      indebtedness for money borrowed that is Eligible Debt, then the Corporation
      shall identify the series that has the latest occurring final maturity date
      as
      of the date the Corporation is applying the procedures in this Section 3(b)
      and
      such series shall become the Covered Debt on the related Redesignation
      Date;

     

    (D)            
      the series of outstanding long-term indebtedness for money borrowed that is
      determined to be Covered Debt pursuant to clause (B) or (C) above shall be
      the
      Covered Debt for purposes of this Covenant for the period commencing on the
      related Redesignation Date and continuing to, but not including, the
      Redesignation Date as of which a new series of outstanding long-term
      indebtedness is next determined to be the Covered Debt pursuant to the
      procedures set forth in this Section 3(b); and

     

    (E)            
      in connection with such identification of a new series of Covered Debt, the
      Corporation shall give the notice provided for in Section 4 within the time
      frame provided for in such section.

     

    (c)
      The Corporation agrees that, if at any time the Covered Debt is held by a trust
      (for example, where the Covered Debt is part of an issuance of trust preferred
      securities), a holder of the securities issued by such trust may enforce this
      Covenant directly against the Corporation (including by instituting legal
      proceedings) as though such holder owned Covered Debt directly, and the holders
      of such trust securities shall be deemed to be Covered Debtholders for purposes
      of this Covenant for so long as the indebtedness held by such trust remains
      Covered Debt hereunder.

     

    SECTION
      4.        Notice.  In order
      to give effect to the intent of the Corporation described in Recital D, the
      Corporation covenants that:

     

    (a)           simultaneous
      with the execution of this Covenant or as soon as practicable after the date
      hereof, it shall (i) give notice to the Holders of the Initial Covered
      Debt, in the manner provided in the indenture relating to the Initial Covered
      Debt, of this Covenant and the rights granted to such Holders hereunder and
      (ii) file a copy of this Covenant with the Commission as an exhibit to a
      Current Report on Form 8-K under the Exchange Act;

     

    (b)           so
      long as the Corporation is a reporting company under the Exchange Act, the
      Corporation will include in each annual report filed with the Commission on
      Form
      10-K under the Exchange Act a description of the covenant set forth in
      Section 2 and identify the

     

    
      
        
        

      

      
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    series
      of long-term indebtedness for borrowed money that is Covered Debt as of the
      date
      such Form 10-K is filed with the Commission;

     

    (c)           within
      30 days after a series of the Corporation’s long-term indebtedness for money
      borrowed (1) becomes Covered Debt or (2) ceases to be Covered Debt, the
      Corporation will give notice of such occurrence to the holders of such long-term
      indebtedness for money borrowed in the manner provided for in the indenture,
      fiscal agency agreement or other contract or instrument under which such
      long-term indebtedness for money borrowed was issued and, thereafter, publicly
      announce such occurrence (a) in a Current Report on Form 8-K under the
      Exchange Act which either describes this Covenant and incorporates this Covenant
      by reference to a previously filed exhibit to a Current Report on Form 8-K
      or
      includes a copy of this Covenant, and (b) in the Corporation’s quarterly
      report on Form 10-Q or the Corporation’s annual report on Form 10-K,
      as applicable (or any successor to such forms), that immediately follows the
      public announcement;

     

     

    (d)           if,
      and only if, the Corporation ceases to be a reporting company under the Exchange
      Act, the Corporation will (1) post on its website or any other similar
      electronic platform generally available to the public the information otherwise
      required to be included in Exchange Act filings pursuant to clauses (b) and
      (c)
      of this Section 4 and (2), to the extent permitted by Bloomberg or any other
      similar third-party vendor that makes available to the marketplace information
      with respect to securities that are Covered Debt by posting such information
      on
      an electronically accessible screen (each an “Investor Screen”), cause a
      notation to be included on each such Investor Screen identifying the relevant
      series of indebtedness of the Corporation that is Covered Debt from time to
      time
      as Covered Debt for purposes of this Covenant and cause a hyperlink to a
      conformed copy of this Covenant to be included on the Investor Screen for each
      series of Covered Debt (but only so long as such series is Covered Debt);
      and

     

    (e)           promptly
      upon request by any Holder of Covered Debt, the Corporation will provide such
      Holder with a conformed copy of the executed version of this
      Covenant.

     

    SECTION
      5.      Term.  (a)  The
      obligations of the Corporation pursuant to this Covenant shall remain in full
      force and effect until the earliest date (the “Termination Date”) to occur
      of (1) the date, if any, on which the Holders of a majority by principal amount
      of the then-effective Covered Debt consent or agree, as evidenced by a
      resolution of a meeting of the Holders or otherwise in writing, to the
      termination of this Covenant, (2) the date on which the Corporation has no
      outstanding Eligible Subordinated Debt or Eligible Senior Debt (in each case
      without giving effect to the rating requirement in clause (ii) of the definition
      of each such term), (3) December 21, 2067 or, if earlier, when all of the
      Securities have been paid, redeemed or purchased in full in compliance with
      this
      Capital Replacement Covenant, and (4) the occurrence of an event of default
      and acceleration under the indenture relating to the Notes.  From and
      after the Termination Date, the obligations of the Corporation pursuant to
      this
      Covenant shall be of no further force or effect.

     

    (b)           For
      purposes of Section 5(a)(1) and Section 6, the Holders whose consent or
      agreement is required to terminate the covenants in Section 2 or to amend or
      supplement the

     

    
      
        
        

      

      
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    obligations
      of the Corporation under this Covenant shall be the Holders of the
      then-effective Covered Debt as of a record date established by the Corporation
      that is not more than 45 days prior to the date on which the Corporation
      proposes that such termination, amendment or supplement becomes
      effective.

     

    SECTION
      6.      Amendments.  This
      Covenant may be amended or supplemented from time to time by a written
      instrument signed by the Corporation with the consent of the Holders of a
      majority by principal amount of the then-effective series of Covered
      Debt;  provided
that this Covenant
      may be amended or supplemented from time to time by a
      written instrument signed only by the Corporation (and without the consent
      of
      the Holders of the then-effective series of Covered Debt) if (i) such
      amendment or supplement eliminates Common Stock, Debt Exchangeable for Common
      Stock, rights to acquire Common Stock, and/or Mandatorily Convertible Preferred
      Stock as a Replacement Capital Security, if after the date of this Covenant,
      the
      Corporation has been advised in writing by a nationally recognized independent
      accounting firm or an accounting standard or interpretive guidance of an
      existing accounting standard issued by an organization or regulator that has
      responsibility for establishing or interpreting accounting standards in the
      United States becomes effective such that there is more than an insubstantial
      risk that failure to eliminate Common Stock, Debt Exchangeable for Common Stock,
      rights to acquire Common Stock and/or Mandatorily Convertible Preferred Stock
      as
      a Replacement Capital Security would result in a reduction in the Corporation’s
      earnings per share as calculated in accordance with generally accepted
      accounting principles in the United States; (ii) such amendment or
      supplement is not adverse to the Holders of the then-effective series of Covered
      Debt and an officer of the Corporation has delivered a written certificate
      to
      the Holders of the then-effective Covered Debt in the manner provided for in
      the
      indenture, fiscal agency agreement or other instrument with respect to such
      Covered Debt stating that, in his or her determination, such amendment or
      supplement would not adversely affect the Holders of the then-effective Covered
      Debt; or (iii) the effect of such amendment or supplement is solely to
      impose additional restrictions on, or eliminate certain of, the types of
      securities qualifying as Replacement Capital Securities (other than the
      securities covered by clause (i) above), and an officer of the Corporation
      has delivered a written certificate to the Holders of the then-effective Covered
      Debt in the manner provided for in the indenture, fiscal agency agreement or
      other instrument with respect to such Covered Debt stating that, in his or
      her
      determination, such amendment or supplement would not adversely affect the
      Holders of the then-effective Covered Debt.  For the avoidance of
      doubt, an amendment or supplement that adds new types of Qualifying Capital
      Securities or modifies the requirements of the Qualifying Capital Securities
      described herein would not be adverse to the rights of the Holders of the
      then-effective Covered Debt if, following such amendment or supplement, this
      Covenant would satisfy clause (ii) of the definition of Qualifying Capital
      Replacement Covenant.

     

    SECTION
      7.      Miscellaneous.  (a)  This
      Covenant shall be governed by
      and construed in accordance with the laws of the State of New
      York.

     

    (b)           This
      Covenant shall be binding upon the Corporation and its successors and assigns
      and shall inure to the benefit of the Covered Debtholders as they exist from
      time to time (it being understood and agreed by the Corporation that any Person
      who is a Covered Debtholder at the time such Person acquires or holds Covered
      Debt shall retain its status as a Covered

     

    
      
        
        

      

      
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    Debtholder
      for so long as the series of long-term indebtedness for borrowed money owned
      by
      such Person is Covered Debt and, if such Person initiates a claim or proceeding
      to enforce its rights under this Covenant after the Corporation has violated
      its
      covenants in Section 2 and before the series of long-term indebtedness for
      money borrowed held by such Person is no longer Covered Debt, such Person’s
      rights under this Covenant shall not terminate by reason of such series of
      long-term indebtedness for money borrowed no longer being Covered
      Debt).

     

    (c)           All
      demands, notices, requests and other communications to the Corporation under
      this Covenant shall be deemed to have been duly given and made if in writing
      and
      (i) if served by personal delivery upon the Corporation, on the day so delivered
      (or, if such day is not a Business Day, the next succeeding Business Day),
      (ii)
      if delivered by registered post or certified mail, return receipt requested,
      or
      sent by a national or international courier service, on the date of receipt
      (or,
      if such date of receipt is not a Business Day, the next succeeding Business
      Day), or (iii) if sent by telecopier, on the day telecopied, or if not a
      Business Day, the next succeeding Business Day; provided that the telecopy
      is
      promptly confirmed by telephone confirmation thereof, in each case to the
      Corporation at the address set forth below, or at such other address as the
      Corporation may thereafter notify to Covered Debtholders or post on the
      Corporation’s website as the address for notices under this
      Covenant:

     

    Citigroup
      Inc.

    399
      Park Avenue

    New
      York, New York 10043

    (212)
      599-1000

    Attention:  Assistant
      Treasurer

     

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the
      Corporation has caused this Covenant to be executed by its duly authorized
      officer, as of the day and year first above written.

     

    
      	 	
              CITIGROUP
                INC.

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	
              By:

            	 /s/
              Charles
              E.Wainhouse	 
	 	 	
              Name:

            	
              Charles
                E. Wainhouse

            	 
	 	 	
              Title:

            	
              Assistant
                Treasurer

            	 

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1

    
 

    DEFINITIONS

     

    “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” means, with respect to any Qualifying Capital Securities,
      provisions in the related transaction documents requiring the Corporation to
      issue (or use Commercially Reasonable Efforts to issue) one or more types of
      APM
      Qualifying Securities raising eligible proceeds at least equal to the deferred
      Distributions on such Qualifying Capital Securities and apply the proceeds
      to
      pay unpaid Distributions on such Qualifying Capital Securities, commencing
      on
      the earlier of (x) the first Distribution Date after commencement of a
      deferral period on which the Corporation pays current Distributions on such
      Qualifying Capital Securities and (y) the fifth anniversary of the
      commencement of such deferral period, and that:

     

    (a)    define
      “eligible proceeds” to mean, for purposes of such Alternative Payment Mechanism,
      the net proceeds (after underwriters’ or placement agents’ fees, commissions or
      discounts and other expenses relating to the issuance or sale of the relevant
      securities, where applicable, and including the fair market value of property
      received by the Corporation or any of its Subsidiaries as consideration for
      such
      APM Qualifying Securities) that the Corporation has received during the 180
      days
      prior to the related Distribution Date from the issuance of APM Qualifying
      Securities, up to the Preferred Cap in the case of APM Qualifying Securities
      that are Qualifying Preferred Stock or Mandatorily Convertible Preferred
      Stock;

     

    (b)    may
      permit the Corporation to pay current Distributions on any Distribution Date
      out
      of any source of funds but (x) require the Corporation to pay deferred
      Distributions only out of eligible proceeds and (y) prohibit the
      Corporation from paying deferred Distributions out of any source of funds other
      than eligible proceeds;

     

    (c)    if
      deferral of Distributions continues for more than one year, require the
      Corporation not to, and cause its Subsidiaries not to, redeem or purchase any
      of
      the Corporation’s securities ranking junior to or pari passu with any APM
      Qualifying Securities the proceeds of which were used to settle deferred
      interest during the relevant deferral period until at least one year after
      all
      deferred Distributions have been paid (a “Repurchase
      Restriction”);

     

    (d)    notwithstanding
      clause (b) of this definition, if the Federal Reserve disapproves the
      Corporation’s sale of APM Qualifying Securities or the use of the proceeds
      thereof to pay deferred Distributions, may (if the Corporation elects to so
      provide in the terms of such Qualifying Capital Securities) permit the
      Corporation to pay deferred Distributions from any source or, if the Federal
      Reserve does not disapprove the Corporation’s issuance and sale of APM
      Qualifying Securities but disapproves the use of the proceeds thereof to pay
      deferred Distributions, may (if the Corporation elects to so provide in the
      terms of such Qualifying Capital Securities) permit the Corporation to use
      such
      proceeds for other purposes and to

     

    
      
        
        

      

      
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    continue
      to defer Distributions, without a breach of its obligations under the
      transaction documents related to the Qualifying Capital Securities;

     

    (e)    may
      include a provision that, notwithstanding the APM Maximum Obligation and the
      Preferred Cap for purposes of paying deferred interest, limits the ability
      of
      the Corporation to sell shares of Common Stock, Qualifying Warrants, or
      Mandatorily Convertible Preferred Stock above an aggregate cap specified in
      the
      transaction documents (a “Share Cap”), subject to the
      Corporation’s agreement to use commercially reasonable efforts to increase the
      Share Cap (i) only to the extent that it can do so and simultaneously
      satisfy its future fixed or contingent obligations under other securities and
      derivative instruments that provide for settlement or payment in shares of
      Common Stock or (ii) if the Corporation cannot increase the Share Cap as
      contemplated in the preceding clause, by requesting its Board of Directors
      to
      adopt a resolution for shareholder vote at the next annual shareholders meeting
      occurring at least 4 months after the date on which the Share Cap has been
      reached to increase the number of shares of its authorized Common Stock for
      purposes of satisfying its obligations to pay deferred
      Distributions;

     

    (f)    limit
      the obligation of the Corporation to issue (or use Commercially Reasonable
      Efforts to issue) APM Qualifying Securities that are Common Stock and Qualifying
      Warrants to settle deferred Distributions pursuant to the Alternative Payment
      Mechanism either (A) during the first five years of any deferral period or
      (B) before an anniversary of the commencement of any deferral period that
      is not earlier than the fifth such anniversary and not later than the ninth
      such
      anniversary (as designated in the terms of such Qualifying Capital Securities)
      with respect to deferred Distributions attributable to the first five years
      of
      such deferral period, either:

     

     

    (i)    to
      an aggregate amount of such securities, the net proceeds from the issuance
      of
      which is equal to 2% of the product of the average of the Market Value of the
      Common Stock on the ten consecutive trading days ending on the fourth trading
      day immediately preceding the date of issuance multiplied by the total number
      of
      issued and outstanding shares of Common Stock as of the date of the
      Corporation’s most recent publicly available consolidated financial statements;
      or

     

    (ii)    to
      a number of shares of Common Stock and Qualifying Warrants, in the aggregate,
      not in excess of 2% of the outstanding number of shares of Common Stock as
      of
      the date of the Corporation’s most recent publicly available consolidated
      financial statements (the “APM
      Maximum Obligation”);

     

    (g)    limit
      the right of the Corporation to issue APM Qualifying Securities that are
      Qualifying Preferred Stock and Mandatorily Convertible Preferred Stock to settle
      deferred Distributions pursuant to the Alternative Payment Mechanism to an
      aggregate amount of Qualifying Preferred Stock and still-outstanding Mandatorily
      Convertible Preferred Stock issued pursuant to the Alternative Payment
      Mechanism, the net proceeds from the issuance of which with respect to all
      deferral periods is equal to 25% of the liquidation or outstanding principal
      amount of the securities that are the subject of the related Alternative Payment
      Mechanism (the “Preferred
      Cap”);

     

    
      
        
        

      

      
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    (h)    in
      the case of Qualifying Capital Securities other than non-cumulative perpetual
      preferred stock, include a Bankruptcy Claim Limitation Provision;
      and

     

    (i)    may
      permit the Corporation, at its option, to provide that if it is involved in
      a
      merger, consolidation, amalgamation, binding share exchange or conveyance,
      transfer or lease of assets substantially as an entirety to any other person
      or
      a similar transaction (a “Business Combination”) where
      immediately after the consummation of the Business Combination more than 50%
      of
      the surviving or resulting entity’s voting stock is owned by the shareholders of
      the other party to the Business Combination, then clauses (a) through
      (c) of this definition will not apply to any deferral period that is
      terminated on the next Distribution Date following the date of consummation
      of
      the Business Combination (or if later, at any time within 90 days following
      the
      date of consummation of the Business Combination);

     

     

    provided
      that:

     

    (a)    the
      Corporation shall not be obligated to issue (or use Commercially Reasonable
      Efforts to issue) APM Qualifying Securities for so long as a Market Disruption
      Event has occurred and is continuing;

     

     

    (b)    if,
      due to a Market Disruption Event or otherwise, the Corporation is able to raise
      and apply some, but not all, of the eligible proceeds necessary to pay all
      deferred Distributions on any Distribution Date, the Corporation will apply
      any
      available eligible proceeds to pay accrued and unpaid Distributions on the
      applicable Distribution Date in chronological order subject to the APM Maximum
      Obligation, Share Cap and Preferred Cap, as applicable; and

     

     

    (c)    if
      the Corporation has outstanding more than one class or series of securities
      under which it is obligated to sell a type of APM Qualifying Securities and
      apply some part of the proceeds to the payment of deferred Distributions, then
      on any date and for any period the amount of net proceeds received by the
      Corporation from those sales and available for payment of deferred Distributions
      on such securities shall be applied to such securities on a pro rata basis up to the
      APM
      Maximum Obligation, Share Cap and Preferred Cap, as applicable, in proportion
      to
      the total amounts that are due on such securities, or on such other basis as
      the
      Federal Reserve may approve or require.

     

    “APM
      Maximum Obligation” has
      the meaning specified in clause (f) of the definition of Alternative
      Payment Mechanism.

     

    “APM
      Qualifying Securities”
means, with respect to an Alternative Payment Mechanism, any Debt Exchangeable
      for Preferred Equity or any Mandatory Trigger Provision, one or more of the
      following (as designated in the transaction documents for any Qualifying Capital
      Securities that include an Alternative Payment Mechanism or a Mandatory Trigger
      Provision or for any Debt Exchangeable for Preferred Equity, as
      applicable):

     

     

    (a)    Common
      Stock;

     

     

    (b)    Qualifying
      Warrants;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (c)    Mandatorily
      Convertible Preferred Stock; or

     

     

    (d)    Qualifying
      Preferred Stock;

     

     

    provided
      that (i) if the
      APM Qualifying Securities for any Alternative Payment Mechanism or Mandatory
      Trigger Provision or for any Debt Exchangeable for Preferred Equity include
      both
      Common Stock and Qualifying Warrants, such Alternative Payment Mechanism,
      Mandatory Trigger Provision or Debt Exchangeable for Preferred Equity may
      permit, but need not require, the Corporation to issue Qualifying Warrants
      and
      (ii) such Alternative Payment Mechanism, Mandatory Trigger Provision or
      Debt Exchangeable for Preferred Equity may permit, but need not require, the
      Corporation to issue Mandatorily Convertible Preferred Stock.

     

    “Applicable
      Percentage”
means:

     

     

    (i),
      with respect to any sale of Common Stock or rights to acquire Common Stock
      (a)
      133% with respect to any repayment, redemption or purchase prior to December
      21,
      2027, (b) 200% with respect to any repayment, redemption or purchase on or
      after
      December 21, 2027 and prior to December 21, 2047, and (c) 400% on or after
      December 21, 2047;

     

    (ii)
      with respect to Debt Exchangeable for Common Equity, Debt Exchangeable for
      Preferred Equity, Mandatorily Convertible Preferred Stock, REIT Preferred
      Securities and Qualifying Capital Securities described under clause (i) of
      the
      definition of that term, 100% prior to December 21, 2027, 150% on or
      after December 21, 2027 and prior to December 21, 2047 and 300% on or after
      December 21, 2047;

     

    (iii)
      with respect to Qualifying Capital Securities described under clause (ii) of
      the
      definition of that term, 100% prior to December 21, 2047, and 200% on or after
      December 21, 2047; and

     

     

    (iv)
      with respect to Qualifying Capital Securities described under clause (iii)
      of
      the definition of that term, 100%.

     

    “Appropriate
      Federal Banking
      Agency” means, as to a Depository Institution Subsidiary, the Federal
      bank regulatory agency or authority that is the “appropriate Federal banking
      agency” (within the meaning of 12 U.S.C. § 1813(q)) with respect to such
      Depository Institution Subsidiary.

     

    “Bankruptcy
      Claim Limitation
      Provision” means, with respect to any Qualifying Capital Securities that
      have an Alternative Payment Mechanism or a Mandatory Trigger Provision,
      provisions that, upon any liquidation, dissolution, winding up or
      reorganization or in connection with any insolvency, receivership or proceeding
      under any bankruptcy law with respect to the issuer, limit the claim of the
      holders of such securities to Distributions that accumulate during (A) any
      deferral period, in the case of securities that have an Alternative Payment
      Mechanism or (B) any period in which the issuer fails to satisfy one or
      more financial tests set forth in the terms of such securities or related
      transaction agreements, in the case of securities that have a Mandatory Trigger
      Provision, to:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (i)    in
      the case of Qualifying Capital Securities that have an Alternative Payment
      Mechanism or Mandatory Trigger Provision with respect to which the APM
      Qualifying Securities do not include Qualifying Preferred Stock or Mandatorily
      Convertible Preferred Stock, 25% of the stated or principal amount of such
      Qualifying Capital Securities then outstanding; and

     

    (ii)    in
      the case of any other Qualifying Capital Securities, an amount not in excess
      of
      the sum of (x) two years of accumulated and unpaid Distributions and
      (y) an amount equal to the excess, if any, of the Preferred Cap over the
      aggregate amount of net proceeds from the sale of Qualifying Preferred Stock
      and
      Mandatorily Convertible Preferred Stock that is still outstanding that the
      issuer has applied to pay such Distributions pursuant to the Alternative Payment
      Mechanism or the Mandatory Trigger Provision; provided that the holders
      of
      such Qualifying Capital Securities agree in the instrument governing such
      Qualifying Capital Securities that, to the extent the remaining claim exceeds
      the amount set forth in clause (x), the amount they receive in respect of such
      excess shall not exceed the amount they would have received if the claim for
      such excess ranked pari passu
with the interests
      of the holders, if any, of Qualifying Preferred
      Stock.

     

    In
      the case of any cumulative preferred stock that includes a Bankruptcy Claim
      Limitation Provision, such provision shall limit the liquidation preference
      of
      such cumulative preferred stock to (a) its stated amount plus (b) an amount
      in
      respect of accumulated and unpaid dividends not in excess of the amount set
      forth in clause (i) or (ii) above, as applicable.

     

    “Business
      Day” means any day
      that is not a Saturday or Sunday and that is not day on which banking
      institutions generally in the City of New York are authorized or obligated
      by
      law or executive order to be closed.

     

    “Commercially
      Reasonable
      Efforts” means, for purposes of selling APM Qualifying Securities,
      commercially reasonable efforts to complete the offer and sale of APM Qualifying
      Securities to third parties that are not Subsidiaries of the Corporation in
      public offerings or private placements. The Corporation shall not be considered
      to have made Commercially Reasonable Efforts to effect a sale of APM Qualifying
      Securities if it determines not to pursue or complete such sale solely due
      to
      pricing, coupon, dividend rate or dilution considerations.

     

     

    “Commission”
means
      the United
      States Securities and Exchange Commission.

     

     

    “Common
      Stock” means common
      stock of the Corporation (including treasury shares of common stock and shares
      of common stock sold pursuant to the Corporation’s dividend reinvestment plan
      and employee benefit plans).

     

     

    “Corporation”
means
      the Person
      named as the “Corporation” in the first paragraph of this Covenant, until a
      successor corporation shall have become such, and thereafter “Corporation” shall
      mean such successor corporation.

     

     

    “Covenant”
has
      the meaning
      specified in the introduction to this instrument.

     

    “Covered
      Debt” means (i) at
      the date of this Covenant and continuing to, but not including, the first
      Redesignation Date, the Initial Covered Debt and (ii) thereafter,
      commencing with each Redesignation Date and continuing to but not including
      the
      next succeeding

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Redesignation
      Date, the Eligible Debt identified pursuant to Section 3(b) as the Covered
      Debt for such period.

     

    “Covered
      Debtholder” means
      each Person (whether a Holder or a beneficial owner holding through a
      participant in a clearing agency) that buys or holds long-term indebtedness
      for
      money borrowed of the Corporation during the period that such long-term
      indebtedness for money borrowed is Covered Debt.

     

    “Debt
      Exchangeable for Common
      Equity” means a security or combination of securities (together in this
      definition, “such
      securities”) that:

     

     

    (i)    gives
      the holder a beneficial interest in (a)  a stock purchase contract that
      obligates the holder to purchase Common Stock, that will be settled in three
      years or less, with the number of shares of Common Stock purchasable pursuant
      to
      such stock purchase contract to be within a range established at the time of
      issuance of the subordinated debt securities referred to in clause (b), subject
      to customary anti-dilution adjustments and (b) subordinated debt securities
      of the Corporation or one of its Subsidiaries that are non-callable prior to
      the
      settlement date of the stock purchase contract;

     

    (ii)    provides
      that the holders directly or indirectly grant the Corporation a security
      interest in such subordinated debt securities and their proceeds (including
      any
      substitute collateral permitted under the transaction documents) to secure
      the
      holders’ direct or indirect obligation to purchase Common Stock pursuant to such
      stock purchase contracts;

     

    (iii)    includes
      a remarketing feature pursuant to which the subordinated debt securities are
      remarketed to new investors commencing not later than the last distribution
      date
      that is at least one month prior to the settlement date of the stock purchase
      contract; and

     

    (iv)    provides
      for the proceeds raised in the remarketing to be used to purchase Common Stock
      under the stock purchase contracts and, if there has not been a successful
      remarketing of the subordinated debt securities by the settlement date of the
      stock purchase contract, provides that the stock purchase contracts will be
      settled by the Corporation exercising its remedies as a secured party with
      respect to the subordinated debt securities or other collateral directly or
      indirectly pledged by holders.

     

    “Debt
      Exchangeable for Preferred
      Equity” means a security or combination of securities (together in this
      definition, “such
      securities”) that:

     

    (i)    gives
      the holder a beneficial interest in (a) subordinated debt securities of the
      Corporation or one of its Subsidiaries (in this definition, the “issuer”)
      permitting the issuer to defer Distributions in whole or in part on such
      securities for one or more Distribution Periods of up to at least seven years
      without any remedies other than Permitted Remedies and that are the most junior
      subordinated debt of the issuer (or rank pari passu with the most
      junior subordinated debt of the issuer) and (b) a stock purchase contract
      that obligates the holder to acquire a beneficial interest in Qualifying
      Preferred Stock;

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (ii)    provides
      that the holders directly or indirectly grant to the issuer a security interest
      in such subordinated debt securities and their proceeds (including any
      substitute collateral permitted under the transaction documents) to secure
      the
      holders’ direct or indirect obligation to purchase Qualifying Preferred Stock
      pursuant to such stock purchase contract;

     

    (iii)    includes
      a remarketing feature pursuant to which the subordinated debt of the issuer
      is
      remarketed to new investors commencing not later than the first Distribution
      Date that is at least five years after the date of issuance of such securities
      or earlier in the event of an early settlement event based on (a) the
      capital ratios of the Corporation, (b) the capital ratios of the
      Corporation as anticipated by the Federal Reserve, or (c) the dissolution
      of the issuer of such Debt Exchangeable for Preferred Equity;

     

    (iv)    provides
      for the proceeds raised in the remarketing to be used to purchase Qualifying
      Preferred Stock under the stock purchase contracts and, if there has not been
      a
      successful remarketing by the first Distribution Date that is six years after
      the date of issuance of such securities, provides that the stock purchase
      contracts will be settled by the Corporation exercising its rights as a secured
      creditor with respect to the subordinated debt securities or other collateral
      directly or indirectly pledged by holders;

     

    (v)    includes
      a Qualifying Capital Replacement Covenant that will apply to such securities
      and
      to any Qualifying Preferred Stock issued pursuant to the stock purchase
      contracts; provided
      that such Qualifying Capital Replacement Covenant will not include Debt
      Exchangeable for Common Equity or Debt Exchangeable for Preferred Equity as
      “Replacement Capital Securities”; and

     

    (vi)    after
      the issuance of such Qualifying Preferred Stock, provides the holder with a
      beneficial interest in such Qualifying Preferred Stock.

     

    “Depository
      Institution
      Subsidiary” means any Subsidiary of the Corporation that is a depository
      institution within the meaning of 12 C.F.R. § 204.2(m).

     

    “Distribution
      Date” means, as
      to any Qualifying Capital Securities or Debt Exchangeable for Preferred Equity,
      the dates on which Distributions on such securities are scheduled to be
      made.

     

    “Distribution
      Period” means,
      as to any Qualifying Capital Securities, each period from and including a
      Distribution Date for such securities to but not including the next succeeding
      Distribution Date for such securities.

     

    “Distributions”
means,
      as to
      any Qualifying Capital Securities or Debt Exchangeable for Preferred Equity,
      dividends, interest or other income distributions to the holders thereof that
      are not the Corporation or Subsidiaries of the Corporation.

     

    “Eligible
      Debt” means, at any
      time, Eligible Subordinated Debt or, if no Eligible Subordinated Debt is then
      outstanding, Eligible Senior Debt.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    “Eligible
      Senior Debt” means,
      at any time in respect of any issuer, each series of outstanding unsecured
      long-term indebtedness for money borrowed of such issuer that:

     

    (i)           upon
      a bankruptcy, liquidation, dissolution or winding up of the issuer, ranks most
      senior among the issuer’s then outstanding classes of unsecured indebtedness for
      money borrowed;

     

    (ii)           is
      then assigned a rating by at least one NRSRO (provided that this clause
      shall apply on a Redesignation Date only if on such date the issuer has
      outstanding senior long-term indebtedness for money borrowed that satisfies
      the
      requirements of clauses (i), (iii) and (iv) that is then assigned a rating
      by at
      least one NRSRO);

     

    (iii)           has
      an outstanding principal amount of not less than $100,000,000; and

     

    (iv)           was
      issued through or with the assistance of a commercial or investment banking
      firm
      or firms acting as underwriters, initial purchasers or placement or distribution
      agents.

     

    For
      purposes of this definition as applied to securities with a CUSIP number, each
      issuance of long-term indebtedness for money borrowed that has (or, if such
      indebtedness is held by a trust or other intermediate entity established
      directly or indirectly by the issuer, the securities of such intermediate entity
      that have) a separate CUSIP number shall be deemed to be a series of the
      issuer’s long-term indebtedness for money borrowed that is separate from each
      other series of such indebtedness.

     

    “Eligible
      Subordinated Debt”
means, at any time in respect of any issuer, each series of the issuer’s
      then-outstanding unsecured long-term indebtedness for money borrowed
      that:

     

    (i)           upon
      a bankruptcy, liquidation, dissolution or winding up of the issuer, ranks
      subordinate to the issuer’s then-outstanding most senior series of unsecured
      indebtedness for money borrowed and ranks senior to the Notes;

     

    (ii)           is
      then assigned a rating by at least one NRSRO (provided that this clause
      (ii) shall apply on a Redesignation Date only if on such date the issuer has
      outstanding subordinated long-term indebtedness for money borrowed that
      satisfies the requirements in clauses (i), (iii) and (iv) that is then assigned
      a rating by at least one NRSRO);

     

    (iii)           has
      an outstanding principal amount of not less than $100,000,000; and

     

    (iv)           was
      issued through or with the assistance of a commercial or investment banking
      firm
      or firms acting as underwriters, initial purchasers or placement or distribution
      agents.

     

    For
      purposes of this definition as applied to securities with a CUSIP number, each
      issuance of long-term indebtedness for money borrowed that has (or, if such
      indebtedness is held by a trust or other intermediate entity established
      directly or indirectly by the issuer, the securities of such intermediate entity
      that have) a separate CUSIP number shall be deemed to be a series of
      the

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    issuer’s
      long-term indebtedness for money borrowed that is separate from each other
      series of such indebtedness.

     

    “Exchange
      Act” means the
      Securities Exchange Act of 1934 or any statute successor thereto, in each case
      as amended from time to time.

     

    “Federal
      Reserve” means the
      Board of Governors of the Federal Reserve System and any regional Federal
      Reserve Bank in which the Corporation owns stock, or their successor as the
      Corporation’s primary federal banking regulator, or the staff thereof.

     

    “Holder”
means,
      as to the
      Covered Debt then in effect, each holder of such Covered Debt as reflected
      on
      the securities register maintained by or on behalf of the Corporation with
      respect to such Covered Debt and each beneficial owner holder through a
      participant in a clearing agency.

     

    “Indenture”
means
      the
      indenture dated June 28, 2007 between the Corporation and The Bank of New York
      with respect to the Notes.

     

    “Initial
      Covered Debt” means
      the Corporation’s junior subordinated debt securities underlying the 6.00%
      Capital Securities (TruPS®)
      issued by
      Citigroup Capital XI (CUSIP: 17307Q205).

     

    “Intent-Based
      Replacement
      Disclosure” means, as to any Qualifying Preferred Stock or Qualifying
      Capital Securities, that the issuer has publicly stated its intention, either
      in
      the prospectus or other offering document under which such securities were
      initially offered for sale or in filings with the Commission made by the issuer
      under the Exchange Act prior to or contemporaneously with the issuance of such
      securities, that to the extent that the Qualifying Preferred Stock or Qualifying
      Capital Securities provide the issuer with rating agency equity credit, at
      the
      time of repayment at maturity or earlier redemption or defeasance, the issuer
      will repay, redeem or purchase, and will cause that its subsidiaries shall
      purchase, such securities only with the proceeds of securities that have
      equity-like characteristics at the time of repayment, redemption or purchase
      that are the same as or more equity-like than the securities then being redeemed
      or purchased, raised within 180 days prior to the applicable repayment,
      redemption or purchase date.  Notwithstanding the use of the term
“Intent-Based Replacement Disclosure” in the definitions of “Qualifying Capital
      Securities” and “Qualifying Preferred Stock,” the requirement in each such
      definition that a particular security or the related transaction documents
      include Intent-Based Replacement Disclosure shall be disregarded and given
      no
      force or effect for so long as the Corporation is a financial holding company
      or
      a bank holding company within the meaning of the Bank Holding Company Act of
      1956, as amended.

     

    “Mandatorily
      Convertible Preferred
      Stock” means cumulative preferred stock with (a) no prepayment
      obligation on the part of the issuer thereof, whether at the election of the
      holders or otherwise and (b) a requirement that the preferred stock convert
      into Common Stock of the Corporation within three years from the date of its
      issuance at a conversion ratio within a range established at the time of
      issuance of the preferred stock, subject to customary anti-dilution
      adjustments.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    “Mandatory
      Trigger Provision”
means, as to any Qualifying Capital Securities, provisions in the terms
      thereof
      or of the related transaction agreements that:

     

    (a)    require
      the issuer of such securities to make payment of Distributions on such
      securities only pursuant to the issue and sale of APM Qualifying Securities
      within two years of a failure of the issuer to satisfy one or more financial
      tests set forth in the terms of such securities or related transaction
      agreements, in an amount such that the net proceeds of such sale are at least
      equal to the amount of unpaid Distributions on such securities (including
      without limitation all deferred and accumulated amounts) and require the
      application of the net proceeds of such sale to pay such unpaid Distributions,
      provided that
      (i) if the Mandatory Trigger Provision does not require the issuance and
      sale within one year of such failure, the amount of Common Stock and/or
      Qualifying Warrants the net proceeds of which the issuer must apply to pay
      such
      Distributions pursuant to such provision may not exceed the APM Maximum
      Obligation and (ii) the amount of Qualifying Preferred Stock and still
      outstanding Mandatorily Convertible Preferred Stock the net proceeds of which
      the issuer may apply to pay such Distributions pursuant to such provision may
      not exceed the Preferred Cap;

     

    (b)    if
      the provisions described in clause (a) do not require such issuance and
      sale within one year of such failure, include a Repurchase
      Restriction;

     

    (c)     prohibit
      the issuer of such securities from redeeming or purchasing any of its securities
      ranking upon the liquidation, dissolution or winding up of the Corporation
      junior to or pari passu
      with any APM Qualifying Securities the proceeds of which were used to settle
      deferred interest during the relevant deferral period prior to the date six
      months after the issuer applies the net proceeds of the sales described in
      clause (a) above to pay such deferred Distributions in full;

     

    (d)    include
      a Bankruptcy Claim Limitation Provision; and

     

    (e)    may
      permit the issuer, at its option, to provide that if it is involved in a
      Business Combination where immediately after the consummation of the Business
      Combination more than 50% of the surviving or resulting entity’s voting stock is
      owned by the shareholders of the other party to the Business Combination, then
      clauses (a) , (b) and (c) of this definition will not apply to any
      deferral period that is terminated on the next Distribution 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);

     

     

    provided
      that:

     

    (i)    the
      issuer will not be obligated to issue (or use Commercially Reasonable Efforts
      to
      issue) APM Qualifying Securities for so long as a Market Disruption Event has
      occurred and is continuing;

     

    (ii)    if,
      due to a Market Disruption Event or otherwise, the issuer is able to raise
      and
      apply some, but not all, of the eligible proceeds necessary to pay all deferred
      Distributions on any Distribution Date, the issuer will apply any available
      eligible proceeds to pay

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    accrued
      and unpaid Distributions on the applicable Distribution Date in chronological
      order subject to the APM Maximum Obligation and Preferred Cap, as applicable;
      and

     

    (iii)    if
      the issuer has outstanding more than one class or series of securities under
      which it is obligated to sell a type of APM Qualifying Securities and applies
      some part of the proceeds to the payment of deferred Distributions, then on
      any
      date and for any period the amount of net proceeds received by the issuer from
      those sales and available for payment of deferred Distributions on such
      securities shall be applied to such securities on a pro rata basis up to the
      APM
      Maximum Obligation and the Preferred Cap, as applicable, in proportion to the
      total amounts that are due on such securities.

     

    No
      remedy other than Permitted Remedies will arise by the terms of such securities
      or related transaction agreements in favor of the holders of such Qualifying
      Capital Securities as a result of the issuer’s failure to pay Distributions
      because of the Mandatory Trigger Provision until Distributions have been
      deferred for one or more Distribution Periods that total together at least
      ten
      years.

     

    “Market
      Disruption Event” shall have
      the meaning
      given to it in the indenture relating to the relevant securities.

     

    “Market
      Value” with respect
      to Common Stock means, on any date, the closing sale price per share of Common
      Stock (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
      and
      the average ask prices) on that date as reported in composite transactions
      by
      the New York Stock Exchange or, if the Common Stock is not then listed on the
      New York Stock Exchange, as reported by the principal U.S. securities exchange
      on which the Common Stock is traded or quoted; if the Common Stock is not either
      listed or quoted on any U.S. securities exchange on the relevant date, the
      market price will be the average of the mid-point of the bid and ask prices
      for
      the Common Stock on the relevant date submitted by at least three nationally
      recognized independent investment banking firms selected by the Corporation
      for
      this purpose.

     

    “Measurement
      Date” means, (i)
      with respect to any repayment, redemption or purchase of Notes or Enhanced
      TRUPS on or prior to the
      Scheduled Maturity Date, the date that is six months prior to delivery of notice
      of such repayment or redemption or the date of such purchase and (ii) with
      respect to any repayment, redemption or purchase of Notes or Enhanced TRUPS after the Scheduled
      Maturity
      Date, the date that is 30 days prior to delivery of notice of such repayment,
      redemption or the date of such purchase, except that, if during the 150-day
      (or
      any shorter) period preceding the date that is 30 days prior to delivery of
      notice of such repayment or redemption or the date of such purchase, the
      Corporation and its Subsidiaries issued Replacement Capital Securities to
      Persons other than the Corporation and its Subsidiaries but no repayment,
      redemption or purchase was made pursuant to Section 2(a) of this Covenant in
      connection therewith, the date upon which such 150-day (or any shorter) period
      prior to delivery of notice of such repayment or redemption or the date of
      such
      purchase began.

     

    “Measurement
      Period” means
      the period from a Measurement Date to the related notice date or purchase
      date.  Measurement Periods cannot run concurrently.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    “Non-Cumulative”
means,
      with
      respect to any Qualifying Capital Securities, that the issuer may elect not
      to
      make any number of periodic Distributions without any remedy arising under
      the
      terms of the securities or related agreements in favor of the holders, other
      than one or more Permitted Remedies.

     

    “No
      Payment Provision” means a
      provision or provisions in the transaction documents for securities (referred
      to
      in this definition as “such
      securities”) that include the following:

     

    (a)    an
      Alternative Payment Mechanism; and

     

    (b)    an
      Optional Deferral Provision modified and supplemented from the general
      definition of that term to provide that the issuer of such securities may,
      in
      its sole discretion, or (if the issuer elects to so provide in the terms of
      such
      securities) shall in response to a directive or order from, or memorandum of
      understanding with, the Federal Reserve, defer in whole or in part payment
      of
      Distributions on such securities for one or more consecutive Distribution
      Periods of up to five years or, if a Market Disruption Event has occurred and
      is
      continuing, ten years, without any remedy other than Permitted Remedies and
      the
      obligations (and limitations on obligations) described in the definition of
      “Alternative Payment Mechanism” applying.

     

    “NRSRO”
means
      a nationally
      recognized statistical rating organization within the meaning of Rule
      15c3-1(c)(2)(vi)(F) under the Exchange Act.

     

    “Optional
      Deferral Provision”
means, as to any Qualifying Capital Securities, a provision in the terms
      thereof
      or of the related transaction agreements to the effect that:

     

    (a)           (i) the
      issuer of such Qualifying Capital Securities may, in its sole discretion, or
      shall in response to a directive or order from, or memorandum of understanding
      with, the Federal Reserve, defer in whole or in part payment of Distributions
      on
      such securities for one or more consecutive Distribution Periods of up to five
      years or, if a Market Disruption Event is continuing, ten years, without any
      remedy other than Permitted Remedies and (ii) such securities are subject
      to an Alternative Payment Mechanism (provided that such
      Alternative Payment Mechanism need not apply during the first five years of
      any
      deferral period and need not include an APM Maximum Obligation, Preferred Cap,
      Bankruptcy Claim Limitation Provision or Repurchase Restriction);
      or

     

    (b)           the
      issuer of such Qualifying Capital Securities may, in its sole discretion, or
      shall in response to a directive or order from, or memorandum of understanding
      with, the Federal Reserve, defer or skip in whole or in part payment of
      Distributions on such securities for one or more consecutive Distribution
      Periods of up to at least ten years without any remedy other than Permitted
      Remedies.

     

    “Permitted
      Remedies” means, as
      to any security or combination of securities, one or more of the following
      remedies:

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (a)    rights
      in favor of the holders of such securities permitting such holders to elect
      one
      or more directors of the issuer (including any such rights required by the
      listing requirements of any stock or securities exchange on which such
      securities may be listed or traded); and

     

    (b)    complete
      or partial prohibitions on the issuer or its subsidiaries paying Distributions
      on or repurchasing common stock or other securities that rank as to
      Distributions paripassu
with
      or junior to such
      securities for so long as distributions on such securities, including deferred
      distributions, have not been paid in full or to such lesser extent as may be
      specified in the terms of such securities.

     

     

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

     

     

    “Preferred
      Cap” has the
      meaning specified in clause (g) of the definition of Alternative Payment
      Mechanism.

     

     

    “Qualifying
      Capital
      Securities” means securities or combinations of securities (other than
      securities covered by paragraphs (i) and (ii) of Section 2) that,
      in the determination of the Corporation’s Board of Directors, acting in its
      reasonable discretion and reasonably construing the definitions and other terms
      of this Covenant, meet one of the following criteria:

     

     

    (i)    in
      connection with any repayment, redemption or purchase of Securities prior to
      December 21, 2027:

     

    (A)    securities
      issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon the liquidation, dissolution or winding up of the Corporation,
      (2) have no maturity or a maturity of at least 60 years and
      (3) either:

     

    (x)    have
      a No Payment Provision or are Non-Cumulative and are subject to a Qualifying
      Capital Replacement Covenant, or

     

    (y)    have
      an Optional Deferral Provision and a Mandatory Trigger Provision and are subject
      to Intent-Based Replacement Disclosure;

     

    (B)    securities
      issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon the liquidation, dissolution or winding up of the Corporation,
      (2) have no maturity or a maturity of at least 40 years and are subject to
      a Qualifying Capital Replacement Covenant and (3) have an Optional Deferral
      Provision and a Mandatory Trigger Provision; or

     

    (C)    Qualifying
      Preferred Stock; or

     

    (ii)    in
      connection with any repayment, redemption or purchase of Securities at any
      time
      on or after December 21, 2027 and prior to December 21, 2047:

     

    (A)    securities
      described under clause (i) of this definition;

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (B)    securities
      issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon a liquidation, dissolution or winding up of the Corporation,
      (2) have no maturity or a maturity of at least 60 years and
      (3) either:

     

    (x)    are
      subject to a Qualifying Capital Replacement Covenant and have an Optional
      Deferral Provision, or

     

    (y)    are
      subject to Intent-Based Replacement Disclosure and have a No Payment Provision
      or are Non-Cumulative;

     

    (C)    securities
      issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon a liquidation, dissolution or winding up of the Corporation,
      (2) have no maturity or a maturity of at least 40 years and
      (3) either:

     

    (x)    have
      a No Payment Provision or are Non-Cumulative and are subject to a Qualifying
      Capital Replacement Covenant, or

     

    (y)    have
      an Optional Deferral Provision and a Mandatory Trigger Provision and are subject
      to Intent-Based Replacement Disclosure;

     

    (D)    securities
      issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon a liquidation, dissolution or winding-up of the Corporation,
      (2) have no maturity or a maturity of at least 25 years and are subject to
      a Qualifying Capital Replacement Covenant and (3) have an Optional Deferral
      Provision and a Mandatory Trigger Provision; or

     

    (E)    securities
      issued by the Corporation or its Subsidiaries that rank (i) senior to the
      Notes and securities that are pari passu with the Notes but
      (ii) junior to all other debt securities of the Corporation (other than
      (x) Notes and securities that are pari passu with the Notes
      and (y) securities that are pari passu with such
      Qualifying Capital Securities) upon its liquidation, dissolution or winding-up,
      and (2) either:

     

    (x)    have
      no maturity or a maturity of at least 60 years and either (I) are
      (a) Non-Cumulative or subject to a No Payment Provision and
      (b) subject to a Qualifying Capital Replacement Covenant or (II) have
      a Mandatory Trigger Provision and an Optional Deferral Provision and are subject
      to Intent-Based Replacement Disclosure, or

     

    (y)    have
      no maturity or a maturity of at least 40 years, are subject to a Qualifying
      Capital Replacement Covenant and have a Mandatory Trigger Provision and an
      Optional Deferral Provision;

     

    (F)    preferred
      stock issued by the Corporation or its Subsidiaries that (1) has no
      prepayment obligation on the part of the issuer thereof, whether at the election
      of the holders or otherwise, (2) has no maturity or a maturity of at least
      60 years and (3) is subject to a Qualifying Capital Replacement Covenant;
      or

     

    (iii)    in
      connection with any repayment, redemption or purchase of Securities at any
      time
      on or after December 21, 2047 and prior to the Termination Date:

     

    (A)    securities
      described under clause (ii) of this definition;

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (B)    securities
      issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon a liquidation, dissolution or winding up of the Corporation,
      (2) either:

     

    (x)    have
      no maturity or a maturity of at least 60 years and are subject to Intent-Based
      Replacement Disclosure, or

     

    (y)    have
      no maturity or a maturity at least 40 years and are subject to a Qualifying
      Capital Replacement Covenant; and

     

    (3)    have
      an Optional Deferral Provision;

     

    (C)    securities
      issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon a liquidation, dissolution or winding up of the Corporation,
      (2) have no maturity or a maturity at least 40 years are subject to
      Intent-Based Replacement Disclosure and (3) are Non-Cumulative or have a No
      Payment Provision;

     

    (D)    securities
      issued by the Corporation or its Subsidiaries that rank (i) senior to the
      Notes and securities that are pari passu with the Notes but
      (ii) junior to all other debt securities of the Corporation (other than
      (x) Notes and securities that are pari passu with the Notes and
      (y) securities that are pari passu with such
      Qualifying Capital Securities) upon its liquidation, dissolution or winding-up,
      and (2) either:

     

    (x)    have
      no maturity or a maturity of at least 60 years and either (i) have an
      Optional Deferral Provision and are subject to a Qualifying Capital Replacement
      Covenant or (ii) (a) are Non-Cumulative or have a No Payment Provision and
      (b) are subject to Intent-Based Replacement Disclosure, or

     

    (y)    have
      no maturity or a maturity of at least 40 years and either (i) (a) are
      Non-Cumulative or have a No Payment Provision and (b) are subject to a
      Qualifying Capital Replacement Covenant or (ii) are subject to Intent-Based
      Replacement Disclosure and have a Mandatory Trigger Provision and an Optional
      Deferral Provision; or

     

    (E)    preferred
      stock issued by the Corporation or its Subsidiaries that either (1) has no
      maturity or a maturity of at least 60 years and is subject to Intent-Based
      Replacement Disclosure or (2) has a maturity of at least 40 years and is
      subject to a Qualifying Capital Replacement Covenant.

     

    “Qualifying
      Preferred Stock”
means non-cumulative perpetual preferred stock of the Corporation that
      (a) ranks pari
      passu with or junior to all other preferred stock of the Corporation, and
      (b) either (x) is subject to a Qualifying Capital Replacement Covenant
      or (y) is subject to Intent-Based Replacement Disclosure and has a
      provision that prohibits the Corporation from paying any dividends thereon
      upon
      its failure to satisfy one or more financial tests set forth therein, and
      (c) as to which the transaction documents provide for no remedies as a
      consequence of non-payment of dividends other than Permitted
      Remedies.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    “Qualifying
      Capital Replacement
      Covenant” means a replacement capital covenant that is substantially
      similar to this Covenant or a replacement capital covenant, as identified by
      the
      Corporation’s Board of Directors acting in its reasonable discretion and
      reasonably construing the definitions and other terms of this Covenant,
      (i) entered into by a company that at the time it enters into such
      replacement capital covenant is a reporting company under the Exchange Act
      and
      (ii) that restricts the related issuer from, and requires the related
      issuer to restrict its subsidiaries from, redeeming, repaying or purchasing
      identified securities except to the extent of the applicable percentage of
      the
      net proceeds from the issuance of specified replacement capital securities
      that
      have terms and provisions at the time of redemption, repayment or purchase
      that
      are as or more equity-like than the securities then being redeemed, repaid
      or
      purchased within the six-month period prior to the applicable redemption,
      repayment or purchase date.

     

     

    “Qualifying
      Warrants” has the
      meaning specified in the Indenture.

     

     

    “Redesignation
      Date” means, as
      to the then-effective Covered Debt, the earliest of (i) the date that is
      two years prior to the final maturity date of such Covered Debt, (ii) if
      the Corporation elects to redeem, repurchase or defease, or a Subsidiary of
      the
      Corporation elects to purchase, such Covered Debt either in whole or in part
      with the consequence that after giving effect to such redemption, repurchase,
      defeasance or purchase the outstanding principal amount of such Covered Debt
      is
      less than $100,000,000, the applicable redemption, repurchase, defeasance or
      purchase date and (iii) if the then-effective Covered Debt is not Eligible
      Subordinated Debt, the date on which the Corporation issues long-term
      indebtedness for money borrowed that is Eligible Subordinated Debt.

     

    “REIT
      Preferred Securities”
means non-cumulative perpetual preferred stock of a Subsidiary of a
      Depository
      Institution Subsidiary, which Subsidiary may or may not be a “real estate
      investment trust” (“REIT”) within the meaning
      of
      Section 856 of the Internal Revenue Code of 1986, as amended, that is
      exchangeable for non-cumulative perpetual preferred stock of the Corporation
      and
      satisfies the following requirements:

     

    (a)    such
      non-cumulative perpetual preferred stock of a Subsidiary of the Depository
      Institution Subsidiary and the related non-cumulative perpetual preferred stock
      of the Corporation for which it may be exchanged qualifies as Tier 1 capital
      of
      a Depository Institution Subsidiary under the risk-based capital guidelines
      of
      the Appropriate Federal Banking Agency and related interpretive guidance of
      such
      Agency (for example, in the case of the Office of the Comptroller of the
      Currency, Corporate Decision 97-109) (disregarding any quantitative
      limits);

     

    (b)    such
      non-cumulative perpetual preferred stock of a Subsidiary of the Depository
      Institution Subsidiary must be exchangeable automatically into non-cumulative
      perpetual preferred stock of the Corporation in the event that the Appropriate
      Federal Banking Agency directs such Depository Institution Subsidiary in writing
      to make a conversion because such Depository Institution Subsidiary is
      (i) undercapitalized under the applicable prompt corrective action
      regulations (which, for example, in the case of the Office of the Comptroller
      of
      the Currency and applicable to national banks, are at 12 C.F.R. 6.4(b)),
      (ii) placed into conservatorship or receivership, or (iii) expected to
      become undercapitalized in the near term;

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (c)    if
      such Subsidiary of the Depository Institution Subsidiary is a REIT, the
      transaction documents include provisions that would enable the REIT to stop
      paying dividends on its non-cumulative perpetual preferred stock without causing
      the REIT to fail to comply with the income distribution and other requirements
      of the Internal Revenue Code of 1986, as amended, applicable to
      REITs;

     

     (d)    such
      non-cumulative perpetual preferred stock of the Corporation issued upon exchange
      for the non-cumulative perpetual preferred stock of a Subsidiary of a Depository
      Institution Subsidiary issued as part of such transaction ranks pari passu
      with
      or junior to other preferred stock of the Corporation; and

     

    (e)    such
      REIT Preferred Securities and non-cumulative perpetual preferred stock of the
      Corporation for which it may be exchanged are subject to a Qualifying Capital
      Replacement Covenant.

     

     

    “Replacement
      Capital
      Securities” means Common Stock, rights to acquire Common Stock, Debt
      Exchangeable for Common Equity, Debt Exchangeable for Preferred Equity,
      Mandatorily Convertible Preferred Stock, REIT Preferred Securities or Qualifying
      Capital Securities.

     

     

    “Repurchase
      Restriction” has
      the meaning specified in clause (c) of the definition of “Alternative
      Payment Mechanism.”

     

     

    “Scheduled
      Maturity Date” has
      the meaning specified in the Indenture.

     

     

    “Securities”
has
      the meaning
      specified in Recital B.

     

    “Share
      Cap” has the meaning
      specified in clause (e) of the definition of Alternative Payment
      Mechanism.

     

    “Subsidiary”
      of the
      Corporation means, at any time, any Person the shares of stock or other
      ownership interests of which having ordinary voting power to elect a majority
      of
      the board of directors or other managers of such Person are at the time owned,
      or the management or policies of which are otherwise at the time controlled,
      directly or indirectly through one or more intermediaries (including other
      Subsidiaries) or both, by the Corporation.

     

    “Termination
      Date” has the
      meaning specified in Section 5(a).

     

    “Trust”
has
      the meaning
      specified in Recital A.

     

     

     

     

     

    17citi_ex4-3.htm

    Exhibit 4.3

     

    CITIGROUP
      INC.

     

    8.300%
      Fixed Rate/Floating Rate Junior Subordinated Deferrable Interest
      Debentures

     

    (U.S.
      Dollar Denominated Debentures)

     

     

     

    Officers'
      Certificate

     

    Each
      of the undersigned, in his capacity as an officer of Citigroup Inc. and/or
      as a
      member of the Funding Committee of Citigroup Inc., hereby certifies, pursuant
      to
      (i) the Indenture, dated as of June 28, 2007 (as supplemented from time to
      time,
      the "Indenture"), between Citigroup Inc., a Delaware corporation (the
      "Company"), and The Bank of New York, as trustee (the "Trustee"), and (ii)
      resolutions of the Board of Directors of the Company dated January 16, 2007
      and
      April 16, 2007 and of the Executive Committee of the Board of Directors of
      the
      Company dated November 15, 2007 that the following resolutions have been adopted
      by the Funding Committee:

     

    A.           There
      is hereby established a series of Securities (as that term is defined in the
      Indenture) to be issued under the Indenture, which have the following
      terms.  Certain defined terms used in this Officer’s Certificate have
      the meanings ascribed to them in Annex A hereto.

     

    
      	
               

            	
              1.

            	
              The
                title of the Securities of the series is 8.300% Fixed Rate/Floating
                Rate
                Junior Subordinated Deferrable Interest Debentures (the
                "Notes").

            

    

     

    
      	
               

            	
              2.

            	
              The
                limit upon the aggregate principal amount of the Notes which may
                be
                authenticated and delivered under the Indenture (except for Notes
                authenticated and delivered upon registration of transfer of, or
                in
                exchange for, or in lieu of, other Notes pursuant to Sections 3.4,
                3.5,
                3.6, 9.6 or 11.7 of the Indenture) is
                $3,500,500,000.

            

    

     

    
      	
               

            	
              3.

            	
              The
                interest rate at which the Notes shall bear interest, the Interest
                Payment
                Dates and the date from which interest shall accrue are all set forth
                herein:

            

    

     

    The
      Notes will bear interest (i) from December 21, 2007 to but excluding December
      21, 2037, at an annual rate of 8.300%, payable semi-annually in arrears on
      June
      21 and December 21 of each year, beginning on June 21, 2008; (ii) from and
      including December 21, 2037 to but excluding December 21, 2057, at an annual
      rate equal to three-month LIBOR plus 4.170%, payable quarterly in arrears on
      March 21, June 21, September 21 and December 21 of each year, beginning on
      March
      21, 2038; and (iii) to the extent the Notes are not repaid on the Scheduled
      Maturity Date, from and including the Scheduled Maturity Date to but excluding
      the date the Notes are paid in full, at an annual rate equal to one-month LIBOR
      plus 4.170%, payable monthly in arrears on the 21st
      day of each
      month, 

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    beginning
      on January 21, 2058.  The interest installment so payable, and
      punctually paid or duly provided for, on any interest payment date shall, as
      provided in the Indenture, be paid to the Person in whose name the Notes (or
      one
      or more Predecessor Securities, as defined in said Indenture) is registered
      at
      the close of business on the Regular Record Date (as defined in the Indenture)
      for such interest installment, which shall be the close of business on the
      Business Day immediately preceding such interest payment date.  Any
      such interest installment not punctually paid or duly provided for (other than
      Deferred Interest) shall forthwith cease to be payable to the registered Holder
      on such Regular Record Date and may be paid to the Person in whose name the
      Notes (or one or more Predecessor Securities) is registered at the close of
      business on a special record date fixed by the Trustee for the payment of such
      defaulted interest, notice whereof shall be given to the registered Holders
      of
      this series of Notes not less than 10 days before 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 Notes may be listed, and
      upon such notice as may be required by such exchange, all as more fully provided
      in the Indenture.

     

    
      	
               

            	
              4.

            	
              With
                respect to the Notes only, Section 3.10(b) of the Indenture is replaced
                in
                its entirety with the following:

            

    

     

    
      	
               

            	
              (I)

            	
              The
                amount of interest payable shall be computed on the basis of (i)
                a 360-day
                year comprised of twelve 30-day months with respect to any Interest
                Period
                ending on or before December 21, 2037 and will include the first
                day but
                exclude the last day of such period, and (ii) a 360-day year and
                the
                actual number of days elapsed with respect to any Interest Period
                after
                such date.  If any Interest Payment Date on or before
                December 21, 2037 is not a Business Day, then payment of interest
                payable
                on such date shall be made or be made available for payment on the
                next
                succeeding day that is a Business Day with the same force and effect
                as
                if such payment were made on the relevant Interest Payment Date, and
                without any interest or other payment in respect of any such
                delay.  If any Interest Payment Date after December 21, 2037 is
                not a Business Day, then payment of interest payable on such date
                shall be
                made or be made available for payment on the next succeeding day
                that is a
                Business Day.

            

    

     

    
      	
               

            	
              5.

            	
              The
                Notes will initially be issued in fully registered form without coupons,
                will be exchangeable for other Notes of the same series, and will
                be
                transferable at any time or from time to time at the Corporate Trust
                Office of the Trustee or any other office or agency of the Company
                designated for that purpose.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Notes will be issued in the form of one or more global securities deposited
      with, or on behalf of, The Depository Trust Company (the "Depositary") and
      registered in the name of the Depositary or its nominee (a "Book-Entry Note"),
      and the transfer of the Notes will be restricted in accordance with the existing
      operating procedures of the Depositary. The Company will make payments of
      principal, premium, if any, or interest due on the Notes represented by one
      or
      more Book-Entry Notes to the Depositary or its nominee, as the case may be,
      as
      the registered owner of the related Book-Entry Note or Notes. The Depositary
      will credit the accounts of the related participants in accordance with its
      existing operating procedures.

     

    If
      the Depositary is at any time unwilling, unable or ineligible to continue as
      depositary and a successor depositary is not appointed by the Company within
      90
      days, the Company will issue Notes in certificated form in exchange for
      beneficial interests in the Book-Entry Notes. In addition, the Company may
      at
      any time determine not to have its Notes represented by one or more Book-Entry
      Notes, and, in such event, will issue Notes in certificated form in exchange
      for
      beneficial interests in Book-Entry Notes. In any such instance, an owner of
      a
      beneficial interest in a Book-Entry Note will be entitled to physical delivery
      in certificated form of Notes equal in principal amount to such beneficial
      interest and to have such Notes registered in its name. Notes are issuable
      only
      in registered form without coupons in the minimum denomination of $5,000 and
      integral multiples of $1,000 in excess thereof.  As provided in the
      Indenture and subject to certain limitations therein set forth, the Notes are
      exchangeable for a like aggregate principal amount of the Notes of a different
      authorized denomination, as requested by the Holder surrendering the
      same.

     

    
      	
               

            	
              6.

            	
              Principal
                of and interest on the Notes shall be payable at the office or agency
                of
                the Company to be maintained in the Borough of Manhattan, The City
                of New
                York, initially at the Corporate Trust Office of the Trustee, 4 New
                York
                Plaza, New York, New York 10004; provided, however,
                that at the
                option of the Company, payment of interest may be made by check mailed
                to
                the address of the person entitled thereto as such address shall
                appear in
                the register of holders of the Notes. Notwithstanding the foregoing,
                payments of principal and interest on the Notes represented by one
                or more
                Book-Entry Notes will be made as provided
                above.

            

    

     

    
      	
               

            	
              7.

            	
              The
                Notes may be redeemed, at the Company’s option, (i) at any time in whole
                or in part (subject to the conditions described in the Indenture),
                and
                (ii) in whole but not in part in certain circumstances upon the occurrence
                of a Tax Event, an Investment Company Event, a Rating Agency Event
                or a
                Regulatory Capital Event (as these last two terms are defined in
                the
                Company's Prospectus dated December 17, 2007) (each, a "Special
                Event").  The Company may redeem the Notes (i) at any time on or
                after 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	December
              21, 2037 or (ii) at any time within 90 days after the occurrence of
              an
              Investment Company Event or a Regulatory Capital Event, at a redemption
              price equal to 100% of the aggregate principal amount of the Notes
              being
              redeemed plus accrued and unpaid interest, including any Deferred Interest
              and Additional Interest.  In all other cases, the redemption
              price will be the applicable Make-Whole Redemption Price.  Any
              redemption pursuant to this paragraph will be made upon not less than
              30
              days nor more than 60 days notice, and with respect to a redemption
              upon a
              Special Event, within 90 days following the occurrence of such Special
              Event.  If the Notes are only partially redeemed by the Company,
              the Notes 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
              Notes are registered as a Global Security, the Depositary shall determine
              the principal amount of such Notes held by each Security Beneficial
              Owner
              to be redeemed in accordance with its procedures.  In the event
              of redemption of a Note in part only, a new Note or Notes of this series
              for the unredeemed portion hereof will be issued in the name of the
              Holder
              hereof upon the cancellation hereof.

    

     

    
      	
               

            	
              8.

            	
              Any
                redemption of the Notes, in whole or in part, prior to the Scheduled
                Maturity Date is subject to the prior concurrence or approval of
                the
                Federal Reserve, or the staff thereof, (i) if such approval is then
                required in order for the Notes 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
                Notes.

            

    

     

    
      	
               

            	
              9.

            	
              With
                respect to the Notes only, Section 13.1 of the Indenture is replaced
                in
                its entirety by the following:

            

    

     

    
      	
               

            	
              (I)

            	
              The
                Company shall have the right at any time or from time to time during
                the
                term of the Notes to defer interest payments on the Notes for up
                to 10
                years (an "Extension Period");  provided, however, that no
                Extension Period shall extend beyond the Final Repayment Date or the
                earlier redemption of the Notes.  To the extent permitted by
                applicable law, interest, the payment of which has been deferred
                because
                of the extension of the interest payment period, will bear interest
                thereon at the rate specified for the Notes compounded at the end
                of each
                Interest Period ("Compounded Interest").  At the end of any
                Extension Period with respect to the Notes, the Company shall pay
                all
                accrued and unpaid interest on such Notes, including any Additional
                Interest and Compounded Interest (together, "Deferred Interest")
                that
                shall be payable to the Holders of Notes in whose names such Notes
                are
                registered in the Security Register on the first record date after
                the end
                of such Extension Period.  Before the termination of any
                Extension Period, 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	the
              Company may further extend such period; provided that such period,
              together with all such further extensions thereof, shall not exceed
              10
              years; provided further that no prepayment of interest during an Extension
              Period shall allow the Company to extend such Extension Period beyond
              10
              years.  Upon the termination of any Extension Period with
              respect to Notes and upon the payment of all Deferred Interest then
              due,
              the Company may commence a new Extension Period with respect to the
              Notes,
              subject to the foregoing requirements.  Except as provided
              by the Alternative Payment Mechanism, no interest on the Notes shall
              be
              due and payable during an Extension 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 Extension Period, subject
              to the Alternative Payment Mechanism.

    

     

    
      	
               

            	
              10.

            	
              With
                respect to the Notes only, Section 13.2 of the Indenture is replaced
                in
                its entirety with the following
                language:

            

    

     

    
      	
               

            	
              (I)

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

            

    

     

    
      	
               

            	
              (II)

            	
              If
                the Institutional Trustee of Citigroup Capital XXI is not the only
                Holder
                of the Notes of a series at the time the Company selects an Extension
                Period with respect thereto, the Company shall give written notice
                to the
                Holders of the Notes and the Trustee of its selection of such Extension
                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
                Notes.

            

    

     

    
      	
               

            	
              (III)

            	
              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 Extension Period with respect to the
              Notes.

    

     

     

    
      	
               

            	
              (IV)

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

            

    

     

     

    
      	
               

            	
              11.

            	
              The
                Notes are not subject to any sinking
                fund.

            

    

     

     

    
      	
               

            	
              12.

            	
              With
                respect to the Notes only, Section 13.3 of the Indenture is replaced
                in
                its entirety with the following
                language:

            

    

     

     

    
      	
               

            	
              (I)

            	
              If
                with respect to the Notes (i) the Company shall exercise its right
                to
                defer payments of interest thereon or (ii) there shall have occurred
                and
                be continuing 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) the 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 (if any) on, or repay,
                purchase
                or redeem, any debt securities or guarantees issued by the Company
                that
                rank pari passu with or junior to the Notes (other than (i) any payment
                of
                current or Deferred Interest on securities that rank pari passu with
                the
                Notes that is made pro rata to the amounts due on such securities
                (including the Notes), provided that any such payments of Deferred
                Interest are made in accordance with the terms set forth in Section
                13.5(d) of the Indenture, (ii) any payments of Deferred Interest
                on
                securities that rank pari passu with the Notes that, if not
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	made,
              would cause a breach of the terms of the instrument governing such
              securities, (iii) any payments of principal in respect of any securities
              that rank pari passu with the Notes and that have an earlier scheduled
              maturity date than the Notes, as required under a provision of such
              securities that is substantially the same as the provision described
              in
              paragraph 14 of this Officer’s Certificate, and any payments in respect of
              securities that rank pari passu with the Notes and that have the same
              Scheduled Maturity Date as the Notes, as required by such a provision,
              and
              that are made on a pro rata basis among one or more series of parity
              securities having such a provision and the Notes; or (iv) 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 Extension 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) herein, 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 pursuant to the Alternative Payment
              Mechanism.

    

     

    
      	
               

            	
              13.

            	
              With
                respect to the Notes only, Section 13.4 of the Indenture is replaced
                in
                its entirety with the following
                language:

            

    

     

    
      	
               

            	
              (I)

            	
              During
                an Extension Period, the Company may not pay Deferred Interest on
                the
                Notes on any date in an amount that exceeds the New Equity Amount
                for such
                date; provided, however, that (i) upon the Final Repayment Date,
                (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 Indenture will prevent the Company from paying current interest
                on
                the Notes at any time using cash from any
                source.

            

    

     

    
      	
               

            	
              14.

            	
              Section
                13.10 entitled “Scheduled Maturity” is hereby added to the Indenture and
                provides:

            

    

     

    
      	
               

            	
              (I)

            	
              The
                principal amount of the Notes shall be payable in full by the Company
                on
                the Scheduled Maturity Date to the extent of the Applicable Percentage
                of
                net proceeds it has received from the issuance of Qualifying Capital
                Securities during a 180-day period ending on a notice date not more
                than
                30 business days, and not less than 10 business days, prior to the
                Scheduled Maturity Date.  If the Company has not sold sufficient
                Qualifying Capital Securities to permit repayment of the entire principal
                amount of the Notes on the Scheduled Maturity Date and has not otherwise
                redeemed the Notes with the Applicable Percentage of net proceeds
                it has
                received from the issuance of replacement capital securities (as
                defined in the Capital Replacement Covenant), the unpaid amount will
                remain outstanding.  Moreover, the Company may only pay Deferred
                Interest on the Notes out of the net proceeds from the sale of common
                stock and/or Qualified Warrants, subject to the exceptions set forth
                in
                the Alternative Payment Mechanism.  The Company will be required
                to repay the unpaid principal amount of the Notes on each subsequent
                monthly Interest Payment Date to the extent of the Applicable Percentage
                of net proceeds it receives from any subsequent issuance of Qualifying
                Capital Securities or upon the earliest to occur of the redemption
                in full
                of the Notes, an Event of Default and Acceleration of the Notes,
                and the
                Final Repayment Date.  The Company's right to redeem, repay or
                purchase the Notes is subject to the terms and conditions of the
                Capital
                Replacement Covenant for so long as that covenant is in
                effect.

            

    

     

     

    
      	
               

            	
              (II)

            	
              The
                Company agrees to use its commercially reasonable efforts (limited
                as
                described below) to raise sufficient net proceeds from the issuance
                of
                Qualifying Capital Securities during the 180-day period described
                above to
                permit repayment of the Notes in full on the Scheduled Maturity Date
                in
                accordance with the above requirement.  The Company further
                agrees that if it is unable for any reason to raise sufficient proceeds
                to
                permit payment in full on the Scheduled Maturity Date, it will use
                its
                commercially reasonable efforts, subject to limitations described
                in this
                Section 13.10, to raise sufficient proceeds from the sale of Qualifying
                Capital Securities to permit repayment on the next Interest Payment
                Date,
                and on each monthly Interest Payment Date thereafter (each of the
                Scheduled Maturity Date and the succeeding Interest Payment Dates,
                a
                “Repayment Date”), until it repays the Notes in full, or an Event of
                Default and Acceleration of the Notes occurs or until the Final Repayment
                Date.  The Company's failure to use its commercially reasonable
                efforts to raise these proceeds would be a breach of its covenant
                under
                the indenture.  However, in no event will any such failure be an
                event of default under this Indenture or give rise to a right of
                acceleration or similar remedy.

            

    

     

     

    
      	
               

            	
              (III)

            	
              Commercially
                reasonable efforts to sell Qualifying Capital Securities means
                commercially reasonable efforts to complete the sale of Qualifying
                Capital
                Securities 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 Qualifying Capital Securities if it determines
                not to pursue or 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	complete
              such sale solely due to pricing, coupon, dividend rate or dilution
              considerations.

    

     

     

    
      	
               

            	
              (IV)

            	
              The
                Company shall, if it has not raised sufficient net proceeds from
                the
                issuance of Qualifying Capital Securities pursuant to Section 13.10(I)
                above in connection with any Repayment Date, deliver an Officers’
                Certificate to the Trustee (which the Trustee shall promptly forward
                upon
                receipt to the Property Trustee) no more than 15 and no less than
                10
                Business Days in advance of such Repayment Date stating the amount
                of net
                proceeds, if any, raised pursuant to Section 13.10(I) above in connection
                with such Repayment Date and the corresponding principal amount of
                the
                Notes represented thereby.

            

    

     

    
      	
               

            	
              (V)

            	
              The
                Company shall be excused from its obligation to use commercially
                reasonable efforts to sell Qualifying Capital Securities pursuant
                to
                Section 13.10(II) above if such Officers’ Certificate further certifies
                that: (A) a Market Disruption Event existed during the 180-day period
                preceding the date of such Officers’ Certificate or, in the case of any
                Repayment Date after the Scheduled Maturity Date, the 30-day period
                preceding the date of such Officers’ Certificate; and (B) either (1) the
                Market Disruption Event continued for the entire 180- or 30-day period,
                as
                the case may be, or (2) the Market Disruption Event continued for
                only
                part of the period, but the Company was unable after commercially
                reasonable efforts to raise sufficient net proceeds during the rest
                of
                that period to permit repayment of the Notes in full pursuant to
                clause
                13.10(II) above. Each Officers’ Certificate delivered pursuant to this
                clause 13.10(V), unless no principal amount of Notes is to be repaid
                on
                the applicable Repayment Date, will be accompanied by a notice of
                repayment pursuant to Section 13.10 setting forth the principal amount
                of
                the Notes to be repaid on such Repayment Date, if any, which amount
                will
                be determined after giving effect to clause (A) of this Section
                13.10(V).

            

    

     

    
      	
               

            	
              (VI)

            	
              Payments
                in respect of the Notes on any Repayment Date will be applied, first,
                to
                Deferred Interest to the extent of the New Equity Amount, second,
                to pay
                current interest to the extent not paid from other sources and, third,
                to
                the principal of the Notes; provided that if the Company is obligated
                to
                sell Qualifying Capital Securities and make payments of principal
                on any
                outstanding Parity Securities in addition to the Notes in respect
                thereof,
                then on any date and for any period the Applicable Percentage of
                net
                proceeds received by the Company from those sales and available for
                such
                payments shall be applied first to any other Parity Securities having
                an
                earlier scheduled maturity date than the Notes, and then to the Notes
                and
                any other Parity Securities having the same
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	Scheduled
              Maturity Date as the Notes pro rata in accordance with their respective
              outstanding principal amounts and no such payments will be made to
              any
              other Parity Securities having a later scheduled maturity date
              until the principal of the Notes has been paid in full, except to the
              extent permitted under Section 13.3 of the Indenture as modified by
              paragraph 11 of this Officer’s Certificate. Notwithstanding the foregoing,
              if the Company raises less than $5 million of net proceeds from the
              sale
              of Qualifying Capital Securities during the relevant 180- or 30-day
              period, the Company will not be required to repay any Notes on the
              applicable Repayment Date. On the next Interest Payment Date as of
              which
              the Company has raised at least $5 million of net proceeds during the
              180-day period preceding the applicable notice date determined in
              accordance with paragraph IV of this Section 13.10 (or, if shorter,
              the
              period since the Company last repaid any principal amount of Notes),
              the
              Company shall be required to repay interest and a principal amount
              of the
              Notes equal to the Applicable Percentage of the entire net proceeds
              from
              the sale of Qualifying Capital Securities during such 180-day or shorter
              period.

    

     

    
      	
               

            	
              15.

            	
              If
                at any time Citigroup Capital shall be 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 such case, the Company will pay as additional
                interest on the Notes such amounts as shall be required so that the net
                amounts received and retained by Citigroup Capital after paying any
                such
                taxes, duties, assessments or other governmental charges will be
                not less
                than the amounts Citigroup Capital would have received had no such
                taxes,
                duties, assessments or other governmental charges been
                imposed.

            

    

     

    
      	
               

            	
              16.

            	
              The
                Notes shall be subordinated and junior in right of payment to all
                Senior
                Indebtedness of the Company to the extent set forth in the
                Indenture.

            

    

     

    
      	
               

            	
              17.

            	
              The
                Notes shall be denominated, and principal of and interest on the
                Notes
                shall be payable, in United States
                dollars.

            

    

     

    
      	
               

            	
              18.

            	
              The
                Notes shall be subject to the satisfaction, discharge and defeasance
                provisions of Article 4 of the
                Indenture.

            

    

     

    
      	
               

            	
              19.

            	
              For
                the purpose of satisfying Section 13.5(a) of the Indenture or otherwise
                paying Deferred Interest on the Notes, the Company is not permitted
                to
                sell shares of common stock in excess of a number of shares of common
                stock which at December 17, 2007 is equal to 195,000,000 (the "Share
                Cap
                Amount"); provided that the Company shall not be obligated to increase
                the
                Share Cap Amount above 1,400,000,000
                shares.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    B.           The
      definitions utilized herein and set forth in Annex A are added, deleted, or
      modified from those appearing in Section 1.1 of the Indenture.

     

    C.           The
      following additional matters pertain to the Notes:

     

    
      	
               

            	
              1.

            	
              The
                Notes shall be subject to the covenants and Defaults provided for
                by the
                Indenture and shall not be subject to any additional covenants or
                Defaults.

            

    

     

    
      	
               

            	
              2.

            	
              The
                Company shall pay to the Underwriters referred to below, for arranging
                the
                investment in the Notes of the proceeds of the sale of 3,500,000
                8.300%
                Fixed Rate/Floating Rate Capital Securities (the "Capital Securities")
                of
                Citigroup Capital XXI, $10 per Capital
                Security.

            

    

     

    
      	
               

            	
              3.

            	
              The
                Notes shall be in substantially the form of Note attached hereto
                as Annex
                A, with such additions and changes as any officer delivering the
                Notes
                shall, in his discretion, approve, such approval to be conclusively
                evidenced by his delivery thereof.

            

    

     

    
      	
               

            	
              4.

            	
              Any
                one of the Chairman, any Senior Vice Chairman, any Vice Chairman,
                the
                Chief Executive Officer, the President, the Chief Accounting Officer,
                the
                Chief Financial Officer, the General Counsel, the Treasurer and any
                Assistant Treasurer, shall be, and each such officer hereby is, authorized
                to enter into an underwriting agreement, and any related documents
                (the
                "Underwriting Agreement"), with Citigroup Global Markets Inc. and
                the
                other underwriters named in the Prospectus (the "Underwriters"),
                providing
                for the sale by Citigroup Capital XXI and the purchase by such
                Underwriters of the Capital Securities, such Underwriting Agreement
                to be
                in such form as the officer executing the same shall, with the advice
                of
                counsel, approve, such approval to be conclusively evidenced by such
                authorized officer's executing the same; and the Underwriting Agreement,
                when so executed, shall be presented to Citigroup Global Markets
                Inc. for
                its execution on behalf of the
                Underwriters.

            

    

     

    
      	
               

            	
              5.

            	
              The
                Secretary or any Assistant Secretary of the Company shall be, and
                each
                such person hereby is, authorized to affix the seal of the Company
                to all
                papers which may require such seal in connection with the issuance
                of the
                Notes.

            

    

     

    
      	
               

            	
              6.

            	
              Each
                of the Chairman, any Senior Vice Chairman, any Vice Chairman, the
                Chief
                Executive Officer, the President, the Chief Accounting Officer, the
                Chief
                Financial Officer, the General Counsel, the Treasurer and any Assistant
                Treasurer shall be, and each such person hereby is, authorized,
                respectively, in the name of the Company and on its behalf, to make,
                execute, issue and deliver all such documents and paper writings
                necessary
                or proper in connection with, and to give any and all persons such
                instructions and directions and to take any and all such other action
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	as
              the respectively, with the advice of counsel, may deem necessary or
              expedient to carry into effect the purposes and intent of these
              determinations, including, without limitation, to enter into a letter
              of
              representations dated on or about December 21, 2007, by and between
              the
              Company, as sponsor of Citigroup Capital, and the
              Depositary. 

    

     

    D.           Each
      of the undersigned has read the Indenture, including the provisions of Sections
      1.3, 2.1 and 3.1 and the definitions relating thereto, and the resolutions
      adopted by the Board of Directors of the Company, which are attached as Exhibit
      B to the Secretary's Certificate to be delivered on or about December 21, 2007.
      In the opinion of each of the undersigned officers of the Company, she or he
      has
      made such examination or investigation as is necessary to enable her or him
      to
      express an informed opinion as to whether or not all conditions precedent
      provided in the Indenture relating to the establishment of the form and terms
      of
      a series of Securities under the Indenture, designated as the Notes in this
      Officers' Certificate, have been complied with. In the opinion of each of the
      undersigned, all such conditions precedent have been complied with.

     

    E.           This
      Certificate and the Indenture set forth all of the terms of the
      Notes.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, each of the undersigned has hereunto executed this Officers'
      Certificate as of the 17th
      day of December,
      2007.

     

     

    
    

    
      	 	 /s/
John
              Gerspach 	 
	 	Name:  	John
              Gerspach 	 
	 	Title:  	Controller
              and Chief Accounting Officer 	 
	 	 	 	 
	 	 	 	 
	 	 /s/
Eric
              Wentzel 	 
	 	Name:  	Eric
              Wentzel 	 
	 	Title: 	Assistant
              Treasurer 	 
	 	 	 	 
	 	 	 	 
	 	 /s/
Charles
              E. Wainhouse	 
	 	Name:  	Charles
              E. Wainhouse	 
	 	Title:  	Assistant
              Treasurer	 
	 	 	 	 
	 	 	 	 

    

     

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Annex
      A

     

    The
      following definitions are added, deleted, or modified for purposes of the Notes
      only from those appearing in Section 1.1 of the Indenture:

     

    
      	
               

            	
              1.

            	
              “Alternative
                Payment Mechanism” means the Company’s obligations described in Sections
                13.1, 13.3, 13.4 and 13.5 of the
                Indenture.

            

    

     

    
      	
               

            	
              2.

            	
              “Applicable
                Percentage” means:

            

    

     

    
      	
               

            	
              (I)

            	
              (i)
                with respect to any sale of common stock of the Company or rights
                to
                acquire common stock of the Company (a) 133% with respect to any
                repayment, redemption or purchase prior to December 21, 2027, (b)
                200%
                with respect to any repayment, redemption or purchase on or after
                December
                21, 2027 and prior to December 21, 2047, and (c) 400% on or after
                December
                21, 2047;

            

    

     

    
      	
               

            	
              (II)

            	
              (ii)
                with respect to Debt Exchangeable for Common Equity, Debt Exchangeable
                for
                Preferred Equity, Mandatorily Convertible Preferred Stock, REIT Preferred
                Securities (as each of these terms is defined in the Capital Replacement
                Covenant) and Qualifying Capital Securities described under clause
                (i) of
                the definition of that term, 100% prior to December 21, 2027, 150%
                on or
                after December 21, 2027 and prior to December 21, 2047 and 300% on
                or
                after December 21, 2047;

            

    

     

    
      	
               

            	
              (III)

            	
              (iii)
                with respect to Qualifying Capital Securities described under clause
                (ii)
                of the definition of that term, 100% prior to the December 21, 2047,
                and
                200% on or after December 21, 2047;
                and

            

    

     

    
      	
               

            	
              (IV)

            	
              (iv)
                with respect to Qualifying Capital Securities described under clause
                (iii)
                of the definition of that term,
                100%.

            

    

     

    
      	
               

            	
              3.

            	
              "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.  In the case of interest
                determination dates for Interest Periods commencing on or after December
                21, 2037 a day that is a London Banking
                Day.

            

    

     

    
      	
               

            	
              4.

            	
              "Calculation
                Agent" means The Bank of New York, or any other firm appointed by
                the
                Company, acting as calculation
                agent.

            

    

     

    
      	
               

            	
              5.

            	
              "Capital
                Replacement Covenant" means the Capital Replacement Covenant, dated
                as of
                December 21, 2007 by the Company, as the same may be amended or
                supplemented from time to time in accordance with the terms of the
                Capital
                Replacement Covenant.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              6.

            	
              "Citigroup
                Standard TRUPS® Trust" means each of Citigroup Capital II, Citigroup
                Capital III, Citigroup Capital VII, Citigroup Capital VIII, Citigroup
                Capital IX, Citigroup Capital X, Citigroup Capital XI, Citigroup
                Capital
                XII, Citigroup Capital XIII, Citigroup Capital XXIX,
                Citigroup Capital XXX, Citigroup Capital XXXI, and Citigroup Capital
                XXXII, 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 JPMorgan Chase Bank, N.A., 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.

            

    

     

    
      	
               

            	
              7.

            	
              The
                definition of “Coupon Rate” shall be deleted from the
                Indenture.

            

    

     

    
      	
               

            	
              8.

            	
              “Covered
                Debtholder” means each Person (whether a Holder or a beneficial owner
                holding through a participant in a clearing agency) that buys or
                holds
                long-term indebtedness for money borrowed of the Company during the
                period
                that such long-term indebtedness for money borrowed is Covered
                Debt.

            

    

     

    
      	
               

            	
              9.

            	
              "Depositary"
                means, with respect to Notes 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 Notes
                as
                contemplated by Section 3.1.

            

    

     

    
      	
               

            	
              10.

            	
              “Extension
                Period” has the meaning set forth in paragraph 9 of this Officer’s
                Certificate.  The defined terms “Extended Interest Payment
                Period” should be read to mean “Extension Period” wherever that term
                appears in the Indenture.

            

    

     

    
      	
               

            	
              11.

            	
              “Federal
                Reserve” means 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.

            

    

     

    
      	
               

            	
              12.

            	
              "Final
                Repayment Date" means December 21, 2077,  the date on which the
                Company is required to pay any remaining outstanding principal and
                interest in full on the Notes whether or not the Company has sold
                Qualifying Capital Securities.

            

    

     

    
      	
               

            	
              13.

            	
              The
                definition of "Interest Payment Date," when used with respect to
                the
                Notes, is hereby updated and amended to mean the date upon which
                an
                installment of interest is payable on such
                Security.

            

    

     

    
      	
               

            	
              14.

            	
              "Interest
                Period" means each period beginning on and including an Interest
                Payment
                Date (or, with respect to the first Interest Payment Date,
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	beginning
              on and including the date the Notes are issued) and ending on but
              excluding the next Interest Payment
              Date. 

    

     

    
      	
               

            	
              15.

            	
              “LIBOR”
                means, with respect to any monthly or quarterly interest period,
                the rate
                (expressed as a percentage per annum) for deposits in United States
                dollars for a one- or three-month period, as applicable, commencing
                on the
                first day of that monthly or quarterly interest period that appears
                on the
                Reuters Screen LIBOR01 Page as of 11:00 a.m. (London time) on the
                LIBOR
                Determination Date for that monthly or quarterly interest period,
                as the
                case may be. If such rate does not appear on Reuters Screen LIBOR01
                Page,
                one- or three-month LIBOR will be determined on the basis of the
                rates at
                which deposits in United States dollars for a one- or three-month
                period
                commencing on the first day of that monthly or quarterly interest
                period,
                as applicable, and in a principal amount of not less than $1 million
                are
                offered to prime banks in the London interbank market by four major
                banks
                in the London interbank market selected by the Calculation Agent
                (after consultation with Citigroup), at approximately 11:00 a.m.,
                London
                time, on the LIBOR Determination Date for that monthly or quarterly
                interest period. The Calculation Agent will request the principal
                London
                office of each of such banks to provide a quotation of its rate.
                If at
                least two such quotations are provided, one- or three-month LIBOR
                with
                respect to that monthly or quarterly interest period, as applicable,
                will
                be the arithmetic mean (rounded upward if necessary to the nearest
                whole
                multiple of 0.00001%) of such quotations. If fewer than two quotations
                are
                provided, one- or three-month LIBOR with respect to that monthly
                or
                quarterly interest period, as applicable, will be the arithmetic
                mean
                (rounded upward if necessary to the nearest whole multiple of 0.00001%)
                of
                the rates quoted by three major banks in New York City selected by
                the
                Calculation Agent, at approximately 11:00 a.m., New York City time,
                on the
                first day of that monthly or quarterly interest period, as applicable,
                for
                loans in United States dollars to leading European banks for a one-
                or
                three-month period, as applicable, commencing on the first day of
                that
                monthly or quarterly interest period and in a principal amount of
                not
                less than $1 million. However, if fewer than three banks selected by
                the Calculation Agent to provide quotations are quoting as described
                above, one- or three-month LIBOR for that monthly or quarterly interest
                period, as applicable, will be the same as one- or three-month LIBOR
                as determined for the previous interest period or, in the case of
                the
                quarterly interest period beginning on December 21, 2037, 4.941%.
                The
                establishment of one- or three-month LIBOR for each monthly or quarterly
                interest period, as applicable, by the Calculation Agent shall (in
                the
                absence of manifest error) be final and
                binding;

            

    

     

    
      	
               

            	
              16.

            	
              “LIBOR
                Determination Date” means the second London Banking Day preceding the
                first day of the relevant Interest
                Period.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              17.

            	
              "London
                Banking Day" means any day on which commercial banks are open for
                general
                business (including dealings in deposits in United States dollars)
                in
                London, England.

            

    

     

    
      	
               

            	
              18.

            	
              "Make-Whole
                Redemption Price" means, as determined by or on behalf of, the Calculation
                Agent, the greater of:

            

    

     

    
      	
               

            	
              (I)

            	
              100%
                of the aggregate principal amount of the Notes being redeemed;
                and

            

    

     

    
      	
               

            	
              (II)

            	
              the
                sum of present values of (a) a principal payment on December 21,
                2037,
                discounted from December 21, 2037 to the Redemption Date and (b)
                scheduled
                payments of interest that would have accrued from the Redemption
                Date to
                and including December 21, 2037 (not including any interest accrued
                to the
                Redemption Date) on the Notes being redeemed, discounted from the
                relevant
                Interest Payment Date to the Redemption Date on a semi-annual basis
                (calculated on the basis of the number of days from and including
                the date
                on which the scheduled interest would have accrued during the relevant
                Interest Periods to but excluding December 21, 2037, divided by the
                number
                of days in the relevant Interest Periods (including the first day
                but
                excluding the last day of such Interest Period)) at a discount rate
                equal
                to the Treasury Rate plus (i) in the case of a Tax Event or a Rating
                Agency Event, 0.50% or (ii) in all other cases, 0.50%, in each case
                plus accrued and unpaid interest, including any Additional Interest,
                to the Redemption Date.

            

    

     

    
      	
               

            	
              19.

            	
              The
                first sub-part of the definition of "Market Disruption Event" is
                hereby
                updated and amended to mean the occurrence or existence of any of
                the
                following events or circumstances:

            

    

     

    
      	
               

            	
              (I)

            	
              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 pursuant to
                the
                Alternative Payment Mechanism or to issue Qualifying Capital Securities
                pursuant to the Company’s obligations to make payments in conjunction with
                the Scheduled Maturity Date (as those obligations are described in
                Section
                13.10 of the Indenture) and such consent or approval has not yet
                been
                obtained even though the Company has used commercially reasonable
                efforts
                to obtain the required consent or
                approval;

            

    

     

    
      	
               

            	
              20.

            	
              The
                definition of “Maturity” is hereby updated and amended to mean, when used
                with respect to the Notes, the date on which the principal of such
                Note or
                an installment of principal becomes due and payable as
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 therein
              or herein provided, whether at the Final Repayment Date or by declaration
              of acceleration, call for redemption or
              otherwise.

    

     

    
      	
               

            	
              21.

            	
              “Measurement
                Date” has the meaning specified in the Capital Replacement
                Covenant.

            

    

     

    
      	
               

            	
              22.

            	
              "Parity
                Securities" means any indebtedness or any guarantee that by its terms
                ranks equally with the Notes (including the junior subordinated debt
                securities issued in connection with the offering of enhanced trust
                preferred securities by Citigroup Capital XIV, Citigroup Capital
                XV,
                Citigroup Capital XVI, Citigroup Capital XVII, Citigroup Capital
                XVIII,
                Citigroup Capital XIX and Citigroup Capital XX) and the issuance
                of which
                does not at the time of issuance prevent the Notes 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.

            

    

     

    
      	
               

            	
              23.

            	
              Capitalized
                terms used in this definition of “Qualifying Capital Securities” only have
                the meaning given to them in the Capital Replacement
                Covenant.  “Qualifying Capital Securities” means securities or
                combinations of securities (with the exception of certain securities
                identified in the Capital Replacement Covenant) that, in the determination
                of the Company’s Board of Directors, acting in its reasonable discretion
                and reasonably construing the definitions and other terms of the
                Capital
                Replacement Covenant, meet one of the following
                criteria:

            

    

     

    (i)    in
      connection with any repayment, redemption or purchase of Securities prior to
      December 21, 2027

     

    (A)    securities
      issued by the Company or its subsidiaries that (1) rank pari passu with or junior to
      the Notes upon the liquidation, dissolution or winding up of the Company, (2)
      have no maturity or a maturity of at least 60 years and (3) either:

     

    (x)    have
      a No Payment Provision or are Non-Cumulative and are subject to a Qualifying
      Capital Replacement Covenant, or

     

    (y)    have
      an Optional Deferral Provision and a Mandatory Trigger Provision and are subject
      to Intent-Based Replacement Disclosure;

     

    (B)    securities
      issued by the Company or its subsidiaries that (1) rank pari passu with or junior to
      the Notes upon the liquidation, dissolution or winding up of the Company, (2)
      have no maturity or a maturity of at least 40 years and are subject to a
      Qualifying Capital Replacement Covenant and (3) have an Optional Deferral
      Provision and a Mandatory Trigger Provision; or

     

    (C)    Qualifying
      Preferred Stock; or

     

    (ii)    in
      connection with any repayment, redemption or purchase of Notes at any time
      on or
      after December 21, 2027 and prior to December 21, 2047

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (A)    securities
      described under clause (i) of this definition;

     

    (B)    securities
      issued by the Company or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon a liquidation, dissolution or winding up of the Company, (2)
      have
      no maturity or a maturity of at least 60 years and (3) either:

     

    (x)    are
      subject to a Qualifying Capital Replacement Covenant and have an Optional
      Deferral Provision, or

     

    (y)    are
      subject to Intent-Based Replacement Disclosure and have a No Payment Provision
      or are Non-Cumulative;

     

    (C)    securities
      issued by the Company or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon a liquidation, dissolution or winding up of the Company, (2)
      have
      no maturity or a maturity of at least 40 years and (3) either:

     

    (x)    have
      a No Payment Provision or are Non-Cumulative and are subject to a Qualifying
      Capital Replacement Covenant, or

     

    (y)    have
      an Optional Deferral Provision and a Mandatory Trigger Provision and are subject
      to Intent-Based Replacement Disclosure;

     

    (D)    securities
      issued by the Company or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon a liquidation, dissolution or winding-up of the Company, (2)
      have
      no maturity or a maturity of at least 25 years and are subject to a Qualifying
      Capital Replacement Covenant and (3) have an Optional Deferral Provision and
      a
      Mandatory Trigger Provision; or

     

    (E)    securities
      issued by the Company or its Subsidiaries that rank (i) senior to the Notes
      and
      securities that are pari
      passu with the Notes but (ii) junior to all other debt securities of the
      Company (other than (x) Notes and securities that are pari passu with the Notes
      and (y) securities that are pari passu with such
      Qualifying Capital Securities) upon its liquidation, dissolution or winding-up,
      and (2) either:

     

    (x)    have
      no maturity or a maturity of at least 60 years and either (I) are (a)
      Non-Cumulative or subject to a No Payment Provision and (b) subject to a
      Qualifying Capital Replacement Covenant or (II) have a Mandatory Trigger
      Provision and an Optional Deferral Provision and are subject to Intent-Based
      Replacement Disclosure, or

     

    (y)    have
      no maturity or a maturity of at least 40 years, are subject to a Qualifying
      Capital Replacement Covenant and have a Mandatory Trigger Provision and an
      Optional Deferral Provision;

     

    (F)    preferred
      stock issued by the Company or its Subsidiaries that (1) has no prepayment
      obligation on the part of the issuer thereof, whether at the election of the
      holders or otherwise, (2) has no maturity or a maturity of at least 60 years
      and
      (3) is subject to a Qualifying Capital Replacement Covenant; or

     

    (iii)    in
      connection with any repayment, redemption or purchase of Notes at any time
      on or
      after December 21, 2047 and prior to the Termination Date:

     

    (A)    securities
      described under clause (ii) of this definition;

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (B)    securities
      issued by the Company or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon a liquidation, dissolution or winding up of the Company, (2)
      either:

    
 

    (x)    have
      no maturity or a maturity of at least 60 years and are subject to Intent-Based
      Replacement Disclosure, or

     

    (y)    have
      no maturity or a maturity at least 40 years and are subject to a Qualifying
      Capital Replacement Covenant; and

     

    (3)    have
      an Optional Deferral Provision;

     

    (C)    securities
      issued by the Company or its Subsidiaries that (1) rank pari passu with or junior to
      the Notes upon a liquidation, dissolution or winding up of the Company, (2)
      have
      no maturity or a maturity at least 40 years are subject to Intent-Based
      Replacement Disclosure and (3) are Non-Cumulative or have a No Payment
      Provision;

     

    (D)    securities
      issued by the Company or its Subsidiaries that rank (i) senior to the Notes
      and
      securities that are pari
      passu with the Notes but (ii) junior to all other debt securities of the
      Company (other than (x) Notes and securities that are pari passu with the Notes and
      (y) securities that are pari
      passu with such Qualifying Capital Securities) upon its liquidation,
      dissolution or winding-up, and (2) either:

     

    (x)    have
      no maturity or a maturity of at least 60 years and either (i) have an Optional
      Deferral Provision and are subject to a Qualifying Capital Replacement Covenant
      or (ii) (a) are Non-Cumulative or have a No Payment Provision and (b) are
      subject to Intent-Based Replacement Disclosure, or

     

    (y)    have
      no maturity or a maturity of at least 40 years and either (i) (a) are
      Non-Cumulative or have a No Payment Provision and (b) are subject to a
      Qualifying Capital Replacement Covenant or (ii) are subject to Intent-Based
      Replacement Disclosure and have a Mandatory Trigger Provision and an Optional
      Deferral Provision; or

     

    

    (E)    preferred
      stock issued by the Company or its Subsidiaries that either (1) has no maturity
      or a maturity of at least 60 years and is subject to Intent-Based Replacement
      Disclosure or (2) has a maturity of at least 40 years and is subject to a
      Qualifying Capital Replacement Covenant.

     

    
      	
               

            	
              24.

            	
              The
                definition of “Quarterly Interest Accrual Period” shall hereby be
                deleted.

            

    

     

    
      	
               

            	
              25.

            	
              “Repayment
                Date” has the meaning set forth in paragraph 14(II) of this Officer’s
                Certificate.

            

    

     

    
      	
               

            	
              26.

            	
              "Scheduled
                Maturity Date" means December 21, 2057; if that date is not a Business
                Day, it will be postponed until the immediately succeeding Business
                Day.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              27.

            	
              "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 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 JPMorgan
                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 the 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, or is one of the Parity Securities to,
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	the
              Notes and the issuance of which does not at the time of issuance prevent
              the Notes from qualifying 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, 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. 

    

     

     

    
      	
               

            	
              28.

            	
              "Treasury
                Dealer" means Citigroup Global Markets Inc. (or its successor) or,
                if
                Citigroup Global Markets Inc. (or its successor) declines to act
                as
                Treasury Dealer for this purpose or ceases to be a primary U.S. Government
                securities dealer, another nationally recognized investment banking
                firm
                that is a primary U.S. Government securities dealer specified by
                Citigroup
                Inc. for these purposes.

            

    

     

     

    
      	
               

            	
              29.

            	
              "Treasury
                Price" means the bid-side price for the Treasury Security as of the
                third
                trading day preceding the Redemption Date, as set forth in the daily
                statistical release (or any successor release) published by the Wall
                Street Journal in the table entitled “Treasury Bonds, Notes, and Bills,”
                as determined by the Treasury Dealer except that: (i) if that release
                (or
                any successor release) is not published or does not contain that
                price
                information on that trading day; or (ii) if the Treasury Dealer determines
                that the price information is not reasonably reflective of the actual
                bid-side price of the Treasury Security prevailing at 3:30 p.m.,
                New York
                City time, on that trading day, then Treasury Price will instead
                mean the
                bid-side price for the Treasury Security at or around 3:30 p.m.,
                New York
                City time, on that trading day (expressed on a next trading day settlement
                basis) as determined by the Treasury Dealer through such alternative
                means
                as commercially reasonable under the
                circumstances.

            

    

     

     

    
      	
               

            	
              30.

            	
              "Treasury
                Rate" means the semi-annual equivalent yield to maturity of a Treasury
                Security that corresponds to the Treasury Price (calculated in accordance
                with standard market practice and computed as of the second trading
                day
                immediately preceding the redemption
                date).

            

    

     

     

    
      	
               

            	
              31.

            	
              "Treasury
                Security" means the United States Treasury security that the Treasury
                Dealer determines would be appropriate to use, at the time of
                determination and in accordance with standard market practice, in
                pricing
                the Notes being redeemed in a tender offer based on a spread to United
                States Treasury yields.

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