Document:

Form of Note

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

							
	No. R-1	 	 	 	 	 	INITIAL PRINCIPAL AMOUNT
	CUSIP 17308C106	 	 	 	 	 	REPRESENTED $72,100,000
	ISIN: US17308C1062	 	 	 	 	 	representing 7,210,000 ELKS ($10 per ELKS)

  
 CITIGROUP FUNDING INC.

  
 6.75% Equity Linked Securities (ELKS®) Based Upon the Common Stock of 
 The Home Depot, Inc. Due June 30, 2006 
  
 Citigroup Funding Inc., a Delaware corporation (hereinafter referred to as the “Company”, which term includes any successor corporation
under the Indenture herein referred to), for value received and on condition that this Note is not redeemed by the Company prior to June 30, 2006 (the “Stated Maturity Date”), hereby promises to pay to CEDE & CO., or its
registered assigns, the Maturity Payment (as defined below), on the Stated Maturity Date. This Note will pay semi-annual coupon payments, is not subject to any sinking fund, is not subject to redemption at the option of the holder thereof prior to
the Stated Maturity Date, and is not subject to the defeasance provisions of the Indenture. The payments on this note are fully and unconditionally guaranteed by Citigroup Inc., a Delaware corporation (the “Guarantor”). 

 
 Payment of the Maturity Payment with respect to this Note shall be made
upon presentation and surrender of this Note at the corporate trust office of the Trustee in the Borough of Manhattan, The City and State of New York, in such coin or currency of the United States as at the time of payment is legal tender for
payment of public and private debts or, if applicable, in the common stock of The Home Depot, Inc. (“Home Depot”). 
  
 This Note is one of the series of 6.75% Equity Linked Securities Based Upon the Common Stock of The Home Depot, Inc. Due June 30, 2006 (the
“ELKS”). 

 COUPON 
  
 A coupon of $0.3394 per ELKS will be paid in cash on December 30, 2005 and a coupon of $0.3375 per ELKS will be paid in cash on June 30, 2006. The
December 30, 2005 coupon will be composed of $0.1852 of interest and a partial payment of an option premium in the amount of $0.1542. The June 30, 2006 coupon will be composed of $0.1842 of interest and a partial payment of an option premium in the
amount of $0.1533. Coupon payments will be payable to the persons in whose names the ELKS are registered at the close of business on the fifth Business Day preceding each Coupon Payment Date. If a Coupon Payment Date falls on a day that is not a
Business Day, the coupon payment to be made on such Coupon Payment Date will be made on the next succeeding Business Day with the same force and effect as if made on such Coupon Payment Date, and no additional interest will accrue as a result of
such delayed payment. 
  
 “Business Day” means any day
that is not a Saturday, a Sunday or a day on which securities exchanges or banking institutions or trust companies in the City of New York are authorized or obligated by law or executive order to close. 
  
 The interest portion of the coupon will represent interest accruing at a rate
of 3.68% per annum from June 29, 2005 or from the most recent Coupon Payment Date to which the interest portion of the coupon has been paid or provided for until maturity. The interest portion of the coupon will be computed on the basis of a 360-day
year of twelve 30-day months. 
  
 PAYMENT AT MATURITY 
  
 On the Stated Maturity Date, holders of the ELKS will receive for each ELKS
the Maturity Payment described below. 
  
 DETERMINATION OF THE MATURITY PAYMENT

  
 The Maturity Payment for each ELKS will equal either:

  

	 	•	 	a number of shares of Home Depot common stock equal to the Exchange Ratio, if the Trading Price of Home Depot common stock on any Trading Day after June 29, 2005 up to and including
the third Trading Day before the Stated Maturity Date (whether intra-day or at the close of trading on any day) is less than or equal to $31.55 (approximately 82.5% of the Initial Share Price), which price will be referred to as the “Downside
Trigger Price,” or 

  

	 	•	 	$10 in cash. 

  
 In lieu of any fractional share of Home Depot common stock otherwise payable in respect of any ELKS, at the Stated Maturity Date, the holder of this Note will receive an amount in cash equal to the value of such
fractional share. The number of full shares of Home Depot common stock, and any cash in lieu of a fractional share, to be delivered at the Stated Maturity Date to the holder of this Note will be calculated based on the aggregate number of ELKS held
by such holder. 

 The “Initial Share Price” equals $38.24, the price per share of Home Depot common stock at the
market close on June 24, 2005. 
  
 The “Exchange Ratio”
equals 0.26151. 
  
 A “Market Disruption Event” means
the occurrence or existence of any suspension of or limitation imposed on trading (by reason of movements in price exceeding limits permitted by any exchange or market or otherwise) of, or the unavailability, through a recognized system of public
dissemination of transaction information, of accurate price, volume or related information in respect of, (1) the shares of Home Depot common stock (or any other security for which a Trading Price or Closing Price must be determined) on any exchange
or market, or (2) any options contracts or futures contracts relating to the shares of Home Depot common stock (or other security), or any options on such futures contracts, on any exchange or market if, in each case, in the determination of the
calculation agent, any such suspension, limitation or unavailability is material. 
  
 A “Trading Day” means a day, as determined by the calculation agent, on which trading is generally conducted (or was scheduled to have been generally conducted, but for the occurrence of a Market Disruption
Event) on the New York Stock Exchange, the American Stock Exchange, the Nasdaq National Market, the Chicago Mercantile Exchange and the Chicago Board Options Exchange, and in the over-the-counter market for equity securities in the United States.

  
 The “Trading Price” of Home Depot common stock or
any other capital stock on any date of determination will be (1) if the common stock or capital stock is listed on a national securities exchange on that date of determination, any reported sale price, regular way, of the principal trading session
on that date on the principal U.S. exchange on which the common stock or capital stock is listed or admitted to trading, (2) if the common stock or capital stock is not listed on a national securities exchange on that date of determination, or if
the reported sale price on such exchange is not obtainable (even if the common stock or capital stock is listed or admitted to trading on such exchange), and the common stock or capital stock is quoted on the Nasdaq National Market, any reported
sale price of the principal trading session on that date as reported on the Nasdaq, and (3) if the common stock or capital stock is not quoted on the Nasdaq on that date of determination, or if the reported sale price on the Nasdaq is not obtainable
(even if the common stock or capital stock is quoted on the Nasdaq), any reported sale price of the principal trading session on the over-the-counter market on that date as reported on the OTC Bulletin Board, the National Quotation Bureau or a
similar organization. The determination of the Trading Price by the calculation agent in the event of a Market Disruption Event may be deferred by the calculation agent for up to five consecutive Trading Days on which a Market Disruption Event is
occurring, but not past the Trading Day prior to the Stated Maturity Date. If no reported sale price of the principal trading session is available pursuant to clauses (1), (2) or (3) above or if there is a Market Disruption Event, the Trading Price
on any date of determination, unless deferred by the calculation agent as described in the preceding sentence, will be the arithmetic mean, as determined by the calculation agent, of the bid prices of the common stock or capital stock obtained from
as many dealers in such stock (which may include Citigroup Global Markets Inc. or any of our other subsidiaries or affiliates), but not exceeding three such dealers, as will 

 make such bid prices available to the calculation agent. A security “quoted on the Nasdaq National Market” will
include a security included for listing or quotation in any successor to such system and the term “OTC Bulletin Board” will include any successor to such service. 
  
 DILUTION ADJUSTMENTS 
  
 If The Home Depot, Inc., after the closing date of the offering of the ELKS, 
  
 (1) pays a stock dividend or makes a distribution with respect to its common stock in shares of the stock, 
  
 (2) subdivides or splits the outstanding shares of its common stock into a
greater number of shares, 
  
 (3) combines the outstanding shares
of the common stock into a smaller number of shares, or 
  
 (4)
issues by reclassification of shares of its common stock any shares of other common stock of The Home Depot, Inc., 
  
 then, in each of these cases, the Exchange Ratio will be multiplied by a dilution adjustment equal to a fraction, the numerator of which will be the number of shares of
common stock outstanding immediately after the event, plus, in the case of a reclassification referred to in (4) above, the number of shares of other common stock of The Home Depot, Inc., and the denominator of which will be the number of shares of
common stock outstanding immediately before the event. The Initial Share Price and the Downside Trigger Price will also be adjusted in that case in the manner described below. 
  
 If The Home Depot, Inc., after the closing date, issues, or declares a record date in respect of an issuance of, rights or
warrants to all holders of its common stock entitling them to subscribe for or purchase shares of its common stock at a price per share less than the Then-Current Market Price of the common stock, other than rights to purchase common stock pursuant
to a plan for the reinvestment of dividends or interest, then, in each case, the Exchange Ratio will be multiplied by a dilution adjustment equal to a fraction, the numerator of which will be the number of shares of common stock outstanding
immediately before the adjustment is effected, plus the number of additional shares of common stock offered for subscription or purchase pursuant to the rights or warrants, and the denominator of which will be the number of shares of common stock
outstanding immediately before the adjustment is effected by reason of the issuance of the rights or warrants, plus the number of additional shares of common stock which the aggregate offering price of the total number of shares of common stock
offered for subscription or purchase pursuant to the rights or warrants would purchase at the Then-Current Market Price of the common stock, which will be determined by multiplying the total number of shares so offered for subscription or purchase
by the exercise price of the rights or warrants and dividing the product obtained by the Then-Current Market Price. To the extent that, after the expiration of the rights or warrants, the shares of common stock offered thereby have not been
delivered, the Exchange Ratio will be further adjusted to equal the Exchange Ratio which would 

 have been in effect had the adjustment for the issuance of the rights or warrants been made upon the basis of delivery of
only the number of shares of common stock actually delivered. The Initial Share Price and the Downside Trigger Price will also be adjusted in that case in the manner described below. 
  
 If The Home Depot, Inc., after the closing date, declares or pays a dividend or makes a distribution to all holders of the
common stock of any class of its capital stock, the capital stock of one or more of its subsidiaries, evidences of its indebtedness or other non-cash assets, excluding any dividends or distributions referred to in the above paragraph and excluding
any issuance or distribution to all holders of its common stock, in the form of Marketable Securities, of capital stock of one or more of its subsidiaries, or issues to all holders of its common stock rights or warrants to subscribe for or purchase
any of its or one or more of its subsidiaries’ securities, other than rights or warrants referred to in the above paragraph, then, in each of these cases, the Exchange Ratio will be multiplied by a dilution adjustment equal to a fraction, the
numerator of which will be the Then-Current Market Price of one share of the common stock, and the denominator of which will be the Then-Current Market Price of one share of the common stock, less the fair market value (as determined by a nationally
recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final) as of the time the adjustment is effected of the portion of the capital stock, assets, evidences of indebtedness, rights or
warrants so distributed or issued applicable to one share of common stock. The Initial Share Price and the Downside Trigger Price will also be adjusted in that case in the manner described below. If any capital stock declared or paid as a dividend
or otherwise distributed or issued to all holders of Home Depot common stock consists, in whole or in part, of Marketable Securities, then the fair market value of such Marketable Securities will be determined by the calculation agent by reference
to the Trading Price of such capital stock. The fair market value of any other distribution or issuance referred to in this paragraph will be determined by a nationally recognized independent investment banking firm retained for this purpose by
Citigroup Funding, whose determination will be final. 
  
 Notwithstanding the foregoing, in the event that, with respect to any dividend or distribution to which the above paragraph would otherwise apply, the denominator in the fraction referred to in the above formula is less than $1.00 or is a
negative number, then the Company may, at its option, elect to have the adjustment provided by the above paragraph not be made and in lieu of this adjustment, the Trading Price of Home Depot common stock on any Trading Day thereafter up to and
including the third Trading Day before the Stated Maturity Date will be deemed to be equal to the fair market value of the capital stock, evidences of indebtedness, assets, rights or warrants (determined, as of the date this dividend or distribution
is made, by a nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final) so distributed or issued applicable to one share of Home Depot common stock and, if the Trading
Price of Home Depot common stock on any Trading Day thereafter, up to and including the third Trading Day before the Stated Maturity Date, is less than or equal to approximately 82.5% of the Initial Share Price, each holder of the ELKS will have the
right to receive at maturity cash in an amount per ELKS equal to the Exchange Ratio multiplied by such fair market value. 

 If The Home Depot, Inc., after the closing date, declares a record date in respect of a distribution of
cash, other than any Permitted Dividends described below, any cash distributed in consideration of fractional shares of common stock and any cash distributed in a Reorganization Event referred to below, by dividend or otherwise, to all holders of
its common stock, or makes an Excess Purchase Payment, then the Exchange Ratio will be multiplied by a dilution adjustment equal to a fraction, the numerator of which will be the Then-Current Market Price of the common stock, and the denominator of
which will be the Then-Current Market Price of the common stock on the record date less the amount of the distribution applicable to one share of common stock which would not be a Permitted Dividend, or, in the case of an Excess Purchase Payment,
less the aggregate amount of the Excess Purchase Payment for which adjustment is being made at the time divided by the number of shares of common stock outstanding on the record date. The Initial Share Price and the Downside Trigger Price will also
be adjusted in that case in the manner described below. 
  
 For
the purposes of these adjustments: 
  
 A “Permitted
Dividend” is any cash dividend in respect of Home Depot common stock, other than a cash dividend that exceeds the immediately preceding cash dividend, and then only to the extent that the per share amount of this dividend results in an
annualized dividend yield on the common stock in excess of 10%. 
  
 An “Excess Purchase Payment” is the excess, if any, of (x) the cash and the value (as determined by a nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination will be
final) of all other consideration paid by Home Depot with respect to one share of common stock acquired in a tender offer or exchange offer by Home Depot, over (y) the Then-Current Market Price of the common stock. 
  
 Notwithstanding the foregoing, in the event that, with respect to any
dividend, distribution or Excess Purchase Payment to which the sixth paragraph in this section would otherwise apply, the denominator in the fraction referred to in the formula in that paragraph is less than $1.00 or is a negative number, then the
Company may, at its option, elect to have the adjustment provided by the sixth paragraph in this section not be made and in lieu of this adjustment, the Trading Price of Home Depot common stock on any Trading Day thereafter up to and including the
third Trading Day before the Stated Maturity Date will be deemed to be equal to the sum of the amount of cash and the fair market value of other consideration (determined, as of the date this dividend or distribution is made, by a nationally
recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final) so distributed or applied to the acquisition of the common stock in the tender offer or exchange offer applicable to one
share of Home Depot common stock and, if the Trading Price of Home Depot common stock on any Trading Day thereafter, up to and including the third Trading Day before the Stated Maturity Date, is less than or equal to $31.55 (approximately 82.5% of
the Initial Share Price), each holder of the ELKS will have the right to receive at maturity cash in an amount per ELKS equal to the Exchange Ratio multiplied by such sum. 

 If any adjustment is made to the Exchange Ratio as set forth above, an adjustment will also be made to
the Initial Share Price and the Downside Trigger Price. The required adjustment will be made by dividing the Initial Share Price and the Downside Trigger Price by the relevant dilution adjustment. 
  
 If The Home Depot, Inc., after the closing date, issues or makes a
distribution to all holders of its common stock of the capital stock of one or more of its subsidiaries, in each case in the form of Marketable Securities, and if the Trading Price at any time after the date of this prospectus supplement up to and
including the third Trading Day before maturity (whether intra-day or at the close of trading on any day) is less than or equal to $31.55 (approximately 82.5% of the Initial Share Price), then, in each of these cases, each holder of the ELKS will
receive at maturity for each ELKS a combination of shares of Home Depot common stock equal to the Exchange Ratio and a number of shares of such Home Depot subsidiaries’ capital stock equal to the Exchange Ratio times the number of shares of
such subsidiaries’ capital stock distributed per share of Home Depot common stock. Following the record date for an event described in this paragraph, the “Trading Price” will equal the Trading Price of Home Depot common stock, plus
the Trading Price of such subsidiaries’ capital stock times the number of shares of such subsidiaries’ capital stock distributed per share of Home Depot common stock. In the event a distribution pursuant to this paragraph occurs, following
the record date for such distribution, the adjustment described in “—Dilution Adjustments” will also apply to such subsidiaries’ capital stock if any of the events described in “—Dilution Adjustments” occurs with
respect to such capital stock. 
  
 Each dilution adjustment will
be effected as follows: 
  

	 	•	 	in the case of any dividend, distribution or issuance, at the opening of business on the Business Day next following the record date for determination of holders of Home Depot
common stock entitled to receive this dividend, distribution or issuance or, if the announcement of this dividend, distribution, or issuance is after this record date, at the time this dividend, distribution or issuance was announced by Home Depot,

  

	 	•	 	in the case of any subdivision, split, combination or reclassification, on the effective date of the transaction, 

  

	 	•	 	in the case of any Excess Purchase Payment for which Home Depot announces, at or prior to the time it commences the relevant share repurchase, the repurchase price per share for
shares proposed to be repurchased, on the date of the announcement, and 

  

	 	•	 	in the case of any other Excess Purchase Payment, on the date that the holders of the repurchased shares become entitled to payment in respect thereof. 

  
 All dilution adjustments will be rounded upward or downward to the nearest
1/10,000th or, if there is not a nearest 1/10,000th, to the next lower 1/10,000th. No adjustment in the Exchange Ratio will be required unless the adjustment would require an increase or decrease of 

 at least one percent therein, provided, however, that any adjustments which by reason of this sentence are not required
to be made will be carried forward (on a percentage basis) and taken into account in any subsequent adjustment. If any announcement or declaration of a record date in respect of a dividend, distribution, issuance or repurchase requiring an
adjustment as described herein is subsequently canceled by Home Depot, or this dividend, distribution, issuance or repurchase fails to receive requisite approvals or fails to occur for any other reason, then, upon the cancellation, failure of
approval or failure to occur, the Exchange Ratio, the Initial Share Price and the Downside Trigger Price will be further adjusted to the Exchange Ratio, the Initial Share Price and the Downside Trigger Price which would then have been in effect had
adjustment for the event not been made. If a Reorganization Event described below occurs after the occurrence of one or more events requiring an adjustment as described herein, the dilution adjustments previously applied to the Exchange Ratio will
not be rescinded but will be applied to the Reorganization Event as provided for below. 
  
 The “Then-Current Market Price” of the common stock, for the purpose of applying any dilution adjustment, means the average Closing Price per share of common stock for the ten Trading Days immediately before
this adjustment is effected or, in the case of an adjustment effected at the opening of business on the Business Day next following a record date, immediately before the earlier of the date the adjustment is effected and the related Ex-Date. For
purposes of determining the Then-Current Market Price, the determination of the Closing Price by the calculation agent in the event of a Market Disruption Event, as described in the definition of Closing Price, may be deferred by the calculation
agent for up to five consecutive Trading Days on which a Market Disruption Event is occurring, but not past the Trading Day prior to the Stated Maturity Date. 
  

The “Closing Price” of Home Depot common stock (or any other security for which a Closing Price must be determined) on any date of
determination will be (1) if the common stock or other security is listed on a national securities exchange on that date of determination, the closing sale price or, if no closing sale price is reported, the last reported sale price on that date on
the principal U.S. exchange on which the common stock or other security is listed or admitted to trading, (2) if the common stock or other security is not listed on a national securities exchange on that date of determination, or if the closing sale
price or last reported sale price is not obtainable (even if the common stock or other security is listed or admitted to trading on such exchange), and the common stock or other security is quoted on the Nasdaq National Market, the closing sale
price or, if no closing sale price is reported, the last reported sale price on that date as reported on the Nasdaq, and (3) if the common stock or other security is not quoted on the Nasdaq on that date of determination or, if the closing sale
price or last reported sale price is not obtainable (even if the common stock or other security is quoted on the Nasdaq), the last quoted bid price for the common stock or other security in the over-the-counter market on that date as reported by the
OTC Bulletin Board, the National Quotation Bureau or a similar organization. The determination of the Closing Price by the calculation agent in the event of a Market Disruption Event may be deferred by the calculation agent for up to five
consecutive Trading Days on which a Market Disruption Event is occurring, but not past the Trading Day prior to the Stated Maturity Date. If no closing sale price or last reported sale price is available pursuant to clauses (1), (2) or (3) above or
if there is a Market Disruption Event, the Closing Price on any date of determination, unless deferred by the calculation agent as described in the 

 preceding sentence, will be the arithmetic mean, as determined by the calculation agent, of the bid prices of the common
stock or other security obtained from as many dealers in such stock (which may include Citigroup Global Markets Inc. or any of our other subsidiaries or affiliates), but not exceeding three such dealers, as will make such bid prices available to the
calculation agent. A security “quoted on the Nasdaq National Market” will include a security included for listing or quotation in any successor to such system and the term “OTC Bulletin Board” will include any successor to such
service. If, during any period of ten Trading Days used to calculate the Then-Current Market Price, there occurs any event requiring an adjustment to be effected as described herein, then the Closing Price for each Trading Day in such period of ten
Trading Days occurring prior to the day on which such adjustment is effected will be adjusted by being divided by the relevant dilution adjustment. 
  
 The “Ex-Date” relating to any dividend, distribution or issuance is the first date on which the shares of the common stock trade in the regular
way on their principal market without the right to receive this dividend, distribution or issuance. 
  
 In the event of any of the following “Reorganization Events”: 
  

	 	•	 	any consolidation or merger of Home Depot, or any surviving entity or subsequent surviving entity of Home Depot, with or into another entity, other than a merger or consolidation in
which Home Depot is the continuing corporation and in which the common stock outstanding immediately before the merger or consolidation is not exchanged for cash, securities or other property of Home Depot or another issuer,

  

	 	•	 	any sale, transfer, lease or conveyance to another corporation of the property of Home Depot or any successor as an entirety or substantially as an entirety,

  

	 	•	 	any statutory exchange of securities of Home Depot or any successor of Home Depot with another issuer, other than in connection with a merger or acquisition, or

  

	 	•	 	any liquidation, dissolution or winding up of Home Depot or any successor of Home Depot, 

  
 the Trading Price of Home Depot common stock on any Trading Day thereafter up to and including the third Trading Day before the Stated
Maturity Date will be deemed to be equal to the Transaction Value. 
  
 The “Transaction Value” will be the sum of: 
  
 (1) for any cash received in a Reorganization Event, the amount of cash received per share of common stock, 
  
 (2) for any property other than cash or Marketable Securities received in a Reorganization Event, an amount equal to the market value on the date the
Reorganization Event 

 is consummated of that property received per share of common stock, as determined by a nationally recognized independent
investment banking firm retained for this purpose by the Company, whose determination will be final, and 
  
 (3) for any Marketable Securities received in a Reorganization Event, an amount equal to the Closing Price per share of these Marketable Securities on the
applicable Trading Day multiplied by the number of these Marketable Securities received for each share of common stock. 
  
 “Marketable Securities” are any perpetual equity securities or debt securities with a stated maturity after the maturity date, in each case that
are listed on a U.S. national securities exchange or reported by the Nasdaq National Market. The number of shares of any equity securities constituting Marketable Securities included in the calculation of Transaction Value pursuant to clause (3)
above will be adjusted if any event occurs with respect to the Marketable Securities or the issuer of the Marketable Securities between the time of the Reorganization Event and maturity that would have required an adjustment as described above, had
it occurred with respect to Home Depot common stock or Home Depot. Adjustment for these subsequent events will be as nearly equivalent as practicable to the adjustments described above. 
  
 If Home Depot common stock has been subject to a Reorganization Event and the Trading Price of Home Depot common stock on
any Trading Day thereafter, up to and including the third Trading Day before the Stated Maturity Date, is less than or equal to $31.55 (approximately 82.5% of the Initial Share Price), then each holder of the ELKS will have the right to receive per
$10 principal amount of ELKS (i) cash in an amount equal to the Exchange Ratio multiplied by the sum of clauses (1) and (2) in the definition of “Transaction Value” above and (ii) the number of Marketable Securities received for each share
of stock in the Reorganization Event multiplied by the Exchange Ratio. 
  
 GENERAL

  
 This Note is one of a duly authorized issue of Debt
Securities of the Company, issued and to be issued in one or more series under a Senior Debt Indenture, dated as of June 1, 2005 (the “Indenture”), among the Company, the Guarantor, and The Bank of New York, as trustee (the
“Trustee”, which term includes any successor trustee under the Indenture), to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company,
the Guarantor, the Trustee and the holders of the ELKS, and the terms upon which the ELKS are, and are to be, authenticated and delivered. 
  
 In case an Event of Default with respect to the ELKS shall have occurred and be continuing, the principal of the ELKS may be declared due and payable in
the manner and with the effect provided in the Indenture. In such case, the amount declared due and payable upon any acceleration permitted by the Indenture will be determined by the calculation agent and will be equal to, with respect to this Note,
the Maturity Payment calculated as though the Stated Maturity Date of this Note were the date of early repayment. In case of default at Maturity of this Note, this Note shall bear interest, payable upon demand of the beneficial owners of this Note
in accordance with the terms of the ELKS, from and after Maturity through the date when 

 
payment of such amount has been made or duly provided for, at the rate of 4.25% per annum on the unpaid amount (or the cash equivalent of such unpaid amount)
due. 
  
 The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Company, the Guarantor and the rights of the holders of the Debt Securities of each series to be affected under the Indenture at any time by the Company, the
Guarantor and a majority in aggregate principal amount of the Debt Securities at the time Outstanding of each series affected thereby. The Indenture also contains provisions permitting the holders of specified percentages in aggregate principal
amount of the Debt Securities of any series at the time Outstanding, on behalf of the holders of all Debt Securities of such series, to waive compliance by the Company and the Guarantor with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
  
 The holder of this Note may not enforce such holder’s rights pursuant to the Indenture or the Notes except as provided in the Indenture. No reference
herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, or, failing which, the Guarantor to pay the Maturity Payment with respect to this Note, and to pay any interest on any
overdue amount thereof at the time, place and rate, and in the coin or currency, herein prescribed. 
  
 All terms used in this Note which are defined in the Indenture but not in this Note shall have the meanings assigned to them in the Indenture. 

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

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

  

			
	CITIGROUP FUNDING INC.
		
	By:	 	 /s/ Geoffrey S. Richards

	Name:	 	Geoffrey S. Richards
	Title:	 	Vice President and Assistant Treasurer

  
 Corporate Seal 
 Attest: 
  

			
	By:	 	 /s/ Douglas C. Turnbull

	Name:	 	Douglas C. Turnbull
	Title:	 	Assistant Secretary
	
	Dated June 29, 2005
	
	CERTIFICATE OF AUTHENTICATION
	 This is one of the Notes referred to in the within-mentioned Indenture.

	
	The Bank of New York,
	as Trustee
		
	By:	 	 /s/ Geovanni Barris

	 	 	Authorized SignatoryFIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

 Exhibit 10.61 
  
 FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT 
  
 This First Amendment (this “Amendment”) is made as of this 16th day of March, 2005 to that certain Loan and
Security Agreement dated December 14, 2004 (the “Loan Agreement”) among Citizens Bank of Massachusetts (the “Bank”) and each of VIISAGE TECHNOLOGY, INC., a Delaware corporation, TRANS DIGITAL TECHNOLOGIES CORPORATION, a Delaware
corporation, IMAGING AUTOMATION, INC., a Delaware corporation and BIOMETRICA SYSTEMS, INC., a New Hampshire corporation (hereinafter collectively referred to as the “Borrower”). Capitalized terms used and not defined in this Amendment
shall have the meanings ascribed to them in the Loan Agreement. 
  
 RECITALS 
  
 Borrower has advised Bank that
Borrower was not in compliance with the Minimum EBITDA covenant contained in Section 15(c) of the Loan Agreement as of its fiscal year end December 31, 2004 and has requested that Bank agree to waive compliance with such covenant. Borrower has
further requested that Bank agree to (i) modify certain other financial covenants contained in Section 15 of the Loan Agreement and (ii) make certain other modifications to the Loan Agreement. 
  
 Bank is amenable to so waiving compliance with the Minimum EBITDA Covenant at
December 31, 2004 and to so modifying the Loan Agreement, but only on the terms and conditions contained in this Amendment. 
  
 AGREEMENT 
  
 In consideration of the foregoing, of the undertakings of Borrower and Bank herein and for other good and valuable consideration, receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows: 
  
 1. Section 5(c) of the Loan Agreement is hereby deleted in its entirety and replaced with the following text: 
  
 “(c) The term “Credit Limit” as used herein shall mean an amount equal to Twenty-Five Million and 00/100 ($25,000,000.00) Dollars,
up to Ten Million ($10,000,000.00) Dollars of which (the “L/C Limit”) shall be available for standby Letters of Credit, as provided below, and up to Two Million and 00/100 ($2,000,000.00) Dollars of which (the “FX Limit”) shall
be available as a reserve for settlement risk on foreign exchange transactions. For purposes of the foregoing, the credit exposure to be reserved against the FX Limit with respect to any foreign exchange contract shall be equal to the Applicable
Percentage of the face amount of such foreign exchange contract (expressed in US Dollars). The Applicable Percentage is a percentage determined by Bank in its discretion from time to time with respect to each foreign exchange transaction based upon
the currency and length of contract, and is initially agreed to be up to 15.0%. Thus, the amount reserved against the FX Limit for a forward contract for $1 Million in yen would be up to $150,000.00.” 
  
 2. Section 5(f) of the Loan Agreement is hereby deleted in its entirety and
replaced with the following text: 
  
 “(f) Upon application
by Borrower for a Letter of Credit, Borrower shall execute and deliver to Bank an Application and Agreement for a Letter of Credit upon such terms and conditions as Bank may then require which shall set forth the specific terms and pricing of such
Letter of Credit. In the absence of any such agreement, Borrower shall pay to Bank on DEMAND an issuance fee of 1.50 % per annum, (1.25% per annum issuance fee in the case of cash-secured Letters of Credit) with respect to each Letter of
Credit.” 
  
 3. Section 13(d) of the Loan Agreement is hereby
deleted in its entirety and replaced with the following text: 
  
 “(d) Borrower shall deliver to Bank at the time of each request for a Loan, Letter of Credit or foreign exchange transaction under this Agreement: (i) a completed and signed Notice of Borrowing in the form annexed 

  

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as Exhibit 2, (ii) a Covenant Compliance Certificate in the form of Exhibit 3 annexed hereto, showing the supporting calculations evidencing
Borrower’s compliance or non-compliance with the financial covenants contained in this Agreement calculated on a pro forma basis as of the date of the Notice of Borrowing, and (iii) a schedule of all bonded contracts, including the amount of
each bond or letter of credit, the issuer of such bond or letter of credit and the expiration date of each such bond or letter of credit, in such form as shall be agreed between Borrower and Bank.” 
  
 4. Section 15(a) of the Loan Agreement is hereby deleted in its entirety and
replaced with the following text: 
  
 “(a) Modified Quick
Ratio. Permit its Modified Quick Ratio (defined below) to be less than 1.25:1.0 at the fiscal quarter ending April 3, 2005, nor less than 1.15:1.0 at the fiscal quarter ending July 3, 2005, nor less than 1.10:1.0 at the end of any fiscal quarter
thereafter, commencing with the fiscal quarter ending October 2, 2005;” 
  
 5. Section 15(b) of the Loan Agreement is hereby deleted in its entirety and replaced with the following text: 
  
 “(b) Adjusted Modified Quick Ratio. Permit its Adjusted Modified Quick Ratio (defined below) to be less than .90:1.0 at the end of the fiscal
quarters ending April 3, 2005 and July 3, 2005, nor less than .85:1.0 at the end of any fiscal quarter thereafter, commencing October 2, 2005;” 
  
 6. Section 15(c) of the Loan Agreement is hereby deleted in its entirety and replaced with the following text: 
  
 “(c) Minimum EBITDA. Permit its EBITDA to be less than
$750,000.00 for the discrete fiscal quarter ending April 3, 2005, nor less than $1,500,000.00 for the discrete fiscal quarter ending July 3, 2005, nor less than $2,000,000.00 for the discrete fiscal quarter ending October 2, 2005, nor less than
$2,500,000.00 for the discrete fiscal quarter ending December 31, 2005 or any fiscal quarter thereafter;” 
  
 7. Section 15(d) of the Loan Agreement is hereby deleted in its entirety and replaced with the following text: 
  
 “(d) Total Funded Debt to EBITDA. Permit the ratio of its total
indebtedness (including senior and subordinate indebtedness and payments due on capitalized leases) to its EBITDA to be more than: 1.50:1.0 for the discrete fiscal quarter ending April 3, 2005, the trailing six month period ending July 3, 2005, the
trailing nine month period ending October 2, 2005 or the trailing twelve month period ending on any fiscal quarter end thereafter, commencing December 31, 2005;” 
  
 8. Section 15(e) of the Loan Agreement is hereby deleted in its entirety and replaced with the following text: 

 
 “(e) Fixed Charge Coverage. Permit the ratio of its cash flow
to its fixed charges to be less than 2.0: 1.0 for the discrete fiscal quarter ending April 3, 2005, the trailing six month period ending July 3, 2005, the trailing nine month period ending October 2, 2005 or the trailing twelve month period ending
on any fiscal quarter end thereafter, commencing December 31, 2005;” 
  
 9. Borrowers shall pay an amendment fee to Bank in the amount of $31,125.00 which fee shall be due and payable on the date of this Amendment and which shall be deemed to be fully earned and non-refundable as of the
date hereof. 
  
 10. Borrowers acknowledge and agree that as of
March 15, 2005 there were no outstanding Loans, Letters of Credit or foreign exchange contracts. Borrowers represent and warrant that all of the representations and warranties made by Borrowers in the Loan Agreement and other Loan Documents are and
continue to be true and correct on the date hereof, except to the extent that any of such representations and warranties relate by their terms solely to a date prior to date of this Amendment. 
  
 11. Borrowers further represent and warrant that this Amendment is a valid
and binding obligation of Borrowers, enforceable against Borrowers in accordance with its terms, except as may be affected by bankruptcy and other similar laws of general application affecting the rights and remedies of creditors. 
  

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 12. Borrowers shall promptly execute and deliver such further documents, instruments and agreements and
take such further action as Bank may reasonably request, in its sole discretion, to effect the purposes of this Amendment and the Loan Agreement and other Loan Documents, including, but not limited to the execution and delivery of all documents
necessary or reasonably required by Bank to ensure that Bank has perfected liens on all assets of Borrowers to the extent originally provided under the Loan Agreement and the other Loan Documents. Borrowers hereby appoint any officer or agent of
Bank as Borrowers’ true and lawful attorney in fact, with power of substitution to endorse the name of Borrowers or any of their officers or agents in such regard, exercisable by Bank during the continuance of an Event of Default. 

 
 13. Except as otherwise expressly provided in this Amendment, nothing in
this Amendment shall extend to or affect in any way any of the Obligations or any of the rights and remedies of Bank arising under the Loan Agreement and other Loan Documents, and Bank shall not be deemed to have waived any or all of such rights and
remedies with respect to any Event of Default or event or condition which, with notice or the lapse of time, would become an Event of a Default and which, upon Borrower’s execution and delivery of this Amendment, might otherwise exist or which
might hereafter occur. 
  
 14. By execution of this Amendment,
each of Borrowers acknowledges and confirms that it does not, as of the date of this Amendment, have any offsets, defenses or claims against Bank or any of its officers, agents, directors or employees whether asserted or unasserted to their
respective Obligations. 
  
 15. To the extent possible and except
for the specific changes to the Loan Agreement effected hereby, this Amendment shall be construed to be consistent with the provisions of the Loan Agreement. In the event of any inconsistency between the provisions of this Amendment and any other
document (including, without limitation, any Loan Document), instrument, or agreement entered into by and between Bank and Borrowers, the provisions of this Amendment shall govern and control. This Amendment shall be binding upon Bank and Borrowers,
and their representatives, successors, and assigns, and shall inure to the benefit of Bank and Borrowers and their respective successors and assigns. This Amendment and all documents, instruments, and agreements executed in connection herewith
incorporate all of the discussions and negotiations among Borrowers and Bank, either expressed or implied, concerning the matters included herein and in such other documents, instruments and agreements, any statute, custom, or usage to the contrary
notwithstanding. No such discussions or negotiations shall limit, modify, or otherwise affect the provisions hereof. No modification, amendment, or waiver of any provision of this Amendment, or any provision of any other document, instrument, or
agreement between any of Borrowers and Bank shall be effective unless executed in writing by the party to be charged with such modification, amendment, or waiver. 
  
 16. Borrowers acknowledge and agree that they shall immediately pay to Bank the full amount of all reasonable out-of-pocket
costs and expenses of Bank incurred by Bank in preparation and documentation of this Amendment and all documents ancillary hereto or incurred by Bank after the date of this Amendment in connection with administration of the Obligations or
enforcement of any rights of Bank under the Loan Agreement and other Loan Documents or otherwise in respect of any of the Obligations. 
  
 17. If any clause or provision of this Amendment is determined to be illegal, invalid or unenforceable under any present or future law by the final
judgment of a court of competent jurisdiction, the remainder of this Amendment will not be affected thereby. It is the intention of the parties that if any such provision is held to be invalid, illegal or unenforceable, there will be added in lieu
thereof an enforceable provision as similar in terms to such provision as is possible, and that such added provision will be legal, valid and enforceable. 
  
 18. This Amendment is delivered to Bank in The Commonwealth of Massachusetts and it is the desire and intention of the parties that this Amendment and the
Loan Documents be in all respects interpreted according to the laws of The Commonwealth of Massachusetts. Borrowers each specifically and irrevocably consent to the personal and subject matter, jurisdiction and venue of any court of The Commonwealth
of Massachusetts sitting in the counties of Suffolk or Middlesex or in the District Court of the United States for the District of Massachusetts with respect to all matters concerning this Amendment or the Loan Documents or the enforcement of any of
the foregoing. 
  

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 19. This Amendment may be executed in one or more counterparts, each of which will be deemed an original
document, but all of which will constitute a single document. This Amendment will not be binding on or constitute evidence of a contract between the parties until such time as a counterpart of this document has been executed by each of the parties
and delivered to Bank. 
  

									
	 WITNESS (to all)
	 	 	 	 BORROWERS:
 VIISAGE TECHNOLOGY,
INC.

					
	 	 	/s/    MARY-JO PORCELLO        	 	 	 	By:	 	/s/    ELLIOT J. MARK        
	 	 	 	 	 	 	 	 	Elliot J. Mark, duly authorized
			
	 	 	 	 	TRANS DIGITAL TECHNOLOGIES CORPORATION
					
	 	 	 	 	 	 	By:	 	/s/    ELLIOT J. MARK        
	 	 	 	 	 	 	 	 	Elliot J. Mark, duly authorized
			
	 	 	 	 	IMAGING AUTOMATION, INC.
					
	 	 	 	 	 	 	By:	 	/s/    ELLIOT J. MARK        
	 	 	 	 	 	 	 	 	Elliot J. Mark, duly authorized
			
	 	 	 	 	BIOMETRICA SYSTEMS, INC.
					
	 	 	 	 	 	 	By:	 	/s/    ELLIOT J. MARK        
	 	 	 	 	 	 	 	 	Elliot J. Mark, duly authorized
			
	 	 	 	 	 BANK:
 CITIZENS BANK OF
MASSACHUSETTS

					
	 	 	 	 	 	 	By:	 	/s/    MARSHALL C.
SUGARMAN        
	 	 	 	 	 	 	 	 	Marshall C. Sugarman, Vice President

  

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