Document:

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                                                                    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 GLOBAL MARKETS HOLDINGS 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 173075 86 2                                REPRESENTED $38,500,000
                                                 representing 3,850,000 SEQUINS
                                                 ($10 per SEQUINS)

                     CITIGROUP GLOBAL MARKETS HOLDINGS INC.
                  7% Select EQUity Indexed NoteS(SM) Based Upon
           the Common Stock of Hewlett-Packard Company Due May 2, 2005

         Citigroup Global Markets Holdings Inc., a New York 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 May 2, 2005
(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 bear quarterly payments of interest, 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.

         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 the
common stock of Hewlett-Packard Company ("Hewlett-Packard").

         This Note is one of the series of 7% Select EQUity Indexed NoteS(SM)
based upon the common stock of Hewlett-Packard Company due May 2, 2005 (the
"SEQUINS").

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INTEREST

         The SEQUINS bear interest at the rate of 7% per annum. Interest will be
paid in cash quarterly on each 2nd day of each February, May, August and
November, commencing on August 2, 2004 (each such date, an "Interest Payment
Date").

         Interest will be payable to the persons in whose names the SEQUINS are
registered at the close of business on the fifth Business Day preceding each
Interest Payment Date. Interest will be computed on the basis of a 360-day year
of twelve 30-day months. If an Interest Payment Date falls on a day that is not
a Business Day, the interest payment to be made on such Interest Payment Date
will be made on the next succeeding Business Day with the same force and effect
as if made on such Interest 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 the 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.

PAYMENT AT MATURITY

         On the Stated Maturity Date, if the Company does not exercise its Call
Option (as described below) prior to or on such date, holders of the SEQUINS
will receive for each SEQUINS the final quarterly interest payment and the
Maturity Payment described below.

DETERMINATION OF THE MATURITY PAYMENT

         The Maturity Payment for each SEQUINS equals a number of shares of
Hewlett-Packard common stock equal to the Exchange Ratio. The Exchange Ratio
equals 0.46147.

         In lieu of any fractional share of Hewlett-Packard common stock
otherwise payable in respect of any SEQUINS, at maturity each holder of a
SEQUINS will receive an amount in cash equal to the value of such fractional
share. The number of full shares of Hewlett-Packard common stock, and any cash
in lieu of a fractional share, to be delivered at maturity to a holder of a
SEQUINS will be calculated based on the aggregate number of SEQUINS held by such
holder.

CALL OPTION

         The Company may exercise its option to call (its "Call Option") the
SEQUINS in whole, but not in part, on any Business Day beginning on November 1,
2004 through and including the Stated Maturity Date (such day being the "Call
Date"). The Company will provide up to 10 Business Days' but no less than five
Business Days' notice (as described below) before the Call Date.

         If the Company exercises its Call Option, holders of the SEQUINS will
receive for each SEQUINS a price in cash (the "Call Price") that, together with
all other payments made on the SEQUINS from the date hereof (the "Issue Date")
to and including the Call Date, will provide a

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yield to call of 12% per annum (compounded annually). The Call Price will be
calculated by determining the amount that, when discounted from the Call Date to
the Issue Date by a discount factor based on an annual yield to call of 12%
(calculated on the basis of a 360-day year of twelve 30-day months, compounded
annually) and added to the present value of all interest payments made to and
including the Call Date discounted to the Issue Date by that same discount
factor, will equal the initial price of the SEQUINS. The present value of each
interest payment on the SEQUINS used to determine the Call Price will be
calculated assuming each payment is made on the calendar day scheduled for that
payment. A delay in payment may arise for reasons such as a scheduled Interest
Payment Date falling on a day that is not a Business Day and, as a result, the
payment being delayed until the next succeeding Business Day. Any such delay
will not be taken into account when calculating the Call Price. The Call Price
will be rounded to the fourth decimal place and will not include the amount of
unpaid interest accrued to and including the Call Date; however, on the Call
Date holders of the SEQUINS will receive the Call Price plus an amount equal to
the accrued and unpaid interest.

         So long as the SEQUINS are represented by this Note and are held on
behalf of DTC, notices relating to the Company's Call Option and all other
notices will be given by delivery to DTC, in which event such notice will be
deemed to have been given to holders of the SEQUINS on the seventh trading day
after the day on which such notice is delivered. If the SEQUINS are no longer
represented by this Note and are not held on behalf of DTC, notices relating to
the Company's Call Option and all other notices will be published in a leading
daily newspaper in the City of New York, which is expected to be The Wall Street
Journal.

DILUTION ADJUSTMENTS

         If Hewlett-Packard, after the closing date of the offering of the
         SEQUINS,

         (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 Hewlett-Packard,

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 such other common stock of Hewlett-Packard, and the denominator of which will
be the number of shares of common stock outstanding immediately before the
event.

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         If Hewlett-Packard, 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.

         If Hewlett-Packard, 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, 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.

         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 Maturity Payment 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 the dilution adjustment would otherwise be
effected as described below, 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 Hewlett-

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Packard common stock and each holder of the SEQUINS will have the right to
receive at maturity cash in an amount per SEQUINS equal to the Exchange Ratio
multiplied by such fair market value.

         If Hewlett-Packard, 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.

         For purposes of these adjustments:

         A "Permitted Dividend" is any quarterly cash dividend in respect of
Hewlett-Packard common stock, other than a quarterly cash dividend that exceeds
the immediately preceding quarterly 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 Hewlett-Packard with respect to one
share of common stock acquired in a tender offer or exchange offer by
Hewlett-Packard, 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 fifth 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 fifth paragraph in this section not be made and in lieu of this adjustment,
the Maturity Payment 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 the
dilution adjustment would otherwise be effected as described below, 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 Hewlett-Packard common stock and each holder of
the SEQUINS will have the right to receive at maturity cash in an amount per
SEQUINS equal to the Exchange Ratio multiplied by such sum.

                                       5
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         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 Hewlett-Packard
                  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
                  Hewlett-Packard;

         -        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
                  Hewlett-Packard 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 Hewlett-Packard, 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 will be further adjusted to the Exchange Ratio which would
then have been in effect had adjustment for the event not been made. If any
Reorganization Event, as 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 new Exchange Ratio 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.

                                       6
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         The "Closing Price" of Hewlett-Packard 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 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 is listed or admitted to
trading, (2) if the common stock 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 is listed or admitted to
trading on such exchange), and the common stock 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 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 is quoted on the Nasdaq), the last quoted bid price for the
common stock in the over-the-counter market on that date as reported by the OTC
Bulletin Board, the National Quotation Bureau or a similar organization. If no
closing sale price or last reported sale price is available pursuant to clauses
(1), (2) or (3) of the preceding sentence 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 paragraph, will be the
arithmetic mean, as determined by the calculation agent, of the bid prices of
the common stock obtained from as many dealers in such stock (which may include
the Company or any of its 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.

         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 "Ex-Date" with respect 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.

         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 Hewlett-Packard common stock on any exchange or
market, or (2) any options contracts or futures contracts relating to the shares
of Hewlett-Packard common stock, 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.

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         In the event of any of the following "Reorganization Events":

         -        any consolidation or merger of Hewlett-Packard, or any
                  surviving entity or subsequent surviving entity of
                  Hewlett-Packard, with or into another entity, other than a
                  merger or consolidation in which Hewlett-Packard 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
                  Hewlett-Packard or another issuer;

         -        any sale, transfer, lease or conveyance to another corporation
                  of the property of Hewlett-Packard or any successor as an
                  entirety or substantially as an entirety;

         -        any statutory exchange of securities of Hewlett-Packard or any
                  successor of Hewlett-Packard with another issuer, other than
                  in connection with a merger or acquisition; or

         -        any liquidation, dissolution or winding up of Hewlett-Packard
                  or any successor of Hewlett-Packard,

each holder of the SEQUINS will have the right to receive a Maturity Payment per
SEQUINS of (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" below and
(ii) the number of Marketable Securities received for each share of stock in the
Reorganization Event multiplied by the Exchange Ratio.

         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 Stock
Market. The number of shares of any equity securities

                                       8
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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
Hewlett-Packard common stock or Hewlett-Packard. Adjustment for these subsequent
events will be as nearly equivalent as practicable to the adjustments described
above.

GENERAL

         This Note is one of a duly authorized issue of debt securities of the
Company (the "Debt Securities"), issued and to be issued in one or more series
under a Senior Debt Indenture, dated as of October 27, 1993, as supplemented by
a First Supplemental Indenture, dated as of November 28, 1997, a Second
Supplemental Indenture, dated as of July 1, 1999, and as further supplemented
from time to time (the "Indenture"), between the Company and The Bank of New
York, as Trustee (the "Trustee", which term includes any successor trustee under
the Indenture), to which Indenture reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the holders of the SEQUINS, and the terms upon
which the SEQUINS are, and are to be, authenticated and delivered.

         If an Event of Default with respect to the SEQUINS shall have occurred
and be continuing, the principal of the SEQUINS 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 SEQUINS, from and after
Maturity through the date when payment of such amount has been made or duly
provided for, at the rate of 2.25% 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 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 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 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 SEQUINS except as provided in the Indenture. No
reference herein to the Indenture and no

                                       9
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provision of this Note or of the Indenture shall alter or impair the obligation
of the Company 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.

                                       10
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         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

                                         CITIGROUP GLOBAL MARKETS HOLDINGS INC.

                                         By:   /s/ Mark I. Kleinman
                                             --------------------------------
                                             Name:  Mark I. Kleinman
                                             Title: Executive Vice President
                                                    and Treasurer

Corporate Seal
Attest:

By:   /s/ Douglas C. Turnbull
    --------------------------------
    Name:  Douglas C. Turnbull
    Title: Assistant Secretary

Dated: April 29, 2004

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 Signatory<PAGE>

                                                                    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 GLOBAL MARKETS HOLDINGS 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 173075 85 4                                   REPRESENTED $89,500,000
                                                    representing 8,950,000 Notes
                                                    ($10 per Note)

                     CITIGROUP GLOBAL MARKETS HOLDINGS INC.
                     Principal-Protected Equity Linked Notes
              Based Upon the S&P 500(R) Index Due October 29, 2009

         Citigroup Global Markets Holdings Inc., a New York 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 October 29,
2009 (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 bear semi-annual payments of interest, 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.

         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.

         This Note is one of the series of 8,950,000 Principal-Protected Equity
Linked Notes Based Upon the S&P 500(R) Index (the "Index") Due October 29, 2009
(the "Notes").

<PAGE>

INTEREST

         The Notes bear interest at the rate of 1.5% per annum. Interest will be
paid in cash semi-annually on each 29th day of each April and October commencing
on October 29, 2004 (each such date, an "Interest Payment Date"). Interest will
be payable to the persons in whose names the Notes are registered at the close
of business on the fifth Business Day preceding each Interest Payment Date.
Interest will be computed on the basis of a 360-day year of twelve 30-day
months. If an Interest Payment Date falls on a day that is not a Business Day,
the interest payment to be made on such Interest Payment Date will be made on
the next succeeding Business Day with the same force and effect as if made on
such Interest 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 the 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.

PAYMENT AT MATURITY

         On the Stated Maturity Date, holders of the Notes will receive for each
Note the Maturity Payment described below.

DETERMINATION OF THE MATURITY PAYMENT

         The Maturity Payment for each Note equals the sum of the initial
principal amount of $10 per Note plus the Interest Distribution Amount.

         The "Interest Distribution Amount" is calculated as follows:

               -    If the Index Return is less than or equal to the Interest
                    Received Percentage, the Interest Distribution Amount will
                    equal zero.

               -    If the Index Return is greater than the Interest Received
                    Percentage, the Interest Distribution Amount will equal the
                    product of will equal the product of:

                       $10 * (Index Return - Interest Received Percentage)

         The "Index Return" will equal the compounded value of the Periodic
         Capped Return for each Reset Period.

         The "Periodic Capped Return" for any Reset Period (including the Reset
         Period ending at maturity) will equal:

                          Ending Value - Starting Value
                          -----------------------------
                                 Starting Value

provided that the Periodic Capped Return for any Reset Period shall not exceed
4%.

                                       2
<PAGE>

         The "Interest Received Percentage" is 8.25%.

         A "Reset Period" is the period between any two consecutive Reset Dates.

         A "Reset Date" is the 26th day of each month, commencing May 26, 2004
and ending on October 26, 2009.

         The "Starting Value" will be:

               -    For the initial Reset Period, 1135.53, the closing value of
                    the Index on April 26, 2004.

               -    For each subsequent Reset Period, the Ending Value with
                    respect to the immediately preceding reset period.

         The "Ending Value" will be:

               -    For any Reset Period other than the Reset Period ending on
                    the Stated Maturity Date, the closing value of the S&P 500
                    Index on the Reset Date at the end of the period.

               -    For the Reset Period that ends on the Stated Maturity Date,
                    the Ending Value for closing value of the S&P 500 Index on
                    the date three Index Business Days before the Stated
                    Maturity Date.

         An "Index Business Day" means a day, as determined by the calculation
agent, on which the Index or any successor index is calculated and published and
on which securities comprising more than 80% of the value of the Index on such
day are capable of being traded on their relevant exchanges during the one-half
hour before the determination of the closing value of the Index. All
determinations made by the calculation agent will be at the sole discretion of
the calculation agent and will be conclusive for all purposes and binding on the
Company and the beneficial owners of the Notes, absent manifest error.

         A "Market Disruption Event" means, as determined by the calculation
agent in its sole discretion, the occurrence or existence of any suspension of
or limitation imposed on trading (by reason of movements in price exceeding
limits permitted by any relevant exchange or market or otherwise) of, or the
unavailability, through a recognized system of public dissemination of
transaction information, for a period longer than two hours, or during the
one-half hour period preceding the close of trading, on the applicable exchange
or market, of accurate price, volume or related information in respect of (a)
stocks which then comprise 20% or more of the value of the Index or any
successor index, (b) any options or futures contracts, or any options on such
futures contracts relating to the Index or any successor index, or (c) any
options or futures contracts relating to stocks which then comprise 20% or more
of the value of the Index or any successor index on any exchange or market if,
in each case, in the determination of the calculation agent, any such
suspension, limitation or unavailability is material. For the purpose of
determining whether a Market Disruption Event exists at any time, if trading in
a security

                                       3
<PAGE>

included in the Index is materially suspended or materially limited at that
time, then the relevant percentage contribution of that security to the value of
the Index will be based on a comparison of the portion of the value of the Index
attributable to that security relative to the overall value of the Index, in
each case immediately before that suspension or limitation.

         If no closing value of the Index is available on any Index Business Day
because of a Market Disruption Event or otherwise, the value of the Index for
that Index Business Day, unless deferred by the calculation agent as described
below, will be the arithmetic mean, as determined by the calculation agent, of
the value of the Index obtained from as many dealers in equity securities (which
may include Citigroup Global Markets Inc. or any of the Company's other
subsidiaries or affiliates), but not exceeding three such dealers, as will make
such value available to the calculation agent. The determination of the value of
the Index by the calculation agent in the event of a Market Disruption Event may
be deferred by the calculation agent for up to five consecutive Index Business
Days on which a Market Disruption Event is occurring, but not past the Index
Business Day prior to the Stated Maturity Date.

DISCONTINUANCE OF THE S&P 500 INDEX

         If S&P discontinues publication of the Index or if it or another entity
publishes a successor or substitute index that the calculation agent determines,
in its sole discretion, to be comparable to the Index, then the Ending Value of
any succeeding Reset Date will be determined by reference to the value of that
index, which is referred to as a "successor index."

         Upon any selection by the calculation agent of a successor index, the
calculation agent will cause notice to be furnished to the Company and the
Trustee, who will provide notice of the selection of the successor index to the
registered holders of the Notes.

         If S&P discontinues publication of the Index and a successor index is
not selected by the calculation agent or is no longer published on any Reset
Date, the periodic index level to be substituted for the Index for that Reset
Date will be a value computed by the calculation agent for that Reset Date in
accordance with the procedures last used to calculate the Index prior to any
such discontinuance.

         If S&P discontinues publication of the Index prior to the determination
of the Interest Distribution Amount and the calculation agent determines that no
successor index is available at that time, then on each Index Business Day until
the earlier to occur of (a) the determination of the Interest Distribution
Amount and (b) a determination by the calculation agent that a successor index
is available, the calculation agent will determine the value that is to be used
in computing the Interest Distribution Amount as described in the preceding
paragraph as if such day were a Reset Date. The calculation agent will cause
notice of those daily closing values to be published not less often than once
each month in The Wall Street Journal (or another newspaper of general
circulation).

                                       4
<PAGE>

         If a successor index is selected or the calculation agent calculates a
value as a substitute for the Index as described above, the successor index or
value will be substituted for the Index for all purposes, including for purposes
of determining whether an Index Business Day or Market Disruption Event occurs.

         All determinations made by the calculation agent will be at the sole
discretion of the calculation agent and will be conclusive for all purposes and
binding on the Company and the beneficial owners of the Notes, absent manifest
error.

ALTERATION OF METHOD OF CALCULATION

         If at any time the method of calculating the Index or a successor index
is changed in any material respect, or if the Index or a successor index is in
any other way modified so that the value of the Index or the successor index
does not, in the opinion of the calculation agent, fairly represent the value of
that index had the changes or modifications not been made, then, from and after
that time, the calculation agent will, at the close of business in New York, New
York, make those adjustments as, in the good faith judgment of the calculation
agent, may be necessary in order to arrive at a calculation of a value of a
stock index comparable to the Index or the successor index as if the changes or
modifications had not been made, and calculate the closing value with reference
to the Index or the successor index. Accordingly, if the method of calculating
the Index or the successor index is modified so that the value of the Index or
the successor index is a fraction or a multiple of what it would have been if it
had not been modified (e.g., due to a split in the Index), then the calculation
agent will adjust that index in order to arrive at a value of the index as if it
had not been modified (e.g., as if the split had not occurred).

GENERAL

         This Note is one of a duly authorized issue of debt securities of the
Company (the "Debt Securities"), issued and to be issued in one or more series
under a Senior Debt Indenture, dated as of October 27, 1993, as supplemented by
a First Supplemental Indenture, dated as of November 28, 1997, a Second
Supplemental Indenture, dated as of July 1, 1999, and as further supplemented
from time to time (the "Indenture"), between the Company and The Bank of New
York, as Trustee (the "Trustee", which term includes any successor trustee under
the Indenture), to which Indenture reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the holders of the Notes, and the terms upon
which the Notes are, and are to be, authenticated and delivered.

         If an Event of Default with respect to the Notes shall have occurred
and be continuing, the principal of the Notes 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 of the Notes will be
determined by the calculation agent and will equal, for each Note, the maturity
payment, calculated as though the maturity of the Notes were the date of early
repayment. If a Bankruptcy proceeding is commenced in respect of Citigroup
Global Markets Holdings, the beneficial owner of a Note will not be permitted to
make a claim for unmatured interest and therefore, under Section 502(b)(2) of
Title 11 of the United States Code, the claim of the beneficial owner of a Note
will be capped at the payment at maturity calculated as though the

                                       5
<PAGE>

maturity date of the Notes were the date of the commencement of the proceeding,
plus an additional amount of interest accrued on the principal amount of the
Notes at 1.5% per annum up to the date of the commencement of the proceeding.

         In case of default in payment at maturity of the Notes, the Notes will
bear interest, payable upon demand of the beneficial owners of the Notes in
accordance with the terms of the Notes, from and after the maturity date through
the date when payment of the unpaid amount has been made or duly provided for,
at the rate of 4.5% per annum on the 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 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 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 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 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.

                                       6
<PAGE>

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

                                         CITIGROUP GLOBAL MARKETS HOLDINGS INC.

                                         By: /s/ Mark I. Kleinman
                                             -----------------------------------
                                             Name: Mark I. Kleinman
                                             Title: Executive Vice President and
                                                    Treasurer

Corporate Seal
Attest:

By: /s/ Douglas C. Turnbull
   --------------------------------------
   Name: Douglas C. Turnbull
   Title: Assistant Secretary

Dated: April 29, 2004

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 Signatory

                                       7

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