UNITED STATESSECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549-4561

April 21, 2009

John Chevedden

Re: Citigroup Inc.Incomig letter dated February 9,2009

Dear Mr. Chevedden:

This is in response to your letter dated Februar 9,2009 concernng theshareholder proposal submitted to Citigroup by Ray T. Chevedden. On Februar 5,2009,we issued our response expressing our informal view that Citigroup could exclude theproposal from its proxy materials.

We received your letter after we issued our response. After reviewing theinformation contained in your letter, we find no basis to reconsider our position.

Sincerely,

Heather L. MaplesSenior Special Counsel

cc: Shelley J. Dropkin

General Counsel, Corporate GovernanceCitigroup Inc.425 Park Avenue2nd Floor

New York, NY 10022

*** FISMA & OMB Memorandum M-07-16 ***

JOHN CHEVEDDEN

Februar 9, 2009

Offce of Chief CounelDivision of Corporation FinanceSecurities and Exchange Commission100 F Street, NEWashington, DC 20549

# 2 Citigroup Inc. (C)Rule 14a-8 Proposal: Independent Lead Director by Ray T. Chevedden

Ladies and Gentlemen:

This fuer responds to the December 19, 2008 no action request regarding ths rile 14a~8proposal with the following text (emphasis added):

Independent Lead DirectorResolved, Shareholders request that our Board take the steps necessary to adopt abylaw to require that our company have an independent lead director wheneverpossible with clearly delineated duties, elected by and from the independent boardmembers, to be expected to serve for more than one continuous year, unless ourcompany at that time has an independent board chairman. The standard ofindependence would be the standard set by the Council of Institutional Investors whichis simply an independent director is a person whose directorship constitutes his or heronly connection to the corporation. .

The clearly delineated duties at a minimum would include:· Presiding at all meetings of the board at which the chairman is not present,includingexecutive sessions of the independent directors.· Serving as liaison between the chairman and the independent directors.· Approving information sent to the board.· Approving meeting agendas for the board.· Approving meeting schedules to assure that there is suffcient time for discussionof all agenda items.· Having the authority to call meetings of the independent directors.· Being available for consultation and direct communication, if requested by majorshareholders.

Statement of Ray T. CheveddenA key purpose of the Independent Lead Director is to protect shareholders' interests byproviding independent oversight of management, including our CEO. An IndependentLead Director with clearly delineated duties can promote greater managementaccountability to shareholders and lead to a more objective evaluation of our CEO.

*** FISMA & OMB Memorandum M-07-16 ****** FISMA & OMB Memorandum M-07-16 ***

In the alternative that the independence defition is found lacki this is to respectfully requestthat permission be granted for the deletion of the followi 12-words in the above text asilustrated in the following strike-out:

The standard of independence would be the sfa/u/an' set Jiy the C9I:Rsi! sfIRstitutI8nallnvewFS vlJiieh is siply an independent director is a person whosedirectorship constitutes his or her only connection to the corporation.

And thus to state:The standard of independence would be an independent director is a personwhose directorship constitutes his or her only connection to the corporation.

Division of Corporation Finance: Sta Legal Bulletin No. 14 permts shareholders to revise theirproposals in certain circumtances (emphasis added):

5. When do our responses afford shareholders an opportunity to revise their proposalsand supporting statements?

We may, under limited circumstances, permit shareholders to revise theirproposals and supporting statements. The following table provides examples of therule 14a-8 bases under which we typically allow revisions, as well as the types ofpermissible changes:

Rule 14a-8(i)(3) If the proposal contains specific statements that may be materiallyfalse or misleading or irrelevant to the subject matter of the proposal, we may permitthe shareholder to revise or delete these statements. Also, if the proposal or supportingstatement contains vague terms, we may, in rare circumstances, permit the shareholderto clarify these terms.

The above strieout words are irelevant to the rule 14a-8 proposal to the extent that the proposalis complete without the words.

Staff Legal Bulletin No. 14B (CF) states: "We have had, however, a long-standing practice ofissuing no-action responses that permt shareholders to make revisions that are mior in nature

".

. 2. Our approach to rule 14a-8(i)(3) no-action requests

As we noted in SLB No. 14, there is no provision in rule 14a-8 that allows a shareholderto revise his or her proposal and supporting statement. We have had, however, a long-standing practice of issuing no-action responses that permit shareholders to makerevisions that are minor in nature and do not alter the substance of the proposaL. We.

aäopted this practice to deal with proposals that comply generally with the substantiverequirements of rule 14a-8, but contain some minor defects that could be correctedeasily. Our intent to. limit this practice to minor defects was evidenced by our statementin SLB No. 14 that we may find it appropriate for companies to exclude the entireproposal, supporting statement, or both as materially false or misleading if a proposal orsupporting statement would require detailed. and extensive editing in order to bring itinto complianæ with the proxy rules.

The deletion of 12-words is simple and "minor in natue."

For these reasons it is requested that permssiónbe granted to delete 12-words from the above.rule 14a-8 proposal Ifthe independence defintion is found lackig.

For these reasons and the December 29, 2008 reaons it is requested that the staf find that thisresolution cannot be omitted from the company proxy. It is also respectfully requested that theshareholder have the last opportnity to submit material in support of includig this proposal -

sInce the company had the first opportty.

Sincerely,~..ohn Chevedden

- --

cc:Ray T. Chevedden

Shelley Dropki ..dropkis(gcitigroup.com?

(i UNITED STATESSECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549-3010

DMSIONOF .CORPORATION FINACE

Febru 5, 2009

Shelley J. DropkiÜeneral Counsel, CQrporate Gove11ance

Citigroup Inc.425 Park Avenue2nd FloorNew York, NY 10022

Re: Citigroup Inc. .Incomig letter dated December 19,2008

Dear Ms. Dropki:

Ths is in response to your letter date December 19, 2008 conceni theshareholder proposal submitted to Citi by Ray T. Chevedden. We also have received alettr on the proponent's behaf dated Decmber 29,2008. Our responS is attched tothe enclosed photocopy of your correspondence. By doing ths~ we avoid havig to reciteor suar the facts set fort in the correspondence. Copies of al of:te

correspondence also wi be provided to the proponent.

In connection with ths matter, your attntion is. directed to the enclosure, whichsets fort a brief discussion of the Division's inormal procedures regardig shaeholderproposals.

Sincerely,

Heather L. MaplesSenior Specia Counsel

Enclosurs

cc: John Chevedden

... FISMA & OMS Memorandum M-07-16 ...

Febru 5, 2009

Response of the Offce of Chief CounselDivision of Corn oration Finance

. Re: Citigroup Inc.

Incoming letter dated December 19,2008

The proposal requests tht the board tae the steps necesa to adopt a bylaw toprovide for an indepedent lead dir and fuer provides th the "stadad of

independence would be tle stadard set by the Council of Initutiona Investors. which is

simply an independent diector is a person whose directorship constitutes his .or her onlyconnecon to the corporation." .

There appears to be some basis for your view that Citi may exclude the proposaunder rue 14a-8(i)(3) ¡i vage and indefite. Accordigly, we wi not recommendenforcement action to the Commsion if Citi omits the proposal from its proxy matealin reliance on rue 14a-:8(i)(3). In reachig ths position, we have not found it necessarto address the alternve bases for omission upon which Citi relies.

Sincerely,

Damon ColbertAttomèy-Adviser

DIVISION OF CORPORATION FIANCEINFORM PROCEDU:RES REGARING SHAHOLDER PROPOSALS

The Division of Corporation Finance believes that its responsibilty with respect to. matters arsing under Rule 14a-8 (17 CFR 240. 14a-8),as with other matters under the proxy .rules, is to aid those who must comply with the rue by offerg inormal advice and suggestonsand to detere, intially, whether' or not it may be appropriate in a paricular matter to'

recommend enorcement action to the Commission. In connection with a shareholder proposalunder Rule 14a-8, the Division's staf consider the inormation fusheä to it by the Companyin support oÍIts intention to exclude the proposals from the Company's proxy materals, as wellas any informtion fushed by the proponent or the proponent's representative.

Although Rule 14a-8(k) does not requie any communcatons from shareholder to the .Commssion's sta the stawill always consider inormtion concerng alleged violations ofthe statutes adinstered by the Commission, includig arguent as to whether or not activitiesproposed to be taen would be violative of the statute or rue involved. The receipt by the staföf such inormation, however, should not be conStred as changig the sta s inormal

procedures and proxy review into a formal or adver procedure.

It is importt to note that the sts ard Commssion's no-action responses to

Rule 14a-8(j) submissions "reflect only inoi;al views. The determations reached in these no-action letters do not and canot adjudicate the ments of a company's position with reect to theproposal. Only a cour such as a u.S. Distrct Cour can decide whether a company is obligated

to include sharholder proposals in its proxy materål. Accordigly a discretionadeteration not to recommend or take Commssion enforcement action, does not prec1.ude aproponent, or any shareholder of a company, from purg any nghts he or she may have agathe company.în cour should the management omit the proposal from the company's proxymmeral. .

JOHN CHEVEDEN .... FISMA & OMS Memorandum M-07-16 ...

... FISMA & OMS Memorandum M-07-16 ...

Decembe 29~ 2008

Offce of Chef Counsel

Division of Corpration FinceSecurtiesand Exchage Commsion

. 100 F Stee NE .Wasgt~ DC 20549

# 1 Citioup Ine. (C). Shareholder Postion on .Com.pany No-Acton ReuestRule 14.8 Proposa: Indepeiident Lead Diretor

Ray. T.Chevedden

Lades and Geemen:

Thi is the fist respons to the compa Deember '19~ 2008 no acon rees redi ths rue14a-8 proposa with the followig te (emhais ad):

Independent Lead .,Directr'Resolv.ed, Shareholders reques that our Board take the steps .neCssary to adopt abylaw to require tht our company have an independent lead direcor wheneverpossible With clearly delineated duties, elected by and .from the independent boardmemQers, to be expeced to serve for more than one continuous year, unless ourcompany at .that time has an indepndent board chairman. The stndard ofindependence would be the standard set by the Council of :Institutional .Investors whichis simply an .independent director is a per whose directrship constitut his or heronly connecion to the corporation. . .

The clearly delineated dutie at a minimln would include:- Presiding. at all meetings of the board at which the chairman is not present,including,executive sessions of the independent director; .-Servng as liaison b~tween the chairman and the independent directors.- Approving information .sent tothe board.- Approving meeting agendas for the board.- Approving meeting schedules to assure that there is sufcint time for discssionof all agenda items. . .- Having the. authori to calf meetings òf. the independent direCtors.

-Being available for consultation and direc communicatin. if requested by majorshareholders.

Statement of Ray T. CheveddenA key purpse of the Independent Lead Director is to protect shareholders' interests byproviding independent oversight of management, including our CEO. An IndependentLead Direcor wi clearly ~elineated duties can promote greater managementaccountabilit to shareholders and lead to a more objecte evaluation of our'CEO.

Regarding the company (i)(10) objecon Bristol-Myers Squibb Co. (Ron.) (M 9, 2006)stte "We note tht the is a subsve dicton been a proposa tht seks a policy anda proposa th seks a

bylaw or char amendmen." Ths is the Sta Rely Le with'emphass addd:

(STAFF REPLY LETTER)

March 9, 2006.

Amy L Goodman. Gibson, Dunn & Crucher tLP1050 :Connectcut Avenue, N.W.Washington, DC 20036-5306

:Re: ,;Britøl-:Myers Squibb Co. Incoming letter dated March 1, 2006

Dear Ms. Goodman:

This is in .response to your letter dated March 1, 2006conceming th shareholder. proposal submited to Bristol-Myers by Charles Miler. We also have received a Jetter on

the proponent's behalf dated March 6, 2006. On January 27, 2006, we issued ourresponse expressing our informal view that Bristol-Myers could not exclude the proposalfrom ,it proxy materials for it upcoming annual meeting. You' have asked us torecnsider our positon.

The Division grants the reconsideration reuest, ,as there now seems to be some basisfor your view that Bristol-Myers may exclude the proposal under rule 14a-8(i)(10). Wen.ote that there is å substantie distinction between

a proposal that seeks a policyarid a propOsal that seeks a bylaw or charter amendment. In thiS regard, however,we further note that the acton contemplate :by the subject proposal is qualified by the

. phrase IIff .practcablell and that the company hasofherwise sùbstantially implementethe proposal. Accordingly, we wrlnot .reemrrend enforcement acton to theCommission if Bristol-Myers omits the proposl from its proxy materials in relianæ onrule 14a-8(i)(10).

Sincerely,

Isf

-Martin P. DunnActing Director

co: John Chevedden

** FISMA & OMB Memorandum M-07-16.**

Since th compay ,has not adopt an indepdet lea dir bylaw it has not implementethe proposa.

Regardig th company (i)(3) objeco~ the coniy prests a fa predent in its clos

analogy, The Boeing Corporatin (Feb. 10,2004). The followig is the fu te of the Boeing

rue i 4a-8 proposa an it is clea tht ther is no indepennce .defition ofthe Coun ofIntuona Invesrs in the prposa beyond ~anindependet dir, accog to the 2003Counci of Intuon Investrs defition." . .

Exhbit A

.a.lridependent Board Chairman

'RESOLVED: Shareholders reuest that our :Board of Direcors amen the Byelàws torequire that an independent.director, according to the 2003 Council of InstitutionalInvesors definition, shall serve as chairnan .of the Board of Directrs.

This proposal was submited:by John Chevedden, 2215 Nelson Ave., No. 205, Redondo. Beach, Calif. 90278.

The primary'purp of the Board ofDirf)ctors:isto :protect shareholders' interests by,providing. indepndent oversight ofmanagament,includingthe CEO. i believe thatseparatlng the roles of Chairman .arid CEO wi. promote greater managementaccountabilit to shareholders and lead to a more objecte evaluation of the CEO. Anindependent Chairman can enhance investor confidence in 'our .Company andstrengthen th integrit of the Board of Dìrectors.

Recent corporate scandals have focused atention on the issue of board independence

and 'th need for an independent.board chairman. Accrding to The Wall Str~t Journal,"in a posteEnron world .of tougher .Corpragovernance standards, the notion of aseparae outide chairman is gaining boardrom support as a way to improvemonitoring of management and relieve overorked CEOslr t'Splitting Posts of'Chairman, . CEO Catches on Wi Boards," November 11,.2002).

How can one person, serving as both Chairman and CEO, effec~iy monitor andevaJuat~ his or her own performance? A blue-ribbon commission of the NationalAssociation of Corprate Director recently observed "it is difcult for us to see how anactive CEO, already -responsible for the opel'tions.ofthe corporation, can give the time'nece$sary to accpt primary responsibifitfor the operaons of the board!'

In January 2003 the Conference Board said, ''Typically, the .CEO isa member of theboard, but he or she is' also .part of the management tem that the board oversees. Thisdual role can provide a potential for coflicl.;partcularly in those case in which theCEO attempts to dominate both the management of the company and the exercise ofthe responsibilites of the board."

The Conference Board added that :jt was "profundly troubled by the corporate scandalsof the rent past. The primary concern .in many of these situations is that strong CEOs

appear to have exertd a dominant influence over their boards, often sting the effortof directors to play th central oversight role needed to ensure a healthy system ofcorporate governance."

By settng agendas, priorities and procedures, the positon of ~hairman is critical inshaping the wor afthe Board of Diretors. Accordingly,' believe that having an

independent direor serve as Chairmn can help ensure the objectivé functioning of aneffecive board. Conversely,.1 fearthat combining the positons of Chairman and CEOmay result in a passive and uninvolved board that rubber-stmps the .CEO's owndecisions. .

iI

I

.1

.lndependentBoard Chairman Yes on 3

By contrast th propo inludes the te "Te stdad of indence would be th .std

set by the Council ofIntutiona Inesrs which is siply an indepndent dior is a peron

whose diectorsp .cnstus his 'or her -only connon to the corportion. " .

Regarg the company (i)(2) objection th ~ompy'cites ths lift te frm.8 DeL. C.. §141 (d): .. .'''In .additio~ the certcate of incorpraton may confer upon 1 or more di, whether or not'.eleced seply by th~ holders of an clas or. seres of stoc~ votg powe greater th-orless th thse' of other diors....

The .company.does ad. the.fa th the text in the prsa that st "te the sts .

necessar to adopt abylaW".wmch would alow for a Ceca and bylaw chage to be made atthe aproxiely the sae tie. . .

The company does not provide the followi fu te of 8 DeL. C. § 141 (d) - only the. emphaszed text: .

(d) The directors of any corpation organized under this chapter may, by. the certcateof incorporation or by an inital bylaw, or by a Qylaw adopted by a vote .of the .

stockholders, be divided '¡nto 1, 2 or 3 classes; the term 'of offce of those of the first .class to expire at the firstannuái meeting held aftr suèh classification .become

. . effective; of the second class 1 year threafter; 'of the third class. 2 years thereafter; andat each annual electon helCl afr such .classification beaomes effctive, directrs shalf'be chosn for a .fun term, as the case maybe, to succ those whos terms expire.The certifcate of incorpor.ation or bylaw provision divding the direcors into classes mayauthorie the board of directrs to assign members of the board already in offce to suchclasses. at the time such classification becomes effctive. The certifcate of incorprationmay confer upon holders ,of any class or series of stock the right to elect 1 or .moredirecors who shall serve forsuch.term,dand have such voting powers as shall be statedin the certifcate of inco.iporation. The terms .of offçe and voting powers

of the directorselected separatel by the holder.:.of any class or series of stock may be greater than or.Iess than those of any other director or class of directors. In addition, the certti. ofincorpration may.confer upon 1 or mole direors .whether or not electedseparately by the holders of anY c~ orseres of stock,

voting powers .gretethan or les than those of otherditftors. Any such provision confrring greater or

lessr voting power shall apply to voting in any committee 'or SUbcommitee; unlessotherwise provided Ln the certcate of incooration or bylaws. If the certificate of .incorporation .provides that 1 or more directors shall have more or léss than 1 vote perdirector on any m~tter, ever reference in this Chapter to a majorit or othr

proportion .of the directors shall refer to ,a majorit or other proportion of the votes of th direcors.

It is not clea th the caefuy èhosen words li from 8 DeL.C. § 14 i (d) have th sae

mea as in the std-alone context provide by the compay.

The compy (i)(1) objection in tu ap to be depéndent on unquaed aceptace of its .

(i)(2) objection. The key to evaluatig the outde opinon may be to check wher it haanyze the compay~lied words from 8 DeL. C.§ 141(d) in the cotext of the fu tex of 8 .DeL. C. § 141( d). The outde opinon does not even provide the fu te or8 Del C. § 1 41 (d)nor doe it e:xlaî the mean of the. li words in the context of the :f te

For thes reans it is requesed th the sta fid tht th resoluton caot be omitt from the

company pro-xy. It is .al resly requeed tht the sheholder have the las opport tosubmit material in support of includi ths proposa ~ si the company had the fiopportty. ..Sincerely,

.~ u: - Jpohn Cheveden

cc:Ray T. Cheedden

Shelley Drpki -:opki~citigroup.coii

Shle J. Dropn'General ConslCoorat Govemall

Cirop In.425 Par AVenuez' Ff9NewYOI. NY 10022

T 21279a.,739F 212793'760droki~.c

~tCt'.1

Decmber 19, 2008

P. E-MAOffce of CbiefCounselDivision ofCOrptation FinaceSecwities an Exchage CommssioH)O F Str, NE

Washion. DC 20549

Re: StooldetPrposa to Citigroup Inc. of Ray Cheved

De Sir QrMad:

PUrt to Rue 14a-8u) of the rues and reguations promulgatd underthe Securties Exchange Act .òf 1934, as amended (the "Act"), encl0sed hereWith for:fling are copies .of the stolder prposa and suportng stent (togeter, the"Proposa") submìtt by Ray Chevedden (the ~'pripo1it") foriiluson in th proxy

statement an fonn of prOXY (together, the "2009 Prxy Mat~') to be fushedtostckholder by Cítigroup Inc. (the "Compay') in .cecon with.It anuaning nf

stockholder to be held on or abut Apr21. 2009. The Proponet"s ad as stte. ii

the ,Proposl; is -FISMA & OMB MEMORADUM M-07-16* Attnton::John Chv.ê.en. The Pi'J)nenes. telephone numMÍ OMS MEMORANDUM Ml6tPrponent's e~ma addres!fÛMA.& OMS MEMORANDUM M-7~16-

Also enclosed for fili ar six copies of a sttement of explanonoutlin the rens the Compy believes tht it may exclue the Proposa frm its2009 Prxy Mater 'pursWi'w R.ule 14a-8(i)(I) under th Act be th Propsa isnot a proper subject for action by shholders uiCl Delaware law (th jursdcton inwhich th Company is org~); purgat to Rl1e 14a-8(i)(2) under1b Actbe thePropoal Would, if implemented ca the Compay tn vioIai Delawa law;pt1t to

Ride 14a-8(i)(3) under the Ac .~ the Proposa js linn$$Ìbly vagu andindefute;and purt to Rue 14ä-8(i)(lO) b:ë. the. Company ba alreaysusttily implemente the Propsa.

i

Rue l4a-8(i)(1) provi4es tht. a proposa may be exchidedif th~ prposa"is not a pIper subject for ac1;oll by shholder under the laws of the jmiiCton of thecompay's organzation."

Rule 14a-8(i)() provides that a proposa may be. exdud it the propsal

"would, if implemen,. cau tt,compay to violat any ste, feder, or fo~ign law towhich it is subject."

Rule 148-8(1)(3:) provides that a proposa may be excluded if the proposa"is contry to any of the Conission's .proxy rules, iicludJî~ Rule 14a-9, which.

prOhibits mateally tase or. mileading Sttements in proxy solicitigm~a1."

Rule 14a-8(i)(IO) provides tht a prosal may be exclUd if '"teoompay ha alrey substtiy.iiplemente the. prposa,"

By copy of ths lettrancl the enclose mas. th Copay is l10iigthe ,Pponent of its iJention to~cluth Proposa froro it 20Q9 Proxy Mats, TheCompay curently plan to file lts defitive 200 Proxy ManaI with the Securtiesand Excbage Commission (the "Cormsion" On or abut Mar 13,2009.

The Compay resctflly reque th the staff of the Divion ofCorpraon Finace of the Coinon PQnt that it will not reommend anYenforcemen action to the Commssion if the CopaY e.xcludes th Prosal from it

2009 Proxy Materials.

. Kid1y acknowlede recipt of ths leter and the enclO$ n:te~ bystapIi the enclosed copy of ths lettr and ~tug it tQ me it the eicIøsed se.lf-addrsed stped env~lop~. If YOU have any conn.ents nr questons conc.er.ng thismatt, pJe.ase contact me at (212) 793-7396.

(; li~YO~? ,1..IJt.ì ¡~ 1 èt¡ .:,7f ... ..~"-.- .en~ êo ' el, Corpo. .. Govemaie

2

(

STATEMENt'.oF INENT TO Ol\'l S'JOcOLDER rJiQ.lOSAL

Citigrup Inc., ~ Delaware corpration ("Citigro.up". o.r the "Company"), intendto. omit the stockho.lder 'proposal and sllppongstameii;ä ropyöf which, is äiexedhereto as Exhbit A (tl '~Proposa"), submitted.by Ray Cheveden (the ".Proponent") för

inclusio.n inits.proxy sttement and fonn,ofproxy (togeter, the "2009:Prxy.Mateals?O)to be distbuted to. stockho.lder in coimeçtion with th ~ua M~tig o.f StQckhold~to. be held o.n or about ApriI2.l, 2009.

The Proposa.sttes:

"Resolved, Sharho.lder. request th our Board taç'the steps n~ssai tø .ado.pt a bylawto requi tht our collpanyha,ve an independent lead dlector w~ever' possible with

çlearly deJin~t~ 4uties, elected' ,by an4frm :tein~pendent board me.ber; to be-expcte to. sere fo.r møie:th o.necontúuous .year, unëS$ oût~cömpay.atth tie haan independent boacha~ The stdadofinepedence wöuld be the stdad setby the Co.UÏcil of Institutio.iiInvesto.rs which is simply an independent dìrecnr Ï$ aperso.n who.se direcrshp co.nstute$ his or her ony connectio.Jl.tø the coon..

The ~learly ~linateddl1ties at l:'inun wouldinelude:,· Presiding at al meetmgs of the, bo.iwdat wmeh tnø ç~ is notpr~sent,

i~cludÍ1g executve 8e$SiQl1 ottbc' independet directol'.

· Servg as liaison between the cha. and the -Indepndt,dicto.rs.

· Approvin wonnato.n sent. 10 the bôadø. Approving meeûngagenda far tke boaid,· Approving meetig schedules to assu th there is sucient .tiefórdiseuio.n

of all agenda items.· Having the autho.rity to. call meetgs of the .indepedent dito.l'.

· Being avaiable fOr co.llsuitaon and dit comiçao.n, if requeed by majorshaholders. n

The Compay beliéva tht the. Prpolmay be, prQperlyoouttd from the 2009 PrxyMateals puruat to Rtè 14a-8(i)(10) bècüsth Pro.poSa is susttial

imlemente Aule 14a-8(i)(3) beuse the Prpo is vag andindCftc, an .CQntrto ~. Cninion.'s ~mles, RUle 14a"g(i)(~) bec1. the PrQposa w('u.d. ifimplemøtecaus the COmpan t( ~Jate ~iaare law,.at Rule 14a.-S(i)(1) becausthe .PrpoSä is not a proper subjec for stockholdetaetio.n unde the laws of DelaWa.

I. THE PROPOSAL MÀY BE OMITTi¡l) BicAU$E ti COMPAN .ILSUBTANALL Y IMLltMlNTD IT.

Since. 200, the Citigroup Boar, of Diëctors ha ha an indepedent lead dir.

Detals regar. the selection, dutes, tëand.tute of th inendlit.lèad diretor:a specified ii Citigroup's Cotprate Gov.ernce Guidelin~ which are. adpted andamended by the Boad of oirQrs. B~o.n tho.se fac,. Ci.tfgr()upben~ves tht the'Propo~ is a,~y substatially lipleente~ an~ threfore Clpe o.mied pl1uat to-Rp1~ 14a-8(i)(10).

3

Rile ì4a-8(i)(10) 'pemnts an isUer to omit å. Rule 14a-8 proposa if th company haaIady "substatIay implemente the proposal.;' The purose oiRule J4a-.8(i)(10) is. ''tavoid the possibilty ()tsl.~hol(l~rs 1lvi to ço,nsid~r mat wlcl: have aù.ady betnfavorably acte upn by inag~nt." See SEe Re/ease No. J4~J 2598 (regapredecessor rue to Rule 14-8(i)(10)) (July 7;.1976). To. be mo.ot, the propósanee not beimplemented in ful or preisly as presnte. Rule 14a-8(i)(lO) does not re exaecorrpondence between the actions sought byashaholderprpoiintand th issoos

açtIQQS in orer for tJeshaeholder"s proposn1 to be :excluded $ECkelease 34- 20091(Aug. 16ii 1983) (discl,8Îg Rule. 14a-8(c)(3)t the prcessor to'. RUIe i 4'8-8(1)(3)),

Citigrup's Corprat GOVètce Guidelins se fort the duties of the indaiendet leadiector, and provide the defition of "independence" applicable in ths Iice. A èopyof. the Citigroa.p's Corporae Governance Guelins is: atted as Exhbit B. The

follQwing cha liss eah of the tJopQsa's rtquest reg8dI the position ofînd~ndentlea diecor, and th section of .Citigroup'sCorptate Goverce Gudelis th.addresses the issue.

Pr9Posal Recuest c.ti~up's Coi;ra GoverceGudelies. . ., .

.1'rëSdeat all1'ëètíngs of the Bód at. whichthe Chä is nötpreet, inchidigtlexecuve sessions of the. inepdent'DirtQrsServ.àS' a iían bêieen the ChairiaD ara

. thè,indep~I1ent Dirtors

Presídg atàll meêtisöf the,boanf

.at whch the charm is not presnt;includg execllve sessions of theindepndent dIrectorsSetvg .as liaison beteen.. thechaian and the independentdirctoI$ .ApproVI inormation sent tò the Approve iïotmatioil sentto..the .BoarboardApprovig nie.etìgag~nda for tIe Approve metÌg..agetlØ(sÎQ.r thø: :aø$"4

. board

ApprøyIg meeti schedules toassut th ther issufcient ,tie fordiscussion of all agenda itmsHavig th autonty to ca m~gsof th indepenent dîecorsBein available fot Coultàt1ot anddilt communcation, if reueste by

.nor shareholdtr .Defiûon of.Indeìinâence

A.P!Ov~' mee schede~ tc) AS~ thtthere is suffc.ient time for dicussfun 'Of allag~;n4a ite

H~ve tie authority to cal meetis of :teindadefPlree .If reuest by major sfo1de~ enuretht he or me is avaiable for ;consultaonfId direct c.çRtIonCorra Governce ~idelines

Becalie most of the PropOS's reue. a1yare îiplemented by th: 'CitigröùpCorpora Goverce Guidelies, Cítigroup believes: tht the Prposal is: substtilyimplementC( and Can be exclud frm the 2009 Proxy Materals. ,Furher, Cit~up's

pra~scompar favoraly wi th~ Plpp$l?, even thol1gh the req~ents for theindependent lea direcr ar inçluded in the ,Corpore QQverce Guidelin~ rather

4

th the Bylaws, às is requested.m:th PropoSa. Notäbly,both the Corpratø GoverceGuidelines and Bylaws ar established by th Boad of Directors and ~ be ai~ hyth~ Boar, butnQt by mangement lhe Propontmt's sted P1Use Îor the PrQpnsai is'toprvide independent overight ,of manen~t. an th purse is fuher if theindependent lead dirtor reuirents are establised in a document th is not undermagement's contrl. This ooiittòl is ;pret whther the Proposal is itplemenedthrugh th Corprate Oovernce Gtidelies or the Bylaws. .

For the reons discus abve, Citigrup beUeves it cur corprate goverce

documnts and pratice substtially implement the Propäsa .and the.. Prposa niy beomtted frm the 2009 Proxy Matenals as provided in Rule 14a-8(i)(10.).

u. tfU PRo:rOSAL:MV.ØE EXctlitn. ØECAUSJi 1Ø iPlOP()SAL lS1NHERJNTLY V AGtJ AND INEFIN AN MISLEAING .ANTHUS CONTRY TO RUL 14a-9UNER THE ACT.

Citlgrup believes the Proposa îs impeimssbly vague and indefite be theProposa se fort aninëpndece standa thai Îs ''t stdad se by tle .Counü ofInituional Investors whch is sitnlyan indepdent di js a pen whose.dirtorship constitus his or her only connection to the corpran." However, thproponent doesn't st that en independence definition includ th pages of van(jus

gûdelines tht must be complied, with ÎI order to be deme inndeilt (Sëe ExhbitC.) Bas on the Proposa, it is Wlclea ifihe defition.of~'idepënce" al inèludesthe gudelies issue by cn orpcms oa1y tp the 5'basic'; detion offudepQe~.

Under Rule 14a-8(i)(3)~ a compay may exclude all or portons of a prosal if the

.proposal or supportin statentis cont to my of th CoIlssWn's prXy roes. Byextension, ths includes proposals il at impermissibly vague, and iidefi.nite. In ths

rear, the Sta ha indicat th proposals may be exclud if t;e proposa is so vageand indefite tht it would be diffcult for sheholder to know what they ar votig on.See, e.g, Woodward Governor Compa1 (avaiL. Nov. 26,- 2003) (propoSal requestig apolicy for "com~on" for th "executves in th uppe manement (tba bellg platmagers tQ bo members)" baed.on sIockgrwt); tkralElectric Compa (avail.Feb. 5, 2003) (;roposal reestg boar ~'tò sek sbahò.ldeA¡ptov.al for allcompention. "fot Sèor Execves and Boad members not to exce inre than :25,tiestheaverae w.ae of hourly wQrkg empioy~"); Proctor & Gamle Co. (avaU.

.Oct. 25, 20(2) (proposal req!Jestig tht. bod c:ieat Ii fud that would proVid~ IaWY~.,clerica help, WItness proteclion .ad .rords pr.o.tecon for VIcûnt of tettin,

intimidaon an troubles beau the.y are stkhlder of publiely owned compaes).

The Staff has prevìously ~ncur tbt Rul~ 14a-8(ì)(3) was grQ'Qds for a company ~

omt a propo~ very símlar to th~ one atisSle ùi this Nö..Action..L$ reque In TIBoeing CorporniÙJi1, the Sta ag th a proposa requng an indendnt eba:of the boatdwas imperssibly vague and iidefite beCa it faied to disösto.

shahólde the defition ()f"inrtentdiret' th applied Th BoingCorpraton (avail. Feb. 10" ~(04) (wher propoal sougt toamen4 the bylaws to .reuire ''tat an indepdent diror, accrding to the 2003 Council oflntitutona

$

Investors defintion, sli.serveas cbaan .of the. Boar of Dfrtors~'). The Proposa atissue suer from th sae .defeCt as the proposal in Boeing Corpration,~ th~y both

include a refernce to a defition of ~indepëndence~'eslish~ b.y tle. -caucU ofIQst,tntional Investors, but do not ~eqQately describe or delîneate tb definition.

:Citigroup .bê.lievesthat the Proposa ca. be distgùshëd from .the propòSa ili GeneralElectric Company, in which th St did notgrt nô-acon relief under Rule .14a-8(i)(3). hi tht lettr the company argued th the proposal ~ vage ~d indetiritebecaus Ít did not inclqd or referece any definition of indepedence. General ElectricCompan (avaiL. Jan. 28,2003) ("General Electc'') (proposal reueed amending thecompany's bylaws to. requir that :th cIu of the: board be ar :independent diectr

who ha not sered as. CEO of the compy). IncOtt, th Proposa (:a well as theproposa in Boeing) inëotporas a. spificdefition of independece, but does not

adequately descrbe or delieate th specified. detition.

The Propasa asks Citigroup~s slelølder tQ VO~ on matters rë)~ to bôätanddíreotör independencc..without ,pro'Vdig 'shäeholdes. with enoug Íírmtlon forshhóldesto understd the applicable:. defition of independence. Ciûgrup"s'

shholde caot be .expete to ine an informdeìslon on the merits or theProposai witbout und~ding what theyare. voti on, Accordigly, webelieye theProposal is inipennissibly vagu and indefte and may be excluded puruat to Rule14a-8(i)(3). Such action would he consistnt with Sta poitions ii prior No-Actionletters.

.Ur. T$ PROPOSAL M4V BE OMID JlltCAUSE IT WOUL1 IFIMLEMENTED1 CAUSE TH 'COM)AN TO VIOLATE. DELWARLAW.

The 'Propsa may be excluded frm the 2009. Proxy Materals pursuant to Rule 14a-'S(i)(2) because it would, if implemented, .caue the COmpay to violate Delaware law.

As morefuly describe ín the opinion of th Delawar law rüm of MomS, Nichols,Arht & Tunll LLP (the "Delawar Law Fir Opinion," anxed 'herto as .Exhbit D),the Proposal .intends to recmiend. th the Boät confer upn the ":Ipendent boarmember" gr votig power (i.e. th power to elet the l4dependcnt lea diQf~)th. other diectors on the bod by tag the .sps n~cessa toadt a bylaw

.prQvlsìon.. Beçu~e the lropo.sas~b 'te ~fs1T ~Î gqhpowets thøugb :a.b.y1~w

pwv.sion.. and, not. thoug an amendment to the Company's cefica of incoi;oriot1the Proposal wou1d..ü inplëmented, violat Sæton 141(d) of the. nelawäte GeetáCorporation Law.. which reuiêS thahY' cønféttâl ofgrea :ot lessr votig power to 1

or more direto of a Delawar ootporaon be set out in a coratn~s cefic~ ofincorporation) See 8 Del. C. § 141(d) (st tht i~ltJ-lcertiftçate oj inçorporation

We. regn tht the Sta ha previouslydecîn:ed 10 concur with the. positionth á corporaton corid. exclude a proosal under Rule l4a8(i)(2)whhrequ,s~tlthe boar of ~r. ~. .~ ~~SSaQ ~.1ø a.øjit ll bylawproVÎion requiting the anUà eleeön :of diectot$~ even thoUg süeha by1àwprOviion would be. inc.onsistent wit a pròvision ófth e.orpration's Cëttcae of

6

may confr upon 1 or more diectors, wheth" or not elec sepately, by th holde: ofany class or seres' of .stok, voting pówers grear th .ór less. th thoSe of othr

ditors. '~) (emphais .aded); see also Carmody \/. Toll Brothers,. Inc., 723 A.2d 1180~1191 (Dl. Ch. 1998) (4'-The pltlin unbiguous .meang (of Section 141(d)) is that ifone category or grup of dlecrs is. given distctiv.t voting rlghtsnot ~ by theother dirers, those disctive vOtlg rights 'm~.t be. set for in the cecate of. . ")incorpraon. . .Accordinly, we believe th Prposal would, if implemented, ca the Company toviolat Del~ware law, and may be excluded pti~ to Rule 14a-8(ì)(4)' See AT&T Inc.

(I,vaÍl Ian. 7, 20(Q) (employmg Rul 14aø8(î)(2) asa bas for not recøndigenforce.rtent actionwhere a proposal is excluded beca it. reques tht the boaradpttUiulatve votng: either (i) as ä bylaw or (ii) as ä .long-tennpoliey, where Delàwae.lawreuires that cumulative voting be adopted only in a certficate of incorpraori).2

2

incorp~ol1 iud th~violat .~laware law.. See baxter Internwna Inc.

(avaiL. JaI. 31, 2005). In Ba Internona, the propone argued th thepropsal should be read to i'llst th the compay "set in. ïnoûônand. . . .complete theamendrtent of its cerca of incorporaon" so as to allow a bylawprvision regnìn the sl,bj~t imer Qfthe proposa. ld.

The proposal .at Isslì în BaX lnona~ .a provision. for the.an electionof direcors, could be inchid~in corrate bylaws without theišsue begaqdesse4 in the certficat or incorpration. See 8 Del. C. :§ 2 ll(b) ("Unlessdiecrs are electe.d by wrtt consent in lieu of an anua meetÙg a$ permitby ths substion, at.anal mee of stockolders sba be held for the electionof directors on a dae an.a a tie designted. by or in the maer provi inthe bylaw." (~phaj$ a4~). th~ fu tht in_ce, the ~enclent to thecertcate. of inrpraon wa nece only to elimna a prscpton Îi tb.certificate of incorporation. He,ùi contrt, only a provi8Îoil in the cecate ofincotpraòn ca auori wh the Proposal seks. See id § 141(d). (~Inaddition, the certifcate of incrporation ~y confer. . . .."). A bylaw~ st4ingalone, simply canot "reuiU that ~4ep!mdtmt dirtol' have votig pner.g tl othetdireçtOfSi as explained in the nelawarLa Firm Opiiø. Fotthis rean, the Prpos violats. Deawar. law, and th.e ~~JieeSS$tps"lang~doéS not alter this fac. .The Company recognze th pror to issug its Janua 7, 2006 respons to theAT&T Inc. nOøacion reqest, th Stahad pl'viously denedno--tin relief on a .proposa toad9P bylaw p~visioii th counl argu would, .8Dong othethigs, viol~ Déi~ware law'beause the ty otprovišionspropsed may only be

incluced in a, certfie of incorpraon. .see. Alas Air Group~ Inc.; lavail. Mar.1. 2004). The. Company notes;.howevèr, tbat t1s: Jlion reques did .nòt àpp

to have been support by an opinoi frm members of the Delawar ba;, Incontr the Compay's ~J.est is .suppoed ~y an 9.pinipte~.~ by m~beaf th~~laaT. b.ar who .n: ll~andactjvely imu.m~~ íi v.wa.Becaus íts requst is bas 00. änöpìnon of Delawa counl, the- Cottanybelìe'Ves th the. StashoUldgtt it DOøactioii relierin acrdace with thauthority cite abve (Ree ATNGT In., supra) raer th denys1lh ~li~f oA th~baSis oftl Alaska Aii: Oroup, Inc~ no~actiøn letr. See Division of CorpraonFinace: Staff .Legal Bullet No. 14 eLegal Bulltin 14''), Section.G (July 31,

1

IV. THE PROPOSAL MAY BE OMITED BECAUSE IT IS NOT A PROPERSUBJECT FOR STOCKHOLDER ACTION UNER TH LAWS OFDELWAR.

The Delawar Law firm Opinonn. concludes,anclth Compy agr ~ bethe Prposa would, 'ifliplemntedca the Compay to violat Oeiawar taw? it is nota proper suject fur stockh()lder acon and maybe .excluded purttoRuIe 14a,.;8(i)(1).

The Proponent ha cas the Prpösal in preatory ter, an th Coniany recgn that

such propósals,. Le., those that omy recommend (but do not reuire). diector action, arnot necssiily excludble Pw'uat to.R1,e 14a-8(i)(1) where the sae propósal WfJuld

be excluded if presente ~ a bindi propfJsa. However, the Prposa is not a propersubject ffJr stckholder acton even thoug it is ca in precatory. ter. In the note toRule 14a-8(i)(l), the COm:ssion has in fact. stte tht frg a proposa as prerywill not saegud all prqposals .frm excluson.:o a Rule i4a~8(i)(i) bais: ~'In ourexp.erience, most propósalS. that ar cat as reinendaòns or reque tJ ~boaror~ors tae acton. ar prper u,Gf st- law:. Ac~digly, we wiu ase tlt a

prôposal.dr as a .recnuendaon or sueson is .prøperunless the compad.Tf11trates otherwise." i 7 C.F.R. § 24J4a-8(i)(l)Note (emphass'added).

Using a precry formt wiUsave a proposal from exclusion on ths basis only if theaction that the proposa recommends t1t tJ~ diretors tae is in fact a proper maer fordirctor acon. Because the Pioposal would, if implemette caus the CQlly toviolate Delawar Jaw. .by adoptig an invad bylaw. it should be exclud put to

Rule 14a~8(i)(1). The Sta has. retely indicated th it will not recoIJenenforcement acon if acoiny exclude a 'prator ,proposa beuse theteoniended action would vioIae stàtè taw. See, e.g.,. AT&T Inc. (avai Jan. 7,2(0(fiding a bais før exclusion of a proposan;comendi that a board of.dîrectors adopteum:uative votig 8$ a bylaw or a long-term polic); Mea4Westvaco C01'; (avail. Feb.27, 2005) (fin.dmg a basis for exclusiøn of a .Pposa.lßøonuendÎng that the compayadopt a bylaw êortta a pet ~pita votig stdad. th ü adopte; :wöu1d viOlate

Delaware law); Pennzoil Cól'poation (avaiL. Ma. 24. 1993) (stäg th the Staff would

not rei.nd enforcemen action ag Pennil forexcl~aprecary propolth asked directors to adpt a bylaw tht coul(j be anende4 oAly by ~ stokhldl:

becus under Delawar law ''tere is a. sutial queon as to wheter ~ . . thedirs may adopt a, by-law prvion th specifies tht .it may 'De átenedoïiy bysbahóldeid'). Here, the Prøpøsal mUS be exclud lxse, as. noed in. th ,DelawareLaw Fi Opinion, DelawätläW :teqi1 tht my .oonfett of grer or les votig

power to 1 or .more ~ctors of a Delawar corpration be set out in a col'l"tipn'sçeticate of inCQrptl()~ not a py,law.

. .

2001) ('~Compaes should prÐvide a supportg opinop.ot counsçl whe threasons for excluion are baøn matt of &.te or foreignJaw. In determi1Ûng

. how muh weight to bffmJ these (Jpini()1i, nn~ já.ctor we consider is whethecounsel is licensed to practice låw.in the.jurisdiction where: the law is ä/ issue.")(emphais added).

8

v. CONCLUSlON

As discusse above, th Proposa includes an impersibly vage defition of'''independen~'' and ~ oth~se ben substtially implemente by provi$ions inCitigroup's Corpra Goverance Guidelines. Aii a result, an ba on the fac and theno-on leter preceent discussed abve, CitigroUp intend to exclude th Proposafrom its 2009 Prxy Maters in. relice oil Rue 14a-8(i)(3) 8fd Rue 14á..8(i)LO). Iiadtion, the Prposa would caus the. Compy to violat Delawa law beus itreues tht th Board adpt an invalid bylaw;Fu, be th Prosa ass theBo.ard to violae Delawar law. it li not a proper subject for stoIdolder action undeDelaware law.

As a resut, and basèd on th fa an the tiô-tion letter pi'tdisèUSse abv.ë,Citigroup intend to exclude the Pt frm -its 2009 Proxy Materalùi relia onRules I4a-8(i)(1). J4a-8(1)(2), 14a-8(i)(3) ai L.4a-8(i)(IO). By tll~er, Ireq~

contaton that the Sta will not .recnuend enfor~cmt acon .to the Comron ifCitigroup exclud 1h Proposal frm its 2009 Proxy Mat~a1s in ~Uace. on the

aforementione .rules.

9

'-E:d A

Ray T. Cheveden

-FISMA & OMB MEMORANDUM M-07-16-

Mr. Wined F~ W. BiShoff'CbanCitiSf9U Inc. (C)399 par AvenueNewYor14 NY 1.0043PH: 212..$59.1000

Dea Mr. BischoffRule 14a-8 Pi9Psal

Th .Rule 14a-8 proposa Is ceecly .submit in suport of the lonS~ter ..petfonn of our comp8Q~ Th propSl is fo th nex l1ua sbholdemeeti. RUle.:14.8: reents .~ ilDd to, ~'øiet Ù1lud:th ~ntl1uØ\ øWlp .fitb reuistok vaueuntîl atrthe dae- ofth,r~ves!ehaJdq m~nglJ~.p~ of1Iproposal. attheanua m.eeting. Thi sutt fØt,With the shåb01de-supplitd :ehass,.is iritønded to be .us for defitive. prxy publion.ths is th pr fut Joh Cheedn~dlQr hi design to ae On my be redi tbRue.14a..8 proposa for the fC)cøgshaholde meeting befre. dúr s.afthe :forl'Jt shaholder meg. Plea dkeall future communCaons to JOhn'Cheveddeö ".FISMA & OMB MEMORADUM M-07.16-

~.FISMA & OMS MEMORADUM M-07-Jíi

-FISMA & OMS MEMORADUM M-07-16***to faciltae prompt an ventiable communcaons.

Your considertion an the. cOnsidration oftheBoad öf:Diètrs is ,aptëoiàtit ~partøf.

tnø lQng:-~rJJ perforofol;'qøn:y. Please :aclWledge ~et. of th .propQsa.ptomptly by e:il.

Sincerely.. Cj

~ /It -l4~ 1¡j.gl9--t)8Ray ,Chevedd DatèRay T. Chvedden an Veronica G. Cheve4en .Famy Ttu:QS049QSmu~holder

:00; Michal.Heifè.4irm~itioup~C0in'Cørpi-e S~ . .PH: 212-559-978:8

F)(: iI2-793-7600

rc: RuIe:14a.8Prop Octobe 21, 2008)i .-Independent Led Direelo:r

Reslved. Shaholdør request tJt o:n Boa tae. ~.st n~ss t. adpt a bylaw to

requi tht our compay haveanin lea di whev.erpoible withclealyde1i~duties~eleced by an from the.in boar membe.. to b. ente to servefor more than one contnuous yea, un am COinYlt th tie _ iu inpetbochaian The stdaot indepenc would be the stdad set by th Couiil ofInsituoiu lnvesJs whic.h is siply an inepnt diror is a ~ wbø~ diorhipco hi .or he only connection to .thcorpon.

The clearly deUn~llted dut~s at a núUl wonld .nc1u:· Prsiding at all meetigs of th boa at which th chaan is Jitprt, inludinexecutve sesions of the independent i;ors.

· Sering asliai$Oft betwee the cha an th indepndt dirs.· ApproVÌng informtion sentta :th.bod.

· Appving meøtig agda fQJthe bQd. .· Approving meetig schedUls tò as. th ther is. sicient ti fo diuson of:à¡ige~ item-· Having th auori to cal meetigs of th indedet diecor. . _· Being avale forÇ(nsUii-on anddir.etcommuncatin. jf~ued by majors_bolders. . .

$t.menhr~y T. Cheved4~A key pur oftb Indepndt Lea Dir is to prote shaholder interts.by providiindependent overgh of maeme includg ou CEO. An Indepdent Lea Dirctr wfclealy delin dutes ca prmote gr maement acunbility to shade andlea to a more opjecive e"ahiatiQ~ øf our CEO.

An Independent Lea Director should be $elect prily.bad onms qUáufiÇáon. as a LeDirectqr; and not $.mply default to the Direr who ha another detion Oii.our aQ-lAdditionaly an Inepedet Lèad Diecr shuld not be rotated out of this position ea yeajust as be or $be is SaiÌlg valuable L* Diretof: ~øçe,

Please ençour~e our boar toresQJ1d poitvely. to: tlspi~pøsa an esblish a LeaOireotOtpoSition in òur bylaws. to ptotesluehölder' inteests When we do not häVtiar -ì.depedefChaian;

Ibdependeiit Lead Diretor-

Yes OI 3

Note:Ray T.Chêv~. -FISMA & OMB MEMORANDUM M.07-16- submtt'tls piøpø-l.

The above f.ormat is Jeueed fQ' puIicatiu' withut re-iimg, re..oIDatt or tiimlnaQn ot

te including .beg an concludig tejd wiespnor agrment is rehed, It is .

resctfy re tha ths pro~ k proofr bøfore itis published in the d~fid:ve.proxy to ensur that the integty of the SUmitted fort is ~pliCite 'in di prxy maers.Plea adise if there is any typographicaL. quesion. .

Plea note th the tite of the propøis pa of the art in favø:r o.ftbepropoSl. In the.

intere of clarty and to avoid confontbe title of th andeah. oth ballot item is requeed tobe conSistt thougout aD th proxy materals.

Th comP8Yis reues to ~gi a ptOPsa nwbe (repr,este by "3" ~ve) ~ on thchrnologica orde in which propos are sutt. The rete designion .0("3" orhighr numbe alows for ratifcaton 'Of aiitors t( be itei2.

ThfsprøpøsalIsbelieved tocOnfonn with StaLegai BUlleti No. 14B (CF~ Sq)teber U.200 fucluding: . .Accordingly f .gomg forw we beliçve tb it would not be appropr for C(mpies to

exclud supportg statemen langue anor an ettire pi:opo in relice on ni 14a-8(i)(3) inthe following circumst:

· the compay objec to faC asrtj:l' be .~ ar not suported:· the wmpany object to fac-l IUseaa.i wbl~ not IQeraUy fa. or misleang, maybe disput or countere;

· the 'company objects to factw lIseODS ~'* th QSODS may be mteiprete(lbyshareholde in a maer th is 'Uvole to ~ êompay. its ditor or it oØce:

anor· th coy objectS to stements. beca th ïeretbe opion oftl sboldetproponent Or a re~80ur, but ïne steiem ät not :ideed llify ~ ,~.

See. also: Sun Microsyms, Inc. (Jul 21, 200S)~

Stok will be held unti afr th anua me an the prposa will bë pres at th anuameetin. Plea acwledge t1ii propo promptly by ema.

Sliley J. Dridl~néra COi.ri$eI';orprale G9veanc

Ci:groii it)~425 Pâm.Avieullt-I Flcr .lIew YOlK. NY ïìj~2

r '212 r93 tS9õ

F 21:2 .7!l3 ¡~ii.1íopki~li eö

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VI UPS

October 27. 2008

Ray T. Cheved.an Veronica G. Chevedde Fa.y Tru

."FISMA & OMB MEMORANDUM M-7-16".

De Mr. anMr.Chevedden:

Cìtigrup In. acknowledges reipt o.f yout stockhlder prøpøsa fur sumion toCitigrüp'sstøcoldefS ät the. Anua. Meeti in Apl 2009.

. ._S~cerely. . iI"'-III/i . ¡, / l! J. ' ~,

General Counl. ~rat GOvernce

CC: Mr.Jolu Cheveddeti (Vi E-l aD UPS)

**FISMA & OMB MEMORANDUM M-07-16*

Edibit B

CITIGROUP INO..CORPORATE GOVERNANce GUIDELINES

Asaf May 27~2008

Corpoate GaVèmanceMlsslon

Citigroup Inc. ,(the "Company'1 aspires to the highest standards of ethiclconduct: doing what We say; reporting results withacçuracy and. tral1rency;

and maintaining full complian~. with the I.aws~ ni.esand .regulatiotl that govern

the Company's business.es. .Board of Direcors

The Sod of Dil'c;tors' primary re$pOn~ibilit ,i$ to providè efføctiv-Ø QOv.emal'Ov.ør the COpany's afaiJ$ fOr ltè .bfrt öf lts $lQCkta:ldØ($, änd to balati th

interests of its. divers constituencies around the world, inCUding :its customers,enipJoyees¡ supplie.rs and local communities~ In all actins taken by the Bordl

the Oire.ctors are expected to exerise their business judgment in what theyreasonably believe to be the best interests of the Company. In discharging thatobligation, Directors may rety on the hon~ an int~grity Of th.e Company'ssenior executives aO it outside advsQI' and au.ø.it()l'.

Num,ber .andSelec.lon of Board Members

The Board has the authorit undr the by-laws' to se.t the, ;number- of Directors,which shQuld be in :the .Ì'ahge :of 13 t~ 19~ With th~' f~)(ibiUtytø fttteas$ th$number of members in order to accommodate the availabilty of an outstandl.ngcandidate or the Bo~d.'s changing neøds and. circumstances. The. :Soard mayalso appoint honorary directors. Honorary directors are invited to Boardmeetings. but do not vote on isss presented to the Board. .Cadidates for the

Board shall be selected by the Nomination and Govemance Commlttee¡ 8ndrecommended. to the Board of Directors for approval jn acordanc' 'Wh the.qualifications approved by the Board and' s&t fort below. takingintoqonsid$rat(OÓ. ttie OVeraii .cø.mpøsitiQn and dNersity of the aQar(fand ar$ås. OfexPrtse that new Board :membèrs mJghtbé- .ablë to offè.r. O(røcIors are$Jèctøby th stoøkhQldrs at each. Annuaì Meetng.. to, serve fOr a .Qne.:-vear te. Whfch.øxpires on the date of the. next Annual Meeting~ Betwe.en- Annual Meetings; the,Board :may .e.lec additional Directors by majority vote to serve until the next

Annual Meeting. The Nomination and Govemance Committee :Shall nominateannually one ot'ths membërs .Of 1h~ aoa.rd to $eiva as Chairman of the Board.

Confidential Voting: Policy

It is the Company's: poncy that every stockholde.r shall hav.e .the right to reqUirethe Company to keep his or her vote confidentiaf, whethersubmilt~d by prö)~

1

ballot, intemet voting, telephone voting or ~therwise. If a stockholder elects" inconnection wUh any decision to be voted on by. stockholders at any Annual orSpecial Meeting, to ke$.p his or her vote confldøntial, suCh 'lot$: shl1I be k$ptperanentlyconfidenlÎal and shall not ba diSCosd to the CQtnpany, to itsaffiliates, Directors~ .offcers and employees or to any third partes except: (a) .asnecessa to. meet applicable legal requirements and to assert 'Or defendctaimsfot' or against the Company, (bl in case of a. contested proxy solioitation, .~c) if.;8stOckholder' makøs a. writtendOmr'SOt on the. proXy. .card ör otlrwsecommunicates hi$ or ber vote to rnanRgement, or t'd) to allow the inde.pndeiitinspectors of election to certify the results of the vote. Employee stockholdrs inthe Citgroup Common Stock Fund under the 401 (k) plan or one of theCompany's retirement, savings or employee stock ownership plans already enjoyconfidential trealmentasrequired by law and, without the need for any action ontheir parts, wilL. con~nuè to vote their shares c;onfi~ntiairy.

Director Independence

At 'feast two-thirds of the membe .of the Board should be independen. TheSOard has adOpted the DirèCor Inc;pendEmce Standards set fort in theattaêfiéd Exhibit ''A": to assist the Board 10 maki.iO theindeperidencedetermination: The Oirector independence Standards are Întended to comply

with the New York Stock Exc;hange (C'NVSE" corprate governance nilé.s an all

other applicabfelaws, rules and regulations regarding director independence ineffect from time to time. A Djrector shall qualify as independent for purps,ofservice on the B.oal' of tha Company and its Committees if the Bord hasdetermined that tl Director hanó niatèn~1 reJa.tion~hip wit th company, åSdefined in tt:e Direcor Indel)éndønc Sthda.rds.

Qualifications for Director Candidates

One of the of the Board's most importnt reponsibilties is identifyng, evaluating

and selecing candidates for the 'Board. of Direcors. Th Nomination andGovernance Commitee rêviews the qualifications. of potential director candidatesand makes recommendations to the whØle Board. The facors :considered by theCommite and the Boa.rd in (tsrevlew of pot~miiai. candidates lncl.Ldø::

· Whether the. Canidate' tl $Xhlbltèd b$.havor that indJeate$ h$. or $he is

commited to the ihigJi&. .etiicar $triøa.tds an Our' Shared'Assponsibîlitles. . .

· Whether the candidate. has had biJslne$$, goernmental, non-profit orprofessional e),peöen~ .at ~ Cha.lrrá.nf Chïaf ~ØCivè Oficer, ChiefOperating .Qffcer or equivale.nt poj¡cy~maklng.andop$tional Jevel of alarge organizatin with signifcant infemational activies thatindioates thatth candidate wil be able to .makea meaningful andimmeatecontributîon tothø Boad's discussion Of and deision-making;øn: the array.

2

3

Additional Board servce

The number of other public compay bOrds on whiCh a Pit~t()r may serve shall

be subjec to a ca~by-cse reViw by the Nomination and ~vernnceCommitte, in order to ensure that eah Direcor is able to devote suient timeto ~iform his nr her dutes as a Direcor.

Members of the Audit and Risk Managemeiit Commitee may not "rYe on morethan three public company audit committees, including the Au.dit and ÄiskManagement Commitee of the Company.

Interlocking DIrectorates

No inside Direcor or Execute Ofr of Citgroup shall serVe as ädlrecto.r 01acompany where a Citigroup outsie Director is. an Executive Officer.

Stock OWrsip Comiten

The Bod, th ExèCut Commitee of CitgroUP's$8ior nugérh$ntfmembers of the Senior .Leadership Commite and ()ther designated :members ofsenior management are subject: to a Stock OWership Commitment (asOC,which requires these indivduals to maintan a minimum ownership ieVéI ofCitigroup stoc The Board reVid th.e sac in 20 to refleet ohange in.Citigroup's mangement and organiztiona sti~ure. The:Bo~nd. thExecutie Committae of Citigroup'š sentor managemënt must hold 75% Of thnet shares delivered to them pursuant to awards granted undér th Compans. .equity programs"subject to the proviions ootained in, tiecommitent.Members of the: Senior Leadership Commitee must holdSOkof the net sharesdelivered to them and other designated members of senior management musthold 25% of the net shares deivered to thm. The holdingr~quii"ement is resetat age 65. Exceptions to the SOC may include estate-planning. trans.$ctions a.dcertain other circumstances.

Retirement from the BordIerm. Umit

Directors may serve on the Bord until the Annual Meting of Ui Compay nextfollOng tIeir 72nc;bil1day, an ma noJ be re$lected ~ftr re.aching age 12,unleSS this requirømøntha$ ben waíed by th$aøard fQ å 'vali rea$ri~ .ræ

Company has not adoted tean limit for Dil'tors.

Change in Status or Responsibilities

If a Director has a substl-tial change in proflS$iOnaJ resibilites, oçcupation

or bU$ineS$aSSiation he or she slltildnøtl t.he No:mination and Governanc

Committee and offer hiS or her rssigriation from lha ,Boa. The Non1natòfl anGovernance Committee will e\1aJua1e the. iaet and circumstces an make a

4-

recommendation to the Board: whethr .to. accpt. th. reslnaUonor requestthat

the Director continue to serve on the Board.If ä Oirector aS$umes a. :signìfioat role in .a not-for.;profit entity he or she should

notif the Nomination and Governanc Commitee. .

Board Commltteés'

The standing committees of the Boai'darø thel;ecutive CQmrniree~ lhè Auditand Risk Management Committeei th P~rsonnel and Copensation Committe,the Nomination an Governance Committee .alld th Public Affair Committe-e.

All. memb¡nsof the Audit and Risk Management Commitee.. the Personnel andCompensation CQmitt~eand the Nomiiiation and Gov.emance Committee shallmeet the independence criteria, as determined by th Board, Sétfortti in thNYSEcorprategovernare rules. àrid all Qthe.r applicable laWS, iid.e$orregulations regarding director inde.pendence..Committe members shall beappointed by the Board upon recommendation of the Nomin .anGovernance Commiltee,after' c.onsultation With the individual Directo.Committee chairs and members shall be rotated at the recommendation of thNomination and Governance Committee.

Each committee shall have i1$ own wrien charter which s.halJ comply wil theapplicable NYSEoorprate governance., ruJe.;8nd :GUlar .applicabe laws, ruand. regulations. The: charters shall set forth the mission .and t.eponsibilitiesofthe committees as well as. qualifications for commite membership, proceduresfor committe member appointment and removal, commitee structure andoperatiolis and rep.orting to .the BOard.

The Chair of each committee, in cønsulttlon with theoommitlee memberst shalldetermine. the frequency and lengt .of the. commitee meeti consisent with-any requirements set forth in the committee's charter. The .Chair of eacçommitte.e, in .consultation with th apprpriate members of the coittee andsøniør manaOem$ilt. sh$1I ;teveJQptñe CQmitee's ag~nd.c¡. At the b.wnning ~fthø ,Yéar~ each commlte.eshall e$fabli$tt a $CheQllle .ôf major topjCS to" be:discussed during the year (to the degree these can be forøSén).Thø ag,~ndàfor each committee meeting shall be .furnis1id to' all Directors .in advance .of the,meeting, and each independnt Direcor may attend any. meeting .ofanycommittee, whether or not he. or ,she is a membe of that .commitee.

The .Board 8n.d each cQrhmitteS $lillhavs the pbet to hite and fire ìndépendøntlegal; finanial, orotOet adYisor$ as they ma.y daElm rtøc8$S.ry,'witlu)ii. :cøosuitÎ.ogor obtâining the approval of sen'ior management of the Company in: advance.

The. Bord may, from time to time; ~stab1ish or maintain addiona1 commltes.,asnecessary or appropriate.

5

Evaluation of Board Performance

The Nomination and GOvernance .Committèé shall .oondl,ct an annuål review .ofBoard performance, ìn accordanC$ with guidelines recommended by theCommittee and approved by the Board. Thlsreview shall include an overvjew ofthe talent base of the Board as a whoJe as well as anindM.dtlal. asment ofeach outside' ,Director's qUalificätion as independent undet'the NYSE ø1'Qràt$govémancø rules. andallotl~rappIiCabIØ I$Ws, rUI$Sandregt;latioò$ regardingdi.rector ìndpendenCé;consideràtiOi' of any ,changes in a OJrectofsresponsibilties that may have ocurred ,since. the Director wasflrst -elected to theBoard; and such other factorS as may be determined by the Commitee to beappropriate for review. Each of the standing commitees (except the Exeçutiv$Commitee) shall conduct an annual evaluation of its own performance asprovidEK in its chartr. the tesults of the Bòard and committee evaluatLoi'$ shall

be summarized and presented to the Board.

Attendance; at Meetings

Directors are ex,çted to, attenc; the Companys AnnuRr Meëting of Stockl:Olders,Board meetings and. meetirigsof commitees and sub.committøes on which th$Yse.rv$, and toSP$nd tll tliie neded -and meèt àS frequently as nè.o.essa to.

properly discharge their responsibUitles. Information and materi1s tht areimportant to the Board'.s. understanding of the business to be conducted.at aBoard or committee .meeting should b.e dIstributed to the Directors prior to themeeUng, in order to provide time fo review. The Chaiimanshould Ø8tablish aça~ndar of st~dêird agenda items to be di$Ç~d~t eaCh me$t.ng aehèduletj fpbe held over the course ;öfthe Øn$olng year,änd. tQg~rwith .thè Lead Ditetor,-shall establi$h th~ agenda f()t éach Board: rrétiög., eac Soard member is freeto suggest items for 'inclusion on the agenda or to raise subjects that are .not onthe agenda for that meeting. The non,.management Directors shall meet inexecutive .sessionat each Board meetng. The Lead Director shall presrdeat theexecutive sessions.

Annu.l Strat.lc Review

Ihe Board shaii review the Company's long..teTmstrategie plans and the principaliss.ues that it expects the Compny may face in the future during at leas 'onBoard meetin~eac.h year.

Côllm..nicati90$

The Board believes tht senior manageme.nt speaks for the Compay. IndividualBoard members maYi: 'from time to time, meet or otherwise communicate -wJthvarious constituencies that are involved Wi the. Company, at the request of theBoard or senior management. .

6

Director Accss to Senior Mana.,ment

Directors shall have' full àr1d free G,ccess to senior management and oteremployees of the. Company, Any rnøetln.Qs or contact that aPiréÇtør wIshes toinitiate may be arrFlged through the ceo ,o.r the Secreta or directly by tllDirector. The Board welcomes regular attendance at each. 80ard meeting bysenior management of the Compay. If .the CEO wishes to have addltionalCompany personnel ättendeèS on a regular basis, thssuggestion should be.brougiit to the Board for approval. .Director Compensaon

The form and amount of director compensation is determined by the Boardbased upo the recommendation of the Nøminaon ard Govemancf; CQmmite.Th Nomination and Govërnrtce' Committee shall conduct ;~In annual review ofdirector compensation. Directors who are :employeës of the Company shali notreceive any compensation for 'their servces as Directors. Directors who are notemployees of the COmpany may not enter into any consultng arangements withthe Company withQut the prior :approval of the Nominati and GovernanceCorrmitee. Direetors who SèlVeon the Audit and Risk Managemènt Commil~shall not dIrectly or. indirectry provide ör r.ecGjV& ~ompetiö.;lfQt pro'4dingaccounting" consulting, Ie.gal; invè$têöt banking or' finanèiaf adv¡$Q;ysØrvÇe~ totheCompanyò .Charltable Contributions

If a. Director, or an Immediate Family Membér' of a Director (see page 15 fordefjnition) who shares the Oirectors- household, serves as a director.. trus.tee orexecutive officer of a foundation, u.nrvel"jt or other oQn-profit organjzati.on

("Charitable Organization") and such Charitable Orgization receivescontrbutions from the Company. and/or the Cigroup Foundation:. suchGontriutions .Will be reported to .the. Nomination and Governnce Commitee at,lea,$t .annually.

DlrecorOrÎe.l'tation. ändCOhtinliing EduCålÎÖri

The .Company shall provide an orientation: program. for new Dirors which shallinclude presentations by senior management on 'the Compaysstrategic plans.its slgnificant financial. acounting and risk mangement issues, its ,.complianceprøgr;ams, its Code of Conduct. its managøment stroctureaoo Executie Ofibrsan it internal ål'diildøpet1nt aUditor$. The òtiøntatiøn. pr.ogam may ll$ø.

. 1nclude visits to certin of theCompanys t.fgnífcant façiltl$$. to toe ex.tlt_practfcal. TheOompay shallal mak avallabie contirndng educationpro.grams for all members of the BOrd. All Directors are invited to paricipafe intheorletation and contnuing education programs.

7

Chairman and CEO Perfo.mance

The Personnel and Compensation C()mmit shall conduct an annuar review ofthe Chairman's and thE; CEO's performance (I;n1e$s the Ohairman is a non-. ~xecutiV(;l chairman),. as set fOrt Ln )l$ ç;lìärtet~ Tl- l3atd QfDireëlors .$hallreview the Persnnel and Cooope.nsalÍon Committee's report 10 order to ensure

that the Chairman and the CEO are provicßng ~the. best leadership' for theCompany in the long and short teon.

SQCc-lsiört PI...."lng

The Nomination and Governance Commitee, or.a subcommittee thereof~ ;shallmake an annual repor to the Board ,on succssion planning. The entire 'Boardshall wor with the Nomination and Governance .Committ, :or.a subcmmltèethereof, to nominate ,and evaluate pOtential SüC$SSOI' to .tlø ceo. TIeCEO$hall i"eét penoclcaly with .tl1e NotOlnationand G:ovema.iíC& CQnimittëe 1n order

to 'make available his or her recommendations and evauabons ofpotentialsuccessors! along with a review of any development plans recommende forsueh indiVduals. .

COde of Conduct and Code of Ethics :forFirrancial Profssion."

The Company has adnpted a Code of CQnøuct an otr in.temalt)liçies andguidelines deslgnedtò support the. mission statement set forth above and tocomply wih the laws, rules.and regulations. thát govern the Company'sbuinåssoperations.. The Coe of Conduc appJies to all employees. of the :Company,andits' subsidiaries, as we" as to Directors, temporary workers. ân'C'otherindependent contractors and consultants when engaged Qyor' othEUWJS$repr~senting the COmpa.y and it$intø..r$$t. 10. ad.i.Qn1tle :CQJpany hèàdoptéd a. Code of EthicS for Flhanoíal. P(ofessiQoal, which appli&s :to theprincipal 8)(ecutveofflcers of tlGCQrpany and, its repoing subsidiari and anprofessionals worldwide, serving in a finanest accounting, treasury; fa or Investorrelations role. The Nomination and Governance. Comitee: shall monitorcompliance with the Code of Conduct, the Code of Ethics . for FinaçialProfessionals and otherÎnt~rnal'poliCié$ and. gi.idellnes.

Recouprn.ntof Unàrne Compe.l'o..

If the :Board ,learns .of any misconduct by .anExecutiOfficef' that contributed tothe Company having to restate .all or.8 poion of its financial statemèl1ts, it shâtake such action as it deems necessary to. remdy 'te misconduct, prevent ltsrecurrence and, íf approprlatø.. I:~$d. on aU reløvant 'facl$ arid clrcumstar$$1puni$lt the Wfongdó$r in a mannø:r it dëe,ms apprQpriatë.. I:n detèróiirifng whatremedies to pursue, the Soard shall lakeinto; account aU relevant factors,including whether the restatement was the result of negligent, intentional or grossmisconduct. The BOard willi to the full extent permitted bygovemin,g law, in allappropñate cases, require rembursement of any' bonus or incenti

:8'

coinpensationawarde.(l to an Ex$culive OffJCèt Q"r $ffect the' cacellation ofunvested re.stried or'deferred stoëk áwárd p$viously grand to tbe executieOfer if: a) the amount of tbe bonus or incntivecQmpensatlon was calculatedbasd upon the achievement of certain financial results that were subsequentlthe subject of a restatement, b) the øx:ecutlve :engaged in intentonal miscnduØt:that .caused or pa.rtiallycau..d the need Jor thé .retatemenf; and c) the amountof the bonus or incentive compensatin that would have been awarded tbtheexecutive had the financial results been property r~port WOuld nave. been lowerthan the amount actually awarded. I,n addition,the Booould dismiss theExe~utive Officer, authorize le9alaction forbre~Ch of fiduciary .duty .or take suchotber actiQn to enforce the éx.ecUtve's obliøatjon$ to Citigroljp as. may fit the facsurrounding the parular ea$Ø. Thé Board may, lndetørmlnirig tbeappropriâlpunishment factor take into account penalties .or punishments impose by thirdparties, .such as law enforcement agencies; regulators or other autories. TheBôardspower tö détermine tne appropriat puniShment 'for the .wrongdoer is inaddîtion to, and not in replacement of,. remedies Impoed by such entites.

For the purpses of-this Guideline, IjExecutíve Officer) means any óffeer who hasbeen' designated an .executive oficer by the Bord.

Insider .Transactions

The' Company dOèS rit genetaUy .øurçhase Compary comöri stock fr,ortemployees (except in oorme.ctÎOnwith thë. l'øulÏ admin.istratiöi' of EUTïpIQye~

stock option and other 'equi compensation programs.). Oirecto;s and ExecutieOffcers may n.ot trade shares of Companycommc;n stock, during anadministrative "blackour period ,affecting the Company's 40(k). plan or pensonpran putsuat to Which a majority ôfthe Company' employees are resctedfrom trading shares of Compan tommon stock Qr transferrng funds. into or outof the Company common stolç fund,$UbJect .tj) any l$gal or régúla.toi1restrictions and the te.rms of théCompany's Peršnà1 Trading POlfey.

StoCk .Options

Thø Company prohibits the repricingof :stok options. All. 'new equitcomPëm~atioR. plans and material r-eVi$iQn to such :plÇns shall be submitted to

stockholders fot app:roal.

Financial Services

To the extnt ordinary coure. services, :including brokerage servce, baking$èÏ'ic~s, loans, in$urance seMCèS and other financial séMes, proVided b,y'th"&Company to any Direclöt ,or linmecUatø Family Member of a I)ireor~ ar~. not

otheiwi$è SPé.ëific.ally prohibited under th~se CørpratèGo,vø.tance GUidelJn$sor other po1icies of th& Company; or by Jawor regu.lationi such $ßrvces s.aii beprovided on subtantilly the same terms as those prevailing at the time. forcomparable services provided to non-affilates.

9

Personal Loans

Personal loans may be made or maintined by tie. Company to a Diretor 'or anl=xec_utive Officer (designated as such pursuant to Secion 16 of the SecuriesExchange Act of 1934); Qr an Immediate Family Member who shares .suchperson's household, önlyif the. lo$h: ($l .is m~de in th ordinary course 'Of

busin~$S of the Company or one of its'subsJdiaris, is of a type that is gè.neraUymad available to the, pUbl!O, and Is on market termi or terms. that are no morefavorable than those offered to the general. public; '(b) complies Wi.th applicablelaw, including. the Sarbanes..ley Act of 2002' ,andA8gulation 0 of the Board ofGovernors of the Fe:d&raIReserve;(c) Whn made does not ,invoive. more thanthe normal nsk of collectibifii t)i" present other unfavorable featl.rès: an(: ((I) ~not classified by the. Company 8$ Substndard (II òr WOl-, .8$ \ defin"ed. by tlOffce of the Comptroller of 'the Currency (OCO) in it "Ratirig Credit Ris,Comptrllets Handbook.

InveslmentsIransactlons

All Related Part Transactions (see page 15 for definitn) shall 'comply with theprocdures outlined in the Company's Policy' on .Related Part, Transaçtions.Transactions. (i) involVng a DireCtr (or an Immediate Family MØmbør of ø,.Director) ,or, (ii) if equal to or in excess o.f $50 milion and invoMngan ExeputlveOfficer (or an Immedíate Family Member of an Executive, Oficer) sball reqUirethe approval of the. Nomination and Governance Committee of the Board.Transactions involng: an Exutive Offic~r (or an ImmeiateFamíl Member afan Executve Offcer) valud at less, than $50 mnlinshallre.quire' the approval ofthe Transacion .Review Committee. .The Company, its Executive Officers ,and any Immediate Family Membe Whoshares an Executive Oficer's hoUseñold, in(tìvidully or in c;mt)inätiOii, :$haJ .notmake. any investment in a pa.rter.hlp ar' otñer priateiy held .eiitlt in Whioh a-Direçtør is a p.nncipal or ~n a 'püplidlY traded 'CQmpany jf: which a Director owns o.rcontròls more than a 10% 'intërest.

EXcept :as othe.rwseprov.ide.d b¥ th1s section". a Director, or Immediate. FamilyMember of a. .Director mayparlicipate'in ordinaiycourse investrènl oøøörlnitiësor partrShips offered or :spQnsored bY the CQmpan.v only' on$ub$tati~lyS¡milar terms $S thQ$è far Øèrtparable 'ltansactiøn$Wlt.hšimilarly sltuat.ed non.affiliated pétsons~

Executive Officers and Immediate Family Members who. share an ExutieOffcer's household may not invest in parterships .or other invéSentopportnities spOnsored, or otherwise made availablS, bt the. Company unlèš$their partiCípation is approveClin accordance with these GuideJíOè$. Suchapproval shan OQt: be' required if the invëstmêtit oppomty; (1) Is offered to

10 .

qualified employees. an investment by Exoi.ìv.e Ofrs is. a.rOVèd by the.Personne.land Comnsation Comite.e; .(Ii) is mac. available to. an ExecveOffiCer actively involved 1n a business unitt the principal acti of Which is tomake such investmEmts on b$half of the Company~ and is offred pursuantto R

co-investment plan apptovsd by the Persnnel and Cö.tnpensaÍÎQI Commïnee or(ii) is offered. to EXecutive Ofcers :on the samøterm. as thOSé offered toqualified pers who are not employees of the Copany.

Except with Uia aproval of the Nomination. and Governance Committeè, noDirector or Exectjve Oficér maYiovest in a thil"d-pari entity if 1h investentopportnity is made available to him .01" her as..a result of suCh indMOäl'$ ,statusas, respectely,.8 Oireotoror an Executive. Officer of the Oompany.

No Director or Immediate. Family Member who shares a Direats householdshall receive an IPO allocation from a l;röker/t-âler:; includng,broker/dl¡alers nQtaffliate with the Compay. .Indenification

Ih~ Company proi.ddesreasonablè directors' and officel'' líablli insuranc forthe Directors and shall indemnif the OirèCdi' to th fulJèst .extent petmittød bylaw and theCompay~ certficate of incoi:ration and by-iaws.

Amendment

The Board may amend these Corprate Governance Guidelines, or ;grantwaivers .in exceptinal circumstaes, provided that ahy such mOdification Qrwaiver may not be a ViolatÎon of any applicabJe law. rulê or regUlation atdfurther

provided that any $UCl' modification or Wåiveris appropriateldi$Closød.

11

.Exhibit "A~ï.To Corprate Gowrançe G.....lln..Direr Indepen~ Stertdards

A Director shan qualif .~ independent for purpes Of ~rv on the Bo~ird Ofthe Company .ând it commitees if the Board hà$ determined th th .Direcr

has no matenal relationship wJ 1hCompny,. eithr direclI or as ân ofr~partner or employee of an orgniZ that has a relationship wit th Company.A Djr~ctoshall be demed to hav no material relationship with th Compayand wil qLJauty as indep.endént providedthat (a) lh DireQtor n1~ts the DirecQrliidépendence Standards and (b) .if thre exist any relatio$hip or tracon Ofa typ~ not specifically mentioned in th Director Independence Standards, thBoard~taking into acount all relevant facts and circumstances~ determines thatthe exitence of such other relationship or transåcton is. not matenal and. would

not impair the Directots exerc of indepènt judgment.

These Director Independence .stards ,have been draft to Jl1e. thindependenërequjrementcontaned in the NYSE c.orpørate goei1anc ruløand all other aplicable laws;, rules and regulations :in effct from time to time andare intend to . supplement thepr,ovisions cotaned¡ in the Corate'Governance Guidelíne.s~ A fundaenta premise of the Director Indepandence

Standards is that any permitted: tran~ctn$ betwenth~' Compny (inclUding itssubsidianesand .affîlats)andâ Diretor, any Immediate Family Member 'of aDirector or the'ir respectivø Pnmary 6ûSinøss Affliatiorl (see p8l; 15 for

definition) shaii be On a.rrs-Iengt~ market terms.

Adviso, Consulting and Employmnt Arangents

During any 12 month perî witin th& 18$ three years, neither a Direçtor nøranyImmediaté FamUy Member of a Qir,øçtQt s.baIJ have reçelved frøm :tle CQmpaiy,diréctly or indi.rectly, any compensation, 1ees or benefits inân amount glfatërthan ,$1 OO,OOO~other than amounts pad (~)pursnt to the Compay'sAmended and Restated .Compensation Plan for Non.,Employee. Director or (b) toan Immediate Family Member of a Direetr who is a non..executve employee ofthe Company or another enti. .In addition~ no member of thêAudt an Ris Manageïnèft Co.mitteê,nQranyImmediate Family Member who shares sl,ch iiidIvdual's hoi.$Øôld, nor anyentîty in which an Audit and Ri$k Management Committ meJ'ber ls :¡¡ paner;member or Exetie Oficer shall~ witin the last tbree:yea;'.have reoived.anpayment for acounting, consultg, lel, investmnt banking or ifinancìal

acMsoiy $etves provided to the Company. .

12

Business Relationshps

All business relation(ps,lending rela~nshiP$, dapoit an .other' bakiogrelationships betwn the Oorrany and a Diréctor'sPrimary Businøss AffQiatinor the Primary Business Affiliatkin ,of ånlmmedlate Family Member of a Directormust be made in :the ordinary course of busne and on substatially-the sameterms ~s thos prevailing at .the time for' CQrable tran$8ctis Wi non-affliated persons.

In addition, the aggregate amount of payments. in any of the las three fiscal .years by the Company to, and to th Compay from,. any company of which aDirector is an Executte Offcer or employee or where an Immediate FamilyMember .of a Director is an Ex$CutveOficer, must not exc$$d the greater Of $:1miJion or.2% of sucti oter cornpay's consolidatéd gl'ss revenut:$.in any singlefiscl year.

Loans may- be made or. maintned by the Company toa Direcors PrimaryBusiness Affliation or the Primary Business Affliaton .of an Immediate FamilyMember of.a Director, only if the loan: (a) is made In th ordnary cours Ofbusiness of the Copany or on of it Sib$diarie$, is ota type that is generalYmade available to other cu$tomel'. and. is on maret. terms, or Jérms tht are nomore favorable than thos offe.red. to othercutomérs; (b) compies withapplicale law, including the Sarbes-Qxly Act of 20, Regulation 0 of thBoard of Governors of the Federal Reserve. and the Federa Depoit InsuraCorporation (FDlC) Guidelines: (0) when made dos not iI'Ivolv mo than thenOim~1 tisk of coUE'çtibJlity 9t i:r$s~nt othr tiilfavoi'ällé f~U~$; ~lÏd (a) I$. not

clasífed by th Company as Subsndard (fI)or wOr$, a$ .d.èfinèd by thé Of~of tile Comptrollet óf tte Currency. (000) in Il$ "Rating Credit Ri$IC' Comptroller's

Handbook.

Charitable Contributions

Annual contrbutons in any of the last three calendar year from. the Companyandlorthë Citigroup FoUndatiøn toa fouildation,tlr1iVeršly, òr .øter nøn-proorganization ("Charitale Oi'izioit') of which a D¡rècr~ Ol'án ImmediateFamily Member who sturesth Director's househofd, serves as a diretor,trtee or .executve oficer (other than the Oitgroup Foundtion :an -òterCharable Orgizatins spred by the Company) may :not exceedthgreatér of $25().OOO or 10% of :the Charilé Organizatin's ~nüal 'çÖß$lidatedgrosS revenue.

ia

EmploymentAffliations

An outside Director shall n:ot:

(i) be or have ben an employee of the CQmpany wihin thel8$ threeyears;

(ii) be part of, or within the .pa three years have ben Pa of, aninterlocking direorate in which an Execute Officer ,of the Conpanyserves o.r has servßd on the cotJlpønsatoncQrm." Qt. a conipal1ythat.concurrentl employs or employed the Director as an Excuive Oficer, or

(ii) be or have. benaffliated with or employed by a present or formroutside auitor of the Company wihin the fie-year ,peri folloWil1 thauditing relati(lshjp.

An outside Director may not have an Immediate Family Member who.:

(ì) is an Executive Offr of th Company or has .been within the lat thre

y~ars;

(ii) ìs. .or within .the t)ast three year$ has be$n, Par of an interlocking. directorate in whichlin Executie Officer of the Company serves or hasserved on the copensation commitee øf a compay tht concurrntyemploys or employed such Immediate Family Member as an Exective9fr; or

(ii) (A) is a current partner of tle Compay's outid auditor, or a~frentemployee of the Company's outside auditor' who parcipates in theauditor's ,audit, 8$uran or ta cOmpliance practic, or C$.) was within thelast three .year (but is no longer) a parter of or employed by thCompanýs outside atditor and persnally .woed on th Compans auditwitin tht time.

Immaterial Rei-ilonips ...Trai-ctlo,.

The Bord may detemiine that a. Oirector is independent notwh$tading th,existence of an immarial relationship or transtion been the Company and(i) the Director;(ii) an Immediate Family Member of the. Direcor or Oil) the,Director's or Immediate FamilY' Membr's. business or charie afflìations,

proi~ th$ Ct)rtP8Y$ Proxy Sttøment. ihCIUd~$.a spif d.iQn t)SUhtélations!ìit) as well .8$ thQ' ba$.ís for th Bord'$ dèt$miioatiilh.at: $ìhr.efationship does not precll!l;ladøténn¡natìon thtttè Director is indpendent.

Relatinships or tranctins betwn the Compay and (i). the Director, (ii) anImmediate Family Member of the Direcor or (iü) tbeDirecr's or ImmediateFamily Member's bUSné~ or charitable .affllatins. that copl wit theCorporate Gøvernnce GufdEiilis. including but not limited to the Oirect()

14

Independence Standard that are part of the Oorprate Governance Guidelinesand the sectons titled Financial Servces. Personal Loa andInvestments/ransactions.are.d$emed to bé categorically Immatenal.and dO notrequire disclosure in the Proxy ,Statement (un.le$$ such relationShip or-trnsaction

is required to be disclosed pursuant to Item 404 of SEC. Regulatlò.n S-K).

. Definitions

For purpes Of these CorporatQ Governance Gl.ddeUnes, (0 thø term '''.IrnrnedîateFamily Membet means a: D..ractals or. Ëxeoutlvè Offcer's' (deignated as suchpursuant to Section 16 of the'securites Exchange Act of 1934J spouse~parents,~nep-parents. children. step-ehildren. siblings, mother~ and father-in Iaw~ sons",

and daUghters-in-law, and brothérs and sisters-in-law and any persn (other thana tenant or domestic employee) whQshares:the Oirector's hQuSehôld; (ii) theterm "Primary Busin.ess AffilatIon" means an enti øfWhich thè Director or'Executive Oficer; or .an Immediate Family Member of such ,8 pers,ÎSanoff.ier. partner or employee orin whic the Director. ,ExectltiveOfcer orJmmediate Family Member ownSdirectt. Dr indirecy iat least 'a .5% eaityinteri:st; 'and(m) 'the. term ItAeIlted Part. Transaction" means any' finanoiatransaction. arrangellt 'or r~latiQnship In which .(a) lh$äggl"gat$ amountinvolved wil ór may be exeëød to ex.CØëd $1:20,000 Îrianyfis.ca!yea.i"~ (b) theCompany is a participant. and (el any RelRted Perso (any Director. anyExecutive Officer of the Company, any nominee for direcor, any shareholderowning in excess of 5% of the tetl equity of the Company. and any. ImmediateFamily Member of any such persn) ha or wil have a direct or indire materi.intérest.

15

E:dnbjt C

The Council stongly support't concept and adv~ate th comp adoptconsrvatve interretions of approval requiments when conftted with choice. (For

example, tli¡ i;y.jnclu. maenal andmeIits to the plan).

6.5 . Peñorman~based Compensatn: While the Co.icil is a strng adv~K:ofpetformancebaed.concets in executive comnsion we do not surt peronn meäreiii ditorcompnstion. Perormce-b compnsti fordieers li siglÙfica.pontial to. confciWith th dÇttor'. prai role as iiØi~i.etúr~i:ve. øf $lieoVi~~

6.6 Perquies: Aside ~m meeting"'rel~e~ slloh as air-fae, hotel:amidatiQns anmod trveVaccident insce.. the Coun~il ~Uevesthat diector should teqeive no otb

perquites. Heath Ufe and other forms of insUle~ mahig grts to chanties ficiaplan, autonibile allowances an other siiK ~uisite cr the lIa, benefit& offre to

employees. The Coun belie.vC! that chatile aw.ar. prog ar øn uneces beèf;dictors intete in posthumous donons cando soon thir own via este plag. InlJnt

tQ/en gifl of modes valUt ar nOt considered pctuites. ..

6.7 Repriclng auclExebane Progms; The Council believes tbui nø cirsta'sbøulddire.cors parcipate in Or be eligÎ~l~ fot .rriciig at exchane pi'o~

~8 Einploynient ClJ... Severace ..ad CJange-r-entr.i P.lØ..en~: N'ø~ioye dji:tots

shoud Dot be eligible 1:. ~iVe $iyebaßg~óntrl paymnts or sevCJø .atg~rttsöf Wiykind.

6.9 Retiremeat Arangemts

6.'- Retiremeo.t ØeDeIits: Sice ,nonployee diteors.ar electe relUeives óf

shaowners and not company emloyees, they should not be offerretíme.benfi

such as delQed befit plaQs or defen stokaw .lr should they lXH~n.tlll~tQSpial pO$t-retiemet pequisites.,

6.th Dtfert~ ç...npnnthPJa:. The Cøn do Ill objGÇ tQ -lIPWÙg ~tØdeter ëáSh, pay Via a ded compioo¡;Iaifor dittots. IlowßVer. 1b Couilbelieves th such :invest alteves offerd underdefèrd :compon pl fordirëètors should,maar ite offerd. tø enlQyees.in bind-blltt:ldefeJTal plan Non-emloyee di~ii should ii ~.eivt "swècri for defeig ca paymets intocompan stok.

6.10 Disgorgement: Directors sbQutd be reuired to rey compenson to the coy li the event ofinalfeasance ora breah of fiduciar .duty involving ,the dior;

1. . I¡¡deoendent Dirèetor Defiit

7.i introdQction

7.1. Basic Dermition of'n Inepdent DIrector7.3 Gûidelines.(or A$seQig.Directør InClè~.ö~e

20

7. i Introduction: Members of th Council of Intitutiona Investos believe that.the prmulgati0!1' of anarwly d~wn defition of an inddet ditØr (couPled wit a poliay speityiitg tbt at leatwo-third øfboard members ,an 8i mem of the au compion and nominatngcommttes should meet th stan) is in the corpiøn's an lin sbaowier' onomg f'maiainte beaue~ .· Independence is critical to a propey fuCtlong boar;

.. èe clealy defible relationss pose a th to.a dicts. unquaed inepnceiii a sid'ticien nurber of ea ~ tly Wamtadviuce idetificaon; .

· the effed of a cøiict of int on$. indiidíl dîr is liely to be alm imossibleto detec, eithr by shareoner .or other board mebe.; and .

· Whle an ,ac-the-boapli(:tion ofan defition to a lar num of pele wiJinevitaly miscategori a few of them, this rik is sufiently sman th it.is :6 outweighby the sigficat benefits.

The ïnm. .0fthiCouiil reogi th~ìnepeit dirllts do.n'Ot l.9aty sh a sinslese òfqyäjti~tbá':at ,tiÖt shby øø.:~dent.ditectôts. C~tientlyoo.çle rWe cmunerlydescn'b and diStingu indeenent dÌtor. However, the .fudepdence of the

4b'edor. de. on. all i$J~Gi,tle dirfor'has,. mcl~ng rclaonships~iw~4ktQJ$~.tbatmay Côi:roin~ the dfrr's objtçivity al løYålt tQ shmowAer. It is the obligation ot1hedictors to coider ail relevat facts an circumstaes to detene whet a direc is to becoide ine~'lbe mebers

of theCocU aproved the follwin baic defition of an lJickpend dirto

7.2 Baic. DefiDin of an Indepedent Director: An iiideenen dior:s',someoe whos ooynontrvial profesiona fa or tiia conon to the coipratioi it chaCEO or

an other eXt!utive off~r is li Qr her di:ijp. StaëdllQ$ siMly, ai úiele: 4ir~ris. . rsn wh . dftôr":- conStÎtUtës hi : . h'- o;"..,~.. . ~~ '.L (:0""...:00,a.pe . . QS. ... _:-l .. . ... . 01; .... "'1.. .. "...n .. MJ.C . ~.l.,.,....

73 Gnidelies ror AssessIDg Diector IDdepend'ence: The not i: follow arsuedto givt

ad Iaiy d 'då' .m..re ih'ç:.iri lti nslo.... A ..:_.... 'il ti.a. c a~ gw. . Ul.,...I' ,. ..g~~.._:n.~ 0 .~.l. . Ul~~onvi. :nQ ~consdere Îndeli if he,ör She:

73. (s, or in. t~. past 5 yeil ha 'been, Qr wlîöse.rtJitjve Î$, or íø th-p S' Ytf l'a been.employed by tb.coraon oremoyed by or a dirr ot an:aliaæ;

NOm., .A "afùt1' ielat!lnsQi Í$ :~b.~ lfoli eøtieì~er aI~ W puruo,an amgèt with øneormor~ Qth.pe~ owns orDa th power to. vote mo than20 percen of the ~ít intet in lIother. unl š'QDë Gteiper$, e~ alne ör.pU~ttQ an Rg~t withclfe ~inn. oi~ pe~onl! oWn .o.!laS ih powêtto' \rOfea greater perctage of the equity interes For dlespurses, joint v.eiitu parangenera parers meet the derinition of an affia, an öff~ts and eiiQy~ of jointyent1~ eQterri an: g~1 pá,~ ~l;nsidi:ed atfd. A su.ïdíi$. an.affliate ífit .is at ¡eat 2Ó petowøeby the corpraion..

AfUatës iiciude~i' cò~. A "pecor" is an ~tity diatwithii the la5 yea wa par t~a ~erger of equa'; wit the. cora or reprefemo than:50 perent of th cOtpraìon'.s saes or ii.sets wbø s-lch. p~S8i:.~ pn of th.

21

corpration.

"Relaves'; include spous, parents, chiidren stqi1dr, sibIìgs.moæ andfae.~.in-Iaw, soq~ and 4augtei-in-1aw~ brthers and sis~isin-law. :ai:ts uoclC$.

n~, nephew$. Ø1 ñr$c.øüsii, and Mýo1'sbiüg the .ditor's.honi.

7.$b .Is, or in the pat. S' y~ ha ben;Oi"Whos relative is. orin the past 5 ;year ba ~; anemloyee, director or greater-than-2Oereent owoofa fi tht is one of thcorption's or its afüate's pad. advÏ$is ör consultats Or th reciyesrevenue of atleat $50,00' for being a pai adviser ot cobsltat to an exeçutlve offcer óf the

corpraon;

NOTES: Advis.01 consltats include, but ar not .lite to.. lati, audtors

accountants, ince cop.aes andcomiiallinvestba. For puros ()ftbisdefmition;: an in~iV:i~id seing "ófcøtnel" to a firm wiU ~. ~J)iCd an .eløyeeøfthaUirm.

The ter ''eeçutvëc øffce" inclüdes. lhe chief eKecUtve.operatig, rmaci, lega imaccounting otIcers ofa compy. Ths inClud th preident,tturer. ~;contrllr and any vice:pi:idet who is in chae of a prcipal bwin~ un diviion orßmti() ($Uch 8$ sa~. adQioitrion or fma~) or perform a,majol' íKU~fuction for the corpration. .

7.3e Is, orin th pa 5 year ha beì1; or whose relave i~; or iii th past 5 yea ba beemployed by or has ha a5 percent or gr ownerpinteie in a th-part tha.F0vi(l ~ymts to Qr~eìVe$ P'$~ts from Q:e CøilQa Pel ~et:. :(l) SJIllpaymentsaceouat .for i. pernt orlbe tblrd-:al's or lpe.rent otthe corporation's

eø~U.-d giØSl retØues n.. any ~gI &a1:ytll1 ot(iK'tle tI..Kt...d~btør ør cr~.t.tbe tol'ratln nd.the .aDiDlÍt;owtd 'ei:ee i ~fot:~,corporaion's or th part's as. Ownrsp.means benecial or t'ord,ownerhip,not cuswdia19WJership;.

1.ld Ha, or in, the pa S. yea has liad,or whose relatve has pai or received more th$50,00 in th pa 5 yea under, a person con with th corpration au exec.mve

offcer 01 any' affliat of tbcQtra¡Q~

NOTE& Comiilmembem .believe that even sma persna contts"nn ~how.fo.imriiei çn~~ø 1ld¡~tor's Çömpli:tÇ ~~, TI QlClúd:;Qy,arngeentunder'wbibh th ii OOJTWS or íe mony to the comtièmat ra:better (for th dIettor)tb thos avalable to. normaL customeven if no otherseiçes 1Ì.om the ditor ar speìfied in conì~tiQn "vim lliis te,ltiøn.ip;

7.3e Is. or in the pat 5 year ba ben. or whose re/aiveis, orin the pat S y~ hii ~D, nnemloyee Or diitorofa fó.lJdati~ wÚve~ty01othet ilon.protit orgät3tion .tbtreceives sigpficatgrnts or eDdowmeD:ts ,from th coiporatioD, .one of.its atiat or its

e:x~cuti"e offcers or hll bee a dirct benefcilU of lP dQnations to suçh anorganzation;

NOTES: A "si.gfi~iut pi or ei()wmenf~ is t1e.~ of.tOOPOø or 1 pe~t óttotáaï\ildõiiiOi ,rcçei\'ed.&y .tl :otniZtiOî.

'7,3f lSJ or .intbe past 5 y~ ll b~ Øl ~høse relatve i$. orilI ~ p'a$t ,$ Ye¡i :b.~. par

22

ofan interlocldDg direç in which. th CEO or othe emloyee of thø coönserves on the bo of a th-pa enti (for-profit or no-for-pfit) emg the .dirtor or ~ue" reJdve;

7.3g Ha a relátve who is; orin the past 5 Yea 11as been. an elíloyee, a diør Qt asperct. or grater owner of atbtd èntitý tb Îs a si.,catcomptor ofthècorption; or

.7.3h Is a par to a votig tit, agreent or proxy giving hier aecision mang power .as IIdÌt(;tor to .mangement ~xçep tø the extt there is a tùy dìloscd ai~ naow yotngamgém~t such lI those which ar cUSøi be~n. :ven~.citistS an .maageent regag the ventu caÌtalist" bod se.

The foreoing deribs,reIionhips beeen dirc:tots an di~ COiporaion. The CouncU;aJ

beeves that it is importt :to discuss :relationshi betee diectors on the sae bo which.maythaten eith direct's ii~ce. A dict.'s øbecvity as to the bet incresu oftlesbaown. is of utost imrt :ad.cøneci()Jis beween di~tó,oue .the ~ramay theaten such objectivity an promote. inappriate v~g bloeks. As areult,. di muevali-teàl of~ir tel¡iticm,sbi wit eah Q.th to:de.teÜle: wbetbe ~ ~I' is ~e4independent. The bQatd. of dIri' i!1I Îive.tigiú .lUd ev:b.iaw sub. rela1QIbips using :te

cae, skiU~ pnnceanddilI tht a prnt peron.acg.Îna lik capaty would use.

(updte Oct. 7, 2008)

23

l:uib.t D

MODJs" NIOB OLS , AaSHT& .TUNNEi. LL

1201 Noam.MuStP.O. Bo LW

WIi.iïDÏCJlf, DBA'W;À 19899-!3l7

~ll2658 9200

~02 658 898'9Fö'

Deber 19. 2008

CitigrupIic.4ZS :Park AvenNew York, NY 10022,

Re~ StokholdJ' Prposal Submied By John Chevedcln

Lades and Genemen

Ths let is ni. J'tSAS tQ YOUl rees for opr opilUOD with re tocemat involv a .stocklder prpo sutt to .Citigrup Ine" :8. De1äwar COraOn

(the. "c.ompany'~)t by Joh Chevëdde(te ~ópDent', wier th. iio. of Ray T~ Chevedenas hi nomì proponet., fot' iIeluonin. the Coinanys. proxy sttëent än foït òfptity.forits. 2009 AiuS Mee of Stockholder Speficay, YOU: ha requeste :oUl Opinâïi (i)whe~et the Proposal would, íf:ip'léDen~ cae th c.ompany to viol. Oèlaar law, an

(ii) whetei the Prpo is a prope ~jectfor $tckbølderaèton un Delawar law.

L 77e p,tJp08ål

. Tl~ ~osa1, .if iiplel~: would .~~ that tÂ. bøa Qt ~~ of ~eCopany (the "Bolld"). tae 1; step nec to adpt a by-law rering ßi the. C9Janluve an independent le dìctor, and that: su lea direc bee1ec. solely ''by-an ño th,independent hoar meibe/' Iiiit eiet, tbè Prposa rea as follows:

Reslved, Shlde te th o\Ï Bo.acl 'tãe. the steps.necar to adt.a bylaw to leqc; that o1ï coinpmy häve.an.

indëpent lea di whener poSSble With cleäydtlin~ dutic: ,ei~ted by .and fr1l. the.ind.ent. boarm~bø, 19 be expe to $Ce for mQribQn.e: ÇQDtiUS:year, unes our compy at th tie i- an ~en4ent.boch. The .staar olindepen wou1db" tÍestaseby the Coci of Intuon Invets which is $ily' aiinep~t di~etr isìi, ¡xn whose directQrsp aøDStu: hiør her only ~ectiQ1.tøthe corpation.

CítigrOUPf Inc.

Decber 19s 2008Pagø 2

The cleay delineate 4utes at .aipum would inlud

· Ptesdi at id ~~et of the b9arat whîch t1ch. iS not pres iniudg exective sessions of theinependet diec. .

· Sergas liain, beee the clai an the .inentdiec.· Apprvi inònnaticm Sent il th board.· Approvig mêeagënda föt th boa· Approg ineeg schedes to. as~ tl. th~ i.8. sq~Cmt

tie fo discusi.on of lu 'agenddt~.· Hàvig thellorty to ça in~ of the inep~~. . ..· Bei avaiable :for' cotaon an di oommuncatioiíf

.reue byinor sheholde.!

H.. Summary.

The Prposal seek the adpfîól1 of tl by.;läW'tlt woud empöwer only the"indepeent board membei" to selec .lØ''i~d.t lea ~," S'uh a by-l-. wirèSt in providig "non!"indeendent board .niember'1 nØ nght to vø~ on th~ :$elec9Uotihe

"indepndent lea dir/'As~laiedin, ~,at:m h~ Secon 1:41(4lotth~ Dear.(ù CorpØiOtl Law(tJe "DGci") .r~uies:tbt ,any confea of.gr or1evotfJ.'pøei to one 01' .i9re diecrsøf:: Delawar coran be: set out 'in a ooon"'s cecaofini;rato~not a by';law. Accrdgly;.it is our :C!pÎnnfhat th PiOsalwo.ù e. thecoi to víolate.1Je1ware laW becau it teéS th the 'Board adt an Ù1Vat bY..lá:W.. In

äddition, be the Propósal askS th Boar to Violate Delawar law. it is also ,out öpion thatas explai in 'Par IV heei, th Ptø.posa. is not a prpß sujec fø.r .stoQlolder acon unerDelawar law.

Hl TI ProJ1lJItnpIemênti4 Wo'U Cil 'R Q)I.1 T",Jlull- Del~ J:Th~ Proposal ~uetsthat tñ Board ta the .st'.ne to ad .a by-iaw

tbat would provide for the elecon at an ~Wedet lea. ct~"and il suh pen beeleced '''y and frm theîndepenae böød ,meïbeø.;''I, by itste; the 'PrpowouId

allOW oiiy th iödeèlt dUeé to. 'vóle on ehöò~ á leä ditec. Howc.êt, ,a pr'Vëmconfeig Upn the'-ldepeiit boar liem~ gr vo.tipowerth .ôerdirscaomy be adopt ina COtatOilS cërcate öf incorporaon, an. mayno1 be atpt .In 11corporation's by"laws.

T1 rue is clwl:s~ fort Ú1. ~ DQ.Secøn 141(d): n.f tbe. DGCL .alows a:corporation to confer grea or leser voti power ona subse of diecQI. butrc~;~ir...tl

. A longer sU!)pOrtg stement, not relevant to QUr o~òn,. aces. th JrrOpsal.

Citioup, Inc.Decber 19, 208Page 3

Sl. diff~tia1 votig power be prvided (or in a ÇOl'ou'scefica of inon.Secon 1 41(d) prvides:

f7Jie certficate 01 i1lratWn may confer upn i or nidireèto. wheterOt.Dt elec seety by the; holde of anyclas or seres ofst voti, power grea th or les thanthe of other dior

8 Del. C. § t41(d) (emhasis add).2

By refeciig the ,cefica of iirpøn as th ony dø~t lhmay 'Varthe votig powe ()f diectøts Secon 14 1 (d) .makescJeaQit the by-laws ~t var the voti

pow.es of di~. Aa the Cour ot.Çbcø b.øb,~ ther are "4S se.prV;ol)toof the DGC, inclug Secon 141(d). "exprly retgto the varation ota stiutebycbar," JQ~ Apparl Group, Inc. 'V. Maxii shoeo.. Inc., 883 A.2d 837 (D Cl2004). Defi su prvisíODS as '''yJw exc1ud(sJ," the Cour sted th G.oS w.or(make clea that the spfic grt of auty in tbparcU sttute is:onetb ca be vared

only by chaer and therfore ~disputaly not one th c: beal by a . . . bylaw," Id. at 848.The Delawa cour have reeaedy invalida prvions nol coed in a cec.e ofincolporaon th atempt tó var :fm the det Iùes coed in .su ''aylaexlù'staes. E.g., Lions GateEntm 'j, CQrp.v. I~g~.&i'i liJ.12() WL 1665.111 at*? (Del ChJu: 5,200 (invaidat -8 b:y.iaw.prÐvì~C) pur~ to 8lai iie b.oar the aatty_tø~~dthe. ~y-laws beUS the"~ (diel llt coel ~ powertø endim bylws up thebOtnd"); Edlma v. Authoried Dislr. Netorkliit 1989WL i33~25, at'''4 (Del. ~ 'Nov. 3,1989,) ("(Plaìtift poiits out, qute C0ëcy, that the riahto act imediately by wnttcoentmay be modfied or eliaton by speific lìmglin a córpraon~s arcles ofincorpraon. . . . (b)ylaws abrogagot nûllil;g the right to ac by cot ate thusinvald.").

More SpecifcalY, Delawár eòur have repy invada at to-cnfgrer or les votig powøon a subse of ~ ~de nf a ~fiQa~ of inration.For exle, in Cann 'V. roii BrQt1ra, In, ~ A'2tio 1180(D Ch l~8), the CoUn.ofChaneelnvaldae4 a prvinnìn ~ stolde ripis pla .tb ~ ~ ~t$ with

:1Secon 14i(d) goeš on to st:

If the cerfite 01 incrpl'ation prvìdes th.lor møre ditOlsh h.ve n:e or les th i vote pe diror On a.ymatever ~fer in ths cba~ to'. JIjo o:r otb~ prn ofthe dir sh refer tø a majority or oter prpOrton .9£ thevote of the direcon

Iii (empha ,aded).

Citigroup, Inc.Decber 19, 20QPage 4

the power to reee the rights whiedêying oèifu.di th author. The Courexpressly relied on the fa th the "aloÇon ofVotDg power to reCê 1he .fnghts) is Jlwherfound in the (the copay's) ceficae of incorapn" Id.at 119.1. The Coll ~yinvoked the "ubigu" rue ofSëcon 141(d),stati

The plaü uibiguus mea Iø.Seøn l+l(d)J is th.if (lnccateor o.r gn øf di isgiendistctve vOtÙgngh nøtshed by the other di, t/e aistivø 'voting rig1i1$ mube set forth i1i the cerfica of inrpr4.o1l

Id. at 1191 (emphasis aded). Cl Quicktum D~ig $.a., Inc. ¥. $hapir(),121 A.2d 1281 (Del.1998) (invadan.g a stockolder ri. plan. that Iited the autbntYof a nelyelèCedboan.af diecrs to red the ngl, in par beus the coanY's char contaed "no. prsion

puro.rtg to. lit the authonty 0..£ the boird iiiaiy Viy' an therotë su. à liitaön was animssile subjec fo a by.law).3

Æ Th hopilii1s NuA Prpe.Siijei:.ForStikholA.etlÏ fJll ii~ L_

Beus. th Proposa, ifiiierc;~ woQld ~. t1e o,mpany to viol-DelaWare law. l1exPla~ in Par mo.t th$ Qpoo W~ beieve tbe PrpQsa is aIø not .11proper suject for stckolder acòn 1Uer Delawar Iaw.

3 We rec~.tf in Galifo.mi hbfic EmplOye~:i.Relir~ent Syem v. C01te, 2005 .WL 1074354 (Dl. Ch .2OQ~), ..tt CoUr Qf :Chce dis~he Cady inupboldi,g a C8ntrQctu pr'VQn betee the coi:raøii an a thd par ~g.th .chane in contl paYmts be ma in the .GVeI a coon's- boar..of diceed to be compsed of ~Exg ~rs" wher th detion of ''EDn-ec" incledQDy (i) dirs in oftco at. the tie the co was eplOve ai(ü) . n~ di "apptved"by "Exstig. DKetom." Plaiti argi tbby. onyta Íl aoun th apva (or lac llert)af.a new dir bY. dirs aleadeeed "ExiStg DiQr" and not taginto~unt th apprval.(or lac tht) ofsuh Dew dictor by non-Exing Died" th. .contr oonfer greaer voti. poer on Ex. Dirs 'th iin.Ex Di, åïd therore wa; iìW1idbeau the prvision at iss did not appea Ìt th coJ;on's cecate of

incorpOn The: Cour boweY,. óbenec .1h 1he coDÜåc. prvion ,di notreUie thè. bDild to vate on äppioVÎg a neW dir as an Ex DitecóI... but rathreq "teférce to the.te -ofa vote hy thë Boar (ot Söemeiber (tfthe ,Bo)in order to dee. th. sttu. of .angoin iits of.ce emlóýee to c1uge iicontrl paymeits." Id; at *S~ Incontr th by~lâ OODtëiplà by ~ Prwould 11 ire indepent mebe of the bo to "vte on th spfi~ quOi1 öf"wh wilfb an incfëpdet lea dir, îd, an "dee(s) the. iigbto vote'? to nOiinept 1ìénbem of th bo id. Sl.h. a provision outde of the cecae ofincorpaton is in,clea violaton ofSecôa 141(db asäppHed.in Caody.

Citigroup, Inc..Decber 19. 200Page 5

~ Condust)1I

For th foregoin reans it is QuropinoiL, Uu (i th Proposa, it ~,iemwould cae the Compy to vîoiatDe~e la, and (ü) th Pr-is not a l-pe subjecfor stoolde acton l1 Delawae law.

Vei tr¥YOlU,-

Jlc!H~'~, "P-rlJ\ 1I~;Jt¡ f"T v 'ittlI l¿L

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