Document:

CHANGE
IN CONTROL AGREEMENT

    

    This
CHANGE IN CONTROL AGREEMENT (this “Agreement”), is made and entered into as of
the 2nd day of
August 2010, between Emclaire Financial Corp., a Pennsylvania-chartered bank
holding company (the “Corporation”), the Farmers National Bank of Emlenton, a
national banking association (the “Bank”) and Matthew J. Lucco (the
“Executive”).

    

    WITNESSETH:

    

    WHEREAS,
the Executive is currently employed as a Senior Vice President of the
Corporation and the Bank (the Corporation and the Bank are referred to together
herein as the “Employers”);

    

    WHEREAS,
the Employers desire to be ensured of the Executive’s continued active
participation in the business of the Employers; and

    

    WHEREAS,
in order to induce the Executive to remain in the employ of the Employers and in
consideration of the Executive’s agreeing to remain in the employ of the
Employers, the parties desire to specify the severance benefits which shall be
due the Executive in the event that his employment with the Employers is
terminated under specified circumstances;

    

    NOW
THEREFORE, in consideration of the premises and the mutual agreements herein
contained, the parties hereby agree as follows:

    

    1.           Definitions. The following
words and terms shall have the meanings set forth below for the purposes of this
Agreement:

    

    (a)           Annual
Compensation.  The Executive’s “Annual Compensation” for
purposes of this Agreement shall be deemed to mean the highest level of
compensation paid to the Executive by the Employers or any subsidiary thereof
and included in the Executive’s gross income for tax purposes and any income
earned and deferred by the Executive pursuant to any plan or arrangement of the
Employers during the calendar year in which the Date of Termination occurs
(determined on an annualized basis) or either of the two calendar years
immediately preceding the calendar year in which the Date of Termination
occurs.

    

    (b)           Cause. Termination by the
Employers of the Executive’s employment for “Cause” shall mean termination
because of personal dishonesty, incompetence, willful misconduct, breach of
fiduciary duty involving personal profit, intentional failure to perform stated
duties, willful violation of any law, rule or regulation (other than traffic
violations or similar offenses) or final cease-and-desist order. For purposes of
this paragraph, no act or failure to act on the Executive’s part shall be
considered “willful” unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the Executive’s action or omission
was in the best interest of the Employers.

    
      
         

      

      
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    (c)          Change in
Control.  “Change in Control” shall mean a change in the
ownership of the Corporation or the Bank, a change in the effective control of
the Corporation or the Bank or a change in the ownership of a substantial
portion of the assets of the Corporation or the Bank, in each case as provided
under Section 409A of the Code and the regulations thereunder.

    

    (d)          Code. Code shall mean the
Internal Revenue Code of 1986, as amended.

    

    (e)          Date of Termination. “Date of
Termination” shall mean (i) if the Executive’s employment is terminated for
Cause, the date on which the Notice of Termination is given, and (ii) if the
Executive’s employment is terminated for any other reason, the date specified in
such Notice of Termination.

    

    (f)           Disability. “Disability” shall
mean the Executive (i) is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, or (ii) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than
three months under an accident and health plan covering employees of the
Employers.

    

    (g)          Good Reason. Termination by
the Executive of the Executive’s employment for “Good Reason” shall mean
termination by the Executive following a Change of Control based
on:

    

    
      (i)
any
material breach of this Agreement by the Employers, including without limitation
any of the following: (A) a material diminution in the Executive’s base
compensation, (B) a material diminution in the Executive’s authority, duties or
responsibilities, or (C) a material diminution in the authority, duties or
responsibilities of the officer to whom the Executive is required to report,
or

    

    

    
      (ii)
any
material change in the geographic location at which the Executive must perform
his services under this Agreement, including a material change in the
Executive’s principal place of employment or the imposition of any requirement
that the Executive spend more than ninety (90) business days per year at a
location other than such principal place of employment;

    

    

    provided,
however, that prior to any termination of employment for Good Reason, the
Executive must first provide written notice to the Corporation within ninety
(90) days of the initial existence of the condition, describing the existence of
such condition, and the Corporation shall thereafter have the right to remedy
the condition within thirty (30) days of the date the Corporation received the
written notice from the Executive.  If the Corporation remedies the
condition within such thirty (30) cure period, then no Good Reason shall be
deemed to exist with respect to such condition.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (h)          IRS. IRS shall mean the
Internal Revenue Service.

    

    (i)           Notice of Termination. Any
purported termination of the Executive’s employment by the Employers for Cause,
Disability or Retirement or by the Executive for Good Reason shall be
communicated by written “Notice of Termination” to the other party hereto. For
purposes of this Agreement, a “Notice of Termination” shall mean a notice which
(i) indicates the specific termination provision in this Agreement relied upon,
(ii) sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the
provision so indicated, (iii) specifies a Date of Termination, which shall be
not less than thirty (30) nor more than ninety (90) days after such Notice of
Termination is given, except in the case of the Employers’ termination of the
Executive’s employment for Cause, which shall be effective immediately, and (iv)
is given in the manner specified in Section 7 hereof.

    

    (j)           Retirement. “Retirement” shall
mean voluntary termination by the Executive upon reaching [age 65.]

    

    2.           Term of
Agreement.   The term of this Agreement shall be for two
years, commencing as of August 2, 2010 (the “Start Date”).  Commencing
on the first anniversary of the Start Date, the term of this Agreement shall
extend for an additional year on each annual anniversary of the Start Date of
this Agreement until such time as the Boards of Directors of the Employers or
the Executive give notice in accordance with the terms of Section 8 hereof of
their or his election, respectively, not to extend the term of this
Agreement.  Such written notice of the election not to extend must be
given not less than thirty (30) days prior to any such anniversary
date.  If any party gives timely notice that the term will not be
extended as of any annual anniversary date, then this Agreement shall terminate
at the conclusion of its remaining term.  The Boards of Directors of
the Employers will review this Agreement and the Executive=s
performance annually for purposes of determining whether to extend this
Agreement.  References herein to the term of this Agreement shall
refer both to the initial term and successive terms.

    

    3.           Benefits Upon Termination. If
the Executive’s employment by the Employers shall be terminated within twenty
four (24) months subsequent to a Change in Control by (i) the Employers other
than for Cause, Disability, Retirement or as a result of the Executive’s death,
or (ii) the Executive for Good Reason, then the Employers shall, subject to the
provisions of Section 3 hereof, if applicable:

    

    (a)           pay
to the Executive, in a lump sum as of the Date of Termination, a cash amount
equal to two (2) times the Executive’s Annual Compensation; and

    
      
         

      

      
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    (b)           maintain
and provide for a period ending at the earlier of (i) twenty-four (24) months
after the Date of Termination or (ii) the date of the Executive’s full-time
employment by another employer (provided that the Executive is entitled under
the terms of such employment to benefits substantially similar to those
described in this subparagraph (b)), at no cost to the Executive, the
Executive’s continued participation in all group insurance, life insurance,
health and accident, disability and other employee benefit plans, programs and
arrangements in which the Executive was entitled to participate immediately
prior to the Date of Termination (other than retirement plans or stock
compensation plans of the Employers), provided that in the event that the
Executive’s participation in any plan, program or arrangement as provided in
this subparagraph (b) is barred, or during such period any such plan, program or
arrangement is discontinued or the benefits thereunder are materially reduced,
the Employers shall arrange to provide the Executive with benefits substantially
similar to those which the Executive was entitled to receive under such plans,
programs and arrangements immediately prior to the Date of
Termination.  If the provision of any of the benefits covered by this
Section 3(b) would trigger the 20% tax and interest penalties under Section 409A
of the Code either due to the nature of such benefit or the length of time it is
being provided, then the benefit(s) that would trigger such tax and interest
penalties due to the nature of such benefit shall not be provided at all and the
benefit(s) that would trigger the tax and interest penalties if provided beyond
the “limited period of time” set forth in the regulations under Section 409A
shall not be provided beyond such limited period of time (collectively, the
“Excluded Benefits”), and in lieu of the Excluded Benefits the Employers shall
pay to the Executive, in a lump sum within 30 days following termination of
employment or within 30 days after such determination should it occur after
termination of employment, a cash amount equal to the cost to the Employers of
providing the Excluded Benefits.

    

    4.           Limitation of Benefits under Certain
Circumstances.   If the payments and benefits pursuant to
Section 3 hereof, either alone or together with other payments and benefits
which the Executive has the right to receive from the Employers would constitute
a “parachute payment” under Section 280G of the Code, then the payments and
benefits pursuant to Section 3 hereof shall be reduced by the minimum amount
necessary to result in no portion of the payments and benefits under Section 3
being non-deductible to either of the Employers pursuant to Section 280G of the
Code and subject to the excise tax imposed under Section 4999 of the
Code.  If the payments and benefits under Section 3 are required to be
reduced, the cash severance shall be reduced first, followed by a reduction in
the fringe benefits.  The determination of any reduction in the
payments and benefits to be made pursuant to Section 3 shall be based upon the
opinion of independent tax counsel selected by the Employers and paid for by the
Employers. Such counsel shall promptly prepare the foregoing opinion, but in no
event later than thirty (30) days from the Date of Termination, and may use such
actuaries as such counsel deems necessary or advisable for the
purpose.  Nothing contained herein shall result in a reduction of any
payments or benefits to which the Executive may be entitled upon termination of
employment other than pursuant to Section 3 hereof, or a reduction in the
payments and benefits specified in Section 3 below zero.

    
      
         

      

      
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    5.           Mitigation; Exclusivity of
Benefits.

    

    (a)           The
Executive shall not be required to mitigate the amount of any benefits hereunder
by seeking other employment or otherwise, nor shall the amount of any such
benefits be reduced by any compensation earned by the Executive as a result of
employment by another employer after the Date of Termination or otherwise,
except as set forth in Section 3(b) above.

    

    (b)           The
specific arrangements referred to herein are not intended to exclude any other
benefits which may be available to the Executive upon a termination of
employment with the Employers pursuant to employee benefit plans of the
Employers or otherwise.

    

    6.           Withholding.  All
payments required to be made by the Employers hereunder to the Executive shall
be subject to the withholding of such amounts, if any, relating to tax and other
payroll deductions as the Employers may reasonably determine should be withheld
pursuant to any applicable law or regulation.

    

    7.           Assignability. The Employers
may assign this Agreement and their rights hereunder in whole, but not in part,
to any corporation, bank or other entity with or into which the Employers may
hereafter merge or consolidate or to which the Employers may transfer all or
substantially all of their respective assets, if in any such case said
corporation, bank or other entity shall by operation of law or expressly in
writing assume all obligations of the Employers hereunder as fully as if it had
been originally made a party hereto, but may not otherwise assign this Agreement
or their rights hereunder. The Executive may not assign or transfer this
Agreement or any rights or obligations hereunder.

    

    8.           Notice. For the purposes of
this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by certified or registered mail, return receipt requested,
postage prepaid, addressed to the respective addresses set forth
below:

    

    
      
        	
                To
      the Bank:

              	 
      	
                Secretary

              
	 
      	 
      	
                Farmers
      National Bank of Emlenton

              
	 
      	 
      	
                612
      Main Street

              
	 
      	 
      	
                Emlenton,
      Pennsylvania 16373

              
	 
      	 
      	 
      
	
                To
      the Corporation:

              	 
      	
                Secretary

              
	 
      	 
      	
                Emclaire
      Financial Corp.

              
	 
      	 
      	
                612
      Main Street

              
	 
      	 
      	
                Emlenton,
      Pennsylvania 16373

              
	 
      	 
      	 
      
	
                To
      the Executive:

              	 
      	
                Matthew
      J. Lucco

              
	 
      	 
      	
                105
      Vista Drive

              
	 
      	 
      	
                Slippery
      Rock, PA  16057

              

      

    

    
      
         

      

      
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    9.           Amendment; Waiver. No provisions of this
Agreement may be modified, waived or discharged unless such waiver, modification
or discharge is agreed to in writing signed by the Executive and such officer or
officers as may be specifically designated by the Boards of Directors of the
Employers to sign on their behalf. No waiver by any party hereto at any time of
any breach by any other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.  In addition, notwithstanding anything in
this Agreement to the contrary, the Employers may amend in good faith any terms
of this Agreement, including retroactively, in order to comply with Section 409A
of the Code.

    

    10.         Governing Law. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the United States where applicable and otherwise by the
substantive laws of the Commonwealth of Pennsylvania.

    

    11.         Nature of Employment and
Obligations.

    

    (a)           Nothing
contained herein shall be deemed to create other than a terminable at will
employment relationship between the Employers and the Executive, and the
Employers may terminate the Executive’s employment at any time, subject to
providing any payments specified herein in accordance with the terms
hereof.

    

    (b)           Nothing
contained herein shall create or require the Employers to create a trust of any
kind to fund any benefits which may be payable hereunder, and to the extent that
the Executive acquires a right to receive benefits from the Employers hereunder,
such right shall be no greater than the right of any unsecured general creditor
of the Employers.

    

    12.         Headings. The section headings
contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.

    

    13.         Validity. The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall
remain in full force and effect.

    

    14.         Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be deemed to be
an original but all of which together will constitute one and the same
instrument.

    

    15.         Regulatory
Actions.  The following provisions shall be applicable to the
parties or any successor thereto, and shall be controlling in the event of a
conflict with any other provision of this Agreement, including without
limitation Section 3 hereof.

    
      
         

      

      
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    (a)           If
the Executive is suspended from office and/or temporarily prohibited from
participating in the conduct of the Bank's affairs pursuant to notice served
under Section 8(e)(3) or Section 8(g)(1) of the Federal Deposit Insurance Act
(“FDIA”)(12 U.S.C. §§1818(e)(3) and 1818(g)(1)), the Bank's obligations under
this Agreement shall be suspended as of the date of service, unless stayed by
appropriate proceedings.  If the charges in the notice are dismissed,
the Bank may, in its discretion:  (i) pay the Executive all or part of
the compensation withheld while its obligations under this Agreement were
suspended, and (ii) reinstate (in whole or in part) any of its obligations which
were suspended.

    

    (b)           If
the Executive is removed from office and/or permanently prohibited from
participating in the conduct of the Bank's affairs by an order issued under
Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C. §§1818(e)(4) and
(g)(1)), all obligations of the Bank under this Agreement shall terminate as of
the effective date of the order, but vested rights of the Executive and the Bank
as of the date of termination shall not be affected.

    

    (c)           If
the Bank is in default, as defined in Section 3(x)(1) of the FDIA (12 U.S.C.
§1813(x)(1)), all obligations under this Agreement shall terminate as of the
date of default, but vested rights of the Executive and the Bank as of the date
of termination shall not be affected.

    

    16.         Regulatory
Prohibition.  Notwithstanding any other provision of this
Agreement to the contrary, any payments made to the Executive pursuant to this
Agreement, or otherwise, are subject to and conditioned upon their compliance
with Section 18(k) of the FDIA (12 U.S.C. §1828(k)) and 12 C.F.R. Part
359.

    

    17.         Payment of Costs and Legal Fees and
Reinstatement of Benefits.  In the event any dispute or
controversy arising under or in connection with the Executive’s termination is
resolved in favor of the Executive, whether by judgment, arbitration or
settlement, the Executive shall be entitled to the payment of (a) all legal
fees incurred by the Executive in resolving such dispute or controversy, and
(b) any back-pay, including Base Salary, bonuses and any other cash
compensation, fringe benefits and any compensation and benefits due to the
Executive under this Agreement.

    

    18.         Arbitration. Any controversy
or claim arising out of or relating to this Agreement, or the breach thereof,
shall be settled by arbitration in accordance with the rules then in effect of
the district office of the American Arbitration Association (“AAA”) nearest to
the home office of the Bank, and judgment upon the award rendered may be entered
in any court having jurisdiction thereof, except to the extent that the parties
may otherwise reach a mutual settlement of such issue.  The Employers
shall incur the cost of all fees and expenses associated with filing a request
for arbitration with the AAA, whether such filing is made on behalf of the
Employers or the Executive, and the costs and administrative fees associated
with employing the arbitrator and related administrative expenses assessed by
the AAA.

    
      
         

      

      
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    19.         Compliance
with the Troubled Asset Relief Program (“TARP”)

    

    
      	
               
      

            	
              (i)

            	
              Notwithstanding
      any provision to the contrary herein, during the period that any
      obligation arising from financial assistance provided to the Corporation
      under the TARP remains outstanding pursuant to the TARP Capital Purchase
      Program (“CPP”) (excluding any period in which the Federal Government only
      holds warrants to purchase common stock of the corporation), Executive
      will not receive and will not be entitled to receive any payment or
      compensation pursuant to this Agreement if the receipt of such payment or
      compensation alone or when added to any other payment or compensation
      received or to be received by Executive from the corporation would cause
      Executive to receive a “golden parachute payment” within the meaning of
      Section 111 of the Emergency Economic Stabilization Act of 2008 (the
      “EESA”), as amended by Section 7001 of the American Recovery and
      reinvestment Act of 2009 (the “ARRA”) or any of the rules and regulations
      promulgated thereunder.  The Corporation and the Bank shall
      retain the exclusive and final authority, without the consent of
      Executive, to cancel, reduce or otherwise eliminate any compensation or
      other payments pursuant to this Agreement, including without limitation
      any payments pursuant to Section 3 hereof, so as to comply with such
      laws.  Any compensation or other payments required to be
      canceled, reduced or eliminated pursuant to this Section, will be
      forfeited by Executive and he shall not be entitled to or have any claim
      against the Bank to receive such payments at any
  time.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Notwithstanding
      any provision to the contrary herein, Executive shall make prompt and
      immediate repayment to the bank of the full amount of any payment made or
      credited to Executive under this Agreement during the period that any
      obligation arising from financial assistance provided to the Corporation
      under the TARP remains outstanding pursuant to the CPP (excluding any
      period in which the Federal Governments only holds warrants to purchase
      common stock of the corporation), if such compensation or other payment(s)
      are determined at any time by the Corporation and/or the Bank or their
      federal bank regulator to have been compensation or payments that are
      incentive, retention or bonus compensation that is not permitted by EESA,
      as amended by ARRA or the rules and regulations promulgated
      thereunder.  The Corporation shall retain the exclusive and
      final authority as to all such determinations under this subparagraph
      (ii), so as to ensure compliance with applicable requirements of EESA, as
      amended by ARRA and the rules and regulations promulgated thereunder, as
      then in effect.  Any compensation or other payments returned to
      the Corporation or the Bank pursuant to the preceding sentence shall be
      forfeited by Executive and he shall not be entitled to or have any claim
      against the Corporation and/or the Bank for repayment or return of any
      such amounts at any time.

            

    

    

    20.         Entire
Agreement.  This Agreement embodies the entire agreement
between the Employers and the Executive with respect to the matters agreed to
herein.  All prior agreements between the Employers and the Executive
with respect to the matters agreed to herein, including without limitation any
prior change in control agreement between the Employers and the Executive, are
hereby superseded and shall have no force or effect.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, this Agreement has
been executed as of the date first above written.

    

    
      
        	
                Attest:

              	 
      	
                EMCLAIRE
      FINANCIAL CORP.

              
	 
      	 
      	 
      
	
                /s/Amanda L. Engles

              	 
      	
                By:

              	
                /s/William
      C. Marsh

              
	 
      	 
      	 
      	
                William
      C. Marsh

              
	 
      	 
      	 
      	
                Chairman,
      President and CEO

              
	 
      	 
      	 
      
	 
      	 
      	
                FARMERS
      NATIONAL BANK OF EMLENTON

              
	 
      	 
      	 
      
	 
      	 
      	
                By:  

              	
                /s/William
      C. Marsh 

              
	 
      	 
      	 
      	
                William
      C. Marsh

              
	 
      	 
      	 
      	
                President
      and CEO

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                EXECUTIVE

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                By:

              	
                /s/Matthew
      J. Lucco

              
	 
      	 
      	 
      	
                Matthew
      J. Lucco

              

      

    

    
      
         

      

      
        9This Note is a Global Security within
the meaning of the Indenture hereinafter referred to and is registered in the
name of the Depository named below or a nominee of the
Depository.  This Note is not exchangeable for Notes registered in the
name of a Person other than the Depository or its nominee except in the limited
circumstances described herein and in the Indenture, and no transfer of this
Note (other than a transfer of this Note as a whole by the Depository to a
nominee of the Depository or by a nominee of the Depository to the Depository or
another nominee of the Depository) may be registered except in the limited
circumstances described herein.

    

    Unless this certificate is presented
by an authorized representative of The Depository Trust Company, a New York
corporation (the “Depository”), to the Company or its agent for registration of
transfer, exchange, or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as is requested by an authorized
representative of the Depository (and any payment is made to Cede & Co. or
to such other entity as is requested by an authorized representative of the
Depository), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.

    

    CITIGROUP
INC.

    5.375%
Notes due August 9, 2020

    
      	
              REGISTERED

            	 
      	
              REGISTERED      

            

    

    

    CUSIP:
172967FF3      

    ISIN:
US172967FF30      

    Common
Code: 053194745      

    

    
      	
              No.
      R-

            	
              $      

            

    

    

    CITIGROUP INC., a Delaware
corporation (the “Company”, which term includes any successor Person under the
Indenture), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of $____________ on August 9, 2020 and to pay
interest thereon from and including August 9, 2010 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
semi-annually, on February 9 and August 9 of each year, commencing February 9,
2011 at the rate of 5.375% per annum, until the principal hereof is paid or made
available for payment.  The interest so payable, and punctually paid
or duly provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the Person in whose name this Note is registered at the
close of business on the Record Date for such interest, which shall be the
February 1 and August 1 (whether or not a Business Day) immediately preceding
such Interest Payment Date.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the holder on
such Record Date and may either be paid to the Person in whose name this Note is
registered at the close of business on a subsequent Record Date, such subsequent
Record Date to be not less than five days prior to the date of payment of such
defaulted interest, notice whereof shall be given to holders of Notes of this
series not less than 15 days prior to such subsequent Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Notes of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided
in the Indenture.

    

    Interest
hereon will be calculated on the basis of a 360-day year comprised of twelve
30-day months.

    

    If either
an Interest Payment Date or the Maturity of the Notes falls on a day that is not
a Business Day, such Interest Payment Date or Maturity will be the next
succeeding Business Day.  If a date for payment of interest or
principal on the Notes falls on a day that is not a business day in the place of
payment, such payment will be made on the next succeeding business day in such
place of payment as if made on the date the payment was due.  No
interest will accrue on any amounts payable for the period from and after the
due date for payment of such principal or interest.

    

    For these purposes, “Business Day”
means any day which is a day on which commercial banks settle payments and are
open for general business in The City of New York.

    

    Payment of the principal of and
interest on this Note will be made at the office or agency of the Trustee
maintained for that purpose in The City of New York.

    

    Reference is hereby made to the
further provisions of this Note set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this
place.

    

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

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

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

    

    Dated:  August
9, 2010

    

    
      
        
          	 
      	
                  CITIGROUP
      INC.

                
	 
      	 
      
	 
      	
                  By:

                	 
      	 
      
	 
      	
                  Title:  Treasurer

                

        

      

    

    

    ATTEST:

    

    
      
        
          
            	
                    By:

                  	 
      	 
      
	
                    Title:  Assistant
      Secretary

                  

          

        

      

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    This is one of the Notes of the
series issued under the within-mentioned Indenture.

    

    Dated:  August
9, 2010

    

    
      
        
          
            	 
      	
                    THE
      BANK OF NEW YORK MELLON,

                  
	 
      	
                    as
      Trustee

                  
	 
      	 
      
	 
      	
                    By:

                  	 
      	 
      
	 
      	 
      	
                    Name:

                  
	 
      	 
      	
                    Title:

                  
	 
      	 
      
	 
      	
                    -or-

                  
	 
      	 
      
	 
      	
                    CITIBANK,
      N.A.,

                  
	 
      	
                    as
      Authenticating Agent

                  
	 
      	 
      
	 
      	
                    By:

                  	 
      	 
      
	 
      	 
      	
                    Name:

                  
	 
      	 
      	
                    Title:

                  

          

        

      

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    This Note is one of a duly authorized
issue of Securities of the Company (the “Notes”), issued and to be issued in one
or more series under the Indenture, dated as of March 15, 1987 (as amended and
supplemented to date, the “Indenture”), between the Company and The Bank of New
York Mellon, formerly known as The Bank
of New York, as Trustee (the “Trustee”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the holders of the Notes and of the terms upon which the Notes are,
and are to be, authenticated and delivered.  This Note is one of the
series designated on the face hereof, initially limited in aggregate principal
to $2,250,000,000.

    

    If an event of default (as defined in
the Indenture) with respect to Notes of this series shall occur and be
continuing, the principal of the Notes of this series may be declared due and
payable in the manner and with the effect provided in the
Indenture.

    

    The Indenture contains provisions for
defeasance at any time of the entire indebtedness of this Note upon compliance
by the Company with certain conditions set forth in Sections 11.03 and 11.04
thereof, which provisions apply to this Note.

    

    The Indenture contains provisions
permitting the Company and the Trustee, without the consent of the holders of
the Securities, to establish, among other things, the form and terms of any
series of Securities issuable thereunder by one or more supplemental indentures,
and, with the consent of the holders of not less than 66 2/3% in aggregate
principal amount of Securities at the time outstanding which are affected
thereby, to modify the Indenture or any supplemental indenture or the rights of
the holders of Securities of such series to be affected, provided that no such
modification will (i) extend the fixed maturity of any Securities, reduce the
rate or extend the time of payment of interest thereon, reduce the principal
amount thereof or the premium, if any, thereon, reduce the amount of the
principal of Original Issue Discount Securities payable on any date, change the
currency in which Securities are payable, or impair the right to institute suit
for the enforcement of any such payment on or after the maturity thereof,
without the consent of the holder of each Security so affected, or (ii) reduce
the aforesaid percentage of Securities of any series the consent of the holders
of which is required for any such modification without the consent of the
holders of all Securities of such series then outstanding, or (iii) modify,
without the written consent of the Trustee, the rights, duties or immunities of
the Trustee.

    

    No reference herein to the Indenture
and no provision of this Note or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the
coin or currency, herein prescribed.

    

    This Note is a Global Security
registered in the name of a nominee of the Depository.  This Note is
exchangeable for Notes registered in the name of a person other than the
Depository or its nominee only in the limited circumstances hereinafter
described.  Unless and until it is exchanged in whole or in part for
definitive Notes in certificated form, this Note may not be transferred except
as a whole by the Depository to a nominee of the Depository or by a nominee of
the Depository to the Depository or another nominee of the
Depository.

    
      
         

      

      
        R-1

        
          

        

      

      
         

      

    

    

    The Notes represented by this Global
Security are exchangeable for definitive Notes in certificated form of like
tenor as such Notes in denominations of $1,000 and whole multiples of $1,000 in
excess thereof only if (i) the Depository notifies the Company that it is
unwilling or unable to continue as Depository for the Notes or (ii) the
Depository ceases to be a clearing agency registered under the Securities
Exchange Act of 1934, as amended, or (iii) the Company in its sole discretion
decides to allow the Notes to be exchanged for definitive Notes in registered
form.  Any Notes that are exchangeable pursuant to the preceding
sentence are exchangeable for certificated Notes issuable in authorized
denominations and registered in such names as the Depository shall
direct.  As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of definitive Notes in certificated
form is registrable in the register maintained by the Company in The City of New
York for such purpose, upon surrender of the definitive Note for registration of
transfer at the office or agency of the registrar, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the registrar duly executed by, the holder thereof or his attorney
duly authorized in writing, and thereupon one or more new Notes of this series
and of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or
transferees.  Subject to the foregoing, this Note is not exchangeable,
except for a Global Security or Global Securities of this issue of the same
principal amount to be registered in the name of the Depository or its
nominee.

    

    No service charge shall be made for any
such registration of transfer or exchange, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

    

    Prior to due presentment of this Note
for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note be
overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.

    

    The Company will pay additional amounts
(“Additional Amounts”) to the beneficial owner of any Note that is a non-United
States person in order to ensure that every net payment on such Note will not be
less, due to payment of U.S. withholding tax, than the amount then due and
payable.  For this purpose, a “net payment” on a Note means a payment
by the Company or a paying agent, including payment of principal and interest,
after deduction for any present or future tax, assessment or other governmental
charge of the United States. These Additional Amounts will constitute additional
interest on the Note.

    

    The Company will not be required to pay
Additional Amounts, however, in any of the circumstances described in items (1)
through (13) below.

    
      
         

      

      
        R-2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (1)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any tax, assessment or other governmental charge that is imposed or
      withheld solely by reason of the beneficial
  owner:

            

    

    

    
      	
               
      

            	
              (a)

            	
              having
      a relationship with the United States as a citizen, resident or
      otherwise;

            

    

    
      	
               
      

            	
              (b)

            	
              having
      had such a relationship in the past
or

            

    

    
      	
               
      

            	
              (c)

            	
              being
      considered as having had such a
relationship.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any tax, assessment or other governmental charge that is imposed or
      withheld solely by reason of the beneficial
  owner:

            

    

    

    
      	
               
      

            	
              (a)

            	
              being
      treated as present in or engaged in a trade or business in the United
      States;

            

    

    
      	
               
      

            	
              (b)

            	
              being
      treated as having been present in or engaged in a trade or business in the
      United States in the past or

            

    

    
      	
               
      

            	
              (c)

            	
              having
      or having had a permanent establishment in the United
    States.

            

    

    

    
      	
               
      

            	
              (3)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any tax, assessment or other governmental charge that is imposed or
      withheld in whole or in part by reason of the beneficial owner being or
      having been any of the following (as such terms are defined in the
      Internal Revenue Code of 1986, as
amended):

            

    

    

    
      	
               
      

            	
              (a)

            	
              personal
      holding company;

            

    

    
      	
               
      

            	
              (b)

            	
              foreign
      personal holding company;

            

    

    
      	
               
      

            	
              (c)

            	
              foreign
      private foundation or other foreign tax-exempt
    organization;

            

    

    
      	
               
      

            	
              (d)

            	
              passive
      foreign investment company;

            

    

    
      	
               
      

            	
              (e)

            	
              controlled
      foreign corporation or

            

    

    
      	
               
      

            	
              (f)

            	
              corporation
      which has accumulated earnings to avoid United States federal income
      tax.

            

    

    

    
      	
               
      

            	
              (4)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any tax, assessment or other governmental charge that is imposed or
      withheld solely by reason of the beneficial owner owning or having owned,
      actually or constructively, 10 percent or more of the total combined
      voting power of all classes of stock of the Company entitled to vote or by
      reason of the beneficial owner being a bank that has invested in a Note as
      an extension of credit in the ordinary course of its trade or
      business.

            

    

    

    For
purposes of items (1) through (4) above, “beneficial owner” means a fiduciary,
settlor, beneficiary, member or shareholder of the holder if the holder is an
estate, trust, partnership, limited liability company, corporation or other
entity, or a person holding a power over an estate or trust administered by a
fiduciary holder.

    
      
         

      

      
        R-3

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (5)

            	
              Additional
      Amounts will not be payable to any beneficial owner of a Note that is
      a:

            

    

    

    
      	
               
      

            	 	
              (a)

            	
              fiduciary;

            

    

    
      	
               
      

            	 	
              (b)

            	
              partnership;

            

    

    
      	
               
      

            	 	
              (c)

            	
              limited
      liability company or

            

    

    
      	
               
      

            	 	
              (d)

            	
              other
      fiscally transparent entity

            

    

    

    
      	
               
      

            	
              or
      that is not the sole beneficial owner of the Note, or any portion of the
      Note. However, this exception to the obligation to pay Additional Amounts
      will only apply to the extent that a beneficiary or settlor in relation to
      the fiduciary, or a beneficial owner or member of the partnership, limited
      liability company or other fiscally transparent entity, would not have
      been entitled to the payment of an Additional Amount had the beneficiary,
      settlor, beneficial owner or member received directly its beneficial or
      distributive share of the payment.

            

    

    

    
      	
               
      

            	
              (6)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any tax, assessment or other governmental charge that is imposed or
      withheld solely by reason of the failure of the beneficial owner or any
      other person to comply with applicable certification, identification,
      documentation or other information reporting requirements. This exception
      to the obligation to pay Additional Amounts will only apply if compliance
      with such reporting requirements is required by statute or regulation of
      the United States or by an applicable income tax treaty to which the
      United States is a party as a precondition to exemption from such tax,
      assessment or other governmental
charge.

            

    

    

    
      	
               
      

            	
              (7)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any tax, assessment or other governmental charge that is collected or
      imposed by any method other than by withholding from a payment on a Note
      by  the Company or a paying
agent.

            

    

    

    
      	
               
      

            	
              (8)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any tax, assessment or other governmental charge that is imposed or
      withheld by reason of a change in law, regulation, or administrative or
      judicial interpretation that becomes effective more than 15 days after the
      payment becomes due or is duly provided for, whichever occurs
      later.

            

    

    

    
      	
               
      

            	
              (9)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any tax, assessment or other governmental charge that is imposed or
      withheld by reason of the presentation by the beneficial owner of a Note
      for payment more than 30 days after the date on which such payment becomes
      due or is duly provided for, whichever occurs
  later.

            

    

    

    
      	
               
      

            	
              (10)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any:

            

    

    
      
         

      

      
        R-4

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	 	
              (a)

            	
              estate
      tax;

            

    

    
      	
               
      

            	 	
              (b)

            	
              inheritance
      tax;

            

    

    
      	
               
      

            	 	
              (c)

            	
              gift
      tax;

            

    

    
      	
               
      

            	 	
              (d)

            	
              sales
      tax;

            

    

    
      	
               
      

            	 	
              (e)

            	
              excise
      tax;

            

    

    
      	
               
      

            	 	
              (f)

            	
              transfer
      tax;

            

    

    
      	
               
      

            	 	
              (g)

            	
              wealth
      tax;

            

    

    
      	
               
      

            	 	
              (h)

            	
              personal
      property tax or

            

    

    
      	
               
      

            	 	
              (i)

            	
              any
      similar tax, assessment, withholding, deduction or other governmental
      charge.

            

    

    

    
      	
               
      

            	
              (11)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any tax, assessment, or other governmental charge required to be
      withheld by any paying agent from a payment of principal or interest on a
      Note if such payment can be made without such withholding by any other
      paying agent.

            

    

    

    
      	
               
      

            	
              (12)

            	
              Additional
      amounts will not be payable if a payment on a Note is reduced as a result
      of any tax, assessment or other governmental charge that is required to be
      made pursuant to any European Union directive on the taxation of savings
      income or any law implementing or complying with, or introduced to conform
      to, any such directive.

            

    

    

    
      	
               
      

            	
              (13)

            	
              Additional
      Amounts will not be payable if a payment on a Note is reduced as a result
      of any combination of items (1) through (12)
  above.

            

    

    

    Except as specifically provided herein,
the Company will not be required to make any payment of any tax, assessment or
other governmental charge imposed by any government or a political subdivision
or taxing authority of such government.

    

    As used in this Note, “United States
person” means:

    

    
      	
               
      

            	
              (a)

            	
              any
      individual who is a citizen or resident of the United
    States;

            

    

    
      	
               
      

            	
              (b)

            	
              any
      corporation, partnership or other entity created or organized in or under
      the laws of the United States;

            

    

    
      	
               
      

            	
              (c)

            	
              any
      estate if the income of such estate falls within the federal income tax
      jurisdiction of the United States regardless of the source of such income
      and

            

    

    
      	
               
      

            	
              (d)

            	
              any
      trust if a United States court is able to exercise primary supervision
      over its administration and one or more United States persons have the
      authority to control all of the substantial decisions of the
      trust.

            

    

    

    Additionally, “non-United States
person” means a person who is not a United States person, and “United States”
means the states of the United States of America and the District of Columbia,
but excluding its territories and its possessions.

    
      
         

      

      
        R-5

        
          

        

      

      
         

      

    

    

    Except as provided below, the Notes may
not be redeemed prior to maturity.

    

    
      	
            	
              (1) 

            	
              The
      Company may, at its option, redeem the Notes
if:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Company becomes or will become obligated to pay Additional Amounts as
      described above;

            

    

    
      	
               
      

            	
              (b)

            	
              the
      obligation to pay Additional Amounts arises as a result of any change in
      the laws, regulations or rulings of the United States, or an official
      position regarding the application or interpretation of such laws,
      regulations or rulings, which change is announced or becomes effective on
      or after August 2, 2010 and

            

    

    
      	
               
      

            	
              (c)

            	
              the
      Company determines, in its business judgment, that the obligation to pay
      such Additional Amounts cannot be avoided by the use of reasonable
      measures available to it, other than substituting the obligor under the
      Notes or taking any action that would entail a material cost to the
      Company.

            

    

    

    
      	
               
      

            	
              (2)

            	
              The
      Company may also redeem the Notes, at its option,
  if:

            

    

    

    
      	
               
      

            	
              (a)

            	
              any
      act is taken by a taxing authority of the United States on or after August
      2, 2010, whether or not such act is taken in relation to the Company or
      any affiliate, that results in a substantial probability that the Company
      will or may be required to pay Additional Amounts as described
      above;

            

    

    
      	
               
      

            	
              (b)

            	
              the
      Company determines, in its business judgment, that the obligation to pay
      such Additional Amounts cannot be avoided by the use of reasonable
      measures available to it, other than substituting the obligor under the
      Notes or taking any action that would entail a material cost to the
      Company and

            

    

    
      	
               
      

            	
              (c)

            	
              the
      Company receives an opinion of independent counsel to the effect that an
      act taken by a taxing authority of the United States results in a
      substantial probability that the Company will or may be required to pay
      the Additional Amounts described under above, and delivers to the Trustee
      a certificate, signed by a duly authorized officer, stating that based on
      such opinion the Company is entitled to redeem the Notes pursuant to their
      terms.

            

    

    

    Any
redemption of the Notes as set forth in clauses (1) or (2) above shall be in
whole, and not in part, and will be made at a redemption price equal to 100% of
the principal amount of the Notes Outstanding plus accrued interest thereon to
the date of redemption.  Holders shall be given not less than 30 days
nor more than 60 days prior notice by the Trustee of the date fixed for such
redemption.

    

    All terms used in this Note which are
defined in the Indenture shall have the meanings assigned to them in the
Indenture.  The Notes are governed by the laws of the State of New
York.

    
      
         

      

      
        R-6

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