Document:

EXHIBIT 10.2

                                 THE 3DO COMPANY

                             SECURED SUBSEQUENT NOTE

$4,000,000                                                      January 30, 2003
                                                        Redwood City, California

         FOR  VALUE   RECEIVED  The  3DO  Company,   a  California   corporation
("Company")  promises to pay to William M.  Hawkins,  III  ("Investor"),  or his
registered assigns, the principal sum of Four Million Dollars  ($4,000,000),  or
such  lesser  amount as shall equal the  outstanding  principal  amount  hereof,
together  with  interest  from the  date of this  Note on the  unpaid  principal
balance at a rate equal to (i) the rate  payable by Investor to Comerica  Bank -
California  ("Comerica")  pursuant to the Variable Rate Single  Payment Note and
related documents dated on or about January 28, 2003 (the "Comerica Agreements")
for obligations  outstanding  under the Comerica  Agreements,  whether before or
after  an  event  of  default  under  the  Comerica  Agreements  or  (ii)  if no
obligations are outstanding under the Comerica Agreements,  a rate equal to nine
and  one-half  percent (9 1/2%) per annum,  computed  on the basis of the actual
number of days elapsed and a year of 365 days.  All unpaid  principal,  together
with any then unpaid and accrued  interest and other amounts payable  hereunder,
shall be due and payable (i) upon five (5) days prior written notice by Investor
to Company,  or (ii) when,  upon or after the  occurrence of an Event of Default
(as defined  below),  such  amounts are  declared due and payable by Investor or
made  automatically  due and payable in  accordance  with the terms  hereof.  In
addition,  this Note shall be subject to prepayment as set forth below.  Company
will make all  payments  due under  this Note in  immediately  available  United
States dollars, by 11:00 A.M.  (California time) on the date such payment is due
in the manner and at the address for such  purpose  specified  by Investor  from
time to time in writing.

         The  following  is a  statement  of the  rights  of  Investor  and  the
conditions  to  which  this  Note is  subject,  and to  which  Investor,  by the
acceptance of this Note,  and Company  agree:

         1. Definitions.  As used in this Note, the following  capitalized terms
have the following meanings:

                  (a) "Business Day" means any day other than a Saturday, Sunday
or public holiday under the laws of California.

                  (b)  "Change of  Control"  means a merger,  stock  transfer or
issuance  of  voting  securities,  in one or more  related  transactions,  which
results  in  Company's  or  Parent's,  as  applicable,  stockholders  before the
transaction(s)  owning voting securities after the transactions(s)  representing
the right to elect less than half of the  directors  of  Company  or Parent,  as
applicable,  (in  a  reverse  merger,  stock  transfer  or  issuance  of  voting
securities)  or  successor  entity  (in a  forward  merger or the sale of all or
substantially all of Company's or Parent's assets, in one or more transactions).

                  (c) "Event of Default" is defined in Section 6.
<PAGE>

                  (d) "Lien" means,  with respect to any property,  any security
interest,  mortgage, pledge, lien, claim, charge or other encumbrance in, of, or
on such property or the income therefrom,  including the interest of a vendor or
lessor  under a  conditional  sale  agreement,  capital  lease  or  other  title
retention agreement,  or any agreement to provide any of the foregoing,  and the
filing of any  financing  statement  or  similar  instrument  under the  Uniform
Commercial Code or comparable law of any jurisdiction.

                  (e) "Note and Warrant  Purchase  Agreement" means the Note and
Warrant Purchase Agreement by and among Parent, Company and Investor dated as of
December 27, 2002.

                  (f) "Material  Adverse Effect" means a material adverse effect
on (a) the business,  prospects,  assets,  operations or financial  condition of
Company or Parent;  (b) the ability of Company to pay or perform the Obligations
in  accordance  with the terms of this Note;  or (c) the rights and  remedies of
Investor  under  this  Note,  the other  Transaction  Documents  or any  related
document, instrument or agreement.

                  (g) "Parent" means The 3DO Company, a Delaware corporation.

                  (h) "Person" means an individual, a partnership, a corporation
(including  a  business  trust),  a joint  stock  company,  a limited  liability
company,  an  unincorporated  association,  a joint  venture or other  entity or
governmental authority.

                  (i)  "Preferred  Stock" means  Parent's  Series A  Convertible
Preferred  Stock,  par value $0.01, as described in the Parent's  Certificate of
Designations  filed with the  Secretary  of State of Delaware as of December 10,
2001 ("Parent's Certificate of Designations").

                  (j)  "Security  Agreement"  means  the  Amended  and  Restated
Security Agreement dated as of December 27, 2002 between Company and Investor.

                  (k)  "Transaction  Documents"  means this  Note,  the Note and
Warrant Purchase Agreement,  other notes issued pursuant to the Note and Warrant
Purchase  Agreement,  the  Warrant,  the  Registration  Rights  Agreement  dated
December 27, 2002 between Parent and Investor, the Security Agreement,  and each
UCC financing  statement or notice of security interest filed in connection with
the Security Agreement.

                  (l) "Warrant"  means the warrant dated as of December 27, 2002
issued by Parent to Investor.

         All  capitalized  terms not  otherwise  defined  herein  shall have the
respective  meanings  given in the  Security  Agreement  or the Note and Warrant
Purchase Agreement.

         2.  Interest.  Accrued  interest on this Note shall be payable (i) when
interest is payable by Investor to Comerica pursuant to the Comerica  Agreements
for  obligations  outstanding  under  the  Comerica  Agreements,  or  (ii) if no
obligations are outstanding  under the Comerica  Agreements,  ten days after the
last day of each calendar quarter until the outstanding  principal amount hereof
shall be paid in full,  with the first such payment due ten days after March 31,
2003. Interest shall be payable in cash.

                                       2
<PAGE>

         3. Prepayment.

                  (a)  Optional  Prepayment.  Upon five (5) days  prior  written
notice to Investor,  Company may prepay this Note in whole or in part;  provided
that any such  prepayment  will be applied  first to the payment of expenses due
under  this Note,  second to  interest  accrued  on this Note and third,  if the
amount of  prepayment  exceeds  the  amount  of all such  expenses  and  accrued
interest,  to the payment of principal of this Note.

                  (b)  Mandatory  Prepayment  on  Change  of  Control.   Without
limiting  Investor's right to demand prepayment at any time, Company must prepay
this Note in whole,  including all expenses and accrued  interest,  concurrently
with the closing of any transaction that constitutes a Change of Control.

         4. [Intentionally Omitted]

         5. Certain Covenants.

                  (a) Use of Proceeds.  Company  will use the proceeds  from the
sale of the Note  for  general  corporate  purposes  and  working  capital.

                  (b)  Financial   Information.   Company  agrees  to  send  the
following to Investor:  (i) unless the  following are filed with the SEC through
EDGAR and are  available to the public  through  EDGAR,  within two (2) Business
Days after the filing thereof with the SEC, a copy of Parent's Annual Reports on
Form 10-K, its Quarterly  Reports on Form 10-Q, any Current  Reports on Form 8-K
and any  registration  statements  (other than on Form S-8) or amendments  filed
pursuant to the Securities Act of 1933, as amended;  (ii) on the same day as the
release  thereof,  facsimile  copies of all press releases  issued by Company or
Parent;  and (iii) copies of any notices and other information made available or
given to the stockholders of Parent generally, contemporaneously with the making
available or giving thereof to the stockholders.

                  (c) Notice of Certain Events.  Company shall provide  Investor
with prompt written notice of the occurrence of any of the following events:

                           (i)  Breaches of  Covenants.  Company or Parent shall
fail to observe or perform any  covenant,  obligation,  condition  or  agreement
contained in this Note or the other Transaction Documents; or

                           (ii)    Representations    and    Warranties.     Any
representation,   warranty,   certificate,  or  other  statement  (financial  or
otherwise) made or furnished by or on behalf of Company or Parent to Investor in
writing in connection with this Note or any of the other Transaction  Documents,
or as an  inducement  to  Investor  to  enter  into  this  Note  and  the  other
Transaction Documents,  shall be false,  incorrect,  incomplete or misleading in
any material respect when made or furnished; or

                           (iii)  Other  Payment   Obligations.   Either  (A)  a
"Triggering  Event" (as defined in the  Parent's  Certificate  of  Designations)
shall have occurred with respect to the Preferred  Stock;  (B) Parent shall have
failed to pay a dividend  in a proper and  timely  manner to the  holders of

                                       3
<PAGE>

the Preferred  Stock; or (C) Company shall (1) fail to make any payment when due
under the terms of any other  indebtedness,  or (2) default in the observance or
performance  of any other  agreement,  term or condition  contained in any other
indebtedness,  and the effect of such failure or default is to cause,  or permit
the creditor  thereof to cause,  the obligations of Company with respect thereto
to become due prior to their stated date of maturity thereto; or

                           (iv)  Judgments.  A final  judgment  or order for the
payment of money in excess of Two  Hundred  Fifty  Thousand  Dollars  ($250,000)
(exclusive of amounts covered by insurance) shall be rendered against Company or
Parent, or any judgment, writ, assessment,  warrant of attachment,  or execution
or similar  process shall be issued or levied against a substantial  part of the
property of Company or Parent; or

                           (v) Transaction  Documents.  Any Transaction Document
or any material term thereof shall cease to be, or be asserted by Company not to
be, a legal, valid and binding  obligation of Company  enforceable in accordance
with its terms or if the Liens of  Investor  on the  Collateral  pursuant to the
Security  Agreement  shall cease to be or shall not be valid,  perfected,  first
priority  (subject to Permitted  Liens) Liens or Company  shall assert that such
Liens are not valid and perfected,  first priority  (subject to Permitted Liens)
Liens on the Collateral; or

                           (vi)  Nasdaq   Listing.   Parent's  common  stock  is
suspended from trading or no longer listed on the Nasdaq National Market.

         6. Events of Default.  The  occurrence  of any of the  following  shall
constitute  an  "Event of  Default"  under  this Note and the other  Transaction
Documents:

                  (a) Failure to Pay. Company shall fail to pay (i) when due any
principal or interest  payment on the due date under any Note; or (ii) any other
payment required under the terms of this Note or any other Transaction  Document
on the date due and such  payment  shall not have been made within five (5) days
of Company's receipt of Investor's  written notice to Company of such failure to
pay; or

                  (b) Voluntary Bankruptcy or Insolvency Proceedings. Company or
Parent shall (i) apply for or consent to the appointment of a receiver, trustee,
liquidator  or  custodian  of  itself  or of all or a  substantial  part  of its
property,  (ii) be unable,  or admit in writing its inability,  to pay its debts
generally as they mature, (iii) make a general assignment for the benefit of its
or any of its creditors,  (iv) be dissolved or liquidated,  (v) become insolvent
(as such term may be defined or interpreted under any applicable statute),  (vi)
commence   a   voluntary   case  or  other   proceeding   seeking   liquidation,
reorganization  or other  relief  with  respect to itself or its debts under any
bankruptcy,  insolvency  or other  similar  law now or  hereafter  in  effect or
consent to any such relief or to the appointment of or taking  possession of its
property by any official in an involuntary  case or other  proceeding  commenced
against  it, or (vii) take any action for the  purpose of  effecting  any of the
foregoing; or

                  (c)   Involuntary   Bankruptcy  or   Insolvency   Proceedings.
Proceedings for the appointment of a receiver,  trustee, liquidator or custodian
of Company or Parent or of all or a substantial part of the property thereof, or
an involuntary case or other proceedings seeking

                                       4
<PAGE>

liquidation, reorganization or other relief with respect to Company or Parent or
the debts thereof under any  bankruptcy,  insolvency or other similar law now or
hereafter in effect shall be commenced  and an order for relief  entered or such
proceeding  shall not be  dismissed  or  discharged  within  thirty (30) days of
commencement.

         7. Rights of Investor upon Default.  Without limiting  Investor's right
to demand  payment at any time,  upon the occurrence or existence of an Event of
Default  described in Section 6(a),  Investor may by written  notice to Company,
declare  all  outstanding   Obligations  payable  by  Company  hereunder  to  be
immediately due and payable without  presentment,  demand,  protest or any other
notice of any kind, all of which are hereby expressly waived, anything contained
herein or in the other  Transaction  Documents to the contrary  notwithstanding.
Upon the  occurrence  or existence of any Event of Default  described in Section
6(b) or 6(c),  immediately  and  without  notice,  all  outstanding  Obligations
payable by Company  hereunder  shall  automatically  become  immediately due and
payable,  without presentment,  demand, protest or any other notice of any kind,
all of which are hereby expressly  waived,  anything  contained herein or in the
other Transaction Documents to the contrary notwithstanding.  In addition to the
foregoing  remedies,  upon the  occurrence or existence of any Event of Default,
Investor  may  exercise  any other  right  power or remedy  granted to it by the
Transaction  Documents or otherwise  permitted to him by law,  either by suit in
equity or by action at law, or both.

         8. [Intentionally Omitted]

         9.  Successors and Assigns.  The rights and  obligations of Company and
Investor  under this Note  shall be binding  upon and  benefit  the  successors,
assigns,  heirs,  administrators  and transferees of the parties;  provided that
Company may not assign or transfer  any of its rights or  obligations  under any
Transaction Document without the prior written consent of Investor. Investor may
at any time sell, assign,  grant participations in, or otherwise transfer to any
other Person all or part of the  obligations  of Company under this Note and the
other Transaction Documents.  All references in this Note to any Person shall be
deemed to include all permitted successors and assigns of such Person. Transfers
of this Note shall be registered  upon  registration  books  maintained for such
purpose by or on behalf of Company.

         10. Waiver and Amendment. This Note may not be amended or modified, nor
may any of its terms be waived,  except by written instruments signed by Company
and  Investor.  Each  waiver or  consent  under any  provision  hereof  shall be
effective only in the specific instance and purpose for which given.

         11.  Notices.   Except  as  otherwise  provided  herein,  all  notices,
requests,  demands,  consents,  instructions or other  communications to or upon
Company or  Investor  under this Note shall be in writing  and faxed,  mailed or
delivered to each party to the  facsimile  number or its address set forth below
(or to such other  facsimile  number or address as the  recipient  of any notice
shall have notified the other in writing).  All such notices and  communications
shall be effective (a) when sent by Federal Express or other  overnight  service
of  recognized  standing,  on the business day  following  the deposit with such
service;  (b) when mailed,  by registered or certified mail, first class postage
prepaid and addressed as aforesaid  through the United  States  Postal  Service,
upon receipt;  (c) when delivered by hand,  upon  delivery;  and (d) when faxed,
upon confirmation of receipt.

                                       5
<PAGE>

         Investor:
                                    William M. Hawkins, III
                                    c/o THE 3DO COMPANY
                                    200 Cardinal Way
                                    Redwood City, California 94063
                                    Telephone: (650) 385-3000
                                    Facsimile: (650) 385-3183

         Company:
                                    THE 3DO COMPANY
                                    200 Cardinal Way
                                    Redwood City, California 94063
                                    Attn: James Alan Cook
                                    Telephone:  (650) 385-3000
                                    Facsimile: (650) 385-3183

         12. Default Rate; Usury. During any period in which an Event of Default
has  occurred  and is  continuing,  Company  shall pay  interest  on the  unpaid
principal  balance  hereof  at a rate per  annum  equal  to the  rate  otherwise
applicable hereunder plus two percent (2%). If any interest is paid on this Note
is deemed to be in excess of the then legal maximum  rate,  then that portion of
the interest payment  representing an amount in excess of the then legal maximum
rate shall be deemed a payment of principal and applied against the principal of
this Note.

         13. Governing Law; Jurisdiction.  This Note and all actions arising out
of or in  connection  with this  Note  shall be  governed  by and  construed  in
accordance  with the laws of the  State of  California,  without  regard  to the
conflict of laws  provisions of the State of California,  or of any other state.
Any  action  or  proceeding  relating  in any  way to  this  Note  or the  other
Transaction  Documents may be brought and enforced in the courts of the State of
California or of the United States for the Northern District of California.  Any
such process or summons in connection  with any such action or proceeding may be
served by  mailing a copy  thereof  by  certified  or  registered  mail,  or any
substantially similar form of mail, addressed to Company or Investor as provided
for notices hereunder.

         14. Indemnity.

                  (a) Indemnity. In consideration of Investor's purchase of this
Note and in addition to all of Company's other obligations under the Transaction
Documents,  Company shall defend, protect,  indemnify and hold harmless Investor
and all of its  stockholders,  officers,  directors,  employees  and  direct  or
indirect  investors  and  any of  Investors'  agents  or  other  representatives
(including  those retained in connection with the  transactions  contemplated by
the Transaction  Documents)  (collectively,  the "Indemnitees") from and against
any and all actions,  causes of action, suits, claims, losses, costs, penalties,
fees,   liabilities   and  damages,   and  expenses  in   connection   therewith
(irrespective  of whether any such Indemnitee is a party to the action for which
indemnification  hereunder is sought), and including reasonable  attorneys' fees
and disbursements (collectively, the "Indemnified Liabilities"), incurred by any
Indemnitee as a result of, or arising out of, or relating to any matter or thing
or action or failure to act by  Indemnitees,  or any of them,  arising out of or
relating  to the  Transaction  Documents,  including  any use by  Company of any

                                       6
<PAGE>

proceeds from the sale of this Note,  except to the extent such liability arises
from the gross  negligence  or willful  misconduct  of the  Indemnitees.  To the
extent that the foregoing  undertaking by Company may be  unenforceable  for any
reason,  Company  shall  make  the  maximum  contribution  to  the  payment  and
satisfaction of each of the Indemnified  Liabilities  which is permissible under
applicable law.

                  (b) Process.  Upon receiving  knowledge of any suit,  claim or
demand  asserted  by a third  party that  Investor  believes  is covered by this
indemnity (a "Claim"),  Investor  shall give Company notice of the matter and an
opportunity to defend it, at Company's sole cost and expense, with legal counsel
satisfactory to Investor.  However, the Indemnitees may retain their own counsel
with the fees and expenses of not more than one counsel for the  Indemnitees  to
be paid by  Company,  if, in the  reasonable  opinion  of  counsel  retained  by
Company, the representation by such counsel of the Indemnitees and Company would
be inappropriate  due to actual or potential  differing  interests  between such
Indemnitees  and any other party  represented by such counsel.  The  Indemnitees
shall, at Company's expense, cooperate fully with Company in connection with any
negotiation  or  defense  of any  Claim  by  Company.  Company  shall  keep  the
Indemnitees  fully  apprized as to the status of the  defense or any  settlement
negotiations  with  respect  thereto.  Company  shall  not  be  liable  for  any
settlement of any Claim effected  without its prior written  consent,  provided,
however,  that Company shall not unreasonably  withhold,  delay or condition its
consent.   Company  shall  not,   without  the  prior  written  consent  of  the
Indemnitees,  consent to entry of any judgment or enter into any  settlement  or
other  compromise  which does not include as an  unconditional  term thereof the
giving by the  claimant or plaintiff  to the  Indemnitees  of a release from all
liability  in respect to such Claim.  Any failure or delay of Investor to notify
Company of any Claim shall not  relieve  Company of its  obligations  under this
Section,  but shall  reduce such  obligations  to the extent of any  increase in
those  obligations  caused  solely by an  unreasonable  failure  or  delay.  The
indemnification  required by this Section shall be made by periodic  payments of
the amount thereof  during the course of the  investigation  or defense,  as and
when bills are received or Indemnified  Liabilities are incurred.  The indemnity
agreements  contained  herein shall be in addition to (i) any cause of action or
similar  right of an  Indemnitee  has  against  Company or others,  and (ii) any
liabilities  Company may be subject to pursuant to the law. The  obligations  of
the parties under this Section shall survive the payment and  performance of the
Obligations.

         15. No Third Party Rights.  Nothing  expressed in or to be implied from
this Note is intended to give, or shall be construed to give, any Person,  other
than the parties hereto and their  permitted  successors and assigns  hereunder,
any benefit or legal or equitable  right,  remedy or claim under or by virtue of
this Note or under or by virtue of any provision herein.

         16. Expenses.  Company shall pay on demand, (a) all reasonable fees and
expenses,  including  reasonable  attorneys'  fees  and  expenses,  incurred  by
Investor in connection with the preparation,  execution and delivery of, and the
exercise  of its rights and duties  under,  this Note and the other  Transaction
Documents,   and  the  preparation  of  amendments  and  waivers  hereunder  and
thereunder;  and (b) all  reasonable  fees and  expenses,  including  reasonable
attorneys' fees and expenses, incurred by Investor in the enforcement or attempt
to enforce any of the Obligations which is not performed as and when required by
this Note or the other Transaction Documents.

                                       7
<PAGE>

         17. Cumulative Rights, etc. The rights, powers and remedies of Investor
under this Note shall be in addition to all rights, powers and remedies given to
Investor by virtue of any applicable law, rule or regulation of any governmental
authority, any Transaction Document or any other agreement, all of which rights,
powers,  and remedies shall be cumulative and may be exercised  successively  or
concurrently without impairing Investor's rights hereunder.

         18. Payments Free of Taxes, Etc. All payments made by Company under the
Transaction  Documents  shall be made by Company  free and clear of and  without
deduction for any and all present and future taxes, levies, charges,  deductions
and withholdings.  In addition, Company shall pay upon demand any stamp or other
taxes,  levies or charges of any  jurisdiction  with  respect to the  execution,
delivery, registration, performance and enforcement of this Note.

         19. Partial Invalidity. If at any time any provision of this Note is or
becomes  illegal,  invalid or  unenforceable in any respect under the law or any
jurisdiction,  neither the legality, validity or enforceability of the remaining
provisions of this Note nor the  legality,  validity or  enforceability  of such
provision under the law of any other  jurisdiction  shall in any way be affected
or impaired thereby.

         20.  Interpretive  Provisions.  References in this Note and each of the
other  Transaction  Documents  to any  document,  instrument  or  agreement  (a)
includes all exhibits, schedules and other attachments thereto, (b) includes all
documents,  instruments or agreements issued or executed in replacement thereof,
and (c)  means  such  document,  instrument  or  agreement,  or  replacement  or
predecessor thereto, as amended, modified and supplemented from time to time and
in effect at any given time. The words  "hereof,"  "herein" and  "hereunder" and
words of similar import when used in this Note or any other Transaction Document
refer to this Note or such other Transaction  Document, as the case may be, as a
whole and not to any particular provision of this Note or such other Transaction
Document,  as the  case  may be.  References  in  this  Note  to  "Sections"  or
"Schedules"  are to  sections or  schedules  herein or hereto  unless  otherwise
indicated.  The words "include" and "including" and words of similar import when
used in this Agreement  shall not be construed to be limiting or exclusive.  The
word "or" when used in this Note shall mean either as well as both.  Headings in
this  Note  are for  convenience  of  reference  only  and  are not  part of the
substance hereof. All terms defined in this Note in the singular form shall have
comparable meanings when used in the plural form and vice versa.

         21. Construction. Each of this Note and the other Transaction Documents
is the result of negotiations among, and has been reviewed by, Company, Investor
and their respective counsel.  Accordingly,  this Note and the other Transaction
Documents  shall be deemed to be the  product of Company  and  Investor,  and no
ambiguity shall be construed in favor of or against Company or Investor.

                                       8
<PAGE>

         IN WITNESS WHEREOF, Company has caused this Note to be issued as of the
date first written above.

                                        THE 3DO COMPANY
                                        a California corporation

                                        By: /s/ James Alan Cook
                                            ------------------------------------
                                        Name: James Alan Cook
                                             -----------------------------------
                                        Title:  Executive Vice President
                                               ---------------------------------

                                       9<PAGE>
                                                                    Exhibit 4.01

            This 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.
                    FLOATING RATE NOTES DUE FEBRUARY 7, 2005

<TABLE>
<CAPTION>
REGISTERED                                                            REGISTERED
<S>                                                      <C>
                                                             CUSIP: 172967 BT 7
                                                           ISIN: US172967 BT 79
                                                         Common Code: 016263761

No. R-                                                                        $
</TABLE>

            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 February 7, 2005 and to pay interest thereon from and including
February 7, 2003 or from the most recent Interest Payment Date to which interest
has been paid or duly provided for, quarterly, on February 7, May 7, August 7
and November 7 of each year, commencing May 7, 2003, at the rate per annum for
each Interest Period of three-month LIBOR plus 0.07%, determined as provided
herein, 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 Business Day immediately preceding such
Interest Payment Date.
<PAGE>
            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 the actual number
of days elapsed in an Interest Period and a 360-day year. Dollar amounts
resulting from such calculation will be rounded to the nearest cent, with
one-half cent being rounded upward. An "Interest Period" shall be the period
from and including an Interest Payment Date (or from February 7, 2003 in the
case of the first Interest Payment Date) to and including the day immediately
preceding the next Interest Payment Date.

            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 the
Maturity of the Notes will be the next succeeding Business Day (unless that day
falls in the next calendar month, in which case such date will be the first
preceding 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
<PAGE>
            IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed under its corporate seal.

Dated:  February 7, 2003

                            CITIGROUP INC.

                            By:_________________________________
                            Title:  Treasurer

ATTEST:

By:___________________________
Title:  Assistant Secretary

                                       3
<PAGE>
            This is one of the Notes of the series issued under the
within-mentioned Indenture.

Dated:  February 7, 2003

                            THE BANK OF NEW YORK,
                            as Trustee

                            By:_________________________________
                               Name:
                               Title:

                            -or-

                            CITIBANK, N.A.,
                            as Authenticating Agent

                            By:_________________________________
                               Name:
                               Title:

                                       4
<PAGE>
      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, 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 $2,000,000,000.

      This Note will bear interest for each Interest Period at a rate determined
by Citibank, N.A., acting as Calculation Agent. The interest rate on this Note
for a particular Interest Period will be a per annum rate equal to LIBOR as
determined on the related Interest Determination Date plus 0.07%. The Interest
Determination Date for an Interest Period will be the second London business day
preceding such Interest Period. Promptly upon determination, the Calculation
Agent will inform the Trustee and the Company of the interest rate for the next
Interest Period. Absent manifest error, the determination of the interest rate
by the Calculation Agent shall be binding and conclusive on the holders of
Notes, the Trustee and the Company.

      A London business day is a day on which dealings in deposits in U.S.
dollars are transacted in the London interbank market.

      On any Interest Determination Date, LIBOR will be equal to the offered
rate for deposits in U.S. dollars having an index maturity of three months for
the next Interest Period, in amounts of at least $1,000,000, as such rate
appears on Telerate Page 3750 at approximately 11:00 a.m., London time, on such
Interest Determination Date. If the Telerate Page 3750 is replaced by another
service or ceases to exist, the Calculation Agent will use the replacing service
or such other service that may be nominated by the British Bankers' Association
for the purpose of displaying London interbank offered rates for U.S. dollar
deposits.

      If no offered rate appears on Telerate Page 3750 on an Interest
Determination Date at approximately 11:00 a.m., London time, then the
Calculation Agent (after consultation with the Company) will select four major
banks in the London interbank market and shall request each of their principal
London offices to provide a quotation of the rate at which three-month deposits
in U.S. dollars in amounts of at least $1,000,000 are offered by it to prime
banks in the London interbank market, on that date and at that time, that is
representative of single transactions at that time. If at least two quotations
are provided, LIBOR will be the arithmetic average of the quotations provided.
Otherwise, the Calculation Agent will select three major banks in New York City
and shall request each of them to provide a quotation of the rate offered by
them at approximately 11:00 a.m., New York City time, on the Interest
Determination Date for loans in U.S. dollars to leading European banks having an
index maturity of three months for the applicable Interest Period in an amount
of at least $1,000,000 that is representative of single transactions at that
time. If three quotations are provided, LIBOR will be the arithmetic average

                                       5
<PAGE>
of the quotations provided. Otherwise, the rate of LIBOR for the next Interest
Period will be set equal to the rate of LIBOR for the current Interest Period.

      The interest rate in effect for this Note for the first Interest Period of
February 7, 2003 through May 6, 2003 shall be 1.41875%.

      Upon request from any Noteholder, the Calculation Agent will provide the
interest rate in effect on this Note for the current Interest Period and, if it
has been determined, the interest rate to be in effect for the next Interest
Period.

      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.

                                       6
<PAGE>
      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 integral multiples 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.

      (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:

                                       7
<PAGE>
            (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 solely 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.

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

            (a)   fiduciary;

                                       8
<PAGE>
            (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:

            (a)   estate tax;

            (b)   inheritance tax;

            (c)   gift tax;

                                       9
<PAGE>
            (d)   sales tax;

            (e)   excise tax;

            (f)   transfer tax;

            (g)   wealth tax;

            (h)   personal property tax or

            (i)   any similar tax, assessment 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 United States of America,
including the States and the District of Columbia, but excluding its territories
and its possessions.

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

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

                                       10
<PAGE>
            (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 January
                  30, 2003 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 January 30, 2003, 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 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.

                                       11

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