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                                                                    EXHIBIT 10.7


ASSOCIATES FIRST CAPITAL CORPORATION
INCENTIVE COMPENSATION PLAN
STOCK OPTION AWARD AGREEMENT - 2000

You have been selected to become a Participant in the Associates First Capital
Corporation Incentive Compensation Plan (the "Plan") for 2000, through this
grant of a nonqualified stock option (the "Stock Option" or "Option") as
specified below:

PARTICIPANT:
            ------------------------------------------------
ADDRESS:
         ---------------------------------------------------

         ---------------------------------------------------
OPTION NO.:
           ----------------------------
DATE OF GRANT:
              -------------------------
NUMBER OF SHARES COVERED BY THIS AGREEMENT:
                                           -----------------
OPTION PRICE:
             --------------------------
DATE OF EXPIRATION:
                   --------------------

Except as hereinafter provided, you may exercise this Option in accordance with
the following vesting schedule:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
            Percentage        Number of Shares Available             Cumulative Number of Shares
 Date       Exercisable       for Purchase as of this Date*          Available for Purchase*
------------------------------------------------------------------------------------------------
<S>                           <C>                                    <C>
             33 1/3%             ______________ Shares                 ______________ Shares

             66 2/3%             ______________ Shares                 ______________ Shares**

             100%                ______________ Shares                 ______________ Shares**
------------------------------------------------------------------------------------------------
</TABLE>

THIS AGREEMENT, effective as of the Date of Grant set forth above, represents
the grant of an Option to purchase shares of the Class A Common Stock ("Shares")
of Associates First Capital Corporation, a Delaware corporation (the "Company"),
to the Participant named above, pursuant to the provisions of the Plan.

--------

*    Number of Shares may reflect rounding to extent necessary to avoid
     fractional Shares.

**   Numbers listed assume no exercise has yet occurred under this Option.


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The Plan provides a description of certain terms and conditions governing the
Option. In the event of any inconsistency between the terms of this Agreement
and the terms of the Plan, the Plan's terms shall completely supersede and
replace the conflicting terms of this Agreement. All capitalized terms shall
have the meanings ascribed to them in the Plan, unless specifically set forth
otherwise herein. The parties hereto agree as follows:

1.       GRANT OF STOCK OPTION. The Participant is hereby granted an Option to
         purchase the number of Shares set forth above, at the stated Option
         Price (as set forth on page 1 of this Agreement), which is 100 percent
         of the Fair Market Value of a Share on the Date of Grant, in the manner
         and subject to the applicable terms and conditions of the Plan and this
         Agreement.

2.       EXERCISE OF STOCK OPTION. Except as otherwise provided in this
         Agreement, the Participant may exercise this Option as provided in
         Section 3 of this Agreement and according to the vesting schedule set
         forth on page 1 of this Agreement, provided that no exercise may occur
         prior to the end of one (1) year following the Date of Grant or
         subsequent to the close of business on the Date of Expiration (as set
         forth on page 1 of this Agreement).

         This Option may be exercised in whole or in part, but not for less than
         25 Shares at any one time, unless fewer than 25 Shares then remain
         subject to the Option, and the Option is then being exercised as to all
         such remaining Shares. The Option may be exercised only for full
         Shares; no Option is exercisable for fractional Shares.

3.       PROCEDURE FOR EXERCISE OF OPTION. Exercise of this Option may be
         initiated on any business day by delivery of a notice of exercise (on
         such form as may be specified and provided by the Company or its
         designee) (the "Notice of Exercise") to the Company or its designee, or
         by such other method as the Company specifies. The Company may at any
         time change the time and/or manner in which the Option may be
         exercised. Further, the Company reserves the right to limit the manner
         in which the Option may be exercised at any time, and from time to
         time, for Participants in a given country to facilitate or ensure
         compliance with local law or for reasons of administrative ease.

         (a)      Payment of Option Price: The Option Price shall be payable (i)
                  in cash in the form of currency or check or other cash
                  equivalent acceptable to the Company; (ii) by tendering
                  previously acquired, nonforfeitable, nonrestricted Shares
                  (provided that any Shares so tendered must have been owned by
                  the Participant for at least six months prior to their
                  tender); or (iii) by a combination of the foregoing methods.
                  The requirement of payment in cash may be satisfied through a
                  "cashless exercise" as described in Section 3(b).

         (b)      Cashless Exercise: A Participant may direct, through the
                  Company's designee or in such other manner as the Company may
                  specify from time to time, a broker that is a member of the
                  National Association of Securities Dealers, Inc. to sell a
                  sufficient number of the Shares being purchased pursuant to
                  the exercise so that the net proceeds of the sale transaction
                  will at least equal the aggregate Option Price, plus interest
                  (if any) at the applicable federal rate (as "applicable
                  federal rate" is defined in Section 1274 of the Code) for the
                  period from the date of exercise to the date of payment, and
                  to deliver the aggregate Option Price, plus such interest (if
                  any), to the Company not later than the date on which the sale
                  transaction will settle in the



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                  ordinary course of business (such a broker-assisted
                  transaction to be referred to herein as a "cashless
                  exercise").

         (c)      Share Price: Any Share purchased (and sold, in the case of a
                  cashless exercise) pursuant to exercise of the Option shall be
                  valued on the basis of such Share's Fair Market Value as of
                  the date on which exercise of the Option is completed (or, if
                  exercise of the Option is completed over a period of more than
                  one day, on the basis of the average Fair Market Value during
                  such period). Any Share tendered by the Participant in payment
                  of all or any part of the Option Price shall be valued on the
                  basis of such Share's Fair Market Value as of the date on
                  which such Share is exchanged in order to effectuate exercise
                  of the Option.

         (d)      Delivery to Participant: As soon as practicable following the
                  date on which the purchase (and sale, in the case of a
                  cashless exercise) of Shares pursuant to the Option will
                  settle in the ordinary course of business, the Company shall
                  cause, in accordance with the Participant's election and in
                  any case net of transaction fees (if any) and tax withholding
                  (if applicable pursuant to Section 3(e)), the following to
                  occur:

                  (i)      Certificates for the Shares purchased to be delivered
                           to the Participant;

                  (ii)     The number of Shares purchased to be credited to a
                           brokerage account specified by the Participant on the
                           Notice of Exercise; or

                  (iii)    In the event of a cashless exercise, any proceeds of
                           the sale transaction remaining after delivery to the
                           Company of the aggregate Option Price (plus any
                           interest, as described in Section 3(b)) to be
                           delivered to the Participant in the manner specified
                           by the Participant on the Notice of Exercise.

                  If a Participant elects either (i) or (ii), to the extent such
                  Participant has elected a cashless exercise of the Option, the
                  number of Shares subject to this Section 3(d) shall be only
                  the number of Shares remaining after the sale transaction
                  described in Section 3(b).

         (e)      Withholding: If the Company or a Company Subsidiary (as
                  hereinafter defined) is required by law to withhold any
                  federal, state, national, provincial or other tax, pension or
                  insurance withholding obligations imposed by any governmental
                  authority under applicable law in connection with exercise of
                  an Option, the Participant shall either (i) pay such taxes, in
                  addition to the Option Price, in conjunction with electing
                  exercise of the Option or (ii) elect either (A) to have such
                  taxes withheld from any cash payment of proceeds pursuant to a
                  cashless exercise or (B) to satisfy all or any part of any
                  such withholding obligation by surrendering to the Company or
                  the Company Subsidiary (either directly or through their
                  respective designees) a portion of the Shares issued or
                  transferred to the Participant pursuant to exercise of the
                  Option. To the extent that a Participant elects to meet any
                  withholding obligation by surrendering Shares, the Shares so
                  surrendered shall be credited against any such withholding
                  obligation at the Fair Market Value per Share on the date of
                  such surrender; provided, however, if the Participant is
                  subject to Section 16 of the Exchange Act, such election shall
                  be subject to approval by the Committee if such



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                  approval is then required by Rule 16b-3 of the General Rules
                  and Regulations promulgated under the Exchange Act. All
                  withholding elections shall be irrevocable. The term "Company
                  Subsidiary" when used herein shall mean any corporation a
                  majority of the voting stock of which is owned directly or
                  indirectly by the Company.

4.       TERMINATION OF EMPLOYMENT.

         (a)      By Retirement, Disability or death: In the event of a
                  Participant's termination of employment due to Retirement,
                  Disability or death ("Retirement" and "Disability" as
                  hereinafter defined), the Option shall continue in effect and
                  shall become fully vested and exercisable during the
                  applicable periods in accordance with the provisions hereof.
                  For purposes of this Agreement, termination of a Participant's
                  employment due to "Retirement" shall mean a voluntary
                  termination of a Participant's employment with the Company or
                  a Company Subsidiary on or after such date as the Participant
                  is eligible to commence pension payments under the Company's
                  defined benefit pension plan (excluding any payment of
                  benefits attributable to a prior employer's plan) or, if
                  applicable, separate pension plan sponsored by the Company or
                  a Company Subsidiary or other pension benefit plan as may be
                  required under applicable law in effect in any jurisdiction
                  outside the United States, in each case as such plan is then
                  in effect. The term "Disability" when used herein shall mean a
                  Participant's complete and total disability as determined
                  under the Company's long-term disability plan or, if
                  applicable, separate similar plan in effect or as may be
                  required under applicable law in any jurisdiction outside the
                  United States, in each case as such plan is in effect at the
                  time of such determination. In the event of the Participant's
                  death prior to exercise of this Option in whole, the
                  beneficiary designated or deemed to be designated pursuant to
                  Section 8 hereof or, if such beneficiary is an estate, the
                  executor or administrator of the estate or the person or
                  persons to whom the Option shall have been validly transferred
                  by the executor or the administrator pursuant to will or the
                  laws of descent and distribution, shall have the right to
                  exercise the Option, when vested, in accordance with the
                  provisions hereof.

         (b)      By termination for Cause or resignation: In the event of the
                  resignation of employment by the Participant or termination of
                  the Participant's employment by the Company or a Company
                  Subsidiary for Cause (as hereinafter defined), the Option
                  shall be forfeited effective as of the date of such
                  resignation or termination, and the Participant's right to
                  exercise this Option shall cease. For purposes of this
                  Agreement, a termination by the Company or a Company
                  Subsidiary for "Cause" shall mean a termination resulting from
                  (a) action by the Participant involving willful malfeasance,
                  (b) the Participant's unreasonable neglect or refusal to
                  perform such Participant's duties for the Company, Company
                  Subsidiary or any of their affiliates, (c) the Participant
                  being convicted of a felony, (d) the Participant engaging in
                  any activity that is directly or indirectly in competition
                  with the Company, Company Subsidiary or any of their
                  affiliates or in any activity that is inimical to the best
                  interests of the Company, Company Subsidiary or any of their
                  affiliates, or (e) the Participant's violation of Company
                  policy covering standards of corporate conduct. If the Company
                  or a Company Subsidiary terminates the Participant's
                  employment for



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                  Cause, all of the Company's obligations under this Agreement
                  shall thereupon cease and terminate.

         (c)      By termination other than for Cause: In the event of a
                  termination of the Participant's employment for reasons other
                  than Retirement, Disability, death, termination by the Company
                  or Company Subsidiary for Cause or resignation, the portion of
                  the Option that is vested as of the date of termination of
                  employment may be exercised to the extent permitted under the
                  provisions hereof until the earlier of (i) the Date of
                  Expiration (as set forth on page 1 of this Agreement) or (ii)
                  the close of business on the 90th day following the date of
                  termination of employment. No other rights under this
                  Agreement shall continue in effect or continue to accrue from
                  the date of termination forward.

5.       EFFECT OF COMPETITIVE ACTIVITY OR INIMICAL CONDUCT.

         (a)      Anything contained herein to the contrary notwithstanding, the
                  right of the Participant to exercise the Option shall remain
                  effective only if, during the entire period from the Date of
                  Grant (as set forth on page 1 of this Agreement) to the date
                  of such exercise, the Participant shall have earned the Option
                  by refraining from engaging in any activity that is directly
                  or indirectly in competition with any activity of the Company
                  or any Company Subsidiary or any of their affiliates.

         (b)      In the event of the Participant's nonfulfillment of the
                  condition set forth in Section 5(a), the Participant's right
                  to exercise such Option shall cease; provided, however, that
                  the nonfulfillment of such condition may at any time be waived
                  by the Committee upon its determination, in its sole judgment,
                  that there shall not have been and will not be any substantial
                  adverse effect upon the Company or any Company Subsidiary or
                  any of their affiliates by reason of the nonfulfillment of
                  such condition.

         (c)      The right of the Participant to exercise the Option shall
                  cease on and as of the date on which it has been determined by
                  the Committee that the Participant at any time acted in a
                  manner inimical to the best interests of the Company or any
                  Company Subsidiary or any of their affiliates. Conduct that
                  constitutes engaging in an activity that is directly or
                  indirectly in competition with any activity of the Company or
                  any Company Subsidiary or any of their affiliates shall be
                  governed by Sections 5(a) and 5(b) and shall not be subject to
                  any determination under this Section 5(c).

6.       RESTRICTIONS ON EXERCISE AND TRANSFER. This Option (a) shall be
         exercisable during the Participant's lifetime only by the Participant
         or, in the event of the Participant's legal incapacity, by the
         Participant's legal guardian or representative acting in a fiduciary
         capacity on behalf of the Participant under applicable law and court
         supervision, if legally required, and (b) may not be sold, transferred,
         pledged, assigned or otherwise alienated or hypothecated, other than by
         will or by the laws of descent and distribution.

7.       RECAPITALIZATION. In the event of any change in capitalization of the
         Company (such as a stock split, stock dividend or combination of
         shares), corporate transaction (such as any merger, consolidation,
         separation, including a spin-off, or other distribution of stock or



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         property of the Company), reorganization (whether or not such
         reorganization comes within the definition of such term in Code Section
         368) or partial or complete liquidation of the Company, an adjustment
         may be made in the number and class of Shares subject to this Option,
         as well as the Option Price, as may be determined to be appropriate and
         equitable by the Committee, in its sole discretion, to reflect such
         change in capitalization, corporate transaction, reorganization or
         partial or complete liquidation.

8.       BENEFICIARY DESIGNATION. The Participant may designate a beneficiary or
         beneficiaries (who may be named contingently or successively) who, in
         the event of the Participant's death prior to exercise of this Option
         in whole, shall be entitled to exercise any unexercised portion of the
         Option. Any such beneficiary designation shall be made by the
         Participant in writing (on the appropriate form as provided by the
         Company or a Company Subsidiary) and shall automatically revoke all
         prior designations by the Participant. The Participant may, at any time
         and from time to time, change or revoke such designation. A beneficiary
         designation, or revocation of a prior beneficiary designation, shall be
         effective only if it is signed by the Participant and received by the
         Company or a Company Subsidiary prior to the Participant's death. If
         the Participant does not designate a beneficiary or all beneficiaries
         die prior to exercise of any unexercised portion of the Option, the
         Participant's estate shall be deemed to be the beneficiary. If a
         beneficiary dies after having exercised at least a portion of the
         Option, the beneficiary's estate shall be deemed to be the beneficiary
         of any remaining unexercised portion of the Option.

9.       RIGHTS AS A STOCKHOLDER. The Participant shall have no rights as a
         stockholder of the Company with respect to the Shares subject to this
         Agreement until such time as the Option Price has been paid and the
         Shares have been issued and delivered to him or her.

10.      NO RIGHT OF EMPLOYMENT. The grant of the Option to the Participant does
         not create a right to continued employment with the Company or any
         Company Subsidiary. Nothing in this Agreement shall interfere with or
         limit in any way the right of the Company or a Company Subsidiary to
         terminate the employment of the Participant at any time, with or
         without reason; nor shall anything in this Agreement be deemed to
         create or confer upon the Participant or any other individual any
         rights to employment of any kind or nature whatsoever for any period of
         time or at any particular rate of compensation, including, without
         limitation, any right to continue in the employ of the Company or any
         Company Subsidiary.

11.      COMPLIANCE WITH LAW. The Company shall make reasonable efforts to
         comply with all applicable federal, state, national and provincial
         securities laws or other securities laws; provided, however,
         notwithstanding any other provision of this Agreement, the Option shall
         not be exercisable if the exercise thereof would result in a violation
         of any such law. The Committee may impose such restrictions, including
         restrictions on transferability, on any Shares acquired pursuant to the
         exercise of this Option as the Committee may deem advisable under any
         of the aforementioned securities laws or other requirements, including,
         without limitation, restrictions of any securities exchange or market
         upon which such Shares are then listed and/or traded.

12.      DATA PROTECTION. By executing this Agreement, the Participant consents
         to the Company or the Company Subsidiary that directly employs the
         Participant and any agent or independent



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         contractor appointed by the Company to administer the Stock Option
         Awards under the Plan and this Agreement to obtain and maintain any
         personal information from the Participant's employer, and to disclose
         and transfer such information to each other and/or third parties as may
         be required, whether locally or abroad, for the effective
         administration of the Stock Option Awards. Neither the Company, the
         Company Subsidiary nor any agent or independent contractor shall be
         liable for any loss or damage, whether direct or indirect or
         consequential, incurred by the Participant and arising from the use of
         such personal information as authorized herein.

13.      MISCELLANEOUS.

         (a)      This Agreement and the rights of the Participant hereunder are
                  subject to all the terms and conditions of the Plan, as the
                  same may be amended from time to time, as well as to such
                  rules and regulations as the Committee may adopt for
                  administration of the Plan. It is expressly understood that
                  the Committee is authorized to administer, construe and make
                  all determinations necessary or appropriate to the
                  administration of the Plan and this Agreement, all of which
                  shall be binding upon the Participant.

         (b)      Pursuant to the terms of the Plan, (i) the Board may at any
                  time, and from time to time, in its sole discretion alter,
                  amend, suspend or terminate the Plan in whole or in part for
                  any reason or for no reason, and (ii) the Committee may make
                  adjustments to this Option and Agreement in recognition of
                  unusual or nonrecurring events affecting the Company or the
                  financial statements of the Company and/or changes in
                  applicable laws, regulations or accounting principles whenever
                  the Committee determines that such adjustments are
                  appropriate; provided, however, that no alteration, amendment,
                  suspension or termination of the Plan shall adversely affect
                  in any material way the Participant's vested rights under this
                  Agreement without the written consent of the Participant.
                  Notwithstanding the foregoing, the Committee may modify,
                  without the Participant's consent, this Option and Agreement
                  to recognize differences in local law, tax policy or custom if
                  the Participant is a foreign national or employed outside the
                  United States.

         (c)      The Participant agrees to take all steps necessary to comply
                  with all applicable provisions of federal, state, national and
                  provincial securities law and other securities laws in
                  exercising his or her rights under this Agreement.

         (d)      This Agreement shall be subject to all applicable laws, rules,
                  and regulations, and to such approvals by any governmental
                  agencies or national securities exchanges as may be required.

         (e)      All obligations of the Company under the Plan and this
                  Agreement, with respect to this Option, shall be binding on
                  any successor to the Company, whether the existence of such
                  successor is the result of a direct or indirect purchase,
                  merger, consolidation, or otherwise, of all or substantially
                  all of the business and/or assets of the Company.



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         (f)      To the extent not preempted by United States federal law or
                  other comparable law, this Agreement shall be construed in
                  accordance with and governed by the laws of the State of
                  Texas.

         (g)      The grant of the Option to the Participant is completely
                  discretionary in nature and is not to be considered part of
                  any Participant's salary or compensation for purposes of
                  calculating any severance, resignation, redundancy, end of
                  service payments, bonuses, long-term service awards, pension
                  or retirement benefits, or similar payments except as
                  otherwise required under local law. Neither the Participant
                  nor any other individual shall have any right to be selected
                  to receive a grant under the Plan or, having been so selected,
                  to be selected to receive a future grant; nor shall anything
                  in this Agreement create or confer, or be deemed to create or
                  confer, upon any Employee or other individual any such right.

IN WITNESS WHEREOF, this Agreement is executed effective as of the Date of
Grant.


                                          ASSOCIATES FIRST CAPITAL CORPORATION



                                          By:
                                              ----------------------------------
                                              Michael E. McGill,
                                              Executive Vice President


The undersigned Participant hereby acknowledges receipt of this Agreement and
accepts the Option subject to the applicable terms and conditions set forth
herein and in the Plan.



Participant's Signature:                                      Date:
                        -------------------------------------      -------------


Note: Please sign the Agreement, make a copy for your records, and return the
      original to:

      Compensation Committee
      c/o John W. Lee
      Associates First Capital Corporation
      P.O. Box 660237
      Dallas, TX 75266-0237



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