Document:

SEC Connect

 

Exhibit
10.65

 

CHROMADEX CORPORATION

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

            

This Executive Employment
Agreement (the “Agreement”)
is entered into by and between ChromaDex
Corporation, a Delaware corporation (the “Company”)
and Robert Fried
(the “Executive”),
effective as of the Effective Date (as defined below). The Company
and Executive are hereinafter collectively referred to as the
“Parties”,
and individually referred to as a “Party”.

 

Recitals

 

Whereas,
pursuant to that certain Member Interest Purchase Agreement (the
“Purchase
Agreement”), the Company will purchase one-hundred
percent (100%) of the membership interests of Healthspan Research,
LLC, a Delaware limited liability company (“Healthspan”),
not already owned by the Company from Executive and the other
members of Healthspan (the “Transaction”);

 

Whereas, in
connection with the Transaction, the Company desires to hire
Executive as an employee to provide personal services to the
Company, and wishes to provide Executive with certain compensation
and benefits in return for his services; and

 

Whereas,
Executive desires to be employed by the Company and provide such
services to the Company as an employee in return for certain
compensation and benefits; and

 

Whereas, the
effective date of this Agreement will be the Closing Date as
defined in the Purchase Agreement (the “Effective
Date”).

 

Now,
Therefore, in consideration of the mutual promises and
covenants contained herein, it is hereby agreed by and between the
Parties hereto as follows:

 

Agreement

 

In
consideration of the foregoing Recitals and the mutual promises and
covenants herein contained, and for other good and valuable
consideration, the Parties, intending to be legally bound, agree as
follows:

 

1.

Employment.

 

1.1 Title.
Executive shall be employed as President and Chief Strategy Officer
of the Company, subject to the terms and conditions set forth in
this Agreement. Executive shall report to the Company’s Chief
Executive Officer (the “CEO”). During
the Term (as defined below), Executive will devote his best efforts
and his full business time and attention to the business of the
Company and its subsidiaries, provided, however, that
notwithstanding the foregoing the Executive shall be permitted to
perform outside business, management of personal investments, and
other activities, including without limitation business activities
in the film and entertainment industries and relating to the
Hallmark Feeln streaming video service, to the extent that the
performance of such activities would not materially diminish,
conflict with or negatively impact the performance of Services
hereunder.

 

1.2 Term.
The term of Executive’s employment with the Company shall
commence on the Effective Date and remain in effect until the third
(3rd)
anniversary of the Effective Date, or until such earlier date as it
may be terminated by either Party pursuant to the terms of Section
5 herein (the “Initial
Term”). Unless terminated earlier pursuant to Section
5, this Agreement shall automatically be renewed on the third
anniversary of the Effective Date and each one-year anniversary
thereafter (each a “Renewal Date”)
for an additional term of one year (each, a “Renewal Term”
and together with the Initial Term, the “Term”), unless
terminated by either Party not less than sixty (60) days prior to
the end of the Initial Term or any Renewal Term. Each Renewal Term
is subject to the termination provisions hereof.

 

 

-1-

 

1.3 Duties.
Executive will be the President and Chief Strategy Officer of the
Company and shall perform the following services (the “Services”):
coordinate raising equity and/or debt capital in an amount
sufficient to enable Healthspan to scale its business development,
marketing, and sales; oversight of the Company’s corporate
strategy and the marketing, branding and distribution of
nicotinamide riboside (“NR”) to the
Direct-to-Consumer (“DTC”) market
and such other distribution channels as the Company’s Board
of Directors (the “Board”) or CEO
may assign to Executive with Executive’s prior written
consent; and such other duties as are reasonably assigned to
Executive by the CEO.

 

1.4 Board
Role. Following the Effective Date, Executive shall
initially continue to serve as a director of the Company. Executive
agrees to promptly resign as a director of the Company if properly
terminated for Cause (as defined in Section 5.5.1 of this
Agreement) pursuant to the terms of this Agreement. On or prior to
the Effective Date, Executive shall resign as a member of the
Nominating and Corporate Governance Committee of the
Board.

 

1.5 Policies
and Practices. The employment relationship between the
Parties shall be governed by this Agreement and by the policies and
practices established by the Company for all similarly situated
executive officers. In the event that the terms of this Agreement
differ from or are in conflict with the Company’s policies or
practices, this Agreement shall control.

 

1.6 Location
and Travel. Executive’s principal place of business
for performance of the Services shall be in Los Angeles,
California, provided,
however, that the
Company may from time to time require Executive to travel
temporarily to other locations (domestic and international) in
connection with the Company’s business including the
Company’s executive offices in Irvine, California. In
connection with travel other than travel from the Los Angeles area
to and from the Company’s executive offices in Irvine, which
will be covered by the immediately succeeding sentence, the Company
shall reimburse Executive for all travel related expenses in
accordance with Section 2.4 of this Agreement. In addition, the
Company shall reimburse Executive at the standard mileage rate as
determined by the Internal Revenue Service for all miles driven in
connection with travel from the Los Angeles area to and from the
Company’s executive offices in Irvine, California pursuant to
Section 2.4.

 

1.7 Documentation.
The Company’s obligation to employ Executive pursuant to this
Agreement is conditioned on documentation of Executive’s
authorization to work in the United States.

 

2.

Compensation and Benefits for Executive.

 

2.1 Base
Salary. For services to be rendered hereunder, Executive
shall receive an initial base salary at the rate of $300,000 per
year (the “Base Salary”),
less standard payroll deductions and withholdings and payable in
accordance with the Company’s regular payroll schedule, but
in no event less frequently than monthly. The Base Salary may be
subject to positive adjustments based on the Company’s and
Executive’s performance, at the sole discretion of the
Board.

 

2.2 Annual
Bonus. Commencing
in fiscal year 2017, Executive shall be eligible to earn an annual
bonus as follows:

 

2.2.1 Executive
shall be eligible to earn an annual bonus during each fiscal year
that Executive remains employed by the Company for the entire
fiscal year in accordance with Section 2.2.2. In the case of fiscal
year 2017, Executive will be eligible to earn an annual bonus
provided that Executive is employed by the Company from the
Effective Date through the end of fiscal year 2017. Any such annual
bonus earned shall be paid, less standard payroll deductions and
withholdings, on the same date(s) as annual bonuses are paid to
other Company executives, but in no event shall the annual bonus be
paid later than March 15 of the fiscal year following the fiscal
year for which the annual bonus is payable. Executive does not need
to be employed on the date of payment of the annual bonus in order
to receive any bonus.

 

 

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2.2.2 For
each fiscal year that Executive remains employed by the Company for
the entire fiscal year (or for fiscal year 2017 as provided in the
second sentence of Section 2.2.1 above), the annual bonus shall
equal: (a) 1% of DTC Net
Sales for that fiscal year, as determined based on the
Company’s audited financial statements for that fiscal year;
plus (b) an additional 2% of the DTC Net
Sales for that fiscal year that exceed DTC Net Sales for the prior
fiscal year, as determined based on the Company’s audited
financial statements for each such fiscal year (so, if DTC Net
Sales for the current fiscal year do not exceed DTC Net Sales for
the prior fiscal year, there will be no bonus payable pursuant to
this clause (b)) (the “NR
Threshold”); plus (c) 1% of the Gross Profit of the
Company and its subsidiaries derived from NR Ingredient Sales for
that fiscal year that exceeds such Gross Profit for the prior
fiscal year, as determined based on the Company’s audited
financial statements for each such fiscal year (so, if such Gross
Profit for the current fiscal year does not exceed such Gross
Profit for the prior fiscal year, there will be no bonus payable
pursuant to this clause (c)). For purposes of this Agreement,
“DTC Net
Sales” means all DTC gross sales by Chromadex or any
of its subsidiaries (including Healthspan) of products with NR as a
lead ingredient (“Products”)
less any (1) trade, quantity and cash discounts on Products
actually provided to third parties in connection with arms-length
transactions, (2) credits, allowances or refunds, not to exceed the
original invoice amount, for actual claims, damaged goods,
rejections or returns of Products, (3) actual freight and insurance
costs incurred in transporting Products to such customers, and (4)
excise, sale, use, value added or other taxes. For purposes of this
Agreement, “NR Ingredient
Sales” means (A) sales by the Company and its
subsidiaries of NR to producers of products (“Dietary Supplement
Products”) labeled as “dietary
supplements” that include NR as an ingredient, are taken
orally, and bear or contain a vitamin, a mineral, an herb or other
botanical, an amino acid or a dietary substance to supplement the
product consumer’s diet, less
any (1) trade, quantity and cash discounts on such sales actually
provided to third parties in connection with arms-length
transactions, (2) credits, allowances or refunds, not to exceed the
original invoice amount, for actual claims, damaged goods,
rejections or returns of ingredient for such sales, (3) actual
freight and insurance costs incurred in transporting ingredient to
such customers, and (4) excise, sale, use, value added or other
taxes, plus (B) amounts received by the Company and its
subsidiaries from non-subsidiary entities in which the Company or
any of its subsidiaries has a direct or indirect ownership, equity,
or similar interest based on sales of NR by those non-subsidiary
entities to producers of Dietary Supplement Products pursuant to
contractual agreements between the Company or any of its
subsidiaries and those non-subsidiary entities. For purposes
of this Agreement, “Gross Profit”
means NR Ingredient Sales less the applicable cost of goods
sold.

 

2.2.3 For
the purposes of this Agreement, and notwithstanding the foregoing,
should Executive’s oversight responsibility be expanded to a
new distribution channel for or during any fiscal year, the initial
NR Threshold for that new distribution channel for such fiscal year
shall be equal to Net Sales to that distribution channel in such
fiscal year, as determined based on the Company’s audited
financial statements, and the NR Threshold for subsequent fiscal
years for that distribution channel shall be the Net Sales to such
distribution channel for the prior fiscal year, as determined based
on the Company’s audited financial statements. For purposes
of this Agreement, “Net Sales”
means all gross sales by the Company
or any of its subsidiaries of Products or NR as an ingredient, as
applicable, less any (1) trade, quantity and cash discounts on such
Products or ingredient sales, as applicable, actually provided to
third parties in connection with arms-length transactions, (2)
credits, allowances or refunds, not to exceed the original invoice
amount, for actual claims, damaged goods, rejections or returns of
Products or ingredient, as applicable, (3) actual freight and
insurance costs incurred in transporting Products or ingredient, as
applicable, to such customers, and (4) excise, sale, use, value
added or other taxes.

 

2.3 Equity.

 

2.3.1                      

Stock Options. On the Effective Date,
the Company will grant Executive options (incentive stock options,
to the extent possible pursuant to the terms of the Company’s
Second Amended and Restated 2007 Equity Incentive Plan or any
subsequent equity incentive plan (together, the “Plan”) and
applicable law) (the “Options”) to
purchase 500,000 shares of the Company’s common stock for an
exercise price equal to the fair market value on the date of the
grant. The Options shall vest in equal monthly installments over
three years, subject to Executive’s Continuous Service (as
defined in the Plan) on each such vesting date.

 

 

 

 

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2.3.2 

Restricted Stock.

 

2.3.2.1 On the Effective Date, the
Company will grant Executive 166,667 shares of restricted common
stock of the Company, which shares shall vest in equal annual
installments over three years, subject to Executive’s
Continuous Service on each vesting date.

 

2.3.2.2 Subject to requisite stockholder
approval, on the one-year anniversary of the Effective Date, the
Company will grant Executive 166,667 shares of restricted common
stock of the Company (subject to Executive’s Continuous
Service as an employee or consultant of the Company or any of its
subsidiaries through such grant date), which shares shall vest in
equal annual installments over two years, subject to
Executive’s Continuous Service on each vesting date. The
Company will use its reasonable efforts to obtain requisite
stockholder approval of such grant.

 

2.3.2.3 Subject to requisite stockholder
approval, on the two-year anniversary of the Effective Date, the
Company will grant Executive 166,666 shares of restricted common
stock of the Company (subject to Executive’s Continuous
Service as an employee or consultant of the Company or any of its
subsidiaries through such grant date), which shares shall vest
completely on the one year anniversary of such grant date, subject
to Executive’s Continuous Service on such vesting date. The
Company will use its reasonable efforts to obtain requisite
stockholder approval of such grant.

 

2.3.3                      

Accelerated Vesting of Equity. Upon the
occurrence of any of (a) a Change of Control (as defined in the
Plan), (b) Executive’s death, (c) Executive’s
Disability (as defined below), (d) termination by the Company of
the Executive’s employment without Cause or (e) resignation
by the Executive of his employment for Good Reason, and subject in
each case to the Executive’s Continuous Service as an
employee or consultant of the Company or any of its subsidiaries
through such event, all of the unvested Options and shares of such
restricted stock granted pursuant to Sections 2.3.1, 2.3.2.1,
2.3.2.2 and 2.3.2.3, as applicable, will vest
immediately.

 

2.3.4                      

Performance Stock. Subject to requisite
stockholder approval, the Executive will be granted up to 500,000
fully-vested shares of restricted common stock of the Company, upon
the achievement of and subject to the performance goals detailed on
Exhibit A, subject to
Executive’s Continuous Service as an employee or consultant
of the Company or any of its subsidiaries on such grant
dates.

 

2.3.5                      

Additional Equity. Executive shall be
eligible for additional equity grants in amounts commensurate with
Executive’s senior level position with the Company, at the
same times as equity is granted to other senior level executives of
the Company, in the discretion of the Board.

 

2.3.6                      

Tax Matters Related to Restricted Stock and
Options. Withholding for any taxes which arise in connection
with the Options or the shares of restricted common stock of the
Company granted to Executive pursuant to this Agreement shall be
governed in accordance with the applicable stock option agreement
for the Options or restricted stock award agreement for such
restricted stock.

 

2.4 General
Expense Reimbursements. The Company will promptly reimburse
Executive for all reasonable business expenses Executive incurs in
performing Services hereunder pursuant to the Company’s usual
expense reimbursement policies and practices, following submission
by Executive of reasonable documentation thereof.

 

2.5 Benefits.
Executive shall, in accordance with Company policy and the terms
and conditions of the applicable Company benefit plan documents, be
eligible for participation in and shall be covered by any and all
medical, dental, life and other voluntary insurance plans,
retirement and profit sharing plans, and such other benefits
generally available to other employees of the Company in similar
employment positions, on the same terms as such employees, subject
to eligibility requirements. Any such benefits shall be subject to
the terms and conditions of the governing benefit plans and
policies and may be changed by the Company in its discretion,
provided, however, that any such benefit plan or policy change that
materially and adversely affects Executive disproportionately and
specifically compared to other similarly situated executives of the
Company shall require the written consent of Executive. Executive
shall be entitled to 4 weeks of vacation per calendar
year.

 

 

-4-

 

2.6 Directors
and Officers Insurance. The Company shall procure directors
and officers insurance with coverage of not less than $5 million,
and shall maintain such insurance in full force and effect during
the Term of this Agreement and for a period of seven years
thereafter.

 

3.

Proprietary Information Obligations.

 

3.1 Proprietary
Information Agreement. As a condition of employment,
Executive agrees to execute and abide by the Company’s
current form of Employee Confidential Information and Invention
Assignment Agreement (“Inventions
Assignment Agreement”).

 

3.2           

Third Party Agreements and Information.
Executive hereby confirms that Executive’s employment by the
Company does not and will not conflict with any prior agreement
with any third party, and that Executive will perform the Services
in a manner that does not violate any such agreement. By entering
into this Agreement, Executive represents that he has previously
disclosed to the Company any agreement that he has signed that may
restrict his activities on behalf of the Company in any manner.
Executive represents and warrants that, except as gained in
connection with Healthspan, Executive does not possess confidential
or proprietary information arising out of prior employment,
consulting, or other third party relationships, which would be used
in connection with Executive’s employment by the Company,
except as expressly authorized by such third party. During
Executive’s employment by the Company, Executive will be
expected not to make any unauthorized use or disclosure of any
information or materials, including trade secrets, of any former
employer or other third party (excluding Healthspan). Executive
shall use, in the performance of the Services, only information
generally known and used by persons with training and experience
comparable to his own, which is common knowledge in the industry or
otherwise legally in the public domain, or which is otherwise
provided or developed by the Company or obtained or developed by
Executive on behalf of the Company.

 

4.

Outside Activities During Employment.

 

4.1           

Outside Activities. Executive agrees not
to acquire, assume or participate in, directly or indirectly, any
position, investment or interest known by him to be adverse or
antagonistic to the Company, its business or prospects, financial
or otherwise during the Term of Executive’s employment with
the Company. Except with the prior
written consent of the Board, Executive will not during the Term of
this Agreement undertake or engage in any other employment,
occupation or business enterprise, provided, however, that
notwithstanding the foregoing the Executive shall be permitted to
perform outside business, management of personal investments, and
other activities, including without limitation business activities
in the film and entertainment
industries and relating to the Hallmark Feeln streaming video
service, to the extent that the performance of such activities
would not materially diminish, conflict with or negatively impact
the performance of Services hereunder.

 

4.2           

Duty of Loyalty During
Employment. During the Term of
his employment with the Company, except on behalf of the Company or
Healthspan, Executive will not directly or indirectly, whether as
an officer, director, stockholder, partner, proprietor, associate,
representative, employee, consultant, debtholder or in any capacity
whatsoever engage in, become financially interested in, participate
in, be employed by or have any business connection with any other
person, corporation, firm, partnership or other entity whatsoever
which competes with the Company, anywhere throughout the world, in
any line of business engaged in (or which the Company has publicly
announced that it plans to be engaged in) by the Company
other than de minimis stock holdings in public
companies.

 

5.

At-Will Employment; Termination of Employment.

 

5.1 At-Will
Employment. Executive’s employment relationship with
the Company is employment at-will and may be terminated by the
Company or by Executive at any time and for any reason during the
Term. At the time of termination, Executive will receive (a) all
accrued base salary, and all accrued and unused paid time off,
through the termination date, and (b) any annual bonus amount
earned during the completed fiscal year preceding the year in which
Executive’s employment termination occurred, but not yet paid
as of the termination date (the “Accrued
Benefits”).

 

 

-5-

 

5.2 Severance
Benefits for Qualifying Termination. If, prior to the
expiration of the Term of this Agreement, (a) Executive’s
employment is terminated by the Company without Cause, for death or
Disability, or Executive resigns his employment for Good Reason, or
(b) (i) a Change of Control occurs and (ii) within one month prior
to the date of such Change of Control or twelve months after the
date of such Change in Control Executive’s employment is
terminated by the Company other than for Cause, and (c) Executive
satisfies the Release Requirement, then Executive will receive the
following “Severance
Benefits” as set forth in this Section
5.2.

 

5.2.1                      Severance
Payments. Executive will receive severance pay in the form
of continuation of Executive’s then-current base salary at
the time of Executive’s termination for a period of twelve
(12) months, less standard payroll deductions and withholdings (the
“Severance
Payments”), to be paid on the Company’s regular
payroll schedule in effect following Executive’s employment
termination date; provided, however that the Company shall not be
required to make any payments before the Release Effective
Date.

 

5.2.2                      

Health Care Continuation Coverage
Payments. If Executive timely elects continued coverage
under COBRA, the Company will pay Executive’s COBRA premiums
to continue Executive’s coverage (including coverage for
Executive’s eligible dependents, if applicable)
(“COBRA
Premiums”) through the period starting on the
employment termination date and ending twelve (12) months after the
employment termination date (the “COBRA Premium
Period”); provided, however,
that the Company’s provision of such COBRA Premium benefits
will immediately cease if during the COBRA Premium Period Executive
becomes eligible for group health insurance coverage through a new
employer or Executive ceases to be eligible for COBRA continuation
coverage for any reason, including plan termination. In the event
Executive becomes covered under another employer's group health
plan or otherwise ceases to be eligible for COBRA during the COBRA
Premium Period, Executive must promptly notify the Company of such
event. Notwithstanding the foregoing, if the Company determines, in
its sole discretion, that it cannot pay the COBRA Premiums without
potentially incurring financial costs or penalties under applicable
law (including, without limitation, Section 2716 of the Public
Health Service Act), regardless of whether Executive or
Executive’s dependents elect or are eligible for COBRA
coverage, the Company instead shall pay to Executive, on the first
day of each calendar month following the termination date, a fully
taxable cash payment equal to the applicable COBRA premiums for
that month (including the amount of COBRA premiums for
Executive’s eligible dependents), subject to applicable tax
withholdings (such amount, the “Special Cash
Payment”), for the remainder of the COBRA Premium
Period. Executive may, but is not obligated to, use such Special
Cash Payments toward the cost of COBRA premiums.

 

5.2.3                      

Prorated Bonus. Executive will receive
the prorated portion of Executive’s annual bonus, less
standard payroll deductions and withholdings, earned for the fiscal
year in which such termination or resignation occurs. Such bonus
amount shall be calculated pursuant to Section 2.2 and prorated for
the number of days Executive worked during such fiscal year, and
paid at the same time as annual bonuses for such fiscal year are
paid to other senior executives of the Company, but in no event
shall the annual bonus be paid later than March 15 of the fiscal
year following the fiscal year for which the annual bonus is
payable.

 

5.2.4                      

Extended Exercise Period for Stock
Options. With respect to any stock option grants, including
the Options, that are awarded to Executive on or after the
Effective Date, such equity awards shall, to the extent vested as
of the employment termination date, remain exercisable until the
earlier of: (a) twelve (12) months following Executive’s
employment termination date (or, such longer period as provided in
the Plan in the event of Executive’s death), (b) the
expiration of such awards’ original maximum term, or (c)
termination of such equity awards under the terms of the
Company’s equity plan in connection with a dissolution or
liquidation of the Company, a Corporate Transaction or a Change of
Control (as such terms are defined in the Plan).

 

5.3           

Release Requirement. To be eligible for
the Severance Benefits pursuant to Section 5.2 above, Executive
must satisfy the following release requirement (the
“Release
Requirement”): return to the Company a signed and
dated general release of all known and unknown claims in a
termination agreement acceptable to the Company (the
“Release”)
within the applicable deadline set forth therein, but in no event
later than forty-five (45) calendar days following
Executive’s employment termination date, and permit the
Release to become effective and irrevocable in accordance with its
terms (such effective date of the Release, the “Release Effective
Date”). No
Severance Benefits will be paid hereunder prior to such Release
Effective Date.

 

 

 

 

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5.4          

Unvested Equity. Except to the extent
set forth in Section 2.3.3, at the time of termination of
Executive’s Continuous Service, all unvested equity (whether
options, restricted stock or otherwise) will lapse and become
forfeited by Executive.

 

5.5           

Definitions.

 

5.5.1                      

Cause. For the purposes of this
Agreement, “Cause” means
the occurrence of any one or more of the following: (a)
Executive’s conviction of or plea of guilty or nolo contendere to any felony (other
than traffic violations); (b) Executive’s consistent failure
or refusal to follow lawful and reasonable written instructions of
the CEO or lawful and reasonable policies and regulations of the
Company or its affiliates; (c) Executive’s consistent failure
to faithfully and diligently perform material assigned duties of
Executive’s employment with the Company or its affiliates
that is substantially detrimental to the business or reputation of
the Company; (d) fraudulent conduct by Executive in connection with
the performance of Executive's duties for the Company or its
affiliates; (e) conduct by Executive that materially discredits or
that causes material harm to the Company or any affiliate or that
is materially detrimental to the reputation, character and standing
of the Company or any affiliate; or (f) Executive’s material
breach of this Agreement, the Inventions Assignment Agreement, or
any applicable Company policies. An event described in clauses (b)
through (f) shall not be treated as “Cause” until after
Executive has been given written notice of such event, failure,
conduct or breach, with specific details supporting such a
determination, and Executive fails to cure such event, failure,
conduct or breach within 30 days from such written notice;
provided, however, that such 30-day cure period shall not be
required if the event, failure, conduct or breach is incapable of
being cured.

 

5.5.2                      

Change of Control. For the purposes of
this Agreement, “Change of
Control” shall have the meaning described in the
Plan.

 

5.5.3                      

Disability. For purposes of this
Agreement, “Disability”
means that Executive is unable to perform the essential functions
of his position (notwithstanding the provision of any reasonable
accommodation) by reason of any medically determinable physical or
mental impairment which has lasted or can reasonably be expected to
last for a period of ninety (90) or more consecutive days or one
hundred and twenty (120) days during any consecutive six (6) month
period, as determined by a physician to be selected by the Company
in good faith and reasonably acceptable to Executive.

 

5.5.4                      

Good Reason. For purposes of this
Agreement, Executive shall have “Good Reason” for resignation from
employment with the Company if any of the following actions are
taken by the Company without Executive’s prior written
consent: (a) a material reduction in Executive’s Base Salary,
unless pursuant to a salary reduction program applicable generally
to the Company’s senior executives; (b) a material reduction
in Executive’s duties (including responsibilities and/or
authorities) or reporting structure, provided,
however, that a
change in job position (including a change in title) shall not be
deemed a “material reduction” in and of itself unless
Executive’s new duties are materially reduced from the prior
duties; or (c) relocation of Executive’s principal place of
employment to a place that increases Executive’s one-way
commute by more than thirty (30) miles as compared to
Executive’s then-current principal place of employment
immediately prior to such relocation, unless Executive requests or
agrees in writing to such relocation. An event described in clauses
(a) through (c) shall not be treated as “Good Reason”
until after the Company has been given written notice of such
event, failure, conduct, or breach, with specific details
supporting such a determination, the Company fails to cure such
event, failure, conduct, or breach within 30 days from such written
notice (unless such event, failure, conduct, or breach is incapable
of being cured, in which case the 30-day cure period shall not be
required), and the Executive resigns from all positions Executive
then holds with the Company not later than 30 days after the
expiration of the cure period (or 30 days from the date of the
Executive’s notice if the applicable event, failure, conduct
or breach is incapable of being cured).

 

5.6           

Termination for Cause or Resignation Without
Good Reason. Except for Accrued Benefits and any other
benefits required by applicable law, Executive will not be eligible
for, or entitled to any severance benefits, including (without
limitation) the Severance Benefits listed in Section 5.2, if the
Company terminates Executive’s employment for Cause or
Executive resigns Executive’s employment without Good Reason
at any time. Similarly, Executive will not be eligible for any
severance benefits if the Executive’s employment is
terminated as the result of the expiration of the Term. In
addition, if Executive materially breaches any continuing
obligations to the Company or its affiliates (including but not
limited to any material breach of this Agreement, any material
breach of the Inventions Assignment Agreement, or material breach
of Section 5.4(a) or Section 5.4(b)
of the Purchase Agreement) during the period of time that
Executive is receiving any Severance Benefits, Executive will
forfeit Executive’s entitlement to any then unpaid Severance
Benefits, and the Company’s obligation to continue to pay or
provide such Severance Benefits will immediately terminate as of
the date of Executive’s material breach.

 

 

 

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6.

Section 409A.

 

All
payments provided hereunder are intended to constitute separate
payments for purposes of Treasury Regulation Section
1.409A-2(b)(2). If the Company determines that any benefits
provided under this Agreement constitute “deferred
compensation” under Section 409A of the Internal Revenue Code
of 1986 as amended (“Section
409A”), such benefits will not commence in connection
with Executive’s termination of employment unless such
termination also qualifies as a “separation from
service” with the Company within the meaning of Treasury
Regulation Section 1.409A-1(h) (without regard to any permissible
alternative definition thereunder) (“Separation from
Service”). If the Company determines that any benefits
provided under this Agreement constitute “deferred
compensation” under Section 409A and Executive is a
“specified employee” of the Company or any affiliate
thereof (or any successor entity thereto) within the meaning of
Section 409A(a)(2)(B)(i) of the Code on the date of the Separation
from Service, then the payment of any such benefits shall be
delayed until the earlier of: (a) the date that is six (6) months
and one (1) day after the date of Executive’s Separation from
Service, or (b) the date of Executive’s death (such date, the
“Delayed
Payment Date”), and the Company (or the successor
entity thereto, as applicable) shall (i) pay to Executive a lump
sum amount equal to the sum of the benefit payments that otherwise
would have been paid to Executive on or before the Delayed Payment
Date, without any adjustment on account of such delay, and (ii)
continue the benefit payments in accordance with any applicable
payment schedules set forth for the balance of the period specified
herein. In addition to the above, to the extent required to comply
with Section 409A and the applicable regulations and guidance
issued thereunder, if the applicable deadline for Executive to
execute (and not revoke) the applicable Release spans two calendar
years, Executive’s Severance Benefits shall commence to be
paid in installments on the first regularly scheduled payroll date
that occurs in the second calendar year. To the extent that any
reimbursement, fringe benefit or other similar plan or arrangement
in which the Executive participates during the term of
Executive’s employment under this Agreement or thereafter
provides for a “deferral of compensation” within the
meaning of Section 409A of the Code, (i) the amount eligible for
reimbursement or payment under such plan or arrangement in one
calendar year may not affect the amount eligible for reimbursement
or payment in any other calendar year (except that a plan providing
medical or health benefits may impose a generally applicable limit
on the amount that may be reimbursed or paid), and (ii) subject to
any shorter time periods provided herein or the applicable plans or
arrangements, any reimbursement or payment of an expense under such
plan or arrangement must be made on or before the last day of the
calendar year following the calendar year in which the expense was
incurred.

 

7.

Section 280G; Limitations on Payment

 

7.1           

If any payment or
benefit Executive will or may receive from the Company or otherwise
(a “280G
Payment”) would (a) constitute a “parachute
payment” within the meaning of Section 280G of the Code, and
(b) but for this sentence, be subject to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”),
then any such 280G Payment provided pursuant to this Agreement (a
“Payment”)
shall be equal to the Reduced Amount. The “Reduced
Amount” shall be either (x) the largest portion
of the Payment that would result in no portion of the Payment
(after reduction) being subject to the Excise Tax or (y) the
largest portion, up to and including the total, of the Payment,
whichever amount (i.e., the amount determined by clause (x) or by
clause (y)), after taking into account all applicable federal,
state and local employment taxes, income taxes, and the Excise Tax
(all computed at the highest applicable marginal rate), results in
Executive’s receipt, on an after-tax basis, of the greater
economic benefit notwithstanding that all or some portion of the
Payment may be subject to the Excise Tax. If a reduction in a
Payment is required pursuant to the preceding sentence and the
Reduced Amount is determined pursuant to clause (x) of the
preceding sentence, the reduction shall occur in the manner (the
“Reduction
Method”) that results in the greatest economic benefit
for Executive. If more than one method of reduction will result in
the same economic benefit, the items so reduced will be reduced pro
rata (the “Pro Rata Reduction
Method”).

 

 

 

 

-8-

 

           

7.2          

Notwithstanding any
provision of Section 7.1 to the contrary, if the Reduction
Method or the Pro Rata Reduction Method would result in any portion
of the Payment being subject to taxes pursuant to Section 409A that
would not otherwise be subject to taxes pursuant to Section 409A,
then the Reduction Method and/or the Pro Rata Reduction Method, as
the case may be, shall be modified so as to avoid the imposition of
taxes pursuant to Section 409A as follows: (A) as a first
priority, the modification shall preserve to the greatest extent
possible, the greatest economic benefit for Executive as determined
on an after-tax basis; (B) as a second priority, Payments that
are contingent on future events (e.g., being terminated without Cause),
shall be reduced (or eliminated) before Payments that are not
contingent on future events; and (C) as a third priority,
Payments that are “deferred compensation” within the
meaning of Section 409A shall be reduced (or eliminated) before
Payments that are not deferred compensation within the meaning of
Section 409A.

 

7.3           

Unless Executive
and the Company agree on an alternative accounting firm or law
firm, the accounting firm engaged by the Company for general tax
compliance purposes as of the day prior to the effective date of
the Change of Control transaction shall perform the foregoing
calculations. If the accounting firm so engaged by the Company is
serving as accountant or auditor for the individual, entity or
group effecting the Change of Control transaction, the Company
shall appoint a nationally recognized accounting or law firm to
make the determinations required by this Section 7. The Company
shall bear all expenses with respect to the determinations by such
accounting or law firm required to be made hereunder. The Company shall use commercially reasonable
efforts to cause the accounting or law firm engaged to make the
determinations hereunder to provide its calculations, together with
detailed supporting documentation, to Executive and the Company within fifteen (15) calendar days
after the date on which Executive’s right to a 280G Payment becomes reasonably likely
to occur (if requested at that time by Executive
or the Company) or such other time as
requested by Executive or the
Company.

 

7.4           

If Executive
receives a Payment for which the Reduced Amount was determined
pursuant to clause (x) of Section 7.1 and the Internal Revenue
Service determines thereafter that some portion of the Payment is
subject to the Excise Tax, Executive agrees to promptly return to
the Company a sufficient amount of the Payment (after reduction
pursuant to clause (x) of Section 7.1) so that no portion of the
remaining Payment is subject to the Excise Tax. For the avoidance
of doubt, if the Reduced Amount was determined pursuant to clause
(y) of Section 7.1, Executive shall have no obligation to return
any portion of the Payment pursuant to the preceding
sentence.

 

8.

Assignment and Binding Effect.

 

This
Agreement shall be binding upon and inure to the benefit of
Executive and Executive’s heirs, executors, personal
representatives, assigns, administrators and legal representatives.
Because of the unique and personal nature of Executive’s
duties under this Agreement, neither this Agreement nor any rights
or obligations under this Agreement shall be assignable by
Executive. This Agreement shall be binding upon and inure to the
benefit of the Company and its successors, assigns and legal
representatives. Any such successor or assign of the Company will
be deemed substituted for the Company under the terms of this
Agreement for all purposes. For this purpose,
“successor” means any person, firm, corporation or
other business entity which at any time, whether by purchase,
merger or otherwise, directly or indirectly acquires all or
substantially all of the assets or business of the
Company.

 

9.

Choice of Law.

 

This Agreement shall be construed and interpreted
in accordance with the internal laws of the State of California
without regard to its conflict of laws principles.
 

 

10.

Integration.

 

This
Agreement, including Exhibit A and each document referred to or
described herein, the Purchase Agreement, with respect to Section
5.4(a) and Section 5.4(b) therein only, the Inventions Assignment
Agreement, and the Indemnification Agreement contain the complete,
final and exclusive agreement of the Parties relating to the terms
and conditions of Executive’s employment and the termination
of Executive’s employment, and supersede all prior and
contemporaneous oral and written employment agreements or
arrangements between the Parties.

 

 

 

-9-

 

11.

Amendment.

 

This
Agreement cannot be amended or modified except by a written
agreement signed by Executive and the Company.

 

12.

Waiver.

 

No
term, covenant or condition of this Agreement or any breach thereof
shall be deemed waived, except with the written consent of the
Party against whom the wavier is claimed, and any waiver or any
such term, covenant, condition or breach shall not be deemed to be
a waiver of any preceding or succeeding breach of the same or any
other term, covenant, condition or breach.

 

13.

Severability.

 

The
finding by a court of competent jurisdiction of the
unenforceability, invalidity or illegality of any provision of this
Agreement shall not render any other provision of this Agreement
unenforceable, invalid or illegal. Such court shall have the
authority to modify or replace the invalid or unenforceable term or
provision with a valid and enforceable term or provision, which
most accurately represents the Parties’ intention with
respect to the invalid or unenforceable term, or
provision.

 

14.

Interpretation; Construction.

 

The
headings set forth in this Agreement are for convenience of
reference only and shall not be used in interpreting this
Agreement. This Agreement has been drafted by legal counsel
representing the Company, but the Executive has been encouraged to
consult with, and has consulted with, Executive’s own
independent counsel and tax advisors with respect to the terms of
this Agreement. The Parties acknowledge that each Party and its
counsel has reviewed and revised, or had an opportunity to review
and revise, this Agreement, and any rule of construction to the
effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of this
Agreement.

 

15.

Counterparts.

 

This
Agreement may be executed in two counterparts, each of which shall
be deemed an original, all of which together shall contribute one
and the same instrument.

 

16.

Notices.

 

Any
and all notices, demands, requests, or other communications
hereunder shall be in writing and shall be deemed duly given when
personally delivered to or transmitted by overnight express
delivery to and received by the Party to whom such notice is
intended thereof, or in lieu of such personal delivery or overnight
express delivery, upon receipt when deposited in the United States
mail, first-class, certified or registered, postage prepaid, return
receipt requested, addressed to the applicable Party at the address
set forth below such Party’s signature to this Agreement
(which may be omitted in any public filing). Any Party may change
its respective address for the purposes of this Section 16 by
giving notice of such change to the other Party in the manner
provided in this Section 16.

 

 

 

-10-

 

17.

Arbitration.

 

To ensure the rapid and economical resolution of disputes that may
arise in connection with Executive’s employment with the
Company, Executive and the Company both agree that any and all
disputes, claims, or causes of action, in law or equity, including
but not limited to statutory claims, arising from or relating to
the enforcement, breach, performance, or interpretation of this
Agreement, Executive’s employment with the Company, or the
termination of Executive’s employment with the Company, will
be resolved pursuant to the Federal Arbitration Act, 9 U.S.C.
§1-16, and to the fullest extent permitted by law, by final,
binding and confidential arbitration conducted in Irvine,
California by JAMS, Inc. (“JAMS”) or its
successors by a single arbitrator. Both Executive and the
Company acknowledge that by agreeing to this arbitration procedure,
both waive the right to resolve any such dispute through a trial by
jury or judge. Any such arbitration proceeding will be
governed by JAMS’ then applicable rules and procedures for
employment disputes, which will be provided to Executive upon
request. In any such proceeding, the arbitrator shall: (a) have the
authority to compel adequate discovery for the resolution of the
dispute and to award such relief as would otherwise be permitted by
law; and (b) issue a written arbitration decision including the
arbitrator’s essential findings and conclusions and a
statement of the award. Executive and the Company each shall be
entitled to all rights and remedies that either would be entitled
to pursue in a court of law. Nothing in this Agreement is intended
to prevent either the Company or Executive from obtaining
injunctive relief in court to prevent irreparable harm pending the
conclusion of any such arbitration pursuant to applicable law.
Similarly, nothing in this Agreement is intended to restrict the
Executive from filing a complaint with the Equal Employment
Opportunity Commission or comparable government agency. The Company
shall pay all filing fees in excess of those which would be
required if the dispute were decided in a court of law, and shall
pay the arbitrator’s fees and any other fees or costs unique
to arbitration. Any awards or orders in such arbitrations may be
entered and enforced as judgments in the federal and state courts
of any competent jurisdiction.

 

 

 

 

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

 

-11-

 

In
Witness Whereof, the Parties
have executed this Agreement as of the dates written
below.

 

ChromaDex Corporation

 

 

 

	
 By: /s/
Frank L. Jaksch Jr.

	
 

	
 Its: Chief Executive
Officer

	
 

	
 Dated: March 12, 2017

	
 

	
 

	
 

	
 

	
 

	
 Executive:

	
 

	
 

	
 

	
 

	
 

	
 /s/
Robert Fried

	
 

	
 Robert
Fried

	
 

	
 Dated: March 12, 2017

	
 

 

 

 

 

-12-

 

EXHIBIT A

 

Performance Goals(1)(2)

 

	

Performance
Goal

	

Number of fully-vested
shares of restricted common stock of ChromaDex to be granted to
Executive based upon achievement of such Performance
Goal

	
1. Net Sales to all
distribution channels from and after the Effective Date exceeds Net
Sales to all distribution channels in fiscal year 2016 by not less
than $10,000,000

 

	

166,667

	
2. Net Sales to all
distribution channels from and after the Effective Date exceeds Net
Sales to all distribution channels in fiscal year 2016 by not less
than $20,000,000

 

	

166,667

	
3. Net Sales to all
distribution channels from and after the Effective Date exceeds Net
Sales to all distribution channels in fiscal year 2016 by not less
than $30,000,000

 

	

166,666

TOTAL:    

500,000
shares

 

(1) All determinations of Net Sales for purposes of
determining whether any of the Performance Goals have been achieved
shall be based on the Company’s audited financial statements
for the applicable fiscal years.

 

(2) Each Performance Goal may be achieved only
once.

 

 

 

 

A-1Exhibit 10.41

 

CIT Group Inc.

Long-Term Incentive Plan

Performance Share Unit Award Agreement (PSU-ROTCE EA)

	“Participant”:	<<Participant Name>>
	“Date of Award”:	<<Grant Date>>
	“Target Number of PSUs Granted”:	<<Shares Granted>>

 

Effective as of the Date of Award, this
Award Agreement sets forth the grant of performance-based Restricted Stock Units (“Performance Share Units”
or PSUs”) by CIT Group Inc., a Delaware corporation (the “Company”), to the Participant, pursuant
to the provisions of the Amended and Restated CIT Group Inc. Long-Term Incentive Plan (the “Plan”). This Award
Agreement memorializes the terms and conditions as approved by the Compensation Committee of the Board (the “Committee”).
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:

		(A)	Grant of Performance Share Units.
The Company hereby grants to the Participant the Target Number of PSUs Granted, effective as of the Date of Award and subject to
the terms and conditions of the Plan and this Award Agreement. Each PSU represents the unsecured right to receive a number of Shares,
if any, in accordance with the terms and conditions of this Award Agreement. The Participant shall not be required to pay any additional
consideration for the issuance of the Shares, if any, upon settlement of the PSUs.

		(B)	Vesting and Settlement of PSUs.

		(1)	Except as otherwise provided in Section (C)
or (D) below, the final number of Shares actually awarded to the Participant with respect to the Target Number of PSUs granted,
if any, (the “Awarded Shares”) shall be based on the attainment of specified levels of the “Performance
Measures” (each as defined and set forth in Exhibit A) that have been achieved during the “Performance
Period” (as defined and set forth in Exhibit A).

		(2)	Except as otherwise provided in Section (C)
or (D) below, subject to the Participant’s continued employment with the Company and/or its Affiliates (the “Company
Group”) from the Date of Award until the last day of the Performance Period (the “Final Performance Date”)
and compliance with, and subject to, the terms and conditions of this Award Agreement, as soon as administratively practicable
following the Final Performance Date but subject to Section (B)(3) below, the Committee shall certify the level of Performance
Measures attained (the “Determination Date”). The Participant’s Awarded Shares, if any, shall be determined
as of the Determination Date in accordance with the terms and conditions set forth in Exhibit A.

		(3)	Except as otherwise provided in Section (C)(1),
(C)(2) or (D) below, the Awarded Shares, if any, shall be delivered to the Participant within thirty (30) days following the Determination
Date, but in no event later than March 15, 2019 (the “Settlement Date”), provided that the Settlement Date may
be delayed, in the sole discretion of the Committee and in accordance with applicable law (including Section 409A (as defined below)),
if the Committee is considering whether Section (L) applies to the Participant.

		(4)	The Awarded Shares delivered to the Participant
on the Settlement Date (or such other date Awarded Shares are settled in accordance with Section (C)(1), (C)(2) or (D) below, if
applicable) shall not be subject to transfer restrictions and shall be fully paid, non-assessable and registered in the Participant’s
name.

		(5)	If, after the Date of Award and prior to the
Determination Date (or such other date Awarded Shares are settled in accordance with Section (C)(1), (C)(2) or (D) below, if applicable)
(the “Dividend Equivalent Period”), dividends with respect to the Awarded Shares are declared or paid by the
Company, the Participant shall be credited with, and entitled to receive, dividend equivalents in an amount, without interest,
equal to the cumulative dividends declared or paid on a Share, if any, during the Dividend Equivalent Period, multiplied by the
number of Awarded Shares. Unless otherwise determined by the Committee, dividend equivalents paid in cash shall not be reinvested
in Shares and shall remain uninvested. The dividend equivalents credited in respect of the Awarded Shares shall be paid in cash
or Shares, as applicable, on the Settlement Date (or such other date Awarded Shares are settled in accordance with Section (C)(1),
(C)(2) or (D) below, if applicable).

		(6)	In the sole discretion of the Committee and
notwithstanding any other provision of this Award Agreement to the contrary, in lieu of the delivery of the Awarded Shares, the
PSUs and any dividend equivalents payable in Shares, may be settled through a payment in cash equal to the Fair Market Value of
the applicable number of the Awarded Shares, determined on (i) the Determination Date; (ii) the Final Performance Date if settlement
is in accordance with Section (C)(2), (D)(1), (D)(2), or (D)(3) below; or (iii) in the case of settlement in accordance with Section
(C)(1) or (D)(4) below, the date of the Participant’s “Separation from Service” (within the meaning of
the Committee’s

    
	2x16ROTCE (EA)		 

    	 

    

established methodology for determining
“Separation from Service” for purposes of Section 409A (as defined below)) or the date of Disability, as applicable.
Settlement under this Section (B)(6) shall be made at the time specified under Section (B)(3), (B)(5), (C)(2), (C)(3) or (D), as
applicable.

		(C)	Separation from Service.

		(1)	Notwithstanding Section (B) above, if, after
the Date of Award and prior to the Final Performance Date, the Participant incurs a Disability (as defined below) or a Separation
from Service from the Company Group due to death, the PSUs shall vest immediately and the final number of Awarded Shares awarded
to the Participant shall equal the Target Number of PSUs (the “Target Awarded Shares”) and the Participant (or
the Participant’s beneficiary or legal representative, if applicable) shall not be entitled to any additional Shares based
on the Company’s achievement of actual Performance Measures in accordance with Exhibit A. If this Section (C)(1) is
applicable, then all references to “Awarded Shares” in Sections (B) and (L) shall mean Target Awarded Shares instead.
The Target Awarded Shares shall be paid to the Participant (or the Participant’s beneficiary or legal representative, if
applicable) within thirty (30) days following the Participant’s Disability or Separation from Service due to death. The Participant
(or the Participant’s beneficiary or legal representative, if applicable) shall also be entitled to receive all credited
and unpaid dividend equivalents with respect to the Target Awarded Shares and such dividend equivalents shall be payable at the
same time such Target Awarded Shares are paid in accordance with this Section (C)(1). “Disability” shall have
the same meaning as defined in the Company’s applicable long-term disability plan or policy last in effect prior to the first
date the Participant suffers from such Disability; provided, however, to the extent a “Disability” event
does not also constitute a “Disability” as defined in Section 409A, such Disability event shall not constitute a Disability
for purposes of this Section (C)(1).

		(2)	Notwithstanding Section (B) above and subject
to Section (D)(4) below, if prior to the Final Performance Date, the Participant incurs a Separation from Service from the Company
Group described in Section 5(a) or 5(d) of the Participant’s employment agreement with the Company, as amended on January
16, 2015 and as amended further from time to time (the “Employment Agreement”), the PSUs shall vest immediately
on such Separation of Service and the final number of Awarded Shares awarded to the Participant shall be the Target Awarded Shares
and the Participant shall not be entitled to any additional Shares based on the Company’s achievement of actual Performance
Measures in accordance with Exhibit A. The Target Awarded Shares (and any credited and unpaid dividend equivalents) shall
be delivered to the Participant (or the Participant’s legal representative, if applicable) following the Final Performance
Date, as determined by the Committee in its sole discretion, but in no event later than March 15, 2019, subject to the Participant’s
compliance with the obligations referenced in Section (L)(2) below. If this Section (C)(2) is applicable, then all references to
“Awarded Shares” in Sections (B) and (L) shall mean Target Awarded Shares instead.

		(3)	Notwithstanding Section (B) above and subject
to Section (D) below, if, prior to the Final Performance Date, the Participant incurs a Separation from Service due to the Participant’s
Retirement (as defined below) and subject to the terms and conditions of the Plan and this Award Agreement, including Section (L)
below, the final number of Awarded Shares, if any, payable to the Participant (and any credited and unpaid dividend equivalents)
shall be made in accordance with Section (B) above and Exhibit A, except the Participant shall no longer be required to
be continually employed with the Company Group until the Final Performance Date as provided in Section (B)(2) above. 

		(4)	“Retirement” is defined
as the Participant’s election to retire upon or after (A) attaining age 55 with at least 11 years of service with the Company
Group or (B) attaining age 60 with at least 6 years of service with the Company Group, in each case as determined in accordance
with the Company Group’s policies and procedures. 

		(5)	If, prior to the Final Performance Date, the
Participant’s employment with the Company Group terminates for any reason, except to the extent provided for in this Section
(C) or Section (D) below, the unvested PSUs shall be cancelled immediately and the Participant shall immediately forfeit any rights
to, and shall not be entitled to receive any payments with respect to, the PSUs including, without limitation, dividend equivalents
pursuant to Section (B)(5).

		(D)	Change of Control. 

		(1)	Notwithstanding Section (B) above and subject to Sections (D)(2) through (D)(4) below, if, during
the Participant’s employment with the Company Group but prior to the Final Performance Date, a Change of Control occurs,
then for purposes of Section (B) above, the Performance Measures shall be deemed to have been satisfied at the “Target
Levels” as defined and set forth in Exhibit A and the final number of Shares awarded to the Participant, subject
to the Participant’s compliance with the terms and conditions of Section (B)(2) above (including, without limitation, the
Participant’s continued employment with the Company Group until the Final Performance Date), shall equal the Target Awarded
Shares. The Target Awarded Shares (and any credited and unpaid dividend equivalents) shall be delivered to the Participant following
the Final Performance Date, as determined by the Committee in its sole discretion, but in no event later than March 15, 2019, and
the Participant shall not be entitled to any additional Shares based on the Company’s achievement of actual Performance Measures
in accordance with Exhibit A. If this Section (D)(1) is applicable, all references to “Awarded Shares” in Sections
(B) and (L) shall mean Target Awarded Shares instead.

    
	2x16ROTCE (EA)	2	 

    	 

    

		(2)	Notwithstanding Section (C)(3) and (D)(1) above, if, (i) during the Participant’s employment
with the Company Group, but prior to the Final Performance Date, a Change of Control occurs and (ii) the Participant incurs a Separation
from Service due to the Participant’s Retirement prior to the Final Performance Date that occurs more than two years following
such Change of Control, then the Target Awarded Shares (and any credited and unpaid dividend equivalents) shall be delivered to
the Participant following the Final Performance Date, as determined by the Committee in its sole discretion, but in no event later
than March 15, 2019, the Participant shall no longer be required to be continually employed with the Company Group until the Final
Performance Date as provided in Section (B)(2) above, and the Participant shall not be entitled to any additional Shares based
on the Company’s achievement of actual Performance Measures in accordance with Exhibit A. If this Section (D)(2) is
applicable, all references to “Awarded Shares” in Sections (B), (C)(3) and (L) shall mean Target Awarded Shares instead.

		(3)	Notwithstanding Section (C)(3) above, if, following the Participant’s Separation from Service
due to the Participant’s Retirement, a Change of Control occurs prior to the Final Performance Date, then for purposes of
Section (C)(3) above, the Performance Measures shall be deemed to have been satisfied at Target Levels and the final number of
Awarded Shares awarded to the Participant, subject to the terms and conditions set forth in Section (L) below, shall equal the
Target Awarded Shares. The Target Awarded Shares (and any credited and unpaid dividend equivalents) shall be delivered to the Participant
following the Final Performance Date, as determined by the Committee in its sole discretion, but in no event later than March 15,
2019, the Participant shall no longer be required to be continually employed with the Company Group until the Final Performance
Date as provided in Section (B)(2) above, and the Participant shall not be entitled to any additional Shares based on the Company’s
achievement of actual Performance Measures in accordance with Exhibit A. If this Section (D)(3) is applicable, all references
to “Awarded Shares” in Sections (B), (C)(3) and (L) shall mean Target Awarded Shares instead.

		(4)	Notwithstanding any provision contained in the Plan or this Award Agreement to the contrary, if
(i) prior to the Final Performance Date, a Change of Control occurs and (ii) within two years following such Change of Control,
the Participant incurs a Separation from Service prior to the Final Performance Date that is (1)described in Section 5(a) or 5(d)
of the Employment Agreement or (2) due to the Participant’s Retirement, the PSUs shall vest immediately on such Separation
from Service and the final number of Awarded Shares awarded to the Participant shall be the Target Awarded Shares. The Participant
shall not be entitled to any additional Shares based on the Company’s achievement of actual Performance Measures in accordance
with Exhibit A. Such Target Awarded Shares (and any credited and unpaid dividend equivalents) shall be settled within thirty
(30) days following such Separation from Service, unless such accelerated vesting and settlement of PSUs (and dividend equivalents)
following the Participant’s Separation from Service is prohibited or limited by applicable law and/or regulation.

		(5)	For Sections (B)(2) and (C)(3) above, if a Change of Control occurs on or following the Final Performance
Date but prior to the Determination Date, the Awarded Shares, if any, as determined under Section (B)(2) or (C)(3) above based
on actual achievement of the Performance Measures in accordance with Exhibit A, shall be delivered to the Participant following
the Final Performance Date but no later than March 15,2019.

 

		(E)	Transferability. The PSUs are
not transferable other than by last will and testament, by the laws of descent and distribution pursuant to a domestic relations
order, or as otherwise permitted under Section 12 of the Plan.

		(F)	Incorporation of Plan. The Plan
includes terms and conditions governing all Awards granted thereunder and is incorporated into this Award Agreement by reference
unless specifically stated herein. This Award Agreement and the rights of the Participant hereunder are subject to the terms and
conditions of the Plan, as amended from time to time and as supplemented by this Award Agreement, and to such rules and regulations
as the Committee may adopt under the Plan. If there is any inconsistency between the terms of this Award Agreement and the terms
of the Plan, the Plan’s terms shall supersede and replace the conflicting terms of this Award Agreement.

		(G)	No Entitlements.

		(1)	Neither the Plan nor the Award Agreement confers
on the Participant any right or entitlement to receive compensation, including, without limitation, any base salary or incentive
compensation, in any specific amount for any future fiscal year (including, without limitation, any grants of future Awards under
the Plan) nor impacts in any way the Company Group’s determination of the amount, if any, of the Participant’s base
salary or incentive compensation. This Award of PSUs made under this Award Agreement is completely independent of any other Awards
or grants and is made at the sole discretion of the Company. The PSUs do not constitute salary, wages, regular compensation, recurrent
compensation, pensionable compensation or contractual compensation for the year of grant or any prior or later years and shall
not be included in, nor have any effect on or be deemed earned in any respect, in connection with the determination of employment-related
rights or benefits under law or any employee benefit plan or similar arrangement provided by the Company Group (including, without
limitation, severance, termination of employment and pension benefits), unless otherwise specifically provided for under the terms
of such plan or arrangement or by the Company Group. The benefits provided pursuant to the PSUs are in no way secured, guaranteed
or warranted by the Company Group.

		(2)	The PSUs are awarded to the Participant by
virtue of the Participant’s employment with, and services performed for, the Company Group. The Plan or the Award Agreement
does not constitute an employment agreement. Nothing in

    
	2x16ROTCE (EA)	3	 

    	 

    

the Plan or the Award Agreement shall
modify the terms of the Participant’s employment, including, without limitation, the Participant’s status as an “at
will” employee of the Company Group, if applicable.

		(3)	Subject to the Employment Agreement or any
other applicable employment agreement, the Company reserves the right to change the terms and conditions of the Participant’s
employment, including the division, subsidiary or department in which the Participant is employed. None of the Plan or the Award
Agreement, the grant of PSUs, nor any action taken or omitted to be taken under the Plan or the Award Agreement shall be deemed
to create or confer on the Participant any right to be retained in the employ of the Company Group, or to interfere with or to
limit in any way the right of the Company Group to terminate the Participant’s employment at any time. Moreover, the Separation
from Service provisions set forth in Section (C) or (D), as applicable, only apply to the treatment of the PSUs in the specified
circumstances and shall not otherwise affect the Participant’s employment relationship. By accepting this Award Agreement,
the Participant waives any and all rights to compensation or damages in consequence of the termination of the Participant’s
office or employment for any reason whatsoever to the extent such rights arise or may arise from the Participant’s ceasing
to have rights under, or be entitled to receive payment in respect of, any unvested PSUs that are cancelled or forfeited as a result
of such termination, or from the loss or diminution in value of such rights or entitlements, including by reason of the operation
of the terms of the Plan, this Award Agreement or the provisions of any statute or law to taxation. This waiver applies whether
or not such termination amounts to a wrongful discharge or unfair dismissal.

		(H)	No Rights as a Stockholder.
The Participant will have no rights as a stockholder with respect to Shares covered by this Award Agreement (including voting
rights) until the date the Participant or his nominee becomes the holder of record of such Shares on the Settlement Date or as
provided in Section (C) or (D) above, if applicable.

		(I)	Securities Representation. The
grant of the PSUs and issuance of Shares upon vesting of the PSUs shall be subject to, and in compliance with, all applicable requirements
of federal, state or foreign securities law. No Shares may be issued hereunder if the issuance of such Shares would constitute
a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any
stock exchange or market system upon which the Shares may then be listed. As a condition to the settlement of the PSUs, the Company
may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any
applicable law or regulation.

The Shares are being issued to the
Participant and this Award Agreement is being made by the Company in reliance upon the following express representations and warranties
of the Participant. The Participant acknowledges, represents and warrants that:

		(1)	He or she has been advised that he or she may be an “affiliate” within the meaning
of Rule 144 under the Securities Act of 1933, as amended (the “Act”) and in this connection the Company is relying
in part on his or her representations set forth in this section (I)(1); and

		(2)	If he or she is deemed an affiliate within the meaning of Rule 144 of the Act, the Shares must
be held indefinitely unless an exemption from any applicable resale restrictions is available or the Company files an additional
registration statement (or a “re-offer prospectus”) with regard to such Shares and the Company is under no obligation
to register the Shares (or to file a “re-offer prospectus”).

		(3)	If he or she is deemed an affiliate within the meaning of Rule 144 of the Act, he or she understands
that the exemption from registration under Rule 144 will not be available unless (i) a public trading market then exists for the
Shares of the Company, (ii) adequate information concerning the Company is then available to the public, and (iii) other terms
and conditions of Rule 144 or any exemption therefrom are complied with; and that any sale of the Shares may be made only in limited
amounts in accordance with such terms and conditions.

		(J)	Notices. Any notice or communication
given hereunder shall be in writing and shall be deemed to have been duly given when delivered in person or mailed by certified
mail, postage and fees prepaid, or internationally recognized express mail service, as follows:

If to the Company, to:

CIT Group Inc.

1 CIT Drive

Livingston, New Jersey 07039

Attention: Senior Vice President, Compensation and Benefits

If to the Participant, to the address on file with the Company
Group.

 

		(K)	Transfer of Personal Data.
In order to facilitate the administration of this Award, it will be necessary for the Company Group to collect, hold, and process
certain personal information about the Participant. As a condition of accepting this Award, the Participant authorizes, agrees
and unambiguously consents to the Company Group collecting, using, disclosing, holding and processing personal data and transferring
such data to third parties (collectively, the “Data Recipients”) for the primary purpose of the Participant’s
participation in, and the general administration of, the Plan and to the transmission by the Company Group of any personal data
information related to the PSUs awarded under this Award Agreement, as required in

    
	2x16ROTCE (EA)	4	 

    	 

    

connection with the Participant’s
participation in the Plan (including, without limitation, the administration of the Plan) out of the Participant’s home country
and including to countries with less data protection than the data protection provided by the Participant’s home country.
This authorization and consent is freely given by the Participant. The Participant acknowledges that he/she has been informed that
upon request, the Company will provide the name or title and contact information for an officer or employee of the Company Group
who is able to answer questions about the collection, use and disclosure of personal data information.

		(1)	The Data Recipients will treat the Participant’s personal data as private and confidential
and will not disclose such data for purposes other than the management and administration of this Award and will take reasonable
measures to keep the Participant’s personal data private, confidential, accurate and current.

 

		(2)	Where the transfer is to a destination outside the country to which the Participant is employed,
or outside the European Economic Area for Participants employed by the Company Group in the United Kingdom or Ireland, the Company
shall take reasonable steps to ensure that the Participant’s personal data continues to be adequately protected and securely
held. By accepting this Award, the Participant acknowledges that personal information about the Participant may be transferred
to a country that does not offer the same level of data protection as the country in which the Participant is employed.

 

		(L)	Cancellation; Recoupment; Related Matters.

		(1)	In the event of a material restatement of
the Company’s financial statements with respect to any fiscal year during the Performance Period, the Committee (or its designee)
shall review those facts and circumstances underlying the restatement that the Committee (or its designee) determines in its sole
discretion as relevant (which may include, without limitation, the Participant’s status and responsibility within the organization,
any potential wrongdoing by the Participant and whether the restatement was the result of negligence, intentional or gross misconduct
or other conduct, including any acts or failures to act, detrimental to the Company insofar as it caused material financial or
reputational harm to the Company or its business activities), and the Committee (or its designee), in its sole discretion, may
direct the Company to cancel any outstanding PSUs (whether or not vested, and including any credited and unpaid dividend equivalents),
and the Participant shall forfeit any rights to such canceled PSUs.

		(2)	In the event that the Committee (or its designee),
in its sole discretion, determines that this grant of PSUs was based, in whole or in part, on materially inaccurate financial or
performance metrics for any period preceding the granting of this Award, whether or not a financial restatement is required and
whether or not the Participant was responsible for the inaccuracy, then the Committee (or its designee), in its sole discretion,
may direct the Company to cancel any outstanding PSUs (whether or not vested, and including any credited and unpaid dividend equivalents),
and the Participant shall forfeit any rights to such canceled PSUs.

		(3)	In the event that the Committee (or its designee),
in its sole discretion, determines at any time that the Participant has failed to comply with the Company’s risk policies
or standards and/or improperly or with gross negligence failed to properly identify, raise or assess, in a timely manner and as
reasonably expected, risks and / or concerns with respect to risks material to the Company or its business activities, then the
Committee (or its designee), in its sole discretion, may direct the Company to cancel any outstanding PSUs (whether or not vested,
and including any credited and unpaid dividend equivalents), and the Participant shall forfeit any rights to such canceled PSUs.

		(4)	In the event that the Committee (or its designee),
in its sole discretion, determines at any time that the Participant has breached (i) any applicable provisions relating to non-competition,
non-solicitation, confidential information, inventions, developments or proprietary property in the Employment Agreement, any other
applicable employment agreement or other agreement in effect between the Participant and the Company or an Affiliate or (ii) the
provisions of Exhibit B during the Participant’s employment or the one year period following the Participant’s
Separation from Service from the Company Group, then the Committee (or its designee), in its sole discretion, may direct the Company
to (a) cancel any outstanding PSUs (whether or not vested, and including any credited and unpaid dividend equivalents), and the
Participant shall forfeit any rights to such canceled PSUs and / or (b) recover from the Participant an amount equal to the Fair
Market Value (determined as of the Settlement Date) of the net number of Shares distributed to the Participant pursuant to this
Award Agreement within the 12 months immediately preceding the Committee’s determination

		(5)	In the event the Committee (or its designee),
in its sole discretion, determines that the Participant has engaged in “Detrimental Conduct” (as defined below) or
violated any of the Company Policies (as defined below) during the Participant’s employment, including if such determination
is made following the Participant’s termination of employment; then the Committee (or its designee), in its sole discretion,
may direct the Company to cancel any outstanding PSUs (whether or not vested, and including any credited and unpaid dividend equivalents),
and the Participant shall forfeit any rights to such canceled PSUs. “Detrimental Conduct” shall mean: (i) any
conduct that would constitute “cause” under the Employment Agreement or similar agreement with the Company or its Affiliates,
if any, or if the Participant’s employment has terminated and the Committee discovers thereafter that the Participant’s
employment could have or should have been terminated for ”cause”; or (ii) fraud, gross negligence, or other wrongdoing
or malfeasance. “Company Policies” shall mean the Company policies and procedures in effect from time to time,
including, without limitation, policies and procedures with respect to the Company’s “Regulatory Credit Classifications”
(as defined in the Company’s Annual Report on Form 10-K filed with the Securities Exchange

    
	2x16ROTCE (EA)	5	 

    	 

    

Commission on March 7, 2016 (the “Form
10-K”)), and as amended from time to time, and any credit risk policies and procedures in effect from time to time.

		(6)	If during the two year period following the
Final Performance Date a Clawback Trigger Event (as defined below) occurs, then the Committee (or its designee), in its sole discretion,
may direct the Company, at any time from the Settlement Date (or such other date Awarded Shares are settled in accordance with
Section (C)(1), (C)(2) or (D) above, if applicable) until the second anniversary of the Final Performance Date, to require the
Participant to repay the Company immediately upon written demand by the Company any amount that does not exceed (1) the total Fair
Market Value of such Shares (as of the Settlement Date (or such other date Awarded Shares are settled in accordance with Section
(C)(1), (C)(2) or (D) above, if applicable)) that have been previously paid to the Participant under this Agreement, plus (2) the
value of any other payments previously paid to the Participant under this Agreement, including, without limitation, any cash payments
in accordance with Section (B)(6) above or any dividend equivalents. A “Clawback Trigger Event” shall be deemed
to have occurred in the event (i) of a material restatement of the Company’s financial statements with respect to any fiscal
year during the Performance Period; (ii) of a determination that this grant of PSUs was based, in whole or in part, on materially
inaccurate financial or performance metrics for any period preceding the granting of this Award, whether or not a financial restatement
is required and whether or not the Participant was responsible for the inaccuracy; (iii) of a determination by the Committee (or
its designee), in its sole discretion, that the Participant has failed to comply with the Company’s risk policies or standards
and/or failed to properly identify, raise or assess, in a timely manner and as reasonably expected, risks and/or concerns with
respect to risks material to the Company or its business activities; (iv) the Participant has engaged in Detrimental Conduct or
violated any of the Company Policies during the Participant’s employment, as determined by the Committee (or its designee)
in its sole discretion, including if such determination is made following the Participant’s termination of employment; or
(v) (i) a consolidated, pre-tax GAAP loss occurs in fiscal year 2019 or 2020, (ii) the Company incurs credit losses during such
respective fiscal year 2019 or 2020 with regard to loan and lease transactions originated and booked during the Performance Period
and (iii) such credit losses for such respective fiscal year equal or exceed such consolidated, pre-tax GAAP loss for such respective
fiscal year (a “Pre-Tax Loss”). Notwithstanding the foregoing, any Pre-Tax Loss shall be determined after excluding
the impact of (A) adjustments to or impairment of goodwill or other intangible assets, (B) changes in accounting principles during
the Performance Period, (C) FSA charges and prepayment charges related to the prepayment or early extinguishment of the Company’s
debt, (D) accelerated original issue discount (“OID”) on debt extinguishment related to the Goldman Sachs International
(“GSI”) facility, (E) restructuring or business re-characterization activities, including, but not limited to, terminations
of office leases, or reductions in force, that are reported by the Company, or (F) any other extraordinary or unusual items as
determined by the Committee. 

		(7)	Notwithstanding anything contained in the
Plan or this Award Agreement to the contrary, to the extent that the Company is required by law to include any additional recoupment,
recovery or forfeiture provisions to outstanding Awards, then such additional provisions shall also apply to this Award Agreement
as if they had been included as of the Date of Award and in the manner determined by the Committee in its sole discretion.

		(8)	The remedies provided for in this Award Agreement
shall be cumulative and not exclusive, and the Participant agrees and acknowledges that the enforcement by the Company of its rights
hereunder shall not in any manner impair, restrict or limit the right of the Company to seek injunctive and other equitable or
legal relief under applicable law or the terms of any other agreement between the Company and the Participant.

		(M)	Miscellaneous.

		(1)	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 Award Agreement, all of which shall be binding upon the Participant.

		(2)	The Board may at any time, or from time to
time, terminate, amend, modify or suspend the Plan, and the Board or the Committee may amend or modify this Award Agreement at
any time; provided, however, that, except as provided herein, no termination, amendment, modification or suspension
shall materially and adversely alter or impair the rights of the Participant under this Award Agreement, without the Participant’s
written consent.

		(3)	This Award Agreement is intended to comply
with, or be exempt from, Section 409A of the Code and the regulations and guidance promulgated thereunder (“Section 409A”),
and accordingly, to the maximum extent permitted, this Award Agreement shall be interpreted in a manner intended to be in compliance
therewith. In no event whatsoever shall the Company Group be liable for any additional tax, interest or penalty that may be imposed
on the Participant by Section 409A or any damages for failing to comply with Section 409A. If any provision of the Plan or the
Award Agreement would, in the sole discretion of the Committee, result or likely result in the imposition on the Participant, a
beneficiary or any other person of additional taxes or a penalty tax under Section 409A, the Committee may modify the terms of
the Plan or the Award Agreement, without the consent of the Participant, beneficiary or such other person, in the manner that the
Committee, in its sole discretion, may determine to be necessary or advisable to avoid the imposition of such penalty tax. Notwithstanding
anything to the contrary in the Plan or the Award Agreement, to the extent that the Participant is a “Specified Employee”
(within the meaning of the Committee’s established methodology for determining “Specified Employees” for
purposes of Section 409A), payment or distribution of any amounts with respect to the PSUs that are subject to Section 409A will
be made as soon as practicable following the

    
	2x16ROTCE (EA)	6	 

    	 

    

first business day of the seventh
month following the Participant’s Separation from Service from the Company Group or, if earlier, the date of the Participant’s
death.

		(4)	Delivery of the Shares underlying the PSUs
or payment in cash (if permitted pursuant to Section (B)(6)) upon settlement is subject to the Participant satisfying all applicable
federal, state, provincial, local, domestic and foreign taxes and other statutory obligations (including, without limitation, the
Participant’s FICA obligation, National Insurance Contributions or Canada Pension Plan contributions, as applicable), provided
that any Participant that is subject to tax regulation in the United Kingdom or Ireland shall also be subject to the provisions
of Exhibit C attached hereto, if applicable. The Company shall have the power and the right to (i) deduct or withhold from
all amounts payable to the Participant pursuant to the PSUs or otherwise, or (ii) require the Participant to remit to the Company,
an amount sufficient to satisfy any applicable taxes required by law. The Company may permit or require the Participant to satisfy,
in whole or in part, the tax obligations by withholding Shares that would otherwise be received upon settlement of the PSUs. 

		(5)	The Company may at any time place legends
referencing any applicable federal, state or foreign securities law restrictions on all certificates representing Shares issued
pursuant to this Award Agreement. The Participant shall, at the request of the Company, promptly present to the Company any and
all certificates representing Shares acquired pursuant to this Award Agreement in the possession of the Participant.

		(6)	This Award Agreement shall be subject to all
applicable laws, rules, guidelines and regulations, and to such approvals by any governmental agencies or national securities exchanges
as may be required, or the Committee determines are advisable, including but not limited to any applicable laws or the rules, codes,
or guidelines of any statutory or regulatory body in any jurisdiction relating to the remuneration of any Participant (in each
case as may be in force from time to time). The Participant agrees to take all steps the Company determines are necessary to comply
with all applicable provisions of federal, state and foreign securities law in exercising his or her rights under this Award Agreement.

		(7)	Nothing in the Plan or this Agreement should
be construed as providing the Participant with financial, tax, legal or other advice with respect to the PSUs. The Company recommends
that the Participant consult with his or her financial, tax, legal and other advisors to provide advice in connection with the
PSUs.

		(8)	All obligations of the Company under the Plan
and this Award Agreement, with respect to the Awards, 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.

		(9)	To the extent not preempted by federal law,
this Award Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware.

		(10)	This Award Agreement may be executed in one
or more counterparts, all of which taken together shall constitute one contract.

		(11)	The Participant agrees that the Company may,
to the extent permitted by applicable law and as provided for in Section 17(g) of the Plan, retain for itself securities or funds
otherwise payable to the Participant pursuant to this Award Agreement, or any other Award Agreement under the Plan, to satisfy
any obligation or debt that the Participant owes the Company or its affiliates under any Award Agreement, the Plan or otherwise;
provided that the Company may not retain such funds or securities and set off such obligations or liabilities until such time as
they would otherwise be distributable to the Participant, and to the extent that Section 409A is applicable, such offset shall
not exceed the maximum offset then permitted under Section 409A.

		(12)	The Participant acknowledges that if he or
she moves to another country during the term of this Award Agreement, additional terms and conditions may apply and as provided
for in Section 17(f) of the Plan and the Company reserves the right to impose other requirements to the extent the Company determines
it is necessary or advisable in order to comply with local law or facilitate the administration of the Award Agreement. The Participant
agrees to sign any additional agreements or undertaking that may be necessary to accomplish the foregoing.

		(13)	The Participant acknowledges that he or she
has reviewed the Company Policies, understands the Company Policies and agrees to be subject to the Company Policies that are applicable
to the Participant, including, without limitation, the Regulatory Credit Classifications and any credit risk policies in effect
from time to time.

		(14)	The Participant acknowledges that the Company
is subject to certain regulatory restrictions that may, under certain circumstances, prohibit the accelerated vesting and distribution
of any unvested PSUs as a result of, or following, a Participant’s Separation from Service.

		(15)	The Participant acknowledges that his or her
participation in the Plan as a result of this Award Agreement is further good and valuable consideration for the Participant’s
obligations under any applicable non-competition, non-

    
	2x16ROTCE (EA)	7	 

    	 

    

solicitation, confidential information,
inventions, developments, proprietary property or similar agreement in effect between the Participant and the Company.

		(16)	Neither this Award Agreement or the Shares
that may be awarded hereunder represent any right to the payment of earned wages, and the rights of the Participant with respect
to any Shares remains fully contingent and subject to the vesting and other terms and conditions of this Award Agreement.

		(17)	Any cash payment made pursuant to Section
(B)(5) or (B)(6) of this Award Agreement shall be calculated, where necessary, by reference to the prevailing U.S. dollar exchange
rate on the proposed payment date (as determined by the Committee in its sole discretion).

		(N)	Acceptance of Award. By accepting
this Award of Performance Share Units, the Participant is agreeing to all of the terms contained in this Award Agreement, including
the terms and conditions with respect to the vesting of the PSUs attached hereto as Exhibit A and the non-competition and
non-solicitation provisions attached hereto as Exhibit B. The Participant may accept this Award by indicating acceptance
by e-mail or such other electronic means as the Company may designate in writing or by signing this Award Agreement if the Company
does not require acceptance by email or such other electronic means. If the Participant desires to refuse the Award, the Participant
must notify the Company in writing. Such notification should be sent to CIT Group Inc., Attention: Senior Vice President, Compensation
and Benefits, 1 CIT Drive, Livingston, New Jersey 07039, no later than thirty (30) days after the Date of Award. If the Participant
declines the Award, it will be cancelled as of the Date of Award.

 

IN WITNESS WHEREOF, this Award
Agreement (including any exhibits attached hereto) has been executed by the Company by one of its duly authorized officers as of
the Date of Award.

 

CIT Group Inc.

 

 

 

 

Accepted
and Agreed:

 

<<Electronic Signature>>

<<Acceptance Date>>

 

 

 

    
	2x16ROTCE (EA)	8	 

    	 

    

EXHIBIT A

 

Vesting Terms and Conditions of the Performance
Share Units

 

This Exhibit A sets forth the manner in
which the number of Awarded Shares will be determined, if any.

 

		(A)	Definitions. All capitalized terms shall have the meanings ascribed to them in the
Award Agreement, unless specifically set forth otherwise herein. In addition, the following terms used in this Exhibit A shall
have the meanings set forth below:

 

 

		(1)	“ROTCE” means the Company’s
return on average tangible common stockholder’s equity and, for the purpose of this measure, equates to average Adjusted
Net Income as a percentage of average Adjusted Tangible Common Equity for the Performance Period. The Committee, in its sole discretion,
may adjust ROTCE to exclude special, unusual or non-recurring items that may be applicable during the Performance Period.

		(2)	“Adjusted Net Income” means
the Company’s after-tax net income adjusted to exclude the impact during the Performance Period of (i) a sale/spin-off of
the Commercial Air business, (ii) the tax effected amortization of intangible assets, (iii) the reversal of any deferred tax asset
valuation allowance, and (iv) other special, unusual or non-recurring, as determined by the Committee in its sole discretion. 

		(3)	“Adjusted Tangible Common Equity”
means the Company’s common stockholder’s equity less goodwill and intangible assets, adjusted to exclude disallowed
deferred tax assets.

		(4)	“Credit Provision” means
the Company’s provision for credit losses as a percent of Average Earning Assets.

		(5)	“Credit Provision Modifier”
means a modifier that can decrease the applicable Payout Percentage by up to l%
based on the Credit Provision for the Performance Period.

		(6)	“Average Earning Assets”
is a non-GAAP measurement computed using month end balances and is the average of Earning Assets.

		(7)	“Earning Assets” is the
sum of Finance Receivables, operating lease equipment, financing and leasing assets held for sale, interest-bearing cash, securities
purchased under agreements to resell and investments less the credit balances of factoring clients.

		(8)	“Finance Receivables” include
loans, capital lease receivables and factoring receivables held for investment, and does not include amounts contained within assets
held for sale. 

		(9)	“Payout Percentage” shall
be the number expressed in the Performance Measure Factor Grid. The threshold Payout Percentage is 50% and the maximum Payout Percentage
is 150%.

		(10)	“Performance Measure Factor Grid”
means the chart in Paragraph (C) below that provides the applicable Payout Percentage based on the levels of the Performance Measures
that have been achieved.

		(11)	“Performance Measures”
means the performance measurements of ROTCE and Credit Provision used to determine the calculation of PSUs earned in accordance
with this Exhibit A.

		(12)	“Performance Period” means
the period from January 1, 2016 through December 31, 2018.

 

		(B)	In General. The total number of Shares deliverable to the Participant shall be equal
to (i) the Target Number of PSUs (or Pro-Rata Target Number of PSUs, if applicable) multiplied by the applicable Payout Percentage
based on the specified levels of Performance Measures that have been achieved during the Performance Period as provided in the
Performance Measure Factor Grid; or (ii) the Target Awarded Shares in accordance with Section (C)(1), (C)(2), (D)(2), (D)(3) or
(D)(4) of the Agreement, if applicable.

 

    
	2x16ROTCE (EA)	9	 

    	 

    

(C)Performance Measure Factor Grid:

 

	ROTCE	Payout Before Credit Modifier	 	
        Payout With Credit Modifier

        <=l
        to lbps to >=l
        bps

        +0% to -15%

	< Min	<l%	0%	 	0% up to 50% at Discretion of the Compensation Committee
	Min	l	l	 	l	-	l
	 	l	l	 	l	-	l
	 	l	l	 	l	-	l
	 	l	l	 	l	-	l
	 	l	l	 	l	-	l
	 	l	l	 	l	-	l
	 	l	l	 	l	-	l
	Target	l	l	 	l	-	l
	 	l	l	 	l	-	l
	 	l	l	 	l	-	l
	 	l	l	 	l	-	l
	 	l	l	 	l	-	l
	 	l	l	 	l	-	l
	 	l	l	 	l	-	l
	Max	l	l	 	l	-	l

 

 

		(1)	If the levels of Performance Measures attained
falls between the amounts shown above, the applicable Payout Percentage will be determined by interpolation between the respective
amounts shown above.

		(2)	The “Target Level” for
ROTCE is l%, the “Target
Level” for the Credit Provision Modifier is lbps
to lbps, and the “Minimum
Level” for ROTCE is l%.

		(3)	If the Minimum Level for ROTCE is not met,
the PSUs eligible to vest will be forfeited. Notwithstanding the foregoing, the Committee may determine that a portion of the PSUs
eligible to vest, not to exceed 50% of such PSUs, will vest after taking into account such factors as (i) the magnitude of the
ROTCE below the Minimum Level (including positive or negative variance from plan), (ii) the Participant’s degree of involvement
(including the degree to which the Participant was involved in decisions that are determined to have contributed to ROTCE below
the Minimum Level, (iii) the Participant’s performance, and (iv) such other factors as deemed appropriate. Any such determination
will be in the sole discretion of the Committee and will be final and binding.

		(D)	Committee Determination. The Committee shall, in its sole discretion, determine
the level of Performance Measures that have been satisfied during the Performance Period and the applicable Payout Percentage to
be used to determine the number of Awarded Shares, if any, based on the application of the Performance Measure Factor Grid. The
Committee may, in its sole discretion, adjust the Performance Measures and the Performance Measure Factor Grid to exclude the effect
of any corporate acquisition or divestiture after the date hereof on satisfaction of the Performance Measures.

 

    
	2x16ROTCE (EA)	10	 

    	 

    

EXHIBIT B

 

Non-Competition and Non-Solicitation Provision

 

All capitalized terms
shall have the meanings ascribed to them in the Award Agreement, unless specifically set forth otherwise herein.

		1.	Non-Competition following Retirement.
Following Participant’s Retirement through the Settlement Date, Participant shall not, without the Company Group’s
prior written consent, engage directly or indirectly in any Competing Business whether as an employer, officer, director, owner,
stockholder, employee, partner, member, joint venturer or consultant. The Committee (or its designee) may, in its sole discretion,
require Participant to submit on or prior to each Vesting Date an affidavit certifying that Participant has not breached this non-competition
restriction, and may condition vesting and settlement of all unvested PSUs on the timely receipt of such affidavit. The geographic
reach of this non-competition restriction shall be the territory which is co-extensive with the Company Group’s business
and the Participant’s responsibilities in the last twenty-four (24) months of employment. Nothing in this non-competition
restriction prevents Participant from owning not more than 2% of the equity of a publicly traded entity. For the avoidance of doubt,
this non-competition restriction shall not apply to a termination of employment for any reason other than Participant’s Retirement.
This provision does not apply to employees who, at the time of award or vesting, are assigned to a Company Group work location
in a country, state or locality that prohibits the foregoing restrictions.

		2.	Non-Solicitation of Customers and Clients.
During employment with the Company Group and for one year thereafter, the Participant shall not, directly or indirectly,
(i) solicit for any Competing Business any client of the Company Group or any specifically identified prospective client of the
Company Group, or (ii) cause a client or any specifically identified prospective client of the Company Group to terminate or diminish
its business with the Company Group. These restrictions shall apply only to clients of the Company Group or specifically identified
prospective clients of the Company Group which the Participant solicited, with which the Participant maintained a business relationship
for the Company Group, or about which the Participant obtained Confidential Information on behalf of the Company Group, in the
last twenty-four (24) months of employment with the Company Group. This provision does not apply to employees who, at the time
of award or vesting, are assigned to a Company Group work location in a country, state or locality that prohibits the foregoing
restrictions.

		3.	Non-Solicitation of Employees. During
employment with the Company Group and for one year thereafter, the Participant shall not, directly or indirectly, (i) solicit,
recruit, induce or otherwise encourage any Company Group employees to end their employment with the Company Group or to engage
in any Competing Business; or (ii) hire or retain as an independent consultant/contractor, on behalf of any Competing Business,
any person who was employed with the Company Group within the preceding six months.

		4.	Definitions.

		(a)	“Competing Business” means
any person or entity that competes with the Company Group in the sale, marketing, production, distribution, research or development
of Competing Products in the same markets.

		(b)	“Competing Products” means
any product or service in existence or under development that competes with any product or service of the Company Group about which
the Participant obtained Confidential Information or for which the Participant provided advisory services or had sales, origination,
marketing, production, distribution, research or development responsibilities in the last twenty-four (24) months of employment
with the Company Group.

		(c)	"Confidential Information"
means both tangible and intangible information owned by CIT or a Third Party (as defined below) which is in print, audio, visual,
digital, electronically-stored or any other form that (i) has been developed or acquired by the Company Group; (ii) constitutes
a trade secret or is proprietary in nature; (iii) is not otherwise known publicly or to the Company Group’s competitors;
and (iv) is kept confidential byte Company Group. Confidential Information includes, but is not limited to: Board of Director presentations
and materials; business, financial, advertising or marketing opportunities, proposals, presentations, plans, budgets, strategies
or methods; financial information including forecasts/presentations, budgets, data, financial statements and tax returns; financial
management and accounting policies and procedures; risk, credit and pricing policies, procedures and terms; prices and rates; profit
margins; secondary marketing and hedging models; loan, lease and other financial program applications and supporting documents
and information; merger, acquisition, divestiture and other transaction information and documents; operations and procedure manuals,
materials, policies and memoranda; software programs; source code; data models; production reports; security and proprietary technology;
analyses; research and developments; know how; methodologies; designs; inventions; innovations; processes; patents; other business,
financial or technical information, improvements, ideas and concepts, whether or not patentable or whether or not copyrightable;
information classified as “Confidential” or “Restricted”; Confidential Information owned by or about CIT’s
licensors, clients, customers, vendors, suppliers, franchisors, referral sources or other business partners or third parties (“Third
Party” or “Third Parties”); and information regarding employees and contingent workers (other than information
involving wages, benefits, other terms and conditions of employment or protected concerted activity).

    
	2x16ROTCE (EA)	11	 

    	 

    

EXHIBIT C

 

Applicable Foreign
Tax Provisions

All capitalized terms
shall have the meanings ascribed to them in the Award Agreement, unless specifically set forth otherwise herein.

United Kingdom:

 

The Participant shall also, if requested by the
Company, enter into any tax or National Insurance Contributions agreement or election the Company
deems necessary, including, without limitation, any election under Section 431 of the Income Tax (Earnings and Pensions) Act 2003
in respect of the acquisition of the RSUs or the Shares issued thereunder.

 

Ireland:

In a case where the
Company or an Affiliate or any other person (the “Relevant Person”) is obliged to (or would suffer a disadvantage
if they were not to) account for any tax (in any jurisdiction) by virtue of the receipt of any benefit under this Award Agreement
or the Plan (whether in cash or Shares) or for any pay related social insurance contributions that are payable or assessable (which,
unless the Committee determines otherwise when this Award was made, shall not include employer’s pay related social insurance
contributions in Ireland) (together, the “Tax Liability”), the Participant (or his personal representatives)
must either:

(1)make a payment
to the Relevant Person of an amount equal to the Tax Liability; or

(2)enter into
arrangements acceptable to the Relevant Person to secure that such a payment is made (whether by authorizing the sale of some or
all of the Shares on his or her behalf and the payment to the Relevant Person of the relevant amount out of the proceeds of sale
or otherwise);

and in this regard the Participant (or his or
her personal representatives) shall do all such things and execute such documents as the Relevant Person may reasonably require
in connection with the satisfaction of the Tax Liability.

 

 

 

 

 

    
	2x16ROTCE (EA)	12

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