Document:

Exhibit
4.4

 

 

 

6.125% Subordinated Notes due 2028

 

CIT GROUP INC.,

as Issuer,

 

and

 

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Trustee,

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Paying Agent, Security Registrar and Authenticating Agent

 

 

 

FIRST SUPPLEMENTAL INDENTURE

 

 

 

Dated as of March 9, 2018

 

 

    	 

    	

    

TABLE OF CONTENTS

 

Page

 

ARTICLE 1

 

DEFINITIONS

 

	Section 1.1	Relation to Base Indenture	1
	Section 1.2	Definition of Terms	2

 

ARTICLE 2

 

GENERAL TERMS
AND CONDITIONS OF THE NOTES

 

	Section 2.1	Designation and Principal Amount	4
	Section 2.2	Maturity	4
	Section 2.3	Form, Payment and Appointment	4
	Section 2.4	Global Notes	5
	Section 2.5	Interest	5

 

ARTICLE 3

 

REDEMPTION AND
REPURCHASE OF THE NOTES

 

	Section 3.1	No Sinking Fund or Repayment at Option of the Holder	5
	Section 3.2	Regulatory Event Redemption	5
	Section 3.3	[Reserved]	6
	Section 3.4	Effect of Redemption	6
	Section 3.5	Redemption Procedures	6
	Section 3.6	No Other Redemption	7

 

ARTICLE 4

 

FORM OF NOTE

 

	Section 4.1	Form of Note	7

 

ARTICLE 5

 

COVENANTS

 

	Section 5.1	Reports	7

    	-i-

    	

    
Page

 

ARTICLE 6

 

[RESERVED]

 

ARTICLE 7

 

MISCELLANEOUS

 

	Section 7.1	Ratification of Indenture	8
	Section 7.2	No Personal Liability of Directors, Officers, Employees and Stockholders	8
	Section 7.3	Trustee and Agent Not Responsible for Recitals	9
	Section 7.4	New York Law To Govern	9
	Section 7.5	Separability	9
	Section 7.6	Counterparts	9

    	-ii-

    	

    

THIS FIRST SUPPLEMENTAL INDENTURE, dated
as of March 9, 2018 (this “Supplemental Indenture”), among CIT Group Inc., a corporation duly organized and
existing under the laws of the State of Delaware (the “Company”), Wilmington Trust, National Association, as
trustee (the “Trustee”), and Deutsche Bank Trust Company Americas, as paying agent, security registrar and authenticating
agent (the “Agent”), amending and supplementing the Indenture, dated as of March 9, 2018 among the Company,
the Trustee and the Agent, governing the issuance of subordinated debt securities (the “Base Indenture”). The
Base Indenture, as amended and supplemented by the Supplemental Indenture, shall be referred to herein as the “Indenture.”

 

RECITALS

 

WHEREAS, the Company has executed and delivered
the Base Indenture to the Trustee and the Agent to provide for the future issuance of the Company’s debt securities or other
evidence of Indebtedness, to be issued from time to time in one or more series as might be determined by the Company under the
Base Indenture;

 

WHEREAS, Section 9.3(8) of the Base Indenture
provides for the Company and the Trustee to enter into an indenture supplemental to the Base Indenture to establish the forms or
terms of Securities of any series as permitted by Section 2.1 and Section 3.1 of the Base Indenture;

 

WHEREAS, pursuant to Section 3.1 of the Base
Indenture, the Company wishes to provide for the issuance of a new series of Securities to be known as its 6.125% Subordinated
Notes due 2028 (the “Notes”) and the form, terms, provisions and conditions thereof to be set forth as provided
in this Supplemental Indenture; and

 

WHEREAS, the Company has requested that the
Trustee and the Agent execute and deliver this Supplemental Indenture, and all requirements necessary to make this Supplemental
Indenture a valid, binding and enforceable instrument in accordance with its terms, and to make the Notes, when executed by the
Company and authenticated and delivered by the Trustee and the Agent, and the payment by the purchaser thereof of the agreed upon
consideration therefor, the valid, binding and enforceable Obligations of the Company, have been done and performed, and the execution
and delivery of this Supplemental Indenture have been duly authorized in all respects.

 

NOW, THEREFORE, in consideration of the covenants
and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE 1

DEFINITIONS

 

Section 1.1 Relation to Base Indenture.

 

This Supplemental Indenture constitutes an
integral part of the Base Indenture, and supplements and amends the Base Indenture solely with respect to the Notes.

    	 

    	

    

Section 1.2 Definition of Terms.

 

For all purposes of this Supplemental Indenture:

 

(a) a term not defined herein
that is defined in the Base Indenture has the same meaning when used in this Supplemental Indenture;

 

(b) the definition of any term
in this Supplemental Indenture that is also defined in the Base Indenture shall supersede the definition of such term in the Base
Indenture;

 

(c) a term defined anywhere in
this Supplemental Indenture has the same meaning throughout;

 

(d) the singular includes the
plural and vice versa and use of any gender includes each other gender;

 

(e) headings are for convenience
of reference only and do not affect interpretation; and

 

(f) the following terms have
the meanings given to them in this Section 1.2:

 

“1940 Act Event” means
an event requiring the Company to register as an investment company pursuant to the Investment Company Act of 1940, as amended.

 

“Additional Notes” means
additional Notes (other than the Initial Notes) issued under this Indenture in accordance with Section 3.12 of the Base Indenture,
as part of the same series as the Initial Notes.

 

“Coupon Rate” has the
meaning set forth in Section 2.5(a) hereof.

 

“Custodian” means, with
respect to any Global Note, the Security Registrar, as custodian for DTC with respect to such Global Note.

 

“DTC” has the meaning
set forth in Section 2.3(d) hereof.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

“Federal Reserve Board”
means the Board of Governors of the Federal Reserve System or any successor regulatory authority with jurisdiction over bank holding
companies.

 

“Global Notes” has the
meaning set forth in Section 2.4 hereof.

 

“Independent Bank Regulatory Counsel”
means a law firm, a member of a law firm or an independent practitioner that is experienced in matters of federal bank holding
company and banking regulatory law, including the laws, rules and the guidelines of the Federal Reserve Board relating to regulatory
capital, and shall include any Person who, under the standards of professional conduct then prevailing and applicable to such counsel,
would not have a conflict of

    	-2-

    	

    

interest in representing the Company or the
Trustee in connection with providing the legal opinion contemplated by the definition of the term “Tier 2 Capital Event.”

 

“Initial Notes” means
$400,000,000 aggregate principal amount of the Notes issued on the Issue Date.

 

“Interest Payment Date”
has the meaning set forth in Section 2.5(a) hereof.

 

“Issue Date” means the
date of this Supplemental Indenture.

 

“Maturity Date” means
March 9, 2028.

 

“Notes” has the meaning
set forth in the recitals hereto.

 

“Obligations” means any
principal, interest (including interest which, but for the filing of a petition in bankruptcy with respect to an obligor, would
have accrued on any obligation, whether or not a claim is allowed against such obligor for such interest in the related proceeding),
penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness.

 

“Parent” has the meaning
set forth in Section 5.1(c) hereof.

 

“Regular Record Date”
means, with respect to a March 9 Interest Payment Date, the immediately preceding February 25, and with respect to a September
9 Interest Payment Date, the immediately preceding August 25.

 

“Tier 2 Capital Event”
means the receipt by the Company of an opinion of Independent Bank Regulatory Counsel to the effect that as a result of:

 

(a) any amendment to, or change
in, the laws, rules or regulations of the United States (including, for the avoidance of doubt, any agency or instrumentality of
the United States, including the Federal Reserve Board and other appropriate federal bank regulatory agencies) that is enacted
or becomes effective after the Issue Date;

 

(b) any proposed change in those
laws, rules or regulations that is announced or becomes effective after the Issue Date; or

 

(c) any official administrative
decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws, rules
or regulations or policies with respect thereto that is announced after the Issue Date,

 

in each case, there is more than an insubstantial
risk that the Company will not be entitled to treat the Notes then outstanding as “Tier 2 capital” (or its equivalent)
for purposes of the capital adequacy rules of the Federal Reserve Board (or, as and if applicable, the capital adequacy rules or
regulations of any successor appropriate federal banking agency) as then in effect and applicable, for so long as any Notes are
outstanding.

    	-3-

    	

    

The terms “Company,” “Trustee,”
“Indenture” and “Base Indenture” shall have the respective meanings set forth in the paragraph
preceding the recitals to this Supplemental Indenture.

 

ARTICLE 2

 

GENERAL TERMS
AND CONDITIONS OF THE NOTES

 

Section 2.1 Designation and Principal
Amount.

 

There is hereby authorized a series of Securities
designated the “6.125% Subordinated Notes due 2028” initially offered in the aggregate principal amount of $400,000,000,
which amount shall be as set forth in a Company Order for the authentication and delivery of Notes pursuant to Section 3.3 of the
Base Indenture.

 

Section 2.2 Maturity.

 

Unless earlier redeemed pursuant to Section
3.2 hereof, the date upon which the Notes shall become due and payable at final maturity, together with any accrued and unpaid
interest, is the Maturity Date.

 

Section 2.3 Form, Payment and Appointment.

 

(a) Principal of, premium, if any, and
interest on the Notes shall be payable, the transfer of such Notes shall be registrable, and such Notes shall be exchangeable for
Notes of a like aggregate principal amount bearing identical terms and provisions, at the office or agency of the Company maintained
for such purpose in the Borough of Manhattan, The City of New York, which shall initially be the office of the Security Registrar;
provided, however, that (i) if a Holder (including a Depository) has given wire transfer instructions to the Company
on or before the Regular Record Date, then payment of principal, premium, if any, and interest on that Holder’s Notes shall
be paid in accordance with those instructions and (ii) if no such instructions have been given, then, at the option of the Company,
payments of principal, premium, if any, and interest may be made by check mailed to the Holder at such address as shall appear
in the Security Register. Principal, premium, if any, and interest shall be payable in Dollars.

 

(b) No service charge shall be made for
any registration of transfer or exchange of the Notes, but the Company may require payment from the Holder of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection therewith.

 

(c) The Paying Agent, Authenticating Agent
and Security Registrar for the Notes shall initially be Deutsche Bank Trust Company Americas.

 

(d) The Company initially appoints The
Depository Trust Company (“DTC”) to act as Depository with respect to the Global Notes. Deutsche Bank Trust
Company Americas shall act as Custodian with respect to the Global Notes.

 

(e) The Notes shall be issuable in the
denominations of $2,000 and integral multiples of $1,000 in excess thereof.

    	-4-

    	

    

Section 2.4 Global Notes.

 

The Notes initially shall be issued in permanent
global form as one or more Global Notes (collectively, the “Global Notes”). Except as otherwise provided in
the Indenture or this Section 2.4, Notes represented by the Global Notes shall not be exchangeable for, and shall not otherwise
be issuable as, Notes in certificated form. Unless and until such Global Note is exchanged for Notes in certificated form, Global
Notes may be transferred, in whole but not in part, and any payments on the Notes shall be made, only to the Depositary or a nominee
of the Depositary, or to a successor Depositary selected or approved by the Company or to a nominee of such successor Depositary.

 

Section 2.5 Interest.

 

(a) The unpaid principal amount of the
Notes shall bear interest at the rate of 6.125% per year (the “Coupon Rate”) from and including the Issue Date
or from the most recent Interest Payment Date to which interest has been paid or duly provided for to, but excluding, the Maturity
Date. Interest will be payable semiannually in arrears on March 9 and September 9, commencing on September 9, 2018. Each such date
on which interest is payable is an “Interest Payment Date.”

 

(b) Interest shall be computed on the
basis of a 360-day year consisting of twelve 30-day months. In the event that any scheduled Interest Payment Date falls on a day
that is not a Business Day, then payment of interest payable on such Interest Payment Date shall be made on the next succeeding
day that is a Business Day (and without any interest or other payment in respect of any such delay).

 

(c) Interest shall be calculated by the
Paying Agent. The Paying Agent will provide to the Company the calculation of interest payable on an Interest Payment Date at least
5 Business Days prior to such Interest Payment Date.

 

(d) The Company shall deposit the funds
for any payment of interest with the Trustee or Paying Agent one Business Day prior to any Interest Payment Date.

 

ARTICLE 3

 

REDEMPTION AND
REPURCHASE OF THE NOTES

 

Section 3.1 No Sinking Fund or Repayment
at Option of the Holder.

 

The Notes are not entitled to the benefit
of any sinking fund and are not subject to redemption at the option of the Holders. Articles 13 and 14 of the Base Indenture shall
not apply to the Notes.

 

Section 3.2 Regulatory Event Redemption.

 

(a) The Company may, at its option, redeem
the Notes, in whole but not in part, at a price equal to 100% of the principal amount of the Notes being redeemed plus interest
that is accrued and unpaid to but excluding the Redemption Date, upon the occurrence of a Tier 2

    	-5-

    	

    

Capital Event or a 1940 Act Event. Notice
of redemption will be delivered to Holders at least 10 but not more than 60 days before the Redemption Date.

 

(b) Prior to giving any notice to the
Holders pursuant to Section 3.2(a), the Company must deliver to the Trustee an Opinion of Counsel and an Officers’ Certificate
certifying that (i) a Tier 2 Capital Event or a 1940 Act Event has occurred and (ii) the Company is entitled to redeem the Notes
in accordance with Section 3.2 (a), upon which such Opinion of Counsel and Officers’ Certificate the Trustee may conclusively
rely.

 

(c) Any redemption of the Notes will be
subject to the prior approval of the Federal Reserve Board, to the extent that such approval is then required.

 

(d) In addition to the Company’s
right to redeem Notes as set forth above in this Section 3.2, the Company may at any time and from time to time purchase Notes
in open market transactions, tender offers or otherwise, subject to the prior approval of the Federal Reserve Board, to the extent
such approval is then required.

 

Section 3.3 [Reserved].

 

Section 3.4 Effect of Redemption.

 

Unless the Company defaults in the payment
of the Redemption Price, on and after the Redemption Date, (a) interest shall cease to accrue on the Notes immediately prior to
the close of business on the Redemption Date, (b) the Notes shall become due and payable at the Redemption Price and (c) the Notes
shall be void and all rights of the Holders in respect of the Notes shall terminate and lapse (other than the right to receive
the Redemption Price upon surrender of such Notes but without interest on such Redemption Price). Following the notice of a redemption,
neither the Company nor the Security Registrar shall be required to register the transfer of or exchange the Notes to be redeemed.
The redemption provisions of Sections 12.5 and 12.6 of the Base Indenture shall not apply to the Notes.

 

Section 3.5 Redemption Procedures.

 

One Business Day prior to the Redemption
Date, the Company shall deposit with the Paying Agent immediately available funds in an amount sufficient to pay, on the Redemption
Date, the aggregate Redemption Price for Notes being redeemed. If the Company gives an irrevocable notice of redemption with respect
to the Notes pursuant to Section 3.2 hereof in connection with an optional redemption, and the Company has paid to the Paying Agent
the Redemption Price of the Notes to be redeemed, then, on the Redemption Date, the Paying Agent shall irrevocably deposit such
funds with the Depository. The Company shall also give the Depository irrevocable instructions and authority to pay the Redemption
Price in immediately available funds to the Holders of beneficial interests in the Global Notes. If any Redemption Date is not
a Business Day, then the Redemption Price shall be payable on the next Business Day (and without any interest or other payment
in respect of any such delay). Interest to be paid on or before the Redemption Date for any Notes called for redemption shall be
payable to the Holders on the Regular Record Date for the related Interest Payment Dates. If any Notes called for redemption are
not so paid upon surrender thereof for redemption, the Redemption Price shall, until paid, bear interest from the Redemption Date
at the Coupon Rate. In exchange for the

    	-6-

    	

    

unredeemed portion of such surrendered Notes,
new Notes in an aggregate principal amount equal to the unredeemed portion of such surrendered Notes shall be issued.

 

Section 3.6 No Other Redemption.

 

Except as set forth in this Article 3, the
Notes shall not be redeemable by the Company prior to the Maturity Date.

 

ARTICLE 4

 

FORM OF NOTE

 

Section 4.1 Form of Note.

 

The Notes and the Authenticating Agent’s
Certificate of Authentication to be endorsed thereon are to be substantially in the forms attached as Exhibit A hereto,
with such changes therein as the officers of the Company executing the Notes (by manual or facsimile signature) may approve, such
approval to be conclusively evidenced by their execution thereof.

 

ARTICLE 5

 

COVENANTS

 

In addition to the covenants set forth in
Article 10 of the Base Indenture, the following covenants shall apply to any Outstanding Notes:

 

Section 5.1 Reports.

 

(a) Whether or not required by the rules
and regulations of the Commission and in lieu of Section 7.4 of the Base Indenture, so long as any Notes are Outstanding, the Company
shall furnish to the Holders or cause the Trustee (upon its receipt from the Company) to furnish to the Holders, within 30 days
after the Company is required to file the same with the Commission:

 

(i) all quarterly and annual
reports that the Company is required to file, or would be required to file with the Commission, on Forms 10-Q and 10-K if the Company
were required to file such reports; and

 

(ii) all current reports that
the Company is required to file, or would be required to file with the Commission, on Form 8-K if the Company were required to
file such reports;

 

provided that any such above information or reports filed
with the EDGAR system of the Commission (or any successor system) and available publicly on the Internet shall be deemed to be
furnished to the Holders of Notes.

 

(b) All such reports shall be prepared
in all material respects in accordance with all of the rules and regulations applicable to such reports. Each annual report on
Form 10-K shall

    	-7-

    	

    

include a report on the Company’s consolidated
financial statements by the Company’s independent registered public accounting firm. In addition, whether or not required
by the Commission, the Company shall file a copy of all of the reports referred to in Section 5.1(a)(i) and (ii) with the Commission
for public availability within the time periods specified in the Commission’s rules and regulations applicable to such reports
for the status of the filer that the Company would otherwise be if it were required to file reports with the Commission, subject
to extension as set forth in Rule 12b-25(b)(ii) under the Exchange Act (or any successor provision) (unless the Commission shall
not accept such a filing) and make such information available to securities analysts and prospective investors upon request. The
Company agrees that it shall not take any action that would cause the Commission not to accept such filings. If, notwithstanding
the foregoing, the Commission will not accept such filings for any reason, the Company will post the reports specified in Section
5.1(a) hereof on its publicly accessible website within the time periods that would apply if the Company were required to file
those reports with the Commission.

 

(c) If, and so long as, all of the Capital
Stock of the Company is beneficially owned, directly or indirectly, by a Person (the “Parent”) (i) whose corporate
family and corporate credit ratings are Investment Grade Ratings and (ii) that files reports with the Commission under Section
13(a) or 15(d) of the Exchange Act, the requirements in Section 5.1(a) shall be deemed satisfied by the filing by such Parent of
the reports specified in Section 5.1(a) hereof within the time periods specified therein.

 

ARTICLE 6

 

[RESERVED]

 

ARTICLE 7

 

MISCELLANEOUS

 

Section 7.1 Ratification of Indenture.

 

The Base Indenture, as supplemented by this
Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of this
Indenture in the manner and to the extent herein and therein provided.

 

Section 7.2 No Personal Liability of
Directors, Officers, Employees and Stockholders.

 

No director, officer, employee, incorporator
or stockholder of the Company, as such, will have any liability for any Obligation of the Company under the Notes or this Indenture
or for any claim based on, in respect of, or by reason of, such Obligations or their creation. Each Holder of Notes by accepting
a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.
The waiver may not be effective to waive liabilities under the federal securities laws.

    	-8-

    	

    

Section 7.3 Trustee and Agent Not Responsible
for Recitals.

 

The recitals herein contained are made by
the Company and not by the Trustee or Agent, and the Trustee and Agent assume no responsibility for the correctness thereof. The
Trustee and Agent make no representation as to the validity or sufficiency of this Supplemental Indenture.

 

Section 7.4 New York Law To Govern.

 

THIS SUPPLEMENTAL INDENTURE AND EACH NOTE
SHALL BE DEEMED TO BE CONTRACTS MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE.

 

Section 7.5 Separability.

 

In case any one or more of the provisions
contained in this Supplemental Indenture or in the Notes shall for any reason be held to be invalid, illegal or unenforceable in
any respect, then, to the extent permitted by law, such invalidity, illegality or unenforceability shall not affect any other provisions
of this Supplemental Indenture or of the Notes, but this Supplemental Indenture and the Notes shall be construed as if such invalid
or illegal or unenforceable provision had never been contained herein or therein.

 

Section 7.6 Counterparts.

 

This Supplemental Indenture may be executed
in any number of counterparts each of which shall be an original, but such counterparts shall together constitute but one and the
same instrument. Delivery of an executed counterpart of this Supplemental Indenture by telefacsimile or by any electronic imaging,
electronic mail or other similar means shall be effective as delivery of a manually executed counterpart of this Supplemental Indenture.

 

[Signature pages follow]

    	-9-

    	

    

IN WITNESS WHEREOF, the parties hereto have
caused this Supplemental Indenture to be duly executed, as of the day and year first written above.

 

	 	Wilmington
    Trust, National Association, 
 as Trustee
	 	 	 
	 	By:	/s/ Shawn Goffinet
	 	 	Name:  Shawn Goffinet
	 	 	Title:  Assistant Vice President

 

[First Supplemental Indenture]

    	 

    	

    

	 	Deutsche
    Bank Trust Company Americas,
 as Paying Agent, Security Registrar and Authenticating
    Agent
	 	 	 
	 	By:	Deutsche Bank National Trust Company
	 	 	 
	 	By:	/s/ Kathryn Fischer
	 	 	Name: Kathryn Fischer
	 	 	Title:   Assistant Vice President
	 	 	 
	 	By:	/s/ Jeffrey Schoenfeld
	 	 	Name: Jeffrey Schoenfeld
	 	 	Title:   Vice President

 

[First Supplemental Indenture]

    	 

    	

    

	 	CIT GROUP INC.
	 	 	 
	 	By:	/s/ Michael J. McConnell
	 	 	Name: Michael J. McConnell
	 	 	Title:   Director, Treasury
	 	 	 

[First Supplemental Indenture]

    	 

    	

    

EXHIBIT A

 

[FORM OF FACE OF SECURITY]

 

[Global Securities Legend]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK,
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED
TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS
OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF.

 

[Definitive Securities
Legend]

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER
WILL DELIVER TO THE SECURITY REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY
REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

Exhibit A-1

    	 

    	

    

CUSIP No. 125581 GX0

ISIN No. US125581GX07

 

	No.	 	$	 

 

6.125% Subordinated Notes due 2028 (the
“Notes”)

 

CIT GROUP INC., a Delaware corporation, promises
to pay to Cede & Co., or registered assigns, the principal sum of $[                  ] Dollars on March 9, 2028.

 

Interest Payment Dates: March 9 and September
9.

 

Record Dates: February 25 and August 25.

 

Exhibit A-2

    	 

    	

    

Additional provisions of this Note are set
forth on the other side of this Note.

 

	Dated:	 	 	 	 
	 	 	 	 	 
	 	 	 	CIT GROUP INC.
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	Name:
	 	 	 	 	Title:
	Attest: 	 	 	 	 
	 	Name:	 	 	
	 	Title:	 	 	
	 	 	 	 	 

Exhibit A-3

    	 

    	

    

CERTIFICATE OF AUTHENTICATION

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

as Authenticating Agent

 

By: Deutsche Bank National
Trust Company

 

	By:	 	 

Authorized Signatory

 

Exhibit A-4

    	 

    	

    

[FORM OF REVERSE SIDE OF SECURITY]

 

1. Interest

 

CIT GROUP INC., a Delaware corporation (such
corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”),
promises to pay interest on the principal amount of this Note at the rate per annum shown above. The Company shall pay interest
semiannually on March 9 and September 9 of each year, commencing September 9, 2018. Interest on the Notes shall accrue from the
most recent date to which interest has been paid or, if no interest has been paid, from March 9, 2018. Interest shall be computed
on the basis of a 360-day year of twelve 30-day months.

 

2. Method of Payment

 

The Company shall pay interest on the Notes
(except defaulted interest) to the Persons who are registered holders of Notes at the close of business on the February 25 and
August 25 next preceding the interest payment date even if Notes are canceled after the record date and on or before the interest
payment date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Company shall pay principal and
interest in money of the United States that at the time of payment is legal tender for payment of public and private debts. Payments
in respect of the Notes represented by a Global Note (including principal, premium, if any, and interest) shall be made by wire
transfer of immediately available funds to the accounts specified by The Depository Trust Company. The Company shall make all payments
in respect of a certificated Note (including principal, premium, if any, and interest) by mailing a check to the registered address
of each Holder thereof; provided, however , that payments on a certificated Note shall be made by wire transfer to
a U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects payment by wire transfer by
giving written notice to the Paying Agent to such effect designating such account no later than 30 days immediately preceding the
relevant due date for payment (or such other date as Deutsche Bank Trust Company Americas (the “Agent”) may
accept in its discretion).

 

3. Paving Agent and Security Registrar

 

Initially, the Agent shall act as Paying
Agent and Security Registrar. The Company may appoint and change any Paying Agent, Security Registrar or co-registrar without notice.
The Company or any wholly owned Subsidiary may act as Paying Agent, Security Registrar or co-registrar.

 

4. Indenture

 

The Company issued the Notes under an Indenture
(the “Base Indenture”) dated as of March 9, 2018 and a First Supplemental Indenture (the “Supplemental
Indenture” and together with the Base Indenture, the “Indenture”) dated as of March 9, 2018, among
the Company, the Trustee and the Agent. The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the
Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto
in the Indenture. The Notes are subject to

 

Exhibit A-5

    	 

    	

    

all such terms, and Holders are referred to
the Indenture and the Act for a statement of those terms.

 

The Notes are unsecured obligations of the
Company. The Company shall be entitled to issue Additional Securities pursuant to Section 3.12 of the Base Indenture. The Notes
issued on the Issue Date and any Additional Securities shall be treated as a single class for all purposes under the Indenture.

 

5. Regulatory Event Redemption

 

The Company may, at its option, redeem the
Notes, in whole but not in part, at a price equal to 100% of the principal amount of the Notes being redeemed plus interest that
is accrued and unpaid to but excluding the Redemption Date upon the occurrence of a Tier 2 Capital Event or a 1940 Act Event, in
accordance with Section 3.2 of the Supplemental Indenture.

 

6. [Reserved.]

 

7. [Reserved]

 

8. Denominations; Transfer; Exchange

 

The Notes are in registered form without
coupons in denominations of $2,000 principal amount and integral multiples of $1,000 in excess thereof. A Holder may transfer or
exchange Notes in accordance with the Indenture. The Security Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Security Registrar
need not register the transfer of or exchange any Notes selected for redemption (except, in the case of a Note to be redeemed in
part, the portion of the Note not to be redeemed) or any Notes for a period of 15 days before a selection of Notes to be redeemed
or 15 days before an interest payment date.

 

9.  Persons Deemed Owners

 

The registered Holder of this Note may be
treated as the owner of it for all purposes.

 

10. Discharge

 

The Company may discharge its obligations
under the Notes and the Indenture in accordance with Article 4 of the Base Indenture.

 

11. Defaults and Remedies

 

The Events of Default relating to the Notes
are defined in Section 5.1 of the Base Indenture. Upon the occurrence of an Event of Default, the rights and obligations of the
Company and the Holders shall be as set forth in the Indenture.

 

Exhibit A-6

    	 

    	

    

12. No Recourse Against Others

 

No director, officer, employee, incorporator
or stockholder of the Company, as such, will have any liability for any obligations of the Company under the Notes or the Indenture
or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each holder of Notes by accepting
a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.
The waiver may not be effective to waive liabilities under the federal securities laws.

 

13. Authentication

 

This Note shall not be valid until an authorized
signatory of the Authenticating Agent manually signs the certificate of authentication on the other side of this Note.

 

14. Abbreviations

 

Customary abbreviations may be used in the
name of a Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants
with rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

 

15. CUSIP Numbers

 

The Company has caused CUSIP numbers to be
printed on the Notes and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption
and reliance may be placed only on the other identification numbers placed thereon.

 

16. Governing Law

 

THIS NOTE SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE.

 

Exhibit A-7

    	 

    	

    

ASSIGNMENT FORM

 

	To assign this Note, fill in the form below: 	 

 

 

	I or we assign and transfer this Note to 	 
	 	
        (Print or type assignee’s name, address and zip code)

         

        

(Insert assignee’s
sec. sec. or tax I.D. No.)

 

and irrevocably appoint ____________________________________
agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.

 

	Date:	 	Your Signature:	 
	 	 	 	Sign exactly as your name appears on the other side of this Security.

 

Exhibit A-8

    	 

    	

    

[TO BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
NOTE

 

The following increases or decreases in this Global Note have
been made:

 

	Date of
 Exchange

	 	Amount of decrease 

in Principal amount 

of this Global
 Security	 	Amount of increase 

in Principal amount 

of this Global
 Security	 	Principal amount
of 

this Global Note 

following such
 decrease or
 increase	 	Signature of
 authorized officer of
 Trustee or Securities
 Custodian

 

Exhibit A-9QUEST
SOLUTION INC.

 

2018
EQUITY INCENTIVE PLAN

 

	 	1.	Purpose
    of the Plan.

 

This
2018 Equity Incentive Plan (the “Plan”) is intended as an incentive, to retain in the employ of and as directors,
officers, consultants, advisors and employees to Quest Solution Inc., a Delaware corporation (the “Company”),
and any Subsidiary of the Company, within the meaning of Section 424(f) of the United States Internal Revenue Code of 1986, as
amended (the “Code”), persons of training, experience and ability, to attract new directors, officers, consultants,
advisors and employees whose services are considered valuable, to encourage the sense of proprietorship and to stimulate the active
interest of such persons in the development and financial success of the Company and its Subsidiaries.

 

It
is further intended that certain options granted pursuant to the Plan shall constitute incentive stock options within the meaning
of Section 422 of the Code (the “Incentive Options”) while certain other options granted pursuant to the Plan
shall be nonqualified stock options (the “Nonqualified Options”). Incentive Options and Nonqualified Options
are hereinafter referred to collectively as “Options.”

 

The
Company intends that the Plan meet the requirements of Rule 16b-3 (“Rule 16b-3”) promulgated under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and that transactions of the type specified in subparagraphs
(c) to (f) inclusive of Rule 16b-3 by officers and directors of the Company pursuant to the Plan will be exempt from the operation
of Section 16(b) of the Exchange Act. Further, the Plan is intended to satisfy the performance-based compensation exception to
the limitation on the Company’s tax deductions imposed by Section 162(m) of the Code, as recently amended, with respect
to those Options for which qualification for such exception is intended. In all cases, the terms, provisions, conditions and limitations
of the Plan shall be construed and interpreted consistent with the Company’s intent as stated in this Section 1.

 

	 	2.	Administration
    of the Plan.

 

The
authority to manage the operation of and administer the Plan shall be vested in the Board of Directors of the Company (the “Board”)
or a Committee (the “Committee”) consisting of two or more directors who are (i) “Independent Directors”
(as such term is defined under the rules of the OTCQX U.S. Stock Market), (ii) “Non-Employee Directors” (as such term
is defined in Rule 16b-3) and (iii) “Outside Directors” (as such term is defined in Section 162(m) of the Code), which
shall serve at the pleasure of the Board. The Committee, subject to Sections 3, 5 and 6 hereof, shall have full power and authority
to designate recipients of Options and restricted stock (“Restricted Stock”), and to determine the terms and
conditions of the respective Option and Restricted Stock agreements (which need not be identical) and to interpret the provisions
and supervise the administration of the Plan. The Committee shall have the authority, without limitation, to designate which Options
granted under the Plan shall be Incentive Options and which shall be Nonqualified Options. To the extent any Option does not qualify
as an Incentive Option, it shall constitute a separate Nonqualified Option.

 

Subject
to the provisions of the Plan, the Committee shall interpret the Plan and all Options and Restricted Stock (the “Securities”)
granted under the Plan, shall make such rules as it deems necessary for the proper administration of the Plan, shall make all
other determinations necessary or advisable for the administration of the Plan and shall correct any defects or supply any omission
or reconcile any inconsistency in the Plan or in any Securities granted under the Plan in the manner and to the extent that the
Committee deems desirable to carry into effect the Plan or any Securities. The act or determination of a majority of the Committee
shall be the act or determination of the Committee and any decision reduced to writing and signed by all of the members of the
Committee shall be fully effective as if it had been made by a majority of the Committee at a meeting duly held for such purpose.
Subject to the provisions of the Plan, any action taken or determination made by the Committee pursuant to this and the other
Sections of the Plan shall be conclusive on all parties.

 

    	 

     

    

 

In
the event that for any reason the Committee is unable to act or if the Committee at the time of any grant, award or other acquisition
under the Plan does not consist of two or more Non-Employee Directors, or if there shall be no such Committee, or if the Board
otherwise determines to administer the Plan, then the Plan shall be administered by the Board, and references herein to the Committee
(except in the proviso to this sentence) shall be deemed to be references to the Board, and any such grant, award or other acquisition
may be approved or ratified in any other manner contemplated by subparagraph (d) of Rule 16b-3; provided, however,
that grants to the Company’s Chief Executive Officer or to any of the Company’s other four most highly compensated
officers that are intended to qualify as performance-based compensation under Section 162(m) of the Code may only be granted by
the Committee.

 

	 	3.	Designation
    of Optionees and Grantees.

 

The
persons eligible for participation in the Plan as recipients of Options (the “Optionees”) or Restricted Stock
(the “Grantees” and together with Optionees, the “Participants”) shall include directors,
officers and employees of, and consultants and advisors to, the Company or any Subsidiary; provided that Incentive Options may
only be granted to employees of the Company and any Subsidiary. In selecting Participants, and in determining the number of shares
to be covered by each Option or award of Restricted Stock granted to Participants, the Committee may consider any factors it deems
relevant, including, without limitation, the office or position held by the Participant or the Participant’s relationship
to the Company, the Participant’s degree of responsibility for and contribution to the growth and success of the Company
or any Subsidiary, the Participant’s length of service, promotions and potential. A Participant who has been granted an
Option or Restricted Stock hereunder may be granted an additional Option or Options, or Restricted Stock if the Committee shall
so determine.

 

	 	4.	Stock
    Reserved for the Plan.

 

Subject
to adjustment as provided in Section 8 hereof, a total of 10,000,000 shares of the Company’s common stock, par value $0.001
per share (the “Common Stock”), shall be subject to the Plan. The shares of Common Stock subject to the Plan
shall consist of unissued shares, treasury shares or previously issued shares held by any Subsidiary of the Company, and such
number of shares of Common Stock shall be and is hereby reserved for such purpose. Any of such shares of Common Stock that may
remain unissued and that are not subject to outstanding Options at the termination of the Plan shall cease to be reserved for
the purposes of the Plan, but until termination of the Plan the Company shall at all times reserve a sufficient number of shares
of Common Stock to meet the requirements of the Plan. Should any Securities expire or be canceled prior to its exercise, satisfaction
of conditions or vesting in full, as applicable, or should the number of shares of Common Stock to be delivered upon the exercise
or vesting in full of an Option or award of Restricted Stock be reduced for any reason, the shares of Common Stock theretofore
subject to such Option or Restricted Stock, as applicable, may be subject to future Options or Restricted Stock under the Plan,
except where such reissuance is inconsistent with the provisions of Section 162(m) of the Code where qualification as performance-based
compensation under Section 162(m) of the Code is intended.

 

	 	5.	Terms
    and Conditions of Options.

 

Options
granted under the Plan shall be subject to the following conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable:

 

(a)
Option Price. The purchase price of each share of Common Stock purchasable under an Incentive Option shall be determined
by the Committee at the time of grant, but shall not be less than 100% of the Fair Market Value (as defined below) of such share
of Common Stock on the date the Option is granted; provided, however, that with respect to an Optionee who, at the
time such Incentive Option is granted, owns (within the meaning of Section 424(d) of the Code) more than 10% of the total combined
voting power of all classes of stock of the Company or of any Subsidiary, the purchase price per share of Common Stock shall be
at least 110% of the Fair Market Value per share of Common Stock on the date of grant. The purchase price of each share of Common
Stock purchasable under a Nonqualified Option shall not be less than 100% of the Fair Market Value of such share of Common Stock
on the date the Option is granted. The exercise price for each Option shall be subject to adjustment as provided in Section 8
below. “Fair Market Value” means the closing price on the final trading day immediately prior to the grant
date of the Common Stock on the OTCQX U.S. or other principal securities exchange or OTCQB on which shares of Common Stock are
listed (if the shares of Common Stock are so listed), or, if not so listed, the mean between the closing bid and asked prices
of publicly traded shares of Common Stock in the over the counter market, or, if such bid and asked prices shall not be available,
as reported by any nationally recognized quotation service selected by the Company, or as determined by the Committee in a manner
consistent with the provisions of the Code. Anything in this Section 5(a) to the contrary notwithstanding, in no event shall the
purchase price of a share of Common Stock be less than the minimum price permitted under the rules and policies of any national
securities exchange on which the shares of Common Stock are listed.

 

    	- 2 - 

     

    

 

(b)
Option Term. The term of each Option shall be fixed by the Committee, but no Option shall be exercisable more than ten
years after the date such Option is granted and in the case of an Incentive Option granted to an Optionee who, at the time such
Incentive Option is granted, owns (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting
power of all classes of stock of the Company or of any Subsidiary, no such Incentive Option shall be exercisable more than five
years after the date such Incentive Option is granted.

 

(c)
Exercisability. Subject to Section 5(j) hereof, Options shall be exercisable at such time or times and subject to such
terms and conditions as shall be determined by the Committee at the time of grant; provided, however, that in the
absence of any Option vesting periods designated by the Committee at the time of grant, Options shall vest and become exercisable
as to one-third of the total number of shares subject to the Option on each of the first, second and third anniversaries of the
date of grant; and provided further that no Options shall be exercisable until such time as any vesting limitation required by
Section 16 of the Exchange Act, and related rules, shall be satisfied if such limitation shall be required for continued validity
of the exemption provided under Rule 16b-3(d)(3).

 

Upon
the occurrence of a “Change in Control” (as hereinafter defined), the Committee may accelerate the vesting and exercisability
of outstanding Options, in whole or in part, as determined by the Committee in its sole discretion. In its sole discretion, the
Committee may also determine that, upon the occurrence of a Change in Control, each outstanding Option shall terminate within
a specified number of days after notice to the Optionee thereunder, and each such Optionee shall receive, with respect to each
share of Common Stock subject to such Option, an amount equal to the excess of the Fair Market Value of such shares immediately
prior to such Change in Control over the exercise price per share of such Option; such amount shall be payable in cash, in one
or more kinds of property (including the property, if any, payable in the transaction) or a combination thereof, as the Committee
shall determine in its sole discretion.

 

For
purposes of the Plan, unless otherwise defined in an employment agreement between the Company and the relevant Optionee, a Change
in Control shall be deemed to have occurred if:

 

(i)
a tender offer (or series of related offers) shall be made and consummated for the ownership of 50% or more of the outstanding
voting securities of the Company, unless as a result of such tender offer more than 50% of the outstanding voting securities of
the surviving or resulting corporation shall be owned in the aggregate by the stockholders of the Company (as of the time immediately
prior to the commencement of such offer), any employee benefit plan of the Company or its Subsidiaries, and their affiliates;

 

(ii)
the Company shall be merged or consolidated with another corporation, unless as a result of such merger or consolidation more
than 50% of the outstanding voting securities of the surviving or resulting corporation shall be owned in the aggregate by the
stockholders of the Company (as of the time immediately prior to such transaction), any employee benefit plan of the Company or
its Subsidiaries, and their affiliates;

 

(iii)
the Company shall sell substantially all of its assets to another corporation that is not wholly owned by the Company, unless
as a result of such sale more than 50% of such assets shall be owned in the aggregate by the stockholders of the Company (as of
the time immediately prior to such transaction), any employee benefit plan of the Company or its Subsidiaries and their affiliates;
or

 

    	- 3 - 

     

    

 

(iv)
a Person (as defined below) shall acquire 50% or more of the outstanding voting securities of the Company (whether directly, indirectly,
beneficially or of record), unless as a result of such acquisition more than 50% of the outstanding voting securities of the surviving
or resulting corporation shall be owned in the aggregate by the stockholders of the Company (as of the time immediately prior
to the first acquisition of such securities by such Person), any employee benefit plan of the Company or its Subsidiaries, and
their affiliates.

 

Notwithstanding
the foregoing, if Change of Control is defined in an employment agreement between the Company and the relevant Optionee, then,
with respect to such Optionee, Change of Control shall have the meaning ascribed to it in such employment agreement.

 

For
purposes of this Section 5(c), ownership of voting securities shall take into account and shall include ownership as determined
by applying the provisions of Rule 13d-3(d)(I)(i) (as in effect on the date hereof) under the Exchange Act. In addition, for such
purposes, “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections
13(d) and 14(d) thereof; provided, however, that a Person shall not include (A) the Company or any of its Subsidiaries;
(B) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries;
(C) an underwriter temporarily holding securities pursuant to an offering of such securities; or (D) a corporation owned, directly
or indirectly, by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company.

 

(d)
Method of Exercise. Options to the extent then exercisable may be exercised in whole or in part at any time during the
option period, by giving written notice to the Company specifying the number of shares of Common Stock to be purchased, accompanied
by payment in full of the purchase price, in cash, or by check or such other instrument as may be acceptable to the Committee.
As determined by the Committee, in its sole discretion, at or after grant, payment in full or in part may be made at the election
of the Optionee (i) in the form of Common Stock owned by the Optionee (based on the Fair Market Value of the Common Stock which
is not the subject of any pledge or security interest, (ii) in the form of shares of Common Stock withheld by the Company from
the shares of Common Stock otherwise to be received with such withheld shares of Common Stock having a Fair Market Value equal
to the exercise price of the Option, or (iii) by a combination of the foregoing, such Fair Market Value determined by applying
the principles set forth in Section 5(a), provided that the combined value of all cash and cash equivalents and the Fair Market
Value of any shares surrendered to the Company is at least equal to such exercise price and except with respect to (ii) above,
such method of payment will not cause a disqualifying disposition of all or a portion of the Common Stock received upon exercise
of an Incentive Option. An Optionee shall have the right to dividends and other rights of a stockholder with respect to shares
of Common Stock purchased upon exercise of an Option at such time as the Optionee (i) has given written notice of exercise and
has paid in full for such shares, and (ii) has satisfied such conditions that may be imposed by the Company with respect to the
withholding of taxes.

 

(e)
Non-transferability of Options. Options are not transferable and may be exercised solely by the Optionee during his lifetime
or after his death by the person or persons entitled thereto under his will or the laws of descent and distribution. The Committee,
in its sole discretion, may permit a transfer of a Nonqualified Option to (i) a trust for the benefit of the Optionee, (ii) a
member of the Optionee’s immediate family (or a trust for his or her benefit) or (iii) pursuant to a domestic relations
order. Any attempt to transfer, assign, pledge or otherwise dispose of, or to subject to execution, attachment or similar process,
any Option contrary to the provisions hereof shall be void and ineffective and shall give no right to the purported transferee.

 

(f)
Termination by Death. Unless otherwise determined by the Committee, if any Optionee’s employment with or service
to the Company or any Subsidiary terminates by reason of death, the Option may thereafter be exercised, to the extent then exercisable
(or on such accelerated basis as the Committee shall determine at or after grant), by the legal representative of the estate or
by the legatee of the Optionee under the will of the Optionee, for a period of one (1) year after the date of such death (or,
if later, such time as the Option may be exercised pursuant to Section 14(d) hereof) or until the expiration of the stated term
of such Option as provided under the Plan, whichever period is shorter.

 

    	- 4 - 

     

    

 

(g)
Termination by Reason of Disability. Unless otherwise determined by the Committee, if any Optionee’s employment with
or service to the Company or any Subsidiary terminates by reason of Disability (as defined below), then any Option held by such
Optionee may thereafter be exercised, to the extent it was exercisable at the time of termination due to Disability (or on such
accelerated basis as the Committee shall determine at or after grant), but may not be exercised after ninety (90) days after the
date of such termination of employment or service (or, if later, such time as the Option may be exercised pursuant to Section
14(d) hereof) or the expiration of the stated term of such Option, whichever period is shorter; provided, however,
that, if the Optionee dies within such ninety (90) day period, any unexercised Option held by such Optionee shall thereafter be
exercisable to the extent to which it was exercisable at the time of death for a period of one (1) year after the date of such
death (or, if later, such time as the Option may be exercised pursuant to Section 14(d) hereof) or for the stated term of such
Option, whichever period is shorter. “Disability” shall mean an Optionee’s total and permanent disability; provided,
that if Disability is defined in an employment agreement between the Company and the relevant Optionee, then, with respect to
such Optionee, Disability shall have the meaning ascribed to it in such employment agreement

 

(h)
Termination by Reason of Retirement. Unless otherwise determined by the Committee, if any Optionee’s employment with
or service to the Company or any Subsidiary terminates by reason of Normal or Early Retirement (as such terms are defined below),
any Option held by such Optionee may thereafter be exercised to the extent it was exercisable at the time of such Retirement (or
on such accelerated basis as the Committee shall determine at or after grant), but may not be exercised after ninety (90) days
after the date of such termination of employment or service (or, if later, such time as the Option may be exercised pursuant to
Section 14(d) hereof) or the expiration of the stated term of such Option, whichever date is earlier; provided, however,
that, if the Optionee dies within such ninety (90) day period, any unexercised Option held by such Optionee shall thereafter be
exercisable, to the extent to which it was exercisable at the time of death, for a period of one (1) year after the date of such
death (or, if later, such time as the Option may be exercised pursuant to Section 14(d) hereof) or for the stated term of such
Option, whichever period is shorter.

 

For
purposes of this paragraph (h), “Normal Retirement” shall mean retirement from active employment with the Company
or any Subsidiary on or after the normal retirement date specified in the applicable Company or Subsidiary pension plan or if
no such pension plan, age 65, and “Early Retirement” shall mean retirement from active employment with the
Company or any Subsidiary pursuant to the early retirement provisions of the applicable Company or Subsidiary pension plan or
if no such pension plan, age 55.

 

(i)
Other Terminations. Unless otherwise determined by the Committee upon grant, if any Optionee’s employment with or
service to the Company or any Subsidiary is terminated by such Optionee for any reason other than death, Disability, Normal or
Early Retirement or Good Reason (as defined below), the Option shall thereupon terminate, except that the portion of any Option
that was exercisable on the date of such termination of employment or service may be exercised for the lesser of ninety (90) days
after the date of termination (or, if later, such time as the Option may be exercised pursuant to Section 14(d) hereof) or the
balance of such Option’s term, which ever period is shorter. The transfer of an Optionee from the employ of or service to
the Company to the employ of or service to a Subsidiary, or vice versa, or from one Subsidiary to another, shall not be deemed
to constitute a termination of employment or service for purposes of the Plan.

 

(i)
In the event that the Optionee’s employment or service with the Company or any Subsidiary is terminated by the Company or
such Subsidiary for “cause” any unexercised portion of any Option shall immediately terminate in its entirety. For
purposes hereof, unless otherwise defined in an employment agreement between the Company and the relevant Optionee, “Cause”
shall exist upon a good-faith determination by the Board, following a hearing before the Board at which an Optionee was represented
by counsel and given an opportunity to be heard, that such Optionee has been accused of fraud, dishonesty or act detrimental to
the interests of the Company or any Subsidiary of Company or that such Optionee has been accused of or convicted of an act of
willful and material embezzlement or fraud against the Company or of a felony under any state or federal statute; provided,
however, that it is specifically understood that “Cause” shall not include any act of commission or omission
in the good-faith exercise of such Optionee’s business judgment as a director, officer or employee of the Company, as the
case may be, or upon the advice of counsel to the Company. Notwithstanding the foregoing, if Cause is defined in an employment
agreement between the Company and the relevant Optionee, then, with respect to such Optionee, Cause shall have the meaning ascribed
to it in such employment agreement.

 

    	- 5 - 

     

    

 

(ii)
In the event that an Optionee is removed as a director, officer or employee by the Company at any time other than for “Cause”
or resigns as a director, officer or employee for “Good Reason” the Option granted to such Optionee may be exercised
by the Optionee, to the extent the Option was exercisable on the date such Optionee ceases to be a director, officer or employee.
Such Option may be exercised at any time within one (1) year after the date the Optionee ceases to be a director, officer or employee
(or, if later, such time as the Option may be exercised pursuant to Section 14(d) hereof), or the date on which the Option otherwise
expires by its terms; whichever period is shorter, at which time the Option shall terminate; provided, however,
if the Optionee dies before the Options terminate and are no longer exercisable, the terms and provisions of Section 5(f) shall
control. For purposes of this Section 5(i), and unless otherwise defined in an employment agreement between the Company and the
relevant Optionee, Good Reason shall exist upon the occurrence of the following:

 

	 	(A)
    	the
    assignment to Optionee of any duties inconsistent with the position in the Company that Optionee held immediately prior to
    the assignment;
	 	 	 
	 	(B)
    	a
    Change of Control resulting in a significant adverse alteration in the status or conditions of Optionee’s participation
    with the Company or other nature of Optionee’s responsibilities from those in effect prior to such Change of Control,
    including any significant alteration in Optionee’s responsibilities immediately prior to such Change in Control; and
	 	 	 
	 	(C)
    	the
    failure by the Company to continue to provide Optionee with benefits substantially similar to those enjoyed by Optionee prior
    to such failure.

 

Notwithstanding
the foregoing, if Good Reason is defined in an employment agreement between the Company and the relevant Optionee, then, with
respect to such Optionee, Good Reason shall have the meaning ascribed to it in such employment agreement.

 

(j)
Limit on Value of Incentive Option. The aggregate Fair Market Value, determined as of the date the Incentive Option is
granted, of Common Stock for which Incentive Options are exercisable for the first time by any Optionee during any calendar year
under the Plan (and/or any other stock option plans of the Company or any Subsidiary) shall not exceed $100,000.

 

	 	6.	Terms
    and Conditions of Restricted Stock.

 

Restricted
Stock may be granted under this Plan aside from, or in association with, any other award and shall be subject to the following
conditions and shall contain such additional terms and conditions (including provisions relating to the acceleration of vesting
of Restricted Stock upon a Change of Control), not inconsistent with the terms of the Plan, as the Committee shall deem desirable:

 

(a)
Grantee rights. A Grantee shall have no rights to an award of Restricted Stock unless and until Grantee accepts the award
within the period prescribed by the Committee and, if the Committee shall deem desirable, makes payment to the Company in cash,
or by check or such other instrument as may be acceptable to the Committee. After acceptance and issuance of a certificate or
certificates, as provided for below, the Grantee shall have the rights of a stockholder with respect to Restricted Stock subject
to the non-transferability and forfeiture restrictions described in Section 6(d) below.

 

(b)
Issuance of Certificates. The Company shall issue in the Grantee’s name a certificate or certificates for the shares
of Common Stock associated with the award promptly after the Grantee accepts such award.

 

(c)
Delivery of Certificates. Unless otherwise provided, any certificate or certificates issued evidencing shares of Restricted
Stock shall not be delivered to the Grantee until such shares are free of any restrictions specified by the Committee at the time
of grant.

 

    	- 6 - 

     

    

 

(d)
Forfeitability, Non-transferability of Restricted Stock. Shares of Restricted Stock are forfeitable until the terms of
the Restricted Stock grant have been satisfied. Shares of Restricted Stock are not transferable until the date on which the Committee
has specified such restrictions have lapsed. Unless otherwise provided by the Committee at or after grant, distributions in the
form of dividends or otherwise of additional shares or property in respect of shares of Restricted Stock shall be subject to the
same restrictions as such shares of Restricted Stock.

 

(e)
Change of Control. Upon the occurrence of a Change in Control as defined in Section 5(c), the Committee may accelerate
the vesting of outstanding Restricted Stock, in whole or in part, as determined by the Committee, in its sole discretion.

 

(f)
Termination of Employment. Unless otherwise determined by the Committee at or after grant, in the event the Grantee ceases
to be an employee or otherwise associated with the Company for any other reason, all shares of Restricted Stock theretofore awarded
to him which are still subject to restrictions shall be forfeited and the Company shall have the right to complete the blank stock
power. The Committee may provide (on or after grant) that restrictions or forfeiture conditions relating to shares of Restricted
Stock will be waived in whole or in part in the event of termination resulting from specified causes, and the Committee may in
other cases waive in whole or in part restrictions or forfeiture conditions relating to Restricted Stock.

 

	 	7.	Term
    of Plan.

 

No
Securities shall be granted pursuant to the Plan on or after the date which is ten years from the effective date of the Plan,
but Options and awards of Restricted Stock theretofore granted may extend beyond that date.

 

	 	8.	Capital
    Change of the Company.

 

In
the event of any merger, reorganization, consolidation, recapitalization, stock dividend, or other change in corporate structure
affecting the Common Stock of the Company, the Committee shall make an appropriate and equitable adjustment in the number and
kind of shares reserved for issuance under the Plan and (A) in the number and option price of shares subject to outstanding Options
granted under the Plan, to the end that after such event each Optionee’s proportionate interest shall be maintained (to
the extent possible) as immediately before the occurrence of such event. The Committee shall, to the extent feasible, make such
other adjustments as may be required under the tax laws so that any Incentive Options previously granted shall not be deemed modified
within the meaning of Section 424(h) of the Code. Appropriate adjustments shall also be made in the case of outstanding Restricted
Stock granted under the Plan.

 

The
adjustments described above will be made only to the extent consistent with continued qualification of the Option under Section
422 of the Code (in the case of an Incentive Option) and Section 409A of the Code.

 

	 	9.	Purchase
    for Investment/Conditions.

 

Unless
the Options and shares covered by the Plan have been registered under the Securities Act of 1933, as amended (the “Securities
Act”), or the Company has determined that such registration is unnecessary, each person exercising or receiving Securities
under the Plan may be required by the Company to give a representation in writing that he is acquiring the securities for his
own account for investment and not with a view to, or for sale in connection with, the distribution of any part thereof. The Committee
may impose any additional or further restrictions on awards of Securities as shall be determined by the Committee at the time
of award.

 

	 	10.	Taxes.

 

(a)
The Company may make such provisions as it may deem appropriate, consistent with applicable law, in connection with any Securities
granted under the Plan with respect to the withholding of any taxes (including income or employment taxes) or any other tax matters.

 

    	- 7 - 

     

    

 

(b)
If any Grantee, in connection with the acquisition of Restricted Stock, makes the election permitted under Section 83(b) of the
Code (that is, an election to include in gross income in the year of transfer the amounts specified in Section 83(b)), such Grantee
shall notify the Company of the election with the Internal Revenue Service pursuant to regulations issued under the authority
of Code Section 83(b).

 

(c)
If any Grantee shall make any disposition of shares of Common Stock issued pursuant to the exercise of an Incentive Option under
the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions), such Grantee shall
notify the Company of such disposition within ten (10) days hereof.

 

	 	11.	Effective
    Date of Plan.

 

The
Plan shall be effective on March 5, 2018; provided, however, that the Plan must subsequently be approved by majority vote of the
Company’s stockholders in accordance with the rules and regulations of the OTCQX U.S. no later than December 31, 2018.

 

	 	12.	Amendment
    and Termination.

 

The
Board may amend, suspend, or terminate the Plan, except that no amendment shall be made that would impair the rights of any Participant
under Securities theretofore granted without the Participant’s consent, and except that no amendment shall be made which,
without the approval of the stockholders of the Company would:

 

(a)
materially increase the number of shares that may be issued under the Plan, except as is provided in Section 8;

 

(b)
materially increase the benefits accruing to the Participants under the Plan;

 

(c)
materially modify the requirements as to eligibility for participation in the Plan;

 

(d)
decrease the exercise price of an Incentive Option to less than 100% of the Fair Market Value per share of Common Stock on the
date of grant thereof or the exercise price of a Nonqualified Option to less than 100% of the Fair Market Value per share of Common
Stock on the date of grant thereof;

 

(e)
extend the term of any Option beyond that provided for in Section 5(b);

 

(f)
except as otherwise provided in Sections 5(d) and 8 hereof, reduce the exercise price of outstanding Options or effect repricing
through cancellations and re-grants of new Options;

 

(g)
increase the number of shares of Common Stock to be issued or issuable under the Plan to an amount that is equal to or in excess
of 19.99% of the number of shares of Common Stock outstanding before the issuance of the stock or securities; or

 

(h)
otherwise require stockholder approval pursuant to the rules and regulations of the OTCQB.

 

Subject
to the forgoing, the Committee may amend the terms of any Option theretofore granted, prospectively or retrospectively, but no
such amendment shall impair the rights of any Optionee without the Optionee’s consent.

 

It
is the intention of the Board that the Plan comply strictly with the provisions of Section 409A of the Code and Treasury Regulations
and other Internal Revenue Service guidance promulgated thereunder (the “Section 409A Rules”) and the Committee
shall exercise its discretion in granting awards hereunder (and the terms of such awards), accordingly. The Plan and any grant
of an award hereunder may be amended from time to time (without, in the case of an award, the consent of the Participant) as may
be necessary or appropriate to comply with the Section 409A Rules.

 

    	- 8 - 

     

    

 

	 	13.	Government
    Regulations.

 

The
Plan, and the grant and exercise or conversion, as applicable, of Securities hereunder, and the obligation of the Company to issue
and deliver shares under such Securities shall be subject to all applicable laws, rules and regulations, and to such approvals
by any governmental agencies, national securities exchanges and interdealer quotation systems as may be required.

 

	 	14.	General
    Provisions.

 

(a)
Certificates. All certificates for shares of Common Stock delivered under the Plan shall be subject to such stop transfer
orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities
and Exchange Commission, or other securities commission having jurisdiction, any applicable Federal or state securities law, any
stock exchange or interdealer quotation system upon which the Common Stock is then listed or traded and the Committee may cause
a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions.

 

(b)
Employment Matters. Neither the adoption of the Plan nor any grant or award under the Plan shall confer upon any Participant
who is an employee of the Company or any Subsidiary any right to continued employment or, in the case of a Participant who is
a director, continued service as a director, with the Company or a Subsidiary, as the case may be, nor shall it interfere in any
way with the right of the Company or any Subsidiary to terminate the employment of any of its employees, the service of any of
its directors or the retention of any of its consultants or advisors at any time.

 

(c)
Limitation of Liability. No member of the Committee, or any officer or employee of the Company acting on behalf of the
Committee, shall be personally liable for any action, determination or interpretation taken or made in good faith with respect
to the Plan, and all members of the Committee and each and any officer or employee of the Company acting on their behalf shall,
to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination
or interpretation.

 

(d)
Registration of Stock. Notwithstanding any other provision in the Plan, no Option may be exercised unless and until the
Common Stock to be issued upon the exercise thereof has been registered under the Securities Act and applicable state securities
laws, or are, in the opinion of counsel to the Company, exempt from such registration in the United States. The Company shall
not be under any obligation to register under applicable federal or state securities laws any Common Stock to be issued upon the
exercise of an Option granted hereunder in order to permit the exercise of an Option and the issuance and sale of the Common Stock
subject to such Option, although the Company may in its sole discretion register such Common Stock at such time as the Company
shall determine. If the Company chooses to comply with such an exemption from registration, the Common Stock issued under the
Plan may, at the direction of the Committee, bear an appropriate restrictive legend restricting the transfer or pledge of the
Common Stock represented thereby, and the Committee may also give appropriate stop transfer instructions with respect to such
Common Stock to the Company’s transfer agent.

 

	 	15.	Non-Uniform
    Determinations.

 

The
Committee’s determinations under the Plan, including, without limitation, (i) the determination of the Participants to receive
awards, (ii) the form, amount and timing of such awards, (iii) the terms and provisions of such awards and (ii) the agreements
evidencing the same, need not be uniform and may be made by it selectively among Participants who receive, or who are eligible
to receive, awards under the Plan, whether or not such Participants are similarly situated.

 

	 	16.	Governing
    Law.

 

The
validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance
with the internal laws of the State of Delaware, without giving effect to principles of conflicts of laws, and applicable federal
law.

 

    	- 9 -

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