Document:

exhibit1016.htm

Indemnification Agreement

This Indemnification Agreement ("AGREEMENT") is made as of this_____ day of ________ , 2011, by and between AVX Corporation, a Delaware corporation (the "COMPANY"), and ___________________________________ ("INDEMNITEE").

WHEREAS, the Company and Indemnitee recognize the significant cost of directors' and officers' liability insurance and the general reductions in the coverage of such insurance;

WHEREAS, The Company's Certificate of Incorporation (the "Certificate of Incorporation" ) authorizes the Company to provide indemnification of agents for breach of duty to the Company and its stockholders through bylaw provisions or through agreements with the agents, or otherwise, to the extent provided therein,

WHEREAS,  The Company' s bylaws (the "Bylaws" ) require that the Company indemnify its directors, and empowers the Company to indemnify its officers, employees and agents, as authorized by the Delaware General Corporation Law, as amended (the "Code" ), under which the Company is organized, and such Bylaws expressly provide that the indemnification provided therein is not exclusive and contemplate that the Company may enter into separate agreements with its directors, officers and other persons to set forth specific indemnification provisions.

WHEREAS,  Indemnitee does not regard the protection currently provided by applicable law, the Company' s Certificate of Incorporation, the Company' s Bylaws and available insurance as adequate, and the Company has determined that Indemnitee and other directors, officers, employees and agents of the Company may not be willing to serve or continue to serve in such capacities without additional protection.

WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting officers and directors to expensive litigation risks at the same time as the coverage of liability insurance has been changing over time; and

WHEREAS, the Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve as officers and directors of the Company and to indemnify its officers and directors so as to provide them with the maximum protection permitted by law.

NOW, THEREFORE, in consideration for Indemnitee's services as an officer or director of the Company, the Company and Indemnitee hereby agree as follows:

1. INDEMNIFICATION.

	
  

	
(a)

	
Third Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee is or was a party or is threatened to be made a party to any threatened, pending or completed action, suit, proceeding or any alternative dispute resolution mechanism, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Company) by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company, or by reason of the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in connection with such action, suit or proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe Indemnitee's conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe that Indemnitee's conduct was unlawful.

  

  

  

	
  

	
(b)

	
Proceedings By or in the Right of the Company. The Company shall indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Company or any subsidiary of the Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company, or by reason of the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees) and, to the fullest extent permitted by law, amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with the defense or settlement of such action or suit if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged to be liable to the Company unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery of the State of Delaware or such other court shall deem proper.

	
  

	
(c)

	
Mandatory Payment of Expenses. To the extent that Indemnitee has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Subsections (a) and (b) of this Section 1, or in defense of any claim, issue or matter therein, Indemnitee shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by Indemnitee in connection therewith.

2. CONSIDERATION. The Company acknowledges that good and valuable consideration, including services as an officer or director has been received from the Indemnitee.

3. EXPENSES; INDEMNIFICATION PROCEDURE.

	
  

	
(a)

	
Advancement of Expenses. The Company shall advance all expenses incurred by Indemnitee in connection with the investigation, defense, settlement or appeal of any civil or criminal action, suit or proceeding referenced in Section 1(a) or (b) hereof (but not amounts actually paid in settlement of any such action, suit or proceeding). Indemnitee hereby undertakes to repay such amounts advanced only if, and to the extent that, it shall ultimately be determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby. The advances to be made hereunder shall be paid by the Company to Indemnitee within thirty (30) days following delivery of a written request therefor by Indemnitee to the Company.

	
  

	
(b)

	
Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to his right to be indemnified under this Agreement, give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification will or could be sought under this Agreement. Notice to the Company shall be directed to the Secretary of the Company at the address shown on the signature page of this Agreement (or such other address as the Company shall designate in writing to Indemnitee). Notice shall be deemed received three business days after the date postmarked if sent by domestic certified or registered mail, properly addressed, five business days if sent by airmail to a country outside of North America; otherwise notice shall be deemed received when such notice shall actually be received by the Company. In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably require and as shall be within Indemnitee's power.

  

  

  

	
  

	
(c)

	
Procedure. Any indemnification and advances provided for in Section 1 and this Section 3 shall be made no later than thirty (30) days after receipt of the written request of Indemnitee. If a claim under this Agreement, under any statute, or under any provision of the Company's Certificate of Incorporation or Bylaws providing for indemnification, is not paid in full by the Company within thirty (30) days after a written request for payment thereof has first been received by the Company, Indemnitee may, but need not, at any time thereafter bring an action against the Company to recover the unpaid amount of the claim and, subject to Section 14 of this Agreement, Indemnitee shall also be entitled to be paid for the expenses (including attorneys' fees) of bringing such action. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in connection with any action, suit or proceeding in advance of its final disposition) that Indemnitee has not met the standards of conduct which make it permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed. However, Indemnitee shall be entitled to receive interim payments of expenses pursuant to Subsection 3(a) unless and until such defense may be finally adjudicated by court order or judgment from which no further right of appeal exists. It is the parties' intention that if the Company contests Indemnitee's right to indemnification, the question of Indemnitee's right to indemnification shall be for the court to decide, and neither the failure of the Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct required by applicable law, nor an actual determination by the Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) that Indemnitee has not met such applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct.

	
  

	
(d)

	
Notice to Insurers. If, at the time of the receipt of a notice of a claim pursuant to Section 3(b) hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

	
  

	
(e)

	
Selection of Counsel. In the event the Company shall be obligated under Section 3(a) hereof to pay the expenses of any proceeding against Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, with independent counsel approved by Indemnitee, upon the delivery to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same proceeding, provided that (i) Indemnitee shall have the right to employ his counsel in any such proceeding at Indemnitee's expense; and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense, or (C) the Company shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of Indemnitee's counsel shall be at the expense of the Company.

  

  

  

4. ADDITIONAL INDEMNIFICATION RIGHTS; NONEXCLUSIVITY.

	
  

	
(a)

	
Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company's Certificate of Incorporation, the Company's Bylaws or by statute. In the event of any change, after the date of this Agreement, in any applicable law, statute, or rule which expands the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such changes shall be, ipso facto, within the purview of Indemnitee's rights and Company's obligations, under this Agreement. In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such changes, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement shall have no effect on this Agreement or the parties' rights and obligations hereunder.

	
  

	
(b)

	
Nonexclusivity. The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled under the Company's Certificate of Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested Directors, the General Corporation Law of the State of Delaware, or otherwise, both as to action in Indemnitee's official capacity and as to action in another capacity while holding such office. The indemnification provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity even though he may have ceased to serve in such capacity at the time of any action, suit or other covered proceeding.

5. PARTIAL INDEMNIFICATION. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually or reasonably incurred by him in the investigation, defense, appeal or settlement of any civil or criminal action, suit or proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled.

6. MUTUAL ACKNOWLEDGEMENT. Both the Company and Indemnitee acknowledge that in certain instances, Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a determination of the Company's right under public policy to indemnify Indemnitee.

7. OFFICER AND DIRECTOR LIABILITY INSURANCE. The Company shall, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the Company's performance of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage. In all policies of director and officer liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company's directors, if Indemnitee is a director; or of the Company's officers, if Indemnitee is not a director of the Company but is an officer. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a subsidiary or parent of the Company.

  

  

  

8. SEVERABILITY. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company's inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. The provisions of this Agreement shall be severable as provided in this Section 8. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance with its terms.

9. EXCEPTIONS. Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:

	
  

	
(a)

	
Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise as required under Section 145 of the Delaware General Corporation Law, but such indemnification or advancement of expenses may be provided by the Company in specific cases if the Board of Directors has approved the initiation or bringing of such suit; or

	
  

	
b)

	
Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by the Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by the Indemnitee in such proceeding was not made in good faith or was frivolous; or

	
  

	
(c)

	
Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) which have been paid directly to Indemnitee by an insurance carrier under a policy of officers' and directors' liability insurance maintained by the Company; or

	
  

	
(d)

	
Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

10. CONSTRUCTION OF CERTAIN PHRASES.

	
  

	
(a)

	
Company. For purposes of this Agreement, references to the "Company" shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents, so that if Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.

	
  

	
(b)

	
Other Enterprises. For purposes of this Agreement, references to "other enterprises" shall include employee benefit plans; references to "fines" shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; and references to "serving at the request of the Company" shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants, or beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner "not opposed to the best interests of the Company" as referred to in this Agreement.

  

  

  

	
  

	
(c)

	
Proceedings. For purposes of this Agreement, the term " proceeding" shall be broadly construed and shall include, without limitation, any threatened, pending, or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, and whether formal or informal in any case, in which Indemnitee was, is or will be involved as a party or otherwise by reason of: (i) the fact that Indemnitee is or was a director or officer of the Company; (ii) the fact that any action taken by Indemnitee or of any action on Indemnitee' s part while acting as director, officer, employee or agent of the Company; or (iii) the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, and in any such case described above, whether or not serving in any such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of expenses may be provided under this Agreement.

	
  

	
(d)

	
Subsidiary. For purposes of this Agreement, the term " subsidiary" means any corporation or limited liability company of which more than 50% of the outstanding voting securities or equity interests are owned, directly or indirectly, by the Company and one or more of its subsidiaries, and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary.

	
  

	
(e)

	
Independent Counsel. For purposes of this Agreement, the term "independent counsel" means a law firm, or a partner (or, if applicable, member) of such a law firm, that is experienced in matters of corporation law (specifically including litigation and indemnification of agents) and neither presently is, nor in the past five (5) years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party, or (ii) any other party to the proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term " independent counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee' s rights under this Agreement.

11. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall constitute an original.

12. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon the Company and its successors and assigns, and shall inure to the benefit of Indemnitee and Indemnitee's estate, heirs, legal representatives and assigns.

13. ATTORNEYS' FEES. In the event that any action is instituted by Indemnitee under this Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and expenses, including reasonable attorneys' fees, incurred by Indemnitee with respect to such action, unless as a part of such action, the court of competent jurisdiction determines that each of the material assertions made by Indemnitee as a basis for such action were not made in good faith or were frivolous. In the event of an action instituted by or in the name of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all court costs and expenses, including attorneys' fees, incurred by Indemnitee in defense of such action (including with respect to Indemnitee's counterclaims and cross-claims made in such action), unless as a part of such action the court determines that each of Indemnitee's material defenses to such action were made in bad faith or were frivolous.

  

  

  

14. NOTICE. Except as otherwise provided herein, all notices or other communications shall be delivered personally (effective upon receipt) or by reputable overnight delivery service (effective  upon delivery), or by certified mail, postage prepaid, return receipt requested (effective 3 days after posting), and in all cases a copy shall be forwarded by email at the addresses shown in this Agreement or as amended.  Notice shall be provided as follows:

To Company:

AVX Corporation

One AVX Blvd.

Fountain Inn, SC 29644

Attn: Secretary

With a copy to:

AVX Corporation

PO Box 867

Myrtle Beach, SC 29578

Attn: Vice President for Business and Legal Affairs

To Indemnitee:

_______________________________

_______________________________

_______________________________

_______________________________

Either party may change notice address by sending a notice pursuant to this paragraph

15. CONSENT TO JURISDICTION. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement and agree that any action instituted under this Agreement shall be brought only in the state courts of the State of Delaware.

16. CHOICE OF LAW. This Agreement shall be governed by and its provisions construed in accordance with the laws of the State of Delaware, as applied to contracts between Delaware residents entered into and to be performed entirely within Delaware without regard to the conflict of law principles thereof.  THE PARTIES SHALL NOT RAISE IN CONNECTION THEREWITH, AND HEREBY WAIVE, ANY DEFENSES BASED UPON THE VENUE, THE INCONVENIENCE OF THE FORUM, THE LACK OF PERSONAL JURISDICTION, THE SUFFICIENCY OF SERVICE OF PROCESS OR THE LIKE IN ANY SUCH ACTION OR SUIT.

17. PERIOD OF LIMITATIONS. No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company against Indemnitee, Indemnitee's estate, spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern.

18. SUBROGATION. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

  

  

  

19. ACKNOWLEDGMENT OF READING AND COMPREHENSION. Each party represents, warrants and acknowledges that (i) it has read this Agreement, (ii) it has given mature and careful thought to this Agreement, (iii) it has been given the opportunity to review this Agreement independently with legal counsel, (iv) it fully understands and agrees to its terms, (v) it has entered into and executed this Agreement of its own choice and free will and in accordance with its own judgment, and (vi) it has been represented by counsel in connection with the negotiation and execution of this Agreement or has had the ability to retain counsel and has chosen not to do so.

20.  PRESUMPTION. In the event of an ambiguity in or dispute regarding the interpretation of this instrument, the interpretation shall not be resolved by any rule providing for interpretation against the party who causes the uncertainty to exist or against the drafting party

21.  NO RELIANCE. In signing this Agreement, no party has relied on or been induced to execute this Agreement by any statements, representations, agreements or promises, oral or written, made by any other party, their agents, employees, servants or attorneys, or anyone else, other than the statements expressly written in this Agreement.

22. AMENDMENT AND TERMINATION. No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is in writing signed by both the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

23. INTEGRATION AND ENTIRE AGREEMENT. This Agreement sets forth the entire understanding between the parties hereto and supersedes and merges all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof between the parties hereto.

.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

AVX CORPORATION                                                                                  INDEMNITEE:

By:

_______________________________                                                                        _______________________________

Name:                                                                                        Name:

Title:                                                                                         Title:

An authorized officerExhibit 4.1

 CIT Group Inc.

2011 Employee Stock Purchase Plan

Adopted May 10, 2011

 The purpose of this Plan is to align the interests of employees with stockholders of the Company by providing certain employees of the Company and its Participating Subsidiaries with an opportunity to acquire an ownership interest in CIT by purchasing shares of Common Stock of the Company through payroll deductions on an after-tax basis. It is the intention of the Company to have the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code. The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code.

 Section 1. Definitions.

 1.1. “Account” shall mean the account established for each Participant under the Plan.

 1.2. “Base Salary” shall mean an
Employee’s salary or base wages for each pay period during any Offering
Period as determined from the payroll records of the Company or Participating
Subsidiary before reduction for pre-tax amounts contributed by the Employee
under Section 401(k), 132(f) or 125 of the Code or to any nonqualified deferred
compensation plan. Without limiting the generality of the foregoing, Base Salary
shall not include overtime, bonuses, any contributions by the Company or a
Participating Subsidiary, to, or benefits paid under, the Plan or any other
pension, profit-sharing, fringe benefit, group insurance or other employee
welfare plan or any deferred compensation arrangement (other than pursuant to
Section 401(k), 132(f) or 125 of the Code), expenses and reimbursements, and any
other special or extraordinary compensation. Notwithstanding the foregoing, the
Committee, in its sole discretion, may adjust the types of compensation
constituting Base Salary; provided that any such determination shall be applied
in a uniform and consistent basis to all Employees.

 1.3. “Board” shall mean the Board of Directors of the Company.

 1.4. “Broker” shall mean the brokerage firm designated in Section 8.

 1.5. “Closing Date” shall mean the last business day of each Offering Period.

 1.6. “Code” shall mean the Internal Revenue Code of 1986, as amended.

 1.7. “Committee” shall mean the Employee Benefit Plans Committee of the Company and any successor committee or such other committee the Board (or its designee) appoints to administer the Plan. To the extent that no Committee exists which has the authority to administer the Plan, the functions of the Committee shall be exercised by the Board.

 1.8. “Common Stock” shall mean the common stock of the Company.

 1.9. “Company” shall mean the CIT Group Inc., a Delaware corporation, and its successors.

 1.10. “Employee” shall mean any person who is customarily employed for twenty (20) hours or more per week by the Company or a Participating Subsidiary.

 1.11. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 1.12. “Fair Market Value” shall mean on
any day, with respect to Common Stock of the Company which is (a) listed on a
United States securities exchange, the last sales price of such stock on such
day on the New York Stock Exchange (“NYSE”), or if the Common Stock is
not then listed on the NYSE, the largest United States securities exchange on
which such stock shall have traded on such day, or if such day is not a day on
which a United States securities exchange is open for trading, on the
immediately preceding day on which such securities exchange was open, (b) not
listed on a United States securities exchange but is included in The NASDAQ
Stock Market System (including The NASDAQ National Market), the last sales price
on such system of such stock on such day, or if such day is not a trading day,
on the immediately preceding trading day, or (c) neither listed on a United
States securities exchange nor included in The NASDAQ Stock Market System, the
fair market value of such stock as determined from time to time by the Board in
good faith in its sole discretion.

 1.13. “Highly Compensated Employee” shall mean an Employee becoming classified by the Company as having a salary band of 420 (or the equivalent) or above and qualifying as a “highly compensated employee” under Section 423(b)(4)(D) of the Code.

 1.14. “Offering Date” shall mean the first business day of each Offering Period.

 1.15. “Offering Period” shall mean each three (3) month period when Options for shares of Common Stock are offered by the Company, as described in Section 3 hereof.

 1.16. “Option” shall mean the right of a Participant to purchase shares of Common Stock of the Company under an offering made under the Plan and pursuant to such Participant’s election to purchase.

 1.17. “Participant” shall mean an Employee of the Company or Participating Subsidiary who is eligible to participate in, and enrolled in, the Plan in accordance with Sections 2 and 4 hereof.

 1.18. “Participating Subsidiary” shall mean any Subsidiary that the Committee has specifically deemed eligible to participate in the Plan from time to time in its sole discretion. Effective as of the effective date of the Plan until modified by the Committee, any Subsidiary located in the United States or Canada shall be a Participating Subsidiary.

 1.19. “Plan” shall mean the CIT Group Inc. 2011 Employee Stock Purchase Plan, as may be amended from time to time.

 1.20. “Subsidiary” shall mean any corporation, domestic or foreign, (other than the Company) in an unbroken chain of corporations beginning with the Company if, at the time of the granting of

 an Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 Section 2. Eligibility.

 2.1. Eligibility. Subject to Section 4 and except
as provided in this Section 2, any Employee employed by the Company or a
Participating Subsidiary shall be eligible to participate in the Plan as soon as
administratively possible following the Employee’s commencement of
employment with the Company or a Participating Subsidiary. An Employee is
ineligible to participate in the Plan for any Offering Period if, as of the
Offering Date in such Offering Period, the Employee is or becomes a Highly
Compensated Employee. If an Employee participates in an Offering Period but
becomes a Highly Compensated Employee during such Offering Period, then such
Employee shall automatically be withdrawn from such Offering Period in
accordance with Section 10.5 hereof. An eligible Employee may participate in the
Plan as of any Offering Period following the Employee’s commencement of
employment with the Company or a Participating Subsidiary, provided that the
Employee authorizes payroll deductions no later than the fifteenth day of the
month prior to the commencement of the applicable Offering Period.

 2.2. Committee Discretion. Notwithstanding Section 2.1 above, Options to purchase shares of Common Stock under the Plan shall be offered to all Employees eligible to participate in the Plan in accordance with this Section 2, provided, however, solely to the extent allowable under Section 423 of the Code, the Committee may determine that an offering of shares of Common Stock under the Plan will not be extended to all or some “highly compensated employees” (as defined in Section 423(b)(4)(D) of the Code) of the Company or Participating Subsidiary.

 2.3. Limit on Options. Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an Option under the Plan (i) if, immediately after the grant, such Employee would own stock or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of shares of the Company or any Subsidiary of the Company; (ii) which permits him or her to purchase shares of stock under all employee stock purchase plans of the Company and its Subsidiaries which have a Fair Market Value which exceeds Twenty-Five Thousand Dollars ($25,000) (determined at the time such Option is granted) for each calendar year in which such Option is outstanding at any time; or (iii) which permits him or her to purchase shares of Common Stock that exceed the percentage provided in Section 5.1 below.

 Section 3. Offering Dates. The Plan shall be implemented by one offering during each calendar quarter period, beginning on the effective date of the Plan as provided in Section 27 below and continuing until terminated in accordance with Section 21 hereof. The Offering Periods shall be as follows:

 January 1 – March 31

 April 1 – June 30

 July 1 – September 30

October 1 – December 31

 The Committee shall have the power to change the duration of Offering Periods with respect to future offerings without stockholder approval if such change is announced to Employees at least fifteen days prior to the scheduled beginning of the first Offering Period to be affected.

 Section 4. Participation. An eligible Employee may become a Participant in the Plan by authorizing payroll deductions in such form or manner as the Company may prescribe prior to the applicable Offering Date. Once authorized, such authorization for payroll deductions shall commence on the first Offering Date as soon as administratively feasible after authorization is effected and shall remain effective for all subsequent Offering Periods until the Participant withdraws from the Plan as provided in Section 10 hereof or, subject to Section 5 hereof, authorizes a change in the amount of his or her payroll deductions.

 Section 5. Payroll Deductions.

 5.1. Election of Deduction Percentage. At the time a Participant authorizes payroll deductions, he or she shall elect to have payroll deductions made on each payday during subsequent Offering Periods at a rate between one percent (1%) and ten percent (10%) of Base Salary (such percentage representing a whole number percentage).

 5.2. No Additional Payments. All payroll deductions made by a Participant shall be credited to his or her Account under the Plan. A Participant may not make any additional payments into such Account.

 5.3. Changes in Deduction Percentage. A Participant may increase or decrease his or her rate of payroll deductions (within the limitations set forth in Section 5.1 hereof) to be effective as soon as administratively feasible during the next Offering Period by authorizing a new rate of payroll deductions.

 5.4. Requirement of Continuation of Deductions. A Participant must continue payroll deductions for the duration of the Offering Period in order to exercise an Option in accordance with Section 7 hereof. In the event that a Participant does not continue payroll deductions for the entire Offering Period, such Participant shall be treated as withdrawing from such Offering Period in accordance with Section 10.1 hereof.

 Section 6. Grant of Option.

 6.1. Number of Option Shares. On each Offering Date, each eligible Employee participating in the Plan shall be granted an Option to purchase (at the per share Option price) up to a number of shares of the Company’s Common Stock determined by dividing the Employee’s payroll deductions to be accumulated during the Offering Period (not to exceed an amount equal to ten percent (10%) of his or her Base Salary during the applicable Offering Period) by the Option price, determined in accordance with this Section 6.

 6.2. Option Price Per Share. The Option price per share of such shares of Common Stock shall be determined by the Committee, in its sole discretion, and shall remain in effect unless modified at least thirty (30) days prior to the applicable Offering Date, but in no event shall be less than eighty-five percent (85%) of the Fair Market Value of a share of Common Stock of the Company on the Closing Date. Effective as of the effective date of the Plan until modified by the Committee, the Option price per share of such shares of Common Stock shall be eighty-five percent (85%) of the Fair Market Value of a share of Common Stock of the Company on the Closing Date.

 Section 7. Exercise of Option. Unless a Participant withdraws from the Plan as provided in Section 10 hereof, his or her Option for the purchase of shares of Common Stock will be exercised automatically on the Closing Date, and the maximum number of whole shares (and fractional shares if fractional share transactions may then be effectuated under the Plan) of Common Stock subject to the Option will be purchased for him or her at the applicable Option price with the accumulated payroll deductions in his or her Account. During his or her lifetime, a Participant’s Option to purchase shares of Common Stock hereunder is exercisable only by him or her.

 Section 8. Designation of Broker and Participant’s Account with Broker.

 8.1. Account. The Company has designated a registered broker-dealer and its affiliates to open and maintain an Account for each Participant. The Company reserves the right to change such designation at any time by action of the Committee without prior notice to Participants, and the Broker has reserved the right to terminate its services as Broker under the Plan at any time. The Broker shall deliver to each Participant as promptly as practicable, by mail or otherwise, all notices of meetings, proxy statements and other materials distributed by the Company to its stockholders. The whole and fractional shares in each Participant’s Account shall be voted in accordance with the Participant’s signed proxy instructions duly delivered to the Broker by mail or otherwise, in accordance with the rules applicable to stock listed on the New York Stock Exchange.

 8.2. Joint Accounts. Subject to Section 9 below and to the extent allowed by the Committee, each certificate (as described in Section 9 below) or Account, as the case may be, may be in the name of the Participant or in such Participant’s name jointly with a member of his or her family (over 21 years of age) with the right of survivorship. A Participant who is a resident of a jurisdiction which does not recognize such joint tenancy may have a certificate or Account in his or her name as tenant in common with a member of his or her family (over 21 years of age), without right of survivorship. Such designation may be changed by filing a notice of such change.

 Section 9. Uncertified Shares of Common Stock. Effective as of the effective date of the Plan until modified by the Committee, the Company shall recognize the Participant’s ownership of shares of Common Stock through uncertificated book entry or another similar method pursuant to Section 9 herein. Such uncertificated shares of Common Stock shall be credited to a book entry account maintained by the Broker on behalf of the Participant. If thereafter certificates are issued with respect to the uncertificated shares of Common Stock, such issuance and delivery of certificates shall be in accordance with the applicable terms of the Plan. If certificates are issued

 under the Plan, a Participant may request, in accordance with Section 22 hereof, that the Company arrange for the delivery of a certificate representing the number of whole shares of Common Stock of the Company purchased upon exercise of the Participant’s Option as promptly as practicable after each Closing Date. A Participant may not require delivery for a fractional share, but may instruct the Broker to sell the fractional share. In connection with the delivery of certificates to a Participant, the Committee may, in its sole discretion, impose a reasonable charge.

 Section 10. Withdrawal; Termination of Employment.

 10.1. Withdrawals from Account. A Participant may withdraw all but not less than all the payroll deductions credited to his or her Account under the Plan at any time prior to the Closing Date by giving notice to the Committee in such form or manner as the Committee may prescribe. All of the Participant’s payroll deductions credited to his or her Account will be paid to him or her as soon as administratively possible after receipt of his or her notice of withdrawal and his or her Option for the current Offering Period will be automatically terminated, and no further payroll deductions for the purchase of shares of Common Stock will be made during such Offering Period.

 10.2. Termination of Employment. Upon termination of the Participant’s employment prior to the Closing Date for any reason, including retirement or death, the payroll deductions credited to his or her Account will be returned to him or her or, in the case of his or her death, to the person or persons entitled thereto under Section 15 hereof, as soon as administratively possible, and his or her Option will be automatically terminated.

 10.3. Reduction of Hours. In the event an Employee fails to remain in the continuous employ of the Company or a Participating Subsidiary for (20) or more hours per week during the Offering Period in which the Employee is a Participant, he or she will be deemed to have elected to withdraw from the Plan and the payroll deductions credited to his or her Account will be returned to him or her as soon as administratively possible and his or her Option will be terminated.

 10.4. Leave of Absence. In the event that, during the Offering Period, a Participant is granted an unpaid leave of absence (including a military or disability leave) and such Participant does not continue payroll deductions for the duration of such Offering Period in accordance with Section 5.4, then such Participant will be deemed to have elected to withdraw from the Plan and the payroll deductions credited to his or her Account will be returned to him or her as soon as administratively possible and his or her Option will be terminated.

 10.5. Highly Compensated Employee. In the event, during any Offering Period, a Participant becomes a Highly Compensated Employee, then he or she will be deemed to have elected to withdraw from the Plan and the payroll deductions credited to his or her Account will be returned to him or her as soon as administratively possible and his or her Option will be terminated. An Employee shall not be eligible to participate in the Plan so long as he or she is a Highly Compensated Employee.

 10.6. Eligibility After Withdrawal. A Participant’s withdrawal from an Offering Period will not have any effect upon his or her eligibility to participate in a succeeding offering or in any similar plan which may hereafter be adopted by the Company. However, in such a case, the Participant must authorize the resumption of payroll deductions and the rate of such payroll deductions.

 Section 11. No Interest. No interest shall accrue on the payroll deductions held in the Account of a Participant in the Plan.

 Section 12. Stock.

 12.1. Shares Subject to Plan. The maximum number
of shares of Common Stock which shall be made available for sale under the Plan
shall be two million (2,000,000), subject to adjustment upon changes in
capitalization of the Company as provided in Section 20 hereof. The shares of
Common Stock to be sold to Participants under the Plan may, at the election of
the Company, be either treasury shares, authorized but unissued shares or
publicly traded shares. If at the termination of any Offering Period the total
number of shares of Common Stock which would otherwise be subject to Options
granted pursuant to Section 6.1 hereof exceeds the number of shares of Common
Stock then available under the Plan (after deduction of all shares of Common
Stock for which Options have been exercised or are then outstanding), the
Company shall promptly notify the Participants, and shall, in its sole
discretion (i) make a pro rata allocation of the shares of Common Stock
remaining available for such Options in as uniform a manner as shall be
practicable and as it shall determine to be equitable, (ii) terminate the
Offering Period without issuance of any shares of Common Stock or (iii) obtain
stockholder approval for an increase in the number of shares of Common Stock
authorized under the Plan such that all Options could be exercised in full. The
Company may delay determining which of (i), (ii) or (iii) above it shall decide
to effect, and may accordingly delay issuances of any shares of Common Stock
under the Plan for such time as is necessary to attempt to obtain stockholder
approval for any increase in shares of Common Stock authorized under the Plan.
The Company shall promptly notify Participants of its determination to effect
(i), (ii) or (iii) above upon making such decision. A Participant may withdraw
all but not less than all the payroll deductions credited to his or her Account
under the Plan at any time prior to such notification from the Company. In the
event the Company determines to effect (i) or (ii) above, it shall promptly upon
such determination return to each Participant all payroll deductions not applied
towards the purchase of shares of Common Stock.

 12.2. Rights in Stock before Exercise. The Participant will have no interest or voting right in shares of Common Stock covered by his or her Option until such Option has been exercised.

 12.3. Registration of Stock upon Exercise. Shares of Common Stock to be delivered to a Participant under the Plan shall be registered in the name of the Participant.

 Section 13. Dividends. Cash dividends for shares of Common Stock in Participants’ Accounts under the Plan shall not be distributed to Participants directly, but shall be automatically invested in shares of Common Stock at the full Fair Market Value on the date of such investment as soon as administratively possible after such dividends are paid by the Company. Such shares of

 Common Stock will be held in Accounts under the Plan. Dividends paid in property including shares of Common Stock shall be distributed to the Participants as soon as practicable.

 Section 14. Administration. The Plan shall be administered by the Committee (or its designee). The Committee (or its designee) shall have full power and authority, subject to the provisions of the Plan, to promulgate such rules and regulations as it deems necessary for the proper administration of the Plan, to interpret the provisions and supervise the administration of the Plan, and to take all actions in connection therewith or in relation thereto as it deems necessary or advisable. The administration, interpretation or application of the Plan by the Committee (or its designee) shall be final, conclusive and binding upon all Participants.

 Section 15. Designation of Beneficiary. The
beneficiary or beneficiaries of the Participant to receive any shares of Common
Stock and cash, if any, from the Participant’s Account under the Plan in
the event of such Participant’s death prior to delivery to him or her of
such shares of Common Stock and cash shall be determined under the
Company’s Group Life Insurance Plan. A Participant under the Plan may, from
time to time, name any beneficiary or beneficiaries to receive any shares of
Common Stock and cash, if any, from the Participant’s Account under the
Plan. Each such designation shall revoke all prior designations by the same
Participant, including the beneficiary designated under the Company’s Group
Life Insurance Plan, and will be effective only when filed by the Participant in
writing (in such form or manner as may be prescribed by the Committee) with the
Company during the Participant’s lifetime. If no beneficiary has been
designated, then shares of Common Stock and cash, if any, from the
Participant’s Account under the Plan shall be delivered to the
Participant’s estate.

 Section 16. Transferability. Neither payroll deductions credited to a Participant’s Account nor any rights with regard to the exercise of an Option or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15 hereof) by the Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 10 hereof.

 Section 17. Restrictions.

 17.1. Transfer Restrictions on Shares. No
Participant shall sell, assign, transfer, pledge or otherwise dispose of any
shares of Common Stock received pursuant to the exercise of an Option under the
Plan for six (6) months following the applicable Closing Date such Option was
exercised, except as provided in this Section 17.1. Notwithstanding anything to
the contrary in this Section, a Participant may transfer shares of Common Stock
received pursuant to the exercise of an Option under the Plan (1) for estate
planning purposes to trusts, limited liability companies or other entities
established for the benefit of such Participant or his or her spouse, parent,
sibling or lineal descendant; provided, that (a) the Participant making such
transfer shall remain a beneficial owner of such shares of Common Stock, and (b)
the transferee agrees in a writing suitable to the Company that the transferee
shall not subsequently transfer such shares of Common Stock other than in a
transfer back to the Participant; or (2) to the extent required to comply with a
court order or settlement agreement in connection with a Participant’s
divorce,

 legal separation, or similar proceeding. The Committee may also grant exceptions to this Section 17.1 based on economic hardship or other showing of good cause.

 17.2. Certificates. Subject to Section 9 above, all certificates for shares of Common Stock delivered under the Plan shall be subject to such stock transfer orders and other restrictions as the Committee may deem advisable to assist in the compliance with any applicable tax withholding laws or under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Stock is then listed or any national securities association system upon whose system the Common Stock is then quoted, any applicable Federal or state securities law, and any applicable corporate law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 Section 18. No Segregation of Funds. The Company shall not be obligated to segregate payroll deductions received or held by the Company under the Plan. Such payroll deductions shall be used to purchase shares of Common Stock under the Plan in accordance with Section 7 hereof.

 Section 19. Reports. Individual Accounts will be maintained for each Participant in the Plan. Statements of Account will be given to Participants within a reasonable period of time following each Closing Date.

 Section 20. Adjustments Upon Changes in
Capitalization. Subject to any required action by the stockholders of the
Company, the number of shares of Common Stock covered by each Option under the
Plan which have not yet been exercised and the number of shares of Common Stock
which have been authorized for issuance under the Plan but have not yet been
placed under Option (collectively, the “Reserves”), as well as the
price per share of Common Stock covered by each Option under the Plan which has
not yet been exercised, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split or the payment of a stock dividend (but only on the Common Stock) or any
other increase or decrease in the number of shares of Common Stock effected
without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to
have been “effected without receipt of consideration.” Such adjustment
shall be made by the Board or the Compensation Committee of the Board, whose
determination in that respect shall be final, binding and conclusive. Except as
expressly provided herein, no issue by the Company of shares of stock of any
class, or securities convertible into or exercisable for shares of stock of any
class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an
Option.

 The Board or the Compensation Committee of the Board may, if it and/or they so determines in the exercise of its sole discretion, also make provisions for adjusting the Reserves, as well as the price per share of Common Stock covered by each outstanding Option under the Plan, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of shares of its outstanding Common Stock, and in the event of the Company being consolidated with or merged into any other corporation.

 Section 21. Amendment and Termination of the Plan.

 21.1. Amendment and Termination. The Committee may at any time amend, alter, suspend, terminate or discontinue the Plan, but no amendment, alteration, suspension, termination or discontinuation shall be made which would impair the rights of any Participant under any Option theretofore granted without his or her consent.

 21.2. Stockholder Approval of Amendments. The Company shall obtain stockholder approval of any Plan amendment to the extent required to comply with Section 423 of the Code, any applicable stock exchange rule or any other applicable law or regulation. Such stockholder approval to be obtained in such a manner and to such a degree as is required by applicable law, rule or regulation.

 21.3. Effect of Amendment or Termination. Any such amendment or termination of the Plan shall not affect Options already granted hereunder and such Options shall remain in full force and effect as if this Plan had not been amended or terminated.

 Section 22. Notices. All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. All notices or other communications to a Participant by the Company shall be deemed to have been duly given when sent by the Company by regular mail to the address of the Participant on the human resources records of the Company.

 Section 23. Conditions Upon Issuance of Shares of Common Stock. Shares of Common Stock shall not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such shares of Common Stock pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange or automated quotation system upon which the shares of Common Stock may then be listed or quoted, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

 As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the shares of Common Stock are being purchased only for investment and without any present intention to sell or distribute such shares of Common Stock if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.

 Section 24. Plan Not an Employment Contract. This Plan is not an employment contract, nor shall anything contained herein be deemed to give any Employee or other individual any right to be retained in his or her employer’s employ or to in any way limit or restrict his or her employer’s right or power to discharge any Employee or other individual at any time and to treat such Employee without any regard to the effect which such treatment might have upon him as a Participant of the Plan.

 Section 25. Arbitration. Any dispute,
controversy or claim arising out of or relating to the Plan that cannot be
resolved by the Participant on the one hand, and the Company on the other, shall
be submitted to arbitration in the state of New Jersey under the National Rules
for the Resolution of Employment Disputes of the American Arbitration
Association; provided that any such submission by the Participant must be made
within two years of the date of the events giving rise to such dispute,
controversy or claim. The determination of the arbitrator shall be conclusive
and binding on the Company and the Participant, and judgment may be entered on
the arbitrator’s award in any court having jurisdiction. The expenses of
such arbitration shall be borne by the Company; provided, however, that each
party shall bear its own legal expenses unless the Participant is the prevailing
party, in which case the Company shall promptly reimburse the Participant for
the reasonable legal fees and expenses incurred by the Participant in connection
with such contest or dispute (excluding any fees payable pursuant to a
contingency fee arrangement).

 Section 26. Legal Construction.

 26.1. Governing Law. The Plan shall be construed in accordance with and governed by the laws of the State of New Jersey without regard to the choice of law principles thereof.

 26.2. Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural.

 26.3. Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 26.4. Requirement of Law. The operation of the Plan and the payment of benefits under the Plan, including, without limitation, the Company’s obligation to sell or deliver shares of Common Stock with respect to the Options granted under the Plan, shall be subject to all applicable laws, rules, and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee.

 Section 27. Effective Date and Approval of Plan by Stockholders. The Plan shall become effective on the first day of the first Offering Period beginning as soon as administratively practicable after the approval of the Plan by the stockholders of the Company in accordance with Section 423(b)(2) of the Code.

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