Document:

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                                                                    Exhibit 10.6

                                   AVAYA INC.
                          2000 LONG TERM INCENTIVE PLAN
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                       ARTICLE 1 - BACKGROUND AND PURPOSE

The purpose of the Avaya Inc. 2000 Long Term Incentive Plan is to enhance
shareholder value by reinforcing the Company's efforts to motivate Employees to
contribute to the Company's growth and performance, and enabling the Company to
attract and retain individuals of exceptional talent upon whom, in large
measure, the sustained progress, growth and profitability of the Company depend.

                             ARTICLE 2 - DEFINITIONS

For the purposes of this Plan, the following words shall have the meanings
ascribed to them below:

(a)      AWARD

         Any Option, Stock Appreciation Right, Restricted Stock Award,
         Performance Award, Dividend Equivalent, Other Stock Unit Award,
         Substitute Award or any other right, interest, or option relating to
         Shares or other securities of the Company granted pursuant to the
         provisions of the Plan.

(b)  AWARD AGREEMENT

         The written agreement, contract, or other instrument or document
         provided by the Company to evidence an Award and signed by both the
         Company and the Participant.

(c)      BOARD

         The Board of Directors of the Company.

(d)      CHANGE IN CONTROL

         The happening of any of the following events:

                  (i) An acquisition by any individual, entity or group (within
         the meaning of Section 13 (d)(3) or 14 (d)(2) of the Exchange Act) (an
         "Entity") of beneficial ownership (within the meaning of Rule 13d-3
         promulgated under the Exchange Act) of 20% or more of either (A) the
         then outstanding shares of common stock of the Company (the
         "Outstanding Company Common Stock") or (B) the combined voting power of
         the then outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company Voting
         Securities"); excluding, however, the following: (1) any acquisition
         directly from the Company, other than an acquisition by virtue of the
         exercise of a conversion privilege unless the security so being
         converted was itself acquired directly from the Company, (2) any
         acquisition by the Company, (3) any acquisition by any employee benefit
         plan (or related trust) sponsored or maintained by the Company or any
         corporation controlled by the Company, or (4) any acquisition by any
         corporation pursuant to a transaction which complies with clauses (A),
         (B) and (C) of subsection (iii) of this Article 2(c); or

                  (ii) A change in the composition of the Board such that the
         individuals who, as of the Effective Date, constitute the Board (such
         Board shall be hereinafter referred to as
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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

         the "Incumbent Board") cease for any reason to constitute at least a
         majority of the Board; provided, however, that for purposes of this
         definition, any individual who becomes a member of the Board subsequent
         to the Effective Date, whose election, or nomination for election by
         the Company's stockholders, was approved by a vote of at least a
         majority of those individuals who are members of the Board and who were
         also members of the Incumbent Board (or deemed to be such pursuant to
         this proviso) shall be considered as though such individual were a
         member of the Incumbent Board; and provided, further however, that any
         such individual whose initial assumption of office occurs as a result
         of or in connection with either an actual or threatened election
         contest (as such terms are used in Rule 14a-11 of Regulation 14A
         promulgated under the Exchange Act) or other actual or threatened
         solicitation of proxies or consents by or on behalf of an Entity other
         than the Board shall not be so considered as a member of the Incumbent
         Board; or

                  (iii) The approval by the stockholders of the Company of a
         merger, reorganization or consolidation or sale or other disposition of
         all or substantially all of the assets of the Company (each, a
         "Corporate Transaction") or, if consummation of such Corporate
         Transaction is subject, at the time of such approval by stockholders,
         to the consent of any government or governmental agency, the obtaining
         of such consent (either explicitly or implicitly by consummation);
         excluding however, such a Corporate Transaction pursuant to which (A)
         all or substantially all of the individuals and entities who are
         beneficial owners, respectively, of the Outstanding Company Stock and
         Outstanding Company Voting Securities immediately prior to such
         Corporate Transaction will beneficially own, directly or indirectly,
         more than 60% of, respectively, the outstanding shares of common stock,
         and the combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Corporate Transaction
         (including, without limitation, a corporation or other Person which as
         a result of such transaction owns the Company or all or substantially
         all of the Company's assets either directly or through one or more
         subsidiaries (a "Parent Company")) in substantially the same
         proportions as their ownership, immediately prior to such Corporate
         Transaction, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities, as the case may be, (B) no Entity (other
         than the Company, any employee benefit plan (or related trust) of the
         Company, such corporation resulting from such Corporate Transaction or,
         if reference was made to equity ownership of any Parent Company for
         purposes of determining whether clause (A) above is satisfied in
         connection with the applicable Corporate Transaction, such Parent
         Company) will beneficially own, directly or indirectly, 20% or more of,
         respectively, the outstanding shares of common stock of the corporation
         resulting from such Corporate Transaction or the combined voting power
         of the outstanding voting securities of such corporation entitled to
         vote generally in the election of the directors unless such ownership
         resulted solely from ownership of securities of the Company prior to
         the Corporate Transaction, and (C) individuals who were members of the
         Incumbent Board will immediately after the consummation of the
         Corporate Transaction constitute at least a majority of the members of
         the board of directors of the corporation resulting from such Corporate
         Transaction (or, if reference was made to equity ownership of any
         Parent Company for purposes of determining whether clause (A) above is
         satisfied in connection with the applicable Corporate Transaction, of
         the Parent Company); or

                  (iv) The approval by the stockholders of the Company of a
         complete liquidation or dissolution of the Company.

(e)      CODE

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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

         The Internal Revenue Code of 1986, as amended.

(f)      COMMITTEE

         The Corporate Governance and Compensation Committee (or any successor
         committee) of the Board.

(g)      COMPANY

         Avaya Inc., a Delaware corporation.

(h)      COMPANY ACTION

         A Company or Subsidiary declared or initiated (i) termination from
         service under a force management program, (ii) sale of a unit or
         portion of a unit, (iii) transfer of a Participant to a corporation,
         partnership, limited liability company or other business entity in
         which the Company has a direct or indirect equity interest and which
         does not constitute a Subsidiary or (iv) placement of the job function
         of a Participant with an outsourcing contractor unless the successor
         employer has made appropriate provision for the assumption and
         continuation of Awards of Employees who are employed by the successor
         employer after an event described in (ii), (iii) or (iv).

(i)      COVERED EMPLOYEE

         A "covered employee" within the meaning of Section 162(m)(3) of the
         Code.

(j)      DELEGATE

         The person or committee authorized by the Committee or the Board to
         exercise specified authority under this Plan.

(k)      DIVIDEND EQUIVALENT

         Has the meaning assigned in Article 6(b).

(l)      DISABILITY OR DISABLED

         Termination of employment under circumstances where the Participant
         qualifies for benefits under a long-term disability pay plan as
         provided in the Participant's Award Agreement.

(m)      EMPLOYEE

         Any employee of the Company or any Subsidiary, excluding leased
         employees within the meaning of Section 414(n) of the Code.

(n)      EXCHANGE ACT

         The Securities Exchange Act of 1934, as amended.

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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

(o)      EXPIRATION DATE

         The date specified in the Award Agreement after which rights under the
Award expire.

(p)      FAIR MARKET VALUE

         The average of the high and low sales prices of a Share as reported on
         the New York Stock Exchange on the Grant Date, or if no sales of Shares
         were reported on such date, the average of the high and low prices of a
         Share on the next preceding day on which sales were reported.

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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

(q)      GRANT DATE

         The Grant Date shall be the date an Award is granted as set forth in
         the Award Agreement.

(r)      INCENTIVE OPTION

         An Option granted under Article 7 that is intended to meet the
         requirements of Section 422 of the Code or any successor provision
         thereto.

(s)      NONSTATUTORY OPTION

         An Option granted under Article 7 that is not intended to be an
         Incentive Option.

(t)      OPTION

         An Award described in Article 7.

(u)      OTHER STOCK UNIT AWARD

         An Award described in Article 11.

(v)      PARTICIPANT

         An Employee who is selected by the Committee to receive an Award under
         the Plan.

(w)      PERFORMANCE AWARD

         An Award described in Article 10.

(x)      PERFORMANCE PERIOD

         That period, established by the Committee at or after the time any
         Performance Award is granted, during which any performance goals
         specified by the Committee with respect to such Award are to be
         measured.

(y)      PERSON

         Any individual, corporation, partnership, association, joint-stock
         company, trust, unincorporated organization, limited liability company,
         other entity or government or political subdivision.

(aa)     PLAN

         The Avaya Inc. 2000 Long Term Incentive Plan.

(bb)     RESTRICTED STOCK

         An Award described in Article 9.

(cc)     RETIREMENT

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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

         Termination of the employment of a Participant with the Company or any
         Subsidiary under circumstances where the Participant qualifies for
         benefits under a retirement plan as provided in the Participant's Award
         Agreement.

(dd)     SHARE

         A share of the common stock of the Company, par value $.01 per share.

(ee)     STOCK APPRECIATION RIGHT

         An Award described in Article 8.

(ff)     STOCK AWARD COMMITTEE

         A committee of one or more directors appointed by the Committee
         pursuant to Article 4.

(gg)     SUBSIDIARY

         A "subsidiary corporation" of the Company as defined in Section 424(f)
         of the Code, an entity in which the Company directly or indirectly owns
         50% or more of the voting interests or an entity in which the Company
         has a significant equity interest, as determined by the Committee.

(hh)     SUBSTITUTE AWARD

         An Award granted in lieu of an Option or Stock Appreciation Right
         pursuant to Article 17.

(ii)     TERM

         The period beginning on October 1, 2000, and ending on October 1, 2005.

              ARTICLE 3 - SHARES AVAILABLE FOR OPTION; ADJUSTMENTS

         (a)   Subject to adjustment as provided in Article 3(b), the aggregate
               number of Shares which may be made subject to Awards granted
               under this Plan shall not exceed 25 million (25,000,000);
               provided, that if any Shares are subject to an Award that is
               forfeited, settled in cash, expires, or is otherwise terminated
               without issuance of Shares, such Shares shall again be available
               for Awards under the Plan if no Participant shall have received
               any benefits of ownership in respect thereof; and provided,
               further, that no more than two million (2,000,000) Shares shall
               be available for the grant of Incentive Options under the Plan
               during the Term; and provided, further, that no Participant may
               be granted Awards with respect to more than 5,000,000 Shares in
               the aggregate during the Term. In addition, the number of Shares
               available for grants under the Plan or to a Participant in any
               fiscal year shall not be reduced by Awards granted or Shares
               issued by the Company through the assumption of, or in
               substitution or exchange for awards or the right or obligation to
               make future grants of awards in connection with the acquisition
               of another corporation or business entity or in connection with
               the assumption of any Award granted by Lucent Technologies Inc.
               ("Lucent") to an Employee who becomes an Avaya Individual as
               defined in the Employee Benefits agreement dated as of October 1,
               2000 between the Company and Lucent. Any Shares issued under the
               Plan may consist, in whole or in part, of authorized and unissued
               Shares, Shares purchased in the

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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

               open market or otherwise, treasury Shares, or any combination of
               the foregoing, as the Board or the Committee may from time to
               time determine.

         (b)   In the event of any merger, reorganization, consolidation,
               recapitalization, stock dividend, stock split, reverse stock
               split, spin off or similar transaction or other change in
               corporate structure affecting the Shares, such adjustments and
               other substitutions shall be made to the Plan, and to Awards as
               the Committee in its sole discretion deems equitable or
               appropriate, including: such adjustments in the aggregate number,
               class and kind of Shares or other consideration which may be
               delivered under the Plan, in the aggregate or to any one
               Participant; in the number, class, kind and option or exercise
               price of Shares subject to outstanding Awards granted under the
               Plan; and in the number, class and kind of Shares subject to
               Awards granted under the Plan (including, if the Committee deems
               appropriate, the substitution of similar options to purchase the
               shares of, or other awards denominated in the shares of, another
               company) provided, however, that the number of Shares or other
               securities subject to any Award shall always be a whole number.

         (c)   Except as provided in Article 20, the Committee shall be
               authorized to make adjustments in Performance Award criteria or
               in the terms and conditions of other Awards in recognition of
               unusual or nonrecurring events affecting the Company or its
               financial statements, or changes in applicable laws, regulations
               or accounting principles. The Committee may correct any defect,
               supply any omission or reconcile any inconsistency in the Plan or
               any Award in the manner and to the extent it shall deem
               desirable. In the event the Company shall assume outstanding
               employee benefit awards or the right or obligation to make future
               such awards in connection with the acquisition of another
               corporation or business entity, the Committee may, in its
               discretion, make such adjustments in the terms of Awards under
               the Plan as it shall deem appropriate.

                           ARTICLE 4 - ADMINISTRATION

The Plan shall be administered by the Committee. The Committee shall be
responsible to the Board for the operation of the Plan. The Committee may
appoint one or more Directors to serve as the Stock Award Committee to make
grants of Options, administer the Plan, discharge the duties of the Committee
under Articles 5, 6, 7, 8, 9 and 14 with respect to Employees other than
officers and directors of the Company, and adopt rules and regulations under the
Plan and make interpretations of the Plan with respect to such Employees. If the
Committee does not appoint a Stock Award Committee, the Plan shall be
administered by the Committee. The Committee or the Stock Award Committee may
appoint a Delegate to administer and interpret the provisions of the Plan,
promulgate rules and regulations under the Plan, discharge the duties of the
Committee under Articles 9 and 14, designate employees to perform ministerial
functions under this Plan and execute documents on behalf of the Company;
provided, however, that any Delegate appointed pursuant to this Article 4 who is
a Participant in the Plan shall not participate in making any decision that
would benefit such Delegate, except to the extent such decision would only
incidentally benefit the Delegate and would also generally benefit a larger
class of Employees.

The interpretations and construction of any provision of the Plan by the
Committee, the Stock Award Committee, or the Delegate, as the case may be, as
well as any factual determinations, shall be final, unless otherwise determined
by the Board. No member of the Board, the Committee, the Stock Award Committee
or any Delegate shall be liable for any action or determination made by him or
her in good faith.

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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

                             ARTICLE 5 - ELIGIBILITY

(a) The Committee, in its sole discretion, may grant an Award to any Employee
who is actively employed by the Company or a Subsidiary. The adoption of this
Plan shall not be deemed to give any Employee any right to be granted an Award,
except and to the extent and upon such terms and conditions as may be determined
by the Committee.

(b) Neither this Plan nor any Award shall be construed as giving any person the
right to be retained in the employ of the Company or any Subsidiary. No Employee
or Participant shall have any claim to be granted any Award under the Plan, and
there is no obligation of uniformity of treatment of Employees or Participants
under the Plan. This Plan creates no ongoing obligation of the Company to
provide any future benefit of similar value. The provisions of any Award need
not be the same with respect to each recipient of an Award of the same type.

                          ARTICLE 6 - AWARDS -- GENERAL

(a) Awards may be granted to Participants either alone or in addition to any
other type of Award granted under the Plan. Awards may be granted for no
consideration, for such minimum consideration as is required by applicable law
or for such other consideration as the Committee may determine. Any Award
granted under the Plan shall be evidenced by an Award Agreement in such form as
the Committee may from time to time approve. The prospective recipient of any
Award shall not, with respect to such Award, be deemed to have become a
Participant, or to have any rights with respect to such Award, until and unless
such recipient shall have executed and delivered to the Company an Award
Agreement evidencing the Award, and otherwise complied with the then applicable
terms and conditions. The term of each Award shall be for such period of months
or years from the date of its grant as may be determined by the Committee;
provided that in no event shall the term of any Incentive Option or any Stock
Appreciation Right related to any Incentive Option exceed a period of ten (10)
years from its Grant Date. The Committee may impose such conditions on the
exercise or vesting of any Award as it shall deem appropriate.

(b) Subject to the provisions of this Plan and any Award Agreement, the
recipient of an Award (including, without limitation, any deferred Award) may,
if so determined by the Committee, be entitled to receive, currently or on a
deferred basis, interest or dividends, or interest or dividend equivalents
(collectively, "Dividend Equivalents"), with respect to the number of Shares
covered by the Award, as determined by the Committee, in its sole discretion,
and the Committee may provide that such amounts (if any) shall be deemed to have
been reinvested in additional Shares or otherwise reinvested.

                               ARTICLE 7 - OPTIONS

         An Option is a right to purchase Shares subject to the following terms
and conditions and to such additional terms and conditions, not inconsistent
with the provisions of the Plan, as the Committee shall deem desirable:

         (a) OPTION PRICE. The exercise price per Share under an Option shall be
determined by the Committee in its sole discretion; provided that except in the
case of an Option pursuant to a Substitute Award, such exercise price shall not
be less than the Fair Market Value of a Share on the date of the grant of the
Option.

         (b) EXERCISABILITY. Options shall be exercisable at such time or times
as determined by the Committee at or subsequent to grant. Unless otherwise
determined by the Committee at or

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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

subsequent to grant, no Incentive Option shall be exercisable during the year
ending on the day before the first anniversary date of the granting of the
Incentive Option.

         (c) METHOD OF EXERCISE. Subject to the other provisions of the Plan and
any applicable Award Agreement, any Option may be exercised by the Participant
in whole or in part at such time or times, and the Participant may make payment
of the option price in such form or forms, including, without limitation,
payment by delivery of cash, Shares or other consideration (including, where
permitted by law and the Committee, Awards) having a fair market value on the
exercise date equal to the total option price, or by any combination of cash,
Shares and other consideration as the Committee may specify in the applicable
Award Agreement.

         (d) INCENTIVE OPTIONS. In accordance with rules and procedures
established by the Committee, the aggregate Fair Market Value (determined as of
the time of grant) of the Shares with respect to which Incentive Options held by
any Participant which are exercisable for the first time by such Participant
during any calendar year under the Plan (and under any other benefit plans of
the Company or of any parent or Subsidiary of the Company) shall not exceed
$100,000 or, if different, the maximum limitation in effect at the time of grant
under Section 422 of the Code, or any successor provision, and any regulations
promulgated thereunder. The terms of any Incentive Option shall comply in all
respects with the provisions of Section 422 of the Code, or any successor
provision, and any regulations promulgated thereunder.

         (e) FORM OF SETTLEMENT. In its sole discretion, the Committee may
provide, at the time of grant, that the Shares to be issued upon an Option's
exercise shall be in the form of Restricted Stock or other similar securities,
or may reserve the right so to provide after the time of grant.

                      ARTICLE 8 - STOCK APPRECIATION RIGHTS

         A Stock Appreciation Right is a right to receive in cash the difference
between the Fair Market Value of a Share on the exercise date and the Grant
Date. A Stock Appreciation Right shall otherwise have the same terms and
conditions as an Option. Any Stock Appreciation Right related to a Nonstatutory
Option may be granted at the same time such Option is granted or at any time
thereafter before exercise or expiration of such Option. Any Stock Appreciation
Right related to an Incentive Option must be granted at the same time such
Option is granted. In the case of any Stock Appreciation Right related to any
Option, the Stock Appreciation Right or applicable portion thereof shall
terminate and no longer be exercisable upon the termination or exercise of the
related Option, except that a Stock Appreciation Right granted with respect to
less than the full number of Shares covered by a related Option shall not be
reduced until the exercise or termination of the related Option exceeds the
number of Shares not covered by the Stock Appreciation Right. Any Option related
to any Stock Appreciation Right shall no longer be exercisable to the extent the
related Stock Appreciation Right has been exercised.

                          ARTICLE 9 - RESTRICTED STOCK

         Restricted Stock is an Award in the form of Shares issued with the
restriction that the Participant may not sell, transfer, pledge or assign the
Shares and with any other restrictions that the Committee may impose (including
restrictions on the right to vote or receive cash dividends on the Shares) which
restrictions may lapse separately or in combination at such time or times, in
installments or otherwise, as the Committee shall determine. A Restricted Stock
Award may be evidenced in such manner as the Committee in its sole discretion
shall deem appropriate, including, without limitation, book-entry registration
or issuance of a stock certificate or certificates. In the event any stock
certificate is issued in respect of a Restricted Stock Award,

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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

such certificate shall be registered in the name of the Participant, and shall
bear an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Award.

                         ARTICLE 10 - PERFORMANCE AWARDS

         A Performance Award is an Award of Performance Units or Performance
Shares which vests and becomes non-forfeitable based on performance criteria
determined by the Committee to be achieved over a prescribed Performance Period.
An Award of Performance Shares is a number of units valued by reference to a
designated number of Shares, and an Award of Performance Units is a number of
units valued by reference to a designated amount of property other than Shares.
The performance criteria to be achieved during any Performance Period and the
length of the Performance Period shall be determined by the Committee upon the
grant of each Performance Award or at any time thereafter. Except as provided in
Articles 12 and 14, Performance Awards will be distributed only after the end of
the relevant Performance Period. Performance Awards may be paid in cash, Shares,
other property or any combination of the foregoing, in the sole discretion of
the Committee upon the grant of the Performance Award. The performance levels
which have been achieved for each Performance Period and the amount of the Award
to be distributed shall be conclusively determined by the Committee. Performance
Awards may be paid in a lump sum or in installments following the close of the
Performance Period.

                      ARTICLE 11 - OTHER STOCK UNIT AWARDS

         Other Awards of Shares and other Awards that are valued in whole or in
part by reference to, or are otherwise based on, Shares ("Other Stock Unit
Awards") may be paid in Shares, other securities of the Company, cash or any
other form of property as the Committee shall determine [upon the grant of the
Other Stock Unit Award]. Other Stock Unit Awards may be issued with such
restrictions that the Committee may impose which restrictions may lapse
separately or in combination at such time or times, in installments or
otherwise, as the Committee shall determine. Shares purchased pursuant to other
Stock Unit Awards shall be purchased for such consideration as the Committee
shall in its sole discretion determine, which shall not be less than the Fair
Market Value of such Shares as of the date such Award is granted.

                     ARTICLE 12 - TERMINATION OF EMPLOYMENT

Except as shall otherwise be provided in an Award Agreement, the provisions of
this Article 12 shall govern rights of Participants to exercise Options
following termination of employment. If a Participant terminates employment for
any reason other than Retirement, Disability or death (i) any portion of the
Participant's Options which are exercisable on the date employment terminates
may be exercised until the earlier of ninety days following termination of
employment or the original Expiration Date of the Option, and (ii) any portion
of an Option that is not exercisable on the date employment terminates shall be
forfeited and canceled, except that if the reason for the termination of
employment is a Company Action, then the Option shall become immediately
exercisable for the period specified in clause (i) with respect to the number of
Shares determined by the following formula, and shall be forfeited and canceled
with respect to the remaining Shares:

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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

<TABLE>
<S>                        <C>                  <C>    <C>    <C>    <C>    <C>
Shares                     Original Shares              Number of Completed Months Prior to
                                                        Termination of Employment Since
Exercisable =              Granted               X                          Granted
                                                        --------------------------------------
                                                        Number of Months from Grant Date to
                                                                 Full Exercisability of Option

                                                        Minus:   Number of Shares Exercisable or
                                                        Exercised Prior to Termination of Employment
</TABLE>

Upon termination of employment by reason of Retirement or Disability, any
portion of a Participant's Option that is then outstanding shall, to the extent
not then exercisable, be immediately, forfeited and canceled in its entirety. To
the extent that an Option is exercisable on the date of a Participant's
Retirement or Disability, the Option will remain exercisable until the original
Expiration Date of the Option. Notwithstanding the foregoing, if a Participant
terminates employment pursuant to a Company Action under circumstances that also
constitute Retirement for such Participant, then any portion of any Option of
the Participant which becomes exercisable by reason of this Article 12 along
with any portion of any Option of the Participant which is exercisable on the
date of termination of employment shall be exercisable, until the original
Expiration Date of the relevant Option. Upon the death of a Participant, the
outstanding portion of such Participant's Option shall, to the extent not then
exercisable, become immediately exercisable in full and the Option shall remain
exercisable until the original Expiration Date of the Option. The Committee or
its Delegate may, in its sole discretion, waive or modify the application of
this Article 12 in the case of any individual Participant. This Article 12
applies only to Options; however the Committee may provide for similar treatment
of other forms of Awards at the time that the Award is granted.

                          ARTICLE 13 - NONASSIGNABILITY

No award granted under the Plan shall be assigned or transferred by the
Participant otherwise than by will or by the laws of descent and distribution,
and such Award shall be exercisable, during the Participant's lifetime, only by
the Participant.

                    ARTICLE 14 - CHANGE IN CONTROL PROVISIONS

Notwithstanding any other provision of the plan to the contrary, unless the
Committee shall determine otherwise at the time of grant with respect to a
particular Award, in the event of a Change in Control any Options and Stock
Appreciation Rights outstanding as of the date such Change in Control is
determined to have occurred, and which are not then exercisable and vested,
shall become fully exercisable and vested to the full extent of the original
grant and any Restricted Stock or Other Stock Unit Awards which are not then
vested shall become vested and non-forfeitable to the full extent of the
Original Grant. If a Change in Control occurs or is to occur during a
Performance Period, the Committee shall determine the extent to which
Performance Awards shall vest or shall be adjusted in accordance with Article
3(c) in the event of a Change in Control. This determination shall be made by
individuals who are members of the Incumbent Board as defined in the definition
of a Change in Control in Article 1(d).

                       ARTICLE 15 - RESERVATION OF SHARES

The Company, during the term of this Plan, will at all times reserve and keep
available, and will seek or obtain from any regulatory body having jurisdiction
any requisite authority necessary to issue and to sell, the number of Shares
that shall be sufficient to satisfy the requirements of this

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                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

Plan. The inability of the Company to obtain from any regulatory body having
jurisdiction the authority deemed necessary by counsel for the Company for the
lawful issuance and sale of Shares shall relieve the Company of any liability in
respect of the failure to issue or sell Shares as to which the requisite
authority has not been obtained.

                                ARTICLE 16- TAXES

The Company and any Subsidiary shall have the right to condition the grant or
exercise of any Award on a Participant's payment of any applicable amounts
required by a governmental agency to be withheld from payment to the Participant
or paid or deducted by the Company or a Subsidiary in connection with an Award
("withholding tax"). The Company and any Subsidiary shall also have the right to
deduct any withholding tax from a Participant's other compensation or to make
any other arrangements to satisfy withholding tax obligations, including
arrangements with one or more brokerage firms pursuant to cashless exercise
procedures. The Company and any Subsidiary shall further have the right to
deduct from any payment under an Award under the Plan or from a Participant's
other compensation any tax or social insurance payment imposed on the Company or
Subsidiary in connection with such Award.

            ARTICLE 17 - EMPLOYEES BASED OUTSIDE OF THE UNITED STATES

Notwithstanding any provision of the Plan to the contrary, in order to foster
and promote achievement of the purposes of the Plan or to comply with the
provisions of laws in other countries in which the Company and its Subsidiaries
operate or have Employees, the Committee or its Delegate, in its sole
discretion, shall have the power and authority to (1) determine which Employees
that are subject to the tax laws of nations other than the United States are
eligible to participate in the Plan, (2) modify the terms and conditions of any
Awards granted to such Employees (including the grant of Stock Appreciation
Rights or some other comparable form of award ("Substitute Award") in lieu of
Options, and (3) establish subplans, modified Option exercise procedures and
other terms and procedures to the extent such actions may be necessary or
advisable; provided, however, that the Committee may not grant such Awards that
do not comply with the limitations of Article 3. Any subplans established under
this Article 17 by the Committee shall be attached to this Plan as appendices.
The terms of this Plan applicable to Options shall apply with like effect to
Stock Appreciation Rights, Restricted Stock Awards, Performance Awards, Other
Stock Unit Awards and Substitute Awards to the extent legally permissible.

                   ARTICLE 18 - RIGHTS TO CONTINUED EMPLOYMENT

Neither this Plan nor any Option shall be construed as giving any person the
right to be retained in the employ of the Company or any Subsidiary. No Employee
or Participant shall have any claim to be granted any Option under the Plan or
to include any Option or its value in any form of severance or similar pay, or
in any benefit plan or program which by its terms does not specifically include
the value of the Option. There is no obligation of uniformity of treatment of
Employees or Participants under the Plan. This Plan is of limited duration and
creates no ongoing obligation of the Company to provide any future benefit of
similar nature or value.

                         ARTICLE 19 - AMENDMENT OF PLAN

                                      -13-
<PAGE>   14
                    AVAYA INC. 2000 LONG TERM INCENTIVE PLAN

The Board may amend the Plan at any time and from time to time. The Board may,
at any time or from time to time, suspend or terminate this Plain in whole or in
part.

No such amendment, suspension or termination of the Plan may, however, impair
any Award granted prior to such amendment, suspension or termination, without
the written consent of the affected Participant.

                            ARTICLE 20 - TERM OF PLAN

The Plan shall become effective as of October 1, 2000.

The Plan shall terminate on October 1, 2005 or at such earlier date as may be
determined by the Board of Directors. Termination of the Plan, however, shall
not affect the rights of Participants under Awards previously granted to them,
and all unexpired Awards shall continue in force and operation after termination
of the Plan except as they may lapse or be terminated pursuant to this Plan.

                   ARTICLE 21 - CODE SECTION 162(m) PROVISIONS

         (a) Notwithstanding any other provision of this Plan, if the Committee
determines at the time Restricted Stock, a Performance Award or an Other Stock
Unit Award is granted to a Participant that such Participant is, or may be as of
the end of the tax year for which the Company would claim a tax deduction in
connection with such Award, a Covered Employee, then the Committee may provide
that this Article 24 is applicable to such Award under such terms as the
Committee shall determine.

         (b) If an Award is subject to this Article 24, then the lapsing of
restrictions thereon and the distribution of cash, Shares or other property
pursuant thereto, as applicable, shall be subject to the Company having a level
of Net Income for the fiscal year preceding lapse or distribution set by the
Committee within the time prescribed by Section 162(m) of the Code or the
regulations thereunder in order for the level to be considered
"pre-established". The Committee may, in its discretion, reduce the amount of
any Performance Award or Other Stock Unit Award subject to this Article 24 at
any time prior to payment based on such criteria as it shall determine,
including but not limited to individual merit and the attainment of specified
levels of one or any combination of the following: net cash provided by
operating activities, earnings per Share from continuing operations, operating
income, revenues, gross margin, return on operating assets, return on equity,
economic value added, stock price appreciation, total shareowner return
(measured in terms of stock price appreciation and dividend growth), or cost
control, of the Company or the Subsidiary or division of the Company for or
within which the Participant is primarily employed.

         (c) Notwithstanding any contrary provision of the Plan other than
Article 14, the Committee may not adjust upwards the amount payable pursuant to
any Award subject to this Article 24, nor may it waive the achievement of the
Net Income requirement contained in Article 24(b), except in the case of the
death or disability of a Participant.

         (d) Prior to the payment of any Award subject to this Article 24, the
Committee shall certify in writing that the Net Income requirement applicable to
such Award was met.

         (e) The Committee shall have the power to impose such other
restrictions on Awards subject to this Article 24 as it may deem necessary or
appropriate to ensure that such Awards

                                      -14-
<PAGE>   15
satisfy all requirements for "performance-based compensation" within the meaning
of Section 162(m)(4)(C) of the Code, the regulations promulgated thereunder, and
any successors thereto.

                           ARTICLE 22 - GOVERNING LAW

The Plan, and the validity and construction of any Awards granted hereunder
shall be governed by the laws of the State of Delaware.

IN WITNESS WHEREOF, the Company has caused this Plan, as amended, to be executed
on this ___ day of ________, 2000.

For Avaya Inc.

By:      __________________________

Attest:  __________________________

                                      -15-<PAGE>   1
                                                                   Exhibit 10.12

                                 AVAYA INC. 2000

                             STOCK COMPENSATION PLAN

                           FOR NON-EMPLOYEE DIRECTORS

                            EFFECTIVE OCTOBER 1, 2000
<PAGE>   2
       AVAYA INC. 2000 STOCK COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

                               ARTICLE 1. PURPOSE.

         The purpose of the Avaya Inc. 2000 Stock Compensation Plan for
Non-Employee Directors (the "Plan") is to enable Avaya Inc., a Delaware
corporation (the "Company"), to attract and retain qualified persons to serve as
directors, to enhance the equity interest of directors in the Company, and to
solidify the common interests of its directors and shareholders in enhancing the
value of the Company's common stock. The Plan seeks to encourage the highest
level of director performance by providing directors with a proprietary interest
in the Company's performance and progress.

                             ARTICLE 2. DEFINITIONS.

         As used in the Plan, the following terms shall have the meanings set
forth below:

         "Affiliate" shall mean (i) any Person that directly, or through one or
more intermediaries, controls, or is controlled by, or is under common control
with, the Company or (ii) any entity in which the Company has a significant
equity interest, as determined by the Committee.

         "Annual Meeting" shall mean the Company's annual, general meeting of
shareholders.

         "Annual Term" shall mean each twelve calendar-month period beginning on
March 1, 2001 and each March 1 thereafter.

         "Board" shall mean the Board of Directors of the Company.

         "Business Day" means any day on which the New York Stock Exchange is
open for transaction of business.

         "Change in Control" shall mean the happening of any of the following
events:

                  (i) An acquisition by any individual, entity or group (within
the meaning of Article 13(d)(3) or 14(d)(2) of the Exchange Act) (an "Entity")
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 20% or more of either (A) the then outstanding shares of common
stock of the Company (the "Outstanding Company Common Stock") or (B) the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the "Outstanding
Company Voting Securities"); excluding, however, the following: (1) any
acquisition directly from the Company, other than an acquisition by virtue of
the exercise of a conversion privilege unless the security being so converted
was itself acquired directly from the Company, (2) any acquisition by the
Company, (3)

                                       2
<PAGE>   3
       AVAYA INC. 2000 STOCK COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, or (4)
any acquisition by any corporation pursuant to a transaction which complies with
clauses (A), (B) and (C) of section (iii) of this sentence; or

                  (ii) A change in the composition of the Board during any two
year period such that the individuals who, as of the beginning of such two year
period, constitute the Board (such Board shall be hereinafter referred to as the
"Incumbent Board") cease for any reason to constitute at least a majority of the
Board; provided, however, that for purposes of this definition, any individual
who becomes a member of the Board subsequent to the beginning of the two year
period, whose election, or nomination for election by the Company's
shareholders, was approved by a vote of at least a majority of those individuals
who are members of the Board and who were also members of the Incumbent Board
(or deemed to be such pursuant to this proviso) shall be considered as though
such individual were a member of the Incumbent Board; and provided further,
however, that any such individual whose initial assumption of office occurs as a
result of or in connection with either an actual or threatened election contest
(as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of an Entity other than the Board shall not be so considered as
a member of the Incumbent Board; or

                  (iii) The approval by the shareholders of the Company of a
merger, reorganization or consolidation or sale or other disposition of all or
substantially all of the assets of the Company (each, a "Corporate Transaction")
or, if consummation of such Corporate Transaction is subject, at the time of
such approval by shareholders, to the consent of any government or governmental
agency, the obtaining of such consent (either explicitly or implicitly by
consummation); excluding however, such a Corporate Transaction pursuant to which
(A) all or substantially all of the individuals and entities who are the
beneficial owners of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Corporate Transaction will
beneficially own, directly or indirectly, more than 60% of the outstanding
shares of common stock, and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors of the
corporation resulting from such Corporate Transaction (including, without
limitation, a corporation or other Person which as a result of such transaction
owns the Company or all or substantially all of the Company's assets either
directly or through one or more subsidiaries (a "Parent Company")) in
substantially the same proportions as their ownership, immediately prior to such
Corporate Transaction, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities, (B) no Entity (other than the Company, any employee
benefit plan (or related trust) of the Company, such corporation resulting from
such Corporate Transaction or, if reference was made to equity ownership of any
Parent Company for purposes of determining whether clause (A) above is satisfied
in connection with the applicable Corporate Transaction, such Parent Company)
will beneficially own, directly or indirectly, 20% or more of, respectively, the
outstanding shares of common stock of the corporation resulting from

                                       3
<PAGE>   4
       AVAYA INC. 2000 STOCK COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

such Corporate Transaction or the combined voting power of the outstanding
voting securities of such corporation entitled to vote generally in the election
of directors unless such ownership resulted solely from ownership of securities
of the Company prior to the Corporate Transaction, and (C) individuals who were
members of the Incumbent Board will immediately after the consummation of the
Corporate Transaction constitute at least a majority of the members of the board
of directors of the corporation resulting from such Corporate Transaction (or,
if reference was made to equity ownership of any Parent Company for purposes of
determining whether clause (A) above is satisfied in connection with the
applicable Corporate Transaction, of the Parent Company); or

                  (iv) The approval by the shareholders of the Company of a
complete liquidation or dissolution of the Company.

         "Committee" shall mean the Corporate Governance and Compensation
Committee of the Board (or any successor committee consisting of two or more
members of the Board).

         "Company" shall mean Avaya Inc., a Delaware corporation.

         "Deferral Plan" shall mean the Company's Deferred Compensation Plan,
and any successor or replacement plan then in effect with respect to
Participants.

         "Exercise Date" shall have the meaning prescribed by Article 6.

         "Fair Market Value" shall mean, with respect to Shares, the average of
the highest and lowest reported sales prices, regular way, of Shares in
transactions reported on the New York Stock Exchange on the date of
determination of Fair Market Value, or if no sales of Shares are reported on the
New York Stock Exchange for that date, the comparable average sales price for
the last previous day for which sales were reported on the New York Stock
Exchange.

         "Grant Date" means the date on which an Option or Stock Retainer is
granted under the Plan.

         "Option" shall mean a non-statutory stock option granted under Article
6 of the Plan.

         "Participant" shall mean each member of the Board from time to time who
is not a full-time employee of the Company or any of its Affiliates.

         "Person" shall mean any individual, corporation, partnership,
association, joint-stock company, trust, unincorporated organization, limited
liability company, other entity or government or political subdivision thereof.

                                       4
<PAGE>   5
       AVAYA INC. 2000 STOCK COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

         "Retainer" shall mean the retainer paid to each Participant as
compensation for services as a member of the Board or any committee of the Board
with respect to each Annual Term, but shall not include any reimbursement for
expenses.

         "Shares" shall mean the shares of common stock, $.01 par value, of the
Company.

         "Stock Retainer" shall mean that portion of a Participant's Retainer
which, pursuant to Article 5 of this Plan, such Participant has elected, or is
required, to receive in Shares.

                           ARTICLE 3. ADMINISTRATION.

         The Plan shall be administered by the Committee. The Committee shall
have full power and authority, subject to such resolutions not inconsistent with
the provisions of the Plan as may from time to time be adopted by the Board, to
(i) interpret and administer the Plan and any instrument or agreement entered
into under the Plan; (ii) establish such rules and regulations and appoint such
agents as it shall deem appropriate for the proper administration of the Plan;
and (iii) make any other determination and take any other action that the
Committee deems necessary or desirable for administration of the Plan. Decisions
of the Committee shall be final, conclusive and binding upon all Persons,
including the Company, any Participants or any shareholder.

                     ARTICLE 4. SHARES SUBJECT TO THE PLAN.

         (a) Subject to adjustment as provided in Article 4(b), the total number
of Shares available for Options and Stock Retainers granted under the Plan shall
be one million (1,000,0000) Shares; provided, that if any Shares are subject to
an Option that is forfeited, expires, or otherwise is terminated without
issuance of Shares, the Shares subject to such Option shall again be available
for Options and Stock Retainers under the Plan.

         (b) In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, stock split, reverse stock split, spin-off or
similar transaction or other change in corporate structure affecting the Shares,
such adjustments and other substitutions shall be made to the Plan and to
Options as the Committee in its sole discretion deems equitable or appropriate,
including without limitation such adjustments in the aggregate number, class and
kind of Shares which may be delivered under the Plan, and in the number, class,
kind and option or exercise price of Shares subject to outstanding Options as
the Committee may determine to be appropriate in its sole discretion to prevent
dilution or enlargement of rights; provided that the number of Shares or other
securities subject to any Option shall always be a whole number.

                           ARTICLE 5. STOCK RETAINER.

                                       5
<PAGE>   6
       AVAYA INC. 2000 STOCK COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

         (a) Commencing with the Annual Term beginning March 1, 2001, each
Participant will receive fifty percent (50%) of his or her Retainer for each
Annual Term in the form of a Stock Retainer and may elect to receive all or any
portion of the remaining fifty percent (50%) of such Retainer in the form of
either a Stock Retainer or in cash; provided, that each Participant may elect to
receive in lieu of any or all of any amount to be paid as a Stock Retainer a
payment in the form of an Option for the number of Shares determined pursuant to
Article 6(b).

         (b) If any Participant fails to notify the Secretary of the Company in
writing by December 31 of the preceding Annual Term of the desired form of
payment of the Retainer for the next Annual Term, then such Participant shall be
deemed to have elected a Stock Retainer for fifty percent (50%) of the value of
such Retainer, with the remaining 50% in cash. Any such election shall be filed
on a form prescribed by the Company for this purpose and such election (or
failure to elect) shall be irrevocable as of the last date by which such
election was due to be filed with the Company.

         (c) Any Shares constituting a Stock Retainer shall be payable
automatically on March 1 of each Annual Term (or, if March 1 is not a Business
Day, on the next succeeding Business Day), commencing March 1, 2001. Payments
for the cash portion, if any, of the Annual Retainer shall be made on the same
day. A Participant's Stock Retainer shall consist of the largest number of whole
Shares having a Fair Market Value, as of the date of payment, equal to the
portion of the Retainer to be paid in Shares. The Fair Market Value of any
fractional share shall be paid in cash. A Participant may elect to have all or a
portion of the Shares or cash otherwise deliverable under this Article 5
credited to the deferred compensation account of such Participant under the
Deferral Plan to be held in, respectively, the Company Shares and cash portions
of such account.

         (d) This Article 5 shall apply to any person who becomes a Participant
other than at the beginning of an Annual Term (or the immediately preceding
Annual Meeting) with respect to the Retainer determined by the Committee to be
payable for such portion of such Annual Term which follows his or her
appointment to the Board. Such person shall make the election prescribed by
Article 5(a) no later than the 30th day following the effective date of his or
her appointment to the Board. The payment date for any cash portion of the
Retainer and the Grant Date for any Option or Stock Retainer shall be the first
Business Day which occurs at least fifteen (15) calendar days after receipt by
the Company of such election.

                              ARTICLE 6.  OPTIONS.

         (a) On or about October 2, 2000, there shall be granted to each
Participant, an inaugural grant of an Option to purchase the largest whole
number of Shares obtained by employing the following formula, on the terms and
conditions described in this plan:

                                       6
<PAGE>   7
       AVAYA INC. 2000 STOCK COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

<TABLE>
<S>                              <C>        <C>
Number of Shares =               3  X                  $50,000
                                            -----------------------------------------------
                                            Fair Market Value of a Share on October 2, 2000
</TABLE>

The value of any fractional Share shall be paid in cash.

         (b) Commencing with the Annual Term beginning March 1, 2001, there
shall be granted on March 1 of each Annual Term (or, if March 1 is not a
Business Day, on the next succeeding Business Day) to each Participant who has
elected, pursuant to Article 5, payment of all or any portion of the Retainer in
the form of an Option, an Option, on the terms and conditions described in this
Plan, to purchase the largest number of whole Shares obtained by applying the
following formula:

<TABLE>
<S>                              <C>        <C>
Number of Shares =               3  X       Dollar Amount of Retainer to be paid as an Option
                                            -------------------------------------------------
                                            Fair Market Value of a Share on March 1*
</TABLE>

         *or, if March 1 is not a Business Day, on the next succeeding Business
Day.

The value of any fractional share shall be paid in cash.

         (c) Options shall be subject to the terms and conditions set forth in
this Plan and to such additional terms and conditions, not inconsistent with the
provisions of this Plan, as the Committee shall deem desirable.

         (d) The exercise price per Share under an Option shall be the Fair
Market Value of a Share on the Grant Date, subject to adjustment as prescribed
in Article 4(b).

         (e) The term of each Option shall be ten years from the Grant Date.

         (f) Options shall be vested and non-forfeitable on the Grant Date and
be fully exercisable on the earliest of (i) the date which is six (6) months
after the Grant Date, (ii) the occurrence of a Change in Control and (iii) the
death of a Participant (any of the foregoing the "Exercise Date").

         (g) Except as provided in this Article 6(g), an Option is not
transferable other than by will or the laws of descent and distribution, and
during the lifetime of the Participant may be exercised only by such Participant
or his or her guardian or legal representative. The Option may be transferred by
the Participant, in accordance with rules established by the Company, to one or
more members of the Participant's immediate family, to a partnership of which
the only partners are members of such immediate family or to a trust established
by the Participant for the benefit of one or more members of such immediate
family (each such transferee a "Permitted Transferee"). For purposes of this
Article 6(g), "immediate family" means a Participant's spouse, parents,
children, grandchildren and spouses of children and grandchildren (including
adopted children and grandchildren, as the case may be). A Permitted Transferee
may not further transfer the Option. An Option transferred

                                       7
<PAGE>   8
       AVAYA INC. 2000 STOCK COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

pursuant to this Article 6(g) shall remain subject to all of the provisions of
the Plan and any Agreement with respect to such Option and may not be exercised
by a Permitted Transferee unless and until all legal or regulatory approvals,
listings, registrations, qualifications or other clearances as determined by the
Company to be required or appropriate have been obtained.

         (h) A Participant may, in accordance with procedures established by the
Company, designate one or more beneficiaries to receive all of his or her rights
to any unexercised Option and may change or revoke such designation at any time.
In the event of the death of the Participant, any Option or portion thereof
which is subject to such a designation shall be exercisable (to the extent such
designation is determined by the Company to be valid, effective and enforceable)
by the designated person or persons in accordance with this Plan and any
Agreement. Such determination by the Company shall be final and binding on all
Persons, and the Company shall have no liability with respect to any Person with
respect to such determination.

         (i) Any Option may be exercised by the Participant in whole or in part
at any time on or after the Exercise Date and before the expiration of such
Option. The Participant shall make payment of the Option price in cash or in
Shares with a Fair Market Value equivalent to the exercise price for all of the
Shares to be purchased upon exercise of the Option.

                     ARTICLE 7. AMENDMENTS AND TERMINATION.

         The Board may amend, alter or discontinue the Plan, but no amendment,
alteration, or discontinuation shall be made that would impair the rights of a
Participant under an Option theretofore granted, without the Participant's
consent, or that without the approval of the shareholders would:

         (a) except as is provided in Article 4(b) of the Plan, increase the
total number of shares reserved for the purpose of the Plan; or

         (b) change the Participants eligible to participate in the Plan.

                         ARTICLE 8. GENERAL PROVISIONS.

         (a) Nothing in the Plan shall be deemed to create any obligation on the
part of the Board to nominate any director for reelection by the Company's
shareholders or to limit the rights of the shareholders to remove any director.

         (b) The Company shall have the right to require, prior to the issuance
or delivery of any Shares pursuant to the Plan, payment by a Participant to the
Company of any taxes required by law to be withheld with respect to the issuance
or delivery of such Shares.

                                       8
<PAGE>   9
       AVAYA INC. 2000 STOCK COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

         (c) Shares issued or delivered under the Plan shall be in either book
entry form or in certificate form pursuant to instructions given by the
Participant to the Company. All Shares delivered under the Plan shall be subject
to such stop-transfer orders and other restrictions as the Company may deem
advisable under the rules, regulations, and other requirements of the Securities
and Exchange Commission, any stock exchange upon which the Shares are then
listed, and any applicable Federal or state securities law, and the Company may
cause a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

         (d) The issuance or delivery of any Shares under this Plan may be
postponed by the Company for such period as may be required to comply with any
applicable requirements under the Federal securities laws, any applicable
listing requirements of any national securities exchange and requirements under
any other law or regulation applicable to the issuance or delivery of such
Shares, and the Company shall not be obligated to issue or deliver any Shares if
the issuance or delivery of such Shares shall constitute a violation of any
provision of any law or of any regulation of any governmental authority or any
national securities exchange.

         (e) The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the
laws of the State of Delaware without regard to principles of conflicts of laws.

         (f) If any provision of this Plan is or becomes or is deemed invalid,
illegal or unenforceable in any jurisdiction, or would disqualify the Plan or
any Award under any law deemed applicable by the Company, such provision shall
be construed or deemed amended to conform to applicable laws or if it cannot be
construed or deemed amended without, in the determination of the Company,
materially altering the intent of the Plan, it shall be stricken and the
remainder of the Plan shall remain in full force and effect.

                       ARTICLE 9. EFFECTIVE DATE OF PLAN.

         The Plan first becomes effective on October 1, 2000.

                            ARTICLE 10. TERM OF PLAN.

         No Option or Stock Retainer shall be granted pursuant to the Plan after
October 1, 2007, but any Option theretofore granted may extend beyond that date.

                                       9
<PAGE>   10
       AVAYA INC. 2000 STOCK COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

         IN WITNESS WHEREOF, the undersigned have executed the Avaya Inc. 2000
Stock Compensation Plan for Non-Employee Directors effective as of October 1,
2000.

AVAYA INC.                                                    Attested to:

By: ____________________________            By:____________________________

                                       10

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