Document:

Exhibit 4.3
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                  CIT Group Inc. Employee Stock Purchase Plan

          The following constitute the provisions of the CIT Group Inc.
Employee Stock Purchase Plan of the CIT Group Inc., a Nevada corporation,
formerly known as Tyco Capital Corporation.

          Section 1. Purpose. The purpose of the Plan is to provide employees
of the Company and its Participating Subsidiaries with an opportunity to
purchase shares of Common Stock of the Company through payroll deductions. It
is the intention of the Company to have the Plan qualify as an "employee stock
purchase plan" under Section 423 of the Internal Revenue Code of 1986, as
amended (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 2. Definitions.

          2.1. "Account" shall mean the account established for each
Participant under the Plan.

          2.2. "Base Salary" shall mean an Employee's salary or wages for each
pay period during any Offering Period as determined from the payroll records
of the Company.

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

          2.4. "Broker" shall mean the brokerage firm designated in Section 9.

          2.5. "Closing Date" shall mean the last business day of each
Offering Period.

          2.6. "Code" shall mean the Internal Revenue Code of 1986, as
amended.

          2.7. "Committee" shall mean the Employee Benefits Committee of the
Company.

          2.8. "Common Stock" shall mean the common stock of the Company.

          2.9. "Company" shall mean the CIT Group Inc., a Nevada corporation,
formerly known as Tyco Capital Corporation, and its successors.

          2.10. "Employee" shall mean any person who is customarily employed
for at least twenty (20) hours per week by the Company or a Participating
Subsidiary.

          2.11. "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended.

          2.12. "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

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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.

          2.13. "Offering Date" shall mean the first business day of each
Offering Period.

          2.14. "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 4 hereof.

          2.15. "Option" shall mean the right of a Participant to purchase
shares of Common Stock of the Company under the Plan.

          2.16. "Participant" shall mean an Employee of the Company or
Participating Subsidiary who is enrolled in the Plan in accordance with
Section 3 hereof.

          2.17. "Participating Subsidiary" shall mean any Subsidiary that the
Company has deemed eligible to participate in the Plan from time to time.

          2.18. "Plan" shall mean the CIT Group Inc. Employee Stock Purchase
Plan.

          2.19. "Subsidiary" shall mean a corporation, domestic or foreign, of
which not less than fifty percent (50%) of the voting shares are held by the
Company or a Subsidiary, whether or not such corporation now exists or is
hereafter organized or acquired by the Company or a Subsidiary.

          Section 3. Eligibility.

          3.1. Initial Eligibility. As soon as administratively possible, any
Employee who shall be employed by the Company or a Participating Subsidiary
shall be eligible to participate in the Plan as of the date of the first
Offering Period following the Employee's commencement of employment with the
Company or a Participating Subsidiary.

          3.2. 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 shares of Common Stock or
hold outstanding options to purchase shares of Common Stock possessing five
percent (5%) or more of the total combined voting power or value of all
classes of shares of the Company or of any Subsidiary of the Company, or (ii)
which causes him or her to purchase shares of Common 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.

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          Section 4. Offering Dates. The Plan shall be implemented by one
offering during each calendar quarter period, beginning on the Effective Date
(as defined 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 shareholder approval
if such change is announced at least fifteen (15) days prior to the scheduled
beginning of the first Offering Period to be affected.

          Section 5. 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 11 hereof or, subject to Section 6 hereof, authorizes a change in the
amount of his or her payroll deductions.

          Section 6. Payroll Deductions.

          6.1. 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).

          6.2. 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.

          6.3. Changes in Deduction Percentage. A Participant may increase or
decrease his or her rate of payroll deductions (within the limitations set
forth in Section 6.1 hereof) to be effective as soon as administratively
feasible during the next Offering Period by authorizing a new rate of payroll
deductions.

          6.4. 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 8 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 11.1 hereof.

          Section 7. Grant of Option.

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          7.1. 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 7.

          7.2. Option Price Per Share. The Option price per share of such
shares of Common Stock shall be the lesser of (i) eighty- five percent (85%)
of the Fair Market Value of a share of Common Stock of the Company on the
Offering Date or (ii) eighty-five percent (85%) of the Fair Market Value of a
share of Common Stock of the Company on the Closing Date.

          Section 8. Exercise of Option. Unless a Participant withdraws from
the Plan as provided in Section 11 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 9. Designation of Broker and Participant's Account with
Broker. 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 shareholders. 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.

          Section 10. Delivery of Certificates. 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 11. Withdrawal; Termination of Employment.

          11.1. 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

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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.

          11.2. 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 16 hereof, as soon as
administratively possible, and his or her Option will be automatically
terminated.

          11.3. Reduction of Hours. In the event an Employee fails to remain
in the continuous employ of the Company or a Participating Subsidiary for at
least twenty (20) 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.

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

          Section 13. Stock.

          13.1. Shares Subject to Plan. The maximum number of shares of Common
Stock which shall be made available for sale under the Plan shall be one
million (1,000,000), 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 7.1 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 Option grant 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 shareholder 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 shareholder 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

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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.

          13.2. 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.

          13.3. 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 14. 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.

          Section 15. Administration. The Plan shall be administered by the
Committee. The administration, interpretation or application of the Plan by
the Committee shall be final, conclusive and binding upon all Participants.

          Section 16. 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.

          Section 17. 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 16 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 11 hereof.

          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 8 hereof.

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          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 shareholders 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 and Governance 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 and Governance Committee of the Board
may, if it so determines in the exercise of its sole discretion, also make
provision 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 or discontinue the Plan, but no amendment, alteration,
suspension 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. Shareholder Approval of Amendments. The Company shall obtain
shareholder approval of any Plan amendment to the extent necessary and
desirable to comply with Rule 16b-3 promulgated under the Exchange Act or with
Section 423 of the Code (or any successor statute or rule or other applicable
law, rule or regulation), such shareholder approval to be obtained in such a
manner and to such a degree as is required by the 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.

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          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 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 in accordance with the procedures 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.

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          26.1. Governing Law. The Plan shall be construed in accordance with
and governed by the laws of the State of New Jersey.

          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 shall be subject to all applicable laws, rules, and
regulations, and to such approvals as may be required.

          Section 27. Effective Date and Approval of Plan by Shareholders. The
Plan shall become effective on the first day of the first Offering Period
beginning as soon as administratively practicable after the Company commences
the public sale of Common Stock (the "Effective Date"), subject however, to
receipt of approval of the Plan by shareholders of the Company in accordance
with Section 423(b)(2) of the Code.

                                      9Exhibit 4.3

               CIT Group Inc. Long-Term Equity Compensation Plan
                         Effective as of June 1, 2002

                           Section 1.  Establishment, Objectives, and Duration

                           1.1. Establishment of the Plan. CIT Group Inc., a
         Delaware corporation, formerly known as Tyco Capital Corporation
         ("CIT"), hereby establishes an incentive compensation plan to be
         known as the "CIT Group Inc. Long-Term Equity Compensation Plan"
         (hereinafter referred to as the "Plan"), as set forth in this
         document. The Plan permits the grant of Annual Incentive Awards,
         Nonqualified Stock Options, Incentive Stock Options, Stock
         Appreciation Rights, Restricted Stock, Performance Shares and
         Performance Units. The Plan is effective as of June 1, 2002 (the
         "Effective Date") and shall remain in effect as provided in Section
         1.3 hereof.

                           1.2. Objectives of the Plan. The objectives of the
         Plan are to optimize the profitability and growth of the Company
         through incentives which are consistent with the Company's goals and
         which link the personal interests of Participants to those of the
         Company's stockholders; to provide Participants with an incentive for
         excellence in individual performance; and to promote teamwork among
         Participants. The Plan is further intended to provide flexibility to
         the Company in its ability to motivate, attract, and retain the
         services of Participants who make significant contributions to the
         Company's success and to allow Participants to share in the success
         of the Company.

                           1.3. Duration of the Plan. The Plan shall commence
         on the Effective Date, as described in Section 1.1 hereof, and shall
         remain in effect, subject to the right of the Committee to amend or
         terminate the Plan at any time pursuant to Section 14 hereof, until
         all Awards granted hereunder are satisfied by the issuance of Shares
         and/or the payment of cash. However, in no event may an Award be
         granted under the Plan on or after the tenth anniversary of the
         Effective Date.

                           Section 2. Definitions. Except where the context
         otherwise indicates, any masculine term used herein shall include the
         feminine, the plural shall include the singular, and the singular
         shall include the plural. Whenever used in the Plan, the following
         terms shall have the meanings set forth below, and when the meaning
         is intended, the initial letter of the word shall be capitalized:

                  2.1.  "Annual Incentive Award" means an award granted to a
         Participant described in Section 6.

                           2.2. "Award" means, individually or collectively, a
         grant under this Plan of Annual Incentive Awards, Nonqualified Stock
         Options, Incentive Stock Options, Stock Appreciation Rights,
         Restricted Stock, Performance Shares or Performance Units.

                           2.3. "Award Agreement" means an agreement entered
         into by CIT and each Participant setting forth the terms and
         provisions applicable to an Award.

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                           2.4. "Beneficially Owned", "Beneficially Owns",
         "Beneficial Owner" or "Beneficial Ownership" shall have the
         respective meanings ascribed thereto or used in Section 13d-3 under
         the Exchange Act.

                           2.5.  "Board" or "Board of Directors" means the
         board of directors of CIT.

                           2.6. "Business Entity" means any corporation,
         partnership, limited liability company, joint venture, association,
         joint stock company, trust, unincorporated organization or other
         business entity.

                           2.7.  "Change of Control" means:

                                    (a) The acquisition by any Person (in any
                  case, the "Acquiror") of direct or indirect Beneficial
                  Ownership of Voting Securities of any CIT Entity, as a
                  result of which such Acquiror becomes, directly or
                  indirectly, the Beneficial Owner of Voting Securities
                  representing 30% or more of the combined voting power of all
                  Voting Securities of such CIT Entity outstanding immediately
                  thereafter, provided that none of the following shall
                  constitute a Change of Control: (1) any such acquisition in
                  any Non-Control Transaction; or (2) any such acquisition by
                  such CIT Entity, any Subsidiary of such CIT Entity, or any
                  employee benefit plan (or related trust) maintained by such
                  CIT Entity or any Subsidiary thereof; or (3) any such
                  acquisition by Tyco, if immediately prior thereto, each CIT
                  Entity (other than Tyco) is Controlled by Tyco; or (4) any
                  such acquisition directly from such CIT Entity (other than
                  Tyco) if, immediately prior thereto, such CIT Entity is not
                  Controlled by any Person (excluding, however, any such
                  acquisition directly from such CIT Entity resulting from the
                  exercise of any conversion, exchange or exercise privilege
                  unless the security being so converted, exchanged or
                  exercised was acquired directly from such CIT Entity at a
                  time when such CIT Entity was not Controlled by any Person);
                  provided further that if any Acquiror becomes, directly or
                  indirectly, the Beneficial Owner of Voting Securities
                  representing 30% or more of the combined voting power of the
                  then outstanding Voting Securities of such CIT Entity by
                  reason of any acquisition of outstanding Voting Securities
                  by such CIT Entity no Change of Control shall be deemed to
                  have occurred by reason thereof unless and until such
                  Acquiror shall thereafter become the Beneficial Owner of any
                  additional Voting Securities of such CIT Entity under
                  circumstances where, after giving effect thereto, the
                  aforesaid percentage is met, and provided further that no
                  such acquisition (unless Tyco is the CIT Entity whose Voting
                  Securities are being acquired) shall give rise to a Change
                  of Control for so long as, after giving effect thereto, Tyco
                  remains the direct or indirect Beneficial Owner of Voting
                  Securities representing more than 50% of the combined voting
                  power of all Voting Securities of each CIT Entity (other
                  than Tyco); or; or

                                    (b) Consummation of any of the following
                  (each, a "Business Transaction"): (i) any reorganization,
                  merger, statutory share exchange or consolidation or similar
                  corporate transaction involving any CIT Entity, (ii) any
                  sale or other disposition of all or substantially all of the
                  assets of any CIT Entity,

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                  or (iii) any acquisition of assets or stock of another
                  Business Entity by any CIT Entity, unless, in any such case,
                  such Business Transaction is a Non-Control Transaction; or

                                    (c)  Consummation of a complete liquidation
                  or dissolution of any CIT Entity; or

                                    (d) If (i) a Change of Control shall not
                  have theretofore occurred and CIT is still Controlled by
                  Tyco, or (ii) a Change of Control shall not have theretofore
                  occurred and CIT is no longer Controlled by Tyco, or (iii) a
                  Change of Control shall have theretofore occurred,
                  individuals who in any such case constitute the then
                  applicable Incumbent Board ceasing for any reason to
                  constitute at least two-thirds of the board of directors of
                  the Ultimate CIT Entity.

                           2.8.  "CIT Entity" means CIT (including its
successors) and any Business Entity Controlling CIT.

                           2.9.  "Code" means the Internal Revenue Code of
1986, as amended from time to time.

                           2.10.  "Committee" means the Compensation and
Governance Committee of the Board or, in the absence of such a committee, the
full Board.

                           2.11.  "Company" means the CIT Group Inc., a
Delaware corporation, the successor by merger to the entity formerly known as
Tyco Capital Corporation, and any successor thereto, and all Subsidiaries of
CIT.

                           2.12. "Control" means, with the respect to any
         specified Business Entity, the possession, directly or indirectly, of
         the power to direct or cause the direction of the management or
         policies of such Business Entity, whether through the ownership of
         Voting Securities, by contract or agreement or otherwise; and the
         terms "Controlling", "Controlled by" and "under common Control with"
         have correlative meanings.

                           2.13. "Covered Employee" means any Participant who
         is designated by the Committee prior to the date that the Committee
         establishes the Performance Targets for a Plan Year, to be a "covered
         employee" within the meaning of Code Section 162(m).

                           2.14.  "Director" means any individual who is a
         current or former member of the Board of Directors or the
         board of directors of any Subsidiary of CIT.

                           2.15. "Disability" means a physical or mental
         impairment sufficient to make an individual eligible for benefits
         under the Company's Long-Term Disability Plan or, in the event there
         is no Company Long-Term Disability Plan, "Disability" shall have the
         same meaning as defined in the Company Long-Term Disability Plan last
         in effect prior to the first date a Participant suffers from such
         physical or mental impairment.

                           2.16. "Distribution Agreement" means an agreement
         by and between Tyco and CIT with respect to the direct or indirect
         distribution or sale of Shares by Tyco.

                                      3
<PAGE>

                           2.17.  "Effective Date" shall have the meaning
         ascribed to such term in Section 1.1 hereof.

                           2.18.  "Employee" means any individual who is a
         current or former employee of the Company.

                           2.19. "Exchange Act" means the Securities Exchange
         Act of 1934, as amended from time to time, or any successor thereto.

                           2.20. "Fair Market Value" means the fair market
         value of Shares as determined by the Committee; provided that, unless
         otherwise determined by the Committee, the "Fair Market Value" for
         any Awards made while Shares are traded on a securities exchange
         means the closing sale price at which Shares were sold regular way on
         the relevant date on the principal securities exchange on which
         Shares were traded on such date or, if there was no sale on the
         relevant date, then on the last previous day on which there was such
         a sale.

                           2.21.  "Freestanding SAR" means an SAR that is
         granted independently of any Options, as described in Section 8 herein.

                           2.22. "Incentive Stock Option" or "ISO" means an
         option to purchase Shares granted under Section 7 herein which is
         designated as an Incentive Stock Option and which is intended to meet
         the requirements of Code Section 422.

                           2.23. "Incumbent Board" means (i) if no Change of
         Control shall have theretofore occurred and CIT is still Controlled
         by Tyco, individuals who, as of the date hereof, constitute the board
         of directors of Tyco, or (ii) if no Change of Control shall have
         theretofore occurred and CIT is no longer Controlled by Tyco,
         individuals who, immediately after CIT ceases to be Controlled by
         Tyco, constitute the board of directors of the Ultimate CIT Entity,
         or (iii) if a Change of Control shall have theretofore occurred,
         individuals who, immediately after giving effect to director changes
         made in connection with such Change of Control, constitute the board
         of directors of the Ultimate CIT Entity, provided that, in any such
         case, any individual becoming a director subsequent to such time
         whose election, or nomination for election by, the stockholders of
         the Ultimate CIT Entity was approved by a vote of at least two-thirds
         of the directors then comprising the Incumbent Board shall be deemed
         to be a member of the Incumbent Board (but excluding, for this
         purpose, any such individual whose initial assumption of office
         occurs as a result of any actual or threatened election contest with
         respect to the election or removal of directors or other actual or
         threatened solicitation of proxies or consents by or on behalf of a
         Person other than the board of directors of the Ultimate CIT Entity
         (a "proxy contest"), including by reason of any agreement intended to
         avoid or settle any election contest or proxy contest).

                           2.24. "Insider" shall mean an individual who is, on
         the relevant date, an officer, Director or Beneficial Owner of ten
         percent (10%) or more of any class of the Company's equity securities
         that is registered pursuant to Section 12 of the Exchange

                                      4
<PAGE>

         Act, all as defined under Section 16 of the Exchange Act and the
         General Rules and Regulations promulgated thereunder.

                           2.25. "Non-Control Transaction" means any Business
         Transaction involving, or engaged in by, any CIT Entity that
         satisfies all of the following criteria:

                                    (a) all or substantially all the
                  Beneficial Owners of the outstanding Voting Securities of
                  such CIT Entity, immediately prior to such Business
                  Transaction, Beneficially Own directly or indirectly 65% or
                  more of the combined voting power of the then outstanding
                  Voting Securities of the Business Entity resulting from such
                  Business Transaction (including without limitation a
                  Business Entity which as a result of such Business
                  Transaction owns such CIT Entity or all or substantially all
                  its assets either directly or indirectly through one or more
                  Subsidiaries) in substantially the same proportions as their
                  ownership, immediately prior to such Business Transaction,
                  of the Voting Securities of such CIT Entity;

                                    (b) at least two-thirds of the members of
                  the board of directors (or equivalent persons) of the
                  Ultimate CIT Entity after giving effect to such Business
                  Transaction were members of the applicable Incumbent Board
                  at the time of the execution of the initial agreement, or of
                  the action of the board of directors of such CIT Entity or
                  any other relevant CIT Entity, providing for such Business
                  Transaction; and

                                    (c) no Person (other than: such CIT
                  Entity; any Subsidiary thereof; any employee benefit plan
                  (or related trust) maintained by such CIT Entity or any
                  Subsidiary thereof; the Business Entity resulting from such
                  Business Transaction; and any Person that Beneficially
                  Owned, immediately prior to such Business Transaction,
                  directly or indirectly, Voting Securities representing 15%
                  or more of the combined voting power of the outstanding
                  Voting Securities of such CIT Entity immediately prior to
                  such Business Transaction) Beneficially Owns, directly or
                  indirectly, 15% or more of the combined voting power of the
                  then outstanding Voting Securities of the Business Entity
                  resulting from such Business Transaction.

                           2.26.  "Nonemployee Director" means a Director who
         is not an Employee of the Company.

                           2.27. "Nonqualified Stock Option" or "NQSO" means
         an option to purchase Shares granted under Section 7 herein which is
         not intended to be treated as an "incentive stock option" under Code
         Section 422.

                           2.28.  "Option" means an Incentive Stock Option or a
         Nonqualified Stock Option.

                           2.29.  "Option Price" means the price at which a
         Share may be purchased by a Participant pursuant to an Option.

                                      5
<PAGE>

                           2.30.  "Participant" means an Employee or Director
         selected by the Committee to participate in the Plan.

                           2.31.  "Performance Share" means an Award granted to
         a Participant, as described in Section 10 herein.

                           2.32. "Performance Target" means a goal which shall
         be equal to a desired level or levels for any Plan Year or Plan Years
         of any or a combination of the following criteria on an absolute or
         relative basis and, where applicable, measured before or after
         interest, depreciation, amortization, service fees, extraordinary
         items and/or special items: (i) pre-tax earnings; (ii) operating
         earnings; (iii) after-tax earnings; (iv) return on investment; (v)
         earned value added; (vi) earnings per share; (vii) revenues; (viii)
         cash flow or cash flow on investment; (ix) return on assets or return
         on net assets; (x) return on capital; (xi) return on equity; (xii)
         return on sales; (xiii) operating margin; (xiv) total shareholder
         return or stock price appreciation; or (xv) net income; in each case
         determined in accordance with generally accepted accounting
         principles (subject to modifications approved by the Committee)
         consistently applied on a business unit, divisional, subsidiary or
         consolidated basis or any combination thereof.

                           2.33.  "Performance Unit" means an Award granted to
         a Participant, as described in Section 10 herein.

                           2.34. "Period of Restriction" means the period
         during which the transfer of Shares of Restricted Stock is limited in
         some way (based on the passage of time, the achievement of a
         Performance Target, if applicable, or upon the occurrence of other
         events as determined by the Committee, in its discretion), and the
         Shares are subject to a substantial risk of forfeiture, as provided
         in Section 9 herein.

                           2.35. "Person" shall have the meaning ascribed to
         such term in Section 3(a)(9) of the Exchange Act and used in Sections
         13(d) and 14(d) thereof, including a "group" as described in Section
         13(d) thereof, and shall include any successor to such Person.

                           2.36.  "Plan" means the CIT Group Inc. Long-Term
         Equity Compensation Plan.

                           2.37.  "Plan Year" means the fiscal year of the
         Company or the calendar year, as determined by the Committee.

                           2.38.  "Restricted Stock" means an Award of Shares
         granted to a Participant pursuant to Section 9 herein.

                           2.39. "Retirement" for all Participants,
         irrespective of whether a Participant is eligible to participate in
         or is a "Member" in the CIT Group Inc. Retirement Plan effective
         January 1, 2001 (the "Retirement Plan") or whether a Participant's
         benefits are calculated pursuant to Article IV or Article V of the
         Retirement Plan, means either (i) a Participant's election to retire
         upon attaining his or her "Normal Retirement Age"; or (ii) a
         Participant's election to retire upon (A) completing at least a
         10-year "Period of

                                      6
<PAGE>

         Benefit Service" and (B) having either (1) attained age 55, or (2)
         incurred an "Eligible Termination" and, at the time of such
         "Eligible Termination," having attained age 54. The terms "Normal
         Retirement Age," "Period of Benefit Service" and "Eligible
         Termination" shall have the meanings as defined in the
         Retirement Plan.

                           2.40.  "Shares" means the shares of common stock of
         the Company.

                           2.41. "Stock Appreciation Right" or "SAR" means an
         Award, granted alone or in connection with a related Option,
         designated as an SAR, pursuant to the terms of Section 8 herein. An
         SAR may be either a Freestanding SAR or a Tandem SAR.

                           2.42. "Subsidiary" means, with respect to any
         specified Business Entity as of any time, any other Business Entity
         at least a majority of the outstanding Voting Securities of which at
         such time are Beneficially Owned, directly or indirectly, by such
         specified Business Entity.

                           2.43. "Substitute Award" means any Award or Shares
         granted or issued to a Participant (i) pursuant to the Distribution
         Agreement, (ii) in substitution or exchange for employee benefits
         awards previously granted or issued to a Participant by Tyco or CIT
         or any of its or their predecessors, subsidiaries or affiliates or
         (iii) through the assumption of, or in substitution or exchange for,
         employee benefits awards, or the right or obligation to make future
         employee benefits awards, by a Business Entity acquired by the
         Company or with which the Company combines.

                           2.44.  "Tyco" means Tyco International Ltd., a
         Bermuda company, and its successors.

                           2.45. "Tandem SAR" means an SAR that is granted in
         connection with a related Option pursuant to Section 8 herein, the
         exercise of which shall require forfeiture of the right to purchase a
         Share under the related Option (and when a Share is purchased under
         the Option, the Tandem SAR shall similarly be canceled).

                           2.46. "Ultimate CIT Entity" means (i) CIT, if CIT
         is not then Controlled by any Business Entity, or (ii) any Business
         Entity Controlling CIT that is not Controlled by any other Business
         Entity, if CIT is then Controlled by any Business Entity.

                           2.47. "Voting Securities", as applied to the stock
         or the equivalent thereof of any corporation or other Business
         Entity, means stock or such equivalent of any class or classes,
         however designated, having ordinary voting power for the election of
         directors or equivalent persons of such corporation or other Business
         Entity, other than stock or the equivalent thereof having such power
         only by reason of the occurrence of a contingency.

                           Section 3.  Administration

                           3.1.  The Administrator.  The Plan shall be
         administered by the Committee.  Notwithstanding the foregoing,
         with respect to any Award granted or to be granted to a Participant
         who is a Nonemployee Director, the Plan shall be administered

                                      7
<PAGE>

         by the full Board, and all references herein to the Committee shall be
         deemed to be references to the Board.

                           3.2. Authority of the Administrator. Except as
         limited by law or by the Certificate of Incorporation or Bylaws of
         the Company, and subject to the provisions of the Plan, the Committee
         shall have full power and authority, in its sole discretion, to (a)
         select Participants from among all eligible Employees and Directors
         and determine the nature, amount, terms and conditions of Awards in a
         manner consistent with the Plan; (b) make Awards and Substitute
         Awards to Participants; (c) construe and interpret the Plan and any
         agreement or instrument entered into under the Plan; (d) adopt,
         implement, amend, waive or rescind such rules and regulations as the
         Committee may deem appropriate for the proper administration or
         operation of the Plan; (e) subject to the provisions of Section 14,
         amend the terms and conditions of any outstanding Award to the extent
         such terms and conditions are within the discretion of the Committee
         as provided in the Plan; and (f) make all other determinations and
         take all other actions as may be necessary, appropriate or advisable
         for the administration or operation of the Plan. As permitted by law
         and to the extent permitted by Code Section 162(m), the Committee may
         delegate to any individual or committee (including a Committee of
         Nonemployee Directors, to the extent that the Committee shall not be
         so constituted) its authority, or any part thereof, as it deems
         necessary, appropriate or advisable for proper administration or
         operation of the Plan.

                           3.3. Determination of Performance Target. The
         Committee shall adopt in writing each year, within 90 days of the
         beginning of such year, the applicable Performance Target that must
         be achieved in order to receive Annual Incentive Awards, Shares of
         Restricted Stock (if applicable) or Performance Units and Performance
         Shares under the Plan.

                           3.4. Decisions Binding. All determinations,
         interpretations, decisions or other actions made or taken by the
         Committee pursuant to the provisions of the Plan and all related
         orders and resolutions of the Committee shall be final, conclusive
         and binding for all purposes and upon all persons, including without
         limitation the Company, its stockholders, Directors, Employees,
         Participants, and Participants' estates and beneficiaries.

                           Section 4.  Shares Subject to the Plan and Maximum
         Awards

                           4.1. Number of Shares Available for Grants. Subject
         to adjustment as provided in Section 4.2 and Section 4.3 herein, the
         maximum number of Shares with respect to which Awards may be granted
         to Participants under the Plan, and the maximum number of Shares that
         may be issued upon the exercise of ISOs, shall be 26 million of the
         total outstanding shares of all classes of common stock of CIT.
         Shares issued under the Plan may be either authorized but unissued
         Shares, treasury Shares or any combination thereof.

                                      8
<PAGE>

                           4.2.  Lapsed Awards, Transferred and Relinquished
         Shares, and Business Transactions.  To the fullest extent permitted
         under Rule 16b-3 of the Exchange Act and Sections 422 and 162(m) of
         the Code:

                                    (a) If any Award granted under this Plan
                  is canceled, terminates, expires, or lapses for any reason
                  without the issuance of Shares or payment in respect thereof
                  (with the exceptions of the termination of a Tandem SAR upon
                  exercise of the related Option, or the termination of a
                  related Option upon exercise of the corresponding Tandem
                  SAR), any Shares subject to such Award again shall be
                  available for the grant of an Award under the Plan.

                                    (b) If any Shares are transferred or
                  relinquished to the Company in satisfaction of all or a
                  portion of the exercise price or any withholding obligation
                  with respect to an Award granted under this Plan, any Shares
                  so transferred or relinquished shall be deemed to be
                  available for the grant of an Award under the Plan.

                                    (c) If Substitute Awards (as defined in
                  Section 2.43(iii)) are granted under the Plan in connection
                  with any acquisition or combination specifically approved by
                  CIT's shareholders, the maximum number of Shares with
                  respect to which Awards may be granted to Participants under
                  the Plan shall be increased by the number of Shares covered
                  by such Substitute Awards.

                           4.3. Adjustments in Authorized Shares. In the event
         of any change in corporate capitalization, such as a stock split,
         stock dividend or combination of shares or a corporate transaction,
         such as any merger, consolidation, separation, including a spin-off,
         or other distribution of stock or property of the Company, any
         reorganization (whether or not such reorganization comes within the
         definition of such term in Code Section 368), or any partial or
         complete liquidation of the Company, an adjustment shall be made in
         the number and class of Shares which may be delivered under Section
         4.1, in the number and class of and/or price of Shares subject to
         outstanding Awards granted under the Plan, and in the Awards limits
         set forth in subsections 4.4 (a), (b), (c), (d) and (e) as may be
         determined to be appropriate and equitable by the Committee, in its
         sole discretion, to prevent dilution or enlargement of rights,
         provided, however, that the number of Shares subject to any Award
         shall always be a whole number.

                           4.4.  Maximum Awards.  The following rules shall
         apply to grants of such Awards under the Plan:

                                    (a) Annual Incentive Awards: The maximum
                  aggregate payout with respect to Annual Incentive Awards
                  granted in any one Plan Year to any one Covered Employee
                  shall not exceed 3% of the consolidated pre-tax earnings of
                  the Company for such Plan Year.

                                    (b) Stock Options: The maximum aggregate
                  number of Shares that may be granted in the form of Stock
                  Options, pursuant to any Award granted

                                      9
<PAGE>

                  in any one Plan Year to any one single Participant shall be
                  100% of the maximum number of Shares provided under
                  Section 4.1.

                                    (c) SARs: The maximum aggregate number of
                  Shares that may be granted in the form of Stock Appreciation
                  Rights, pursuant to any Award granted in any one Plan Year
                  to any one single Participant shall be 100% of the maximum
                  number of Shares provided under Section 4.1.

                                    (d) Restricted Stock: The maximum
                  aggregate grant with respect to Awards of Restricted Stock
                  granted in any one Plan Year to any one Participant shall be
                  100% of the maximum number of Shares provided under Section
                  4.1.

                                    (e) Performance Shares/Performance Units:
                  The maximum aggregate grant with respect to Awards of
                  Performance Shares or Performance Units granted in any one
                  Plan Year to any one Participant shall be 100% of the
                  maximum number of Shares provided under Section 4.1.

                           Section 5.  Eligibility and Participation

                           5.1.  Eligibility.  Persons eligible to participate
         in this Plan include all Directors and all Employees, including
         Employees who are members of the Board.

                           5.2. Actual Participation. Subject to the
         provisions of the Plan, the Committee in its sole discretion may,
         from time to time, select from all eligible Employees and Directors,
         those to whom Awards shall be granted and shall determine the nature,
         amount and terms and conditions of each Award.

                           Section 6.  Annual Incentive Awards

                           6.1. General. Subject to the provisions of the
         Plan, the Committee may grant Annual Incentive Awards to Participants
         at any time and from time to time in such amount and upon such terms
         and conditions as the Committee may determine. At the time that
         Performance Targets are established by the Committee for a Plan Year,
         the Committee shall establish an individual Annual Incentive Award
         opportunity for such Plan Year for each Participant or group of
         Participants. A Participant's individual Annual Incentive Award
         opportunity shall be based on the achievement of specified
         Performance Targets and may be expressed in dollars, as a percentage
         of base salary, or by formula.

                           6.2. Determination of Annual Incentive Awards. The
         Committee shall determine the Annual Incentive Award, if any, subject
         to the attainment of the Performance Target and the maximum Annual
         Incentive Award limit specified in Section 4.4, payable to each
         Participant. As soon as practicable after the close of each Plan
         Year, the Committee shall determine with respect to each Participant
         whether and the extent to which any applicable Performance Targets
         were attained or exceeded. Notwithstanding any provision of the Plan
         to the contrary, the Committee, in its sole and absolute discretion,
         may decrease, but not increase, the Annual Incentive Awards paid to
         any Participant who is at such time a Covered Employee.

                                      10
<PAGE>

                           6.3.  Payment of Annual Incentive Awards.  Annual
         Incentive Awards shall be payable to Participants at such time(s) and
         in cash or in Shares of equivalent value or in some combination
         thereof, as the Committee shall determine.

                           6.4.  Termination of Employment with the Company.

                                    (a) Subject to Section 6.4(b) hereto and
                  the provisions of Section 13, if a Participant's employment
                  with the Company is terminated prior to the payment by the
                  Company of an Annual Incentive Award for any Plan Year, such
                  Award shall be forfeited and shall not be payable to the
                  Participant.

                                    (b) In the event of the Participant's
                  death, Disability or Retirement in the Plan Year, the
                  Committee may grant and authorize payment of an Award for
                  such Plan Year to the Participant or, in the event of death,
                  the Participant's beneficiary as designated under Section 11
                  hereto, in such amount as the Committee in its discretion
                  deems appropriate.

                           6.5.  Nontransferability of Annual Incentive Award.
         No right to an Annual Incentive Award may be sold, transferred,
         pledged, assigned or otherwise alienated or hypothecated, other than
         by will or by the laws of descent and distribution.

                           Section 7.  Stock Options

                           7.1. Grant of Options. Subject to the terms and
         provisions of the Plan, Options may be granted to Participants in
         such number, and upon such terms, and at any time and from time to
         time as shall be determined by the Committee; provided, however, that
         in the case of ISOs the aggregate Fair Market Value (determined at
         the time the ISO is granted) of the Shares with respect to which ISOs
         are exercisable for the first time by any optionee during any
         calendar year (under all plans of the Company and any Subsidiary)
         shall not exceed $100,000.

                           7.2. Award Agreement. Each Option granted shall be
         evidenced by an Award Agreement that shall specify the Option Price,
         the duration of the Option, the number of Shares to which the Option
         pertains, and such other provisions as the Committee shall determine.
         The Award Agreement also shall specify whether the Option is intended
         to be an ISO within the meaning of Code Section 422, or an NQSO whose
         grant is intended not to fall under the provisions of Code Section
         422.

                           7.3. Option Price. The Option Price for each grant
         of an Option under this Plan shall be at least equal to one hundred
         percent (100%) of the Fair Market Value of a Share on the date the
         Option is granted, except that (i) a Substitute Award may be granted
         with an exercise price less than, equal to or greater than the Fair
         Market Value of a Share on the date such Award is granted, (ii)
         grants of NQSOs made under the Plan concurrent with or contingent
         upon the consummation of a private placement, public offering or
         similar transaction involving Shares or other securities of the
         Company may be granted with an exercise price equal to the value or
         price attributed to Shares or such securities for purposes of such
         transaction, and (iii) in the case of an ISO granted to a Participant
         owning (actually or constructively under Code Section 424(d)) more
         than ten

                                      11
<PAGE>

         percent (10%) of the total combined voting power of all classes of
         stock of the Company or of a Subsidiary, the Option Price shall not
         be less than one hundred and ten percent (110%) of the Fair
         Market Value of the Shares on the date of grant.

                           7.4. Duration of Options. Each Option granted to a
         Participant shall expire at such time as the Committee shall
         determine at the time of grant; provided, however, that no Option
         shall be exercisable later than the tenth (10th) anniversary date of
         its grant and no ISO granted to a ten percent (10%) shareholder of
         the Company shall be exercisable later than the fifth (5th)
         anniversary of the date of grant.

                           7.5. Exercise of Options. Options granted under
         this Section 7 shall be exercisable at such times and be subject to
         such restrictions and conditions as the Committee shall in each
         instance approve, which need not be the same for each Award or for
         each Participant.

                           7.6. Payment. Options granted under this Section 7
         shall be exercised by the delivery of notice of exercise to the
         Company or its designee, setting forth the number of Shares with
         respect to which the Option is to be exercised, accompanied by full
         payment for the Shares. The Option Price upon exercise of any Option
         shall be payable to the Company or its designee in full either (a) in
         cash or its equivalent, or (b) by tendering previously acquired
         Shares having an aggregate Fair Market Value at the time of exercise
         equal to the total Option price (provided that the Shares which are
         tendered must have been held by the Participant for at least six (6)
         months prior to their tender to satisfy the Option Price), or (c) by
         a combination of (a) and (b). The Committee also may allow cashless
         exercise as permitted under applicable Federal Reserve Board
         regulations, subject to applicable securities law restrictions, or by
         any other means which the Committee determines to be consistent with
         the Plan's purpose and applicable law. Subject to any governing rules
         or regulations, as soon as practicable after receipt of a written
         notification of exercise and full payment, the Company shall deliver
         to the Participant, in the Participant's name, Share certificates in
         an appropriate amount based upon the number of Shares purchased under
         the Option(s); provided, however, that if the Committee permits
         cashless exercise of Options, a Participant may elect to receive the
         cash proceeds from the cashless exercise in lieu of Shares.

                           7.7. Restrictions on Share Transferability. The
         Committee may impose such restrictions on the transfer of any Shares
         acquired pursuant to the exercise of an Option granted under this
         Section 7 as it may deem advisable, including, without limitation,
         restrictions under applicable Federal securities laws, under the
         requirements of any stock exchange or market upon which such Shares
         are then listed and/or traded, and under any blue sky or state
         securities laws applicable to such Shares.

                           7.8. Termination of Employment with the Company.
         Subject to the provisions of Section 13, each Participant's Award
         Agreement shall set forth the extent to which the Participant shall
         have the right to exercise the Option following termination of the
         Participant's employment with the Company (and, if applicable, the
         termination of the Participant's employment with Tyco and its
         Subsidiaries). Such provisions shall be determined in the sole
         discretion of the Committee, shall be included in the Award

                                      12
<PAGE>

         Agreement entered into with each Participant, need not be uniform
         among all Options issued pursuant to this Section 7, and may reflect
         distinctions based on the reasons for termination of employment with
         the Company.

                           7.9.  Nontransferability of Options.

                                    (a) Incentive Stock Options. No ISO
                  granted under the Plan may be sold, transferred, pledged,
                  assigned, or otherwise alienated or hypothecated, other than
                  by will or by the laws of descent and distribution. Further,
                  all ISOs granted to a Participant under the Plan shall be
                  exercisable during his or her lifetime only by such
                  Participant or in the event of the Participant's legal
                  incapacity, the Participant's legal guardian or
                  representative.

                                    (b) Nonqualified Stock Options. Except as
                  otherwise provided in a Participant's Award Agreement, no
                  NQSO granted under this Section 7 may be sold, transferred,
                  pledged, assigned, or otherwise alienated or hypothecated,
                  other than by will or by the laws of descent and
                  distribution; provided, however, that Participants who are
                  executive officers of the Company or Directors may, in the
                  Committee's sole discretion, transfer a NQSO gratuitously or
                  for value to a member of such Participant's immediate family
                  or to a trust, partnership, limited liability company or
                  similar entity benefiting or owned by such Participant's
                  immediate family. Further, except as otherwise provided in a
                  Participant's Award Agreement or with respect to the
                  immediate family member or the immediate family entity of an
                  executive officer of the Company, as determined by the
                  Committee, in its sole discretion, all NQSOs granted to a
                  Participant under this Section 7 shall be exercisable during
                  his or her lifetime only by such Participant or in the event
                  of the Participant's legal incapacity, the Participant's
                  legal guardian or representative.

                           Section 8.  Stock Appreciation Rights

                           8.1. Grant of SARs. Subject to the terms and
         conditions of the Plan, SARs may be granted to Participants at any
         time and from time to time as shall be determined by the Committee.
         The Committee may grant Freestanding SARs, Tandem SARs, or any
         combination of these forms of SAR. The Committee shall have complete
         discretion in determining the number of SARs granted to each
         Participant; and, consistent with the provisions of the Plan, in
         determining the terms and conditions pertaining to such SARs. The
         grant price of a Freestanding SAR shall equal the Fair Market Value
         of a Share on the date of grant of the SAR. The grant price of Tandem
         SARs shall equal the Option Price of the related Option.

                           8.2. Exercise of Tandem SARs. Tandem SARs may be
         exercised for all or part of the Shares subject to the related Option
         upon the surrender of the right to exercise the equivalent portion of
         the related Option. A Tandem SAR may be exercised only with respect
         to the Shares for which its related Option is then exercisable.
         Notwithstanding any other provision of this Plan to the contrary,
         with respect to a Tandem SAR granted in connection with an ISO: (i)
         the Tandem SAR will expire no

                                      13
<PAGE>

         later than the expiration of the underlying ISO; (ii) the value of the
         payout with respect to the Tandem SAR may be for no more than one
         hundred percent (100%) of the difference between the Option Price of
         the underlying ISO and the Fair Market Value of the Shares subject to
         the underlying ISO at the time the Tandem SAR is exercised; and (iii)
         the Tandem SAR may be exercised only when the Fair Market Value of the
         Shares subject to the ISO exceeds the Option Price of the ISO.

                           8.3.  Exercise of Freestanding SARs.  Freestanding
         SARs may be exercised upon whatever terms and conditions the
         Committee, in its sole discretion, imposes upon them.

                           8.4. SAR Agreement. Each SAR grant shall be
         evidenced by an Award Agreement that shall specify the grant price,
         the term of the SAR, and such other provisions as the Committee shall
         determine.

                           8.5. Term of SARs. The term of an SAR granted under
         the Plan shall be determined by the Committee, in its sole
         discretion; provided, however, that such term shall not exceed ten
         (10) years.

                           8.6. Payment of SAR Amount. Upon exercise of an
         SAR, a Participant shall be entitled to receive payment from the
         Company in an amount determined by multiplying: (i) the difference
         between the Fair Market Value of a Share on the date of exercise over
         the grant price; by (ii) the number of Shares with respect to which
         the SAR is exercised. At the discretion of a Participant, the payment
         upon SAR exercise may be in cash, in Shares of equivalent value, or
         in some combination thereof, subject to the availability of Shares to
         the Company.

                           8.7. Rule 16b-3 Requirements. Notwithstanding any
         other provision of the Plan, the Committee may impose such conditions
         on exercise of an SAR (including, without limitation, the right of
         the Committee to limit the time of exercise to specified periods) as
         may be required to satisfy the requirements of any exemption from the
         liability provisions of Section 16 of the Exchange Act (or any
         successor rule).

                           8.8. Termination of Employment with the Company.
         Subject to the provisions of Section 13, each SAR Award Agreement
         shall set forth the extent to which the Participant shall have the
         right to exercise the SAR following termination of the Participant's
         employment with the Company. Such provisions shall be determined in
         the sole discretion of the Committee, shall be included in the Award
         Agreement entered into with a Participant, need not be uniform among
         all SARs issued pursuant to the Plan, and may reflect distinctions
         based on the reasons for termination of employment with the Company.

                           8.9. Nontransferability of SARs. Except as
         otherwise provided in a Participant's Award Agreement, no SAR granted
         under the Plan may be sold, transferred, pledged, assigned, or
         otherwise alienated or hypothecated, other than by will or by the
         laws of descent and distribution. Further, except as otherwise
         provided in a Participant's Award Agreement, all SARs granted to a
         Participant under the Plan shall be exercisable

                                      14
<PAGE>

         during his or her lifetime only by such Participant or in the event of
         the Participant's legal incapacity, the Participant's legal guardian or
         representative.

                           Section 9.  Restricted Stock

                           9.1. Grant of Restricted Stock. Subject to the
         terms and provisions of the Plan, the Committee, at any time and from
         time to time, may grant Shares of Restricted Stock to Participants in
         such amounts as the Committee shall determine. Such Shares of
         Restricted Stock may be granted upon the attainment of applicable
         Performance Targets or may be Awards unrelated to Performance
         Targets. As soon as practicable after the close of each Plan Year,
         the Committee shall determine with respect to each Participant
         whether and the extent to which any applicable Performance Targets
         were attained or exceeded.

                           9.2. Restricted Stock Agreement. Each Restricted
         Stock Award shall be evidenced by a Restricted Stock Award Agreement
         that shall specify the restrictions, including restrictions creating
         a substantial risk of forfeiture, the Period(s) of Restriction, the
         number of Shares of Restricted Stock granted, and such other
         provisions as the Committee shall determine. Restrictions on
         Restricted Stock shall lapse at such time(s) and in such manner and
         subject to such conditions as the Committee shall in each instance
         determine, which need not be the same for each Award or for each
         Participant.

                           9.3. Transferability. Except as provided in this
         Section 9, the Shares of Restricted Stock granted herein may not be
         sold, transferred, pledged, assigned, or otherwise alienated or
         hypothecated until the end of the applicable Period of Restriction
         established by the Committee and specified in the Restricted Stock
         Award Agreement, or upon earlier satisfaction of any other
         conditions, as specified by the Committee in its sole discretion and
         set forth in the Restricted Stock Award Agreement. All rights with
         respect to the Restricted Stock granted to a Participant under the
         Plan shall be available during his or her lifetime only to such
         Participant, or in the event of the Participant's legal incapacity,
         to the Participant's legal guardian or representative.

                           9.4. Other Restrictions. The Committee shall impose
         such other conditions and/or restrictions on any Shares of Restricted
         Stock granted pursuant to the Plan as it may deem advisable
         including, without limitation, a requirement that Participants pay a
         stipulated purchase price for each Share of Restricted Stock,
         time-based restrictions on vesting following the attainment of the
         Performance Target, if applicable, and/or restrictions under
         applicable Federal or state securities laws. The Company or its
         designee shall retain the certificates representing Shares of
         Restricted Stock in the Company's possession until such time as all
         conditions and/or restrictions applicable to such Shares have been
         satisfied. Except as otherwise provided in this Section 9, Shares of
         Restricted Stock covered by each Restricted Stock grant made under
         the Plan shall become freely transferable by the Participant after
         the last day of the applicable Period of Restriction.

                                      15
<PAGE>

                           9.5.  Voting Rights.  During the Period of
         Restriction, Participants holding shares of Restricted Stock
         granted hereunder may exercise full voting rights with respect to
         those Shares.

                           9.6. Dividends and Other Distributions. During the
         Period of Restriction, Participants holding Shares of Restricted
         Stock granted hereunder may be credited with regular cash dividends
         paid with respect to the underlying Shares while they are so held.
         The Committee may apply any restrictions to the dividends that the
         Committee deems appropriate. In the event that any dividend
         constitutes a "derivative security" within the meaning of Rule 16a-1
         of the General Rules and Regulations promulgated under the Exchange
         Act or an "equity security" within the meaning of Section 3(a)(11) of
         the Exchange Act, such dividend shall be subject to a period of
         restriction equal to the remaining Period of Restriction applicable
         to the Restricted Stock with respect to which the dividend has been
         paid.

                           9.7. Termination of Employment with the Company.
         Subject to the provisions of Section 13, each Restricted Stock Award
         Agreement shall set forth the extent to which the Participant shall
         have the right to receive unvested Restricted Shares following
         termination of the Participant's employment with the Company (and, if
         applicable, the termination of the Participant's employment with Tyco
         and its Subsidiaries). Such provisions shall be determined in the
         sole discretion of the Committee, shall be included in the Award
         Agreement entered into with each Participant, need not be uniform
         among all Shares of Restricted Stock issued pursuant to the Plan, and
         may reflect distinctions based on the reasons for termination of
         employment with the Company.

                          Section 10.  Performance Units and Performance Shares.

                          10.1. Grant of Performance Units/Shares. Subject to
         the terms of the Plan, Performance Units and/or Performance Shares
         may be granted to Participants in such amounts and upon such terms,
         and at any time and from time to time, as shall be determined by the
         Committee upon the attainment of the Performance Target. Each Award
         of Performance Shares and/or Performance Units shall be evidenced by
         an Award Agreement that shall specify the initial value of such
         Performance Shares and/or Performance Units, the Performance Target
         which payment of such Performance Shares and/or Performance Units
         depends, the time period during which the Performance Target must be
         met (the "Performance Period"), the number of Performance Shares
         and/or Performance Units awarded and such other terms and conditions
         as the Committee may determine.

                           10.2. Value of Performance Units/Shares. Each
         Performance Unit shall have an initial value that is established by
         the Committee at the time of grant. Each Performance Share shall have
         an initial value equal to the Fair Market Value of a Share on the
         date of grant.

                           10.3. Earning of Performance Units/Shares. Subject
         to the terms of this Plan, after the applicable Performance Period
         has ended, the holder of Performance

                                      16
<PAGE>

         Units/Shares shall be entitled to receive payout on the number and
         value of Performance Units/Shares earned by the Participant over the
         Performance Period, to be determined, as a function of the extent to
         which the corresponding Performance Target has been achieved. As soon
         as practicable after the close of each Plan Year, the Committee shall
         determine with respect to each Participant whether and the extent to
         which any applicable Performance Targets were attained or exceeded.

                           10.4. Payment of Performance Shares/Units. As soon
         as practicable after the end of a Performance Period, if the
         applicable Performance Target for that Performance Period has been
         achieved, the Company shall deliver to a Participant payment for such
         Participant's Performance Shares and/or Performance Units in an
         amount determined, as specified in such Participant's Performance
         Share and/or Unit Award Agreement, on the last day of the Performance
         Period by reference to the achievement of the applicable Performance
         Target. The Committee may permit a Participant to elect payment of
         the aggregate value of such Participant's Performance Shares and/or
         Performance Units in cash or in Shares of equivalent value or in some
         combination thereof, subject to the availability of Shares to the
         Company. If, and to the extent that, dividends with respect to Shares
         are declared or paid during the Performance Period, the Committee may
         direct payment of dividend equivalents to a Participant in an amount
         equal to the dividends that such Participant would receive or have
         received if such Participant's Performance Shares were Shares;
         provided, however, that such dividend equivalents shall be subject to
         the same restrictions as apply to dividends payable with respect to
         Restricted Stock pursuant to Section 9.4.

                           10.5. Termination of Employment with the Company.
         Subject to the provisions of Section 13, each Participant's
         Performance Share and/or Unit Award Agreement shall set forth if, and
         the extent to which, the Participant shall have the right to receive
         payment of Performance Shares and/or Performance Units following
         termination of the Participant's employment with the Company or any
         Subsidiary. Such terms and conditions shall be determined in the sole
         discretion of the Committee, need not be uniform among all
         Performance Share and/or Performance Unit Awards and may reflect
         distinctions based on the reasons for termination of employment with
         the Company.

                           10.6. Nontransferability. Except as otherwise
         provided in a Participant's Award Agreement, Performance Units and/or
         Performance Shares may not be sold, transferred, pledged, assigned,
         or otherwise alienated or hypothecated, other than by will or by the
         laws of descent and distribution. Further, except as otherwise
         provided in a Participant's Award Agreement, a Participant's rights
         under the Plan shall be exercisable during the Participant's lifetime
         only by the Participant or, in the event of the Participant's legal
         incapacity, the Participant's legal representative.

                           Section 11.  Beneficiary Designation

                           11.1. The beneficiary or beneficiaries of the
         Participant to whom any benefit under the Plan is to be paid in case
         of his or her death before he or she receives any or all of such
         benefit shall be determined under the Company's Group Life Insurance

                                      17
<PAGE>

         Plan. A Participant under the Plan may, from time to time, name any
         beneficiary or beneficiaries to receive any benefit in case of his or
         her death before he or she receives any or all of such benefit. 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. In the absence of a valid designation under
         the Company's Group Life Insurance Plan or otherwise, if no validly
         designated beneficiary survives the Participant or if each surviving
         validly designated beneficiary is legally impaired or prohibited from
         taking, the Participant's beneficiary shall be the Participant's
         estate.

                           Section 12. Deferrals. The Committee may permit or
         require a Participant to defer such Participant's receipt of the
         payment of cash or the delivery of Shares that would otherwise be due
         to such Participant by virtue of the exercise of an Option or SAR,
         the lapse or waiver of restrictions with respect to Restricted Stock,
         or the satisfaction of any requirements or goals with respect to
         Performance Units and/or Performance Shares. If any such deferral
         election is required or permitted, the Committee shall, in its sole
         discretion, establish rules and procedures for such payment
         deferrals.

                           Section 13.  Effect of a Change of Control

                           13.1.  Treatment of Outstanding Awards.  Except as
         otherwise provided in an applicable Award Agreement, upon a Change of
         Control:

                                    (a) Any and all SARs and Options that are
                  granted hereunder to a Participant prior to such Change of
                  Control and that have not lapsed or been forfeited by the
                  effective date of the Change of Control shall become
                  immediately exercisable, and shall remain exercisable until
                  the earlier of the expiration of their initial term or the
                  second anniversary of the Participant's termination of
                  employment with the Company;

                                    (b) Any Period of Restriction and
                  restrictions imposed on Restricted Stock that is granted
                  hereunder to a Participant prior to such Change of Control
                  and that has not been forfeited by the effective date of the
                  Change of Control shall lapse;

                                    (c) The Performance Target with respect to
                  all outstanding Awards of Restricted Stock, Performance
                  Units and Performance Shares that are granted hereunder to a
                  Participant prior to such Change of Control and that have
                  not lapsed or been forfeited by the effective date of the
                  Change of Control shall be deemed to have been attained; and

                                    (d) The vesting of all Awards denominated
                  in Shares that are granted hereunder to a Participant prior
                  to such Change of Control and that have not lapsed or been
                  forfeited by the effective date of the Change of Control
                  shall be accelerated.

                                      18
<PAGE>

                           13.2. The Committee may, in its sole discretion,
         provide in any Award Agreement for the accelerated vesting of such
         Award, the accelerated exercisability of such Award and/or the deemed
         attainment of the Performance Target with respect to such Award upon
         specified events similar to a Change of Control.

                           13.3. Termination, Amendment, and Modifications of
         Change of Control Provisions. Notwithstanding any other provision of
         this Plan or any Award Agreement provision, the provisions of this
         Section 13 may not be terminated, amended, or modified upon or after
         a Change of Control to affect adversely any Award theretofore granted
         under the Plan without the prior written consent of the Participant
         with respect to said Participant's outstanding Awards. Subject to
         Section 14.3, the Board of Directors, upon recommendation of the
         Committee, may terminate, amend or modify this Section 13 at any time
         and from time to time prior to a Change of Control.

                           Section 14.  Amendment, Adjustment, and Termination.

                           14.1. Amendment and Termination. Subject to Section
         14.3, the Committee may at any time, and from time to time, in its
         sole discretion alter, amend, suspend or terminate the Plan in whole
         or in part for any reason or for no reason; provided, however, that
         no amendment or other action that requires stockholder approval in
         order for the Plan to continue to comply with applicable law shall be
         effective unless such amendment or other action shall be approved by
         the requisite vote of stockholders of the Company entitled to vote
         thereon.

                           14.2. Adjustment of Performance Targets and Awards.
         Subject to Sections 6.2 and 14.3, the Committee in its discretion may
         make adjustments to Performance Targets and Awards and to the terms
         and conditions of, and the criteria included in, Award Agreements in
         recognition of events that may materially affect the performance of
         the Company, including, but not limited to, (a) unusual or
         nonrecurring events or market conditions (including, without
         limitation, the events described in Section 4.3), (b) significant
         acquisitions or dispositions of assets or other property by the
         Company, (c) changes in accounting policies or practices and (d)
         changes in applicable laws or regulations, whenever and to whatever
         extent the Committee determines that such adjustments are
         appropriate.

                           14.3. Awards Previously Granted. No alteration,
         amendment, suspension or termination of the Plan shall adversely
         affect in any material way any Award previously made under the Plan
         without the written consent of the affected Participant; provided,
         however, that the Committee may modify, without a Participant's
         consent, any Award previously made to a Participant who is a foreign
         national or employed outside the United States to recognize
         differences in local law, tax policy or custom.

                           14.4. Compliance with Code Section 162(m). At all
         times when Code Section 162(m) is applicable, all Awards granted
         under this Plan shall comply with the requirements of Code Section
         162(m); provided, however, that in the event the Committee determines
         that such compliance is not desired with respect to any Award of
         Restricted Stock, compliance with Code Section 162(m) will not be
         required. In addition,

                                      19
<PAGE>

         in the event that changes are made to Code Section 162(m) to permit
         greater flexibility with respect to any Award or Awards available
         under the Plan, the Committee may, subject to this Section 14, make
         any adjustments it deems appropriate.

                           Section 15.  Withholding.

                           15.1. Tax Withholding. The Company shall have the
         power and the right to deduct or withhold, or require a Participant
         to remit to the Company, an amount sufficient to satisfy Federal,
         state, and local taxes, domestic or foreign, required by law or
         regulation to be withheld with respect to any taxable event arising
         as a result of this Plan.

                           15.2. Share Withholding. With respect to
         withholding required upon the exercise of Options or SARs, upon the
         lapse of restrictions on Restricted Stock, or upon any other taxable
         event arising as a result of Awards granted hereunder, Participants
         may elect to satisfy the withholding requirement, in whole or in
         part, by having the Company withhold Shares having a Fair Market
         Value on the date the tax is to be determined equal to the statutory
         minimum total tax (using the Federal Supplemental wage rate, and
         state or local equivalent as well as any FICA or Medicare taxes)
         which could be imposed on the transaction. All such elections shall
         be irrevocable, made in such form as the Committee shall designate,
         and shall be subject to any restrictions or limitations that the
         Committee, in its sole discretion, deems appropriate.

                           Section 16. Successors. All obligations of the
         Company under the Plan with respect to Awards granted hereunder shall
         be binding on any successor to the Company, whether the existence of
         such successor is the result of a direct or indirect purchase,
         merger, consolidation, or otherwise, of all or substantially all of
         the business and/or assets of the Company.

                           Section 17. 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
         in accordance with the procedures 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 the arbitration
         proceeding 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 18.  Legal Construction.

                                      20
<PAGE>

                           18.1.  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.

                           18.2.  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.

                           18.3.  Requirements of Law.  The granting of Awards
         and the issuance of Shares under the Plan shall be subject to all
         applicable laws, rules, and regulations, and to such approvals by any
         governmental agencies or national securities exchanges as may be
         required.

                           18.4. Securities Law Compliance. With respect to
         Insiders, transactions under this Plan are intended to comply with
         all applicable conditions of Rule 16b-3 or its successors under the
         1934 Act. To the extent any provision of the Plan or action by
         Committee fails to so comply, it shall be deemed null and void, to
         the extent permitted by law and deemed advisable by the Committee.

                           18.5.  Governing Law.  To the extent not preempted
         by Federal law, the Plan, and all agreements hereunder, shall be
         construed in accordance with and governed by the laws of the state of
         New Jersey.

                           18.6. Special Compensation. Except as otherwise
         required by law or as specifically provided in any plan or program
         maintained by the Company, no payment under the Plan shall be
         included or taken into account in determining any benefit under any
         pension, thrift, profit sharing, group insurance, or other benefit
         plan maintained by the Company.

                           18.7. Incompetent Payee. If the Committee shall
         find that any individual to whom any amount is payable under the Plan
         is found by a court of competent jurisdiction to be unable to care
         for his or her affairs because of illness or accident, or is a minor,
         or has died, then the payment due to him or her or to his or her
         estate (unless a prior claim thereof has been made by a duly
         appointed legal representative) may, if the Committee so elects, be
         paid to his or her spouse, a child, a relative, an institution
         maintaining or having custody of such individual, or any other
         individual deemed by the Committee to be a proper recipient on behalf
         of such individual otherwise entitled to payment. Any such payment
         shall constitute a complete discharge of all liability of the Plan
         thereof.

                           18.8. Plan Not an Employment Contract. This Plan is
         not 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.

                                      21

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