Document:

EXHIBIT 10.1 

EXECUTION COPY 

	
 

	

	
 

	
ADMINISTRATION AGREEMENT

	
among

	
 

	
CIT EQUIPMENT COLLATERAL 2006-VT2

	
as Issuer,

	
 

	
CIT FINANCIAL USA, INC.,

	
as Administrator,

	
 

	
CIT FUNDING COMPANY, LLC,

	
as Depositor,

	
 

	
and

	
 

	
DEUTSCHE BANK TRUST COMPANY AMERICAS

	
as Indenture Trustee

	
 

	
Dated as of October 1, 2006

	
 

	

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	

	
SECTION 1.

	
DUTIES OF THE ADMINISTRATOR

	
1

	
 

	
SECTION 2.

	
RECORDS

	
7

	
 

	
SECTION 3.

	
COMPENSATION

	
7

	
 

	
SECTION 4.

	
ADDITIONAL
  INFORMATION TO BE FURNISHED TO THE ISSUER

	
7

	
 

	
SECTION 5.

	
INDEPENDENCE
  OF THE ADMINISTRATOR

	
8

	
 

	
SECTION 6.

	
NO JOINT
  VENTURE

	
8

	
 

	
SECTION 7.

	
OTHER
  ACTIVITIES OF ADMINISTRATOR

	
8

	
 

	
SECTION 8.

	
TERM OF
  AGREEMENT; RESIGNATION AND REMOVAL OF ADMINISTRATOR

	
8

	
 

	
SECTION 9.

	
ACTION UPON
  TERMINATION, RESIGNATION OR REMOVAL

	
9

	
 

	
SECTION 10.

	
NOTICES

	
9

	
 

	
SECTION 11.

	
AMENDMENTS

	
10

	
 

	
SECTION 12.

	
SUCCESSORS
  AND ASSIGNS

	
10

	
 

	
SECTION 13.

	
GOVERNING
  LAW

	
11

	
 

	
SECTION 14.

	
HEADINGS

	
11

	
 

	
SECTION 15.

	
COUNTERPARTS

	
11

	
 

	
SECTION 16.

	
SEVERABILITY

	
11

	
 

	
SECTION 17.

	
NOT
  APPLICABLE TO CFUSA IN OTHER CAPACITIES

	
11

	
 

	
SECTION 18.

	
LIMITATION
  OF LIABILITY OF OWNER TRUSTEE AND INDENTURE TRUSTEE

	
11

	
 

	
SECTION 19.

	
THIRD-PARTY
  BENEFICIARY

	
12

	
 

	
SECTION 20.

	
BANKRUPTCY
  PETITION.

	
12

	
 

	
SECTION 21.

	
LIMITED
  RECOURSE

	
12

	
 

	
SECTION 22.

	
SURVIVABILITY

	
12

	
 

	
 

	
 

	
 

	
 

	
EXHIBIT A

	
FORM OF
  LIMITED POWER OF ATTORNEY

	
 

	
 

i

          This
Administration Agreement, dated as of October 1, 2006 (this “Agreement”), is
among CIT Equipment Collateral 2006-VT2 (the “Issuer”), CIT Financial USA, Inc.
(together with its successors and assigns, “CFUSA” and in its capacity as
administrator, the “Administrator”), CIT Funding Company, LLC (together with
its successors and assigns, the “Depositor”), and Deutsche Bank Trust Company
Americas, not in its individual capacity but solely as Indenture Trustee
(together with its successors and assigns, the “Indenture Trustee”).

WITNESSETH:

          WHEREAS,
the Issuer is issuing 5.34435% Class A-1 Receivable-Backed Notes, 5.19% Class
A-2 Receivable-Backed Notes, 5.07% Class A-3 Receivable-Backed Notes, 5.05%
Class A-4 Receivable-Backed Notes, 5.24% Class B Receivable-Backed Notes, 5.29%
Class C Receivable-Backed Notes, and 5.46% Class D Receivable-Backed Notes,
(collectively, the “Notes”) pursuant to the Indenture, dated as of the date
hereof (the “Indenture”), between the Issuer and the Indenture Trustee
(capitalized terms used herein that are not otherwise defined shall have the
meanings ascribed thereto in the Indenture or in the Pooling and Servicing
Agreement, as defined in the Indenture); 

          WHEREAS,
the Issuer has entered into certain agreements in connection with the issuance
of the Notes and of certain beneficial ownership interests of the Issuer,
including (i) the Pooling and Servicing Agreement, (ii) the Indenture and (iii)
the other Transaction Documents to which the Issuer is a party;

          WHEREAS,
pursuant to the Transaction Documents, the Issuer and the Owner Trustee are
required to perform certain duties in connection with (i) the Notes and the
Collateral therefor pledged pursuant to the Indenture and (ii) the beneficial
ownership interest in the Issuer evidenced by the Equity Certificate (the
registered holder of such interest being referred to herein as the “Owner”);

          WHEREAS,
the Issuer desires to have the Administrator perform certain of the duties of
the Issuer and the Owner Trustee referred to in the preceding clause and to
provide such additional services consistent with the terms of this Agreement
and the Transaction Documents as the Issuer and the Owner Trustee may from time
to time request; and

          WHEREAS,
the Administrator has the capacity to provide the services required hereby and
is willing to perform such services for the Issuer and the Owner Trustee on the
terms set forth herein.

          NOW,
THEREFORE, in consideration of the mutual covenants contained herein, and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

	
 

	
 

	
Section 1.

	
 

	
Duties of
  the Administrator.

               (a)
Duties with respect to the Transaction Documents.

                    (i)
The Administrator agrees to perform all its duties as Administrator and the
duties of the Issuer and the Owner Trustee under the Transaction 

Documents. In
addition, the Administrator shall consult with the Owner Trustee regarding the
duties of the Issuer or the Owner Trustee under the Transaction Documents. The
Administrator shall monitor the performance of the Issuer and shall advise the
Owner Trustee when action is necessary to comply with the respective duties of
the Issuer and the Owner Trustee under the Transaction Documents. The
Administrator shall prepare for execution by the Issuer or shall cause the
preparation by other appropriate persons of, all such documents, reports,
filings, instruments, certificates and opinions that it shall be the duty of
the Issuer or the Owner Trustee to prepare, file or deliver pursuant to the
Transaction Documents. In furtherance of the foregoing, the Administrator shall
take all appropriate action that the Issuer or the Owner Trustee is required to
take pursuant to the Indenture including, without limitation, such of the
foregoing as are required with respect to the following matters under the
Indenture (all section references in this Section 1(a)(i) are to sections of
the Indenture):

                         (A)
the preparation of Issuer Orders directing the authentication of Notes and the
preparation of or obtaining of any other documents and instruments required for
execution and authentication of the Notes and delivery of the same to the
Indenture Trustee (Section 2.02);

                         (B)
the duty to cause the Note Register to be kept and to give the Indenture
Trustee notice of any appointment of a new Note Registrar and the location, or
change in location, of the Note Register (Section 2.04);

                         (C)
the notification of Noteholders of the final principal payment on their Notes
(Section 2.07(b)) or indication on the Monthly Servicer’s Report that the
Principal Amount is 0;

                         (D)
the preparation, obtaining or filing of the instruments, opinions and
certificates and other documents required for the release of Collateral
(Section 2.12);

                         (E)
the maintenance of an office or agency in New York, New York, or the
appointment of the Indenture Trustee as its agent therefor, for registration of
transfer or exchange of Notes, and the delivery of notice to the Indenture
Trustee of the location, and of any change in the location, of any such office
or agency (Section 3.02);

                         (F)
the duty to cause newly appointed Paying Agents, if any, to deliver to the
Indenture Trustee the instrument specified in the Indenture regarding funds
held in trust (Section 3.03);

                         (G)
the direction to a Paying Agent to pay to the Indenture Trustee all sums held
by such Paying Agent (Section 3.03);

                         (H)
the preparation of and delivery to the Indenture Trustee of an Issuer Request
directing the Indenture Trustee to deposit in the Collection Account any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed after such
amount has become due and payable (Section 3.03);

2

                         (I)
the obtaining and preservation of the Issuer’s qualification to do business in
each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of the Indenture, the Notes, the
Collateral and each other instrument and agreement included in the Collateral
(Section 3.04);

                         (J)
the preparation of all supplements and amendments to the Indenture and all
financing statements, continuation statements, instruments of further assurance
and other instruments and the taking of such other action as is necessary or
advisable to protect the Collateral, other than as prepared by the Servicer
(Section 3.05);

                         (K)
the identification to the Indenture Trustee in an Officer’s Certificate of a
Person with whom the Issuer has contracted to perform its duties under the
Indenture (Section 3.06(b));

                         (L)
the notification of the Indenture Trustee and each Rating Agency of a Servicer
Default under the Pooling and Servicing Agreement (Sections 3.06(d) and 3.12);

                         (M)
the notification of the Indenture Trustee of any termination of the Servicer’s
rights and powers under the Pooling and Servicing Agreement (Section 3.06(d));

                         (N)
the notification of the Indenture Trustee and each Rating Agency of the
appointment of a Successor Servicer under the Pooling and Servicing Agreement
(to the extent such party has not already been notified pursuant to the Pooling
and Servicing Agreement) (Section 3.06(d));

                         (O)
the delivery of certain statements as to compliance with the Indenture
(Sections 3.08(a)(F) and 3.08(b)(F));

                         (P)
the preparation and obtaining of documents and instruments required for the
release of the Issuer from its obligations under the Indenture (Section
3.09(b));

                         (Q)
the notification of the Indenture Trustee and each Rating Agency of an Event of
Default under the Indenture (Section 3.12);

                         (R)
the monitoring of the Issuer’s obligations as to the satisfaction and discharge
of the Indenture and the preparation of an Officer’s Certificate and the
obtaining of the Opinion of Counsel and the Independent Certificate relating
thereto (Section 4.01);

                         (S)
the compliance with any written directive of the Indenture Trustee with respect
to the sale of the Collateral in a commercially reasonable manner if an Event
of Default shall have occurred and be continuing (Section 5.04);

3

                         (T)
the preparation and delivery to Noteholders and the Indenture Trustee of a
notice stating the record date, the payment date and the amount to be paid on
such record date (Section 5.06(b));

                         (U)
the preparation and delivery of notice to Noteholders and each Rating Agency of
the appointment of a successor Indenture Trustee (Section 6.08);

                         (V)
the preparation of any written instruments required to confirm more fully the
authority of any co-trustee or separate trustee and any written instruments
necessary in connection with the resignation or removal of the Indenture
Trustee or any co-trustee or separate trustee (Sections 6.08 and 6.10);

                         (W)
the notification of the Rating Agencies of any merger or consolidation
involving the Indenture Trustee (Section 6.09);

                         (X)
the furnishing of the Indenture Trustee with the names and addresses of
Noteholders during any period when the Indenture Trustee is not the Note
Registrar (Section 7.01);

                         (Y)
the filing of reports required by the Commission or under the TIA (Section
7.03);

                         (Z)
the opening of one or more accounts in the Indenture Trustee’s name, the
preparation and delivery of Issuer Orders, Officer’s Certificates and Opinions
of Counsel and all other actions necessary with respect to investment and
reinvestment of funds in the Trust Accounts (Sections 8.02 and 8.03);

                         (AA)
the preparation of an Issuer Request and Officer’s Certificate, if necessary,
for the release of the Collateral (Section 8.04(b));

                         (BB)
the preparation of Issuer Orders and the obtaining of Opinions of Counsel with
respect to the execution of supplemental indentures and the mailing to the
Noteholders of notices with respect to such supplemental indentures (Sections
9.01, 9.02 and 9.03);

                         (CC)
the preparation, execution and delivery of new Notes conforming to any
supplemental indenture (Section 9.06);

                         (DD)
the duty to notify Noteholders of redemption of the Notes or to cause the
Indenture Trustee to provide such notification (Section 10.02);

                         (EE)
the preparation and delivery of all Officer’s Certificates and Independent
Certificates with respect to any requests by the Issuer to the Indenture
Trustee to take any action under the Indenture (Section 11.01(a));

4

                         (FF)
the preparation and delivery to Noteholders and the Indenture Trustee of any
agreements with respect to alternate payment and notice provisions (Section
11.06); and

                         (GG)
the recording of the Indenture, if applicable (Section 11.14).

                    (ii)
The Administrator agrees to:

                         (A)
except as otherwise expressly provided in the Indenture or the Pooling and
Servicing Agreement, pay the Indenture Trustee’s fees and reimburse the
Indenture Trustee upon its request for all reasonable expenses, disbursements
and advances incurred or made by the Indenture Trustee in accordance with any
provision of the Transaction Documents (including the reasonable compensation,
expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence, bad faith, or
willful misconduct;

                         (B)
indemnify the Owner Trustee (including in its individual capacity) and its
officers, directors, employees or agents for, and hold them harmless against,
any loss, liability or expense incurred without negligence, bad faith, or
willful misconduct on their part, arising out of or in connection with the
acceptance or administration of the transactions contemplated by the Trust
Agreement and this Agreement, including the reasonable costs and expenses of
defending themselves against any claim or liability in connection with the
exercise or performance of any of their powers or duties under the Trust
Agreement (the indemnities provided by this section shall include, without
limitation, an indemnity as described above with respect to the Depositor’s
obligations in favor of the Owner Trustee under Section 8.02 of the Trust
Agreement to the extent any such obligations to the Owner Trustee remain
unpaid).

                         (C)
perform the duties of the Administrator specified in Section 9.01(e) of the
Trust Agreement required to be performed in connection with the winding up of
the Issuer.

               (b)
Additional Duties.

                    (i)
In addition to the duties set forth in Section 1(a)(i), the Administrator shall
perform such calculations and shall prepare or shall cause the preparation by
other appropriate persons of, and shall execute on behalf of the Issuer or the
Owner Trustee, all such documents, reports, filings, instruments, certificates
and opinions that the Issuer or the Owner Trustee are required to prepare, file
or deliver pursuant to the Transaction Documents and Sections 5.01, 6.01 and
6.02 of the Trust Agreement, and, at the request of the Owner Trustee, shall
take all appropriate actions that the Issuer or the Owner Trustee are required
to take pursuant to the Transaction Documents. In furtherance thereof, the
Owner Trustee shall, on behalf of itself and of the Issuer, execute and deliver
to the Administrator and to each successor Administrator appointed pursuant to
the terms hereof, one or more powers of attorney substantially in the form of Exhibit
A hereto, appointing the Administrator the attorney-in-fact of the Owner
Trustee and the Issuer for the purpose of executing on behalf of the Owner
Trustee 

5

and the Issuer
all such documents, reports, filings, instruments, certificates and opinions.
Subject to Section 5 hereof, and in accordance with the directions of the
Issuer, the Administrator shall administer, perform or supervise the
performance of such other activities in connection with the Collateral
(including the Transaction Documents) as are not covered by any of the
foregoing provisions and as are expressly requested by the Issuer and are
reasonably within the capability of the Administrator.

                    (ii)
Notwithstanding anything in this Agreement or the Transaction Documents to the
contrary, the Administrator shall be responsible for promptly notifying the
Owner Trustee in the event that any withholding tax is imposed on the Trust’s
payments (or allocations of income) to the Owner as contemplated in Section
5.02 of the Trust Agreement. Any such notice shall specify the amount of any
withholding tax required to be withheld by the Owner Trustee pursuant to such
provision.

                    (iii)
Notwithstanding anything in this Agreement or the Transaction Documents to the
contrary, the Administrator shall be responsible for performance of its duties
and the duties of the Trust set forth in Section 5.05 of the Trust Agreement
with respect to, among other things, accounting and reports to the Equity
Certificateholder; provided, however, that the Owner Trustee shall retain
responsibility for the distribution of information forms in its possession as
requested by the Equity Certificateholder or the Administrator and which are
necessary to enable the Trust to prepare its federal and state income tax
returns.

                    (iv)
The Administrator shall satisfy its obligations with respect to clauses (ii)
and (iii) above by retaining, at the expense of the Trust, a firm of independent
public accountants (the “Accountants”) acceptable to the Owner Trustee, which
shall perform the obligations of the Administrator thereunder.

                    (v)
The Administrator shall perform the duties of the Administrator specified in
Section 10.02 of the Trust Agreement required to be performed in connection
with the resignation or removal of the Owner Trustee and any other duties
expressly required to be performed by the Administrator under the Trust
Agreement.

                    (vi)
The Administrator shall not direct the Owner Trustee to take or to refrain from
taking any action if such action or inaction: (A) would be contrary to any
obligation of the Trust or the Owner Trustee under this Agreement or any of the
other Transaction Documents, (B) to the actual knowledge of a Responsible
Officer of the Owner Trustee, would result in the Trust’s becoming taxable as a
corporation for federal, state or local income tax purposes or (C) would be
contrary to the purpose of the Trust.

                    (vii)
Upon acceptance of appointment by a successor Owner Trustee pursuant to the
Trust Agreement, the Administrator shall mail notice thereof to the Equity
Certificateholder, the Indenture Trustee, the Noteholders and each Rating Agency.

                    (viii)
In carrying out the foregoing duties or any of its other obligations under this
Agreement, the Administrator may enter into transactions or otherwise deal with
any of its Affiliates; provided, however, that the terms of any such
transactions or dealings shall be in accordance with any directions received
from the Issuer and shall be, in the 

6

Administrator’s
opinion, no less favorable to the Issuer than would be available from
unaffiliated parties.

               (c)
Non-Ministerial Matters.

                    (i)
With respect to matters that in the reasonable judgment of the Administrator
are non-ministerial, the Administrator shall not take any action unless within
a reasonable time before the taking of such action, the Administrator shall
have notified the Owner Trustee of the proposed action and the Owner Trustee
shall not have withheld consent or provided an alternative direction. For the
purpose of the preceding sentence, “non-ministerial matters” shall include,
without limitation:

                         (A)
the amendment of or any supplement to the Indenture;

                         (B)
the initiation of any claim or lawsuit by the Issuer and the compromise of any
action, claim or lawsuit brought by or against the Issuer (other than in
connection with the collection of the Contracts);

                         (C)
the amendment, change or modification of any other Transaction Documents;

                         (D)
the appointment of successor Note Registrars, successor Paying Agents and
successor Indenture Trustees pursuant to the Indenture or the appointment of
successor Administrators or a successor Servicer, or the consent to the
assignment by the Note Registrar, Paying Agent or Indenture Trustee of its
obligations under the Indenture; and

                         (E)
the removal of the Indenture Trustee.

                    (ii)
Notwithstanding anything to the contrary in this Agreement, the Administrator
shall not be obligated to, and shall not, (A) make any payments to the
Noteholders under the Transaction Documents, (B) sell the Collateral pursuant
to Section 5.04(d) of the Indenture, (C) take any other action that the Issuer
directs the Administrator not to take on its behalf or (D) take any other
action which may be construed as having the effect of varying the terms of the
investment of the Noteholders or the Equity Certificateholder.

          Section
2. Records. The Administrator shall maintain appropriate books of
account and records relating to services performed hereunder, which books of
account and records shall be accessible for inspection by the Issuer and the
Owner Trustee at any reasonable time during normal business hours.

          Section
3. Compensation. As compensation for the performance of the
Administrator’s obligations under this Agreement and as reimbursement for its
expenses related thereto, the Administrator shall be entitled to a monthly fee
which shall be solely an obligation of the Servicer as contemplated in Section
5.19 of the Pooling and Servicing Agreement and which shall be in an amount as
shall be agreeable to the Depositor and the Administrator.

7

          Section
4. Additional Information to be Furnished to the Issuer. The Administrator
shall furnish to the Issuer from time to time such additional information
regarding the Collateral as the Issuer shall reasonably request.

          Section
5. Independence of the Administrator. For all purposes of this
Agreement, the Administrator shall be an independent contractor and shall not
be subject to the supervision of the Issuer or the Owner Trustee with respect
to the manner in which it accomplishes the performance of its obligations
hereunder. Unless expressly authorized by the Issuer, the Administrator shall
have no authority to act for or represent the Issuer or the Owner Trustee in
any way and shall not otherwise be deemed an agent of the Issuer or the Owner
Trustee.

          Section
6. No Joint Venture. Nothing contained in this Agreement (i) shall
constitute the Administrator and either of the Issuer or the Owner Trustee as
members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (ii) shall be construed to
impose any liability as such on any of them or (iii) shall be deemed to confer
on any of them any express, implied or apparent authority to incur any
obligation or liability on behalf of the others.

          Section
7. Other Activities of Administrator. Nothing herein shall prevent the
Administrator or its Affiliates from engaging in any other business or, in its
sole discretion, from acting in a similar capacity as an administrator for any
other Person or entity even though such person or entity may engage in business
activities similar to those of the Issuer, the Owner Trustee or the Indenture
Trustee.

          Section
8. Term of Agreement; Resignation and Removal of Administrator. This
Agreement shall continue in force until the termination of the Trust Agreement,
upon which event this Agreement shall automatically terminate.

               (a)
Subject to Section 8(d) and Section 8(e) hereof, the Administrator may resign
its duties hereunder by providing the Issuer with at least sixty (60) days’
prior written notice.

               (b)
Subject to Section 8(d) and Section 8(e) hereof, the Issuer may remove the
Administrator with or without cause by providing the Administrator with at
least sixty (60) days’ prior written notice.

               (c)
Subject to Section 8(d) and Section 8(e) hereof, at the sole option of the
Issuer, the Administrator may be removed immediately upon written notice of
termination from the Issuer to the Administrator if any of the following events
shall occur:

                    (i)
the Administrator shall default in the performance of any of its duties under
this Agreement and, after notice of such default, shall not cure such default
within ten (10) days (or, if such default cannot be cured in such time, shall
not give within ten (10) days such assurance of cure as shall be reasonably
satisfactory to the Issuer); or

                    (ii)
an Insolvency Event shall occur with respect to the Administrator.

8

          The
Administrator agrees that if any of the events specified in clause (ii) above
shall occur, it shall give written notice thereof to the Issuer and the
Indenture Trustee within seven (7) days after the occurrence of such event.

               (d)
No resignation or removal of the Administrator pursuant to this Section shall
be effective until (i) a successor Administrator shall have been appointed by
the Issuer and (ii) such successor Administrator shall have agreed in writing
to be bound by the terms of this Agreement in the same manner as the
Administrator is bound hereunder.

               (e)
The appointment of any successor Administrator shall be effective only after
the satisfaction of the Rating Agency Condition with respect to the proposed
appointment.

               (f)
Subject to Section 8(d) and 8(e) hereof, the Administrator acknowledges that
upon the appointment of a Successor Servicer pursuant to the Pooling and
Servicing Agreement, the Administrator shall immediately resign.

          Section
9. Action upon Termination, Resignation or Removal. Promptly upon the
effective date of termination of this Agreement pursuant to Section 8 or the
resignation or removal of the Administrator pursuant to Section 8(a), (b) or
(c) hereof respectively, the Administrator shall be entitled to be paid all
fees and reimbursable expenses accruing to it to the date of such termination,
resignation or removal. The Administrator shall forthwith upon such termination
pursuant to Section 8 hereof deliver to the Issuer all property and documents
of or relating to the Collateral then in the custody of the Administrator. In
the event of the resignation or removal of the Administrator pursuant to
Section 8(a), (b) or (c) hereof, respectively, the Administrator shall reasonably
cooperate with the Issuer and take all reasonable steps requested to assist the
Issuer in making an orderly transfer of the duties of the Administrator.

          Section
10. Notices. All notices, demands, certificates, requests and
communications hereunder (“notices”) shall be in writing and shall be effective
(a) upon receipt when sent through the U.S. mails, registered or certified
mail, return receipt requested, postage prepaid, with such receipt to be
effective the date of delivery indicated on the return receipt, or (b) one
Business Day after delivery to an overnight courier (specifying one (1)
Business Day’s delivery), or (c) on the date personally delivered to an
Authorized Officer of the party to which sent, or (d) on the date transmitted
by legible telecopier transmission with a confirmation of receipt, in all cases
addressed to the recipient as follows:

	
 

	
 

	
 

	
 

	
(i)

	
If to the
  Administrator:

	
 

	
 

	
 

	
 

	
 

	
CIT
  Financial USA, Inc.

	
 

	
 

	
l CIT Drive

	
 

	
 

	
Livingston,
  New Jersey 07039

	
 

	
 

	
Attn:
  Treasury – Securitization

	
 

	
 

	
 

	
 

	
 

	
Fax No.:
  (973) 535-5900

	
 

	
 

	
Telephone
  No.: (973) 740-5058

9

	
 

	
 

	
 

	
 

	
(ii)

	
If to the
  Depositor:

	
 

	
 

	
 

	
 

	
 

	
CIT Funding
  Company, LLC

	
 

	
 

	
1 CIT Drive

	
 

	
 

	
Livingston,
  New Jersey 07039

	
 

	
 

	
Attn:
  Treasury – Securitization

	
 

	
 

	
 

	
 

	
 

	
Fax No.:
  (973) 535-5900

	
 

	
 

	
Telephone
  No.: (973) 740-5058

	
 

	
 

	
 

	
 

	
(iii)

	
If to the
  Indenture Trustee:

	
 

	
 

	
 

	
 

	
 

	
Deutsche Bank
  Trust Company Americas

	
 

	
 

	
60 Wall
  Street, MS NYC 60-2606

	
 

	
 

	
Attn:
  Corporate Trust & Agency Services – Structured Finance Services

	
 

	
 

	
New York. NY
  10005 

	
 

	
 

	
 

	
 

	
 

	
Fax No.:
  (212) 553-2462

	
 

	
 

	
Telephone
  No.: (212) 250-2946

	
 

	
 

	
 

	
 

	
(iv)

	
If to the
  Issuer or the Owner Trustee:

	
 

	
 

	
 

	
 

	
 

	
The Bank of
  New York (Delaware) 

	
 

	
 

	
100 White
  Clay Center, Route 273 

	
 

	
 

	
P.O. Box
  6995

	
 

	
 

	
Newark, DE
  19711

	
 

	
 

	
 

	
 

	
 

	
Fax No.:
  (302) 453-4400

	
 

	
 

	
Telephone
  No.: (302) 283-8905

Each party
hereto may, by notice given in accordance herewith to each of the other parties
hereto, designate any further or different address to which subsequent notices
shall be sent.

          Section
11. Amendments. This Agreement may be amended from time to time by a
written amendment duly executed and delivered by the parties hereto, with the
written consent of the Owner Trustee but without the consent of the Noteholders
and the Equity Certificateholder; provided that such amendment will not
materially and adversely affect the interest of any Noteholder or the Equity
Certificateholder. Any modification to this Agreement that would materially and
adversely affect the interests of the Noteholders and the Equity
Certificateholder may not be effected without satisfying the Rating Agency
Condition. Promptly after the execution of any amendment to this Agreement, the
Administrator shall furnish written notification of the substance of such
amendment, together with a copy thereof, to each Rating Agency.

          Section
12. Successors and Assigns. This Agreement may not be assigned by the
Administrator unless such assignment is previously consented to in writing by
the Issuer, the 

10

Indenture
Trustee and the Owner Trustee and subject to the satisfaction of the Rating
Agency Condition in respect thereof. An assignment with such consent and
satisfaction, if accepted by the assignee, shall bind the assignee hereunder in
the same manner as the Administrator is bound hereunder. Notwithstanding the
foregoing, this Agreement may be assigned by the Administrator without the
consent of the Issuer or the Owner Trustee to a corporation or other organization
that is a successor (by merger, consolidation or purchase of all or
substantially all assets) to the Administrator; provided that such successor
organization executes and delivers to the Issuer, the Owner Trustee and the
Indenture Trustee an agreement, in form and substance reasonably satisfactory
to the Owner Trustee and the Indenture Trustee, in which such corporation or
other organization agrees to be bound hereunder by the terms of said assignment
in the same manner as the Administrator is bound hereunder. Subject to the
foregoing, this Agreement shall bind any successors or assigns of the parties
hereto.

          Section
13. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          Section
14. Headings. The section and subsection headings hereof have been
inserted for convenience of reference only and shall not be construed to affect
the meaning, construction or effect of this Agreement.

          Section
15. Counterparts. This Agreement may be executed in several counterparts
including by telefax transmission thereof (and by different parties on separate
counterparts), each of which shall be an original and all of which shall
constitute but one and the same agreement.

          Section
16. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

          Section
17. Not Applicable to CFUSA in Other Capacities. Nothing in this
Agreement shall affect any obligation CFUSA may have in any other capacity.

          Section
18. Limitation of Liability of Owner Trustee and Indenture Trustee.

               (a)
Notwithstanding anything contained herein to the contrary, this instrument has
been countersigned by The Bank of New York (Delaware), not in its individual
capacity but solely in its capacity as Owner Trustee of the Issuer and in no
event shall The Bank of New York (Delaware), in its individual capacity or any
beneficial owner of the Issuer have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder,
as to all of which recourse shall be had solely to the assets of the Issuer.
For all purposes of this Agreement, in the performance of any duties or
obligations of the Issuer 

11

hereunder, the
Owner Trustee shall be subject to, and entitled to the benefits of, the terms
and provisions of the Trust Agreement which apply to or extend to the benefit
of the Owner Trustee.

               (b)
Notwithstanding anything contained herein to the contrary, this Agreement has
been countersigned by Deutsche Bank Trust Company Americas not in its
individual capacity but solely as Indenture Trustee and in no event shall Deutsche
Bank Trust Company Americas have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder
or in any of the certificates, notices or agreements delivered pursuant hereto,
as to all of which recourse shall be had solely to the assets of the Issuer.
For all purposes of this Agreement, in the performance of any duties or
obligations of the Indenture Trustee hereunder, Deutsche Bank Trust Company
Americas shall be subject to, and entitled to the benefits of, any terms and
provisions of the Indenture which apply to or extend to the benefit of the
Indenture Trustee.

          Section
19. Third-party Beneficiary. The Owner Trustee is a third-party
beneficiary to this Agreement and is entitled to the rights and benefits
hereunder and may enforce the provisions hereof as if it were a party hereto.

          Section
20. Bankruptcy Petition. 

               (a)
The Indenture Trustee and the Administrator, by entering into this Agreement,
hereby covenant and agree that they will not at any time institute against the
Issuer or the Depositor or join in any institution against the Issuer or the
Depositor, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal
or state bankruptcy or similar law. 

               (b)
The Indenture Trustee and the Administrator further covenant and agree that the
obligations of this Section 20 shall survive termination of this Agreement.

          Section
21. Limited Recourse. 

               (a)
Each of the Indenture Trustee and the Administrator, by entering into this
Agreement, hereby covenants and agrees that it shall only have recourse against
the Issuer or the Depositor to the extent of the funds on hand and assets of
the Issuer or the Depositor, respectively and, with respect to the Issuer, any
such recourse shall extend only to amounts in excess of amounts necessary to
make payments on the Notes.

               (b)
Each of the Indenture Trustee and the Administrator agree that the obligations
of this Section 21 shall survive termination of this Agreement.

          Section
22. Survivability. The obligations of the Administrator described in
Section 1(a)(ii)(B) hereof shall survive termination of this Agreement.

[Signature Page Follows]

12

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

	
 

	
 

	
 

	
 

	
CIT
  EQUIPMENT COLLATERAL 2006-VT2

	
 

	
 

	
 

	
By:

	
THE BANK OF
  NEW YORK 

	
 

	
 

	
(DELAWARE),
  not in its individual 

	
 

	
 

	
capacity but
  solely as Owner Trustee

	
 

	
 

	
 

	
 

	
By:

	
 /s/ Kristine K. Gullo

	
 

	
 

	

	
 

	
 

	
Name: Kristine K. Gullo

	
 

	
 

	
Title: Vice President

	
 

	
 

	
 

	
 

	
CIT FUNDING
  COMPANY, LLC, as Depositor

	
 

	
 

	
 

	
 

	
By:

	
 /s/ Glenn A. Votek

	
 

	
 

	

	
 

	
 

	
Name: Glenn A. Votek

	
 

	
 

	
Title: Executive Vice President & Treasurer

	
 

	
 

	
 

	
 

	
DEUTSCHE
  BANK TRUST COMPANY 

  AMERICAS, not in its individual capacity but 

  solely as Indenture Trustee

	
 

	
 

	
 

	
By:

	
 /s/ Irene Siegel 

	
 

	
 

	

	
 

	
 

	
Name: Irene Siegel

	
 

	
 

	
Title: Vice President

	
 

	
 

	
 

	
 

	
By:

	
 /s/ Louis Bodi 

	
 

	
 

	

	
 

	
 

	
Name: Louis Bodi

	
 

	
 

	
Title: Vice President

	
 

	
 

	
 

	
 

	
CIT
  FINANCIAL USA, INC., as Administrator

	
 

	
 

	
 

	
By:

	
 /s/ Glenn A. Votek

	
 

	
 

	

	
 

	
 

	
Name: Glenn A. Votek

	
 

	
 

	
Title: Executive Vice President – Corporate Treasury & Treasurer

EXHIBIT A

LIMITED POWER OF ATTORNEY

State
of                        )

                                    )
ss.:

County
of                    )

          KNOW
ALL PERSONS BY THESE PRESENTS, that The Bank of New York (Delaware), not in its
individual capacity but solely as owner trustee (the “Owner Trustee”) of CIT
Equipment Collateral 2006-VT2, a Delaware statutory trust (the “Trust”), by and
through its duly elected and authorized officer named below, on behalf of the
Trust as Issuer under the Administration Agreement, dated as of October 1, 2006
(the “Administration Agreement”), among the Trust, CIT Funding Company, LLC,
Deutsche Bank Trust Company Americas, as Indenture Trustee, and CIT Financial
USA, Inc., as Administrator, does hereby nominate, constitute and appoint CIT
Financial USA, Inc., a Delaware corporation, each of its officers from time to
time and each of its employees authorized by it from time to time to act
hereunder, jointly and each of them severally, together or acting alone, its
true and lawful attorney-in-fact, for the Issuer in its name, place and stead,
in the sole discretion of such attorney-in-fact, to perform such calculations
and prepare or cause the preparation by other appropriate persons of, and to
execute on behalf of the Issuer, all such documents, reports, filings,
instruments, certificates and opinions that the Issuer or the Owner Trustee is
required to prepare, file or deliver pursuant to the Administration Agreement,
and to take any and all other action, as such attorney-in-fact may deem
necessary or desirable in accordance with the directions of the Owner Trustee
or the Issuer and in connection with its duties as Administrator or successor
Administrator under the Administration Agreement. Capitalized terms used herein
that are not otherwise defined shall have the meanings ascribed thereto in the
Administration Agreement.

          The
Issuer hereby ratifies and confirms the execution, delivery and performance
(whether before or after the date hereof) of the above-mentioned documents,
reports, filings, instruments, certificates and opinions, by the
attorney-in-fact and all that the attorney-in-fact shall lawfully do or cause
to be done by virtue hereof.

          The
Issuer hereby agrees that no person or other entity dealing with the
attorney-in-fact shall be bound to inquire into such attorney-in-fact’s power
and authority hereunder and any such person or entity shall be fully protected
in relying on such power and authority.

          This
Limited Power of Attorney may not be assigned without the prior written consent
of the Issuer. It is effective immediately and will continue until it is
revoked.

          This
Limited Power of Attorney shall be governed and construed in accordance with
the laws of the State of New York without reference to principles of conflicts
of law.

A-1

          Executed
as of this ____ day of October, 2006.

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CIT
  EQUIPMENT COLLATERAL 2006-VT2

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  THE BANK OF
  NEW YORK

  (DELAWARE), not in its individual
capacity but solely as Owner Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

A-2

CERTIFICATE OF ACKNOWLEDGMENT OF

NOTARY PUBLIC

State
of                        )

                                    )
ss.:

County
of                    )

	
   

  	
   

  	
   

  
	
   

  	
  On
  [    ], 2006 before me,

  
	
   

  	
   

  
	
  

  
	
   

  
	
   

  	
  [insert
  date]

  	
  [Here insert
  name and title of notary]

  
	
   

  	
   

  	
   

  
	
   

  	
  personally
  appeared

  	
   

  
	
   

  	
   

  	
   

  
	
  

  
	
   

  	
   

  	
   

  
	
   

  	
  personally
  known to me, or

  	
   

  

          proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are

subscribed to
the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ties), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of
which person(s) acted, executed the instrument.

          WITNESS
my hand and official seal.

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
     [SEAL]

  
	
   

  	
  

  	
   

  

A-3DYCOM INDUSTRIES, INC.

                          2003 LONG-TERM INCENTIVE PLAN
            (Amended and Restated Effective as of November 21, 2006)

1.   Purposes of the Plan

     The purposes of the Plan are to aid the Company in (a) attracting,
retaining and motivating highly qualified key employees and officers of the
Company and its Subsidiaries, (b) promoting the long-term success of the Company
and its Subsidiaries and (c) increasing stockholder value by providing eligible
key employees and officers with incentives to contribute to the long-term growth
and profitability of the Company.

2.   Definitions and Rules of Construction

     (a) Definitions. For purposes of the Plan, the following capitalized words
shall have the meanings set forth below:

          "Award" means an Option, Restricted Share Unit, Performance Share
     Unit, Stock Appreciation Right or Other Award granted by the Committee
     pursuant to the terms of the Plan.

          "Award Document" means an agreement, certificate or other type or form
     of document or documentation approved by the Committee which sets forth the
     terms and conditions of an Award. An Award Document may be in written,
     electronic or other media, may be limited to a notation on the books and
     records of the Company and, unless the Committee requires otherwise, need
     not be signed by a representative of the Company or a Participant.

          "Board" means the Board of Directors of the Company.

          "CEO" means the Chief Executive Officer of the Company.

          "Code" means the Internal Revenue Code of 1986, as amended.

          "Committee" means the Compensation Committee of the Board or such
     other committee appointed by the Board to administer the Plan.

          "Common Stock" means the common stock of the Company, par value $0.333
     per share, or such other class of share or other securities as may be
     applicable under Section 13(b) of the Plan.

          "Company" means Dycom Industries, Inc., a Florida corporation, or any
     successor to substantially all of its business.

          "Effective Date" means the date on which the Plan is approved by the
     stockholders of the Company.

          "Eligible Individual" means an individual described in Section 4(a) of
     the Plan.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
     and the rules and regulations thereunder.

          "Fair Market Value" means, with respect to a share of Common Stock,
     the fair market value thereof as of the relevant date of determination, as
     determined in accordance with a valuation methodology approved by the

                                       1
<PAGE>

     Committee. In the absence of any alternative valuation methodology approved
     by the Committee, the Fair Market Value of a share of Common Stock shall
     equal the average of the high and low prices of a share of Common Stock as
     reported on the composite tape for securities listed on the New York Stock
     Exchange, or such other national securities exchange as may be designated
     by the Committee, or, in the event that the Common Stock is not listed for
     trading on a national securities exchange but is quoted on an automated
     system, on such automated system, in any such case on the valuation date
     (or, if there were no sales on the valuation date, the average of the high
     and low prices as reported on said composite tape or automated system for
     the most recent day during which a sale occurred).

          "Incentive Stock Option" means an Option that is intended to comply
     with the requirements of Section 422 of the Code or any successor provision
     thereto.

          "Nonqualified Stock Option" means an Option that is not intended to
     comply with the requirements of Section 422 of the Code or any successor
     provision thereto.

          "Option" means an Incentive Stock Option, Nonqualified Stock Option or
     any other type of option granted pursuant to Section 7 of the Plan.

          "Other Award" means any form of Award other than an Option, Restricted
     Share Unit, Performance Share Unit or Stock Appreciation Right granted
     pursuant to Section 11 of the Plan.

          "Participant" means an Eligible Individual who has been granted an
     Award under the Plan.

          "Performance Period" means the period specified in the applicable
     Award Document over which Performance Targets are measured.

          "Performance Share Unit" means a right to receive a Target Number of
     shares of Common Stock (or cash, if applicable) payable at the end of a
     Performance Period, subject to the Participant's continued employment and
     the achievement of the applicable Performance Targets, granted pursuant to
     Section 9 of the Plan.

          "Performance Target" means the targets prescribed in the applicable
     Award Document.

          "Plan" means the Dycom Industries, Inc. 2003 Long-Term Incentive Plan
     as described herein.

          "Repricing" means (i) amending the terms of an Option or Stock
     Appreciation Right after its grant date to reduce its exercise price; (ii)
     canceling an Option or Stock Appreciation Right at a time when its exercise
     price is equal to or greater than the Fair Market Value of the underlying
     Common Stock in exchange for another Option or Stock Appreciation Right; or
     (iii) any action that is treated as a repricing of an Option or Stock
     Appreciation Right under generally accepted accounting principles or any
     applicable laws, rules or regulations.

          "Restricted Share Unit" means a right to receive a share of Common
     Stock (or cash, if applicable), subject to time vesting and the
     Participant's continued employment with the Company, granted pursuant to
     Section 8 of the Plan.

          "Stock Appreciation Right" means a right to receive all or some
     portion of the appreciation on shares of Common Stock granted pursuant to
     Section 10 of the Plan.

          "Subsidiary" means (i) a domestic or foreign corporation or other
     entity with respect to which the Company, directly or indirectly, has the
     power, whether through the ownership of voting securities, by contract or
     otherwise, to elect at least a majority of the members of such
     corporation's board of directors or analogous governing body, or (ii) any
     other domestic or foreign corporation or other entity in which the Company,
     directly or indirectly, has an equity or similar interest and which the
     Committee designates as a Subsidiary for purposes

                                       2
<PAGE>

     of the Plan. For purposes of determining eligibility for the grant of
     Incentive Stock Options under the Plan, the term "Subsidiary" shall be
     defined in the manner required by Section 424(f) of the Code.

          "Target Number" means the target number of shares of Common Stock
     specified in the applicable Award Document.

     (b) Rules of Construction. The masculine pronoun shall be deemed to include
the feminine pronoun and the singular form of a word shall be deemed to include
the plural form, unless the context requires otherwise. Unless the text
indicates otherwise, references to sections are to sections of the Plan.

3.   Administration

     (a) Committee. The Plan shall be administered by the Committee, no member
of which shall be eligible to participate in the Plan.

     (b) Powers and Responsibility. The Committee shall have full power and
authority, subject to the express provisions hereof, to:

          (i) select the Participants from the Eligible Individuals;

          (ii) grant Awards in accordance with the Plan;

          (iii) determine the number of shares of Common Stock subject to each
     Award or the cash amount payable in connection with an Award;

          (iv) determine the terms and conditions of each Award, including,
     without limitation, those related to vesting, forfeiture, payment,
     settlement and exercisability, and the effect, if any, of a Participant's
     termination of employment with the Company or any of its Subsidiaries or a
     change in control of the Company;

          (vi) delegate to the CEO the right to allocate Awards among Eligible
     Individuals who are not executive officers or directors of the Company
     within the meaning of the Exchange Act, such delegation to be subject to
     such terms and conditions as the Committee in its discretion shall
     determine;

          (vii) make factual determinations in connection with the
     administration or interpretation of the Plan;

          (viii) establish, amend and rescind administrative regulations, rules
     and procedures relating to the Plan;

          (ix) employ such legal counsel, independent auditors and consultants
     as it deems desirable for the administration of the Plan and to rely upon
     any opinion or computation received therefrom;

          (x) vary the terms of Awards to take account of tax, securities law
     and other regulatory requirements of foreign jurisdictions; and

          (xi) take any other action desirable or necessary to interpret,
     construe or implement properly the provisions of the Plan or any Award
     Document.

     (c) Plan Construction and Interpretation. The Committee shall have full
power and authority, subject to the express provisions hereof, to construe and
interpret the Plan.

                                       3
<PAGE>

     (d) Determinations of Committee Final and Binding. All determinations by
the Committee in carrying out and administering the Plan and in construing and
interpreting the Plan shall be final, binding and conclusive for all purposes
and upon all persons interested herein.

      (e) Delegation of Authority. The Committee may designate persons other
than its members to carry out its responsibilities under such conditions or
limitations as it may set, except that the Committee may not delegate (i) its
authority with regard to Awards (including decisions concerning the timing,
pricing and amount of Common Stock subject to an Award) granted to Eligible
Individuals who are officers or directors for purposes of Section 16(b) of the
Exchange Act and (ii) its authority pursuant to Section 20 to amend the Plan.

     (f) Liability of Committee. No member of the Board or Committee, the CEO,
or any officer or employee of the Company to whom any duties or responsibilities
are delegated hereunder shall be liable for any action or determination made in
connection with the operation, administration or interpretation of the Plan and
the Company shall indemnify, defend and hold harmless each such person from any
liability arising from or in connection with the Plan, except where such
liability results directly from such person's fraud, willful misconduct or
failure to act in good faith. In the performance of its responsibilities with
respect to the Plan, the Committee shall be entitled to rely upon information
and advice furnished by the Company's officers, the Company's accountants, the
Company's counsel and any other party the Committee deems necessary, and no
member of the Committee shall be liable for any action taken or not taken in
reliance upon any such advice.

     (g) Action by the Board. Anything in the Plan to the contrary
notwithstanding, any authority or responsibility that, under the terms of the
Plan, may be exercised by the Committee may alternatively be exercised by the
Board.

4.   Eligibility

     (a) Eligible Individuals. Only officers and key employees of the Company or
any of its Subsidiaries (or a division or operating unit thereof) or any
individual who has accepted an offer of employment with the Company or any of
its Subsidiaries (or a division or operating unit thereof) as an officer or key
employee shall be eligible to participate in the Plan and to receive Awards
under the Plan. Members of the Committee shall not be eligible to participate in
the Plan.

     (b) Grants to Participants. The Committee shall have no obligation to grant
any Eligible Individual an Award or to designate an Eligible Individual as a
Participant solely by reason of such Eligible Individual having received a prior
Award or having been previously designated as a Participant. The Committee may
grant more than one Award to a Participant and may designate an Eligible
Individual as a Participant for overlapping periods of time.

5.   Common Stock Subject to the Plan

     (a) Plan Limit. The maximum number of shares of Common Stock which may be
awarded for all purposes under the Plan shall be the aggregate of:

          (i) 4,000,000 shares;

          (ii) the number of shares previously authorized but not reserved for
     awards under the 1998 Dycom Industries, Inc. Incentive Stock Option Plan
     (the "Prior Plan") as of the date the Plan is approved; and

          (iii) any shares corresponding to awards under the Prior Plan that are
     forfeited after the date the Plan is approved (collectively, the "Plan
     Limit").

Such shares of Common Stock may be newly issued shares of Common Stock or
reacquired shares of Common Stock held in the treasury of the Company.

                                       4
<PAGE>

     (b) Rules Applicable to Determining Shares Available for Issuance. For
purposes of determining the number of shares of Common Stock that remain
available for issuance under the Plan, the number of shares of Common Stock
corresponding to Awards under the Plan that are forfeited, the number of shares
of Common Stock tendered or withheld to pay the exercise price of an Award and
the number of shares withheld from any Award to satisfy a Participant's tax
withholding obligations shall be added back to the Plan Limit and again be
available for the grant of Awards.

     (c) Special Limits. Anything to the contrary in Section 5(a) above
notwithstanding, but subject to Section 13(b), the following special limits
shall apply to shares of Common Stock available for Awards under the Plan:

          (i) The maximum number of shares of Common Stock that may be subject
     to Awards, including, without limitation, Incentive Stock Options, granted
     to any Eligible Individual in any calendar year shall equal 250,000 shares,
     plus any shares which were available under this Section 5(c)(i) for Awards
     to such Eligible Individual in any prior calendar year but which were not
     covered by such Awards.

          (ii) In no event will the number of shares of Common Stock issued in
     connection with the grant of Awards exceed the Plan Limit, as in effect on
     the Effective Date.

6.   Awards in General

     (a) Types of Awards. Awards under the Plan may consist of Options,
Restricted Share Units, Performance Share Units, Stock Appreciation Rights and
Other Awards. Any Award described in Sections 7 through 11 of the Plan may be
granted singly or in combination or tandem with any other Awards, as the
Committee may determine. Awards under the Plan may be made in combination with,
in replacement of, or as alternatives to awards or rights under any other
compensation or benefit plan of the Company, including the plan of any acquired
entity.

     (b) Terms Set Forth in Award Document. The terms and conditions of each
Award shall be set forth in an Award Document in a form approved by the
Committee for such Award, which shall contain terms and conditions not
inconsistent with the Plan. The terms of Awards may vary among Participants and
the Plan does not impose upon the Committee any requirement to make Awards
subject to uniform terms. Accordingly, the terms of individual Award Documents
may vary.

     (c) Termination of Employment and Change in Control. The Committee shall
specify at or after the time of grant of an Award the provisions governing the
disposition of an Award in the event of a Participant's termination of
employment with the Company or any of its Subsidiaries. In connection with a
Participant's termination of employment, the Committee may vary the vesting,
exercisability and settlement provisions of an Award relative to the
circumstances resulting in such termination of employment. The Committee shall
have the discretion to accelerate the vesting, exercisability or settlement of,
eliminate the restrictions and conditions applicable to, or extend the
post-termination exercise period of an outstanding Award. Similarly, the
Committee shall have full authority to determine the effect, if any, of a change
in control of the Company on the vesting, exercisability, settlement, payment or
lapse of restrictions applicable to an Award, which effect may be specified in
the applicable Award Document or determined at a subsequent time.

     (d) Award Exercisable Only by Participant. During the lifetime of a
Participant, an Award shall be exercisable only by the Participant. The grant of
an Award shall impose no obligation on a Participant to exercise or settle the
Award.

     (e) Rights of a Stockholder. A Participant shall have no rights as a
stockholder with respect to shares of Common Stock covered by an Award until the
date the Participant or his nominee becomes the holder of record of such shares.
No adjustment shall be made for dividends or other rights for which the record
date is prior to such date, except as provided in Section 13(b).

                                       5
<PAGE>

     (f) Limitation on Exercise and Settlement. An Award may not be exercised or
settled and no shares of Common Stock may be issued in connection with an Award
unless the issuance of such shares has been registered under the Securities Act
of 1933, as amended, and qualified under applicable state "blue sky" laws, or
the Company has determined that an exemption from registration and from
qualification under such state "blue sky" laws is available.

     (g) Performance-Based Awards. The Committee may determine whether any Award
under the Plan is intended to be "performance-based compensation" as that term
is used in Section 162(m) of the Code. Any such Awards designated to be
"performance-based compensation" shall be conditioned on the achievement of one
or more Performance Targets, to the extent required by Section 162(m) of the
Code. The Performance Targets that may be used by the Committee for such Awards
will be based on financial goals such as net income, net revenue, cash flow,
operating margin, operating revenue, pre-tax income, pre-tax operating income,
operating income growth, return on assets, total shareholder return, share
price, return on equity, diluted earnings per share or earnings per share
growth, or a combination thereof as selected by the Committee, and quantifiable
non-financial goals. Each Participant is assigned a Target Award payable if
Performance Targets are achieved. If a Participant's performance exceeds such
Participant's Performance Targets, Awards may be greater than the Target Number,
but may not exceed 200% of such Participant's Target Number. The Committee
retains the right to reduce any Award if it believes that individual performance
does not warrant the Award calculated by reference to the result. In the event
that all members of the Committee are not "outside directors" as that term is
defined in Section 162(m) of the Code, the grant and terms of Awards intended to
qualify as "performance-based compensation" will be made by a subcommittee of
the Committee consisting of two or more "outside directors."

7.   Terms and Conditions of Options

     (a) General. The Committee, in its discretion, may grant Options to
eligible Participants and shall determine whether such Options shall be
Incentive Stock Options, Nonqualified Stock Options or any other type of Option
which may exist from time to time. Each Option shall be evidenced by an Award
Document that shall expressly identify the Option as an Incentive Stock Option
or Nonqualified Stock Option (or other type of Option, as applicable), and be in
such form and contain such provisions as the Committee shall from time to time
deem appropriate. Without limiting the foregoing, the Committee may, at any
time, or from time to time, authorize the Company, with the consent of the
respective recipients, to issue new Options, including Options in exchange for
the surrender and cancellation of any or all outstanding Options or Stock
Appreciation Rights.

     (b) Exercise Price. The exercise price of an Option shall be fixed by the
Committee at the time of grant or shall be determined by a method specified by
the Committee at the time of grant; provided that the exercise price of an
Option may not be less than the Fair Market Value of a share of Common Stock on
the date of grant. Payment of the exercise price of an Option shall be made in
cash, or, to the extent provided by the Committee at or after the time of grant,
in shares of Common Stock already owned and held by the Participant or in any
combination of cash and shares of Common Stock held by the Participant. Except
in connection with a transaction or event described in Section 13(b), nothing in
the Plan shall be construed as permitting the Company to reduce the exercise
price of Options previously granted under the Plan or options previously granted
under any other plan of the Company without stockholder approval. In accordance
with the rules and procedures established by the Committee for this purpose, an
Option may also be exercised through a "cashless exercise" procedure, approved
by the Committee, involving a broker or dealer, that affords Participants the
opportunity to sell immediately some or all of the shares of Common Stock
underlying the exercised portion of the Option in order to generate sufficient
cash to pay the exercise price of the Option and to satisfy withholding tax
obligations related to the Option.

     (c) Term. An Option shall be effective for such term as shall be determined
by the Committee and as set forth in the Award Document relating to such Option,
and the Committee may extend the term of an Option after the time of grant;
provided, however, that the term of an Option may in no event extend beyond the
10th anniversary of the date of grant of such Option.

     (d) Incentive Stock Options. The exercise price per share of an Incentive
Stock Option may not be less than 100% of the Fair Market Value per share on the
date of grant (or if the exercise price is not fixed on the date of

                                       6
<PAGE>

grant, then on such date as the exercise price is fixed). No Incentive Stock
Option may be issued pursuant to the Plan to any individual who, at the time the
Incentive Stock Option is granted, owns stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company or any of its
Subsidiaries, unless (i) the exercise price determined as of the date of grant
is at least 110% of the Fair Market Value on the date of grant of the shares of
Common Stock subject to such Incentive Stock Option, and (ii) the Incentive
Stock Option is not exercisable more than five years from the date of grant
thereof. The terms of any Incentive Stock Option granted under the Plan shall
comply in all respects with the provisions of Section 422 of the Code, or any
successor provision thereto, and any regulations promulgated thereunder.

8.   Terms and Conditions of Restricted Share Units

     The Committee is authorized to grant Restricted Share Units to Eligible
Individuals. A Restricted Share Unit shall entitle a Participant to receive,
subject to the terms, conditions and restrictions set forth in the Plan and
applicable Award Document, one or more shares of Common Stock in consideration
of the Participant's employment with the Company or any of its Subsidiaries. If
and when the forfeiture provisions lapse, the Restricted Share Units shall
become shares of Common Stock owned by the corresponding Participant or, at the
sole discretion of the Committee, cash, or a combination of cash and shares of
Common Stock, with a value equal to the Fair Market Value of the shares at the
time of payment.

     At the time of grant of a Restricted Share Unit, the Committee shall, in
its sole discretion, establish a restriction period (the "Restriction Period")
during which the forfeiture provisions may lapse. The Restriction Period may
lapse over a period of time specified by the Committee in an Award Document;
provided, however, that, subject to Section 6(c) hereof, such Restriction Period
shall be not less than three years.

9.   Terms and Conditions of Performance Share Units

     The Committee is authorized to grant Performance Share Units to Eligible
Individuals. A Performance Share Unit shall entitle a Participant to receive,
subject to the terms, conditions and restrictions set forth in the Plan and
applicable Award Document, a Target Number of shares of Common Stock based upon
the achievement of Performance Targets over the applicable Performance Period.
At the sole discretion of the Committee, Performance Share Units shall be
settled through the delivery of shares of Common Stock or cash, or a combination
of cash and shares of Common Stock, with a value equal to the Fair Market Value
of the shares of Common Stock as of the last day of the applicable Performance
Period.

     At the time of grant of a Performance Share Unit, the Committee shall, in
its sole discretion, establish a Performance Period. The Performance Targets
applicable to each Performance Period shall be measured over a period of not
less than one year.

10.  Stock Appreciation Rights

     (a) General. The Committee is authorized to grant Stock Appreciation Rights
to Eligible Individuals. A Stock Appreciation Right shall entitle a Participant
to receive, upon satisfaction of the conditions to payment specified in the
applicable Award Document, an amount equal to the excess, if any, of the Fair
Market Value on the exercise date of the number of shares of Common Stock for
which the Stock Appreciation Right is exercised, over the exercise price for
such Stock Appreciation Right specified in the applicable Award Document. The
exercise price per share of Common Stock covered by a Stock Appreciation Right
shall be fixed by the Committee at the time of grant or, alternatively, shall be
determined by a method specified by the Committee at the time of grant;
provided, however, that, except as provided in Section 13(b) below, the exercise
price per share of Common Stock subject to a Stock Appreciation Right may not be
adjusted or amended, including by means of amendment, cancellation or the
replacement of such Stock Appreciation Right with a subsequently awarded Stock
Appreciation Right. At the sole discretion of the Committee, payments to a
Participant upon exercise of a Stock Appreciation Right may be made in cash or
shares of Common Stock, or in a combination of cash and shares of Common Stock,
having an aggregate Fair Market Value as of the date of exercise equal to such
cash amount.

                                       7
<PAGE>

     (b) Stock Appreciation Rights in Tandem with Options. A Stock Appreciation
Right granted in tandem with an Option may be granted either at the same time as
such Option or subsequent thereto. If granted in tandem with an Option, a Stock
Appreciation Right shall cover the same number of shares of Common Stock as
covered by the Option (or such lesser number of shares as the Committee may
determine) and shall be exercisable only at such time or times and to the extent
the related Option shall be exercisable, and shall have the same term and
exercise price as the related Option (which, in the case of a Stock Appreciation
Right granted after the grant of the related Option, may be less than the Fair
Market Value per share on the date of grant of the tandem Stock Appreciation
Right). Upon exercise of a Stock Appreciation Right granted in tandem with an
Option, the related Option shall be canceled automatically to the extent of the
number of shares covered by such exercise; conversely, if the related Option is
exercised as to some or all of the shares covered by the tandem grant, the
tandem Stock Appreciation Right shall be canceled automatically to the extent of
the number of shares covered by the Option exercise.

11.  Other Awards

     The Committee shall have the authority to specify the terms and provisions
of other forms of equity-based or equity-related Awards not described above that
the Committee determines to be consistent with the purpose of the Plan and the
interests of the Company, which Awards may provide for cash payments based in
whole or in part on the value or future value of shares of Common Stock, for the
acquisition or future acquisition of shares of Common Stock, or any combination
thereof. Notwithstanding the foregoing, subject to Section 6(c) hereof, any
applicable Restriction Period shall not be less than three years and any
applicable Performance Targets related to a Performance Period shall be measured
over a period of not less than one year.

12.  Tax Withholding

     The Company or a Subsidiary, as appropriate, may require any individual
entitled to receive a payment in respect of an Award to remit to the Company,
prior to such payment, an amount sufficient to satisfy any applicable tax
withholding requirements. In the case of an Award payable in shares of Common
Stock, the Company may permit such individual to satisfy, in whole or in part,
such obligation to remit taxes by directing the Company to withhold shares that
would otherwise be received by such individual or to repurchase shares of Common
Stock that were issued to such individual to satisfy the minimum statutory
withholding rates for any applicable tax withholding purposes, in accordance
with all applicable laws and pursuant to such rules as the Committee may
establish from time to time. The Company or a Subsidiary, as appropriate, shall
also have the right to deduct from all cash payments made to a Participant
(whether or not such payment is made in connection with an Award) any applicable
taxes required to be withheld with respect to such payments.

13.  No Restriction on Right of Company to Effect Corporate Changes

     (a) Authority of the Company and Stockholders. The existence of the Plan,
the Award Documents and the Awards granted hereunder shall not affect or
restrict in any way the right or power of the Company or the stockholders of the
Company to make or authorize any adjustment, recapitalization, reorganization or
other change in the Company's capital structure or business, any merger or
consolidation of the Company, any issue of stock or of options, warrants or
rights to purchase stock or of bonds, debentures, preferred or prior preference
stocks whose rights are superior to or affect the Common Stock or the rights
thereof or which are convertible into or exchangeable for Common Stock, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any
part of its assets or business, or any other corporate act or proceeding,
whether of a similar character or otherwise.

     (b) Change in Capitalization. Notwithstanding any provision of the Plan or
any Award Document, the number and kind of shares authorized for issuance under
Section 5, including the maximum number of shares available under the special
limits provided for in Section 5(c), may be equitably adjusted in the sole
discretion of the Committee in the event of a stock split, stock dividend,
recapitalization, reorganization, merger, consolidation, extraordinary dividend,
split-up, spin-off, combination, exchange of shares, warrants or rights offering
to purchase Common Stock at a price substantially below Fair Market Value or
other similar corporate event affecting the Common Stock in order to preserve,
but not increase, the benefits or potential benefits intended to be made
available

                                       8
<PAGE>

under the Plan. In addition, upon the occurrence of any of the foregoing events,
the number of outstanding Awards and the number and kind of shares subject to
any outstanding Award and the exercise price per share, if any, under any
outstanding Award may be equitably adjusted (including by payment of cash to a
Participant) in the sole discretion of the Committee in order to preserve the
benefits or potential benefits intended to be made available to Participants
granted Awards. Such adjustments shall be made by the Committee, in its sole
discretion, whose determination as to what adjustments shall be made, and the
extent thereof, shall be final. Unless otherwise determined by the Committee,
such adjusted Awards shall be subject to the same restrictions and vesting or
settlement schedule to which the underlying Award is subject.

     (c) Repricings. The Committee may not effect a Repricing of any Option or
Stock Appreciation Right granted under the Plan without the approval of the
Company's shareholders.

14.  Application of Funds

     The proceeds received by the Company from the sale of Common Stock pursuant
to Awards will be used for general corporate purposes.

15.  Exchange Act

     Notwithstanding anything contained in the Plan or any Award Document under
the Plan to the contrary, if the consummation of any transaction under the Plan,
or the taking of any action by the Committee in connection with a change in
control of the Company, would result in the possible imposition of liability on
a Participant pursuant to Section 16(b) of the Exchange Act, the Committee shall
have the right, in its sole discretion, but shall not be obligated, to defer
such transaction or the effectiveness of such action to the extent necessary to
avoid such liability, but in no event for a period longer than 180 days.

16.  No Right to Employment

     No person shall have any claim or right to receive Awards under the Plan.
Neither the Plan, the grant of Awards under the Plan, nor any action taken or
omitted to be taken under the Plan shall be deemed to create or confer on any
Eligible Individual any right to be retained in the employ of the Company or any
Subsidiary or other affiliate thereof, or to interfere with or to limit in any
way the right of the Company or any Subsidiary or other affiliate thereof to
terminate the employment of such Eligible Individual at any time.

17.  Awards to Individuals Subject to Non-U.S. Jurisdictions

     To the extent that Awards under the Plan are awarded to individuals who are
domiciled or resident outside of the United States or to persons who are
domiciled or resident in the United States but who are subject to the tax laws
of a jurisdiction outside of the United States, the Committee may adjust the
terms of the Awards granted hereunder to such person (i) to comply with the laws
of such jurisdiction and (ii) to permit the grant of the Award not to be a
taxable event to the Participant. The authority granted under the previous
sentence shall include the discretion for the Committee to adopt, on behalf of
the Company, one or more sub-plans applicable to separate classes of Eligible
Individuals who are subject to the laws of jurisdictions outside of the United
States.

18.  Term of the Plan

     Unless earlier terminated pursuant to Section 20, the Plan shall terminate
on the 10th anniversary of the Effective Date, except with respect to Awards
then outstanding. No Awards may be granted under the Plan after the 10th
anniversary of the Effective Date.

                                       9
<PAGE>

19.  Effective Date

     The Plan shall become effective on the Effective Date. If the Plan is not
approved by the stockholders upon submission to them for approval, the Plan
shall be void ab initio and of no further force and effect.

20.  Amendment and Termination

     Notwithstanding anything herein to the contrary, the Board or the Committee
may, at any time, terminate or, from time to time, amend, modify or suspend the
Plan; provided, however, that no termination, amendment, modification or
suspension of the Plan shall materially and adversely alter or impair the rights
of a Participant in any Award previously made under the Plan without the consent
of the holder thereof and no amendment which (a) increases the limits set forth
in Section 5(c)(ii), (b) permits a reduction in the exercise price of Options or
Stock Appreciation Rights (or options or stock appreciation rights granted under
another plan of the Company), under circumstances other than in connection with
a transaction or event described in Section 13(b), or (c) materially amends or
modifies any material term of the Plan shall be effective without approval of
the Company's shareholders.

21.  Award Document

     In the event of any conflict or inconsistency between the Plan and any
Award Document, the Plan shall govern and the Award Document shall be
interpreted to minimize or eliminate any such conflict or inconsistency.

22.  Governing Law

     The Plan and all agreements entered into under the Plan shall be construed
in accordance with and governed by the laws of the State of Florida and without
giving effect to principles of conflicts of laws.

                                       10

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