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                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT, effective as of _______________, 1999 (the
"Agreement") between ASSOCIATES CORPORATION OF NORTH AMERICA (A Texas
Corporation), a corporation existing under the laws of the State of Texas (the
"Company"), and Executive (the "Executive"),

                                   WITNESSETH:

         WHEREAS, the Company and the Executive desire to enter into an
agreement relating to the employment of the Executive;

         NOW, THEREFORE, in consideration of the covenants and agreements
hereinafter set forth, the parties hereto agree as follows:

1.       EMPLOYMENT

         1.1. Effective as of _________________, 1999 (the "Effective Date"),
the Executive hereby agrees to serve, upon the terms and conditions herein
contained, as an executive of the Company, which is the management company for
Associates First Capital Corporation ("AFCC") and its controlled group of
corporations. The Executive shall have such duties as the Board of Directors of
AFCC, or its delegee, may determine.

         1.2. Unless automatically renewed, the Agreement and the term of
employment hereunder shall commence on the Effective Date and, subject to the
terms hereof, shall terminate on the day immediately prior to the third
anniversary of such date. This Agreement and the three-year term of employment
shall automatically renew on the first day of each calendar month following the
Effective Date, unless either party provides written notice of non-renewal prior
to the first day of each such month. The original three-year term and any
renewals thereof are referred to as the "Employment Term."

         1.3. During the Executive's employment hereunder, the Executive shall
devote the Executive's best efforts and substantially all of the Executive's
time and services during normal business hours (subject to vacations, sick leave
and other absences in accordance with the policies of the Company as in effect
from time to time for other

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senior executives of the Company who are of a comparable status to the
Executive) to the business and affairs of the Company.

2.       SALARY

         2.1. During the Executive's employment hereunder, the Executive shall
be entitled to receive an annual base salary of at least $Salary, payable in
accordance with the Company's payroll policy as in effect from time to time.
Such base salary shall include any salary reduction contributions on behalf of
the Executive to (a) any plan sponsored by the Company or any of its affiliates
that includes a cash-or- deferred arrangement under Section 401(k) of the
Internal Revenue Code of 1986, as amended (the "Code"), (b) any other plan of
deferred compensation sponsored by the Company or any of its affiliates, (c) any
"cafeteria plan" under Code Section 125 that is sponsored by the Company or any
of its affiliates, or (d) any other policy, plan, program or arrangement of the
Company or any of its affiliates pursuant to which the Executive has agreed to a
salary reduction contribution.

         2.2. The Company may, in its sole discretion, increase the Executive's
annual base salary.

3.       INCENTIVE COMPENSATION

         During the Executive's employment hereunder, the Executive shall be
entitled to participate in any incentive, profit-sharing, bonus, stock option or
similar or comparable policy, plan, program or arrangement applicable generally
to other senior executives of the Company who are of a comparable status to the
Executive, subject to the terms and conditions of any such policy, plan, program
or arrangement, as such policy, plan, program or arrangement may now exist or
may be adopted or amended hereafter by the Company or any of its affiliates, as
applicable. In the event that a Change in Control occurs during the Employment
Term, then for the calendar year in which the Change in Control occurs and for
each subsequent full calendar year that remains in the Employment Term and
throughout which the Executive remains employed by the Company, the Executive
shall receive (a) an award of corporate annual performance pay ("CAPP") under
the Associates First Capital Corporation Incentive Compensation Plan (or any
predecessor or successor plan) (the "ICP") in an amount at least equal to 80% of
the norm award calculated for the Executive for the year, and (b) an award of

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long-term performance pay ("LTPP") under the Associates First Capital
Corporation Long-Term Performance Plan (or any successor plan) in an amount at
least equal to 80% of the norm award calculated for the Executive for the year.
For purposes of the immediately preceding sentence, the Executive's "norm award"
for any year shall be calculated in accordance with the Company's normal
administrative procedures, as in effect immediately prior to the Change in
Control, for determining CAPP and LTPP norm awards. Any bonuses, including CAPP
and LTPP awards, payable pursuant to this Section 3 shall be payable to the
Executive at the same time and in the same manner as such bonuses are generally
payable to other executives of the Company and subject to the terms and
conditions of the applicable policy, plan, program or arrangement.

4.       EXECUTIVE BENEFITS

         During the Executive's employment hereunder, the Executive shall be
entitled to participate in and receive benefits under any and all employee
retirement income, welfare benefit and fringe benefit policies, plans, programs
or arrangements applicable generally to the Company's employees or generally to
other senior executives of the Company who are of a comparable status to the
Executive, subject to the terms and conditions of any such policies, plans,
programs or arrangements, as such policies, plans, programs or arrangements may
now exist or may be adopted or amended hereafter by the Company or AFCC, as
applicable.

5.       EXPENSES

         During the Executive's employment hereunder, the Executive is
authorized to incur, and shall be reimbursed for all, reasonable expenses for
promoting the business of the Company and its affiliates, including expenses for
travel and similar items, in accordance with the policies of the Company as in
effect from time to time for other senior executives of the Company who are of a
comparable status to the Executive.

6.       TERMINATION

         6.1. The Company may terminate the Executive's employment hereunder at
any time, with or without Cause. As used herein, the term "Cause" shall be
limited to (a) action by the Executive involving willful malfeasance, (b) the
Executive's

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unreasonable neglect or refusal to perform the executive duties assigned to the
Executive pursuant to this Agreement, (c) the Executive's being convicted of a
felony, (d) the Executive's engaging in any activity that is directly or
indirectly in competition with the Company or any affiliate or in any activity
that is inimical to the best interests of the Company or any affiliate, or (e)
the Executive's violation of Company policy covering standards of corporate
conduct. Notwithstanding anything to the contrary in this Agreement, if the
Company terminates the Executive's employment with Cause, all of the Company's
obligations under this Agreement shall cease, and this Agreement shall
terminate, on the effective date of the Executive's termination of employment.

         6.2. The Executive may terminate employment hereunder at any time by
written notice to the Company. If the Executive terminates employment hereunder
for any reason whatsoever, including without limitation by retirement, all of
the Company's obligations under the Agreement shall cease, to the extent
permitted by applicable law and other than pursuant to a policy, plan, program
or arrangement provided to the Executive in accordance with Section 4 hereof, as
of the effective date of the termination of the Executive's employment;
provided, however, that the Executive's termination of employment with the
Company as a result of an event constituting Constructive Termination shall not
be considered a termination by the Executive under this Section 6.2. In the
event that the Executive's employment hereunder terminates due to the
Executive's becoming Totally Disabled or due to the Executive's death, the
Company's obligation under this Agreement shall be determined in accordance with
Section 7 hereof.

         6.3. In the event that either the Company terminates the Executive's
employment hereunder without Cause or, within the period beginning six months
prior to and ending 15 months after a Change in Control (the "Window Period"),
the Executive terminates employment as a result of an event constituting
Constructive Termination, the Executive shall be entitled, in lieu of any other
compensation or benefits provided for under this Agreement (to the extent
permitted by applicable law and other than pursuant to a policy, plan, program
or arrangement provided to the Executive in accordance with Section 4 hereof):

                  (a)      to receive a lump-sum cash payment in an amount equal
                           to (i) two times the sum of the Executive's
                           then-current annual base salary and an amount equal
                           to the average of the CAPP (or, if applicable,

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                           other annual bonus) awards paid to the Executive by
                           the Company for each of the three calendar years
                           immediately preceding the year of termination of the
                           Executive's employment (or, if the Executive has not
                           been employed by the Company or one of its affiliates
                           for at least three calendar years immediately
                           preceding the year of termination, for such years as
                           the Executive has been employed by the Company or one
                           of its affiliates immediately preceding the year of
                           termination; provided, however, that if the Executive
                           is terminated prior to receiving any CAPP or other
                           annual bonus award from the Company, any CAPP or
                           other annual bonus award guaranteed to such Executive
                           pursuant to the Executive's engagement letter with
                           the Company shall be taken into account for purposes
                           of this Section 6.3), plus (ii) a pro rata amount,
                           based on the portion of the current performance year
                           preceding termination, equal to the average of the
                           CAPP (or, if applicable, other annual bonus) and LTPP
                           awards paid to the Executive by the Company for each
                           of the three calendar years immediately preceding the
                           year of termination of the Executive's employment
                           (or, if the Executive has not been employed by the
                           Company or one of its affiliates for at least three
                           calendar years immediately preceding the year of
                           termination, for such years as the Executive has been
                           employed by the Company or one of its affiliates
                           immediately preceding the year of termination;
                           provided, however, that if the Executive is
                           terminated prior to receiving any CAPP (or other
                           annual bonus) or LTPP awards from the Company, any
                           CAPP (or other annual bonus) and LTPP awards
                           guaranteed to such Executive pursuant to his
                           engagement letter with the Company shall be taken
                           into account for purposes of this Section 6.3);

                  (b)      to be vested in full as of the termination date in
                           any outstanding stock options granted under the ICP
                           and to have all restrictions lapse as of the
                           termination date on any restricted stock awarded to
                           the Executive under the ICP; and

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                  (c)      to continue to receive, for two years from the date
                           of termination of the Executive's employment
                           hereunder, at the Company's expense, life insurance
                           and medical, dental, disability and other welfare
                           benefits at least comparable to those provided by the
                           Company to the Executive, and in which the Executive
                           is enrolled, on the date of termination of the
                           Executive's employment hereunder (the "Company
                           Welfare Benefits"), provided that such Company
                           Welfare Benefits shall cease if the Executive obtains
                           other employment with benefits that are similar in
                           the aggregate to the Company Welfare Benefits.

         To the extent permitted by applicable provisions of the Code as then in
effect, the Company shall treat the value of premiums for the Company Welfare
Benefits as taxable income to the Executive for each year during which the
Company provides such Company Welfare Benefits to the Executive pursuant to
Section 6.3(c). Notwithstanding the foregoing, with respect to the Executive's
continued coverage under any plans subject to the continued coverage
requirements of the Consolidated Omnibus Budget Reconciliation Act of 1985
("COBRA"), the Executive's "qualifying event" for purposes of COBRA shall be the
date of termination of the Executive's employment with the Company. Any
termination payments hereunder shall not be taken into account for purposes of
any retirement plan or other benefit plan sponsored by the Company or any of its
affiliates, except as otherwise expressly required by any such plan or
applicable law. The Company may withhold from any amounts payable under this
Agreement all federal, state, city or other taxes as the Company is required to
withhold pursuant to any law or government regulation or ruling.

         6.4. Notwithstanding any other provision, the right of the Executive to
any compensation or benefits provided for under this Agreement shall cease (to
the extent permitted by applicable law) if the Board of Directors of the Company
(or, in the event that the Executive is a member of the Board of Directors of
the Company, the Board of Directors of AFCC) determines that the Executive has
violated Sections 8.2 or 8.3 hereof, or has engaged in any activity that is
inimical to the best interests of the Company or any of its affiliates.

         6.5. For purposes of this Agreement, a "Change in Control" shall have
occurred if at any time during the Employment Term any of the following events
shall occur:

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                  (a)      AFCC is merged, consolidated or reorganized into or
                           with another corporation or other legal person, and
                           as a result of such merger, consolidation or
                           reorganization into or with another corporation or
                           another legal person, less than a majority of the
                           combined voting power of the then-outstanding
                           securities of such corporation or person immediately
                           after such transaction are held in the aggregate by
                           the holders of Voting Stock (as that term is
                           hereafter defined) of AFCC immediately prior to such
                           transaction;

                  (b)      AFCC sells or otherwise transfers all or
                           substantially all of its assets to any other
                           corporation or other legal person, and as a result of
                           such sale or transfer, less than a majority of the
                           combined voting power of the then-outstanding voting
                           securities of such corporation or person are held in
                           the aggregate by the holders of Voting Stock of AFCC
                           immediately prior to such sale or transfer;

                  (c)      There is a report filed on Schedule 13D or Schedule
                           14D-1 (or any successor schedule, form or report),
                           each as promulgated pursuant to the Securities
                           Exchange Act of 1934 (the "Exchange Act"), disclosing
                           that any person (as the term "person" is used in
                           Section 13(d)(3) or Section 14(d)(2) or the Exchange
                           Act) has become the beneficial owner (as the term
                           "beneficial owner" is defined under Rule 13d-3 or any
                           successor rule or regulation promulgated under the
                           Exchange Act) of securities representing 20% or more
                           of the combined voting power of the then-outstanding
                           securities of AFCC entitled to vote generally in the
                           election of Directors of AFCC ("Voting Stock");

                  (d)      AFCC files a report or proxy statement with the
                           Securities and Exchange Commission pursuant to the
                           Exchange Act disclosing in response to Form 8-K or
                           Schedule 14A (or any successor schedule, form or
                           report or item therein) that a change in control of
                           AFCC has or may have occurred or will or may occur in
                           the future pursuant to any then-existing contract or
                           transaction; or

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                  (e)      If during any period of two consecutive years
                           individuals who at the beginning of any such period
                           constituted the Directors of AFCC cease for any
                           reason to constitute at least a majority thereof
                           unless the election, or the nomination for election
                           by AFCC's stockholders, of each Director of AFCC
                           first elected during such period was approved by a
                           vote of at least two-thirds of the Directors of AFCC
                           (or, in the case of a nomination for election, by a
                           vote of at least two-thirds of the members of the
                           Nominating Committee of the Board of Directors of
                           AFCC) then still in office who were Directors of AFCC
                           at the beginning of any such period.

         Notwithstanding the foregoing provisions of Section 6.5(c) or (d)
hereof, unless otherwise determined in a specific case by a majority vote of the
Board of Directors of AFCC, a "Change in Control" shall not be deemed to have
occurred for purposes of this Agreement solely because AFCC, an entity in which
AFCC directly or indirectly beneficially owns 50% or more of the voting
securities of such entity, any employee stock ownership plan or any other
employee benefit plan of AFCC or any of its affiliates either files or becomes
obligated to file a report or a proxy statement under or in response to Schedule
13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor schedule, form
or report or item therein) under the Exchange Act, disclosing beneficial
ownership by it of shares of voting securities of AFCC, whether in excess of 20%
or otherwise, or because AFCC reports that a change in control of AFCC has or
may have occurred or will or may occur in the future by reason of such
beneficial ownership.

         6.6. If a Change in Control occurs during the Employment Term, then as
of the date of such Change in Control, (a) the Executive shall be vested in full
in any outstanding stock options granted under the ICP, (b) all restrictions
shall lapse on any restricted stock awarded to the Executive under the ICP, (c)
the Executive's rights and interests shall be vested in full and nonforfeitable
in any accounts or benefits payable under any of the Company's nonqualified
plans in which the Executive participates or has participated prior to the
Change in Control, and (d) the Company shall fund a trust, subject to the claims
of creditors of the Company and its affiliates, with sufficient funds to
guarantee payment of all benefits payable to the Executive under any of the

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Company's nonqualified plans in which the Executive participates or has
participated prior to the Change in Control.

         6.7. For purposes of this Agreement, the occurrence of any of the
following events shall be considered to constitute "Constructive Termination,"
unless such event is expressly consented to in advance in writing by the
Executive:

                  (a)      The assignment to the Executive of any duties
                           inconsistent in any respect with the Executive's
                           position (including status, offices, titles and
                           reporting requirement), authority, duties or
                           responsibilities, or any other action that results in
                           a substantial diminution in such position, authority,
                           duties or responsibilities, excluding for this
                           purpose an isolated, insubstantial and inadvertent
                           action not taken in bad faith and which is remedied
                           by the Company promptly after receipt of notice
                           thereof given by the Executive;

                  (b)      Any failure to (i) continue to provide the Executive
                           with the opportunity to participate, on terms
                           substantially comparable in the aggregate to those in
                           effect immediately prior to the Window Period, in
                           substantially the same incentive compensation,
                           employee retirement income, welfare benefit and
                           fringe benefit policies, plans, programs and
                           arrangements in which the Executive was participating
                           (or entitled to participate pursuant to Sections 3
                           and 4 hereof) immediately prior to the Window Period,
                           or their equivalent, except to the extent any such
                           failure to continue to provide any of the above is
                           applicable generally to all of the Company's
                           employees, or (ii) provide the Executive with the
                           incentive compensation, employee retirement income,
                           welfare benefit and fringe benefit policies, plans,
                           programs and arrangements (or their equivalent) as in
                           effect from time to time for other senior executives
                           of the Company who are of a comparable status to the
                           Executive;

                  (c)      A substantial reduction, without good business
                           reasons, of the facilities and perquisites available
                           to the Executive immediately prior to such reduction;
                           or

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                  (d)      A relocation of the Executive's principal location of
                           work to any location that is more than 50 miles from
                           the location of such principal location of work
                           immediately prior to such relocation.

         6.8. In the event that it shall be determined (as hereinafter provided)
that any payment or distribution by the Company pursuant to this Agreement to or
for the benefit of the Executive (determined without regard to any additional
payments required under this Section 6.8) (a "Payment") would be subject to the
excise tax imposed by Code Section 4999 (or any successor provision thereto) or
to any similar tax imposed by state or local law, or to any interest or
penalties with respect to such excise tax (such tax or taxes, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Company shall pay to the Executive an additional amount
(a "Gross-Up Payment") such that, after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including any Excise Tax, imposed upon the Gross-Up Payment, the Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Payment.

         6.9. Subject to the provisions of Section 6.10, all determinations
required to be made under Section 6.8, including whether an Excise Tax is
payable by the Executive and the amount of such Excise Tax and whether and when
a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be
made by a nationally recognized firm of certified public accountants (the
"Accounting Firm") selected by the Company in its sole discretion. The Company
and the Executive shall each provide the Accounting Firm access to and copies of
any books, records and documents in the possession of the Company or the
Executive, as the case may be, reasonably requested by the Accounting Firm and
otherwise cooperate with the Accounting Firm in connection with the preparation
and issuance of the determination contemplated by Section 6.8 and this Section
6.9. The Accounting Firm shall submit its determination and detailed supporting
calculations both to the Company and to the Executive within 15 business days
after the effective date of termination of the Executive's employment hereunder,
if applicable, or at such earlier time as may be requested by the Company. All
fees and expenses of the Accounting Firm shall be borne solely by the Company.
If the Accounting Firm determines that any Excise Tax is payable by the
Executive, the Company shall pay the required Gross-Up Payment to the Executive
within five

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business days after receipt of such determination and calculations. If the
Accounting Firm determines that no Excise Tax is payable by the Executive, it
shall, at the same time as it makes such determination, furnish the Executive
with an opinion that the Executive has substantial authority not to report any
Excise Tax on the Executive's federal, state, local income or other tax return.
Any determination by the Accounting Firm as to the amount of the Gross-Up
Payment shall be binding upon the Company and the Executive. As a result of
possible uncertainty in the application of Code Section 4999 (or any successor
provision thereto) and the possibility of similar uncertainty regarding
applicable state or local tax law at the time of any determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments will not have
been made by the Company that should have been made (an "Underpayment"),
consistent with the calculations required to be made hereunder. In the event
that the Company exhausts or fails to pursue its remedies pursuant to Section
6.10 hereof and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred, and the Company shall promptly pay any such Underpayment to
or for the benefit of the Executive within five business days after the
Company's receipt of the Accounting Firm's determination and calculations.

         6.10. The Executive shall notify the Company in writing of any claim by
the Internal Revenue Service that, if successful, would require the payment by
the Company of a Gross-Up Payment. Such notification shall be given as promptly
as practicable but no later than 10 business days after the Executive actually
receives notice of such claim and the Executive shall further apprise the
Company of the nature of such claim and the date on which such claim is
requested to be paid (in each case, to the extent known by the Executive). The
Executive shall not pay such claim prior to the earlier of (a) the expiration of
the 30-calendar-day period following the date on which the Executive gives such
notice to the Company and (b) the date that any payment of amount with respect
to such claim is due. If the Company notifies the Executive in writing prior to
the expiration of such period that it desires to contest such claim, the
Executive shall:

                  (i) provide the Company with any written records or documents
         in the Executive's possession relating to such claim as such records or
         documents are reasonably requested by the Company;

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                  (ii) take such action in connection with contesting such claim
         as the Company shall reasonably request in writing from time to time,
         including without limitation accepting legal representation with
         respect to such claim by an attorney competent in respect of the
         subject matter and reasonably selected by the Company;

                  (iii) cooperate with the Company in good faith in order
         effectively to contest such claim; and

                  (iv) permit the Company to participate in any proceedings
         relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including interest and penalties) incurred in connection with such
contest and shall indemnify and hold harmless the Executive, on an after-tax
basis, for and against any Excise Tax or income tax, including interest and
penalties with respect thereto, imposed as a result of such representation and
payment of costs and expenses. Without limiting the foregoing provisions of this
Section 6.10, the Company shall control all proceedings taken in connection with
the contest of any claim contemplated by this Section 6.10 and, at its sole
option, may pursue or forego any and all administrative appeals, proceedings,
hearings and conferences with the taxing authority in respect of such claim
(provided, however, that the Executive may participate therein at the
Executive's own cost and expense) and may, at its option, either direct the
Executive to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and the Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
the tax claimed and sue for a refund, the Company shall advance the amount of
such payment to the Executive on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax, including interest or penalties with respect thereto, imposed with
respect to such advance; and provided further, however, that any extension of
the statute of limitations relating to payment of taxes for the taxable year of
the Executive with respect to which the contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company's control of
any such contested claim shall be limited to issues with respect to which a
Gross-Up Payment

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would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

         6.11. The federal, state and local income or other tax returns filed by
the Executive shall be prepared and filed on a consistent basis with the
determination of the Accounting Firm with respect to the Excise Tax payable by
the Executive. The Executive shall make proper payment of the amount of any
Excise Tax and, at the request of the Company, provide to the Company true and
correct copies (with any amendments) of the Executive's federal income tax
return as filed with the Internal Revenue Service and corresponding state and
local tax returns, if relevant, as filed with the applicable taxing authority,
and such other documents reasonably requested by the Company, evidencing such
payment. If prior to the filing of the Executive's federal income tax return, or
corresponding state or local tax return, if relevant, the Accounting Firm
determines that the amount of the Gross-Up Payment should be reduced, the
Executive shall within five business days of such determination pay to the
Company the amount of such reduction. If, after the receipt by the Executive of
an amount advanced by the Company pursuant to Section 6.8 or 6.10 hereof, the
Executive receives any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 6.10
hereof) promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereof after taxes applicable thereto). If, after the
receipt by the Executive of an amount advanced by the Company pursuant to
Section 6.8 or 6.10 hereof, a determination is made that the Executive shall not
be entitled to any refund with respect to such claim and the Company does not
notify the Executive in writing of its intent to contest such denial or refund
prior to the expiration of 30 calendar days after such determination, then such
advance shall be forgiven and shall not be required to be repaid, and the amount
of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid pursuant to Section 6.8.

7.       DISABILITY OR DEATH

         7.1. In the event that the Executive becomes Totally Disabled during
the Executive's employment hereunder, (a) the Executive's employment with the
Company shall be deemed to have terminated employment with the Company effective
as of the first date on which the Executive is determined to be Totally
Disabled, and (b) in lieu of

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any other compensation or benefits provided for under this Agreement (to the
extent permitted by applicable law and other than pursuant to a policy, plan,
program or arrangement provided to the Executive in accordance with Section 4
hereof), the Executive shall receive on or about the first day of each calendar
month, beginning with the first calendar month immediately following the date on
which the Executive is first determined to be Totally Disabled and continuing
for five additional months (a total of six months), a cash payment equal to the
Executive's monthly base salary (determined as of the date on which the
Executive is first determined to be Totally Disabled) plus one-twelfth of the
average of the CAPP (or, if applicable, other annual bonus) awards paid to the
Executive by the Company for each of the three calendar years immediately
preceding the year in which the Executive is first determined to be Totally
Disabled (or, if the Executive has not been employed by the Company or one of
its affiliates for at least three calendar years immediately preceding the year
in which the Executive is first determined to be Totally Disabled, for such
years as the Executive has been employed by the Company or one of its affiliates
immediately preceding the year in which the Executive is first determined to be
Totally Disabled; provided, however, that if the Executive is determined to be
Totally Disabled prior to receiving any CAPP or other annual bonus award from
the Company, any CAPP or other annual bonus award guaranteed to such Executive
pursuant to the Executive's engagement letter with the Company shall be taken
into account for purposes of this Section 7.1), less any amounts received
through any disability or salary continuation plan provided pursuant to Section
4 hereof. For purposes of this Agreement, the Executive shall be considered to
be "Totally Disabled" as of such date as the Executive is determined to have a
physical or mental impairment that prevents the Executive from performing the
duties of the Executive's regular job.

         7.2. In the event that the Executive dies while employed hereunder, the
Executive's beneficiary (or beneficiaries) shall receive, in lieu of any other
compensation or benefits provided for under this Agreement (to the extent
permitted by applicable law and other than pursuant to a policy, plan, program
or arrangement provided to the Executive in accordance with Section 4 hereof),
the Executive's beneficiary or beneficiaries shall receive within 30 days of the
date of the Executive's death a lump-sum cash payment equal to the Executive's
annual base salary (determined as of the date of the Executive's death) plus the
average of the CAPP (or, if applicable, other annual bonus) awards paid to the
Executive by the Company for each of the three calendar years immediately
preceding the year in which the Executive

                                       14

<PAGE>   15

dies (or, if the Executive has not been employed by the Company or one of its
affiliates for at least three calendar years immediately preceding the year in
which the Executive dies, for such years as the Executive has been employed by
the Company or one of its affiliates immediately preceding the year of death;
provided, however, that if the Executive dies prior to receiving any CAPP (or
other annual bonus) award from the Company, any CAPP or other annual bonus award
guaranteed to such Executive pursuant to the Executive's engagement letter with
the Company shall be taken into account for purposes of this Section 7.2). The
Executive may designate, at any time and from time to time, a beneficiary or
beneficiaries, in such form as specified by the Company, to receive the payment
provided for herein, provided that any designation or change of a prior
designation must be received in writing by the Company prior to the Executive's
death and provided, further, that if no such designation is received by the
Company prior to the Executive's death, the Executive's beneficiary shall be
deemed to be the Executive's estate.

8.       RESTRICTIVE COVENANTS

         8.1. The Executive agrees to execute and deliver from time to time the
Company's standard confidentiality, conflict of interest and proprietary
information agreements.

         8.2. The Executive and the Executive's agents shall not, during the
24-month period following any termination of employment hereunder, or in
contemplation of termination of employment, induce, entice or solicit any
employee of the Company or its affiliates, to leave employment with the Company
or its affiliates.

         8.3. If the Executive receives benefits or compensation of any kind
from the Company pursuant to Section 6.3, the Executive will not, either
directly or indirectly, for a 24-month period following termination of
employment with the Company, compete with the Company in any manner or capacity
(e.g., as an employee, advisor, principal, agent, partner, officer or director)
in any phase of any business which the Company or any of its affiliates conduct
during the Employment Term. The obligations of this covenant not to compete
("Covenant") shall apply to any geographic area in which the Company and its
affiliates have engaged in business during the Employment Term. The Executive
agrees and acknowledges that it would be difficult to fully compensate the
Company for the damages resulting from a breach of this Covenant, and that the

                                       15

<PAGE>   16

Company will, therefore, be entitled to temporary and permanent injunctive
relief in the event of any actual or threatened breach. Such relief may be
granted without the necessity of proving actual damages, but this provision does
not diminish the Company's right to recover damages in addition to injunctive
relief.

9.       NOTICE

         For all purposes of this Agreement, all communications, including
without limitation notices, consents, requests or approvals, required or
permitted to be given hereunder, shall be in writing, and shall be deemed to
have been duly given when hand-delivered or dispatched by electronic facsimile
transmission (with receipt thereof confirmed), or five business days after
having been mailed by United States registered or certified mail, return receipt
requested, postage prepaid, or three business days after having been sent by a
nationally recognized overnight courier service such as Federal Express or UPS,
addressed to the Company (to the attention of its General Counsel) at its
principal executive offices and to the Executive at the Executive's principal
residence, or to such other address as any party may have furnished to the other
in writing and in accordance herewith, except that notices of changes of address
shall be effective only upon receipt.

10.      SEPARABILITY

         If any provision of this Agreement shall be declared to be invalid or
unenforceable, in whole or in part, such provision shall be modified, to the
extent practical, consistent with the intent of the parties, in order to render
it enforceable, but such invalidity or unenforceability shall not affect the
remaining provisions hereof, which shall remain in full force and effect.

11.      ASSIGNMENT

         11.1. The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation, reorganization or otherwise) to
all or substantially all of the business or assets of the Company, by agreement
in form and substance satisfactory to the Executive, expressly to assume and
agree to perform this Agreement in the same manner and to the same extent the
Company would have been required to perform if no such succession had taken
place. This Agreement shall be binding upon

                                       16

<PAGE>   17

and inure to the benefit of the Company and any successor to the Company,
including without limitation any persons acquiring directly or indirectly all or
substantially all of the business or assets of the Company whether by purchase,
merger, consolidation, reorganization or otherwise (and such successor shall
thereafter be deemed the "Company" for the purposes of this Agreement), but
shall not otherwise be assignable, transferable or delegable by the Company.

         11.2. This Agreement shall inure to the benefit of , and be enforceable
by, the Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees and legatees.

         11.3. This Agreement is personal in nature, and neither of the parties
hereto shall, without the consent of the other, assign, transfer or delegate
this Agreement or any rights or obligations hereunder except as expressly
provided in Sections 11.1 and

         11.4. Without limiting the generality or effect of the foregoing, the
Executive's right to receive payments hereunder shall not be assignable,
transferable or delegable, whether by pledge, creation of a security interest,
or otherwise, other than by a transfer by the Executive's will or by the laws of
descent and distribution; and, in the event of any attempted assignment or
transfer contrary to this Section 11.3, the Company shall have no liability to
pay any amount so attempted to be assigned, transferred or delegated.

12.      ENTIRE AGREEMENT; AMENDMENT

         This Agreement supersedes any and all other agreements, either oral or
in writing, between the parties hereto with respect to the subject matter hereof
and contains all of the covenants and agreements between the parties with
respect to such subject matter. Each party to this Agreement acknowledges that
no representations, inducements, promises or other agreements, orally or
otherwise, have been made by any party, or anyone acting on behalf of any party,
pertaining to the subject matter hereof, which are not embodied herein, and that
no other agreement, statement, or promise pertaining to the subject matter
hereof that is not contained in this Agreement shall be valid or binding on
either party. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing
signed by the Executive and the Company. No waiver by either party

                                       17

<PAGE>   18

hereto at any time of any breach by the other party hereto or compliance with
any condition or provision of this Agreement to be performed by such other party
will be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. Unless otherwise noted, references to
"Sections" are to sections of this Agreement. The captions used in this
Agreement are designed for convenient reference only and are not to be used for
the purpose of interpreting any provision of this Agreement.

13.      DISPUTE RESOLUTION.

         13.1. Any dispute between the Executive and the Company under this
Agreement shall be resolved (except as provided otherwise in this Section 13)
through binding arbitration conducted by the American Arbitration Association,
pursuant to the American Arbitration Association Employment Arbitration rules,
or other mutually agreeable arbitration service or rules. The arbitrator shall
be selected by mutual agreement, through alternative strikes from a designated
list, or as required by the American Arbitration Association. The arbitrator
shall be duly licensed to practice law in the State of Texas and shall have
experience in employment law arbitration. All proceedings shall be conducted in
the City of Dallas, State of Texas, unless otherwise agreed by all parties.

         13.2. The arbitrator shall permit reasonable pre-hearing discovery of
facts, to the extent necessary to establish a claim or a defense to a claim,
subject to supervision by the arbitrator. Each party shall be entitled to
present evidence and argument to the arbitrator. Each party shall have the right
to be represented by legal counsel of the party's choosing. The arbitrator shall
have the right only to interpret and apply the provisions of this Agreement and
may not change any of its provisions. The arbitrator does not have authority (a)
to render a decision that contains a reversible error of state or federal law,
or (b) to apply a cause of action or remedy not otherwise provided for under
applicable state or federal law. The arbitrator shall be required to state in a
written opinion all facts and conclusions of law relied upon to support the
decision rendered and shall give written notice to the parties of the decision
and furnish each party a signed copy of such decision. The determination of the
arbitrator shall be conclusive and binding upon the parties, and judgment upon
the same may be entered in any court having jurisdiction thereof. The parties
shall resolve any dispute over the enforceability of an award through
declaratory relief to be disposed of through motion

                                       18

<PAGE>   19
proceedings in the applicable court of law. Either party may move for dismissal
through summary judgment in accordance with the Federal Rules of Civil Procedure
and the standard of proof under federal law for a motion for summary judgment.
The expenses of arbitration, including reasonable expenses of legal counsel
retained by the Executive in connection with such arbitration, shall be borne by
the Company.

         13.3. Notwithstanding the foregoing, the Company shall not be required
to seek or participate in arbitration regarding any breach of the Executive's
obligations pursuant to Sections 8.2 or 8.3 hereof, but may pursue its remedies
for such breach in a court of competent jurisdiction in the City of Dallas,
State of Texas.

14.      GOVERNING LAW

         This Agreement shall be construed, interpreted and governed in
accordance with the laws of Texas.

         IN WITNESS WHEREOF, the parties have executed this Agreement effective
as of ________________, 1999.

                                             -----------------------------------
                                             (Executive)

                                             ASSOCIATES CORPORATION OF
                                             NORTH AMERICA (A Texas
                                             Corporation)

                                             By:
                                                --------------------------------
                                                Michael E. McGill
                                                Executive Vice President

                                       19<PAGE>   1
                                                                    EXHIBIT 10.7

ASSOCIATES FIRST CAPITAL CORPORATION
INCENTIVE COMPENSATION PLAN
STOCK OPTION AWARD AGREEMENT - 2000

You have been selected to become a Participant in the Associates First Capital
Corporation Incentive Compensation Plan (the "Plan") for 2000, through this
grant of a nonqualified stock option (the "Stock Option" or "Option") as
specified below:

PARTICIPANT:
            ------------------------------------------------
ADDRESS:
         ---------------------------------------------------

         ---------------------------------------------------
OPTION NO.:
           ----------------------------
DATE OF GRANT:
              -------------------------
NUMBER OF SHARES COVERED BY THIS AGREEMENT:
                                           -----------------
OPTION PRICE:
             --------------------------
DATE OF EXPIRATION:
                   --------------------

Except as hereinafter provided, you may exercise this Option in accordance with
the following vesting schedule:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
            Percentage        Number of Shares Available             Cumulative Number of Shares
 Date       Exercisable       for Purchase as of this Date*          Available for Purchase*
------------------------------------------------------------------------------------------------
<S>                           <C>                                    <C>
             33 1/3%             ______________ Shares                 ______________ Shares

             66 2/3%             ______________ Shares                 ______________ Shares**

             100%                ______________ Shares                 ______________ Shares**
------------------------------------------------------------------------------------------------
</TABLE>

THIS AGREEMENT, effective as of the Date of Grant set forth above, represents
the grant of an Option to purchase shares of the Class A Common Stock ("Shares")
of Associates First Capital Corporation, a Delaware corporation (the "Company"),
to the Participant named above, pursuant to the provisions of the Plan.

--------

*    Number of Shares may reflect rounding to extent necessary to avoid
     fractional Shares.

**   Numbers listed assume no exercise has yet occurred under this Option.

<PAGE>   2

The Plan provides a description of certain terms and conditions governing the
Option. In the event of any inconsistency between the terms of this Agreement
and the terms of the Plan, the Plan's terms shall completely supersede and
replace the conflicting terms of this Agreement. All capitalized terms shall
have the meanings ascribed to them in the Plan, unless specifically set forth
otherwise herein. The parties hereto agree as follows:

1.       GRANT OF STOCK OPTION. The Participant is hereby granted an Option to
         purchase the number of Shares set forth above, at the stated Option
         Price (as set forth on page 1 of this Agreement), which is 100 percent
         of the Fair Market Value of a Share on the Date of Grant, in the manner
         and subject to the applicable terms and conditions of the Plan and this
         Agreement.

2.       EXERCISE OF STOCK OPTION. Except as otherwise provided in this
         Agreement, the Participant may exercise this Option as provided in
         Section 3 of this Agreement and according to the vesting schedule set
         forth on page 1 of this Agreement, provided that no exercise may occur
         prior to the end of one (1) year following the Date of Grant or
         subsequent to the close of business on the Date of Expiration (as set
         forth on page 1 of this Agreement).

         This Option may be exercised in whole or in part, but not for less than
         25 Shares at any one time, unless fewer than 25 Shares then remain
         subject to the Option, and the Option is then being exercised as to all
         such remaining Shares. The Option may be exercised only for full
         Shares; no Option is exercisable for fractional Shares.

3.       PROCEDURE FOR EXERCISE OF OPTION. Exercise of this Option may be
         initiated on any business day by delivery of a notice of exercise (on
         such form as may be specified and provided by the Company or its
         designee) (the "Notice of Exercise") to the Company or its designee, or
         by such other method as the Company specifies. The Company may at any
         time change the time and/or manner in which the Option may be
         exercised. Further, the Company reserves the right to limit the manner
         in which the Option may be exercised at any time, and from time to
         time, for Participants in a given country to facilitate or ensure
         compliance with local law or for reasons of administrative ease.

         (a)      Payment of Option Price: The Option Price shall be payable (i)
                  in cash in the form of currency or check or other cash
                  equivalent acceptable to the Company; (ii) by tendering
                  previously acquired, nonforfeitable, nonrestricted Shares
                  (provided that any Shares so tendered must have been owned by
                  the Participant for at least six months prior to their
                  tender); or (iii) by a combination of the foregoing methods.
                  The requirement of payment in cash may be satisfied through a
                  "cashless exercise" as described in Section 3(b).

         (b)      Cashless Exercise: A Participant may direct, through the
                  Company's designee or in such other manner as the Company may
                  specify from time to time, a broker that is a member of the
                  National Association of Securities Dealers, Inc. to sell a
                  sufficient number of the Shares being purchased pursuant to
                  the exercise so that the net proceeds of the sale transaction
                  will at least equal the aggregate Option Price, plus interest
                  (if any) at the applicable federal rate (as "applicable
                  federal rate" is defined in Section 1274 of the Code) for the
                  period from the date of exercise to the date of payment, and
                  to deliver the aggregate Option Price, plus such interest (if
                  any), to the Company not later than the date on which the sale
                  transaction will settle in the

                                        2

<PAGE>   3

                  ordinary course of business (such a broker-assisted
                  transaction to be referred to herein as a "cashless
                  exercise").

         (c)      Share Price: Any Share purchased (and sold, in the case of a
                  cashless exercise) pursuant to exercise of the Option shall be
                  valued on the basis of such Share's Fair Market Value as of
                  the date on which exercise of the Option is completed (or, if
                  exercise of the Option is completed over a period of more than
                  one day, on the basis of the average Fair Market Value during
                  such period). Any Share tendered by the Participant in payment
                  of all or any part of the Option Price shall be valued on the
                  basis of such Share's Fair Market Value as of the date on
                  which such Share is exchanged in order to effectuate exercise
                  of the Option.

         (d)      Delivery to Participant: As soon as practicable following the
                  date on which the purchase (and sale, in the case of a
                  cashless exercise) of Shares pursuant to the Option will
                  settle in the ordinary course of business, the Company shall
                  cause, in accordance with the Participant's election and in
                  any case net of transaction fees (if any) and tax withholding
                  (if applicable pursuant to Section 3(e)), the following to
                  occur:

                  (i)      Certificates for the Shares purchased to be delivered
                           to the Participant;

                  (ii)     The number of Shares purchased to be credited to a
                           brokerage account specified by the Participant on the
                           Notice of Exercise; or

                  (iii)    In the event of a cashless exercise, any proceeds of
                           the sale transaction remaining after delivery to the
                           Company of the aggregate Option Price (plus any
                           interest, as described in Section 3(b)) to be
                           delivered to the Participant in the manner specified
                           by the Participant on the Notice of Exercise.

                  If a Participant elects either (i) or (ii), to the extent such
                  Participant has elected a cashless exercise of the Option, the
                  number of Shares subject to this Section 3(d) shall be only
                  the number of Shares remaining after the sale transaction
                  described in Section 3(b).

         (e)      Withholding: If the Company or a Company Subsidiary (as
                  hereinafter defined) is required by law to withhold any
                  federal, state, national, provincial or other tax, pension or
                  insurance withholding obligations imposed by any governmental
                  authority under applicable law in connection with exercise of
                  an Option, the Participant shall either (i) pay such taxes, in
                  addition to the Option Price, in conjunction with electing
                  exercise of the Option or (ii) elect either (A) to have such
                  taxes withheld from any cash payment of proceeds pursuant to a
                  cashless exercise or (B) to satisfy all or any part of any
                  such withholding obligation by surrendering to the Company or
                  the Company Subsidiary (either directly or through their
                  respective designees) a portion of the Shares issued or
                  transferred to the Participant pursuant to exercise of the
                  Option. To the extent that a Participant elects to meet any
                  withholding obligation by surrendering Shares, the Shares so
                  surrendered shall be credited against any such withholding
                  obligation at the Fair Market Value per Share on the date of
                  such surrender; provided, however, if the Participant is
                  subject to Section 16 of the Exchange Act, such election shall
                  be subject to approval by the Committee if such

                                        3

<PAGE>   4

                  approval is then required by Rule 16b-3 of the General Rules
                  and Regulations promulgated under the Exchange Act. All
                  withholding elections shall be irrevocable. The term "Company
                  Subsidiary" when used herein shall mean any corporation a
                  majority of the voting stock of which is owned directly or
                  indirectly by the Company.

4.       TERMINATION OF EMPLOYMENT.

         (a)      By Retirement, Disability or death: In the event of a
                  Participant's termination of employment due to Retirement,
                  Disability or death ("Retirement" and "Disability" as
                  hereinafter defined), the Option shall continue in effect and
                  shall become fully vested and exercisable during the
                  applicable periods in accordance with the provisions hereof.
                  For purposes of this Agreement, termination of a Participant's
                  employment due to "Retirement" shall mean a voluntary
                  termination of a Participant's employment with the Company or
                  a Company Subsidiary on or after such date as the Participant
                  is eligible to commence pension payments under the Company's
                  defined benefit pension plan (excluding any payment of
                  benefits attributable to a prior employer's plan) or, if
                  applicable, separate pension plan sponsored by the Company or
                  a Company Subsidiary or other pension benefit plan as may be
                  required under applicable law in effect in any jurisdiction
                  outside the United States, in each case as such plan is then
                  in effect. The term "Disability" when used herein shall mean a
                  Participant's complete and total disability as determined
                  under the Company's long-term disability plan or, if
                  applicable, separate similar plan in effect or as may be
                  required under applicable law in any jurisdiction outside the
                  United States, in each case as such plan is in effect at the
                  time of such determination. In the event of the Participant's
                  death prior to exercise of this Option in whole, the
                  beneficiary designated or deemed to be designated pursuant to
                  Section 8 hereof or, if such beneficiary is an estate, the
                  executor or administrator of the estate or the person or
                  persons to whom the Option shall have been validly transferred
                  by the executor or the administrator pursuant to will or the
                  laws of descent and distribution, shall have the right to
                  exercise the Option, when vested, in accordance with the
                  provisions hereof.

         (b)      By termination for Cause or resignation: In the event of the
                  resignation of employment by the Participant or termination of
                  the Participant's employment by the Company or a Company
                  Subsidiary for Cause (as hereinafter defined), the Option
                  shall be forfeited effective as of the date of such
                  resignation or termination, and the Participant's right to
                  exercise this Option shall cease. For purposes of this
                  Agreement, a termination by the Company or a Company
                  Subsidiary for "Cause" shall mean a termination resulting from
                  (a) action by the Participant involving willful malfeasance,
                  (b) the Participant's unreasonable neglect or refusal to
                  perform such Participant's duties for the Company, Company
                  Subsidiary or any of their affiliates, (c) the Participant
                  being convicted of a felony, (d) the Participant engaging in
                  any activity that is directly or indirectly in competition
                  with the Company, Company Subsidiary or any of their
                  affiliates or in any activity that is inimical to the best
                  interests of the Company, Company Subsidiary or any of their
                  affiliates, or (e) the Participant's violation of Company
                  policy covering standards of corporate conduct. If the Company
                  or a Company Subsidiary terminates the Participant's
                  employment for

                                        4

<PAGE>   5

                  Cause, all of the Company's obligations under this Agreement
                  shall thereupon cease and terminate.

         (c)      By termination other than for Cause: In the event of a
                  termination of the Participant's employment for reasons other
                  than Retirement, Disability, death, termination by the Company
                  or Company Subsidiary for Cause or resignation, the portion of
                  the Option that is vested as of the date of termination of
                  employment may be exercised to the extent permitted under the
                  provisions hereof until the earlier of (i) the Date of
                  Expiration (as set forth on page 1 of this Agreement) or (ii)
                  the close of business on the 90th day following the date of
                  termination of employment. No other rights under this
                  Agreement shall continue in effect or continue to accrue from
                  the date of termination forward.

5.       EFFECT OF COMPETITIVE ACTIVITY OR INIMICAL CONDUCT.

         (a)      Anything contained herein to the contrary notwithstanding, the
                  right of the Participant to exercise the Option shall remain
                  effective only if, during the entire period from the Date of
                  Grant (as set forth on page 1 of this Agreement) to the date
                  of such exercise, the Participant shall have earned the Option
                  by refraining from engaging in any activity that is directly
                  or indirectly in competition with any activity of the Company
                  or any Company Subsidiary or any of their affiliates.

         (b)      In the event of the Participant's nonfulfillment of the
                  condition set forth in Section 5(a), the Participant's right
                  to exercise such Option shall cease; provided, however, that
                  the nonfulfillment of such condition may at any time be waived
                  by the Committee upon its determination, in its sole judgment,
                  that there shall not have been and will not be any substantial
                  adverse effect upon the Company or any Company Subsidiary or
                  any of their affiliates by reason of the nonfulfillment of
                  such condition.

         (c)      The right of the Participant to exercise the Option shall
                  cease on and as of the date on which it has been determined by
                  the Committee that the Participant at any time acted in a
                  manner inimical to the best interests of the Company or any
                  Company Subsidiary or any of their affiliates. Conduct that
                  constitutes engaging in an activity that is directly or
                  indirectly in competition with any activity of the Company or
                  any Company Subsidiary or any of their affiliates shall be
                  governed by Sections 5(a) and 5(b) and shall not be subject to
                  any determination under this Section 5(c).

6.       RESTRICTIONS ON EXERCISE AND TRANSFER. This Option (a) shall be
         exercisable during the Participant's lifetime only by the Participant
         or, in the event of the Participant's legal incapacity, by the
         Participant's legal guardian or representative acting in a fiduciary
         capacity on behalf of the Participant under applicable law and court
         supervision, if legally required, and (b) may not be sold, transferred,
         pledged, assigned or otherwise alienated or hypothecated, other than by
         will or by the laws of descent and distribution.

7.       RECAPITALIZATION. In the event of any change in capitalization of the
         Company (such as a stock split, stock dividend or combination of
         shares), corporate transaction (such as any merger, consolidation,
         separation, including a spin-off, or other distribution of stock or

                                        5

<PAGE>   6

         property of the Company), reorganization (whether or not such
         reorganization comes within the definition of such term in Code Section
         368) or partial or complete liquidation of the Company, an adjustment
         may be made in the number and class of Shares subject to this Option,
         as well as the Option Price, as may be determined to be appropriate and
         equitable by the Committee, in its sole discretion, to reflect such
         change in capitalization, corporate transaction, reorganization or
         partial or complete liquidation.

8.       BENEFICIARY DESIGNATION. The Participant may designate a beneficiary or
         beneficiaries (who may be named contingently or successively) who, in
         the event of the Participant's death prior to exercise of this Option
         in whole, shall be entitled to exercise any unexercised portion of the
         Option. Any such beneficiary designation shall be made by the
         Participant in writing (on the appropriate form as provided by the
         Company or a Company Subsidiary) and shall automatically revoke all
         prior designations by the Participant. The Participant may, at any time
         and from time to time, change or revoke such designation. A beneficiary
         designation, or revocation of a prior beneficiary designation, shall be
         effective only if it is signed by the Participant and received by the
         Company or a Company Subsidiary prior to the Participant's death. If
         the Participant does not designate a beneficiary or all beneficiaries
         die prior to exercise of any unexercised portion of the Option, the
         Participant's estate shall be deemed to be the beneficiary. If a
         beneficiary dies after having exercised at least a portion of the
         Option, the beneficiary's estate shall be deemed to be the beneficiary
         of any remaining unexercised portion of the Option.

9.       RIGHTS AS A STOCKHOLDER. The Participant shall have no rights as a
         stockholder of the Company with respect to the Shares subject to this
         Agreement until such time as the Option Price has been paid and the
         Shares have been issued and delivered to him or her.

10.      NO RIGHT OF EMPLOYMENT. The grant of the Option to the Participant does
         not create a right to continued employment with the Company or any
         Company Subsidiary. Nothing in this Agreement shall interfere with or
         limit in any way the right of the Company or a Company Subsidiary to
         terminate the employment of the Participant at any time, with or
         without reason; nor shall anything in this Agreement be deemed to
         create or confer upon the Participant or any other individual any
         rights to employment of any kind or nature whatsoever for any period of
         time or at any particular rate of compensation, including, without
         limitation, any right to continue in the employ of the Company or any
         Company Subsidiary.

11.      COMPLIANCE WITH LAW. The Company shall make reasonable efforts to
         comply with all applicable federal, state, national and provincial
         securities laws or other securities laws; provided, however,
         notwithstanding any other provision of this Agreement, the Option shall
         not be exercisable if the exercise thereof would result in a violation
         of any such law. The Committee may impose such restrictions, including
         restrictions on transferability, on any Shares acquired pursuant to the
         exercise of this Option as the Committee may deem advisable under any
         of the aforementioned securities laws or other requirements, including,
         without limitation, restrictions of any securities exchange or market
         upon which such Shares are then listed and/or traded.

12.      DATA PROTECTION. By executing this Agreement, the Participant consents
         to the Company or the Company Subsidiary that directly employs the
         Participant and any agent or independent

                                        6

<PAGE>   7

         contractor appointed by the Company to administer the Stock Option
         Awards under the Plan and this Agreement to obtain and maintain any
         personal information from the Participant's employer, and to disclose
         and transfer such information to each other and/or third parties as may
         be required, whether locally or abroad, for the effective
         administration of the Stock Option Awards. Neither the Company, the
         Company Subsidiary nor any agent or independent contractor shall be
         liable for any loss or damage, whether direct or indirect or
         consequential, incurred by the Participant and arising from the use of
         such personal information as authorized herein.

13.      MISCELLANEOUS.

         (a)      This Agreement and the rights of the Participant hereunder are
                  subject to all the terms and conditions of the Plan, as the
                  same may be amended from time to time, as well as to such
                  rules and regulations as the Committee may adopt for
                  administration of the Plan. It is expressly understood that
                  the Committee is authorized to administer, construe and make
                  all determinations necessary or appropriate to the
                  administration of the Plan and this Agreement, all of which
                  shall be binding upon the Participant.

         (b)      Pursuant to the terms of the Plan, (i) the Board 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, and (ii) the Committee may make
                  adjustments to this Option and Agreement in recognition of
                  unusual or nonrecurring events affecting the Company or the
                  financial statements of the Company and/or changes in
                  applicable laws, regulations or accounting principles whenever
                  the Committee determines that such adjustments are
                  appropriate; provided, however, that no alteration, amendment,
                  suspension or termination of the Plan shall adversely affect
                  in any material way the Participant's vested rights under this
                  Agreement without the written consent of the Participant.
                  Notwithstanding the foregoing, the Committee may modify,
                  without the Participant's consent, this Option and Agreement
                  to recognize differences in local law, tax policy or custom if
                  the Participant is a foreign national or employed outside the
                  United States.

         (c)      The Participant agrees to take all steps necessary to comply
                  with all applicable provisions of federal, state, national and
                  provincial securities law and other securities laws in
                  exercising his or her rights under this Agreement.

         (d)      This Agreement 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.

         (e)      All obligations of the Company under the Plan and this
                  Agreement, with respect to this Option, 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.

                                        7

<PAGE>   8

         (f)      To the extent not preempted by United States federal law or
                  other comparable law, this Agreement shall be construed in
                  accordance with and governed by the laws of the State of
                  Texas.

         (g)      The grant of the Option to the Participant is completely
                  discretionary in nature and is not to be considered part of
                  any Participant's salary or compensation for purposes of
                  calculating any severance, resignation, redundancy, end of
                  service payments, bonuses, long-term service awards, pension
                  or retirement benefits, or similar payments except as
                  otherwise required under local law. Neither the Participant
                  nor any other individual shall have any right to be selected
                  to receive a grant under the Plan or, having been so selected,
                  to be selected to receive a future grant; nor shall anything
                  in this Agreement create or confer, or be deemed to create or
                  confer, upon any Employee or other individual any such right.

IN WITNESS WHEREOF, this Agreement is executed effective as of the Date of
Grant.

                                          ASSOCIATES FIRST CAPITAL CORPORATION

                                          By:
                                              ----------------------------------
                                              Michael E. McGill,
                                              Executive Vice President

The undersigned Participant hereby acknowledges receipt of this Agreement and
accepts the Option subject to the applicable terms and conditions set forth
herein and in the Plan.

Participant's Signature:                                      Date:
                        -------------------------------------      -------------

Note: Please sign the Agreement, make a copy for your records, and return the
      original to:

      Compensation Committee
      c/o John W. Lee
      Associates First Capital Corporation
      P.O. Box 660237
      Dallas, TX 75266-0237

                                        8

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