Document:

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                                                                     Exhibit 4.2

            THIS THIRD SUPPLEMENTAL INDENTURE dated July 2, 2002, between CIT
GROUP INC. (formerly known as CIT Group Inc. (Del)), a Delaware corporation
("CIT"), and THE BANK OF NEW YORK, a banking corporation organized and existing
under the laws of New York (the "Trustee").

            WHEREAS, CIT Group Inc. (formerly known as Tyco Capital Corporation
and Tyco Acquisition Corp. XX (NV) and successor to The CIT Group, Inc.), a
Nevada corporation ("CIT Nevada"), as successor to (i) The CIT Group, Inc., a
Delaware corporation ("CIT Delaware"), and (ii) Tyco Capital Holding Inc.
(formerly known as CIT Holdings (NV) Inc.), a Nevada corporation ("Tyco
Holding"), and the Trustee are parties to an Indenture dated as of September 24,
1998 (as supplemented by the First Supplemental Indenture dated June 1, 2001 and
the Second Supplemental Indenture dated February 14, 2002, the "Indenture"),
pursuant to which CIT Delaware authorized the issue of an unlimited amount of
unsecured and senior subordinated debt securities (the "Debt Securities");

            WHEREAS, CIT Nevada has merged into Tyco Holding, and, effective as
of the date hereof, Tyco Holding has subsequently merged into CIT, pursuant to
Articles of Merger previously filed with the Nevada Secretary of State and a
Certificate of Merger previously filed with the Delaware Secretary of State
(together, the "Merger");

            WHEREAS, pursuant to the terms of the Merger and applicable law, CIT
succeeded to all of the rights and obligations of CIT Nevada;

            WHEREAS, Section 16.01 of the Indenture requires as a condition to a
merger of CIT Nevada, as the Corporation, with or into any other corporation
that the successor corporation expressly assume, by supplemental indenture
executed and delivered to the Trustee, the due and punctual payment of the
principal of and interest, if any, on all the Debt Securities then outstanding
and the performance and observance of each and every covenant, agreement and
condition of the Indenture to be performed or observed by CIT Nevada, as the
Corporation;

            WHEREAS, the parties wish to provide that CIT become the
"Corporation" under the Indenture by reason of the Merger;

            WHEREAS, CIT has determined that this Third Supplemental Indenture
complies with Section 14.01(b) of the Indenture and does not require the consent
of the holders of any of the Debt Securities; and

            WHEREAS, all acts and things necessary to make this Third
Supplemental Indenture a valid agreement of CIT according to its terms have been
done and performed, and the execution and delivery of this Third Supplemental
Indenture have in all respects been duly authorized by CIT;

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            NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration, the sufficiency and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

                                   ARTICLE ONE

                        PROVISIONS OF GENERAL APPLICATION

SECTION 1.1 TO BE READ WITH INDENTURE

            This Third Supplemental Indenture is supplemental to the Indenture,
and the Indenture and this Third Supplemental Indenture shall hereafter be read
together and shall have effect with respect to the Debt Securities as if all the
provisions thereof and hereof were contained in one instrument.

SECTION 1.2 INTERPRETATION

            In this Third Supplemental Indenture, unless there is something in
the subject or context inconsistent therewith:

            (a)   "Indenture", "herein", "hereby", "hereof" and similar
                  expressions mean and refer to the Indenture and this Third
                  Supplemental Indenture;

            (b)   the expression "Article" and "Section" followed by a number
                  mean and refer to the specified Article or Section of this
                  Third Supplemental Indenture unless otherwise expressly
                  stated; and

            (c)   other expressions defined in the Indenture shall have the same
                  meanings when used in this Third Supplemental Indenture.

                                   ARTICLE TWO

                           ASSUMPTION AND SUBSTITUTION

SECTION 2.1 ASSUMPTION AND SUBSTITUTION.

            By reason of the Merger and this Third Supplemental Indenture and
effective as of the consummation of the Merger, CIT did and does agree to
succeed to and be substituted for CIT Nevada, as the Corporation, with the same
effect as if it had been named as the Corporation in the Indenture and to become
liable and bound for, and to expressly assume, the due and punctual payment of
the principal of (and premium, if any) and interest, if any, on all the Debt
Securities outstanding as of the date hereof and the performance and observance
of each and every covenant and condition of the Indenture on the part of CIT
Nevada, as the Corporation, to be performed or observed.

                                      -2-
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                                  ARTICLE THREE

                         REPRESENTATIONS AND WARRANTIES

SECTION 3.1 REPRESENTATIONS AND WARRANTIES OF CIT.

            CIT hereby represents and warrants as follows:

                  (a) CIT (i) is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware, and (ii) has the
company or corporate power and authority to assume the obligations of the
Corporation under the Indenture and to execute, deliver and perform this Third
Supplemental Indenture.

                  (b) The execution, delivery and performance by CIT of this
Third Supplemental Indenture and the assumption of the obligations of CIT Nevada
under the Indenture (i) have been duly authorized by all necessary company
action on its part, (ii) do not and will not contravene its certificate of
incorporation or bylaws or the Indenture, any material law or any material
contractual restriction binding on CIT or any of its material properties, and
(iii) do not and will not result in or require the creation of any lien,
security interest or other charge or encumbrance upon any of its material
properties.

                  (c) No authorization or approval or other action by, and no
notice to or filing with, any governmental authority or other regulatory body is
required for the due execution, delivery and performance by CIT of this Third
Supplemental Indenture or for its assumption of the obligations of CIT Nevada
under the Indenture.

                  (d) This Third Supplemental Indenture is the legal, valid and
binding obligation of CIT, enforceable against CIT in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors' rights generally and to general
equitable principles (whether enforcement is sought by proceedings in equity or
at law).

                  (e) No litigation, investigation or proceeding of or before
any arbitrator or governmental authority or other regulatory body is pending or,
to its knowledge, threatened by or against CIT with respect to this Third
Supplemental Indenture or any of the transactions contemplated hereby.

                  (f) CIT is not, effective immediately following consummation
of the Merger, in default in the performance of any covenant or condition in the
Indenture.

                                      -3-
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                                  ARTICLE FOUR

                           FURTHER ASSURANCES REQUIRED

SECTION 4.1 TRUSTEE DOCUMENTS.

            CIT has delivered to the Trustee, pursuant to the Indenture, an
Officers' Certificate and an Opinion of Counsel.

SECTION 4.2 FURTHER ASSURANCES REQUIRED.

            At any time and from time to time, upon the Trustee's request, CIT
will promptly execute and deliver such documents and instruments and take such
further actions as the Trustee may reasonably request to effect the purposes of
this Third Supplemental Indenture, at the cost and expense of CIT.

                                  ARTICLE FIVE

                                  MISCELLANEOUS

SECTION 5.1 MISCELLANEOUS.

                  (a) This Third Supplemental Indenture may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which shall be deemed to be an original, but all of which taken together
shall constitute one and the same agreement.

                  (b)   This Third Supplemental Indenture is effective as of
the consummation of the Merger.

                  (c) This Third Supplemental Indenture shall be deemed to be a
contract made under the laws of the State of New York, and for all purposes
shall be construed in accordance with the laws of said State.

                  (d) The recitals contained herein shall be taken as the
statements of CIT, and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representation as to the validity or
sufficiency of this Third Supplemental Indenture.

                                      -4-
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            IN WITNESS WHEREOF, the parties hereto have caused this Third
Supplemental Indenture to be duly executed as of the day and year first above
written.

                                    CIT GROUP INC., A DELAWARE CORPORATION

                                    By:
                                       ---------------------------------

                                    THE BANK OF NEW YORK,
                                    TRUSTEE

                                    By:
                                       ---------------------------------

                                      -5-<PAGE>

                                                                    Exhibit 10.1

December 19, 2001

Mr. Robert T. Giaimo
Silver Diner, Inc.
11806 Rockville Pike
Rockville, Maryland 20852

Re:  Silver Diner Stock Options
     --------------------------

Dear Mr. Giaimo:

         You are the holder of options (the "Existing Stock Options") to
purchase shares of common stock of Silver Diner, Inc. (the "Company") as set
forth in Exhibit A attached hereto. The exercise price or prices of your
Existing Stock Options are higher than the current market value of the Company's
common stock. To address this issue, the Company and you have agreed to the
following:

         1. You will surrender those of your Existing Stock Options as you shall
indicate by writing "yes" in the box(es) provided in the right hand column of
the table on Exhibit A attached hereto.

         2. In exchange for such cancellation, the Company agrees to grant to
you, on July 31, 2002, provided you are then associated with the Company, new
options to purchase the Company's common stock (the "New Stock Options"). The
New Stock Options will (i) be for the same number of shares of stock as Existing
Stock Options that you surrender for cancellation, (ii) vest on the same dates
as the Existing Stock Options that you surrender for cancellation, (iii) be
exercisable at a price equal to 110% of the fair market value of the Company's
common stock on July 31, 2002 and (iv) have a term of five years from the date
of grant.

         3. In addition, you shall have the right at any time prior to July 31,
2002, to elect to delay until February 1, 2003 issuance of a portion of the New
Stock Options so as to comply with the $100,000 federal tax requirement referred
to on Exhibit A hereto for incentive stock options.

         I am pleased that the Company has been able to work out this
arrangement with you. Please sign below to confirm our agreement.

                                             Sincerely,

                                             /s/ Robert T. Giaimo
                                             -----------------------------------
                                             Robert T. Giaimo, President

                                       -6-

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         The undersigned hereby agrees that the Existing Stock Options held by
the undersigned, as indicated on Exhibit A by the undersigned, are hereby
surrendered for cancellation.

         The undersigned further agrees to accept the New Stock Options to be
granted on July 31, 2002, and to be bound by the terms of the New Stock Option
Agreement which the Company will sign and deliver to you promptly after July 31,
2002. The New Stock Option Agreement will be in the form attached hereto as
Exhibit B, with the blanks filled in for the date, the number of shares covered,
the exercise price, and the exercise dates.

         Please sign below and complete Exhibit A and return this letter
together with Exhibit A to Mr. Noland Montgomery via fax at 202-857-6395, with
the original to follow by mail to the address below, on or before December 28,
2001:

         Mr. Noland Montgomery
         C/o Arent Fox
         1050 Connecticut Avenue, N.W.
         Washington, D.C.  20036-5339

/s/ Robert T. Giaimo
------------------------------------

                                       -7-

<PAGE>

                                                                       Exhibit A
                                                                       ---------

                                Robert T. Giaimo

                             1996 Stock Option Plan
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
         Shares                                                                                       Write "yes" or
       subject to                                                                                    "no" to indicate
         option                                                                                       whether you wish
(all options are incentive   Exercise             Vesting                              Expiration      to cancel the
     stock options)(*)         Price             Schedule            Grant Date           Date       options indicated
-----------------------------------------------------------------------------------------------------------------------
<S>                        <C>            <C>                      <C>              <C>              <C>
400,000                    $1.2375        120,000 (30%) vest at    12/15/98         12/14/03          YES
                                          12/29/98, 20% at
                                          12/29/99, 20% at
                                          12/29/00 and 30%
                                          at 12/29/01 /1/
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

(*) To qualify as incentive stock options, the exercise price of the new options
    must be 110% of the fair market price of the shares on the date of grant. In
    addition, the term of the options cannot be more than five (5) years and the
    exercise price of the options first becoming exercisable in any one calendar
    year, may not exceed $100,000, with any additional options being deemed
    non-qualifying options. Thus, a market price of more than $.25 will result
    in a portion of the options being deemed non-qualified. The exact number of
    non-qualified options will equal the market price of the shares times
    400,000 less $100,000 divided by the market price at July 31, 2001.

-------------------

/1/ An additional 18% of options vest when the market price of the shares is
    greater than $5.00 per share, $7.50 per share and $10 per share, with the
    options vesting 100% when the market price is greater than $12.00 per share.
    Note that vesting schedule has been adjusted to incorporate revisions
    adopted by the Board of Directors at its meeting held 12/15/98.

                                       -8-

<PAGE>

                                                                       Exhibit B

                               SILVER DINER, INC.
                           STOCK OPTION PLAN AGREEMENT

A stock option award is hereby granted by Silver Diner, Inc., a Delaware
corporation ("Company"), to the _____________________named below ("Optionee"),
for and with respect to common stock of the Company, par value $0.00074 per
share ("Common Stock"), subject to the following terms and conditions:

         1. Subject to the provisions set forth herein and the provisions of the
Stock Option Plan ("Plan"), the provisions of which are hereby incorporated by
reference, and in consideration of the agreements of Optionee herein provided,
the Company hereby grants to Optionee a Stock Option to purchase from the
Company the number of shares of Common Stock, at the purchase price per share
("Option Exercise Price"), and on the schedule, all as set forth below. Such
Stock Option, which shall be a non-qualified stock option, is sometimes referred
to herein as the "Award."

Name of Optionee:                                        _____________

Number of Shares Subject to Stock Option:                _____________

Option Exercise Price                                    $____________
Per Share:

Date of Grant:                                           ______________

Exercise Schedule:

    Number of Shares                 Exercise Period
 Subject to Stock Option          Date First Exercisable             Expiration
 -----------------------          ----------------------             ----------

         2. The exercise of all or any portion of the Award is conditioned upon
the acceptance by Optionee of the terms hereof as evidenced by his execution of
this Option Agreement in the space provided therefor at the end hereof and the
return of an executed copy to the Secretary of the Company.

         Witten notice of an election to exercise any portion of the Award, in a
form substantially identical to that attached as an Exhibit hereto and
specifying the portion thereof being exercised and the exercise date, shall be
given by Optionee, or his legal representative, (a) by delivering such notice at
the principal executive offices of the Company no later than the exercise date,
or (b) by mailing such notice, postage prepaid, addressed to the Secretary of
the Company at the Company's principal executive offices at least three business
days prior to the exercise date.

         3. Neither Optionee nor any other person entitled to exercise the Stock
Option under the terms hereof shall be, or have any of the rights or privileges
of, a shareholder of the Company in respect of any Common Stock issuable on
exercise of the Stock Option, until the date of the issuance of a stock
certificate for such Common Stock.

         4. If the Award shall be exercised in whole, this Option Agreement
shall be surrendered to the Company for cancellation. If the Award shall be
exercised in part, or a change in the number or designation of the Common Stock
shall be made, this Option Agreement shall be delivered by Optionee to the
Company for the purpose of making appropriate notation thereon, or of otherwise
reflecting, in such manner as the Company shall determine, the partial exercise
or the change in the number or designation of the Common Stock.

         5. Optionee represents, warrants and agrees that Optionee will acquire
and hold the shares purchased on exercise of the Option for his own account for
investment and not with the view to the resale or distribution thereof, except
for resales or distributions in accordance with applicable securities laws, and
that Optionee will not, at any time or times, directly or indirectly, offer,
sell, distribute, pledge, or otherwise grant a security interest in or otherwise
dispose of or transfer all, any portion of or any interest in, any shares
purchased on exercise of the Option (or solicit an offer to buy, take in pledge
or otherwise acquire or receive, all or any portion thereof).

         Optionee acknowledges that Optionee has received and reviewed a
description of the Common Stock of the Company and a copy of the Plan. Optionee
further acknowledges that Optionee has had the opportunity to ask questions of,
and receive answer from, the officers and representatives of the Company
concerning all material information concerning the Company and the terms and
conditions of the transactions in which Optionee is acquiring the Option and may
subsequently acquire shares of the Common Stock. Optionee further acknowledges
that Optionee understands that the Company may use the proceeds from the
exercise of the Option for general corporate purposes.

         6. The Award shall be exercised in accordance with such administrative
regulations as the Board shall from time to time adopt.

         7. The Award and this Option Agreement shall be construed, administered
and governed in all respects under and by the laws of the State of Maryland,
without giving effect to principles of conflict of laws.

                   SILVER DINER, INC., a Delaware corporation

                                       -9-

<PAGE>

                                          By:
                                             --------------------------------
                                             Robert T. Giaimo, President

The undersigned hereby accepts the foregoing Award and the terms and conditions
hereof.

                                          --------------------------------------
                                          Name of Optionee:
                                                           ---------------------

                                        -10-

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