Document:

EXHIBIT 10.1

                FORM OF PROPRIETARY INTEREST PROTECTION AGREEMENT

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This agreement is entered into between Pitney Bowes Inc. and _____________.

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In exchange for and in consideration of my continued employment, the award of
stock options, or the provision of trade secrets and confidential information to
me by Pitney Bowes Inc., and/or its subsidiaries, divisions, affiliate
companies, successors and assigns (the "Company"), I hereby agree as follows:

I.  Assignment of Intellectual Property

Without further consideration, I will promptly disclose and assign to the
Company all right, title and interest in all intellectual property (including,
but not limited to patents, trade secrets, trademarks, copyrights, mask works,
inventions, improvements, ideas, discoveries, software and other works of
authorship), whether or not patentable or otherwise protectable, conceived,
created or made by me, either alone or with others, during the term of my
employment, and pertaining directly or indirectly to the Company's business or
any potential extension thereof. The foregoing provision regarding assignment of
right, title and interest does not apply to any intellectual property for which
no equipment, supplies, facilities or trade secret information of the Company
was used and which was developed entirely on my own time, unless (a) the
intellectual property relates (i) to the business of the Company or (ii) to the
Company's actual or demonstrably anticipated research or development or (b) the
intellectual property results from any work performed by me for the Company. The
Company, in its sole discretion, may make changes of any nature whatsoever to
such intellectual property. During the term of my employment and thereafter,
without further consideration, I will execute all papers and perform all other
acts which may be reasonably requested by the Company to vest title in the
Company to all such intellectual property; or which may be requested by the
Company to apply for, obtain, maintain, or enforce any United States or foreign
right in any such intellectual property. I understand that any application for
protection of intellectual property which I may file or which may be filed on my
behalf within one year after the termination of my employment with the Company
and which pertains directly or indirectly to work that I performed while
employed by the Company shall be presumed to be based upon or to arise out of
intellectual property that I conceived, created or made while I was employed by
the Company.

II. Confidential Information

Both during and after the termination of my employment with the Company for any
reason, I shall keep confidential, and not disclose to other persons or
entities, or use for any purpose other than as required in the course of my
employment with the Company, any and all Company Confidential Information. Trade
secrets and other Confidential Information shall include any information or
material, regardless of how it is stored or disseminated, which is not generally
known or available to the public, and which (a) is generated or collected by or
utilized in the operations of the Company and relates to the actual or
anticipated business or research or development of the Company; or (b) is
suggested by or results from any task assigned to me by the Company or work
performed by me for or on behalf of the Company. Examples of Confidential
Information include, but are not limited to, customer lists, customer
information, customer contacts, the identity of suppliers, pricing, margins,
business plans, marketing plans, financial data, business and customer strategy,
techniques, technical know-how, formulae, processes, designs, prototypes,
models, software, solutions, discussion guides, employee performance, and
research and development. The confidentiality obligations herein shall not
prevent me from revealing evidence of criminal wrongdoing to law enforcement or
prohibit me from divulging Confidential Information or trade secrets by order of
court or agency of competent jurisdiction; however, I shall promptly inform the
Company of any such situations and shall take such reasonable steps to prevent
disclosure of Confidential Information or trade secrets until Company has been
informed of such requested disclosure and the Company has had an opportunity to
respond to the court or agency. I also agree not to disclose to the Company or
use in my work at the Company any Confidential Information or trade secrets

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belonging to others,  including  without  limitation,  my prior employers or any
prior invention made by me which the Company is not otherwise  legally  entitled
to learn or use.

III. Return of Company Materials

When my employment with the Company ends for any reason, or upon the request of
the Company at any time, I agree to deliver promptly to the Company all property
of the Company or any customer of the Company, in my possession or under my
control, including but not limited to all computers or other Company owned
equipment, electronic data, notes, books, records, correspondence, drawings,
software, program discs and other materials relating to the Company's business,
products and projects, including all copies thereof.

IV. Non-Competition and Non-Solicitation

When my employment with the Company ends for any reason, I agree that for a
period of one (1) year thereafter, I shall not directly, indirectly or in
conjunction with any other person or entity:

own (other than 5% ownership in a publicly traded company), manage, operate, or
participate in the ownership, management, operation, or control of, or be
employed by any entity which is in competition with the Company, with which I
would hold a position which entirely or, in part has responsibilities similar to
any position I held with the Company during the last two (2) years of my
employment with the Company or in which I would have responsibility for and
access to Confidential Information similar or relevant to that which I had
access to during the last two (2) years of my employment with the Company;

solicit or in any capacity, provide products or services competitive with, or
similar to, products or services offered by the Company to any person, company
or entity which was a customer or prospective customer of the Company for such
products or services and with which I had direct or indirect contact regarding
those products or services at any time during the last two (2) years of my
employment with the Company or about which I learned Confidential Information
during the last two (2) years of my employment with the Company; and

solicit, entice, or contact any employee or any independent contractor of the
Company, who possesses confidential or proprietary information of the Company,
to terminate his or her relationship with the Company and/or hire any such
employee or independent contractor.

V.  Remedies

I recognize that the Company's business interests will be irreparably harmed by
any violation of this Agreement or threatened violation of this Agreement such
that the Company shall, in addition to all other available remedies, be entitled
to injunctive relief. In the event the Company shall successfully enforce any
part of this Agreement through legal proceedings, I agree to pay the Company all
costs and attorneys' fees reasonably incurred by the Company in connection
therewith.

I agree that the Company has attempted to limit my activities only to the extent
necessary to protect the Company's legitimate business interest. Should any
portion of this Agreement be determined to be unenforceable, that portion shall
be modified by a court of competent jurisdiction, or arbitrator, if my
employment is covered under the PB Resolve program, so as to permit enforcement
of the remainder of the Agreement to the fullest extent possible. Any court or
arbitrator enforcing the terms of this Agreement is specifically authorized to
modify the restrictions contained in this Agreement in order to make it
enforceable. I agree that the waiver by the Company of a breach of any provision
of this Agreement shall not operate or be construed as a waiver of any
subsequent breach by the Company. No waiver shall be valid unless in writing and
signed by an authorized officer of the Company.

V.  Miscellaneous

I agree to show this Agreement to any subsequent employer or potential employer
that I may contact during my employment with the Company or within one year
after the termination of my employment for any reason. I agree that the Company
may disclose this Agreement to any potential or actual subsequent employer of
mine.

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I understand that I have the right to have this Agreement reviewed by anyone of
my choosing, including an attorney. I also understand that this Agreement amends
any agreements between myself and the Company, covering the same subject matter
addressed in this Agreement, to the extent enforceable, and that in the event
that any provision of this Agreement shall be found by any court or arbitrator
to be unenforceable, in whole or in part, the remainder of this Agreement as
well as the provisions of my prior agreement, if any, regarding the same subject
matter as that which was found unenforceable herein shall nevertheless be
enforceable and binding on the parties. I agree that this Agreement may not be
cancelled, changed, modified or amended, except in writing by an authorized
officer of the Company or by a court of competent jurisdiction. I further agree
that this Agreement does not constitute any guarantee or assurance of continued
employment or otherwise affect my status as an "at will employee" and that the
Company, without my consent or approval, may assign this Agreement.

VI. Governing Law

This Agreement shall be governed and interpreted under the laws of the State of
Connecticut without giving effect to conflict of laws principles, except to the
extent such laws are preempted by federal law. I consent to the exclusive
jurisdiction of the courts sitting in Connecticut. Any paragraph, subparagraph
sentence or phrase of this Agreement which is contrary to the law of the State
of Connecticut and/or unenforceable shall not affect the validity or
enforceability of any other paragraph, subparagraph, sentence or phrase of this
Agreement, and the same shall be modified or deleted to conform to the
applicable laws of the State of Connecticut.

I HAVE READ THIS AGREEMENT AND UNDERSTAND AND AGREE TO ABIDE BY ITS TERMS.

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Signature of Employee                              Date of Signing

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                                       4EXHIBIT 10.2

                              PITNEY BOWES LIMITED

                                       and

                                  PATRICK KEDDY

                                SERVICE AGREEMENT

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                               TABLE OF CONTENTS
                               -----------------
CLAUSE                                                                     PAGE

1.       Interpretation                                                      1
2.       Appointment and Duration                                            3
3.       Executive's Duties                                                  3
4.       Place of Performance                                                4
5.       Salary                                                              5
6.       Bonus                                                               5
7.       Cash Incentive Units ("CIU's")                                      6
8.       Stock Options                                                       6
9.       Financial Planning Assistance                                       7
10.      Expenses                                                            7
11.      Car                                                                 7
12.      Pensions                                                            8
13.      Insurance                                                           8
14.      Medical and Sickness                                                9
15.      Holidays                                                           11
16.      Confidential Information                                           12
17.      Gratuities                                                         13
18.      Codes of Conduct                                                   13
19.      Termination of Appointment (SEE ALSO CLAUSE 2)                     13
20.      Protective Covenants                                               17
21.      Intellectual Property                                              20
22.      Reconstruction                                                     22
23.      General.                                                           22
24.      Notices                                                            22

SCHEDULES

Schedule 1                                                                  24
Schedule 2 - Power of Attorney                                              26

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 THIS AGREEMENT is made on 29th January, 2003

 BETWEEN:

 (1)     PITNEY BOWES LIMITED (registered number 182037) whose registered office
         is at The Pinnacles, Harlow, Essex, CM19 5BD, U.K. (the "Company");

 (2)     Patrick Keddy, who resides at Trevonen, The Clump, Chorleywood, Herts,
         WD3 4BD (the "Executive").

 IT IS AGREED as follows:

  1.     INTERPRETATION

 (1)     In this agreement:

         "Associated Company" means:

         (a)     a company which is not a Subsidiary of the Parent but whose
                 issued equity share capital (as defined in section 744 of the
                 Companies Act 1985) is owned as to at least 20 percent by the
                 Parent or one of its Subsidiaries; and

         (b)     a Subsidiary of a company within (a) above;

         "Group" means the Parent, its Subsidiaries and Associated Companies for
         the time being (including the Company) and "Group Company" means any
         one of them;

         "Recognized Investment Exchange" means a relevant EEA market as defined
         in, or a market established under the rules of any investment exchange
         specified in Schedule 2 to, the Financial Services Act 1986 (Investment
         Advertisements) (Exemptions) Order 1996;

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         "Board" means the Board of Directors of the Company and where
         appropriate that committee of the Board which is responsible for
         formulating policy and making decisions in relation to members of the
         Board and other senior executive employees of the Group, including the
         Executive, and which is appointed by the Board in accordance with the
         Articles of Association of the Company;

         "Subsidiary" means a subsidiary within the meaning of section 736 of
         the Companies Act 1985;

         "Parent" mean Pitney Bowes Incorporated; and

         "Working Day" means a day other than a Saturday, Sunday or bank or
         other public holiday in England.

(2)      References in this agreement to a person include a body corporate and
         an unincorporated association of persons and references to a company
         include any body corporate.

(3)      Any reference in this agreement to a statutory provision includes any
         statutory modification or re-enactment of it for the time being in
         force.

(4)      Subclauses (1) to (3) above apply unless the contrary intention
         appears.

(5)      The headings in this agreement do not affect its interpretation.

(6)      While appropriate, references to the Executive include his or her
         personal representatives.

(7)      The terms set out in Schedule 1 in accordance with the requirements of
         the Employment Rights Act 1996 form part of this agreement.

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2.       APPOINTMENT AND DURATION

(1)      The Company shall employ the Executive and the Executive shall serve
         the Company as the full time President Pitney Bowes Global Mailing
         System EAME or in such other capacity within the Group as is consistent
         with the Executive's seniority, skills and status, and as the Company
         may from time to time require, for the period and on the terms set out
         in this agreement (the "Appointment"). Before requiring the Executive
         to serve in any such other capacity the Company shall first consult the
         Executive in that regard and obtain his consent, which consent shall
         not be unreasonably withheld.

(2)      The Appointment is deemed to have taken effect on 1st September 1998.

(3)      Unless previously terminated in accordance with this agreement, the
         Appointment shall continue until terminated by either party giving to
         the other twelve (12) months' notice in writing.

(4)      The Executive's previous employment with the Company or any Group
         Company shall be treated as part of his continuous period of
         employment. Accordingly the date of the commencement of the Executive's
         continuous period of employment is 2nd May 1989.

3.       EXECUTIVE'S DUTIES

(1)      The Executive shall use his reasonable endeavours to promote and
         protect the interests of the Group and shall not do anything which is
         harmful to those interests. The Executive shall diligently and
         faithfully perform such duties and exercise such powers as may from
         time to time reasonably be assigned to or vested in him in relation to
         the conduct and management of the affairs of the Group by the Board.
         The Executive shall comply with all reasonable and proper instructions
         of the Board.

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(2)      The Board may also suspend all or any of the Executive's duties and
         powers for such periods and on such terms as it considers expedient
         including a term that the Executive shall stay away from all or any of
         the Company's premises and/or shall not be provided with any work
         and/or shall have no business contact with all or any of the Group's
         agents, employees, customers, clients, distributors and suppliers.
         During any period of suspension the Appointment shall continue and the
         Executive shall continue to be bound by his obligations under this
         agreement.

(3)      The Executive shall give to the Board such information regarding the
         affairs of the Group as it shall require.

(4)      The Executive shall (unless prevented by ill health or accident or
         otherwise directed by the Board) devote the whole of his time during
         normal business hours to the duties of the Appointment and such
         additional time as is necessary for the proper fulfillment of those
         duties.

(5)      The Executive shall not accept any appointment to any office in
         relation to any body, whether corporate or not (other than a Group
         Company), or directly or indirectly be interested in any manner in any
         other business except:

         (a)      as holder or beneficialo owner (for investment purposes only)
                  of any class of securities in a company if those securities
                  are listed or dealt in on a Recognized Investment Exchange and
                  if the Executive (together with his spouse, children, parents
                  and parents' issue) neither holds nor is beneficially
                  interested in more than five percent of the securities of that
                  class; or

         (b)      with the consent in writing of both the Company and the Parent
                  which may be given subject to any terms, which the Company or
                  the Parent requires.

4.       PLACE OF PERFORMANCE

(1)      The duties of the Appointment are primarily based in Harlow and at such
         places as the Company may from time to time require.

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(2)      The Executive may be required to travel abroad in the execution of his
         duties.

5.       SALARY

(1)      The Company shall pay to the Executive a salary at the rate of
         (pound)200,000 per annum. This salary is deemed to have taken effect on
         1st April 2002 and any salary accrued but unpaid as at the date of this
         agreement shall be paid to the Executive within 28 days of the date of
         this agreement subject to deductions for tax and National Insurance.

(2)      The Executive's salary shall be reviewed by the Board once in every
         year, the next review to be on or about 1st February 2003. The Company
         has no obligation to increase the Executive's salary and accordingly at
         the review the Board may in its absolute discretion maintain the then
         existing level of salary or increase it by an amount and subject to any
         terms as it may in its absolute discretion decide. The Company shall
         not reduce the Executive's salary without his prior written consent.

         The Executive's salary shall be payable once a month and shall be
         inclusive of any fees receivable by the Executive as a director of any
         Group Company.

6.       BONUS

         The Executive will be eligible to earn a discretionary annual incentive
         award, based on both personal and Parent Company performance, in
         accordance with the terms of the Pitney Bowes Incentive Programme,
         which may change from time to time. The target opportunity for the
         Executive's position is 40% of actual annual base salary, as at
         December 31 of the performance year. The maximum opportunity for the
         Executive's position is currently 88% of the same actual annual base
         salary. If the Executive changes position and corresponding incentive
         grid (i.e. promotion) during the year, the incentive award will be
         pro-rated accordingly. The 2002 incentive award will be paid in
         February 2003. All incentive awards are subject to the approval of the
         Board of Directors of the Parent Company.

<PAGE>

                                        6

7.       CASH INCENTIVE UNITS ("CIU'S")

         To reflect the Executive's level he shall be entitled to participate in
         the Company's CIU's arrangements. The Executive will receive 100,000
         CIU's for the 2002/2004 cycle. The rules of the 2002/2004 CIU Scheme
         will be provided to the Executive separately.

         The Executive shall not have a contractual right to receive any CIU's
         and any award is at the discretion of the Company. The Company's CIU's
         arrangements are discretionary and the Company reserves the right to
         amend or modify the nature or any element of the scheme or to suspend
         or terminate the scheme from time to time as the Company may require.

8.       STOCK OPTIONS

         Subject to the rules of the plan, the Executive shall be eligible to
         participate in the Pitney Bowes Stock Option Program in accordance with
         its terms. Recommendations usually are made on an annual basis in
         February, but the timing for recommendations depends solely on the
         discretionary power of the Board. The current grant for the Executive's
         level of seniority is 15,000 shares. In recognition of the Executive's
         promotion to the position of President Pitney Bowes Global Mailing
         System EAME the Board recommended at their September 2002 meeting that
         he shall receive a one-off grant of 10,000 shares. Subject to any
         inconsistency with the terms of this clause 8, the rules of the Pitney
         Bowes Stock Option Program have already been provided to the Executive.

         The stock options are granted solely on a discretionary basis and are
         not intended to create a right or entitlement for the Executive that
         any actual or unrealized gain related to the option will be considered
         regular compensation for severance pay purposes whether under statutory
         or common law. In addition, the Executive is not entitled to have any
         vested right to continue to receive future grants of options, nor

<PAGE>

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         shall any options granted to the Executive become a benefit or
         entitlement of employment. The plan and programs under which the option
         is granted are subject to future amendment, modification or termination
         at any time.

9.       FINANCIAL PLANNING ASSISTANCE

         The Executive will be eligible for financial counselling, with a
         maximum reimbursement of US $35,000 (grossed up for tax purposes) over
         a three year period.

10.      EXPENSES

         The Company shall reimburse the Executive (on production of such
         evidence as it may reasonably require) the amount of all travelling and
         other expenses properly and reasonably incurred in the discharge of his
         duties.

11.      CAR

(1)      The Company shall provide the Executive with a fully expensed car
         appropriate to his status, subject to any restrictions or conditions
         from time to time imposed by the Company. The Executive may use the car
         for his private purposes, to a reasonable extent.

(2)      The Company shall pay all normal servicing, insurance and running
         expenses in relation to the car, to include all incurred fuel expenses.

(3)      The Executive shall take good care of the car and shall observe the
         terms and conditions of the insurance policy relating to it.

(4)      The Executive acknowledges that the car is provided as recognition of
         his status within the organization and that on the termination of the
         Appointment the Executive shall have no further right to make use of
         it.

<PAGE>

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(5)      At the Executive's option the Executive shall be paid a car allowance
         of (pound) 12,000 per annum in lieu of a car provided by the Company
         (this amount may be subject to future changes). In such circumstances
         the Executive shall provide his own car, and subclauses (1), (2), (3)
         and (4) above shall not apply. The Company shall pay all fuel expenses,
         but any income tax liability arising will be the responsibility of the
         Executive. In the event that the Executive initially decides to take
         the car allowance but then, at a later date, wishes to be provided with
         a Company car, the Executive shall give the Company not less than two
         months' notice and the Company shall then provide him with a car in
         accordance with the terms of this clause and the Executive shall cease
         to be entitled to be paid a car allowance accordingly.

12.      PENSIONS

(1)      The Executive shall be entitled, subject to the rules of the scheme, to
         membership of the Pitney Bowes Pension Fund ("The Pension Scheme"). Due
         to the Executive's level, the earnings taking into account for the
         calculation of his pension, will be uncapped.

(2)      The Company reserves the right to amend or terminate the Pension
         Scheme, without the Executive's consent, at any time without replacing
         it; in this event the Executive's accrued rights would be provided in
         accordance with the trust deed and rules.

13.      INSURANCE

(1)      The Executive is entitled, subject to the rules of the schemes, to
         membership of the Pitney Bowes medical insurance for the Executive and
         his family through BUPA, death in service life insurance and permanent
         health insurance (PHI).

(2)      Benefits under any insurance scheme shall be subject to the rules of
         the scheme and the terms of any applicable insurance policy and are
         conditional on the Executive complying with and satisfying any
         applicable requirements of the insurer. Copies of these rules and
         policies and particulars of the requirements (when notified to the

<PAGE>

                                        9

         company) shall be provided to the Executive on request. The Company
         shall not have any liability to pay any benefit to the Executive under
         any insurance scheme unless it receives payment of the benefit from the
         insurer.

(3)      Any insurance scheme which is provided for the Executive is also
         subject to the

         Company's right to alter the cover provided or any term of the scheme
         or to cease to provide (without replacement) the scheme at any time if
         in the reasonable opinion of the Board the state of health of the
         Executive is or becomes such that the Company is unable to insure the
         benefits under the scheme at the normal premiums applicable to a person
         of the Executive's age. Wherever practicable the Board shall give the
         Executive not less than three months' notice in writing of the
         intention to cease or make any substantial alteration to the cover
         provided, so as to give the Executive a reasonable opportunity to
         purchase his own cover, should he so wish.

14.      MEDICAL AND SICKNESS

(1)      The Company may at any time require the Executive to be examined by a
         medical adviser nominated by the Company. The Executive consents to the
         medical adviser disclosing the results of the examination to the
         Company and shall provide the Company with such formal consents as may
         be necessary for this purpose.

(2)      The Basic sick pay entitlement for the Executive, will be calculated as
         follows: Length of Service

         0 - 3 months                                 NIL
         3 - 6 months                        1 week basic pay
                                             1 week half pay
         6 months - 1 year                   2 weeks basic pay
                                             2 weeks half pay
         1 years - 2 years                   4 weeks basic pay
                                             4 weeks half pay
         2 years - 3 years                   8 weeks basic pay
                                             8 weeks half pay
         3 years - 4 years                   12 weeks basic pay
                                             12 weeks half pay
         4 years - 5 years                   20 weeks basic pay
                                             20 weeks half pay
         Over 5 years                        26 weeks basic pay
                                             26 weeks half pay

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         The Executive's actual entitlement is always subject to the Company's
         approval and is calculated by deducting from the basic entitlement all
         periods of absence due to sickness, occurring during the previous 12
         months of employment. Payment is governed by the rules on Short, Medium
         and Long-term sickness.

(3)      The Executive's salary during any period of absence due to sickness or
         injury shall be inclusive of any statutory sick pay to which he is
         entitled and the Company may deduct from the Executive's salary the
         amount of any social security benefits and any benefits under any
         insurance scheme referred to in clause 13 to which he may be entitled.

(4)      If the Executive is incapable of performing his duties by reason of
         injury sustained wholly or partly as a result ofnegligence, nuisance or
         breach of any statutory duty on the part of a third party and the
         Executive recovers an amount by way of compensation for loss of
         earnings from that third party, the Executive shall pay to the Company
         a sum equal to the amount recovered or, if less, the net amount paid to
         him by the Company under subclause (2) above in respect of the relevant
         period of absence as a result of that injury, and in either case the
         Executive shall be entitled to deduct any costs incurred in recovering
         such compensation.

(5)      If the Executive is absent by reason of sickness or injury, the
         Appointment cannot be terminated under clause 19(1)(a) until the end of
         the period of paid leave referred to in (2) above and, if the
         incapacity qualifies the Executive for benefits under the insurance
         scheme referred to in clause 13(1) after a period of incapacity, until
         that period had expired provided that in either case the Executive
         complies with (1) above. If benefits under the insurance scheme are
         only available to employees, the Appointment will be continued only to
         the extent necessary to ensure that the Executive continues to be
         treated as an employee for the purposes of the scheme while the
         Executive is entitled to receive benefits under the scheme. In such

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                                       11

         circumstances, the Executive will not be entitled to any remuneration
         or other benefit from the Company during such continuance of the
         Appointment, and the Company shall have no obligation to continue the
         Appointment or provide any work or payment to the Executive if he
         recovers from the incapacity to any extent.

(6)      Payment under this clause is conditional on the Executive complying
         with the Company's rules on notification and evidence of absence.

15.      HOLIDAYS

(1)      The Company's holiday year runs from 1 January to 31 December ("Holiday
         Year"). The Executive shall be entitled to 30 Working Days' holiday
         with pay in every Holiday Year at times convenient to the Company.

(2)      Any entitlement to holiday remaining at the end of any Holiday Year of
         the Appointment shall lapse. However, if the Executive should be
         prevented from taking holiday due to work commitments, the Executive
         may carry over the accrued holidays with a maximum of 5 days. These
         transferred holidays must be taken prior to March 31st of the year
         following the accrual year.

(3)      The Company reserves the right to require the Executive to take any
         outstanding holiday during any period of notice of termination of the
         Appointment (whether given by the Company or the Executive) or to make
         a payment in lieu of that outstanding holiday.

(4)      The entitlement to holiday (and on termination of employment to pay in
         lieu of holiday) accrues pro rata throughout each Holiday Year (on the
         basis of a year of 365 days, disregarding fractions of days).

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                                       12

16.      CONFIDENTIAL INFORMATION

(1)      The Executive shall not make use of or divulge to any person, and shall
         use his best endeavours to prevent the use, publication or disclosure
         of, any information of a confidential or secret nature:

         (a)     concerning the business of the Company or any Group Company and
                 which comes to his knowledge during the course of or in
                 connection with his employment or holding any office within the
                 Group from any source within the Company or any Group Company;
                 or

         (b)     concerning the business of any person having dealings with the
                 Company or any Group Company and which is obtained directly or
                 indirectly in circumstances in which the Company or any Group
                 Company is subject to a duty of confidentiality in relation to
                 that information.

         For the purposes of paragraph (a) above, information of a confidential
         or secret nature includes but is not limited to customer information,
         business, financial and marketing information, including strategic
         plans, marketing plans, customer lists, prospects lists and pricing
         information.

(2)      This clause shall not apply to information which:

         (a)     is used or disclosed in the proper performance of the
                 Executive's duties or with the prior written consent of the
                 Company and the Parent; or

         (b)     is or comes to be in the public domain (except as a result of a
                 breach of the Executive's obligations under subclause (1)); or

         (c)     is ordered to be disclosed by a court of competent jurisdiction
                 or otherwise required to be disclosed by law.

(3)      This clause shall continue to apply after the termination of the
         Appointment (whether terminated lawfully or not) without limit of time.

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                                       13

(4)      Each of the restrictions in each paragraph or subclause above shall be
         enforceable independently of each of the other and its validity shall
         not be affected if any of the others is invalid. If any of these
         restrictions is void but would be valid if some part of the restriction
         were deleted, the restriction in question shall apply with such
         modification as may be necessary to make it valid.

17.      GRATUITIES

         The Executive Shall abide by the "Pitney Bowes Business Practice
         Guidelines" (which may be expected to change from time to time) and
         shall not directly or indirectly accept any benefit (including, without
         limitation, commission, rebate, discount or gratuity, in cash or in
         kind), from any person who has or is likely to have a business
         relationship with any Group Company.

18.      CODES OF CONDUCT

         The Executive shall comply with all codes of conduct, including but not
         limited to the "Pitney Bowes Business Practice Guidelines" and with all
         applicable rules and regulations of the New York Stock Exchange and any
         other relevant regulatory body including (without limitation) the Stock
         Exchange's model code on directors' dealing in securities.

19.      TERMINATION OF APPOINTMENT (SEE ALSO CLAUSE 2)

(1)      If the Executive:

         (a)     in the reasonable opinion of the Board fails or neglects
                 efficiently and diligently to discharge his duties to a
                 material extent or is guilty of any serious or repeated breach
                 of his obligations under this agreement, provided always that,
                 save in respect of serious misconduct on the part of the
                 Executive, the Executive shall have been given at least one
                 written warning from the Vice President Human Resources Pitney
                 Bowes Global Mailing Systems (of such

<PAGE>

                                             14

         failure, neglect or breach as the case may be) and shall have been
         given a proper opportunity to improve and/or (if capable of remedy) to
         remedy the matter in a manner appropriate to the circumstances then
         prevailing; or

         (b)     is guilty of serious misconduct or any other conduct which
                 substantially and prejudicially affects or in the reasonable
                 opinion of the Board is likely to affect substantially and
                 prejudicially the interests of the Company or the Group or is
                 convicted of an arrestable offence (other than a road traffic
                 offence for which a non-custodial penalty is imposed); or

         (c)     becomes bankrupt or makes any arrangement or composition with
                 his creditors; or

         (d)     is disqualified from being a director of any company by reason
                 of an order made by any competent court; or

         (e)     resigns as a director without the prior consent of the Board;
                 or

         (f)     is guilty of any material breach or non-observance of any code
                 of conduct, rule or regulation referred to in clause 18,

         the Company may (whether or not any notice of termination has been
         given under clause 2(3)) by written notice to the Executive terminate
         the Appointment with immediate effect but the Appointment may continue
         to the extent provided in clause 14(5).

(2)      The Company may at any time (whether or not any notice of termination
         has been given under clause 2(3)) terminate the Appointment with
         immediate effect by giving notice in writing to the Executive on terms
         that the Company shall pay to the Executive, in lieu of notice under
         clause 2(3), the salary in the amount and at the times it would have
         paid to the Executive if the Company had given notice to terminate the
         Appointment in accordance with clause 2(3) or, if notice has previously
         been given under that subclause, as if the Appointment terminated on
         the expiry of the remainder of the period of notice. If the Executive
         is paid salary in lieu of notice he shall be eligible to earn a
         discretionary annual incentive, as mentioned under clause 6, which will
         be added to the payment in lieu of notice. This bonus amount will be
         prorated up until the time of termination. The Executive will only be
         eligible to earn this

<PAGE>

                                            15

         discretionary incentive in accordance with the rules of the Pitney
         Bowes Incentive Scheme. If the Executive is paid salary in lieu of
         notice he shall not be entitled to any additional payment in respect of
         holiday which he would otherwise have accrued during the notice period
         or the remainder of the notice period.

(3)      The Company shall have the right to suspend any of the Executive's
         duties and powers under clause 3(2) during any period after notice of
         termination of the Appointment has been given by the Company or the
         Executive. In particular the Company may exercise this right where the
         Executive is to leave the Company's employment in circumstances where
         it is reasonable for the Company to believe that the Executive is or is
         about to become concerned in a business (within the meaning of clause
         20(2)), carried on, or about to commence, which is, or is likey to be,
         competitive with any part of the business of any Group Company with
         which the Executive was engaged or concerned in the 12 months before
         the suspension started. In addition or alternatively, the Company may
         during the whole or any part of such period of notice require the
         Executive to perform duties (including any modified duties arising from
         any reasonable exercise by the Company of its rights under clause 3(2))
         at such locations as the Company may reasonably require consistent with
         clause 4. Throughout any such period of suspension the Executive's
         salary and other benefits to which he is entitled under this agreement
         shall continue to be paid by the Company. At any time during such
         period the Executive shall, at the request of the Board, immediately
         resign his office as a director of the Company and any directorship or
         other office held by him in any Group Company, without prejudice to the
         parties' respective rights and obligations under this agreement.

(4)      On the termination of the Appointment in any way or either party giving
         notice to terminate the Appointment or the Company exercising its right
         of suspension as mentioned in subclause (3), upon receipt of a written
         request by the Board to do so the Executive shall immediately:

<PAGE>

                                       16

         (a)     resign all offices held by him in any Group Company (without
                 prejudice to the rights of any party arising out of this
                 agreement or the termination of the Appointment);

         (b)     deliver to the Company all other property in his possession,
                 custody or under his control belonging to any Group Company
                 including (but not limited to) business cards, credit and
                 charge cards, security and computer passes, original and copy
                 documents or other media on which information is held in his
                 possession relating to the business or affairs of any Group
                 Company; and

         (c)     transfer (without payment) to the Company (or as the Company
                 may direct) any qualifying or nominee shares provided by it or
                 any third party in any Group Company to him.

(5)      The Executive shall at the time of executing this agreement appoint the
         Company as his attorney by executing a power of attorney in the form
         set out in Schedule 2 to do and sign in his name and on his behalf any
         thing and document as may be required to make his resignation
         effective.

(6)      With effect from the date of termination of the Appointment, all the
         rights and obligations of the parties under this agreement shall cease
         except for those which are expressed to continue after that date and
         except in relation to any breach of any provision of this agreement
         before that date. Termination of the Appointment shall not prejudice
         any other rights of either party.

(7)      If any person shall during the Appointment or during the period in
         which any of the restrictions in this clause operate after the
         Termination Date make to the Executive any offer of employment or of a
         contract for services or of consultancy or any other contract which
         would or might involve the Executive in being in breach of any of those
         restrictions, the Executive shall bring to the attention of that person
         the terms of this clause.

<PAGE>

                                       17

(8)If    during the Appointment the Executive is granted participation in a
         share option or share incentive scheme, any extinction or curtailment
         of any rights or benefits under the scheme by reason of any transfer of
         his employment or its termination, howsoever arising, shall not form
         part of any claim for damages for breach of this agreement or
         compensation under any statutory provision. The effect of any such
         transfer, suspension or termination on the Executive's rights or
         benefits under the scheme shall be determined in accordance with the
         rules, terms and conditions of the scheme and not in accordance with
         the provisions (other than this subclause) of this agreement.

20.      PROTECTIVE COVENANTS

(1)      In this clause:

         (a)     "Relevant Period" means the 12 months ending on the Termination
                 Date;

         (b)     "Relevant Area" means any part of any country in which the
                 Executive was actively involved in the business of the Company
                 or another Group Company at any time during the Relevant
                 Period;

         (c)     "Termination Date" means the date on which the Appointment
                 terminates;

         (d)     references to the Company or another Group Company include its
                 successors in business if the succession occurs after the
                 Termination Date.

(2)      The Executive covenants with the Company that he will not for a period
         of 12 months after the Termination Date be concerned in any business
         which is carried on in the Relevant Area and which is competitive or
         likely to be competitive with any business in which the Executive was
         actively involved during the course of his employment during the
         Relevant Period and which is carried on by the Company or another Group
         Company at the Termination Date. For this purpose, the Executive is
         concerned in a business if he:

         (i) carries it on as principal or agent; or

<PAGE>

                                       18

         (ii)    is a partner, director, employee, secondee, consultant or agent
                 in, of or to any person who carries on the business; or

         (iii)   has any direct or indirect financial interest (as shareholder
                 or otherwise) in any person who carries on the business; or

         (iv)    is a partner, director, employee, secondee, consultant or agent
                 in, of or to any person who has a direct or indirect financial
                 interest (as shareholder or otherwise) in any person who
                 carries on the business,

         disregarding any financial interest of a person in securities which are
         listed or dealt in on any Recognized Investment Exchange if that
         person, the Executive and any person connected with him (within the
         meaning of section 839 of the Income and Corporation Taxes Act 1988)
         are interested in securities which amount to less than five percent of
         the issued securities of that class and which, in all circumstances,
         carry less than five percent of the voting rights (if any) attaching to
         the issued securities of that class.

         If the Company exercises its right to suspend the Executive's duties
         and powers for a period of up to 12 months under clause 3(2) of this
         Agreement during any period after notice of termination of the
         Appointment has been given by the Company or the Executive, the
         aggregate of the period of the suspension and the period after the
         Termination Date for which the covenant in this subclause shall apply
         shall not exceed 12 months and, if the aggregate of the two periods
         would exceed 12 months, the period after the Termination Date for which
         the covenant in this subclause shall apply shall be reduced
         accordingly.

(3)      The Executive covenants with the Company that he shall not directly or
         indirectly on his own account or on behalf of or in conjunction with
         any person for a period of 12 months after the Termination Date (except
         on behalf of the Company or another Group Company):

         (i)     Canvass or solicit business or custom for goods of similar type
                 to those being manufactured or dealt in or services similar to
                 those being provided by the

<PAGE>

                                       19

                 Company or another Group Company at the Termination Date, and
                 with which goods or services the Executive was actively
                 involved in the course of his employment during the Relevant
                 Period, from any person who has been at any time during
                 Relevant Period a customer/client of the Company or another
                 Group Company with whom the Executive was actively involved in
                 the course of his employment during Relevant Period and; or

         (ii)    deal with any such person.

(4)      The Executive covenants with the Company that he shall not directly or
         indirectly on his own account or on behalf of or in conjunction with
         any person for a period of 12 months after the Termination Date induce
         or attempt to induce any supplier of the Company or another Group
         Company, distributor of the Company's or another Group Company's
         products with whom the Executive was actively involved in the course of
         his employment during the Relevant Period, to cease to supply, or to
         restrict or vary the terms of supply to, the Company or another Group
         Company or to cease to distribute any of the Company's or other Group
         Company's products or restrict or vary the terms of the distributorship
         or otherwise interfere with the relationship between such a supplier or
         distributor and the Company or another Group Company.

(5)      The Executive covenants with the Company that he shall not directly or
         indirectly on his own account or on behalf of or in conjunction with
         any person for a period of 12 months after the Termination Date induce
         or attempt to induce any employee to whom this subclause applies to
         leave the employment of the Company or another Group Company (whether
         or not this would be a breach of contract by the employee). This
         subclause applies to an employee of the Company or any another Group
         Company with whom the Executive had material dealings in the course of
         his employment during the Relevant Period and who is employed wholly or
         mainly in a senior professional capacity.

(6)      The covenants in this clause are for the benefit of the Company itself
         and as trustee for each other Group Company.

<PAGE>

                                       20

(7)      Each of the restrictions in each paragraph or subclause above shall be
         enforceable independently of each of the others and its validity shall
         not be affected if any of the others are invalid. If any of those
         restrictions is void but would be valid if some part of the restriction
         (including part of any of the definitions in subclause (1)) were
         deleted, the restriction in question shall apply with such modification
         as may be necessary to make it valid.

(8)      The Executive acknowledges that his senior position with the Company
         and the Group gives him access to and the benefit of confidential
         information vital to the continuing business of the Company and the
         Group and influence over and connection with the Company's customers,
         suppliers, distributors, agents, employees and directors and those of
         the Group in or with which the Executive is engaged or in contact and
         acknowledges and agrees that the provisions of this clause are
         reasonable in their application to him and necessary but no more than
         sufficient to protect the interests of the Company and the Group.

(9)      If any person, during the Appointment or any period during which the
         covenants in this clause apply, offers to the Executive any contract
         which might or would cause the Executive to breach any of the
         covenants, the Executive will notify that person of the terms of this
         clause.

21.      INTELLECTUAL PROPERTY

         (1)     In this clause "Intellectual Property Right" means a formula,
                 process, invention, utility model, trade mark, service mark,
                 business name, copyright, design right, patent, know-how, trade
                 secret and any other intellectual property right of any nature
                 whatsoever throughout the world (whether registered or
                 unregistered and including all applications and rights to apply
                 for the same) which:

         (a)     relates to or is useful in connection with the business or any
                 product or service of a Group Company; or

<PAGE>

                                            21

         (b)     is invented, developed, created or acquired by the Executive
                 (whether alone or jointly with any other person) during the
                 course of his duties during the period of the Appointment.

(2)      Subject to the provisions of the Patents Act 1977, the entire interest
         of the Executive in any Intellectual Property Right described in clause
         21(1)(b) shall, as between the Executive and the Company, become the
         property of the Company as absolute beneficial owner without any
         payment to the Executive for it.

(3)      The Executive shall promptly communicate in confidence to the Company
         full particulars of any Intellectual Property Right (whether or not it
         is vested in the Company pursuant to subclause (2) above or otherwise)
         and the Executive shall not use, disclose to any person or exploit any
         Intellectual Property Right belonging to the Company without the prior
         written consent of the Company.

(4)      The Executive shall, at the request and expense of the Company, prepare
         and execute such instruments and do such other acts and things as may
         be necessary or desirable to enable the Company or its nominee to
         obtain and maintain protection of any Intellectual Property Right
         vested in the Company in such parts of the world as may be specified by
         the Company or its nominee and to enable the Company to exploit any
         Intellectual Property Right vested in the Company to best advantage.

(5)      The Executive hereby irrevocably appoints the Company to be his
         attorney in his name and on his behalf to sign, execute or do any
         instrument or thing and generally to use his name for the purpose of
         giving to the Company or its nominee the full benefit of the provisions
         of this clause and in favour of any third party a certificate in
         writing signed by any director or the secretary of the Company that any
         instrument or act falls within the authority conferred by this clause
         shall be conclusive evidence that such is the case.

(6)      The obligations of the Executive under this clause shall continue to
         apply after the termination of the Appointment. Each of those
         obligations is enforceable

<PAGE>

                                       22

         independently of each of the others and its validity shall not be
         affected if any of the others is unenforceable to any extent.

22.      RECONSTRUCTION

         If the Company is to be wound up for the purpose of a reconstruction or
         amalgamation or the Company transfers all or a substantial part of its
         business to another company and the Company procures that the Executive
         is offered employment by the reconstructed or amalgamated or transferee
         company on comparable and no less favourable terms to the terms of this
         agreement for the remainder of the Appointment, the Executive shall
         have no claim against the Company in respect of the termination of his
         employment under this agreement.

23.      GENERAL

(1)      As from the effective date of the Appointment all other agreements or
         arrangements between the Executive and any Group Company relating to
         the employment of the Executive shall cease to have effect.
         Accordingly, any remuneration or other benefit paid or provided to or
         for the Executive under any such other agreements or arrangements in
         respect of any periods since that date shall be deemed to have been
         received by the Executive on account of the relevant amounts payable or
         benefits to be provided to or for him under this agreement.

(2)      This agreement shall be governed by and construed in accordance with
         English law.

24.      NOTICES

(1)      Any notice or other document to be served under this agreement may, in
         the case of the Company, be delivered or sent by first class post or
         facsimile process to the Company at its registered office for the time
         being and, in the case of the Executive, may be delivered to him or
         sent by first class post to his usual or last known place of residence.

<PAGE>

                                       23

(2)      Any such notice or other document shall be deemed to have been served:

         (a)     if delivered, at the time of delivery;

         (b)     if posted, at 10:00 a.m. on the second Working Day after it was
                 put into the post; or

         (c)     if sent by telex or facsimile process, at the expiration of two
                 hours after the time of dispatch, if dispatched before 3:00
                 p.m. on any Working Day, and in any other case at 10:00 a.m. on
                 the Working Day following the date of dispatch.

(3)      In proving such service it shall be sufficient to prove that delivery
         was made or that the envelope containing such notice or other document
         was properly addressed and posted as a pre-paid first class letter or
         that the facsimile message was properly addressed and dispatched as the
         case may be.

AS WITNESS the hands of the Executive and of the duly authorized representatives
of the Company on the date, which appears first on page 1.

<PAGE>

                                       24

                                   SCHEDULE 1

The following constitutes the statement of the particulars of the Executive's
employment issued pursuant to the Employment Rights Act 1996. The particulars
are those which apply on the date of this agreement:

Name of employer - The Company as defined on page 1 above.

Name of employee - Patrick Keddy

Date of commencement of employment - See clause 2(2).

Date of commencement of continuous period of employment - the Executive's
previous employment with the Company shall be treated as part of his continuous
period of employment. Accordingly the date of commencement of the Executive's
continuous period of employment is 2nd May 1989.

Remuneration - See clause 5(1).

Intervals at which remuneration is paid - monthly - see clause 5(2).

Hours of work - There are no fixed hours of work. The Executive agrees that
Regulation 4(1) and (2), 6(1), (2) and (7), 10(1), 11(1) and (2) and 12(1) of
the Working Time Regulations 1998 (48-hour week, night work, rest periods etc)
do not apply to the Appointment.

Holidays (including public holidays) and holiday pay - See clause 15. There are
no specific rules which apply regarding the giving of notice by the Executive or
the Company in respect of holidays, other than the observance of good management
practice regarding advance notification.

Sickness or injury and sick pay - See clause 14.

Pension - See clause 12. A contracting-out certificate within the meaning of
Part III of the Pension Schemes Act 1993 is in force.

Notice - See clauses 2(3) and 24.

Job title - President Pitney Bowes Global Mailing System EAME

Place of work - See clause 4. The employer's address is as stated on page 1
above.

Collective agreements - The Company is not a party to any collective agreement,
which affects the Executive's employment.

Working overseas - The Executive may be required to work overseas for periods
exceeding one month but there are currently no particulars to be entered in this
regard.

<PAGE>

                                       25

Grievance procedure- If the Executive is dissatisfied with any disciplinary
decision or seeks to redress any grievance relating to his employment, he or she
should raise this in the first instance with the Vice President Human Resources
Pitney Bowes Global Mailing Systems. If the matter is not satisfactorily
resolved, the Executive should then apply in writing to the person to whom the
Executive Vice President and Group President Pitney Bowes Global Mailing System
reports and the latter shall endeavour to propose a solution within 14 days.

<PAGE>

                                       26

                                   SCHEDULE 2

                                Power of Attorney

By this Power of Attorney made on February 3rd, 2003, I Patrick Keddy of Pitney
Bowes in accordance with the terms of my service agreement (the "Service
Agreement") with Pitney Bowes (the "Company") dated today HEREBY APPOINT the
Company to act as my attorney with authority in my name and on my behalf (so
that words and expressions defined in the Service Agreement shall have the same
meaning herein):

(a)      on or after the Appointment has terminated to do any thing and sign any
         document as may be required under the constitution of the Company and
         each Group Company to make my resignation as a director from those
         companies effective; and

(b)      to appoint any substitute and to delegate to that substitute all or any
         powers conferred by this Power of Attorney.

I declare that this Power of Attorney, having been given by me to secure my
obligations under clause 19 and clause 21 of the Service Agreement, shall be
irrevocable in accordance with section 4 of the Powers of Attorney Act 1971.

IN WITNESS whereof this Power of Attorney has been duly executed.

EXECUTED as a deed by /s/ P.J. Keddy in the presence of:

Witness:

Signature: /s/ D. R. Denney

Name:    D.R. Denney

Address: 2 Woodside, Longstanton, Cambridge, CB4 5BN

<PAGE>

                                       27

SIGNED by Murray Martin                     Signature: /s/ Murray Martin
On behalf of Pitney Bowes Limited           Name: Murray Martin

SIGNED by Howard Johnson                    Signature: /s/ Howard Johnson
On behalf of Pitney Bowes Limited           Name: Howard C. Johnson

SIGNED by Patrick Keddy                     Signature: /s/ P.J. Keddy

in the presence of                          Name: D.R. Denney
                                            Signature: /s/ D.R. Denney

                                            Address: 2 Woodside, Longstanton,
                                            Cambridge CB4 5BN

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