Document:

Exhibit 10.1

UROLOGIX, INC.

14405 21st Avenue North

Minneapolis, MN 55447

 

November 20, 2012

Mr. Stryker Warren, Jr.

14405 21st Avenue North

Minneapolis, MN 55447

 

Dear Stryker:

This letter outlines our agreement regarding
a change in your role with Urologix, Inc. (“Urologix”) and the termination of your employment with Urologix effective
March 29, 2013 (the “Termination Date”).

1.                  
You are resigning as Chief Executive Officer and a director as of November 30, 2012. 

2.                  
Beginning December 1, 2012 and until the Termination Date, you will provide Urologix with
certain advisory and transition services with respect to matters or transactions of Urologix of which you have knowledge. You will
fulfill these responsibilities under the direction and control of the Interim Chief Executive Officer or the Chief Executive Officer,
as the case may be. You will continue to be an active employee of Urologix through the Termination Date with all the benefits provided
in connection with full-time employment, except that you will not accrue any vacation after November 30, 2012 and as otherwise
provided in this agreement. Beginning December 1, 2012, you will not be entitled to participate in any bonus or other incentive
plan nor will you be eligible to receive stock options or other equity-based compensation. Following the Termination Date, you
agree to provide such consulting services as Urologix may reasonably request and in respect of such services, you shall be paid
a rate of $1,000 per eight hour day, prorated for any partial days of service.

3.                  
The letter agreement dated April 23, 2012 between you and Urologix will become null and void
and will be fully superseded by this letter beginning November 30, 2012. Your obligations under that certain Agreement Regarding
Employment, Inventions, Confidential Information and Non-Competition (the “Non-Compete Agreement”) shall continue as
provided therein.

 

    	- 1 -

    	 

    

 

4.                  
With the first payroll following January 1, 2013, you will receive a single
lump-sum payment equal to any paid time off that is accrued and unused at November 30, 2012. 

5.                  
After the Termination Date, you may continue health and certain other insurance coverage,
according to state and federal law, beginning April 1, 2013. You will receive a notice detailing your rights to continue insurance
coverage under COBRA. Should you elect to continue that coverage, Urologix will continue to pay the employer’s portion of
the group insurance premiums until the first to occur of: (i) November 30, 2013, (ii) the first day you start employment that provides
health insurance coverage, or (iii) until your COBRA eligibility expires. You will be responsible for the payment of the full amount
your premiums thereafter, as long as you remain eligible under COBRA. 

6.                  
Your vested options as of the Termination Date shall continue to be exercisable after the
Termination Date until the earlier of (i) November 30, 2014; or (ii) the expiration date of such options. 

7.                  
Urologix agrees that it will not, directly or indirectly, make any derogatory comments to
any person or entity about you. 

In consideration for the benefits outlined
above, you agree to the following:

A.                 
You hereby release, agree not to sue and forever discharge Urologix, its past and present
affiliates, officers, directors, agents, shareholders, employees, insurers, indemnitors, successors or assigns (collectively, the
“Releasees”) from any and all claims and causes of action, known or unknown, which you may have against any and all
of them. Through this release, you extinguish all causes of action against the Releasees occurring up to the date on which you
sign this agreement including, but not limited to, any contract, commission, wage or benefit claims; intentional infliction of
emotional distress, defamation or any other tort claims; and all claims arising from any federal, state or municipal law or ordinance,
including the Employee Retirement Income Security Act and the Family Medical Leave Act. This release extinguishes any potential
claims of discrimination arising from your employment with Urologix and termination of that relationship, including specifically
any claims under the Minnesota Human Rights Act, the Americans With Disabilities Act, Title VII of the Civil Rights Act of 1964,
the Older Workers Benefit Protection Act and the Age Discrimination in Employment Act. This release does not extinguish any claims
which arise against any Releasee after you sign this agreement and does not extinguish any claims for payments required under this
agreement. You certify that you (a) have not filed any claims, complaints or other actions against any Releasee; and (b) are hereby
waiving any right to recover from any Releasee under any lawsuit or charge filed by you or any federal, state or local agency on
your behalf based upon any event occurring up to the date on which you sign this agreement. You are advised by Urologix to review
your rights and responsibilities under this agreement with your own lawyer.

B.                 
On your last day of employment with Urologix, for no additional consideration provided to
you other than the benefits provided herein, you will execute and deliver to Urologix a further release of claims in the form of
Exhibit A attached hereto.

 

    	- 2 -

    	 

    

 

C.                 
You have 21 days to review and consider this agreement. If you sign this agreement before
21 days have elapsed from the date on which you first receive it, then you will be voluntarily waiving your right to the full 21-day
review period. 

D.                 
After signing this agreement, you have the right to rescind the release insofar as it extends
to your release of claims under the Age Discrimination in Employment Act and the Minnesota Human Rights Act within 15 calendar
days of the date upon which you sign this agreement. You understand that if you desire to rescind the release as provided above,
you must put the rescission in writing and deliver it to Urologix, Inc., Attn: Chief Financial Officer, 14405 Twenty-First Avenue
North, Minneapolis, MN 55447, by hand or by mail, within the required period. If you deliver the rescission by mail, it must be
postmarked within the required period, properly addressed to the Chief Financial Officer and sent by certified mail, return receipt
requested. If you effectively exercise this rescission right, Urologix may, at its option, either nullify this agreement or keep
it in effect in all respects other than as to your release of claims that you have rescinded. If Urologix chooses to nullify this
agreement, neither you nor Urologix will have any further obligation to the other under this agreement. 

E.                  
You certify that you have returned or will return by December 3, 2012 all of Urologix’
property in your possession, except that you may keep certain agreed-upon Urologix computer equipment.

F.                  
You agree that you will not, directly or indirectly, make any derogatory comments to any person
or entity about Urologix, its past and present affiliates, officers, directors, agents, shareholders and employees, or in any way
interfere with or attempt to damage any of Urologix’ business or employment relationships. 

G.                 
You agree to abide by the terms and conditions of the Non-Compete Agreement and agree that
Urologix may, in addition to other remedies provided under the Non-Compete Agreement, withhold payments due to you under this agreement
for violation of the Non-Compete Agreement. You also agree that the benefits provided under this agreement provide further and
sufficient consideration for your obligations under the Non-Compete Agreement.

This agreement and offer of benefits
to you shall not in any way be construed as an admission of liability by Urologix or as an admission that Urologix has acted wrongfully
with respect to you. Urologix specifically denies and disclaims any such liability or wrongful acts.

In the event that any provision of this
agreement is found to be illegal or unenforceable, such provision will be severed or modified to the extent necessary to make it
enforceable and, as so severed or modified, the remainder of this agreement shall remain in full force and effect. This agreement
shall be binding upon the successors and assigns of Urologix, whether pursuant to merger, exchange or sale of all or substantially
all of the assets of Urologix and such successor shall assume Urologix’ obligations hereunder.

By signing this agreement, you agree
that you have entered into it voluntarily, without coercion, duress or reliance on any representations by any Urologix employee,
agent or lawyer.

[signatures next page]

 

    	- 3 -

    	 

    

If this letter accurately reflects our
understanding and agreement, please sign the original and copy and return the original to me. The copy is for your file.

Sincerely,

UROLOGIX, INC.

 

	/s/  Patrick D. Spangler	 	 
	By: 	Patrick D. Spangler	 	 
	 	Member of the Compensation Committee	 	 

 

I have read and understand and agree to the terms and conditions
set forth above and have signed this letter agreement dated November 20, 2012 freely, voluntarily and with full knowledge and understanding
of its meaning.

 

 

	/s/  Stryker Warren, Jr.	 	Dated: November 20, 2012
	Stryker Warren, Jr.	 	 

 

 

 

 

 

 

 

 

    	- 4 -

    	 

    

EXHIBIT A

TO

LETTER AGREEMENT

 

______________________, 2013

 

Urologix, Inc.

Attn: Chief Financial Officer

14405 Twenty-First Avenue North

Minneapolis, MN 55447

Ladies and Gentlemen:

I, the
undersigned, in consideration of the benefits provided in that letter agreement from Urologix, Inc. (“Urologix”) to
me dated November 20, 2012 (the “Agreement”), hereby release, agree not to sue, and forever discharge Urologix, ,
its past and present affiliates, officers, directors, agents, shareholders, employees, insurers, indemnitors, successors or assigns
(collectively the “Releasees”), from any and all manner of
claims, demands, actions, causes of action, administrative claims, liability, damages, claims for punitive or liquidated damages,
claims for attorneys’ fees, costs and disbursements, individual or class action claims, or demands of any kind whatsoever,
I have or might have against them or any of them, whether known or unknown, in law or equity, contract or tort, arising out of
or in connection with my employment with Urologix, or the separation of that employment, or otherwise, and however originating
or existing, from November 30, 2012 through the date of this release.

 

This release includes any claims I may have for wages, bonuses,
deferred compensation, vacation pay, separation pay and/or benefits, defamation, improper discharge (based on contract, common
law, or statute, including any federal, state or local statute or ordinance prohibiting discrimination or retaliation in employment),
the Minnesota Human Rights Act, Title VII of the Civil Rights Act of 1964 as amended, the Americans with Disabilities Act, the
Older Workers Benefit Protection Act and the Age Discrimination in Employment Act, and any claim for discrimination or retaliation
based on a protected class under state or federal law. I hereby waive any and all relief not provided for in this release.

 

I affirm that I have not caused or permitted, and to the full extent
permitted by law will not cause or permit to be filed (to the extent that I am able to control such filing), any charge, complaint,
or action of any nature or type against the Releasees, including but not limited to any action or proceeding raising claims arising
in tort or contract, or any claims arising under federal, state or local laws, including discrimination law.

 

I understand that I may rescind this release within seven (7) calendar
days after signing it to reinstate claims under the Age Discrimination in Employment Act and fifteen (15) calendar days after signing
it to reinstate claims arising under the Minnesota Human Rights Act. In order to be effective, the rescission must (a) be in writing;
and (b) delivered to Urologix, Inc., Attn: Chief Financial Officer, 14405 Twenty-First Avenue North, Minneapolis, MN 55447, by
hand or by mail, within the required period; and (c) if delivered by mail, the rescission must be postmarked within the required
period, properly addressed to the Chief Financial Officer and sent by certified mail, return receipt requested. I understand that
any rescission of this release shall not rescind or otherwise affect the release of claims contained in the Agreement and shall
only reinstate claims as provided above arising from and after the date of the Agreement to the date of this release. This release
will be effective upon the expiration of the required period without rescission. I understand that if I rescind this release or
the Agreement I will not continue to receive the benefits described in the Agreement.

 

 

Very truly yours,

Stryker Warren, Jr.

 

    	A-1Exhibit 4.1

EXECUTION VERSION

PITNEY BOWES INC.

OFFICERS’ CERTIFICATE

November 27, 2012

The
undersigned officers of Pitney Bowes Inc., a Delaware corporation (the “Company”), each hereby certifies in
his or her respective capacity, on behalf of the Company pursuant to the Indenture, dated as of February 14, 2005, between the
Company and Citibank, N.A., as trustee (the “Base Indenture”), as amended by the First Supplemental Indenture, dated
as of October 23, 2007, by and among the Company, The Bank of New York Mellon, as successor trustee (the “Trustee”),
and Citibank, N.A., as resigning trustee (the “First Supplemental Indenture”, and together with the Base Indenture,
the “Indenture”), as follows:

(1)              
Each of the undersigned has read and is familiar with the Indenture, including the provisions in Sections 2.01, 2.03
and 2.04, and is familiar with the resolutions adopted by the Board of Directors, and corporate proceedings taken by the Company,
in connection with the issuance of $100,000,000 aggregate principal amount of the Company’s 5.25% Notes due November 27,
2022 (the “Notes”) under the Indenture;

(2)              
Each of the undersigned has examined such documents, certificates, orders and proceedings and made such investigations
as the undersigned deemed necessary or appropriate in order to give this Officers’ Certificate;

(3)              
In the opinion of each of the undersigned, the examinations and investigations described in the preceding paragraph are
sufficient to enable him or her to express an informed opinion as to whether all conditions precedent provided for in the Indenture
with respect to the authentication and delivery by the Trustee of the Notes have been complied with;

(4)              
In the opinion of each of the undersigned, all conditions precedent provided for in the Indenture with respect to the authentication
and delivery by the Trustee of the Notes have been complied with; and

(5)              
The Notes shall have the terms set forth in the form of Note attached hereto as Exhibit A and in the Company’s
Prospectus dated September 22, 2011 as supplemented by the Prospectus Supplement dated November
19, 2012 and filed with the Securities and Exchange Commission on November 20, 2012 (as so supplemented, the “Prospectus”),
which terms shall include the following:

(a)               
The series of debt securities of which the Notes are a part hereby shall be designated as “5.25% Notes Due
2022”;

(b)              
The aggregate principal amount of Notes that may be authenticated and delivered
under the Indenture shall be $100,000,000, except as provided in Section 2.03
of the Indenture;

(c)               
The Notes will be offered for sale to the public at 100.0% of the aggregate principal amount, plus any accrued interest
from November 27, 2012;

(d)              
The Notes mature on November 27, 2022;

(e)               
Each Note will bear interest from November 27, 2012, at a rate equal to 5.25%
per annum, and will pay such interest on February 27, May 27, August 27 and November 27, commencing on February 27, 2013 to the
person in whose name such Note was registered at the close of business on the February 12, May 12, August 12 or November 12, whether
or not a business day, prior to the applicable interest payment date;

(f)               
The principal of, Make-Whole Amount, if any, and interest on the Notes will
be payable in accordance with the terms, and at the place or places, set forth or contemplated in the form of Note attached
hereto as Exhibit A;

(g)              
The Notes will be redeemable in whole or in part prior to maturity in accordance with the terms set forth or contemplated
in the form of Note attached hereto as Exhibit A;

(h)              
If certain change of control triggering events occur, the Notes will require the Company to make an offer to each
holder of Notes to repurchase all or any part of such Holder’s notes for cash, in accordance with the terms set forth or
contemplated in the form of Note attached hereto as Exhibit A.

(i)                
In addition to the covenants set forth in the Indenture, the Notes shall be subject to the covenants set forth in
Exhibit B attached hereto;

(j)                
If an Event of Default with respect to the Notes shall occur and be continuing,
the principal of the Notes may be declared due and payable in the manner and with the effect provided in the Indenture.
Upon payment of (i) the amount of principal so declared due and payable and (ii) interest on any overdue principal, premium and
interest (in each case to the extent that the payment of such interest shall be legally enforceable),
all of the Company’s obligations in respect of the payment of the principal of and premium and interest, if any, on
the Notes shall terminate;

(k)              
The Notes will not be subject to a sinking fund;

(l)                
The Notes will be issued in minimum denominations of $25.00 and integral multiples in excess thereof;

(m)            
The Notes will not be convertible into other securities of the Company;

(n)              
The provisions of Section 10.01(b) of the Base Indenture relating to covenant defeasance shall apply to the Notes.
Pursuant to Section 10.01(b)(iii)(C) of the Base Indenture, it shall be a condition to such
defeasance that the Company’s deposit in connection with such defeasance shall not result in a breach or violation of, or
constitute a default under, the Indenture with respect to the series of debt securities of which the Notes are a part;

(o)              
The Notes will be issued in permanent global form. The Notes will be deposited with The Depository Trust Company
and the Notes will be registered in the name of Cede & Co.;

(p)              
The Company may, from time to time, without the consent of the holders
of any Notes, reopen the series of debt securities of which the Notes are a part and issue additional debt securities with the
same terms (including maturity and interest payment terms) as the Notes. After such additional debt securities are issued
they shall be fungible with the Notes to the extent specified in the applicable prospectus
or pricing supplement; and

(q)              
The principal of, Make-Whole Amount, if any, and interest on the Notes will be payable in U.S. dollars.

Capitalized
terms used herein (including the Exhibits hereto) and not otherwise defined shall have the meanings assigned to them in
the Indenture.

 

 

[Signature page follows]

          IN WITNESS
WHEREOF, the undersigned officers, on behalf of the Company, have
executed this Certificate as of the date first written above.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
      /s/ Michael Monahan

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Michael Monahan

 
	
  

 	
 Title:

 	
 Executive Vice President and

 Chief Financial Officer

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
      /s/ Helen Shan

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Helen Shan

 
	
  

 	
 Title:

 	
 Vice
 President, Finance and Treasurer

 

[Officers’ Certificate –
Indenture]

Exhibit A

          THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY (AS DEFINED IN THE
INDENTURE) OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR
IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR
IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY
OR A NOMINEE THEREOF, EXCEPT IN THE CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF, TRANSFER OF,
OR IN EXCHANGE FOR, OR IN LIEU OF, THIS SECURITY WILL BE A GLOBAL SECURITY
SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

          UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE,
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
& CO., HAS AN INTEREST HEREIN.

PITNEY BOWES INC.

	
  

 	
  

 	
  

 
	
 No.

 	
 SENIOR NOTE

 (Fixed Rate)

 	
 CUSIP No. 724479 407

 

	
  

 	
  

 	
  

 
	
 PRINCIPAL
AMOUNT: $ 

 	
  

 	
 STATED
 MATURITY OF SECURITY:

 November 27, 2022

 
	
 DENOMINATIONS:
 U.S. $25.00 and integral

 multiples in excess thereof

 	
  

 	
 COMPUTATION PERIOD:
 30/360 

 
	
  

 	
  

 	
  

 
	
 ISSUE DATE: November 27, 2012

 	
  

 	
 REGULAR
 RECORD DATE(S): February 12,

 May 12, August 12 and November 12

 
	
  

 	
  

 	
  

 
	
 INTEREST
 RATE: 5.25% per annum

 	
  

 	
 REDEEMABLE: Yes.

 
	
  

 	
  

 	
  

 
	
 INTEREST
 PAYMENT DATES: February 27,

 May 27, August 27 and November 27,

 commencing on February 27, 2013

 	
  

 	
 SINKING
 FUND: None. 

 

4

          Pitney
Bowes Inc., a corporation duly organized and existing under the laws of the
State of Delaware (herein called the “Company”, which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to Cede & Co., as nominee for The
Depository Trust Company, or registered assigns, the principal amount on the
Stated Maturity specified above unless redeemed or repurchased prior to such
date in accordance with the provisions referred to on the reverse hereof (the
stated maturity or date of earlier redemption or repurchase as the case may be,
is referred to herein as the “Maturity”) and to pay interest thereon (computed,
on the basis of a 360-day year of twelve 30-day months), from and including the
Issue Date specified above (the “Issue Date”) or from and including the most
recent Interest Payment Date to which interest on this Security (or any
predecessor Security) has been paid or duly provided for to, but excluding, the
Interest Payment Date, on the Interest Payment Dates specified above in each
year (each, an “Interest Payment Date”) and at Maturity, at the rate per annum
equal to the Interest Rate specified above, until the principal hereof is paid
or duly made available for payment. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
the Indenture, be paid to the Person in whose name this Security (or one or
more predecessor Securities) is registered at the close of business on the
relevant Regular Record Date. 

          Any
interest on this Security that is payable but not punctually paid or duly
provided for (“defaulted interest”) on any Interest Payment Date shall forthwith
cease to be payable to the Registered Holder on the relevant Regular Record
Date by virtue of such Holder having been a Holder on such Regular Record Date.
Such defaulted interest may be paid by the Company, at its election in each
case, as provided in clause (a) or clause (b) below:

	
  

 	
  

 	
  

 
	
  

 	
           (a)
 The Company may elect to make payment of any defaulted interest to the
 Persons in whose names the Securities (or their respective predecessor
 Securities) are registered at the close of business on a special record date
 for the payment of such defaulted interest, which shall be fixed in the
 following manner. The Company shall notify the Trustee (as defined on the
 reverse hereof) in writing of the amount of defaulted interest proposed to be
 paid on each Security and the date of the proposed payment and at the same
 time the Company shall deposit with the Trustee funds equal to the aggregate
 amount proposed to be paid in respect of such defaulted interest or shall
 make arrangements satisfactory to the Trustee for such deposit prior to the
 date of the proposed payment. Such funds when deposited shall be held in
 trust for the benefit of the Persons entitled to such defaulted interest as
 provided in this clause (a). Thereupon the Trustee promptly shall fix a special
 record date for the payment of such defaulted interest in respect of the
 Securities, which shall be not more than 15 nor less than ten days prior to
 the date of the proposed payment. The Trustee promptly shall notify the
 Company of such special record date and, in the name and at the expense of
 the Company, shall cause notice of the proposed payment of such defaulted
 interest and the special record date thereof to be mailed, first class
 postage prepaid, to each Holder of Securities at his address as it appears in
 the Security register, not less than ten days prior to such special record
 date. Notice of the proposed payment of such defaulted interest and the
 special record date therefor having been mailed as aforesaid, such defaulted
 interest in respect of the Securities shall be paid to the Persons in whose
 names the Securities (or their respective predecessor Securities) are
 registered on such special record date and such defaulted interest shall no
 longer be payable pursuant to the following clause (b).

 

5

	
  

 	
  

 
	
  

 	
           (b)
 The Company may make payment of any defaulted interest on the Securities in
 any other lawful manner not inconsistent with the requirements of any
 securities exchange on which the Securities may be listed, and upon such
 notice as may be required by such exchange, if, after notice given by the
 Company to the Trustee of the proposed payment pursuant to this clause, such
 payment shall be deemed practicable by the Trustee.

 
	
  

 	
  

 
	
           If
 any Interest Payment Date or the Maturity of this Security falls on a day
 that is not a Business Day with respect to this Security, the related payment
 of principal, premium, if any, and/or interest will be made on the next
 succeeding Business Day as if made on the date such payment was due, and no interest
 shall accrue on the amount so payable for the period from and after such
 Interest Payment Date or Maturity, as the case may be. A “Business Day” means
 a day, other than a Saturday, a Sunday, or any other day on which banking
 institutions in The City of New York are authorized or required by law or
 executive order to remain closed.

 
	
  

 
	
           Reference
 is hereby made to the further provisions of this Security set forth on the
 reverse hereof, which further provisions shall for all purposes have the same
 effect as if set forth at this place.

 
	
  

 
	
           Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual
signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

6

          IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed by
manual or facsimile signature under its corporate seal.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PITNEY BOWES INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
     Name:

 	
 Michael
 Monahan

 
	
  

 	
  

 	
     Title:

 	
 Executive
 Vice President and

 Chief Financial Officer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
     Name:

 	
 Helen Shan

 
	
  

 	
  

 	
     Title:

 	
 Vice
 President, Finance and

 Treasurer

 

	
  

 	
  

 
	
 Attest:

 	
  

 
	
  

 	
  

 
	

 

 	
  

 
	
 Dated:
 November 27, 2012

 	
  

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This
is one of the Securities of the series designated herein referred to in the
within-mentioned Indenture.

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF NEW YORK MELLON,

 
	
  

 	
 as Trustee

 
	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
             Authorized
 Signatory

 

 [Reverse of Security]

          This
Security is one of a duly authorized issue of securities of the Company (the
“Securities”) issued and to be issued in one or more series under an Indenture,
dated as of February 14, 2005, between the Company and Citibank, N.A., as
trustee (the “Initial Indenture”), as amended by the First Supplemental
Indenture, dated as of October 23, 2007, by and among the Company, The Bank of
New York Mellon, as successor trustee (the “Trustee”; which term includes any
successor trustee under the Indenture), and Citibank, N.A., as resigning
trustee (the “First Supplemental Indenture”, and together with the Initial
Indenture, the “Indenture”), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is
one of the series designated on the face hereof, limited initially to an
aggregate principal amount of $
                    ,
which amount may be increased at the option of the Company if in the future it
determines that it may wish to reopen the series of Securities of which this
Security is a part and sell additional Securities having the same terms. Except
as may be otherwise stated on the face hereof, the Securities of this series
are issuable only as registered Securities, without coupons, in denominations
of $25.00 and integral multiples in excess thereof. 

          The
Securities are general, direct, unconditional and senior unsecured obligations
of the Company.

          The
Company may redeem the Securities of the series of which this Security is a
part, at any time in whole or from time to time in part on any day fixed for
redemption in accordance with this Security and the Indenture (a “Redemption
Date”), at a redemption price equal to (i) in the case of a Redemption Date on
or after November 27, 2015, the sum of 100% of the aggregate principal amount
of the Securities being redeemed and accrued but unpaid interest on those
Securities to such Redemption Date; provided, however, that interest shall be
payable on an Interest Payment Date that falls on or before the Redemption Date
to Holders of Securities on the Regular Record Date for such Interest Payment
Date or (ii) in the case of a Redemption Date prior to November 27, 2015, the
sum of 100% of the aggregate principal amount of the Securities being redeemed,
accrued but unpaid interest on those Securities to such Redemption Date, and
the Make-Whole Amount, if any, as defined below; provided, however, that
interest shall be payable on an Interest Payment Date that falls on or before
the Redemption Date to Holders of Securities on the Regular Record Date for
such Interest Payment Date. 

          “Make-Whole
Amount” means, in connection with any optional redemption, the excess, if any,
of (a) the aggregate present value as of the Redemption Date of each dollar of
principal being redeemed and the amount of interest, exclusive of interest
accrued to such Redemption Date, that would have been payable in respect of
each such dollar if such redemption had not been made, determined by
discounting, on a quarterly basis (assuming a 360-day year of twelve 30-day
months), such principal and interest at the Reinvestment Rate, determined on
the third Business Day preceding the date notice of such redemption is given,
from the respective dates on which such principal and interest would have been
payable if such redemption had not been 

made, to such
Redemption Date, over (b) the aggregate principal amount of the Securities
being redeemed. 

          “Reinvestment
Rate” means 0.55% plus the arithmetic mean of the yields under the heading
“Week Ending” published in the most recent Statistical Release under the
caption “Treasury Constant Maturities” for the maturity, rounded to the nearest
month, corresponding to the remaining life to maturity, as of the Redemption
Date of the principal amount of the Securities being redeemed. If no maturity
exactly corresponds to such maturity, yields for the two published maturities
most closely corresponding to such maturity shall be calculated pursuant to the
immediately preceding sentence and the Reinvestment Rate shall be interpolated
or extrapolated from such yields on a straight-line basis, rounding in each of
such relevant periods to the nearest month. For the purposes of calculating the
Reinvestment Rate, the most recent Statistical Release published prior to the
date of determination of the Make-Whole Amount shall be used. If the format or
content of the Statistical Release changes in a manner that precludes
determination of the Treasury yield in the above manner, then the Treasury
yield shall be determined in the manner that most closely approximates the
above manner, as reasonably determined by the Company. 

          “Statistical
Release” means the statistical release designated “H.15(519)” or any successor
publication which is published weekly by the Federal Reserve System and which
reports yields on actively traded United States government securities adjusted
to constant maturities, or, if such statistical release is not published at the
time of any required determination under the Indenture, then such other
reasonably comparable index which shall be designated by the Company. 

          The
Company shall give written notice of any redemption of any Securities to
Holders of the Securities to be redeemed at their addresses, as shown in the
Security register for the Securities, at least 30 days and not more than 60
days prior to any Redemption Date. The notice of redemption shall specify,
among other items, the applicable Redemption Date, the redemption price and the
aggregate principal amount of the Securities to be redeemed. 

          If
the Company chooses to redeem less than all of the Securities, it shall notify
the Trustee at least 60 days before giving notice of redemption, or such
shorter period as is satisfactory to the Trustee, of the aggregate principal
amount of the Securities to be redeemed and the applicable Redemption Date. The
Trustee shall select, in such manner as it shall deem appropriate and fair, the
Securities to be redeemed in part. 

          Notice
of redemption having been given as aforesaid, this Security (or the portion of
the principal amount hereof so to be redeemed) shall, on the applicable
Redemption Date, become due and payable at the redemption price herein
specified above, and from and after such date (unless the Company shall default
in the payment of such redemption price) shall cease to bear interest. 

          If
a Change of Control Triggering Event (as defined below) occurs, unless the
Company has exercised its option to redeem the Securities, the Company shall be
required to make an offer (the “Change of Control Offer”) to each Holder of the
Securities of the series of which this Security is a part to repurchase all or
any part (equal to $25.00 and integral multiples in excess 

thereof) of
that Holder’s Securities on the terms set forth herein. In the Change of
Control Offer, the Company shall be required to offer payment in cash equal to
101% of the aggregate principal amount of Securities to be repurchased, plus
accrued and unpaid interest, if any, on the Securities to be repurchased to the
date of repurchase (the “Change of Control Payment”). 

          Within
30 days following any Change of Control Triggering Event, or, at the Company’s
option, prior to any Change of Control (as defined below), but after public
announcement of the transaction that constitutes or may constitute the Change
of Control, the Company shall mail a notice to Holders of the Securities, with
a copy to the Trustee, describing the transaction that constitutes or may
constitute the Change of Control Triggering Event and offering to repurchase
the Securities on the date specified in the notice, which date shall be no
earlier than 30 days and no later than 60 days from the date such notice is
mailed (the “Change of Control Payment Date”). The notice, if mailed prior to
the date of consummation of the Change of Control, shall state that the offer
to purchase is conditioned on the Change of Control Triggering Event occurring
on or prior to the Change of Control Payment Date. In the event that such offer
to purchase fails to satisfy the condition in the preceding sentence, the
Company shall cause another notice meeting the aforementioned requirements to
be mailed to Holders of the Securities. 

          On
the Change of Control Payment Date, the Company shall, to the extent lawful: 

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 accept for
 payment all Securities or portions of Securities properly tendered pursuant
 to the Change of Control Offer; 

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 deposit with
 the paying agent an amount equal to the Change of Control Payment in respect
 of all Securities or portions of Securities properly tendered; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 deliver or
 cause to be delivered to the Trustee the Securities properly accepted
 together with an officers’ certificate stating the aggregate principal amount
 of Securities or portions of Securities being repurchased. 

 

          The
Company shall not be required to make a Change of Control Offer upon the
occurrence of a Change of Control Triggering Event if a third party makes such
an offer in the manner, at the times and otherwise in compliance with the
requirements for an offer made by the Company and the third party repurchases
all Securities properly tendered and not withdrawn under its offer. In
addition, the Company shall not repurchase any Securities if there has occurred
and is continuing on the Change of Control Payment Date an Event of Default
under the Indenture, other than a default in the payment of the Change of
Control Payment upon a Change of Control Triggering Event. 

          The
Company shall comply with the requirements of Rule 14e-1 under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and any other securities
laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Securities as a result of a
Change of Control Triggering Event. To the extent that the provisions of any
such securities laws or regulations conflict with the Change of Control Offer
provisions of the Securities, the Company shall comply with those securities
laws 

and
regulations and shall not be deemed to have breached its obligations under the
Change of Control Offer provisions of the Securities by virtue of any such
conflict. 

          For
purposes of the Change of Control Offer provisions herein, the following terms
will be applicable: 

          “Change
of Control” means the occurrence of any of the following: (1) the consummation
of any transaction (including, without limitation, any merger or consolidation)
the result of which is that any “person” (as that term is used in Section
13(d)(3) of the Exchange Act) (other than the Company, any subsidiary or
employee benefit plan of the Company or employee benefit plan of any subsidiary
of the Company) becomes the beneficial owner (as defined in Rules 13d-3 and
13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the
Voting Stock of the Company or other Voting Stock into which the Voting Stock
of the Company is reclassified, consolidated, exchanged or changed, measured by
voting power rather than number of shares; (2) the direct or indirect sale,
transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or more series of transactions approved by the Board of
Directors of the Company as part of a single plan, of 85% or more of the total
consolidated assets of the Company as shown on the Company’s most recent
audited balance sheet, to one or more Persons (other than the Company or one of
the subsidiaries of the Company); or (3) the first day on which a majority of
the members of the Board of Directors of the Company are not Continuing
Directors. Notwithstanding the foregoing, a transaction will not be deemed to
involve a Change of Control if (1) the Company becomes a direct or indirect
wholly-owned subsidiary of a holding company and (2)(A) the direct or indirect
holders of the Voting Stock of such holding company immediately following that
transaction are substantially the same as the holders of the Voting Stock of
the Company immediately prior to that transaction or (B) immediately following
that transaction, no person or group (other than a holding company satisfying
the requirements of this sentence) is the beneficial owner, directly or
indirectly, of more than 50% of the Voting Stock of such holding company. 

          “Change
of Control Triggering Event” means the occurrence of both a Change of Control
and a Rating Event. 

          “Continuing
Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who (1) was a member of such Board of Directors of the
Company on the date the Securities were initially issued or (2) was nominated
for election, elected or appointed to the Board of Directors of the Company
with the approval of a majority of the Continuing Directors who were members of
the Board of Directors of the Company at the time of such nomination, election
or appointment (either by a specific vote or by approval of the proxy statement
of the Company in which such member was named as a nominee for election as a
director, without objection to such nomination). 

          “Investment
Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent)
by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent
investment grade credit rating from any additional Rating Agency or Rating
Agencies selected by the Company. 

          “Moody’s”
means Moody’s Investors Service, Inc. 

          “Rating
Agencies” means (1) each of Moody’s and S&P; and (2) if either of Moody’s
or S&P ceases to rate the Securities or fails to make a rating of the
Securities publicly available for reasons outside of the control of the
Company, a “nationally recognized statistical rating organization” within the
meaning of Section 3(a)(62) of the Exchange Act selected by the Company (as
certified by a resolution of the Board of Directors of the Company) as a
replacement agency for Moody’s or S&P, or both of them, as the case may be.

          “Rating
Event” means the rating on the Securities is lowered by each of the Rating
Agencies and the Securities are rated below an Investment Grade Rating by each
of the Rating Agencies on any day within the 60-day period (which 60-day period
shall be extended so long as the rating of the Securities is under publicly
announced consideration for a possible downgrade by any of the Rating Agencies)
after the earlier of (1) the occurrence of a Change of Control and (2) public
notice of the occurrence of a Change of Control or the intention of the Company
to effect a Change of Control; provided, however, that a Rating Event otherwise
arising by virtue of a particular reduction in rating will be deemed not to
have occurred in respect of a particular Change of Control (and thus will not
be deemed a Rating Event for purposes of the definition of Change of Control
Triggering Event) if the Rating Agencies making the reduction in rating to
which this definition would otherwise apply do not announce or publicly confirm
or inform the Trustee in writing at the Company’s or its request that the
reduction was the result, in whole or in part, of any event or circumstance
consisting of or arising as a result of, or in respect of, the applicable
Change of Control (whether or not the applicable Change of Control has occurred
at the time of the Rating Event). 

          “S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. 

          “Voting
Stock” means, with respect to any specified “person” (as that term is used in
Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such
person that is at the time entitled to vote generally in the election of the
board of directors of such person. 

          If
so indicated on the face hereof, and in accordance with the terms specified
thereon, this Security will be subject to redemption through operation of a
sinking fund. 

          The
Holders of Securities are entitled to certain covenants set forth in the
Indenture and in an officers’ certificate adopted pursuant to the Indenture. 

          The
Indenture contains provisions for defeasance at any time of the entire
indebtedness on this Security, or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance by the
Company with certain conditions set forth therein. 

          If
an Event of Default with respect to the Securities of the series of which this
Security is a part shall occur and be continuing, the principal of the
Securities of the series of which this Security is a part may be declared due
and payable in the manner and with the effect provided in the Indenture. Upon
payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal, premium and interest (in each case to the
extent that the payment of such interest shall be legally enforceable), all of
the Company’s obligations in 

respect of the
payment of the principal of and premium and interest, if any, on the Securities
of the series of which this Security is a part shall terminate. 

          The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities of each series to be affected under
the Indenture at any time by the Company and the Trustee with the consent of
the Holders of the majority in principal amount of the Securities at the time
Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued in exchange or
substitution therefor, irrespective of whether or not notation of such consent
or waiver is made upon this Security. 

          As
provided in and subject to the provisions of the Indenture, the Holder of this
Security shall not have the right to institute any proceeding with respect to
the Indenture or for the appointment of a trustee, receiver, liquidator,
custodian or other similar official or for any other remedy thereunder, unless
such Holder shall have previously given the Trustee written notice of a
continuing Event of Default with respect to the Securities of this series and
the Holders of not less than 25% in principal amount of the Securities of this
series at the time Outstanding shall have made written request to the Trustee
to institute proceedings in respect of such Event of Default as Trustee and
offered the Trustee satisfactory indemnity, and the Trustee shall not have
received from the Holders of a majority in principal amount of Securities of
this series at the time Outstanding a direction inconsistent with such request,
and shall have failed to institute any such proceeding, for 60 days after
receipt of such notice, request and offer of indemnity. 

          No
reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the right of any Holder of any Security to
receive payment of the principal of and, subject to Section 2.07 of the Initial
Indenture, interest on such Security at the respective rates, in the respective
amount on or after the respective due dates expressed in such Security, or to
institute suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder. 

          As
provided in the Indenture and subject to certain limitations herein and therein
set forth, the transfer of this Security is registrable in the Security
register. Upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, if this Security, if so
required by the Company or Trustee, is duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
thereupon one or more new Securities of the series of which this Security is a
part and of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees. 

          As
provided in the Indenture and subject to certain limitations herein and therein
set forth, the Securities of the series of which this Security is a part are
exchangeable for a like aggregate principal amount of Securities of the series
of which this Security is a part and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same. 

          No
service charge shall be made for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith. 

          Prior
to due presentment of this Security for registration of transfer, the Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes,
whether or not this Security be overdue, and none of the Company, the Trustee
or any such agent shall be affected by notice to the contrary. 

          This
Security shall be deemed to be a contract under the internal laws of the State
of New York (other than principles of law that would apply the law of another
jurisdiction), and for all purposes shall be construed and enforced in
accordance with and governed by the laws of said State. 

          All
terms used in this Security which are defined in the Indenture shall have the
meanings assigned to them in the Indenture. 

ABBREVIATION

          The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full
according to applicable laws or regulations. 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 TEN COM

 	
 as tenant in
 common

 	
  

 	
 UNIF GIFT MIN ACT

 	
 ______ Custodian ______

 
	
 TEN ENT

 	
 as tenants
 by the entireties (Cust)

 	
  

 	
  

 	
 (Cust)

 	
  

 	
 (Minor)

 
	
 JT TEN

 	
 as joint
 tenants with right of survivorship and not as tenants in common

 	
  

 	
  

 	
 under
 Uniform Gifts to Minors Act ______

 
	
  

 	
  

 	
  

 	
 (State)

 

Additional
abbreviations may also be used though not in the above list. 

	
  

 
	
 ASSIGNMENT FORM

 
	
  

 
	
 FOR VALUE
 RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 
	
 ____________________________________________________

 
	
 (please
 insert social security or other identifying number of assignee)

 
	
 ____________________________________________________

 
	
  (please print or typewrite name and address
 including postal zip code of assignee)

 
	
 the within
 Security and all rights thereunder, hereby irrevocably constituting and
 appointing

 
	
 ____________________________________________________

 
	
 attorney to
 transfer said Note on the books of the Company, with full power of
 substitution in the premises.

 
	
  

 
	
 Dated:
 _______________________________

 
	
  

 
	
 NOTICE: The
 signature to this assignment must correspond with the name as written upon
 the face of the within instrument in every particular, without alteration or
 enlargement or any change whatever.

 

Exhibit B

Limitations on Liens

          (a)
The Company will not, and will not permit any Restricted Subsidiary to, issue,
assume, guarantee or become liable for any notes, bonds, debentures or other
similar evidences of Indebtedness for money borrowed (herein referred to for
purposes of this “Limitations on Liens” covenant and the “Limitations on Sales
and Lease-Back Transactions” covenant as “Indebtedness”) secured by any
Mortgage, security interest, pledge or lien (herein referred to for purposes of
this “Limitations on Liens” covenant as a “Mortgage”) of or upon (x) any
Principal Domestic Manufacturing Plant or (y) shares of capital stock or Indebtedness
issued by any Restricted Subsidiary and owned by the Company or any Restricted
Subsidiary, whether owned at the date of this Officers’ Certificate or
thereafter acquired, without making effective provision, and the Company in
each case will make or cause to be made effective provision, whereby the Notes
shall be secured by such Mortgage equally and ratably with (or prior to) any
and all other Indebtedness thereby secured, so long as such Indebtedness shall
be so secured (for the purpose of providing such equal and ratable security the
principal amount of the Notes shall mean and shall not be less than that
principal amount that could be declared to be due and payable pursuant to
Section 5.01 of the Base Indenture on the date of the making of such effective
provision and the extent of such equal and ratable security shall be adjusted
quarterly to reflect the change in said principal amount over time pursuant to
Section 5.01 of the Base Indenture and any other provision of the Indenture or
this Officers’ Certificate); provided, however, that the foregoing restriction
shall not apply to Indebtedness secured by any of the following:

	
  

 	
  

 
	
  

 	
           (i)
 Mortgages on property of a Corporation existing at the time such Corporation
 is acquired (including by way of merger or consolidation) by the Company or a
 Restricted Subsidiary or a Restricted Subsidiary is merged into such
 Corporation or at the time of a sale, lease or other disposition of the
 properties of such Corporation (or a division thereof) as an entirety or
 substantially as an entirety to the Company or a Restricted Subsidiary,
 provided that such Mortgages as a result of such merger, consolidation, sale,
 lease or other disposition is not extended to property owned by the Company
 or such Restricted Subsidiary immediately prior thereto;

 
	
  

 	
  

 
	
  

 	
           (ii)
 Mortgages on property of a Corporation existing at the time such Corporation
 first becomes a Restricted Subsidiary;

 
	
  

 	
  

 
	
  

 	
           (iii)
 Mortgages on any property existing at the time of acquisition of such
 property or on the date of first issuance by the Company of Notes;

 
	
  

 	
  

 
	
  

 	
           (iv)
 Mortgages securing Indebtedness of a Wholly-Owned Restricted Subsidiary to
 the Company or to a Wholly-Owned Restricted Subsidiary; 

 
	
  

 	
  

 
	
  

 	
           (v)
 Mortgages on property to secure all or part of the cost of acquiring,
 substantially repairing or altering, constructing, developing or
 substantially improving all or any part of such property or to secure
 Indebtedness incurred to provide funds for any such purpose or for
 reimbursement of funds previously expended for any such purpose, provided the
 commitment of the creditor to extend the credit secured by any such 

 

	
  

 	
  

 
	
  

 	
 Mortgage
 shall have been obtained not later than 180 days after the later of (a) the
 completion of the acquisition, substantial repair or alteration,
 construction, development or substantial improvement of such property or (b)
 the placing in operation of such property or of such property as so
 substantially repaired or altered, constructed, developed or substantially
 improved;

 
	
  

 	
  

 
	
  

 	
           (vi)
 mechanic’s liens, tax liens, liens in favor of any governmental body to
 secure progress, advance or other payments or the acquisition of real or
 personal property from such governmental body pursuant to any contract or
 provision of any statute, and other liens, charges and encumbrances
 incidental to construction, to the conduct of business or to the ownership of
 property of the Company or any Restricted Subsidiary which were not incurred
 in connection with the borrowing of money or the obtaining of advances or
 credits or the acquisition of property and do not in the aggregate materially
 impair the use of any Principal Domestic Manufacturing Plant for the purposes
 for which it is held or which are being contested in good faith by the
 Company or such Restricted Subsidiary;

 
	
  

 	
  

 
	
  

 	
           (vii)
 Mortgages arising by reason of any judgment, decree or order of any court, so
 long as any appropriate legal proceedings which may have been initiated for
 the review of such judgment, decree or order shall not have been finally
 terminated or so long as the period within which such proceedings may be
 initiated shall not have expired; any deposit or pledge with any surety
 company or clerk of any court, or in escrow, as collateral in connection
 with, or in lieu of, any bond on appeal from any judgment or decree against
 the Company or any Restricted Subsidiary, or in connection with other
 proceedings or actions at law or in equity by or against the Company or any
 Subsidiary; or

 
	
  

 	
  

 
	
  

 	
           (viii)
 any extension, renewal or replacement (or successive extensions, renewals or
 replacements), in whole or in part, of any Mortgage referred to in the
 foregoing subclauses (i) through (vii), inclusive; provided, however, that
 the principal amount of Indebtedness secured thereby and not otherwise
 authorized by said subclauses (i) through (vii), inclusive, shall not exceed
 the principal amount of Indebtedness, plus any premium or fee payable in
 connection with any such extension, renewal or replacement, so secured at the
 time of such extension, renewal or replacement.

 

          (b)
Notwithstanding the provisions of clause (a) above, the Company or any
Restricted Subsidiary may issue, assume, guarantee or become liable for
Indebtedness secured by Mortgages which would otherwise be subject to the
restrictions of such clause (a), provided that the total of the aggregate
amount of Indebtedness outstanding pursuant to this clause (b), excluding
Indebtedness secured by Mortgages permitted under any of the foregoing
subclauses (a)(i) through (vii), together with the aggregate amount of all
Attributable Debt, does not exceed 15% of Consolidated Net Tangible Assets.

Limitations on Sale and Lease-Back Transactions.

          (a)
The Company will not, nor will it permit any Restricted Subsidiary to, enter
into any Sale and Lease-Back Transaction on or after the initial issuance of
Notes with respect to any

Principal
Domestic Manufacturing Plant (except for (1) a transaction providing for a
lease for a term, including any renewal thereof, of not more than three years,
(2) a transaction between the Company and a Wholly-Owned Restricted Subsidiary
or between Wholly-Owned Restricted Subsidiaries or (3) any lease of property
acquired after the date of the initial issuance of Notes if the rent payable by
the Company or such Restricted Subsidiary thereunder is to be reimbursed under
a contract with the government of the United States or any instrumentality or
agency thereof), if the commitment by or on behalf of the purchaser is obtained
more than 180 days after the later of (i) the completion of the acquisition,
substantial repair or alteration, construction, development or substantial
improvement of such Principal Domestic Manufacturing Plant or (ii) the placing
in operation of such Principal Domestic Manufacturing Plant or of such
Principal Domestic Manufacturing Plant as so substantially repaired or altered,
constructed, developed or substantially improved, unless either (x) the Company
or such Restricted Subsidiary would be entitled pursuant to clause (a) of the
“Limitations on Liens” covenant to issue, assume, guarantee or become liable
for debt secured by a Mortgage on such Principal Domestic Manufacturing Plant
without equally and ratably securing the Notes or (y) the Company shall apply
or cause to be applied, in the case of a sale or transfer for cash, an amount
equal to the net proceeds thereof (but not in excess of the net book value of
such sale or transfer) and, in the case of a sale or transfer otherwise than
for cash, an amount equal to the fair market value (as determined by the Board
of Directors but not in excess of the net book value of such Principal Domestic
Manufacturing Plant at the date of such sale or transfer) of the Principal
Domestic Manufacturing Plant so leased to the retirement, within 180 days after
the effective date of such Sale and Lease-Back Transaction, of Notes or other
unsubordinated Indebtedness (as defined in clause (a) of the “Limitations on
Liens” covenant) of the Company or a Restricted Subsidiary; provided, however,
that any such retirement of Notes shall be in accordance with Section 12.01 of
the Base Indenture and provided, further, that the amount to be applied to such
retirement of Notes or other Indebtedness shall be reduced by an amount equal
to the sum of (A) an amount equal to the principal amount of Notes delivered
within 180 days after the effective date of such Sale and Lease-Back
Transaction to the Trustee for retirement and cancellation (for purposes of
making such calculation, the principal amount of Original Issue Discount
Securities so retired or cancelled shall mean the portion thereof that could
have been declared due and payable pursuant to Section 5.01 at the time retired
and cancelled) and (B) the principal amount, plus any premium or fee paid in
connection with any redemption in accordance with the terms, of other
Indebtedness voluntarily retired by the Company within such 180-day period,
excluding retirements pursuant to mandatory prepayment provisions and payments
at maturity.

          (b)
Notwithstanding the provisions of clause (a) above, the Company or any
Restricted Subsidiary may enter into a Sale and Lease-Back Transaction which
would otherwise be subject to the restrictions of such clause (a) if the aggregate
amount of all Attributable Debt plus all Indebtedness secured by Mortgages on
Principal Domestic Manufacturing Plants or upon shares of capital stock or
Indebtedness issued by any Restricted Subsidiary, excluding Indebtedness
secured by Mortgages permitted under any of clauses (a)(i) through (vii) of the
“Limitations on Liens” covenant, does not exceed 15% of Consolidated Net
Tangible Assets.

Company May Consolidate, Etc., Only on Certain Terms.

          In
addition to the requirements set forth in Section 9.01 of the Base Indenture,
the Company shall not consolidate with or merge with or into, or sell, convey
or lease all or 

substantially
all of its assets to, any other Corporation, if as a result of any such
consolidation or merger or such conveyance, sale or lease, properties or assets
of the Company would become subject to a Mortgage, pledge, lien, security
interest or other encumbrance which would not be permitted by the “Limitations
on Liens” covenant, unless the Company or such successor Person, as the case
may be, shall take such steps as shall be necessary effectively to secure the
Notes equally and ratably with (or prior to) all Indebtedness secured thereby.

Definitions

          The
following terms (except as otherwise expressly provided or unless the context
otherwise clearly requires) for all purposes of the definitions set forth in
this Exhibit C shall have the meanings specified below. All capitalized
terms used in this Exhibit C and not otherwise defined shall have the meanings assigned
to them in the Indenture.

          “Attributable
Debt” in respect of any Sale and Lease-Back Transaction means, as of the
time of the determination, the lesser of (i) the sale price of the Principal
Domestic Manufacturing Plant so leased multiplied by a fraction the numerator
of which is the remaining portion of the base term of the lease included in
such transaction and the denominator of which is the base term of such lease,
and (ii) the total obligation (discounted to present value at the implicit
interest factor, determined in accordance with generally accepted financial
practice, included in the rental payments, or, if such interest factor cannot
readily be determined, at a rate of interest of 11% per annum, compounded
semiannually) under the lease for rental payments (other than amounts required
to be paid on account of property taxes as well as maintenance, repairs,
insurance, water rates and other items which do not constitute payments for
property rights (such as those based on real or energy costs or savings) during
the remaining portion of the base term of the lease included in such
transaction).

          “Consolidated
Net Tangible Assets” means as of any particular time the aggregate amount
of assets after deducting therefrom (a) all current liabilities (excluding any
such liability that by its terms is extendable or renewable at the option of
the obligor thereon to a time more than 12 months after the time as of which
the amount thereof is being computed) and (b) all goodwill, excess of cost over
assets acquired, patents, copyrights, trademarks, trade names, unamortized debt
discount and expense and other like intangibles, all as shown in the most
recent consolidated financial statements of the Company and its Subsidiaries
prepared in accordance with generally accepted accounting principles.

          “Consolidated
Net Worth” means the sum of (i) the par value or stated value of the
capital stock of the Company, (ii) the capital in excess of par value and (iii)
the retained earnings, all as shown on the most recent consolidated balance
sheet of the Company and its Subsidiaries, prepared in accordance with
generally accepted accounting principles. 

          “Corporation”
means corporation, association, company, joint stock company or business trust.

          “Funded
Debt” means, with respect to any Person (a) every obligation of such Person
for money borrowed and every obligation of such Person secured by any lien,
Mortgage, pledge or other security interest upon any property or asset of such Person
(whether or not assumed by

such Person),
which by its terms matures at, or is extendible or renewable at the option of
the obligor to, a date more than 12 months after the time of the computation of
the amount thereof, and which would appear as a liability (other than a current
liability or a deferred item) on a statement of financial position of such
Person in accordance with generally accepted accounting principles, (b) all
obligations in respect of lease rentals which would be shown on a balance sheet
of the obligor as a liability (other than a current liability or a deferred
item) in accordance with generally accepted accounting principles, (c) all
guarantees, direct or indirect, of any such Indebtedness or of any such
obligations of others or of dividends, and (d) all outstanding Preferred Stock
of any Restricted Subsidiary.

          “Preferred
Stock” as applied to the capital stock of any Corporation means stock of
any class or classes (however designated) which is preferred as to the payment of
dividends, or as to the distribution of assets on any voluntary or involuntary
liquidation or dissolution of such Corporation, over shares of stock of any
other class of such Corporation.

          “Principal
Domestic Manufacturing Plant” means any manufacturing or processing plant
or warehouse (other than such manufacturing plant or warehouse which, in the
opinion of the Board of Directors, is not of material importance to the total
business conducted by the Company and its Subsidiaries taken as a whole)
together with the land upon which it is erected and fixtures comprising a part
thereof, owned by the Company or any Subsidiary and located in the United
States of America, if the gross book value (without deduction of any
depreciation reserves) of all real property and fixed assets included in such
plant on the date as of which the determination is being made exceeds 1% of
Consolidated Net Worth.

          “Restricted
Subsidiary” means any Subsidiary which is organized under the laws of the
United States or of any State or of the District of Columbia and transacts all
or a substantial portion of its business in the United States and which owns a
Principal Domestic Manufacturing Plant; provided, however, that the term shall
not include Pitney Bowes Credit Corporation, a Delaware corporation, or any
other Subsidiary (a) which is solely or primarily engaged in the business of
providing or obtaining financing for the sale or lease of products sold or
leased by the Company or any Subsidiary or which is otherwise primarily engaged
in the business of a finance company either on a secured or an unsecured basis
or (b) which is solely or primarily engaged in the business of owning,
developing or leasing real property other than a Principal Domestic
Manufacturing Plant.

          “Sale
and Lease-Back Transaction” of a Corporation means any arrangement whereby
property has been or is to be sold or transferred by such Corporation to any
Person with the intention on the part of such Corporation of taking back a
lease of such property with a term of more than 36 months pursuant to which the
rental payments are calculated to amortize the purchase price of such property
substantially over the useful life of such property, and such property is in
fact so leased by such Corporation.

          “Subsidiary”
means with respect to the Company, a Corporation more than 50% of the
outstanding Voting Stock of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries, or by the Company and one or more
other Subsidiaries. For the purposes of this definition, “Voting Stock” means
stock which ordinarily has voting power for the election of directors, whether
at all times or only so long as no senior class of stock has such 

voting power
by reason of any contingency.

          “Wholly-Owned
Restricted Subsidiary” means a Restricted Subsidiary all of the outstanding
voting stock of which, other than directors’ qualifying shares, and all the
Funded Debt of which shall at the time be owned by the Company or by one or
more other Wholly-Owned Restricted Subsidiaries, or by the Company and one or
more other Wholly-Owned Restricted Subsidiaries.

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