Document:

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EXHIBIT 4.3

INTERNATIONAL LEASE FINANCE CORPORATION

MEDIUM-TERM NOTE, SERIES R

(FIXED RATE)

			
	 	 	 
	REGISTERED
	 	REGISTERED

No. FXR-

CUSIP-

If this Security is registered in the name of The Depository Trust Company (the “Depositary”) (55
Water Street, New York, New York) or its nominee, this Security may not be transferred except as a
whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary unless and until this Security is
exchanged in whole or in part for Securities in definitive form. Unless this certificate is
presented by an authorized representative of the Depositary to the Company or its agent for
registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede & Co. or such other name as requested by an authorized representative of the Depositary and
any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co. has an interest
herein.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Original	 
	Stated	 	Interest	 	 	Issue	 	 	Principal	 
	Maturity:	 	Rate:	 	 	Date:	 	 	Amount:	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
 

	 	 	 	%	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 

	 	 	 
	Issue Price:
	 	 
	 
	 	 
	Repurchase Price

	 	Overdue
	(for Discount

	 	Rate (if any):
	Securities):
	 	 

Redeemable On Or After:

Optional Repayment Date:

Optional Reset Dates:

Extension Periods:

Final Maturity:

Other Provisions:

 

 

          INTERNATIONAL LEASE FINANCE CORPORATION, a California corporation (herein called the
“Company”, which term includes any successor corporation under the Indenture, as hereinafter
defined), for value received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum set forth above at Stated Maturity shown above and to pay interest thereon from the
Original Issue Date shown above or from the most recent Interest Payment Date (as defined below) to
which interest has been paid or duly provided for at a fixed rate per annum semi annually in
arrears on April 15 and October 15 in each year, unless otherwise set forth above (“Interest
Payment Dates”), until the principal hereof is paid or made available for payment, and on Stated
Maturity. Interest will be payable on each Interest Payment Date and at Stated Maturity or upon
redemption or optional repayment. Interest will be payable to the Holder at the close of business
on the Regular Record Date which shall be April 1 and October 1 of each year, unless otherwise set
forth above, next preceding such Interest Payment Date; provided, however, that interest payable at
Stated Maturity or upon redemption or optional repayment will be payable to the person to whom
principal is payable and (to the extent that the payment of such interest shall be legally
enforceable) at the Overdue Rate, if any, per annum set forth above on any overdue principal and
premium and on any overdue installment of interest. If the Original Issue Date is between a
Regular Record Date and the next succeeding Interest Payment Date, the first payment of interest
hereon will be made on the Interest Payment Date following the next succeeding Regular Record Date
to the Holder on such next Regular Record Date.

          Payment of the principal, and premium, if any, and interest payable at Stated Maturity or upon
redemption or optional repayment of this Security will be made in immediately available funds at
the corporate trust office or agency of the Trustee in New York, New York, provided that this
Security is presented to the Trustee in time for the Trustee to make such payments in such funds in
accordance with its normal procedures. Interest (other than interest payable at Stated Maturity or
upon redemption or optional repayment) will be paid by check mailed to the address of the person
entitled thereto as it appears in the Security Register on the applicable Regular Record Date or,
at the option of the Company, by wire transfer to an account maintained by such person with a bank
located in the United States. Notwithstanding the foregoing, (1) the Depositary or its nominee, if
it is the registered Holder of this Security, will be entitled to receive payments of interest
(other than at Stated Maturity or upon redemption or optional repayment) by wire transfer to an
account maintained by such Holder with a bank located in the United States, and (2) a Holder of
$10,000,000 or more in aggregate principal amount of Securities having the same Interest Payment
Date will, upon receipt on or prior to the Regular Record Date preceding an applicable Interest
Payment Date by the Trustee of written instructions from such Holder, be entitled to receive
payments of interest (other than at Stated Maturity or upon redemption or optional repayment) by
wire transfer to an account maintained by such Holder with a bank located in the United States.
Such instructions shall remain in effect with respect to payments of interest made to such Holder
on subsequent Interest Payment Dates unless revoked or changed by written instructions received by
the Trustee from such Holder, provided that any such written revocation or change which is received
by the Trustee after a Regular Record Date and before the related Interest Payment Date shall not
be effective with respect to the interest payable on such Interest Payment Date.

          This Security is one of a duly authorized issue of Medium-Term Notes, Series R of the Company
(herein called the “Securities”), issued and to be issued under an Indenture dated as of August 1,
2006 (as may be amended from time to time, herein called the “Indenture”) between the Company and
Deutsche Bank Trust Company Americas, as trustee (herein called the “Trustee,” which term includes
any successor trustee under the Indenture), to which the Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights, limitation 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. The Securities of this series may be
issued from time to time at varying maturities, interest rates and other terms as may be designated
with respect to a Security.

          After the completion of the issuance for which this Security is a part, the Company may, from
time to time, reopen such issuance and issue additional Securities with the same terms (including
maturity and interest payment terms) as this Security. After such additional Securities are
issued, they will be fungible with this Security.

          Interest payments for this Security will include interest accrued to but excluding the
Interest Payment Dates. Interest payments for this Security shall be computed and paid on the
basis of a 360-day year of

 

 

twelve 30-day months. If any Interest Payment Date specified on the face hereof would
otherwise be a day that is not a Business Day, the Interest Payment Date shall be postponed to the
next day that is a Business Day. “Business Day” means any day that is not a Saturday or Sunday and
that, in The City of New York, is not a day on which banking institutions are generally authorized
or obligated to close.

          On each Optional Reset Date, if any, specified on the face hereof, the Company has the option
to reset the interest rate hereon. If no date or dates for such reset are set forth on the face
hereof, this Security will not be subject to such reset. The Company may exercise such option by
notifying the Trustee of such exercise at least 45 but not more than 60 days prior to an Optional
Reset Date. Not later than 40 days prior to such Optional Reset Date, the Trustee will mail to the
Holder hereof a notice (the “Reset Notice”), first class, postage prepaid. The Reset Notice will
indicate whether the Company has elected to reset the interest rate hereon and if so, (1) such new
interest rate; and (2) the provisions, if any, for redemption during the period from such Optional
Reset Date to the next Optional Reset Date or, if there is no such next Optional Reset Date, to
Stated Maturity (each such period a “Subsequent Interest Period”), including the date or dates on
which or the period or periods during which and the price or prices at which such redemption may
occur during such Subsequent Interest Period.

          Notwithstanding the foregoing, the Company may, at its option, revoke the interest rate as
provided for in the Reset Notice, and establish an interest rate that is higher than the interest
rate provided for in the relevant Reset Notice for the Subsequent Interest Period commencing on
such Optional Reset Date, by causing the Trustee to mail, not later than 20 days prior to an
Optional Reset Date (or, if the day is not a Business Day, on the immediately succeeding Business
Day), a notice of such higher interest rate to the Holder hereof. Such notice will be irrevocable.
The Company must notify the Trustee of its intentions to revoke such Reset Notice at least 25 days
prior to such Optional Reset Date. If the interest rate hereof is reset on an Optional Reset Date
and the Holder hereof has not tendered this Security for repayment (or has validly revoked any such
tender) pursuant to the next succeeding paragraph, such Holder will bear such higher interest rate
for the Subsequent Interest Period.

          If the Company elects to reset the interest rate hereon as described above, the Holder hereof
will have the option to elect repayment hereof by the Company on any Optional Reset Date at a price
equal to the aggregate principal amount hereof outstanding on, plus any interest accrued to, such
Optional Reset Date. In order to exercise such option, the Holder hereof must follow the
procedures set forth below for optional repayment, except that (1) the period for delivery of this
Security or notification to the Trustee will be at least 25 but not more than 35 days prior to such
Optional Reset Date and (2) a Holder who has tendered for repayment pursuant to a Reset Notice may,
by written notice to the Trustee, revoke any such tender until the close of business on the tenth
day prior to such Optional Reset Date.

          The Company may extend the Stated Maturity of this Security for the number of periods of whole
years from one to five, if any, specified on the face hereof under Extension Periods up to but not
beyond the Final Maturity Date specified on the face hereof. If no period or periods for such
extension are set forth on the face hereof, this Security will not be subject to such extension.
The Company may exercise such option by notifying the Trustee of such exercise at least 45 but not
more than 60 days prior to the old Stated Maturity. Not later than 40 days prior to the old Stated
Maturity, the Trustee will mail to the Holder hereof a notice (the “Extension Notice”), first
class, postage prepaid. The Extension Notice will set forth (1) the election of the Company to
extend the Stated Maturity; (2) the new Stated Maturity; (3) the interest rate applicable to the
Extension Period; and (4) the provisions, if any, for redemption during the Extension Period,
including the date or dates on which or the period or periods during which and the price or prices
at which such redemption may occur during the Extension Period. Upon the mailing by such Trustee
of an Extension Notice to the Holder hereof, the Stated Maturity shall be extended automatically,
and, except as modified by the Extension Notice and as described in the next paragraph, this
Security will have the same terms as prior to the mailing of such Extension Notice.

          Notwithstanding the foregoing, not later than 20 days prior to the old Stated Maturity, the
Company may, at its option, revoke the interest rate provided for in the Extension Notice and
establish a higher interest rate for the Extension Period, by causing the Trustee to mail notice of
such higher interest rate, as the case may be, first class, postage prepaid, to the Holder hereof.
Such notice will be irrevocable. In such case, this Security will bear such higher interest rate
for the Extension Period, whether or not tendered for repayment.

 

 

          If the Company extends Stated Maturity, the Holder hereof will have the option to elect
repayment hereof by the Company on the old Stated Maturity at a price equal to the principal amount
hereof, plus any interest accrued and unpaid to such date. In order to exercise such option, the
Holder hereof must follow the procedures set forth for optional repayment, except that (1) the
period for delivery of this Security or notification to the Trustee will be at least 25 but not
more than 35 days prior to the old Stated Maturity and (2) a Holder who has tendered for repayment
pursuant to an Extension Notice may, by written notice to the Trustee, revoke any such tender for
repayment until the close of business on the tenth day before the old Stated Maturity.

          Unless otherwise indicated on the face of this Security, this Security may not be redeemed
prior to Stated Maturity. If so indicated on the face of this Security, this Security may be
redeemed, at the option of the Company, on any date on or after the date set forth on the face
hereof, either in whole or from time to time in part at a redemption price equal to 100% of the
principal amount redeemed, together with interest accrued and unpaid thereon to the date of
redemption. Notice of redemption shall be mailed to the Holders of the Securities designated for
redemption at their addresses as the same shall appear in the Security Register not less than 30
and not more than 60 days prior to the date of redemption, subject to all the conditions and
provisions of the Indenture. In the event of any redemption, the Company will not be required to
(1) issue, register the transfer of, or exchange any Security during a period beginning at the
opening of business 15 days before any selection of Securities to be redeemed and ending at the
close of business on the date of mailing of the relevant notice of redemption or (2) register the
transfer or exchange of any Security, or any portion thereof, called for redemption, except the
unredeemed portion of any Security being redeemed in part. Only a new Security or Securities for
the amount of the unredeemed portion hereof shall be issued in the name of the Holder hereof upon
the cancellation hereof.

          If so provided on the face of this Security, the Security will be subject to repayment at the
option of the Holder on the date or dates so indicated on the face hereof. If no date or dates for
such repayment are set forth on the face hereof, this Security will not be repayable at the option
of the Holder prior to Stated Maturity. On an optional repayment date, if any, this Security will
be repayable in whole or in part in increments of $1,000 at the option of the Holder at a price
equal to 100% of the principal amount to be repaid, together with interest thereon payable to the
date of repayment, if not more than 60 nor less than 30 days prior to the date or dates of
repayment set forth on the face hereof, the Company receives either (a) the Security with the form
entitled “Option to Elect Repayment” on the reverse of the Security duly completed or (b) a
telegram, telex, facsimile transmission or letter from a member of a national securities exchange
or the National Association of Securities Dealers, Inc. or a commercial bank or a trust company in
the United States of America stating the name of the Holder of the Security, the principal amount
of the Security, the amount of the Security to be repaid, a statement that the option to elect
repayment is being exercised, and a guarantee that the Security to be repaid with the form entitled
“Option to Elect Repayment” on the reverse of the Security duly completed will be received by the
Company within five Business Days after the date of the telegram, telex, facsimile transmission or
letter, and the security and form duly completed are so received by the Company. Any notice of
this effect received by the Company will be irrevocable. The final and binding determination of
all questions as to the validity, eligibility (including time of receipt) and acceptance of this
Security for repayment will be made by the Company. In the event of repayment of this Security in
part only, a new Security for the unrepaid portion hereof shall be issued in the name of the Holder
hereof upon the surrender hereof.

          If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture.

          Unless otherwise specified on the face hereof, if (1) this Security is issued with original
issue discount (as defined in the Internal Revenue Code of 1986, as amended)( the “Code”), and (2)
the principal hereof is declared to be due and payable immediately, the amount of principal due and
payable with respect hereto shall be limited to the Principal Amount hereof multiplied by the sum
of the Issue Price hereof (expressed as a percentage of the Principal Amount hereof); plus the
aggregate portions of the original issue discount (consisting of the excess of the amounts
considered as part of the “stated redemption price at maturity” of the Security within the meaning
of Section 1273(a)(2) of the Code, whether denominated as principal or interest, over the Issue
Price), which have

 

 

accrued pursuant to Section 1272 of the Code (without regard to Section 1272(a)(7) of the
Code) from the date of issuance of the Security to the date of determination; and minus any amount
paid from the date of issuance up to the date of determination which is considered part of the
“stated redemption price at maturity” of the Security.

          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 not less than a 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 not less than a majority in principal amount of the
outstanding Securities of any 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 upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Security.

          No reference herein to the Indenture and no provisions of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of, premium, if any, and interest on this Security at the times, places and rate, and
in the coin or currency, herein prescribed. However, the Indenture limits Holder’s rights to
enforce the Indenture and this Security.

          This Security is exchangeable only if (1) the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary for this Global Security or if at any time the
Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as
amended, and a successor Depositary is not appointed within the time specified in the Indenture, or
(2) the Company in its sole discretion determines that all Global Securities of the same series as
this Security shall be exchangeable for definitive Securities of differing denominations
aggregating a like amount in registered form. If this Security is exchangeable pursuant to the
preceding sentence, it shall be exchangeable for definitive Securities of differing denominations
aggregating a like amount in registered form in denominations of $1,000 and integral multiples of
$1,000 in excess thereof, bearing interest at the same rate, having the same date of issuance,
redemption provisions, if any, Stated Maturity and other terms.

          The Depositary will not sell, assign, transfer or otherwise convey any beneficial interest in
this Security unless such beneficial interest is in an amount equal to $1,000 or an integral
multiple of $1,000 in excess thereof. The Depositary, by accepting this Security, agrees to be
bound by such provision.

          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.

          THE INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTITUTED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

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

 

 

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal as of the Dated Date set forth on the face hereof.

	 	 	 	 	 
	 	 	INTERNATIONAL LEASE FINANCE CORPORATION
	 
	 	 	 	 
	[Seal]
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Chairman of the Board
	 
	 	 	 	 
	 
	 

	 	 	 	 
	 

	 	 	 	President

	 	 	 
	Attest:
	 	 
	 
	 	 
	 	 	 
	Secretary
	 	 

          Unless the certificate of authentication hereon has been executed by Deutsche Bank Trust
Company Americas, the Trustee under the Indenture, or its successor thereunder, by the manual
signature of one of its authorized signatories or authorized Authenticating Agents, this Note shall
not be entitled to any benefits under the Indenture, or be valid or obligatory for any purpose.

CERTIFICATE OF AUTHENTICATION

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

Date of Registration:

	 	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,
	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

 

 

[FORM OF ASSIGNMENT]

ABBREVIATIONS

          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 tenants in common
	TEN ENT —

	 	as tenants by the entireties
	JT TEN —

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

	 	 	 	 	 	 	 	 	 
	UNIF GIFT MIN ACT —
	 	 	 	Custodian	 	 
	 

	 	 
	 	 	 	 
	 

	 	(Cust)
	 	 	 	(Minor)
	 

	 	 
	 	 	 	 

	 	 	 	 	 
	under Uniform Gifts to Minors Act
	 	 	 	 
	 

	 	 

(State)
	 	 

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

 

     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 Note 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 on the face of the within instrument
in every particular, without alteration or enlargement,
or any change whatever.

 

 

OPTION TO ELECT REPAYMENT

          The undersigned hereby irrevocably requests and instructs the Company to repay the within
Security (or portion thereof specified below) pursuant to its terms at a price equal to the
principal amount thereof, together with interest to the repayment date, to the undersigned.

          The undersigned acknowledges that for the within Security to be repaid, the Company must
receive at the offices or agencies of the Trustee in The City of New York, during the period
specified in this Security (1) the Security with this “Option to Elect Repayment” form duly
completed, or (2) a telegram, telex, facsimile or letter from a member of a national securities
exchange or the National Association of Securities Dealers, Inc. or a commercial bank or a trust
company in the United States of America setting forth the name of the Holder of the Security, the
principal amount of the Security, the amount of the Security to be repaid, a statement that the
option to elect repayment is being exercised thereby and a guarantee that the Security to be repaid
with the “Option to Elect Repayment” form duly completed will be received by the Company not later
than five Business Days after the date of such telegram, telex, facsimile transmission or letter
and such Security and form duly completed are received by the Company by such fifth Business Day.
Any such notice received by the Company during the period specified in this Security shall be
irrevocable.

          If less than the entire principal amount of the within Security is to be repaid, specify the
portion thereof (which shall be $1,000 or an integral multiple thereof) which the Holder elects to
have repaid: $                    ; and specify the denomination or denominations (which shall be $1,000
or an integral multiple thereof) of the Security or Securities to be issued to the Holder for the
portion of the within Security not being repaid (in the absence of any such specification, one such
Security will be issued for the portion not being repaid): $                    .

Dated:

	 	 	 	 
	 

	 	 	 
	 

	 	Note: The signature to this Option to Elect
Repayment must correspond with the name as it appears
upon the face of the within Security in every
particular without alteration or enlargement or any
change whatever.<PAGE>

                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement"), made as of this 21st day of
August, 2006, is entered into by Nashua Corporation, a Massachusetts corporation
with its principal place of business at 11 Trafalgar Square, Suite 201, Nashua,
New Hampshire 03063 (the "Company"), and Thomas Kubis, residing at 3088 Federal
Boulevard, Morristown, Tennessee 37814 (the "Executive").

     The Company desires to employ the Executive, and the Executive desires to
be employed by the Company. In consideration of the mutual covenants and
promises contained in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged by the parties to
this Agreement, the parties agree as follows:

     1. Employment At-Will. The Company hereby agrees to employ the Executive,
and the Executive hereby accepts employment with the Company, upon the terms set
forth in this Agreement, commencing on August 21, 2006 (the "Commencement
Date"). Subject to the provisions set forth herein and in the change of control
and severance agreement, of even date herewith, attached hereto as Exhibit A
(the "Change of Control Agreement"), the Executive's employment with the Company
shall be at-will meaning that either party may terminate the employment
relationship at any time, for any reason, with or without cause or notice
subject to the provisions set forth herein.

     2. Title; Capacity. The Executive shall serve on a full-time basis as Vice
President of Operations. The Executive shall be based in the Company's office in
Jefferson City, Tennessee. The Executive shall be subject to the supervision of,
and shall have such authority as is delegated to the Executive by, the President
and Chief Executive Officer (CEO).

     The Executive hereby accepts such employment and agrees to undertake the
duties and responsibilities inherent in such position and such other duties and
responsibilities as the CEO shall from time to time reasonably assign to the
Executive. The Executive agrees to devote his entire business time, attention
and energies to the business and interests of the Company and shall not engage
in any other business activities without the prior (written) approval of the
CEO. The Executive agrees to abide by the rules, regulations, instructions,
personnel practices and policies of the Company and any changes therein which
may be adopted from time to time by the Company.

     3. Compensation and Benefits.

          3.1 Salary. The Company shall pay the Executive, in periodic
installments in accordance with the Company's customary payroll practices, an
annualized base salary of $180,000, for the period commencing on the
Commencement Date.

          3.2 Annual Bonus. The Executive's participation in the 2006 Management
Incentive Plan will continue as outlined in the April 3, 2006 memo provided to
the Executive. Beginning January 1, 2007, the Executive shall be eligible to
receive an annual cash bonus, payable as a percentage (40%) of the Executive's
base salary, based upon the achievement of certain plan goals established by the
CEO.

<PAGE>

          3.3 Fringe Benefits. The Executive shall be entitled to participate in
all bonus and benefit programs that the Company establishes and makes available
to its employees, if any, to the extent that Executive's position, tenure,
salary, age, health and other qualifications make him eligible to participate.
The Executive shall be entitled to four weeks paid vacation per year, to be
taken at such times as may be approved by the CEO. Vacation time may not be
carried over from year to year.

          3.4 Reimbursement of Expenses. The Company shall reimburse the
Executive for all reasonable travel, entertainment and other expenses incurred
or paid by the Executive in connection with, or related to, the performance of
his duties, responsibilities or services under this Agreement, in accordance
with policies and procedures, and subject to limitations, adopted by the Company
from time to time.

          3.5 Withholding. All salary, bonus and other compensation payable to
the Executive shall be subject to applicable withholding taxes.

          3.6 Restricted Stock. Subject to approval of the Board and the
Executive's execution of the applicable Company restricted stock agreements, the
Executive shall be granted 15,000 shares of common stock, par value $1.00 per
share, of the Company (the "Common Stock"), subject to the terms and conditions
of the Company's 2004 Value Creation Incentive Plan, or if granted pursuant to a
different stock incentive plan of the Company, such grant of Common Stock shall
be on substantially similar terms and conditions as the Company's 2004 Value
Creation Incentive Plan. The common stock shall vest as to (i) 33% if the
average of the last reported sales price per share of the Common Stock on the
Nasdaq National Market (or other national securities exchange or nationally
recognized trading system) for a 40 consecutive trading day period ending on the
third anniversary of the Commencement Date (the "40-Day Average Closing Price")
is equal to or greater than $13.00 and less than $14.00, (ii) 66% if the 40-Day
Average Closing Price is equal to or greater than $14.00 and less than $15.00
and (iii) 100% if the 40-Day Average Closing Price is equal to or greater than
$15.00. The common stock shall vest upon the terms and conditions set forth in
the 2004 Value Creation Incentive Plan.

          3.7 Change of Control Agreement. The Executive shall, upon execution
of this Agreement, execute the Change of Control Agreement.

     4. Confidentiality, Non-Competition, Return of Property and Developments
Agreement. The Executive shall, upon execution of this Agreement, execute a
non-competition and non-solicitation agreement in the form attached hereto as
Exhibit B.

     5. Other Agreements. The Executive represents that his performance of all
the terms of this Agreement and the performance of his duties as an employee of
the Company do not and will not breach any agreement with any prior employer or
other party to which the Executive is a party (including without limitation any
nondisclosure or non-competition agreement). Any agreement to which the
Executive is a party relating to nondisclosure, non-competition or
non-solicitation of employees or customers is listed on Schedule A attached
hereto.

                                       -2-

<PAGE>

     6. Miscellaneous.

          6.1 Notices. Any notices delivered under this Agreement shall be
deemed duly delivered four business days after it is sent by registered or
certified mail, return receipt requested, postage prepaid, or one business day
after it is sent for next-business day delivery via a reputable nationwide
overnight courier service, in each case to the address of the recipient set
forth in the introductory paragraph hereto. Either party may change the address
to which notices are to be delivered by giving notice of such change to the
other party in the manner set forth in this Section 8.1.

          6.2 Pronouns. Whenever the context may require, any pronouns used in
this Agreement shall include the corresponding masculine, feminine or neuter
forms, and the singular forms of nouns and pronouns shall include the plural,
and vice versa.

          6.3 Entire Agreement. This Agreement constitutes the entire agreement
between the parties and supersedes all prior agreements and understandings,
whether written or oral, relating to the subject matter of this Agreement.

          6.4 Amendment. This Agreement may be amended or modified only by a
written instrument executed by both the Company and the Executive.

          6.5 Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the Commonwealth of Massachusetts (without
reference to the conflicts of laws provisions thereof). Any action, suit or
other legal proceeding arising under or relating to any provision of this
Agreement shall be commenced only in a court of the Commonwealth of
Massachusetts (or, if appropriate, a federal court located within Massachusetts
or the Northern District of Illinois), and the Company and the Executive each
consents to the jurisdiction of such a court.

          6.6 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of both parties and their respective successors and
assigns, including any corporation with which, or into which, the Company may be
merged or which may succeed to the Company's assets or business, provided,
however, that the obligations of the Executive are personal and shall not be
assigned by him.

          6.7 Waivers. No delay or omission by the Company or the Executive in
exercising any right under this Agreement shall operate as a waiver of that or
any other right. A waiver or consent given by the Company or the Executive on
any one occasion shall be effective only in that instance and shall not be
construed as a bar or waiver of any right on any other occasion.

          6.8 Captions. The captions of the sections of this Agreement are for
convenience of reference only and in no way define, limit or affect the scope or
substance of any section of this Agreement.

          6.9 Severability. In case any provision of this Agreement shall be
invalid, illegal or otherwise unenforceable, the validity, legality and
enforceability of the remaining provisions shall in no way be affected or
impaired thereby.

                                       -3-

<PAGE>

     THE EXECUTIVE ACKNOWLEDGES THAT HE HAS CAREFULLY READ THIS AGREEMENT AND
UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year set forth above.

                                        NASHUA CORPORATION

                                        By: /s/ Thomas G. Brooker
                                            ------------------------------------
                                        Name: Thomas G. Brooker
                                        Title: President and CEO

                                        EXECUTIVE

                                        /s/ Thomas M. Kubis
                                        ----------------------------------------
                                        Thomas Kubis

                                       -4-

<PAGE>

                                   SCHEDULE A

                                Prior Agreements

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