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                                                                    Exhibit 10.2

                    CHANGE OF CONTROL AND SEVERANCE AGREEMENT

AGREEMENT by and between NASHUA CORPORATION, a Massachusetts corporation (the
"Company") and THOMAS KUBIS (the "Executive"), dated as of the 21st day of
August, 2006.

RECITALS:

WHEREAS, the Board of Directors of the Company (the "Board"), has determined
that it is in the best interests of the Company and its shareholders to assure
that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined below) of the Company or other reasons of uncertainty;

WHEREAS, the Board believes it is imperative to diminish the inevitable
distraction of the Executive by virtue of the personal uncertainties and risks
created by a pending or threatened Change of Control and business concerns and
to encourage the Executive's full attention and dedication to the Company;

WHEREAS, the Board is implementing a value creation incentive plan to provide
the Executive and other members of management of the Company with additional
equity incentives;

WHEREAS, in order to accomplish these objectives, the Board believes it is in
the best interests of the Company to enter into this Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.   CERTAIN DEFINITIONS.

     (a)  The "Effective Date" shall be the first date during the "Change of
          Control Period" (as defined in Section 1(b)) on which a Change of
          Control occurs. Anything in this Agreement to the contrary
          notwithstanding, if the Executive's employment with the Company is
          terminated or the Executive ceases to be an officer of the Company
          prior to the date on which a Change of Control occurs, and it is
          reasonably demonstrated that such termination of employment (1) was at
          the request of a third party who has taken steps reasonably calculated
          to effect the Change of Control or (2) otherwise arose in connection
          with or anticipation of the Change of Control, then for all purposes
          of this Agreement the "Effective Date" shall mean the date immediately
          prior to the date of such termination of employment.

     (b)  The "Change of Control Period" is the period commencing on the date
          hereof and ending on the third anniversary of such date; provided,
          however, that commencing on such third anniversary, and on each annual
          anniversary of such date (such date and each annual anniversary
          thereof is hereinafter referred to as the "Renewal Date"), the Change
          of Control Period shall be automatically extended so as to terminate
          one year from such Renewal Date, unless at least 60 days prior to the
          Renewal Date the Company shall give notice to the Executive that the
          Change of Control Period shall not be so extended.

2.   CHANGE OF CONTROL. For the purpose of this Agreement, a "Change of Control"
     shall mean:

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     (a)  The acquisition, other than from the Company, by any individual,
          entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of
          the Securities Exchange Act of l934, as amended (the "Exchange Act"))
          of beneficial ownership (within the meaning of Rule 13d-3 promulgated
          under the Exchange Act) (a "Person") of 50% or more of either (i) the
          then outstanding shares of common stock of the Company (the
          "Outstanding Company Common Stock") or (ii) the combined voting power
          of the then outstanding voting securities of the Company entitled to
          vote generally in the election of directors (the "Company Voting
          Securities"), provided, however, that any acquisition by (x) the
          Company or any of its subsidiaries, or any employee benefit plan (or
          related trust) sponsored or maintained by the Company or any of its
          subsidiaries, or (y) any corporation with respect to which, following
          such acquisition, more than 60% of, respectively, the then outstanding
          shares of common stock of such corporation and the combined voting
          power of the then outstanding voting securities of such corporation
          entitled to vote generally in the election of directors is then
          beneficially owned, directly or indirectly, by all or substantially
          all of the individuals and entities who were the beneficial owners,
          respectively, of the Outstanding Company Common Stock and Company
          Voting Securities immediately prior to such acquisition in
          substantially the same proportion as their ownership, immediately
          prior to such acquisition, of the Outstanding Company Common Stock and
          Company Voting Securities, as the case may be, or (z) Gabelli Funds,
          LLC, GAMCO Investors, Inc., Gabelli Advisers, Inc., MJG Associates,
          Inc., Gabelli Group Capital Partners, Inc., Gabelli Asset Management
          Inc., Marc J. Gabelli and/or Mario J. Gabelli and/or any affiliate of
          any of the foregoing, in the case of each of such clauses (x), (y) and
          (z), shall not constitute a Change of Control; or

     (b)  Individuals who, as of the date hereof, constitute the Board (the
          "Incumbent Board") cease for any reason to constitute at least a
          majority of the Board, provided that any individual becoming a
          director subsequent to the date hereof whose election or nomination
          for election by the Company's shareholders, was approved by a vote of
          at least a majority of the directors then comprising the Incumbent
          Board shall be considered as though such individual were a member of
          the Incumbent Board, but excluding, for this purpose, any such
          individual whose initial assumption of office is in connection with an
          actual or threatened election contest relating to the election of the
          Directors of the Company (as such terms are used in Rule 14a-11 of
          Regulation 14A promulgated under the Exchange Act); or

     (c)  Consummation by the Company of a reorganization, merger or
          consolidation (a "Business Combination"), in each case, with respect
          to which all or substantially all of the individuals and entities who
          were the respective beneficial owners of the Outstanding Company
          Common Stock and Company Voting Securities immediately prior to such
          Business Combination do not, following such Business Combination,
          beneficially own, directly or indirectly, more than 60% of,
          respectively, the then outstanding shares of common stock and the
          combined voting power of the then outstanding voting securities
          entitled to vote generally in the election of directors, as the case
          may be, of the corporation resulting from Business Combination in
          substantially the same proportion as their ownership immediately prior
          to such Business Combination of the Outstanding Company Common Stock
          and Company Voting Securities, as the case may be; or

     (d)  (i) a complete liquidation or dissolution of the Company or of (ii)
          sale or other disposition of all or substantially all of the assets of
          the Company other than to a corporation with respect to which,
          following such sale or disposition, more than 60% of, respectively,
          the

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          then outstanding shares of common stock and the combined voting power
          of the then outstanding voting securities entitled to vote generally
          in the election of directors is then owned beneficially, directly or
          indirectly, by all or substantially all of the individuals and
          entities who were the beneficial owners, respectively, of the
          Outstanding Company Common Stock and Company Voting Securities
          immediately prior to such sale or disposition in substantially the
          same proportion as their ownership of the Outstanding Company Common
          Stock and Company Voting Securities, as the case may be, immediately
          prior to such sale or disposition.

3.   EMPLOYMENT PERIOD. The Company hereby agrees to continue the Executive in
     its employ, and the Executive hereby agrees to remain in the employ of the
     Company, for the period commencing on the Effective Date and ending on the
     first anniversary of such date (the "Employment Period").

4.   TERMS OF EMPLOYMENT.

     (a)  Position and Duties.

          (i)  During the Employment Period, (A) the Executive's position
               (including status, offices, titles and reporting requirements),
               authority, duties and responsibilities shall be at least
               commensurate in all material respects with those held, exercised
               and assigned at any time during the 90-day period immediately
               preceding the Effective Date and (B) the Executive's services
               shall be performed at the location where the Executive was
               employed immediately preceding the Effective Date or any office
               or location less than 35 miles from such location.

          (ii) During the Employment Period, the Executive agrees to devote her
               reasonable full time and attention during normal business hours
               to the business and affairs of the Company and, to the extent
               necessary to discharge the responsibilities assigned to the
               Executive hereunder, to use the Executive's best efforts to
               perform faithfully and efficiently such responsibilities. During
               the Employment Period it shall not be a violation of this
               Agreement for the Executive to (A) serve on civic or charitable
               boards or committees, (B) serve on corporate boards or committees
               other than the Company's to the extent approved by the Company's
               Board, (C) deliver lectures, fulfill speaking engagements or
               teach at educational institutions and (D) manage personal
               investments, so long as such activities do not interfere with the
               performance of the Executive's responsibilities as an employee of
               the Company in accordance with this Agreement. It is expressly
               understood and agreed that to the extent that any such activities
               have been conducted by the Executive prior to the Effective Date,
               the continued conduct of such activities (or the conduct of
               activities similar in nature and scope thereto) subsequent to the
               Effective Date shall not thereafter be deemed to interfere with
               the performance of the Executive's responsibilities to the
               Company.

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     (b)  Compensation.

          (i)  Base Salary. During the Employment Period, the Executive shall
               receive an annual base salary ("Annual Base Salary"), which shall
               be paid at a monthly rate, at least equal to twelve times the
               current monthly base salary being paid to the Executive by the
               Company and its affiliated companies as of the date of this
               Agreement. During the Employment Period, the Annual Base Salary
               shall be reviewed at least annually and may be increased at any
               time and from time to time in the sole discretion of the Board.
               Any increase in Annual Base Salary shall not serve to limit or
               reduce any other obligation to the Executive under this
               Agreement. Annual Base Salary shall not be reduced after any such
               increase and the term Annual Base Salary as utilized in this
               Agreement shall refer to Annual Base Salary as so increased. As
               used in this Agreement, the term "affiliated companies" includes
               any company controlled by, controlling or under common control
               with the Company.

          (ii) Annual Bonus. In addition to Annual Base Salary, the Executive
               may be awarded, for each fiscal year beginning or ending during
               the Employment Period, an annual bonus (the "Annual Bonus") in
               cash as determined by the Board of Directors, in its sole
               discretion.

          (iii) Incentive, Savings and Retirement Plans. In addition to Annual
               Base Salary and Annual Bonus payable as hereinabove provided, the
               Executive shall be entitled to participate during the Employment
               Period in all incentive, savings and retirement plans, practices,
               policies and programs applicable generally to other peer
               executives of the Company and its affiliated companies.

          (iv) Welfare Benefit Plans. During the Employment Period, the
               Executive and/or the Executive's family, as the case may be,
               shall be eligible for participation in and shall receive all
               benefits under welfare benefit plans, practices, policies and
               programs provided by the Company and its affiliated companies
               (including, without limitation, medical, prescription, dental,
               disability, salary continuance, employee life, group life,
               accidental death and travel accident insurance plans and
               programs) to the extent generally applicable to other peer
               executives of the Company and its affiliated companies.

          (v)  Expenses. During the Employment Period, the Executive shall be
               entitled to receive reimbursement for all reasonable documented
               expenses incurred by the Executive in accordance with the
               policies, practices and procedures of the Company and its
               affiliated companies.

          (vi) Fringe Benefits. During the Employment Period, the Executive
               shall be entitled to fringe benefits in accordance with the
               plans, practices, programs and policies of the Company and its
               affiliated companies in effect.

          (vii) Vacation. During the Employment Period, the Executive shall be
               entitled to paid vacation in accordance with the plans, policies,
               programs and practices

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          of the Company and its affiliated companies as in effect.

5. TERMINATION OF EMPLOYMENT.

     (a)  Death or Disability. The Executive's employment shall terminate
          automatically upon the Executive's death during the Employment Period.
          If the Company determines in good faith that the Disability of the
          Executive has occurred during the Employment Period (pursuant to the
          definition of Disability set forth below), it may give to the
          Executive written notice in accordance with Section 15(b) of this
          Agreement of its intention to terminate the Executive's employment. In
          such event, the Executive's employment with the Company shall
          terminate effective on the 30th day after receipt of such notice by
          the Executive (the "Disability Effective Date"), provided that, within
          the 30 days after such receipt, the Executive shall not have returned
          to full-time performance of the Executive's duties. For purposes of
          this Agreement, "Disability" means the absence of the Executive from
          the Executive's duties with the Company on a full-time basis for 120
          consecutive business days as a result of incapacity due to mental or
          physical illness determined by a physician selected by the Company or
          its insurers and acceptable to the Executive or Executive's legal
          representative (such agreement as to acceptability not to be withheld
          unreasonably).

     (b)  Cause. The Company may terminate the Executive's employment during the
          Employment Period for Cause. For purposes of this Agreement, "Cause"
          means (i) the Executive's continued documented failure to perform her
          reasonably assigned duties (other than any such failure resulting from
          incapacity due to physical or mental illness or any failure after the
          Executive gives notice of termination for Good Reason), which failure
          is not cured within 60 days after written notice for substantial
          performance is received by the Executive from the Board which
          identifies the manner in which the Board believes the Executive has
          not substantially performed the Executive's duties, (ii) the Executive
          being convicted of a felony, or (iii) the Executive's engagement in
          illegal conduct or gross misconduct injurious to the Company.

     (c)  Good Reason. The Executive's employment may be terminated during the
          Employment Period by the Executive for Good Reason. For purposes of
          this Agreement, "Good Reason" means:

          (i)  the assignment to the Executive of any duties inconsistent in any
               material respect with the Executive's position (including
               offices, titles and reporting requirements), authority or
               responsibilities as contemplated by Section 4(a) of this
               Agreement, or any other action by the Company which results in a
               material diminution in such position, authority or
               responsibilities;

          (ii) a reduction in the Executive's Annual Base Salary as in effect on
               the date of this Agreement or as the same was or may be increased
               thereafter from time to time;

          (iii) the Company's requiring the Executive to be based at any office
               or location other than that described in Section 4(a)(i)(B)
               hereof;

          (iv) any purported termination by the Company of the Executive's
               employment otherwise than as expressly permitted by this
               Agreement; or

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          (v)  any failure by the Company to comply with and satisfy Section
               14(c) of this Agreement.

     (d)  Notice of Termination. Any termination by the Company for Cause or by
          the Executive for Good Reason shall be communicated by Notice of
          Termination to the other party hereto given in accordance with Section
          15(b) of this Agreement. For purposes of this Agreement, a "Notice of
          Termination" means a written notice which (i) indicates the specific
          termination provision in this Agreement relied upon, (ii) to the
          extent applicable sets forth in reasonable detail the facts and
          circumstances claimed to provide a basis for termination of the
          Executive's employment under the provision so indicated and (iii) if
          the Date of Termination (as defined below) is other than the date of
          receipt of such notice, specifies the termination date (which date
          shall be not more than fifteen days after the giving of such notice).

     (e)  Date of Termination. "Date of Termination" means the date of receipt
          of the Notice of Termination or any later date specified therein, as
          the case may be; provided, however, that (i) if the Executive's
          employment is terminated by the Company other than for Cause or
          Disability, the Date of Termination shall be the date on which the
          Company notifies the Executive of such termination and (ii) if the
          Executive's employment is terminated by reason of death or Disability,
          the Date of Termination shall be the date of death of the Executive or
          the Disability Effective Date, as the case may be.

6.   OBLIGATIONS OF THE COMPANY UPON TERMINATION.

     (a)  Death. If the Executive's employment is terminated by reason of the
          Executive's death during the Employment Period, this Agreement shall
          terminate without further obligations to the Executive's legal
          representatives under this Agreement, other than the following
          obligations: (i) payment of the Executive's Annual Base Salary through
          the Date of Termination to the extent not theretofore paid, (ii)
          payment of any compensation previously deferred by the Executive
          (together with any accrued interest thereon) and not yet paid by the
          Company and any accrued vacation pay not yet paid by the Company (the
          amounts described in paragraphs (i) and (ii) are hereafter referred to
          as "Accrued Obligations"). All Accrued Obligations shall be paid to
          the Executive's estate or beneficiary, as applicable, in a lump sum in
          cash within 30 days of the Date of Termination. In addition to the
          Accrued Obligations, in the event (A) the Board subsequently approves
          the payment of an annual bonus to members of management for the fiscal
          year in which the Date of Termination occurred and (B) the Executive
          was employed at least one quarter of such fiscal year, then the
          Executive's estate or beneficiary shall be entitled to receive an
          additional payment equal to the bonus that such Executive would have
          received for such fiscal year (as determined by the Board) multiplied
          by a fraction, the numerator of which is the number of days in such
          fiscal year for which the Executive was actually employed and the
          denominator is 365 days.

     (b)  Disability. If the Executive's employment is terminated by reason of
          the Executive's Disability during the Employment Period, this
          Agreement shall terminate without further obligations to the
          Executive, other than for Accrued Obligations. All Accrued Obligations
          shall be paid to the Executive in a lump sum in cash within 30 days of
          the Date of Termination. In addition to the Accrued Obligations, in
          the event (A) the Board subsequently approves the payment of an annual
          bonus to members of management for the

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          fiscal year in which the Date of Termination occurred and (B) the
          Executive was employed at least one quarter of such fiscal year, then
          the Executive shall be entitled to receive an additional payment equal
          to the bonus that such Executive would have received for such fiscal
          year (as determined by the Board) multiplied by a fraction, the
          numerator of which is the number of days in such fiscal year for which
          the Executive was actually employed and the denominator is 365 days.

     (c)  Cause; Other than for Good Reason. If the Executive's employment shall
          be terminated for Cause during the Employment Period, this Agreement
          shall terminate without further obligations to the Executive other
          than the obligation to pay to the Executive Annual Base Salary through
          the Date of Termination plus the amount of any compensation previously
          deferred by the Executive, in each case to the extent theretofore
          unpaid. If the Executive terminates employment during the Employment
          Period other than for Good Reason, this Agreement shall terminate
          without further obligations to the Executive, other than for Accrued
          Obligations. In such case, all Accrued Obligations shall be paid to
          the Executive in a lump sum in cash within 30 days of the Date of
          Termination.

     (d)  Good Reason; Other Than for Cause or Disability. If, during the
          Employment Period, the Company shall terminate the Executive's
          employment other than for Cause or Disability, or the Executive shall
          terminate employment during the Employment Period for Good Reason, the
          Company shall pay to the Executive in a lump sum in cash within 60
          days after the Date of Termination, and subject to receiving an
          executed irrevocable Release as described in Section 11, the aggregate
          of the following amounts:

          A.   all Accrued Obligations; and

          B.   the product of (x) one (1) and (y) the sum of (i) Annual Base
               Salary and (ii) the Annual Bonus paid or payable (including any
               bonus or portion thereof which has been earned but deferred) for
               the most recently completed fiscal year.

          In addition, for the remainder of the Employment Period (if the
          termination took place during the Employment Period under this Section
          6), the Company shall continue benefits to the Executive and/or the
          Executive's family at least equal to those which would have been
          provided to them in accordance with the plans, programs, practices and
          policies described in Section 4(b)(iv) of this Agreement if the
          Executive's employment had not been terminated in accordance with the
          most favorable plans, practices, programs or policies of the Company
          and its affiliated companies applicable generally to other peer
          executives and their families during the 90-day period immediately
          preceding the Effective Date or, if more favorable to the Executive,
          as in effect generally at any time thereafter with respect to other
          peer executives of the Company and its affiliated companies and their
          families. For purposes of determining eligibility of the Executive for
          retiree benefits pursuant to such plans, practices, programs and
          policies, the Executive shall be considered to have remained employed
          until the end of the Employment Period and to have retired on the last
          day of such period.

          Notwithstanding the foregoing, if a Change of Control or other event
          shall have occurred before the Date of Termination that would result
          in the Executive becoming entitled to receive payments under this
          Agreement or any other arrangement that would be "parachute payments",
          as defined in Section 280G of the Internal Revenue Code of 1986, as
          amended

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          from time to time (the "Code"), the Company shall not be obligated to
          make such payments to the Executive to the extent necessary to
          eliminate any "excess parachute payments" as defined in said Section
          280G; provided, however, that if the Executive would be better off by
          at least $25,000 on an after-tax basis by receiving the full amount of
          the parachute payments as opposed to the cut back amount
          (notwithstanding a 20% excise tax) the Executive shall receive the
          full amount of the parachute payments.

7.   SEVERANCE BENEFITS. Notwithstanding anything contained in this Agreement to
     the contrary, if, before or after the Employment Period, the Executive's
     employment is terminated by the Company for reason other than misconduct,
     the Company shall pay to the Executive one year's salary continuation and
     continue medical and dental benefits during such continuation period.

8.   NON-EXCLUSIVITY OF RIGHTS. Nothing in this Agreement shall prevent or limit
     the Executive's continuing or future participation in any benefit, bonus,
     incentive or other plans, programs, policies or practices, provided by the
     Company or any of its affiliated companies and for which the Executive may
     qualify, nor shall anything herein limit or otherwise affect such rights as
     the Executive may have under any other agreements with the Company or any
     of its affiliated companies. Amounts which are vested benefits or which the
     Executive is otherwise entitled to receive under any plan, policy, practice
     or program of the Company or any of its affiliated companies at or
     subsequent to the Date of Termination shall be payable in accordance with
     such plan, policy, practice or program except as explicitly modified by
     this Agreement.

9.   FULL SETTLEMENT. The Company's obligation to make the payments provided for
     in this Agreement and otherwise to perform its obligations hereunder shall
     not be affected by any set-off, counterclaim, recoupment, defense or other
     claim, right or action which the Company may have against the Executive or
     others. In no event shall the Executive be obligated to seek other
     employment or take any other action by way of mitigation of the amounts
     payable to the Executive under any of the provisions of this Agreement. The
     Company agrees to pay, to the full extent permitted by law, all legal fees
     and expenses which the Executive may reasonably incur as a result of any
     contest (but only in the event the Executive is successful on the merits of
     such contest) by the Company, the Executive or others of the validity or
     enforceability of, or liability under, any provision of this Agreement or
     any guarantee of performance thereof, plus in each case interest at the
     applicable Federal rate provided for in Section 7872(f)(2) of the Internal
     Revenue Code of l986, as amended (the "Code").

10.  OTHER AGREEMENTS. The parties agree that this Agreement supersedes and
     replaces any and all other agreements, policies, understandings or letters
     (including but not limited to employment agreements, severance agreements
     and job abolishment policies) between the parties related to the subject
     matter hereof.

11.  RELEASE. Prior to receipt of the payment described in Sections 6(d) or 7,
     the Executive shall execute and deliver a Release to the Company as
     follows:

          The Executive hereby fully, forever, irrevocably and unconditionally
          releases, remises and discharges the Company, its officers, directors,
          stockholders, corporate affiliates, agents and employees from any and
          all claims, charges, complaints, demands, actions, causes of action,
          suits, rights, debts, sums of money, costs, accounts, reckonings,
          covenants, contracts, agreements, promises, doings, omissions,
          damages, executions, obligations, liabilities and expenses (including
          attorneys' fees and costs), of every kind and nature which she ever
          had or now has against the Company, its officers, directors,
          stockholders, corporate affiliates, agents and employees, including,
          but not limited to, all

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          claims arising out of her employment, all employment discrimination
          claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C.
          2000e et seq., the Age Discrimination in Employment Act, 29 U.S.C.,
          621 et seq., the Americans With Disabilities Act, 42 U.S.C., 12101
          et seq., the New Hampshire Law Against Discrimination, N.H. Rev. Stat.
          Ann. 354-A:1 et seq. and similar state antidiscrimination laws,
          damages arising out of all employment discrimination claims, wrongful
          discharge claims or other common law claims and damages, provided,
          however, that nothing herein shall release the Company from
          Executive's Stock Option Agreements or Restricted Stock Agreements.

     The Release shall also contain, at a minimum, the following language:

               The Executive acknowledges that she has been given twenty-one
               (21) days to consider the terms of this Release and that the
               Company advised her to consult with an attorney of her own
               choosing prior to signing this Release. The Executive may revoke
               this Release for a period of seven (7) days after the execution
               of the Release and the Release shall not be effective or
               enforceable until the expiration of this seven (7) day revocation
               period.

     At the same time, the Company shall execute and deliver a Release to the
Executive as follows:

          The Company hereby fully, forever, irrevocably and unconditionally
          releases, remises and discharges the Executive from any and all claims
          which it ever had or now has against the Executive, other than for
          intentional harmful acts.

12.  CONFIDENTIAL INFORMATION. The Executive shall hold in a fiduciary capacity
     for the benefit of the Company all secret or confidential information,
     knowledge or data relating to the Company or any of its affiliated
     companies, and their respective businesses, which shall have been obtained
     by the Executive during the Executive's employment by the Company or any of
     its affiliated companies and which shall not be or become public knowledge
     (other than by acts by the Executive or representatives of the Executive in
     violation of this Agreement). After termination of the Executive's
     employment with the Company, the Executive shall not, without the prior
     written consent of the Company, communicate or divulge any such
     information, knowledge or data to anyone other than the Company and those
     designated by it. In no event shall an asserted violation of the provisions
     of this Section 12 constitute a basis for deferring or withholding any
     amounts otherwise payable to the Executive under this Agreement.

13.  ARBITRATION. Any controversy or claim arising out of this Agreement shall
     be settled by binding arbitration in accordance with the commercial rules,
     policies and procedures of the American Arbitration Association. Judgment
     upon any award rendered by the arbitrator may be entered in any court of
     law having jurisdiction thereof. Arbitration shall take place in Nashua,
     New Hampshire at a mutually convenient location.

14.  SUCCESSORS.

     (a)  This Agreement is personal to the Executive and without the prior
          written consent of the Company shall not be assignable by the
          Executive otherwise than by will or the laws of descent and
          distribution. This Agreement shall inure to the benefit of and be
          enforceable by the Executive's legal representatives.

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     (b)  This Agreement shall inure to the benefit of and be binding upon the
          Company and its successors and assigns.

     (c)  The Company will require any successor (whether direct or indirect, by
          purchase, merger, consolidation or otherwise) to all or substantially
          all of the business and/or assets of the Company to assume expressly
          and agree to perform this Agreement in the same manner and to the same
          extent that the Company would be required to perform it if no such
          succession had taken place. As used in this Agreement, "Company" shall
          mean the Company as hereinbefore defined and any successor to its
          business and/or assets as aforesaid which assumes and agrees to
          perform this Agreement by operation of law or otherwise.

15.  MISCELLANEOUS.

     (a)  This Agreement shall be governed by and construed in accordance with
          the laws of the Commonwealth of Massachusetts, without reference to
          principles of conflict of laws. The captions of this Agreement are not
          part of the provisions hereof and shall have no force or effect. This
          Agreement may not be amended or modified otherwise than by a written
          agreement executed by the parties hereto or their respective
          successors and legal representatives.

     (b)  All notices and other communications hereunder shall be in writing and
          shall be given by hand delivery to the other party or by registered or
          certified mail, return receipt requested, postage prepaid, addressed
          as follows:

               If to the Executive:

                    Thomas Kubis
                    3088 Federal Boulevard
                    Morristown, Tennessee 37814

               If to the Company:

                    Nashua Corporation
                    11 Trafalgar Square
                    Nashua, New Hampshire 03063
                    Attention: President

          or to such other address as either party shall have furnished to the
          other in writing in accordance herewith. Notice and communications
          shall be effective when actually received by the addressee.

     (c)  The invalidity or unenforceability of any provision of this Agreement
          shall not affect the validity or enforceability of any other provision
          of this Agreement.

     (d)  The Company may withhold from any amounts payable under this Agreement
          such Federal, state or local taxes as shall be required to be withheld
          pursuant to any applicable law or regulation.

     (e)  The Executive's failure to insist upon strict compliance with any
          provision hereof or the

                                      -10-

<PAGE>

          failure to assert any right the Executive may have hereunder,
          including, without limitation, the right to terminate employment for
          Good Reason pursuant to Section 5(c)(i)-(v), shall not be deemed to be
          a waiver of such provision or right or any other provision or right
          thereof.

     (f)  This Agreement contains the entire understanding of the Company and
          the Executive with respect to the subject matter hereof. The Executive
          and the Company acknowledge that the employment of the Executive by
          the Company is "at will" and, prior to the Effective Date, both the
          Executive's employment and this Agreement may be terminated by either
          the Company or the Executive at any time. In the event that this
          Agreement is terminated by the Company prior to the Effective Date and
          the Executive remains employed by the Company, the Executive would be
          entitled to the same severance benefits as set forth in Section 7 of
          this Agreement.

                  [Remainder of Page Intentionally Left Blank]

                                      -11-

<PAGE>

     IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand
and, pursuant to the authorization from its Board of Directors, the Company has
caused these presents to be executed in its name on its behalf, all as of the
day and year first above written.

NASHUA CORPORATION                      EXECUTIVE

By /s/ Thomas G. Brooker                /s/ Thomas M. Kubis
   ----------------------------------   ----------------------------------------
Name: Thomas G. Brooker                 Thomas Kubis
Title: President and
       Chief Executive Officer

                                      -12-<PAGE>

                                                                    Exhibit 10.3

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement"), made as of this 1st day of
September, 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 Todd McKeown, residing at
2408 Comstock Court, Naperville, Illinois 60564 (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 September 1, 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 Sales and Marketing. The Executive shall be based in the Company's
office in Park Ridge, Illinois. 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 $250,000, for the period commencing on the
Commencement Date.

          3.2 Annual Bonus. Beginning January 1, 2007, the Executive shall be
eligible to receive an annual cash bonus, payable as a percentage (60%) 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 Development
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/ Todd McKeown
                                        ----------------------------------------
                                        Todd McKeown

                                       -4-

<PAGE>

                                   SCHEDULE A

                                Prior Agreements

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