Document:

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                                                                    EXHIBIT 4.05

                          CONSENT AND FOURTH AMENDMENT
                               TO CREDIT AGREEMENT

         This CONSENT AND FOURTH AMENDMENT TO CREDIT AGREEMENT, dated as of
December 31, 2003 (the "CONSENT AND FOURTH AMENDMENT"), is entered into among
NASHUA CORPORATION, a Massachusetts corporation (the "BORROWER"), whose address
is 11 Trafalgar Square, 2nd Floor, Nashua, New Hampshire 03063, FLEET NATIONAL
BANK, a national Banking association ("FLEET") and LASALLE BANK NATIONAL
ASSOCIATION, a national Banking association ("LASALLE", TOGETHER WITH FLEET, THE
"BANKS" AND AS AGENT FOR THE BANKS "AGENT"), whose address is 135 South LaSalle
Street, Chicago, Illinois 60603.

                                R E C I T A L S:

         A.       The Borrower and the Banks entered into that certain Credit
Agreement dated as of March 1, 2002, as amended by that certain First Amendment
to Credit Agreement, dated as of July 15, 2003, that certain Waiver and Second
Amendment to Credit Agreement, dated as of July 24, 2003 and that certain Third
Amendment to Credit Agreement, dated as of September 25, 2003 (as further
amended, restated and modified from time to time, the "CREDIT AGREEMENT").

         B.       At the present time the Borrower requests, and the Banks are
agreeable to, an adjustment to the Funded Debt to EBITDA financial covenant
contained in Section 10.6.2 and consent to the inclusion of certain items within
the definition of Adjusted EBITDA, pursuant to the terms and conditions
hereinafter set forth.

         NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Borrower and the Banks hereby agree as follows:

                              A G R E E M E N T S:

         1.       RECITALS

         The foregoing Recitals are hereby made a part of this Consent and
Fourth Amendment.

         2.       DEFINITIONS

         Capitalized words and phrases used herein without definition shall have
the respective meanings ascribed to such words and phrases in the Credit
Agreement.

         3.       AMENDMENT TO THE CREDIT AGREEMENT

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         Funded Debt to EBITDA. Section 10.6.2 of the Credit Agreement is hereby
amended by inserting the following provision after the Funded Debt to EBITDA
Ratio chart:

                  "provided, however, that (i) for the Computation Period ended
         December 31, 2003 only, the Funded Debt to EBITDA Ratio shall be
         computed as the Funded Debt to Adjusted EBITDA Ratio, (ii) the Borrower
         shall not thereafter be permitted to use Adjusted EBITDA for any
         subsequent calculation of the Funded Debt to EBITDA Ratio, and (iii)
         for the Computation Period ended December 31, 2003 only, the Funded
         Debt to Adjusted EBITDA Ratio shall not exceed the ratio of 2.75 to
         1.00."

         4.       CONSENT. The Banks party hereto each hereby consent that for
financial covenant compliance for the Computation Period ended December 31, 2003
only, the following items, each recorded in the Fiscal Quarter ended December
31, 2003, shall be included within the definition of Adjusted EBITDA: (i)
severance charges; and (ii) a one-time, non-cash charge for retiree medical
benefits.

         5.       REPRESENTATIONS AND WARRANTIES

         To induce the Banks to enter into this Consent and Fourth Amendment,
the Borrower hereby certifies, represents and warrants to the Banks that:

                  5.1      Organization

         The Borrower is a corporation duly organized, existing and in good
standing under the laws of the Commonwealth of Massachusetts, with full and
adequate corporate power to carry on and conduct its business as presently
conducted. The Borrower is duly licensed or qualified in all foreign
jurisdictions wherein the nature of its activities require such qualification or
licensing. The exact legal name of the Borrower is as set forth in the preamble
of this Consent and Fourth Amendment, and the Borrower currently does not
conduct, nor has it during the last five (5) years conducted, business under any
other name or trade name, except that some of its operations were conducted
under the name Rittenhouse, Rittenhouse Paper Company or Rittenhouse, L.L.C.
prior to 2002. The Borrower will not change its name, its organizational
identification number, its type of organization, its jurisdiction of
organization or other legal structure.

                  5.2      Authorization

         The Borrower is duly authorized to execute and deliver this Consent and
Fourth Amendment and is and will continue to be duly authorized to borrow monies
under the Credit Agreement, as amended hereby, and to perform its obligations
under the Credit Agreement, as amended hereby.

                  5.3      No Conflicts

         The execution and delivery of this Consent and Fourth Amendment and the
performance by the Borrower of its obligations under the Credit Agreement, as
amended

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hereby, do not and will not conflict with any provision of law or of the
articles of incorporation of the Borrower or of any agreement binding upon the
Borrower.

                  5.4      Validity and Binding Effect

         The Credit Agreement, as amended hereby, is a legal, valid and binding
obligation of the Borrower, enforceable against the Borrower in accordance with
its terms, except as enforceability may be limited by Bankruptcy, insolvency or
other similar laws of general application affecting the enforcement of
creditors' rights or by general principles of equity limiting the availability
of equitable remedies.

                  5.5      Compliance with Credit Agreement

         The representation and warranties set forth in Section 9 of the Credit
Agreement, as amended hereby, are true and correct with the same effect as if
such representations and warranties had been made on the date hereof, with the
exception that all references to the financial statements shall mean the
financial statements most recently delivered to the Banks and except for such
changes as are specifically permitted under the Credit Agreement. In addition,
the Borrower has complied with and is in compliance with all of the covenants
set forth in the Credit Agreement, as amended hereby, including, but not limited
to, those set forth in Section 10 thereof.

                  5.6      No Event of Default

         As of the date hereof, no Event of Default under Section 12 of the
Credit Agreement, as amended hereby, or event or condition which, with the
giving of notice or the passage of time, or both, would constitute an Event of
Default, has occurred or is continuing.

         6.       CONDITIONS PRECEDENT

         This Consent and Fourth Amendment shall become effective as of the date
above first written after receipt by the Banks of the following documents (and
the date on which all such conditions precedent have been satisfied or waived by
the Banks shall be called the "CONSENT AND FOURTH AMENDMENT EFFECTIVE DATE"):

                  6.1      Consent and Fourth Amendment

         This Consent and Fourth Amendment executed by the Borrower and the
Banks.

                  6.2      Resolutions

         A certified copy of resolutions of the Board of Directors and/or
shareholders of the Borrower authorizing the execution, delivery and performance
of this Consent and Fourth Amendment and the related loan documents.

                  6.3      Other Documents

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         Such other documents, certificates and/or opinions of counsel as the
Banks may request.

         7.       GENERAL

                  7.1      Governing Law; Severability

         This Consent and Fourth Amendment shall be construed in accordance with
and governed by the laws of Illinois. Wherever possible each provision of the
Credit Agreement and this Consent and Fourth Amendment shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of the Credit Agreement and this Consent and Fourth Amendment shall be
prohibited by or invalid under such law, such provision shall be ineffective to
the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of the Credit Agreement and this
Consent and Fourth Amendment.

                  7.2      Successors and Assigns

         This Consent and Fourth Amendment shall be binding upon the Borrower
and the Banks and their respective successors and assigns, and shall inure to
the benefit of the Borrower and the Banks and the successors and assigns of the
Banks.

                  7.3      Continuing Force and Effect of Loan Documents

         Except as specifically modified or amended by the terms of this Consent
and Fourth Amendment, all other terms and provisions of the Credit Agreement and
the other Loan Documents are incorporated by reference herein, and in all
respects, shall continue in full force and effect. The Borrower, by execution of
this Consent and Fourth Amendment, hereby reaffirms, assumes and binds itself to
all of the obligations, duties, rights, covenants, terms and conditions that are
contained in the Credit Agreement and the other Loan Documents.

                  7.4      Financing Statements

         The Borrower hereby irrevocably authorizes the Banks at any time and
from time to time to file in any jurisdiction any initial UCC financing
statements and/or amendments thereto that (a) describe the Collateral, and (b)
contain any other information required by part 5 of Article 9 of the UCC for the
sufficiency or filing office acceptance of any financing statement or amendment.

                  7.5      References to Credit Agreement

         Each reference in the Credit Agreement to "this Agreement",
"hereunder", "hereof", or words of like import, and each reference to the Credit
Agreement in any and all instruments or documents delivered in connection
therewith, shall be deemed to refer to the Credit Agreement, as amended hereby.

                  7.6      Expenses

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         The Borrower shall pay all costs and expenses in connection with the
preparation of this Consent and Fourth Amendment and other related loan
documents, including, without limitation, reasonable attorneys' fees and time
charges of attorneys who may be employees of the Banks or any affiliate or
parent of the Banks. The Borrower shall pay any and all stamp and other taxes,
UCC search fees, filing fees and other costs and expenses in connection with the
execution and delivery of this Consent and Fourth Amendment and the other
instruments and documents to be delivered hereunder, and agrees to save the
Banks harmless from and against any and all liabilities with respect to or
resulting from any delay in paying or omission to pay such costs and expenses.

                  7.7      Counterparts

         This Consent and Fourth Amendment may be executed in any number of
counterparts, all of which shall constitute one and the same agreement.

                            [Signature Page Follows]

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         IN WITNESS WHEREOF, the parties hereto have executed this Consent and
Fourth Amendment to Credit Agreement as of the date first above written.

WITNESS:                              NASHUA CORPORATION

/s/ Margaret M. Callan                By:  /s/ John L. Patenaude
                                      Name: John L. Patenaude
                                      Title:    Vice President - Finance, Chief
                                                Financial Officer and Treasurer

WITNESS:                              LASALLE BANK NATIONAL
                                      ASSOCIATION, as Agent
/s/ Signature Illegible

                                      By: /s/ Brian Sullivan
                                      Name:  Brian Sullivan
                                      Title: Vice President

WITNESS:                              LASALLE BANK NATIONAL
                                      ASSOCIATION, as Issuing Bank and as a
                                      Bank
/s/ Signature Illegible
                                      By: /s/ Brian Sullivan
                                      Name:  Brian Sullivan
                                      Title: Vice President

WITNESS:                              FLEET NATIONAL BANK, as a Bank

/s/ Signature Illegible               By:  /s/ Kenneth R. Sheldon
                                      Name: Kenneth R. Sheldon
                                      Title: Vice President<PAGE>

                                                                   EXHIBIT 10.08

                               NASHUA CORPORATION

                            MANAGEMENT INCENTIVE PLAN

1.    PURPOSE

      The purposes of the Management Incentive Plan ("MIP" or the "Plan") for
      Nashua Corporation (the "Company") are as follows:

      (a)   to attract and retain the best possible management talent;

      (b)   to permit management of the Company to share in its profits;

      (c)   to promote the success of the Company; and

      (d)   to link management rewards closely to individual and Company
            performance.

2.    DEFINITIONS

      (a)   "Code" means the Internal Revenue Code of 1986, as amended.

      (b)   "Committee" means the Leadership and Compensation Committee of the
            Company's Board of Directors.

      (c)   "Company" means Nashua Corporation.

      (d)   "Division Operating Performance" means the financial performance of
            each division of Nashua Corporation as reported by the Company in
            its public filings.

      (e)   "DPO" means management performance objectives which are specific
            performance objectives for certain division managers approved by
            the appropriate Division President and/or Corporate Leadership staff
            who directly or indirectly supervises the Participant. Up to twenty
            percent of the Participant's management incentive payment may be
            based upon successful achievement of the specific Performance
            Objectives.

      (f)   "MIP" means the Management Incentive Plan of the Company.

      (g)   "Participant" means any employee of the Company or any of its
            subsidiaries who has been designated as a Participant in the Plan in
            accordance with Article 3.

      (h)   "Performance Objectives" means one or more pre-established
            performance objectives, including PTIP and DPO.

      (i)   "Plan" means the Management Incentive Plan for Nashua Corporation.

      (j)   "Plan Year" means the fiscal year of the Company.
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                            MANAGEMENT INCENTIVE PLAN
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      (k)   "PTIP" means pretax incremental profit from the Company or Division
            Operating Performance for the Company's fiscal year as calculated
            according to generally accepted accounting practices (GAAP).

      (l)   "Total Company Operating Performance" means the financial
            performance of all of Nashua Corporation and its divisions during
            the Company's fiscal year.

3.    PARTICIPATION

            Participation in the Plan is limited to key managers of the Company
            who have been recommended as Participants by the Officers of the
            Company and approved by the Committee. Participants may include, but
            are not limited to: Corporate Staff and Division Officers of the
            Company, non-officer General Managers and key functional Directors
            and Managers. The recommendation list is reviewed and approved by
            the Committee at the beginning of each Plan Year. Any changes to the
            list of Participants during any Plan Year will be recommended by the
            Chief Executive Officer and approved by the Committee.

4.    ANNUAL BONUS OPPORTUNITY

      Participants may have the opportunity to earn an annual variable bonus.

      (a)   Target Bonus

            The Target Bonus for each Participant is established each Plan Year.
            Bonuses will be capped based on award level at a minimum of 190% of
            Target Bonus at 150% of Annual Pretax Budget.

      (b)   Bonus Payout

            (i)   A Participant's annual bonus payout is based on the overall
                  Company's performance and for business unit performance where
                  appropriate, the business unit performance and pre-established
                  Performance Objectives.

            (ii)  Within the first 90 days of the beginning of each Plan Year,
                  Performance Objectives for Participants will be established.
                  Specific Performance Objectives will vary based on the
                  specific business strategy of the Company and the business
                  unit, and may include such measures as: PTIP, DPO.

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                            MANAGEMENT INCENTIVE PLAN
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            (iii) Bonus payouts will be determined based on the following
                  schedule:

                  -     BONUS AT TARGET. The bonus award of an individual will
                        meet the "target" level ranging from 15% to 50% of base
                        salary, if the budgeted pretax income is achieved for
                        his/her division and/or if corporate budgeted pretax
                        income is achieved. In the case of an individual at the
                        15% award level, up to 20% of the award can be DPO
                        based.

                  -     BONUS BELOW TARGET. In the event of below budget
                        performance, the threshold for a payout is 85% of
                        budgeted consolidated pretax income. In the event that
                        corporate performance is 84% or lower than budgeted
                        pretax income, no employee of either the corporate
                        office or of any division will receive an income based
                        bonus. For pretax income performance between 85% and
                        100%, bonuses will be paid at 75% and 100%,
                        respectively, with interpolation in between.

                  -     BONUS ABOVE TARGET. In the event of above budgeted
                        performance, a higher percentage of incremental pretax
                        income will fund the bonus award pool based on award
                        level. Bonus will not exceed 190% of the bonus at
                        target and maximum bonus is achieved for 150% of
                        budgeted pretax income.

            (iv)  Bonus payouts will be determined based on the formula used to
                  measure the Company's or the respective business unit(s) (as
                  applicable) results for each Participant, and calculated in
                  accordance with the Performance Objectives approved by the
                  Committee.

            (v)   The Committee may, in its sole discretion, make required
                  adjustments to the Plan.

            (vi)  No bonuses for a Plan Year shall be paid to Participant unless
                  the Minimum Thresholds set by the Committee for such Plan Year
                  is met.

      (c)   Bonus Determination in Cases of Leave of Absence

            (i)   If a Participant is on a Company approved leave of absence
                  (including, without limitation, leaves of absence covered by
                  the Family and Medical Leave Act) for less than three months
                  during the Plan Year, then the employee will continue to
                  participate in this Plan for that Plan Year; provided that the
                  Committee may, in its sole discretion, decrease the potential
                  bonus under this Plan on a prorated basis.

            (ii)  If a Participant is on a non-Company approved leave of absence
                  or is on a Company approved leave of absence for more than
                  three months, then the Participant is not eligible to receive
                  awards under this Plan, unless approved by the Committee.

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                            MANAGEMENT INCENTIVE PLAN
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      (d)   Bonus Determination in Cases of Termination

            (i)   Participants whose employment terminated prior to the end of
                  the Plan Year for any reasons other than death, disability, or
                  retirement are not eligible to receive awards under this Plan,
                  unless approved by the Committee.

            (ii)  Participants whose employment terminates after the end of
                  the Plan Year, but before payment of the award, are not
                  eligible to receive the awards under this Plan unless approved
                  by the Committee.

5.    TIMING OF PAYMENT OF BONUSES

      (a)   Current Payment

            Except as provided in Section 5(b), the bonus allocated by the
            Committee for each Participant shall be paid in cash and in full as
            soon as may be conveniently possible after such allocation by the
            Board and certification by the Committee of the Company's
            achievement of the relevant Performance Objectives, but not later
            than two and one-half months from the last day of the Plan Year to
            which such bonus relates.

      (b)   Deferral of Bonus

            Any Participant may elect to defer receipt of all or part of such
            bonus in accordance with any deferred compensation plans which may
            be offered by the Company in the future.

6.    PLAN ADMINISTRATION

      (a)   General Administration

            The Committee will administer the Plan, and will interpret the
            provisions of the Plan. The interpretation and application of these
            terms by the Committee shall be binding and conclusive. The
            Committee's authority will include, but is not limited to:

            (i)   Selecting of Participants

            (ii)  Establishing and modifying Performance Objectives, and
                  weighting Performance Objectives.

            (iii) The determination of performance results and bonus awards.

            (iv)  Exceptions to the provisions of the Plan made in good faith
                  and for the benefit of the Company.

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                            MANAGEMENT INCENTIVE PLAN
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      (b)   Adjustments for Extraordinary Events

            If an event occurs during a Plan Year that materially influences the
            performance measures of the Company and is deemed by the Committee
            to be extraordinary and out of the control of management, the
            Committee may, in its sole discretion, increase or decrease the
            Performance Objectives used to determine the annual bonus payout.
            Events warranting such action may include, but are not limited to,
            changes in accounting, tax or regulatory rulings and significant
            changes in economic conditions resulting in windfall gains or
            losses.

      (c)   Amendment, Suspension, or Termination of the Plan

            The Committee may amend, suspend or terminate the Plan, in whole or
            in part, at any time, if, in the sole judgment of the Committee,
            such action is in the best interests of the Company. Notwithstanding
            the above, any such amendment, suspension or termination must be
            prospective in that it may not deprive Participants of that which
            they otherwise would have received under the Plan for the Plan Year
            had the Plan not been amended, suspended or terminated. The Company
            reserves the right to amend, modify, or repeal the Plan at any time
            without prior written notice to Participants.

7.    MISCELLANEOUS PROVISIONS

      (a)   Effective Date

            The effective date of the Plan is January 1, 2004.

      (b)   Titles

            Section and Article titles are provided herein for convenience only
            and are not to serve as a basis for interpretation or construction
            of the Plan.

      (c)   Employment Not Guaranteed

            Nothing contained in the Plan nor any action taken in the
            administration of the Plan shall be construed as a contract of
            employment or as giving a Participant any right to be retained in
            the service of the Company.

      (d)   Validity

            In the event that any provision of the Plan is held to be invalid,
            void or unenforceable, the same shall not effect, in any respect
            whatsoever, the validity of any other provision of the Plan.

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                           MANAGEMENT INCENTIVE PLAN
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      (e)   Withholding Tax

            The Company shall withhold from all benefits due under the Plan an
            amount sufficient to satisfy any federal, state and local tax
            withholding requirements.

      (f)   Applicable Law

            The Plan shall be governed in accordance with the laws of the State
            of New Hampshire.

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