Document:

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                                                                   Exhibit 10.01

                                MASTER AGREEMENT

This Master Agreement is made as of this 2nd day of July, 2001, between NASHUA
CORPORATION, with its principal offices at 11 Trafalgar Square, Nashua, New
Hampshire 03063 (hereinafter "Nashua") and the FASSON ROLL NORTH AMERICA
DIVISION OF AVERY DENNISON CORPORATION, with its principal offices at 7590
Auburn Road, Painesville, Ohio 44077 (hereinafter "Fasson").

RECITALS:

A.   Fasson and Nashua desire to optimize their respective manufacturing
     capabilities and efficiencies for certain products.

B.   Nashua and Fasson commit to become a significant supplier as well as a
     long term customer of each other for certain products which each can
     utilize in their respective business operations.

C.   The parties wish to facilitate the transition to mutual supplier and
     customer as well as establish an ongoing cooperative framework to allow
     the parties to explore the opportunities to supply other products which
     each party may currently produce or new products which may develop in the
     future.

Therefore, the parties have agreed to enter into this Master Agreement to
establish the ongoing basis for the cooperative relationship as well as attached
sub-agreements entered into as of this date to implement specific actions and
activities in furtherance of this Master Agreement.

1.  FRAMEWORK

    1.1   The parties agree that this Master Agreement sets forth the general
          agreement between the parties and establishes the process whereby the
          parties shall work together to manage the relationship and on an
          ongoing basis to explore other opportunities to supply each other with
          new or additional products.

    1.2   This Master Agreement has attached to it the following sub-agreements
          ("sub-agreements"):

          Attachment A:  Asset Purchase and License Agreement
          Attachment B:  Equipment Lease Agreement
          Attachment C:  Fasson Supply Agreement
          Attachment D:  Nashua Corporation Supply Agreement

    1.3   This Master Agreement may from time to time have modifications to
          existing sub-agreements or additional sub-agreements attached hereto,
          covering other products or services which each party would supply to
          the other in support of the objectives of this Master Agreement.

2.  ESTABLISHMENT OF TEAMS

    2.1   Each party agrees to appoint a standing team to work with its
          counterpart to oversee and manage this contractual relationship
          between the parties.

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                                MASTER AGREEMENT
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    2.2   Each team will have a chairperson and three members.

    2.3   Each chairperson shall act as the focal point for communications
          between the teams and will be responsible for coordinating meetings
          between the teams.

    2.4   The teams shall meet at least twice a year at dates mutually agreeable
          by the chairpersons.

    2.5   These meetings will cover at a minimum the following: current status
          of purchasing activities between the parties; possible cost reduction
          opportunities on the purchasing activities; any issues relating to the
          ongoing relationship and agreements; and new opportunities for each
          party to supply additional products or services to the other.

3.  TERM

This Master Agreement shall remain in effect until the expiration of the term or
any renewal term of all of the related sub-agreements and shall automatically be
renewed if and when any of the sub-agreements are renewed. However, if
Attachment B is the only sub-agreement in effect then Section 2 of this Master
Agreement shall lapse.

4.  INTELLECTUAL PROPERTY

Each party maintains full control of its own respective intellectual property
including all patents, licenses, trade names, service marks, trade secrets and
other proprietary information. This Master Agreement and related sub-agreements
do not create any license or rights to use either parties' intellectual property
unless it is specifically addressed in a specific attached sub-agreement and
then only to the extent set forth in the specific sub-agreement and the specific
products described in that sub-agreement.

5.  PROPRIETARY INFORMATION

    5.1   The parties may from time to time share proprietary or confidential
          information with the other party during the course of this Master
          Agreement and attached sub-agreements. The parties agree they shall
          only use such proprietary or confidential information for the purposes
          of furthering the objectives of this Master Agreement and attached
          sub-agreements and said confidential information shall not be used for
          any other purpose. The parties agree to protect any such discussed
          proprietary or confidential information using the same degree of care,
          but no less than a reasonable degree of care, to prevent the
          unauthorized use, dissemination, or publication of the confidential
          information as the recipient of the information uses to protect its
          own confidential information of a like nature.

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                                MASTER AGREEMENT
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    5.2   The parties agree to hold such information received from the other
          party, and not disclose it to any third party for a period of one (1)
          year from the expiration of this Master Agreement and all of the
          attached sub-agreements.

    5.3   This obligation does not apply to information which was (a) in the
          possession of the recipient prior to this Master Agreement except for
          information exchanged under a current Non-Disclosure Agreement; (b) is
          or becomes part of a public record; (c) is rightfully received from a
          third party without a duty of confidentiality; (d) is disclosed under
          operation of law; (e) is independently developed by the recipient; or
          (f) is disclosed after receiving the prior written approval of the
          other party.

6.  TERMINATION

    6.1   This Master Agreement and each of the attached sub-agreements may be
          terminated upon (a) a party's breach of a material term and condition
          in the corresponding agreement and the failure to cure such a breach
          upon sixty (60) days written notice from the non-breaching party; or
          (b) upon one party (i) ceasing to function as an ongoing concern by
          announcing or ending all operations; (ii) making an assignment for the
          benefit of creditors; (iii) becoming the subject of any proceeding
          under any applicable bankruptcy, receivership, insolvency, or similar
          laws which is not dismissed within thirty (30) days; or (iv)
          liquidating or dissolving.

    6.2   Notwithstanding the foregoing, if one of the parties becomes subject
          to a proceeding under 11 USC 100 et seq and any similar section added
          by amendment (the "Bankruptcy Laws"), such party agrees to determine
          and affirmatively seek to either assume or reject this Master
          Agreement and the sub-agreements in accordance with the Bankruptcy
          Laws within sixty (60) days of the entry of an order for relief on
          behalf of that party under the Bankruptcy Laws. If such party fails to
          make such assumption or rejection as stated above, such party agrees
          to not oppose a motion filed by the other party seeking an order to
          compel assumption or rejection.

7.  WARRANTIES

    7.1   Each party represents and warrants that it has good and clear title to
          its products and materials relating thereto and all rights with
          respect thereto, or that it has acquired such right from the owner
          thereof to license, market or otherwise distribute its products to
          customers as provided under this Master Agreement. Each party further
          warrants that it has not made and will not make any commitments to
          others inconsistent with or in derogation of such rights and that each
          party is free of any obligation that would prevent it from entering
          into this Master Agreement.

    7.2   IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR INDIRECT,
          SPECIAL OR CONSEQUENTIAL DAMAGES ARISING UNDER THIS MASTER AGREEMENT.

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                                MASTER AGREEMENT
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    7.3   The provisions of paragraphs 7.1 and 7.2 shall survive any termination
          of this Master Agreement.

8.  ASSIGNMENT

    8.1   Neither party shall assign this Master Agreement and/or related
          sub-agreements to any third party without the prior written consent of
          the other party. The party who is requested to provide its consent may
          withhold such consent until the third party agrees in writing to be
          bound by the terms of this Master Agreement and/or related
          sub-agreements.

    8.2   If Nashua sells or transfers substantially all of its material assets
          or operations directly involved in the performance of obligations
          under any of the sub-agreements and the purchaser of such assets or
          operations does not agree in writing to be bound to the terms of the
          corresponding sub-agreement, the provisions of Section 13 of
          Attachment A, Asset Purchase and License Agreement, shall apply.

    8.3   This Master Agreement and related sub-agreements, and the rights and
          obligations of each party hereunder shall be binding upon and shall
          inure to the benefit of the respective successors and assigns of each
          of the parties.

9.  INDEPENDENT PARTIES

    9.1   Each party is an independent party and this Master Agreement and
          attached sub-agreements are not intended to create any business
          combination, joint venture, or partnership. Further, each party has
          full and complete control of their respective products and this Master
          Agreement does not inhibit, restrain, or in any way control or limit
          each party's marketing, promoting, or selling of any products.

    9.2   This Master Agreement and attached sub-agreements shall not constitute
          either party the legal representative or agent of the other, nor shall
          either party have the right or authority to assume, create or incur
          any liability or any obligation of any kind, expressed or implied,
          against, or in the name of, or on behalf of the other party. This
          Master Agreement shall not create any rights in any customer, or any
          other person or entity not a party to this Master Agreement.

10.  PUBLICITY

Neither party may disclose any of the terms of this Agreement or the
sub-agreements without the prior written consent of the other party or as may be
required by law or regulation. Neither party will issue a press release
concerning the transactions contemplated by this Agreement without first
allowing the other party the opportunity to review such release and give its
prior written approval, which approval will not be unreasonably withheld.

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                                MASTER AGREEMENT
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11.  NOTICES

Any and all written notices, communications and deliveries between Fasson and
Nashua with reference to this Master Agreement shall be sufficiently made on the
date of mailing if sent registered or certified mail to the respective address,
subject to change upon written notice, of the other party as follows:

           In the case of Fasson:  Fasson Roll North America
                                   7590 Auburn Road
                                   Painesville, Ohio 44077
                                   Attn: Law Department

           In the case of Nashua:  Nashua Corporation
                                   11 Trafalgar Square, 2nd Floor
                                   Nashua, NH 03063
                                   Attn: Legal Department

12.  AMENDMENT

Any amendment to this Master Agreement or any attached sub-agreements must be in
writing and signed by both parties.

13.  FORCE MAJEURE

If performance of any part of this Master Agreement and/or any of the attached
sub-agreements by either party is prevented or delayed by reason of any cause
beyond the control of and without the fault of the party affected (including
without limitations acts of God, acts of the other party, acts of civil or
military authority including governmental priorities, fires, floods, epidemics,
wars and riots) and which cannot be overcome by diligence, the party affected
shall be excused from such performance to the extent that it is necessarily
prevented or delayed thereby during the continuance of any such happening or
event, and the corresponding agreement shall be deemed suspended so long as the
extent that any such cause prevents or delays its performance; provided,
however, that after sixty (60) cumulative days of such suspension on the part of
one party, the other party may at its discretion terminate without liability its
obligations under the corresponding agreement to the extent that the affected
party's performance has been prevented or delayed. In order to obtain a
suspension under this section, the party delayed shall send written notice of
the delay and the reason therefore to the other party within five (5) business
days from the time the party delayed, knew the force majeure in question.

14.  ENFORCEABILITY

    14.1  No delay or failure of either party in exercising any right hereunder
          and no partial or single exercise hereof shall be deemed to constitute
          the waiver of such right or any other rights hereunder.

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                                MASTER AGREEMENT
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    14.2  If any provisions of this Master Agreement or attached sub-agreements
          shall become inoperative or unenforceable as applied in a particular
          case or becomes in conflict with any other provisions hereof, such
          circumstances shall not have the effect of rendering the provision in
          question invalid, inoperative or unenforceable in any other case or
          circumstance. The invalidity of any one or more phrases, sentences,
          clauses or sections contained in this Master Agreement or attached
          sub-agreements or any part thereof shall not effect the enforceability
          of the remainder of the Master Agreement or attached sub-agreements.

15.  ABSENCE OF LITIGATION

There are no pending or threats of actions or proceedings before any court or
administrative agency which may adversely affect either party's ability to
perform their obligations in accordance with this Master Agreement or attached
sub-agreements.

16.  INFORMATION

Each party agrees to provide upon request of the other party financial
information and other information such as may be reasonably required in order
for the requesting party to determine the financial responsibility and stability
of the other party.

17.  LIMITED LIABILITY

Neither party shall be liable for consequential damages (including but not
limited to lost profits) with respect to the Master Agreement or related
sub-agreements or any portions thereof.

18.  GOVERNING LAW

The laws of the State of Delaware without regard to its conflict of laws
principles shall govern with respect to this Master Agreement or related
sub-agreements and any questions which may arise under this Master Agreement.

19.  DISPUTE RESOLUTION

    19.1  If a dispute arises between the parties during the duration of this
          Master Agreement or any attached sub-agreement, the parties agree to
          the following dispute resolution procedure:

          (a) Either party will provide written notice to the other of the
              dispute.

          (b) The Group Vice President of Fasson and the Vice President, CFO of
              Nashua shall meet within ten (10) business days in a good faith
              attempt to resolve the dispute, or mutually agree upon an action
              plan to resolve the dispute.

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                                MASTER AGREEMENT
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          (c) If a resolution to the dispute or a mutually agreeable action plan
              is not received within ten (10) business days of the meeting
              referenced in subsection (b) above, then either party may request
              an escalation to the next level review.

          (d) The dispute is then brought to the attention of the President of
              each respective company. The Presidents shall meet within ten (10)
              business days in an attempt to resolve the dispute or mutually
              agree upon an action plan to resolve the dispute.

          (e) If a resolution to the dispute or a mutually agreeable action
              plan is not received within ten (10) business days from the date
              of the meeting of the Presidents, then either party may proceed
              to the next step.

    19.2  If the dispute is not resolved in accordance with paragraph 19.1
          above, then the matter will be submitted to the American Arbitration
          Association (AAA) for resolution (including, if applicable, a
          determination as to the proper damages for the breach of the Master
          Agreement or attached sub-agreements, subject to the terms of this
          Agreement and the attached sub-agreements). The Master Agreement and
          the attached sub-agreements will remain in effect during the time the
          arbitration proceeding is in process. Termination of the Master
          Agreement and any of the attached sub-agreements can only be made
          pursuant to the terms of those agreements.

    19.3  Arbitration will be held in Philadelphia, Pennsylvania under the
          common arbitration rules and expedited arbitration practices of the
          AAA. There will be one arbitrator who will have the authority to
          resolve all disputes and matters relating to the Master Agreement and
          attached sub-agreements. The decision of the arbitration shall be
          binding on both parties and may be recorded and enforced in the
          appropriate federal courts.

20.  INTERPRETATION AND PRECEDENCE OF AGREEMENTS

If there is an issue of interpretation or conflict in the terms and conditions
among and between the terms and conditions of the Master Agreement or any
attached sub-agreement, the following precedence process is to be utilized:

     (a)  Each attached sub-agreement's terms and conditions only apply to any
          activity under that specific sub-agreement and are not to be
          considered in any interpretation of any other sub-agreement.

     (b)  If an issue arises between interpretation of an attached sub-agreement
          and the Master Agreement, the Master Agreement takes precedence and
          must be considered in any interpretation of any specific
          sub-agreement.

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                                MASTER AGREEMENT
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21.  INTEGRATION

This Master Agreement and the attached sub-agreements set forth the complete and
exclusive agreement and understanding of the parties relating to the subject
matter contained herein and therein and merges all prior communication between
them.

22.  HEADINGS

The headings to the various provisions of this Master Agreement and attached
sub-agreements are for reference purposes only and shall not be construed as
affecting the meaning or interpretation of this Master Agreement or attached
sub-agreements.

23.  COUNTERPARTS

This Master Agreement and attached sub-agreements may be executed in multiple
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same document.

IN WITNESS WHEREOF, the parties hereto have as of the Effective Date duly
executed this Master Agreement, in duplicate, by their respective representative
thereunto duly authorized.

NASHUA CORPORATION                          FASSON ROLL NORTH AMERICA,
                                            A DIVISION OF AVERY DENNISON
                                            CORPORATION

By: /s/ Andrew B. Albert                    By: /s/ Christian A. Simcic
   -----------------------------------         ---------------------------------
  Name:  Andrew B. Albert                     Name:  Christian A. Simcic
  Title: Chairman, President and Chief        Title: Group Vice President
         Executive Officer                           Fasson Roll Worldwide

Date:  July 6, 2001                         Date:  July 6, 2001

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                                                                    EXHIBIT 10.1

                              SEVERANCE AGREEMENT

     This Severance Agreement ("Agreement") is hereby made and entered into by
and between Simon Worldwide, Inc. ("SWI") and Patrick D. Brady ("Brady").

     WHEREAS, Brady has been employed by SWI as its Co-Chief Executive Officer
and Co-President, pursuant to an Employment Agreement between the parties dated
September 1, 1999 (the "Employment Agreement"); and

     WHEREAS, the parties have reached full and final agreement as to the terms
of Brady's separation from employment with SWI;

     NOW, THEREFORE, the parties agree as follows:

     1. RESIGNATION BY BRADY. Effective June 15, 2001 (the "Termination Date"),
Brady shall resign from (a) his positions as Co-Chief Executive Officer and
Co-President of SWI, (b) his membership on SWI's Board of Directors, and (c)
any and all other positions held by Brady with SWI or any of its subsidiaries
or affiliates or any of the Boards of Directors thereof. On or before the
Termination Date, Brady shall confirm his resignation from such positions by
submitting a letter of resignation to SWI substantially in the form attached as
Exhibit A to this Agreement. As of the Termination Date, the Employment
Agreement (including, without limitation, the line of credit provided to Brady
by SWI thereunder) shall terminate and be of no further force or effect;
provided, however, that Sections 5, 8 and 9 of the Employment Agreement shall
remain in effect following the Termination Date in accordance with their terms.
Brady's rights with respect to the exercise or termination of the options to
purchase shares of SWI stock previously granted to him shall be governed by the
terms thereof.

     2. COMPENSATION TO BRADY. In consideration of the terms of this Agreement,
SWI shall provide Brady with the following severance compensation:

          (a) Within ten (10) days after Brady has delivered to SWI an
original, signed copy of this Agreement, SWI shall deliver to Brady a lump-sum
payment in the gross amount of Three Million Two Hundred Thousand Dollars
($3,200,000).

          (b) SWI shall forgive in full Brady's current indebtedness to SWI
(the principal amount of which shall not exceed Eighty-Five Thousand Sixty
Dollars $85,060.00) and any accrued interest thereon.

          (c) SWI shall maintain until November 10, 2002, at its expense,
Brady's coverage under the life, medical and dental insurance plans in which
Brady was a participant as of the Termination Date; provided, however, that to
the extent that SWI may modify or terminate the medical or dental insurance
coverage provided to its executive-level employees generally, SWI may likewise
modify or terminate the coverage provided to Brady.

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     (d) SWI shall pay for and maintain for the benefit of Brady and his
designees Brady's coverage under the split-dollar life insurance policies
currently in effect with respect to Brady; provided, however, that the
remaining annual premium payments on such policies by SWI (the final two of
which such payments are due to be made by SWI in June 2009) shall not exceed
Eighty Thousand Dollars ($80,000.00) per annum. Brady agrees to execute, or
cause to be executed, appropriate modifications to the agreement relating to
such split-dollar life insurance policies to reflect the terms of this
Agreement.

     (e) On the Termination Date, SWI shall deliver to Brady a lump-sum payment
in the gross amount of Thirty-four Thousand Six Hundred Seventy-Three Dollars
($34,673.00) in respect of Brady's accrued, unused vacation and personal days as
of the Termination Date.

     (f) Subject to Brady's submission of appropriate documentation, SWI shall
pay (i) the attorneys' fees and expenses in the amount of Twenty-Four Thousand
Five Hundred Forty-Six Dollars and Twenty-Three Cents ($24,546.23) previously
incurred by Brady through his representation by the law firm of Craig &
McCaffey; and (ii) the reasonable attorneys' fees and expenses, up to a maximum
of $50,000, incurred by Brady through his representation by the law firm of
Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C. in connection with the
negotiation of this Agreement.

     The parties acknowledge and agree that (i) there is "good reason," as that
term is defined in Section 6.6(a) of the Employment Agreement, for Brady to
terminate his employment with SWI; and (ii) the termination of Brady's
employment with SWI is not occurring in connection with a change of control of
SWI for purposes of Section 4999 of the Internal Revenue Code (the "Code"). In
the event, however, that any golden-parachute excise tax is assessed by the
Internal Revenue Service ("IRS") under Section 4999 of the Code with respect to
any of the compensation set forth in this Section 2, Brady shall have the right
to "gross up" protection against any such golden-parachute excise tax liability
(including interest or penalties) thereby incurred by Brady. The parties
recognize that the duty to pay any golden-parachute excise tax is personal to
Brady, and that Brady may be obligated, following the assessment of such a tax
by the IRS and upon advice of professional tax counsel, to pay such a tax. In
the event of a dispute with the IRS as to whether a golden-parachute tax should
be assessed, and provided that no actual legal conflict of interest then exists
between the parties with respect to such a matter, Brady shall cooperate with
SWI in connection with any dispute or other proceeding before the IRS or any
other governmental authority concerning the assessment of such liability or the
applicability of Section 4999 of the Code to the compensation set forth in this
Section 2, and SWI shall be entitled to determine the legal positions to be
taken and the steps to be followed by SWI and Brady in connection with such a
dispute or other proceeding. In the event that such a conflict of interest
emerges between SWI and Brady with respect to such a dispute or other
proceeding, Brady shall be entitled to retain counsel, at SWI's expense, to
represent him separately in connection with the matter. In the event that Brady
pays any golden-parachute excise tax assessed by the IRS with respect to any of
the compensation set forth in this Section 2

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and the appropriate gross-up is paid to Brady by SWI, Brady shall assign to SWI
any and all rights he may have to seek a refund of such payment.

     3.   SOLE COMPENSATION: NO MITIGATION. Brady expressly acknowledges that
the compensation provided for in the foregoing Section 2 shall constitute the
sole and entire compensation due him or to become due him in connection with
the termination of his employment with SWI. Brady shall not be obligated under
this Agreement to seek subsequent employment, and the compensation to be
provided to Brady hereunder shall not be reduced by any earnings that Brady may
derive through such subsequent employment.

     4.   DEDUCTIONS. All of the compensation to be provided to Brady under
this Agreement is stated in gross terms and shall be subject to payroll tax
withholdings and any other deductions reasonably determined by SWI to be
required by law.

     5.   RELEASE BY BRADY. In consideration of the terms hereof, Brady, on
behalf of himself and his spouse, heirs, executors, administrators, trustees,
legal representatives and assigns, hereby forever releases and discharges SWI,
The Yucaipa Companies LLC ("Yucaipa"), Overseas Toys, L.P., their respective
past and present subsidiaries, affiliates, divisions, predecessors, successors
and assigns, and all of the officers, directors, shareholders, employees,
consultants, agents and attorneys of each such entity from any and all claims,
demands, liabilities, actions, and causes of action of every name and nature,
whether known or unknown, arising at any time from the beginning of the world
through the date of Brady's execution of this Agreement. This release includes,
without limitation, (a) any claims of breach of contract, whether express or
implied; (b) any claims for reemployment, salary, wages, bonus pay, stock or
stock options, vacation pay, benefits or other compensation of any kind; (c)
any claims of discrimination or retaliation in employment, including, without
limitation, any claims under Title VII of the Civil Rights of 1964, the Age
Discrimination in Employment Act, the Employee Retirement Income Security Act,
the Americans With Disabilities Act, the Family and Medical Leave Act, or any
other federal, state or local statute, ordinance, regulation or common-law
provision relating to discrimination or retaliation in employment; (d) any
claims under any other federal, state or local statutes, ordinances or
regulations; and (e) any claims based in tort. Brady agrees that neither he nor
any of his present, future or former heirs, representatives or assigns will
ever assert in any forum any claim or cause of action as to which this release
may lawfully be applied. Notwithstanding the foregoing, this release excludes
(x) SWI's obligation to indemnify Brady as a director and officer to the extent
required by Section 5 of the Employment Agreement or by any other preexisting
contractual or other obligation of SWI to Brady; and (y) any obligation of SWI
set forth in this Agreement.

     6.   RELEASE BY SWI. SWI, on behalf of itself and its subsidiaries,
affiliates, divisions, predecessors, successors and assigns, hereby forever
releases and discharges Brady from any and all claims, demands, liabilities,
actions, and causes of action of every name and nature, whether known or
unknown, arising at any time from the beginning of the world through the date
of SWI's execution of this Agreement. This release includes, without
limitation, any

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contract-based, tort-based or other common-law claims, any claims under any
federal, state or local statutes, ordinances or regulations, and any claims for
costs or attorney's fees. Notwithstanding the foregoing, this release excludes
(a) any claim arising from fraudulent or criminal conduct by Brady, (b) any
stockholder derivative claim, and (c) any obligation of Brady set forth in this
Agreement. SWI represents that as of the date of this Agreement, it is not
currently pursuing the development of a claim against Brady based on any
alleged fraudulent or criminal conduct by Brady.

     7.  RETURN OF PROPERTY. On or before the Termination Date, Brady shall
return to SWI all items in his possession or control that are the property of
SWI or any of its subsidiaries or that contain any confidential information of
SWI.

     8.  CONFIDENTIALITY. Brady acknowledges that the existence and terms of
this Agreement shall constitute "Confidential Information" within the meaning
of Section 9 of the Employment Agreement until such time as such information is
disclosed by SWI. Notwithstanding the foregoing, Brady may disclose the
existence and terms of this Agreement to his immediate family members,
attorneys, accountants and financial and tax advisors, provided that Brady
informs such persons of the existence of this confidentiality provision and
instructs them not to disclose such information further.

     9.  NONDISPARAGEMENT. Brady agrees that he shall not make or cause to be
made, directly or indirectly, any comments to any third party that disparage or
denigrate SWI, its subsidiaries or affiliates, or any of their respective
current or former directors, officers, shareholders, employees consultants,
agents or attorneys. SWI agrees to instruct its officers and directors, and
those of its subsidiaries, to whom the terms of this Agreement are disclosed
not to make or cause to be made, directly or indirectly, any comments to any
third party that disparage or denigrate Brady. Notwithstanding the foregoing,
the provisions of this Section 9 shall not apply to any statement that any
party may be compelled by law to make.

     10.  NO ADMISSION. This Agreement does not constitute an admission by
either SWI or Brady that either party has at any time acted contrary to the law
or violated the rights of either party.

     11.  SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon Brady
and his heirs, administrators, representatives and executors, and upon SWI and
its successors and assigns. Brady shall not transfer or assign this Agreement
to any person or entity, and any such attempted transfer or assignment shall be
void and without effect. Brady warrants that he has not previously transferred
or assigned to any person or entity any right, cause of action or claim
released by this Agreement.

     12.  CHOICE OF LAW. This Agreement shall be construed in accordance with
the substantive laws of the Commonwealth of Massachusetts, without reference to
any conflict-of-law doctrine that would result in the application of the laws
of any other jurisdiction; provided,

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however, that the parties' obligations under Section 5, 8 and 9 of the
Employment Agreement (as incorporated herein pursuant to Section 1 of this
Agreement) shall be governed by the substantive laws of the State of California.

     13.  ARBITRATION. Except in the case of a request for equitable relief
pursuant to Section 8.3 of the Employment Agreement or a request for
provisional relief by a court pending arbitration, any dispute or controversy
between the parties arising from an alleged breach of this Agreement or
otherwise concerning the meaning or interpretation of any provision of this
Agreement shall be resolved exclusively through an arbitration proceeding
before the American Arbitration Association ("AAA") in Boston, Massachusetts.
Except as may be otherwise set forth in this Section 13, such proceeding shall
be conducted in accordance with the rules of the AAA then in effect. The
parties shall each bear one-half of the fees and expenses of the arbitrator and
all other expenses of the arbitration (other than any filing fees required of
claimants by the AAA), and each party shall be responsible for payment of his
or its attorneys' fees and all other costs associated with the preparation and
presentation of his or its case; provided, however, that the arbitrator may, to
the extent permitted by law, award attorneys' fees, costs and/or expenses to
the prevailing party. The arbitrator shall render an award and written opinion,
which shall be final and binding upon the parties, and judgment on the award
may be entered by any court with jurisdiction thereof.

     14.  SEVERABILITY. Should any provision of this Agreement be determined by
any court to be wholly or partially unlawful, invalid or unenforceable, the
lawfulness, validity and enforceability of the remaining provisions shall not
be affected, and the unlawful, invalid or unenforceable provision shall be
deemed not to be a part of this Agreement.

     15.  ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof, and, except as
otherwise set forth in Section 1 above, supersedes any and all prior agreements
and understandings between them with respect thereto. In signing this
Agreement, both parties are relying only on the representations set forth
herein, and not on any other representations, whether oral or written. This
Agreement may be amended or modified only by an express writing signed by Brady
and by a duly authorized officer of SWI.

     16.  WAIVER. The failure by a party to assert his or its rights under any
provision of this Agreement shall not be construed as a waiver of the party's
rights with respect to any future violations of such provision, or to prevent
that party thereafter from enforcing his or its rights under any other
provision of this Agreement.

     17. NOTICES. Any notices, requests, consents or other communications made
under this Agreement shall be given in writing and personally delivered or sent
by certified mail, postage prepaid, with return receipt requested, or by
overnight courier service, to the following addresses (or to such other
addresses as the parties may specify to one another by like notice subsequent
to the execution of this Agreement):

                                       5
<PAGE>   6
     If to SWI:     Simon Worldwide, Inc.
                    c/o Simon Marketing, Inc.
                    1900 Avenue of the Stars
                    Suite 550
                    Los Angeles, California 90067-4301
                    Att'n: General Counsel
                    Facsimile: (310) 553-7659

                    with a copy to:

                    Choate, Hall & Stewart
                    Exchange Place
                    53 State Street
                    Boston, Massachusetts 02109
                    Att'n: Cameron Read, Esq.
                    Facsimile: (617) 248-4000

     If to Brady:   Patrick D. Brady
                    71 Eastern Point Boulevard
                    Gloucester, Massachusetts 01930

                    with a copy to:

                    Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C.
                    One Financial Center
                    Boston, Massachusetts 02111
                    Att'n: Kenneth M. Bello, Esq.

     18. SECTION HEADINGS. The section headings in this Agreement are included
solely for convenience of reference and shall not affect the meaning or
interpretation of this Agreement.

     19. EXECUTION. This Agreement may be executed in multiple counterparts,
each of which shall constitute an original, but which taken together shall
constitute one and the same agreement.

     20. ACKNOWLEDGEMENTS. Brady acknowledges and affirms:

         (a) that he has read this Agreement carefully and completely, and that
he fully understands its meaning and intent, the terms set forth herein, and the
final and binding effect of the release set forth in the foregoing Section 5;

                                       6
<PAGE>   7
     (b) that he has had the opportunity to consult with an attorney or other
advisor before signing this Agreement, has been advised by SWI to do so if he
chooses, and in fact has consulted with an attorney before signing this
Agreement;

     (c) that he has been given at least twenty-one (21) days to review and
consider this Agreement before signing it, and that if he signs this Agreement
before the expiration of this 21-day period, he does so voluntarily;

     (d) that he is signing this Agreement freely and voluntarily;

     (e) that he may revoke this Agreement after signing it by delivering a
written notice of revocation to SWI by facsimile and by overnight courier
service, at the address set forth in the foregoing Section 17, by no later than
seven (7) days after the date on which he has signed this Agreement and
delivered it to SWI; and

     (f) that the terms of this Agreement, including SWI's obligations
hereunder, shall become effective and enforceable only after this seven-day
revocation period has passed, provided that Brady has not revoked this
Agreement.

AGREED AND ACCEPTED;

Simon Worldwide, Inc.

By: Allan I. Brown
   ----------------------------

Name: /s/ Allan I. Brown
     --------------------------

Title: Co-CEO
      -------------------------

Date:         6/26/2001
     --------------------------

Patrick D. Brady

     /s/ Patrick D. Brady
-------------------------------

Date:         6/25/2001
     --------------------------

                                       7
<PAGE>   8
                                   GUARANTEE

     Simon Marketing, Inc. ("SMI"), a Delaware corporation and a wholly-owned
subsidiary of SWI, hereby unconditionally guarantees the due and timely
performance of all of SWI's obligations hereunder. The liability of SMI
hereunder is direct and unconditional and may be enforced without requiring
Brady first to resort to any other right, remedy or security. This Guarantee is
a continuing Guarantee and shall remain effective until all of SWI's
obligations hereunder are satisfied. In no event shall this Guarantee be
terminated without the prior written consent of Brady in his sole discretion.
SMI hereby waives any and all rights to presentment, demand and protest.

Simon Marketing, Inc.

By:  /s/  Michael J. Widman
     ---------------------------------

Name:  Michael J. Widman
       Senior Executive Vice President

Title:
       -------------------------------

                              Date:  June 26, 2001

                                       8

<PAGE>   9
                                   EXHIBIT A

                                             June __, 2001

Mr./Ms. __________________
Chairman, Board of Directors
Simon Worldwide, Inc.
101 Edgewater Drive
Wakefield, Massachusetts 01880

Dear Mr./Ms. ________________

     Pursuant to Section I of my Severance Agreement with Simon Worldwide, Inc.
("SWI") dated June __, 2001, I hereby submit my resignation, effective June 15,
2001, from my position as Co-Chief Executive Officer and Co-President of SWI,
from my membership on SWI's Board of Directors, and from any and all other
positions held by me with SWI or any of its subsidiaries or affiliates.

                                        Sincerely,

                                        Patrick J. Brady

                                       9

<PAGE>   10

                                 June 23, 2001

Mr. Ronald Burkle
Chairman, Board of Directors
Simon Worldwide, Inc.
101 Edgewater Drive
Wakefield, Massachusetts 01880

Dear Mr. Burkle:

     Pursuant to Section 1 of my Severance Agreement with Simon Worldwide, Inc.
("SWI") dated June 25, 2001, I hereby submit my resignation, effective June 15,
2001, from my position as Co-Chief Executive Officer and Co-President of SWI,
from my membership on SWI's Board of Directors, and from any and all other
positions held by me with SWI or any of its subsidiaries or affiliates.

                                        Sincerely,

                                        /s/ Patrick D. Brady
                                        ----------------------------------------
                                        Patrick D. Brady

<PAGE>   11

                                 June 23, 2001

Mr. Ronald Burkle
Chairman, Board of Directors
Simon Worldwide, Inc.
101 Edgewater Drive
Wakefield, Massachusetts 01880

Dear Mr. Burkle:

     In connection with the execution of my Severance Agreement with Simon
Worldwide, Inc. ("SWI") dated June 25, 2001, I hereby represent and warrant
that I have not made any oral or written representation to, or purported to
bind SWI to any oral or written agreement with, any current or former employee
of SWI relating to any severance compensation to be provided to such employee
in the event of the termination of his or her employment with SWI.

                                        Sincerely,

                                        /s/ Patrick D. Brady
                                        ----------------------------------------
                                        Patrick D. Brady

<PAGE>   12
                                   CONSENT

     Reference is made to (a) the Purchase Agreement by and between Cyrk, Inc.
("Cyrk") and Cyrk Holdings, Inc. (f/k/a Rockridge Partners, Inc.) (the
"PURCHASER"), dated as of January 20, 2001, as amended by Amendment No. 1, dated
as of February 15, 2001 (the "PURCHASE AGREEMENT") and (b) the Lease by and
between 125 Water Street LLC (the "LLC") and Cyrk, dated as of December 12, 1996
relating to the property located at 125 Water Street, Danvers, Massachusetts
(the "DANVERS LEASE").

     The LLC hereby consents pursuant to Section 25 of the Danvers Lease to the
assignment of the Danvers Lease by Cyrk to the Purchaser pursuant to the terms
and conditions of the Purchase Agreement.

     The undersigned Patrick D. Brady and Gregory P. Shlopak, in their capacity
as managers of the LLC and in their individual capacity, covenant and agree
that they shall neither authorize the LLC nor cause the LLC to sue or to
exercise any other right and remedy which the LLC may have against Cyrk and/or
the Purchaser as a result of any alleged default under the Danvers Lease
arising from the assignment of the Danvers Lease from Cyrk to the Purchaser.

     Executed as of this ____ day of June, 2001.

125 WATER STREET LLC

By /s/ Patrick D. Brady                  By
  ____________________________             ______________________________
  Patrick D. Brady, Manager                 Gregory P. Shlopak, Manager

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