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                                                                EXHIBIT 10.15
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August 12, 1994



Charles E. Clough
Route 3, Dolly Road
Contoocook, NH  03229


Dear Charlie:

I would like to summarize my understanding of the various agreements we
have reached regarding your resignation as Chief Executive Officer, your
consultation with Nashua and other issues that have been discussed during the
last several weeks.

     1.  From July 25, 1994 through April 30, 1995, you agree to make           
         yourself available at times reasonably agreeable to you and me for     
         consultation concerning the businesses of Nashua Corporation.  In that
         capacity, you will be an independent contractor, responsible for your
         own insurance, vacation and other benefits.

     2.  You understand that, pursuant to applicable Revenue Rulings of the
         Internal Revenue Service, the remuneration you will receive as a       
         consultant may be subject to withholding for Federal Income Tax, State
         Income Tax and Social Security and Medicare Taxes.

     3.  In return for your services as a consultant, you will receive a lump 
         sum payment of $300,000 within fifteen days following January 1, 1995.

     4.  Beginning August 1, 1994, you will also receive $10,000 per quarter    
         for each quarter you serve as outside Director and Chairman of the
         Board of Nashua Corporation.

     5.  You will be able to purchase your 1991 Ford Taurus for $6,100. Please
         let Dan Lyman know how you would like the Bill of Sale and title made
         out.

     6.  Please note that your stock options pursuant to the 1980 Stock Award
         Plan must be exercised by October 21, 1994, under the 1987 Stock
         Option Plan by January 20, 1995, and under the 1993 Stock Incentive
         Plan by July 22, 1996.  Your Stock Appreciation Rights must be
         exercised by January 20, 1995.  The sheet attached sets out the
         various options and stock appreciation rights you hold and the last
         dates for exercise.

     7.  The payments referenced above also compensate you for any bonuses,     
         severance, vacation pay or any other claim or remuneration you may
         have or to which you may be entitled (other than pension or
         supplemental compensation plan benefits) arising out of your
         employment at Nashua.

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Charlie, I believe this sets out our agreement.  If so, please sign where
indicated below and return a copy of this letter to me.  Also, would you please
sign and return the enclosed resignation for the corporate minutes.

Thank you.


Very truly yours,



William E. Mitchell




I have read and agree to the foregoing:


      /s/ Charles E. Clough
_______________________________________
          Charles E. Clough