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                                                                    EXHIBIT 10.1

                        CONFIDENTIAL SEPARATION AGREEMENT
                                       AND
                                 GENERAL RELEASE

     This Confidential Separation Agreement and General Release ("Agreement") is
entered into as of January 18, 2000, between WALLACE COMPUTER SERVICES, INC.
("Wallace") and ROBERT J. CRONIN ("Cronin"). The purpose of this Agreement is to
acknowledge and clarify the understandings and agreements of the parties
relating to Cronin's separation from service with Wallace.

     1. Termination of Employment. Cronin shall resign from all offices,
directorships and fiduciary positions with Wallace, its affiliates and their
respective benefit plans, including, without limitation, from the positions of
Chairman and Chief Executive Officer of Wallace and as a member of Wallace's
Board of Directors, effective as of January 18, 2000 (hereinafter referred to as
the "Termination Date"). Cronin's employment with Wallace shall terminate as of
such date. The parties acknowledge and agree that such resignation by Cronin
shall be deemed to be with Good Reason within the meaning of Paragraph 10(b) of
the Employment Agreement entered into between the parties as of July 1, 1997
(the "Employment Agreement"). Wallace hereby waives notice of that resignation.
The parties further acknowledge and agree that the Termination Date hereunder
shall constitute the Termination Date for purposes of the Employment Agreement.

     2. Obligations of the Parties Under the Employment Agreement, Including
Wallace's Obligations Under Paragraph 10(b) Thereof. The parties acknowledge
their respective obligations under the Employment Agreement, including, without
limitation, Wallace's obligations under Paragraph 10(b) thereof. With regard to
Paragraphs 10(b)(i) and 10(b)(ii) of the Employment Agreement, on January 25,
2000 (being the date determined under Paragraph 15 hereof) (the "Initial Payment
Date"), Wallace shall make payment of the Accrued Obligations as defined in the
Employment Agreement (including, but not limited to, accrued vacation pay) and
Wallace shall make payment of a prorated cash bonus for the fiscal year ending
in 2000 in the amount of $180,000 (being six-twelfths of a target bonus of 60%
of Cronin's base compensation). As regards Paragraph 10(b)(iii) of the
Employment Agreement, the parties agree that in lieu of any payments to which
Cronin would otherwise be entitled thereunder, Wallace shall pay Cronin in a
single lump sum on the Initial Payment Date, the amount of $1,920,000. Under
Paragraph 10(b)(iv) of the Employment Agreement, Wallace shall continue to
provide benefits to Cronin for a period of two (2) years after the Termination
Date, as provided in said Paragraph 10(b)(iv), including, without limitation,
health benefits under Wallace's group health plan. At the termination of said
two-year period, Cronin shall be offered the opportunity to elect continuation
coverage under Wallace's group health plan in accordance with Internal Revenue
Code ("Code") Section 4980B(f), as it or a successor Code section may exist at
such time. With respect to Paragraph 10(b)(vi) of the Employment Agreement,
Cronin agrees to waive his rights to outplacement services thereunder and
Wallace agrees to pay him in lieu thereof $50,000, which Wallace shall pay to
Cronin on the Initial Payment Date.

     3. Uninsured Medical Expenses. In connection with the benefits to which
Cronin is entitled under Paragraph 7(b) of the Employment Agreement (relating to
uninsured Medical

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Expenses), the parties acknowledge and agree that, as of the Termination Date,
Cronin is age 55 and, therefore, the reimbursement or payment of medical
expenses on behalf of Cronin and/or his spouse under said Paragraph 7(b) shall
be limited to an aggregate of $150,000, exclusive of the benefits referred to in
the fourth sentence of Paragraph 2.

     4. Supplemental Retirement Benefit. With respect to Paragraph 7(c) of the
Employment Agreement (relating to Supplemental Retirement Benefit), the parties
further acknowledge and agree that Cronin's Supplemental Retirement Percentage
shall be 27.5%. Such benefits shall be paid not less frequently than monthly in
accordance with Wallace's customary practices; and shall not be reduced by
monthly Social Security Retirement benefits prior to Cronin's Social Security
retirement age.

     5. Equity Compensation. Wallace shall pay any amounts to Cronin to which he
is entitled under Wallace's phantom stock plan in accordance with its terms,
based on the price of Wallace's stock on January 14, 2000, which the parties
agree was $16.25 per share, with the number of shares of phantom stock held by
Cronin to be determined as of the date hereof. Similarly, Cronin shall be
entitled to exercise any stock options in accordance with the terms of any
Wallace stock option plan in which he participates, any applicable award
agreement under such a plan, and the Employment Agreement, with the number of
shares which are subject to such options, and the respective exercise prices, to
be as determined by further written agreement of Cronin and Wallace based upon
their customary records as to stock option awards previously made to Cronin;
provided that, with respect to any and all stock options which are exercisable
and have exercise prices less than $13.00 per share, Cronin shall, in return for
cancellation of all such options on the Termination Date, receive on the Initial
Payment Date a lump sum cash payment from Wallace equal to the excess of (a) the
aggregate amount of $16.25 per share over (b) the aggregate exercise price for
the option, as reflected on the records of Wallace relating to the stock options
as previously reported by Wallace to Cronin; and all of Cronin's other options,
all of which shall be vested as of the Termination Date pursuant to the
Employment Agreement, shall be exercisable for a period of two years after the
Termination Date.

     6. Public Announcements and Non-Disparagement. Cronin and Wallace shall
mutually agree upon the content of any voluntary statements, whether oral or
written, to be made by Cronin or Wallace to any third party or parties regarding
Cronin's termination of employment, including, without limitation, any press
release or other statements to the press, except that this Paragraph 6 shall not
apply to any statements required to be made by reason of law, regulation, or any
judicial or other similar proceeding or order. Cronin and Wallace each hereby
covenant and agree not to make any public or private statements to any third
party, including, without limitation, to any representative of any news
organization, regarding the other party hereto that are intended to, or can
reasonably be expected to, cause such other party's reputation to be damaged in
any material respect.

     7. Payment of Certain Expenses. In addition to any rights which Cronin may
have under Paragraph 13 of the Employment Agreement, Wallace agrees to reimburse
Cronin for reasonable attorney fees incurred in connection with the preparation
of this Agreement and the



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Consulting Agreement between Cronin and Wallace of even date hereof, subject to
a limit of $15,000.

     8. Confidentiality, Records and Nonsolicitation. In addition to his
covenants under Paragraph 8 of the Employment Agreement (relating to
Confidentiality, Records, Nonsolicitation and Enforcement), Cronin further
covenants and agrees that he shall not disclose or discuss, other than with
legal counsel, personal tax or financial advisors, or members of Cronin's
immediate family, either the existence of or any details of this Agreement,
except that which Wallace publicly discloses. Cronin further agrees that,
insofar as he discusses the circumstances of his termination of employment with
anyone other than those parties listed in the previous sentence, he will state
only that he voluntarily retired and that he has agreed with Wallace not to make
any further comment. To the extent Cronin discusses the existence or terms of
this Agreement with any third party as authorized above, Cronin shall inform
such third party of the obligation to maintain confidentiality of all
communications concerning this Agreement and take reasonable and appropriate
efforts to assure such continued confidentiality.

     9. Limitations on Compensation and Benefits. Cronin's benefits under the
Wallace deferred income (capital accumulation) plan shall be paid in accordance
with and in the amounts due under the terms of such plan (i.e., in a single sum
annually no later than January 15 of each relevant year). Except as specifically
provided in the Employment Agreement, as modified, supplemented or liquidated by
this Agreement, or in this Agreement, and except as specifically provided by
Wallace's customary practice for payment of accrued Board of Director's fees,
Cronin hereby waives any and all claims to salary, incentives, payments, or
benefits of any kind.

     10. Mutual Release of Claims.

          (a) Cronin's Release. Except as to the benefits expressly made
available to Cronin hereunder and any accrued vested benefits available to
Cronin under the express terms and conditions of any employee benefit plan
maintained by Wallace or any of its subsidiaries or affiliates, Cronin, as his
free and voluntary act and on behalf of himself, his heirs, administrators,
executors, successors and assigns, hereby releases and discharges Wallace, its
subsidiaries and affiliates and the directors, officers, employees, and agents
of each of them, of and from any and all debts, obligations, claims, demands,
judgments or causes of action of any kind whatsoever in tort, contract, by
statute, or on any other basis for compensatory, punitive or other damages,
expenses, reimbursements or costs of any kind, including but not limited to any
and all claims, demands, rights, and/or causes of action arising out of
allegations relating to a claimed breach of an alleged oral or written contract,
or relating to purported employment discrimination or civil rights violations
(such as, but not limited to, those arising under Title VII of the Civil Rights
Act of 1964 (42 U.S.C. Section 2000e, et seq), the Civil Rights Acts of 1866 and
1871 (42 U.S.C. Sections 1981 and 1983), the Age Discrimination in Employment
Act of 1967 (29 U.S.C. Section 621, et seq.), the Equal Pay Act of 1963 (29
U.S.C. Section 201 et seq.), the Family and Medical Leave Act (29 U.S.C. Section
2691 et seq.), the Americans With Disabilities Act (42 U.S.C. Section 12,101 et
seq.), the Employee Retirement Income Security Act (29 U.S.C. Section 1001 et
seq.), the Illinois Human Rights Act (775 ILCS 5-101 et seq.),



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the Illinois Wage payment and Collection Act (820 ILCS 115/1 et seq.), or any
other applicable federal, state or local law, regulation, ordinance or order)
which he might have or assert against any of said entities or persons (1) by
reason of his active employment by Wallace or the termination of said employment
relationship and all circumstances related thereto, or (2) by reason of any
other matter, cause or thing whatsoever, from the beginning of time to the date
of execution of this Agreement; provided, however, that this Agreement shall not
limit or impair Cronin's right as a former officer and director of Wallace to
indemnification by Wallace to the full extent provided, by the corporate
governing documents or any employee benefit plan of Wallace or under any
director and officer liability insurance policy maintained by Wallace, for any
incumbent or former officer or director of Wallace; and further provided,
however, that Cronin does not release any rights under the Employment Agreement
(including, without limitation, Paragraph 13 thereof) as applicable to post Date
of Termination payments or benefits under the Employment Agreement, as modified,
supplemented or liquidated by this Agreement.

          (b) Wallace's Release. Wallace, on behalf of itself, any predecessors
in interest, whether or not incorporated, its shareholders (in their capacity as
such) and its successors and assigns does hereby irrevocably and unconditionally
release Cronin and his estate, heirs, beneficiaries, executors, personal
representatives or other successors and assigns, from all claims, controversies,
liabilities, demands, causes of action, debts, obligations, promises, acts,
agreements, rights of contribution and/or indemnification, and damages of
whatever kind or nature, whether known or unknown, suspected or unsuspected,
foreseen or unforeseen, liquidated or contingent, actual or potential, joint or
individual, that it or they have had or now have, based on any and all aspects
of Cronin's employment with Wallace or his separation from employment with
Wallace, including but not limited to: all claims arising under the Employment
Agreement; any and all claims for breach of express or implied contracts or the
covenant of good faith and fair dealing (whether written or oral), and any and
all claims for breach of fiduciary duty, breach of promise, detrimental reliance
or tort, whether based on common law or otherwise and any and all claims that
may be asserted on Wallace's behalf by its shareholders or any other third
party. The foregoing list is meant to be illustrative rather than inclusive.
Notwithstanding the foregoing, Wallace does not release any claims that may
hereafter arise.

     11. Validity of Agreement. If any provision, or portion thereof, of this
Agreement is determined to be invalid under any applicable statute or rule of
law, only such provision, and only to the extent determined to be invalid, shall
be deemed omitted from this Agreement, the remainder of which shall remain fully
in force and effect.

     12. Tax Withholding. All payments to Cronin by Wallace under this Agreement
shall be subject to the withholding of any taxes required to be withheld by
federal, state, or local law with respect to any such payment.

     13. Applicable Law. The construction, interpretation and performance of
this Agreement shall be governed by the laws of the State of Illinois without
regard to choice of laws principles.


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     14. Headings. The headings of the paragraphs of this Agreement have been
included solely for convenience of reference and are not to be used in the
interpretation of the provisions of this Agreement.

     15. OWBPA Rights. Cronin understands that, pursuant to the Older Workers
Benefit Protection Act of 1990, he has the right to consult with an attorney
before signing this Agreement, he has twenty-one (21) days to consider this
Agreement before signing it and may revoke the Agreement within seven (7)
calendar days after signing it. Cronin further understands that the Agreement
will not become effective or enforceable until the seven-day revocation period
has expired and that the benefits provided in this Agreement will not be
provided until such period has expired.

     16. Entire Agreement. Subject to the terms of the Consulting Agreement
between Cronin and Wallace of even date herewith, this Agreement constitutes the
entire agreement between Wallace and Cronin with respect to the subject matter
hereof and shall not be amended, modified, or amplified without specific written
provision to that effect, signed by both parties. No oral statement of any
person whosoever shall, in any manner or degree, modify or otherwise affect the
terms and provisions of this Agreement.

     17. Additional Representations. By signing this Agreement, Cronin states
that:

          (a) He has read it and has had sufficient time to consider its terms;

          (b) He understands it and knows that he is giving up important rights;

          (c) He agrees with everything in it;

          (d) He is aware of his right to consult an attorney before signing it,
              and has been so advised; and

          (e) He has signed it knowingly and voluntarily.

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the day and year first above written.


Attest:                                        WALLACE COMPUTER SERVICES, INC.

                                               By:
---------------------                          -------------------------------
                                               Title:





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Witness:                                    ROBERT J. CRONIN


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