Document:

Amended and Restated Employment Agreement

 Exhibit 10.27 
  
 MOORE WALLACE INCORPORATED 
 Moore
Wallace Executive Offices 
 375 Park Avenue 
 New York, New York 
 10152 
  
 Amended and Restated March 25, 2004 
  

John Paloian 
 [ADDRESS] 
  
  
 Dear John:

  
 On behalf of Moore Wallace Incorporated (the
“Company”), we are all extremely pleased that you have agreed to serve as an employee of the Company, effective as of March 25, 2004, in accordance with the provisions of this letter agreement (this “Agreement”),
which, along with any employment and other policies applicable to employees of the Company and its subsidiaries from time to time during the term of your employment, governs the terms of your employment. Within 30 days of the closing of the
transaction contemplated by the Combination Agreement, dated as of November 8, 2003 (the “Combination Agreement”) between R.R. Donnelley & Sons Company and the Company (the “Closing Date”), you
shall be elected by the Board to serve as Executive Vice President of the Company and President – Donnelley Print Solutions or its successor division. If the transaction contemplated by the Combination Agreement is not closed by March
31, 2004, you will be elected by the Board as an officer of the Company on or before April 30, 2004. 
  
 We and you hereby acknowledge that your employment with the Company constitutes “at-will” employment and that either party may terminate this
Agreement at any time, upon written notice of termination within a reasonable period of time before the effective date of the termination. With respect to the terms of your employment with the Company after your election as an officer of the
Company, you will have the customary duties, responsibilities and authorities of an executive vice president of the Company at a corporation of a similar size and nature. Your office will be located in the greater Chicagoland area. You will report
to the Chief Executive Officer of the Company. You will also receive such office, staffing and other assistance as is commensurate with that received by other senior executive officers at your level in the Company. 
  
 I. Compensation 
  
 With respect to compensation for your services as an employee and in due course, an Executive Vice President of the Company
and President – Donnelley Print Solutions or its successor division, you will receive the following compensation and benefits, from which the Company may withhold any amounts required by applicable law: 
  
 (i) The Company will pay you a base salary
(“Base Salary”) at the rate of U.S. $500,000 per year. This Base Salary will be paid in accordance with the normal payroll practices of the Company. 
  
 (ii) In respect of each calendar year of the Company (starting with the 2004 calendar year), you will be
eligible to receive an annual bonus (the “Annual Bonus”) in accordance with the Company’s annual incentive compensation plan with a target bonus opportunity of one hundred forty percent (140%) of Base Salary; provided,
however, that the Annual Bonus with respect to 2004 is guaranteed to be $525,000. The performance objectives for your Annual Bonus with respect to each calendar year will be determined by the board of directors of the Company (the
“Board”) or any designated committee thereof. 
  
 (iii) The Company will pay you a signing bonus of $400,000 on the date hereof. 
  
 (iv) Within 30 days of the Closing Date, you will be granted restricted stock units in respect of twenty five thousand (25,000) shares of
common stock of the R.R. Donnelley & Sons Company (the “Initial Performance Units”) before the application of the potential 3x multiplier as described on Annex C, pursuant to the R.R. Donnelley & Sons Company 2004
Performance Incentive Plan or the Company’s 2003 Long Term Incentive Plan, in the discretion of the Board. The Initial Performance Units shall be evidenced by an award agreement. The number of shares of the Company’s common stock payable
in respect of one-half of the Initial Performance Units will be determined based on the performance of the Company against the “Cost Savings Matrix,” and one-half will be determined based on the performance of the Company against the
“Normalized Earnings Per Share Matrix,” each as shown on Annex C. The agreement evidencing the award of Initial Performance Units will provide that the Company may withhold shares of common stock which would otherwise be delivered to you
in settlement of the Initial Performance Units having an aggregate fair market value determined as of the date of the obligation to withhold, in the amount necessary to satisfy the withholding obligation. Notwithstanding the foregoing, in the event
that the Combination 

  

 
Agreement shall have been terminated in accordance with its terms or shall have been abandoned by mutual agreement of the parties thereto, then within 30
days of the date of such termination or abandonment the Company will grant you, in lieu of the Initial Performance Units, restricted stock units in respect of 39,682 common shares of the Company which will have terms set by the Board, in its sole
discretion, which are intended to provide comparable economics as the Initial Performance Units (the “Replacement Performance Units”). 
  
 (v) In addition, within 30 days of the Closing Date, you will be granted options to purchase an aggregate of
one hundred thousand (100,000) shares of common stock of the R.R. Donnelley & Sons Company (“Common Shares”) to be issued under the R.R. Donnelley & Sons Company 2004 Performance Incentive Plan or one of the Company’s
long term incentive plans, in the discretion of the Board (the “Initial Grant”). The exercise price of the options comprising the Initial Grant shall be equal to the closing price of the Common Shares on the date of
grant. All options in the Initial Grant shall vest 25% per year over four (4) years beginning on the first anniversary of the date the options are granted and then on each succeeding anniversary of the date the options are granted provided you are
then employed. Notwithstanding the foregoing, in the event that the Combination Agreement shall have been terminated in accordance with its terms or shall have been abandoned by mutual agreement of the parties thereto, then within 30 days of the
date of such termination or abandonment the Company will grant you, in lieu of the Initial Grant, an equity award with respect to the common shares of the Company which will have terms set by the Board, in its sole discretion, which are intended to
provide comparable economics as the Initial Grant. 
  
 (vi) In addition, you will be immediately eligible to participate in any nonqualified pension plans (with no waiting period), and qualified pension plans, if any, (subject to applicable waiting periods), in which the current senior
executive officers of the pre-combination Company may be decided by the Board to be eligible to participate following the combination of the Company and R.R. Donnelley & Sons Company, and, in any event, you will be eligible (a) for medical,
hospital, dental, vision, life and accidental death and dismemberment insurance in customary amounts, (b) to participate in the Company’s Supplemental Executive Retirement Plan and Supplemental Executive Health Plan, in each case, and if either
or both of these two programs are terminated by the Board and a determination is made to effect a replacement for those benefits to other senior executives of the same level as you, you will receive compensation or other benefits of comparable value
as determined by the Board in its sole discretion and (c) to receive customary financial planning services. 
  
 (vii) You will be eligible for four (4) weeks vacation annually. 
  
 (viii) You will be eligible for a car allowance of $ 1,400 monthly. 
  
 II. Severance 
  
 If (i) the Company terminates your employment without Cause, as defined in Annex A, or (ii) after the Closing Date, you
terminate your employment for Good Reason, as defined in Annex A, the Company will pay you an amount equal to one and one-half (1  1/2) times your Annualized Total Compensation (as defined below), subject to the execution by you of a customary release, which amount shall be payable in equal installments over the eighteen (18) month period following the
date your employment with the Company is terminated (the “Termination Date”). The Company will also provide to you a continuation of all benefits, including automobile and other related benefits, if any, which you were
eligible to receive immediately prior to such termination, for a period of eighteen (18) months following the Termination Date. 
  
 “Annualized Total Compensation” means Base Salary plus Annual Bonus (at the target level) for one year at the rate in
effect immediately before the Termination Date. 
  
 Notwithstanding the foregoing, if the transaction contemplated by the Combination Agreement does not occur by June 30, 2004, and there is no failure on the Company’s part to perform its obligations as referenced in Annex A paragraph c
(iv) & (v), you agree to remain as an employee of the Company for a period of at least 24 months from your first day of employment with the Company and shall work on other strategic acquisitions and strategies among such other duties and
responsibilities as the Chief Executive Officer shall designate. 
  
 Upon any termination by the Company without Cause or any termination by you for Good Reason, in either case, after the Closing Date, except as may be set forth in any award agreement, all outstanding stock options, grants, restricted stock
awards or other equity grants (excluding the Initial Performance Units or Replacement Performance Units, as applicable) issued to you will vest 100% immediately as of the Termination Date. With respect to the Initial Performance Units, upon a
termination of your employment by the Company without Cause or any termination by you for Good Reason, in either case, after the Closing Date: (i) the measurement date for purposes of calculating the payout under those Initial Performance Units that
are linked to Cost Savings shall be the date of your termination and (ii) the Initial Performance Units that are linked to Normalized Earnings Per Share objectives shall vest and be payable, if at all, on the same terms and conditions that would
have applied had your employment not been terminated (the Replacement Performance Unit award agreement will specify, in accordance with the Board’s determination in Section I (iv) above, the vesting and measurement provisions in the event of
such a termination). In the event of any termination of your employment, you agree to resign as an officer and director of the Company and its subsidiaries and affiliates. Your rights of indemnification under the Company’s and its
subsidiaries’ and affiliates’ organizational documents, any plan or agreement at law or otherwise and your rights 

  

 2 

 
thereunder to director’s and officer’s liability insurance coverage for, in both cases, actions as an officer and director of the Company and its
affiliates shall survive any termination of your employment. 
  
 The Company shall provide you with term life insurance benefits of $2,000,000 and provide you with long term disability benefits that will pay you your Base Salary and Annual Bonus for up to 12 months, provided that you are insurable in
accordance with standard underwriting requirements (including passing any physical exams and providing any information necessary to obtain such insurance coverage). 
  
 III. General 
  
 The Company will provide you with the same indemnification provisions and Directors and Officers insurance as that which is provided to other senior
executives and directors of the Company. The indemnification will be to the full extent of the indemnity that is allowed by either applicable Canadian or Delaware statutory requirements (whichever jurisdiction is determined to apply) and as those
statutes or relevant law may exist at the time the indemnification may arise or is adjudicated. 
  
 Independent of all promises and obligations of the Company set forth herein, you agree (i) that at all times both during and after your employment, you
will respect the confidentiality of Company’s and its subsidiaries’ and affiliates’ confidential information and will not disparage the Company and its subsidiaries and affiliates or their officers, directors or employees, and (ii)
from the date hereof until your first day of employment with the Company, during your employment and for twelve (12) months after the termination of your employment (or for fifteen (15) months after the date of this Agreement in the event you do not
report for work with the Company on or prior to March 31, 2004), you will not (a) accept a position with, or provide material services to, an entity that competes with a portion of the Company’s and/or R.R. Donnelley & Sons Company’s
business representing more than $25 million of such company’s revenues on the date of your departure (without respect to whether the transaction contemplated between Company and R.R. Donnelley & Sons Company is completed), (b) solicit or
hire, or assist others in the solicitation or hiring of the Company’s employees, other than your secretary or administrative assistant or (c) interfere with the Company’s business relationships with any material customers or suppliers.

  
 All notices or communications under this Agreement must be in
writing, addressed; (i) if to the Company, to the attention of the EVP Business & Legal Affairs or such other officer as the Company may designate from time to time at his or her office and (ii) if to you, at your address first written above (or
to any other addresses as either party may designate in a notice duly delivered as described in this paragraph). Any notice or communication shall be delivered by facsimile (with proof of transmission), by hand or by courier (with proof of
delivery). Notices and communications may also be sent by certified or registered mail, return receipt requested, postage prepaid, addressed as above. Notice shall be effective upon the actual receipt of notice by the recipient thereof. 

 
 You represent and agree that you and your legal representatives at the law
firm Tirola and Herring have not, as of the date of this agreement, and will not disclose or discuss the terms, provisions or existence of this letter with anyone but designated representatives of the Company, without prior written consent by the
Company’s Executive Vice President of Business & Legal Affairs, and that this letter and all prior drafts of this letter shall be deemed Confidential Information as that term is defined under the Confidentiality Agreement signed by you on
December 16, 2003, a copy of which is attached hereto as Annex D. 
  
 Any controversy or claim arising out of or relating to this Agreement or the breach of this Agreement that cannot be resolved by you and the Company, including any dispute as to the calculation of any payments hereunder, and the terms of
this Agreement, shall be determined by a single arbitrator in New York, New York, in accordance with the rules of the American Arbitration Association. The decision of the arbitrator shall be final and binding and may be entered in any court of
competent jurisdiction. The arbitrator may award the party he determines has prevailed in the arbitration any legal fees and other fees and expenses that may be incurred in respect of enforcing its respective rights under this Agreement. This
Agreement shall be governed by and interpreted in accordance with the laws of the State of New York. 
  
 Effective as of the Closing Date, all references herein to the “Company” shall be deemed to be references to R.R. Donnelley & Sons Company
and its subsidiaries and affiliates. 
  
 This Agreement sets forth
the entire agreement between us with respect to the matters set forth herein, and fully supersedes any prior agreements or understandings between us. This Agreement may be executed in counterparts. This Agreement may not be modified or terminated
orally. 
  
 If the foregoing terms and conditions are acceptable
and agreed to by you, please sign on the line provided below to signify such acceptance and agreement and return the executed copy to the Chief Executive Officer of the Company, 375 Park Avenue, New York, New York 10152. 
  

			
	MOORE WALLACE INCORPORATED
		
	By:	 	/S/    MARK A.
ANGELSON        
	 Name:
	 	Mark A. Angelson
	 Title:
	 	Chief Executive Officer

  
 Accepted and Agreed as of this
23rd day of December, 2003 
  

	
	
	/S/    JOHN
PALOIAN        
	John Paloian

  

 3 

  
 Annex A 
  
 Definitions 
  
 a. “Cause” means (i) the willful and continued failure of
employee to perform substantially his duties with the Company (other than any such failure resulting from employee’s incapacity due to physical or mental illness or any such failure subsequent to employee being delivered a notice of termination
without Cause by the Company or delivering a notice of termination for Good Reason to the Company) after a written demand for substantial performance is delivered to employee by the Chief Executive Officer or the Board that specifically identifies
the manner in which the Chief Executive Officer or the Board believes that employee has not substantially performed employee’s duties, (ii) the willful engaging by employee in conduct which is demonstrably and materially injurious (monetarily
or otherwise) to the business, reputation, character or community standing of the Company or its subsidiaries and affiliates, (iii) conviction of or the pleading of nolo contendere with regard to, a felony or any crime involving fraud,
dishonesty or moral turpitude, or (iv) refusal or failure to attempt in good faith to follow the written direction of the Chief Executive Officer or the Board (provided that such written direction is consistent with employee’s duty and station)
promptly upon receipt of such written direction. A termination for Cause after a Change in Control shall be based only on events occurring after such Change in Control; provided, however, the foregoing limitation shall not apply to an event
constituting Cause which was not discovered by the Company prior to a Change in Control. For purpose of this paragraph (a), no act or failure to act by employee shall be considered “willful” unless done or omitted to be done by employee in
bad faith and without reasonable belief that employee’s action or omission was in the best interests of the Company or its subsidiaries and affiliates. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted
by the Board or based upon the advice of the Company’s principal outside counsel shall be conclusively presumed to be done, or omitted to be done, by employee in good faith and in the best interests of the Company. Notwithstanding the
foregoing, the Company shall provide the employee a reasonable amount of time, after a notice and demand for substantial performance is delivered to the employee, to cure any such failure to perform, and if such failure is so cured within a
reasonable time thereafter, such failure shall not be deemed to have occurred. 
  
 b. “Change in Control” means the occurrence of any one of the following events: 
  
 (i) individuals who, on the date of this Agreement, constitute the Board (the “Incumbent Directors”) cease
for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the date of this Agreement, whose election or nomination for election was approved by a vote of at least two-thirds of the
Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent
Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened
solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director; 
  
 (ii) any “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the
“Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
of the Company representing 35% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided,
however, that the event described in this paragraph (ii) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions: (A) by the Company or any subsidiary, (B) by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any subsidiary, (C) by any underwriter temporarily holding securities pursuant to an offering of such securities, or (D) pursuant to a Non-Qualifying Transaction (as defined in paragraph (iii)); 

 
 (iii) the consummation of an arrangement, amalgamation,
merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its Subsidiaries that requires the approval of the Company’s 

  

 4 

 
stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless
immediately following such Business Combination: (A) more than 50% of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the
ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by
Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such
voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (B) no person (other than any employee
benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly, of 35% or more of the total voting power of the outstanding voting
securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) other than persons set forth in (A) through (D) of paragraph (ii) and (C) at least a majority of the members of the
board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors at the time of the Board’s approval of the execution
of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”);

  
 (iv) the closing of a sale of all or
substantially all of the Company’s assets, other than to an entity or in a manner where the voting securities immediately prior to such sale represent directly or indirectly after such sale at least 50% of the voting securities of the entity
acquiring such assets in approximately the same proportion as prior to such sale; or 
  
 (v) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company. 
  
 Notwithstanding the foregoing, a Change in Control of the Company shall not
be deemed to occur solely because any person acquires beneficial ownership of more than 35% of the Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces the number of Company Voting
Securities outstanding; provided, that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities beneficially
owned by such person, a Change in Control of the Company shall then occur. In addition, notwithstanding the foregoing, the consummation of (or any other action pursuant to the consummation of) the transaction contemplated by the Combination
Agreement shall not be a Change in Control. 
  
 c.
“Good Reason” means, without employee’s express written consent, the occurrence of any of the following events after the Closing Date: 
  
 (i) a change in the employee’s duties or responsibilities (including reporting responsibilities) that
taken as a whole represents a material and adverse diminution of the employee’s duties, responsibilities or status with the Company (other than a temporary change that results from or relates to the incapacitation of the employee due to
physical or mental illness); 
  
 (ii) a reduction
by the Company in employee’s rate of annual base salary or annual target bonus opportunity (including any material and adverse change in the formula for such annual bonus target) as the same may be increased from time to time; 
  
 (iii) any requirement of the Company that employee’s
office be more than seventy-five (75) miles from Chicago, Illinois or New York, New York; 
  
 (iv) failure of the Board, within 30 days of the Closing Date, to elect you as an officer, or in the case of the Combination Agreement
being terminated in accordance with its terms, or being abandoned by mutual agreement of the parties thereto; 
  
 (v) failure to issue the Replacement Performance Units or equity awards in lieu of the Initial Grant, within 30 days of the termination or
abandonment of the Combination Agreement; or 
  
 (vi) any material breach of the Agreement by the Company. 
  
 Notwithstanding the foregoing, a Good Reason event shall not be deemed to have occurred if the Company cures such action, failure or breach within ten (10) days after receipt of notice thereof given by employee. Employee’s right to
terminate employment for Good Reason shall not be affected by employee’s incapacities due to mental or physical illness and employee’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any event
or condition constituting Good Reason; provided, however, that employee must provide notice of termination of employment within ninety (90) days following employee’s knowledge of an event constituting Good Reason or such event shall not
constitute Good Reason under this Agreement. 
  

 5 

  
 Annex B 
  
 Gross-Up Payments 
  
 (a) Anything in this Agreement to the contrary notwithstanding, in the event
it shall be determined that any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity which effectuates a Change in Control (or
any of its affiliated entities) to or for the benefit of employee (whether pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Annex B) (the
“Payments”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by employee with respect
to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay to employee an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by employee of all taxes (including any Excise Tax) imposed upon the Gross-Up Payment, employee retains an amount of the Gross-Up Payment equal to the Excise
Tax imposed upon the Payments. For purposes of determining the amount of the Gross-up Payment, the employee shall be deemed to (i) pay federal income taxes at the highest marginal rates of federal income taxation for the calendar year in which the
Gross-up Payment is to be made, and (ii) pay applicable state and local income taxes at the highest marginal rate of taxation for the calendar year in which the Gross-up Payment is to be made, net of the maximum reduction in federal income taxes
which could be obtained from deduction of such state and local taxes. Notwithstanding the foregoing provisions of this Annex B, if it shall be determined that employee is entitled to a Gross-Up Payment, but that the Payments would not be subject to
the Excise Tax if the Payments were reduced by an amount that is less than 10% of the portion of the Payments that would be treated as “parachute payments” under Section 280G of the Code, then the amounts payable to employee under this
Agreement shall be reduced (but not below zero) to the maximum amount that could be paid to employee without giving rise to the Excise Tax (the “Safe Harbor Cap”), and no Gross-Up Payment shall be made to employee. The reduction of
the amounts payable hereunder, if applicable, shall be made by reducing first the payments under Section I(a)(ii), unless an alternative method of reduction is elected by employee. For purposes of reducing the Payments to the Safe Harbor Cap, only
amounts payable under this Agreement (and no other Payments) shall be reduced. If the reduction of the amounts payable hereunder would not result in a reduction of the Payments to the Safe Harbor Cap, no amounts payable under this Agreement shall be
reduced pursuant to this provision. 
  
 (b) Subject to the
provisions of paragraph (a) of this Annex B, all determinations required to be made under this Annex B, including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment, the reduction of the Payments to the Safe Harbor
Cap and the assumptions to be utilized in arriving at such determinations, shall be made by the public accounting firm that is retained by the Company as of the date immediately prior to the Change in Control (the “Accounting
Firm”) which shall provide detailed supporting calculations both to the Company and employee within fifteen (15) business days of the receipt of notice from the Company or the employee that there has been a Payment, or such earlier
time as is requested by the Company (collectively, the “Determination”). In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change in Control,
employee may appoint another nationally recognized public accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm
shall be borne solely by the Company and the Company shall enter into any agreement reasonably requested by the Accounting Firm in connection with the performance of the services hereunder. The Gross-up Payment under this Annex B with respect to any
Payments shall be made no later than thirty (30) days following such Payment. If the Accounting Firm determines that no Excise Tax is payable by employee, it shall furnish employee with a written opinion to such effect, and to the effect that
failure to report the Excise Tax, if any, on employee’s applicable federal income tax return will not result in the imposition of a negligence or similar penalty. In the event the Accounting Firm determines that the Payments shall be reduced to
the Safe Harbor Cap, it shall furnish employee with a written opinion to such effect. The Determination by the Accounting Firm shall be binding upon the Company and employee, except as provided below. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the Determination, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”) or Gross-up Payments
are made by the Company which should not have been made (“Overpayment”), consistent with the calculations required to be made hereunder. In the event that the employee thereafter is required to make payment of any
Excise Tax or additional Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be promptly
paid by the Company to or for the benefit of employee. In the event the amount of the Gross-up Payment exceeds the amount necessary to reimburse the employee for his Excise Tax, the Accounting Firm shall determine the amount of the Overpayment that
has been made and any such Overpayment (together with interest at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by employee (to the extent he has received a refund if the applicable Excise Tax has been paid to the
Internal Revenue Service) to or for the benefit of the Company. Employee shall cooperate, to the extent his expenses are reimbursed by the Company, with any reasonable requests by the Company in connection with any contests or disputes with the
Internal Revenue Service in connection with the Excise Tax and the employee shall permit the Company to control issues related to the Excise Tax (at its expense) to permit a representative of the Company to accompany the employee to any conference
with any taxing authority and to promptly deliver to the Company copies of any written communications and summaries of any verbal communications with any taxing authority regarding the Excise Tax. 
  

 6 

 Annex C 
  
 Initial Performance Units 
  
 Cost Savings Matrix 
  
 Performance against this matrix shall be measured on the third anniversary of the effective date of the Combination Agreement (the “Effective
Date”). Initial Performance Units related to this performance objective will be vested and payable based on achievement of the Cost Savings targets set forth below, interpolating the multiple for Cost Savings between $100 million and $300
million. 
  

				
	 Annualized Run Rate of Cost Savings

	  	Multiple of
Initial
Performance
Units
Payable

	 
	 Not less than $100 million
	  	100	%
	 $200 million
	  	200	%
	 $300 million or more
	  	300	%

  
 “Cost
Savings” shall be calculated by measuring the actual incremental savings effected through actions implemented following the Effective Date, with respect to categories such as, but not limited to, net headcount reductions, purchasing synergies,
rationalization of facilities and rationalization of information technology systems, as are reasonably expected to recur, on an annual basis, for the foreseeable future. In determining Cost Savings, the Committee may make equitable adjustments to
reflect extraordinary events as it shall reasonably deem necessary and appropriate to avoid any increase or diminution in the opportunity conveyed by the portion of the Initial Performance Units subject to the Cost Savings Matrix. 
  
 Normalized Earnings Per Share Matrix: 
  
 Performance against this matrix shall be measured over the fifth through
twelfth full calendar quarters after the Effective Date. Initial Performance Units related to this performance objective will be vested and payable at the end of such performance period, to the extent the applicable average annual normalized EPS
objectives are achieved, interpolating the multiple for EPS between $2.10 and $2.30. Normalized earnings shall be determined by excluding from the calculation of earnings (i) contingent liabilities for which prior management did not reserve,
including, without limitation, pending litigations, (ii) decreased earnings resulting from changes in accounting principles, including, without limitation, the requirement that stock options and other equity awards should be expensed (or, where
applicable, should be expensed differently than under prior practices at the Company), and (iii) unusual items not expected to occur in the ordinary course of business or unrelated to the ongoing operation of the business, including, without
limitation, acquisition related charges, restructuring and restructuring related charges that are not currently determinable, or gains or losses from asset sales. 
  

				
	 Average Annual Normalized EPS

	  	Percentage
of Initial
Performance
Units
Payable

	 
	 At least $1.89
	  	100	%
	 $1.99
	  	200	%
	 $2.09 or more
	  	300	%

  
 Normalized Earnings Per Share shall be
adjusted by the Committee, as it shall deem reasonably necessary and appropriate, to avoid any increase or diminution in the opportunity conveyed by the portion of the Initial Performance Units subject to the Normalized Earnings Per Share Matrix
that could result from any acquisition or disposition of any business or division (whether by merger, stock purchase or sale, sale or purchase of assets, or otherwise) made by the Company. 
  

 7Employment Agreement

 Exhibit 10.28 
  
 R.R. Donnelley & Sons Company 
 77 West Wacker Drive 
 Chicago, Illinois 
 60601 
  
 February 21, 2005 
  
 Mr. Glenn R. Richter 
 [ADDRESS] 
  
 Dear Glenn: 
  
 We at R.R.
Donnelley & Sons Company (the “Company”) are pleased that you have agreed to serve as Executive Vice President and Chief Financial Officer of the Company effective as of a date in March, 2005, to be mutually agreed
(the “Effective Date”) in accordance with the provisions of this letter agreement (this “Agreement”), which, along with any employment and other policies applicable to employees of the
Company and its subsidiaries from time to time during the term of your employment, governs the terms of your employment. 
  
 We and you hereby acknowledge that your employment with the Company constitutes “at-will” employment and that either party may terminate this
Agreement at any time. From the Effective Date and for a period of approximately one year thereafter, you should focus your attention on familiarizing yourself to the greatest extent possible with all facets of the Company’s business,
operations, and financial affairs and will assume immediate responsibility for the financial control, investor relations, tax, and treasury functions. From time to time during such period of approximately one year, you agree to assume other
responsibilities to be assigned by the Chief Executive Officer, including, but not limited to, responsibility for the Company’s credit and collection, billing and invoicing, payables and payroll functions, and such additional duties and
responsibilities as you may be assigned from time to time consistent with the role of Chief Financial Officer. Your office will be located in the greater Chicagoland area. You will report to the Chief Executive Officer of the Company. The Executive
Vice President, Strategy shall continue to discharge his present responsibilities and shall continue to report to the Chief Executive Officer. 
  
 I. Compensation 
  
 During your employment with the Company, you will receive the following compensation and benefits, from which the Company may withhold any amounts
required by applicable law: 
  
 (i) The Company
will pay you a base salary (“Base Salary”) at the rate of U.S. $500,000 per year. This Base Salary will be paid in accordance with the normal payroll practices of the Company and will not be prorated in your first
year. 
  

 (ii) In respect of each calendar year of the Company (starting with the 2005 calendar
year), you will be eligible to receive an annual bonus (the “Annual Bonus”) in accordance with the Company’s annual incentive compensation plan with a target bonus opportunity of one hundred forty percent (140%) of Base Salary,
which shall not be prorated in the first year. The performance objectives for your Annual Bonus with respect to each calendar year will be determined by the board of directors of the Company (the “Board”) or any designated committee
thereof. 
  
 (iii) The Chief Executive Officer
will recommend to the Human Resources Committee of the Company’s Board of Directors that you should be granted 50,000 shares of restricted common stock of the Company under the Company’s 2004 Performance Incentive Plan. The agreement
evidencing such award shall be substantially in the form attached as Annex C to this Agreement. You will be eligible to be considered for future grants from time to time. 
  
 (iv) In addition, you will be immediately eligible to participate in any nonqualified pension plans. You
will be eligible (a) for medical, hospital, dental, vision, life and accidental death and dismemberment insurance in customary amounts, (b) to participate in the Company’s Supplemental Executive Retirement Plan and (c) to receive customary
financial planning services. 
  
 (v) You will be
eligible for four (4) weeks vacation annually. 
  
 (vi) You will be eligible for a car allowance of $1,400 monthly. 
  
 (vii) The Company will reimburse you for the attorneys’ fees, in an amount not to exceed $5,000, that you have actually incurred in connection with the negotiation and review of this Agreement. 
  
 II. Severance 
  
 If (i) the Company terminates your employment without Cause, as defined in Annex A, or (ii) you terminate your employment
for Good Reason, as defined in Annex A, the Company will pay you an amount equal to one and one-half (1 1⁄2) times your Annualized Total Compensation (as defined below), subject to the execution by you of a customary release, which amount shall
be payable in equal installments over the eighteen (18) month period following the date your employment with the Company is terminated (the “Termination Date”). The Company will also provide to you a continuation of all benefits,
including automobile and other related benefits, if any, which you were eligible to receive immediately prior to such termination, for a period of eighteen (18) months following the Termination Date. 
  

 -2- 

 “Annualized Total Compensation” means Base Salary plus Annual Bonus (at the target
level) for one year at the rate in effect immediately before the Termination Date. 
  
 Upon any termination by the Company without Cause or any termination by you for Good Reason, in either case, except as may be set forth in any award agreement, all outstanding stock options, grants, restricted stock
awards or other equity grants issued to you will vest 100% immediately as of the Termination Date. In the event of any termination of your employment, you agree to resign as an officer and director of the Company and its subsidiaries and affiliates.
Your rights of indemnification under the Company’s and its subsidiaries’ and affiliates’ organizational documents, any plan or agreement at law or otherwise and your rights thereunder to director’s and officer’s liability
insurance coverage for, in both cases, actions as an officer and director of the Company and its affiliates shall survive any termination of your employment. 
  
 III. General 
  
 The Company will provide you with the same indemnification provisions and Directors and Officers insurance as that which is provided to other senior
executives and directors of the Company. 
  
 Independent of all
promises and obligations of the Company set forth herein, you agree (i) that at all times both during and after your employment, you will respect the confidentiality of Company’s and its subsidiaries’ and affiliates’ confidential
information and will not disparage the Company and its subsidiaries and affiliates or their officers, directors or employees, and (ii) during your employment and for eighteen (18) months after the termination of your employment, you will not (a)
accept a position with, or provide material services to, an entity that competes with a portion of the Company’s business representing more than $25 million of such company’s revenues on the date of your departure, (b) solicit or hire, or
assist others in the solicitation or hiring of, the Company’s employees, or (c) interfere with the Company’s business relationships with any material customers or suppliers. 
  
 All notices or communications under this Agreement must be in writing, addressed; (i) if to the Company, to the attention of
the Chief Administrative Officer or such other officer as the Company may designate from time to time at his office and (ii) if to you, at your address first written above (or to any other addresses as either party may designate in a notice duly
delivered as described in this paragraph). Any notice or communication shall be delivered by facsimile (with proof of transmission), by hand or by courier (with proof of delivery). Notices and communications may also be sent by certified or
registered mail, return receipt requested, postage prepaid, addressed as above. Notice shall be effective upon the actual receipt of notice by the recipient thereof. 
  
 You represent and agree that you and your legal representatives, if any, have not, as of the date of this agreement, and
will not disclose or discuss the terms, provisions or existence of this letter with anyone but designated representatives of the Company, 

  

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without prior written consent by the Company’s Chief Administrative Officer, and that this letter and all prior drafts of this letter shall be deemed
confidential information. 
  
 Any controversy or claim arising out
of or relating to this Agreement or the breach of this Agreement that cannot be resolved by you and the Company, including any dispute as to the calculation of any payments hereunder, and the terms of this Agreement, shall be determined by a single
arbitrator in New York, New York, in accordance with the rules of the American Arbitration Association. The decision of the arbitrator shall be final and binding and may be entered in any court of competent jurisdiction. The arbitrator may award the
party he determines has prevailed in the arbitration any legal fees and other fees and expenses that may be incurred in respect of enforcing its respective rights under this Agreement. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of New York. 
  
 This
Agreement sets forth the entire agreement between us with respect to the matters set forth herein, and fully supersedes any prior agreements or understandings between us. This Agreement may be executed in counterparts. This Agreement may not be
modified or terminated orally. 
  
 If the foregoing terms and
conditions are acceptable and agreed to by you, please sign on the line provided below to signify such acceptance and agreement and return the executed copy to the Chief Administrative Officer of the Company, 77 West Wacker Drive, Chicago, Illinois
60601. 
  

					
	 R.R. DONNELLEY & SONS COMPANY

		
	By:	 	 /s/    Theodore J. Theophilos

	 	 	 Name:
	 	 Theodore J. Theophilos

	 	 	 Title:
	 	 Chief Administrative Officer

  
 Accepted and Agreed as of this
23rd day of February, 2005 
  

	
	
	 /s/    Glenn R. Richter

	 Glenn R. Richter

  

 -4- 

  
 Annex A 
  
 Definitions 
  
 a. “Cause” means (i) the willful and continued
failure of employee to perform substantially his duties with the Company (other than any such failure resulting from employee’s incapacity due to physical or mental illness or any such failure subsequent to employee being delivered a notice of
termination without Cause by the Company or delivering a notice of termination for Good Reason to the Company) after a written demand for substantial performance is delivered to employee by the Chief Executive Officer or the Board that specifically
identifies the manner in which the Chief Executive Officer or the Board believes that employee has not substantially performed employee’s duties, (ii) the willful engaging by employee in conduct which is demonstrably and materially injurious
(monetarily or otherwise) to the business, reputation, character or community standing of the Company or its subsidiaries and affiliates, (iii) conviction of or the pleading of nolo contendere with regard to, a felony or any crime involving
fraud, dishonesty or moral turpitude, or (iv) refusal or failure to attempt in good faith to follow the written direction of the Chief Executive Officer or the Board (provided that such written direction is consistent with employee’s duty and
station) promptly upon receipt of such written direction. A termination for Cause after a Change in Control shall be based only on events occurring after such Change in Control; provided, however, the foregoing limitation shall not apply to
an event constituting Cause which was not discovered by the Company prior to a Change in Control. For purpose of this paragraph (a), no act or failure to act by employee shall be considered “willful” unless done or omitted to be done by
employee in bad faith and without reasonable belief that employee’s action or omission was in the best interests of the Company or its subsidiaries and affiliates. Any act, or failure to act, based upon authority given pursuant to a resolution
duly adopted by the Board or based upon the advice of the Company’s principal outside counsel shall be conclusively presumed to be done, or omitted to be done, by employee in good faith and in the best interests of the Company. Notwithstanding
the foregoing, the Company shall provide the employee a reasonable amount of time, after a notice and demand for substantial performance is delivered to the employee, to cure any such failure to perform, and if such failure is so cured within a
reasonable time thereafter, such failure shall not be deemed to have occurred. 
  
 b. “Change in Control” means the occurrence of any one of the following events: 
  
 (i) individuals who, on the date of this Agreement, constitute the Board (the “Incumbent Directors”) cease for any
reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the date of this Agreement, whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent
Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director;
provided, however, that no individual initially elected or nominated as a director of the 

  

 -5- 

 Annex A 
  

 
Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of
proxies or consents by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director; 
  
 (ii) any “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the
“Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
of the Company representing 35% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided,
however, that the event described in this paragraph (ii) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions: (A) by the Company or any subsidiary, (B) by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any subsidiary, (C) by any underwriter temporarily holding securities pursuant to an offering of such securities, or (D) pursuant to a Non-Qualifying Transaction (as defined in paragraph (iii)); 

 
 (iii) the consummation of an arrangement, amalgamation,
merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its Subsidiaries that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of
securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (A) more than 50% of the total voting power of (x) the corporation resulting from such Business
Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the
Surviving Corporation (the “Parent Corporation”), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which
such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders
thereof immediately prior to the Business Combination, (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner,
directly or indirectly, of 35% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) other than persons set
forth in (A) through (D) of paragraph (ii) and (C) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business
Combination were Incumbent Directors at the time of the Board’s approval of the execution of the 

  

 -6- 

 Annex A 
  

 
initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (A), (B) and (C) above
shall be deemed to be a “Non-Qualifying Transaction”); 
  
 (iv) the closing of a sale of all or substantially all of the Company’s assets, other than to an entity or in a manner where the
voting securities immediately prior to such sale represent directly or indirectly after such sale at least 50% of the voting securities of the entity acquiring such assets in approximately the same proportion as prior to such sale; or 
  
 (v) the stockholders of the Company approve a plan of
complete liquidation or dissolution of the Company. 
  
 Notwithstanding the foregoing, a Change in Control of the Company shall not be deemed to occur solely because any person acquires beneficial ownership of more than 35% of the Company Voting Securities as a result of the acquisition of
Company Voting Securities by the Company which reduces the number of Company Voting Securities outstanding; provided, that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that
increases the percentage of outstanding Company Voting Securities beneficially owned by such person, a Change in Control of the Company shall then occur. In addition, notwithstanding the foregoing, the consummation of (or any other action pursuant
to the consummation of) the transaction contemplated by the Combination Agreement shall not be a Change in Control. 
  
 c. “Good Reason” means, without employee’s express written consent, the occurrence of any of the following events after the Closing
Date: 
  
 (i) a change in the employee’s
duties or responsibilities (including reporting responsibilities) that taken as a whole represents a material and adverse diminution of the employee’s duties, responsibilities or status with the Company (other than a temporary change that
results from or relates to the incapacitation of the employee due to physical or mental illness); 
  
 (ii) a reduction by the Company in employee’s rate of annual base salary or annual target bonus opportunity (including any material
and adverse change in the formula for such annual bonus target) as the same may be increased from time to time; 
  
 (iii) any requirement of the Company that employee’s office be more than seventy-five (75) miles from Chicago, Illinois; 

 
 (iv) any material breach of the Agreement by the Company.

  
 Notwithstanding the foregoing, a Good Reason event shall not
be deemed to have occurred if the Company cures such action, failure or breach within ten (10) days after receipt of notice thereof given by employee. Employee’s right to terminate employment for Good Reason shall not be affected by
employee’s incapacities due to mental or physical illness and employee’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any event or condition constituting Good Reason; provided, however, that
employee must provide notice of termination of employment within ninety (90) days following employee’s knowledge of an event constituting Good Reason or such event shall not constitute Good Reason under this Agreement. 
  

 -7- 

  
 Annex B 
  
 Gross-Up Payments 
  
 (a) Anything in this Agreement to the contrary notwithstanding, in the event
it shall be determined that any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity which effectuates a Change in Control (or
any of its affiliated entities) to or for the benefit of employee (whether pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Annex B) (the
“Payments”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by employee
with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay to employee an additional
payment (a “Gross-Up Payment”) in an amount such that after payment by employee of all taxes (including any Excise Tax) imposed upon the Gross-Up Payment, employee retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments. For purposes of determining the amount of the Gross-up Payment, the employee shall be deemed to (i) pay federal income taxes at the highest marginal rates of federal income taxation for the calendar year in
which the Gross-up Payment is to be made, and (ii) pay applicable state and local income taxes at the highest marginal rate of taxation for the calendar year in which the Gross-up Payment is to be made, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes. Notwithstanding the foregoing provisions of this Annex B, if it shall be determined that employee is entitled to a Gross-Up Payment, but that the Payments would not be
subject to the Excise Tax if the Payments were reduced by an amount that is less than 10% of the portion of the Payments that would be treated as “parachute payments” under Section 280G of the Code, then the amounts payable to employee
under this Agreement shall be reduced (but not below zero) to the maximum amount that could be paid to employee without giving rise to the Excise Tax (the “Safe Harbor Cap”), and no Gross-Up Payment shall be made to
employee. For purposes of reducing the Payments to the Safe Harbor Cap, only amounts payable under this Agreement (and no other Payments) shall be reduced. If the reduction of the amounts payable hereunder would not result in a reduction of the
Payments to the Safe Harbor Cap, no amounts payable under this Agreement shall be reduced pursuant to this provision. 
  
 (b) Subject to the provisions of paragraph (a) of this Annex B, all determinations required to be made under this Annex B, including whether and when a
Gross-Up Payment is required, the amount of such Gross-Up Payment, the reduction of the Payments to the Safe Harbor Cap and the assumptions to be utilized in arriving at such determinations, shall be made by the public accounting firm that is
retained by the Company as of the date immediately prior to the Change in Control (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and employee within fifteen (15)
business days of the receipt of notice from the Company or the employee that there has been a Payment, or such earlier time as is requested by the 

  

 -8- 

 Annex B 
  

 
Company (collectively, the “Determination”). In the event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change in Control, employee may appoint another nationally recognized public accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company and the Company shall enter into any agreement reasonably requested by the Accounting Firm in connection with the performance of the services
hereunder. The Gross-up Payment under this Annex B with respect to any Payments shall be made no later than thirty (30) days following such Payment. If the Accounting Firm determines that no Excise Tax is payable by employee, it shall furnish
employee with a written opinion to such effect, and to the effect that failure to report the Excise Tax, if any, on employee’s applicable federal income tax return will not result in the imposition of a negligence or similar penalty. In the
event the Accounting Firm determines that the Payments shall be reduced to the Safe Harbor Cap, it shall furnish employee with a written opinion to such effect. The Determination by the Accounting Firm shall be binding upon the Company and employee,
except as provided below. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the Determination, it is possible that Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”) or Gross-up Payments are made by the Company which should not have been made (“Overpayment”), consistent with the calculations required to be made hereunder. In the event
that the employee thereafter is required to make payment of any Excise Tax or additional Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment (together with interest at the rate
provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the benefit of employee. In the event the amount of the Gross-up Payment exceeds the amount necessary to reimburse the employee for his Excise Tax, the
Accounting Firm shall determine the amount of the Overpayment that has been made and any such Overpayment (together with interest at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by employee (to the extent he has
received a refund if the applicable Excise Tax has been paid to the Internal Revenue Service) to or for the benefit of the Company. Employee shall cooperate, to the extent his expenses are reimbursed by the Company, with any reasonable requests by
the Company in connection with any contests or disputes with the Internal Revenue Service in connection with the Excise Tax and the employee shall permit the Company to control issues related to the Excise Tax (at its expense) to permit a
representative of the Company to accompany the employee to any conference with any taxing authority and to promptly deliver to the Company copies of any written communications and summaries of any verbal communications with any taxing authority
regarding the Excise Tax. 
  

 -9- 

  
 Annex C 
  
 R.R. DONNELLEY & SONS COMPANY 
 RESTRICTED STOCK AWARD 
  
 This Restricted Stock Award (“Award”) is granted as of this <Grant Date> by R.R. Donnelley & Sons Company, a Delaware corporation (the
“Company”), to Glenn R. Richter (“Grantee”) under the Company’s 2004 Performance Incentive Plan. 
  

	1.	Grant of Award 

  
 (a) The Company hereby grants to the Grantee 50,000 shares of the Common Stock of the Company, par value $1.25 per share (“Common Stock”),
subject to the restrictions and on the terms and conditions set forth herein. As soon as practicable after the Grantee has executed this Award and the documents described in Paragraph 1(b) below and delivered the same to the Company, the Company
shall cause to be issued in the name of the Grantee or a nominee of the Company on behalf of the Grantee, a stock certificate representing the total number of shares of Common Stock covered by this Award. 
  
 (b) The Grantee shall indicate acceptance of this Award by signing and
returning a copy hereof and shall sign and return the irrevocable assignment separate from certificate (“stock power”) enclosed herewith to facilitate the transfer of all of the shares covered by this Award to the Company (or its assignee
or nominee) if appropriate or required under the terms of this Award or applicable laws or regulations. 
  

	2.	Restrictions on Transfers 

  
 Neither this Award nor any shares of Common Stock covered by this Award nor any rights hereunder may be transferred or assigned by the Grantee other than
by will or the laws of descent and distribution or pursuant to beneficiary designation procedures approved by the Company. Any transfer or any attempted assignment, pledge or hypothetication, whether or not by operation of law, shall be void.
Neither this Award nor any unvested shares of Common Stock covered by this Award shall be subject to execution, attachment or other process, and no person shall be entitled to exercise any rights of the Grantee hereunder by virtue of any attempted
execution, attachment or other process. 
  

	3.	Rights as a Shareholder 

  
 The Grantee shall have the right to vote the shares of Common Stock covered by this Award and to receive dividends thereon unless and until such shares
are forfeited pursuant to Paragraph 5 hereof; provided that any distribution with respect to shares of Common Stock, other than a regular quarterly cash dividend, shall be deposited with the Company and shall be subject to the same restrictions

  

 
as the shares of Common Stock covered by this Award and the Grantee shall sign and return an irrevocable stock power to facilitate the transfer of all of the
shares or other securities or property so distributed and covered by this Award to the Company (or its assignee or nominee) if appropriate or required under the terms of this Award or applicable laws or regulations. 
  

	4.	Custody and Delivery of Shares 

  
 The Company shall hold the certificate for shares of Common Stock covered by this Award until the shares represented hereby have vested pursuant to
Paragraph 5 hereof, and will thereupon, subject to the satisfaction of any applicable federal, state, local or other tax withholding obligations, deliver a certificate for any vested shares to the Grantee, and destroy the applicable stock powers, if
any, referred to in Paragraphs 1(b) and 3 relating to the vested shares, or use them to authorize the withholding of shares for payment of taxes, pursuant to Section 7 below. 
  

	5.	Vesting 

  
 (a) Except to the extent provided in paragraph (b) or (c) below, the shares of Common Stock covered by this Award shall vest according to the following schedule: 
  
 12,500 Shares on the First Anniversary of the Effective Date

  
 12,500 Shares on the Second Anniversary of
the Effective Date 
  
 12,500 Shares on the Third
Anniversary of the Effective Date 
  
 12,500
Shares on the Fourth Anniversary of the Effective Date 
  
 (b)
The shares of Common Stock covered by this Award shall be forfeited to and become the property of the Company if prior to vesting Grantee leaves the Company’s employ (defined for this purpose as employment by the Company or any other company
that is controlled, directly or indirectly, by the Company) for any reason whatsoever, voluntarily or involuntarily, except in the event of death, permanent and total disability, normal retirement under a pension plan maintained by the Company,
early retirement at or after age 55 with the consent of the Company, or upon any termination by the Company without Cause or any termination by Grantee for Good Reason, as those terms are defined in Grantee’s employment agreement. In the event
of death, any termination by the Company without Cause or any termination by Grantee for Good Reason, as those terms are defined in Grantee’s employment agreement, the shares of Common Stock covered by this Award shall vest immediately. In the
case of termination of employment because of permanent and total disability, normal retirement under a pension plan maintained by the Company, or early retirement at or after age 55 with the consent of the Company, the shares of Common Stock covered
by this 

  

 -11- 

 
Award shall vest in accordance with the vesting schedule set forth in Paragraph 5(a) hereof, provided (i) that following termination of employment and prior
to such date of vesting the Grantee does not engage in any form of competitive employment or, without the prior written consent of the Company, perform work for a customer or supplier, in either case, as determined by the Company and (ii) that the
Grantee remains available for consulting with the Company on a mutually agreeable basis. 
  
 c) If a Change of Control occurs, the shares of Common Stock covered by this Award shall fully vest on the Acceleration Date. 
  

A “Change in Control” shall mean: 
  

(1) any “person,” as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), as modified and used in Sections 13(d) and 14(d) thereof (but not including (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or
any of its subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as
their ownership of stock of the Company) (hereinafter a “Person”) is or becomes the beneficial owner, as defined in Rule 13d-3 of the Exchange Act, directly or indirectly, of securities of the Company (not including in the securities
beneficially owned by such Person any securities acquired directly from the Company or its affiliates, excluding an acquisition resulting from the exercise of a conversion or exchange privilege in respect of outstanding convertible or exchangeable
securities) representing 50% or more of the combined voting power of the Company’s then outstanding securities; or 
  
 (2) during any period of two (2) consecutive years beginning the date hereof, individuals who at the beginning of such period constitute
the Board of Directors of the Company and any new director (other than a director designated by a Person who has entered into any agreement with the Company to effect a transaction described in Clause (1), (3) or (4) of this Section) whose election
by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or 
  
 (3) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than (i) a merger
or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving or 

  

 -12- 

 
acquiring entity), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company, at
least 50% of the combined voting power of the voting securities of the Company or such surviving or acquiring entity outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no Person acquires more than 50% of the combined voting power of the Company’s then outstanding securities; or 
  
 (4) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of all or substantially all the Company’s assets, 
  
 “Acceleration Date” shall mean the date on which public announcement of the acquisition of such percentage shall have been made,
or the date on which the change in the composition of the Board shall have occurred, or the date of any such stockholder approval of a merger, consolidation, plan of complete liquidation or an agreement for the sale of the Company’s assets.

  

	6.	Adjustment Upon Changes in Capitalization 

  
 Any additional share of Common Stock or other securities or property issued with respect to the Common Stock covered by this Award, as a result of any
declaration of stock dividends or through recapitalization resulting in stock splits or combinations or exchanges of shares or otherwise, shall be subject to the restrictions and terms and conditions set forth herein, including Section 3 hereof.

  

	7.	Payment of Taxes 

  
 The Grantee or the Grantee’s legal representative shall be required to pay to the Company the amount of any federal, state, local or other taxes
which the Company determines it is required to withhold and pay to governmental tax authorities with respect to shares of Common Stock covered by this Award, on the date on which the Company’s tax liability arises with respect to such shares
(the “Tax Date”). The Grantee may satisfy such obligation by any of the following means: (a) cash payment to the Company, (b) delivery to the Company of previously owned shares of common stock of the Company (which the holder has held for
at least six months prior thereto or which the holder purchased on the open market and for which the holder has good title, free and clear of all liens and encumbrances) having an aggregate fair market value determined as of the Tax Date, or (c)
authorizing the Company to withhold whole shares of common stock of the Company which would otherwise be delivered having an aggregate fair market value determined as of the Tax Date or (d) any combination of (a), (b), and (c); provided
that the Human Resources Committee of the Board of Directors shall have the sole discretion to disapprove of an election pursuant to clauses (b)-(d). The value of any shares withheld may not be in excess of the tax withholding rate.

  

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	8.	Miscellaneous 

  
 (a) The Company shall pay all original issue or transfer taxes with respect to the issuance or delivery of shares of Common Stock pursuant hereto and all
other fees and expenses necessarily incurred by the Company in connection therewith, and will use reasonable efforts to comply with all laws and regulations which, in the opinion of counsel for the Company, shall be applicable thereto. 

 
 (b) Nothing in this Award shall confer upon the Grantee any right to
continue in the employ of the Company or any other company that is controlled, directly or indirectly, by the Company or to interfere in any way with the right of the Company to terminate the Grantee’s employment at any time. 
  
 (c) This Award is subject to all determinations of the Human Resources
Committee of the Board of Directors with respect to any provision of this Award and all such determinations shall be conclusive and binding on all parties. 
  
 IN WITNESS WHEREOF, the Company has caused this Award to be duly executed by its duly authorized officer. 
  

			
	 R.R. Donnelley & Sons Company

		
	By	 	 
	 	 	 VP, Compensation & Benefits

  

			
	 Accepted:
	 	____________________________
		
	  	 	  
	 	 	Social Security Number

  

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