Document:

Consulting and Release Agreement dated February 26, 2004

 Exhibit 10.18 
  
 CONSULTING AND RELEASE AGREEMENT 
  
 This Consulting and Release Agreement (“Agreement”) is entered into by and between R. R. Donnelley & Sons Company (“Donnelley”), its affiliated
entities and their respective shareholders, directors, officers and employees (Donnelley and such others collectively referred to as the “Company”), and William L. Davis (the “Executive”) as of the 26th day of February, 2004.

  
 WHEREAS, Donnelley has employed Executive as Chairman, President and Chief
Executive Officer under the terms of an employment agreement dated as of November 30, 2001 (the “Employment Agreement”); and 
  
 WHEREAS, Donnelley announced in a press release issued July 28, 2003, that the Executive has determined to retire from Donnelley; and 
  
 WHEREAS, the retirement date has been delayed to allow for the closing of the combination of
Donnelley with Moore Wallace Incorporated as described in a combination agreement between the companies dated as of November 8, 2003 (the “Combination Agreement”): 
  
 NOW, THEREFORE, in consideration of the mutual promises and agreements set forth below. Donnelley and Executive agree as follows:

  

	1.	Retirement Date. Executive shall remain on the payroll of Donnelley at his base salary through the earlier of the Effective Time (as such is defined in the Combination
Agreement), or March 31, 2004, at which time he will retire from Donnelley and his employment will terminate (the “Retirement Date”). On the Retirement Date, Executive shall be deemed to have resigned from any and all positions he may hold
within the Company, including his position as a director serving on the Board of Directors of Donnelley. 

  

	2.	Donnelley Obligations and Payments. Donnelley will cause the amounts to be paid or events to occur in Sections 2(c) through 2(j) below. In addition, so long as
Executive is not in breach of the terms contained in Section 3(a) of this Agreement, Donnelley will cause the amounts under Sections 2(a) and 2(b) below to be paid to Executive: 

  

	 	a.	Immediately following the Retirement Date, Donnelley will pay to the Executive the sum of two million one hundred thousand dollars ($2,100,000). 

  

	 	b.	 On January 23, 2003, Executive received a long term incentive award (the “Award”) under the R. R. Donnelley 2000 Stock Incentive Plan in the Original
Award Amount of 75,540 stock units (all capitalized terms in this subparagraph shall have the meanings described in the Award). Executive shall be entitled to receive the value of the Award, if any, calculated as follows: (i) if at the end of the

  

 Page 1 

	 	 
Performance Period, the RTSR goal required for payout of the Award has not been met, then Executive shall receive no payout under the Award and it shall
expire by its terms; (ii) if at or prior to the time designated in the Award the committee of the Board of Directors responsible for determining the payout of such awards determines that the RTSR goal has been met or exceeded and determines to pay
to executives of the Company participating in the award program in which the Award was granted generally (and not as a result of the termination of employment of any one or more such executives) the value of such awards, then Executive shall receive
his Award, calculated as if the RTSR Factor was 100% (regardless of the amount of payout to any other executive of the Company) and prorated through the Retirement Date (for example, should the Retirement Date be in February 2004, Executive’s
Award would be prorated based on his employment with the Company for 14 of the 36 months covered by the Award, and should the Retirement Date be in March 2004, Executive’s Award would be prorated based on his employment with the Company for 15
of the 36 months covered by the Award), including Dividend Equivalents earned through the Retirement Date only; and (iii) if at or prior to the time designated in the LTIP, the committee of the Board of Directors responsible for determining the
payout of such awards determines to eliminate the award program for Company executives generally without payout to such participants, then Executive’s Award shall be cancelled and no amounts shall be due pursuant to its terms. In any event, any
payout of the Award calculated hereunder shall be made one-half in cash and one-half in common stock of Donnelley. 

  

	 	c.	To and through the Retirement Date, Executive shall continue to accrue retirement benefits as described in Section 3(g) of the Employment Agreement. Executive has requested, and
will receive from Donnelley, a lump sum payout of the retirement amounts held by Donnelley in its Unfunded Supplemental Retirement Plan (“SERP”) and in a special unfunded supplemental retirement account maintained for Executive on the
terms set forth in the SERP and in the Employment Agreement, respectively. Such lump sum payout from the SERP will be paid at such time as Executive completes and delivers the requisite forms to Donnelley, but no earlier than April 1, 2004, and such
lump sum payout from the special unfunded supplemental retirement account shall be paid on or about November 1, 2004. The amounts of each payout and shall be calculated as set forth in Exhibit A hereto, adjusted for the actual
date of payout. 

  

	 	d.	Executive shall receive payment within thirty (30) days of the Retirement Date for all vacation days he has earned but not taken as of the Retirement Date. No further vacation
benefits will be earned by Executive after the Retirement Date. 

  

	 	e.	 Executive shall submit within forty-five (45) days of the Retirement Date all expense account records and vouchers relating to his employment with Donnelley, and
Donnelley shall reimburse said expenses within thirty (30) days of receipt. 

  

 Page 2 

	 	 
After the Retirement Date, any expenses of the nature previously reimbursed by Donnelley shall be the responsibility of Executive.

  

	 	f.	Executive acknowledges that Donnelley has advised him that, pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), he has a right to elect
continued coverage under Donnelley’s group health plans, at his own expense, for a period of up to eighteen (18) months from the Retirement Date. 

  

	 	g.	Executive has elected to participate in Donnelley’s supplemental life insurance and supplemental disability insurance programs for senior executives. As of the
Retirement Date, Donnelley will have no further obligations with respect to payment of premiums for policies held by Executive, but the Executive shall be free to continue to own and maintain such policies at his own expense.

  

	 	h.	For purposes of determining Executive’s rights under any option, restricted stock, stock unit or other equity award previously made to Executive (other than the Award described
in Section 2(b) above), Executive shall be deemed “retired” from Donnelley as of the Retirement Date. 

  

	 	i.	Donnelley shall continue to be bound by the indemnification and insurance obligations set forth in Section 10 of the Employment Agreement. 

  

	 	j.	The payments and benefits described in this Section 2 shall be subject to withholding taxes to the extent required by law. 

  

	3.	Executive’s Obligations and Waivers. 

  

	 	a.	In consideration for the payments described in Sections 2(a) and 2(b) above, Executive agrees to make himself available at no additional expense to Donnelley (other than
reimbursement for reasonable out-of-pocket expenses incurred by Executive in providing requested services) for an average of up to five days per month, at mutually agreeable times, to and through December 31, 2004, to provide consulting services
relating to matters with which he was involved or familiar during his employment with Donnelley. Donnelley’s right to request such services shall not interfere with Executive’s obligations to any other employer or any other company,
partnership or other entity, whether for profit or otherwise, with which he is engaged, and in all cases, the time, location and means of providing such services shall be as agreed upon by the parties taking into account the needs of Donnelley and
the status of Executive as retired. 

  

	 	b.	 Executive acknowledges that he has received all wages, bonuses and other perquisites relating to periods of employment through December 31, 2003, and other than as
specifically set forth herein or already provided to Executive, is not entitled to wages, bonuses or other perquisites relating to his employment by 

  

 Page 3 

	 	 
Donnelley during 2004, including, but not limited to, the award of any bonus or any option to purchase shares to which Executive might otherwise be entitled
under the provisions of Section 3 (b) and 3(c) of the Employment Agreement. 

  

	 	c.	Executive acknowledges that, other than the coverage described in Section 2(f) above, Donnelley has no obligation to provide post-employment health and welfare benefits to
Executive, whether under group plans maintained by Donnelley or otherwise. 

  

	 	d.	Effective with the day immediately following the Retirement Date, Executive shall not be entitled to the use of the Donnelley car and driver nor the Donnelley airplane, unless such
usage is authorized by Donnelley as part of Executive’s delivery of consulting services described herein. 

  

	4.	 Release. Executive, on behalf of himself, his heirs, executors, attorneys, administrators, and assigns, agrees to release the Company (including
current and former employees, partners, fiduciaries, directors, agents, divisions, parents, subsidiaries, affiliates, attorneys or other related entities) from all known or unknown claims, demands, agreements, actions, suits, causes of action,
damages and liabilities of any kind, in law or equity or otherwise, that Executive has, had or may have against the Company related to Executive’s employment, resignation from his positions with Donnelley, or retirement from Donnelley,
including, but not limited to, claims that could have been asserted under any fair employment, contract or tort law, or any other federal, state or local law, regulation or ordinance, such as Title VII of the Civil Rights Act of 1964, the Employee
Retirement Income Security Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Older Workers Benefit Protection Act, the Illinois Human Rights Act, or the City of Chicago Human Rights Ordinance, or under any
compensation, bonus, severance, or other benefit plan or the common law. Notwithstanding the foregoing, nothing herein shall release or waive any rights Executive may have to enforce the provisions of this Agreement, or release any claims for any
benefits due to Executive under any stock or benefit plans available to Executive as a result of his retirement (as described under the terms of the Employment Agreement or the agreements reflecting awards under such plans). Executive acknowledges
and agrees that the release and covenant not to sue included in this paragraph are essential and material terms of this Agreement and that without such release and covenant not to sue no agreement would have been reached by the parties. Executive
understands and acknowledges the significance and consequences of this release, and hereby further acknowledges the receipt of separate consideration beyond that to which he would otherwise be entitled in exchange for such release. Executive further
acknowledges that he has been informed that he may take up to twenty-one (21) days to execute this Agreement and that he may revoke his acceptance of this Agreement by giving notice to Donnelley of his decision to revoke within seven (7) days of
having executed the Agreement, in which case this Agreement shall be null and void in its entirety. Finally, Executive acknowledges that he has been advised to consult with his personal legal 

  

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counsel prior to executing this Agreement and that he has been advised by his counsel in connection with the negotiation and execution of this Agreement.

  

	5.	Effect on Other Agreements. Executive acknowledges and confirms his obligations regarding noncompetition, nonsolicitation, confidentiality and inventions
as set forth in Sections 6 through 8 of the Employment Agreement. Executive also agrees to remain bound by any agreement signed relating to any credit card issued to Executive as a Donnelley employee. Except as provided herein, Executive shall have
no rights, and Donnelley shall have no obligations, under the Employment Agreement. 

  

	6.	Electronic Equipment. Executive will return to Donnelley any computers, telephones or other work-related equipment furnished to him during the course of his
employment. All software programs and files belonging to Donnelley shall also be returned to Donnelley. Executive further agrees to cooperate with Donnelley in terminating any connectivity to Donnelley systems currently operating on personally owned
equipment of the Executive. 

  

	7.	Fees and Expenses. Each of Donnelley and Executive shall be responsible for its own expenses, whether legal or otherwise, incurred in reaching agreement on, and
negotiating the terms of, this Agreement. 

  

	8.	Entire Agreement. This Agreement embodies the entire agreement and understanding of the parties with regard to the matters described in this Agreement and supersedes
any and all prior or contemporaneous agreements and understandings, oral or written, between Executive and Donnelley. 

  

	9.	AIternate Dispute Resolution. 

  

	 	a.	Mediation. Neither party shall initiate arbitration or other legal proceedings against the other party, or, in the case of the Company, any of its directors, officers, employees,
agents or representatives, relating in any way to this Consulting and Release Agreement, the breach of this Agreement, or otherwise, until 30 days after the party against whom the claim is made (“Respondent”) receives written notice from
the claiming party of the specific nature of any purported claim and the amount of any purported damages. The Executive and the Company further agree that if Respondent submits the claiming party’s claim to the CPR Institute for Dispute
Resolution, 680 Fifth Avenue, New York, New York 10019, for nonbinding mediation prior to the expiration of such 30 day period, the claiming party may not institute arbitration or other legal proceeding against Respondent until the earlier of: (i)
the completion of nonbinding mediation efforts; or (ii) 90 days after the date on which Respondent received written notice of the claimant’s claim. The mediation shall be conducted in Chicago, Illinois or such other location to which the
parties may agree. 

  

 Page 5 

	 	b.	Arbitration. Any dispute or controversy between the Company and Executive, whether arising out of or relating to this Agreement, the breach of this Agreement, or otherwise, shall be
settled by arbitration administered by the American Arbitration Association (“AAA”) in accordance with its Commercial Arbitration Rules then in effect and judgment on the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof. Any arbitration shall be held before a single arbitrator who shall be selected by the mutual agreement of the Company and Executive, unless the parties are unable to agree to an arbitrator, in which case, the arbitrator will be
selected under the procedures of the AAA. The arbitrator shall have the authority to award any remedy or relief that a court of competent jurisdiction could order or grant, including, without limitation, the issuance of an injunction. However,
either party may, without inconsistency with this arbitration provision, apply to any court having jurisdiction over such dispute or controversy and seek interim provisional, injunctive or other equitable relief until the arbitration award is
rendered or the controversy is otherwise resolved. Except as necessary in court proceedings to enforce this arbitration provision or an award rendered hereunder, or to obtain interim relief, neither a party nor an arbitrator may disclose the
existence, content or results of any arbitration hereunder without the prior written consent of the Company and Executive. The Company and Executive acknowledge that this Agreement evidences a transaction involving interstate commerce.
Notwithstanding any choice of law provision included in this Agreement, the United States Federal Arbitration Act shall govern the interpretation and enforcement of this arbitration provision. The arbitration proceeding shall be conducted in
Chicago, Illinois or such other location to which the parties may agree. 

  

	10.	Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws (as opposed to the conflict of law provisions) and decisions of
the State of Illinois, as applied to agreements executed in and to be fully performed within Illinois. 

  

	11.	Successors and Assigns. The rights and obligations of Donnelley under this Agreement shall inure to the benefit of and be binding upon its successors and assigns and
Executive’s rights hereunder shall inure to the benefit of his legal representatives or designated beneficiaries. 

  

	12.	Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall
nevertheless continue in full force and effect without being impaired or invalidated in any way. 

  

	13.	 Notices. All notices or other communications required or permitted hereunder shall be in writing and may be delivered by hand, by facsimile, by
nationally recognized private courier or by United States mail. Notices by mail shall be deemed given two (2) business days after being deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested.
Notices delivered by facsimile or private courier 

  

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shall be deemed given on the first business day following the date of sending. All notices or other communications shall be addressed as follows:

  
 If to Donnelley, to: 
 R. R. Donnelley & Sons Company 
 77 West Wacker Drive 
 Chicago, Illinois 60601-1696 
 Attn: General Counsel 
 Facsimile: 312/326-7620 
  
 If to Executive, to:

 Mr. William L. Davis 
 130 Woodley Road 
 Winnetka, Illinois 60093 
  
 or to such other address as such party may indicate by a notice delivered to
the other. 
  
 IN WITNESS WHEREOF the parties have executed this Agreement
as of the date first above written. 
  

									
	R. R. DONNELLEY & SONS COMPANY	 	 	 	 
					
	By:	 	 /s/ Monica M. Fohrman
	 	 	 	 	 	 /s/ Illegible

	 	 	
	 	 	 	 	 	

	 Name:
	 	 Monica M. Fohrman
	 	 	 	 	 	 Executive

	 Title:
	 	 Sr. V. P.
	 	 	 	 	 	 

  

 Page 7 

 Consulting and Release Agreement 
 Exhibit A 
 Page 1 of 3 
  
 RR Donnelley 
 Total Retirement Benefit Illustrations 
 William Davis 
  

													
	 Basic Data
	  	 	 	  	 	  	 	 	  	 	 	 
	 Name
	  	 	 	  	 	  	 	 	  	 	William Davis	 
	 Social Security Number
	  	 	 	  	 	  	 	 	  	 	###-##-####	 
	 Date of Birth
	  	 	 	  	 	  	 	 	  	 	7/30/1943	 
	 Date of Hire
	  	 	 	  	 	  	 	 	  	 	3/18/1997	 
	 Termination Date
	  	 	 	  	 	  	 	 	  	 	3/1/2004	 
	 Date of Lump Sum Notification
	  	 	 	  	 	  	 	 	  	 	10/24/2003	 
	 Lump Sum Distribution Date
	  	 	 	  	 	  	 	 	  	 	11/1/2004	 
	 2003 Covered Compensation
	  	 	 	  	 	  	 	 	  	$	45,000	 
	 Estimated 2004 Compensation
	  	 	 	  	 	  	 	 	  	$	187,877	 
	 2003 Compensation
	  	 	 	  	 	  	 	 	  	$	1,210,907	 
	 2002 Compensation
	  	 	 	  	 	  	 	 	  	$	1,282,934	 
	 2001 Compensation
	  	 	 	  	 	  	 	 	  	$	1,759,754	 
	 2000 Compensation
	  	 	 	  	 	  	 	 	  	$	1,750,075	 
	 1999 Compensation
	  	 	 	  	 	  	 	 	  	$	1,812,502	 
					
	 Qualified Benefit
	  	 	 	  	 	  	 	 	  	 	 	 
	 January 1, 2003 Accrued Benefit
	  	 	 	  	 	  	 	 	  	$	19,380.00	 
	 Accrual in 2003
	  	 	 	  	 	  	 	 	  	 	3,775.00	 
	 Estimated Accrual in 2004
	  	 	 	  	 	  	 	 	  	 	3,533.00	 
	 	  	 	 	  	 	  	 	 	  	
	
	

	 Estimated Qualified Benefit at Age 65
	  	 	 	  	 	  	 	 	  	$	26,688.00	 
					
	 SERP Benefit
	  	 	 	  	 	  	 	 	  	 	 	 
	 January 1, 2003 Accrued Benefit
	  	 	 	  	 	  	 	 	  	$	147,481.78	 
	 Accrual in 2003
	  	 	 	  	 	  	 	 	  	 	20,218.14	 
	 Estimated Accrual in 2004
	  	 	 	  	 	  	 	 	  	 	0.00	 
	 	  	 	 	  	 	  	 	 	  	
	
	

	 Estimated SERP Benefit at Age 65
	  	 	 	  	 	  	 	 	  	$	167,699.92	 
					
	 	  	Normal Form

	  	Factor 1

	  	Life Annuity

	  	 	 
					
	 Other Plan Benefits
	  	 	 	  	 	  	 	 	  	 	 	 
	 Sears
	  	$	2,457.60	  	1.2195	  	 	 	  	$	2,997.00	 
	 Emerson
	  	 	 	  	 	  	 	 	  	 	 	 
	 Skil
	  	$	2,541.36	  	N/A	  	$	2,541.00	  	 	 	 
	 Appleton (qualified and nonqualified)
	  	 	6,986.52	  	1.0237	  	 	7,152.00	  	 	 	 
	 Emerson
	  	$	45,990.51	  	1.0237	  	$	47,080.00	  	 	 	 
	 	  	 	 	  	 	  	
	
	  	 	 	 
	 Total Emerson
	  	 	 	  	 	  	 	 	  	 	56,773.00	 
	 	  	 	 	  	 	  	 	 	  	
	
	

	 Total from Other Plans
	  	 	 	  	 	  	 	 	  	$	59,770.00	 
					
	 Social Security
	  	 	 	  	 	  	 	 	  	 	 	 
	 Estimated Annual Amount
	  	 	 	  	 	  	 	 	  	$	21,900.00	 
					
	 Prorated $321,000 Offset
	  	 	 	  	 	  	 	 	  	 	 	 
	 Days between Termination Date and March 31, 2004
	  	 	 	  	 	  	 	 	  	 	32	 
	 Days between March 18, 2002 and March 31, 2004
	  	 	 	  	 	  	 	 	  	 	744	 
	 Proration factor for $321,000 Offset
	  	 	 	  	 	  	 	 	  	 	0.0430	 
	 Prorated $321,000 Offset
	  	 	 	  	 	  	 	 	  	$	13,806.45	2
					
	 Total of All Offsets
	  	 	 	  	 	  	 	 	  	$	289,864.37	 

  
 Hewitt Associates 
  

 Consulting and Release Agreement 
 Exhibit A 
 Page 2 of 3 
  
 RR Donnelley 
 Total Retirement Benefit Illustrations 
 William Davis 
  

					
	 Special Agreement Benefit Prior to Offsets
	  	 	 	 
	 Final Average Compensation
	  	$	1,563,234.40	 
	 50% of Final Average Compensation
	  	$	781,617.20	 
	 Total Special Agreement Benefit
	  	$	1,228,000.00	 
	 Less All Offsets
	  	 	(289,864.37	)
	 	  	
	
	

	 Total Special Agreement Benefit After Offsets at Age 65
	  	$	938,135.63	 
		
	 Lump Sum Calculations - Special Agreement
	  	 	 	 
	 Lump Sum Date
	  	 	11/1/2004	 
	 Mortality Table
	  	 	94RR0162	 
	 Interest Rate
	  	 	6.00	%
	 Age Used in Lump Sum Calculation
	  	 	61.25	 
	 Deferred Lump Sum Factor
	  	 	8.459	 
	 Special Agreement Lump Sum Amount
	  	$	7,935,689	 
		
	 Lump Sum Calculation - SERP
	  	 	 	 
	 Lump Sum Date
	  	 	3/1/2004	 
	 Interest Rate
	  	 	5.14	%
	 Mortality Table
	  	 	94RR0162	 
	 Age Used in Lump Sum Calculation
	  	 	60.5833	 
	 Deferred Lump Sum Factor
	  	 	9.0094	 
	 SERP Lump Sum Amount
	  	$	1,510,876	 
		
	 Immediate Annuites
	  	 	 	 
	 Benefit Commencement Date
	  	 	3/1/2004	 
	 Age at Commencement
	  	 	60.58	 
	 Age at Commencement for Determining Early Reductions
	  	 	60.58	 
	 Years of 3.6% reduction prior to 65
	  	 	4.42	 
	 Benefit Reduction
	  	 	15.90	%
	 Early Retirement Reduction Factor
	  	 	0.841	 
	 Qualified Benefit Payable at age 60.5833
	  	$	22,445	 
	 SERP Benefit Payable at age 60.5833
	  	$	141,036	 
	 Special Agreement Benefit Payable at age 60.5833
	  	$	788,972	 

  

	1	Factors necessary to convert benefits from normal form of payment to life annuity 

  

	2	Based on days from date of termination to March 31, 2004. The Employment Agreement reads from March 18, 2002 to date of termination 

  
 Hewitt Associates 
  

 Consulting and Release Agreement 
 Exhibit A 
 Page 3 of 3 
  
 RR Donnelley 
 Summary of Total Retirement Benefits 
 William Davis 
  

							
	 	  	Immediate
Life Annuity

	  	Lump Sum
5.14%/6.00%

	 Qualified Plan Benefit
	  	$	22,445	  	 	N/A
			
	 SERP Benefit
	  	 	141,036	  	 	1,510,876
			
	 Special Agreement Benefit
	  	 	788,972	  	 	7,935,689
	 	  	
	
	  	
	

	 Total
	  	$	952,453	  	$	9,446,565

  
 Hewitt AssociatesSeparation Agreement dated March 24, 2004

 Exhibit 10.19 
  
 SEPARATION AGREEMENT 
  
 THIS AGREEMENT IS ENTERED INTO ON MARCH 24, 2004, by and between John C. Campanelli (“Executive”) and R.R. Donnelley & Sons Company,
its subsidiaries, affiliates, predecessors, successors and assigns (the “Company”) in connection with Executive’s termination of employment with the Company. 
  
 IN CONSIDERATION OF the payments, obligations and promises set forth in this agreement (the “Separation
Agreement”), Executive and the Company agree as follows: 
  
 1.
Executive’s employment with the Company shall end effective March 31, 2004 (the “Final Separation Date”). Executive will be relieved of the duties as President, Donnelley Print Solutions of the Company effective as of March 1, 2004.
Executive’s last day in office will be March 1, 2004. However, during the period from March 1, 2004 through the Final Separation Date, Executive will continue to be employed by the Company and provide consultative service as requested by the
Company at mutually agreeable times involving no unreasonable delays. During this period, the Company will pay Executive the base salary and provide benefits at the same levels as they exist as of the date hereof. 
  
 2. Executive represents and agrees that as of the date hereof Executive is in compliance
with, not aware of any material violations of, and will comply with any continuing obligations under all Company policies and covenants provided in this Separation Agreement, including, but not limited to those provided in paragraphs 6, 7, 11, 13,
and 16. 
  
 3. Pursuant to the Company’s reasonable request, Executive agrees
to fully cooperate with the Company in connection with any investigations, inquiries, actions, suits, claims or proceedings involving the Company. The Company agrees to reimburse Executive for reasonable expenses, necessarily incurred, and to
compensate Executive for his time at a reasonable rate, as a result of Executive’s participation under this paragraph. 
  
 4. Executive does hereby formally resign as of March 1, 2004 from all of Executive’s appointments, offices and directorships with the Company including President,
Donnelley Print Solutions. Executive further agrees to fully cooperate and resign from any other Company appointments, offices and directorships, if any, including promptly executing any documents necessary to effect these resignations. 

 
 5. Executive agrees to return to the Company within five days of the date hereof, all
Company documents, files, electronic information, equipment, and other property currently in Executive’s possession. Executive will also agree promptly to transfer to the Company any and all subscriptions, season tickets and memberships
currently in Executive’s name which are paid for by the Company. 

 6. Executive agrees that the confidentiality obligations set forth in the Company’s policies shall continue in full
force and effect from and after the date hereof, and Executive further agrees that from and after the date hereof, Executive will not disclose any confidential information regarding the Company to any third party or otherwise discuss the
Company’s business, operations, affairs or prospects with any third party without the written consent of the Company, which may be withheld by the Company in the Company’s sole and absolute discretion. 
  
 7. Executive agrees that through the Final Separation Date and for eighteen (18) months after
the Final Separation Date, Executive will not (i) 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 the Company’s revenues on the
Final Separation Date, (ii) solicit or hire, or assist others in the solicitation or hiring of, the Company’s employees, or (iii) interfere with the Company’s business relationships with any material customers or suppliers. Notwithstanding
the above, with the company’s written consent, which consent will not be unreasonably withheld, Executive may accept employment with a company that is, at any time during the above-referenced eighteen (18) month period, engaged in a
non-print-related logistics business, such as Federal Express, United Parcel Service, Deutsche Post, provided that Executive’s services for such companies do not relate to a print-related logistics business. 
  
 8. In consideration for signing and returning both (i) the Separation Agreement, and (ii) the
Updated Release attached hereto as Annex A no earlier than the Final Separation Date, and not revoking either document within the applicable revocation periods, and provided that Executive is in compliance with all of the terms of and conditions of
the Separation Agreement and has not breached Executive’s obligations hereunder, Executive will receive the following separation benefits: 
  
 a. Severance Pay. Executive will receive $58,437.50 per month for eighteen (18) months following the Final Separation Date (the “Severance
Period”). Of this amount, $8,173.08 per week for thirty-five (35) weeks represents “Regular Separation Pay” under the terms of the RR Donnelley Separation Pay Plan (“Separation Plan”). For more information as to the
determination of your Regular Separation Pay, please see the Separation Plan’s Summary Plan Description (“SPD”), a copy of which is included with these materials. Notwithstanding the foregoing, Executive will be entitled to 25% of his
Regular Separation Pay even if Executive fails to sign either (i) the Separation Agreement, or (ii) the Updated Release, or signs both documents but revokes either or both of the documents within the applicable revocation periods; 
  
 b. Special Severance Payment. Executive will receive a single lump-sum
special severance payment in the amount of $240,000.00; 
  
 c.
Special Payment. Executive will receive a single lump-sum payment in the amount of $206,087.00, which represents an amount that is roughly equivalent to the pro-rata amount that Executive would have accrued under the Company’s 3-year Long Term
Incentive Compensation Plan; 
  

 2 

 d. Payment Under Non-Qualified Deferred Compensation Plan. Executive will receive a single lump-sum
payment in the amount of $71,702.98, which represents all amounts accrued in the Company’s Non-Qualified Deferred Compensation Plan; 
  
 e. COBRA Subsidy. The Company will subsidize Executive’s health care continuation benefits, for Executive and any eligible dependents that were
covered during his employment, for a twelve (12) month period determined in accordance with the terms of the Separation Plan. The details of the COBRA subsidy are discussed at length in the included Separation Plan SPD; 
  
 f. Financial Planning Account. Executive will be entitled to utilize the
amount currently accrued in the Company’s Financial Planning Account ($47,437.95) for purposes authorized under the Financial Planning Account plan only, provided that such services are incurred during the 18 month Severance Period; 

 
 g. Outplacement Services. Executive shall be entitled to up to $15,000 of
outplacement services utilized by Executive from an outplacement service provider of Executive’s choice, provided that such services are utilized within the 18 month Severance Period; 
  
 h. Supplemental Life and Disability Insurance. The Company shall, to the
extent permitted by the insurer, reimburse Executive for premium payments relating to each of Executive’s supplemental life and disability insurance policies that the Company previously reimbursed Executive, and shall continue to so reimburse
Executive for such premium payments that become due on or before December 31, 2004. 
  
 9. Executive will receive a lump sum payment in lieu of any accrued but unused vacations days as of the Final Separation Date whether or not the Separation Agreement becomes effective. 
  
 10. All payments made pursuant to this Separation Agreement shall be reduced by applicable
tax withholdings. All periodic payments made under this Separation Agreement shall be paid on or about the 20th day
of each month by automatic direct deposit into an account designated by Executive. Such periodic payments shall commence on April 20, 2004. All lump-sum payments made under this Separation Agreement shall be paid within 5 days after the Effective
Date of the attached Updated Release. In the event Executive dies before all payments under this Separation Agreement are made, all remaining payments shall be made to Executive’s estate. 
  
 11. Executive agrees for himself and others acting on his behalf, that he (and they) have not
and will not disparage, make negative statements about or act in any manner which is intended to or does damage to the good will of, or the business or personal reputations of the Company or any of their incumbent or former officers, directors,
agents, consultants, employees, successors and assigns. Executive agrees that he shall refer all requests for employment references to Andrew Panega, Senior Vice President of Human Resources, and that Mr. Panega shall provide only neutral
information including your dates of employment, your last job title, last salary, and your employee benefits. 
  

 3 

 Mr. Panega (or his successor or designee) shall be the sole individual who is authorized to speak on behalf of the
Company with respect to Executive. 
  
 12. For and in
consideration of the payments, benefits and other things of value to be provided pursuant to this Separation Agreement, Executive agrees, knowingly and voluntarily, to release and forever discharge the Company and the current and former
shareholders, employees, officers, directors, consultants, representatives and agents thereof, of and from any and all claims, liabilities, demands or causes of action known and unknown, that Executive has, ever had or could have had as of the date
hereof, arising out of or in any way connected with or related to this Separation Agreement, Executive’s employment by the Company or the cessation of Executive’s employment (this “Release”). This total and unlimited
release includes, but is not limited to, any claims based on any local, state or federal statute, or other regulations or laws (including common law): 
  

	 	•	Relating to bias based on Executive’s age, sex, religion, religious creed, citizenship, color, race, ancestry, national origin, veteran, familial or marital status, sexual
orientation or preference, genetic predisposition or carrier status, physical or mental disability or past or present history of the same or any other form of discrimination, harassment or retaliation, including, without limitation, the Age
Discrimination in Employment Act of 1967, as amended (“ADEA”)), the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Illinois Human Rights Act, the Illinois Equal Pay laws,
the Cook County Human Rights Ordinance, and the Chicago Human Rights Ordinance; 

  

	 	•	Relating to the Worker Adjustment and Retraining Notification Act (“WARN”); 

  

	 	•	Any claim under the Family and Medical Leave Act; 

  

	 	•	For wrongful discharge, harassment or retaliation; 

  

	 	•	Relating to any implied or express contract (whether oral or written); 

  

	 	•	For intentional or negligent infliction of emotional harm, defamation or any other tort; 

  

	 	•	For fraud or conversion; 

  

	 	•	In connection with continuation of sponsored health benefits; and 

  

	 	•	For costs, fees or other expenses including attorneys’ fees and disbursements. 

  
 This Separation Agreement does not waive or otherwise impair any rights that Executive may have under the terms of any
health or welfare plan maintained by the Company or any vested rights under any tax-qualified retirement plan. Executive’s severance benefits will be limited to those described in this Separation Agreement, and except as otherwise provided
herein, Executive’s participation in any Company-sponsored employee benefit plan shall cease as of the Final Separation Date. 
  
 Provided that Executive remains in compliance with the terms of this Separation Agreement, nothing in this release shall be considered a waiver or release
of Executive’s right to the payments provided for in this Separation Agreement. Nothing herein shall be 
  

 4 

 considered a waiver or release of Executive’s right to enforce the provisions of this Separation Agreement.

  
 If any provision of this Separation Agreement is held by a
court of competent jurisdiction to be illegal, void or unenforceable, such provision shall have no effect; however, the remaining provisions shall be enforced to the maximum extent possible. Further, if a court should determine that any portion of
this Separation Agreement is overbroad or unreasonable, such provision shall be given effect to the maximum extent possible by narrowing or enforcing in part that aspect of the provision found overbroad or unreasonable. 
  
 13. Executive agrees that the terms of this Separation Agreement are and shall remain
strictly confidential and shall not be disclosed to any third party, other than to Executive’s attorney or other advisors, or Executive’s spouse for purposes of considering whether to sign this Separation Agreement; provided that Executive
discloses to such persons the existence of this confidentiality provision and such persons agree to maintain the confidentiality thereof, and provided further that Executive shall be fully responsible for any breach by any such person of this
confidentiality provision. In the event any third party inquires about Executive’s employment or separation from employment with the Company, Executive agrees to respond that Executive was treated fairly by the Company, its affiliates and
subsidiaries. 
  
 14. This Separation Agreement is not intended, and shall not be
construed, as an admission that the Company has violated any federal, state or local law (statutory or decisional), ordinance or regulation, breached any contract or committed any wrong whatsoever against Executive. 
  
 15. By signing this Separation Agreement, and initialing each of the following statements,
Executive expressly acknowledges and agrees that: 
  

	 	•	Executive has read and fully understands the terms of this Separation Agreement; [    ] 

  

	 	•	Executive acknowledges and agrees that the payments, benefits and/or other things of value provided pursuant to this Separation Agreement: (i) are in full discharge of any and all
liabilities and obligations of the Company to Executive, monetarily or with respect to employee benefits or otherwise, including but not limited to any and all obligations arising under any alleged written or oral employment agreement, policy, plan
or procedure of the Company and/or any alleged understanding or arrangement between Executive and the Company; and (ii) exceed any payment, benefit, or other thing of value to which Executive might otherwise be entitled under any policy, plan or
procedure of the Company and/or any agreement between Executive and the Company; [    ] 

  

	 	•	Executive understands that (i) this Separation Agreement sets forth the entire agreement between us, and fully supersedes any prior agreements or 

  

 5 

 understandings between the parties and (ii) this Separation Agreement and the attached Updated Release
constitute a release by Executive of all claims, known and unknown, which relate to Executive’s employment or separation from employment; [        ] 
  
 Ÿ The Company advised Executive to consult an attorney prior to signing this Separation Agreement and the attached Updated Release; [        ] 
  
 Ÿ Executive has had adequate opportunity to request, and has received, all information Executive needs to understand this Separation Agreement and has been offered at least forty-five (45) days to consider the terms of
this Separation Agreement and the information attached at Annex B which is provided pursuant to the Older Workers Benefit Protection Act, and Executive agrees that any modifications, material or otherwise, made to this Separation Agreement shall not
restart or affect in any manner the original forty-five (45) calendar day consideration period; and [        ] 
  

Ÿ Executive has knowingly and voluntarily
entered this Separation Agreement, without any duress, coercion or undue influence by anyone. [        ] 
  
 16. Executive represents and warrants that as of the date hereof Executive has not filed any complaints, charges, or claims for relief against the Company, any of its
past or present officers, directors, employees, consultants or agents arising out of any acts or omissions they allegedly may have committed in connection with this Separation Agreement, Executive’s employment or the termination of such
employment with any local, state or federal court or administrative agency and has not authorized any other person or entity to assert such a claim on Executive’s behalf. Other than for claims arising under the ADEA, Executive also agrees, to
the fullest extent permitted by law, not to commence, encourage, facilitate or participate in any action or proceeding for damages, reinstatement, injunctive or any other type of relief, in any state, federal or local court or before any
administrative agency, relating to this Separation Agreement or the attached Updated Release, the enforceability of any provision thereof or Executive’s employment with the Company or the termination thereof. 
  
 17. Any controversy or claim arising out of or relating to this Separation Agreement or the
breach of this Separation Agreement that cannot be resolved by Executive and the Company, including any dispute as to the calculation of any payments hereunder, and the terms of this Separation Agreement, shall be determined by a single arbitrator
in Chicago, Illinois, in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association then in effect. 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 Separation
Agreement. This Separation Agreement shall be interpreted in accordance with the laws of the State of Illinois. 
  

 6 

 18. Executive agrees that, if the Company is required to take any legal action to enforce
Executive’s obligations under this Separation Agreement for any reason, except any claim arising under the ADEA, executive shall be responsible for all costs incurred by the Company to enforce Executive’s obligations thereunder including,
without limitation, reasonable attorneys fee and expenses.  
  
 19. All notices or communications under this Separation Agreement must be in writing, addressed; (i) if to the Company, to the attention of the Senior Vice President, Human Resources, 77 W. Wacker Drive Chicago, IL 60601-1696 and (ii) if to
Executive, at Executive’s last known address (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 fax (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 and the third business day after the actual
date of mailing shall constitute the time at which notice was given. 
  
 20. This Separation Agreement will become effective on the eighth day after Executive signs it. During the seven (7) days after Executive signs this Separation Agreement, Executive may revoke it by giving written notice to R.R. Donnelley
& Sons Company, to the attention of the Senior Vice President, Human Resources, 77 W. Wacker Drive Chicago, IL 60601-1696, in which event this Separation Agreement will not go into effect. If the last day of the revocation period is a Saturday,
Sunday or legal holiday in the State of Illinois, then the revocation period shall not expire until the next business day. 
  
 AGREED AND ACCEPTED: 

			
	
	/s/    John C. Campanelli      
	

	Name:	 	        John C. Campanelli

  

			
	R.R. DONNELLEY & SONS COMPANY
		
	By:	 	/s/    Andrew B. Penega      
	 	 	

	 Name:
	 	        Andrew B. Panega
	 Title:
	 	        SVP Human Resources

  

 7 

 Annex A 
  
 UPDATED RELEASE 
  
 In consideration of the receipt of the payments and benefits described in the Separation Agreement dated
                        , 2004 (the “Separation Agreement”), Executive knowingly and voluntarily releases and
forever discharges R.R. Donnelley & Sons Company, its affiliates, subsidiaries, divisions, successors and assigns (the “Company”) and the current and former shareholders, employees, officers, directors, consultants, representatives and
agents thereof, of and from any and all claims, liabilities, demands or causes of action, known and unknown, that Executive has, ever had or could have had as of the date hereof arising out of or in any way connected with or related to
Executive’s employment by the Company or the termination of Executive’s employment (this “Release”). This total and unlimited release includes, but is not limited to, any claims based on any local, state or federal statute, or
other regulations or laws (including common law): 
  

	 	•	Relating to bias based on Executive’s age, sex, religion, religious creed, citizenship, color, race, ancestry, national origin, veteran, familial or marital status, sexual
orientation or preference, genetic predisposition or carrier status, physical or mental disability or past or present history of the same or any other form of discrimination, harassment or retaliation, including, without limitation, the Age
Discrimination in Employment Act of 1967, as amended (“ADEA”)), the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Illinois Human Rights Act, the Illinois Equal Pay laws,
the Cook County Human Rights Ordinance, and the Chicago Human Rights Ordinance; 

  

	 	•	Relating to the Worker Adjustment and Retraining Notification Act (“WARN”); 

	 	•	Any claim under the Family and Medical Leave Act; 

  

	 	•	For wrongful discharge, harassment or retaliation; 

  

	 	•	Relating to any implied or express contract (whether oral or written); 

  

	 	•	For intentional or negligent infliction of emotional harm, defamation or any other tort; 

  

	 	•	For fraud or conversion; 

  

	 	•	In connection with continuation of sponsored health benefits; and 

  
 For costs, fees or other expenses including attorneys’ fees and disbursements. 
  
 The Separation Agreement does not waive or otherwise impair any rights that Executive may have under the terms of any health
or welfare plan maintained by the Company or any vested rights under any tax-qualified retirement plan. Executive’s severance benefits will be limited to those described in the Separation Agreement, and except as otherwise provided herein,
Executive’s participation in any Company-sponsored employee benefit plan shall cease as of the Final Separation Date. 
  
 Provided that Executive remains in compliance with the terms of the Separation Agreement, nothing in this release shall be considered a waiver or release
of Executive’s 
  

 A-1 

 right to the payments provided for in the Separation Agreement. Nothing herein shall be considered a waiver or release of
Executive’s right to enforce the provisions of the Separation Agreement. 
  
 Executive represents and agrees that as of the date hereof Executive is in compliance with, not aware of any material violations of, and will comply with any continuing obligations under all Company policies and
covenants provided in the Separation Agreement, including, but not limited to those provided in paragraphs 6, 7, 11, 13, and 16. 
  
 Executive represents and warrants that as of the date hereof Executive has not filed any complaints, charges, or claims for relief against the Company,
any of its past or present officers, directors, employees, consultants or agents arising out of any acts or omissions they allegedly may have committed in connection with the Separation Agreement, Executive’s employment or the termination of
such employment with any local, state or federal court or administrative agency and has not authorized any other person or entity to assert such a claim on Executive’s behalf. 
  
 Executive has had an adequate opportunity to request, and has received, all information Executive needs to understand this
Updated Release and has been offered at least forty-five (45) days to consider the terms of this Updated Release and the information attached at Annex B which is provided pursuant to the Older Workers Benefit Protection Act, and Executive agrees
that any modifications, material or otherwise, made to the Separation Agreement shall not restart or affect in any manner the original forty-five (45) calendar day consideration period. 
  
 Executive has knowingly and voluntarily executed this Updated Release without any duress, coercion or undue influence by
anyone. 
  
 This Updated Release will become effective on the
eighth day after Executive signs it. During the seven (7) days after Executive signs this Updated Release, Executive may revoke it by giving written notice to R.R. Donnelley & Sons Company, to the attention of the Senior Vice President, Human
Resources, 77 W. Wacker Drive Chicago, IL 60601-1696, in which event neither this Updated Release nor the obligation to provide any unpaid payments or benefits provided under the Separation Agreement shall go into effect. If the last day of the
revocation period is a Saturday, Sunday or legal holiday in the State of Illinois, then the revocation period shall not expire until the next business day. 
  
 If any provision of this Updated Release is held to be illegal, void, or unenforceable, such provision shall have no effect; however, the remaining
provisions shall be enforced to the maximum extent possible. 
  

					
			
	 Dated:
	 	 	 	  
	 	 	 	 	

	 	 	 	 	John C. Campanelli

  

 A-2 

 March 1, 2004 
  
 Annex B 
  
 DISCLOSURE INFORMATION PROVIDED 
 PURSUANT TO THE OLDER WORKERS BENEFIT PROTECTION ACT

  
 Time Limitations and Eligibility Factors 
  
 In connection with the combination of R.R. Donnelley & Sons Company (“RRD”),
and Moore-Wallace, Inc., (“MW”) the employment of certain employees will be terminated. All employees of both RRD and MW occupying positions between the level of Vice President and divisional President comprise the decisional unit.
Employees selected for termination on or before March 31, 2004 in connection with the combination are being offered additional severance benefits in exchange for their signing a Separation Agreement and Updated Release. 
  
 Employees who have been selected for termination and who desire to receive the additional
severance benefits have at least forty-five (45) days from the date of receipt of this disclosure information and the attached Separation Agreement and Updated Release to sign the Separation Agreement and the Updated Release. They may receive the
additional severance benefits by signing the Separation Agreement, and also by signing the Updated Release no earlier than their last day of employment and returning both documents to R.R. Donnelley & Sons Company, to the attention of the Senior
Vice President, Human Resources, 77 W. Wacker Drive Chicago, IL 60601-1696. The Separation Agreement, and the Updated Release shall each become effective on the eighth (8th) day following their being signed (respectively, the Separation Agreement Effective Date, and the Updated Release Effective Date). 
  
 Employees may, at any time prior to the Separation Agreement Effective Date or the Updated
Release Effective Date, revoke the Separation Agreement or the Updated Release by giving notice in writing of such revocation to the Senior Vice President, Human Resources, at the address above, by the seventh (7th) day after they sign each document, except that if the seventh (7th) day following the date the employee signs either document falls on a Saturday, Sunday or legal holiday, then the last day of the revocation period shall be
the next business day, and the applicable effective date shall be the following day. 
  
 In accordance with law, RRD is disclosing to you the job titles and dates of birth of the employees selected and not selected for termination in this program. 
  

 B-1

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