Document:

CARVEOUT GUARANTY

 

THIS AGREEMENT (this "Agreement")
is made as of December 15, 2011, by AMERICAN REALTY CAPITAL HEALTHCARE TRUST OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
(the "Carveout Guarantor"), in favor of REGIONS BANK, an Alabama banking corporation (the "Bank"). As used
in this Agreement, except as otherwise defined herein or unless the context may clearly require to the contrary, all capitalized
words and phrases shall have the meaning attributed to them in that certain Credit Agreement of even date herewith between ARHC
MNPERIL001, LLC, a Delaware limited liability company (the "Borrower"), and Bank (as the same may be amended or modified
from time to time, the "Credit Agreement").

 

In consideration of One
Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Carveout
Guarantor agrees, covenants and represents as follows::

 

1.

 

(a)          Carveout
Guarantor hereby absolutely and unconditionally guarantees to Bank the due, regular and punctual payment and prompt performance
of the Guaranteed Obligations (as hereinafter defined).

 

(b)          As
used in this Agreement, "Guaranteed Obligations" means:

 

(1)         all
damages, losses, expenses, costs and fees (including, without limitation, Attorneys' Fees and costs) actually paid or incurred
by Bank and arising as a result of (i) any breach of any representation or warranty of Borrower contained in any Loan Document,
or any act or omission of Borrower in any document delivered by Borrower in connection with the Loan or any act or omission of
Carveout Guarantor, which breach, act or omission constitutes common law fraud or legal fraud, fraud, deceit or fraudulent deceit
under Alabama Code Sections 6-5-102, 103 or 104; (ii) Borrower's failure to turn over to Bank upon foreclosure or deed in lieu
of foreclosure or upon the appointment of a receiver for any of the Collateral, any proceeds from casualty or rent loss insurance
or from any condemnation award or payment in lieu thereof that are in the possession or under the control of Borrower at the time
of, or are received after, the occurrence of such event and that are not either (a) applied to the restoration of the Collateral
in accordance with the terms and conditions of the Loan Documents, or (b) paid over to Bank in the manner required under the Loan
Documents; (iii) Borrower's failure to apply any rents or other income from the operation of the Project that are in the possession
or under the control of Borrower at the time of, or are received after, the occurrence of any Default, to the fixed, operating
and maintenance expenses of the Project or to payment of the Loan; (iv) Borrower's failure to pay real estate taxes and assessments
that are secured by a Lien against any of the Collateral (including all interest and penalties for nonpayment thereof) or to pay
and discharge in accordance with the provisions of the Loan Documents all statutory Liens for labor, materials, or services performed
for the benefit of the Collateral and all interest, Attorneys' Fees, and other costs and charges for discharging the same, to
the extent (x) any of the foregoing shall become due and payable prior to the occurrence of an Event of Default and shall not
be paid by Borrower and (y) there are sufficient rents and other income from the operation of the Project (after payment of the
fixed operating and maintenance expenses of the Project and to payment of the Loan) to pay the same; (v) Borrower's violation
of any federal or state criminal law or civil forfeiture law allowing seizure of the Collateral, or any other act by Borrower
that results in seizure or forfeiture of the Collateral; and (vi) Borrower's failure to deliver to Bank all unearned advance rents
paid to Borrower before due and security deposits paid to Borrower by tenants of the Mortgaged Property, whenever Borrower shall
have received such rents after the occurrence of an Event of Default and Bank has made demand pursuant to the Loan Documents,
or there has been a foreclosure or delivery of a deed in lieu of foreclosure.

 

    	 

    	 

    

 

(2)         all
Attorneys' Fees and costs and all other costs and expenses incurred by Bank in any foreclosure or other legal proceeding to collect
the Loan and/or to realize upon any of the Collateral if (i) Borrower shall contest such proceedings and (ii) Bank shall prevail
in such proceedings; and

 

(3)         all
Attorneys' Fees and costs and all other costs and expenses incurred by Bank in any Bankruptcy case filed by Borrower under Chapter
11 of the Bankruptcy Code if (i) such Bankruptcy case is subsequently dismissed or converted to a liquidation under Chapter 7
of the Bankruptcy Code, (ii) the automatic stay is lifted to permit Bank to foreclosure or realize upon all or substantially all
of the Collateral, (iii) the plan of reorganization approved in such case provides for the liquidation of all or substantially
all of the Collateral, or (iv) the terurs of repayment of the Loan under any plan of reorganization approved in such case shall
be no more favorable to Borrower than any terms of repayment which shall have been offered by Bank to Borrower in writing prior
to the commencement of the Bankruptcy case or within thirty days thereafter.

 

(c)          Subject
only to the limitations set forth above, this Agreement is an unconditional guaranty, and Carveout Guarantor agrees that Bank,
upon the occurrence of an Event of Default, shall not be required to assert any claim or cause of action against Borrower or any
other Person before asserting any claim or cause of action against Carveout Guarantor under this Agreement. Furthermore, Carveout
Guarantor agrees that Bank shall not be required to pursue or foreclose on the Collateral or on any other collateral that it may
receive from Borrower, Carveout Guarantor or others as security for any Obligations before making a claim or asserting a cause
of action against Carveout Guarantor concerning the Guaranteed Obligations under this Agreement. Notwithstanding the foregoing,
or any other provision in this Agreement to the contrary, Carveout Guarantor shall have absolutely no personal liability hereunder
other than the Guaranteed Obligations and only as expressly provided in this Agreement.

 

(d)          The
failure of Bank to perfect any portion of its security interest in any of the Collateral or any other collateral now or hereafter
securing all or any part of the Obligations, shall not release Carveout Guarantor from Carveout Guarantor's liabilities and obligations
hereunder.

 

    	2

    	 

    

 

(e)          To
the extent permitted by law: notice of acceptance of this Agreement and of any default by Borrower is hereby waived by Carveout
Guarantor; presentment, protest, demand, and notice of protest and demand of any and all collateral, and of the exercise of possessory
remedies or foreclosure on any and all collateral received by Bank from Borrower or Carveout Guarantor are hereby waived; and
all settlements, compromises, compositions, accounts stated, and agreed balances in good faith between any primary or secondary
obligors on any accounts received as collateral shall be binding upon Carveout Guarantor.

 

(f)          This
Agreement shall not be affected, modified, or impaired by the voluntary or involuntary liquidation, dissolution, sale or other
disposition of all or substantially all of the assets, marshalling of assets and liabilities, receivership, insolvency, bankruptcy,
assignment for the benefit of creditors, reorganization, arrangements, composition with creditors or readjustment of, or other
similar proceedings affecting Borrower, Carveout Guarantor or any other guarantor, or any of the assets belonging to one or more
of them, nor shall this Agreement be affected, modified or impaired by the invalidity of the Note, the Credit Agreement, any of
the other Loan Documents or any other document executed by Borrower or Carveout Guarantor in connection with the Loan.

 

(g)          Without
notice to Carveout Guarantor, without the consent of Carveout Guarantor, and without affecting or limiting Carveout Guarantor's
liability hereunder, Bank may:

 

(1)         grant
Borrower extensions of time for payment of the Obligations or any part thereof;

 

(2)         renew
any of the Obligations;

 

(3)         grant
Borrower extensions of time for performance of agreements or other indulgences;

 

(4)         at
any time release any or all of the collateral held by Bank as security for the Obligations;

 

(5)         at
any time release Carveout Guarantor or any other guarantor from such guarantor's guarantee, if any, of any of the Obligations;

 

(6)         compromise,
settle, release, or terminate any or all of the obligations, covenants, or agreement of Borrower under the Note, the Credit Agreement,
and/or any one or more of the other Loan Documents; and

 

(7)         with
Borrower's written consent, modify or amend any obligation, covenant or agreement of Borrower set forth in the Note, the Credit
Agreement, and/or the other Loan Documents.

 

    	3

    	 

    

 

2.          Carveout
Guarantor represents and warrants to Bank and covenants that Carveout Guarantor has full power and unrestricted right to enter
into this Agreement, to incur the obligations provided for herein, and to execute and deliver the same to Bank, and that when
executed and delivered, this Agreement will constitute a valid and legally binding obligation of Carveout Guarantor, enforceable
in accordance with its terms. Carveout Guarantor acknowledges that Bank is relying upon Carveout Guarantor's covenants herein
in making the Loan to Borrower, and Carveout Guarantor undertakes to perform Carveout Guarantor's obligations hereunder promptly
and in good faith.

 

3.          If
Borrower is or shall hereafter be indebted to Bank for any obligations, liability or indebtedness other than the Obligations,
and Bank should collect or receive any payments, funds or distributions that are not specifically required, by law or agreement,
to be applied to the Obligations, Bank may, in its sole discretion, apply such payments, funds or distributions to indebtedness
of Borrower other than the Obligations.

 

4.          Carveout
Guarantor hereby waives any right to indemnification and subrogation or other rights of reimbursement that Carveout Guarantor
might have against Borrower or Borrower's estate.

 

5.          This
Agreement shall be binding upon, and inure to the benefit of, Carveout Guarantor, Bank and their respective legal representatives,
heirs, successors and assigns.

 

6.          The
validity, interpretation, enforcement and effect of this Agreement shall be governed by, and construed according to the laws of,
the State of Alabama. Carveout Guarantor consents that any legal action or proceeding arising hereunder may be brought, at the
election of Bank, in the Circuit Court of Jefferson County, of the State of Alabama, or in the United States District Court for
the Northern District of Alabama, Southern Division, and assents and submits to the personal jurisdiction of any such courts in
any such action or proceeding.

 

7.          CARVEOUT
GUARANTOR HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY ON ANY CLAIM, COUNTERCLAIM, SETOFF, DEMAND, ACTION OR CAUSE OF ACTION ARISING
OUT OF OR IN ANY WAY PERTAINING OR RELATING TO THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH OR IN CONNECTION WITH THE TRANSACTIONS RELATED HERETO OR THERETO OR CONTEMPLATED HEREBY OR THEREBY OR THE
EXERCISE OF ANY RIGHTS AND REMEDIES HEREUNDER OR THEREUNDER, IN ALL OF THE FOREGOING CASES WHETHER NOW EXISTING OR HEREAFTER ARISING,
AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. CARVEOUT GUARANTOR AGREES THAT BANK MAY FILE A COPY OF THIS PARAGRAPH WITH
ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED AGREEMENT OF CARVEOUT GUARANTOR WITH BANK IRREVOCABLY TO
WAIVE TRIAL BY JURY, AND THAT ANY DISPUTE OR CONTROVERSY WHATSOEVER BETWEEN THEM SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT
JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

8.          In
the event that any provision hereof is deemed to be invalid by reason of the operation of any law or by reason of the interpretation
placed thereon by any court, this Agreement shall be construed as not containing such provisions and the invalidity of such provisions
shall not affect other provisions hereof which are otherwise lawful and valid and shall remain in full force and effect.

 

    	4

    	 

    

 

9.          Any
notice or payment required hereunder or by reason of the application of any law shall be given and deemed delivered as provided
in the Credit Agreement, except no payment shall be deemed received until the actual receipt thereof.

 

10.         The
failure at any time or times hereafter to require strict performance by Carveout Guarantor of any of the provisions, warranties,
Willis and conditions contained herein or in any other agreement, document or instrument now or hereafter executed by Carveout
Guarantor and delivered to Bank shall not waive, affect or diminish any right of Bank hereafter to demand strict compliance or
performance therewith and with respect to any other provisions, warranties, terms and conditions contained in such agreements,
documents and instruments, and any waiver of any default shall not waive or affect any other default, whether prior or subsequent
thereto and whether of the same or a different type. None of the warranties, conditions, provisions and terms contained in this
Agreement or in any agreement, document or instrument now or hereafter executed by Carveout Guarantor and delivered to Bank shall
be deemed to have been waived by any act or knowledge of Bank, its agents, officers or employees, but only by an instrument in
writing, signed by an officer of Bank, and directed to Carveout Guarantor specifying such waiver.

 

11.         The
obligations of Carveout Guarantor under this Agreement will continue to be effective or be reinstated, as the case might be, if
at any time any payment from Borrower of any sum due to Bank is rescinded or must otherwise be restored or returned by Bank on
the insolvency, Bankruptcy, dissolution, liquidation or reorganization of Borrower or as a result of the appointment of a custodian,
conservator, receiver, trustee or other officer with similar powers with respect to Borrower or any part of Borrower's property
or otherwise.

 

12.         Notwithstanding
anything in this Agreement to the contrary, Carveout Guarantor will, on demand, reimburse Bank for all expenses incurred by Bank
in connection with the enforcement of this Agreement, or to collect from Carveout Guarantor any amounts owing hereunder, then
in any such event, all of the Attorneys' Fees incurred by Bank arising from such services and any expenses, costs and charges
relating thereto shall constitute additional obligations of Carveout Guarantor payable on demand.

 

13.         Carveout
Guarantor does hereby waive any rights of exemption of property from levy or sale under execution or other process for the collection
of debts under the Constitution or laws of the United States or any state thereof as to any of the obligations created hereunder.

 

14.         Notwithstanding
any provisions of this Agreement to the contrary, this Agreement shall automatically terminate at such time as (i) all of the
Obligations have been paid and performed in full, (ii) Bank has no obligation to make any further Advances, and (iii) there is
not existing any Default.

 

15.         This
Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both oral and written, between
Carveout Guarantor and Bank with respect to the subject matter hereof.

 

    	5

    	 

    

 

IN WITNESS WHEREOF, this instrument has been
duly executed as of the day and year first above written.

 

	 	AMERICAN REALTY CAPITAL
	 	HEALTHCARE TRUST OPERATING
	 	PARTNERSHIP, L.P.,
	 	a Delaware limited partnership
	 	 
	 	By:	/s/ William M. Kahane	 
	 	 	William M. Kahane, its President

 

(Carveout Guaranty]12.31.2011 Exhibit 10.22

Exhibit 10.22

SEVERANCE AGREEMENT AND GENERAL RELEASE

This Severance Agreement and General Release (the “Agreement”) is entered into by and between Brian Freschi, and QUAD/GRAPHICS, INC. (including all of its parents, subsidiaries and affiliated and related entities) (collectively “Quad” or “the Company”).  Mr. Freschi and Quad are collectively referred herein as the “Parties”.

WHEREAS, Mr. Freschi has been employed by the Company as President of Retail Inserts, Directories, Books & Canada;

WHEREAS, the Parties seek to end the employment relationship and fully and finally resolve all matters between them based on a mutual settlement and understanding and without further expenditure of time, money or effort;

NOW THEREFORE, in consideration of the mutual covenants and promises set forth herein, the Parties agree as follows:

1.Separation Date.  Mr. Freschi’s last day of employment is November 29, 2011 (the “Separation Date”).

2.Payments.  Provided that Mr. Freschi signs and does not revoke this Agreement as set forth herein, the Company agrees that it will pay Mr. Freschi the gross amount of $1.2 million in 24 equal monthly installments.  These payments will be made in accordance with the Company’s executive payroll schedule, but in any event will not begin to be made any sooner than January 1, 2012.  In addition, the Company will pay Mr. Freschi the gross lump sum amount of $300,000.00, by or on January 13, 2012.  The Company will issue Mr. Freschi an IRS Form W-2 for all of the above payments and withhold legally required taxes and withholdings.

3.Outplacement.  The Company will provide Mr. Freschi with reimbursement for attorney’s fees relating to the negotiation of this agreement, outplacement services or other consulting services, to a maximum amount of $20,000.00.  Such services must be used by Mr. Freschi by December 31, 2012 to be eligible for reimbursement.  Mr. Freschi must submit receipts for such services to Gregg Bolt, Vice President of Human Resources, for reimbursement.

4.[Paragraph 4 Intentionally Left Blank].

5.[Paragraph 5 Intentionally Left Blank].

6.No Further Compensation or Benefits.  Mr. Freschi’s eligibility for any compensation, benefits, bonuses or allowances other than as set forth in this Agreement shall terminate as of the Separation Date.  The only exception is that Mr. Freschi retains his right to any retirement benefits in the Quad/Graphics Personal Enrichment Plan, the Qualified World Color Pension Plan, the World Color Restoration Plan, the New Non Qualified Deferred Comp Plan vested as of the Separation Date pursuant to the applicable plan documents.

Further, Mr. Freschi agrees that he has been paid for all hours worked, including overtime, has not suffered any on-the job injury for which he has not already filed a claim, has received all vacation pay to which he was entitled, was allowed all leave to which he was entitled, and is not otherwise entitled to the payments and/or other benefits provided for by this Agreement.

7.Transition.  Mr. Freschi agrees that for a period of twenty four (24) months following the Separation Date he will use his best efforts to assist the Company in transitioning his duties.  This includes being reasonably available for and responsive to reasonable inquiries and requests from the Company regarding his assignments and responsibilities.  Mr. Freschi agrees that he will in act in good faith and in the best interests of the Company in fulfilling these obligations.  Mr. Freschi further agrees to cooperate with the Company in any potential or pending litigation that may involve him in any capacity as a result of his employment with the Company.  This includes, if necessary, meeting at mutually convenient times with the Company’s attorneys, attending meetings, depositions and trial, and providing truthful testimony.  The Company agrees to reimburse Mr. Freschi for reasonable out-of-pocket costs incurred in complying with this provision, where such compliance is not otherwise required by law, to the extent such compliance is requested by the Company.

8.General Release and Waiver.  Mr. Freschi completely releases and fully discharges the Company, and its past, present and future directors, shareholders, officers, fiduciaries, representatives, benefit plans and administrators, attorneys, employees and agents of each and all of them, all both individually and in their official capacities, and all persons acting by, through, under or in concert with any of them (collectively the “Releasees”) from and against all claims, liabilities, damages, 

1

losses, demands and causes of action of any sort, whether known or unknown, including related attorneys’ fees and costs (hereinafter “claims”), that he may have against any of them arising out of, based on or relating in any way to any acts, circumstances, facts, transactions, omissions or other matters occurring up to or on the date he executes this Agreement.  This release of claims includes, but is not limited to, all claims pertaining to Mr. Freschi’s employment and the termination of his employment, including the notice and termination of his employment, all claims for wrongful discharge, breach of contract, violation of public policy, tort, or violation of any federal, state or local statute, constitution or regulation, including, but not limited to, claims arising under the Age Discrimination in Employment Act of 1967 (including the Older Workers’ Benefit Protection Act) (“ADEA”), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, and any other anti-discrimination law, and any and all claims that the protective covenants contained in paragraphs 11-13 of this Agreement are overly broad, unreasonable or unenforceable or claims that otherwise seek to avoid the application of paragraphs 11-13 of this Agreement (collectively, the "Released Claims").  This release is not intended to waive any claims that he may have to: (i) workers’ compensation benefits; (ii) government-provided unemployment insurance benefits; (iii) any rights or benefits under any benefit or retirement plan vested as of the Separation Date in accordance with the terms of the applicable plan documents; (iv) the pay and benefits provided in paragraphs 2-3 of this Release; (v) indemnification under any applicable statute, by laws or articles of incorporation; (vi) claims under the ADEA that may arise after the date he signs this Release; or (vii) any other rights or claims under applicable federal, state or local law that cannot be waived or released by private agreement.

9.Full and Complete Release.  The obligations stated in the above release are intended as full and complete satisfaction of any and all claims Mr. Freschi now has or had in the past.  By signing this Agreement, Mr. Freschi specifically represents that he has made reasonable efforts to fully apprise himself of the nature and consequences of this release, and that he understands that if any facts with respect to any matter covered by the release are found to be different from the facts he now believes to be true, he accepts and assumes that risk and agrees that the release shall be effective notwithstanding such differences.  Mr. Freschi expressly agrees that the release shall extend and apply to all unknown, unsuspected and unanticipated injuries and damages.

10.Covenant not to Sue, Consideration and Remedies.  Mr. Freschi agrees and covenants not to file any suit, complaint, claim, grievance or demand for arbitration against any of the Releasees in any court, administrative agency, commission or other forum with regard to any of the Released Claims.  Mr. Freschi further represents that no such claims, complaints, or other proceedings are pending in any court, administrative agency, commission or other forum.  However, Mr. Freschi understands that nothing in this Release shall be construed to prohibit him from filing a charge with, or participating in any investigation or proceeding conducted by, the Equal Employment Opportunity Commission, National Labor Relations Board and/or any other government agency that cannot be waived by private agreement.  Notwithstanding the foregoing, with respect to any charge filed with a governmental or that cannot be released by private agreement, Mr. Freschi hereby waives any and all rights to recover monetary damages or other recovery in any charge, complaint or lawsuit filed by him or by anyone else on his behalf to the fullest extent permitted by law.

Mr. Freschi acknowledges and agrees that the first payment described in paragraph 2 of this Agreement shall be the consideration for the release of claims contained in paragraph 8 of this Agreement.  The remainder of the payments in paragraph 2 shall be contingent upon Mr. Freschi’s compliance with the remaining obligations contained in this Agreement.  Without jeopardizing any other remedies, to the extent permitted by law, the Company will have the right to cease making payments provided for herein if Mr. Freschi breaches his obligations in this Agreement, provided that the Company gives Mr. Freschi 30 days written notice of its intent to cease payment and that the Company files a legal claim against Mr. Freschi for such breach within 90 days of discovering same.  If the Company ceases further payment to Mr. Freschi as set forth above, then Mr. Freschi agrees that the consideration provided to the date such payments are ceased is sufficient consideration for his full compliance with paragraphs 11-13 of this Agreement for the duration of those provisions.  In addition, without jeopardizing any other remedies, to the extent permitted by law, the Company will have the right to recover from Mr. Freschi the payments made to him under this Agreement if Mr. Freschi breaches his obligations in this Agreement.

11.Non-Disclosure of Confidential Information.  For a period of three (3) years following the Separation Date, Mr. Freschi will not directly or indirectly use or disclose to any person or entity any Confidential Information, except to the extent required by law or legal process.  Nothing in this paragraph is intended or should be construed to in any way limit the Company’s rights or Mr. Freschi’s responsibilities under any applicable state or federal law governing the treatment of trade secrets or other confidential information, and, notwithstanding the foregoing, Mr. Freschi’s obligations with respect to Confidential Information that constitutes a trade secret under applicable law shall continue until the longer of (a) such three-year period; or (b) when such Confidential Information is no longer a trade secret through no action or inaction by Mr. Freschi.

“Confidential Information” means all ideas, information, knowledge and discoveries, whether or not patentable, trademarkable or copyrightable, that are not generally known in the trade or industry and about which Mr. Freschi has knowledge as a result of 

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Mr. Freschi’s employment with the Company, including, without limitation, the Company’s product specifications, methods, equipment, technology, patents, know-how, inventions, improvements, designs, business plans, marketing plans, budget, cost and pricing information, employee compensation information, employee performance evaluations and employment related personnel information, internal memoranda, development programs, sale methods, customer lists, customer usages and requirements, computer programs, trade secrets and other confidential technical or business information and data.  Confidential Information shall not include such information that Mr. Freschi can demonstrate by a preponderance of the evidence: (i) at the time of disclosure by the Company to Mr. Freschi, was published or known publicly or otherwise was in the public domain; or (ii) after disclosure by the Company to Mr. Freschi and other than as a result of breach of Mr. Freschi’s obligations under this Agreement, becomes published or publicly known or otherwise becomes part of the public domain.

12.Covenant Not to Compete.  Mr. Freschi acknowledges that he has obtained during his employment with the Company knowledge of Confidential Information, customer relationships, know-how and goodwill that would, in the event Mr. Freschi were to become employed by or otherwise associated with a competitor, cause irreparable harm to the Company and its affiliates.  In consideration of the payments and covenants of the Company herein, and to protect these and other legitimate business interests, Mr. Freschi agrees to the following independent and severable restrictions:

(a)For a period of twenty four (24) months following the Separation Date, Mr. Freschi shall not directly or indirectly, as a director, officer, employee, shareholder, investor, partner, consultant or otherwise, provide any services in connection with the business of any person or entity who/which produces or sells any products or services (i) which compete with those produced, sold or offered for sale by the Company or any affiliate as of the Separation Date; or (ii) which, during the twelve (12) months prior to the Separation Date, the Company or an affiliate has taken internal or external steps to sell or produce or has materially considered, at an executive level, selling or producing (both (i) and (ii) hereafter referred to as “Restricted Products /Services”).  The geographic scope (the “Territory”) of this covenant shall include the United States and any other country in which the Company has direct operations, operates through a joint venture in which it has more than a nominal investment interest or has sold or engaged in marketing of Restricted Products/Services.  Nothing in this Agreement shall prohibit Mr. Freschi’s ownership of securities of corporation that is listed on a national securities exchange or traded in the national over-the-counter market in an amount that does not exceed five percent (5%) of the outstanding shares of any such corporation.

(b)For a period of twenty four (24) months following the Separation Date, Mr. Freschi shall not solicit, for the purpose of selling any Restricted Products/Services, any third party located in the Territory to which the Company has sold or attempted to sell Restricted Products/Services during the twelve (12) months preceding the Separation Date.

(c)Recognizing the specialized nature of the business of the Company and its affiliates, Mr. Freschi acknowledges and agrees that the duration, geographic scope and activity restrictions of this covenant not to compete are reasonable and will not prevent him from earning a living.

13.Non-Solicitation.  For a period of twenty four (24) months following the Separation Date, Mr. Freschi shall not directly or knowingly indirectly (a) solicit for employment any individual who is employed by the Company (an “Employee”); (b) encourage in any manner any Employee to terminate his/her employment with the Company; (c) encourage in any manner any customer, supplier or other contractor of the Company to terminate its relationship with the Company or diminish or materially alter the terms, conditions or specifications of the services or products provided to or by the Company; or (d) assist any third party with respect to any of the foregoing.

14.No Advice by the Company.  Mr. Freschi acknowledges that he has neither received nor relied upon any advice from the Company or any of its inside or outside attorneys or representative concerning the taxability of any payment made pursuant to this Agreement or the advisability of entering into this Agreement.  Mr. Freschi further agrees that, in the event that any taxing authority or agent requires that Mr. Freschi pay taxes, interest, or penalties on any payment made pursuant to this Agreement, that such requirement or payment shall not affect that validity of this Agreement, which shall remain binding and in effect.

15.No Admission of Liability.  It is understood and agreed by the Parties that this Agreement represents a compromise settlement of disputed claims, and that the promises and payments in consideration of this Agreement shall not be construed to be an admission of any liability or wrong doing by any party to any other party or to any other person.

16.Confidentiality of Agreement.  Mr. Freschi further agrees that he will keep the existence of this Agreement, the negotiations leading to this Agreement, and the terms and conditions of this Agreement strictly confidential and, except as may be required by law or to the extent set forth by the Company in any public SEC filing, will not review, discuss or disclose, orally or in writing, the existence of this Agreement, the negotiations leading to this Agreement or any of its terms or conditions 

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with any person, organization, or entity, other than his spouse, attorney or tax consultant, provided however that the disclosure of any such information by any such person will be deemed a breach of this Agreement by Mr. Freschi.

17.Non-Disparagement.  Mr. Freschi agrees not to disparage the Company, its Affiliates or any of their respective officers, directors, employees, shareholders and agents, in any manner likely to be harmful to them or their business, business reputation or personal reputation.  Mr. Freschi and the Company agree that they will respond accurately and fully to any question, inquiry or request for information when required by legal process.  If inquiries arise concerning Mr. Freschi’s separation from the Company or this Agreement by anyone other than Mr. Freschi’s spouse, attorney or tax consultant, Mr. Freschi will simply state his employment ended as the result of the restructuring of his business unit and will make no other comment.

18.Return of Property.  Mr. Freschi agrees to return all Company property to the Company within three (3) days of the Separation Date.  Property to be returned includes, without limitation, keys, pagers, PDAs, cell phones, security cards, corporate credit cards, telephone credit cards, lap top and other computers and computer equipment, flash drives, jump drives, and any other electronic devices, and any and all documents or electronic records belonging to Quad, notebooks, notes, manuals, tools, computer disks or hard drives, memoranda, records, diagrams, blueprints, bulletins, formulas, reports, client lists, access codes to computer files, source codes, passwords, computer programs, or other data or memoralizations of any kind, as well as any and all copies thereof, in any format (paper, electronic, etc) and any Company property or equipment that is in his possession or control.

19.Other Agreements By Mr. Freschi.  Mr. Freschi acknowledges and agrees that:

		
	(a)
	he has carefully read this Agreement and is entering into this Agreement knowingly, voluntarily, and with full knowledge and understanding of its significance, and has not been coerced, threatened, or intimidated into signing this Agreement;

		
	(b)
	he has been and hereby is advised in writing to consult with legal counsel of his choice regarding this Agreement and its effects;

		
	(c)
	he has been given the opportunity to a full forty-five (45) days within which to consider this Agreement before executing it;

		
	(d)
	among the possible claims he is waiving are any and all claims for age discrimination under the Age Discrimination in Employment Act of 1967, and that rights or claims under the Age Discrimination in Employment Act of 1967 that may arise after the date this Release is executed are not waived; and

		
	(e)
	he has received with this Agreement a list of the job titles and ages of all employees in the same decisional unit who are eligible and ineligible for the benefits described in the Release, and has had the opportunity to a full forty-five (45) days to consider this information.

20.Injunctive Relief; Attorney Fees.  Recognizing that compliance with the provisions of paragraphs 11-13 is necessary to protect the goodwill and other proprietary interests of the Company and its affiliates and that any breach of Mr. Freschi’s agreements thereunder will result in irreparable and continuing injury to the Company and its Affiliates for which there will be no adequate remedy at law, Mr. Freschi hereby agrees that, in the event of any such breach, the Company shall be entitled to immediate injunctive relief and such other and further relief, including, without limitation, damages, as may be proper.  In addition, if Mr. Freschi breaches any provision of this Agreement, Mr. Freschi will reimburse the Company for any reasonable legal and expert witness fees and expenses incurred by the Company in enforcing the breached provision against Mr. Freschi.

21.Revocation/Payment.  After Mr. Freschi signs the Agreement, he will have seven (7) days to revoke it.  If he wants to revoke the Agreement, he must deliver a written revocation to Andrew Schiesl, General Counsel, Quad/Graphics, Inc., N63 W23075 State Highway 74, Sussex, WI 53089, within 7 days after he has signed the Agreement.  The Agreement will become effective on the eighth (8th) day after Mr. Freschi signs and does not revoke it.

22.Entire Agreement/Severability.  This Agreement sets forth the entire agreement between Mr. Freschi and the Company regarding the matters herein and supersedes and replaces any other written or oral understandings regarding such matters.  The parties agree that if any provision of this Agreement or application thereof is held to be invalid, the invalidity shall not affect other provisions or applications of this Agreement.

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23.Choice of Law and Language of Agreement.  This Agreement and all rights, remedies and obligations hereunder, including, but not limited to, matters of construction, validity, and performance, shall be governed by the laws of the State of Wisconsin, without regard to the conflicts of laws provisions of Wisconsin or any other state.  Any action to enforce this agreement shall be brought in Wisconsin.  The language used in this Agreement will be deemed to be the language chosen by Mr. Freschi and the Company to express mutual intent, and no rule of strict construction will be applied against either Mr. Freschi or the Company.

24.Counterpart Signatures.  This Agreement may be executed in counterpart originals, and the counterpart originals together shall constitute the original of this Agreement.

AGREED TO BY:

	
					
	BRIAN FRESCHI
	 
	QUAD/GRAPHICS, INC.

	 
	 
	 
	 
	 

	/s/ Brian Freschi
	 
	/s/ Andrew R. Schiesl

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	Date:
	December 23, 2011
	 
	Andrew R. Schiesl

	 
	 
	 
	Printed Name

	 
	 
	 
	 
	 

	 
	 
	 
	Vice President, General Counsel & Secretary

	 
	 
	 
	Title
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Date:
	December 23, 2011

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