Document:

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                                                                   Exhibit 10.10

                            MOORE CORPORATION LIMITED
                           c/o Moore Executive Offices
                         One Canterbury Green 6th Floor
                               Stamford, CT 06901

                                                                December 9, 2002

Mark A. Angelson
876 Park Avenue
New York, New York 10021

Dear Mark:

      On behalf of Moore Corporation Limited (the "Company"), we are all
extremely pleased that you have agreed to serve as the Chief Executive Officer
(the "CEO") of the Company, effective as of January 1, 2003, in accordance with
the provisions of this letter agreement (this "Agreement"), which governs the
terms of your employment. We and you hereby acknowledge that your employment
with the Company constitutes "at-will" employment and that either party may
terminate this Agreement at any time, upon written notice of termination within
a reasonable period of time before the effective date of the termination. With
respect to the terms of your employment with the Company, you will have the
customary duties, responsibilities and authorities of a chief executive officer
at a corporation of a similar size and nature. You will report to the board of
directors of the Company. You will also receive such office, staffing, and other
assistance commensurate with that received by such other chief executive
officers.

      With respect to compensation for your services as CEO of the Company, you
will receive the following compensation and benefits, from which the Company may
withhold any amounts required by applicable law:

            (i) The Company will pay you a base salary ("Base Salary") at the
      rate of U.S. $1,000,000 per year. This Base Salary will be paid in
      accordance with the normal payroll practices of the Company.

            (ii) The Company will pay you an annual bonus (the "Annual Bonus")
      in two components of not less than U.S. $1,000,000 each on an
      all-or-nothing basis in respect of each fiscal year of the Company in
      accordance with the Company's annual incentive compensation plan if the
      Company achieves the performance objectives set forth by the board of
      directors of the Company (the "Board") (or any designated committee
      thereof) from time to time, after consultation with you;

            (iii) You will be immediately eligible to participate in any
      nonqualified pension plans (with no waiting period) and qualified plans,
      if any (subject to

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      applicable waiting periods), in which the senior executive officers of the
      Company customarily participate, and, in any event, you will be eligible
      (a) to participate in the Company's Supplemental Executive Retirement Plan
      and Supplemental Executive Health Plan, (b) for medical, hospital, dental,
      vision, life and accidental death and dismemberment insurance in customary
      amounts, and (c) to receive customary financial planning services; and

            (iv) You will be eligible for four (4) weeks vacation annually.

      If (i) the Company terminates your employment as CEO without Cause, as
defined in Annex A, (ii) you terminate your employment for Good Reason, as
defined in Annex A, prior to the third (3rd) anniversary hereof, or (iii) you
terminate your employment for any reason after the third (3rd) anniversary
hereof, the Company will pay you in a cash lump sum, an amount equal to two
times your Annualized Total Compensation (as defined below), subject to the
execution by you of a customary release; provided that if the Company terminates
your employment as CEO without Cause between January 1, 2004 and January 15,
2004, the cash lump sum payable by the Company shall be in an amount equal to
your Annualized Total Compensation. In the event the Company terminates your
employment as CEO without cause, in addition to the severance payments outlined
in the immediately preceding sentence, you shall receive a pro rata portion of
your Annual Bonus (as if all necessary targets and objectives have been met)
calculated based upon the number of months (including any partial month as a
whole month) in the relevant year during which you were employed as CEO plus, if
applicable, any portion of the Annual Bonus relating to a previous year that has
not yet been paid. Your rights of indemnification under the Company's and its
subsidiaries' and affiliates' organizational documents, any plan or agreement at
law or otherwise and your rights thereunder to director's and officer's
liability insurance coverage for, in both cases, actions as an officer and
director of the Company and its affiliates shall survive any termination of your
employment.

      "Annualized Total Compensation" means Base Salary plus Annual Bonus (as if
all necessary targets and objectives were met) for one year at the rate in
effect immediately before the date your employment with the Company is
terminated (the "Termination Date").

      If the Company terminates your employment without Cause, or if you
terminate your employment for Good Reason, following a Change in Control, as
defined in Annex A, such amount will be increased to three times rather than two
times Annualized Total Compensation and, if applicable, you will be entitled to
receive Gross-Up Payments as described in Annex B. Any termination by the
Company without Cause or termination by you for Good Reason, which takes place
within six (6) months prior to a Change in Control, shall be, presumptively, a
termination following a Change in Control. Upon any termination by the Company
without Cause or termination by you for Good Reason, all outstanding stock
options, grants, restricted stock awards or other equity grants issued to you
will vest 100% immediately either as of the Termination Date (in the case of a

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termination by the Company without Cause or a termination by you for Good
Reason) or prior to the Change in Control becoming effective (solely in the
event that upon or in connection with such Change in Control your employment
with the Company is terminated without Cause or you terminate your employment
for Good Reason), as applicable. The payments under this paragraph are in lieu
of any notice requirements of any Canadian federal or provincial law.

      In the event of any termination of your employment, you agree to resign as
an officer and director of the Company and its subsidiaries and affiliates.

      In addition, as soon as practicable after the date of this Agreement, you
will be granted options to purchase Common Shares to be issued under the
Company's stock option plan or long term incentive plan in an amount to be
agreed (the "Initial Grant"). Each year, you will also be considered by the
Board or the applicable committee thereof to receive options to purchase
additional Common Shares or other long term incentive compensation under the
Company's stock option plan or other long term incentive plans as may be in
effect from time to time after the date of this Agreement. All options in the
Initial Grant shall vest 33 1/3% per year over three (3) years beginning on the
first anniversary of the date the options are granted and then on each
succeeding anniversary of the date the options are granted provided you are then
employed.

      You agree (i) that at all times both during and after your employment, you
will respect the confidentiality of Company's and its subsidiaries' and
affiliates' confidential information and will not disparage the Company and its
subsidiaries and affiliates or their officers, directors or employees, and (ii)
during your employment and for one (1) year thereafter, you will not (a) accept
a position with, or provide material services to, an entity whose principal
business is the printing business, (b) solicit or hire, or assist others in the
solicitation or hiring of, the Company's employees (other than your
secretary/administrative assistant and Michael S. Kraus) or (c) interfere with
the Company's business relationships with any material customers or suppliers.

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

      The Company shall reimburse you for the reasonable fees and expenses of
Thacher Proffitt & Wood in connection with the negotiation and delivery of this
Agreement; provided that the aggregate amount that the Company is required to
reimburse you pursuant to this paragraph shall not exceed $5,000.

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      Any controversy or claim arising out of or relating to this Agreement or
the breach of this Agreement that cannot be resolved by you and the Company,
including any dispute as to the calculation of any payments hereunder, and the
terms of this Agreement, shall be determined by a single arbitrator in New York
City, New York, in accordance with the rules of the American Arbitration
Association. The decision of the arbitrator shall be final and binding and may
be entered in any court of competent jurisdiction. This Agreement shall be
interpreted in accordance with the laws of New York. The arbitrator may award
the party he determines has prevailed in the arbitration any legal fees and
other fees and expenses that may be incurred in respect of enforcing its
respective rights under this Agreement.

      This Agreement sets forth the entire agreement between us with respect to
the matters set forth herein, and fully supersedes any prior agreements or
understandings between us. This Agreement may be executed in counterparts. This
Agreement may not be modified or terminated orally.

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      If the foregoing terms and conditions are acceptable and agreed to by you,
please sign on the line provided below to signify such acceptance and agreement
and return the executed copy to the Senior Vice President, General Counsel of
the Company, One Canterbury Green, Stamford, Connecticut 06901.

                                    MOORE CORPORATION LIMITED

                                    By: /s/ Jennifer O. Estabrook
                                       ------------------------------------
                                       Name:  Jennifer O. Estabrook
                                       Title: Senior Vice President, General
                                              Counsel and Acting Secretary

Accepted and Agreed as of this 9th day of December, 2002

/s/ Mark A. Angelson
----------------------------
Mark A. Angelson

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                                                                         ANNEX A

                                   DEFINITIONS

      a. "CAUSE" means (i) the willful and continued failure of Executive to
perform substantially his duties with the Company (other than any such failure
resulting from Executive's incapacity due to physical or mental illness or any
such failure subsequent to Executive being delivered a notice of termination
without Cause by the Company or delivering a notice of termination for Good
Reason to the Company) after a written demand for substantial performance is
delivered to Executive by the Board that specifically identifies the manner in
which the Board believes that Executive has not substantially performed
Executive's duties, (ii) the willful engaging by Executive in illegal conduct or
breach of fiduciary duty which is intended to enrich Executive and is materially
injurious (monetarily or otherwise) to the Company or its subsidiaries and
affiliates, (iii) conviction of, or the pleading of nolo contendere with regard
to, a felony or any crime involving fraud, dishonesty or moral turpitude, or
(iv) refusal or failure to attempt in good faith to follow the written direction
of the Board (provided that such written direction is consistent with
Executive's duty and station) promptly upon receipt of such written direction. A
termination for Cause after a Change in Control shall be based only on events
occurring after such Change in Control; provided, however, the foregoing
limitation shall not apply to an event constituting Cause which was not
discovered by the Company prior to a Change in Control. For purpose of this
paragraph (a), no act or failure to act by Executive shall be considered
"willful" unless done or omitted to be done by Executive in bad faith and
without reasonable belief that Executive's action or omission was in the best
interests of the Company or its subsidiaries and affiliates. Any act, or failure
to act, based upon authority given to the Executive pursuant to a resolution
duly adopted by the Board or, based upon the advice of counsel for the Company,
shall be conclusively presumed to be done, or omitted to be done, by Executive
in good faith and in the best interests of the Company. Cause shall not exist
unless and until the Company has delivered to Executive a copy of a resolution
duly adopted by at least three-quarters (3/4) of the entire Board at a meeting
of the Board called and held for such purpose (after reasonable notice to
Executive and an opportunity for Executive, together with counsel, to be heard
before the Board), finding that in the good faith opinion of the Board an event
set forth in clauses (i) through (iv) has occurred and specifying the
particulars thereof in detail, provided that the Company may suspend the
Executive with pay (without it being Good Reason) pending such meeting. The
Company must notify Executive of any event constituting Cause within ninety (90)
days following the Company's knowledge of its existence or such event shall not
constitute Cause under this Agreement.

      b. "CHANGE IN CONTROL" means the occurrence of any one of the following
events:

            (i) individuals who, on the date of this Agreement, constitute the
      Board (the "Incumbent Directors") cease for any reason to constitute at
      least a majority of the Board, provided that any person becoming a
      director subsequent to the date of this Agreement, whose election or
      nomination for election was

                                      A-1
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                                                                         ANNEX A

      approved by a vote of at least two-thirds of the Incumbent Directors then
      on the Board (either by a specific vote or by approval of the proxy
      statement of the Company in which such person is named as a nominee for
      director, without written objection to such nomination) shall be an
      Incumbent Director; provided, however, that no individual initially
      elected or nominated as a director of the Company as a result of an actual
      or threatened election contest with respect to directors or as a result of
      any other actual or threatened solicitation of proxies or consents by or
      on behalf of any person other than the Board shall be deemed to be an
      Incumbent Director;

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

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

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                                                                         ANNEX A

      Surviving Corporation) other than persons set forth in (A) through (D) of
      paragraph (ii) and (C) at least a majority of the members of the board of
      directors of the Parent Corporation (or, if there is no Parent
      Corporation, the Surviving Corporation) following the consummation of the
      Business Combination were Incumbent Directors at the time of the Board's
      approval of the execution of the initial agreement providing for such
      Business Combination (any Business Combination which satisfies all of the
      criteria specified in (A), (B) and (C) above shall be deemed to be a
      "Non-Qualifying Transaction");

            (iv) the closing of a sale of all or substantially all of the
      Company's assets, other than to an entity or in a manner where the voting
      securities immediately prior to such sale represent directly or indirectly
      after such sale at least 50% of the voting securities of the entity
      acquiring such assets in approximately the same proportion as prior to
      such sale; or

            (v) the stockholders of the Company approve a plan of complete
      liquidation or dissolution of the Company.

      Notwithstanding the foregoing, a Change in Control of the Company shall
not be deemed to occur solely because any person acquires beneficial ownership
of more than 35% of the Company Voting Securities as a result of the acquisition
of Company Voting Securities by the Company which reduces the number of Company
Voting Securities outstanding; provided, that if after such acquisition by the
Company such person becomes the beneficial owner of additional Company Voting
Securities that increases the percentage of outstanding Company Voting
Securities beneficially owned by such person, a Change in Control of the Company
shall then occur.

      c. "GOOD REASON" means, without Executive's express written consent, the
occurrence of any of the following events:

            (i) (A) the assignment to Executive of any duties or
      responsibilities (including reporting responsibilities) that is
      inconsistent in any material and adverse respect with Executive's
      position(s), duties, responsibilities or status with the Company or any
      material and adverse diminution of such duties or responsibilities (other
      than temporarily while incapacitated because of physical or mental
      illness) or (B) a material and adverse change in Executive's titles or
      offices (including, if applicable, membership on the Board) with the
      Company;

            (ii) a reduction by the Company in Executive's rate of annual base
      salary or annual target bonus opportunity (including any material and
      adverse change in the formula for such annual bonus target) as the same
      may be increased from time to time;

            (iii) any requirement of the Company that Executive's office be more
      than fifty (50) miles from Executive's place of residence as of the date
      of this Agreement;

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                                                                         ANNEX A

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

      Notwithstanding anything herein to the contrary, termination of employment
by Executive for any reason during the 30-day period commencing one (1) year
after the date of a Change in Control shall constitute Good Reason.

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

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                                                                         ANNEX B

                                GROSS-UP PAYMENTS

      (a) Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that any payment, award, benefit or distribution
(or any acceleration of any payment, award, benefit or distribution) by the
Company (or any of its affiliated entities) or any entity which effectuates a
Change in Control (or any of its affiliated entities) to or for the benefit of
Executive (whether pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this Annex
B) (the "Payments") would be subject to the excise tax imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (the "Code"), or any interest
or penalties are incurred by Executive with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the "Excise Tax"), then the Company shall pay to
Executive an additional payment (a "Gross-Up Payment") in an amount such that
after payment by Executive of all taxes (including any Excise Tax) imposed upon
the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments. For purposes of determining the
amount of the Gross-up Payment, the Executive shall be deemed to (i) pay federal
income taxes at the highest marginal rates of federal income taxation for the
calendar year in which the Gross-up Payment is to be made, and (ii) pay
applicable state and local income taxes at the highest marginal rate of taxation
for the calendar year in which the Gross-up Payment is to be made, net of the
maximum reduction in federal income taxes which could be obtained from deduction
of such state and local taxes.

      (b) Subject to the provisions of paragraph (a) of this Annex B, all
determinations required to be made under this Annex B, including whether and
when a Gross-Up Payment is required, the amount of such Gross-Up Payment, and
the assumptions to be utilized in arriving at such determinations, shall be made
by the public accounting firm that is retained by the Company as of the date
immediately prior to the Change in Control (the "Accounting Firm") which shall
provide detailed supporting calculations both to the Company and Executive
within fifteen (15) business days of the receipt of notice from the Company or
the Executive that there has been a Payment, or such earlier time as is
requested by the Company (collectively, the "Determination"). In the event that
the Accounting Firm is serving as accountant or auditor for the individual,
entity or group effecting the Change in Control, Executive may appoint another
nationally recognized public accounting firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by the Company and the Company shall enter into any agreement reasonably
requested by the Accounting Firm in connection with the performance of the
services hereunder. The Gross-up Payment under this Annex B with respect to any
Payments shall be made no later than thirty (30) days following such Payment. If
the Accounting Firm determines that no Excise Tax is payable by Executive, it
shall furnish Executive with a written opinion to such effect, and to the effect
that failure to report the Excise Tax, if any, on Executive's applicable federal
income tax return will not result in the imposition of a

                                      B-1
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                                                                         ANNEX B

negligence or similar penalty. The Determination by the Accounting Firm shall be
binding upon the Company and Executive, except as provided below. As a result of
the uncertainty in the application of Section 4999 of the Code at the time of
the Determination, it is possible that Gross-Up Payments which will not have
been made by the Company should have been made ("Underpayment") or Gross-up
Payments are made by the Company which should not have been made
("Overpayment"), consistent with the calculations required to be made hereunder.
In the event that the Executive thereafter is required to make payment of any
Excise Tax or additional Excise Tax, the Accounting Firm shall determine the
amount of the Underpayment that has occurred and any such Underpayment (together
with interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall
be promptly paid by the Company to or for the benefit of Executive. In the event
the amount of the Gross-up Payment exceeds the amount necessary to reimburse the
Executive for his Excise Tax, the Accounting Firm shall determine the amount of
the Overpayment that has been made and any such Overpayment (together with
interest at the rate provided in Section 1274(b)(2) of the Code) shall be
promptly paid by Executive (to the extent he has received a refund if the
applicable Excise Tax has been paid to the Internal Revenue Service) to or for
the benefit of the Company. Executive shall cooperate, to the extent his
expenses are reimbursed by the Company, with any reasonable requests by the
Company in connection with any contests or disputes with the Internal Revenue
Service in connection with the Excise Tax and the Executive shall permit the
Company to control issues related to the Excise Tax (at its expense) to permit a
representative of the Company to accompany the Executive to any conference with
any taxing authority and to promptly deliver to the Company copies of any
written communications and summaries of any verbal communications with any
taxing authority regarding the Excise Tax.

                                       B-2<PAGE>

                                                              Exhibit 10.12

Moore                                                        Share Plan for
Corporation                                                    Non-Employee
Limited                                                           Directors

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6100 Vipond Drive
Mississauga, Ontario, Canada  L5T 2X1

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Moore                                                        Share Plan for
Corporation                                                    Non-Employee
Limited                                                           Directors

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        Table of Contents                                          Page No.

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                                   Section 1.
                               General Provisions

1.1.    Purpose......................................................    1
1.2.    Definitions..................................................    1
1.3.    Administration...............................................    2

                                   Section 2.
                              Awards Under the Plan

2.1.    Payment and Deferral of Annual Retainer......................    2
2.2.    Payment of Meeting and Chairmanship Fees.....................    3
2.3.    Adjustments and Reorganizations..............................    3
2.4.    Termination of Board Service.................................    3
2.5.    Transferability of Awards....................................    4
2.6.    No Right to Service..........................................    4
2.7.    Unfunded Plan................................................    4
2.8.    Successors and Assigns.......................................    4
2.9.    Plan Amendment...............................................    4
2.10.   Plan Termination.............................................    4
2.11.   Governing Law................................................    4

<PAGE>

Section 1.  General Provisions

1.1.     Purpose

                  The purpose of the Share Plan of Moore Corporation Limited
(the "Corporation") for Non-Employee Directors (the "Plan") is to promote a
greater alignment of interests between non-employee members of the Board and the
shareholders of the Corporation.

1.2.     Definitions

                  As used in the Plan, the following terms have the respective
meanings:

   (a)   "Average  Cost" means the average cost per share of the Common Shares
         purchased by the trustee  pursuant to paragraph 2.1(b);
   (b)   "Board" means the Board of Directors of the Corporation;
   (c)   "Committee" means the Compensation Committee of the Corporation's
         Board of Directors, or such other persons designated by the
         Corporation's Board of Directors;
   (d)   "Common Share" means a common share of Moore Corporation Limited;
   (e)   "Common Share Award" means an award of Common Shares under the Plan;
   (f)   "Corporation" means Moore Corporation Limited;
   (g)   "Deferred Share Unit" means a bookkeeping entry, equivalent in value
         to a Common Share, credited in accordance with an election made by an
         Eligible Director pursuant to Section 2.1;
   (h)   "Election  Date" means the date on which an Eligible Director files an
         election with the Secretary of the Corporation pursuant to Section
         2.1(a);
   (i)   "Eligible Director" means any director who is neither an employee nor
         an officer of the Corporation or any subsidiary of the Corporation on
         the applicable Election Date and includes the non-executive Chairman
         of the Board;
   (j)   "Fair Market Value" means the average of the high and low prices at
         which the Common Shares are traded on The Toronto Stock Exchange on
         the trading day preceding the grant (or, if such exchange is not open
         on such date, the immediately preceding date on which such exchange is
         open), or, if the Common Shares are not so listed or traded, the Fair
         Market Value shall be the value established by the Committee in good
         faith;
   (k)   "Plan" means the Moore Corporation Limited Share Plan for Non-Employee
         Directors;
   (l)   "Purchase  Date" means the date on which Common Shares are purchased
         pursuant to Section 5(b) in order to pay Common Share Awards (or, if
         the Eligible Director has elected to receive Deferred Share Units, the
         date on which Common Shares would have been provided had the Eligible
         Director chosen to receive Common Share Awards), which shall be,
         unless otherwise determined by the Committee, the later of the third
         business day following the release of the Corporation's second quarter
         results for the year in which the Eligible Director's annual term
         commenced or the third business day following the first release of the
         Corporation's  quarterly results that occurs after the Eligible
         Director's annual term commenced.

1.2.1.   Effective Date

         The Plan shall be effective as of July 1, 1997.

<PAGE>

                                     -2-

1.3.     Administration

                  The Plan shall be administered by the Committee, which is
authorized to interpret the Plan, to establish, amend and rescind any rules and
regulations relating to the Plan, and to make any other determinations that it
deems necessary or desirable for the administration of the Plan. The Committee
may correct any defect or supply any omission or reconcile any inconsistency in
the Plan in the manner and to the extent the Committee deems necessary or
desirable. Any decision of the Committee in the interpretation and
administration of the Plan, as described herein, shall lie within its sole and
absolute discretion and shall be final, conclusive and binding on all parties
concerned.

Section 2.  Awards Under the Plan

2.1.     Payment and Deferral of Annual Retainer

                  Each Eligible Director shall elect to receive up to US$15,000
of the annual retainer of US$25,000 in cash and the balance in the form of
Deferred Share Units or Common Share Awards, subject to such rules, approvals
and conditions as the Committee may impose. The Committee, in its discretion,
may negotiate an alternative arrangement with the Chairman of the Board.

(a)      Method of Electing.  In order to elect form of payment, the Eligible
         Director must complete and deliver to the  Secretary of the
         Corporation a written  election,  not later than 30 days after the
         date on which his or her annual term as a director  commenced,
         designating the portion of the balance of his or her  annual  retainer
         for that year of  service  as a  director  that is to be paid in
         Common Shares and the portion that is to be deferred  into  Deferred
         Share Units and the portion that is to be paid in cash.  If no
         election is made,  and no prior  election  remains  effective, the
         Eligible  Director  shall be deemed to have  elected  to be paid the
         balance  of the annual retainer in cash.

(b)      Common Share Awards.  If an Eligible Director elects to receive a
         portion of his or her annual retainer in the form of Common Share
         Awards, the Corporation shall transfer in cash, net of any applicable
         withholdings, the amount which the Eligible Director has elected be
         paid in Common Shares to a trust or custodial account, the trustee or
         custodian of which (the "Trustee") shall, on the Purchase Date, use
         such cash to purchase Common Shares on The Toronto Stock Exchange.
         Each Eligible Director shall be allocated a number of Common Shares
         equal to the cash amount that he or she has elected to receive in the
         form of Common Shares, divided by the Average Cost per share of the
         Common Shares purchased by the Trustee pursuant to this paragraph.
         Following the Trustee's purchase of the Common Shares the Trustee
         shall distribute the Common Shares to the Eligible Directors within
         ten days after such purchase or on such other date as is selected by
         the Eligible Director.  Any fractional shares shall be paid in cash.

<PAGE>

                                     -3-

(c)      Deferred Share Units. That portion of an Eligible Director's annual
         retainer to be paid in the form of Deferred Share Units, Director will
         be credited to an account maintained for the Eligible Director on the
         books of the Corporation, as of the Purchase Date. The number of
         Deferred Share Units (including fractional Deferred Share Units) to be
         credited shall be determined by dividing the amount of annual retainer
         to be deferred into Deferred Share Units by the Average Cost, or if
         Average Cost has not been established, by the Fair Market Value.

                  Deferred Share Units shall be credited with dividend
equivalents when dividends are paid on Common Shares and such dividend
equivalents shall be converted into additional Deferred Share Units based on the
Fair Market Value of Common Shares on the date credited.

2.2.     Payment of Meeting and Chairmanship Fees

                  Fees payable for attending Board or committee meetings or for
serving as Chair of a Board committee will be payable in cash.

2.3.     Adjustments and Reorganizations

                  In the event of any stock dividend, stock split, combination
or exchange of shares, merger, consolidation, spin-off or other distribution
(other than normal cash dividends) of Corporation assets to shareholders, or any
other change affecting shares, such proportionate adjustments, if any, as the
Committee in its discretion may deem appropriate to reflect such change, shall
be made with respect to the number of Deferred Share Units outstanding under the
Plan. In the event the Corporation is not the surviving corporation of a merger,
consolidation or amalgamation with another corporation or in the event of a
liquidation, reorganization and in the absence of any surviving corporation's
assumption of outstanding awards made under the Plan, the Committee may provide
for appropriate settlements of Deferred Share Units.

2.4.     Termination of Board Service

                  No later than the last business day of the calendar quarter
following termination of Board service by an Eligible Director to whom Deferred
Share Units have been granted under the Plan, the Eligible Director will receive
a lump sum payment, net of any applicable withholdings, (a) in cash equal to the
number of Deferred Share Units credited to his or her account as of such date
multiplied by the Fair Market Value of a Common Share on that day; or (b) in
Common Shares equal in number to the Deferred Share Units credited to the
Eligible Director's account. If the payment is to be made in Common Shares, the
Corporation shall contribute to the Trustee an amount of cash sufficient to
purchase the number of Common Shares to which the Eligible Director is entitled
and the Trustee shall, as soon as practicable thereafter, purchase those Common
Shares on a securities exchange on which the Common Shares are listed or traded.
Any fractional shares shall be paid in cash based on the Fair Market Value of a
Common Share.

<PAGE>

                                     -4-

2.5.     Transferability of Awards

                  Deferred Share Units shall not be transferable or assignable
other than by will or the laws of descent and distribution.

2.6.     No Right to Service

                  Neither participation in the Plan nor any action under the
Plan shall be construed to give any Eligible Director a right to be retained in
the service of the Corporation.

2.7.     Unfunded Plan

                  Unless otherwise determined by the Committee, the Plan shall
be unfunded. To the extent any individual holds any rights by virtue of a grant
awarded under the Plan, such rights (unless otherwise determined by the
Committee) shall be no greater than the rights of an unsecured general creditor
of the Corporation.

2.8.     Successors and Assigns

                  The Plan shall be binding on all successors and assigns of the
Corporation and an Eligible Director, including without limitation, the estate
of such Eligible Director and the executor, administrator or trustee of such
estate, or any receiver or trustee in bankruptcy or representative of the
Eligible Director's creditors.

2.9.     Plan Amendment

                  The Board may amend the Plan as it deems necessary or
appropriate.

2.10.    Plan Termination

                  The Board may terminate the Plan at any time. However, if so
terminated, prior awards shall, at the discretion of the Board, either (a)
become immediately payable, or (b) remain outstanding and in effect in
accordance with their applicable terms and conditions.

2.11.    Governing Law

                  The Plan and all matters to which reference is made herein
shall be governed by and construed in accordance with the laws of the Province
of Ontario, and the laws of Canada applicable therein.

Amended - July, 2001

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