Document:

EMPLOYMENT AGREEMENT

EFFECTIVE DATE: July 1, 1999

PARTIES AND ADDRESSES:

         CorVu Corporation
         3400 West 66th Street, Suite 445
         Edina, MN  55345                                        (the "Company")

         Justin MacIntosh
         Level 4, 1 James Place
         North Sydney NSW 2060 AUSTRALIA                         ("Executive")

RECITALS:

         A. The Company is a Minnesota corporation engaged principally in the
business of developing, manufacturing and selling business software programs.

         B. Executive is currently employed as the Company's Chairman, President
and Chief Executive Officer pursuant to an employment agreement which terminates
June 30, 1999.

         C. The Company and Executive desire to enter into an employment
agreement pursuant to which Executive will serve as the Company's Chief
Executive Officer for the three year period ending June 30, 2002.
This Employment Agreement will be referred to as the "Agreement."

AGREEMENTS:

         In consideration of the mutual promises and undertakings set forth
herein, the Company and Executive agree as follows:

                                    ARTICLE 1
                   Term of Employment, Duties and Supervision

         1.1) Employment; Term. The Company hereby employs Executive as its
Chairman, President and Chief Executive Officer pursuant to the terms of this
Agreement, and Executive hereby accepts such employment as of the date hereof.
Unless terminated pursuant to Articles 4 or 5, the term of employment shall
continue until June 30, 2002 (the "Term"), and thereafter shall renew
automatically for successive terms of one year each, upon the terms and
conditions set forth in this Agreement, as such may be modified by mutual
written agreement of the parties from time to time; provided, however, that
either Executive or the Company may terminate the employment of Executive during
the Term in accordance with, and subject to the right of Executive to receive
payments and other benefits that may be due pursuant to, Article 5. Each
12-month period commencing July 1 through June 30 during the Term is referred to
as an "Employment Year".

         1.2)     Duties; Title.

                  (a) Executive agrees, during his employment, to devote his
         full time and best efforts to the business of the Company, including,
         without limitation, the performance of those duties and
         responsibilities reasonably and customarily associated with the
         position of the Company's Chairman, President and Chief Executive
         Officer; provided, however, that Executive's duties and
         responsibilities consistent with Executive's position shall be subject
         to determination by the Company's Board of Directors. While serving as
         Chief Executive Officer, Executive shall be granted such powers and
         authority as are reasonably and customarily associated with the
         position of chief executive officer.

                  (b) Executive shall report to, and at all times shall be
         subject to the direction of, the Company's Board of Directors and/or
         its designee.

                  (c) Executive's title shall remain subject to the control of
         the Board of Directors; provided, however, that during the term of this
         Agreement, Executive shall always be designated as a principal
         executive officer of the Company.

         1.3) Additional Requirements. Executive, at all times during his
employment with the Company, shall comply with the Company's reasonable
standards, regulations and policies as determined or set forth by the Board of
Directors from time to time and as applicable to all employees and/or executive
employees of the Company.

         1.4) Outside Activities. The Company acknowledges and agrees that from
time to time Executive may serve as a member of the Board of Directors of one or
more businesses or nonprofit entities other than the Company; provided, however,
that Executive provides the Company's Board of Directors with information about
each proposed directorship, including time required by such directorship,
whether such directorship may involve conflicts of interest with the Company or
its interests, the types of risks which such directorship may involve, and any
other factors Executive or the Board of Directors considers material respecting
such directorship. The Company's Board of Directors shall promptly consider all
submissions by Executive pursuant to this Paragraph 1.4. The Company's Board of
Directors may request in good faith that Executive not accept a particular
directorship, or more than a specific number of directorships, or that Executive
resign from a particular directorship, and Executive agrees to honor such
requests.

                                    ARTICLE 2
                                  Compensation

         2.1) Compensation. Subject to Paragraph 4.2 and Articles 5, 7, 8 and 9
hereof, Executive shall be paid compensation for the performance of his duties
hereunder as follows:

                  (a) Salary. The Company shall pay Executive a base salary at
         the rate of $330,000 for the Employment Year commencing July 1, 1999,
         $380,000 for the Employment Year commencing July 1, 2000, and $420,000
         for the Employment Year commencing July 1, 2001, payable monthly, which
         may be adjusted from time to time by the Board of Directors. The
         Company shall be entitled to deduct or withhold all taxes and charges
         which the Company may be required to deduct or withhold therefrom.

                  (b) Options. Executive shall also be granted options to
         purchase a total of 600,000 shares of the Company's common stock at
         $1.50 per share, with 200,000 of said options vesting on July 1, 1999,
         200,000 options vesting on July 1, 2000, and 200,000 options vesting on
         July 1, 2001. The options must be exercised within 7 years from the
         date of grant of the options and shall be subject to such other terms
         and conditions as are contained in a Stock Option Agreement between
         Company and Executive evidencing such options.

         2.2) Termination of Compensation. Except as provided in Articles 4, 7,
8 and 9 of this Agreement, the Company's obligation to pay compensation to
Executive under this Article 2 shall terminate at the close of business on the
date on which Executive's employment is terminated; provided, however, that the
Company shall remain liable to pay Executive any amounts due Executive for
services rendered prior to such termination date pursuant to Paragraph 2.1(a).

                                    ARTICLE 3
                                    Expenses

         3.1) Expenses. During the term of this Agreement, Executive shall be
entitled to prompt reimbursement by the Company for all reasonable, ordinary and
necessary travel, entertainment and other business related expenses incurred by
Executive (in accordance with the policies and procedures established by the
Company from time to time) in the performance of his duties and responsibilities
under this Agreement; provided, however, that Executive shall properly account
for such expenses in accordance with federal, state and local tax requirements
and the Company's policies and procedures.

                                    ARTICLE 4
                                    Benefits

         4.1) Vacations; Holidays. Executive shall be entitled to four (4) weeks
of paid vacation plus all holidays in accordance with the Company's policies in
effect from time to time. Executive shall not be entitled to carry unused
vacation forward from one Employment Year to the next. Executive shall not be
entitled to compensation in any form in lieu of use of vacation and/or holiday
time off.

         4.2) Compensation During Sickness or Disability.

                  (a) Subject to the remaining provisions of this Paragraph 4.2,
         Executive shall be entitled to receive the monthly portion of
         Executive's annual base salary in accordance with Article 2 hereof for
         absences for physical or mental illness or injury during any Employment
         Year which do not give rise to a determination of Executive's
         disability pursuant to Paragraph 4.2(b) below.

                  (b) Subject to Paragraph 4.2(j), if, during any Employment
         Year, Executive is absent from Executive's employment for more than
         twenty (20) consecutive business days at any one time or more than
         forty (40) business days in total, by reason of physical or mental
         illness or injury, as determined by the Company or an examining
         physician or mental health professional acceptable to the Company, or
         in the event any other accident or occurrence gives rise to the
         likelihood of Executive's absence for more than the period of time
         specified above for reason of physical or mental illness or injury, as
         determined by the Company or an examining physician or mental health
         professional acceptable to the Company, Executive shall be deemed
         disabled for the purposes hereof. In such event, Executive shall be
         entitled to receive his base salary under Article 2, continued payment
         by the Company of Executive's share of health, life and disability
         insurance premiums (to the extent such benefits are offered by the
         Company to its executive employees and subject to the conditions or
         limitations of such insurance plans) during the first 90 calendar days
         from the date such disability is determined to have occurred, and,
         during such period, the Company may discontinue all other payments to
         or on behalf of Executive under this Agreement. After such 90 calendar
         day period, the Company shall terminate all payments to Executive.
         Notwithstanding anything herein to the contrary, such 90 calendar day
         period shall begin to run from the date such disability is determined
         to have occurred, regardless of whether Executive has any unused
         vacation. Executive shall not be entitled to any payments for unused
         vacation in conjunction with the application of this Paragraph 4.2,
         except to the extent any leave taken by Executive under this Paragraph
         4.2 qualifies as a leave under the Family and Medical Leave Act, 29
         U.S.C. Section 2601, et seq., in which event Executive may choose to
         use unused vacation instead of disability under this Paragraph 4.2. If
         Executive exercises such right, any unused vacation taken shall offset
         any period of disability leave that otherwise would have been paid
         under this Paragraph 4.2(b).

                  (c) If prior to any termination of Executive's employment
         under this Paragraph 4.2 Executive is able to resume performance of his
         duties under this Agreement, and if within six months of the resumption
         of such duties Executive is again absent from his employment by reason
         of physical or mental illness or injury for a period of more than ten
         business days such subsequent disability period shall be deemed to be a
         continuation of the immediately preceding disability period, and the
         disability payments made by the Company to Executive shall be made only
         for the remainder, if any, of the ninety (90) calendar day income
         continuation period provided for above, and in no event shall
         disability payments hereunder be made for a period or periods
         aggregating more than ninety (90) calendar days.

                  (d) Any disability period commencing after Executive has
         returned to his employment hereunder and has given reasonable and
         proper attention to his duties for a continuous period of 180 calendar
         days shall be deemed a new period of disability for purposes of this
         Paragraph 4.2.

                  (e) Any disability compensation payable under this Article 4
         shall be reduced by:

                           (i) any amount which is paid to Executive under any
                  private disability benefit plan or arrangement to which the
                  Company contributes or has contributed;

                           (ii) any benefits paid or payable to Executive on
                  account of the disability of Executive under any worker's
                  compensation law, occupational disease law, or similar
                  legislation of any state or of the federal government;

                           (iii) 50% of the amount of any related benefit which
                  Executive would be entitled to receive under the Federal
                  Social Security Act as in effect at the time the payment
                  hereunder is made; and

                           (iv) any benefits paid or payable to Executive under
                  any law of any state or of the federal government now in force
                  or hereafter enacted as compensation, wages or benefits in
                  lieu of wages on account of disability.

                  (f) Subject to a determination by the Company that Executive
         is capable of returning to part or full-time employment, the
         determination of the Company being conclusive if made with the advice
         of a competent physician or mental health professional selected by it,
         Executive may return to part-time or full-time employment at any time
         prior to any termination of Executive's employment under this Paragraph
         4.2. Following Executive's return to employment:

                           (i) if Executive returns to full-time employment, his
                  compensation shall be determined as though Executive had not
                  been disabled; or

                           (ii) if Executive returns to part-time employment,
                  Executive shall be entitled to a reasonable amount of
                  compensation for Executive's services rendered to the Company
                  as determined by a reasonable standard to be set by the
                  Company's Board of Directors.

                  (g) If Executive's employment is terminated, except for the
         reasons stated in subparagraph (a), (b), (c)(iv) or (v), or (d) of
         Paragraph 5.1 hereof, while the Company is making disability payments
         to Executive, Executive shall be entitled to receive the disability
         payments to which Executive would otherwise be entitled pursuant to the
         provisions of this Paragraph 4.2.

                  (h) The Company shall comply with all applicable state and
         federal laws relating to the disability of an employee, including laws
         regarding reasonable accommodation requirements and laws governing the
         granting of medical leaves of absence.

         4.3) Life and Health Insurance; Other Benefits. During Executive's
employment, the Company shall provide such deferred compensation, disability
insurance, life insurance, health insurance and other benefits to Executive as
the Company provides for its executive officers, and such additional benefits as
the Company's Board of Directors may determine in its sole discretion; provided
that, the Company may exclude Executive from participation in any 401(k) plan
which the Company implements to the extent deemed advisable to ensure the
continued qualification of such plan under applicable tax laws and in lieu
thereof compensate Executive appropriately to make up for his exclusion. Nothing
in this Paragraph 4.3 shall be construed to require the Company to provide
Executive with any identified or other benefits.

                                    ARTICLE 5
                                   Termination

         5.1) Events of Termination. Executive's employment hereunder:

                  (a) May be terminated by mutual written agreement of the
         parties.

                  (b) Shall terminate immediately upon the death of Executive.

                  (c) May be terminated by the Company upon written notice to
         Executive for "Cause", which shall mean the following:

                           (i) Material failure of Executive to (a) faithfully,
                  diligently or competently perform the material duties,
                  requirements and responsibilities of his employment as
                  established pursuant to this Agreement, or (b) take reasonable
                  direction consistent with the position for which he has been
                  employed as described in Article 1 from the Board of Directors
                  or its designee; or

                           (ii) Failure of Executive to materially comply with
                  the reasonable policies, regulations and directives of the
                  Company as in effect from time to time; or

                           (iii) Any act or omission on the part of Executive
                  which constitutes a material failure to comply with material
                  provisions of this Agreement; or

                           (iv) Any act or omission on the part of Executive
                  which is clearly and materially harmful to the reputation or
                  business of the Company, including, but not limited to,
                  conduct which is inconsistent with federal and state laws
                  respecting harassment of, or discrimination against, one or
                  more of the Company's employees; or

                           (v) Conviction of Executive of, or a guilty or nolo
                  contendere plea by Executive with respect to, any crime
                  punishable as a felony; or any bar against Executive from
                  serving as a director, officer or employee of any firm the
                  securities of which trade publicly.

                           No reasonable action, omission or failure by
                  Executive shall constitute "cause" if done or omitted to be
                  done by Executive in good faith and with a reasonable belief
                  that any such act, omission or failure was in the best
                  interests of the Company.

                           In the event of termination pursuant to subparagraphs
                  (i) through (iv) above, the Company shall give Executive
                  written notice (the "Cause Notice") of proposed termination
                  which provides reasonable detail as to the cause or causes
                  asserted by the Company and sets forth the date of a meeting
                  of the Company's Board of Directors, which date shall be no
                  sooner than five days after the date on which the Cause Notice
                  is given, at which Executive may appear, with an advisor of
                  his choice if Executive so desires, to discuss Executive's
                  proposed termination. At such meeting Executive and
                  Executive's advisor will honor requests by the director
                  presiding at the meeting to leave the meeting to allow for
                  discussion by the directors in Executive's absence. At such
                  time as the Board of Directors reaches a decision with respect
                  to Executive's termination, whether at the meeting set forth
                  in the notice to Executive, or at a subsequent meeting, if the
                  decision to terminate Executive is affirmed by the Board of
                  Directors, Executive will be given written notice of such
                  affirmation and Executive's employment will terminate
                  immediately upon the giving of such notice. In the event of
                  termination pursuant to subparagraph (v) above, Executive's
                  termination shall be immediate upon the giving of written
                  notice.

                  (d) Shall terminate in accordance with the provisions of
         Paragraph 4.2(b) hereof. Nothing in Paragraph 4.2(b) hereof or in this
         Paragraph 5.1(d) shall limit the right of either party to terminate
         Executive's employment under any other subparagraph of Paragraph 5.1;
         provided, however, that if Executive is receiving disability payments
         under Paragraph 4.2(b) the Company may not terminate this Agreement
         under Paragraphs 5.1(c)(i),(ii), or (iii), or (h).

                  (e) Shall terminate upon Executive's reaching the normal
         retirement date established by the Company for senior management
         employees of the Company, but in no event earlier than the compulsory
         retirement age permitted under federal or similar law for senior
         management employees.

                  (f) May be terminated by the Company, for any or no reason, on
         60 days' written notice to Executive; provided that if at the time of
         such termination "Cause" exists and the written notice specified in
         subparagraph (c) above is given, then such termination by the Company
         shall be considered to be pursuant to subparagraph (c) above.

                  (g) May be terminated by Executive, for any or no reason, on
         60 days' written notice to the Company.

         5.2) Compensation Upon Termination of Executive's Employment. In the
event that Executive's employment with the Company terminates, the following
provisions shall govern as applicable:

                  (a) If termination occurs pursuant to Paragraph 5.1(a) (by
         mutual written agreement) the agreement of the parties shall control.

                  (b) If termination occurs pursuant to Paragraph 5.1(b) (for
         death), all benefits shall terminate as of the termination date, and
         the base salary shall terminate as provided in Paragraph 2.2.

                  (c) If termination occurs pursuant to Paragraph 5.1(c) (for
         Cause) or 5.1(h) (resign without Good Reason), all benefits shall
         terminate as of the termination date, and the base salary shall be paid
         to the date of termination as provided in Paragraph 2.2.
                  (d) If termination occurs pursuant to Paragraph 5.1(d)
         (disability), the provisions of Paragraph 4.2 shall govern the
         termination of benefits and base salary.

                  (e) If termination occurs pursuant to Paragraph 5.1(e)
         (retirement), the provisions of Paragraph 5.2(b) shall govern the
         termination of benefits and base salary.

                  (f) If termination occurs pursuant to 5.1(f) (by the Company
         without Cause) then Executive's base salary shall be paid to the date
         of termination as provided in Paragraph 2.2 and in addition:

                           (i) the Company shall pay Executive, as severance
                  pay, in accordance with the Company's normal payroll practices
                  for executive employees, such number of consecutive monthly
                  installments of his base salary in effect as of the date of
                  termination as is equal to the greater of (A) the number of
                  months remaining in the Term (without regard to renewals) of
                  this Agreement, or (B) nine (9).

                           (ii) Executive shall be entitled to continued
                  participation in hospital and medical plans and programs of
                  the Company for such period as is provided by law following
                  termination of Executive's employment, subject to Executive's
                  paying the employee portion of the cost of such participation
                  and subject to termination of participation upon Executive
                  becoming entitled to comparable benefits on subsequent
                  employment.

                  (g) If termination occurs pursuant to Paragraph 5.1(g) the
         compensation provisions of Paragraph 5.2(c) shall apply.

                  (h) All payments made to Executive under this Paragraph 5.2
         shall be reduced by amounts (i) required to be withheld in accordance
         with federal, state and local laws and regulations in effect at the
         time of payment, or (ii) owed to the Company by Executive for any
         amounts advanced, loaned or misappropriated.

         5.3) Return of the Company Property. In the event of termination of
Executive's employment all corporate documents, records, files, credit cards,
computer disks and tapes, computer access card, codes and keys, file access
codes and keys, building and office access cards, codes and keys, materials,
equipment and other property of the Company which is in Executive's possession
shall be returned to the Company at its principal business office on the date of
termination of Executive's employment, or within five days thereafter if
termination occurs without notice. Executive may copy, at Executive's expense,
documents, records, materials and information of the Company only with the
Company's express, written permission.

                                    ARTICLE 6
                           Inventions, Plans and Ideas

         6.1) Definition. "Inventions, plans and ideas" as used in this Article
6 mean any discoveries, ideas, plans and improvements (whether or not they are
in writing or reduced to writing or embodied solely in practices of the Company)
or works of authorship (whether or not they are or can be patented or
copyrighted) that Executive makes, authors, or conceives (either alone or with
others) and that:

                  (a) concern the Company's business or the Company's research
         or development or planning that can be demonstrated to relate to the
         Company's then-current business or any planned business discussed with
         the Board of Directors which the Company is actively exploring; or

                  (b) result from and relate to any work Executive performs for
         the Company which work also meets the criteria of subparagraph (a); or

                  (c) use the Company's trade secret information.

         6.2) Property of the Company. Executive agrees that all "inventions,
plans and ideas" he makes during the term of this Agreement will be the
Company's sole and exclusive property. Executive will, with respect to any such
"invention, plan or idea":

                  (a) keep current, accurate and complete records which will
         belong to the Company and be kept and stored on the Company's premises
         while Executive is employed by the Company.

                  (b) promptly and fully disclose the existence and describe the
         nature of the invention, plan or idea to the Company in writing (upon
         request).

                  (c) assign, and Executive hereby does assign, to the Company
         all of his rights to any such "invention, plan or idea", and any
         applications which he may make for patents, copyrights, trademarks or
         service marks in any country.

                  (d) acknowledge and deliver promptly to the Company any
         written instruments, and perform any other acts necessary in the
         Company's reasonable opinion, to preserve property rights in any
         invention, plan or idea against forfeiture, abandonment or loss, and to
         obtain and maintain letters patent and/or copyrights and/or marks on
         any invention, plan or idea and to vest the entire right and title to
         such "invention, plan or idea" in the Company.

NOTICE: Pursuant to Minnesota Statutes ss. 181.78, Executive is hereby notified
that this Article 6 does not apply to any invention for which no equipment,
supplies, facility, or trade secret information of the Company was used and
which was developed entirely on Executive's own time, and (1) which does not
relate (a) directly to the business of the Company or (b) to the Company's
actual or demonstrably anticipated research or development, or (2) which does
not result from any work performed by the employee for the Company.

         6.3) Executive Claims. Executive does not have, and will not assert,
any claims to or rights under any "inventions, plans or ideas" as having been
made, conceived, offered or acquired by Executive prior to his employment by the
Company. Further, and without limiting the foregoing, Executive has contributed
and assigned, and hereby does contribute and assign, to the Company all
"inventions, plans and ideas" within the meaning of this Article 6.

                                    ARTICLE 7
                            Confidential Information

         7.1) Definition. "Confidential Information" as used in this Article 7
means information (a) that is not generally known to the public and (b) that is
proprietary to the Company or that the Company is obligated to treat as
proprietary. Confidential Information shall include, without limitation:

                  (i) trade secret information about the Company and its
         products and services; and

                  (ii) Any information that the Company reasonably considers or
         treats as Confidential Information, or that Executive actually knows or
         reasonably should know that the Company considers or treats as
         Confidential Information (whether Executive or others originated it and
         regardless of how Executive obtained it).

         7.2) Use Prohibited. Except as required in his duties to the Company,
Executive will never knowingly, either during or after his employment by the
Company, use or disclose Confidential Information to any person not authorized
by the Company to receive it, excluding Confidential Information (a) which
becomes publicly available through a source other than Executive, (b) which is
made public by the Company, (c) which is received by Executive after termination
of this Agreement from a third party who obtained the information on a
non-confidential basis from the Company, (d) for which disclosure thereof the
Company has consented to in writing, or (e) that Executive is compelled to
disclose in any judicial or administrative proceeding. Promptly upon termination
of Executive's employment with the Company, Executive will turn over to the
Company all records, documents, materials and any compositions, articles,
devices, apparatus and other items that disclose, describe or embody
Confidential Information, including all copies and reproductions thereof, in
Executive's possession, regardless of who prepared them.

         7.3) Violation by Executive. If it is determined by an arbitration
proceeding or a final, non-appealable judgment of a court of law or equity that
Executive has breached Article 7 with regard to material information, the
Company shall be relieved of further severance payments to Executive and
Executive shall repay to the Company all severance payments previously received.

                                    ARTICLE 8
                        Competitive Activities Prohibited

         8.1) Prohibition; Duration. Executive agrees that, during his
employment with the Company and for any period for which Company is making (or
has made in the case of a Change of Control) severance payments to Executive
pursuant to this Agreement after termination of Executive's employment,
Executive will not alone, or in any capacity with another firm, individual or
person:

                  (a) directly or indirectly, whether as an employee, officer,
         director, shareholder, (provided, however, that passive investments in
         publicly traded securities not exceeding five percent of the issuer's
         capital stock shall be permitted), partner, agent, owner,
         representative, consultant or otherwise, engage in any activity, in any
         state or foreign country, that competes with the Company's products or
         services produced, sold or rendered in the ordinary course of the
         Company's business as of the date of Executive's termination, or
         products or services demonstrated to have been formally planned and
         approved before the date of Executive's termination for production or
         sale;

                  (b) in any way interfere or attempt to interfere with the
         Company's relationships with any of its then-current customers,
         suppliers, vendors or investors; or

                  (c) employ or attempt to employ any of the Company's
         employees, or the employees of any enterprise managed or owned by the
         Company on behalf of any other entity competing with the Company;

                  provided, however, that in the event Executive's severance
         payments are paid in a lump sum as a result of termination after a
         "Change of Control", the period during which the provisions of this
         Section 8.1 shall apply will be one year.

         All of the above activities are "Competitive Activities".

         8.2) Exception. Nothing in Paragraph 8.1 shall restrict the Executive's
employment by, or association with, an entity, venture or enterprise which
engages in a business with a product or service competitive with any product or
service, or planned product or service per Paragraph 8.1(a), of the Company so
long as Executive's employment or association with such entity, venture or
enterprise is limited to work which does not directly involve products or
services which compete with any product or service offered, or planned to be
offered per Paragraph 8.1(a), by the Company at the date of Executive's
termination.

         8.3) Violation by Executive. If it is determined by an arbitration
proceeding or a final non-appealable judgment of a court of law or equity that
Executive has breached Article 8 in a material manner the Company shall be
relieved of further severance payments to Executive, and Executive shall repay
to the Company all severance payments previously received.

         8.4) Notice to New Employer. Executive will, prior to accepting
employment with any new employer, inform that employer of this Agreement and
provide that employer with a copy of Article 8 of this Agreement.

                                    ARTICLE 9
                            Certain Company Remedies

         9.1) Certain Company Remedies. The parties acknowledge that the Company
will suffer irreparable harm if the Executive breaches Paragraph 5.3 and/or
Articles 6, 7 and/or 8 of this Agreement, either during or after its term.
Accordingly, the Company shall be entitled to any right or remedy it may have,
under this Agreement or otherwise, at law or equity, including but not limited
to, an injunction, enjoining or restraining Executive from any violation of
Paragraph 5.3 and/or Articles 6, 7 and/or 8 of this Agreement.

         9.2) Payment of Fees and Expenses. If either party initiates or becomes
a party to a formal proceeding in law or equity, or under Article 10, involving
this Agreement, and if either party obtains a substantial portion of the relief
requested by that party (the "prevailing party"), then the non-prevailing party
shall pay all of its and the prevailing party's reasonable costs and expenses,
including reasonable attorneys' fees and expenses, incurred with respect to such
proceeding. If neither party obtains a substantial portion of the relief
requested each shall bear its/his own expenses. In the event Executive is
terminated pursuant to Paragraph 5.1 (c) and determines to challenge the
Company's determination of "Cause", the Company and Executive shall each bear
its/his own expenses in connection with any proceeding initiated by Executive
with respect to the determination as to "Cause".

                                   ARTICLE 10
                                   Arbitration

         10.1) Agreement to Arbitrate. With the exception of the Company's
rights and remedies in connection with breaches by Executive of Paragraph 5.3
and/or Articles 6, 7 and/or 8 of this Agreement, all disputes or claims arising
out of or in any way relating to this Agreement, including the making of this
Agreement, shall be submitted to and determined by final and binding arbitration
under the rules of the American Arbitration Association. Arbitration proceedings
may be initiated by the Company or Executive upon notice to the other and to the
American Arbitration Association, and shall be conducted by three arbitrators
under the rules of the American Arbitration Association in Minneapolis,
Minnesota; provided, however, that the Company and Executive may agree,
following the giving of such notice, to have the arbitration proceedings
conducted with a single arbitrator. The notice must specify, in general, the
issues to be resolved in any such arbitration proceeding. The arbitrators shall
be selected by agreement of the Company and Executive from a list of 12 or more
arbitrators proposed to the Company and Executive by the American Arbitration
Association, or may be persons not on such list as agreed to by the Company and
Executive. If the Company and Executive fail to agree on one or more of the
persons to serve as arbitrators within 30 days of delivery of the list of
proposed arbitrators by the American Arbitration Association, then at the
request of the Company or Executive such arbitrators shall be selected at the
discretion of the American Arbitration Association.

         In addition to any other procedures provided for under the rules of the
American Arbitration Association, upon written request, each party shall, at
least 14 days prior to the date of any hearing, provide to the opposite party a
copy of all documents relevant to the issues raised by any claim or counterclaim
and a list of all witnesses to be called by that party at the hearing.

         10.2) Costs. The costs of proceedings under Article 10 shall be paid in
accordance with the provisions of Article 9.

                                   ARTICLE 11
                                 Indemnification

         11.1) As to acts or omissions of Executive which are within the scope
of Executive's authority as an officer and/or director of the Company and/or any
affiliate of the Company, the Company shall indemnify Executive, and his legal
representatives and heirs to the maximum extent permitted by Minnesota law.

                                   ARTICLE 12
                                  Miscellaneous

         12.1) Successors and Assigns. This Agreement is binding on and inures
to the benefit of the Company, and its successors and assigns. The Company
agrees that the Company shall be deemed to have materially breached this
Agreement if its successor or assign does not assume all of the Company's
material obligations under this Agreement. The rights and obligations of
Executive under this Agreement are personal and may not be assigned or
transferred without the express written consent of the Company.

         12.2) Modification. This Agreement supersedes all prior agreements and
understandings between the parties. This Agreement may be modified or amended
only by a writing signed by the Company and Executive.

         12.3) Waivers. No failure or delay by either the Company or Executive
in exercising any right or remedy under this Agreement shall be deemed a waiver
of any provision of this Agreement. Nor shall any single or partial exercise by
either the Company or Executive of any right or remedy under this Agreement
preclude either from otherwise or further exercising rights or remedies granted
under this Agreement.

         12.4) Notices. Any and all notices referred to herein shall be deemed
properly given only if in writing and delivered personally or sent postage
prepaid, by certified mail, return receipt requested, as follows:

                  (a) To the Company, to the attention of the Company's Chief
         Financial Officer, at its office set forth on page 1 of this Agreement
         or at such other address as the Company may specify in writing to
         Executive, with a copy to each member of the Company's Board of
         Directors, and to Fredrikson & Byron, P.A., 1100 International Centre,
         900 Second Avenue South, Minneapolis, Minnesota 55402, Attention: John
         H. Stout.

                  (b) To Executive at his home address as it then appears on the
         records of the Company, it being the duty of the Executive to keep the
         Company informed of his current home address at all times.

         The date on which notice to the Company or Executive shall be deemed to
have been given if mailed as provided above shall be the date on the certified
mail return receipt. Personal delivery to Executive shall be deemed to have
occurred on the date notice was delivered to Executive personally or deposited
in a mail box or slot or left with security or administrative personnel, at
Executive's residence by a representative of the Company or any messenger or
delivery service.

         12.5) Action by Board of Directors. Any action required by the
Company's Board of Directors under this Agreement may be taken by majority vote
of a duly authorized committee having authority over the matter in question or
by a majority of the remaining members of the Board of Directors, not counting
Executive, then serving.

         12.6) Judicial Review; Severability. In the event that a court of
competent jurisdiction determines that any of the provisions of this Agreement
are unreasonable, it may limit such provision to the extent it deems reasonable,
without declaring the provision or this Agreement invalid in its entirety. This
provision shall not be construed as an admission by the Company, but is only
included to provide the Company with the maximum possible protection for its
business, Confidential Information, Inventions, trade secrets and data,
consistent with the right of the Executive to earn a livelihood subsequent to
the termination of his employment.

         To the extent any portion of any provision of this Agreement shall be
deemed invalid or unenforceable, it shall be considered deleted herefrom and the
remainder of such provision and the remainder of this Agreement shall be
unaffected and shall continue in full force and effect.

         The Company and Executive desire that this Agreement shall be given the
construction which renders its provisions valid and enforceable to the maximum
extent, not exceeding its express terms, permissible under applicable law.

         12.7) Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Minnesota.

         IN WITNESS WHEREOF, the Company and Executive have executed this
Agreement on July 1, 1999 to be effective as of the effective date set forth
above.

                                 Company:  CORVU CORPORATION

                                           By:
                                              Its

                                 Executive:

                                           Justin MacIntosh ("Executive")EMPLOYMENT AGREEMENT

EFFECTIVE DATE: July 15, 1996

PARTIES AND ADDRESSES:

         CorVu Corporation
         7901 Flying Cloud Drive, #100
         Eden Prairie, MN  55344-7903                           (the "Company")

         David Carlson
         18115 35th Ave. N.
         Plymouth, MN 55447                                     ("Executive")

RECITALS:

         A. The Company is a Minnesota corporation engaged principally in the
business of developing, manufacturing and selling business software programs.

         B. Executive is a certified public accountant and has prior experience
as a principal financial officer of a business enterprise.

         C. The Company and Executive desire to enter into an employment
agreement for Executive's services on the terms stated herein. This Employment
Agreement will be referred to as the "Agreement."

AGREEMENTS:

         In consideration of the mutual promises and undertakings set forth
herein, the Company and Executive agree as follows:

                                    ARTICLE 1
                   Term of Employment, Duties and Supervision

         1.1) Employment; Term. The Company hereby employs Executive as its
Chief Financial Officer pursuant to the terms of this Agreement, and Executive
hereby accepts such employment as of the date hereof. Unless terminated pursuant
to Articles 4 or 5, the term of employment shall continue until July 14, 1999
(the "Term"), and thereafter shall renew automatically for successive terms of
one year each, upon the terms and conditions set forth in this Agreement, as
such may be modified by mutual written agreement of the parties from time to
time; provided, however, that either Executive or the Company may terminate the
employment of Executive during the Term in accordance with, and subject to the
right of Executive to receive payments and other benefits that may be due
pursuant to, Article 5. Each 12-month period commencing July 15 through the
following July 14 during the Term is referred to as an "Employment Year".

         1.2)     Duties; Title.

         (a)      Executive agrees, during his employment, to devote his full
                  time and best efforts to the business of the Company,
                  including, without limitation, the performance of those duties
                  and responsibilities reasonably and customarily associated
                  with the position of the Company's Chief Financial Officer;
                  provided, however, that Executive's duties and
                  responsibilities consistent with Executive's position shall be
                  subject to determination by the Company's Chief Executive
                  Officer. While serving as Chief Financial Officer, Executive
                  shall be granted such powers and authority as are reasonably
                  and customarily associated with the position of Chief
                  Financial Officer.

         (b)      Executive shall report to, and at all times shall be subject
                  to the direction of, the Company's Chief Executive Officer
                  and/or his designee.

         (c)      Executive's title shall remain subject to the control of the
                  Board of Directors.

         1.3) Additional Requirements. Executive, at all times during his
employment with the Company, shall comply with the Company's reasonable
standards, regulations and policies as determined or set forth by the Board of
Directors from time to time and as applicable to all employees and/or executive
employees of the Company.

         1.4) Outside Activities. The Company acknowledges and agrees that from
time to time Executive may serve as a member of the Board of Directors of one or
more businesses or nonprofit entities other than the Company; provided, however,
that Executive provides the Company's Board of Directors with information about
each proposed directorship, including time required by such directorship,
whether such directorship may involve conflicts of interest with the Company or
its interests, the types of risks which such directorship may involve, and any
other factors Executive or the Board of Directors considers material respecting
such directorship. The Company's Board of Directors shall promptly consider all
submissions by Executive pursuant to this Paragraph 1.4. The Company's Board of
Directors may request in good faith that Executive not accept a particular
directorship, or more than a specific number of directorships, or that Executive
resign from a particular directorship, and Executive agrees to honor such
requests.

                                    ARTICLE 2
                                  Compensation

         2.1) Compensation. Subject to Paragraph 4.2 and Articles 5, 7, 8 and 9
hereof, Executive shall be paid compensation for the performance of his duties
hereunder as follows:

         (a)      Salary. The Company shall pay Executive a base salary at the
                  rate of $78,000 per year for the Employment Year commencing
                  July 15, 1996. Prior to the close of each Employment Year the
                  Company's Chief Executive Officer shall review Executive's
                  performance for such Employment Year and shall establish
                  Executive's base salary for the next succeeding Employment
                  Year. Executive's salary shall be payable monthly. The Company
                  shall be entitled to deduct or withhold all taxes and charges
                  which the Company may be required to deduct or withhold
                  therefrom.

         (b)      Bonus Compensation. Executive may earn a performance bonus for
                  each Employment Year, the aggregate amount of which may be up
                  to 25% of Executive's base salary for a particular Employment
                  Year. Fifty percent (50%) of such performance bonus shall be
                  based on the Chief Executive Officer's review and analysis of
                  Executive's management of the Company's cash flow,
                  establishment and maintenance of operating subsidiary
                  controls, preparation for and facilitation of the Company's
                  annual financial audits and providing requested reports and
                  other support to the Company's Chief Executive Officer, and is
                  thus subjective in nature. The remaining 50% of Executive's
                  bonus shall be based on the achievement by the Company of the
                  following objectives, and is thus quantitative in nature:

                  Fiscal 1997: Company pre-tax profits of $1 million or more;

                  Fiscal 1998: Company pre-tax profits of $2.5 million or more;

                  Fiscal 1999: Company pre-tax profits of $8.0 million or more.

                  At the discretion of the Chief Executive Officer, in any
                  Employment Year, Executive may be permitted to elect to
                  receive all or a portion of Executive's bonus in common stock
                  of the Company based on the per share option price of the
                  Company's common stock options on the date Executive's bonus
                  compensation is determined.

         (c)      No Past Salary or Other Obligations. Executive acknowledges
                  that at the date hereof the Company was not indebted to
                  Executive for any amount, whether arising out of Executive's
                  prior service to the Company or otherwise.

         (d)      Fiscal Year. For purposes of this Agreement the Company's
                  fiscal year is assumed to be June 30.

         2.2) Termination of Compensation. Except as provided in Articles 4, 7,
8 and 9 of this Agreement, the Company's obligation to pay compensation to
Executive under this Article 2 shall terminate at the close of business on the
date on which Executive's employment is terminated; provided, however, that:

         (a)      the Company shall remain liable to pay Executive any amounts
                  due Executive for services rendered prior to such termination
                  date pursuant to Paragraph 2.1(a); and

         (b)      the Company shall calculate Executive's earned bonus
                  compensation pro rata to and including the date of
                  termination; and shall pay Executive any earned bonus within
                  sixty (60) days following the close of the month in which the
                  date of termination occurs, unless otherwise agreed. To the
                  extent portions of such bonus compensation are based on the
                  completion of specific tasks or objectives, and such tasks or
                  objectives have been completed prior to Executive's
                  termination, bonus portions allocable to same shall be paid in
                  full.

                                    ARTICLE 3
                                    Expenses

         3.1) Expenses. During the term of this Agreement, Executive shall be
entitled to prompt reimbursement by the Company for all reasonable, ordinary and
necessary travel, entertainment and other business related expenses incurred by
Executive (in accordance with the policies and procedures established by the
Company from time to time) in the performance of his duties and responsibilities
under this Agreement; provided, however, that Executive shall properly account
for such expenses in accordance with federal, state and local tax requirements
and the Company's policies and procedures.

                                    ARTICLE 4
                                    Benefits

         4.1) Vacations; Holidays. Executive shall be entitled to two weeks paid
vacation during his first Employment Year, three weeks during his second
Employment Year and four weeks for succeeding Employment Years, plus all
holidays in accordance with the Company's policies in effect from time to time.
Executive shall not be entitled to carry unused vacation forward from one
Employment Year to the next. Executive shall not be entitled to compensation in
any form in lieu of use of vacation and/or holiday time off.

         4.2)     Compensation During Sickness or Disability.

         (a)      Subject to the remaining provisions of this Paragraph 4.2,
                  Executive shall be entitled to receive the monthly portion of
                  Executive's annual base salary and bonus in accordance with
                  Article 2 hereof for up to ten business days for absences for
                  physical or mental illness or injury during any Employment
                  Year which do not give rise to a determination of Executive's
                  disability pursuant to Paragraph 4.2(b) below.

         (b)      As attendance on the job is agreed by Executive and Company to
                  be an essential function of Executive's position, the parties
                  further agree that in the event of a prolonged absence as
                  defined below the parties agree to the disability payments to
                  Executive as stated in this subparagraph. Subject to Paragraph
                  4.2(j), if, during any Employment Year, Executive is absent
                  from Executive's employment for more than ten (10) business
                  days, plus that number of unused vacation days which Executive
                  may also determine to utilize for absences by reason of
                  physical or mental illness or injury, at any one time or more
                  than forty (40) business days in total, by reason of physical
                  or mental illness or injury, as determined by an examining
                  physician or mental health professional acceptable to the
                  Company, or in the event any other accident or occurrence
                  gives rise to the likelihood of Executive's absence for more
                  than the period of time specified above for reason of physical
                  or mental illness or injury, as determined by the Company or
                  an examining physician or mental health professional
                  acceptable to the Company, Executive shall be deemed disabled
                  for the purposes hereof. In such event, Executive shall be
                  entitled to receive his bonus earned to the date of
                  disability. In addition, Executive shall be entitled to
                  receive fifty percent (50%) of his base salary under Article
                  2, continued payment by the Company of Executive's share of
                  health, life and disability insurance premiums (to the extent
                  such benefits are offered by the Company to its executive
                  employees and subject to the conditions or limitations of such
                  insurance plans) during the first 90 calendar days from the
                  date such disability is determined to have occurred, and,
                  during such period, the Company may discontinue all other
                  payments to or on behalf of Executive under this Agreement.
                  After such 90 calendar day period, the Company shall terminate
                  all payments to Executive. Notwithstanding anything herein to
                  the contrary, such 90 calendar day period shall begin to run
                  from the date such disability is determined to have occurred,
                  only after Executive has utilized all days to which Executive
                  is entitled and which Executive determines to use under
                  Paragraphs 4.1 and 4.2(a).

         (c)      If prior to any termination of Executive's employment under
                  this Paragraph 4.2 Executive is able to resume performance of
                  his duties under this Agreement, and if within ninety (90)
                  days of the resumption of such duties Executive is again
                  absent from his employment by reason of physical or mental
                  illness or injury such subsequent disability period shall be
                  deemed to be a continuation of the immediately preceding
                  disability period, and the disability payments made by the
                  Company to Executive shall be made only for the remainder, if
                  any, of the ninety (90) calendar day income continuation
                  period provided for above, and in no event shall disability
                  payments hereunder be made for a period or periods aggregating
                  more than ninety (90) calendar days in any 12-month period.

         (d)      Any disability compensation payable under this Article 4 shall
                  be reduced by:

                  (i)      any amount which is paid to Executive under any
                           private disability benefit plan or arrangement to
                           which the Company contributes or has contributed;

                  (ii)     any benefits paid or payable to Executive on account
                           of the disability of Executive under any worker's
                           compensation law, occupational disease law, or
                           similar legislation of any state or of the federal
                           government;

                  (iii)    50% of the amount of any related benefit which
                           Executive would be entitled to receive under the
                           Federal Social Security Act as in effect at the time
                           the payment hereunder is made; and

                  (iv)     any benefits paid or payable to Executive under any
                           law of any state or of the federal government now in
                           force or hereafter enacted as compensation, wages or
                           benefits in lieu of wages on account of disability.

         (e)      Subject to a determination by the Company that Executive is
                  capable of returning to part or full-time employment, the
                  determination of the Company being conclusive if made with the
                  advice of a competent physician or mental health professional
                  selected by it, Executive may return to part-time or full-time
                  employment at any time prior to any termination of Executive's
                  employment under this Paragraph 4.2. Following Executive's
                  return to employment:

                  (i)      if Executive returns to full-time employment, his
                           compensation shall be determined as though Executive
                           had not been disabled; or

                  (ii)     if Executive returns to part-time employment,
                           Executive shall be entitled to a reasonable amount of
                           compensation for Executive's services rendered to the
                           Company as determined by a reasonable standard to be
                           set by the Company's Board of Directors.

         (f)      If Executive's employment is terminated, except for the
                  reasons stated in subparagraph (a), (b), (c)(iv) or (v), or
                  (d) of Paragraph 5.1 hereof, while the Company is making
                  disability payments to Executive, Executive shall be entitled
                  to receive the disability payments to which Executive would
                  otherwise be entitled pursuant to the provisions of this
                  Paragraph 4.2.

         (g)      The Company shall comply with all applicable state and federal
                  laws relating to the disability of an employee, including laws
                  regarding reasonable accommodation requirements and laws
                  governing the granting of medical leaves of absence.

         4.3) Life and Health Insurance; Other Benefits. During Executive's
employment, the Company shall provide such benefits to Executive as the Company
provides for its executive officers from time to time, provided that the Company
may exclude Executive from participation in any 401(k) plan which the Company
implements to the extent deemed advisable to ensure the continued qualification
of such plan under applicable tax laws and in lieu thereof compensate Executive
appropriately to make up for his exclusion. Nothing in this Paragraph 4.3 shall
be construed to require the Company to provide or continue to provide Executive
with any benefits, nor shall Company be prohibited from cancelling benefits
which it determines to provide or requiring co-payments respecting such benefits
at any time.

                                    ARTICLE 5
                                   Termination

         5.1) Events of Termination. Executive's employment hereunder:

         (a)      May be terminated by mutual written agreement of the parties.

         (b)      Shall terminate immediately upon the death of Executive.

         (c)      May be terminated by the Company upon written notice to
                  Executive for "Cause", which shall mean the following:

                  (i)      Material failure of Executive to (a) faithfully,
                           diligently or competently perform the material
                           duties, requirements and responsibilities of his
                           employment as established pursuant to this Agreement,
                           or (b) take reasonable direction consistent with the
                           position for which he has been employed as described
                           in Article 1 from the Chief Executive Officer or his
                           designee; or

                  (ii)     Failure of Executive to materially comply with the
                           reasonable policies, regulations and directives of
                           the Company as in effect from time to time; or

                  (iii)    Any act or omission on the part of Executive which
                           constitutes a material failure to comply with
                           material provisions of this Agreement; or

                  (iv)     Any act or omission on the part of Executive which is
                           clearly and materially harmful to the reputation or
                           business of the Company, including, but not limited
                           to, conduct which is inconsistent with federal and
                           state laws respecting harassment of, or
                           discrimination against, one or more of the Company's
                           employees; or

                  (v)      Conviction of Executive of, or a guilty or nolo
                           contendere plea by Executive with respect to, any
                           crime punishable as a felony; or any bar against
                           Executive from serving as a director, officer or
                           employee of any firm the securities of which trade
                           publicly.

         (d)      Shall terminate in accordance with the provisions of Paragraph
                  4.2(b) hereof. Nothing in Paragraph 4.2(b) hereof or in this
                  Paragraph 5.1(d) shall limit the right of either party to
                  terminate Executive's employment under any other subparagraph
                  of Paragraph 5.1; provided, however, that if Executive is
                  receiving disability payments under Paragraph 4.2(b) the
                  Company may not terminate this Agreement under Paragraphs
                  5.1(c)(i) or (g).

         (e)      Shall terminate upon Executive's reaching the normal
                  retirement date established by the Company for senior
                  management employees of the Company, but in no event earlier
                  than the compulsory retirement age permitted under federal or
                  similar law for senior management employees.

         (f)      May be terminated by the Company, for any or no reason, on 60
                  days' written notice to Executive; provided that if at the
                  time of such termination "Cause" exists and the written notice
                  specified in subparagraph (c) above is given, then such
                  termination by the Company shall be considered to be pursuant
                  to subparagraph (c) above.

         (g)      May be terminated by Executive, for any or no reason, on 60
                  days' written notice to the Company.

         5.2) Compensation Upon Termination of Executive's Employment. In the
event that Executive's employment with the Company terminates, the following
provisions shall govern as applicable:

         (a)      If termination occurs pursuant to Paragraph 5.1(a) (by mutual
                  written agreement) the agreement of the parties shall control.

         (b)      If termination occurs pursuant to Paragraph 5.1(b) (for
                  death), all benefits shall terminate as of the termination
                  date, and base salary and bonus shall terminate as provided in
                  Paragraph 2.2.

         (c)      If termination occurs pursuant to Paragraph 5.1(c) (for Cause)
                  or (g) (resign for any or no reason), all benefits shall
                  terminate as of the termination date, and base salary and any
                  earned bonus shall be paid to the date of termination as
                  provided in Paragraph 2.2.

         (d)      If termination occurs pursuant to Paragraph 5.1(d)
                  (disability), the provisions of Paragraph 4.2 shall govern the
                  termination of benefits, base salary and bonus.

         (e)      If termination occurs pursuant to Paragraph 5.1(e)
                  (retirement), the provisions of Paragraph 5.2(b) shall govern
                  the termination of benefits, base salary and bonus.

         (f)      If termination occurs pursuant to 5.1(f) (by the Company
                  without Cause) then Executive's base salary and any earned
                  bonus shall be paid to the date of termination as provided in
                  Paragraph 2.2.

         (g)      All payments made to Executive under this Paragraph 5.2 shall
                  be reduced by amounts (i) required to be withheld in
                  accordance with federal, state and local laws and regulations
                  in effect at the time of payment, or (ii) owed to the Company
                  by Executive for any amounts advanced, loaned or
                  misappropriated.

         5.3) Continuation of Performance of Services After Notice of
Termination. In the event of termination of employment of Executive under the
notice provisions of Section 5.1(c) or during any period following a
notification of termination of Executive's employment by Company, Company may,
in its sole discretion, determine the date on which Executive is to discontinue
performing services for Company, which date may be any date after the notice is
given and prior to the actual date of termination of Executive's employment.
Nothing in this subparagraph shall be construed to prohibit Company from
requiring that Executive continue to perform Executive's duties under this
Agreement prior to the actual date of termination of Executive's employment,
subject to the rights of Executive under Section 4.1 of this Agreement. After
any notice of termination Company may also determine whether any continuing
services on the part of Executive shall be performed on or off the Company's
premises. In any event during any period after notice of termination of
Executive's employment and prior to the actual termination of Executive's
employment Executive shall be available to Company for consultation, and so
shall consult with Company, as to matters in which Executive was involved during
his employment with Company.

         5.4) Return of the Company Property. In the event of termination of
Executive's employment all corporate documents, records, files, credit cards,
computer disks and tapes, computer access card, codes and keys, file access
codes and keys, building and office access cards, codes and keys, materials,
equipment and other property of the Company which is in Executive's possession
shall be returned to the Company at its principal business office on the date of
termination of Executive's employment, or within five days thereafter if
termination occurs without notice. Executive may copy, at Executive's expense,
documents, records, materials and information of the Company only with the
Company's express, written permission.

                                    ARTICLE 6
                           Inventions, Plans and Ideas

         6.1) Definition. "Inventions, plans and ideas" as used in this Article
6 mean any discoveries, ideas, plans and improvements (whether or not they are
in writing or reduced to writing or embodied solely in practices of the Company)
or works of authorship (whether or not they are or can be patented or
copyrighted) that Executive makes, authors, or conceives (either alone or with
others) and that:

         (a)      concern the Company's business or the Company's research or
                  development or planning that can be demonstrated to relate to
                  the Company's then-current business or any planned business
                  discussed with the Board of Directors which the Company is
                  actively exploring; or

         (b)      result from and relate to any work Executive performs for the
                  Company which work also meets the criteria of subparagraph
                  (a); or

         (c)      use the Company's trade secret information.

         6.2) Property of the Company. Executive agrees that all "inventions,
plans and ideas" he makes during the term of this Agreement will be the
Company's sole and exclusive property. Executive will, with respect to any such
"invention, plan or idea":

         (a)      keep current, accurate and complete records which will belong
                  to the Company and be kept and stored on the Company's
                  premises while Executive is employed by the Company.

         (b)      promptly and fully disclose the existence and describe the
                  nature of the invention, plan or idea to the Company in
                  writing (upon request).

         (c)      assign, and Executive hereby does assign, to the Company all
                  of his rights to any such "invention, plan or idea", and any
                  applications which he may make for patents, copyrights,
                  trademarks or service marks in any country.

         (d)      acknowledge and deliver promptly to the Company any written
                  instruments, and perform any other acts necessary in the
                  Company's reasonable opinion, to preserve property rights in
                  any invention, plan or idea against forfeiture, abandonment or
                  loss, and to obtain and maintain letters patent and/or
                  copyrights and/or marks on any invention, plan or idea and to
                  vest the entire right and title to such "invention, plan or
                  idea" in the Company.

NOTICE: Pursuant to Minnesota Statutes ss. 181.78, Executive is hereby notified
that this Article 6 does not apply to any invention for which no equipment,
supplies, facility, or trade secret information of the Company was used and
which was developed entirely on Executive's own time, and (1) which does not
relate (a) directly to the business of the Company or (b) to the Company's
actual or demonstrably anticipated research or development, or (2) which does
not result from any work performed by the employee for the Company.

         6.3) Executive Claims. Executive does not have, and will not assert,
any claims to or rights under any "inventions, plans or ideas" as having been
made, conceived, offered or acquired by Executive prior to his employment by the
Company. Further, and without limiting the foregoing, Executive has contributed
and assigned, and hereby does contribute and assign, to the Company all
"inventions, plans and ideas" within the meaning of this Article 6.

                                    ARTICLE 7
                            Confidential Information

         7.1) Definition. "Confidential Information" as used in this Article 7
means information (a) that is not generally known to the public and (b) that is
proprietary to the Company or that the Company is obligated to treat as
proprietary. Confidential Information shall include, without limitation:

         (1)      trade secret information about the Company and its products
                  and services; and

         (2)      Any information that the Company reasonably considers or
                  treats as Confidential Information, or that Executive actually
                  knows or reasonably should know that the Company considers or
                  treats as Confidential Information (whether Executive or
                  others originated it and regardless of how Executive obtained
                  it).

         7.2) Use Prohibited. Except as required in his duties to the Company,
Executive will never knowingly, either during or after his employment by the
Company, use or disclose Confidential Information to any person not authorized
by the Company to receive it, excluding Confidential Information (a) which
becomes publicly available through a source other than Executive, (b) which is
made public by the Company, (c) which is received by Executive after termination
of this Agreement from a third party who obtained the information on a
non-confidential basis from the Company, (d) for which disclosure thereof the
Company has consented to in writing, or (e) that Executive is compelled to
disclose in any judicial or administrative proceeding. Promptly upon termination
of Executive's employment with the Company, Executive will turn over to the
Company all records, documents, materials and any compositions, articles,
devices, apparatus and other items that disclose, describe or embody
Confidential Information, including all copies and reproductions thereof, in
Executive's possession, regardless of who prepared them.

         7.3) Violation by Executive. If it is determined by an arbitration
proceeding or a final, non-appealable judgment of a court of law or equity that
Executive has breached Article 7 with regard to material information the Company
shall be relieved of further severance payments to Executive, and Executive
shall repay to the Company all severance payments previously received.

                                    ARTICLE 8
                        Competitive Activities Prohibited

         8.1) Prohibition; Duration. Executive agrees that, during his
employment with the Company, Executive will not alone, or in any capacity with
another firm, individual or person:

         (a)      directly or indirectly, whether as an employee, officer,
                  director, shareholder, (provided, however, that passive
                  investments in publicly traded securities not exceeding five
                  percent of the issuer's capital stock shall be permitted),
                  partner, agent, owner, representative, consultant or
                  otherwise, engage in any activity, in any state or foreign
                  country, that competes with the Company's products or services
                  produced, sold or rendered in the ordinary course of the
                  Company's business as of the date of Executive's termination,
                  or products or services demonstrated to have been formally
                  planned and approved before the date of Executive's
                  termination for production or sale;

         (b)      in any way interfere or attempt to interfere with the
                  Company's relationships with any of its then-current
                  customers, suppliers, vendors or investors; or

         (c)      employ or attempt to employ any of the Company's employees, or
                  the employees of any enterprise managed or owned by the
                  Company on behalf of any other entity competing with the
                  Company.

         All of the above activities are "Competitive Activities".

         8.2) Exception. Nothing in Paragraph 8.1 shall restrict the Executive's
employment by, or association with, an entity, venture or enterprise which
engages in a business with a product or service competitive with any product or
service, or planned product or service per Paragraph 8.1(a), of the Company so
long as Executive's employment or association with such entity, venture or
enterprise is limited to work which does not directly involve products or
services which compete with any product or service offered, or planned to be
offered per Paragraph 8.1(a), by the Company at the date of Executive's
termination.

         8.3) Violation by Executive. If it is determined by an arbitration
proceeding or a final non-appealable judgment of a court of law or equity that
Executive has breached Article 8 in a material manner the Company shall be
relieved of further severance payments to Executive, and Executive shall repay
to the Company all severance payments previously received.

         8.4) Notice to New Employer. Executive will, prior to accepting
employment with any new employer, inform that employer of this Agreement and
provide that employer with a copy of Article 8 of this Agreement.

                                    ARTICLE 9
                            Certain Company Remedies

         9.1) Certain Company Remedies. The parties acknowledge that the Company
will suffer irreparable harm if the Executive breaches Paragraph 5.3 and/or
Articles 6, 7 and/or 8 of this Agreement, either during or after its term.
Accordingly, the Company shall be entitled to any right or remedy it may have,
under this Agreement or otherwise, at law or equity, including but not limited
to, an injunction, enjoining or restraining Executive from any violation of
Paragraph 5.3 and/or Articles 6, 7 and/or 8 of this Agreement.

         9.2) Payment of Fees and Expenses. If either party initiates or becomes
a party to a formal proceeding in law or equity, or under arbitration, involving
this Agreement, and if either party obtains a substantial portion of the relief
requested by that party (the "prevailing party"), then the non-prevailing party
shall pay all of its and the prevailing party's reasonable costs and expenses,
including reasonable attorneys' fees and expenses, incurred with respect to such
proceeding. If neither party obtains a substantial portion of the relief
requested each shall bear its/his own expenses. In the event Executive is
terminated pursuant to Paragraph 5.1 (c) and determines to challenge the
Company's determination of "Cause", the Company and Executive shall each bear
its/his own expenses in connection with any proceeding initiated by Executive
with respect to the determination as to "Cause".

                                   ARTICLE 10
                                 Indemnification

         10.1) As to acts or omissions of Executive which are within the scope
of Executive's authority as an officer and/or director of the Company and/or any
affiliate of the Company, the Company shall indemnify Executive, and his legal
representatives and heirs to the maximum extent permitted by Minnesota law.

                                   ARTICLE 11
                                  Miscellaneous

         11.1) Successors and Assigns. This Agreement is binding on and inures
to the benefit of the Company, and its successors and assigns. the Company
agrees that the Company shall be deemed to have materially breached this
Agreement if its successor or assign does not assume all of the Company's
material obligations under this Agreement. The rights and obligations of
Executive under this Agreement are personal and may not be assigned or
transferred without the express written consent of the Company.

         11.2) Modification. This Agreement supersedes all prior agreements and
understandings between the parties. This Agreement may be modified or amended
only by a writing signed by the Company and Executive.

         11.3) Waivers. No failure or delay by either the Company or Executive
in exercising any right or remedy under this Agreement shall be deemed a waiver
of any provision of this Agreement. Nor shall any single or partial exercise by
either the Company or Executive of any right or remedy under this Agreement
preclude either from otherwise or further exercising rights or remedies granted
under this Agreement.

         11.4) Notices. Any and all notices referred to herein shall be deemed
properly given only if in writing and delivered personally or sent postage
prepaid, by certified mail, return receipt requested, as follows:

         (a)      To the Company, to the attention of the Company's Chief
                  Executive Officer, at its office set forth on page 1 of this
                  Agreement or at such other address as the Company may specify
                  in writing to Executive, with a copy to each member of the
                  Company's Board of Directors, and to Fredrikson & Byron, P.A.,
                  1100 International Centre, 900 Second Avenue South,
                  Minneapolis, Minnesota 55402, Attention: John H. Stout.

         (b)      To Executive at his home address as it then appears on the
                  records of the Company, it being the duty of the Executive to
                  keep the Company informed of his current home address at all
                  times.

The date on which notice to the Company or Executive shall be deemed to have
been given if mailed as provided above shall be the date on the certified mail
return receipt. Personal delivery to Executive shall be deemed to have occurred
on the date notice was delivered to Executive personally or deposited in a mail
box or slot or left with security or administrative personnel, at Executive's
residence by a representative of the Company or any messenger or delivery
service.

         11.5) Action by Board of Directors. Any action required by the
Company's Board of Directors under this Agreement may be taken by majority vote
of a duly authorized committee having authority over the matter in question or
by a majority of the remaining members of the Board of Directors, not counting
Executive, then serving.

         11.6) Judicial Review; Severability. In the event that a court of
competent jurisdiction determines that any of the provisions of this Agreement
are unreasonable, it may limit such provision to the extent it deems reasonable,
without declaring the provision or this Agreement invalid in its entirety. This
provision shall not be construed as an admission by the Company, but is only
included to provide the Company with the maximum possible protection for its
business, Confidential Information, inventions, trade secrets and data,
consistent with the right of the Executive to earn a livelihood subsequent to
the termination of his employment.

         To the extent any portion of any provision of this Agreement shall be
deemed invalid or unenforceable, it shall be considered deleted herefrom and the
remainder of such provision and the remainder of this Agreement shall be
unaffected and shall continue in full force and effect.

         The Company and Executive desire that this Agreement shall be given the
construction which renders its provisions valid and enforceable to the maximum
extent, not exceeding its express terms, permissible under applicable law.

         11.7) Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Minnesota.

         IN WITNESS WHEREOF, the Company and Executive have executed this
Agreement on July 15, 1996 to be effective as of the effective date set forth
above.

                                 CORVU CORPORATION ("the Company")

                                 By: /s/ Justin MacIntosy
                                     Justin MacIntosh, Chief Executive Officer

                                  /s/ David Carlson
                                 David Carlson ("Executive")

<PAGE>

July 20, 1998

Mr. David C. Carlson
18115 35th Ave N.
Plymouth, MN  55447

Dear David:

The following represents revisions to your employment agreement dated July 15,
1996 as previously discussed:

Salary - This confirms that your base salary is currently $100,000 per year
through and including July 15, 1999,

Quarterly Bonus - 25% based on attaining quarterly business plan profits and
personal performance as reviewed with the President/CEO of CorVu Corporation.

Please sign in the space below indicating your acceptance of the above.

Thanks for your continued efforts and, here's to a successful 1999 and beyond !

Kindest regards,

 /s/ Justin M. MacIntosh
Justin M. MacIntosh
President and CEO

Agreed and Accepted

 /s/ David C. Carlson                      8/21/98
David C. Carlson                            Date
Chief Financial Officer

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