Document:

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                            EXECUTIVE EMPLOYMENT AGREEMENT

       This Executive Employment Agreement (this "Agreement") is made and
entered into as of July 14, 1999, by and among Viking Merger Sub, Inc., a
Minnesota corporation (which, together with its Subsidiaries (as herein defined)
is called the "Company"), and Rick Atterbury ("Employee").

                                     WITNESSETH:

       WHEREAS, Employee is currently employed by the Company;

       WHEREAS, the Company desires to continue to employ Employee upon the
terms set forth herein;

       WHEREAS, Employee desires to continue to be employed by the Company and
to memorialize the terms and conditions of such employment;

       WHEREAS, the Company is entering into this Agreement by and on behalf of
itself and each trade or business in which the Company's direct or indirect
ownership of value or voting power is at least 50% (the "Subsidiaries");

       NOW THEREFORE, Employee and the Company, in consideration of the
agreements, covenants and conditions herein, hereby agree as follows:

       SECTION 1.    BASIC EMPLOYMENT PROVISIONS.

       (a)    EMPLOYMENT.  Effective upon the consummation of the merger of the
Company with Merrill Corporation pursuant to the Merger Agreement (the "Merger
Agreement") dated as of July 14, 1999 between the Company and Merrill
Corporation (the "Effective Time"), the Company shall continue to employ
Employee in the position in which Employee is currently employed (hereinafter
referred to as the "Employment") and Employee agrees to be so employed by the
Company, all on the terms and conditions set forth herein.  The Employment shall
continue from the date hereof until the Termination Date (as hereinafter
defined).

       (b)    DUTIES.  Employee shall be subject to the direction of the Board
of Directors of the Company (the "Board") and shall have those duties and
responsibilities which are assigned to Employee by the Board consistent with
Employee's position.  The parties expressly acknowledge that Employee shall
devote Employee's business time and attention to the Company's businesses as is
reasonably necessary to discharge Employee's supervisory management
responsibilities hereunder.  Employee agrees to perform faithfully the duties
assigned to Employee to the best of Employee's ability.

       (c)    CERTAIN DEFINITIONS.

              (i)    FISCAL YEAR.  Each reference in this Agreement to "Fiscal
       Year" means a fiscal year of the Company, and each reference to "Fiscal"
       followed by a calendar year

<PAGE>

       means the Fiscal Year ending in that calendar year (e.g., "Fiscal 2000"
       means the Company's Fiscal Year ending January 31, 2000).

              (ii)   TERMINATION DATE.  With regard to any termination of the
       Employment, "Termination Date" means the last day on which Employee was
       employed by the Company.

              (iii)  PERSON.  "Person" shall have the meaning provided in
       Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as
       amended, or any successor thereto (the "Exchange Act").

              (iv)   CODE.  "Code" means the Internal Revenue Code of 1986, as
       amended, or any successor thereto.

       SECTION 2.    COMPENSATION.

       (a)    SALARY.  At all times while Employee is employed by the Company,
the Company shall pay to Employee a salary as base compensation for the services
to be rendered by Employee hereunder.  The initial amount of such salary shall
be equal to the annual base salary paid by the Company to Employee as of the
date hereof.  Such salary shall be reviewed no less frequently than annually by
the Board and may be increased upon the approval of the Board in its sole
discretion.  Such salary shall accrue and be payable in accordance with the
payroll practices of the Company in effect from time to time.  All such payments
shall be subject to deduction and withholding as required by applicable law.

       (b)    BONUS.  At all times while Employee is employed by the Company,
Employee shall participate in an annual bonus program (the "Annual Bonus Plan")
substantially similar to the bonus program in which Employee is participating
with respect to Fiscal 2000 and shall be entitled to a target bonus under such
Annual Bonus Plan not less than the bonus that would be paid for Fiscal 2000
under the annual bonus plan of the Company currently in effect for Employee,
assuming the transactions contemplated in the Merger Agreement did not occur and
Company earnings for Fiscal 2000 were $1.82 per share.  Performance objectives
under such Annual Bonus Plan shall be established by the Board, based on
achievement of projected financial results heretofore provided by management to
the DLJ Entities (as defined in the Shareholders Agreement).

       (c)    BENEFITS.  At all times while Employee is employed by the Company,
Employee shall be entitled to participate in all such employee benefit plans,
programs and arrangements as are customarily accorded the executives of the
Company, including without limitation tax qualified profit sharing and
retirement plans, group life, hospitalization and other insurance and vacations,
in each case on a basis no less favorable to Employee than as of the date hereof
(but excluding stock-option and other equity-based compensation plans which the
parties acknowledge are being provided to Employee under separate agreements).

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       SECTION 3.    TERMINATION.

       (a)    DEATH OR DISABILITY.  The Employment shall terminate automatically
upon the death or total disability of Employee.  For purposes of this Agreement,
"total disability" shall be deemed to have occurred if Employee shall have been
unable to perform Employee's duties due to mental or physical incapacity for a
period of six (6) consecutive months.

       (b)    CAUSE.  By action of the Board, the Company may terminate the
Employment for Cause.  For purposes of this Agreement, "Cause" shall be deemed
to be (i) the Employee's willful refusal substantially to perform his duties
(other than as a result of total or partial incapacity due to physical or mental
illness); (ii) the Employee's conviction of a felony arising from any act of
fraud, embezzlement, or willful dishonesty by the Employee in relation to the
business or affairs of the Company; (iii) any other felonious conduct on the
part of the Employee that is materially detrimental to the best interests of the
Company; (iv) the Employee's being repeatedly under the influence of illegal
drugs or alcohol while performing his duties; or (v) any other willful act which
is materially injurious to the financial condition or business reputation of the
Company; PROVIDED that no conduct described in clauses (i), (iii) or (v) hereof
shall constitute Cause unless such conduct was undertaken in bad faith.

       (c)    WITHOUT CAUSE.  By action of the Board, the Company may terminate
the Employment without Cause.

       (d)    INVOLUNTARY TERMINATION.  "Involuntary Termination" shall mean
(i) any termination by the Company that is not for Cause and (ii) any
resignation by Employee if such resignation occurs within 60 days following the
occurrence of any Change in Employment Terms (as hereinafter defined).

       (e)    CHANGE IN EMPLOYMENT TERMS.  "Change in Employment Terms" shall
mean (i) the assignment to Employee of duties that are materially inconsistent
with the Employees's position or with his authority, duties or responsibilities
as of the date hereof, or any other action by the Company which results in a
material diminution or material adverse change in such position, authority,
duties or responsibilities; (ii) any reduction of Employee's base salary;
(iii) any reduction of Employee's target bonus under the Annual Bonus Plan;
(iv) any relocation of employee's principal workplace to a location more than 30
miles from the current site of such workplace; (v) any substantial reduction in
the benefits and perquisites provided, in the aggregate, to Employee; and (vi)
failure by the Company to carry out its obligation under Section 18;  PROVIDED,
HOWEVER, that none of the foregoing shall constitute a Change in Employment
Terms unless Employee objects thereto by giving notice to the Company within 30
days after Employee becomes aware of such change and the Company fails to
correct the same within 30 days following receipt of such notice, in which case
a Change in Employment Terms shall be deemed to have occurred on the 31st day
following the Company's receipt of such notice.

       SECTION 4.    COMPENSATION FOLLOWING TERMINATION.

       (a)    DEATH OR DISABILITY.  If the Employment is terminated pursuant to
Section 3(a) above (relating to death or disability), this Agreement shall
terminate, and no further

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compensation shall be payable to Employee, except that the Company shall pay to
Employee or Employee's estate, as applicable, (in addition to any other benefits
to which Employee is or may become entitled under the terms of any benefit plan)
an amount equal to the sum of

              (i)    any unpaid salary accrued through the Termination Date,
       plus

              (ii)   an amount equal to the Average Previous Bonus (as
       hereinafter defined) multiplied by a fraction, the numerator of which is
       the number of days of the then-current Fiscal Year that have elapsed
       prior to the Termination Date and the denominator of which is 365.

       (b)    TERMINATION FOR CAUSE OR VOLUNTARY TERMINATION.  If the Employment
is terminated by the Company for Cause or voluntarily by Employee (without any
Involuntary Termination), then no further compensation or benefits shall be paid
to Employee after the Termination Date, but Employee shall be entitled to
receive benefits to which Employee is or may become entitled pursuant to any
benefit plan plus any unpaid salary accrued through the Termination Date.

       (c)    INVOLUNTARY TERMINATION.  If the Employment is terminated by any
Involuntary Termination, then the Company shall

              (i)    pay to Employee, within five business days after the
       Termination Date, a lump sum equal to 2.99 multiplied by Employee's
       annual base salary in effect on the Termination Date (or, if higher,
       multiplied by the highest annual base salary in effect during the
       one-year period ending on the Termination Date);

              (ii)   pay to Employee, within five business days after the
       Termination Date, a lump sum equal to 2.99 multiplied by the Average
       Previous Bonus;

              (iii)  continue to provide to Employee all insurance and other
       benefits that Employee would have received had Employee remained employed
       during three-year period ending on the third anniversary of the
       Termination Date; and

              (iv)   cause Employee's entire account balance and all accrued
       benefits under the Company's Supplemental Executive Retirement Plan and
       those under each other plan or arrangement providing similar benefits
       (collectively, the "SERP") to become fully vested and nonforfeitable
       effective as of the Termination Date (and at all times thereafter), and
       the Company will cause each distribution under the SERP to be made
       without regard to any provision of the SERP that permits a distribution
       to be deferred to ensure that no part thereof is nondeductible under Code
       Section 162(m).

       (d)    AVERAGE PREVIOUS BONUS.  With respect to any Termination Date, the
"Average Previous Bonus" shall be the average of the bonuses received by
Employee for the three consecutive Fiscal Years of the Company ended immediately
prior to the Termination Date (e.g., if the Termination Date were June 30, 2000,
and Employee had received a bonus of

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$60,000 for Fiscal 1997, $70,000 for Fiscal 1998 and $80,000 for Fiscal 1999,
then the Average Previous Bonus would be $70,000).

       (e)    Gross-Up Amount.

              (i)    Following any payment required under this Section 4 in
       connection with an event that could be treated as described in Code
       Section 280G(b)(2)(A)(i), the Company will cause its independent auditor
       promptly to review, at the Company's sole expense, the applicability of
       Code Section 4999 to all payments and distributions to (or for the
       benefit of) Employee, whether paid or payable or distributed or
       distributable pursuant to the terms of this Agreement, any benefit plan
       or otherwise (the "Total Payments").  If such auditor determines that the
       Total Payments result in an excise tax imposed by Code Section 4999 or
       any comparable federal, state or local law or any interest or penalties
       with respect to such excise tax (such excise tax, together with any such
       interest and penalties, being the "Excise Tax"), then the Company will
       pay to Employee, in cash, the Gross-Up Amount within 10 days after such
       determination.

              (ii)   The Gross-Up Amount shall be that dollar amount such that,
       after payment by Employee of all Excise Tax plus all other taxes,
       interest and penalties imposed on the Gross-Up Amount, Employee would
       retain an amount of the Gross-Up Amount equal to the Excise Tax imposed
       upon the Total Payments.  For purposes of the foregoing determination,
       Employee's tax rate will be deemed to be the highest statutory marginal
       state and federal tax rate (on a combined basis) then in effect.  If no
       determination by the Company's auditors is made prior to the time when
       Employee is required to file a tax return reflecting the Total Payments
       (without any extension), then the Company shall pay to Employee a
       Gross-Up Amount calculated on the basis of the Excise Tax reported in
       such tax return, within 10 days after the later of the date on which such
       tax return is filed or the date on which a copy thereof is provided to
       the Company.  In all events, if any tax authority determines that a
       greater Excise Tax should be imposed upon the Total Payments than so paid
       to Employee by the Company, then the Company shall pay to Employee the
       full Gross-Up Amount calculated on the basis of the amount of Excise Tax
       determined to be payable by such tax authority, within 10 days after
       Employee notifies the Company of such determination.  If any tax
       authority finally determines that a lesser Excise Tax should be imposed
       upon the Total Payments than that which previously served as the basis
       for Gross-Up Amounts paid to Employee, then Employee shall repay to the
       Company such difference, together with any other amounts previously
       included in the Gross-Up amounts with respect to such difference.  If any
       other benefit plan or other plan, policy or practice of the Company or
       any other agreement (an "Other Arrangement") specifically provides that
       benefits thereunder will be reduced or limited so that such benefits or
       the Total Payments will not result in the imposition of an Excise Tax
       pursuant to Code Section 4999, the reduction or limitation will apply, to
       the extent provided in the Other Arrangement, solely to the benefits
       provided pursuant to the Other Arrangement as if the benefits under the
       Other Arrangement constituted the entire Total Payments, and such
       reduction or limitation will not otherwise reduce or limit the actual
       Total Payments.

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       SECTION 5.    EXPENSE REIMBURSEMENT AND INDEMNIFICATION.  Upon the
submission of properly documented expense account reports, the Company shall
reimburse Employee for all reasonable business-related travel and entertainment
expenses incurred by Employee in the course of Employment.  At all times while
Employee is employed by the Company, and at all times following the Termination
Date, the Company shall continue to PROVIDE to Employee indemnification,
elimination of liability, director's and officer's liability insurance and other
protection from personal liability, each of which shall not be, at any time,
less than (a) that in effect for Employee as of May 31, 1999 or (b) if greater,
that in effect at such time for the member of the Board then having the most
protection.

       SECTION 6.    Assignability; Binding Nature.  This Agreement shall be
binding and inure to the benefit of the parties, and their respective
successors, heirs (in the case of Employee) and assigns.  No obligations of the
Company under this Agreement may be assigned or transferred by the Company,
except that such obligations shall be assigned or transferred (as described
below) pursuant to a merger or consolidation of the Company in which the Company
is not the continuing entity, or the sale or liquidation of all or substantially
all of the assets of the Company, if the assignee or transferee is the surviving
entity or successor to all or substantially all of the assets of the Company and
such assignee or transferee assumes by written contract, and agrees to perform,
all liabilities, obligations and duties of the Company under this Agreement (an
"Assuming Entity").  As used in this Section 6, "Company" shall mean the Company
as hereinbefore defined and any Assuming Entity which assumes and agrees to
perform this Agreement.

       SECTION 7.    CONFIDENTIAL INFORMATION.

       (a)    NON-DISCLOSURE.  While employed hereunder or at any time
thereafter, irrespective of the time, manner or cause of termination of
Employment, Employee will not directly or indirectly reveal, divulge, disclose
or communicate to any person or entity, other than authorized officers,
directors and employees of the Company, in any manner whatsoever, any
Confidential Information (as hereinafter defined) of the Company without the
prior written consent of the Board; PROVIDED, HOWEVER, that this provision shall
not prohibit a disclosure of Confidential Information made in good faith in the
ordinary course of the Company's business.

       (b)    DEFINITION.  As used herein, "Confidential Information" means
information disclosed to or known by Employee as a direct or indirect
consequence of the Employment about the Company or its businesses, products and
practices which information is not generally known in the business in which the
Company is or may be engaged.  However, Confidential Information shall not
include under any circumstances any information which is (i) available to the
public from an originating source other than Employee, (ii) released in writing
by the Company to the public, (iii) required to be disclosed by Employee or the
Company pursuant to any court process or any government or agency or department
of any government, or (iv) the subject of a written waiver executed by the
Company for the benefit of Employee.

       (c)    RETURN OF PROPERTY.  Upon termination of the Employment, Employee
will surrender to the Company all materials in Employee's possession containing
Confidential

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Information, including without limitation, all lists, charts, schedules,
reports, financial statements, books and records of the Company, and all copies
thereof, and all other property belonging to the Company, provided Employee
shall be accorded reasonable access to such Confidential Information subsequent
to the Termination Date for any proper purpose as determined in the reasonable
judgment of the Company.

       SECTION 8.    AGREEMENT NOT TO COMPETE.   Employee hereby agrees that,
while Employee is employed by the Company and following the Termination Date,
throughout the Non-Compete Period, Employee shall not, either in Employee's own
behalf or as a partner, member, officer, director, employee, consultant,
advisor, agent or shareholder (other than as the holder of less than 5% of the
outstanding capital stock of any corporation with a class of equity security
registered under Section 12(b) or Section 12(g) of the Exchange Act) engage in,
invest in or render services to any person or entity engaged in any business in
which the Company is then engaged within any country.  For any Termination Date,
the "Non-Compete Period" shall commence on such Termination Date and shall end
on the first anniversary of such Termination Date (unless the Company has made
the payments referred to in Section 4(c), in which case the Non-Compete Period
shall end on the third anniversary of the Termination Date).

       SECTION 9.    AGREEMENT NOT TO SOLICIT EMPLOYEES.  Employee agrees that,
while Employee is employed hereunder and following the Termination Date,
throughout the Non-Compete Period, neither Employee nor any affiliate shall, on
behalf of any business engaged in a business competitive with the Company,
solicit or induce, or in any manner attempt to solicit or induce, any person
employed by the Company to terminate his or her employment with the Company (but
the foregoing shall not be construed to prohibit Employee, any affiliate or any
other person from hiring any person who applies for or otherwise seeks
employment in response to a general "help wanted" advertisement or other similar
non-individual solicitation).

       SECTION 10.   ENFORCEMENT OF RESTRICTIONS.

       (a)    Employee acknowledges that the restrictions imposed under Sections
8 and 9, in view of the nature of the businesses in which the Company is engaged
and Employee's position with the Company, are reasonable and necessary to
protect the legitimate interests of the Company.  However, Employee agrees that
if any of these restrictions is construed to be invalid or unenforceable, the
remainder of the restrictions shall not be affected, and if any restriction is
held to be unenforceable because of the area covered, the duration or the scope,
Employee agrees that the court making such determination shall have the power to
reduce the area and/or the duration, and/or limit the scope, and the restriction
shall then be enforceable in its reduced form.

       (b)    The Company and Employee intend that the restrictions set forth in
Sections 8 and 9 be observed and enforced for the full duration of the
applicable period described in those Sections, and the Company and Employee
agree that, if Employee violates these restrictions during such period, then the
Company shall be entitled to an injunction restraining such violation (in
addition to all other remedies the Company may have at law or in equity).

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       (c)    Employee acknowledges and accepts that the restrictions and
remedies in Sections 8 and 9 will apply without regard to the reason for
termination of the Employment and without regard to whether the Employment is
terminated by Employee or by the Company.

       SECTION 11.   NO MITIGATION OR OFFSET; INTEREST.   Employee shall have no
obligation to mitigate the amount of any payment or benefit that the Company
becomes obligated to provide under this Agreement by seeking other employment or
otherwise, and no such payment or benefit may be reduced, offset or subject to
recovery by the Company (whether by reference to any payment or benefit that
Employee may receive from other employment or otherwise).  The Company has no
right to offset any payment or benefit under this Agreement against any amount
owed or claimed to be owed to the Company (whether under this Agreement or
otherwise).  Any amount owed hereunder that is not paid when due shall bear
interest until paid at a rate equal to 2.0 percentage points in excess of the
prime rate in effect from time to time in Minneapolis at Norwest Bank Minnesota
(or any successor thereto).

       SECTION 12.   NO VIOLATION.   Each party hereby represents and warrants
to the other that such party's execution, delivery and performance of this
Agreement does not, with or without the giving of notice or the passage of time,
or both, conflict with, or result in a default, right to accelerate or loss of
rights under, any provision of any agreement or understanding to which such
party (or, to the best knowledge of such party or any of such party's
affiliates) is or may be bound.

       SECTION 13.   CAPTIONS.   The captions, headings and arrangements used in
this Agreement are for convenience only and do not in any way affect, limit or
amplify the provisions hereof.

       SECTION 14.   NOTICES.   All notices required or permitted to be given
hereunder shall be in writing and shall be deemed delivered by hand, by
facsimile (with confirming paper copy), by nationally recognized overnight
courier service or by United States mail, postage prepaid, registered or
certified, return receipt requested, in any case addressed to the party to whom
notice is being given at the specified address below (or at such other address
as such party may designate by notice):

       If to the Company:   Viking Merger Sub, Inc.
                            277 Park Avenue
                            New York, New York  10172
                            Attention: William F. Dawson, Jr.
                            Fax: (612) 892-7272

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                            and, after the Effective Time

                            Merrill Corporation
                            One Merrill Circle
                            St. Paul, MN 55108
                            Attention: General Counsel
                            Fax: (651) 649-1348

                            with a copy to:

                            Davis Polk & Wardwell
                            450 Lexington Avenue
                            New York, New York 10017
                            Attention: George R. Bason, Jr.
                            Fax: (212) 450-4800

       If to Employee:      Merrill Corporation
                            One Merrill Circle
                            St. Paul, MN 55108

                            with a copy to:
                            Faegre & Benson LLP
                            2200 Norwest Center
                            90 South Seventh Street
                            Minneapolis, Minnesota 55402-3901
                            Attention: William R. Busch, Jr.
                            Fax: (612) 336-3026

       SECTION 15.   INVALID PROVISIONS.   If any provision of this Agreement is
held to be illegal, invalid or unenforceable under present or future laws, such
provisions shall be fully severable, and this Agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part of this Agreement; the remaining provisions of this Agreement
shall remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance for this Agreement.  In
lieu of each such illegal, invalid or unenforceable provision, there shall be
added automatically as part of this Agreement a provision as similar in terms to
such illegal, invalid or unenforceable provision as may be possible and be
legal, valid and enforceable.

       SECTION 16.   AMENDMENTS.   This Agreement may be amended in whole or in
part only by an instrument in writing setting forth the particulars of such
amendment and duly executed by an officer of the Company and by Employee.

       SECTION 17.   WAIVER; THIRD PARTY BENEFICIARIES.  No delay or omission by
any party hereto to exercise any right or power hereunder shall impair such
right or power to be construed as a waiver thereof.  A waiver by any of the
parties hereto of any of the covenants to be

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performed by any other party or any breach thereof shall not be construed to be
a waiver of any succeeding breach thereof or of any other covenant herein
contained.  Except as otherwise expressly set forth herein, all remedies
provided for in this Agreement shall be cumulative and in addition to and not in
lieu of any other remedies available to any party at law, in equity or
otherwise.  No provision of this Agreement is intended to confer  any rights or
remedies on any person other than the Employee.

       SECTION 18.   CERTAIN ARRANGEMENTS FOR EMPLOYEES AND OFFICERS FOLLOWING
AFTER THE EFFECTIVE TIME.  The Company agrees with the Employee, that as soon as
reasonably practicable after the Effective Time, it will put in place the Direct
Investment Plan and the Management Incentive Plan described in Annexes I and II
for certain employees and officers of the Company and its subsidiaries.

       SECTION 19.   COUNTERPARTS.   This Agreement may be executed in multiple
counterparts, each of which shall constitute an original, and all of which
together shall constitute one and the same Agreement.

       SECTION 20.   GOVERNING LAW.  This Agreement shall be construed and
enforced according to the laws of the State of Minnesota.

       SECTION 21.   PRIOR EMPLOYMENT AGREEMENT.   Upon the occurrence of the
Effective Time, this Agreement supersedes any and all other employment,
change-in-control, severance or similar agreements between Employee and the
Company or the Employee and Merrill Corporation.

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

                                         THE COMPANY:

                                         VIKING MERGER SUB, INC.

                                         By     /s/ William F. Dawson, Jr.
                                           -------------------------------------
                                         Title  President
                                              ----------------------------------

                                         EMPLOYEE:

                                         /s/ Rick Atterbury
                                         ---------------------------------------
                                                Name:  Rick Atterbury

<PAGE>

                                                                         ANNEX I

                                      TERM SHEET
                                DIRECT INVESTMENT PLAN

 Share Price:                Same price as that paid by the DLJMB entities
                             under the Merger Agreement.

 Reinvestment and            The employee will purchase Shares with his or her
   Coinvestment Shares:      available funds (each a "Reinvestment Share") and
                             the Company will make a non-recourse loan (the
                             "Loan") to the employee to purchase additional
                             Shares (each a "Coinvestment Share").  (See
                             Schedule A attached for the number of Reinvestment
                             and Coinvestment Shares for each employee.)  All
                             Reinvestment Shares and Coinvestment Shares
                             purchased by an employee will be posted as
                             collateral for the Loan to the employee.  The
                             value of the collateral must be adequate to assure
                             that the Loan will not be treated as income for
                             tax purposes.  The employee may make a Section
                             83(b) election so that any future gain on the
                             Reinvestment and Coinvestment Shares will be
                             treated as capital gain.  All Reinvestment and
                             Coinvestment Shares will be subject to the
                             transfer restrictions and other provisions of the
                             Shareholders Agreement, which will apply to the
                             DLJMB entities and all management investors.

 Loan Terms:                 The Loan will bear interest at the greater of the
                             Company's credit facility rate or the federal
                             applicable rate.  All principal and interest will
                             be repayable in a single payment as of the earlier
                             of (i) the employee's termination of employment or
                             (ii) eight years after the purchase of the
                             Reinvestment and Coinvestment Shares.  In the case
                             of the sale of all or part of the Shares, Loan
                             repayment will be immediately due to the extent of
                             the lesser of (i) the pro rata portion of unpaid
                             principal and interest on the Loan attributable to
                             such Shares and (ii) the net after tax proceeds
                             realized upon such sale;  PROVIDED that the total
                             amount due will not exceed the total amount of the
                             principal and interest outstanding on the Loan.

 Termination of Employment/  In the event an employee's termination of
   Company Repurchase        employment prior to a DLJMB liquidation event the
 Right:                      Reinvestment Shares and Coinvestment Shares will
                             be subject to a Company repurchase right.  The
                             repurchase price will depend on the

<PAGE>

                             circumstances of the termination and, in the case
                             of the Coinvestment Shares, the extent to which the
                             Coinvestment Shares have become vested, as
                             follows:

                             (a) VESTING SCHEDULE FOR COINVESTMENT SHARES

<TABLE>
<CAPTION>
                                                      % of Coinvestment
                                   Year  Shares Vested as of the End of the Year
                                   ----  ---------------------------------------
                                   <S>   <C>
                                    1                         0%
                                    2                         0%
                                    3                        33%
                                    4                        66%
                                    5                        100%
</TABLE>

                             (a) COMPANY REPURCHASE PRICE

<TABLE>
<CAPTION>
                                                Reinvestment
                                                 Shares and
                                                   Vested          Unvested
                                                Coinvestment     Conivestment
                                                   Shares           Shares
                                                -------------  ----------------
                             <S>                <C>            <C>
                             Voluntary              FMV        Lesser of (i)
                             Resignation,                      FMV or (ii)
                             Disability,                       purchase price
                             Death or                          plus Loan
                             Termination by                    interest
                             Company without
                             Cause
</TABLE>

<TABLE>
<CAPTION>

                                                                 All Shares
                                                               -----------------
                             <S>                               <C>
                                                               Lesser of (i)
                             Termination for                   FMV or (ii)
                             Cause                             purchase price
</TABLE>

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<PAGE>

 Termination of Employment   Upon termination of employment without Cause,
 without Cause/Employee Put  employee will have the right to put all
 Right                       Reinvestment Shares and all vested Coinvestment
                             Shares to the Company at fair market value;
                             PROVIDED that payment for such Shares shall be
                             required to be made only as rapidly as permissible
                             without violating Loan covenants or other
                             contractual restrictions applicable to the Company
                             (and any amounts not paid upon exercise of the put
                             will bear interest at the rate applicable to the
                             Company's bank debt.)

 Change in Control:          Upon a sale by the DLJMB entities of 60% of their
                             Shares in the Company or substantially all of the
                             assets of the Company, all Coinvestment Shares
                             that have not yet vested shall immediately become
                             vested (unless the Company is publicly traded
                             immediately following such sale).

                                          3
<PAGE>

                                     SCHEDULE A

                       REINVESTMENT AND COINVESTMENT SUMMARY

<TABLE>
<CAPTION>
                           Reinvestment Program                 Coinvestment Program                        Totals
                    --------------------------------           ---------------------   -----------------------------------
                      $ Amt.               Shares          $ Amt.           Shares      $ Amt.          Shares         Loans
                    -------------      -------------    ----------------- ----------   ----------     ----------     ---------
 <S>                <C>                <C>              <C>               <C>          <C>            <C>         <C>
 TOTAL               $10 million                        $18.6 million (*)                                         $18.6 million
</TABLE>

--------------------
         [ILLEGIBLE]

                                       4

<PAGE>

                                                                      ANNEX II

                                      TERM SHEET
                              MANAGEMENT INCENTIVE PLAN

 Recipients/ Number of    See Schedule A attached.
   Shares Covered by
   Options:

 Grant Date:              Closing Date

 Option Exercise Price:   Same as DLJMB entities' buying price under the Merger
                          Agreement.

 Time Vesting Option:     Each Time Vesting Option will become vested and
                          exercisable as follows:

<TABLE>
<CAPTION>

                          End of Year:    1     2     3      4      5     6
                                         --    --    ---    ---    ---   ----
                          <S>            <C>   <C>   <C>    <C>    <C>   <C>
                                         0%    0%    25%    50%    75%   100%

</TABLE>

 Performance Vesting      Performance Vesting Options will become vested and
   Option:                exercisable according to the schedule set forth in
                          Exhibit 1, based on whether the Target Implied Common
                          Equity Values set forth in such Exhibit are attained
                          as of the end of the relevant years.  Such vesting
                          shall be cumulative; I.E., the percentage of
                          Performance Vesting Options set forth for each year
                          shall be vested as of the end of such year if the
                          Target Implied Common Equity Value for such year is
                          achieved as of such date, regardless of whether the
                          Target Implied Common Equity Values have been
                          achieved in previous years.

                          In the event that the DLJMB entities sell 90% or more
                          of their Shares in the Company or substantially all
                          of the assets of the Company and realize an internal
                          rate of return ("DLJMB IRR") of at least 25%, the
                          portion of the Performance Vesting Option which has
                          not previously become vested and exercisable will
                          become vested and exercisable based upon the level of
                          the DLJMB IRR, as set forth in Exhibit 2 attached.

 Super Performance        Each Super Performance Vesting Option will become
   Vesting Options:       exercisable if the DLJMB entities sell 90% or more of
                          their Shares in the Company or substantially all the
                          assets of the Company and realize a DLJMB IRR in
                          excess of 50%.  To the extent that the vesting of all
                          the Super Performance Vesting Options granted under
                          the Plan would cause the DLJMB IRR to be 50% or less,
                          only that portion of the Super Performance

<PAGE>

                          Vesting Options that would result in a DLJMB IRR of
                          50% will become vested.

 Transferability/         All Options will be non-transferable.  All Shares
   Shareholders           acquired upon the exercise of the Options will be
   Agreement:             subject to the transfer restrictions and other
                          provisions set forth in the Shareholders' Agreement
                          which will apply to the DLJMB entities and all
                          management investors.

 Termination of           RESIGNATION, TERMINATION WITHOUT CAUSE, DEATH OR
   Employment:            DISABILITY - Unvested Options terminate immediately,
                          but vested Options will be retained by the employee.

                          TERMINATION FOR CAUSE - All vested and unvested
                          Options terminate immediately and all Shares
                          previously acquired upon exercise of Options will be
                          subject to a right of repurchase by the Company at a
                          price equal to the Exercise Price.

                                          2
<PAGE>

                                      SCHEDULE A

                                       OPTIONS
<TABLE>
<CAPTION>
                                            Super
                 Time      Performance   Performance
                Vesting      Vesting       Vesting       Total       Exercise
     Name       Options      Options       Options      Options       Price
     ----       -------      -------       -------      -------       -----
    <S>         <C>        <C>           <C>            <C>          <C>
    [TOTAL        5%*          5%*           5%*          15%*       $22.00]

</TABLE>

-------------
       * The percentages are expressed as percentages of outstanding Shares,
without taking into account the Shares issuable pursuant to the Options.

<PAGE>

                                     EXHIBIT 1

                    (FOR CALCULATING VESTING UNDER SECTION 4(b))

<TABLE>
<CAPTION>

       FISCAL YEAR:          2000   2001   2002   2003   2004
                             ----   ----   ----   ----   ----
<S>                          <C>    <C>    <C>    <C>    <C>
TARGET IMPLIED COMMON
EQUITY VALUE OF THE
COMPANY (IN MILLIONS):      [TO BE BASED ON 85% OF MANAGEMENT PROJECTIONS]

TARGET VESTED
PERCENTAGE:                  20%    40%    60%    80%    100%

</TABLE>

For this purpose, the "IMPLIED COMMON EQUITY VALUE OF THE COMPANY" is defined as

                                  EV - TD + CASH,

where

       EV (Enterprise Value) is pro forma EBITDA times 6.0
       TD is Total Debt
       CASH is cash on balance sheet (2)
-------------------------------
(1)  As of fiscal year end.

                                       4

<PAGE>

                                     EXHIBIT 2

              (FOR PURPOSES OF CALCULATING VESTING UNDER SECTION 4(c))
<TABLE>
<CAPTION>
                                            PERCENTAGE OF UNVESTED
                                       CLIFF VESTING SHARES AS TO WHICH
                                             OPTION BECOMES VESTED
         DLJMB IRR                           ON LIQUIDATION EVENT
      --------------                   --------------------------------
      <S>                              <C>
      40% OR GREATER                                 100%
       35.0 - 39.9%                                   75%
       30.0 - 34.9%                                   50%
       25.0 - 29.9%                                   25%
      LESS THAN 20%                                   0%

</TABLE>

For this purpose, "DLJMB IRR" is defined as that annual discount rate which,
when applied to (i) all investments by the DLJMB entities in Shares of Common
Stock of the Company and (ii) all amounts realized by the DLJMB entities with
respect to such Shares causes the net present value of such investments and
amounts realized to equal zero, as determined on a pro forma basis reflecting
the Shares issuable pursuant to Options that have become vested prior to the
Liquidation Event and the Shares issuable pursuant to Options becoming vested as
of the Liquidation Event.

                                          5<PAGE>

                                                                  EXHIBIT 10.6

                               MERRILL CORPORATION
                             1999 STOCK OPTION PLAN

1.     PURPOSE OF PLAN.

       The purpose of the Merrill Corporation 1999 Stock Option Plan (the
"PLAN") is to advance the interests of Merrill Corporation (the "COMPANY") and
its shareholders by enabling the Company and its Subsidiaries to attract and
retain persons of ability to perform services for the Company and its
Subsidiaries by providing an incentive to such individuals through equity
participation in the Company and rewarding such individuals who contribute to
the achievement by the Company of its economic objectives.

2.     DEFINITIONS.

       In addition to the capitalized terms otherwise defined herein, the
following additional capitalized terms will have the meanings set forth below,
unless the context clearly otherwise requires:

       2.1    "ADVERSE ACTION" means the actions described in Section 10.5(b) of
the Plan.

       2.2    "BOARD" means the Board of Directors of the Company.

       2.3    "BROKER EXERCISE NOTICE" means a written notice pursuant to which
a Participant, upon exercise of an Option, irrevocably instructs a broker or
dealer to sell a sufficient number of shares or loan a sufficient amount of
money to pay all or a portion of the exercise price of the Option and/or any
related withholding tax obligations and remit such sums to the Company and
directs the Company to deliver stock certificates to be issued upon such
exercise directly to such broker or dealer.

       2.4    "CAUSE" means (i) dishonesty, fraud, misrepresentation,
embezzlement or other act of dishonesty with respect to the Company or any
Subsidiary, (ii) any unlawful or criminal activity of a serious nature, (iii)
any intentional and deliberate breach of a duty or duties that, individually or
in the aggregate, are material in relation to the Participant's overall duties,
(iv) any material breach of any employment, service, confidentiality or
non-compete agreement entered into with the Company or any Subsidiary, or (v) an
Adverse Action.

       2.5    "CODE" means the Internal Revenue Code of 1986, as amended.

       2.6    "COMMITTEE" means the group of individuals administering the Plan,
as provided in Section 3 of the Plan.

       2.7    "COMMON STOCK" means the voting class B common stock of the
Company, $0.01 par value per share, or the number and kind of shares of stock or
other securities into which such common stock may be changed in accordance with
Section 4.3 of the Plan.

       2.8    "DISABILITY" means the disability of the Participant such as would
entitle the Participant to receive disability income benefits pursuant to the
long-term disability plan of the Company or Subsidiary then covering the
Participant or, if no such plan exists or is applicable to the Participant, the
permanent and total disability of the Participant within the meaning of
Section 22(e)(3) of the Code.

       2.9    "DLJMB" means DLJ Merchant Banking Partners II, L.P. and all its
affiliated entities as described in the Investors' Agreement.
<PAGE>

       2.10   "DLJMB LIQUIDATION EVENT" means, except for transfers to Permitted
Transferees (as defined in the Investors' Agreement), (i) a sale or other
transfer by DLJMB of 90% or more of its shares of common equity in the Company
(including all common equity originally purchased by DLJMB and any additional
common equity purchased by DLJMB thereafter, whether voting, Class B or any
other class of common equity created by the Company) to one or more persons or
entities (in one transaction or in a series of related transactions) other than
in connection with a public offering of the Company's common equity, (ii) the
sale, lease, exchange or other transfer, directly or indirectly, of
substantially all of the assets of the Company (in one transaction or in a
series of related transactions) to a person or entity that is not controlled by
the Company, or (iii) a merger or consolidation to which the Company is a party
if the shareholders of the Company immediately prior to the effective date of
such merger or consolidation do not have "beneficial ownership" (as defined in
Rule 13d-3 under the Exchange Act) immediately following the effective date of
such merger or consolidation of more than 50% of the combined voting power of
the surviving corporation's outstanding securities ordinarily having the right
to vote at elections of directors.

       2.11   "ENTERPRISE VALUE" means a value equal to six times the Pro-Forma
EBITDA as shown on the Company's consolidated statement of operations for its
most recent fiscal year end.

       2.12   "ELIGIBLE RECIPIENTS" means all employees of the Company or any
Subsidiary and any non-employee directors, consultants and independent
contractors of the Company or any Subsidiary.

       2.13   "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

       2.14   "FAIR MARKET VALUE" means, with respect to the Common Stock, as of
the Valuation Date (or, if no shares were traded or quoted on such date, as of
the next preceding date on which there was such a trade or quote) (a) the mean
between the reported high and low sale prices of the Common Stock if the Common
Stock is listed, admitted to unlisted trading privileges or reported on any
foreign or national securities exchange or on the NASDAQ National Market or an
equivalent foreign market on which sale prices are reported; (b) if the Common
Stock is not so listed, admitted to unlisted trading privileges or reported, the
closing bid price as reported by the NASDAQ SmallCap Market, OTC Bulletin Board
or the National Quotation Bureau, Inc. or other comparable service; or (c) if
the Common Stock is not so listed or reported, such price shall be the Formula
Value, or such other price as the Committee shall determine is appropriate in
its sole discretion.  The Committee's determination as to the Fair Market Value
of the Common Stock shall be final, conclusive and binding for all purposes and
on all persons, including, without limitation, the Company, shareholders of the
Company, the Participants and their respective successors-in-interest.  No
member of the Board or the Committee shall be liable for any determination
regarding current values of the Common Stock that is made in good faith.

       2.15   "FORMULA VALUE" means the price determined on a Valuation Date by
subtracting (i) Total Debt and (ii) Total Preferred Stock from the Enterprise
Value, adding Total Cash to this difference and dividing such sum by the
aggregate of the number of shares of capital stock of the Company outstanding on
such Valuation Date (including all vested and unvested Shares) and all shares of
common equity of the Company which may be issuable upon the exercise of options
and warrants of the Company outstanding on such Valuation Date (whether or not
then exercisable); provided, however, that any option which is not subject to a
specific vesting schedule and only becomes fully exercisable upon a DLJMB
Liquidation Event which realizes an internal rate of return in excess of fifty
percent shall not be included in the outstanding option number on such Valuation
Date.

       2.16   "INCENTIVE STOCK OPTION" means a right to purchase Common Stock
granted to an Eligible Recipient pursuant to Section 6 of the Plan that
qualifies as an "incentive stock option" within the meaning of Section 422 of
the Code.

                                       2
<PAGE>

       2.17   "INVESTORS' AGREEMENT" means the Investors' Agreement, dated
November 23, 1999, by and among the Company and its shareholders, as amended
from time to time.

       2.18   "NON-STATUTORY STOCK OPTION" means a right to purchase Common
Stock granted to an Eligible Recipient pursuant to Section 6 of the Plan that
does not qualify as an Incentive Stock Option.

       2.19   "OPTION" means an Incentive Stock Option or a Non-Statutory Stock
Option.

       2.20   "PARTIAL TERMINATION" means a change in the Participant's
employment or other service with the Company and all its Subsidiaries such that
the number of hours worked by such Participant is substantially reduced for any
reason as the Committee in its sole discretion may determine from the number of
hours such Participant is required to work for the Company or Subsidiary and
such reduction is expected to extend for an indefinite period of time.

       2.21   "PARTICIPANT" means an Eligible Recipient who receives one or more
Options under the Plan, and to the extent such Participant transfers any Option
granted under this Plan to a Permitted Transferee (as defined in the Investors'
Agreement) in accordance with the terms of the Investors' Agreement such term
shall mean the Participant and such Permitted Transferee of such Participant.

       2.22   "PREVIOUSLY ACQUIRED SHARES" means shares of Common Stock that are
already owned by the Participant or, with respect to any Option, that are to be
issued upon the exercise of such Option.

       2.23   "PRO-FORMA EBITDA" means earnings before interest, taxes,
depreciation and amortization as computed using generally accepted accounting
principles on a pro-forma basis as allowed by Regulation S-X of the Securities
Act.

       2.24   "REPURCHASE DATE" means the date set forth in Section 7.7 of the
Plan.

       2.25   "REPURCHASE RIGHT" means the Company's irrevocable and exclusive
right to repurchase from the Participant all shares of Common Stock previously
acquired upon exercise of an Option, at a price equal to the exercise price paid
by the Participant to acquire such shares of Common Stock, in the event a
Participant's employment or other service with the Company and all its
Subsidiaries is terminated by the Company or any Subsidiary for Cause.

       2.26   "RETIREMENT" means termination of employment or service pursuant
to and in accordance with the regular (or, if approved by the Committee for
purposes of the Plan, early) retirement/pension plan or practice of the Company
or Subsidiary then covering the Participant, provided that if the Participant is
not covered by any such plan or practice, the Participant will be deemed to be
covered by the Company's plan or practice for purposes of this determination.

       2.27   "SECURITIES ACT" means the Securities Act of 1933, as amended.

       2.28   "SUBSIDIARY" means any entity that is directly or indirectly
controlled by the Company or any entity in which the Company has a significant
equity interest, as determined by the Committee.

       2.29   "TAX DATE" means the date any withholding tax obligation arises
under the Code or other applicable tax statute for a Participant with respect to
an Option.

       2.30   "TOTAL CASH" means the total amount of cash and cash equivalents
shown on the Company's consolidated balance sheet as of its most recent fiscal
year end.

       2.31   "TOTAL DEBT" means any indebtedness of the Company in respect of
borrowed money or evidenced by bonds, notes, debentures or similar instruments
or letters of credit (or reimbursement

                                       3
<PAGE>

agreements in respect thereof) or banker's acceptances, except any such balance
that constitutes an accrued expense, trade payable or customer contract advance,
if and to the extent that any of the foregoing (other than letters of credit)
would appear as a liability on the Company's consolidated balance sheet as of
its most recent fiscal year end.

       2.32   "TOTAL PREFERRED STOCK" means the total amount of the liquidation
preference on all of the Company's issued and outstanding preferred stock as of
its most recent fiscal year end.

       2.33   "VALUATION DATE" means a date on which the Committee shall
determine the Fair Market Value of the Common Stock, which date shall be no more
than ninety (90) days following the Company's fiscal year end.

3.     PLAN ADMINISTRATION.

       3.1    THE COMMITTEE.  The Plan will be administered by the Board or by a
committee of the Board.  So long as the Company has a class of its equity
securities registered under Section 12 of the Exchange Act, any committee
administering the Plan will consist solely of two or more members of the Board
who are "non-employee directors" within the meaning of Rule 16b-3 under the
Exchange Act and, if the Board determines in its sole discretion, who are
"outside directors" within the meaning of Section 162(m) of the Code.  As used
in the Plan, "Committee" will refer to the Board or to such a committee, if
established.  The committee, if established, will act by majority approval of
the members (but may also take action with the written consent of a majority of
the members of such committee), and a majority of the members of such a
committee will constitute a quorum.  To the extent consistent with corporate
law, the Committee may delegate to any officers of the Company the duties, power
and authority of the Committee under the Plan pursuant to such conditions or
limitations as the Committee may establish; provided, however, that only the
Committee may exercise such duties, power and authority with respect to Eligible
Recipients who are subject to Section 16 of the Exchange Act.  The Committee may
exercise its duties, power and authority under the Plan in its sole and absolute
discretion without the consent of any Participant or other party, unless the
Plan specifically provides otherwise.  Each determination, interpretation or
other action made or taken by the Committee pursuant to the provisions of the
Plan will be final, conclusive and binding for all purposes and on all persons,
including, without limitation, the Company, the shareholders of the Company, the
Participants and their respective successors-in-interest.  No member of the
Committee will be liable for any action or determination made in good faith with
respect to the Plan or any Option granted under the Plan.

       3.2    AUTHORITY OF THE COMMITTEE.

              (a)    In accordance with and subject to the provisions of the
       Plan, the Committee will have the authority to determine all provisions
       of Options as the Committee may deem necessary or desirable and as
       consistent with the terms of the Plan, including, without limitation, the
       following: (i) the Eligible Recipients to be selected as Participants;
       (ii) the nature and extent of the Options to be granted to each
       Participant (including the number of shares of Common Stock to be subject
       to each Option, the exercise price and the manner in which Options will
       become exercisable) and the form of written agreement, if any, evidencing
       such Option; (iii) the time or times when Options will be granted; (iv)
       the duration of each Option; and (v) the restrictions and other
       conditions to which the Options, or vesting of Options, may be subject.
       In addition, the Committee will have the authority under the Plan in its
       sole discretion to pay the economic value of any Option in the form of
       cash, Common Stock or any combination of both.

              (b)    The Committee will have the authority under the Plan to
       amend or modify the terms of any outstanding Option in any manner,
       including, without limitation, the authority to modify the number of
       shares or other terms and conditions of an Option, extend the term of an
       Option, accelerate the exercisability or otherwise terminate any
       restrictions or vesting relating to

                                       4
<PAGE>

       an Option, accept the surrender of any outstanding Option or, to the
       extent not previously exercised or vested, authorize the grant of new
       Options in substitution for surrendered Options; provided, however that
       the amended or modified terms are permitted by the Plan as then in effect
       and that any Participant adversely affected by such amended or modified
       terms has consented to such amendment or modification. No amendment or
       modification to an Option, however, whether pursuant to this Section 3.2
       or any other provisions of the Plan, will be deemed to be a re-grant of
       such Option for purposes of this Plan.

              (c)    In the event of (i) any reorganization, merger,
       consolidation, recapitalization, liquidation, reclassification, stock
       dividend, stock split, combination of shares, rights offering,
       extraordinary dividend or divestiture (including a spin-off) or any other
       change in corporate structure or shares, (ii) any purchase, acquisition,
       sale or disposition of a significant amount of assets or a significant
       business, (iii) any change in accounting principles or practices, or
       (iv) any other similar change, in each case with respect to the Company
       or any other entity whose performance is relevant to the grant or vesting
       of an Option, the Committee (or, if the Company is not the surviving
       corporation in any such transaction, the board of directors of the
       surviving corporation) may, without the consent of any affected
       Participant, amend or modify the conditions to the exercisability of any
       outstanding Option that is based in whole or in part on the financial
       performance of the Company (or any Subsidiary or division thereof) or
       such other entity so as equitably to reflect such event, with the desired
       result that the criteria for evaluating such financial performance of the
       Company or such other entity will be substantially the same (in the sole
       discretion of the Committee or the board of directors of the surviving
       corporation) following such event as prior to such event; provided,
       however, that the amended or modified terms are permitted by the Plan as
       then in effect.

4.     SHARES AVAILABLE FOR ISSUANCE.

       4.1    MAXIMUM NUMBER OF SHARES AVAILABLE.  Subject to adjustment as
provided in Section 4.3 of the Plan, the maximum number of shares of Common
Stock that will be available for issuance under the Plan will be 825,000 shares
of Common Stock.

       4.2    ACCOUNTING FOR OPTIONS.  Shares of Common Stock that are issued
under the Plan or that are subject to outstanding Options will be applied to
reduce the maximum number of shares of Common Stock remaining available for
issuance under the Plan.  Any shares of Common Stock that are subject to an
Option that lapses, expires, is forfeited or for any reason is terminated
unexercised and any shares of Common Stock that are subject to an Option that is
settled or paid in cash or any form other than shares of Common Stock will
automatically again become available for issuance under the Plan.   In addition,
in the event that any shares of Common Stock that are issued under the Plan are
reacquired by the Company pursuant to any forfeiture provision, right of
repurchase or right of first refusal, such shares will automatically again
become available for issuance under the Plan, except that any such shares so
reacquired will not be available for issuance in connection with the exercise of
Incentive Stock Options unless permitted by Section 422 of Code and the rules
and regulations thereunder.

       4.3    ADJUSTMENTS TO SHARES AND OPTIONS.

              (a)    GENERAL. In the event that the Committee determines that
       any reorganization, merger, consolidation, recapitalization, liquidation,
       reclassification, stock dividend, stock split, combination of shares,
       rights offering, divestiture or extraordinary dividend (including a
       spin-off) or any other similar change in the corporate structure or
       shares of the Company, affects the Options such that an adjustment is
       determined by the Committee, in its sole discretion, to be appropriate in
       order to prevent dilution or enlargement of the benefits or potential
       benefits intended to be made available under the Plan, the Committee (or,
       if the Company is not the surviving corporation in any such transaction,
       the board of directors of the surviving corporation)

                                       5
<PAGE>

       shall, in such manner as it deems equitable, adjust any or all of (i) the
       number of shares of Common Stock of the Company (or number and kind of
       other securities or property) available for issuance or payment under the
       Plan, (ii) the number of shares of Common Stock or other securities of
       the Company (or number and kind of other securities or property) subject
       to outstanding Options, and (iii) the grant or exercise price with
       respect to any Options, or, if deemed appropriate, make provisions for a
       cash payment to the holder of an outstanding Option.

              (b)    MERGERS AND CONSOLIDATIONS.  Without limiting the authority
       of the Committee to take any actions deemed appropriate under Section
       4.3(a) of the Plan, in the event that the Company is a party to a merger
       or consolidation, outstanding Options under the Plan will be subject to
       the agreement of merger or consolidation, and such agreement, without the
       Participants' consent, may provide for the following:

              (i)    If the Company is the surviving corporation in connection
       with such merger or consolidation, the continuation of outstanding
       Options by the Company.

              (ii) If the Company is not the surviving corporation in connection
       with such merger or consolidation, the assumption of the Plan and the
       outstanding Options by the surviving corporation or its parent or the
       substitution by the surviving corporation or its parent of options with
       substantially similar terms for such outstanding Options.

5.     PARTICIPATION.

       Participants in the Plan will be those Eligible Recipients who, in the
judgment of the Committee, have contributed, are contributing or are expected to
contribute to the achievement of economic objectives of the Company or its
Subsidiaries.  Eligible Recipients may be granted from time to time one or more
Options as may be determined by the Committee in its sole discretion.  Options
will be deemed to be granted as of the date specified in the grant resolution of
the Committee, which date will be the date of any related agreement with the
Participant.

6.     OPTIONS.

       6.1    GRANT.  An Eligible Recipient may be granted one or more Options
under the Plan, and such Options will be subject to such terms and conditions,
consistent with the other provisions of the Plan, as may be determined by the
Committee in its sole discretion.  The Committee may designate whether an Option
is to be considered an Incentive Stock Option or a Non-Statutory Stock Option.
To the extent that any Incentive Stock Option granted under the Plan ceases for
any reason to qualify as an "incentive stock option" for purposes of Section 422
of the Code, such Incentive Stock Option will continue to be outstanding for
purposes of the Plan but will thereafter be deemed to be a Non-Statutory Stock
Option.

       6.2    EXERCISE PRICE.  The per share price to be paid by a Participant
upon exercise of an Option will be determined by the Committee in its discretion
at the time of the Option grant; provided, however, that (a) such price will not
be less than 100% of the Fair Market Value of one share of Common Stock on the
date of grant with respect to an Incentive Stock Option (110% of the Fair Market
Value if, at the time the Incentive Stock Option is granted, the Participant
owns, directly or indirectly, more than 10% of the total combined voting power
of all classes of stock of the Company or any parent or subsidiary corporation
of the Company), and (b) such price will not be less than 85% of the Fair Market
Value of one share of Common Stock on the date of grant with respect to a
Non-Statutory Stock Option (110% of the Fair Market Value if, at the time the
Non-Statutory Stock Option is granted, the Participant owns, directly or
indirectly, more than 10% of the total combined voting power of all classes of
stock of the Company or any parent or subsidiary corporation of the Company).

                                       6
<PAGE>

       6.3    EXERCISABILITY AND DURATION.  Subject to Section 7 hereof, an
Option will become exercisable at such times and in such installments as may be
determined by the Committee in its sole discretion at the time of grant;
provided, however, that no Incentive Stock Option may be exercisable after ten
(10) years from its date of grant (five (5) years from its date of grant if, at
the time the Incentive Stock Option is granted, the Participant owns, directly
or indirectly, more than 10% of the total combined voting power of all classes
of stock of the Company or any parent or subsidiary corporation of the Company).

       6.4    PAYMENT OF EXERCISE PRICE.  The total purchase price of the shares
to be purchased upon exercise of an Option must be paid entirely in cash
(including check, bank draft or money order); provided, however, that the
Committee, in its sole discretion and upon terms and conditions established by
the Committee, may allow such payments to be made, in whole or in part, by
tender of a Broker Exercise Notice, Previously Acquired Shares, a promissory
note (on terms acceptable to the Committee in its sole discretion) or by a
combination of such methods.

       6.5    MANNER OF EXERCISE.  An Option may be exercised by a Participant
in whole or in part from time to time, subject to the conditions contained in
the Plan and in the agreement evidencing such Option, by delivery in person, by
facsimile or electronic transmission (with written confirmation via the mail to
follow such electronic transmission) or through the mail of written notice of
exercise to the Company (Attention: Secretary) at its principal executive office
in St. Paul, Minnesota and by paying in full the total exercise price for the
shares of Common Stock to be purchased in accordance with Section 6.4 of the
Plan.

       6.6    AGGREGATE LIMITATION OF STOCK SUBJECT TO INCENTIVE STOCK OPTIONS.
To the extent that the aggregate Fair Market Value (determined as of the date an
Incentive Stock Option is granted) of the shares of Common Stock with respect to
which Incentive Stock Options are exercisable for the first time by a
Participant during any calendar year (under the Plan and any other incentive
stock option plans of the Company or any subsidiary or parent corporation of the
Company (within the meaning of the Code)) exceeds $100,000 (or such other amount
as may be prescribed by the Code from time to time), such excess Options will be
treated as Non-Statutory Stock Options.  The determination will be made by
taking Incentive Stock Options into account in the order in which they were
granted.  If such excess only applies to a portion of an Incentive Stock Option,
the Committee, in its discretion, will designate which shares will be treated as
shares to be acquired upon exercise of an Incentive Stock Option.

       6.7    INVESTORS' AGREEMENT.  Upon exercise of an Option under the Plan
each Participant shall become a party to the Investors' Agreement.  Each
Participant who (i) is an employee of the Company or any Subsidiary reporting
directly to the Chief Executive Officer ("CEO") or Chief Operating Officer
("COO") of the Company or (ii) acquires more than a certain percentage of the
Common Stock available for issuance under the Plan as determined by the
Committee in its sole discretion from time to time, shall be deemed a "Co-invest
Management Stockholder" for all purposes of the Investors' Agreement and all
other Participants who acquire shares of Common Stock under the Plan shall be
deemed "Other Stockholders" for purposes of the Investors' Agreement, including,
without limitation, all transfer restrictions and provisions thereof; provided,
however, if a Participant after the exercise of the Option is no longer required
to report directly to the CEO or COO such Participant shall thereafter be deemed
an "Other Stockholder," and any "Other Stockholder" who acquires more than the
percentage of the Common Stock available for issuance under the Plan as
determined by the Committee or reports directly to the CEO or COO after the
exercise of the Option shall thereafter be deemed a "Co-invest Management
Stockholder," for all purposes of the Investors' Agreement.  Notwithstanding
anything to the contrary in the Plan, if the Investors' Agreement has terminated
by its terms, the provisions of this Section 6.7 shall no longer apply.

                                       7
<PAGE>

7.     EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE.

       7.1    TERMINATION FOR CAUSE.  Unless otherwise provided by the Committee
in its sole discretion in the agreement evidencing an Option, in the event a
Participant's employment or other service with the Company and all its
Subsidiaries is terminated by the Company or any Subsidiary for Cause, all
rights of the Participant under the Plan and any agreements evidencing an Option
will immediately terminate without notice of any kind, and all Options then held
by the Participant, whether exercisable or not at the time of termination, will
immediately terminate without notice of any kind, and the Company shall also
have the right to exercise its Repurchase Right in the manner set forth in
Section 7.7.

       7.2    TERMINATION FOR REASONS OTHER THAN CAUSE.  Unless otherwise
provided by the Committee in its sole discretion in the agreement evidencing an
Option, in the event a Participant's employment or other service with the
Company and all Subsidiaries is terminated other than for Cause by reason of
voluntary resignation, death, Disability or Retirement, all outstanding Options
then held by the Participant will remain exercisable, to the extent exercisable
as of the date of such termination, for a period of one year following the date
the Participant's employment or other service is terminated, and any outstanding
Options not exercisable as of the date of such termination will immediately
terminate without notice of any kind.

       7.3    PARTIAL TERMINATIONS.  In the event of a Partial Termination, the
Committee shall have the right in its sole discretion to modify the terms of any
unvested Options then held by the Participant at the time of the Partial
Termination, including, without limitation, the right to immediately terminate
without notice of any kind all rights the Participant has in any unvested
Options then held by the Participant at the time of the Partial Termination.

       7.4    MODIFICATION OF RIGHTS UPON TERMINATION.  Notwithstanding the
other provisions of this Section 7, upon a Participant's termination of
employment or other service with the Company and all Subsidiaries, the Committee
may, in its sole discretion (which may be exercised at any time on or after the
date of grant, including following such termination), cause Options (or any part
thereof) then held by such Participant to become or continue to become
exercisable and/or remain exercisable following such termination of employment
or service; provided, however, that no Option may remain exercisable beyond its
expiration date.

       7.5    EXERCISE OF INCENTIVE STOCK OPTIONS FOLLOWING TERMINATION.  Any
Incentive Stock Option that remains unexercised more than one year following
termination of employment by reason of Disability or more than three months
following termination for any reason other than death or Disability will
thereafter be deemed to be a Non-Statutory Stock Option.

       7.6    DATE OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE.  Unless the
Committee otherwise determines in its sole discretion, a Participant's
employment or other service will, for purposes of the Plan, be deemed to have
terminated on the date recorded on the personnel or other records of the Company
or the Subsidiary for which the Participant provides employment or other
service, as determined by the Committee in its sole discretion based upon such
records.

       7.7    EXERCISABILITY OF REPURCHASE RIGHT.  If the Company elects to
exercise its Repurchase Right, the Company shall give the Participant written
notice of its intent to exercise its Repurchase Right (the "NOTICE OF
REPURCHASE") within sixty (60) days of such Participants termination of
employment or other service.  The Notice of Repurchase shall specify (i) the
number of shares of Common Stock the Company intends to repurchase, (ii) the
applicable purchase price for such shares of Common Stock, and (iii) the date
the Company expects to purchase such shares of Common Stock from the Participant
which date shall be no later than thirty (30) days following the Valuation Date
in the fiscal year immediately following the fiscal year in which the
Participant's employment or other service is terminated (the

                                       8
<PAGE>

"REPURCHASE DATE"). On or before the Repurchase Date, the Participant shall
deliver to the Company the stock certificates representing the shares of Common
Stock being purchased by the Company, properly endorsed for transfer. By such
delivery of such certificates, the Participant warrants that (i) the Participant
has good title to, the right to possession of, and the right to sell, the shares
of Common Stock, (ii) such shares of Common Stock are free and clear of all
pledges, liens, encumbrances, charges, proxies, restrictions, options, transfers
and other adverse claims, except such as have been imposed by the Plan or the
Investors' Agreement, and except such restrictions on transfer as may be imposed
by federal or state securities laws, and (iii) the Participant shall hold
harmless the Company from all costs, expenses and fees incurred in defending
title and right to possession. On the Repurchase Date, the Company shall pay to
the Participant the total purchase price for the shares of Common Stock to be
purchased by the Company. Notwithstanding anything to the contrary in the Plan,
however, the Company shall only be required to pay for such shares of Common
Stock as rapidly as permissible without violating any loan covenants or other
contractual restrictions applicable to, and binding upon, the Company, and any
amounts not paid to the Participant on the Repurchase Date will bear interest at
a fixed rate of interest equal to eight percent (8%) per annum; provided,
however, that such interest rate shall not exceed the rate permitted by
applicable law. The Company shall only be required to repurchase shares of
Common Stock pursuant to this Section 7.7 to the extent that such repurchase
does not violate any applicable laws.

8.     PAYMENT OF WITHHOLDING TAXES.

       8.1    GENERAL RULES.  The Company is entitled to (a) withhold and deduct
from future wages of the Participant (or from other amounts that may be due and
owing to the Participant from the Company or a Subsidiary), or make other
arrangements for the collection of, all legally required amounts necessary to
satisfy any and all foreign, federal, state and local withholding and
employment-related tax requirements attributable to an Option, including,
without limitation, the grant or exercise of an Option or a disqualifying
disposition of stock received upon exercise of an Incentive Stock Option, or (b)
require the Participant promptly to remit the amount of such withholding to the
Company before taking any action, including issuing any shares of Common Stock,
with respect to an Option.

       8.2    SPECIAL RULES.  The Committee may, in its sole discretion and upon
terms and conditions established by the Committee, permit or require a
Participant to satisfy, in whole or in part, any withholding or
employment-related tax obligation described in Section 8.1 of the Plan by
electing to tender Previously Acquired Shares, a Broker Exercise Notice or a
promissory note (on terms acceptable to the Committee in its sole discretion),
or by a combination of such methods.

9.     DLJMB LIQUIDATION EVENT.

       9.1    ACCELERATION OF VESTING.  Without limiting the authority of the
Committee under the Plan, if a DLJMB Liquidation Event occurs, then, unless
otherwise provided by the Committee in its sole discretion, all unvested Options
will vest in accordance with the terms and conditions of the written agreement
entered into with the Participant to evidence the Option.

       9.2    LIMITATION ON PAYMENTS IN CONNECTION WITH A DLJMB LIQUIDATION
EVENT. Notwithstanding anything in Section 9.1 of the Plan to the contrary, if,
with respect to a Participant, the acceleration of the vesting of Options as
provided in Section 9.1 (which acceleration or payment could be deemed a
"payment" within the meaning of Section 280G(b)(2) of the Code), together with
any other "payments" that such Participant has the right to receive from the
Company or any corporation that is a member of an "affiliated group" (as defined
in Section 1504(a) of the Code without regard to Section 1504(b) of the Code) of
which the Company is a member, would constitute a "parachute payment" (as
defined in Section 280G(b)(2) of the Code), then the "payments" to such
Participant pursuant to Section 9.1 of the Plan will be reduced to the largest
amount as will result in no portion of such "payments" being subject to the
excise tax imposed by Section 4999 of the Code; provided, however, that if a
Participant is subject to a separate agreement with the Company or a Subsidiary
that

                                       9
<PAGE>

expressly addresses the potential application of Sections 280G or 4999 of the
Code (including, without limitation, that "payments" under such agreement or
otherwise will be reduced, that the Participant will have the discretion to
determine which "payments" will be reduced, that such "payments" will not be
reduced or that such "payments" will be "grossed up" for tax purposes), then
this Section 9.2 will not apply, and any "payments" to a Participant pursuant to
Section 9.1 of the Plan will be treated as "payments" arising under such
separate agreement.

10.    RIGHTS OF ELIGIBLE RECIPIENTS AND PARTICIPANTS; TRANSFERABILITY.

       10.1   EMPLOYMENT OR SERVICE.  Nothing in the Plan will interfere with or
limit in any way the right of the Company or any Subsidiary to terminate the
employment or service of any Eligible Recipient or Participant at any time, nor
confer upon any Eligible Recipient or Participant any right to continue in the
employ or service of the Company or any Subsidiary.

       10.2   RIGHTS AS A SHAREHOLDER.  As a holder of Options, a Participant
will have no rights as a shareholder unless and until such Options are exercised
for, or paid in the form of, shares of Common Stock and the Participant becomes
the holder of record of such shares.  Except as otherwise provided in the Plan,
no adjustment will be made for dividends or distributions with respect to such
Options as to which there is a record date preceding the date the Participant
becomes the holder of record of such shares, except as the Committee may
determine in its discretion.

       10.3   RESTRICTIONS ON TRANSFER.  Unless approved by the Committee in its
sole discretion, no right or interest of any Participant in an Option prior to
the exercise of such Option will be assignable or transferable, or subjected to
any lien, during the lifetime of the Participant, either voluntarily or
involuntarily, directly or indirectly, by operation of law or otherwise;
provided, however, once a Participant exercises an Option all shares of Common
Stock issued upon exercise of the Option will be subject to the transfer
restrictions and other provisions set forth in the Investors' Agreement.

       10.4   NON-EXCLUSIVITY OF THE PLAN.  Nothing contained in the Plan is
intended to modify or rescind any previously approved compensation plans or
programs of the Company or create any limitations on the power or authority of
the Board to adopt such additional or other compensation arrangements as the
Board may deem necessary or desirable.

       10.5   RESTRICTIONS REGARDING EMPLOYMENT OR SERVICE.

              (i)    Notwithstanding anything in the Plan to the contrary, in
       the event that a Participant takes an Adverse Action with respect to the
       Company or any Subsidiary (1) prior to such Participant's termination of
       employment or other service with the Company and all its Subsidiaries or
       (2) during the period ending twelve (12) months following the date of the
       Participant's termination of employment or other service with the Company
       and all Subsidiaries without Cause, the Committee in its sole discretion
       will have the authority to terminate immediately all rights of the
       Participant under the Plan and any agreement evidencing Options then held
       by the Participant without notice of any kind.  In addition, to the
       extent that the Participant takes such Adverse Action during the period
       beginning twelve (12) months prior to, and ending twelve months
       following, such date of termination of employment or other service, the
       Committee in its sole discretion will have the authority to rescind the
       exercise of any Options of the Participant that were exercised during
       such period and to require the Participant to pay to the Company, within
       ten (10) days of receipt from the Company of notice of such rescission,
       the amount of any gain realized as a result of such rescinded exercise.
       Such payment will be made in cash (including check, bank draft or money
       order) or, with the Committee's consent, shares of Common Stock with a
       Fair Market Value on the date of payment equal to the amount of such
       payment.  The Company will be entitled to withhold and deduct from future
       wages of the Participant (or from other amounts that may be due and owing
       to the Participant from the

                                       10
<PAGE>

       Company or a Subsidiary) or make other arrangements for the collection of
       all amounts necessary to satisfy such payment obligations.

              (ii) For purposes of the Plan, an "ADVERSE ACTION" will mean any
       action by a Participant that the Committee, in its sole discretion,
       determines to be adverse to the interests of the Company or any
       Subsidiary, including, without limitation, (i) disclosing confidential
       information of the Company or any Subsidiary to any person not authorized
       by the Company or Subsidiary to receive it, (ii) engaging, directly or
       indirectly, in any commercial activity that in the judgment of the
       Committee competes with the business of the Company or any Subsidiary or
       (iii) interfering with the relationships of the Company or any Subsidiary
       and their respective employees and customers.

11.    SECURITIES LAW AND OTHER RESTRICTIONS.

       11.1   SECURITIES LAW RESTRICTIONS.  Notwithstanding any other provision
of the Plan or any agreements entered into pursuant to the Plan, the Company
will not be required to issue any shares of Common Stock under this Plan, and a
Participant may not sell, assign, transfer or otherwise dispose of shares of
Common Stock issued pursuant to Options granted under the Plan, unless (i) there
is in effect with respect to such shares a registration statement under the
Securities Act and any applicable state or foreign securities laws or an
exemption from such registration under the Securities Act and applicable state
or foreign securities laws, and (ii) there has been obtained any other consent,
approval or permit from any other regulatory body which the Committee, in its
sole discretion, deems necessary or advisable.  The Company may condition such
issuance, sale or transfer upon the receipt of any representations or agreements
from the parties involved, and the placement of any legends on certificates
representing shares of Common Stock, as may be deemed necessary or advisable by
the Company in order to comply with such securities law or other restrictions.

       11.2   OTHER RESTRICTIONS.  The Committee may impose such other
restrictions, including, without limitation, market stand-off provisions and
rights of first refusal, as it deems appropriate in its sole discretion and will
set forth any such restrictions that are not otherwise provided for by the Plan
in the agreement evidencing such Option.

12.    PLAN AMENDMENT, MODIFICATION AND TERMINATION.

       The Board may suspend or terminate the Plan or any portion thereof at any
time, and may amend the Plan from time to time in such respects as the Board may
deem advisable in order that Options under the Plan will conform to any change
in applicable laws or regulations or in any other respect the Board may deem to
be in the best interests of the Company; provided, however, that no amendments
to the Plan will be effective without approval of the shareholders of the
Company if shareholder approval of the amendment is then required pursuant to
Section 422 of the Code or the rules of any stock exchange or NASDAQ or similar
regulatory body.  No termination, suspension or amendment of the Plan may
adversely affect any outstanding Option without the consent of the affected
Participant; provided, however, that this sentence will not impair the right of
the Committee to take whatever action it deems appropriate under Sections 3.2,
4.3, 5, 7.3, 9 and 10.5 of the Plan.

13.    EFFECTIVE DATE AND DURATION OF THE PLAN.

       The Plan is effective as of December 20, 1999, the date it was adopted by
the Board.  The Plan will terminate at midnight on December 19, 2009, and may be
terminated prior to such time to by Board action, and no Option will be granted
after such termination.  Options outstanding upon termination of the Plan may
continue to be exercised in accordance with their terms.

                                       11
<PAGE>

14.    MISCELLANEOUS.

       14.1   GOVERNING LAW.  The validity, construction, interpretation,
administration and effect of the Plan and any rules, regulations and actions
relating to the Plan will be governed by and construed exclusively in accordance
with the laws of the State of Minnesota, notwithstanding the conflicts of laws
principles of any jurisdictions.

       14.2   SUCCESSORS AND ASSIGNS.  The Plan will be binding upon and inure
to the benefit of the successors and permitted assigns of the Company and the
Participants.

                                       12

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