Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.8    
    

 

VIKING MERGER SUB, INC.  

140,000 Warrants

to Purchase

Common Shares  

WARRANT AGREEMENT  

Dated as of November 23, 1999  

NORWEST BANK MINNESOTA, N.A.  

 Warrant Agent  

 

   
        WARRANT AGREEMENT, dated as of November 23, 1999, between Viking Merger Sub, Inc., a Delaware corporation ("Viking"), and
Norwest Bank Minnesota, N.A., as warrant agent (the "Warrant Agent"). 

        WHEREAS,
Viking proposes to issue 140,000 warrants (the "Warrants") to initially purchase up to an aggregate of 172,182 Common Shares, par
value $0.01 per share (the "Viking Common Shares") (the Viking Common Shares issuable on exercise of the Warrants being referred to herein as the
"Viking Warrant Shares") in connection with a Purchase Agreement (the "Purchase Agreement") dated
November 18, 1999, among Viking, Merrill Corporation ("Merrill") and Donaldson, Lufkin & Jenrette Securities Corporation, as initial
purchaser, providing for the offering (the "Offering") by Merrill of 140,000 Units, each consisting of $1,000 principal amount at maturity of Merrill's
12% Senior Subordinated Notes due 2009 (the "Notes") and one warrant initially representing the right to purchase 1.22987 Viking Common Shares; 

        WHEREAS,
the Company has entered into an Agreement and Plan of Merger with Merrill dated as of July 14, 1999 (as amended to the date hereof, the "Merger
Agreement") pursuant to which the Company will merge (the "Merger") with and into Merrill and, upon consummation of the Merger,
Merrill will assume all obligations of the Company under this Agreement; 

        WHEREAS,
at the effective time of the Merger, each Viking Common Share will become one share of Class B Common Stock of Merrill, par value $0.01 per share
("Merrill Common Stock"), each Warrant by its terms will become exercisable to initially purchase 1.22987 shares of Merrill Common Stock (the
"Merrill Warrant Shares") and Merrill will succeed to the obligations of Viking under this Agreement and with respect to the Warrants; 

        WHEREAS,
the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing so to act in connection with the issuance of Warrant Certificates (as
defined) and other matters as provided herein; 

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereto agree as follows: 

SECTION 1. CERTAIN DEFINITIONS  

        As used in this Agreement, the following terms shall have the following respective meanings: 

        "144A Global Warrant" means a Global Warrant bearing the Private Placement Legend, initially representing beneficial interests in Warrants
sold in reliance on Rule 144A. 

        "Affiliate" of any Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common
control with such Person. For purpose of this definition, "control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control with, as used with respect
to any Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such specified Person, whether through the ownership of
voting securities, by agreement or otherwise; provided that beneficial ownership of 10010 or more of the voting securities of a Person shall be deemed to be control. 

        "Applicable Procedures" means, with respect to any transfer or exchange of or for beneficial interests in any Global Warrant, the rules
and procedures of the Depositary. Euroclear and Cedelbank that apply to such transfer or exchange. 

        "Business Day" means any day other than a Legal Holiday. 

        "Cedelbank" means Cedelbank, a limited liability company (a societe anonyme) organized under Luxembourg law. 

        "Closing Date" means the date hereof. 

1

 

        "Commission" means the Securities and Exchange Commission. 

        "Definitive Warrants" means Warrants issued in definitive form and represented by a Warrant Certificate that does not bear the Global
Warrant Legend and that does not have the "Schedule of Exchanges of Interests in the Global Warrant" attached thereto. 

        "Depositary" means, with respect to the Warrants issuable or issued in whole or in part in global form, the Person specified in
Section 3.3 hereof as the Depositary with respect to the Warrants, and any and all successors thereto appointed as Depositary hereunder and having become such pursuant to the applicable
provision of the Indenture. 

        "Euroclear" means Morgan Guaranty Trust Company of New York, Brussels office, as operator of the Euroclear system. 

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

        "Global Warrants" means Warrants issued in global form and represented by a Warrant Certificate that bears the Global Warrant Legend and
that has the "Schedule of Exchanges of Interests in the Global Warrant" attached thereto, which is deposited with or on behalf of and registered in the name of the Depositary. 

        "Global Warrant Legend" means the legend set forth in Section 3.5(g)(ii), which is required to be placed on all Warrants issued in
global form under this Warrant Agreement. 

        "Holder" means a person who is listed as the record owner of a Warrant. 

        "Indenture" means the indenture, dated the date hereto between Merrill, the Guarantors that are party thereto and Norwest Bank Minnesota,
N.A., as trustee relating to the Notes. 

        "Indirect Participant" means a Person who holds a beneficial interest in a Global Warrant through a Participant. 

        "Initial Purchaser" means Donaldson, Lufkin" Jenrette Securities Corporation. 

        "Institutional Accredited Investor" means an institution that is an "accredited investor" as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act, which is not also a QIB. 

        "Legal Holiday" means a Saturday, a Sunday or a day on which banking institutions in the City of New York or the city in which the
principal corporate trust office or the Warrant Agent is located or at a place of payment are authorized by law, regulation or executive order to remain closed. If a payment date is a Legal Holiday at
a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such payment for the intervening period. 

        "Non-U.S. Person" means a Person who is not a U.S. Person. 

        "Officer" means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating
Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice-President of such Person. 

        "One-Year Restricted Period" means the one-year "distribution compliance period" as defined in Rule 902(f)
of Regulation S. 

        "Opinion of Counsel" means an opinion from legal counsel who is reasonably acceptable to the Warrant Agent in form and substance
reasonably acceptable to the Warrant Agent. The counsel may be an employee of or counsel to the Company, any subsidiary of the Company or the Warrant Agent. 

2

 

        "Participant" means, with respect to the Depositary, Euroclear or Cedelbank, a Person who has an account with the Depositary, Euroclear or
Cedelbank, respectively (and, with respect to The Depository Trust Company, shall include Euroclear and Cedelbank). 

        "Person" means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency or political subdivision thereof, including any subdivision or ongoing business of any such entity or substantially all of the assets of
any such entity, subdivision or business. 

        "Private Placement Legend" means the legend set forth in Section 3.5(g)(i) to be placed on all Warrants issued under this
Warrant Agreement except where otherwise permitted by the provisions of this Warrant Agreement. 

        "QIB" means a "qualified institutional buyer" as defined in Rule 144A. 

        "Regulation S" means Regulation S promulgated under the Securities Act. 

        "Regulation S Temporary Global Warrant" means a Global Warrant bearing the Private Placement Legend initially representing
beneficial interests in Warrants offered and sold in reliance on Regulation S. 

        "Regulation S Permanent Global Warrant" means a permanent Global Warrant issued in accordance with Section 3.1(d). 

        "Restricted Definitive Warrant" means a Definitive Warrant that bears the Private Placement Legend. 

        "Restricted Global Warrant" means a 144A Global Warrant or a Regulation S Temporary Global Warrant or both, as the context may
require. 

        "Rule 144" means Rule 144 promulgated under the Securities Act. 

        "Rule 144A" means Rule 144A promulgated under the Securities Act. 

        "Rule 903" means Rule 903 promulgated under the Securities Act 

        "Rule 904" means Rule 904 promulgated under the Securities Act. 

        "Securities Act" means the Securities Act of 1933, as amended. 

        "Separation Date" means the earliest of (i) 180 days after the closing of the Offering, (ii) the date on which a
registration statement with respect to a registered exchange offer for the Notes is declared effective under the Securities Act, (iii) the date a shelf registration statement with respect to
the Notes or the Warrants is declared effective under the Securities Act, (iv) such date as Donaldson, Lufkin & Jemeue Securities Corporation in its sole discretion shall determine and
(v) the date the Company gives
the notice required by the Indenture upon the occurrence of a Change of Control (as defined in the Indenture). 

        "Transfer Restricted Securities" shall mean (a) each Warrant and Warrant Share held by an Affiliate of the Company and
(b) each other Warrant and Warrant Share until the earlier to occur of (i) the date on which such Warrant or Warrant Share (other than any Warrant Share issued upon exercise of a Warrant
in accordance with a Registration Statement (as defined in the Warrant Registration Rights Agreement) has been disposed of in accordance with a Registration Statement and (ii) the date on which
such Warrant or Warrant Share (or the related Warrant) is distributed to the public pursuant to Rule 144 under the Act. 

        "Trustee" means the trustee under the Indenture. 

3

 

        "Unrestricted Global Warrant" means a Global Warrant that does not bear and is not required to bear the Private Placement Legend (other
than the Regulation S Permanent Global Warrant). 

        "Unrestricted Definitive Warrant" means a Definitive Warrant that does not bear and is not required to bear the Private Placement Legend. 

        "U.S. Person" means a U.S. person as defined in Rule 902(o) under the Securities Act. 

        "Warrant Certificate" means a certificate, in global or definitive form; substantially in the form of Exhibit A hereto,
representing Warrants. 

        "Warrant Registration Rights Agreement" means the registration rights agreement, dated as of November 23, 1999, between Merrill and
the Initial Purchaser relating to the Warrants and the Warrant Shares. 

        In
addition, as used herein, the "Company" shall refer to Viking prior to the effective time of the Merger and to Merrill from and after
the effective time of the Merger: "Common Stock" shall refer to Viking Common Shares prior to the effective time of the Merger and to Merrill Common
Stock from and after the effective time of the Merger; and "Warrant Shares" shall refer to Viking Warrant Shares
prior to the effective time of the Merger and to Merrill Warrant Shares from and after the effective time of the Merger. 

SECTION 2. APPOINTMENT OF WARRANT AGENT.  

        The Company hereby appoints the Warrant Agent to act as agent for the Company in accordance with the instructions set forth hereinafter in this Agreement and the
Warrant Agent hereby accepts such appointment. 

SECTION 3. ISSUANCE OF WARRANTS; WARRANT CERTIFICATES.  

3.1   FORM AND DATING.  

	(a)
	General.

        The
Warrants shall be issued substantially in the form of Exhibit A hereto. The Warrants may have notations, legends or endorsements required by law, stock exchange rule or usage.
Each Warrant shall be dated the date of the countersignature. 

        The
terms and provisions contained in the Warrants shall constitute, and are hereby expressly made, a part of this Warrant Agreement. The Company and the Warrant Agent, by their
execution and delivery of this Warrant Agreement, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Warrant conflicts with the express
provisions of this Warrant Agreement, the provisions of this Warrant Agreement shall govern and be controlling. 

	(b)
	Global Warrants.

        Global
Warrants shall be substantially in the form of Exhibit A attached hereto (including the Global Warrant Legend thereon and the "Schedule of Exchanges of Interests in the
Global Warrant" attached thereto). Each Global Warrant shall represent such of the outstanding Warrants as shall be specified therein and each shall provide that it shall represent the number of
outstanding Warrants from time to time endorsed thereon and that the number of outstanding Warrants represented thereby may from time to time be reduced or increased, as appropriate, to reflect
exchanges and redemptions. Any endorsement of a Global Warrant to reflect the amount of any increase or decrease in the number of outstanding Warrants represented thereby shall be made by the Warrant
Agent in accordance with instructions given by the Holder thereof as required by Section 3.5 hereof. 

4

 

	(c)
	144A Global Warrants.

        Warrants
initially offered and sold to QIBs in reliance on Rule 144A shall be issued initially in the form of 144A Global Warrants, which shall be deposited on behalf of the
purchasers of the Warrants represented thereby with the Warrant Agent, as custodian for the Depositary, and registered in the name of the Depositary or the nominee of the Depositary for credit to the
accounts of DTC's Participants, duly executed by the Company and countersigned by the Warrant Agent as hereinafter provided. 

	(d)
	Regulation S Temporary Global Warrants.

        Warrants
initially offered and sold in reliance on Regulation S shall be issued initially in the form of Regulation S Temporary Global Warrants, which shall be deposited on
behalf of the purchasers of the Warrants represented thereby with the Warrant Agent, as custodian for the Depositary, and registered in the name of the Depositary or the nominee of the Depositary for
the accounts of designated agents holding on behalf of Euroclear or Cedelbank, duly executed by the Company and countersigned by the Warrant Agent as hereinafter provided. 

        Within
a reasonable time period after the expiration of the One-Year Restricted Period, upon the receipt by the Warrant Agent of a written certificate from the Depositary,
together with copies of certificates from Euroclear and Cedelbank certifying that they have received certification of non-United States beneficial ownership of all Warrants represented by
the Regulation S Temporary Global Warrant (except to the extent of any beneficial owners thereof who acquired an interest therein during the One-Year Restricted Period pursuant to
another exemption from registration under the Securities Act and who will take delivery of a beneficial ownership interest in a 144A Global Note), the Company shall issue and the Warrant Agent shall
countersign as hereinafter provided a Regulation S Permanent Global Warrant representing a number of Warrants equal to the number of Warrants then represented by the Regulation S
Temporary Global Warrant, which shall be deposited with the Warrant Agent, as custodian for the Depositary, and registered in the name of the Depositary or the nominee of the Depositary, all pursuant
to the Applicable Procedures. Simultaneously with the countersignature of the Regulation S Permanent Global Warrant as described above, the Warrant Agent shall cancel the Regulation S
Temporary Global Warrant. 

        Until
the later of the termination of the One-Year Restricted Period and the provision of the certifications required as specified in the preceding paragraph, beneficial
interests in any Regulation S Temporary Global Warrant may be held only through Participants acting for and on behalf of Euroclear and Cedelbank. 

	(e)
	Euroclear and Cedelbank Procedures Applicable.

        The
provisions of the "Operating Procedures of the Euroclear System" and "Terms and Conditions Governing Use of Euroclear" and the "General Terms and Conditions of Cedelbank" and
"Customer Handbook" of Cedelbank shall be applicable to transfers of beneficial interests in the Regulation S Global Warrant that are held by Participants through Euroclear or Cedelbank. 

	(f)
	Definitive Warrants.

        Definitive
Warrants shall be substantially in the form of Exhibit A attached hereto (but without the Global Warrant Legend thereon and without the "Schedule of Exchanges of
Interests in the Global Warrant" attached thereto). 

3.2   EXECUTION.  

        An Officer shall sign the Warrants for the Company by manual or facsimile signature. 

5

 

        If
the Officer whose signature is on a Warrant no longer holds that office at the time a Warrant is countersigned, the Warrant shall nevertheless be valid. 

        A
Warrant shall not be valid until countersigned by the manual signature of the Warrant Agent. The signature shall be conclusive evidence that the Warrant has been properly issued under
this Warrant Agreement. 

        The
Warrant Agent shall, upon a written order of the Company signed by an Officer (a "Warrant Countersignature Order"), countersign
Warrants for original issue up to the number stated in the preamble hereto. 

        The
Warrant Agent may appoint an agent acceptable to the Company to countersign Warrants. Such an agent may countersign Warrants whenever the Warrant Agent may do so. Each reference in
this Warrant Agreement to a countersignature by the Warrant Agent includes a countersignature by such agent. Such an agent has the same rights as the Warrant Agent to deal with the Company or an
Affiliate of the Company. 

3.3   WARRANT REGISTRAR.  

        The Company shall maintain an office or agency where Warrants may be presented for registration of transfer or for exchange ("Warrant
Registrar"). The Warrant Registrar shall keep a register of the Warrants and of their transfer and exchange. The Company may appoint one or more co-Warrant
Registrars. The term "Warrant Registrar" includes any co-Warrant Registrar. The Company may change any Warrant Registrar without notice to any holder. The Company shall notify the Warrant
Agent in writing of the name and address of any agent not a party to this Warrant Agreement. If the Company fails to appoint or maintain another entity as Warrant Registrar, the Warrant Agent shall
act as such. The Company or any of its subsidiaries may act as Warrant Registrar. 

        The
Company initially appoints The Depository Trust Company ("DTC") to act as Depositary with respect to the Global Warrants. 

        The
Company initially appoints the Warrant Agent to act as the Warrant Registrar with respect to the Global Warrants. 

3.4   HOLDER LISTS.  

        The Warrant Agent shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of all Holders.
If the Warrant Agent is not the Warrant Registrar, the Company shall promptly furnish to the Warrant Agent at such times as the Warrant Agent may request in writing, a list in such form and as of such
date as the Warrant Agent may reasonably require of the names and addresses of the Holders. 

6

   3.5   TRANSFER AND EXCHANGE.  

	(a)
	Transfer and Exchange of Global Warrants.

        A
Global Warrant may not be transferred as a whole except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Warrants will be exchanged by the Company for Definitive Warrants
if (i) the Company delivers to the Warrant Agent notice from the Depositary that it is unwilling or unable to continue to act, as Depositary or that it is no longer a clearing agency registered
under the Exchange Act and, in either case, a successor Depositary is not appointed by the Company within 120 days after the date of such notice from the Depositary or (ii) the Company
in its sole discretion determines that the Global Warrants (in whole but not in part) should be exchanged for Definitive Warrants and delivers a written notice to such effect to the Warrant Agent.
Upon the occurrence of either of the preceding events in (i) or (ii) above, Definitive Warrants shall be issued in such names as the Depositary shall instruct the Warrant Agent. Global
Warrants also may be exchanged or replaced, in whole or in Part, as provided in Sections 3.6 and 3.7 hereof. A Global Warrant may not be exchanged for another Warrant other than as provided in this
Section 3.5(a), however, beneficial interests in a Global Warrant may be transferred and exchanged as provided in Section 3.5(b), (c) or (t) hereof. 

	(b)
	Transfer and Exchange of Beneficial Interests in the Global Warrants.

        The
transfer and exchange of beneficial interests in the Global Warrants shall be effected through the Depositary, in accordance with the provisions of this Warrant Agreement and the
Applicable Procedures. Beneficial interests in the Restricted Global Warrants shall be subject to restrictions on transfer comparable to those set forth herein to the extent required by the Securities
Act. Transfers of
beneficial interests in the Global Warrants also shall require compliance with either subparagraph (i) or (ii) below, as applicable, as well as one or more of the other following
subparagraphs, as applicable: 

        (i)    Transfer of Beneficial Interests in the Same Global Warrant. Beneficial interests in any Restricted Global Warrant may be
transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Warrant in accordance with the transfer restrictions set forth in the Private
Placement Legend. Beneficial interests in any Unrestricted Global Warrant may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Unrestricted Global
Warrant. No written orders or instructions shall be required to be delivered to the Warrant Registrar to effect the transfers described in this Section 3.5(b)(i). 

        (ii)   All Other Transfers and Exchanges of Beneficial Interests in Global Warrants. In connection with all transfers and
exchanges of beneficial interests in a Global Warrant that are not subject to Section 3.5(b)(i) above (other than an exchange of beneficial interests in the Regulation S Temporary
Global Warrant for beneficial interests in the Regulation S Permanent Global Warrant in accordance with Section 3.l(d)), the transferor of such beneficial interest must deliver to the
Warrant Registrar either (A) (1) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to
credit or cause to be credited a beneficial interest in another Global Warrant in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given in
accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase or (B) (1) a written order from a Participant or an Indirect
Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to cause to be issued a Definitive Warrant in an amount equal to the beneficial interest to be
transferred or exchanged and (2) instructions given by the Depositary to the Warrant Registrar containing 

7

 

information
regarding the Person in whose name such Definitive Warrant shall be registered; provided, however, that in no event shall Definitive Warrants be issued upon the transfer or exchange of
beneficial interests in the Regulation S Temporary Global Note prior to (x) the expiration of the One-Year Restricted Period and (y) the receipt by the Warrant
Registrar of any certificates required pursuant to Rule 903 under the Securities Act. Upon effectiveness of the Registration Statement (as defined in the Warrant Registration Rights Agreement)
in accordance with Section 3.5(f) hereof, the requirements of this Section 3.5(b)(ii) shall be deemed to have been satisfied upon receipt by the Warrant Registrar of a
certification required by the Company in connection with such Registration Statement delivered by the Holder of such beneficial interests in the Restricted Global Warrants. Upon satisfaction of all of
the requirements for transfer or exchange of beneficial interests in Global Warrants contained in this Agreement and the Warrants or otherwise applicable under the Securities Act, the Warrant Agent
shall adjust the principal amount of the relevant Global Warrant(s) pursuant to Section 3.5(h) hereof. 

        (iii)  Transfer of Beneficial Interests to Another Restricted Global Warrant. A beneficial interest in any Restricted Global
Warrant may be transferred to a Person who takes delivery thereof in the form of a
beneficial interest in another Restricted Global Warrant if the transfer complies with the requirements of Section 3.5(b)(ii) above and the Warrant Registrar receives the following: 

        (A)  if
the transferee will take delivery in the form of a beneficial interest in the 144A Global Warrant, then the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications in item (1) or (3) thereof; and 

        (B)  if
the transferee will take delivery in the form of a beneficial interest in the Regulation S Temporary Global Warrant, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof. 

        (iv)  Transfer and Exchange of Beneficial Interests in a Restricted Global Warrant for Beneficial Interests in the Unrestricted Global
Warrant. A beneficial interest in any Restricted Global Warrant may be exchanged by any holder thereof for a beneficial interest in an Unrestricted Global Warrant or
transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Warrant if the exchange or transfer complies with the requirements of
Section 3.5(b)(ii) above and: 

        (A)  such
transfer is effected pursuant to the Registration Statement in accordance with the Warrant Registration Rights Agreement; or 

        (B)  the
Warrant Registrar receives the following: 

        (1)   if
the holder of such beneficial interest in a Restricted Global Warrant proposes to exchange such beneficial interest for a beneficial interest in the Unrestricted
Global Warrant, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(a) thereof; or 

        (2)   if
the holder of such beneficial interest in a Restricted Global Warrant proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the
form of a beneficial interest in the Unrestricted Global Warrant, a certificate from such holder in the form of Exhibit 8 hereto, including the certifications in item (4) thereof; 

and,
in each such case set forth in this subparagraph (B), if the Warrant Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the
Warrant Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are
no longer required in order to maintain compliance with the Securities Act. 

8

 

        If
any such transfer is effected pursuant to subparagraph (B) above at a time when an Unrestricted Global Warrant has not yet been issued, the Company shall issue and, upon
receipt of an Warrant Countersignature Order in accordance with Section 3.2 hereof, the Warrant Agent shall countersign one or more Unrestricted Global Warrants in the number equal to the
number of beneficial interests transferred pursuant to subparagraph (B) above. 

	(c)
	Transfer and Exchange of Beneficial Interests for Definitive Warrants.

        (i)    Beneficial Interests in Restricted Global Warrants to Restricted Definitive Warrants. If any holder of a beneficial
interest in a Restricted Global Warrant proposes to exchange such beneficial interest for a Restricted Definitive Warrant or to transfer such beneficial interest to a Person who takes delivery thereof
in the form of a Restricted Definitive Warrant, then, upon receipt by the Warrant Registrar of the following documentation: 

        (A)  if
the holder of such beneficial interest in a Restricted Global Warrant proposes to exchange such beneficial interest for a Restricted Definitive Warrant, a certificate
from such holder in the form of Exhibit C hereto, including the certifications in item (2)(a) thereof; 

        (B)  if
such beneficial interest is being transferred to a QIB in accordance with Rule 144A under the Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (1) thereof; 

        (C)  if
such beneficial interest is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule 904 under
the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; 

        (D)  if
such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144
under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; 

        (E)  if
such beneficial interest is being transferred to an Institutional Accredited Investor in reliance on an exemption from the registration requirements of the Securities
Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications, certificates and
Opinion of Counsel required by item (3) thereof, if applicable: 

        (F)  if
such beneficial interest is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (3)(b) thereof; or 

        (G)  if
such beneficial interest is being transferred pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(c) thereof. 

the
Warrant Agent shall cause, in accordance with the standing instructions and procedures existing between the Depositary and the Warrant Agent, the number of Warrants represented by the Global
Warrant to be reduced by the number of Warrants to be represented by the Definitive Warrant pursuant to Section 3.5(h) hereof, and the Company shall execute and the Warrant Agent shall
countersign and deliver to the Person designated in the instructions a Definitive Warrant in the appropriate amount. Any Definitive Warrant issued in exchange for a beneficial interest in a Restricted
Global Warrant pursuant to this Section 3.5(c) shall be registered in such name or names as the holder of such beneficial interest shall instruct the Warrant Registrar through instructions from
the Depositary and the Participant or Indirect Participant. The Warrant Agent shall deliver such Definitive Warrants to the Persons in whose names such Warrants are so registered. Any Definitive
Warrant issued in exchange for a beneficial interest in a Restricted 

9

 

Global
Warrant pursuant to this Section 3.5(c)(i) shall bear the Private Placement Legend and shall be subject to all restrictions on transfer contained therein. 

        (ii)   Beneficial Interests in Restricted Global Warrants to Unrestricted Definitive Warrants. A holder of a beneficial
interest in a Restricted Global Warrant may exchange such beneficial interest for an Unrestricted Definitive Warrant or may transfer such beneficial interest to a Person who takes delivery thereof in
the form of an Unrestricted Definitive Warrant (but in the case of any transfer or exchange of a beneficial interest in the Regulation S Temporary Global Note, only after the expiration of the
One-Year Restricted Period), only if: 

        (A)  such
transfer is effected pursuant to the Registration Statement in accordance with the Warrant Registration Rights Agreement; or 

        (B)  the
Warrant Registrar receives the following: 

        (1)   if
the holder of such beneficial interest in a Restricted Global Warrant proposes to exchange such beneficial interest for a Definitive Warrant that does not bear the
Private Placement Legend, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (l)(b) thereof; or 

        (2)   if
the holder of such beneficial interest in a Restricted Global Warrant proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the
form of a Definitive Warrant that does not bear the Private Placement Legend, a certificate from such holder in the form of Exhibit B hereto, including the certifications in item
(4) thereof; 

and,
in each such case set forth in this subparagraph (B), if the Warrant Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the
Warrant Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are
no longer required in order to maintain compliance with the Securities Act. 

        (iii)  Beneficial Interests in Unrestricted Global Warrants or Regulation S Permanent Global Warrants to Unrestricted Definitive
Warrants. If any holder of a beneficial interest in an Unrestricted Global Warrant or Regulation S Permanent Global Warrant proposes to exchange such beneficial interest
for a Definitive Warrant or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Warrant, then, upon satisfaction of the conditions set forth in
Section 3.5(b)(ii) hereof, the Warrant Agent shall cause the amount of the applicable Global Warrant to be reduced accordingly pursuant to Section 3.5(h) hereof, and the Company
shall execute and the Warrant Agent shall countersign and deliver to the Person designated in the instructions a Definitive Warrant in the appropriate principal amount. Any Definitive Warrant issued
in exchange for a beneficial interest pursuant to this Section 3.5(c)(iii) shall be registered in such name or names and in such authorized denomination or denominations as the holder of
such beneficial interest shall instruct the Warrant Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Warrant Agent shall deliver such Definitive
Warrants to the Persons in whose names such Warrants are so registered. Any Definitive Warrant issued in exchange for a beneficial interest pursuant to this Section 3.5(c)(iii) shall not
bear the Private Placement Legend. 

	(d)
	Transfer and Exchange of Definitive Warrants for Beneficial Interests in Global Warrants.

        (i)    Restricted Definitive Warrants to Beneficial Interests in Restricted Global Warrants. If any Holder of a Restricted
Definitive Warrant proposes to exchange such Warrant for a beneficial interest in a Restricted Global Warrant or to transfer such Restricted Definitive Warrants to a 

10

 

Person
who takes delivery thereof in the form of a beneficial interest in a Restricted Global Warrant, then, upon receipt by the Warrant Registrar of the following documentation: 

        (A)  if
the Holder of such Restricted Definitive Warrant proposes to exchange such Warrant for a beneficial interest in a Restricted Global Warrant, a certificate from such
Holder in the form of Exhibit C hereto, including the certifications in item (2)(b) thereof; 

        (B)  if
such Restricted Definitive Warrant is being transferred to a QID in accordance with Rule 144A under the Securities Act, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (1) thereof; 

        (C)  if
such Restricted Definitive Warrant is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or
Rule 904 under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; 

        (D)  if
such Restricted Definitive Warrant is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with
Rule 144 under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; 

        (E)  if
such Restricted Definitive Warrant is being transferred to an Institutional Accredited Investor in reliance on an exemption from the registration requirements of the
Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if applicable; or 

        (F)  if
such Restricted Definitive Warrant is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof, 

the
Warrant Agent shall cancel the Restricted Definitive Warrant and increase or cause to be increased the amount of the appropriate Restricted Global Warrant. 

        (ii)   Restricted Definitive Warrants to Beneficial Interests in Unrestricted Global Warrants. A Holder of a Restricted
Definitive Warrant may exchange such Warrant for a beneficial interest in an Unrestricted Global Warrant or transfer such Restricted Definitive Warrant to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Warrant only if: 

        (A)  such
transfer is effected pursuant to the Registration Statement in accordance with the Registration Rights Agreement; or 

        (B)  the
Warrant Registrar receives the following: 

        (1)   if
the Holder of such Definitive Warrants proposes to exchange such Warrants for a beneficial interest in the Unrestricted Global Warrant, a certificate from such Holder
in the form of Exhibit C hereto, including the certifications in item (1)(c) thereof; or 

        (2)   if
the Holder of such Definitive Warrants proposes to transfer such Warrants to a Person who shall take delivery thereof in the form of a beneficial interest in the
Unrestricted Global Warrant, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 

and,
in each such case set forth in this subparagraph (D), if the Warrant Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably 

11

 

acceptable
to the Warrant Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with the Securities Act. 

Upon
satisfaction of the conditions of any of the subparagraphs in this Section 3.5(d)(ii), the Warrant Agent shall cancel the Definitive Warrants and increase or cause to be increased the
aggregate principal amount of the Unrestricted Global Warrant. 

        (iii)  Unrestricted Definitive Warrants to Beneficial Interests in Unrestricted Global Warrants. A Holder of an Unrestricted
Definitive Warrant may exchange such Warrant for a beneficial interest in an Unrestricted Global Warrant or transfer such Definitive Warrants to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Warrant at any time. Upon receipt of a request for
such an exchange or transfer, the Warrant Agent shall cancel the applicable Unrestricted Definitive Warrant and increase or cause to be increased the amount of one of the Unrestricted Global Warrants. 

If
any such exchange or transfer from a Definitive Warrant to a beneficial interest is effected pursuant to subparagraphs (ii)(B) or (iii) above at a time when an Unrestricted Global Warrant
has not yet been issued, the Company shall issue and, upon receipt of an Warrant Countersignature Order in accordance with Section 3.2 hereof, the Warrant Agent shall countersign one or more
Unrestricted Global Warrants in the number equal to the number of beneficial interests of Definitive Warrants so transferred. 

	(e)
	Transfer and Exchange of Definitive Warrants for Definitive Warrants.

        Upon
request by a Holder of Definitive Warrants and such Holder's compliance with the provisions of this Section 3.5(e), the Warrant Registrar shall register the transfer or
exchange of Definitive Warrants. Prior to such registration of transfer or exchange, the requesting Holder shall present or surrender to the Warrant Registrar the Definitive Warrants duly endorsed or
accompanied by a written instruction of transfer in form satisfactory to the Warrant Registrar duly executed by such Holder or by its attorney, duly authorized in writing. In addition, the requesting
Holder shall provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 3.5(e). 

        (i)    Restricted Definitive Warrants to Restricted Definitive Warrants. Any Restricted Definitive Warrant may be transferred to
and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Warrant if the Warrant Registrar receives the following: 

        (A)  if
the transfer will be made pursuant to Rule 144A under the Securities Act, then the transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (1) thereof; 

        (B)  if
the transfer will be made pursuant to Rule 903 or Rule 904, then the transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (2) thereof; or 

        (C)  if
the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof; if applicable. 

12

  

        (ii)   Restricted Definitive Warrants to Unrestricted Definitive Warrants. Any Restricted Definitive Warrant may be exchanged
by the Holder thereof for an Unrestricted Definitive Warrant or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Warrant if: 

        (A)  any
such transfer is effected pursuant to the Registration Statement in accordance with the Warrant Registration Rights Agreement; or 

        (B)  the
Warrant Registrar receives the following: 

        (1)   if
the Holder of such Restricted Definitive Warrants proposes to exchange such Warrants for an Unrestricted Definitive Warrant, a certificate from such Holder in the
form of Exhibit C hereto, including the certifications in item (1)(d) thereof; or 

        (2)   if
the Holder of such Restricted Definitive Warrants proposes to transfer such Warrants to a Person who shall take delivery thereof in the form of an Unrestricted
Definitive Warrant, a certificate from such Holder in the form of Exhibit 8 hereto, including the certifications in item (4) thereof; 

and,
in each such case set forth in this subparagraph (8), if the Warrant Registrar so requests, an Opinion of Counsel in form reasonably acceptable to the Company to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with
the Securities Act 

        (iii)  Unrestricted Definitive Warrants to Unrestricted Definitive Warrants. A Holder of Unrestricted Definitive Warrants may
transfer such Warrants to a Person who takes delivery thereof in the form of an Unrestricted Definitive Warrant. Upon receipt of a request to register such a transfer, the Warrant Registrar shall
register the Unrestricted Definitive Warrants pursuant to the instructions from the Holder thereof. 

	(f)
	Registration Statement.

        Upon
the effectiveness of the Registration Statement and sales of Warrants in connection therewith in accordance with the Warrant Registration Rights Agreement, the Company shall issue
and, upon receipt of a Warrant Countersignature Order in accordance with Section 3.2, the Warrant Agent shall countersign (i) one or more Unrestricted Global Warrants in an amount equal
to the amount of the beneficial interests in the Restricted Global Warrants sold under such Registration Statement and (ii) Definitive Warrants in an amount equal to the amount of the
beneficial interests of the Restricted Definitive Warrants sold under such Registration Statement Concurrently with the issuance of such Warrants, the Warrant Agent shall cause the amount of the
applicable Restricted Global Warrants to be reduced accordingly, and the Company shall execute and the Warrant Agent shall countersign and deliver to the Persons designated by the Holders of
Definitive Warrants so accepted Definitive Warrants in the appropriate amount. 

	(g)
	Legends.

        The
following legends shall appear on the face of all Global Warrants and Definitive Warrants issued under this Warrant Agreement unless specifically stated otherwise in the applicable
provisions of this Warrant Agreement. 

13

 

	(i)
	Private Placement Legend.

        (A)  Except
as permitted by subparagraph (B) below, each Global Warrant and each Definitive Warrant (and all Warrants issued in exchange therefor or substitution
thereof) shall bear the legend in substantially the following form: 

        "THIS
SECURITY (OR ITS PREDECESSOR) AND THE WARRANT SHARES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT, AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, UNITED STATES PERSONS, EXCEPT AS SET FORTH IN THE NEXT SENTENCE, BY ITS ACQUISITION HEREOF OR OF A
BENEFICIAL INTEREST HEREIN, THE HOLDER: 

        (1)   REPRESENTS
THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A "QIB"), (B) IT HAS ACQUIRED THIS SECURITY
IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A)(l),(2), (3) OR
(7) OF REGULATION D UNDER THE SECURITIES ACT) (AN "IAI"), 

        (2)   AGREES
THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO THE COMPANY OR ANY OF ITS SUBSIDIARIES, (B) TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C) IN AN OFFSHORE TRANSACTION MEETING THE
REQUIREMENTS OF RULE 903 OR RULE 904 OF REGULATION S OF THE SECURITIES ACT, (D) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (E) TO AN IAI THAT, PRIOR
TO SUCH TRANSFER, FURNISHES THE WARRANT AGENT A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS SECURITY (THE FORM OF WHICH CAN BE OBTAINED FROM THE
WARRANT AGENT) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PURCHASE AMOUNT OF LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT, (F) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY) OR
(G) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION. 

        (3)   AGREES
THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. 

        AS
USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" AND "UNITED STATES" HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE WARRANT AGREEMENT CONTAINS
A PROVISION REQUIRING THE WARRANT AGENT TO REFUSE TO REGISTER ANY TRANSFER OF THIS SECURITY IN VIOLATION OF THE FOREGOING." 

14

 

        (B)  Notwithstanding
the foregoing, any Global Warrant or Definitive Warrant issued pursuant to subparagraphs (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii),
(e)(iii) or (f) to this Section 3.5 (and all Warrants issued in exchange therefor or substitution thereof) shall not bear the Private Placement Legend. 

        (ii)   Global Warrant Legend. Each Global Warrant shall bear a legend in substantially the following form: 

        "THIS
GLOBAL WARRANT IS HELD BY THE DEPOSITARY (AS DEFINED IN THE WARRANT AGREEMENT GOVERNING THIS WARRANT) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND
IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE WARRANT AGENT MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 3.5 OF THE WARRANT AGREEMENT,
(II) THIS GLOBAL WARRANT MAYBE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 3.5(A) OF THE WARRANT AGREEMENT, (III) THIS GLOBAL WARRANT MAY BE DELIVERED TO THE WARRANT AGENT FOR
CANCELLATION PURSUANT TO SECTION 3.8 OF THE WARRANT AGREEMENT AND (IV) THIS GLOBAL WARRANT MAYBE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF [VIKING
MERGER SUB, INC.][MERRILL CORPORATION] (THE "COMPANY")." 

        (iii)  Unit Legend. Each Warrant issued prior to the Separation Date shall bear a legend in substantially the following form: 

        "THE
WARRANTS EVIDENCED BY THIS CERTIFICATE ARE INITIALLY ISSUED AS PART OF AN ISSUANCE OF UNITS (THE "UNITS"), EACH OF WHICH CONSIST OF $1,000 PRINCIPAL AMOUNT AT MATURITY OF THE 12%
SENIOR SUBORDINATED NOTES DUE 2009 (THE "NOTES") OF MERRILL CORPORATION AND ONE WARRANT (THE "WARRANTS") INITIALLY ENTITLING THE HOLDER THEREOF TO PURCHASE 1.22987 [COMMON SHARES, PAR
VALUE $0.01 PER SHARE, OF VIKING MERGER SUB. INC.] [SHARES, PAR VALUE $0.01 PER SHARE, OF MERRILL CORPORATION CLASS B COMMON STOCK] 

        PRIOR
TO THE EARLIEST TO OCCUR OF (I) 180 DAYS AFTER THE CLOSING OF THE OFFERING OF THE UNITS. (II) THE DATE ON WHICH A REGISTRATION STATEMENT WITH RESPECT TO A REGISTERED
EXCHANGE OFFER FOR THE NOTES IS DECLARED EFFECTIVE UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), (III) THE DATE A SHELF REGISTRATION STATEMENT WITH RESPECT TO THE NOTES
OR THE WARRANTS IS DECLARED EFFECTIVE UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), (IV) SUCH DATE AS DONALDSON, LUFKIN & JENRETTE SECURITIES
CORPORATION IN ITS SOLE DISCRETION SHALL DETERMINE AND (V) THE DATE ON WHICH THE ISSUER OF THE NOTES GIVES THE NOTICE REQUIRED BY THE INDENTURE GOVERNING THE NOTES UPON THE OCCURRENCE OF A
CHANGE OF CONTROL (AS DEFINED IN THE INDENTURE GOVERNING THE NOTES), THE WARRANTS EVIDENCED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED OR EXCHANGED SEPARATELY FROM, BUT MAYBE TRANSFERRED OR EXCHANGED
ONLY TOGETHER WITH, THE NOTES." 

15

 

	(h)
	Cancellation and/or Adjustment of Global Warrants.

        At
such time as all beneficial interests in a particular Global Warrant have been exercised or exchanged for Definitive Warrants or a particular Global Warrant has been exercised,
redeemed, repurchased or canceled in whole and not in part, each such Global Warrant shall be returned to or retained and canceled by the Warrant Agent in accordance with Section 3.8 hereof. At
any time prior to such cancellation, if any beneficial interest in a Global Warrant is exercised or exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial
interest in another Global Warrant or for Definitive Warrants, the amount of Warrants represented by such Global Warrant shall be reduced accordingly and an endorsement shall be made on such Global
Warrant by the Warrant Agent or by the Depositary at the direction of the Warrant Agent to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who
will take delivery thereof in the form of a beneficial interest in another Global Warrant, such other Global Warrant shall be increased accordingly and an endorsement shall be made on such Global
Warrant by the Warrant Agent or by the Depositary at the direction of the Warrant Agent to reflect such increase. 

	(i)
	General Provisions Relating to Transfers and Exchanges.

        (i)    To
permit registrations of transfers and exchanges, the Company shall execute and the Warrant Agent shall countersign Global Warrants and Definitive Warrants upon the
Company's order or at the Warrant Registrar's request. 

        (ii)   No
Service charge shall be made to a holder of a beneficial interest in a Global Warrant or to a holder of a Definitive Warrant for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith. 

        (iii)  All
Global Warrants and Definitive Warrants issued upon any registration of transfer or exchange of Global Warrants or Definitive Warrants shall be the duly
authorized, executed and issued warrants for Common Stock of the Company, not subject to any preemptive rights, and entitled to the same benefits under this Warrant Agreement as the Global Warrants or
Definitive Warrants surrendered upon such registration of transfer or exchange. 

        (iv)  Prior
to due presentment for the registration of a transfer of any Warrant, the Warrant Agent, and the Company may deem and treat the Person in whose name any Warrant
is registered as the absolute owner of such Warrant for all purposes and none of the Warrant Agent, or the Company shall be affected by notice to the contrary. 

        (v)   The
Warrant Agent shall countersign Global Warrants and Definitive Warrants in accordance with the provisions of Section 3.2 hereof. 

	(j)
	Facsimile Submissions to Warrant Agent.

        All
certifications, certificates and Opinions of Counsel required to be submitted to the Warrant Registrar pursuant to this Section 3.5 to effect a registration of transfer or
exchange may be submitted by facsimile. 

        Notwithstanding
anything herein to the contrary, as to any certificates and/or certifications delivered to the Warrant Registrar pursuant to this Section 3.5, the Warrant
Registrar's duties shall be limited to confirming that any such certifications and certificates delivered to it are in the form of Exhibits B and C attached hereto. The Warrant Registrar shall not be
responsible for confirming the truth or accuracy of representations made in any such certifications or certificates. As to any Opinions of Counsel delivered pursuant to this Section 3.5, the
Warrant Registrar may rely upon, and be fully protected in relying upon, such opinions. 

16

 

3.6   REPLACEMENT WARRANTS.  

        If any mutilated Warrant is surrendered to the Warrant Agent or the Company and the Warrant Agent receives evidence to its satisfaction of the destruction, loss
or theft of any Warrant, the Company shall issue and the Warrant Agent, upon receipt of a Warrant Countersignature Order, shall countersign a replacement Warrant if the Warrant Agent's requirements
are met. If required by the Warrant Agent or the Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Warrant Agent and the Company to protect the
Company, the Warrant Agent, any Agent and any agent for purposes of the countersignature from any loss that any of them may suffer if a Warrant is replaced. The Company may charge for its expenses in
replacing a Warrant. 

        Every
replacement Warrant is an additional warrant of the Company and shall be entitled to all of the benefits of this Warrant Agreement equally and proportionately with all other
Warrants duly issued hereunder. 

3.7   TEMPORARY WARRANTS.  

        Until certificates representing Warrants are ready for delivery, the Company may prepare and the Warrant Agent, upon receipt of a Warrant Countersignature Order,
shall issue temporary Warrants. Temporary Warrants shall be substantially in the form of certificated Warrants but may have variations that the Company considers appropriate for temporary Warrants and
as shall be reasonably acceptable to the Warrant Agent. Without unreasonable delay, the Company shall prepare and the Warrant Agent, as soon as practicable upon receipt of the written order of the
Company signed by an officer of the Company, shall countersign definitive Warrants in exchange for temporary Warrants. 

        Holders
of temporary Warrants shall be entitled to all of the benefits of this Warrant Agreement. 

3.8   CANCELLATION.  

        Subject to Section 3.5(h) hereof, the Company at any time may deliver Warrants to the Warrant Agent for cancellation. The Warrant Registrar and Warrant
Paying Agent shall forward to the Warrant Agent any Warrants surrendered to them for registration of transfer, exchange or exercise. The Warrant Agent and no one else shall cancel all Warrants
surrendered for registration of transfer, exchange, exercise, replacement or cancellation and shall destroy canceled Warrants (subject to the record retention requirement of the Exchange Act).
Certification of the destruction of all canceled Warrants shall be
delivered to the Company. The Company may not issue new Warrants to replace Warrants that have been exercised or that have been delivered to the Warrant Agent for cancellation. 

SECTION 4. SEPARATION OF WARRANTS; TERMS OF WARRANTS; EXERCISE OF WARRANTS.  

        (a)   The
Notes and Warrants will not be separately transferable until the Separation Date. Subject to the terms of this Agreement, each Warrant holder shall have the right,
which may be exercised during the period commencing at the opening of business on November 1,2001 and until 5:00 p.m., New York City time on May 1,2009 (the  "Exercise Period"), to receive
from the Company the number of fully paid and nonassessable Warrant Shares which the holder may at the time be entitled
to receive on exercise of such Warrants and payment of the exercise price (the "Exercise Price") (i) by tendering Notes having an aggregate
principal amount at maturity, plus accrued and unpaid interest, if any thereon to the date of exercise or (ii) in cash, by wire transfer or by certified or official check payable to the order
of the Company, in each case, equal to the Exercise Price then in effect for such Warrant Shares; provided that holders shall be able to exercise their Warrants only if a registration statement
relating to the Warrant Shares is then in effect, or the exercise of such Warrants is exempt from the registration requirements of the Securities Act of 1933, as amended (the
"Securities Act"), and such securities are qualified for sale or exempt from qualification under the applicable securities laws of the states in which
the various holders of the Warrants or other persons to whom it is proposed that the 

17

 

Warrant
Shares be issued on exercise of the Warrants reside. Each Warrant not exercised prior to 5:00 p.m., New York City time, on May 1, 2009 (the "Expiration
Date") shall become void and all rights thereunder and all rights in respect thereof under this agreement shall cease as of such time. No adjustments as to dividends will be
made upon exercise of the Warrants. 

        (b)   In
order to exercise Warrants, the holder thereof must (i) deliver to the Warrant Agent at its corporate trust office set forth in Section 15 hereof
(x) in the case of Warrants represented by a Definitive Warrant, the relevant Warrant Certificate and the form of election to purchase on the reverse thereof which is set forth in the form of
Warrant Certificate attached hereto as Exhibit A, duly filled in and signed, which signature shall be medallion guaranteed by an institution which is a member of a Securities Transfer
Association recognized signature guarantee program and (y) in the case of Warrants represented by a Global Warrant, such customary documentation as the Warrant Agent and the Company may require
and (ii) pay to the Warrant Agent for the account of the Company the Exercise Price, as adjusted as herein provided, for the number of Warrant Shares in respect of which such Warrants are then
exercised, which payment shall be made (x) in cash, by wire transfer or by certified or official bank check payable to the order of the Company or (y) by tendering Notes in the manner
provided in Section 4(a) hereof. 

        (c)   Subject
to the provisions of Section 5 hereof, upon compliance with clause (b) above, the Warrant Agent shall deliver or cause to be delivered with all
reasonable dispatch, to or upon the written order of the holder and in such name or names as the Warrant holder may designate, a certificate or certificates for the number of whole Warrant Shares
issuable upon the exercise of such Warrants or other securities or property to which such holder is entitled hereunder, together with cash as provided in Section 9 hereof; provided that if any
consolidation, merger or lease or sale of assets is proposed to be effected by the Company as described in Section 8(m) hereof, or a tender offer or an exchange offer for shares of Common Stock
shall be made, upon such surrender of Warrants and payment of the Exercise Price as aforesaid, the Warrant Agent shall, as soon as possible, but in any event not later than two business days
thereafter, deliver or cause to be delivered the full number of Warrant Shares issuable upon the exercise of such Warrants in the manner described in this sentence or other securities or property to
which such holder is entitled hereunder, together with cash as provided in Section 9 hereof. Such certificate or certificates shall be deemed to have been issued and any person so designated to
be named therein shall be deemed to have become a holder of record of such Warrant Shares as of the date of the surrender of such Warrants and payment of the Exercise Price. 

        (d)   The
Warrants shall be exercisable, at the election of the holders thereof, either in full or from time to time in part. If less than all the Warrants represented by a
Warrant Certificate are exercised, such Warrant Certificate shall be surrendered and a new Warrant Certificate of the same tenor and for the number of Warrants which were not exercised shall be
executed by the Company and delivered to the Warrant Agent and the Warrant Agent shall countersign the new Warrant Certificate, registered in such name or names as may be directed in writing by the
holder, and shall deliver the new Warrant Certificate to the Person or Persons entitled to receive the same. 

        (e)   All
Warrant Certificates surrendered upon exercise of Warrants shall be cancelled by the Warrant Agent Such cancelled Warrant Certificates shall then be disposed of by
the Warrant Agent in accordance with its standard practices. The Warrant Agent shall account promptly to the Company with respect to Warrants exercised and concurrently pay to the Company all monies
received by the Warrant Agent for the purchase of the Warrant Shares through the exercise of such Warrants. 

        (f)    The
Warrant Agent shall keep copies of this Agreement and any notices given or received hereunder available for inspection by the holders during normal business hours at
its office. The Company shall supply the Warrant Agent from time to time with such numbers of copies of this Agreement as the Warrant Agent may request. 

18

   SECTION 5. PAYMENT OF TAXES.  

        The Company will pay all documentary stamp taxes attributable to the initial issuance of Warrant Shares upon the exercise of Warrants; provided that the Company
shall not be required to pay any tax or taxes which may be payable in respect of any transfer involved in the issue of any Warrant Certificates or any certificates for Warrant Shares in a name other
than that of the registered holder of a Warrant Certificate surrendered upon the exercise of a Warrant, and the Company shall not be required to issue or deliver such Warrant Certificates unless or
until the person or persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been
paid. 

SECTION 6. RESERVATION OF WARRANT SHARES.  

        (a)   The
Company will at all times reserve and keep available, free from preemptive rights, out of the aggregate of its authorized but unissued Common Stock, for the purpose
of enabling it to satisfy any obligation to issue Warrant Shares upon exercise of Warrants, the maximum number of shares of Common Stock which may then be deliverable upon the exercise of all
outstanding Warrants. 

        (b)   The
Company or, if appointed, he transfer agent for the Common Stock (the "Transfer Agent") and every subsequent transfer
agent for any shares of the Company's capital stock issuable upon the exercise of any of the rights of purchase aforesaid will be irrevocably authorized and directed at all times to reserve such
number of authorized shares as shall be required for such purpose. The Company will keep a copy of this Agreement on file with the Transfer Agent and with every subsequent transfer agent for any
shares of the Company's capital stock issuable upon the exercise of the rights of purchase represented by the Warrants. The Warrant Agent is hereby irrevocably authorized to requisition from time to
time from such Transfer Agent the stock certificates required to honor outstanding Warrants upon exercise thereof in accordance with the terms of this Agreement. The Company will supply such Transfer
Agent with duly executed certificates for such purposes and will provide or otherwise make available any cash which may be payable as provided in Section 9 hereof. The Company will furnish such
Transfer Agent a copy of all notices of adjustments, and certificates related thereto, transmitted to each holder pursuant to Section 11 hereof. 

        (c)   Before
taking any action which would cause an adjustment pursuant to Section 8 hereof to reduce the Exercise Price below the then par value (if any) of the
Warrant Shares, the Company will take any corporate action which may, in the opinion of its counsel (which may be counsel employed by the Company), be necessary in order that the Company may validly
and legally issue fully paid and nonassessable Warrant Shares at the Exercise Price as so adjusted. 

        (d)   The
Company covenants that all Warrant Shares which may be issued upon exercise of Warrants will, upon issue, be fully paid, nonassessable, free of preemptive rights and
free from all taxes, liens, charges and security interests with respect to the issuance thereof. 

SECTION 7. OBTAINING STOCK EXCHANGE LISTINGS.  

        The Company will from time to time take all action which may be necessary so that the Warrant Shares, immediately upon their issuance upon the exercise of
Warrants, will be listed on the principal securities exchanges, automated quotation systems or other markets within the United States of America, if any, on which other shares of Common Stock are then
listed, if any. 

SECTION 8. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES ISSUABLE.  

        The Exercise Price and the number of Warrant Shares issuable upon the exercise of each Warrant are subject to adjustment from time to time upon the occurrence of
the events enumerated in this 

19

 

Section 8.
For purposes of this Section 8, "Common Stock" means shares now or hereafter authorized of any class of common stock of the
Company and any other stock of the Company, however designated, that has the right (subject to any prior rights of any class or series of preferred stock) to participate in any distribution of the
assets or earnings of the Company without limit as to per share amount. 

	(a)
	Adjustment for Change in Capital Stock.

        If
the Company (i) pays a dividend or makes a distribution on its Common Stock in shares of its Common Stock, (ii) subdivides its outstanding shares of Common Stock into a
greater number of shares, (iii) combines its outstanding shares of Common Stock into a smaller number of shares, (iv) makes a distribution on its Common Stock in shares of its capital
stock other than Common Stock or (v) issues by reclassification of its Common Stock any shares of its capital stock, then the Exercise Price in effect immediately prior to such action shall be
proportionately adjusted so that the holder of any Warrant thereafter exercised may receive the aggregate number and kind of shares of capital stock of the Company which he would have owned
immediately following such action if such Warrant had been exercised immediately prior to such action. 

        The
adjustment shall become effective immediately after the record date in the case of a dividend or distribution and immediately after the effective date in the case of a subdivision,
combination or reclassification. If, after an adjustment, a holder of a Warrant upon exercise of it may receive shares of two or more classes of capital stock of the Company, the Company shall
determine, in good faith, the allocation of the adjusted Exercise Price between the classes of capital stock. After such allocation, the exercise privilege and the Exercise Price of each class of
capital stock shall thereafter be subject to adjustment on terms comparable to those applicable to Common Stock in this Section 8. Such adjustment shall be made successively whenever any event
listed above shall occur. 

	(b)
	Adjustment for Rights Issue.

        If
the Company distributes any rights, options or warrants to all holders of its Common Stock entitling them for a period expiring within 45 days after the record date mentioned
below to purchase shares of Common Stock at a price per share less than the Fair Value (as defined herein) per share on that record date, the Exercise Price shall be adjusted in accordance with the
formula: 

	 	 	 	 	O  +  N  ×  P

	 	 	E'  =  	 	E  ×  M

	 	 	 	 	O  +  N

where:

	 	 	E'	 	=	 	the adjusted Exercise Price.
	

 	
 	

E	
 	

=	
 	

the current Exercise Price.
	

 	
 	

O	
 	

=	
 	

the number of shares of Common Stock outstanding on the record date.
	

 	
 	

N	
 	

=	
 	

the number of additional shares of Common Stock issued pursuant to such rights, options or warrants.
	

 	
 	

P	
 	

=	
 	

the aggregate price per share of the additional shares.
	

 	
 	

M	
 	

=	
 	

the Fair Value per share of Common Stock on the record date.

        The
adjustment shall be made successively whenever any such rights, options or warrants are issued and shall become effective immediately after the record date for the determination of
stockholders entitled to receive the rights, options or warrants. If at the end of the period during which such rights, options or warrants are exercisable, not all rights, options or warrants shall
have been 

20

 

exercised,
the Exercise Price shall be immediately readjusted to what it would have been if UN" in the above formula had been the number of shares actually issued. 

	(c)
	Adjustment for Other Distributions.

        If
the Company distributes to all holders of its Common Stock any of its assets or debt securities or any rights or warrants to purchase debt securities of the Company, the Exercise
Price shall be adjusted in accordance with the formula: 

	

 	
 	

E'  =    E    x	
 	

M-F
 M

where:

	

 	
 	

E'	
 	

=	
 	

the adjusted Exercise Price.
	

 	
 	

E	
 	

=	
 	

the current Exercise Price.
	

 	
 	

M	
 	

=	
 	

the Fair Value per share of Common Stock on the record date mentioned below.
	

 	
 	

F	
 	

=	
 	

the fair market value on the record date of the assets, securities, rights or warrants to be distributed in respect of one share of Common Stock as determined in good faith by the Board of Directors of the Company (the "Board of
Directors").

        The
adjustment shall be made successively whenever any such distribution is made and shall become effective immediately after the record date for the determination of stockholders
entitled to receive the distribution. 

        This
Section 8(c) does not apply to cash dividends or cash distributions paid out of consolidated current or retained earnings as shown on the books of the Company prepared in
accordance with generally accepted accounting principles. Also, this Section S(c) does not apply to rights, options or warrants referred to in Section 8(b) hereof. 

	(d)
	Adjustment/or Common Stock Issue.

        If
the Company issues shares of Common Stock for a consideration per share less than the Fair Value per share on the date the Company fixes the offering price of such additional shares,
the Exercise Price shall be adjusted in accordance with the formula: 

	

 	
 	

 	
 	

P
	

 	
 	

E'  =  E  ×	
 	

O  +  M
 A

where:

	

 	
 	

E'	
 	

=	
 	

the adjusted Exercise Price.
	

 	
 	

E	
 	

=	
 	

the then current Exercise Price.
	

 	
 	

O	
 	

=	
 	

the number of shares outstanding immediately prior to the issuance of such additional shares.
	

 	
 	

P	
 	

=	
 	

the aggregate consideration received for the issuance of such additional shares.
	

 	
 	

M	
 	

=	
 	

the Fair Value per share on the date of issuance of such additional shares.
	

 	
 	

A	
 	

=	
 	

the number of shares outstanding immediately after the issuance of such additional shares.

21

 

        The
adjustment shall be made successively whenever any such issuance is made, and shall become effective immediately after such issuance. 

        This
subsection (d) does not apply to: 

        (1)   any
of the transactions described in subsections (a), (b) and (c) of this Section 8, 

        (2)   the
exercise of Warrants, or the conversion or exchange of other securities convertible or exchangeable for Common Stock the issuance of which caused an adjustment to be
made under Section 8(e), 

        (3)   Common
Stock issued to the Company's employees, independent contractors or directors (or employees, independent contractors or directors of its subsidiaries) under bona
fide employee benefit plans adopted by the Board of Directors and approved by the holders of Common Stock when required by law, if such Common Stock would otherwise be covered by this subsection
(d) (but only to the extent that the aggregate number of shares excluded hereby and issued after the date of this Warrant Agreement shall not exceed 5% of the Common Stock outstanding at the
time of the adoption of each such plan, exclusive of anti-dilution adjustments thereunder), 

        (4)   Common
Stock issued to shareholders of any person which merges into the Company, or with a subsidiary of the Company, in proportion to their stock holdings of such
person immediately prior to such merger, upon such merger, provided that if such person is an Affiliate of the Company, the Board of Directors shall have obtained a fairness opinion from a nationally
recognized investment banking, appraisal or valuation firm, which is not an Affiliate of the Company, stating that the consideration received in such merger is fair to the Company from a financial
point of view, 

        (5)   the
issuance of shares of Common Stock pursuant to rights, options or warrants which were originally issued in a Non-Affiliate Sale (as defined below)
together with one or more other securities as part of a unit at a price per unit or 

        (6)   Common
Stock issued to employees, independent contractors or directors of the Company and any of its Restricted Subsidiaries (as defined in the Indenture) within six
months of the Closing Date. 

	(e)
	Adjustment for Convertible Securities Issue.

        If
the Company issues any securities convertible into or exchangeable for Common Stock (other than securities issued in transactions described in subsections (a), (b) and
(c) of this Section 8) for a consideration per share of Common Stock initially deliverable upon conversion or exchange of such securities less than the Fair Value per share on the date
of issuance of such securities, the Exercise Price shall be adjusted in accordance with this formula: 

	

 	
 	

 	
 	

P
	

 	
 	

O  +	
 	

M

	

 	
 	

E'  =  E  ×	
 	

            

	

 	
 	

 	
 	

O  +  D

22

 

where:

	

 	
 	

E'	
 	

=	
 	

the adjusted Exercise Price.
	

 	
 	

E	
 	

=	
 	

the then current Exercise Price.
	

 	
 	

O	
 	

=	
 	

the number of shares outstanding immediately prior to the issuance of such securities.
	

 	
 	

P	
 	

=	
 	

the aggregate consideration received for the issuance of such securities.
	

 	
 	

M	
 	

=	
 	

the Fair Value per share on the date of issuance of such securities.
	

 	
 	

D	
 	

=	
 	

the maximum number of shares deliverable upon conversion or in exchange for such securities at the initial conversion or exchange rate.

The
adjustment shall be made successively whenever any such issuance is made, and shall become effective immediately after such issuance. 

        If
all of the Common Stock deliverable upon conversion or exchange of such securities have not been issued when such securities are no longer outstanding, then the Exercise Price shall
promptly be readjusted to the Exercise Price which would then be in effect had the adjustment upon the issuance of such securities been made on the basis of the actual number of shares of Common Stock
issued upon conversion or exchange of such securities. 

        This
subsection (e) does not apply to: 

        (1)   convertible
securities issued to shareholders of any person which merges into the Company, or with a subsidiary of the Company, in proportion to their stock holdings of
such person immediately prior to such merger, upon such merger, provided that if such person is an Affiliate of the Company, the Board of Directors shall have obtained a fairness opinion from a
nationally recognized investment banking,
appraisal or valuation firm, which is not an Affiliate of the Company, stating that the consideration received in such merger is fair to the Company from a financial point of view or 

        (2)   options
to purchase Common Stock issued to employees, independent contractors or directors of the Company and any of its Restricted Subsidiaries (as defined in the
Indenture) within six months of the Closing Date. 

	(f)
	Consideration Received.

        For
purposes of any computation respecting consideration received pursuant to subsections (d), and (e) of this Section 8, the following shall apply: 

        (1)   in
the case of the issuance of shares of Common Stock for cash, the consideration shall be the amount of such cash, provided that in no case shall any deduction be made
for any commissions, discounts or other expenses incurred by the Company for any underwriting of the issue or otherwise in connection therewith; 

        (2)   in
the case of the issuance of shares of Common Stock for a consideration in whole or in part other than cash, the consideration other than cash shall be deemed to be
the fair market value thereof as determined in good faith by the Board of Directors (irrespective of the accounting treatment thereof), whose determination shall be conclusive, and described in a
Board resolution which shall be filed with the Warrant Agent; 

        (3)   in
the case of the issuance of securities convertible into or exchangeable for shares, the aggregate consideration received therefor shall be deemed to be the
consideration received by the Company for the issuance of such securities plus the additional minimum consideration, if any, to be received by the Company upon the conversion or exchange thereof 

23

 

(the
consideration in each case to be determined in the same manner as provided in clauses (1) and (2) of this subsection); and 

        (4)   in
the case of the issuance of shares of Common Stock pursuant to rights, options or warrants which rights, options or warrants were originally issued together with one
or more other securities as part of a unit at a price per unit the consideration shall be deemed to be the fair value of such rights, options or
warrants at the time of issuance thereof as determined in good faith by the Board of Directors whose determination shall be conclusive and described in a Board resolution which shall be filed with the
Warrant Agent plus the additional minimum consideration, if any, to be received by the Company upon the exercise, conversion or exchange thereof (as determined in the same manner as provided in
clauses (1) and (2) of this subsection). 

	(g)
	Fair Value.

        In
Sections 8(d) and (e) hereof, the "Fair Value" per security at any date of determination shall be (1) in connection with a sale by the Company to a party that is not an
Affiliate of the Company in an arm's-length transaction (a "Non-Affiliate Sale"), the price per security at which such security is sold and
(2) in connection with any sale by the Company to an Affiliate of the Company, (a) the last price per security at which such security was sold in a Non-Affiliate Sale within
the three-month period preceding such date of determination (it being understood that the sale of Common Stock of the Company to DLJ Merchant Banking Partners II, L.P. and its Affiliates on
November 23, 1999 was a sale to a party not then an Affiliate of the Company and therefore a Non-Affiliate Sale) or (b) if clause (a) is not applicable, the fair
market value of such security determined in good faith by (i) a majority of the Board of Directors, including a majority of the Disinterested Directors, and approved in a Board resolution
delivered to the Warrant Agent or (ii) a nationally recognized investment banking, appraisal or valuation firm, which is not an Affiliate of the Company, in each case, taking into account,
among all other factors deemed relevant by the Board of Directors or such investment banking, appraisal or valuation firm, the trading price and volume of such security on any national securities
exchange or automated quotation system on which such security is traded. Notwithstanding the foregoing, any sale to Donaldson, Lufkin & Jenrette Securities Corporation (or any successor
thereto) pursuant to an underwritten public offering registered under the Securities Act shall be deemed to be and treated as a Non-Affiliate Sale. 

        In
Sections 8{b) and (c) and Section 9 hereof, the "Fair Value" per security at any date of determination shall be (a) the last price per security at which such
security was sold by the Company in a Non-Affiliate Sale within the three-month period preceding such date of determination or (b) if clause (a) is not applicable, the fair
market value of such security determined in good faith by (i) a majority of the Board of Directors, including a majority of the Disinterested Directors, and approved in a Board resolution
delivered to the Warrant Agent or (ii) a nationally recognized investment banking, appraisal or valuation form, which is not an Affiliate of the Company, in each case, taking into account,
among all other factors deemed relevant by the Board of Directors or such investment banking, appraisal or valuation form, the trading price and volume of such security on any national securities
exchange or automated quotation system on which such security is traded. 

        For
purposes of this Section 8(g), "Disinterested Director" means, in connection with any issuance of securities that gives rise to a determination of the Fair Value thereof, each
member of the Board of Directors who is not an officer, employee, director or other Affiliate of the party to whom the Company is proposing to issue the securities giving rise to such determination. 

        For
purposes of this Section 8(g), "Affiliate" of any specified Person means (A) any other Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person and (B) any director, officer or employee of such specified person. For purposes of this definition
"control" (including, with correlative meanings, the terms "controlling,"
"controlled by" and "under common control with") as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise. 

24

  

	(h)
	When De Minimis Adjustment May Be Deferred.

        No
adjustment in the Exercise Price need be made unless the adjustment would require an increase or decrease of at least I % in the Exercise Price. Any adjustments that are not made
shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 8 shall be made to the nearest cent or to the nearest
1/10,000th of a share, as the case may be, it being understood that no such rounding shall be made under subsection (p). 

	(i)
	When No Adjustment Required.

        No
adjustment need be made for a transaction referred to Section 8(a), (b), (c), (d), (e) or (f) hereof, if Warrant holders are to participate (without being
required to exercise their Warrants) in the transaction on a basis and with notice that the Board of Directors determines to be fair and appropriate in light of the basis and notice on which holders
of Common Stock participate in the transaction. No adjustment need be made for (i) rights to purchase Common Stock pursuant to a Company plan for reinvestment of dividends or interest,
(ii) a change in the par value or no par value of the Common Stock or (iii) the issuance by the Company of warrants in connection with the Company's 14.5% Senior Preferred Stock due 2011
on or about November 23, 1999 or upon the exercise of such warrants. To the extent the Warrants become convertible into cash, no adjustment need be made thereafter as to the cash. Interest will
not accrue on the cash. 

	(j)
	Notice of Adjustment.

        Whenever
the Exercise Price is adjusted, the Company shall provide the notices required by Section 10 hereof. 

	(k)
	Notice of Certain Transactions.

        If
(i) the Company takes any action that would require an adjustment in the Exercise Price pursuant to Section 8(a), (b), (c), (d), (e) or (f) hereof and if
the Company does not arrange for Warrant holders to participate pursuant to Section 8(i) hereof, (ii) the Company takes any action that would require a supplemental Warrant
Agreement pursuant to Section 8(1) hereof or (iii) there is a liquidation or dissolution of the Company, then the Company shall mail to Warrant holders a notice stating the proposed
record date for a dividend or distribution or the proposed effective date of a subdivision, combination, reclassification, consolidation, merger, transfer, lease, liquidation or dissolution. The
Company shall mail the notice at least IS days before such date. Failure to mail the notice or any defect in it shall not affect the validity of the transaction. 

	(l)
	Reorganization of Company.

        Immediately
after the date hereof, if the Company consolidates or merges with or into, or transfers or leases all or substantially all its assets to, any person, upon consummation of
such transaction the Warrants shall automatically become exercisable for the kind and amount of securities, cash or other assets which the holder of a Warrant would have owned immediately after the
consolidation, merger, transfer or lease if the holder had exercised the Warrant immediately before the effective date of the transaction. Concurrently with the consummation of such transaction, the
corporation formed by or surviving any such consolidation or merger if other than the Company, or the person to which such sale or conveyance shall have been made, shall enter into (i) a
supplemental Warrant Agreement so providing and further providing for adjustments which shall be as nearly equivalent as may be practical to the adjustments provided for in this Section 8(1)
and (ii) a supplement to the Warrant Registration Rights Agreement providing for the assumption of the Company's obligations thereunder. The successor Company shall mail to Warrant holders a
notice describing the supplemental Warrant Agreement and Warrant Registration Rights Agreement If the issuer of securities deliverable upon exercise of Warrants under the supplemental Warrant
Agreement is an affiliate of the formed, surviving, transferee or lessee corporation, that issuer shall join in the supplemental Warrant 

25

 

Agreement
and Warrant Registration Rights Agreement. If this Section 8(1) applies, Sections 8(a), (b), (c), (d), (e) and (1) hereof do not apply. 

	(m)
	Company Determination Final.

        Any
determination that the Company or the Board of Directors must make pursuant to Section 8(a), (c), (d), (e), (1), (g), (h) or (i) hereof is conclusive. 

	(n)
	Warrant Agent's Disclaimer.

        The
Warrant Agent has no duty to determine when an adjustment under this Section 8 should be made, how it should be made or what it should be. The Warrant Agent has no duty to
determine whether any provisions of a supplemental Warrant Agreement under Section 8(1) hereof are correct. The Warrant Agent makes no representation as to the validity or value of any
securities or assets issued upon exercise of Warrants. The Warrant Agent shall not be possible for the Company's failure to comply with this Section 8. 

	(o)
	When Issuance or Payment May Be Deferred.

        In
any case in which this Section 8 shall require that an adjustment in the Exercise Price be made effective as of a record date for a specified event, the Company may elect to
defer until the occurrence of such event (i) issuing to the holder of any Warrant exercised after such record date the Warrant Shares and other capital stock of the Company, if any, issuable
upon such exercise over and above the Warrant Shares and other capital stock of the Company, if any, issuable upon such exercise on the basis of the Exercise Price and (ii) paying to such
holder any amount in cash in lieu of a fractional share pursuant to Section 10 hereof; provided that the Company shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder's right to receive such additional Warrant Shares, other capital stock and cash upon the occurrence of the event requiring such adjustment. 

	(p)
	Adjustment in Number of Shares.

        Upon
each adjustment of the Exercise Price pursuant to this Section 8, each Warrant outstanding prior to the making of the adjustment in the Exercise Price shall thereafter
evidence the right to receive upon payment of the adjusted Exercise Price that number of shares of Common Stock (calculated to the nearest hundredth) obtained from the following formula: 

	 	 	N'  =  N	 	×	 	E
	 	 	 	 	 	 	E'

where:

	 	 	N'	 	=	 	the adjusted number of Warrant Shares issuable upon exercise of a Warrant by payment of the adjusted Exercise Price.
	

 	
 	

N	
 	

=	
 	

the number or Warrant Shares previously issuable upon exercise of a Warrant by payment of the Exercise Price prior to adjustment.
	

 	
 	

E'	
 	

=	
 	

the adjusted Exercise Price.
	

 	
 	

E	
 	

=	
 	

the Exercise Price prior to adjustment.

	(q)
	Form of Warrants.

        Irrespective
of any adjustments in the Exercise Price or the number or kind of shares purchasable upon the exercise of the Warrants, Warrants theretofore or thereafter issued may
continue to express the same price and number and kind of shares as are stated in the Warrants initially issuable pursuant to this Agreement. 

26

 

SECTION 9. FRACTIONAL INTERESTS.  

        The Company shall not be required to issue fractional Warrant Shares on the exercise of Warrants. If more than one Warrant shall be presented for exercise in full
at the same time by the same holder, the number of full Warrant Shares which shall be issuable upon the exercise thereof shall be computed on the basis of the aggregate number of Warrant Shares
purchasable on exercise of the Warrants so presented. If any fraction of a Warrant Share would, except for the provisions of this Section 9, be issuable on the exercise of any Warrants (or
specified portion thereof), the Company shall pay an amount in cash equal to the Fair Value per Warrant Share, as determined on the day immediately preceding the date the Warrant is presented for
exercise, multiplied by such fraction, computed to the nearest whole U.S. cent. 

SECTION 10. NOTICES TO WARRANT HOLDERS.  

        (a)   Upon
any adjustment of the Exercise Price pursuant to Section 8 hereof, the Company shall promptly thereafter (i) cause to be filed with the Warrant Agent
a certificate of a firm of independent public accountants of recognized standing selected by the Board of Directors of the Company (who may be the regular auditors of the Company) setting forth the
Exercise Price after such adjustment and setting forth in reasonable detail the method of calculation and the facts upon which such calculations are based and setting forth the number of Warrant
Shares (or portion thereof) issuable after such adjustment in the Exercise Price, upon exercise of a Warrant and payment of the adjusted Exercise Price, which certificate shall be conclusive evidence
of the correctness of the matters set forth therein, and (ii) cause to be given to each of the registered holders of Warrants at the address appearing on the Warrant register for each such
registered holder written notice of such adjustments by first-class mail, postage prepaid. Where appropriate, such notice- may be given in advance and included as a part of the notice required to be
mailed under the other provisions of this Section 10. 

        (b)   In
case: 

        (i)    the
Company shall authorize the issuance to all holders of shares of Common Stock of rights, options or warrants to subscribe for or purchase shares of Common Stock or
of any other subscription rights or warrants; 

        (ii)   the
Company shall authorize the distribution to all holders of shares of Common Stock of evidences of its indebtedness or assets (other than dividends or cash
distributions paid out of consolidated current or retained earnings as shown on the books of the Company prepared in accordance with generally accepted accounting principles or dividends payable in
shares of Common Stock or distributions referred to in Section 10(a) hereof); 

        (iii)  of
any consolidation or merger to which the Company is a party and for which approval of any stockholders of the Company is required, or of the conveyance or transfer
of the properties and assets of the Company substantially as an entirety, or of any reclassification or change of Common Stock issuable upon exercise of the Warrants (other than a change in par value,
or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination), or a tender offer or exchange offer for shares of Common Stock; 

        (iv)  of
the voluntary or involuntary dissolution, liquidation or winding up of the Company; or 

        (v)   the
Company proposes to take any action (other than actions of the character described in Section 8(a) hereof) which would require an adjustment of the Exercise
Price pursuant to Section 8 hereof; 

then
the Company shall cause to be filed with the Warrant Agent and shall cause to be given to each of the registered holders of Warrants at his address appearing on the Warrant register, at least
20 days (or 10 days in any case specified in clauses (i) or (ii) above) prior to the applicable record date 

27

 

hereinafter
specified, or promptly in the case of events for which there is no record date, by first-class mail, postage prepaid, a written notice stating (x) the date as of which the holders
of record of shares of Common Stock to be entitled to receive any such rights, options, warrants or distribution are to be determined, (y) the initial expiration date set forth in any tender
offer or exchange offer for shares of Common Stock, or (z) the date on which any such consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up is expected to become
effective or consummated, and the date as of which it is expected that holders of record of shares of Common Stock shall be entitled to exchange such shares for securities or other property, if any,
deliverable upon such reclassification, consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up. The failure to give the notice required by this Section II or any
defect therein shall not affect the legality or validity of any distribution, right, option, warrant, consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up, or the vote
upon any action. 

        (c)   Nothing
contained in this Agreement or in any of the Warrant Certificates shall be construed as conferring upon the holders of Warrants the right to vote or to consent
or to receive notice as stockholders in respect of the meetings of stockholders or the election of directors of the Company or any other matter, or any rights whatsoever as stockholders of the
Company. 

SECTION 11. MERGER, CONSOLIDATION OR CHANGE OF NAME OF WARRANT AGENT.  

        (a)   Any
corporation into which the Warrant Agent may be merged or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which
the Warrant Agent shall be a party, or any corporation succeeding to the business of the Warrant Agent, shall be the successor to the Warrant Agent hereunder without the execution or filing of any
paper or any further act on the part of any of the parties hereto, provided that such corporation would be eligible for appointment as a successor warrant agent under the provisions of
Section 13 hereof. In case at the time such successor to the Warrant Agent shall succeed to the agency created by this Agreement, and in case at that time any of the Warrant Certificates shall
have been countersigned but not delivered, any such successor to the Warrant Agent may adopt the countersignature of the original Warrant Agent; and in case at that time any of the Warrant
Certificates shall not have been countersigned, any successor to the Warrant Agent may countersign such Warrant Certificates either in the name of the predecessor Warrant Agent or in the name of the
successor to the Warrant Agent; and in all such cases such Warrant Certificates shall have the full force and effect provided in the Warrant Certificates and in this Agreement. 

        (b)   In
case at any time the name of the Warrant Agent shall be changed and at such time any of the Warrant Certificates shall have been countersigned but not delivered, the
Warrant Agent whose name has been changed may adopt the countersignature under its prior name, and in case at that time any of the Warrant Certificates shall not have been countersigned, the Warrant
Agent may countersign such Warrant Certificates either in its prior name or in its changed name, and in all such cases such Warrant Certificates shall have the full force and effect provided in the
Warrant Certificates and in this Agreement. 

SECTION 12. WARRANT AGENT.  

        The Warrant Agent undertakes the duties and obligations imposed by this Agreement upon the following terms and conditions, by all of which the Company and the
holders of Warrants, by their acceptance thereof, shall be bound: 

        (a)   The
statements contained herein and in the Warrant Certificates shall be taken as statements of the Company and the Warrant Agent assumes no responsibility for the
correctness of any of the same except such as describe the Warrant Agent or action taken or to be taken by it. 

28

 

The
Warrant Agent assumes no responsibility with respect to the distribution of the Warrant Certificates except as herein otherwise provided. 

        (b)   The
Warrant Agent shall not be responsible for any failure of the Company to comply with any of the covenants contained in this Agreement or in the Warrant Certificates
to be complied with by the Company. 

        (c)   The
Warrant Agent may consult at any time with counsel satisfactory to it (who may be counsel for the Company) and the Warrant Agent shall incur no liability or
responsibility to the Company or to any holder of any Warrant Certificate in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the opinion or the
advice of such counsel. 

        (d)   The
Warrant Agent shall incur no liability or responsibility to the Company or to any holder of any Warrant Certificate for any action taken in reliance on any Warrant
Certificate, certificate of shares, notice, resolution, waiver, consent, order, certificate, or other paper, document or instrument believed by it to be genuine and to have been signed, sent or
presented by the proper party or parties. The Warrant Agent need not investigate any fact or matter stated in such document. 

        (e)   The
Company agrees to pay to the Warrant Agent reasonable compensation for all services rendered by the Warrant Agent in the execution of this Agreement, to reimburse
the Warrant Agent for all expenses, taxes and governmental charges and other charges of any kind and nature incurred by the Warrant Agent in the execution of this Agreement. The Company shall
indemnify the Warrant Agent and its agents, employees, officers, directors and shareholders for, and hold same harmless against, any and all losses, liabilities or expenses (including without
limitation reasonable attorney's fees and expenses) incurred by it arising out of or in connection with the acceptance or administration of its duties under this Warrant Agreement, including the costs
and expenses of enforcing this Warrant Agreement against the Company and defending itself against any claim (whether asserted by the Company or any Holder or any other person) or liability in
connection with the exercise or performance of any of its powers or duties hereunder, except to the extent any such loss, liability or expense may be attributable to its negligence or bad faith. The
Warrant Agent shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the Warrant Agent to so notify the Company shall not relieve the Company of its obligations
hereunder. At the Warrant Agent's sole discretion, the Company shall defend the claim and the Warrant Agent shall cooperate in the defense at the Company's expense. The Warrant Agent may have separate
counsel and the Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably
withheld. 

        (f)    The
Warrant Agent shall be under no obligation to institute any action, suit or legal proceeding or to take any other action likely to involve expense unless the Company
or one or more registered holders of Warrants shall furnish the Warrant Agent with reasonable security and indemnity for any costs and expenses which may be incurred, but this provision shall not
affect the power of the Warrant Agent to take such action as it may consider proper, whether with or without any such security or indemnity. All rights of action under this Agreement or under any of
the Warrants may be enforced by the Warrant Agent without the possession of any of the Warrant Certificates or the production thereof at any trial or other proceeding relative thereto, and any such
action, suit or proceeding instituted by the Warrant Agent shall be brought in its name as Warrant Agent and any recovery of judgment shall be for the ratable benefit of the registered holders of the
Warrants, as their respective rights or interests may appear. 

        (g)   The
Warrant Agent, and any stockholder, director, officer or employee of it, may buy, sell or deal in any of the Warrants or other securities of the Company or become
pecuniarily interested 

29

 

in
any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Warrant Agent under this Agreement.
Nothing herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for any other legal entity. 

        (h)   The
Warrant Agent shall act hereunder solely as agent for the Company. and its duties shall be determined solely by the provisions hereof. The Warrant Agent shall not be
liable for anything which it may do or refrain from doing in connection with this Agreement except for its own negligence or bad faith. 

        (i)    The
Warrant Agent shall not at any time be under any duty or responsibility to any holder of any Warrant Certificate to make or cause to be made any adjustment of the
Exercise Price or number of the Warrant Shares or other securities or property deliverable as provided in this Agreement or to determine whether any facts exist which may require any of such
adjustments, or with respect to the nature or extent of any such adjustments, when made, or with respect to the method employed in making the same. The Warrant Agent shall not be accountable with
respect to the validity or value or the kind or amount of any Warrant Shares or of any securities or property which may at any time be issued or delivered upon the exercise of any Warrant or with
respect to whether any such Warrant Shares or other securities will when issued be validly issued and fully paid and nonassessable, and makes no representation with respect thereto. 

SECTION 13. CHANGE OF WARRANT AGENT.  

        If the Warrant Agent shall become incapable of acting as Warrant Agent, the Company shall appoint a successor to such Warrant Agent. If the Company shall fail to
make such appointment within a period of 30 days after it has been notified in writing of such incapacity by the Warrant Agent or by the registered holder of a Warrant Certificate, then the
registered holder of any Warrant may apply to any court of competent jurisdiction for the appointment of a successor to the Warrant Agent. Pending appointment of a successor to such Warrant Agent,
either by the Company or by such a court, the duties of the Warrant Agent shall be carried out by the Company. The holders of a majority of the unexercised Warrants shall be entitled at any time to
remove the Warrant Agent and appoint a successor to such Warrant Agent. Such successor to the Warrant Agent need not be approved by the Company or the former Warrant Agent. After appointment the
successor to the Warrant Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Warrant Agent without neither act or deed; provided that
the former Warrant Agent shall deliver and transfer to the successor to the Warrant Agent any property at the time held by it hereunder and execute and deliver any further assurance, conveyance, act
or deed necessary for the purpose. Failure to give any notice provided for in this Section 13, however, or any defect therein, shall not affect the legality or validity of the appointment of a
successor to the Warrant Agent. 

SECTION 14. REPORTS.  

        (a)   Whether
or not required by the rules and regulations of the Commission, so long as any Warrants or the Warrant Shares are outstanding, the Company shall furnish to the
Warrant Agent and the holders of-Warrants or Warrant Shares (i) all quarterly and annual financial information that would be required to be contained in a filing with the Commission
on Forms 10-Q and 10-K if the Company were required to file such Forms, including a "Management's Discussion and Analysis of Financial Condition and Results of Operations" and,
with respect to the annual information only, a report thereon by the Company's certified independent accountants and (ii) all current reports that would be required to be filed with the
Commission on Form 8-K if the Company were required to file such reports. In addition, whether or not required by the rules and regulations of the Commission, the Company shall
file a copy of all such information and reports with the Commission for public 

30

 

availability
(unless the Commission shall not accept such a tiling) and make such information available to securities analysts and prospective investors upon request. 

        (b)   The
Company shall provide the Warrant Agent with a sufficient number of copies of all such reports that the Warrant Agent may be required to deliver to the holders of
the Warrants and the Warrant Shares under this Section 14. 

SECTION 15. NOTICES TO COMPANY AND WARRANT AGENT.  

        Any notice or demand authorized by this Agreement to be given or made by the Warrant Agent or by the registered holder of any Warrant to or on the Company shall
be sufficiently given or made when received if deposited in the mail, first class or registered, postage prepaid, addressed (until another address is filed in writing by the Company with the Warrant
Agent) as follows: 

Viking
Merger Sub, Inc.

c/o DLJ Merchant Banking Partners II, L.P.

277 Park Avenue

New York, New York 10172

Telecopier No.: (212) 892-7272

Attention: William F. Dawson, Jr. 

and 

Merrill
Corporation

One Merrill Circle

St. Paul, Minnesota 55108

Telecopier No.: 651 632 4141

Attention: General Counsel 

With
copies to: 

Davis
Polk & Wardwell

450 Lexington Avenue

New York, New York 10017

Telecopier No.: (212) 450-4800

Attention: Richard Truesdell, Jr., Esq. 

and

Oppenheimer
Wolff & Donnelly LLP

45 South Seventh Street

Plaza VII, Suite 3400

Minneapolis, Minnesota 55402

Telecopier No.: (612) 607-7100

Attention: Bruce A Machmeier, Esq. 

        In
case the Company shall fail to maintain such office or agency or shall fail to give such notice of the location or of any change in the location thereof, presentations may be made and
notices and demands may be served at the principal office of the Warrant Agent. 

        Any
notice pursuant to this Agreement to be given by the Company or by the registered holder(s) of any Warrant to the Warrant Agent shall be sufficiently given when and if deposited in
the mail,

31

 

first-class
or registered, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the Company) to the Warrant Agent as follows: 

Norwest
Bank Minnesota, N.A.

Norwest Center

Mac #N903-120

Sixth and Marquette

Minneapolis, MN 55479

Telecopier No.: (612) 667-9825

Attention: James R. Bryant 

SECTION 16. SUPPLEMENTS AND AMENDMENTS.  

        The Company and the Warrant Agent may from time to time supplement or amend this Agreement without the approval of any holders of Warrants in order to cure any
ambiguity or to correct or supplement any provision contained herein which may be defective or inconsistent with any other provision herein, or to make any other provisions in regard to matters or
questions arising hereunder which the Company and the Warrant Agent may deem necessary or desirable and which shall not in
any way adversely affect the interests of the holders of Warrants. Any amendment or supplement to this Agreement that has an adverse effect on the interests of the holders of Warrants shall require
the written consent of the holders of a majority of the then outstanding Warrants (excluding Warrants held by the Company or any of its affiliates). The consent of each holder of Warrants affected
shall be required for any amendment pursuant to which the Exercise Price would be increased or the number of Warrant Shares purchasable upon exercise of Warrants would be decreased (other than
pursuant to adjustments provided in this Agreement). 

SECTION 17. SUCCESSORS.  

        All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their
respective successors and assigns hereunder. 

SECTION 18. TERMINATION.  

        This Agreement shall terminate at 5:00 p.m., New York City time on May 1, 2009. Notwithstanding the foregoing, this Agreement will terminate on any
earlier date if all Warrants have been exercised. The provisions of Section 12 shall survive such termination. 

SECTION 19. GOVERNING LAW.  

        This Agreement and each Warrant Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of New York and for all purposes
shall be construed in accordance with the internal laws of said State. 

SECTION 20. BENEFITS OF THIS AGREEMENT.  

        Nothing in this Agreement shall be construed to give to any person or corporation other than the Company, the Warrant Agent and the registered holders of Warrants
any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the Warrant Agent and the registered holders of
Warrants. 

32

 

SECTION 21. COUNTERPARTS.  

        This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument. 

[Signature
Page Follows] 

33

  

 
 

EXHIBIT A    
    
    [Form of Warrant Certificate]    
    
    [Face]    

[Insert the Private Placement Legend, if applicable (Section 3.5(g)(i) o/the Warrant Agreement))

[Insert the Global Note Legend, if applicable (Section 3.5(g(ii) o/the Warrant Agreement)]

[Insert the Unit Legend, if applicable (Section 3.5(g)(iii) o/the Warrant Agreement)]

	No.                   

CUSIP No.                   	 	                   Warrants

Warrant
Certificate

[VIKING MERGER SUB, INC.]

[MERRILL CORPORATION] 

        This
Warrant Certificate certifies that Cede & Co., or its registered assigns, is the registered holder of Warrants expiring May 1, 2009 (the "Warrants") to purchase
[Common Shares][Class B Common Stock], par value $.01 (the "Common Stock"), of [Viking Merger
Sub, Inc.][Merrill Corporation], a Minnesota corporation. Each Warrant entitles the registered holder upon exercise at any time from the opening of business
on November 1, 2001 (the "Exercise Date") until 5:00 p.m. New York City Time on May 1, 2009, to receive from the Company 1.22987 fully paid and nonassessable [Common
Shares][shares of Common Stock) (the "Warrant Shares") at the initial exercise price (the "Exercise Price") of $22.00 per share payable upon surrender of this Warrant
Certificate and payment of the Exercise Price at the office or agency of the Warrant Agent, but only subject to the conditions set forth herein and in the Warrant Agreement referred to on the reverse
hereof. The Exercise Price and number of Warrant Shares issuable upon exercise of the Warrants are subject to adjustment upon the occurrence of certain events set forth in the Warrant Agreement. 

        No
Warrant may be exercised after 5:00 p.m., New York City Time on May 1,2009, and to the extent not exercised by such time such Warrants shall become void. 

        Reference
is hereby made to the further provisions of this Warrant Certificate set forth on the reverse hereof and such further provisions shall for all purposes have the same effect as
though fully set forth at this place. 

        This
Warrant Certificate shall not be valid unless countersigned by the Warrant Agent, as such term is used in the Warrant Agreement. 

        This
Warrant Certificate shall be governed by and construed in accordance with the internal laws of the State of New York. 

A-1

 

        IN
WITNESS WHEREOF, the Company has caused this Warrant Certificate to be signed below. 

Dated:
                         

	 	 	[VIKING MERGER SUB, INC.]

[MERRILL CORPORATION]
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:	 	 
	 	 	 	 	

	 	 	Title:	 	 
	 	 	 	 	

	Countersigned:	 	 
	

NORWEST BANK MINNESOTA, N.A.

as Warrant Agent	
 	

 
	

By:	
 	

 	
 	

 
	 	 	
 Authorized Signature

	 	 

A-2

 
[Reverse
of Warrant Certificate] 

        The
Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of Warrants expiring at 5:00 p.m. New York City time on May 1, 2009 entitling the
holder on exercise to receive shares of Common Stock, and are issued or to be issued pursuant to a Warrant Agreement dated as of November 23, 1999 (the "Warrant Agreement"), duly executed and
delivered by the Company to Norwest Bank Minnesota, N.A., as warrant agent (the "Warrant Agent"), which Warrant Agreement is hereby incorporated by reference in and made a part of this instrument and
is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Warrant Agent, the Company and the holders (the words "holders" or
"holder" meaning the registered holders or registered holder) of the Warrants. A copy of the Warrant Agreement may be obtained by the holder hereof upon written request to the Company. 

        Warrants
may be exercised at any time on or after November 1, 2001 and on or before 5:00 p.m. New York City time on May 1, 2009; provided that holders shall be able
to exercise their Warrants only if a registration statement relating to the Warrants Shares is then in effect, or the exercise of such Warrants is exempt from the registration requirements of the
Securities Act of 1933, as amended (the "Securities Act"), and such securities are qualified for sale or exempt from qualification under the applicable securities laws of the states in which the
various holders of the Warrants or other persons to whom it is proposed that the Warrant Shares be issued on exercise of the Warrants reside. In order to exercise Warrants, the holder thereof must
(i) deliver to the Warrant Agent at its corporate trust office set forth in Section 15 of the Warrant Agreement (x) in the case of Warrants represented by a Definitive Warrant,
this Warrant Certificate and the form of election to purchase on the reverse hereof, duly filled in and signed, which signature shall be medallion guaranteed by an institution which is a member of a
Securities Transfer Association recognized signature guarantee program, and (y) in the case of Warrants represented by a Global Warrant, such customary documentation as the Warrant Agent and
the Company may require, and (ii) pay to the Warrant Agent for the account of the Company the Exercise Price, as adjusted as provided in the Warrant Agreement, for the number of Warrant Shares
in respect of which such Warrants are then exercised. No adjustment shall be made for any dividends on any Common Stock issuable upon exercise of this Warrant. 

        The
Warrant Agreement provides that upon the occurrence of certain events the Exercise Price set forth on the face hereof may, subject to certain conditions, be adjusted. If the Exercise
Price is adjusted, the Warrant Agreement provides that the number of shares of Common Stock issuable upon the exercise of each Warrant shall be adjusted. No fractions of a share of Common Stock will
be issued upon the exercise of any Warrant, but the Company will pay the cash value thereof determined as provided in the Warrant Agreement. 

        The
Company has agreed pursuant to a Warrant Registration Rights Agreement dated as of November 23, 1999 (the "Warrant Registration Rights Agreement") to file within"
120 days after the issuance of the Warrants and use its reasonable best efforts to make effective on or before 180 days after such date a shelf registration statement on the appropriate
form under the Securities Act, and to use its reasonable best efforts to keep such registration statement continuously effective under the Securities Act in order to permit the resale of the Warrants
and Warrant Shares by the holders thereof for the period of time referred to in the immediately preceding sentence. 

        Warrant
Certificates, when surrendered at the office of the Warrant Agent by the registered holder thereof in person or by legal representative or attorney duly authorized in writing,
may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of
like tenor evidencing in the aggregate a like number of Warrants. 

        Upon
due presentation for registration of transfer of this Warrant Certificate at the office of the Warrant Agent a new Warrant Certificate or Warrant Certificates of like tenor and
evidencing in the 

A-3

 

aggregate
a like number of Warrants shall be issued to the transferee(s) in exchange for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge except
for any tax or other governmental charge imposed in connection therewith. 

        The
Company and the Warrant Agent may deem and treat the registered holder(s) thereof as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or
other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the holder(s) hereof, and for all other purposes, and neither the Company nor the Warrant Agent
shall be affected by any notice to the contrary. Neither the Warrants nor this Warrant Certificate entitles any holder hereof to any rights of a stockholder of the Company. 

A-4

 
[Form
of Election to Purchase]

(To Be Executed Upon Exercise Of Warrant) 

        The
undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, to
receive                        [Common
Shares][shares of Common Stock] and herewith tenders payment for such shares to the order of [VIKING MERGER
SUB, INC.][MERRILL CORPORATION], in the amount of $                  in accordance with the terms hereof. The undersigned requests that a certificate for
such
shares be registered in the name of                        whose address
is                        and that such shares be delivered
to                        , whose address
is                        . If said number of shares is
less than all of the [Common Shares][shares of Common Stock] purchasable hereunder, the undersigned requests that a new Warrant Certificate representing
the remaining balance of such shares be registered in the name of                        , whose address
is                        , and that such Warrant Certificate be delivered to whose address
is            

	 	 	 	 	
 Signature
	

Date:	
 	

 	
 	

 
	 	 	
	 	 
	 	 	 	 	
 Signature Guaranteed

Signatures
must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Warrant Agent, which requirements include membership or participation in the Security Transfer
Agent Medallion Program ("STAMP") or such other "signature guarantee program" as may be determined by the Warrant Agent in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended. 

A-5

 
SCHEDULE
OF EXCHANGES OF INTERESTS OF GLOBAL WARRANTS 

The
following exchanges of a part of this Global Warrant have been made: 

	Date of Exchange
 
	 	Amount of decrease in

Number of Warrants in

this Global Warrant
	 	Amount of increase in

Number of Warrants in

this Global Warrant
	 	Number of Warrants in

this Global Warrant

following such decrease

or increase
	 	Signature of authorized

officer of Warrant

Agent

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

A-6

  

 
 

EXHIBIT B    
    
    FORM OF CERTIFICATE OF TRANSFER    

[Viking
Merger Sub. Inc.

c/o DLJ Merchant Banking Partners II, L.P.

277 Park Avenue

New York, New York 10172] 

[Merrill
Corporation

One Merrill Circle

St. Paul, Minnesota 55108] 

Norwest
Bank Minnesota, N.A.

Norwest Center

Mac #N903-120

Sixth and Marquette

Minneapolis, MN 55479 

Re:
Warrants 

        Reference
is hereby made to the Warrant Agreement, dated as of November 23, 1999 (the "Warrant Agreement"), relating to Warrants of
[Viking Merger Sub, Inc.] [Merrill Corporation] (the "Company"), under which Norwest Bank
Minnesota, N.A. is acting as warrant agent. Capitalized terms used but not defined herein shall have the meanings given to them in the Warrant Agreement. 

                    (the
"Transferor") owns and proposes to transfer the Warrant[s] or interest in such
Warrant[s] specified in Annex A hereto (the "Transfer"), to                        
(the
"Transferee"), as further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby certifies that: 

        [CHECK
ALL THAT APPLY] 

        1.     o    Check if Transferee will take delivery of a beneficial interest in the 144A Global
Warrant or a Definitive Warrant Pursuant to Rule 144A. The Transfer is being effected pursuant to and in accordance with Rule 144A under the United States
Securities Act of 1933, as amended (the "Securities Act", and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive Warrant is being transferred to a Person
that the Transferor reasonably believed and believes is purchasing the beneficial interest or Definitive Warrant for its own account, or for one or more accounts with respect to which such Person
exercises sole investment discretion, and such Person and each such account is a "qualified institutional buyer" within the meaning of Rule 144A in a transaction meeting the requirements of
Rule 144A and such Transfer is in compliance with any applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Transfer in accordance with the
terms of the Warrant Agreement, the transferred beneficial interest or Definitive Warrant will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A
Global Warrant and/or the Definitive Warrant and in the Warrant Agreement and the Securities Act. 

        2.     o    Check if Transferee will take delivery of a beneficial interest in the
Regulation S Global Warrant or a Definitive Warrant pursuant to Regulation S. The Transfer is being effected pursuant to and in accordance with Rule 903 or
Rule 904 under the Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a person in the United States and (x) at the
time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside
the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf
knows that the transaction was prearranged with a buyer in the United States, (ii) no directed selling 

B-1

 

efforts
have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a
plan or scheme to evade the registration requirements of the Securities Act and (iv) if the proposed transfer is being made prior to the expiration of the Restricted Period, the transfer is not
being made to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser). Upon consummation of the proposed transfer in accordance with the terms of the Warrant
Agreement, the transferred beneficial interest or Definitive Warrant will be subject to the restrictions on Transfer enumerated in the Private Placement Legend printed on the Regulation S
Global Warrant and/or the Definitive Warrant and in the Warrant Agreement and the Securities Act. 

        3.     o    Check and complete if Transferee will take delivery of a beneficial interest in the
144A Global Warrant or a Definitive Warrant pursuant to any provision of the Securities Act other than Rule 144A or Regulation S. The Transfer is being effected
in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Warrants and Restricted Definitive Warrants and pursuant to and in accordance with the Securities
Act and any applicable blue sky securities laws of any state of the United States, and accordingly the Transferor hereby further certifies that (check one): 

	(a)
	o
such Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act; 

or 

	(b)
	o
such Transfer is being effected to the Company or a subsidiary thereof; 

or 

	(c)
	o
such Transfer is being effected pursuant to an effective registration statement under the Securities Act and in compliance with the
prospectus delivery requirements of the Securities Act; 

or 

	(d)
	o    such
Transfer is being effected to an Institutional Accredited Investor and pursuant to an exemption from the registration
requirements of the Securities Act other than Rule 144A, Rule 144 or Rule 904, and the Transferor hereby further certifies that it has not engaged in any general solicitation
within the meaning of Regulation D under the Securities Act and the Transfer complies with the transfer restrictions applicable to beneficial interests in a Restricted Global Warrant or
Restricted Definitive Warrants and the requirements of the exemption claimed, which certification is supported by (1) a certificate executed by the Transferee in the form of Exhibit D to
the Warrant Agreement and (2) if the Company requests, an Opinion of Counsel provided by the Transferor or the Transferee (a copy of which the Transferor has attached to this certification), to
the effect that such Transfer is in compliance with the Securities Act. Upon consummation of the proposed transfer in accordance with the terms of the Warrant Agreement, the transferred beneficial
interest or Definitive Warrant will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Definitive Warrants and in the Warrant Agreement and the
Securities Act. 

        4.     o    Check if Transferee will take delivery of a beneficial interest in an Unrestricted
Global Warrant or of an Unrestricted Definitive Warrant. 

	(a)
	o    Check
if Transfer is pursuant to Rule 144. (i) The Transfer is being effected pursuant to and in accordance
with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the Warrant Agreement and any applicable blue sky securities laws of any state of the United
States and (ii) the restrictions on transfer contained in the Warrant Agreement and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Warrant Agreement, the transferred beneficial interest or 

B-2

 

Definitive
Warrant will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Warrants, on Restricted Definitive Warrants and
in the Warrant Agreement. 

	(b)
	o    Check
if Transfer is Pursuant to Regulation S. (i) The Transfer is being effected pursuant to and in
accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Warrant Agreement and any applicable blue sky securities
laws of any state of the United States and (ii) the restrictions on transfer contained in the Warrant Agreement and the Private Placement Legend are not required in order to maintain compliance
with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Warrant Agreement, the transferred beneficial interest or Definitive Warrant will no longer be
subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Warrants, on Restricted Definitive Warrants and in the Warrant Agreement.

	(c)
	o    Check
if Transfer is Pursuant to Other Exemption. (i) The Transfer is being effected pursuant to and in compliance
with an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in
the Warrant Agreement and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Warrant Agreement and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Warrant Agreement, the
transferred beneficial interest or Definitive Warrant will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Warrants or
Restricted Definitive Warrants and in the Warrant Agreement. 

        This certificate and the statements contained herein are made for your benefit and the benefit of the Company. 

	

 	
 	

 	
 	

 
	 	 	
 [Insert Name of Transferor]
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:	 	 
	 	 	 	 	

	 	 	Title:	 	 
	 	 	 	 	

	Dated:	 	 	 	 
	 	 	
	 	 

B-3

 
ANNEX A TO CERTIFICATE OF TRANSFER 

	1.
	The
Transferor owns and proposes to transfer the following: 

[CHECK
ONE OF (a) OR (b)] 

	(a)
	o    a
beneficial interest in the:

	(i)
	o    144A
Global Warrant, or

	(ii)
	o    Regulation S
Temporary Global Warrant, or

	(iii)
	o    Regulation S
Permanent Global Warrant, or

	(iv)
	o    Unrestricted
Global Warrant; or

	(b)
	o    a
Restricted Definitive Warrant; or

	(c)
	o    an
Unrestricted Definitive Warrant.

	2.
	After
the Transfer the Transferee will hold: 

[CHECK ONE] 

	(a)
	o    a
beneficial interest in the:

	(i)
	o    144A
Global Warrant, or

	(ii)
	o    Regulation S
Temporary Global Warrant, or

	(iii)
	o    Regulation S
Permanent Global Warrant, or

	(iv)
	o    Unrestricted
Global Warrant; or

	(b)
	o    a
Restricted Definitive Warrant; or

	(c)
	o    an
Unrestricted Definitive Warrant, 

        in accordance with the terms of the Warrant Agreement. 

B-4

  

 
 

EXHIBIT C    
    
    FORM OF CERTIFICATE OF EXCHANGE    

[Viking
Merger Sub. Inc.

c/o DLJ Merchant Banking Partners II, L.P.

277 Park Avenue

New York, New York 10172] 

[Merrill
Corporation

One Merrill Circle

St. Paul, Minnesota 55108] 

Norwest
Bank Minnesota, N.A.

Norwest Center

Mac #N903-120

Sixth and Marquette

Minneapolis, MN 55479 

Re:
Warrants 

(CUSIP                        )

        Reference
is hereby made to the Warrant Agreement, dated as of November 23, 1999 (the "Warrant Agreement"), relating to Warrants of
[Viking Merger Sub, Inc.] [Merrill Corporation] (the "Company"), under which Norwest Bank
Minnesota, N.A. is acting as warrant agent, Capitalized terms used but not defined herein shall have the meanings given to them in the Warrant Agreement. 

                                ,
(the "Owner") owns and proposes to exchange the Warrant[s] or interest in such
Warrant[s] specified herein, in the amount of $                  in such Warrant[s] or interests (the
"Exchange"). In connection with the Exchange, the Owner hereby certifies that: 

        1.     Exchange of Restricted Definitive Warrants or Beneficial Interests in a Restricted Global Warrant for Unrestricted
Definitive Warrants or Beneficial Interests in an Unrestricted Global Warrant

        (a)   o 
Check if Exchange is from beneficial interest in a Restricted Global Warrant to beneficial
interest in an Unrestricted Global Warrant. In connection with the Exchange of the Owner's beneficial interest in a Restricted Global Warrant for a beneficial interest in an
Unrestricted Global Warrant in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to the Global Warrants and pursuant to and in accordance with the United States Securities Act of 1933, as amended
(the "Securities Act"), (iii) the restrictions on transfer contained in the Warrant Agreement and the Private Placement Legend are not required
in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Warrant is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States. 

        (b)   o
Check if Exchange is from beneficial interest in a Restricted Global Warrant to Unrestricted
Definitive Warrant. In connection with the Exchange of the Owner's beneficial interest in a Restricted Global Warrant for an Unrestricted Definitive Warrant, the Owner hereby
certifies (i) the Definitive Warrant is being acquired for the Owner's own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Warrants and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Warrant Agreement and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Definitive Warrant is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States. 

C-1

 

        (c)   o 
Check if Exchange is from Restricted Definitive Warrant to beneficial interest in an Unrestricted
Global Warrant. In connection with the Owner's Exchange of a Restricted Definitive Warrant for a beneficial interest in an Unrestricted Global Warrant, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner's own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Warrants and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Warrant Agreement and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States. 

        (d)   o
Check if Exchange is from Restricted Definitive Warrant to Unrestricted Definitive
Warrant. In connection with the Owner's Exchange of a Restricted Definitive Warrant for an Unrestricted Definitive Warrant, the Owner hereby certifies (i) the
Unrestricted Definitive Warrant is being acquired for the Owner's own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Warrants and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Warrant Agreement and the Private Placement Legend
are not required in order to maintain compliance with the Securities Act and (iv) the Unrestricted Definitive Warrant is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States, 

        2.     Exchange of Restricted Definitive Warrants or Beneficial Interests in Restricted Global Warrants for Restricted Definitive
Warrants or Beneficial Interests in Restricted Global Warrants

        (a)   o 
Check if Exchange is from beneficial interest in a Restricted Global Warrant to Restricted
Definitive Warrant. In connection with the Exchange of the Owner's beneficial interest in a Restricted Global Warrant for a Restricted Definitive Warrant in a number equal to
the number of beneficial interests exchanged, the Owner hereby certifies that the Restricted Definitive Warrant is being acquired for the Owner's own account without transfer. Upon consummation of the
proposed Exchange in accordance with the terms of the Warrant Agreement, the Restricted Definitive Warrant issued will continue to be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Definitive Warrant and in the Warrant Agreement and the Securities Act. 

        (b)   o
Check if Exchange is from Restricted Definitive Warrant to beneficial interest in a Restricted
Global Warrant. In connection with the Exchange of the Owner's Restricted Definitive Warrant for a beneficial interest in the [CHECK ONE]
o 144A Global Warrant o Regulation S Temporary Global Warrant in a number equal to the number of
beneficial interests exchanged, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner's own account without transfer and (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the Restricted Global Warrants and pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue
sky securities laws of any state of the United States. Upon consummation of the proposed Exchange in accordance with the terms of the Warrant Agreement, the beneficial interest issued will be subject
to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Warrant and in the Warrant Agreement and the Securities Act. 

C-2

 

        This certificate and the statements contained herein are made for your benefit and the benefit of the Company. 

	

 	
 	

 	
 	

 
	 	 	
 [Insert Name of Transferor]
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:	 	 
	 	 	 	 	

	 	 	Title:	 	 
	 	 	 	 	

	Dated:	 	 	 	 
	 	 	
	 	 

C-3

  

 
 

EXHIBIT D
  
    FORM OF CERTIFICATE FROM
  ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR    

[Viking
Merger Sub. Inc.

c/o DLJ Merchant Banking Partners II, L.P.

277 Park Avenue

New York, New York 10172] 

[Merrill
Corporation

One Merrill Circle

St. Paul, Minnesota 55108] 

Norwest
Bank Minnesota, N.A.

Norwest Center

Mac #N903-120

Sixth and Marquette

Minneapolis, MN 55479 

Re:
Warrants 

        Reference
is hereby made to the Warrant Agreement, dated as of November 23, 1999 (the "Warrant Agreement"), relating to Warrants of
[Viking Merger Sub, Inc.] [Merrill Corporation] (the "Company"), under which Norwest Bank
Minnesota, N.A. is acting as warrant agent. Capitalized terms used but not defined herein shall have the meanings given to them in the Warrant Agreement. 

        In
connection with our proposed purchase of            Warrants represented by: 

	(a)
	o    a
beneficial interest in a Global Warrant, or

	(b)
	o    a
Definitive Warrant, 

        we confirm that: 

        1.     We
understand that any subsequent transfer of the Warrants or any interest therein is subject to certain restrictions and conditions set forth in the Warrant Agreement
and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Warrants or any interest therein except in compliance with, such restrictions and conditions and the
United States Securities Act of 1933, as amended (the "Securities Act"). 

        2.     We
understand that the offer and sale of the Warrants have not been registered under the Securities Act, and that the Warrants and any interest therein may not be offered
or sold except as permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell the Warrants or
any interest therein, we will do so only (A) to the Company or any subsidiary thereof, (B) in accordance with Rule 144A under the Securities Act to a "qualified institutional
buyer" (as defined therein), (C) to an institutional "accredited investor" (as defined below) that, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to
you and to the Company a signed letter substantially in the form of this letter and, if requested by the Company, an Opinion of Counsel in form reasonably acceptable to the Company to the effect that
such transfer is in compliance with the Securities Act, (D) outside the United States in accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant to
the provisions of Rule 144(k) under the Securities Act or (F) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any person
purchasing the Definitive Warrant or beneficial interest in a Global Warrant from us in a transaction meeting the 

D-1

 

requirements
of clauses (A) through (E) of this paragraph a notice advising such purchaser that resales thereof are restricted as stated herein. 

        3.     We
understand that, on any proposed resale of the Warrants or beneficial interest therein, we will be required to furnish to you and the Company such certifications,
legal opinions and other information as you and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. We further understand that the Warrants
purchased by us will bear a legend to the foregoing effect. 

        4.     We
are an institutional "accredited investor" (as defined in Rule 501(a)(l), (2), (3) or (7) of Regulation 0 under the Securities Act) and
have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Warrants, and we and any accounts for which we are
acting are each able to bear the economic risk of our or its investment. 

        5.     We
are acquiring the Warrants or beneficial interest therein purchased by us for our own account or for one or more accounts (each of which is an institutional
"accredited investor") as to each of which we exercise sole investment discretion. 

        We
agree not to engage in any hedging transactions with regard to the Warrants unless such hedging transactions are in compliance with the Securities Act, 

        You
and the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. 

	

 	
 	

 	
 	

 
	 	 	
 [Insert Name of Transferor]
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:	 	 
	 	 	 	 	

	 	 	Title:	 	 
	 	 	 	 	

	Dated:	 	 	 	 
	 	 	
	 	 

D-2

  

 
 

EXHIBIT E    
    
    FORM OF WARRANT REGISTRATION RIGHTS AGREEMENT    

E-1

QuickLinks

Exhibit 4.8

EXHIBIT A [Form of Warrant Certificate] [Face]

EXHIBIT B FORM OF CERTIFICATE OF TRANSFER

EXHIBIT C FORM OF CERTIFICATE OF EXCHANGE

EXHIBIT D FORM OF CERTIFICATE FROM ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

EXHIBIT E FORM OF WARRANT REGISTRATION RIGHTS AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.21    
    

March
6, 2000 

Mr.
Robert Nazarian

5800 Long Brake Trail

Edina, MN 55439 

Dear
Bob: 

        I
am pleased to confirm the offer to join Merrill Communications, LLC effective April 17, 2000 as Executive Vice President and Chief Financial Officer. The following details the
specifics regarding your offer: 

Base Salary:  

        $25,000 per month. 

Annual Incentive Opportunity:  

        0-100% of your annual salary. Your bonus payout will be determined based upon Merrill's consolidated results, as well as on your individual performance. In
general, "target" performance equals performing to budget. "Target" performance will result in 50% bonus payout. 

        As
agreed, for fiscal year 2001 only, I will guarantee a bonus payout equal to target. 

Signing Bonus:  

        In conjunction with your start date, you will receive a signing bonus of $100,000 (gross). 

        Should
you leave voluntarily within four years of your start date for reasons other than a change in control, a pro-rata portion of this bonus must be repaid to Merrill (e.g., if you
leave after three years of employment, 25% of the bonus will need to be repaid). 

Long-Term Incentive Opportunity:  

        You will be given the opportunity to purchase 39,000 shares of Merrill common at $22.00 per share under the co-investment program. The total investment
opportunity is $858,000, your cash outlay will be $300,300 and the non-recourse loan portion will be $557,700. In order to give you time to consider this offer, it will remain valid until April 30,
2000. 

        In
addition, you will be awarded 11,600 shares of super performance options. Those options will vest in accordance with the schedule provided to you by Kathy Larkin. 

        As
you requested, your investment opportunity was increased as opposed to giving you time options and performance options. Accordingly, these options will not be part of your employment
package. 

Change in Control Agreement:  

        You will be provided a change in control agreement as provided to all my direct reports. Kathy will provide you with the details. 

Severance:  

        Should your employment be involuntarily terminated for reasons other than a change in control, Merrill will pay salary and extend medical/dental benefits for
eighteen (18) months beyond your termination date. 

Benefits:  

        You will be eligible to participate in all of the benefits plans afforded to my direct reports. In addition to the standard Merrill benefits, you will be eligible
to participate in the Supplemental Executive Retirement Plan (SERP), The Income Deferral Plan and the Supplemental Short-Term Disability Plan. In addition, you will receive a financial planning
benefit ($5,000 your first year and $3,000 each year thereafter) and the executive physical benefit. 

        Merrill
will provide you with a loan to pay the initiation fees associated with a country club membership (I understand that is $55,000). This loan will be forgiven over a four-year
period. In addition, Merrill will reimburse you for the monthly country club dues. 

        We
have very exciting opportunities at Merrill. I look forward to working with you and, with your assistance, making these opportunities a reality. 

	Regards,	 
	

/s/  JOHN CASTRO      
	

 
	

John Castro

President and Chief Executive Officer	

 

QuickLinks

Exhibit 10.21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]