Document:

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                       FORM OF CHANGE IN CONTROL AGREEMENT
          WITH B. MICHAEL JAMES, MARK A. ROSSI AND JOSEPH P. PETTIROSSI

Effective  February 1, 2000

[Name and address of Executive]

Dear [executive]:

         The Board considers the establishment and maintenance of a sound and
vital management to be essential to protecting and enhancing the best
interests of the Company and its stockholders. In this connection, the Board
recognizes that the possibility of a Change in Control may raise uncertainty
and questions among management which may result in the departure or
distraction of management personnel to the detriment of the Company and its
stockholders.

         Accordingly, the Board has determined that appropriate steps should
be taken to minimize the risk that Company executive management will depart
prior to a Change in Control, thereby leaving the Company without adequate
executive management personnel during such a critical period, and to
reinforce and encourage the continued attention and dedication of members of
the Company's executive management to their assigned duties without
distraction in circumstances arising from the possibility of a Change in
Control.

         The Board recognizes that continuance of your position with the
Company involves a substantial commitment to the Company in terms of your
personal life and professional career and the possibility of foregoing
present and future career opportunities, for which the Company receives
substantial benefits. Therefore, to induce you to remain in the employ of the
Company, this Agreement, which has been approved by the Board, sets forth the
benefits that the Company agrees will be provided to you in the event your
employment with the Company is terminated in connection with a Change in
Control under the circumstances described below.

     1.   DEFINITIONS. The following terms have the meaning set forth below
unless the context clearly requires otherwise. Terms defined elsewhere in this
Agreement have the same meaning throughout this Agreement.

          (a)  "AFFILIATE" means (i) any corporation at least a majority of
     whose outstanding securities ordinarily having the right to vote at
     elections of directors is owned directly or indirectly by the Parent
     Corporation or (ii) any other form of business entity in which the Parent
     Corporation, by virtue of a direct or indirect ownership interest, has the
     right to elect a majority of the members of such entity's governing body.

          (b)  "AGREEMENT" means this letter agreement as amended, extended or
     renewed from time to time in accordance with its terms.

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          (c)  "BASE PAY" means your annual base salary from the Company at the
     rate in effect immediately prior to a Change in Control or at the time
     Notice of Termination is given, whichever is greater. Base Pay includes
     only regular cash salary and is determined before any reduction for
     deferrals pursuant to any nonqualified deferred compensation plan or
     arrangement, qualified cash or deferred arrangement or cafeteria plan.

          (d)  "BENEFIT PLAN" means any

               (i)  employee benefit plan as defined in Section 3(3) of the
          Employee Retirement Income Security Act of 1974, as amended;

               (ii) cafeteria plan described in Code Section 125;

               (iii) plan, policy or practice providing for paid vacation, other
          paid time off or short-or long-term profit sharing, bonus or incentive
          payments; or

               (iv) stock option, stock purchase, restricted stock, phantom
          stock, stock appreciation right or other equity-based compensation
          plan with respect to the securities of any Affiliate made available to
          employees of the Company generally or any group of employees or you in
          particular.

          (e)  "BOARD" means the board of directors of the Parent Corporation
     duly qualified and acting at the time in question. On and after the date of
     a Change in Control, any duty of the Board in connection with this
     Agreement is nondelegable and any attempt by the Board to delegate any such
     duty is ineffective.

          (f)  "CAUSE" means:

               (i)  your gross misconduct;

               (ii) your willful and continued failure to perform substantially
          your duties with the Company (other than any such failure (1)
          resulting from your incapacity due to bodily injury or physical or
          mental illness or (2) relating to changes in your duties after a
          Change in Control which constitute Good Reason) after a demand for
          substantial performance is delivered to you by the chair of the Board
          which specifically identifies the manner in which you have not
          substantially performed your duties and provides for a reasonable
          period of time within which you may take corrective actions; or

               (iii) your conviction (including a plea of nolo contendere) of
          willfully engaging in illegal conduct constituting a felony or gross
          misdemeanor under federal or state law which is materially and
          demonstrably injurious to the Company or which impairs your ability to
          perform substantially your duties for the Company.

         An act or failure to act will be considered "gross or willful" for
this purpose only if done, or omitted to be done, by you in bad faith and
without reasonable belief that it was in, or not opposed to, the best
interests of the Company. Any act, or failure to act, based upon authority
given pursuant to a resolution duly adopted by the Board (or a committee
thereof) or based upon the advice of counsel for the Company will be
conclusively presumed to be done, or omitted to be done, by you in good faith
and in the best interests of the Company. It is also expressly understood
that your attention to matters not directly related to the business of the
Company will not provide a basis for termination for Cause so long as the
Board did not expressly disapprove in writing of your engagement in such
activities either before or

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within a reasonable period of time after the Board knew or could reasonably
have known that you engaged in those activities. Notwithstanding the
foregoing, you may not be terminated for Cause unless and until there has
been delivered to you a copy of a resolution duly adopted by the affirmative
vote of not less than a majority of the entire membership of the Board at a
meeting of the Board called and held for the purpose (after reasonable notice
to you and an opportunity for you, together with your counsel, to be heard
before the Board), finding that in the good faith opinion of the Board you
were guilty of the conduct set forth above in clauses (i), (ii) or (iii) of
this definition and specifying the particulars thereof in detail.

     (g)  "CHANGE IN CONTROL" means any of the following:

          (i)  the sale, lease, exchange or other transfer, directly or
     indirectly, of substantially all of the assets of the Parent Corporation,
     in one transaction or in a series of related transactions, to any Person;

          (ii) any Person, other than a "bona fide underwriter," becomes, after
     the date of this Agreement, the "beneficial owner" (as defined in Rule
     13d-3 under the Exchange Act), directly or indirectly, of 20 percent or
     more of the combined voting power of the Parent Corporation's outstanding
     securities ordinarily having the right to vote at elections of directors;

          (iii) a merger or consolidation to which the Parent Corporation is a
     party if the stockholders of the Parent Corporation immediately prior to
     the effective date of such merger or consolidation have, solely on account
     of ownership of securities of the Parent Corporation at such time,
     "beneficial ownership" (as defined in Rule 13d-3 under the Exchange Act)
     immediately following the effective date of such merger or consolidation of
     securities of the surviving corporation representing less than 80 percent
     of the combined voting power of the surviving corporation's then
     outstanding securities ordinarily having the right to vote at elections of
     directors;

          (iv) the continuity directors cease for any reason to constitute at
     least a majority of the Board; or

          (v)  a change in control of a nature that is determined by outside
     legal counsel to the Parent Corporation, in a written opinion specifically
     referencing this provision of the Agreement, to be required to be reported
     (assuming such event has not been "previously reported") pursuant to
     Section 13 or 15(d) of the Exchange Act, whether or not the Parent
     Corporation is then subject to such reporting requirement.

     For purposes of this Section 1(g), a "continuity director" means any
individual who is a member of the Board on February 1, 2000, while he or she
is a member of the Board, and any individual who subsequently becomes a
member of the Board whose election or nomination for election by the Parent
Corporation's stockholders was approved by a vote of at least a majority of
the directors who are continuity directors (either by a specific vote or by
approval of the proxy statement of the Parent Corporation in which such
individual is named as a nominee for director without objection to such
nomination). For example, if a majority of the 10 individuals constituting
the Board on February 1, 2000 approved a proxy statement in which six
different individuals were nominated to replace six of the individuals who
were members of the Board on February 1, 2000, upon their election by the
Parent Corporation's stockholders, the six newly elected directors would join
the four directors who were members of the Board on February 1, 2000 as
continuity directors. Similarly, if a majority of those 10 directors approved
a proxy statement in which four different individuals were nominated to
replace the

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four remaining directors who were members of the Board on February 1, 2000,
upon their election by the Parent Corporation's stockholders, the four newly
elected directors would also become, along with the other six directors,
continuity directors. Individuals subsequently joining the Board could become
continuity directors under the principles reflected in this example.

     For purposes of this Section 1(g), a "bona fide underwriter" means a
Person engaged in business as an underwriter of securities that acquires
securities of the Parent Corporation through such Person's participation in
good faith in a firm commitment underwriting until the expiration of 40 days
after the date of such acquisition.

     (h) "CODE" means the Internal Revenue Code of 1986, as amended. Any
reference to a specific provision of the Code includes a reference to such
provision as it may be amended from time to time and to any successor provision.

     (i) "COMPANY" means the Parent Corporation, any Successor and any
Affiliate.

     (j) "DATE OF TERMINATION" following a Change in Control (or prior to a
Change in Control if your termination was either a condition of the Change in
Control or was at the request or insistence of any Person related to the
Change in Control) means:

               (i)  if your employment is to be terminated by you for Good
          Reason, the date specified in the Notice of Termination which in no
          event may be a date more than 15 days after the date on which Notice
          of Termination is given unless the Company agrees in writing to a
          later date;

               (ii) if your employment is to be terminated by the Company for
          Cause, the date specified in the Notice of Termination;

               (iii) if your employment is terminated by reason of your death,
          the date of your death; or

               (iv) if your employment is to be terminated by the Company for
          any reason other than Cause or your death, the date specified in the
          Notice of Termination, which in no event may be a date earlier than 15
          days after the date on which a Notice of Termination is given, unless
          you expressly agree in writing to an earlier date.

     In the case of termination by the Company of your employment for Cause,
if you have not previously expressly agreed in writing to the termination,
then within the 30-day period after your receipt of the Notice of
Termination, you may notify the Company that a dispute exists concerning the
termination, in which event the Date of Termination will be the date set
either by mutual written agreement of the parties or by the judge or
arbitrators in a proceeding as provided in Section 11 of this Agreement.
During the pendency of any such dispute, you will continue to make yourself
available to provide services to the Company and the Company will continue to
pay you your full compensation and benefits in effect immediately prior to
the date on which the Notice of Termination is given (without regard to any
changes to such compensation or benefits that constitute Good Reason) and
until the dispute is resolved in accordance with Section 11 of this
Agreement. You will be entitled to retain the full amount of any such
compensation and benefits without regard to the resolution of the dispute
unless the judge or arbitrators decide(s) that your claim of a dispute was
frivolous or advanced by you in bad faith.

     (k)  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended. Any reference to a specific provision of the Exchange Act or to any
rule or regulation thereunder

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     includes a reference to such provision as it may be amended from time to
     time and to any successor

          (l)  "GOOD REASON" means:

               (i)  a change in your title(s), status, position(s), authority,
          duties or responsibilities as an executive of the Company as in effect
          immediately prior to the Change in Control which, in your reasonable
          judgment, is material and adverse (other than, if applicable, any such
          change directly attributable to the fact that the Parent Corporation
          is no longer publicly owned); provided, however, that Good Reason does
          not include such a change that is remedied by the Company promptly
          after receipt of notice of such change is given by you;

               (ii) a reduction by the Company in your Base Pay, or an adverse
          change in the form or timing of the payment thereto, as in effect
          immediately prior to the Change in Control or as thereafter increased;

               (iii) the failure by the Company to cover you under Benefit Plans
          that, in the aggregate, provide substantially similar benefits to you
          and/or your family and dependents at a substantially similar total
          cost to you (e.g., premiums, deductibles, co-pays, out of pocket
          maximums, required contributions and the like) relative to the
          benefits and total costs under the Benefit Plans in which you (and/or
          your family or dependents) were participating at any time during the
          90-day period immediately preceding the Change in Control;

               (iv) the Company's requiring you to be based more than 30 miles
          from where your office is located immediately prior to the Change in
          Control, except for required travel on the Company's business, and
          then only to the extent substantially consistent with the business
          travel obligations which you undertook on behalf of the Company during
          the 90-day period immediately preceding the Change in Control (without
          regard to travel related to or in anticipation of the Change in
          Control);

               (v)  the failure by the Company to obtain from any Successor the
          assent to this Agreement contemplated by Section 5 of this Agreement;

               (vi) any purported termination by the Company of your employment
          that is not properly effected pursuant to a Notice of Termination and
          pursuant to any other requirements of this Agreement, and, for
          purposes of this Agreement, no such purported termination will be
          effective; or

               (vii) any refusal by the Company to continue to allow you to
          attend to matters or engage in activities not directly related to the
          business of the Company which, at any time prior to the Change in
          Control, you were not expressly prohibited in writing by the Board
          from attending to or engaging in.

     Your continued employment does not constitute consent to, or waiver of any
rights arising in connection with, any circumstances constituting Good Reason.
Your termination of employment for Good Reason as defined in this Section 1(1)
will constitute Good Reason for all purposes of this Agreement notwithstanding
that you may also thereby be deemed to have retired under any applicable benefit
plan, policy or practice of the Company.

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     (m)  "NOTICE OF TERMINATION" means a written notice given on or after
the date of a Change in Control (unless your termination before the date of
the Change in Control was either a condition of the Change in Control or was
at the request or insistence of any Person related to the Change in Control)
which indicates the specific termination provision in this Agreement pursuant
to which the notice is given. Any purported termination by the Company or by
you for Good Reason on or after the date of a Change in Control (or before
the date of a Change in Control if your termination was either a condition of
the Change in Control or was at the request or insistence of any Person
related to the Change in Control) must be communicated by written Notice of
Termination to be effective; provided, that your failure to provide Notice of
Termination will not limit any of your rights under this Agreement except to
the extent the Company demonstrates that it suffered material actual damages
by reason of such failure.

     (n)  "PARENT CORPORATION" means Merrill Corporation and any Successor.

     (o)  "PERSON" means any individual, corporation partnership, group,
association or other "person," as such term is used in Section 13(d) or
Section 14(d) of the Exchange Act, other than the Parent Corporation, any
Affiliate or any benefit plan(s) sponsored by the Parent Corporation or an
Affiliate.

     (p)  "SUCCESSOR" means any Person that succeeds to, or has the practical
ability to control (either immediately or solely with the passage of time),
the Parent Corporation's business directly, by merger, consolidation or other
form of business combination, or indirectly, by purchase of the Parent
Corporation's outstanding securities ordinarily having the right to vote at
the election of directors or all or substantially all of its assets or
otherwise.

     2.   TERM OF AGREEMENT. This Agreement is effective immediately and will
continue in effect until January 31, 2001; provided, however, that commencing
on January 31, 2001 and each January 31 thereafter, the term of this Agreement
will automatically be extended for 12 additional months beyond the expiration
date otherwise then in effect, unless at least 90 calendar days prior to any
such January 31, the Company or you has given notice that this Agreement will
not be extended; and, provided, further, that if a Change in Control has
occurred during the term of this Agreement, this Agreement will continue in
effect beyond the termination date then in effect for a period of 24 months
following the month during which the Change in Control occurs or, if later,
until the date on which the Company's obligations to you arising under or in
connection with this Agreement have been satisfied in full.

     3.   BENEFITS UPON A CHANGE IN CONTROL TERMINATION. You will become
entitled to the benefits described in this Section 3 if and only if (i) the
Company terminates your employment for any reason other than your death or
Cause, or you terminate your employment with the Company for Good Reason and
(ii) the termination occurs either within the period beginning on the date of
a Change in Control and ending on the last day of the twenty-fourth month
that begins after the month during which the Change in Control occurs or
prior to a Change in Control if your termination was either a condition of
the Change in Control or was at the request or insistence of a Person related
to the Change in Control.

          (a)  CASH PAYMENT. Not more than five business days following the Date
     of Termination, or, if later, not more than five business days following
     the date of the Change in Control, the Company will make a lump-sum cash
     payment to you in an amount equal to two times the sum of (i) your Base Pay
     plus (ii) your target cash bonus for the year during which the Change in
     Control occurs or the average of your cash bonus for the three fiscal years
     ending immediately prior to the Change in Control, whichever is greater.
     This payment is in lieu of any other cash bonus payment to which you may
     otherwise be entitled under any bonus plan for any

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     period ending after your Date of Termination. Cash bonus payments
     relating to any period ending on or before your Date of Termination will
     be paid to you in accordance with the terms of the bonus plan.

          (b)  HEALTH BENEFITS. During the period beginning on your Date of
     Termination and ending on the last day of the twenty-fourth month that
     begins after your Date of Termination, the Company will provide, or arrange
     to provide, medical, dental and vision benefits (excluding premium
     conversion or flexible spending accounts under any cafeteria plan) to you
     (and your family members and dependents who were eligible to be covered at
     any time during the 90-day period immediately prior to the date of a Change
     in Control for the period after the Change in Control in which such family
     members and dependents would otherwise continue to be covered under the
     terms of the applicable Benefit Plan in effect immediately prior to the
     Change in Control) under the same terms and at the same cost to you and
     your family members and dependents as similarly situated individuals who
     continue to be employed by the Company (without regard to any reduction in
     such benefits that constitutes Good Reason). To the extent you incur a tax
     liability (including federal, state and local taxes and any interest and
     penalties with respect thereto) in connection with a benefit provided
     pursuant to this Section 3(b) which you would not have incurred had you
     been an active employee of the Company participating in the Company's group
     health plan, the Company will make a payment to you in an amount equal to
     such tax liability plus an additional amount sufficient to permit you to
     retain a net amount after all taxes (including penalties and interest)
     equal to the initial tax liability in connection with the benefit. For
     purposes of applying the foregoing, your tax rate will be deemed to be the
     highest statutory marginal state and federal tax rate (on a combined basis)
     then in effect. The payment pursuant to this Section 3(b) will be made
     within 10 days after your remittal of a written request for payment
     accompanied by a statement indicating the basis for and amount of the
     liability.

          (c)  SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. The Company will cause
     your account balance under the Merrill Corporation Supplemental Executive
     Retirement Plan to become fully vested and nonforfeitable effective as of
     the Date of Termination and at all times thereafter. In addition, the
     Company will cause any distribution to which you are entitled under the
     Merrill Corporation Supplemental Executive Retirement Plan to be made
     without regard to any provision of the Plan that permits your distribution
     to be deferred to the extent necessary to ensure that no part of the
     distribution is nondeductible pursuant to Code Section 162(m).

          (d)  GROSS-UP PAYMENTS. Following a Change in Control, the Company
     will cause its independent auditors promptly to review, at the Company's
     sole expense, the applicability of Code Section 4999 to any payment or
     distribution of any type by the Company to or for your benefit, whether
     paid or payable or distributed or distributable pursuant to the terms of
     this Agreement, any Benefit Plan or otherwise (the "Total Payments"). If
     the auditor determines that the Total Payments result in an excise tax
     imposed by Code Section 4999 or any comparable state or local law or any
     interest or penalties with respect to such excise tax (such excise tax,
     together with any such interest and penalties, are collectively referred to
     as the "Excise Tax"), the Company will make an additional cash payment (a
     "Gross-Up Payment") to you within 10 days after such determination equal to
     an amount such that after payment by you of all taxes (including any
     interest or penalties imposed with respect to such taxes), including any
     Excise Tax, imposed upon the Gross-Up Payment, you would retain an amount
     of the Gross-Up Payment equal to the Excise Tax imposed upon the Total
     Payments. For purposes of the foregoing determination, your tax rate will
     be deemed to be the highest statutory marginal state and federal tax rate
     (on a combined basis) then in effect. If no determination by the Company's
     auditors is made prior to the time you are required to file a tax return
     reflecting the Total Payments, you will be entitled to receive from the
     Company a Gross-Up Payment calculated on the basis of the Excise Tax you

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     reported in such tax return, within 10 days after the later of the date on
     which you file such tax return or the date on which you provide a copy
     thereof to the Company. In all events, if any tax authority determines that
     a greater Excise Tax should be imposed upon the Total Payments than is
     determined by the Company's independent auditors or reflected in your tax
     return pursuant to this Section 3(d), you will be entitled to receive from
     the Company the full Gross-Up Payment calculated on the basis of the amount
     of Excise Tax determined to be payable by such tax authority within 10 days
     after you notify the Company of such determination. If any other Benefit
     Plan or other plan, policy or practice of the Company or any other
     agreement between you and the Company (an "Other Arrangement") specifically
     provides that benefits thereunder will be reduced or limited so that such
     benefits or the Total Payments will not result in the imposition of an
     excise tax pursuant to Code Section 4999, the reduction or limitation will
     apply, to the extent provided in the Other Arrangement, solely to the
     benefits provided pursuant to the Other Arrangement as if the benefits
     under the Other Arrangement constituted the entire Total Payments, and such
     reduction or limitation will not otherwise reduce or limit the actual Total
     Payments.

     If, on or after the date of a Change in Control, an Affiliate is sold,
merged, transferred or in any other manner or for any other reason ceases to
be an Affiliate or all or any portion of the business or assets of an
Affiliate are sold, transferred or otherwise disposed of and the acquiror is
not the Parent Corporation or an Affiliate (a "Disposition"), and you remain
or become employed by the acquiror or an affiliate of the acquiror (as
defined in this Agreement but substituting "acquiror" for "Parent
Corporation") in connection with the Disposition. you will be deemed to have
terminated employment on the effective date of the Disposition for purposes
of this Section 3 unless (x) the acquiror and its affiliates jointly and
severally expressly assume and agree, in a manner that is enforceable by you,
to perform the obligations of this Agreement to the same extent that the
Company would be required to perform if the Disposition had not occurred and
(y) the Successor guarantees, in a manner that is enforceable by you, payment
and performance by the acquiror.

     4.   INDEMNIFICATION. Following a Change in Control, the Company will
indemnify and advance expenses to you for damages, costs and expenses
(including, without limitation, judgments, fines, penalties, settlements and
reasonable fees and expenses of your counsel) incurred in connection with all
matters, events and transactions relating to your service to or status with
the Company or any other corporation, employee benefit plan or other entity
with whom you served at the request of the Company to the extent that the
Company would have been required to do so under applicable law, corporate
articles, bylaws or agreements or instruments of any nature with or covering
you, as in effect immediately prior to the Change in Control and to any
further extent as may be determined or agreed upon following the Change in
Control.

     5.   SUCCESSORS. The Parent Corporation will seek to have any Successor,
by agreement in form and substance satisfactory to you, assent to the
fulfillment by the Company of the Company's obligations under this Agreement.
Failure of the Parent Corporation to obtain such assent at least three
business days prior to the time a Person becomes a Successor (or where the
Parent Corporation does not have at least three business days' advance notice
that a Person may become a Successor, within one business day after having
notice that such Person may become or has become a Successor) will constitute
Good Reason for termination by you of your employment. The date on which any
such succession becomes effective will be deemed the Date of Termination, and
Notice of Termination will be deemed to have been given on that date. A
Successor has no rights, authority or power with respect to this Agreement
prior to a Change in Control.

     6.   BINDING AGREEMENT. This Agreement inures to the benefit of, and is
enforceable by, you, your personal and legal representatives, executors,
administrators, successors, heirs, distributees,

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devisees and legatees. If you die while any amount would still be payable to
you under this Agreement if you had continued to live, all such amounts,
unless otherwise provided in this Agreement, will be paid in accordance with
the terms of this Agreement to your devisee, legatee or other designee or, if
there be no such designee, to your estate.

      7.   NO MITIGATION. You will not be required to mitigate the amount of
any benefits the Company becomes obligated to provide to you in connection
with this Agreement by seeking other employment or otherwise. The benefits to
be provided to you in connection with this Agreement may not be reduced,
offset or subject to recovery by the Company by any benefits you may receive
from other employment or otherwise.

      8.   NO SETOFF. The Company has no right to setoff benefits owed to you
under this Agreement against amounts owed or claimed to be owed by you to the
Company under this Agreement or otherwise.

      9.  TAXES. All benefits to be provided to you in connection with this
Agreement will be subject to required withholding of federal, state and local
income, excise and employment-related taxes. The Company's good faith
determination with respect to its obligation to withhold such taxes relieves
it of any obligation that such amounts should have been paid to you.

     10.  NOTICES. For the purposes of this Agreement, notices and all other
communications provided for in, or required under, this Agreement must be in
writing and will be deemed to have been duly given when personally delivered
or when mailed by United States registered or certified mail, return receipt
requested, postage prepaid and addressed to each party's respective address
set forth on the first page of this Agreement (provided that all notices to
the Company must be directed to the attention of the chair of the Board), or
to such other address as either party may have furnished to the other in
writing in accordance with these provisions, except that notice of change of
address will be effective only upon receipt.

     11.  DISPUTES. If you so elect, any dispute, controversy or claim
arising under or in connection with this Agreement will be settled
exclusively by binding arbitration administered by the American Arbitration
Association in Minneapolis, Minnesota in accordance with the Commercial
Arbitration Rules of the American Arbitration Association then in effect;
provided that you may seek specific performance of your right to receive
benefits until the Date of Termination during the pendency of any dispute or
controversy arising under or in connection with this Agreement. Judgment may
be entered on the arbitrator's award in any court having jurisdiction. If any
dispute, controversy or claim for damages arising under or in connection with
this Agreement is settled by arbitration, the Company will pay, or if elected
by you, reimburse, all fees, costs and expenses incurred by you related to
such arbitration unless the arbitrators decide that your claim was frivolous
or advanced by you in bad faith. If you do not elect arbitration, you may
pursue all available legal remedies. The Company will pay, or if elected by
you, reimburse you for, all fees, costs and expenses incurred by you in
connection with any actual, threatened or contemplated litigation relating to
this Agreement to which you are or reasonably expect to become a party,
whether or not initiated by you, if you are successful in recovering any
benefit under this Agreement as a result of such action. The parties agree
that any litigation arising under or in connection with this Agreement must
be brought in a court of competent jurisdiction in the State of Minnesota,
and hereby consent to the exclusive jurisdiction of said courts for this
purpose and agree not to assert that such courts are an inconvenient forum.
The Company will not assert in any dispute or controversy with you arising
under or in connection with this Agreement your failure to exhaust
administrative remedies.

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     12.  RELATED AGREEMENTS. To the extent that any provision of any Benefit
Plan or other benefit plan, policy, practice or agreement between the Company
or any Affiliate and you (an "Other Arrangement") limits, qualifies or is
inconsistent with any provision of this Agreement, then for purposes of this
Agreement, while such Other Arrangement remains in force, the provision of
this Agreement will control and such provision of such Other Arrangement will
be deemed to have been superseded, and to be of no force or effect, as if
such Other Arrangement had been formally amended to the extent necessary to
accomplish such purpose. Nothing in this Agreement prevents or limits your
continuing or future participation in any Other Arrangement for which you may
qualify, and nothing in this Agreement limits or otherwise affects the rights
you may have under any Other Arrangement. Amounts that are vested benefits or
which you are otherwise entitled to receive under any Other Arrangement at or
subsequent to the Date of Termination will be payable in accordance with such
Other Arrangement.

     13.  NO EMPLOYMENT OR SERVICE CONTRACT. Nothing in this Agreement is
intended to provide you with any right to continue in the employ of the
Company for any period of specific duration or interfere with or otherwise
restrict in any way your rights or the rights of the Company, which rights
are hereby expressly reserved to each, to terminate your employment at any
time for any reason or no reason whatsoever, with or without cause.

     14.  PAYMENT; ASSIGNMENT. Benefits payable under this Agreement will be
paid only from the general assets of the Company. No person has any right to
or interest in any specific assets of the Company by reason of this
Agreement. To the extent benefits under this Agreement are not paid when due
to any individual, he or she is a general unsecured creditor of the Company
with respect to any amounts due. Benefits payable pursuant to this Agreement
and the right to receive future benefits may not be anticipated, alienated,
sold, transferred, assigned, pledged, encumbered or subject to any charge.

     15.  SURVIVAL. The respective obligations of, and benefits afforded to,
the Company and you which by their express terms or clear intent survive
termination of your employment with the Company or termination of this
Agreement, as the case may be, will survive termination of your employment
with the Company or termination of this Agreement, as the case may be, and
will remain in full force and effect according to their terms.

     16.  MISCELLANEOUS. No provision of this Agreement may be modified,
waived or discharged unless such modification, waiver or discharge is agreed
to in a writing signed by you and a duly authorized officer of the Parent
Corporation. No waiver by any party to this Agreement at any time of any
breach by another party to this Agreement of, or of compliance with any
condition or provision of this Agreement to be performed by such party will
be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter to
this Agreement have been made by any party which are not expressly set forth
in this Agreement. This Agreement and the legal relations among the parties
as to all matters, including, without limitation, matters of validity,
interpretation, construction, performance and remedies, will be governed by
and construed exclusively in accordance with the internal laws of the State
of Minnesota (without regard to the conflict of laws principles of any
jurisdiction). Headings are for purposes of convenience only and do not
constitute a part of this Agreement. The parties to this Agreement agree to
perform, or cause to be performed, such further acts and deeds and to execute
and deliver or cause to be executed and delivered, such additional or
supplemental documents or instruments as may be reasonably required by the
other party to carry into effect the intent and purpose of this Agreement.
The invalidity or unenforceability of all or any part of any provision of
this Agreement will not affect the validity or enforceability of the
remainder of such provision or of any other provision of this Agreement,
which will remain in full force and effect. This

                                       10
<PAGE>

Agreement may be executed in several counterparts, each of which will be
deemed to be an original, but all of which together will constitute one and
the same instrument.

     If this letter correctly sets forth our agreement on the subject matter
discussed above, kindly sign and return to the Company the enclosed copy of
this letter which will then constitute our agreement on this subject.

MERRILL CORPORATION

By:  _______________________________________

____________________________________________
[Executive]

                                       11<PAGE>

                       LEASE OF 15 PRESIDENTIAL WAY WOBURN

1.    PARTIES. Walter H. McLaughlin Jr., William E. Shea, and Constance M.
Ramsauer, as they are trustees of the Ames Realty Trust, a declaration of Trust
dated December 31, 1985 and recorded in Middlesex South District Registry of
Deeds at Book 16678, Page 197 with a principal place of business in Somerville,
Middlesex County, Massachusetts ("Lessor"), which expression shall include its
successors and assigns, when the context so admits, does hereby lease to Merrill
Communications LLC, a Delaware limited liability company with a principal place
of business in St. Paul, Minnesota ("Lessee"), which expression shall include
its successors, legal representatives, and assigns where the context so admits.

2.    PREMISES. Lessor does hereby lease to Lessee and the Lessee hereby leases
and shall peaceably hold and enjoy the following described premises
(hereinafter, the "Leased Premises").

The "Leased Premises" consists of a parcel of land shown as lot 7 on a plan
entitled Subdivision Plan of Land in Woburn Massachusetts, June 5, 1995,
prepared by Edward J. Farrell, Professional Land Surveyor, recorded in Middlesex
South District Registry of Deeds at Book 25637, Page 476 on which there is
constructed an industrial flex building containing 78,900 square feet as shown
on the plan annexed hereto and marked "Exhibit A." The premises are leased in
their present condition "as is."

3.    TERM. The term of this Lease shall be for a period of five years
commencing April 1, 2000 and terminating on March 31, 2005 (the "Initial Term").

4.    OPTION TO EXTEND TERM. Lease will automatically renew for three (3)
additional five-year terms unless Lessee provided six (6) months advance written
notice of its intent not to renew (such additional terms are hereinafter
referred to as the "Renewal Terms").

5.    RENT DURING INITIAL TERM.

      The base rent for the period from April 1, 2000 through March 31, 2001
shall be $394,500.

      The base rent for the period from April 1, 2001 through March 31, 2002
shall be $473,400.

      The base rent for the period from April 1, 2002 through March 31, 2005
shall be $552,300 per annum.

      The Lessee shall pay to the Lessor Base Rent during the term in equal
monthly installments one the first day of each month unless the Lessor and
Lessee agree to a different payment schedule.

                                       1
<PAGE>

6.    RENT DURING EXTENDED TERM.

      The base rent during each Renewal Term shall be the fair rental value of
the premises. The parties shall first attempt to agree on fair rental value. In
the event that the parties shall fail to agree on fair rental value within
ninety (90) days after the beginning of each Renewal Term, the matter shall be
submitted to arbitration under the rules of the American Arbitration
Association. Each party shall choose as an arbitrator a licensed real estate
broker whose principal business is the leasing of commercial real estate in the
greater Boston Area, and the two arbitrators shall choose a third arbitrator
with similar qualifications. The decision of two arbitrators shall be binding on
the parties. The arbitrators shall attempt to reach a decision before the
commencement of the extended term. In the event that they have not reached a
decision by that time, the Lessee shall pay the same rent as in the last year of
the previous term and pay any additional rent due within ten (10) days of the
arbitrator's decision. The arbitrators shall determine fair rental value by
considering the age and condition of the building, market location and other
customary factors of the Leased Premises compared to properties of similar size
and location.

      The Lessee shall pay to the Lessor Base Rent annually during each Renewal
Term in equal monthly installments on the first day of each month unless the
Lessor and Lessee agree to a different payment schedule.

7.    EXPANSION OF PREMISES. If at any time during the term of this Lease, the
Lessee determines that it needs additional space, the Lessor and the Lessee
shall negotiate in good faith to provide said additional space through the
construction of additional space on the premises. If during any Renewal Term,
the Lessee determines that the premises and any reasonable expansion are not
sufficient to meet their needs, the Lessee may terminate this lease by notice to
the Lessor, and the lease shall terminate six (6) months after the Lessee
delivers said notice.

8.    TAXES. The Lessee shall be responsible for the payment, before the same
become delinquent, all general and special taxes, including real estate taxes
and assessments for local improvements, and other governmental charges which may
be lawfully charged, assessed or imposed (herein collectively called the
"Taxes") upon the Leased Premises.

      If the Lessor's mortgagee requires the Lessor to impound taxes on a
monthly basis, then beginning with the calendar year 2000 occurs and in
subsequent years during the term of this Lease, or written notice from Lessor
therefore, Lessee shall pay to the Lessor pro rata monthly installments of
amounts due for taxes on account of projected taxes for such year, reasonably
calculated by the Lessor on the basis of the best and most recent data
available. A final adjustment shall be made between Lessor and Lessee promptly
after Lessor shall have received the tax bill for any such period.

                                       2
<PAGE>

      If the Lessor's mortgage does not require the impoundment of taxes on a
monthly basis, the Lessor shall forward each tax bill received to the Lessee and
the Lessee shall forward its share of the taxes to the Lessor ten (10) days
before said taxes are due or ten (10) days after receipt of the tax bill,
whichever comes later.

      If the Lessor shall exercise its option to pay the municipality the amount
of any betterments assessed upon the premises on an installment basis for the
maximum period of time then permitted by law, Lessee shall pay Lessor each year
within thirty (30) days after receipt of a bill therefore, its appropriate
proportionate share of such annual installment payment and of the interest, if
any, due in such year.

      The Lessee may from time to time request that the Lessor contest the
validity of and seek an abatement of the taxes upon the Leased Premises. The
Lessor will file such abatement and charge the Lessee its pro rata cost of
filing for such abatement. The Lessee shall be entitled to a refund of its pro
rata share of the abatement recovered.

9,    UTILITIES AND OTHER SERVICES. The Lessee shall pay for all of the water,
      electricity and gas used on the demised premises.

10    USE OF LEASED PREMISES. The building must be used as a manufacturing
facility. For this purpose a manufacturing facility is a facility that is used
for the manufacture or production of tangible personal property (including the
processing resulting in a change in the condition of such property). A
manufacturing facility includes ancillary facilities located on the same site as
the actual production facilities, but only to the extent that (i) manufacturing
constitutes substantially all the on-site economic activity, and (ii) the
activities conducted at the ancillary facilities are subordinate and integral to
the manufacturing process (e.g. loading docks, parking for employees, or
warehouse space for raw materials and finished products )

11    RIGHT OF FIRST REFUSAL If at any time while the Lessee is not in material
breach of this lease, the Lessor enters into an agreement to sell the Leased
Premises to a person other than the Lessee (the "offering person") it shall
offer in writing to sell the Premises to the Lessee on the same terms and
conditions as those contained in said agreement. The Lessee shall have 30 days
from the date it receives the offer to accept it by a written notice to the
Lessor which must be received during said thirty day period. If the Lessee
accepts the offer then the Lessor shall convey the Leased Premises to the Lessee
in accordance with the offer within 30 days from the date the offer is accepted.
If the Lessee fails to exercise the right of first refusal within 30 days of the
receipt of the offer, then the offer shall expire and the Lessor shall
thereafter have the right to sell the Leased Premises, without notice to the
Lessee, to the Offering Person, provide the sale is consummated within 90 days
of the date the Lessee receives the notice from the Lessor. If the sale is not
consummated within such ninety (90) day period or if the terms of the offer
change in a material way, then the provision of this paragraph 11 will again
apply to a proposed sale of the Leased Premises.

                                       3
<PAGE>

12.   COMPLIANCE WITH LAWS. The Lessee acknowledges that no trade or occupation
shall be conducted in the Leased Premises or use made thereof which shall be
unlawful, improper, noisy or offensive be contrary to any law or any municipal
by-law or ordinance in force in the City of Woburn now existing or hereinafter
enacted. Lessee shall keep the Leased Premises equipped with all reasonable
safety appliances and shall procure and keep in force all licenses and permits
required by law or ordinance of any public authority because of the uses made of
the Leased Premises by Lessee and shall maintain in good condition on the Leased
Premises all existing safety and fire protection devices required by the Board
of Fire Underwriters, or other body having similar functions, and of every
insurance company and policy by which Lessee is insured. If the Lessee shall
install additional storage racks on the demised premises, it shall sprinkler
said racks in accordance with the directions of the Lessor's insurance company.

      In furtherance of the obligations set forth under this paragraph, Lessee
shall take no action with respect to the demised premises which shall violate
and Federal or State environmental statutes governing the use of this property,
and shall indemnify the Lessor against any costs or remediation or cleanup
caused by the Lessee's use of the premises in violation of environmental law.

      Lessor covenants and warrants that as of the Commencement Date hereof,
April 1, 2000, the Leased Premises, shall be in full compliance with all
applicable statutes, ordinances, regulations, including without limitation all
environmental laws and the ADA, and by-laws and that the Lessee's proposed use
is permissible as of right in the zoning district in which the Leased Premises
are located. In addition, notwithstanding the provisions of this Paragraph 12,
Lessee shall not be required to make any alteration addition or improvement to
the Leased Premises to comply with any statute ordinance regulation or by-law
unless said alteration addition or improvement is required by reason of Lessee's
particular use of the Leased Premises. Lessor shall indemnify the Lessee for
direct damages incurred because of a breach of this paragraph.

13.   INSURANCE - WAIVER OF SUBROGATION. Lessee, as to its own personal property
and on behalf of the Lessor with respect to the building, agrees to keep the
Leased Premises insured in amounts equal to the actual cash replacement value of
the same against fire and other perils included in a standard extended coverage
endorsement, and against breakdown of boilers and other machinery and equipment.
Lessor and Lessee further agree that with respect to any loss which is covered
(or required by this Paragraph 13 to be covered) by insurance then being carried
by or on behalf of either of them, that each party releases the other of and
from any and all claims with respect to such loss to the extent of the insurance
proceeds payable with respect to such loss; and they further mutually agree that
their respective insurance companies shall have no right of subrogation against
the other on account thereof. If requested, each party agrees to furnish the
other from time to time with certificates of all such insurance coverages issued
by or on behalf of their respective insurers.

14.   RISK OF LOSS OF PERSONAL EFFECTS. Lessee acknowledges and agrees that all

                                       4
<PAGE>

of the furnishings, equipment, effects and personal property of Lessee and of
all persons claiming by, through or under Lessee which may be on the Leased
Premises shall be at the sole risk and hazard of Lessee and if the whole or any
part thereof shall be destroyed or damaged by fire, water or otherwise, or by
the leakage or bursting of water pipes, steam pipes, or other pipes, by theft or
from any other cause, no part of said loss or damage is to be charged to or to
be borne by Lessor, except that Lessor shall in no event be indemnified or held
harmless or exonerated from any liability to Lessee or to any other person,
arising from any injury, loss, damage or liability caused by Lessor's negligence
or willful misconduct.

15.   MAINTENANCE OF LEASED PREMISES. The Lessee agrees to maintain the Leased
Premises including its structural elements in the same condition as they are at
the commencement of the term or as they may be put in during the term of this
Lease, reasonable wear and tear, damage by fire, other casualty and eminent
domain, and matters for which the Lessor is responsible hereunder only excepted,
to replace plate glass and other glass therein damaged due to negligence of the
Lessee or its agents. The Lessee shall not permit the Leased Premises to be
overloaded, damaged, stripped, or defaced, nor suffer any waste. Lessee shall
obtain written consent of Lessor before erecting any sign on or about the Leased
Premises and on or about the Building of which the Leased Premises are a part,
which consent shall not be unreasonably withheld or delayed.

16.   ALTERATIONS - ADDITIONS. The Lessee may make any non-structural
alterations additions or improvements to the Leased Premises that it deems
necessary or advisable for the conduct of its business thereon as long as they
are in compliance with law. The Lessee shall not make any structural
alterations, additions or improvements to the Leased Premises, unless the Lessor
consents thereto in advance in writing, which consent shall not be unreasonably
withheld or delayed, but such consent may be conditioned upon the Lessee's
obligation to restore the Leased Premises to its original condition, all at
Lessee's sole cost and expense and may be conditioned upon approval by the
Lessor's mortgagee. All such allowed alterations or additions shall be at
Lessee's expense and shall be in quality at least equal to the present
construction. Lessee shall not permit any mechanics' liens, or similar liens, to
remain upon the Leased Premises for labor and materials furnished to Lessee or
claimed, to have been furnished to Lessee in connection with the work of any
character performed or claimed to have been performed at the direction of
Lessee, and shall cause any such lien to be released of record forthwith without
cost to Lessor. Any alterations, additions or improvements made by the Lessee,
except for moveable partitions, trade fixtures, equipment, and furnishings,
installed at the Lessee's cost, shall become the property of the Lessor at the
termination of the Lease as provided herein, but the Lessor may at its option
require that the Lessee remove any or all non-structural additions.

17.   ASSIGNMENT - SUBLETTING. The Lessee shall not assign or sublet the whole
or any part of the Leased Premises without the Lessor's prior written consent
which will not be unreasonably withheld or delayed. Notwithstanding, Lessee
shall remain liable to Lessor for the payment of all rent and for the full
performance of the covenants and conditions of this Lease.

                                       5
<PAGE>

18.   QUIET ENJOYMENT, COVENANT OF TITLE. The Lessee, on paying the rent and
other charges hereunder, as and when the same shall become due and payable and
observing and performing the covenants, conditions and agreements contained in
this Lease on the part of the Lessee to be observed and performed, all as herein
provided, shall and may lawfully, peaceably and quietly have, hold and enjoy the
Leased Premises during the Initial Term and any Renewal Term and any extensions
or renewals thereof, without hindrance, ejection or disturbance by the Lessor or
by any person or persons claiming by, through or under the Lessor or by anyone
claiming paramount title.

19.   SUBORDINATION. The Lease and Lessee's interest hereunder, subject to the
provisions of this Paragraph 19, shall be subordinate to the lien of any present
or future mortgage or mortgages upon the Leased Premises or any property of
which the Leased Premises are a part, regardless of the time of execution or the
time of recording of any such mortgage or mortgages. Any subordination of this
Lease pursuant to the provisions of this Paragraph 19 is made and granted upon
the condition that, the holder of any such mortgage enters into an agreement
with Lessee by the terms of which such holder agrees (i) not to disturb the
possession and other rights of Lessee and (ii) in the event of any entry by the
holder of, any such mortgage to foreclose, a default under any such mortgage, a
foreclosure of any such mortgage of Lessor's interest under this Lease or in the
Leased Premises through foreclosure or otherwise, the Lessee shall (provided the
Lessee is not then in default beyond any applicable cure period) peaceably hold
and enjoy the Leased Premises as a Lessee of such holder, during the Lease Term
and any extensions or renewals thereof upon the terms, covenants and conditions
as set forth in this Lease without any hindrance or interruption from such
holder and shall not be named as a party defendant in any such action. In the
event of such entry, foreclosure, acquisition or other action by such holder,
Lessee shall recognize the holder of the mortgage with respect to which such
action is taken as the Lessor under this Lease. As used in this Paragraph 19,
the word "holder" includes any person claiming through or under any such
mortgage, including any purchaser at a foreclosure sale, and the word "Lessee"
shall include Lessee's successors and assigns, The word "mortgage" as used in
this Paragraph shall mean mortgages, deeds of trust, and other similar
instruments held by any institutional lender and all modifications, extensions,
renewals and replacements thereof.

      The Lessee agrees to execute such further documents in recordable form as
the Lessor or any lender may reasonably require, consistent with the terms of
this Paragraph 19 and 28.

20.   LESSOR'S ACCESS. The Lessor or agents of the Lessor may, at reasonable
times and upon reasonable prior notice to the Lessee, enter to view the Leased
Premises, and may remove placards and signs not approved and affixed as herein
provided, and make repairs and alterations all in a manner so as not to
unreasonably interfere with the normal conduct of Lessee's business. At any time
within the six (6)-month period prior to the expiration of the final Renewal
Term, or in the event that Lessee has given notice of its intention to terminate
this lease, the Lessor may show the Leased Premises to others, with reasonable
prior notice, all in a manner so as not to unreasonably interfere with the
normal conduct of the Lessee's business and the Lessor may affix to any suitable
part of the Leased Premises a notice for letting or selling the Leased Premises
or

                                       6
<PAGE>

property of which the Leased Premises are a part and keep the same so affixed
without hindrance or molestation.

21.   INDEMNIFICATION AND LIABILITY. The Lessee shall save the Lessor harmless
from all loss and damage occasioned by the use or escape of water or by the
bursting of pipes to the extent caused by the negligence of the Lessee or by any
nuisance made or suffered on the Leased Premises.

22.   LESSEE'S LIABILITY INSURANCE. The Lessee warrants and represents that
throughout the term of the Lease, Lessee shall carry liability insurance in the
amount of $2,000,000. Lessee shall name the Lessor as insured party on any
policy or policies of comprehensive public liability insurance and property
damage insurance maintained by Lessee now or hereafter that covers the premises
and shall provide Lessor with a certificate of such insurance prior to the
commencement date and thereafter upon the request of the Lessor. Lessor shall
maintain insurance on the Leased Premises for its full replacement value.

23.   FIRE, CASUALTY - EMINENT DOMAIN. Should the Leased Premises, or of the
property of which they are a part, be damaged by fire or other casualty, the
Lessor shall rebuild, repair or restore the Leased Premises to substantially the
same condition as they were in immediately prior to such damage except that the
Lessor shall not be required to do so by expenditure of more than the insurance
proceeds which it recovers. If the necessary work is such that it cannot be
completed within ninety (90) days or the damage occurs during the last six (6)
months of the term hereof and Lessee has not exercised its option to extend, the
Lessor may terminate this Lease. If there is a taking of a portion of the Leased
Premises by eminent domain, Lessor shall, if possible, attempt to provide an
equivalent facility upon the portion of the Leased Premises not taken. When such
fire, casualty, or taking renders the Leased Premises substantially unsuitable
for their intended use, a just and proportionate abatement of rent shall be
made, until such time as the Leased Premises or, the applicable portion thereof
are rebuilt, repaired so as to be suitable for Lessee's use. The Lessee may
elect to terminate this Lease if:

      (a)   in the case of fire or other casualty, if the insurance proceeds
            recovered or recoverable are insufficient to rebuild repair or
            restore the Leased Premises to the condition they were in
            immediately prior to such fire or other casualty,

      (b)   the Lessor in the case of fire or other casualty fails to file
            written notice within thirty (30) days of intention to restore
            Leased Premises; or

      (c)   the Lessor fails to restore the Leased Premises to substantially the
            same condition they were in prior to the fire, casualty or taking
            within ninety (90) days of said fire, casualty, or taking.

      The Lessor reserves, and the Lessee grants to the Lessor, all rights which
the Lessee may have for damages or injury to the Leased Premises for any taking
by eminent domain, except for

                                       7
<PAGE>

damage to the Lessee's fixtures, property or equipment, and Lessee's right to
relocation expenses. Nothing in this paragraph is to be construed to waive
Lessee's right to recover from Lessor a just and proportional abatement of rent
and additional rent paid in advance of any such taking by eminent domain.

24    DEFAULT AND BANKRUPTCY. In the event that:

      (a)   The Lessee shall default in the payment of any installment of rent
            or other sum herein specified and such default shall continue for
            fourteen (14) days after receipt of written notice that said sum is
            due and payable ; or

      (b)   The Lessee shall default in the observance or performance of the
            Lessee's covenants, agreements, or obligations hereunder and the
            Lessee shall not cure such default within thirty (30) days after
            receipt of written notice thereof or if such default cannot be cured
            within thirty (30) days, then if Lessee shall not commence to cure
            the same within thirty (30) days and diligently pursue the curing of
            the same; or

      (c)   The Lessee files a voluntary petition under the Bankruptcy Act or
            any other law seeking relief from debts, or if any assignment shall
            be made of Lessee's property for the benefit of creditors, or if any
            involuntary such proceeding shall be filed against the Lessee not
            discharged within sixty (60) days thereof.

      Then the Lessor shall have the right after the due process of law, while
such default continues, to re-enter and take complete possession of the Leased
Premises, to declare the term of this Lease ended, and remove the Lessee's
effects, without prejudice to any remedies which might be otherwise used for
arrears of rent or other default. The Lessee shall indemnify the Lessor against
all loss and reasonable payment of rent and other payments which the Lessor may
incur by reason of such termination during the residue of the term. In the event
of default, Lessor shall use its reasonable efforts to re-let the Leased
Premises so as to mitigate any damages to the Lessee hereunder. If Lessor
re-lets the Leased Premises, Lessee may offset its payable rent against the
amount of rent received by Lessor.

      If the Lessor shall default, after written notice thereof in the
observance or performance of any conditions or covenants on its part to be
observed or performed under or by virtue of any of the provisions of this Lease,
and Lessor shall not cure such default within thirty (30) days after written
notice thereof, or if such default cannot be cured within thirty (30) days, then
if Lessor shall not commence to cure the same within thirty (30) days and
diligently pursue the curing of the same, then Lessee, without being under any
obligation to do so, may remedy such default for the account and at the expense
of Lessor or may terminate the Lease, but in no event shall Lessee set off such
claim against its rental obligation.

      If the Lessee shall default, after written notice thereof as provided
herein, in the

                                       8
<PAGE>

observance or performance of any conditions or covenants on its part to be
observed or performed under or by virtue of any of the provisions of this Lease
and after the expiration of any period within which the Lessee is entitled to
cure such default as is provided above in this Paragraph 24, the Lessor without
being under any obligation to do so and without thereby waiving such default,
may remedy such default for the account and at the expense of the Lessee. If the
Lessor makes any expenditures or incurs any obligations for the payment of money
in connection therewith, such sums paid or obligations incurred, with interest
at the rate of eight (8.0%) per annum and costs, shall be paid to the Lessor by
the Lessee as additional rent.

      Lessor shall not be liable to Lessee for any compensation or reduction of
rent by reason of inconvenience or annoyance or for loss of business arising
from the necessity of Lessor or its agents entering the Leased Premises, or for
Lessor's repairing the Leased Premises if such repair is not performed by
Lessee, or for making repairs to the Leased Premises or part thereof, however
the necessity may occur. In case Lessor is prevented or delayed from making any
such repairs, or supplying the utilities or services provided for herein, or
performing any other covenant or duty to be performed on Lessor's part, by
reason of any cause beyond Lessor's control, Lessor shall not be liable to
Lessee therefor, nor shall Lessee be entitled to any abatement or reduction of
rent by reason thereof, nor shall the same give rise to a claim in Lessee's
favor that such failure constitutes actual or constructive, total or partial,
eviction from the Leased Premises, or any portion thereof, provided however that
if such failure to provide utilities, services, or repairs shall render the
Leased Premises untenantable and shall continue for five (5) consecutive days
after written notice from Lessee to Lessor, then Lessee shall be entitled to an
abatement of rent and if the failure continues for a total of twenty (20)
consecutive days then Lessee may terminate this Lease.

23.   PARAGRAPH HEADINGS. The paragraph headings throughout this instrument are
for convenience and reference only, and the words contained therein shall in no
way be held to explain, modify, amplify or aid in the interpretation,
construction or meaning of the provisions of this Lease.

24.   ESTOPPEL CERTIFICATE. Lessor and Lessee each agree at any time from time
to time, upon not less than ten (10) days prior notice to execute, acknowledge
and deliver to the other, a statement in writing, certifying to the extent
possible that this Lease is unmodified and in full force and effect, or if there
have been modifications, that the same is in full force and effect as modified
and stating such modifications and otherwise certifying if there exists any
default under the terms of this Lease and such other information as may be
reasonably requested concerning this Lease by the other party or any other third
party with a bona fide interest.

25.   NOTICE. Any notice from the Lessor to the Lessee relating to the Leased
Premises or to the occupancy thereof shall be deemed duly served, if in writing
and mailed, registered or certified mail, return receipt requested, postage
prepaid, addressed to the Lessee at the Leased Premises with a copy to,

                                       9
<PAGE>

               Mark A Rossi and General Counsel
               Merrill Communications LLC
               One Merrill Circle
               St Paul, Minnesota 55108
or at such address as the Lessee may from time to time advise in writing. Any
notice from the Lessee to the Lessor relating to the Leased Premises or to the
occupancy thereof, shall be deemed duly served, if in writing and mailed to the
Lessor by registered or certified mail, return receipt requested, postage
prepaid, addressed to the Lessor at such address as the Lessor may from time to
time advise in writing. All rent and notices shall be paid and sent to the
Lessor at:

               William Shea, General Partner
               Ames Realty Associates
               21 Properzi Way
               Somerville, MA 02143

26.   SURRENDER. The Lessee shall at the expiration or other termination of this
Lease remove all Lessee's goods and effects from the Leased Premises (including,
without hereby limiting the generality of the foregoing, all signs and lettering
affixed or painted by the Lessee, either inside or outside the Leased Premises).
Lessee shall deliver to the Lessor the Leased Premises and all keys, locks
thereto, and all fixtures, alterations and additions made to or upon the Leased
Premises, except for moveable partitions trade fixtures, equipment and
furnishings installed at the Lessee's expense, in the same condition as they
were at the commencement of the term, or as they were put in during the term
hereof, reasonable wear and tear and damage by fire, other casualty or eminent
domain and matters for which the Lessor is responsible hereunder only excepted.
All movable partitions, trade fixtures equipment and furnishings, installed in
the Leased Premises at the Lessee's expense during the term of the Lease may be
removed by the Lessee at the expiration or other termination of this Lease The
Lessee at its expense promptly repair any and all damages to the Leased Premises
resulting from such removal. In the event of the failure of the Lessee to remove
any of the Lessee's property from the Leased Premises, Lessor is hereby
authorized, upon fifteen (15) days' written notice to the Lessee without
liability to the Lessee for loss or damage thereto, and at the sole risk of
Lessee to remove and store any of the property at Lessee's expense.

                                       10
<PAGE>

      IN WITNESS WHEREOF, the Lessor, and the Lessee, have hereunto set their
hands and common seals as of this 31st day of March, 2000.

LESSOR:

AMES REALTY TRUST

By:   /s/ Walter Mclaughlin                      /s/ Illegible
      ---------------------------------          -------------------------------
      Trustee                                    Witness

      /s/ William Shea                           /s/ Illegible
      ---------------------------------          -------------------------------
      Trustee                                    Witness

      ---------------------------------          -------------------------------
      Trustee                                    Witness

LESSEE:

MERRILL COMMUNICATIONS LLC

By: /s/ Mark A. Rossi
    ----------------------------------------
      Mark A. Rossi

Its:  President
      Investment Company Services

                                       11

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