DeluxeSHARES

Am I a qualified person?
If you're reading this, it's a very good possibility. If you were a part- or full-time employee on January 30, 1998 and you left the company because of qualified severance, qualified retirement, disability or death, you (or your heirs, I guess!) are qualified.

So when can I make this purchase?
The option "vests" --- that is, you can buy the 100 shares --- on January 30, 2001, or when Deluxe's stock price exceeds $49.50. You have up to and including January 30, 2003 to make your purchase.

Do I have to buy 100 shares all at the same time?
Yes.

That's $3,300! If I'm out of a job and my savings are dwindling, how on earth will I pay for it?
Relax! There's a cashless exercise.That means you exercise the option, buy and sell the shares on the same day, and receive the net gain as a result. If the market value of the stock is $37 a share on that day, you'll make a tidy little sum of $400 (minus taxes, transfer fee and a $40 transaction fee). Just think what you'll earn if the price reaches the targeted amount of $49.50 --- a whopping $1,650 (minus all that stuff I just mentioned). Of course, if you have the cash, you might want to hold your shares and wait for the price to go higher.

What exactly should I do when the price reaches $49.50 or January 30, 2001 rolls around?
Norwest Investment Services will set up a stock option exercise telephone line to handle all DeluxeSHARES transactions. (The phone line will be part of 1-877-U-ASK-DLX after vesting occurs.) You will decide when you want to exercise your DeluxeSHARES option. You'll receive more information about your payment options and other exercise requirements when Deluxe stock moves closer to the $49.50 target, or late in 2000 when the three-year vesting date approaches, whichever occurs earlier.

If I leave the company because of qualified severance and change my address, how can I be sure I will receive more information?
The packet of information you received in June of 1998 included an "Address Change Form for DeluxeSHARES." Hang onto it and send it in if you move. You must provide the name of your organization (Deluxe Financial Services), the plant number and location (Richmond 1059) and the facility manager's name (Steve Cushman). You should also provide your name, employee number, social security number, effective date of address change, new address, phone number (with area code) and signature. This information should be mailed to:

Deluxe Corporation
Attn: Randy Hunt - Manager of Compensation
DHQ
3680 Victoria St., N.
Shoreview, MN 55126-2966