July 11, 2000



Mr. Michael Thyken
8859 Flesher Circle
Eden Prairie, Minnesota  55347


Dear Mike:

It is with  great  pleasure  that I confirm  the terms of your  employment  with
Select Comfort Corporation:

Effective  as of July 12,  2000,  you will be  joining  Select  Comfort  as Vice
President and Chief  Information  Officer.  Your annual salary will be $150,000.
You will also be granted  stock  options to purchase up to 40,000  shares of our
common stock,  vesting monthly over 36 months of employment.  The exercise price
of the stock  options will be the average of the high and low trading  prices on
July 12, 2000. In addition, you will be eligible to participate in the company's
management  incentive plan. The terms of the management  incentive plan for 2000
have not been  finalized as of this date,  but we currently  anticipate  that VP
level  executives  will  have a  target  bonus  of  approximately  35%  of  base
compensation paid during the year.

You will be eligible for the following  company  benefits the first of the month
following thirty days of employment:  medical,  dental,  flex account,  life and
AD&D insurance,  supplemental life and AD&D insurance, long-term disability, and
travel accident insurance.  You will be eligible to participate in the Company's
401(k) plan the first of the month  following  your start date,  and in Employee
Stock Purchase Plan (ESPP) the first offering period  following your start date.
You will be eligible  for product  discounts  under the Employee  Purchase  Plan
thirty (30) days from your start date.  You will be covered  under the Company's
short-term  disability  plan  after six (6)  months of  employment.  You will be
eligible  for  Select  Comfort's  Education  Assistance  Program  after you have
completed one year of full-time employment. We have enclosed further information
regarding  our  benefits  package for your  review,  and these  benefits  can be
explained in greater detail during your new hire orientation.

You will  accrue  Paid  Time  Off  (PTO)  at a rate of 3.69  hours  per week per
calendar  year. We will make an exception to our standard PTO accrual  policy to
accommodate   your  planned   vacation   during  the  week  of  July  24,  2000.
Additionally, you will be eligible for company holidays.

Your  employment is conditioned  upon your signing our standard form of Employee
Inventions,  Confidentiality  and  Non-Compete  Agreement,  a copy of  which  is
enclosed. Please let me know if you have any questions regarding that agreement.

You should  understand  that this  letter  does not  constitute  a  contract  of
employment,  nor is it to be construed as a guarantee of  continuing  employment
for any  period  of time.  Employment  with  Select  Comfort  is "at  will".



We recognize your right to terminate the employment  relationship at anytime and
for any  reason  and,  similarly,  we  reserve  the  right to  alter,  modify or
terminate the relationship at any time and for any reason.

Mike, we are very excited about your joining our management team. Select Comfort
is on the  brink of an  exciting  and  challenging  era,  and I feel  with  your
background and skills you will be able to provide a significant  contribution to
our company and its success.

Please contact me at (952) 918-3020 with any questions or comments.

Sincerely,

/s/ Mark A. Kimball

Mark A. Kimball
Senior Vice President