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For folder excludes you would use the File Excludes tab and simply select the folder you would want to exclude and click Save.
Merging recovery points
It is possible to manually merge Recovery Points. The process of is a merge between the unwanted recovery point and closest existing recovery point created since the unwanted Recovery Point was taken. Merging involves deleting a Recovery Point and any Deltas specific to that Recovery Point that are not needed by other existing Recovery Points.
Navigate to the Recovery Points page and check the box for points which you wish to merge. More than one can be selected at a time. Once you have selected these points, clicking on the Merge Selected button will merge them. A popup will appear asking if you wish to perform the action. If you wish to merge the points then click on the Merge option, otherwise Cancel will return you to the Recovery Points page for your server.