Document:

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                                                                    EXHIBIT 10.2

                    SEPARATION AGREEMENT AND GENERAL RELEASE

AGREEMENT made as of April 10, 2001 by and between Kenneth J. H. Pinkes
("Employee," "You" or "Your") and Moody's Investors Service, Inc. (the "Company"
or "We"). In consideration of the promises and conditions set forth below, and
intending to be legally bound, you and the Company agree as follows:

1. Resignation from Employment:

(a) The Company hereby accepts your April 10, 2001 resignation from your
employment with the Company, effective on May 15, 2001. You agree that,
effective as of the resignation date, you were relieved of all management and
operational responsibilities and authority to act on behalf of the Company, but
you will fully cooperate with the Company to provide such information or
assistance as it may deem necessary to ensure an orderly transition of your
former duties. You will continue to receive salary and applicable benefits
through the May 15, 2001 effective date.

(b) You acknowledge that the Company will be issuing a public statement and an
internal announcement concerning your resignation and its surrounding
circumstances in content substantially similar to the draft statement attached
as Appendix "A," and you agree that the Waiver and Release set forth in
paragraph 5 herein includes, inter alia, your release of any claim you might
have arising out of or related to the issuance of Exhibit A or of any statements
substantially similar in content to it.

(c) During the Salary Continuation Period and through the duration of the
investigation being conducted by the United States Department of Justice ("DOJ")
and any litigation or regulatory proceeding arising out of the DOJ
investigation, the facts underlying that investigation or any facts arising out
of, or relating to, your employment, you will be reasonably available to consult
on matters, and will cooperate fully with the Company with respect to any
claims, litigations or investigations, relating to the Company (including
investigations which relate directly or indirectly to Employee's activities at
the Company) by providing truthful and complete information and making yourself
available to provide testimony whenever requested to do so by the Company.

2. Severance Benefit: If you sign this Agreement and comply with its terms, we
will provide you the following severance benefits:

(a) We will continue to pay you salary and provide certain other benefits in
accordance with and pursuant to the terms and conditions of The Moody's Career
Transition Plan ("CTP"); provided, however, that the period of your Salary
Continuation will extend from the effective date of your resignation until the
last date of salary continuation stated in Appendix "B" (the "Salary
Continuation Period"). In lieu of the outplacement services provided for in
Appendix B, you may elect to receive a payment of $20,000, less deductions.

(b) We will pay you an amount representing 1/3 of your 2001 Target Bonus, less
applicable deductions, within 10 business days after the effective date of your
resignation. You acknowledge that the severance benefits described above include
compensation and benefits in addition to what you would otherwise be entitled to
receive.

3. Undertaking: Your receipt of the severance benefits specified above is
subject to your signing the letter of undertaking in the form annexed hereto as
Appendix "C" (the "Undertaking").

4. Company Property: You acknowledge that you will not retain or remove (and if
you had removed, you will promptly return) any of the Company's or Dun &
Bradstreet's property, documents, information or materials, including, but not
limited to, all files, records, proposals, drawings, specifications, or other
documents, and all computer software, software applications, files, data bases,
and the like relating to the business of the Company or Dun & Bradstreet
(whether confidential, proprietary or otherwise), and you agree to deliver to
the Company forthwith any such property currently in your possession or custody
or under your control.

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5. Waiver and Release:

(a) In exchange for the promises and commitments made to you by the Company in
this Agreement and the Undertaking, and as a material inducement for such
promises and commitments, you hereby WAIVE, RELEASE and FOREVER DISCHARGE the
Company and/or related persons from any and all claims, rights and liabilities
of every kind, whether or not you now know them to exist, which you have ever
had or may in the future have based upon any matter, cause or thing through the
date of this Agreement, including but not limited to those claims arising out of
your employment with the Company or termination of that employment, except for
payments and rights provided for in this Agreement, for vested rights or
benefits you may have under any applicable Company benefit plan (or the benefit
plan of a predecessor or related entity), for any rights you may have to claim
indemnification (either under the Company's by-laws or under the provisions of
Delaware General Corporation Law) or to claim coverage under any applicable
liability insurance policy relating to your acts while employed by the Company.
This WAIVER and RELEASE includes, but is not limited to, any claim for unlawful
discrimination under Title VII of the Civil Rights Act of 1964, as amended, the
Americans with Disabilities Act of 1990, 42 U.S.C. Section 1981, the Worker
Adjustment and Retraining Notification Act ("WARN"), and the Family and Medical
Leave Act of 1993, and any violation of any other federal, state or local
constitution, statute, rule, regulation or ordinance, or for breach of contract,
wrongful discharge, tort or other civil wrong. To the fullest extent permitted
by law, you PROMISE NOT TO SUE or bring any charges, complaints or lawsuits in
the future related to the claims you are waiving by this Agreement against the
Company and/or related persons, individually or as a member of a class, and you
will immediately withdraw with prejudice any such charges, complaints and
lawsuits that you began before signing this Agreement.

(b) If you violate this Agreement by bringing or maintaining any charges,
claims, grievances, or lawsuits contrary to this Paragraph 5, you will pay all
costs and expenses of the Company and/or related persons in defending against
such charges, claims or actions brought by you or on your behalf, including
reasonable attorneys' fees, and will be required to give back, at the Company's
sole discretion, the value of anything paid by the Company in exchange for this
Agreement. This subparagraph does not apply to any actions to enforce the terms
of this Agreement.

(c) As referred to in this Agreement, "the Company and/or related persons"
includes the Company, its parents, subsidiaries, affiliates and divisions, their
respective successors and assigns, and all of their past and present directors,
officers, representatives, agents, employees, whether as individuals or in their
official capacity, and the respective heirs and personal representatives of any
of them.

(d) This WAIVER, RELEASE and PROMISE NOT TO SUE is binding on you, your heirs,
legal representatives and assigns.

         6. Non-disparagement: You will not disparage, denigrate or defame the
Company or any related person, or any of their business products or services.

         7. Non-Disclosure: You agree that you will not directly or indirectly
take, publish, use or disclose any Confidential Information, to any person,
except as may be required by law, provided that you have first given prompt
written notice to the Company of such legal requirement in enough time for it to
obtain an appropriate protective order or other remedy. For purposes of this
Agreement, "Confidential Information" shall include, but not be limited to, all
past, present or future business or trade secrets, know-how and other
information, whether or not reduced to writing, that is disclosed to or acquired
by you during or in the course of your employment that relates to the business
of the Company and is not generally available to the public or generally known
in the industry in which the Company is, or may become engaged, including,
without limitation, any business, technical, marketing, financial or other
information relating to the Company, regardless of its form, means of
communication or source, and any formulas, patterns, devices, inventions,
methods, techniques, software programs, source codes, reports, specifications,
designs, technology or processes, or combinations thereof, or compilations of
information, records and specification which are owned by the Company and any
other information of the Company relating to its services and products (offered
or to be offered) including, among other things, information relating to
research, development, marketing, pricing, clients and prospective clients,
business methods, strategies, financial condition, personnel, plans, policies or
prospects.

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8. Non-Competition; Non-Solicitation:

(a) You agree that during the Salary Continuation Period, you will not become a
stockholder (unless such stock is listed on a national securities exchange or
traded on a daily basis in the over-the-counter market and your ownership
interest is not in excess of 2% of the company whose shares are being
purchased), employee, officer, director or consultant of or to a corporation, or
a member or an employee of or a consultant to a partnership or any other
business or firm, which competes with any of the businesses owned or operated by
the Company; nor if you become associated with a company, partnership or
individual which company, partnership or individual acts as a consultant to
businesses in competition with the Company will you provide services to such
competing businesses. The restrictions contained in this paragraph shall apply
whether or not you accept any form of compensation from such competing entity or
consultant.

(b) You also agree that during the Salary Continuation Period, you will not (i)
directly or indirectly, either personally or on behalf of any other person or
entity (whether as director, stockholder, owner, partner, consultant, principal,
employee, agent or otherwise) solicit or entice any customers of the Company or
any businesses or organizations identified during your employment as a
prospective customer of the Company, to become customers of any business entity
which competes with any of the businesses owned or operated by the Company, or
(ii) recruit, solicit, employ or attempt to employ any employee of the Company
to become an employee of any business or entity.

(c) For purposes of this Paragraph 8, the Company's competitors are Standard &
Poor's Rating Services, Fitch IBCA, Inc., A.M. Best Company, and any of their
subsidiaries and affiliates. Nothing herein is intended to prevent you from
obtaining employment so long as such employment is consistent with your
obligations under this Agreement.

(d) You acknowledge that the restrictions contained in this Paragraph 8 are
appropriate and necessary for the protection of the business and goodwill of the
Company and are considered by you to be reasonable for such purpose.

9. No Other Assurances: You acknowledge that in deciding to sign this Agreement
you have not relied on any promises or commitments, whether spoken or in
writing, made to you by any Company representative, except for what is expressly
stated in this Agreement, the CTP and the Undertaking. This Agreement, the CTP
or the Undertaking constitute the entire understanding and agreement between you
and the Company, except as may otherwise be provided herein, and replace and
cancel all previous agreements and commitments, whether spoken or written, with
respect to the subject matter thereof. In the event of a conflict between the
language of the CTP and this Agreement, this Agreement shall be controlling.

10. Effect of Non-Enforcement: If any term, provision, covenant or restriction
contained in this Agreement, or any part thereof, is held by a court of
competent jurisdiction or any foreign, federal, state, country or local
government or any other governmental regulatory or administrative agency or
authority or arbitration panel to be invalid, void, unenforceable or against
public policy for any reason, the remainder of the terms, provisions, covenants
and restrictions of the Agreement shall remain in full force and effect.

11. Governing Law; Jurisdiction; Jury Trial Waiver: This Agreement shall be
construed, governed by and enforced in accordance with the laws of the State of
New York, without regard to its conflicts of law principles. Any action arising
out of or relating to this Agreement may, at the election of the Company, be
brought and prosecuted only in that State, and in the event of such election,
you consent to the jurisdiction and venue of any courts of or in such
jurisdiction and waive trial by jury.

12. Modification in Writing: This Agreement cannot be changed or modified except
by written agreement signed by both you and an authorized Company
representative.

13. Joint Preparation: The language of all parts of the provisions of this
Agreement shall in all cases be construed as a whole, extending to it its fair
meaning, and not strictly for or against any of the parties. The parties agree
that, in consultation with their attorneys, they have jointly prepared and
approved the language of the provisions of this Agreement and that should any
dispute arise concerning the interpretation of any provision hereof, neither
party shall be deemed the drafter nor shall any such language be presumptively
construed in favor of or against either party.

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14. No Admission of Liability: This Agreement does not constitute an admission
of any unlawful discrimination, wrongful acts or liability of any kind by the
Company and/or related persons, or anyone acting under their supervision or on
their behalf. This Agreement does not constitute an admission of any wrongful
conduct of any kind by you. This Agreement may not be used or introduced as
evidence in any legal proceeding, except to enforce its terms.

15. Employee Acknowledgement: In signing this Agreement, you acknowledge and
adopt the following declaration:

I Kenneth J. H. Pinkes, acknowledge that I have carefully read and considered
this Agreement; that I have been given the opportunity to review this Agreement
with legal or other advisors of my choice; that I understand that by signing
this Agreement I RELEASE legal claims and WAIVE certain rights; and that I
freely and voluntarily consent to all terms of this Agreement with full
understanding of what they mean.

KENNETH J. H. PINKES                      MOODY'S INVESTORS SERVICE, INC.

_____________________________             By:___________________________________

                                                   John Rutherfurd,
Date:_________________________                        President

Appendix A

The company also announced today that Donald E. Noe, Senior Vice President -
Global Ratings & Research, Kenneth J.H. Pinkes, Senior Vice President and Chief
Credit Officer, and M. Douglas Watson, Jr., Group Managing Director, Public
Finance, had submitted their resignations and the company has accepted them
effective May 15, 2001.

The company emphasized that none of the three individuals resigning today
engaged in destruction of documents or any obstruction of justice referred to in
the company's plea agreement with the Justice Department. However, issues arose
regarding the timeliness of the executives' reporting of information relating to
the conduct by another employee underlying the government's charges.

Mr. Rutherfurd said, "Don, Ken and Doug each have provided long and valuable
service to the company. We appreciate that they recognize their resignations are
in the best interest of Moody's, and help the company to put this behind us. We
are grateful for their service to the company and wish them well in the future."

Appendix B

Kenneth J. H. Pinkes

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Termination Date: May 15, 2001
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Salary Continuation Period.:
May 16, 2001 -  February 15, 2003
Last day of Salary Continuation:
February 15, 2003
Welfare Benefit Continuation Period:
May 16, 2001  - February 15, 2003
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Outplacement Services: As provided by the Company to a
maximum of $20,000

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The description of benefits contained in this Appendix B is only a summary and
is subject to the terms and conditions of the CTP and this Agreement.
The employee will receive 100% of the Performance Cash Plan Opportunity for the
2000 Performance Period pursuant to and in accordance with the terms of the 1998
Dun & Bradstreet Corporate Key Employees Stock Incentive Plan.

Stock Options: Employee may exercise any vested stock options which he may have
pursuant to and in accordance with the terms and conditions of the CTP and the
applicable stock option plan which, inter alia, entitle him to exercise his
vested stock options up to May 15, 2001.

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Appendix C

Moody's Investors Service, Inc.
99 Church Street, New York, NY 10007
Legal Department
April 10, 2001
Kenneth J. H. Pinkes
New York, New York

Re: Undertaking For Reasonable Attorneys' Fees:

Dear Mr. Pinkes:

Moody's Investors Service, Inc. ("Moody's") has made a determination at this
point to advance to you your reasonable attorneys' fees actually and necessarily
incurred by you, on account of any litigation, claim, or official investigation
arising out of the United States Department of Justice ("DOJ") investigation,
the facts underlying that investigation, or any facts arising out of, or
relating to, your employment (the "Proceedings").

These attorneys' fees are being paid to you only on the terms set forth in this
letter and the Separation Agreement and General Release dated April 10, 2001
between Moody's and you, and pending a later determination by Moody's that you
should be indemnified for such attorney's fees. In order to indemnify you for
such attorney's fees, Moody's must find that:

a) No final judgment or other final adjudication by a court or government agency
adverse to you establishes that your acts were in violation of the law,
committed in bad faith, or were the result of active or deliberate dishonesty,
or that you personally gained in fact a financial profit or other advantage to
which you were not legally entitled and that you otherwise are eligible for
indemnification under applicable by-laws or law. In order for Moody's to
continue to pay your reasonable attorneys' fees, it is necessary that you
promise to repay such monies, in case you are ultimately found not to be in
compliance with paragraph a) above in connection with the Proceedings, and/or
you fail to continue to provide truthful and complete information to the Company
at all times in connection with the Proceedings. Your signature on this letter
will constitute your promise to repay if required.

If the foregoing is acceptable to you, please indicate by signing in the space
provided below.

Sincerely yours,
John J. Goggins

Senior Vice President and General Counsel
On Behalf of Moody's Investors Service, Inc.

ACCEPTED TO AND AGREED:
Kenneth J. H. Pinkes
Dated:  April 10, 2001

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                       Baldwin Technology Company, Inc.
                              12 Commerce Drive
                                 P.O. Box 901
                            Shelton, CT 06484-0941
                              Tel: 203-402-1000
                              Fax: 203-402-5500

                                March 19, 2001

Mr. Gerald A. Nathe
11448 Bronzedale Drive
Oakton, VA 22124

Dear Mr. Nathe:

        This Agreement sets forth the terms of your employment with Baldwin
Technology Company, Inc., a Delaware corporation (the "Company"), it
supersedes our agreement dated November 25, 1997, and it is effective as of
March 19, 2001.

        1. DUTIES. During the term of your employment hereunder, you shall be
employed as the President and the Chief Executive Officer of the Company, and
you shall direct and manage the business, affairs, and property of the Company
subject to the direction of the Board of Directors of the Company (the "Board
of Directors").

        2. COMPENSATION. As compensation for your services during the term of
your employment hereunder:

                  A. Salary. You shall be paid a salary at the annual rate of
three hundred thirty-three thousand nine hundred dollars ($333,900) (the "base
salary"), payable in appropriate installments to conform with regular payroll
dates for salaried personnel of the Company.

                  B. Reviews and Adjustments. As of July 1, 2001 and each
succeeding July 1 during the term of your employment hereunder, your
performance shall be reviewed by the Board of Directors, your attainment of
mutually agreed-upon objectives shall be evaluated, and the base salary

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payable to you for the twelve (12) months beginning on such July 1 may be
adjusted upward (but not downward) by the Board of Directors.

                  C. Incentive Compensation. During the term of your
employment hereunder, and at such other times subsequent thereto as are
otherwise set forth herein, you shall be paid annually, no later than ninety
(90) days after the end of each fiscal year, beginning with the fiscal year
ending June 30, 2001, incentive compensation which shall be determined under
the Company's Executive and Key Person Cash Incentive Program.

                  D. Deferred Compensation. You shall be paid, at such times
as are set forth in this Agreement, deferred compensation based upon an amount
equal to a range from forty percent (40%) to fifty percent (50%) of your Final
Average Pay (the "Deferred Compensation"), which percent shall be set at any
time, and may be set from time to time, by the Board of Directors; provided,
however, that such percent shall in no event be set later than the time at
which your Final Average Pay is to be determined hereunder. For purposes of
this Agreement, the term "Final Average Pay" shall mean an amount equal to (i)
the total of (a) the sum of the base salary and incentive compensation paid to
you with respect to each of the two (2) fiscal years ending immediately
preceding the fiscal year in which you become entitled to the Deferred
Compensation, plus (b) the base salary and incentive compensation payable to
you at the time that you become entitled to the Deferred Compensation
(annualized to twelve (12) months), (ii) divided by three (3). The amount of
the foregoing percent (as so determined by the Board of Directors) of your
Final Average Pay, when calculated, shall then be restated to a monthly amount
by dividing such amount by twelve (12) (the "Monthly Amount"), and the Monthly
Amount shall be paid monthly, to you or your estate, as the case may be,
beginning on the day set forth in this Agreement, for a period of one hundred
eighty
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(180) months or the period ending with the month of your death, whichever is
longer. In this regard, if you die after the date on which you first become
entitled to payment of the Deferred Compensation, whether or not the first
payment of the Monthly Amount has been made, and prior to the payment of the
Monthly Amount for one hundred eighty (180) months, the Monthly Amount shall be
paid monthly for the balance of such one hundred eighty (180) month period to
the beneficiary or beneficiaries designated by you in writing to the Company,
or, if none are designated, to your estate. As of July 1, 2000 the amount of
Deferred Compensation has vested to the extent of one hundred percent (100%) so
that as of the date of this Agreement the full amount determined by the
foregoing formula is due and payable to you in the instances as set forth
elsewhere in this Agreement.

         3. CLASS A STOCK AND CLASS B STOCK.

                  A. Class A Stock.

                           (i) The Company shall issue or transfer to you, at
such times when you have earned them and at no cost to you, a total of one
hundred sixty thousand (160,000) shares of the Company's Class A Common Stock,
par value $.01 per share ("Class A Stock") in four (4) equal installments of
forty thousand (40,000) shares each. You will be deemed to have earned the
first of the four (4) installments of forty thousand (40,000) shares of Class
A Stock on a date when the closing price of the Class A Stock on the American
Stock Exchange (the "Fair Market Value") reaches seven and 875/1,000 dollars
($7.875); each of the three (3) subsequent installments of Class A Stock shall
similarly be deemed to be earned by you when the Fair Market Value of the
Class A Stock increases by an additional two dollars ($2.00) per share over
the Fair Market Value at which the previous installment was earned. A stock
certificate for the Class A Stock so earned shall be

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issued and delivered to you within fifteen (15) days of the date such Class A
Stock was deemed to be earned by you.

                           (ii) In the event of a reorganization,
recapitalization, change of shares, stock split, spinoff, stock dividend,
reclassification, subdivision or combination of shares, merger, consolidation,
rights offering, or any other change in the corporate structure or shares of
capital stock of the Company, the number of shares and increase in price of
the Fair Market Value as stated in Paragraph 3A(i) hereof shall be adjusted
appropriately.

                           (iii) With regard to each installment of the Class
A Stock issued under Paragraph 3A(i) hereof, the Company grants to you the
right to require the Company to include the Class A Stock issued to you in any
registration statement that the Company may file in the future (such right to
be known as the "Piggy-Back Registration Rights"). In the event the Company
does not file and cause to become effective a registration statement
subsequent to your earning each installment of the Class A Stock as outlined
in Paragraph 3A(i) hereof on which you could have exercised your Piggy-Back
Registration Rights, the Company further grants to you a one-time right to
demand that the Company file and cause to become effective a registration
statement for each installment of the Class A Stock issued to you under
Paragraph 3A(i) hereof, by written notice to the Company (such right to be
known as the "Demand Registration Right"). In the event you notify the Company
of your exercise of a Demand Registration Right, the Company shall use its
best efforts to have a registration statement with respect to the Class A
Stock issued under Paragraph 3A(i) hereof prepared, filed, and declared
effective by the Securities and Exchange Commission as soon as practicable.
Notwithstanding anything in this Paragraph 3A(iii) to the contrary, the
Company shall not be required to file a registration statement during the
period between (a) the date on which

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its financial statements for any fiscal year become available and (b) the date
on which it is required to file an annual report with respect to such fiscal
year on Form 10-K under the Securities Exchange Act of 1934; provided,
however, that the Company shall during such period be required to continue to
use its best efforts to prepare such registration statement for filing and to
file such registration statement as soon as possible after the date described
in clause (b) above. Your right to exercise each Demand Registration Right
shall expire, respectively, on or before the earlier of (c) the date the
Company files and causes to become effective a registration statement on which
you could have exercised your PiggyBack Registration Right for each
installment of Class A Stock issued under Paragraph 3A(i) hereof, or (d) three
(3) years after the date each installment of shares of the Class A Stock is
issued to you under Paragraph 3A(i) hereof.

                  B. Class B Stock.

                           (i) In order to facilitate your purchase of three
hundred fifteen thousand one hundred forty-four (315,144) shares of the
Company's Class B Common Stock, par value $.01 per share (the "Class B
Stock"), the Company, on November 30, 1993, loaned to you one million eight
hundred seventeen thousand three hundred twenty-one dollars and sixteen cents
($1,817,321.16) (the "Loan"). The Loan was made pursuant to a Loan and Pledge
Agreement dated November 30, 1993, which was amended on November 25, 1997 by
an Amended and Restated Loan and Pledge Agreement (the "Amended Agreement"),
and is evidenced by a demand promissory note dated November 30, 1993 (the
"Note"). As of November 25, 1997 the principal balance outstanding under the
Note was one million five hundred thousand dollars ($1,500,000). The Note
bears interest, payable annually, at a rate equal to the Company's borrowing
rate (as adjusted quarterly) on its U.S. short-term banking facilities. The
Amended Agreement provides that if your employment under this

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Agreement terminates for any reason other than death or for "cause," as the
term "cause" is defined in Paragraph 9C hereof, the Company will not demand
payment of the outstanding principal of and accrued interest on the Note for a
period of six (6) months after such termination, or for a period of twelve
(12) months after such termination in the case of your death. Notwithstanding
anything to the contrary contained in this Paragraph 3B(i), at any time that
you sell any of the shares of Class B Stock while any amount of the Note
remains unpaid, you shall, within five (5) days of receipt of the funds from
such sale, pay to the Company, in repayment of part or all, as the case may
be, of the Loan, an amount equal to five dollars and seventy-seven cents
($5.77) times the number of shares of the Class B Stock so sold, but not in
excess of the unpaid balance of the Loan, plus interest, as set forth in this
Paragraph 3B(i), on the amount so repaid to the extent that such interest
accrued to the date of such repayment.

                           (ii) Except as provided in Paragraph 3B(iii)
hereof, upon your death the Company shall be required to redeem from the
personal representative of your estate (the "Personal Representative") the
aggregate of (a) all shares of Class B Stock that are owned by you at the time
of your death, plus (b) the aggregate of all shares of Class B Stock that are
acquired by the Personal Representative after your death pursuant to (1) your
exercise prior to your death of any options to purchase shares of Class B
Stock (the "B Options"), plus (2) the Personal Representative's timely
exercise of any B Options owned by you at the time of your death (the
aggregate of such shares of Class B Stock being referred to herein as the
"Date of Death Class B Shares").

                           (iii) Notwithstanding anything to the contrary
contained in Paragraph 3B(ii) hereof, the number of the Date of Death Class B
Shares required to be redeemed from the Personal Representative shall be
limited to the quotient determined by dividing (a) the aggregate of

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(1) the unpaid balance of the Loan, plus (2) the accrued interest on the Loan,
as such unpaid balance and accrued interest exist at the date of your death
(together the "Loan Amount Due"), by (b) the aggregate of (1) the mean average
(the "Average") of the closing price of a single share of Class A Stock on the
American Stock Exchange on each of the ten (10) trading days immediately
preceding the date of your death, plus (2) an amount equal to ten percent
(10%) of the Average (such limited number being referred to herein as the
"Maximum Required-To-Be-Redeemed Class B Shares").

                           (iv) To the extent that the number of the Date of
Death Class B Shares exceeds the number of the Maximum Required To-Be-Redeemed
Class B Shares (such excess being referred to herein as the "Excess Number of
Class B Shares"), the Personal Representative shall be entitled to either (a)
sell to any buyer or buyers such number of the Excess Number of Class B Shares
that the Personal Representative chooses to sell, (b) convert, pursuant to
Article FOURTH (3) of the Company's Restated Certificate of Incorporation, on
or prior to such date that is ten (10) months after the date of your death,
such number of the Excess Number of Class B Shares that the Personal
Representative chooses to convert (the "Converted Number of Shares") into such
number of Class A Shares that equals the Converted Number of Shares; i.e., a
one-to-one conversion, or (c) any combination of the foregoing items (a) and
(b). The Class A Shares to be delivered by the Company to the Personal
Representative on any such conversion shall be issued pursuant to an exemption
from registration under the Securities Act of 1933, as amended, without a
restrictive legend, and shall be delivered to the Personal Representative at
least forty-two (42) days prior to the date that the Company redeems from the
Personal Representative the Maximum Required-To-Be-Redeemed Class B Shares;
provided, however, that the Company shall redeem from the Personal

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Representative the Maximum Required-To-Be-Redeemed Class B Shares not more than
fifty (50) days after such date of any such delivery of Class A Shares.

                           (v) In the event that, at the time of your death,
you own any unexercised B Options, and the Personal Representative fails to
timely exercise all of such unexercised B Options as set forth in Paragraph
3B(ii)(b)(2) hereof, then the Personal Representative shall be treated as
having relinquished, and turned over, to the Company, on the day immediately
succeeding the end of the timely-exercise period, all unexercised B Options,
and such unexercised B Options shall become null and void, and completely
unexerciseable.

                  (vi) The Company's redemption from your Personal
Representative of the Maximum Required-To-Be-Redeemed Class B Shares is
intended by you and the Company to qualify as a "distribution in part or full
payment in exchange for stock" within the meaning of Section 302(a) of the
Internal Revenue Code of 1986, as amended (the "Code"), as a redemption
described in either Section 302(b)(2) of the Code or Section 302(b)(3) of the
Code, and the Company shall consult, and cooperate, with the Personal
Representative's tax advisor, to facilitate such exchange treatment under
Section 302(a) of the Code; provided, however, that doing so does not result
in any unreimbursed cost or expense to the Company.

         4. LIFE INSURANCE.

                  A. The $500,000 Policy. During the term of your employment
hereunder, the Company shall continue to pay the premiums on an existing
contract of life insurance on your life in the amount of five hundred thousand
dollars ($500,000), which contract is currently owned by your spouse, and
pursuant to which your spouse is the sole beneficiary.

                                      8
<PAGE>   9

                  B. The $2,000,000 Policy. During the term of your employment
hereunder, the Company shall continue to pay the premiums on an existing
contract of life insurance on your life in the amount of two million dollars
($2,000,000), which contract is currently owned by the GAN Irrevocable Trust,
dated July 31, 2000, under which you are the creator and your spouse is the
initial trustee (the "Trust"), and pursuant to which the Trust is the sole
beneficiary.

                  C. The $3,000,000 Policy.

                           (i) During the term of your employment hereunder,
the Company shall continue to pay the premiums on an existing contract of life
insurance on your life in the amount of three million dollars ($3,000,000),
which contract is currently owned by the Company, and pursuant to which the
Company is the sole beneficiary.

                           (ii) The Company shall reserve, from the proceeds
of the contract referred to in Paragraph 4C(i) hereof (the "Proceeds"), the
redemption price of the Maximum Required-To-Be-Redeemed Class B Shares (the
"Redemption Price"), and the Redemption Price shall be paid to the Personal
representative in money by certified check or official bank check payable to
the order of the Personal Representative.

                           (iii) The Personal representative shall use the
Redemption Price to pay all of the Loan Amount Due, or such part of the Loan
Amount Due that equals the Redemption Price.

         5. REIMBURSEMENT OF EXPENSES. In addition to the compensation
provided for herein, the Company shall reimburse to you, or pay directly, all
reasonable expenses incurred by you in connection with the business of the
Company, and its subsidiaries and affiliates, including but not limited to
business-class travel if overseas, reasonable accommodations, and
entertainment, subject to documentation in accordance with the Company's
policy. In this connection, it is

                                      9
<PAGE>   10

understood that certain business of the Company will require the presence of
your spouse, and this Paragraph 5 applies as well to such expenses relating to
her.

                                      10
<PAGE>   11

        6. EXTENT OF SERVICES.

                  A. In General. During the term of your employment hereunder
you shall devote your best and full-time efforts to the business and affairs
of the Company.

                  B. Limitation on Other Services. During the term of your
employment hereunder, you shall not undertake employment with, or participate
in, the conduct of the business affairs of any other person, corporation, or
entity, except at the direction or with the written approval of the Board of
Directors; provided, however, that this Paragraph 6B shall not apply to the
affairs of your family's farming and ranching activities in Montana and the
States and Canadian Provinces adjoining Montana.

                  C. Personal Investments. Nothing herein shall preclude you
from having, making, or managing personal investments which do not involve
your active participation in the affairs of the entities in which you so
invest, but, unless approved in writing by the Board of Directors, during the
term of your employment hereunder, you shall not have more than a one percent
(1%) ownership interest in any entity which is directly competitive with any
business conducted by the Company at that time. The phrase "conducted by the
Company" as used in this Paragraph 6C and in Paragraph 13 hereof shall mean
the business conducted by the Company or by any corporation or other entity in
which the Company owns stock possessing fifty percent (50%) or more of the
stock (either voting or non-voting) in such corporation or fifty percent (50%)
or more of the equity interests (either voting or non-voting) in such other
entity (a "Subsidiary").

         7. LOCATION. Your duties hereunder shall be performed for the Company
worldwide, with particular emphasis in the Company's office in Shelton, CT.

         8. VACATION; OTHER BENEFITS.

                                      11
<PAGE>   12

                  A. Vacation. During the term of your employment hereunder,
you shall be entitled to a vacation or vacations, with pay, totalling four (4)
weeks in each fiscal year. You may accumulate up to twelve (12) weeks
vacation, but not more than three (3) weeks from any single prior year. Any
such accumulated vacation may be used in any subsequent year or years in
addition to the four (4) weeks of vacation to which you are entitled for each
such year.

                  B. The Company's Benefit Plans. During the term of your
employment hereunder, you shall be eligible for inclusion, to the extent
permitted by law, as a full-time employee of the Company or any Subsidiary, in
any and all (i) pension, profit sharing, savings, and other retirement plans
and programs as in effect at the time, (ii) life and health (medical, dental,
hospitalization, short-term and long-term disability) insurance plans and
programs as in effect at the time, (iii) stock option and stock purchase plans
and programs as in effect at the time, (iv) accidental death and dismemberment
protection plans and programs as in effect at the time, (v) travel accident
insurance plans and programs as in effect at the time, and (vi) other plans
and programs at the time sponsored by the Company or any Subsidiary for
employees or executives generally as in effect at the time, including any and
all plans and programs that supplement any or all of the foregoing types of
plans or programs (except for any annual bonus plan, other than the incentive
compensation payable under Paragraph 2C hereof, for employees in general).

                  C. Automobile, Club, and Professional Services. During the
term of your employment hereunder, (i) the Company shall provide an automobile
for your continued business use pursuant to the arrangement between you and
the Company that was in effect immediately prior to the effective date of this
Agreement, (ii) the Company shall pay dues, not in excess of five thousand
dollars ($5,000), for your membership at a social club of your choice, and
(iii) the Company shall

                                      12

<PAGE>   13

reimburse to you, or pay directly, upon submission by you to the Company of
statements for services, the amounts payable by you to any person or persons
of your choice that you retain to advise you with regard to financial,
investment, and tax matters; provided, however, that such reimbursement or
payment shall not exceed ten thousand dollars ($10,000) per fiscal year
beginning with the fiscal year ending June 30, 2001.

                                      13

<PAGE>   14

                  D. Post-Termination Benefits. In addition to any other
payments and benefits provided in this Agreement, effective with the
termination of your employment by the Company without cause, you shall be
entitled to (i) continued medical and dental benefits for a period of two (2)
years from the effective date of your termination or until you secure other
employment, whichever occurs first, and (ii) reimbursement of reasonable
expenses incurred by you in connection with job search services.

         9. TERMINATION OF EMPLOYMENT.

                  A. Termination by the Company Without Cause. The Company
may, without cause, terminate your employment hereunder at any time upon ten
(10) or more days' written notice to you. In the event your employment is
terminated under this Paragraph 9A, the Company shall pay to you the
following:

                           (i) A single lump sum payment, no later than the
last day of your employment, of:

                                    (a) Any accrued but unpaid salary set
forth in Paragraph 2A hereof (as adjusted by Paragraph 2B hereof), including
salary in respect of any accrued and accumulated vacation, due to you at the
date of such termination;

                                    (b) Any amounts owing, but not yet paid,
pursuant to Paragraph 5 hereof; and

                                    (c) An amount equal to the product of two
and nine-tenths (2.9) times your "base salary" under Paragraph 2A hereof (as
adjusted by Paragraph 2B hereof);

                           (ii) A single lump sum payment of any accrued but
unpaid incentive compensation set forth in Paragraph 2C hereof due to you at
the date of such termination for the

                                      14

<PAGE>   15

fiscal year ending immediately prior to the date of such termination, which
shall be paid no later than ninety (90) days after the end of such fiscal
year;

                           (iii) A single lump sum payment of any incentive
compensation set forth in Paragraph 2C hereof earned in the fiscal year of the
termination of your employment, which incentive compensation shall be
determined on the basis of the Company's operations through June 30 of such
fiscal year, shall be pro-rated through the last day of your employment, and
shall be paid no later than ninety (90) days after the end of such fiscal
year; and

                           (iv) If and to the extent vested, the Deferred
Compensation as set forth in Paragraph 2D hereof, with payment of the Monthly
Amount beginning on the first day of the month immediately succeeding the last
day of your employment.

         The Company shall have no further obligation to you under this
Agreement and you shall have no further obligation to the Company under this
Agreement except as provided in Paragraph 12 and Paragraph 13 hereof.

                  B. Termination by Mutual Consent.  You may terminate your
employment hereunder at any time with the written consent of the Company. In
the event your employment is terminated under this Paragraph 9B, the Company
shall pay to you the following:

                           (i) A single lump sum payment, no later than the
last day of your employment, of:

                                    (a) Any accrued but unpaid salary set
forth in Paragraph 2A hereof (as adjusted by Paragraph 2B hereof), including
salary in respect of any accrued and accumulated vacation, due to you at the
date of such termination;

                                      15

<PAGE>   16

                                    (b) Any amounts owing, but not yet paid,
pursuant to Paragraph 5 hereof; and

                                    (c) An amount equal to your annual "base
salary" under Paragraph 2A hereof (as adjusted by Paragraph 2B hereof);

                           (ii) A single lump sum payment of any accrued but
unpaid incentive compensation set forth in Paragraph 2C hereof due to you at
the date of such termination for the fiscal year ending immediately prior to
the date of such termination, which shall be paid no later than ninety (90)
days after the end of such fiscal year;

                           (iii) A single lump sum payment of any incentive
compensation set forth in Paragraph 2C hereof earned in the fiscal year of the
termination of your employment, which incentive compensation shall be
determined on the basis of the Company's operations through June 30 of such
fiscal year, shall be pro-rated through the last day of your employment, and
shall be paid no later than ninety (90) days after the end of such fiscal
year; and

                           (iv) If and to the extent vested, the Deferred
Compensation as set forth in Paragraph 2D hereof, with payment of the Monthly
Amount beginning on the first day of the month immediately succeeding the last
day of your employment.

         The Company shall have no further obligation to you under this
Agreement and you shall have no further obligation to the Company under this
Agreement except as provided in Paragraph 12 and Paragraph 13 hereof.

                  C.  Termination by the Company With Cause. The Company may
for cause terminate your employment hereunder at any time by written notice to
you. For purposes of this Agreement, the term "cause" shall mean (1) a failure
by you to remedy either (a) a continuing neglect

                                      16

<PAGE>   17

in the performance of your duties under this Agreement, or (b) any action
taken by you that seriously prejudices the interests of the Company, in either
event within ten (10) days of the Company's written notice to you of such
neglect or action, or (2) your conviction of a felony. In the event of the
termination of your employment hereunder for cause, the Company shall pay to
you the following:

                           (i) A single lump sum payment, no later than ten
(10) days after the last day of your employment, of

                                    (a) Any accrued but unpaid salary set
forth in Paragraph 2A hereof (as adjusted by Paragraph 2B hereof), including
salary in respect of any accrued and accumulated vacation, due to you at the
date of such termination; and

                                    (b) Any amounts owing, but not yet paid,
pursuant to Paragraph 5 hereof;

                           (ii) A single lump sum payment of any accrued but
unpaid incentive compensation set forth in Paragraph 2C hereof due to you at
the date of such termination for the fiscal year ending immediately prior to
the date of such termination, which shall be paid no later than ninety (90)
days after the end of such fiscal year; and

                           (iii) If and to the extent vested, the Deferred
Compensation as set forth in Paragraph 2D hereof, with payment of the Monthly
Amount beginning on the first day of the month immediately succeeding the last
day of your employment. You shall forfeit the incentive compensation set forth
in Paragraph 2C hereof for the fiscal year in which such termination occurs.

                                      17

<PAGE>   18

         The Company shall have no further obligation to you under this
Agreement and you shall have no further obligation to the Company under this
Agreement except as provided in Paragraph 12 and Paragraph 13 hereof.

                  D. Events.  If any of the following described events occurs
during the term of your employment hereunder, you may terminate your
employment hereunder by written notice to the Company either prior to, or not
more than six (6) months after, the happening of such event. In such event,
your employment hereunder will be terminated effective as of the later of ten
(10) days after the notice or ten (10) days after the event, and the Company
shall make to you the same payments that the Company would have been obligated
to make to you under Paragraph 9A hereof if the Company had terminated your
employment hereunder effective on such date. The events, the occurrence of
which shall permit you to terminate your employment hereunder under this
Paragraph 9D, are as follows:

                           (i) The removal of you or the election of any other
person as the President or the Chief Executive Officer of the Company;
provided, however, that you shall not have approved such removal or such
election, in your capacity as a director, by voting for such removal or such
election.

                           (ii) Any merger or consolidation by the Company
with or into any other entity or any sale by the Company of substantially all
of its assets; provided, however, that you shall not have approved such
transaction, in your capacity as a director, by voting for it.

                           (iii) Any change of a majority of the directors of
the Company occurring within any thirteen (13) month period, or the
acquisition by a single person or entity or a related group of persons or
entities, of shares of any class or classes of voting stock of the Company

                                      18

<PAGE>   19

representing twenty-five percent (25%) or more of the total votes entitled to
be cast by all of the then outstanding shares of all classes of voting stock
of the Company; provided, however, that you shall not have approved such
change in directors or acquisition, in your capacity as a shareholder or
director, by voting for any of such new directors or for such acquisition, and
that there shall be excluded from any such calculation of percentage of
ownership all stock held by any officer of the Company on the effective date
of this Agreement.

                           (iv) The adoption by the Company of any plan of
liquidation providing for the distribution of all or substantially all of its
assets; provided, however, that you shall not have approved the adoption of
such plan, in your capacity as a director, by voting for it.

                           (v) The failure by the Company to observe or comply
in any material respect with any of the provisions of this Agreement,
including a material diminution in your duties, or the assignment to you of
duties that are materially inconsistent with your duties or that materially
impair your ability to function as the President or the Chief Executive of the
Company if such failure has not been cured within thirty (30) days after
written notice thereof has been given by you to the Company.

                  E. Disability or Death.  If you should suffer a Permanent
Disability, the Company may terminate your employment hereunder upon ten (10)
or more days' prior written notice to you. For purposes of this Agreement, a
"Permanent Disability" shall be deemed to have occurred only when you are
qualified for benefits under the Company's or a Subsidiary's Long Term
Disability Insurance Policy. In the event of the termination of your
employment hereunder by reason of Permanent Disability or death at any time,
the Company shall pay:

                                      19

<PAGE>   20

                           (i) In the case of Permanent Disability only, to
you, in conformity with regular payroll dates for salaried personnel of the
Company, an amount equal to fifty percent (50%) of the base salary you were
receiving at the date of such termination under Paragraph 2A hereof (as
adjusted by Paragraph 2B hereof), payable through August 5, 2003, at which
time monthly payments of the Deferred Compensation set forth in Paragraph 2D
hereof shall begin; provided, however, that the amount payable under this
Paragraph 9E(i) (but not the Deferred Compensation payments) shall be reduced
to the extent of any payments made to you through any Company-sponsored group
disability plan;

                           (ii) To you or your legal representative, or any
beneficiary or beneficiaries designated by you in writing to the Company, a
single lump sum payment of:

                                    (a) No later than ten (10) days after the
last day of your employment, any accrued but unpaid salary set forth in
Paragraph 2A hereof (as adjusted by Paragraph 2B hereof), including salary in
respect of any accrued and accumulated vacation, due to you at the date of
such termination;

                                    (b) No later than ten (10) days after the
last day of your employment, any amounts owing, but not yet paid, pursuant to
Paragraph 5 hereof;

                                    (c) A single lump sum payment of any
accrued  but unpaid incentive compensation as set forth in Paragraph 2C hereof
due to you at the date of such termination for the fiscal year ending
immediately prior to the date of such termination, which shall be paid no
later than ninety (90) days after the end of such fiscal year; and

                                    (d) Any incentive compensation set forth
in Paragraph 2C hereof earned in the fiscal year in which the termination of
your employment occurs, which incentive

                                      20

<PAGE>   21

compensation shall be determined on the basis of the Company's operations
through June 30 of such fiscal year, and shall be pro-rated through the last
day of your employment, and shall be paid no later than ninety (90) days after
the end of such fiscal year; and

                           (iii) In the case of death only, to your legal
representative, or any beneficiary or beneficiaries designated by you in
writing, the vested portion of the Deferred Compensation set forth in
Paragraph 2D hereof, with payment of the Monthly Amount beginning on the first
day of the month immediately succeeding the last day of your employment.

          The Company shall have no further obligation to you under this
Agreement and you shall have no further obligation to the Company under this
Agreement except as provided in Paragraph 12 and Paragraph 13 hereof.

                   F. No Excess Parachute Payments.  Notwithstanding anything
to the contrary contained in this Agreement, if the Company obtains a written
opinion of its tax counsel ("Tax Counsel") to the effect that there exists a
material possibility that any payment to which you would (but for the
application of this Paragraph 9F) be entitled under this Agreement, would (but
for such application) be treated as an "excess parachute payment" (as defined
in Section 280G(b) of the Code and the Treasury Regulations promulgated
thereunder):

                           (i) Unless you and the Company agree to an
alternative amendment of this Agreement that satisfies the requirements of
Paragraph 9F(ii) hereof, this Agreement shall be amended by reducing the
payments to which you are entitled hereunder, in the order specified in the
last sentence of this Paragraph 9F, to the extent necessary so that, in the
opinion of Tax Counsel, there does not exist a material possibility that any
payment to which you are entitled under this Agreement (as so amended) will be
treated as an excess parachute payment; or

                                      21
<PAGE>   22

                           (ii) If you and the Company agree to amend this
Agreement by modifying the amount and/or timing of the payments to which you
are entitled hereunder in a manner other than that specified in Paragraph
9F(i) hereof, and if, in the opinion of Tax Counsel, there does not exist a
material possibility that any payment to which you are entitled under this
Agreement (as so amended) will be treated as an excess parachute payment, this
Agreement shall be so amended. An amendment to this Agreement pursuant to
Paragraph 9F(i) hereof shall reduce, first, the Deferred Compensation (and,
concomitantly, the Monthly Amount), second (if applicable), the amount payable
under Paragraph 9A(i)(c) hereof by virtue of your election under Paragraph 9D
hereof to treat an event described therein as constituting the termination of
your employment, and third, on a pro-rata basis, all other amounts (other than
amounts payable pursuant to Paragraph 5 hereof, which shall in any event be
paid in full) to which you are entitled hereunder.

                  G. Retirement. If not previously terminated under any of the
previously outlined provisions, your employment hereunder shall terminate when
you retire from full-time employment with the Company, which shall occur no
earlier than August 5, 2003, at which time the Company shall pay to you the
following:

                     (i) A single lump sum payment, no later than the last day
of your employment, of:

                           (a) Any accrued but unpaid salary set forth in
Paragraph 2A hereof (as adjusted by Paragraph 2B hereof), including salary in
respect of any accrued and accumulated vacation, due to you at the date of
such termination; and

                                      22

<PAGE>   23
                           (b) Any amounts owing, but not yet paid, pursuant
to Paragraph 5 hereof;

                     (ii) A single lump sum payment of any accrued but unpaid
incentive compensation as set forth in Paragraph 2C hereof due to you at the
date of such termination for the fiscal year ending immediately prior to the
date of such termination, which shall be paid no later than ninety (90) days
after the end of such fiscal year;

                     (iii) A single lump sum payment of any incentive
compensation set forth in Paragraph 2C hereof earned in the fiscal year of the
termination of your employment, which incentive compensation shall be determined
on the basis of the Company's operations through June 30 of such fiscal year,
and shall be pro-rated through the last day of your employment, and shall be
paid no later than ninety (90) days after the end of such fiscal year; and

                     (iv) The Deferred Compensation as set forth in Paragraph 2D
hereof, with payment of the Monthly Amount beginning on the first day of the
month immediately succeeding the last day of your employment.

         The Company shall have no further obligation to you under this
Agreement and you shall have no further obligation to the Company under this
Agreement except as provided in Paragraph 12 and Paragraph 13 hereof.

         10. SOURCE OF PAYMENTS. All payments provided for hereunder shall be
paid from the general funds of the Company. The Company may, but shall not be
required to, make any investment or investments whatsoever, including the
purchase of a life insurance contract or contracts on your life, to provide it
with funds to satisfy its obligations hereunder; provided, however, that
neither you nor your beneficiary or beneficiaries, nor any other person, shall
have any right, title, or

                                      23

<PAGE>   24

interest whatsoever in or to any such investment or contracts. If the Company
shall elect to purchase a life insurance contract or contracts on your life to
provide the Company with funds to satisfy its obligations hereunder, the
Company shall at all times be the sole and complete owner and beneficiary of
such contract or contracts, and shall have the unrestricted right to use all
amounts and to exercise all options and privileges thereunder without the
knowledge or consent of you, your beneficiary or beneficiaries, or any other
person, it being expressly agreed that neither you, any such beneficiary or
beneficiaries, nor any other person shall have any right, title, or interest
whatsoever in or to any such contract or contracts. Notwithstanding anything
to the contrary contained in this Paragraph 10, if the Company purchases any
such contract or contracts, you shall have the right, upon the termination of
your employment by the Company to purchase as soon after such termination as
possible any one or more of such contracts for an amount equal to the cash
surrender value thereof; provided, however, that you notify the Company in
writing of your intention to make any such purchase no later than thirty (30)
days subsequent to such termination.

         11. ENFORCEMENT OF RIGHTS. Nothing in this Agreement, and no action
taken pursuant to its terms, shall create or be construed to create a trust or
escrow account of any kind, or a fiduciary relationship between the Company
and you, your beneficiary or beneficiaries, or any other person. You, your
beneficiary or beneficiaries, and any other person or persons claiming a right
to any payments or interests hereunder shall rely solely on the unsecured
promise of the Company, and nothing herein shall be construed to give you,
your beneficiary or beneficiaries, or any other person or persons, any right,
title, interest, or claim in or to any specific asset, fund, reserve, account,
or property of any kind whatsoever owned by the Company or in which it may
have any right, title, or interest now or in the future, but you or your
beneficiary or beneficiaries shall have the right to

                                      24

<PAGE>   25

enforce a claim for benefits hereunder against the Company in the same manner
as any unsecured creditor. Notwithstanding anything to the contrary set forth
in this Paragraph 11, the Company agrees to consider the feasibility of paying
to a so-called "rabbi trust," as described in the Internal Revenue Service's
Revenue Procedure 92-64, the amounts necessary for the Company to fund the
Deferred Compensation set forth in Paragraph 2D hereof.

         12. INVENTIONS AND CONFIDENTIAL INFORMATION. So long as you shall be
employed by the Company, you agree promptly to make known to the Company the
existence of any and all creations, inventions, discoveries, and improvements
made or conceived by you, either solely or jointly with others, during the
term of this Agreement and for three (3) years thereafter, and to assign to
the Company the full exclusive right to any and all such creations,
inventions, discoveries, and improvements relating to any subject matter with
which the Company is now or shall become concerned, or relating to any other
subject matter if made with the use of the Company's time, materials, or
facilities. To the fullest extent permitted by law, any of the foregoing
inventions shall be considered as "work-made-for-hire" and the Company shall
be the owner thereof. You further agree, without charge to the Company but at
its expense, if requested to do so by the Company, to execute, acknowledge,
and deliver all papers, including applications or assignments for patents,
trademarks, and copyrights, and papers relating thereto, as may be considered
by the Company to be necessary or desirable to obtain or assign to the Company
any and all patents, trademarks, or copyrights for any and all such creations,
inventions, discoveries, and improvements in any and all countries, and to
vest title thereto in the Company in all such creations, inventions,
discoveries, and improvements as indicated above conceived during your
employment by the Company, and for three

                                      25

<PAGE>   26

(3) years thereafter. You further agree that you will not disclose
to any third person any trade secrets or proprietary information of the Company,
or use any trade secrets or proprietary information of the Company in any
manner, except in the pursuit of your duties as an employee of the Company, and
that you will return to the Company all materials (whether originals or copies)
containing any such trade secrets or proprietary information (in whatever
medium) on termination of your employment by the Company. The obligations set
forth in this Paragraph 12 shall survive the termination of your employment
hereunder. This Paragraph 12 replaces the agreement executed by you on January
5, 1993, which prior agreement is now null and void.

         13. RESTRICTIVE COVENANT. For a period of three (3) years after the
termination of your employment by the Company, you shall not, in any
geographical location at which there is at that time business conducted by the
Company which was conducted by the Company at the date of such termination,
directly or indirectly, own, manage, operate, control, be employed by,
participate in, or be connected in any manner with, the ownership, management,
operation, or control of any business similar to or competitive with such
business conducted by the Company without the written consent of the Company;
provided, however, that you may have an ownership interest of up to one
percent (1%) in any entity, notwithstanding that such entity is directly
competitive with any business conducted by the Company at the date of such
termination.

         14. LEGAL FEE. The Company shall reimburse to you, or pay directly,
upon submission in either event to the Company of a statement for services,
the amount payable by you to any attorney of your choice that you have
retained to advise you with regard to this Agreement; provided, however, that
such reimbursement or payment shall not exceed twenty thousand dollars
($20,000).

                                      26

<PAGE>   27

         15. ARBITRATION. Any controversy or claim arising out of or relating
to this Agreement, or the breach or asserted breach thereof, shall be settled
by arbitration to be held in New York, New York in accordance with the rules
then obtaining of the American Arbitration Association, and the judgment upon
the award rendered may be entered in any court having jurisdiction thereof.
The arbitrator shall determine which party shall bear the costs of such
arbitration, including attorneys' fees.

         16. NON-ASSIGNABILITY. Your rights and benefits hereunder are
personal to you, and shall not be alienated, voluntarily or involuntarily,
assigned or transferred.

         17. BINDING EFFECT. This Agreement shall be binding upon the parties
hereto, and their respective assigns, successors, executors, administrators,
and heirs. In the event the Company becomes a party to any merger,
consolidation, or reorganization, this Agreement shall remain in full force
and effect as an obligation of the Company or its successors in interest. None
of the payments provided for by this Agreement shall be subject to seizure for
payment of any debts or judgments against you or your beneficiary or
beneficiaries, nor shall you or any such beneficiary or beneficiaries have any
right to transfer or encumber any right or benefit hereunder; provided,
however, that the undistributed portion of the Deferred Compensation shall at
all times be subject to set-off by the Company for debts owed by you to the
Company.

                                      27
<PAGE>   28
         18. ENTIRE AGREEMENT. This Agreement contains the entire agreement
relating to your employment by the Company. It may not be changed orally, and
may be changed only by an agreement in writing signed by the party against
whom enforcement of any waiver, change, modification, extension, deletion, or
revocation is sought. Our agreement dated January 31, 1994 is now null and
void.

         19. NOTICES. All notices and communications hereunder shall be in
writing, sent by certified or registered mail, return receipt requested,
postage prepaid; by facsimile transmission, time and date of receipt noted
thereon; or by hand-delivery properly receipted. The actual date of receipt as
shown by the receipt therefor shall determine the time at which notice was
given. All payments required hereunder by the Company to you shall be sent
postage prepaid, or, at your election, shall be transferred to you
electronically to such bank as you designate in writing to the Company,
including designation of the applicable electronic address. The foregoing
items (other than any electronic transfer to you) shall be addressed as
follows (or to such other address as the Company and you may designate in
writing from time to time):

To the Company:                             To you:

Baldwin Technology Company, Inc.            Gerald A. Nathe
12 Commerce Drive                           11448 Bronzedale Drive
P.O. Box 901                                Oakton, VA 22124
Shelton, CT 06484-0941                      Facsimile: 703-264-0670
Facsimile: 203-402-5500

         20. NEW YORK LAW TO GOVERN. This Agreement shall be governed by, and
construed and enforced according to, the domestic laws of the State of New York
without giving effect to the principles of conflict of laws thereof.

                                      28

<PAGE>   29

                                     Very truly yours,

                                     BALDWIN TECHNOLOGY COMPANY, INC.

                                     By:  /s/James M. Rutledge
                                        ----------------------------

AGREED TO AND ACCEPTED:

/s/Gerald A. Nathe
------------------
Gerald A. Nathe

                                      29

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