Document:

<PAGE>

         1. Jonathan Bulkeley ("Employee"), on his behalf and on behalf of
Employee's heirs, executors, administrators, successors and assigns
(collectively, "Releasor"), hereby acknowledges and agrees that Employee's
employment with barnesandnoble.com inc. and barnesandnoble.com llc
(collectively, the "Company") terminated effective January 14, 2000 (the
"Termination Date").

         2. In accordance with the terms and conditions of this Agreement,
Employee shall accept, as and on behalf of Releasor, and the Company shall
deliver, on its behalf and on behalf of each Releasee (as defined below), the
following consideration:

                  (a) Upon the execution of this Agreement by Employee and the
Company, $808,625, less withholding for all applicable taxes and deductions.

                  (b) With respect to the vested options previously granted to
Employee to purchase 1,000,000 shares of Class A Common Stock in the Company for
$4.06 per share, not later than March 21, 2000 the Company shall (i) cause a
third party to purchase such shares from Employee upon Employee's exercise of
the foregoing options such that Employee shall receive not less $10,940,000
(after payment to the Company of the exercise price for such shares), less
withholding for all applicable taxes and deductions, if any; or (ii) deliver to
Employee $10,940,000, less withholding for all applicable taxes and deductions,
in cancellation of the foregoing options.

                  (c) With respect to Employee's stock options in the Company,
the Company and Employee acknowledge and agree as follows:

                  (i)      in addition to the vested options referred to in
                           clause (b) above, Employee currently has vested
                           options to purchase an additional 35,000 shares of
                           Class A Common Stock in the Company for $4.06 per
                           share;

                  (ii)     as of February 1, 2000, Employee shall have
                           additional vested options to purchase an additional
                           766,250 shares of Class A Common Stock in the Company
                           for $4.06 per share;

                  (iii)    the vested options referred to in clauses (b), (c)(i)
                           and (c)(ii) above (collectively, the "Vested
                           Options") shall expire, and shall no longer be
                           exercisable, on or after December 31, 2000, and
                           except for such Vested Options, Employee has no
                           additional options to purchase any capital stock of
                           the Company, and any such options which may have
                           heretofore been granted are forfeited and of no

<PAGE>

                           further force or effect; and

                  (iv)     Employee agrees that, with respect to those shares
                           issuable upon the exercise of the Vested Options
                           referred to in clauses (c)(i) and (c)(ii) above,
                           Employee: (A) may sell or cause to be sold up to
                           400,000 of such shares in the aggregate during the
                           period from February 1, 2000 through May 31, 2000, at
                           the rate of no more than 20,000 of such shares on any
                           single day; and (B) may sell or cause to be sold up
                           to 401,250 of such shares in the aggregate during the
                           period from June 1, 2000 through December 31, 2000,
                           at the rate of no more than 5,000 of such shares on
                           any single day.

                  (d) All of the consideration set forth in subparagraphs (a),
(b) and (c) above shall be referred to as the Termination Consideration.

                  (e) Employee acknowledges and agrees that (i) the Termination
Consideration provides adequate consideration for all the terms of this
Agreement and includes monetary and other benefits to which Employee was not
otherwise entitled and which were not previously earned, accrued or vested; and
(ii) any monetary or other benefits which, prior to the execution of this
Agreement, may have been earned, accrued or vested, or to which Employee may
have been entitled, are deemed to have been satisfied or such benefits have been
released, waived or settled by Employee pursuant to this Agreement.

         3. THIS PARAGRAPH PROVIDES A COMPLETE RELEASE AND WAIVER OF ALL
EXISTING AND POTENTIAL CLAIMS EMPLOYEE MAY HAVE AGAINST EVERY PERSON AND ENTITY
INCLUDED WITHIN THE DESCRIPTION BELOW OF "RELEASEE." BEFORE EMPLOYEE SIGNS THIS
AGREEMENT, EMPLOYEE MUST READ THIS PARAGRAPH CAREFULLY, AND MAKE SURE THAT HE
UNDERSTANDS IT FULLY.

                  (a) In consideration of Employee's receipt and acceptance of
the Termination Consideration from and on behalf of the Company and each
Releasee (as defined below), Releasor hereby irrevocably, unconditionally and
generally releases Barnes & Noble, Inc. and the Company, and their respective
current and former officers, directors, shareholders, trustees, parents,
affiliates, subsidiaries, branches, divisions, agents, attorneys and employees,
and the current and former officers, directors, shareholders, agents, attorneys
and employees of any such parent, affiliate, subsidiary, branch or division of
Barnes & Noble, Inc. and the Company, and the heirs, executors, administrators,
receivers, successors, predecessors and assigns of all of the foregoing
(collectively, "Releasee"), from or in connection with, and hereby waives and/or

<PAGE>

settles, except as may otherwise be stated in this Agreement, any and all
actions, causes of action, suits, debts, dues, sums of money, accounts,
controversies, agreements, promises, damages, judgments, executions, or any
liability, claims or demands, known or unknown and of any nature whatsoever and
which Releasor ever had, now has or hereafter can, shall or may have as of the
date of this Agreement, including, without limitation, arising directly or
indirectly pursuant to or out of Employee's employment with the Company, the
performance of services for the Company or any Releasee, the termination of such
employment or services and/or any decision not to offer to Employee any
employment with any Releasee subsequent to Employee's employment with the
Company, except any claims arising out of, relating to or based upon the
covenants, representations and acknowledgements made by the Company in this
Agreement.

                  (b) Specifically, without limitation, the release in this
paragraph 3 shall include and apply to any rights and/or claims (i) as to any
options to purchase shares in the Company or any Releasee (except the Vested
Options), including without limitation, under or pursuant to the Company's 1999
Incentive Plan and any Stock Option Agreement or Certificate issued thereunder,
and Releasor expressly acknowledges that no options other than the Vested
Options have vested or will vest and any options granted to Employee other than
the Vested Options have been forfeited and/or are of no force or effect; (ii) as
to any employee benefits or fringe benefits, vested or unvested, to which
Employee is, may have been or may become entitled; (iii) arising under any
contract, express or implied, written or oral, including without limitation, the
Company's 1999 Incentive Plan and any Stock Option Agreement or Certificate
issued thereunder, any other pension or employee benefit plan, policy or
practice of any Releasee, the Employment Agreement made as of November 1, 1998
and effective as of November 1, 1998, and the Amended and Restated Employment
Agreement made as of September 20, 1999 and effective as of November 1, 1998,
and Releasor expressly acknowledges that all of the foregoing are of no force or
effect with respect to Releasor; (iv) for wrongful dismissal or termination of
employment; (v) arising under any applicable foreign, federal, state, local or
other statutes, orders, laws, ordinances, regulations or the like, or case law,
that relate to employment or employment practices and/or, specifically, that
prohibit discrimination based upon age, race, religion, sex, national origin,
disability or any other unlawful bases, including without limitation, the Civil
Rights Act of 1964, as amended, the Civil Rights Act of 1991, as amended, the
Civil Rights Acts of 1866 and 1871, as amended, the Americans with Disabilities
Act of 1990, as amended, the Family Medical Leave Act of 1993, as amended, the
Employee Retirement Income Security Act of 1990, as amended, the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended, the Workers Adjustment
and Relocation Notice Act, as amended, the Fair Labor Standards Act, as amended,
the Vietnam Era Veterans' Readjustment Assistance Act, as amended, the Equal Pay
Act, as amended, and any similar applicable statutes, orders, laws, ordinances,
regulations or the like, or case law, of New York and any State (or any
political subdivision thereof) in which the Company transacts business, and all
applicable rules and regulations promulgated pursuant to or concerning any of
the foregoing statutes, orders, laws, ordinances, regulations or the like; (vi)
based upon any other foreign, federal, state or local statutes, orders, laws,
ordinances, regulations or the like, or case law; (vii) for tortious or
harassing conduct, infliction of mental distress, interference with contract,
fraud, libel or slander; and (viii)

<PAGE>

for damages, including without limitation, punitive or compensatory damages, or
for attorneys' fees, expenses, costs, wages, injunctive or equitable relief.

         4. (a) If a federal, state, or local income or excise tax (or any tax
of a foreign jurisdiction) shall be assessed against Employee by a tax authority
with respect to the grant, vesting or any event related to the options to
purchase Company stock previously granted to Employee (collectively, the
"Options") other than the tax on exercise of such Options or sale of the shares
underlying such Options, the Company shall upon demand pay Employee an amount
equal to the sum of: (i) an amount which, when multiplied by the difference
between Employee's Tax Rate (as hereinafter defined) for the year in which such
amount shall be paid to Employee and l00%, shall equal the additional income tax
owing; and (ii) an amount which when multiplied by the difference between
Employee's Tax Rate for the year in which such amount shall be paid to Employee
and 100% shall equal the interest and penalties, if any, payable by Employee
with respect to such tax. The term "Tax Rate" shall mean the sum of the
following: (x) the highest federal income tax rate applicable to ordinary income
of an individual taxpayer; and (y) the sum of the highest applicable state and
local tax rates for such ordinary income, reduced to account for the
deductibility of state and local taxes against federal income tax if and to the
extent such state and local taxes are so deductible by the Employee. Employee
shall give the Company notice of any proposed tax, but Employee shall be under
no obligation to contest such proposed tax, provided that Employee shall contest
such proposed tax if requested to do so by the Company and at the sole cost and
expense of the Company. It is the intention of this paragraph 4 (a) to reimburse
Employee for any additional income taxes, interest and penalties thereon arising
from any tax on the Options prior to exercise thereof, with a gross-up based
upon tax rates in effect for the year of such reimbursement and taking into
account all the benefits (deductions and/or credits) available to Employee in
connection with the payment of such taxes, interest and penalties. To the extent
the incomes taxes paid by Employee and reimbursed by the Company under this
paragraph 4(a) reduce the income taxes that would be payable by Employee, his
estate, or successors and assigns upon the exercise of the Vested Options and/or
sale of the shares acquired pursuant to the exercise of the Vested Options if
the income taxes incurred by Employee (and paid by the Company to Employee
hereunder) had not been incurred, the Company shall be reimbursed by Employee,
or his estate, successors or assigns, as the case may be, an amount equal to the
reduction in income taxes described above.

                  (b) Employee shall be indemnified by the Company, qua an
officer and director of the Company and its affiliates, against claims, etc. to
the fullest extent permitted by law, including partial indemnification and
indemnification of Employee's estate and his heirs, executors and assigns.

         5. In consideration of Employee's execution of this Agreement and
Releasor's covenants and obligations hereunder, the Company and its parents,
affiliates and subsidiaries hereby irrevocably, unconditionally and generally
release Releasor from or in connection with, and hereby waive and/or settle,
except as may otherwise be stated in this Agreement, any and all

<PAGE>

actions, causes of action, suits, debts, dues, sums of money, accounts,
controversies, agreements, promises, damages, judgments, executions, or any
liability, claims, demands or defenses, known or unknown and of any nature
whatsoever and which the Company and its parents, affiliates and subsidiaries
ever had, now has or hereafter can, shall or may have, for, upon, or by reason
of any matter, cause or thing as of the date of this Agreement (collectively,
"Claims"), except any Claims arising out of, relating to or based upon (i) the
covenants, representations and acknowledgements made by Employee in this
Agreement; (ii) any act or omission by Employee during his employment with the
Company that is finally determined by a court of competent jurisdiction to
subject Employee or any Releasee to any criminal liability or penalties; (iii)
any conduct by Employee during his employment with the Company which is finally
determined by a court of competent jurisdiction to constitute fraud,
embezzlement or any misappropriation or conversion (on his own behalf or on
behalf of any other person or entity) of any assets or property of the Company
or any Releasee; or (iv) any act or omission by Employee during his employment
with the Company that is finally determined by a court of competent jurisdiction
to have been beyond the scope of his authority or duties for and on behalf of
the Company, and upon which any person or entity not a party to this Agreement
asserts any claim against any Releasee.

         6. This Agreement and any consideration given hereunder are not
intended to be, shall not be construed as and are not an admission or concession
by any Releasee of any wrongdoing or illegal or actionable acts or omissions.
Employee, as and on behalf of Releasor, hereby represents and agrees that
Releasor shall not intentionally make or cause to be made (a) any written or
oral statements or representations that any Releasee has made or implied any
such admission or concession of any wrongdoing or illegal or actionable acts or
omissions; or (b) any oral or written disparaging statements or representations
of or concerning the Company or any Releasee. The Company hereby represents and
agrees that the Company's senior management shall not intentionally make or
cause to be made any oral or written disparaging statements or representations
of or concerning Employee.

         7. (a) Except as may be required by law, in further consideration of
the Company's agreement to deliver the Termination Consideration, and in
addition to the terms of paragraph 8 hereof, Releasor shall keep confidential
and shall not disclose orally or in writing directly or indirectly to any person
(other than to Employee's attorney, accountant and immediate family, each of
whom shall be directed by Employee not to disclose such information), any and
all information concerning (i) any facts, claims or assertions relating or
referring to any experiences of Employee or treatment he received by or on
behalf of any Releasee during his employment through the date of this Agreement,
to the extent that such experiences or treatment could have provided a factual
or legal basis for any claim of any kind in any action or proceeding before any
court or administrative or arbitral body; and (ii) the terms of this Agreement
and the nature and/or amount of the Termination Consideration.

            (b) Notwithstanding the foregoing, Employee (i) may state that
he voluntarily resigned his employment with the Company, (ii) may describe the
positions he held and

<PAGE>

compensation he received, the job duties and functions he performed, and the
dates of commencement and termination of his employment, and (iii) may otherwise
make any statement consistent with the Company's and Employee's joint press
release, a copy of which is annexed hereto as Exhibit A.

         8. (a) Employee hereby acknowledges that during his employment he
acquired proprietary, private and/or otherwise confidential information,
processes, business methods, know-how and trade secrets ("Confidential
Information," as further defined and described in this sub-paragraph), which are
and were valuable, special and unique assets of the Company and/or Releasees,
concerning or relating to (i) the Company and Releasees, (ii) persons or
entities with whom or which the Company or Releasees transacted business during
Employee's employment, (iii) persons or entities with respect to whom or which
the Company acquired any non-public information, and (iv) all aspects of the
operation of the business and affairs of the Company and Releasees, including
without limitation, all financial, operational and statistical information.
Employee acknowledges and agrees that Confidential Information shall include all
memoranda, books, papers, letters, customer lists, processes, computer software,
records, financial information, policy and procedure manuals, training and
recruiting procedures and other data, and all copies thereof and therefrom,
whether made by him or otherwise coming into his possession. All Confidential
Information and Confidential Materials (as defined below) shall be and shall
remain the sole property of the Company.

                  (b) Employee hereby represents and agrees that upon execution
of this Agreement: (i) he has returned to the Company, and has not retained any
copies of, all documents, records or materials of any kind, whether written or
electronically created or stored, which contain, relate to or refer to any
Confidential Information ("Confidential Materials"), and all other property of
the Company or any Releasee, including without limitation, any building or other
identification related to Employee's employment, and all keys to all offices at
76 Ninth Avenue, New York, New York and any other premises under the management
or control of any Releasee; (ii) he has not disclosed any Confidential
Information or Confidential Materials to any person or entity without the
authorization of the Company; and (iii) in consideration of the Company's
agreement to deliver the Termination Consideration pursuant to the terms of this
Agreement, Employee and/or any Releasor shall not disclose, or make use of for
himself or on behalf of any other person or entity, any Confidential Information
or Confidential Materials, in any manner directly or indirectly, except as shall
be required by law or in the event such Confidential Information or Confidential
Materials are then in the public domain (provided that Employee was not
responsible, directly or indirectly, for such Confidential Information or
Confidential Materials entering the public domain without the Company's
consent).

                  (c) In the event that Employee and/or any Releasor receives a
subpoena or any other written or oral request for any Confidential Information,
Confidential Materials or any other information concerning the Company or any
Releasee, Employee shall, within five (5) business days from his actual notice
of the service of such subpoena or other request (i) notify the Company in
writing, by fax to Marie Toulantis (at 212-414-6107) on behalf of the Company,
and

<PAGE>

(ii) provide a copy to the Company of such subpoena or other request if in
writing, and/or disclose the nature of the request for information if oral.

         9. For a period of one (1) year from the Termination Date, Employee
shall not directly or indirectly (a) engage in activities in any state of the
United States and any equivalent section or area of any country, in which the
Company has revenue-producing customers or activities ("Territory"), either on
Employee's own behalf or that of any other person or entity which are in direct
or indirect competition with the Company; or (b) solicit any employee of the
Company to terminate his or her employment with the Company or, either on
Employee's own behalf or that of any other person or entity, hire any employee
of the Company, except that this subparagraph (b) shall not apply to Alexandra
Wise, a current employee of the Company. Employee and the Company expressly
declare that the territorial and time limitations contained in this paragraph
Section and the definition of "Territory" are entirely reasonable at this time
and are properly and necessarily required for the adequate protection of the
business and intellectual property of the Company. If such territorial or time
limitations, or any portions thereof, are deemed to be unreasonable by a court
of competent jurisdiction, whether due to passage of time, change of
circumstances or otherwise, Employee and the Company agree to a reduction or
modification of said territorial and/or time limitations to such areas and/or
periods of time as said court shall deem reasonable.

         10. Employee acknowledges that his services to the Company were of a
unique character which gave them a special value to the Company. Employee
further acknowledges that any violation by Employee of any one or more of the
provisions of paragraphs 7, 8 and 9 of this Agreement may give rise to losses or
damages for which the Company cannot be reasonably or adequately compensated in
an action at law and that such violation may result in irreparable and
continuing harm to the Company. Employee agrees that, therefore, in addition to
any other remedy which the Company may have at law and equity, the Company shall
be entitled to injunctive relief to restrain any violation, actual or
threatened, by Employee of the provisions of paragraphs 7, 8 and 9 of this
Agreement.

         11. Employee will comply with all reasonable requests from the Company
for assistance and/or information in connection with any matters and/or issues
relating to or encompassed within the duties and responsibilities of Employee's
employment with the Company, including without limitation, consulting with the
Company's employees and attorneys with respect to, and/or appearing as a witness
in, any dispute, controversy, action or proceeding of any kind, and in
connection with the transition of on-going matters to other employees of the
Company. The Company agrees to promptly reimburse Employee for all expenses,
including reasonable attorneys' fees (to the extent that Employee shall require
representation by reason of the existence of any conflict preventing Employee's
representation by counsel provided by the Company), incurred in connection with
compliance with his obligations under this paragraph.

         12. Releasor agrees to execute any other writings and/or documents
consistent with this Agreement and reasonably necessary to effectuate the terms
of this Agreement. The

<PAGE>

Company acknowledges and agrees that the foregoing sentence is not intended to,
and shall not, create any additional substantive obligation on the part of
Employee that is not otherwise set forth in this Agreement. The Company agrees
to promptly reimburse Employee for all expenses incurred in connection with
compliance with his obligations under this paragraph.

         13. The covenants, representations and acknowledgments made by Employee
in this Agreement shall survive the execution of the Agreement and the delivery
of the Termination Consideration, and this Agreement shall inure to the benefit
of each Releasee, and the successors and assigns of each of them. Employee
represents and warrants that he has not assigned any right, claim or cause of
action that he may have had against any Releasee. In addition to any claims for
damages or other relief that either party may assert arising out of, without
limitation, any breach of the terms of this Agreement, Employee shall be
obligated to return to the Company any Termination Consideration that has been
delivered in the event that the release contained in paragraph 3 hereof is
determined to be invalid or unenforceable.

         14. This Agreement constitutes the sole and complete understanding and
agreement between the parties with respect to the matters set forth herein and
there are no other agreements or understandings between the parties with respect
to such subject matter, whether written or oral and whether made
contemporaneously or otherwise. No term, condition, covenant, representation or
acknowledgment contained in this Agreement may be amended unless in a writing
signed by both parties. If any section of this Agreement is determined to be
void, voidable or unenforceable, it shall have no effect on the remainder of the
Agreement which shall remain in full force and effect. This Agreement shall in
all respects be subject to, governed by and enforced and construed pursuant to
and in accordance with the laws of the State of New York, without regard to and
excluding its choice of law rules.

         15. Employee agrees and acknowledges that (a) Employee has had an
adequate opportunity to review this Agreement and all of its terms, and has been
represented by counsel; (b) Employee understands all of the terms of this
Agreement, which are fair, reasonable and are not the result of any fraud,
duress, coercion, pressure or undue influence exercised by or on behalf of any
Releasee; and (c) Employee represents and warrants that he is under no legal
disability and that he has the full right and authority to execute this
Agreement, and that he has agreed to and/or entered into this Agreement and all
of the terms hereof, knowingly, freely and voluntarily.

                                          BARNESANDNOBLE.COM INC., individually
                                          and on behalf of BARNESANDNOBLE.COM
                                          LLC, as its sole manager

________________________________          By:________________________________
JONATHAN BULKELEY                            Marie Toulantis,
                                             Chief Financial Officer

<PAGE>

STATE OF NEW YORK    )
                            :  ss.:
COUNTY OF NEW YORK   )

                  On the 24th day of January, 2000 personally came Jonathan
Bulkeley, and being duly sworn, acknowledged that he is the person described in
and who executed the foregoing Agreement and acknowledged that he executed same.

                                          /s/ Leona L. Lobban
                                          -------------------------
                                               Notary Public

STATE OF NEW YORK    )
                            :  ss.:
COUNTY OF NEW YORK   )

                  On the 31st day of January, 2000, personally came Marie
Toulantis, to me known, and known to me to be the Chief Financial Officer of
BARNESANDNOBLE.COM INC., the corporation described in, and which executed the
foregoing Agreement and who, by me duly sworn, did depose and say that the
execution was duly authorized by said company and acknowledged that she executed
same.

                                          /s/ Richard Figueroa
                                          -------------------------
                                               Notary Public

                                       9<PAGE>

                                                                    EXHIBIT 10.1

                  EMPLOYMENT AGREEMENT, dated as of April 14, 2000, between K2
Design, Inc., a company organized under the laws of the State of Delaware
("Company") and Gary W. Brown ("Executive").

                  WHEREAS, Executive desires to provide services to Company and
Company desires to retain the services of Executive;

                  WHEREAS, Company and Executive desire to formalize the terms
and conditions of Executive's employment with Company.

                  NOW, THEREFORE, Company and Executive hereby agree as follows:

          1.      Employment.

                  1.1 General. Company hereby employs Executive in the position
of Executive Vice President and Chief Operating Officer reporting directly to
the Chief Executive Officer of the Company. A description of Executive's duties
is attached hereto as Schedule A. Executive shall also serve as a member of the
Board of Directors of the Company.

                  1.2 Full-Time Position. Executive agrees that he will, at all
times loyally and conscientiously, perform all of the duties and obligations
required of and from him as Chief Operating Officer to the best of his ability,
pursuant to the express and implicit terms hereof, and to the reasonable
satisfaction of the Company. Executive further agrees that during the term of
his employment, he shall not render commercial or professional services of any
nature to any person or organization, whether or not for compensation, without
the prior written consent of the Company, which consent shall not be
unreasonably withheld, and he will not directly or indirectly engage in any
business that is competitive in any manner with the business of the Company.
Nothing in this Agreement will prevent Executive from owning securities of a
corporation whose stock is listed on a national stock exchange; provided,
however that Executive may only own up to one percent (1%) of the outstanding
equity securities of a corporation in competition with the Company. Executive
may also serve as a director to other companies which are not competitive with
the Company, and any charitable, political or other not-for-profit activity,
provided that such activities do not interfere with the performance of
Executive's duties to Company and in no event exceed twelve (12) business days
per year.

                  1.3 Location of Employment. Executive's principal place of
employment during his employment with Company shall be in New York, New York.

                  1.4 Term of Employment. Executive's employment by the Company
shall commence on April 14, 2000 and continue until March 31, 2002, unless
Executive's employment is otherwise terminated earlier by the Company or
Executive in accordance with Section 3 hereof (the "Employment Term"). This
Agreement may be renewed at such time and on such terms as the parties may
mutually agree in writing.

                  1.5 No Conflict with Prior Agreements. Executive represents
and warrants that his performance of all of the terms of this Agreement and as
an employee of the Company

<PAGE>

does not and will not breach any agreement or obligation he has with or to any
other party or entity, including without limitation any non-disclosure,
confidentiality, non-competition, no solicitation or invention assignment
agreements or obligations. Executive agrees to indemnify and hold the Company
harmless against loss, damage, liability or expense arising from any proven
breach of such representations or warranties.

          2.      Compensation and Benefits.

                  2.1 Salary. Company will pay to Executive during the term of
his employment under this Agreement, (i) a base salary at the annual rate of
$225,000 per annum ("Base Salary"), payable in accordance with the Company's
regular payroll practices, and (ii) additional compensation, if any, and
benefits hereinafter set forth in this Section 2.

                  2.2 Executive Benefits. During the Employment Term, Executive
shall also be entitled to the following benefits:

                  2.2.1 Expenses. Upon presentment of proper documentation and
receipts, Company will promptly reimburse Executive for expenses he reasonably
incurs in connection with the performance of his duties (including business
travel and entertainment expenses).

                  2.2.2 The Company Plans. Executive will be entitled to
participate in such employee benefit plans and programs as Company may from time
to time offer or provide to its most-senior executives, provided that nothing
herein shall give rise to any obligation on the part of the Company to adopt or
maintain any such plans or programs.

                  2.2.3 Stock Options. Upon commencement of employment,
Executive shall be issued pursuant to an agreement (the "Stock Option
Agreement") an incentive stock option (the "Option") to purchase 263,000 shares
of the Company's common stock, $0.01 par value per share ("Common Stock"),
pursuant to the Company's 1997 Stock Incentive Plan (the "Stock Incentive
Plan"). The exercise price for each share of Common Stock subject to the Option
shall be the fair market of the stock on the date of grant. The Options shall
vest over a period of two years as follows: (i) one-half on the first year
anniversary of the date of grant; and (ii) one-half on the second anniversary of
the date of grant.

                  2.2.4 Restricted Stock. Upon commencement of employment, the
Company shall grant to Executive 100,000 shares (the "Shares") of the Common
Stock of the Company ("Common Stock"). The Shares will be issued pursuant to a
stock restriction agreement between the Company and Executive (the "Stock
Restriction Agreement"). The Shares shall vest over a two (2) year period as
follows: (i) one-half on the first anniversary of the award; and (ii) one-half
on the second anniversary of the award.

                  2.2.5 Notwithstanding anything to the contrary in Section
10.1(b) of the Stock Incentive Plan, or any similar provisions of any other
stock plan or option plan, 100% of the Options and Shares provided for Executive
under this Agreement shall immediately vest in the event of an Approved
Transaction.

                                       2
<PAGE>

                  2.3 Annual Bonus. Executive shall be eligible for a
discretionary bonus in the form of stock options, up to a maximum amount of
100,000 per year, based upon individual and Company performance.

          3.      Termination.

                  3.1 Termination With Cause or Resignation Without Good Reason.

                  3.1.1 Salary and Benefits. In the event Company terminates
Executive's employment with Cause or Executive resigns without Good Reason,
Executive shall be paid his Base Salary through the date of termination. He
shall not be entitled to any further compensation or benefits except as required
by law or the terms of any benefit plans.

                  3.1.2 Options/Shares. In the event Company terminates
Executive's employment with Cause or Executive resigns his employment without
Good Reason, Executive shall be entitled to all Options and Shares that have
vested as of the date of termination, but shall forfeit all unvested Options and
Shares.

          3.2     Termination Without Cause or Resignation For Good Reason.

                  3.2.1 Termination Pay. In the event Executive's employment is
terminated by Company without Cause or Executive resigns for Good Reason,
Company will pay to Executive a termination payment in the sum of $225,000 to be
paid to Executive in twelve (12) equal installments in the twelve months
immediately following such termination.

                  3.2.2 Options. In the event Executive's employment is
terminated by Company without Cause or Executive resigns for Good Reason, 100%
of the unvested options shall vest on Executive's final date of employment. All
options must be exercised within one (1) year of the termination date.

                  3.2.3 Restricted Stock. In the event Executive's employment is
terminated by Company without Cause or Executive resigns for Good Reason, 100%
of the unvested Shares shall vest on Executive's final date of employment.

                  3.2.4 Release and Compliance with Obligations. In order to be
eligible for any payments, benefits or acceleration of vesting of Options or
restricted stock as set forth in Sections 3.2.1, 3.2.2 or 3.2.3, (i) Executive
must execute and deliver to Company a general release, in a form reasonably
satisfactory to Company, and (ii) as determined by the Company's Board of
Directors, must be and remain in compliance in all material respects with his
material obligations under this Agreement, including without limitation those
set forth in Section 5. In the event the Company's Board of Directors
determines, after a full investigation with notice to Executive, that Executive
has materially breached his material obligations hereunder, including those in
Section 5, any and all payments or benefits provided for in this Section shall
cease immediately.

                  3.3 Cause. For purposes of this Agreement, Cause shall mean
that the Board of Directors concludes, in good faith and after reasonable
investigation, that: (i) Executive has been convicted of a felony under the laws
of the United States or any state or political

                                       3
<PAGE>

subdivision thereof; (ii) that Executive willfully engaged in conduct
constituting breach of a known fiduciary duty, willful misconduct or
recklessness relating to the Company or the performance of Executive's duties or
fraud; (iii) that Executive has willfully breached his non-compete, no-solicit
or confidentiality obligations in any material respect; (iv) that Executive
willfully failed to follow a proper directive of the Company within the scope of
Executive's duties (which shall be capable of being performed by Executive with
reasonable effort) after written notice referencing this subparagraph,
specifying the performance required and Executive's failure to perform within
thirty (30) days after such notice.

                  3.4 Good Reason. For purposes of this Agreement, Good Reason
shall mean (i) the failure of Company to pay Base Salary or additional
compensation or benefits hereunder in accordance with this Agreement, (ii) the
assignment to Executive without Executive's prior written consent of
responsibilities substantially inconsistent with his title or position, or (iii)
the material diminution of Executive's responsibilities or title or authority,
or (iv) the relocation of the Company to a location more than fifty (50) miles
from Manhattan, provided that before Executive can resign for Good Reason under
this Section 3.4, he must provide Company with written notice and a thirty (30)
day period in which to cure.

          4.      Approved Transaction.

                  4.1 In the event of an Approved Transaction, 100% of any
remaining unvested Options and Shares shall immediately vest. In accordance with
Section 2.2.5 of this Agreement, no Committee shall have the authority to
provide Executive with an alternative award in lieu of such Options and Shares
without the Executive's express written consent.

                  4.2 In the event Executive is terminated by the Company
without Cause or Executive resigns for Good Reason within one hundred eighty
(180) days following an Approved Transaction, he shall be entitled to the
greater of (i) the amount equal to his Base Salary for the remainder of the
Employment Term or (ii) $225,000, payable in full upon termination.

                  4.3 Release and Compliance with Obligations. In order to be
eligible for any acceleration of vesting of Options or Shares as set forth in
Section 4.1 or the cash benefit as set forth in Section 4.2, Executive must (i)
execute and deliver to Company a general release, in a form satisfactory to
Company, and (ii) as determined by the Board of Directors be and remain in full
compliance with his material obligations under this Agreement, including without
limitation those set forth in Section 5. In the event that the Board of
Directors determines after a full investigation, with notice to Executive, that
Executive has breached his material obligations under Section 5, any and all
payments or benefits provided for in this Section shall cease immediately.

                  4.4 Approved Transaction. For purposes of this Agreement, an
"Approved Transaction" shall mean (i) the approval of the stockholders of (A)
any tender offer, consolidation or merger of the Company, or binding share
exchange, pursuant to which shares of Common Stock would be changed or converted
into or exchanged for cash, securities or other property, other than any such
transaction which the common stockholders of the Company immediately prior to
such transaction have the same proportionate ownership of the Common

                                       4
<PAGE>

Stock of, and voting power with respect to, the surviving corporation
immediately after such transaction, or (B) any tender offer, merger,
consolidation or binding share exchange to which the Company is a party as a
result of which the persons who are common stockholders of the Company
immediately prior thereto have less than a majority of the combined voting power
of the outstanding capital stock of the Company ordinarily (and apart from the
rights accruing under special circumstances) having the right to vote in the
election of directors immediately following such merger, consolidation or
binding share exchange, (ii) the adoption of any plan or proposal for the
liquidation or dissolution of the Company, or (iii) any sale, lease exchange or
other transfer (in one transaction or a series of related transactions) of all,
or substantially all, of the assets of the Company.

          5.      Confidentiality; Nonsolicitation; Non-Compete; Confidential
Information and Inventions.

                  As a result of Executive's position with the Company,
Executive will have access to significant Confidential Information (as defined
below) of the Company. In addition, as an inducement for Company, Executive has
agreed to impose certain restrictions on his ability to compete with the
business of the Company. Executive understands and acknowledges that these
restrictions are fair and reasonable given, among other things, the national
market for the Company's services and technology. Based on the foregoing, and in
consideration thereof and of the payments to be made to Executive by Company
pursuant to this Agreement, Executive hereby agrees to the following provisions
of this Section 5:

                  5.1 Confidential Information and Inventions Defined. The
Company possesses and will in the future possess information that has been, or
will be, created, discovered or developed, or has become or will become
otherwise known to the Company (including, without limitation, information
pertaining to the business of the Company created, discovered, developed or made
known by or to Executive during the period of or arising out of Executive's
employment by the Company), and/or in which property rights have been or will be
assigned or otherwise conveyed to the Company, which information has or will
have actual or potential economic value in the business in which the Company is
engaged. All of the aforementioned information is hereinafter called
"Confidential Information." By way of illustration, but not limitation,
Confidential Information includes (a) trade secrets, inventions, ideas,
processes, formulae, data, know-how, source and object codes, programs, other
works of authorship, improvements, techniques, discoveries, developments and
designs (hereinafter collectively referred to as "Inventions") and (b)
information regarding plans for research, development, new products or product
improvements, marketing and selling, business plans, strategies, budgets,
unpublished financial statements, forecasts, licenses, prices and costs,
suppliers, customers and information regarding the skills, identity or
compensation of other employees of the Company. Confidential Information does
not include any of the foregoing items which have become publicly known and made
generally available through no wrongful act of Executive or of others who were
under confidentiality obligations as to the item or items involved. Likewise,
Confidential Information shall not include information known to Executive prior
to the commencement of his term as a director of the Company.

                  5.2 Assignment and Nondisclosure of Confidential Information.
All Confidential Information shall be the sole property of the Company and its
assigns, and the

                                       5
<PAGE>

Company and its assigns shall be the sole owner of all patents, copyrights,
trademarks and other rights in connection therewith. Executive hereby assigns to
the Company any rights Executive may have or acquire as a result of his
employment in all Confidential Information. At all times, both during
Executive's employment by the Company and after its termination, Executive will
not acquire any Confidential Information by improper means, Executive will keep
in confidence and trust all Confidential Information which Executive may
acquire, and Executive will not use or disclose any such Confidential
Information or anything relating to it without the written consent of the
Company, except as may be necessary in the ordinary course of performing
Executive's duties as an employee of the Company.

                  5.3 Return of Confidential Information. In the event of the
termination of Executive's employment by Executive or by the Company for any
reason, Executive will deliver to the Company all documents and data of any
nature pertaining to Executive's work with the Company and will not take with
him any documents or data of any description or any reproduction of any
description containing or pertaining to any Confidential Information.

                  5.4 Disclosure of Inventions. Executive will promptly disclose
to the Company, or any persons designated by it, all Inventions whether or not
patentable or copyrightable, made, conceived, reduced to practice, developed,
originated or learned by Executive, either alone or jointly with others, either:

                  (a) during the period of Executive's employment which are
directly or indirectly related to or useful in the business or industry of the
Company or the research or development of the Company, or result from tasks
assigned to Executive by the Company or are otherwise within the scope of
Executive's responsibilities with the Company, or result from use of facilities,
equipment, supplies or premises owned, leased or contracted for by the Company
or use or knowledge of Confidential Information; or

                  (b) within six (6) months after termination of Executive's
employment which are directly or indirectly conceived as a result of, or are
suggested or attributable to, work done by Executive during such employment or
result from use or knowledge of Confidential Information.

                  5.5 Works Made for Hire. Executive acknowledges that all
original works of authorship that are made by Executive (solely or jointly with
others) within the scope of Executive's employment and which are protectable by
copyright are "works made for hire," as that term is defined in the United
States Copyright Act (17 U.S.C., Section 101).

                  5.6 Assignment of Inventions. Executive agrees that all
Inventions shall be the sole property of the Company and its assigns, and the
Company and its assigns shall be the sole owner of all patents and other rights
in connection therewith. Executive hereby assigns to the Company any rights
Executive may have or acquire in all Inventions. Executive further agrees as to
all Inventions to reasonably cooperate with the Company (but at the Company's
expense) in connection with the Company's obtaining and from time to time
enforcing patents, copyrights, trademarks and other rights and protections
relating to the Inventions in any and all countries, and to that end Executive
will execute all documents for use in applying for and obtaining such patents,
copyrights, trademarks, and other rights and protections and enforcing

                                       6
<PAGE>

the same, as the Company may reasonably request, together with any assignments
thereof to the Company or persons designated by it. Executive's obligation to
assist the Company in obtaining and enforcing patents, copyrights, trademarks
and other rights and protections relating to the Inventions in any and all
countries shall continue beyond the termination of Executive's employment, but
the Company shall compensate Executive at a reasonable rate after such
termination for time actually spent by Executive at the Company's request on
such assistance. In the event the Company is unable, after reasonable effort, to
secure Executive's signature on any document or documents needed to apply for or
prosecute any patent, copyright, or other right or protection relating to an
Invention, for any reason whatsoever, Executive hereby irrevocably designates
and appoints the Company and its duly authorized officers and agents as
Executive's agent and attorney-in-fact to act for and on Executive's behalf to
execute and file any such application or applications and to do all other
lawfully permitted acts to further the prosecution and issuance of patents,
copyrights, or similar protections thereon with the same legal force and effect
as if executed by Executive. Executive hereby waives and quitclaims to the
Company any and all claims, of any nature whatsoever, which Executive now or may
hereafter have for infringement of any Confidential Rights assigned hereunder to
the Company.

                  5.7 Former Employer Information. Executive represents that his
performance of all terms of this Agreement as an employee of the Company has not
breached and will not breach any agreement to keep in confidence proprietary
information, knowledge or data acquired by Executive in confidence or trust
prior or subsequent to the commencement of his employment with the Company, and
Executive will not disclose to the Company, or induce the Company to use, any
inventions, confidential or proprietary information or material belonging to any
previous employer or any other party.

                  5.8 Third Party Information. Executive recognizes that the
Company has received and in the future will receive confidential or proprietary
information from third parties, including without limitation, customers and
prospective customers, subject to a duty on the Company's part to maintain the
confidentiality of such information and to use it only for certain limited
purposes. Executive agrees to hold all such confidential or proprietary
information in the strictest confidence and not to disclose it to any person,
firm or corporation or to use it except in connection with carrying out
Executive's work for the Company consistent with the Company's agreement with
such third party.

          5.9     Non-Compete.

                  (a) Executive acknowledges and recognizes the highly
competitive nature of the Company's business, that access to the Company's
confidential records and Confidential Information and his substantial contacts
with existing and prospective customers and clients of the Company occurring in
the course of and as a result of his employment with the Company renders him
special and unique within the Company's industry, and that he will have the
opportunity to develop substantial relationships with existing and prospective
customers of the Company during the course of and as a result of his employment
with the Company. In light of the foregoing, during the term of Executive's
employment with the Company and for a period of twelve (12) months after the
date of the termination of his employment (the "Restricted Period"), Executive
shall not, directly or indirectly, individually or on behalf of any person,
company, enterprise or entity not now parties to this Agreement, or as a sole
proprietor, partner,

                                       7
<PAGE>

stockholder, director, officer, principal, agent, executive, or in any other
capacity or relationship, engage in any business or employment, or aid or
endeavor to assist any person, business, enterprise or legal entity, which is
engaged or is seeking to engage in the Business (a "Competitor"). For purposes
of this Agreement, "Business" shall mean a professional services firm providing
consulting, design and systems integration related to digital channels.
Executive, however, may accept employment with a Competitor the business of
which is diversified provided that (i) Executive will not, directly or
indirectly, render services or assistance to any part of the Competitor that is
in any way engaged in the Business of the Company; and (ii) the Company shall
receive, prior to Executive rendering services to or assisting such Competitor,
written assurances reasonably satisfactory by the Company from Executive and the
Competitor that Executive will not, directly or indirectly, render services or
assistance to any part of the Competitor that is in any way engaged in the
Business of the Company. For purposes of this Section 5.9(a) only, the
Restricted Period shall be reduced to a period of six (6) months following
termination of employment in the event Executive resigns for Good Reason.

                  (b) During the Restricted Period, whether such termination is
voluntary or involuntary, Executive shall not, without the prior written consent
of the Company, on behalf of himself or on behalf of any other person, business,
enterprise or entity, (i) directly or indirectly solicit, divert or encourage
any of the employees, agents, consultants or representatives to terminate his,
her or its relationship with the Company, or hire any such employee, consultant
or representative so solicited or encouraged; (ii) directly or indirectly
solicit or encourage any of the employees, agents, consultants or
representatives of the Company to become employees, agents, representatives or
consultants of another business, enterprise or entity; (iii) directly or
indirectly on behalf of a Competitor solicit, divert or appropriate or attempt
to solicit, divert or appropriate any customers, clients, vendors or
distributors of the Company who were (x) customers, clients, vendors or
distributors of the Company at the time of the termination of Executive's
employment from the Company or during the one (1) year period prior to the
termination of Executive's employment with the Company and with whom Executive
had contact during his employment with the Company or about whom Executive
possessed Confidential Information, or (y) any prospective customers, clients,
vendors or distributors at the time of Executive's termination of employment
with respect to which the Company has developed or made a sales presentation (or
similar offering of services) within the one (1) year period prior to the
termination of Executive's employment with the Company and with whom Executive
had contact during the period of his employment with the Company or about whom
Executive possessed Confidential Information.

                  (c) Executive recognizes and acknowledges that the
restrictions and limitations set forth in this Agreement are legitimate and fair
in light of his access to Confidential Information, his substantial contacts
with customers of the Company and the Company's need to develop and market its
services and products. Executive further acknowledges that the customers of the
Company are located, or may be located, throughout the world and that a business
competitive with the Company may be carried on anywhere as a result of the
unique use of Internet, telephonic, technologic and other advanced
communications techniques. Therefore, Executive acknowledges that the
geographical application of the provisions and restrictions contained in this
Agreement are reasonable under the circumstances. Executive further acknowledges
that: (i) in the event his employment with the Company terminates for any
reason, he will be able to earn a livelihood without violating the foregoing
restrictions and (ii) his ability

                                       8
<PAGE>

to earn a livelihood without violating such restrictions is a material condition
to his employment with the Company.

                  5.10 Injunctive Relief. Executive acknowledges and agrees that
(a) Company will be irreparably injured in the event of a breach by Executive of
any of his obligations under this Section 5; (b) monetary damages will not be an
adequate remedy for any such breach; (c) Company will be entitled to injunctive
relief, in addition to any other remedy which it may have, in the event of any
such breach.

          6.      Miscellaneous Provisions.

                  6.1 Severability. If in any jurisdiction any term or provision
hereof is determined to be invalid or unenforceable, (a) the remaining terms and
provisions hereof shall be unimpaired, (b) any such invalidity or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction, and (c) the invalid or
unenforceable term or provision shall, for purposes of such jurisdiction, be
deemed replaced by a term or provision that is valid and enforce-able and that
comes closest to expressing the intention of the invalid or unenforceable term
or provision.

                  6.2 Execution in Counterparts. This Agreement may be executed
in one or more counterparts, and by the different parties hereto in separate
counter-parts, each of which shall be deemed to be an original but all of which
taken together shall constitute one and the same agreement (and all signatures
need not appear on any one counterpart), and this Agreement shall become
effective when one or more counterparts has been signed by each of the parties
hereto and delivered to each of the other parties hereto.

                  6.3 Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed duly given when
delivered by hand, or when delivered if mailed by registered or certified mail
or private courier service, postage prepaid, return receipt re-quested or via
facsimile (with written confirmation of receipt) as follows:

                  If to the Company, to:

                           K2 Design, Inc.
                           30 Broad Street
                           New York, New York 10004
                           Attention:  Lynn Fantom
                           Telefax No.:  (212) 301-8801

                  Copy to:

                           Brown Raysman Millstein Felder & Steiner LLP
                           120 West 45th Street
                           New York, New York  10036
                           Attention:  Catherine McGrath
                           Telefax No.: (212)840-2429

                                       9
<PAGE>

                  If to Executive, to:

                           Gary W. Brown
                           69 Sun Valley Road
                           Ramsey, New Jersey  07446

                  Copy to:

                           Kaye, Scholer, Fierman, Hays & Handler, LLP
                           425 Park Avenue
                           New York, New York  10022
                           Attention:  Lawrence Darby III

or to such other address(es) as a party hereto shall have designated by like
notice to the other parties hereto.

                  6.4 Amendment. No provision of this Agreement may be modified,
amended, waived or discharged in any manner except by a written instrument
executed by Company and Executive.

                  6.5 Entire Agreement. This Agreement constitutes the entire
agreement of the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings of the parties hereto, oral
or written, with respect to the subject matter hereof and Executive acknowledges
and agrees that he is owed no additional compensation other than as set forth in
this Agreement.

                  6.6 Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
contracts made and to be wholly performed therein without regard to its
conflicts or choice of law provisions.

                  6.7 Headings. The headings contained herein are for the sole
purpose of convenience of reference, and shall not in any way limit or affect
the meaning or interpretation of any of the terms or provisions of this
Agreement.

                  6.8 Binding Effect; Successors and Assigns. Executive may not
delegate his duties or assign his hereunder. This Agreement will inure to the
benefit of, and be binding upon, the parties hereto and their respective heirs,
legal representatives, successors and permitted as-signs.

                  6.9 Waiver, etc. The failure of either of the parties hereto
to at any time enforce any of the provisions of this Agreement shall not be
deemed or construed to be a waiver of any such provision, nor to in any way
affect the validity of this Agreement or any provision hereof or the right of
either of the parties hereto to thereafter enforce each and every provision of
this Agreement. No waiver of any breach of any of the provisions of this
Agreement shall be effective unless set forth in a written instrument executed
by the party against whom or which enforcement of such waiver is sought, and no
waiver of any such breach shall be construed or deemed to be a waiver of any
other or subsequent breach.

                                       10
<PAGE>

                  6.10 Arbitration. Except as provided in Section 5 hereof, any
dispute arising out or relating to this Agreement shall be resolved by
arbitration before one arbitrator under the Employment Dispute Rules of the
American Arbitration Association. The arbitrator shall not have the authority to
modify, change or refuse to enforce the terms of this Agreement. Nothing in this
Section 6.10 shall limit the right of Company to go to court to obtain
injunctive relief for violation of Section 5 hereof.

                  6.11 Continuing Effect. Where the context of this Agreement
requires, the respective rights and obligations of the parties shall survive any
termination or expiration of the term of this Agreement.

                  IN WITNESS WHEREOF, this Employment Agreement has been
executed and delivered by the parties hereto as of the date first above written.

                                              K2, INC.

                                              By: /s/ Lynn Fantom
                                                  --------------------
                                                  Name: Lynn Fantom
                                                  Title: President

                                              EXECUTIVE

                                                  /s/ Gary W. Brown
                                              -----------------------
                                              Gary W. Brown

                                       11
<PAGE>

                                   Schedule A

                             CHIEF OPERATING OFFICER

                      Position Overview and Goals for 2000

Executive Vice President and Chief Operating Officer, Member of the Board of
Directors. This senior member of the management team reports directly to the
Chief Executive Officer and is responsible for finance and accounting, investor
relations, M&A, legal and administration.

The COO acts as chief representative to the investment community.

         2000 Goals

         o        Work closely with the Executive Chairman and CEO to extend new
                  K2 positioning to the investment community.

         o        Develop strategies related to investor relations; establish
                  and lead proactive communications; develop appropriate
                  pitchbooks.

         o        Achieve demonstrable progress in obtaining analyst coverage of
                  the firm

         o        Anticipate and manage all inquiries to K2 from shareholders
                  and the investment community; become primary IR voice for
                  firm.

The COO is responsible for implementation of strategic alliances and mergers &
acquisitions.

         2000 Goals

         o        Work closely with the Executive Chairman and CEO to develop
                  firm's plan for M&A, playing a key role in evaluating
                  potential partners o Play a lead role in merger negotiations

         o        Oversee merger integration planning and implementation

The COO raises capital to finance and grow the company's operations and plays a
key role in corporate development.

         2000 Goals

         o        Develop capital plan to support accelerated growth strategy.

         o        Seek sources of new capital, assess and implement on
                  accelerated timetable.

The COO directs management of K2's cash and investment portfolios.

         2000 Goals

         o        Assess current brokers and financial relationships and
                  strategies, implementing necessary changes.

         o        Direct adjustments in current asset allocation, particularly
                  24/7 investment position.

                                       12
<PAGE>

                                   Schedule A

The COO oversees finance, supervising the Chief Financial Officer and the
accounting staff.

         Direct Report:  Chief Financial Officer

         2000 Goals

         o        Enhance operations to ensure monthly revenue projections and
                  variance reporting of revenues and costs.

         o        Enhance proactive management of financial reporting to comply
                  with all regulations, to ensure fair and accurate competitive
                  positioning and to represent the public entity accurately to
                  shareholders.

         o        Ensure K2 has the best partnerships with law firms and
                  accounting firms for these functions.

         o        Evaluate current staff and structure, implementing appropriate
                  changes.

The COO oversees operations, supervising the Director of Operations and all
operations staff, including human resources, office administrations and systems
administration.

         Direct Report:  VP, Director of Operations

         2000 Goals

         o        Spearhead integration of new operations, including facilities,
                  common financial reporting, human resources policies and
                  benefits.

         o        Assess capacity for growth, maintaining a lean SG&A.

         o        Oversee assessment of growth potential within current
                  facilities and management of facilities planning.

         o        Enhance K2 profitability through intensified improvement of
                  systems and procedures, including overall company record
                  keeping, intranet for knowledge management, time utilization
                  analysis, and recruiting.

         o        Oversee the Director of Operations in development of improved
                  master client contracts

         o        Oversee and support the Director of Operations in the
                  improvement of human resources function, including management
                  contracts, timely performance evaluations, evaluation of staff
                  compensation, analysis of exit interviews and overall turnover
                  trends, and assessment of benefits package (including Stock
                  Incentive Plans).

         o        Lead assessment and development of all company operational
                  policies, as well as communication of standard operating
                  procedures.

         o        Evaluate current staff and structure

The COO may be called upon from time to time to assist in the execution of other
tasks and assignments necessary to fulfill his responsibilities.

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