Document:

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                                                                   EXHIBIT 10.61

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

                                 August 13, 2002

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

Dear Mr. Nathe:

         Pursuant to Paragraph 18 of our agreement dated March 19, 2001 as
amended on February 26, 2002 (the "Agreement") which sets forth the terms of
your employment with Baldwin Technology Company, Inc. (the "Company"), the
Agreement is hereby changed, effective August 13, 2002, as follows:

         (1) Paragraph 2D of the Agreement is changed by deleting that Paragraph
in its entirety, and inserting in its place the following:

                  D. Deferred Compensation. You shall be paid, at such times as
                  are set forth in this Agreement, annual deferred compensation
                  of one hundred one thousand seven hundred eighteen and 60/100
                  dollars ($101,718.60), which on a monthly basis is eight
                  thousand four hundred seventy-six and 55/100 dollars
                  ($8,476.55) (the "Monthly Amount"). The Monthly Amount shall
                  be paid monthly, to you
<PAGE>

                  or your estate, as the case may be, beginning on the day set
                  forth in this Agreement, for a period of one hundred eighty
                  (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.

         (6) Paragraph 3B(i) of the Agreement is changed by deleting that
paragraph in its entirety, and inserting in its place the following:

                  (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, and further amended on February
                  26, 2002, and which is being amended effective August 13, 2002
                  by an Amended and Restated Loan and Pledge Agreement. The Loan
                  was evidenced by a demand promissory note dated November 30,
                  1993 (the "Note"), which was replaced by an amended demand
                  promissory note dated February 26, 2002 (the "Amended Note")
                  in
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                  the principal amount of one million five hundred thousand
                  dollars ($1,500,000.00). The Amended Note is being replaced
                  effective August 13, 2002 by an amended demand promissory note
                  (the "Second Amended Note") in the principal amount of seven
                  hundred fifty thousand dollars ($750,000.00). The Second
                  Amended Note bears interest, payable annually, at a rate equal
                  to five percent (5%) per annum effective August 13, 2002. If
                  your employment under this 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 or accrued interest on
                  the Second Amended Note for a period of six (6) months after
                  such termination, or for a period of twelve (12) months after
                  termination of your employment in the case of your death.
                  Notwithstanding anything to the contrary contained in this
                  Paragraph, at any time that you sell any of the shares of
                  Class B Stock while any amount of the Second Amended 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 Second Amended Note,
                  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 Second
                  Amended Note, plus interest as set forth in the Second Amended
                  Note, on the amount so repaid to the extent that such interest
                  accrued to the date of such repayment.

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         As so changed by this letter agreement, the Agreement shall remain in
full force and effect.

                                        Very truly yours,

                                        BALDWIN TECHNOLOGY COMPANY, INC.

                                        By:
                                             John T. Heald, Jr.
                                             Its President and CEO

AGREED TO AND ACCEPTED:

Gerald A. Nathe<PAGE>
                                                                   EXHIBIT 10.62

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

                                  July 11, 2003

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

Dear Mr. Nathe:

         Pursuant to Paragraph 18 of our agreement dated March 19, 2001, as
amended by our subsequent agreements dated February 26, 2002 and August 13, 2002
(the "Agreement"), which sets forth the terms of your employment with Baldwin
Technology Company, Inc. (the "Company"), the Agreement is hereby further
amended, effective July 1, 2003, as follows:

         1.       Each of Paragraph 1, Paragraph 9D(i), and Paragraph 9D(v) of
                  the Agreement are amended by deleting "Chairman of the Board",
                  and inserting in its place "Chairman of the Board, President
                  and Chief Executive Officer".

         2.       Paragraph 1 of the Agreement is amended by deleting "oversee",
                  and inserting in its place "direct and manage".

         3.       Paragraph 2A of the Agreement is amended by deleting "two
                  hundred fifty thousand dollars ($250,000)", and inserting in
                  its place "three hundred thousand dollars ($300,000)".

         4.       Paragraph 9(D)(ii) of the Agreement is amended by deleting the
                  following:

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                           "provided, however, that you shall not have approved
                           such transaction, in your capacity as a director, by
                           voting for it"

         5.       Paragraph 9(D)(iii) of the Agreement is amended by deleting
                  the following:

                           "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"

         6.       Paragraph 9(G) is amended by deleting "August 5, 2003" and
                  inserting in its place "August 5, 2005".

         As so amended by this letter agreement, the Agreement shall remain in
full force and effect.

                                        Very truly yours,

                                        BALDWIN TECHNOLOGY COMPANY, INC.

                                        By:
                                             ---------------------------

AGREED TO AND ACCEPTED:

-----------------------
Gerald A. Nathe<PAGE>

                                                                    EXHIBIT 10.1

                                    BK2 INC.
                             2002 STOCK OPTION PLAN

         SECTION 1. PURPOSE OF THE PLAN. The purpose of this BK2 Inc. 2002 Stock
Option Plan ("PLAN") is to encourage ownership of common stock, $.01 par value
("COMMON STOCK"), of BK2 Inc., a Delaware corporation (the "COMPANY"), by
eligible employees and directors of the Company and its Subsidiaries (as defined
below) and to provide increased incentive for such employees and directors to
render services and to exert maximum effort for the business success of the
Company. In addition, the Company expects that the Plan will further strengthen
the identification of employees and directors with the stockholders. Options
granted under this Plan will either be nonqualified options ("NONQUALIFIED
OPTIONS") which are options which do not qualify as incentive stock options
pursuant to Section 422 of the Internal Revenue Code of 1986, as amended
("CODE") or options which are intended to qualify as incentive stock options
("ISOS"). As used in this Plan, (i) the term "AFFILIATE" means any entity which
controls, is controlled by, or is under common control with, the Company, and
(ii) the term "SUBSIDIARY" means any "subsidiary corporation" of the Company
within the meaning of Code Section 424(f).

         SECTION 2. ADMINISTRATION OF THE PLAN.

                  (a)      COMPOSITION OF COMMITTEE. The Plan shall be
         administered by a duly constituted committee of the Board of Directors
         of the Company ("BOARD") satisfying the qualifications of this Section
         2. The committee so established, in its capacity as administrator of
         the Plan, is referred to herein as the "COMMITTEE." The Board may
         designate one of the members of the Committee to serve as the Chairman
         of the Committee. If the Company is subject to Section 16 of the
         Securities Exchange Act of 1934, as amended ("EXCHANGE ACT"), the
         Committee shall be composed of not less than two Non-Employee Directors
         (within the meaning of such Rule 16b-3 promulgated by the Securities
         and Exchange Commission ("COMMISSION") under the Exchange Act ("RULE
         16B-3"), each of whom shall be an "outside director" for purposes of
         Section 162(m)(4) of the Code, and shall be appointed by and serve at
         the pleasure of the Board.

                  (b)      COMMITTEE ACTION. The Committee shall hold its
         meetings at such times and places as it may determine. A majority of
         its members shall constitute a quorum, and all determinations of the
         Committee shall be made by not less than a majority of its members. Any
         decision or determination reduced to writing and signed by a majority
         of the members shall be fully effective as if it had been made by a
         majority vote of its members at a meeting duly called and held. The
         Committee may designate the Secretary of the Company or other

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         Company employees to assist the Committee in the administration of the
         Plan, and may grant authority to such persons to execute option
         agreements or other documents on behalf of the Committee and the
         Company.

                  (c)      COMMITTEE EXPENSES. All expenses and liabilities
         incurred by the Committee in the administration of the Plan shall be
         borne by the Company. The Committee may employ attorneys, consultants,
         accountants or other persons.

         SECTION 3. STOCK RESERVED FOR THE PLAN. Subject to adjustment as
provided in Section 6 hereof, the aggregate number of shares of Common Stock
that may be subject to option under the Plan is 775,000. The shares subject to
the Plan shall consist of authorized but unissued shares of Common Stock or
previously issued shares of Common Stock reacquired and held by the Company and
such number of shares shall be and hereby are reserved for sale for such
purpose. Shares of Common Stock shall be deemed to have been issued under the
Plan only to the extent actually issued and delivered pursuant to an option. To
the extent that an option lapses or the rights of its Optionee terminate or are
relinquished or the option is cashed-out, the Common Stock subject to an option
shall again be available for grant of another option. Shares which may remain
unsold and which are not subject to outstanding options at the termination of
the Plan shall cease to be reserved for the purpose of the Plan, but until
termination of the Plan or the termination of the last of the options granted
under the Plan, whichever last occurs, the Company shall at all times reserve a
sufficient number of shares to meet the requirements of the Plan.

         SECTION 4. ELIGIBILITY. The persons eligible to participate in the Plan
as a recipient of options ("OPTIONEE") shall include employees and directors of
the Company or its Subsidiaries at the time the option is granted. An Optionee
who has been granted an option hereunder may be granted an additional option or
options, if the Committee shall so determine.

         SECTION 5. GRANT OF OPTIONS.

                  (a)      COMMITTEE DISCRETION. Except where the Committee has
         explicitly given the authority to some other individual, the Committee
         shall have sole and absolute discretionary authority (i) to determine,
         authorize, and designate those employees and directors of the Company
         or its Subsidiaries who are to receive options under the Plan, (ii) to
         determine the number of shares of Common Stock to be covered by such
         options and the terms thereof, and (iii) to determine the type of
         option granted (ISO, Nonqualified Option or a combination of ISO and
         Nonqualified Options); provided that a director may not receive any
         ISOs. If the Company is subject to Section 16 of the Exchange Act, the
         Committee shall specifically pre-approve each grant to each Optionee
         subject to Section 16(b) of the Exchange Act in accordance with Rule
         16b-3 as amended, unless such grant is or will be otherwise exempt from
         Section 16(b) of the Exchange Act. The Committee shall grant options in
         accordance with its determinations and all such options shall be
         evidenced by a written option agree-

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<PAGE>

         ment. Subject to the express provisions of the Plan, the Committee
         shall have discretionary authority to interpret and construe provisions
         of the Plan and the option agreements delivered thereunder, to make all
         determinations it considers necessary, appropriate, convenient or
         desirable for the administration of the Plan and the option agreements
         granted thereunder, and prescribe, amend and rescind rules and
         regulations for such purposes.

                  (b)      STOCKHOLDER APPROVAL. All options granted under this
         Plan are subject to, and may not be exercised before, the approval of
         this Plan by the stockholders prior to the first anniversary date of
         the Board meeting held to approve the Plan, by the affirmative vote of
         the holders of a majority of the outstanding shares of the Company
         present, or represented by proxy, and entitled to vote thereat or by
         written consent in accordance with the laws of the State of Delaware;
         provided that if such approval by the stockholders of the Company is
         not forthcoming, all options previously granted under this Plan shall
         be void.

                  (c)      LIMITATION ON INCENTIVE STOCK OPTIONS. The aggregate
         number of shares of Common Stock that may be optioned as ISOs under the
         Plan is 775,000. The aggregate fair market value (determined in
         accordance with Section 6(b) of this Plan at the time the option is
         granted) of the Common Stock with respect to which ISOs may be
         exercisable for the first time by any Optionee during any calendar year
         under all such plans of the Company and its Subsidiaries shall not
         exceed $100,000.

         SECTION 6. TERMS AND CONDITIONS. Each option granted under the Plan
shall be evidenced by an agreement, in a form approved by the Committee, which
shall be subject to the following express terms and conditions and to such other
terms and conditions as the Committee may deem appropriate. The terms and
conditions of the option agreements need not be identical.

                  (a)      OPTION PERIOD. The Committee shall promptly notify
         the Optionee of the option grant and a written agreement shall promptly
         be executed and delivered by and on behalf of the Company and the
         Optionee. The date of grant shall be the date the option is actually
         granted by the Committee, even though the written agreement may be
         executed and delivered by the Company and the Optionee after that date.
         Each option agreement shall specify the period for which the option
         thereunder is granted ("OPTION PERIOD"), which in no event shall exceed
         the tenth (10th) anniversary date of the date the option is granted.

                  (b)      OPTION PRICE. The purchase price of each share of
         Common Stock subject to each option granted pursuant to the Plan shall
         be determined by the Committee at the time the option is granted and,
         in the case of ISOs, shall not be less than 100% of the fair market
         value of a share of Common Stock on the date the option is granted, as
         determined by the Committee. In the case of an ISO granted to an
         individual who, at the time of grant, owns stock possessing more than
         ten percent of the total combined voting power of all classes of stock
         of the Company or its Affiliate ("TEN PERCENT STOCKHOLDER"), the option
         price shall not

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         be less than 110% of the fair market value of a share of Common Stock
         on the date the option is granted. The purchase price of each share of
         Common Stock subject to a Nonqualified Option under this Plan shall be
         determined by the Committee prior to granting the option. The Committee
         shall set the purchase price for each share subject to a Nonqualified
         Option at such price as the Committee in its sole discretion shall
         determine.

                  For all purposes under the Plan, the fair market value of a
         share of Common Stock on a particular date shall be equal to the mean
         of the reported high and low sales prices of the Common Stock on any
         national securities exchange on which the Common Stock is traded on
         that date, or if the Common Stock is not traded on a national
         securities exchange, the mean of the high bid and low ask prices of the
         Common Stock on any interdealer quotation system of a registered
         national securities association on which the Common Stock is traded on
         that date. If no prices are reported on that date, then the Company
         shall use the prices on the last preceding date on which such prices of
         the Common Stock are so reported. In the event the Common Stock is not
         publicly traded at the time a determination of its fair market value is
         required to be made hereunder, the determination of its fair market
         value shall be made by the Committee in such manner as it deems
         appropriate.

                  (c)      PROCEDURE FOR EXERCISE. Options shall be exercised by
         the delivery of written notice to the Secretary of the Company setting
         forth the number of shares with respect to which the option is being
         exercised. Such notice shall be accompanied by cash or cashier's check,
         bank draft, postal or express money order payable to the order of the
         Company, or at the option of the Committee, in Common Stock theretofore
         owned by such Optionee (or any combination of cash and Common Stock).
         In addition, in the discretion of the Committee, payment for any shares
         subject to an option may also be made by instructing the Committee to
         withhold a number of such shares having a fair market value (as
         determined in Section 6(b) above) on the date of exercise equal to the
         aggregate exercise price of such option.

                  Notice may also be delivered by fax or telecopy provided that
         the purchase price of such shares is delivered to the Company via wire
         transfer on the same day the fax is received by the Company. The notice
         shall specify the address to which the certificates for such shares are
         to be mailed. An Optionee shall be deemed to be a stockholder with
         respect to shares covered by an option on the date the Company receives
         such written notice and such option payment.

                  As promptly as practicable after receipt of such written
         notification and payment, the Company shall deliver to the Optionee
         certificates for the number of shares with respect to which such option
         has been so exercised, issued in the Optionee's name or such other name
         as Optionee directs; provided, however, that such delivery shall be
         deemed effected for all purposes when a stock transfer agent of the
         Company shall have deposited such certificates

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         in the United States mail, addressed to the Optionee at the address
         specified pursuant to this Section 6(c).

                  (d)      TERMINATION OF EMPLOYMENT. Prior to the occurrence of
         an IPO Date (as defined in Section 6(m)) or Change of Control (as
         defined in Section 6(j)), if an employee to whom an option is granted
         ceases to be employed by the Company for any reason other than death or
         disability or if a director to whom an option is granted ceases to
         serve on the Board for any reason other than death or disability, then
         any option, whether exercisable or not, on the date of such termination
         of employment or cessation from the Board shall expire and terminate
         upon such date of such termination of employment or cessation from the
         Board. After the occurrence of an IPO Date or Change of Control, if an
         employee to whom an option is granted ceases to be employed by the
         Company for any reason other than death or disability or if a director
         to whom an option is granted ceases to serve on the Board for any
         reason other than death or disability, any option which is exercisable
         on the date of such termination of employment or cessation from the
         Board shall expire and terminate on the date that is three (3) months
         after such date of such termination of employment or cessation from the
         Board. Notwithstanding anything herein to the contrary, the Committee,
         in its sole discretion, may allow an Optionee to exercise all or a
         portion of the Options granted but unexercised for a period of time
         after the Optionee's termination of employment or cessation from the
         Board.

                  (e)      DISABILITY OR DEATH OF OPTIONEE.

                           (1)      In the event an Optionee ceases to be an
                  employee or a member of the Board as a result of the
                  Optionee's death or disability and if an IPO Date or Change of
                  Control has occurred either (i) prior to the date, or (ii)
                  within one year after the date, the Optionee ceases employment
                  or ceases to serve on the Board as a result of death or
                  disability, options granted to him under this Plan may be
                  exercised within a one-year period after such determination of
                  disability or death, by the former employee or director, the
                  guardian of his estate, the executor or administrator of his
                  estate or by the person or persons to whom his rights under
                  the option shall pass by will or the laws of descent and
                  distribution, but in no event may the option be exercised
                  after its expiration under the terms of the option agreement.

                           (2)      In the event an Optionee ceases to be an
                  employee or a member of the Board as a result of the
                  Optionee's death or disability, and if no IPO Date or Change
                  of Control has occurred prior to the date which is one year
                  after the date the Optionee ceases to be an employee or member
                  of the Board as a result of the Optionee's death or
                  disability, then any option, whether exercisable or not, shall
                  not be exercisable, and such Option shall expire on the date
                  which is one year after the date the Optionee

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                  ceases to be an employee or a member of the Board on account
                  of the Optionee's death or disability.

                           (3)      An Optionee shall be deemed to be disabled
                  if, in the opinion of a physician selected by the Committee,
                  he is incapable of performing services for the Company of the
                  kind he was performing at the time the disability occurred by
                  reason of any medically determinable physical or mental
                  impairment which can be expected to result in death or to be
                  of long, continued and indefinite duration. The date of
                  determination of disability for purposes hereof shall be the
                  date of such determination by such physician.

                           (4)      Notwithstanding anything herein to the
                  contrary, the Committee, in its sole discretion, may allow an
                  Optionee to exercise all or a portion of the Options granted
                  which are unexercised for a longer period than one year after
                  disability or death.

                  (f)      ASSIGNABILITY. An option shall not be assignable or
         otherwise transferable except by will or by the laws of descent and
         distribution or pursuant to a qualified domestic relations order as
         defined in the Code or Title I of the Employee Retirement Income
         Security Act, as amended, or the rules thereunder. Except as otherwise
         permitted in this Plan, during the lifetime of an Optionee, an option
         shall be exercisable only by him.

                  (g)      INCENTIVE STOCK OPTIONS. Each option agreement may
         contain such terms and provisions as the Committee may determine to be
         necessary or desirable in order to qualify an option designated as an
         incentive stock option.

                  (h)      NO RIGHTS AS STOCKHOLDER. No Optionee shall have any
         rights as a stockholder with respect to shares covered by an option
         until the option is exercised by the written notice and accompanied by
         payment as provided in Section 6(c) above.

                  (i)      EXTRAORDINARY CORPORATE TRANSACTIONS.

                           (1)      The existence of outstanding options shall
                  not affect in any way the right or power of the Company or its
                  stockholders to make or authorize any or all adjustments,
                  recapitalizations, reorganizations, exchanges, or other
                  similar changes in the Company's capital structure or its
                  business, or any merger or consolidation of the Company, or
                  any issuance of Common Stock or other securities or
                  subscription rights thereto, or any issuance of notes, bonds,
                  debentures, preferred or prior preference stock ahead of or
                  affecting the Common Stock or the rights thereof, or the
                  dissolution or liquidation of the Company, or any sale or
                  transfer of all or any part

                                      -6-
<PAGE>

                  of its assets or business, or any other corporate act or
                  proceeding, whether of a similar character or otherwise.

                           (2)      If the Company recapitalizes or otherwise
                  changes its capital structure, or merges, consolidates, sells
                  all of its assets or dissolves and such transaction is not a
                  Change of Control as defined in Section 6(j) below (each of
                  the foregoing a "FUNDAMENTAL CHANGE"), then thereafter upon
                  any exercise of an option theretofore granted the Optionee
                  shall be entitled to purchase under such option, in lieu of
                  the number of shares of Common Stock covered by such option,
                  the number and class of shares of stock and securities to
                  which the Optionee would have been entitled pursuant to the
                  terms of the Fundamental Change as if, immediately prior to
                  such Fundamental Change, the Optionee had been the holder of
                  record of the number of shares of Common Stock covered by the
                  option. In the event any such Fundamental Change causes a
                  change in the outstanding Common Stock, the aggregate number
                  of shares available under the Plan may be appropriately
                  adjusted by the Committee, whose determination shall be
                  conclusive.

                           (3)      The issuance by the Company of any other
                  class of securities which is not Common Stock or convertible
                  into Common Stock shall not affect the number of shares of
                  Common Stock subject to options theretofore granted or the
                  purchase price per share, unless the Committee shall determine
                  in its sole discretion than an adjustment is necessary to
                  provide equitable treatment to Optionee.

                  (j)      CHANGE OF CONTROL. Except as provided below, each of
         the following events shall hereinafter be defined as a "CHANGE OF
         CONTROL":

                  (1)      the Company shall not be the surviving entity in any
                  merger or consolidation with an entity which is not an
                  Affiliate (or survives only as a subsidiary of another entity
                  other than one of the Company's Affiliates);

                  (2)      the Company sells all or substantially all of its
                  assets to any other person or entity (other than an entity
                  which is an Affiliate);

                  (3)      any person or entity which entity is not an Affiliate
                  (including a "group" as contemplated by Section 13(d)(3) of
                  the Exchange Act) acquires or gains beneficial ownership or
                  control of (including, without limitation, power to vote) more
                  than 50% of the outstanding shares of Common Stock;

                  (4)      the Company is to be dissolved and liquidated; or

                                      -7-
<PAGE>

                  (5)      as a result of or in connection with a contested
                  election of directors, the persons who were directors of the
                  Company before such election shall cease to constitute a
                  majority of the Board.

                  (k)      OCCURRENCE OF A CHANGE OF CONTROL. Upon the
         occurrence of an event of Change of Control, all or a portion of an
         Optionee's options may be exercised in accordance with the Optionee's
         option agreement. Further, in the event of a Change of Control, the
         Committee, in its discretion, may act to effect one or more of the
         following alternatives with respect to outstanding options, which may
         vary among individual Optionees and which may vary among options held
         by any individual Optionee:

                  (1)      determine a reasonable period of time on or before a
                  specified date (before or after such Change of Control) after
                  which specified date all unexercised options and all rights of
                  Optionees thereunder shall terminate;

                  (2)      require the mandatory surrender to the Company by
                  selected Optionees of some or all of the outstanding options
                  held by such Optionees (irrespective of whether such options
                  are then exercisable under the provisions of the Plan) as of a
                  date, before or after such Change of Control, specified by the
                  Committee, in which event the Committee shall thereupon cancel
                  such options and the Company shall pay to each Optionee an
                  amount of cash per share equal to the excess, if any, of the
                  fair market value of the shares subject to such option over
                  the exercise price(s) under such options for such shares; or

                  (3)      provide that upon any exercise of an outstanding
                  option, the Optionee shall be entitled to purchase under such
                  option, in lieu of the number of shares of Common Stock then
                  covered by such option, the number and class of shares of
                  stock or other securities or property (including, without
                  limitation, cash) to which the Optionee would have been
                  entitled if, immediately prior to the Change of Control, the
                  Optionee has been the holder of record of the number of shares
                  of Common Stock then covered by the option. The provisions
                  contained in this Section shall not terminate any rights of
                  the Optionee to further payments pursuant to any other
                  agreement with the Company following a Change of Control.

                  (l)      CHANGES IN COMPANY'S CAPITAL STRUCTURE. If the
         outstanding shares of Common Stock or other securities of the Company,
         or both, for which the option is then exercisable shall at any time be
         changed or exchanged by declaration of a stock dividend, stock split,
         or combination of shares, the number and kind of shares of Common Stock
         or other securities which are subject to the Plan or subject to any
         options theretofore granted, and the option prices, shall be
         appropriately and equitably adjusted so as to maintain the

                                      -8-
<PAGE>

         proportionate number of shares or other securities without changing the
         aggregate option price.

                  (m)      IPO DATE. As used herein, the term "IPO DATE" shall
         mean the date on which the Company shall consummate an underwritten
         public offering of Common Stock registered under the Securities Act of
         1933, as amended, and as a result of which the Common Stock is
         authorized for trading in an automated interdealer quotation system of
         a registered national securities association or is listed for trading
         on a national securities exchange.

                  (n)      ACCELERATION OF OPTIONS. Notwithstanding anything to
         the contrary contained in this Plan, the Committee may in its sole
         discretion accelerate the time at which any option may be exercised,
         including, but not limited to, upon the occurrence of the events
         specified in this Section 6.

                  (o)      CASHING OUT OPTION. On receipt of written notice of
         exercise, the Committee may elect to cash out all or part of the
         portion of the shares of Common Stock for which an option is being
         exercised by paying the Optionee an amount, in cash or Common Stock,
         equal to the excess of the fair market value of the Common Stock (as
         determined in Section 6(b)) over the option price times the number of
         shares of Common Stock for which the option is being exercised on the
         effective date of such cash-out.

                  (p)      STOCKHOLDERS AGREEMENTS. The Committee shall provide
         in the option agreement with respect to any shares of Common Stock
         purchased pursuant to an option granted under the Plan, that prior to
         receiving any shares of Common Stock or after receipt of shares of
         Common Stock upon the exercise of an option granted under this Plan,
         the Optionee (or the Optionee's representative upon the Optionee's
         death) shall be bound by similar contractual obligations placed on
         shareholders of the Company which restrict the ability of such
         shareholders of the Company to transfer their shares of Common Stock,
         unless such condition is otherwise waived by the Company.

         SECTION 7. AMENDMENTS OR TERMINATION. The Board may amend, alter or
discontinue the Plan, but no amendment or alteration shall be made which would
impair the rights of any Optionee, without his consent, with respect to any
option theretofore granted, or which, without the approval of the stockholders,
would: (i) except as is provided in Section 6, increase the total number of
shares reserved for the purposes of the Plan, (ii) change the class of persons
eligible to participate in the Plan as provided in Section 4, (iii) extend the
applicable maximum option period provided for in Section 6(a), (iv) extend the
expiration date of this Plan set forth in Section 14, (v) except as provided in
Section 6, decrease to any extent the option price of any option granted under
the Plan or (vi) withdraw the administration of the Plan from the Committee.

                                      -9-
<PAGE>

         SECTION 8. COMPLIANCE WITH OTHER LAWS AND REGULATIONS. The Plan, the
grant and exercise of options thereunder, and the obligation of the Company to
sell and deliver shares under such options, shall be subject to all applicable
federal and state laws, rules and regulations and to such approvals by any
governmental or regulatory agency as may be required. The Company shall not be
required to issue or deliver any certificates for shares of Common Stock prior
to the completion of any registration or qualification of such shares under any
federal or state law or issuance of any ruling or regulation of any government
body which the Company shall, in its sole discretion, determine to be necessary
or advisable. Any adjustments provided for herein in Section 6 shall be subject
to any shareholder action required by Delaware corporate law.

         SECTION 9. PURCHASE FOR INVESTMENT. Unless the options and shares of
Common Stock covered by this Plan have been registered under the Securities Act
of 1933, as amended, or the Company has determined that such registration is
unnecessary, each person exercising an option under this Plan may be required by
the Company to give a representation in writing that he is acquiring such shares
for his own account for investment and not with a view to, or for sale in
connection with, the distribution of any part thereof.

         SECTION 10. TAXES.

                  (a)      The Company may make such provisions as it may deem
         appropriate for the withholding of any taxes which it determines is
         required in connection with any options granted under this Plan.

                  (b)      Notwithstanding the terms of Section 10(a), any
         Optionee may pay all or any portion of the taxes required to be
         withheld by the Company or paid by him in connection with the exercise
         of a nonqualified option by electing to have the Company withhold
         shares of Common Stock, or by delivering previously owned shares of
         Common Stock, having a fair market value, determined in accordance with
         Section 6(b), equal to the amount required to be withheld or paid;
         provided that such tax withholding or stock delivery rights was
         specifically pre-approved by the Committee as a feature of the option
         or is otherwise approved in accordance with Rule 16b-3. An Optionee
         must make the foregoing election on or before the date that the amount
         of tax to be withheld is determined. All such elections are irrevocable
         and subject to disapproval by the Committee.

         SECTION 11. REPLACEMENT OF OPTIONS. The Committee from time to time may
permit an Optionee under the Plan to surrender for cancellation any unexercised
outstanding option and receive from the Company in exchange an option for such
number of shares of Common Stock as may be designated by the Committee. The
Committee may, with the consent of the person entitled to exercise any
outstanding option, amend such option, including reducing the exercise price of
any option or extending the term thereof.

                                      -10-
<PAGE>

         SECTION 12. NO RIGHT TO COMPANY EMPLOYMENT. Nothing in this Plan or as
a result of any option granted pursuant to this Plan shall confer on any
individual any right to continue in the employ of the Company or interfere in
any way with the right of the Company to terminate an individual's employment at
any time. The option agreements may contain such provisions as the Committee may
approve with reference to the effect of approved leaves of absence.

         SECTION 13. LIABILITY OF COMPANY. The Company and any Affiliate which
is in existence or hereafter comes into existence shall not be liable to an
Optionee or other persons as to:

                  (a)      THE NON-ISSUANCE OF SHARES. The non-issuance or sale
         of shares as to which the Company has been unable to obtain from any
         regulatory body having jurisdiction the authority deemed by the
         Company's counsel to be necessary to the lawful issuance and sale of
         any shares hereunder; and

                  (b)      TAX CONSEQUENCES. Any tax consequence expected, but
         not realized, by any Optionee or other person due to the exercise of
         any option granted hereunder.

         SECTION 14. EFFECTIVENESS AND EXPIRATION OF PLAN. The Plan shall be
effective on the date of its approval and adoption by the Board ("EFFECTIVE
DATE"). If the stockholders of the Company fail to approve the Plan within
twelve months of the date the Board approved the Plan, the Plan shall terminate
and all options previously granted under the Plan shall become void and of no
effect. The Plan shall expire on the tenth (10th) anniversary date of the
Effective Date.

         SECTION 15. NON-EXCLUSIVITY OF THE PLAN. Neither the adoption by the
Board nor the submission of the Plan to the stockholders of the Company for
approval shall be construed as creating any limitations on the power of the
Board to adopt such other incentive arrangements as it may deem desirable,
including without limitation, the granting of stock options otherwise than under
the Plan, and such arrangements may be either generally applicable or applicable
only in specific cases.

         SECTION 16. GOVERNING LAW. This Plan and any agreements hereunder shall
be interpreted and construed in accordance with the laws of the State of
Delaware and applicable federal law.

         IN WITNESS WHEREOF, and as conclusive evidence of the adoption of the
foregoing by directors of the Company, BK2 Inc. has caused these presents to be
duly executed in its name and behalf by its proper officers thereunto duly
authorized as of this _____ day of April, 2002.

                                          BK2 INC.

                                          By:    _____________________________

                                      -11-
<PAGE>

                                          Name:  _____________________________
                                          Title: _____________________________

                                      -12-

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