Document:

Prepared by MerrillDirect

EXHIBIT 10.1

CHANGE OF
CONTROL AGREEMENT

This Change of
Control Agreement (the “Agreement”) is effective as of ____________, 2001 (the
“Effective Date”), by and between [EMPLOYEE NAME] (the “Employee”), and Applied
Microsystems Corporation, a Washington corporation (the “Company”).

RECITALS

             A.         The
Employee is presently employed by the Company and performs significant
strategic and management responsibilities necessary to the continued conduct of
the Company’s business and operations.

             B.          The
Board of Directors of the Company (the “Board”) has determined that it is in
the best interests of the Company and its stockholders to assure that the
Company will have the continued dedication and objectivity of the Employee,
notwithstanding the possibility or occurrence of a Change of Control (as
defined below) of the Company.

             C.          The
Board believes that it is imperative to provide the Employee with certain
severance benefits upon the Employee’s termination of employment under the
circumstances described herein which provide the Employee with enhanced
financial security and provide sufficient incentive and encouragement to the
Employee to remain with the Company following a Change of Control.

             D.         Certain
capitalized terms used in the Agreement are defined in Section 3 below.

             In consideration of the mutual
covenants herein contained the parties agree as follows:

             1.          Terms
of Employment.  The Company and the
Employee agree that the Employee’s employment is at will, and that their
employment relationship may be terminated by either party at any time, with or
without cause.  If the Employee’s
employment terminates for any reason within two (2) months prior to, upon or
within twelve (12) months following a Change of Control, the Employee shall not
be entitled to any payments, benefits, damages, awards or compensation other
than as provided by this Agreement.

             2.          Severance
Benefits.  Subject to Section 2 (c)
below:

                           (a)         Termination Upon A Change of Control.  If the Employee’s employment is terminated
within two (2) months prior to, upon or within twelve (12) months following a
Change of Control, then the Employee shall be entitled to receive the
compensation, accrued but unused vacation and benefits earned by the Employee
through the date of the Employee’s termination of employment and in addition
thereto the following severance benefits, as applicable:

                                        (i)          Involuntary Termination.  If the Employee’s employment is terminated
as a result of Involuntary Termination (as defined in Section 3(b) below), then
the Employee shall be entitled to receive the following:

                                                     (A)       severance pay in an amount equal to 0.5
times the Employee’s annual base salary at the time of such termination, plus
an amount equal to a portion of the incentive bonus, if any, the Employee will
have earned for the fiscal quarter of the termination on the basis of the
achievement of the agreed upon goals for the fiscal quarter of the termination
pro rated to the date of  termination,
to be paid in a lump sum within thirty (30) days of the Employee’s termination;

                                                     (B)        all
options previously granted to Employee shall be subject to the provisions of
the underlying option agreements; and

                                                     (C)        for a period of up to 12 months after
any termination under this Section 2(a)(i), (i) the Company shall reimburse the
Employee for any COBRA premiums paid by the Employee for continued group health
insurance coverage (the “Employment Benefits”).  If the Employee’s medical coverage immediately prior to the date
of termination of employment included the Employee’s dependents, the Company
paid COBRA premiums shall include premiums for such dependents.  Such Employment Benefits shall terminate
upon the earlier of (i) 12 months from the date of the Employee’s termination
or (ii) upon commencement of new employment by the Employee.

                                        (ii)         Voluntary Resignation.  If the Employee’s employment terminates by
reason of the Employee’s voluntary resignation (and is not an Involuntary
Termination or a termination for Cause), then the Employee shall not be
entitled to receive severance or other benefits following the date of such
termination under the terms of this Agreement, and the Company shall have no
obligation to provide for the continuation of any health and medical benefit or
life insurance plans existing on the date of such termination except as
otherwise required by applicable law.

                                        (iii)        Disability; Death.  If the Company terminates the Employee’s
employment as a result of the Employee’s Disability, or such Employee’s
employment is terminated at any time due to the death of the Employee, then the
Employee shall not be entitled to receive severance or other benefits following
the date of such termination under the terms of this Agreement, and the Company
shall have no obligation to provide for the continuation of any health and medical
benefit or life insurance plans existing on the date of such termination except
as otherwise required by applicable law.

                                        (iv)       Termination for Cause.  If the Employee is terminated for Cause,
then the Employee shall not be entitled to receive any severance or other
benefits following the date of such termination under the terms of this
Agreement, and the Company shall have no obligation to provide for the
continuation of any health and medical benefit or life insurance plans existing
on the date of such termination except as otherwise required by applicable law.

                           (b)        Limitation of Payments and Benefits.

                                        (i)          To the extent that any of the payments
and benefits provided for in this Agreement or otherwise payable to the
Employee constitute “parachute payments” within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”), and, but for this
Section 2(b), would be subject to the excise tax imposed by Section 4999 of the
Code or any similar or successor provision, the aggregate amount of such
payments and benefits shall be reduced, but only to the extent necessary so
that none of such payments and benefits are subject to excise tax pursuant to
Section 4999 of the Code.

                                        (ii)         Within sixty (60) days after the later
of termination of employment or the related Change in Control, the Company
shall notify the Employee in writing if it believes that any reduction in the
payments and benefits that would otherwise be paid or provided to the Employee
under the terms of this Agreement is required to comply with the provisions of
Subsection 2(b)(i).  If the Company
determines that any such reduction is required, it will provide the Employee
with copies of the information used and calculations made by the Company to
determine the amount of such reduction. 
The Company shall determine, in a fair and equitable manner after
consultation with the Employee, which payments and benefits are to be reduced
so as to result in the maximum benefit for the Employee.

                                        (iii)        Within thirty (30) days after the
Employee’s receipt of the Company’s notice pursuant to Subsection 2(b)(ii), the
Employee shall notify the Company in writing if the Employee disagrees with the
amount of reduction determined by the Company, or the selection of the payments
and the benefits to be reduced.  As part
of such notice, the Employee shall also advise the Company of the amount of
reduction, if any, that the Employee has, in good faith, determined to be
necessary to comply with the provisions of Subsection 2(b)(i) and/or the
payments and benefits to be reduced. 
Failure by the Employee to provide this notice within the time allowed
will be treated by the Company as acceptance by the Employee of the amount of
reduction determined by the Company and/or the payments and benefits to be
reduced.  If any differences regarding
the amount of the reduction and/or the payments and benefits to be reduced have
not been resolved by mutual agreement within sixty (60) days after the
Employee’s receipt of the Company’s notice pursuant to Subsection 2(b)(ii), the
amount of reduction and/or the payments and benefits to be reduced as
determined by the Employee will be conclusive and binding on both parties
unless, prior to the expiration of such sixty (60) day period, the Company
notifies the Employee in writing of the Company’s intention to have the matter
submitted to arbitration for resolution and proceeds to do so promptly.  If the Company gives no notice to the
Employee of a required reduction as provided in Subsection 2(b)(ii), the Employee
may unilaterally determine the amount of reduction required, if any, and/or the
payments and benefits to be reduced, and, upon written notice to the Company,
the amount and/or the payments and benefits to be reduced will be conclusive
and binding on both parties.

                                        (iv)       If, as a result of the reductions
required by Subsection 2(b)(i), the amounts previously paid to the Employee
exceed the amount to which the Employee is entitled, the Employee will promptly
return the excess amount to the Company.

             3.          Definition
of Terms.  The following terms
referred to in this Agreement shall have the following meanings:

                           (a)         Change of Control.  “Change of Control” shall mean the
occurrence of either of the following events:

                                        (i)          Any “person’ (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is
or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Company representing more than
fifty percent (50%) of the total combined voting power represented by the
Company’s then outstanding voting securities; or

                                        (ii)         A merger or consolidation of the
Company with any other corporation or other business entity, other than a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity or parent thereof) more than fifty percent (50%) of the total
combined voting power represented by the voting securities of the Company or
such surviving or parent entity outstanding immediately after such merger or
consolidation; or (B) the complete liquidation of the Company; or (C) the sale
or disposition by the Company of all or substantially all the Company’s assets,
unless the Company remains an operating business and a going concern, and, with
respect to subsection 2(b), the Company continues the Option in effect.

                           (b)        Involuntary Termination.  “Involuntary Termination” shall mean the
Employee’s resignation within 60 days after any of the following:

                                        (i)          Without the Employee’s express written
consent, the assignment to the Employee of any significant duties or the
significant reduction of the Employee’s duties, either of which is materially
inconsistent with the Employee’s position with the Company and responsibilities
in effect immediately prior to such assignment, or the removal of the Employee
from such position and responsibilities, which is not effected for death,
Disability or for Cause;

                                        (ii)         Without the Employee’s express written
consent, any reduction by the Company in an amount greater than 10% in the base
salary and/or or maximum incentive bonus (subject, however, to satisfaction of applicable
goals with respect to the actual amount of incentive bonus earned) as in effect
immediately prior to such reduction, other than a reduction applied generally
to executive officers of the Company;

                                        (iii)        Without the Employee’s express written consent,
any reduction by the Company in the kind or level of employee benefits to which
the Employee is entitled immediately prior to such reduction, other than a
reduction applied generally to executive officers of the Company;

                                        (iv)       Without the Employee’s express written
consent, the relocation of the Employee to a facility or a location more than
40 miles from the Employee’s then present location, without the Employee’s
express written consent; or

                                        (v)        The failure of the Company to obtain the
assumption of the terms of this Agreement by any successors contemplated in
Section 4 below, provided, however, that the Employee’s resignation as a result
of any of the foregoing conditions shall be a voluntary resignation, and not an
involuntary termination, unless the Employee gives written notice of any such
condition(s) to the Board and allows the Company at least 10 days thereafter to
correct such condition(s).

                           (c)         Cause.  For purposes of this Agreement, a termination for “Cause” occurs
if the Employee is terminated for any of the following reasons:

                                        (i)          The Employee’s theft, dishonesty,
misconduct or intentional falsification of any employment or Company records;

                                        (ii)         The Employee’s intentional and improper
disclosure or use of the Company’s confidential or proprietary information;

                                        (iii)        Any action by the Employee that has a
material detrimental effect on the Company’s reputation or business;

                                        (iv)       The Employee’s failure or inability to
perform any assigned duty reasonably expected of a person holding the
Employee’s position after written notice from the Board to the Employee of, and
a reasonable opportunity to cure, such failure or inability; or

                                        (v)        The Employee’s conviction (including any
plea of guilty or nolo contendere) for any criminal act that impairs the
Employee’s ability to perform his duties for the Company.

                           (d)        Disability.  “Disability” shall mean that the Employee is
unable to perform his duties as an employee of the Company as the result of his
incapacity due to physical or mental impairment for 120 days (not necessarily
consecutive) in any one year period. 
Termination resulting from Disability may only be effected after at
least 30 days’ written notice by the Company of its intention to terminate the
Employee’s employment.  In the event
that the Employee resumes the performance of substantially all of his duties as
an employee of the Company before the termination of his employment becomes
effective, the notice of intent to terminate shall automatically be deemed to
have been revoked.

             4.          Employee
Covenant Regarding Nonsolicitation. 
For a period of one (1) year following termination of employment for any
reason, the Employee shall not recruit, solicit, or invite the solicitation of
any employees of the Company to terminate their employment with the Company.

             5.          Successors.

                           (a)         Company’s Successors.  Any successor (or parent thereof) to the
Company (whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) or to all or substantially all of the
Company’s business and/or assets shall assume the obligations under this
Agreement and agree expressly to perform the obligations under this Agreement
in the same manner and to the same extent as the Company would be required to
perform such obligations in the absence of a succession.  For all purposes under this Agreement, the
term “Company” shall include any successor (or parent thereof) to the Company’s
business and/or assets which executes and delivers the assumption agreement
described in this subsection (a) or which becomes bound by the terms of this
Agreement by operation of law.

                           (b)        Employee’s Successors.  All rights of the Employee hereunder shall
inure to the benefit of, and be enforceable by, the Employee’s personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. 
Employee shall have no right to assign any of his obligations or duties
under this Agreement to any other person or entity.

             6.          Notice.

                           (a)         General.  Notices and all other communications
contemplated by this Agreement shall be in writing and shall be deemed to have
been duly given when personally delivered or when mailed by U.S. registered or
certified mail, return receipt requested and postage prepaid.  In the case of the Employee, mailed notices
shall be addressed to him at the home address which he most recently
communicated to the Company in writing. 
In the case of the Company, mailed notices shall be addressed to its
corporate headquarters, and all notices shall be directed to the attention of
its Secretary.

                           (b)        Notice of Termination.  Any termination by the Company for Cause or
by the Employee as a result of a voluntary resignation or an Involuntary
Termination shall be communicated by a notice of termination to the other party
hereto given in accordance with Section 6 of this Agreement.  Such notice shall indicate the specific
termination provision in this Agreement relied upon, shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination under the provision so indicated, and shall specify the termination
date (which shall be not more than 15 days after the giving of such notice).

             7.          Miscellaneous
Provisions.

                           (a)         No Duty to Mitigate.  The Employee shall not be required to
mitigate the amount of any payment contemplated by this Agreement (whether by
seeking new employment or in any other manner), nor, except with respect to the
Employment Benefits as described in Section 2(a)(i), shall any such payment be reduced
by any earnings that the Employee may receive from any other source.

                           (b)        Waiver.  No provision of this Agreement shall be modified, waived or
discharged unless the modification, waiver or discharge is agreed to in writing
and signed by the Employee and by an authorized officer of the Company (other
than the Employee).  No waiver by either
party of any breach of, or of compliance with, any condition or provision of
this Agreement by the other party shall be considered a waiver of any other
condition or provision or of the same condition or provision at another time.

                           (c)         Choice of Law.  The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of the State of
Washington.

                           (d)        Severability.  The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

                           (e)         Arbitration.  In the event of any dispute or claim relating
to or arising out of the Employee’s employment relationship with the Company,
this Agreement, or the termination of the Employee’s employment with the
Company for any reason (including, but not limited to, any claims of breach of contract, wrongful
termination, fraud or age, race, sex, national origin, disability or other
discrimination or harassment), the Employee and the Company agree that all such
disputes shall be fully, finally and exclusively resolved by binding
arbitration conducted by the American Arbitration Association in King County,
Washington.  The Employee and the
Company hereby knowingly and willingly waive their respective rights to have
any such disputes or claims tried to a judge or jury. Provided, however, that
this arbitration provision shall not apply to any disputes or claims relating
to or arising out of the actual or alleged misuse or misappropriation of
confidential information, including, but not limited to, either party’s trade
secrets or proprietary information.

                           (f)         No Assignment of Benefits.  The rights of any person to payments or
benefits under this Agreement shall not be made subject to option or
assignment, either by voluntary or involuntary assignment or by operation of
law, including (without limitation) bankruptcy, garnishment, attachment or
other creditor’s process, and any action in violation of this subsection (f)
shall be void.

                           (g)        Employment Taxes.  All payments made pursuant to this Agreement
will be subject to withholding of applicable income and employment taxes.

                           (h)        Assignment by Company.  The Company may assign its rights under this
Agreement to an affiliate, and an affiliate may assign its rights under this
Agreement to another affiliate of the Company or to the Company; provided,
however, that no assignment shall be made if the net worth of the assignee is
less than the net worth of the Company at the time of assignment.  In the case of any such assignment, the term
“Company” when used in a section of this Agreement shall mean the corporation
that actually employs the Employee.

                           (i)          Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

                           (j)          Prior Agreements.  This Agreement shall supersede all prior
arrangements whether written or oral, and understandings, regarding the subject
matter of this Agreement.

             IN WITNESS WHEREOF, each of the
parties has executed this Agreement, in the case of the Company by its duly
authorized officer, as of the day and year first above written.

	COMPANY	APPLIED MICROSYSTEMS CORPORATION 
	 	 
	 	 
	 	By:
	 	

	 	Title:
	 	

	 	 
	 	 
	EMPLOYEE	By:Prepared by MerrillDirect

EXECUTIVE
STOCK PLEDGE, SECURITY AND RETENTION AGREEMENT

             THIS
EXECUTIVE STOCK PLEDGE, SECURITY AND RETENTION AGREEMENT (as amended,
supplemented or otherwise modified from time to time this "Agreement")
is made as of April 18, 2001, between Kevin G. Kerns ("Pledgor"),
and Apropos Technology, Inc., an Illinois corporation (the "Company").

             Contemporaneously
with the execution of this Agreement, Pledgor has executed a promissory note
(as amended, supplemented or otherwise modified from time to time the "Note")
to the order of the Company to evidence a loan by the Company, being made to
fund certain alternative minimum tax obligations of Pledgor.

             The
Pledgor has agreed to pledge to the Company, to secure payment on the Note,
311,111 Common Shares of the Company (the "Common Shares"),
identified on Exhibit A (the "Initial Pledged Shares," and
together with any other Common Shares pledged hereunder from time to time, the
"Pledged Shares") and to grant a security interest in all of
his future federal and state income tax refunds to secure payment on the Note
(to the extent of any and all “AMT Recoveries” as defined under the
Note).

             In
consideration of the promises contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and in order to induce the Company to make the loan represented by the
Note,  Pledgor and the Company hereby
agree as follows:

             1.          Incorporation of Recitals. The
above recitals are incorporated into this Agreement.

             2.          Pledge.  Pledgor hereby pledges to the Company, and
grants to the Company a security interest in, all of the following, whether now
owned or hereafter acquired: (i) the Initial Pledged Shares, (ii) the
"Additional Pledged Shares," (iii) distributions in respect of, in substitution
for, or in exchange for any of the Pledged Shares (including by way of stock
dividend, asset distributions or otherwise), as security for the prompt and
complete payment when due of the unpaid principal of, and unpaid interest on,
the Note, (iv) all of Pledgor’s federal and state income tax refunds arising
from AMT Recoveries, and (v) all proceeds of the foregoing.  Commencing on the date one year from the
date hereof, in the event that at any time thereafter the "Fair Market
Value" of the Pledged Shares is less than the outstanding principal amount
of the Note and accrued and unpaid interest (the "Loan Balance")
at such time, Pledgor shall deposit with the Company, within 10 business days,
additional certificates representing Common Shares of the Company (the "Additional
Pledged Shares"), together with executed stock powers in the form
attached hereto as Exhibit B, such that the aggregate Fair Market Value of the
Pledged Shares, including the Additional Pledged Shares at the time of the
additional deposit, is no less than 110% of the then outstanding Loan
Balance.  The Company's sole remedy for
a failure to comply with the preceding sentence shall be to declare a Default
under Section 7 of this Agreement and exercise its remedies thereunder.  At any time of determination of the "Fair
Market Value" of Common Shares, such value shall be deemed to be the
average of the per share closing price of the Common Shares on the principal
market on which such shares are traded for the previous ten trading days,
unless trading is suspended in which case the value shall be determined in good
faith by the Board of Directors of the Company.

             3.          Delivery of Pledged Shares.  Upon the execution of this Agreement,
Pledgor shall deliver to the Company the certificate(s) representing the
Initial Pledged Shares, together with duly executed stock powers in
substantially the form attached hereto as Exhibit B, and a duly executed power
of attorney in substantially the form attached hereto as Exhibit C.  The Pledgor represents that the Initial
Pledged Shares represent the lesser of (i) Common Shares with a Fair Market
Value equal to 1.5 times the principal amount of the Note, or (ii) all of the
Common Shares of the Company owned by the Executive.  The
Company covenants that the stock powers and power of attorney shall be utilized
solely in connection with any applicable surrender of Pledgor's shares pursuant
to the exercise of the Company's rights under Sections 7(a) or 7(b) of this
Agreement.

             4.          Voting Rights.  Notwithstanding anything to the contrary
contained herein, during the "Term of this Agreement" (as defined in
Section 8 below) and until such time as there exists a "Default" (as
defined in Section 7 below) under the Note or under this Agreement, Pledgor
shall be entitled to all voting rights with respect to the Pledged Shares.  During the continuance of any such Default,
any officer or director of the Company (other than Pledgor), as directed by the
Board of Directors shall have the right to vote the Pledged Shares.

             5.          Stock Dividends; Distributions, etc.  If, during the Term of this Agreement,
Pledgor becomes entitled to receive, or receives, any securities or other
property in respect of, in substitution of, or in exchange for any of the
Pledged Shares or any other pledged collateral (whether as a distribution in
connection with any recapitalization, reorganization or reclassification, a
stock dividend or otherwise), Pledgor shall accept such securities or other
property on behalf of, and for the benefit of, the Company as additional
security for Pledgor's unpaid indebtedness under the Note and shall promptly
deliver such additional security to the Company, together with duly executed
forms of assignment, and such additional security shall be deemed to be part of
the collateral pledged hereunder.

             6.          Substitution of Collateral.  With the consent of the Company, which shall
be given or withheld in the Company's sole and absolute discretion, Pledgor
shall be entitled to the release of all or a portion of the Pledged Shares (the
"Released Shares"); provided that Pledgor substitutes,
for such Released Shares, collateral of such value and liquidity as the Company
deems appropriate, accompanied by appropriate forms of assignment and other
documentation, all to the Company's sole satisfaction.  Upon such substitution of collateral, the
Company shall promptly surrender the Released Shares to Pledgor, together with
all forms of assignment relating thereto, and shall promptly execute and deliver
such other and further documents as may be necessary to evidence its full and
complete release of any security interest in the Released Shares.  Any reference in this Agreement to the
Pledged Shares shall be to the Pledged Shares, if any, remaining after the
release of Released Shares pursuant to this Section 6.

 

             7.          Default.

             (a)         In the event (i) Pledgor fails to pay
any portion of the principal or interest under the Note when it becomes due,
and such failure or breach is not cured by Pledgor within five days of written
notice thereof from the Company, (ii) any representation of Pledgor in the Note
or this Pledge Agreement was incorrect in any material respect when made, (iii)
Pledgor otherwise breaches this Agreement or the Note in any manner, which
breach is not cured within five days of written notice from the Company, or
(iv) the Pledgor files a petition or otherwise seeks relief under any
bankruptcy, insolvency or similar law ("Insolvency Law") or a
receiver, conservator, custodian or similar person is appointed by court order,
or an order for relief is entered under federal or other applicable bankruptcy
laws with respect to Pledgor, or a petition is filed against Pledgor under any
Insolvency Law, or Pledgor makes an assignment for the benefit of creditors
(any such event in (i)-(iv) being a "Default"), then the
Company may exercise any and all rights, powers and remedies of any owner of
the Pledged Shares or other pledged collateral in furtherance of this Agreement
and shall have, and may exercise without demand, any and all of the rights and
remedies granted to a secured party upon default under the Uniform Commercial
Code of Illinois or otherwise available to the Company under applicable
law.  Without limiting the foregoing,
the Company is authorized to sell, assign and deliver at its discretion, from
time to time during any period after a Default, all or any part of the Pledged
Shares and other pledged collateral for the account of Pledgor at any private
sale or public auction, on not less than ten days' written notice to Pledgor,
at such price or prices and upon such terms as the Company may reasonably deem
advisable.  Pledgor shall have no right
to redeem any Pledged Shares or other pledged collateral thus sold or
auctioned.  At any such sale or auction,
the Company may bid for, and become the purchaser of, the whole or any part of
the Pledged Shares or other collateral offered for sale.  In case of any such sale or auction, after
deducting the costs, attorneys' fees and other expenses of sale and delivery,
the remaining proceeds of such sale shall be applied to the due and unpaid
principal of, and due and unpaid accrued interest on, the Note; provided
that promptly after payment in full of the indebtedness evidenced by the Note,
the balance of the proceeds of sale or auction then remaining shall be paid to
Pledgor and Pledgor shall be entitled to the prompt return of any of the
Pledged Shares or other collateral remaining in the hands of the Company.  Pledgor shall be liable for any deficiency
if the remaining proceeds are insufficient to pay the indebtedness under the
Note in full only to the extent, and in the circumstances, set forth in the
Note.

             (b)        In addition to and not in lieu of the
remedies set forth in Section 7(a), so long as Common Shares of the Company of
the same class as the Pledged Shares are publicly traded, the Pledgor agrees
that the Company shall not be obligated to sell the Pledged Shares pursuant to
Section 7(a), but may instead, at its option, purchase all or any part of the
Pledged Shares at the Fair Market Value at the date of purchase, and may apply
the proceeds thereof to the Loan Balance.

             8.          Payment of Indebtedness; Release of
Pledged Shares on Sale; Term.  Upon
payment in full of the indebtedness evidenced by this Note, the Company shall
promptly surrender the Pledged Shares and any other collateral pledged pursuant
to this Agreement to Pledgor, together with all forms of assignment, and shall
promptly execute and deliver such other and further documents as may be
reasonably necessary to evidence its full and complete release of any security
interest in such Pledged Shares and pledged collateral.  Prior to a Default, upon the receipt, by the
Company of an irrevocable letter of direction from the Pledgor to a broker,
with an acknowledgment from the broker, in form and substance satisfactory to
the Company, to sell certain Pledged Shares and remit the proceeds, net of the
Associated Tax Liability (as defined in the Note) directly to the Company, the
Company shall promptly surrender such Pledged Shares to such broker.  The "Term of this Agreement"
shall begin as of the date first set forth above and shall expire when all
indebtedness evidenced by the Note shall have been paid in full.

             9.          No Other Liens; No Sales or
Transfers.  Pledgor hereby
represents and warrants that he has good and valid title to all of the Pledged
Shares and will have good and valid title to any Additional Pledged Shares,
free and clear of all liens, security interests and other encumbrances, and
Pledgor hereby covenants that, until such time as all of the outstanding
principal of and interest on the Note has been repaid, Pledgor shall not (i)
create, incur, assume or suffer to exist any pledge, security interest,
encumbrance, lien or charge of any kind against the Pledged Shares or against
Pledgor's rights as a holder thereof, other than pursuant to this Agreement
and/or (ii) sell or otherwise transfer any Pledged Shares or any interest
therein, except as expressly permitted herein.

             10.        Further Assurances.  Pledgor agrees that, at any time and from
time to time upon the written request of the Company, Pledgor shall, at the
Company's sole expense, execute and deliver such further documents (including
UCC financing statements), and do such further acts and things, as the Company
may reasonably request in order to effect the purposes of this Agreement.

             11.        Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

             12.        No Waiver; Cumulative Remedies.  Neither Party shall by any act, delay,
omission or otherwise be deemed to have waived any of such Party's rights or
remedies hereunder, and no waiver shall be valid unless in writing, signed by
the waiving Party, and then only to the extent therein set forth.  A waiver by either Party of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy that such Party would otherwise have on any future
occasion.  No failure to exercise, nor
any delay in exercising, on the part of either Party, any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.  The rights and remedies herein provided are cumulative and may be
exercised singly or concurrently, and are not exclusive of any rights or
remedies provided by law.

             13.        Care of Collateral.  The Company has no obligations to (i)
initiate any actions with respect to or otherwise inform Pledgor of any offer
or right relating to the collateral, or (ii) protect the collateral against
declines in market value or otherwise.

             14.        Miscellaneous. 
None of the terms or provisions of this Agreement may be  altered, modified or amended except by an
instrument in writing, duly executed by the Parties.  This Agreement and all rights, remedies and obligations of the
Parties shall inure to the benefit of and be binding upon the Parties and their
respective successors and assigns.  This
Agreement may be transferred or assigned by the Company, in whole or in part.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Illinois
without regard to principles of conflicts of law.

             15.        Notice.  All notices and other communications required or permitted
hereunder shall be in writing and shall be deemed to have been duly given when
delivered in person or when dispatched by electronic facsimile (if confirmed in
writing by mail simultaneously dispatched) or one business day after having
been dispatched by a nationally recognized overnight courier service to, in the
case of the Company, the Company's principal place of business, and in the case
of the Pledgor, the Pledgor's contact information set forth in the Company's
records.

             IN
WITNESS WHEREOF,  this Agreement has
been executed as of the date first above written.

	 	APROPOS
  TECHNOLOGY, INC.
	 	 	 
	/s/
  Kevin G. Kerns	 	/s/Frank
  Leonard
	

	

	Pledgor	By:	Frank Leonard
	 	 	

	 	Its:	Chief Financial
  Officer
	 	 	

					

 

EXHIBIT
A

PLEDGED
SHARES

	Certificate
  No.	Number of Shares	 
	

	

	 
	 	311,111	 

 

EXHIBIT
B

ASSIGNMENT
SEPARATE FROM CERTIFICATE

ASSIGNMENT
OF STOCK

             FOR VALUE
RECEIVED, Kevin G. Kerns does hereby assign and transfer
to____________________ , Three Hundred Eleven Thousand One Hundred Eleven
(311,111) of Common Shares of APROPOS TECHNOLOGY, INC., an Illinois
corporation, standing in the name of ________________ on the books of the
corporation represented by Certificate No. ____, and does hereby irrevocably
constitute and appoint any officer to transfer said stock on the books of the
corporation with full power of substitution in the premises.

             Dated:
______________, _______

 

	 	 	/s/ Kevin G. Kerns
	 	

 

EXHIBIT
C

POWER
OF ATTORNEY MADE April 18, 2001.

1.          I, Kevin G.
Kerns______________________________________________________________________________________

                                                                   (insert
name and address of principal)

hereby appoint:   Apropos Technology, Inc. and each of its
officers, including but not limited to Kevin G. Kerns and Francis J. Leonard,
One Tower Lane, Oakbrook Terrace, Illinois 
60181

                                                                   (insert
name and address of agent)

as my attorney-in-fact (my "agent") to act for me and in my name (in
any way I could act in person) with respect to 311,111 Common Shares owned by
me and any additional property distributed to me as dividends, stock-splits or
otherwise in respect to those shares (collectively, the "Property"),
but only and solely with respect to effecting a transfer of the Property in
accordance with Sections 7(a) and/or 7(b) of the Executive Stock Pledge Agreement
dated April 18, 2001.

             My
agent shall have the right by written instrument to delegate any or all of the
foregoing powers (subject to its limitations) 
to any person or persons whom my agent may select, but such delegation
may be amended or revoked by any agent (including any successor) named by me
who is acting under this power of attorney at the time of reference.

             This power of attorney shall become
effective immediately.

             This power of attorney is
irrevocable and shall to the extent permissible by law survive my death and be
binding on my legal representatives.

             I
am fully informed as to all the contents of this form and understand the full
import of this grant of powers to my agent.

	 	Signed  	/s/ Kevin G. Kerns
	 	 	

	 	Type Principal Name
	 	 	 
	State of	_______________________	)
	 	 	)SS.
	County of	_______________________	)
						

             The undersigned, a notary public in
and for the above county and state, certifies that _____________, known to me
to be the same person whose name is subscribed as principal to the foregoing power
of attorney, appeared before me and the additional witnesses in person and
acknowledged signing and delivering the instrument as the free and voluntary
act of the principal, for the uses and purposes therein set forth 

	Dated:	 
	 	

	 
	 	 	

	 	Notary
  Public
	(SEAL)	 
	 	My commission expires
	 	 	

EACH OF THE UNDERSIGNED WITNESSES
CERTIFIES THAT ___________________ KNOWN TO ME TO BE THE SAME PERSON WHOSE NAME
IS SUBSCRIBED AS PRINCIPAL TO THE FOREGOING POWER OF ATTORNEY, APPEARED BEFORE
ME AND THE NOTARY PUBLIC AND ACKNOWLEDGED SIGNING AND DELIVERING THE INSTRUMENT
AS THE FREE AND VOLUNTARY ACT OF THE PRINCIPAL, FOR THE USES AND PURPOSES
THEREIN SET FORTH.  EACH OF THE
UNDERSIGNED WITNESSES BELIEVES THE PRINCIPAL TO BE OF SOUND MIND AND MEMORY. 

	Dated:	 
	 	

	 
	 	Residing at:
	

	 	

	(witness)	 
	 	 
	 	Residing at:
	

	 	

	(witness)

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