Birational geometry of Beauville-Mukai systems I: the rank three and genus two case

We study wall-crossing for the Beauville-Mukai system of rank three on a general genus two K3 surface. We show that such a system is related to the Hilbert scheme of ten points on the surface by a sequence of flops, whose exceptional loci can be described as Brill-Noether loci. We also obtain Brill-Noether type results for sheaves in the Beauville-Mukai system.