Exhibit 10(z)

                              EMPLOYMENT AGREEMENT
                 CLEAN DIESEL TECHNOLOGIES, INC. - ANN B. RUPLE

     AGREEMENT  made  as of the date set forth below by and between Ann B. Ruple
of  15  Algonquin  Road,  Fairfield,  CT  06825  ("Employee")  and  Clean Diesel
Technologies,  Inc.,  a  Delaware corporation (the "Company"), having a place of
business  at  Suite  702,  300  Atlantic  Street,  Stamford,  CT  06901.

     WHEREAS,  the  Company  desires  certain  services  for itself and Employee
desires to contract with the Company to perform such services;

     NOW  THEREFORE,  in  consideration  of  the  mutual  covenants  hereinafter
recited,  the  sufficiency  of  which is hereby acknowledged, the parties hereto
agree  as  follows:

     1.     Term:  This Agreement shall commence on December 13, 2006, and shall
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continue  thereafter  until  terminated  by  either  party  as  provided  below.

     2.     Scope  of Work:  Title:  On the Commencement Date, Employee shall be
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the  Chief  Financial  Officer and Vice President Administration of the Company.
In such employment, Employee shall on a full-time basis direct all of Employee's
efforts  toward  the performance of such duties as shall be assigned to Employee
by  the  President and Chief Executive Officer.  "Full time" shall mean no other
substantial  outside  business  activities.

     3.     Salary:  (a)  Benefits.  The  Company agrees to cause Employee to be
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paid  for  Employee's  services  hereunder at the rate of One Hundred Fifty Five
Thousand Dollars (US $155,000) per year.  Employee shall be paid such amounts by
the  Company  according to its normal and customary procedures from time to time
in  effect  but  not  less  often  than  monthly.  Employee shall be entitled to
participate  from  time  to  time  in  such  benefit programs as the Company may
customarily  extend  to  its officers as a class.  Employee shall be entitled to
three weeks vacation during the first year of employment and four weeks per year
thereafter.  This  Agreement  may  not  be construed to prevent the Company from
rescinding  any benefit programs for Employee so long as such rescission applies
to  officers  as  a  class.  After  one  year  of  employment the salary will be
increased  by  10  per cent to One Hundred Seventy Thousand Five Hundred Dollars
(US  $170,500). Also at that time the Company shall include the Employee in such
incentive  or  bonus  plan  as shall be offered generally to the officers of the
Company.  The  terms of the incentive or bonus will be discussed and agreed upon
at  the  appropriate  time.

          (b)  Stock.  Subject to  the approval of the Board of Directors of the
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Company,  the  Company  will arrange for the Executive to receive a stock option
award  under  its  1994  Incentive  Plan (the "Plan") to purchase Fifty Thousand
(50,000)  shares  of  the Company's common stock, $.05 par value, at an exercise
price  which  shall  be the fair market value of the stock on the Award Date, as
determined  pursuant  to


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the terms of the Plan. The Award Date shall be the earlier of the next regularly
scheduled  meeting  of  the  Board  of Directors or such date promptly after the
commencement  of  the Executive's employment as the Board shall act. Such option
shall  have  a  term  of  ten  (10) years and shall vest in increments of 10,000
shares  on  the first through the fourth anniversaries of the Commencement Date.
Such  option,  which  shall  otherwise  include substantially the same terms and
conditions as options awarded to other U.S. based officers of the Company shall,
nevertheless, lapse and be forfeited in its entirety, if the Executive shall not
be  employed  by  the Company on the first anniversary of the Commencement Date.

     4.     Expenses:  Employee  shall  be  reimbursed  by  the  Company for all
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ordinary and necessary out-of-pocket expenses incurred by Employee in performing
Employee's  services  hereunder.  Such expenses to be reported from time-to-time
by Employee on the Company's customary forms of expense report and submitted for
approval  to  the  Company pursuant to its policies from time to time in effect.

     5.     Termination  of Employment:  (a) Just Cause.  The Company may at any
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time  terminate  this  Agreement  for  Just  Cause.  "Just Cause" shall mean, as
determined  by  the  Board  of  Directors  in its sole discretion, conviction of
Employee  under,  or a plea of guilty by the Employee to, any charge which would
constitute  a  felony under the laws of Connecticut, regardless of jurisdiction;
any  instance  of  fraud, embezzlement, self-dealing, insider trading or similar
malfeasance  with  respect to the Company regardless of the amount involved; any
instance  of  material  disloyalty,  insubordination,  or  disparagement  of the
Company  to an outside party; or any instance of substance abuse of a controlled
substance  or,  otherwise,  a pattern of substance abuse which limits Employee's
performance  of  Employee's  duties.

          (b)  Disability.  The Company may terminate this Agreement at any time
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upon  the  physical  disability  of  Employee,  if  the  Directors in their sole
discretion shall determine that, as a result of physical disability Employee has
for  a  period of six months been substantially absent from Employee's customary
place  of  work  and  unable  to  perform  Employee's  customary  duties.

          (c)  At  Will.  Either  of  Employee  or  Company  may  terminate this
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Agreement  at  any time on written notice one to the other. Where Employee shall
terminate  this  Agreement by resigning employment, Employee shall provide three
(3)  month's  written  notice  thereof to Company. Where Company shall terminate
this  Agreement,  Company  shall provide salary and benefit continuation (in the
amount  and  of  the  nature  then  enjoyed  by  Employee)  to  the  Employee
month-to-month  for a period of six months, or until Employee shall earlier find
other  substantially comparable employment, under which circumstances the salary
would  be  continued  but CDT would be entitled to a dollar for dollar reduction
compared  to  the  salary  of the new employment. Termination at will under this
sub-section  (c)  shall  also  include  constructive  discharge.  "Constructive
Discharge"  means  that  the  responsibilities  of Employee have been materially
diminished  or Employee's position is to be relocated more than sixty miles from
the  Employee's  residence  at  the  time  of  Change  in  Control.  "Change  in


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Control"  has  the  meaning  for such phrase as is set out in the Company's 1994
Incentive  Plan.

     6.     Discoveries  and  Inventions:   (a)  All patentable and unpatentable
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inventions, discoveries and ideas which are made or conceived by Employee during
the  term  of  Employee's  employment,  and which are based upon or arise out of
Employee's services hereunder ("Developments") are or shall become the Company's
property.  Employee  agrees  to  disclose  promptly  to  the  Company  each such
Development  and,  upon  the Company's request and at its expense, Employee will
assist the Company, or its designee, in making application for Letters Patent in
any  country  in the world.  Employee further agrees, at no expense to Employee,
to  execute  all papers and do all things which may be necessary or advisable to
prosecute  such applications, and to transfer to and vest in the Company, or its
designee, all the right, title and interest in and to such Developments, and all
applications  for  patents and Letters Patent issued thereon.  If for any reason
Employee  is  unable  to  effectuate  a full assignment of any such Development,
Employee  agrees  to  transfer  to  the  Company,  or  its  designee, Employee's
transferable  rights,  whether they be exclusive or non-exclusive, or as a joint
inventor  or  partial  owner  of  the Development.  No action or inaction by the
Company shall in any event be construed as a waiver or abandonment of its rights
to  any  such  Development  except  an  instrument  in  writing  assigned  by an
authorized official of the Company by which it specifically states it intends to
be  bound  in  such  respect.

     7.     Proprietary  Information:  Employee  will  not  at  any time, either
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during  the term of this Agreement or thereafter, disclose to others, or use for
Employee's  own benefit or the benefit of others, any of the Developments or any
confidential,  proprietary or secret information owned, possessed or used by the
Company  or  any  of  its subsidiaries or affiliates (collectively, "Proprietary
Information"),  which,  by  way  of  illustration,  but not limitation, includes
devices, structures, machines, data, know-how, business opportunities, marketing
plans,  forecasts,  unpublished  financial  statements,  budgets,  licenses  and
information  concerning  prices,  costs,  employees,  customers  and  suppliers.
Employee's undertakings and obligations under this Paragraph 7 will not apply to
any  Proprietary  Information  which:  (a)  is or becomes generally known to the
public  through  no  action  on  the  part  of  the Employee or (b) is generally
disclosed  to  third  parties  by  the  Company  or  any  of its subsidiaries or
affiliates  without restriction on such third parties.  Upon termination of this
Agreement  or  at any other time upon request, Employee will promptly deliver to
the  Company  all  keys, notes, memoranda, notebooks, computers, computer disks,
drawings,  designs,  three  dimensional figures, photographs, layouts, diagrams,
records,  reports, files and other documents (and all copies or reproductions of
such  materials)  in  Employee's possession or under Employee's control, whether
prepared  by  him  or  others,  which contain Proprietary Information.  Employee
acknowledges  that  this  material  is  the  sole  property  of the Company or a
subsidiary  or  an  affiliate  of  the  Company.

     8.     Non-Competition:  Following  the  termination  of Employment for any
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reason,  Employee  agrees  that  Employee  will  not  recruit, entice, induce or
encourage  any  of  the  Company's  other  employees  or  consultants


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to  engage  in  any  activity which, were it done by Employee, would violate any
provision  of  Employee's  Agreement. For a two-year period after termination of
employment  and  before  performing  any  services  for  others,  as employee or
consultant  or  otherwise, in the actual lines of business in which Employee has
performed  services  for  the  Company, its subsidiaries or affiliates, Employee
will  notify  the  Company of the general nature of the services to be performed
and  the party for whom they will be performed and Employee will, also, prior to
undertaking  such  service or employment inform the other party of the existence
of  the covenants in Sections 6, 7 and 8 of this Agreement. Employee admits that
breach  of  Employee's  covenants  hereunder regarding the Company's Proprietary
information is likely to cause serious economic injury to the Company.

     9.     Assignment:  This  Agreement  may  not  be  assigned by either party
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without  the  prior written consent of the other party; provided, however,  that
the  acquisition  by  any  person  of  all or substantially all of the assets or
capital  stock  of  the  Company  shall  not be considered an assignment of this
Agreement  by  the  Company.

     10.     Continuing  Obligations:  The  Employee's  covenants  set  forth in
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Sections 6, 7, and 8 above shall continue according to their terms following the
termination  of  this  Agreement.

     11.     Governing  Law;  Waiver  of Trial by Jury; Equitable Remedies. This
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Agreement,  the interpretation hereof and the resolution of any and all disputes
between  the Company and Employee shall be governed by and interpreted under the
internal substantive and procedural laws of the State of Connecticut without any
reference  to  conflicts  of  laws  rules. In the resolution of any disputes the
parties  agree  to submit to the exclusive jurisdiction of the Superior Court of
Connecticut,  Stamford/Norwalk  District  and  waive  any  claims  of  forum non
conveniens  with  respect to that jurisdiction and also waive any claim to trial
by  jury  in  any  proceeding.  The parties further agree that any violations of
Employee's  covenants  set  forth  in  Sections  6,  7  and  8  above  may cause
irreparable  harm  to  the  Company  which  harm  is  not  capable  of  accurate
determination  and  for  which  the  remedy  of  damages  may  be  insufficient.
Accordingly,  in  any  proceeding  to  enforce  the  Company's rights under such
Sections  6,7  and  8,  the  Company may seek, in addition to damages, equitable
remedies  such  as injunctions, temporary injunctions and restraining orders and
the  parties  hereby  waive any requirement of bond in any such proceeding or in
any  appeal  therefrom.

     12.     Legal  Advice;  Rescission.  Employee  agrees  that  this Agreement
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involves Employee's waiver of certain legal rights. Employee may, if Employee so
chooses,  consult  with  an  attorney  about  the terms of this Agreement before
signing  it.  Employee  further  acknowledges  that  (a)  the  Company has given
Employee a twenty-one (21) day period in which to consider the terms and binding
effect  of  this Agreement, which twenty one (21) day period Employee way waive,
and  (b)  that,  if Employee does sign this Agreement, Employee shall have seven
(7)  days  thereafter  to  change Employee's mind and revoke it. Employee agrees
that  if  Employee  decides  to  revoke this Agreement, Employee will inform the
Company  within  that  seven  (7)  day  period  and  obtain  a  written


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acknowledgment  of  the revocation which the Company agrees to provide. Employee
understands  that revocation of this Agreement will affect Employee's employment
status.  Employee  states  that Employee has carefully read this Agreement; that
Employee  understands its final and binding effect and agrees to be bound by its
terms; and that Employee has signed this Agreement voluntarily.

     13.     Notices.  All  notices  hereunder  shall be in writing and shall be
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deemed  effective  upon  receipt, if hand delivered, or if sent by facsimile and
acknowledged  electronically,  or by courier and receipted on delivery.  Notices
by  mail  shall  be  deemed received on receipt, if sent first class or priority
mail  postage  prepaid  return  receipt  requested and the sender shall have the
signed  receipt. Otherwise notices shall be deemed effective five (5) days after
transmission.  In  each  case  notices shall be transmitted to the address first
given  above or such other address as may be given by notice as provided herein.

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of  the  date  first  above  written.


EMPLOYEE                                  CLEAN DIESEL TECHNOLOGIES, INC.


 /s/ Ann B. Ruple                         /s/  B. Steiner
-----------------------------------       ----------------------------------
Name:                                     Name:
                                          (Vice) President

Date: 11/29/06                            Date: 11/29/06
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