GREENMAN TECHNOLOGIES, INC.

                              EMPLOYMENT AGREEMENT


         THIS IS AN AGREEMENT,  effective as of December 1, 1996, by and between
GreenMan Technologies,  Inc., a Delaware corporation (the "Company"), and Robert
D. Maust (the "Employee").

         WHEREAS,  the Company  desires to employ the  Employee and the Employee
desires to be employed by the Company;

         NOW,  THEREFORE,  in consideration of the mutual covenants contained in
this Agreement,  and for other good and valuable consideration,  the receipt and
sufficiency of which consideration are hereby acknowledged, the parties agree as
follows:

         1. Employment
            
                  The Company  hereby  employs the  Employee,  and the  Employee
hereby  accepts  employment  with the  Company,  upon the terms  and  conditions
hereinafter set forth.

         2. Duties

                  The Employee  shall serve as President of the  Company's  Tire
Recycling  Division.  In such  capacity,  the Employee  will report to the Chief
Executive  Officer of the Company and will  perform such duties on behalf of the
Company  consistent with such office as may be assigned to him from time to time
by the Chief Executive  Officer of the Company.  The Employee agrees to abide by
the rules,  regulations,  instructions,  personnel practices and policies of the
Company and any changes  therein  which may be adopted  from time to time by the
Board of Directors of the Company.

         3. Term

                  Unless sooner  terminated as provided  below,  the term of the
Employee's  employment  under this  Agreement  will be three years from the date
first above written (such period, as it may be extended,  is referred to in this
Agreement as the "Employment Period").  Unless notice of non-renewal is given by
either  party at least  thirty  (30) days prior to the end of such  period,  the
Employment Period will continue thereafter for successive 12-month periods. Upon
the Company's giving thirty (30) days notice as herein  described,  the Employee
may seek alternative  employment during such notice period;  provided,  however,
that the Employee shall be required to continue to perform such duties on behalf
of the Company as are specified in this Agreement.

         4. Extent of Services

                  During the term of his  employment,  the Employee  will devote
his full time and best  efforts  to the  performance  of his  duties  under this
Agreement.  Under no circumstances  will the Employee  knowingly take any action
contrary to the best interests of the Company.

         5. Compensation

                  In  consideration  of employment and the services  rendered by
the  Employee  under  this   Agreement,   the  Company  will  pay  the  Employee
compensation as follows:






                  5.1 Base Salary.  A base salary ("Base Salary") of One Hundred
and Twenty Five Thousand  ($125,000.00) per year for the term of this Agreement,
payable  in  accordance  with the  Company's  ordinary  payroll  practices.  Any
increases  in Base  Salary  shall  be in the  sole  discretion  of the  Board of
Directors.

                  5.2 Incentive  Compensation.  The Employee will be entitled to
participate,  on the same basis as the other executive  officers of the Company,
in any incentive  compensation  plan that may be established by the Company (the
"Plan").  The  terms of the  Plan,  together  with the  extent  and terms of the
Employee's participation in the Plan, will be established by the Company's Board
of Directors, in its sole discretion.

         6. Other Benefits

                  6.1 Additional  Compensation and Benefits.  The Employee shall
be entitled to receive the same  health,  disability  and other  benefits as are
offered  by the  Company  to all  full-time  employees  from  time to time.  The
Employee will be entitled to such additional  compensation,  bonuses or benefits
as the Company's Board of Directors, in its sole discretion, may decide.

                  6.2 Expenses.  The Company will, upon substantiation  thereof,
reimburse the Employee for all  reasonable  expenses of types  authorized by the
Board of  Directors  of the  Company  in the  ordinary  course of  business  and
incurred by the Employee in connection with the Company's business affairs.  The
Employee must regularly  submit,  for approval to the Chief Financial Officer of
the  Company,  a  statement  of these  expenses  and will comply with such other
accounting  and  reporting  requirements  as the  Company  may from time to time
establish.  Approved  and  substantiated  expenses  shall be  reimbursed  by the
Company within 30 days of submittal for payment.

                  6.2 Life  Insurance.  The Company  shall  provide the Employee
with life insurance  coverage  equal to three (3) times his annual  salary,  or,
shall  reimburse  the  Employee  for the  premium  cost of such  life  insurance
coverage should it be purchased by the Employee independently.

         7. Termination

                  7.1 By the Company.  The Company may terminate the  Employee's
employment with the Company (a) upon the expiration of the Employment  Period in
accordance with the terms of this Agreement,  (b) at any time without notice for
"cause",  as defined below, (c) at any time without cause upon thirty (30) days'
advance notice, subject to Section 7.4 below and subject to the requirement that
the company pay to the Employee the amount set forth in Section 7.4 herein,  (d)
upon the death of the Employee, or (e) in the event of the Employee's disability
preventing him from rendering services to the Company consistent with his duties
hereunder for a period of six (6) consecutive months.

                  7.2 By the Employee. The employee may terminate his employment
with the Company upon the expiration of the Employment Period in accordance with
the  terms of this  Agreement  or at any time upon  thirty  (30)  days'  advance
notice.

                  7.3 Cause. For the purposes of this Section 7, "cause" means:

                      (a)  engaging in any crime or offense  involving  money or
                           other property of the Company, or

                      (b)  conviction of a felony, or






                      (c)  continuing,  repeated  willful  failure or refusal to
                           perform specific written  directives of the Company's
                           Board of  Directors  consistent  with the  Employee's
                           duties  after notice that such failure will be deemed
                           to constitute  cause for termination and a reasonable
                           opportunity to cure such failure or refusal, or

                      (d)  excessive absenteeism, or

                      (e)  owning, engaging in, conducting, managing, operating,
                           participating  in, being employed by, being connected
                           in any manner whatsoever with, or rendering  services
                           or advice to  (whether  for  compensation  or without
                           compensation),  any other  person or business  entity
                           which is engaged in the same business as conducted by
                           the Company at the time,  provided that nothing shall
                           restrict  the  Employee's  right  to  invest  in  the
                           securities  (not  to  exceed  1% of  the  outstanding
                           securities   of  any  class)  of  any   publicly-held
                           corporation  in the  management of which the Employee
                           does not participate.

                  7.4 Amounts Payable Upon Termination.  Upon termination of the
Employee's  employment  with the Company in accordance with clause (a), (b), (d)
or (e) of Section 7.1, all  compensation  and benefits under this Agreement will
cease,  effective the date of  termination.  Upon  termination of the Employee's
employment  with the Company in  accordance  with clause (c) of Section 7.1, the
Employee  shall  be  paid  twelve  (12)  months'  Base  Salary.  Other  than  as
specifically  set forth in Section 7.1 and this Section  7.4, the Employee  will
not be entitled to receive any compensation or benefits after termination of his
employment with the Company.

         8.  Non-Disclosure; Non-Competition

                  8.1  Proprietary Information.

                           (a) The  Employee  agrees  that all  information  and
know-how, whether or not in writing, of a private, secret or confidential nature
concerning   the  Company's   business  or  financial   affairs   (collectively,
"Proprietary Information") is and will be the exclusive property of the Company.
By way of illustration,  but not limitation,  Proprietary  Information  includes
contemplated  or  planned  advertising  or public  relations  plans,  methods or
techniques;  inventions, products, projects, developments,  compositions, plans,
research data,  financial  data,  manufacturing  processes or techniques,  trade
secrets,  personnel data,  computer programs,  designs,  and client and supplier
lists, whether or not copyrightable,  trademarkable or licensable.  The Employee
will not disclose any  Proprietary  Information to others outside the Company or
use the Proprietary  Information for any  unauthorized  purposes without written
approval by an officer of the Company,  either  during or after his  employment,
unless and until  such  Proprietary  Information  has  become  public  knowledge
without the fault of the Employee.

                           (b) The  Employee  agrees  that all  files,  letters,
memoranda,   reports,  records,  data  sketches,  drawings,   notebooks,  notes,
specifications,   programs,   computer  program  listings,   or  other  written,
photographic,  or other tangible material  containing  Proprietary  Information,
whether  created by the  Employee  or others,  which  comes into his  custody or
possession, is the exclusive property of the Company, to be used by the Employee
only in the performance of his duties for the Company.

                           (c) The Employee  agrees that his  obligation  not to
disclose  or use  information,  know-how  and  records of the types set forth in
Paragraphs  (a)  and (b)  above  also  extends  to such  types  of  information,
know-how, records and tangible property of customers of the Company or suppliers
to the Company or other third  parties who may have  disclosed or entrusted  the
same to the Company or to the Employee in the course of the Company's business.

                  8.2  Developments





                           (a) The Employee will make full and prompt disclosure
to the Company of all inventions,  improvements,  ideas,  concepts,  approaches,
discoveries,  methods, developments,  software, and works of authorship, whether
or not  copyrightable,  trademarkable  or licensable,  which are created,  made,
conceived  or reduced to practice  by the  Employee  or under his  direction  or
jointly with others in connection with his employment by the Company, whether or
not during normal  working hours or on the premises of the Company (all of which
are collectively referred to in this Agreement as "Developments").

                           (b) The Employee  agrees to cooperate  fully with the
Company,  both during and after his employment with the Company, with respect to
the procurement,  maintenance and enforcement of copyrights and trademarks (both
in the  United  States and  foreign  countries)  relating  to  Development.  The
Employee  will  sign  all  papers,  including,  without  limitation,   copyright
applications, trademark applications, patent applications,  declarations, oaths,
formal assignments, assignments of priority rights and powers of attorney, which
the Company may deem  necessary  or desirable in order to protect its rights and
interest in any Developments.

                  8.3  Non-Competition.

                           (a) During the term of the Employee's employment with
the  Company  and for a  period  of six (6)  months  after  that  employment  is
terminated,  for any reason,  by the Company or the Employee,  the Employee will
not, without the Company's prior written approval, directly or indirectly:

                                    (i) recruit, solicit or knowingly induce, or
attempt to induce, any employee or consultant of the company to terminate his or
her  employment  or  consulting   relationship  with,  or  otherwise  cease  his
relationship with, the Company; or

                                    (ii)  solicit,   divert  or  take  away,  or
attempt to divert or to take  away,  the  business  or  patronage  of any of the
clients, customers or accounts, or prospective clients, customers or accounts of
the Company. For purposes of this Agreement,  a prospective client,  customer or
account is any  individual or entity whose business is solicited by the Company,
proposed to be solicited by the Company,  or who  approaches  the Company,  with
respect to possibly becoming a client, customer or account during the Employment
Period; or

                                    (iii) engage  (whether for  compensation  or
without  compensation)  as  an  individual  proprietor,   partner,  stockholder,
officer,  employee,  director, joint venture,  investor, lender, or in any other
capacity  whatsoever  (otherwise than as the holder of not more than one percent
(1%) of the total outstanding stock of a publicly-held company), in any business
activity which competes with any business then being conducted by the Company or
any  business  proposed  to be  conducted  by the  Company  at the  time  of the
termination of the Employee's employment with the Company.

                           (b) If any  restriction  set forth in this Subsection
8.3 is found by any court of competent  jurisdiction to be unenforceable because
it extends for too long a period of time or over too great a range of activities
or in too broad a geographic  area, it shall be  interpreted  to the extent only
over the maximum  period of time,  range of activities  or  geographic  areas to
which it may be enforceable.

                           (c) The restrictions contained in this Subsection 8.3
are necessary for the protection of the business and goodwill of the Company and
are considered by the Employee to be reasonable for this purposes.  The Employee
agrees that any breach of this Subsection 8.3 will cause the Company substantial
and  irrevocable  damage and,  therefore,  in the event of any such  breach,  in
addition to such other  remedies  which may be available,  the Company will have
the right to seek specific performance and injunctive relief.

                  8.4 Survival of  Obligations.  The obligations of the Employee
under this Section 8 will survive the termination of this Agreement.





         9. Notices.

                  All notices under this  Agreement  must be in writing and must
be delivered by hand or mailed by certified or registered mail, postage prepaid,
return receipt requested, to the parties as follows:






If to the Company:                  GreenMan Technologies, Inc.
                                    7 Kimball Lane, Building A.
                                    Lynnfield, Massachusetts  01940
                                    Attention:  Maurice E. Needham

with a copy to:                     John A. Piccione, Esq.
                                    Sullivan & Worcester LLP
                                    One Post Office Square
                                    Boston, Massachusetts  02109

If to the Employee:                 To the address set forth below the signature
                                    of the Employee;


or to such other address as is specified in a notice complying with this Section
9. Any such notice is deemed  given on the date  delivered by hand or three days
after the date of mailing.

         10. Other Agreements.

                  The  Employee  hereby  represents  that he is not bound by the
terms of any agreement with any previous employer or other party to refrain from
competing,  directly or indirectly,  with the business of such previous employer
or any other party. The Employee further  represents that his performance of all
the terms of this  Agreement and as an employee of the Company does not and will
not  breach  any  agreement  to  keep  in  confidence  proprietary  information,
knowledge  or data  acquired  by him in  confidence  or in  trust  prior  to his
employment with the Company.

         11. Miscellaneous.

                  11.1  Modification.  This  Agreement  constitutes  the  entire
Agreement  between  the  parties  with  regard  to the  subject  matter  hereof,
superseding all prior  understandings  and agreements,  whether written or oral.
This  Agreement may not be amended or revised  except by a writing signed by the
parties.

                  11.2  Successors  and Assigns.  This Agreement is binding upon
the inures to the benefit of both parties and their  respective  successors  and
assigns,  including any corporation  with which or into which the Company may be
merged or which may succeed to its assets or business,  although the obligations
of the Employee are personal and may be performed only by him.

                  11.3  Captions.  Captions have been inserted in this Agreement
solely for convenience of reference,  and in no way define,  limit or affect the
scope or substance of any provision of this Agreement.

                  11.4  Severability.  The  provisions  of  this  Agreement  are
severable,  and  invalidity of any provision does not affect the validity of any
other provision. In the even that any court of competent jurisdiction determines
that any provision of this Agreement or the application thereof is unenforceable
because of its  duration or scope,  the  parties  agree that the court in making
such  determination will have the power to reduce the duration and scope of such
provision to the extent necessary to make it enforceable, and that the Agreement
in its reduced  form is valid and  enforceable  to the full extent  permitted by
law.

                  11.5 Governing  Law. This  Agreement is to be construed  under
and governed by the laws of the Commonwealth of Massachusetts.






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

                                        GREENMAN TECHNOLOGIES, INC.


                                        By:  /s/  Maurice E. Needham
                                           ----------------------------------
                                               Maurice E. Needham, Chairman


                                        EMPLOYEE

                         
                                             /s/  Robert D. Maust
                                        --------------------------------------
                                               Robert D. Maust

                                        Address:   800 Oak Drive
                                                   Preston, Minnesota  55965