Document:

EXHIBIT 10.5
                                  ------------

                             JOINT VENTURE AGREEMENT

THIS JOINT VENTURE  AGREEMENT (the  "Agreement")  is made and entered into as of
this  10th  day  of  January,  2006  (the  "Effective  Date"),  by  and  between
INTERNATIONAL STAR, INC., a corporation organized and existing under the laws of
the State of Nevada ("Star"),  and RESOLVE CAPITAL FUNDING CORPORATION,  INC., a
corporation  organized  and existing  under the laws of the Province of Ontario,
Canada  ("Resolve").  Star and  Resolve  shall  sometimes  be referred to herein
individually as a "Party" or collectively as the "Parties."

                                    RECITALS
                                    --------

      WHEREAS, Star is engaged in the acquisition and commercial exploitation of
mineral rights in the United States, and within such activities has acquired and
is seeking to exploit  that  certain  real  property  situated  in the County of
Mohave,  State of Arizona known as the Detrital Wash Property (the  "Property"),
as more particularly  described in the legal description set forth on Schedule A
attached hereto; and

      WHEREAS,  Resolve is in the business of acquiring  rights and interests in
various  properties to facilitate the exploitation of mineral rights,  providing
value through its industry  expertise and  relationships,  and providing capital
resources in connection therewith; and

      WHEREAS,  in order to develop and commercially  exploit the rights that it
has in the  Property,  Star is in need of  capital  resources,  and the  type of
industry background,  expertise and relationships which Resolve can provide, and
Resolve  desires to provide the same to Star, and to thereby acquire an interest
in the Property,  in each case subject to and in  accordance  with the terms and
conditions contained herein; and

      WHEREAS,  in order to accomplish the respective  desires of the Parties as
expressed  above,  the  Parties  desire  to form a  joint  venture  (the  "Joint
Venture"),  in the form of a new limited  liability  company organized under the
laws of Nevada to engage in the commercial  exploitation of the Property jointly
(the  "Business"),  and  desire to enter  into this  Agreement  to set forth the
relative  rights  and  obligations  of the  Parties  with  respect to such Joint
Venture. The joint venture shall be called Star-Resolve  Detrital Wash, LLC (the
"Company").

      NOW  THEREFORE,   in  consideration   of  mutual   promises,   agreements,
representations,  warranties, covenants and provisions herein contained, and for
other good and valuable consideration,  the receipt and sufficiency of which are
hereby acknowledged, the Parties, intending to be legally bound, hereby agree as
follows:

                                      -1-
<PAGE>

                                    ARTICLE I

                           FORMATION OF JOINT VENTURE

1.1   Formation of the Company.  Within thirty (30) days following the Effective
      Date, the Parties shall cause their  respective  counsel  jointly to form,
      through private exemption, a limited liability company organized under the
      laws of the State of Nevada (the "Company"), the purpose of which shall be
      to conduct the Business as  contemplated  herein.  The name of the Company
      shall be Star-Resolve Detrital Wash, LLC. Also within such thirty (30)-day
      period,  the Parties shall execute and deliver to each other (a) a limited
      liability   company  operating   agreement  (the  "Operating   Agreement")
      governing  the  operation  of  the  Company,  designating  Resolve  as the
      exclusive  Managing  Member of the Company and Tax Matters Member thereof,
      and setting forth the rights and  obligations  of the Parties with respect
      to  the  Company  (including,  without  limitation,  establishing  capital
      accounting  consistent  with the applicable  provisions of this Agreement,
      mutual restrictions on the transfers of such Parties' membership interests
      except  in  accordance  with the  terms  thereof,  mutual  rights of first
      refusal to purchase  the  membership  interests  of the other Party in the
      event of a  desired  sale,  and such  other  provisions  as are  usual and
      customary in such agreements); and (b) a proposed agreement (the "Services
      Agreement"),  pursuant to which certain geological  engineering and mining
      consultancy  services shall be performed on behalf of the Joint Venture on
      the Property,  by A.C.A. Howe  International  Limited,  Toronto,  Ontario,
      Canada, which the Parties hereby agree to designate as the exploration and
      development  organization  for the Company  with  respect to the  Business
      ("Howe").

1.2   Capitalization.  The Parties shall be the only members of the Company, and
      their respective  percentage of ownership interest in the Company shall be
      as follows:

      -------------------------------- -------------------------------
                   Party                    Percentage Ownership
      -------------------------------- -------------------------------
                   Star                             50%
      -------------------------------- -------------------------------
                  Resolve                           50%
      -------------------------------- -------------------------------

      The Parties shall each receive membership  interests  ("Interests") in the
      Company  equal to their  percentage  of ownership  as set forth above,  in
      consideration  for their  respective  capital  contributions  described in
      Sections 1.3 and 1.4 below. Once issued to each Party as set forth herein,
      their   outstanding   membership   interests   shall  be  validly  issued,
      fully-paid, and non-assessable.

1.3   Contribution  to Capital by Star.  Upon the  Company's  formation,  and in
      consideration for the Interests issued to Star by the Company,  Star shall
      contribute  to the Company all of its right,  title and interest in and to
      the Property,  including  without  limitation all mineral leases and other
      mineral rights,  and all contracts,  rights and privileges it may have in,
      or otherwise  pertaining to, the Property,  it being  understood  that all
      relevant  laws,  regulations  or other  obligations  of whatsoever  nature
      governing  the  Property are and will be at closing  complied  with in all
      material respects.

1.4   Contribution  to Capital by Resolve.  Within  60-90 days of the  Company's
      formation, and in consideration for the Interests issued to Resolve by the
      Company,  Resolve  shall  provide  (a) cash  proceeds in the amount of Six
      Hundred Thousand Canadian Dollars ($600,000);  (b) the benefit of its best
      efforts to  professionally  and  exclusively  manage the  Company  for the
      mutual  economic  benefit of both Parties,  including  without  limitation
      providing  the Company  with access to its  industry-related  contacts (to
      include Howe), and its expertise in the commercial exploitation of mineral
      rights.

                                      -2-
<PAGE>

                                   ARTICLE II

                            OPERATION OF THE BUSINESS

2.1   Operation of the Business.  The Company shall own, operate and exploit the
      Property, and shall otherwise conduct the Business for the benefit of, and
      to maximize the value of the Interests  owned by, each Party.  The Company
      shall retain such employees,  consultants and advisors as may be necessary
      or desirable to conduct the Business in an optimal  manner for the benefit
      of the Parties, commencing with Howe pursuant to the Services Agreement.

2.2   Management of the Business. Resolve shall be the exclusive Managing Member
      of the  Company,  and shall  conduct  the  Business in its  exclusive  and
      unfettered  discretion,  from its inception until such time as a change of
      Managing Member shall be made in accordance  with the relevant  provisions
      of the Operating  Agreement.  The Parties  hereby agree that the Operating
      shall  provide  that no Member  shall be  entitled to call for a change of
      Managing  Member   throughout  the  entire  period  that  the  Company  is
      implementing its use of proceeds of the CDN $600,000 being  contributed by
      Resolve  hereunder,  except with the prior written consent of both Parties
      (which consent may be given or withheld in such Parties' sole discretion).
      During the period of its management as set forth herein, Resolve shall use
      its best efforts to operate and manage the Business in a professional  and
      responsible  manner for the mutual benefit of both Parties.  The Operating
      Agreement  shall  detail the  complete  responsibilities  of the  Managing
      Member to the Company and to the other  members of the Company,  and shall
      permit the Managing  Member to delegate such of its management  duties and
      other  obligations  to such  professionals  as it may in good  faith  deem
      reasonably necessary or desirable to maximize the value of the Company for
      the members.  The Operating  Agreement  shall further provide that, in the
      event  Resolve  shall  ever  become  unwilling  or  unable to serve in the
      capacity of Managing Member or Tax Matters  Partner,  then it shall notify
      Star to such effect,  and thereafter  Star shall serve in such  capacities
      for and on behalf of the Company.

2.3   Rights of First Refusal; Restrictions on Sale.

      (a)   The Operating  Agreement shall contain specific  provisions granting
            to the Parties  rights of first  refusal in the event that the other
            Party  wishes to sell or  otherwise  dispose of its  interest in the
            Company it being understood that the remaining shareholder's consent
            is  required  for the sale of its shares to a third  party under the
            Operating  Agreement,  subject to the relevant  provisions  thereof.
            These  provisions  are  necessary  to protect the  interests  of the
            Parties in the  Company  and the  Property,  as well as to provide a
            mechanism  for breaking any deadlock  which may occur as a result of
            the Parties' equal ownership interests in the Company.

                                      -3-
<PAGE>

      (b)   As further consideration to Resolve for entering into this Agreement
            with Star,  Star  further  agrees  that it shall  grant to Resolve a
            right of first refusal with respect to any transaction  with a third
            party  whereby  Star agrees to (i) explore or exploit,  jointly with
            such third  party;  or (b) sell or  otherwise  dispose of, any other
            parcels owned by it and located within the Detrital Wash region. The
            specific  mechanics of this right of first refusal shall be included
            within the Operating Agreement.

                                   ARTICLE III

                                      TERM

3.1   Term.  This  Agreement  shall  commence as of the Effective Date and shall
      continue  in full force and effect  until the  earlier to occur of (a) the
      date that the formation of the Company has been  completed,  the Operating
      Agreement  and  the  Services  Agreement  have  been   fully-executed  and
      delivered, and all other obligations herein have been fully performed; and
      (b) the date that each Party agrees to  terminate  this  Agreement.  It is
      understood that the closing date hereof shall be the Effective Date.

                                   ARTICLE IV

                            CONFIDENTIAL INFORMATION

4.1   Confidentiality.   By  their  execution  of  this  Agreement,  each  Party
      acknowledges  to and  agrees  with the other that in the  exercise  of the
      several  rights  granted to it pursuant to this  Agreement  they may be or
      become familiar with or aware of certain Confidential Information (as such
      term is hereinafter  defined) disclosed by the other Party, or one or more
      of its officers, directors, employees,  shareholders,  partners, agents or
      representatives  (each of such  relationships  being defined  herein as an
      "Affiliate").  Accordingly, each such Party hereby agrees that any and all
      Confidential  Information  disclosed  or furnished to it, or to any of its
      Affiliates,  by the other Party,  or any of its  Affiliates,  is and shall
      remain   proprietary  to  the  Party   disclosing  such  information  (the
      "Disclosing  Party").  Neither the  non-Disclosing  Party,  nor any of its
      Affiliates,  shall have any rights to distribute or divulge any portion of
      such  Confidential  Information  to any third  party  without  the  prior,
      written  consent  of  the  Disclosing   Party,  or  to  use  any  of  such
      Confidential Information in any way detrimental to the rights,  privileges
      or benefits of such Disclosing  Party, or any of its Affiliates,  or which
      would otherwise in any way destroy, injure or impair any of the Disclosing
      Party's  (and/or  its  Affiliates')  rights in or in  respect  of any such
      Confidential  Information including,  without limitation,  by using any of
      such Confidential  Information to establish or assist any person or entity
      which is, or will be,  directly  or  indirectly  in  competition  with the
      Disclosing Party or the Company, or which otherwise circumvents the rights
      of the  Disclosing  Party.  For  purposes  of  this  Agreement,  the  term
      "Confidential  Information" shall mean any and all proprietary information
      belonging to the Disclosing Party, whether tangible or intangible, written
      or oral, including,  without limitation, any intellectual property rights,
      books and records,  computer software and files,  lists of (or proprietary
      information  concerning)  its  customers,  suppliers,  vendors,  financing
      sources  and other  business  relationships,  and any other item which may
      properly be  classified  as a protected  trade  secret or other  protected
      interest  under  applicable  law.  The Parties  each  expressly  agree and
      understand  that its agreement to abide by the  provisions of this Section
      5.1 constitute a material part of the consideration inducing such Party to
      enter  into this  Agreement  and to  participate  in the Joint  Venture as
      contemplated  herein,  and that any  violation  of such  provisions  could
      create  immediate and irreparable  harm to the Disclosing Party and/or the
      Company.

                                      -4-
<PAGE>

                                    ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

5.1   Representations and Warranties.  Each Party hereby represents and warrants
      to the other Party as indicated,  as of the Effective Date, the following,
      and  covenants to notify the other Party of the  occurrence of any fact or
      circumstance which makes any of these  representations false or misleading
      during the term of this Agreement:

      (a)   such Party has full power and  authority to enter into,  execute and
            perform this  Agreement,  and no consent,  approval or action of any
            other party or  governmental  agency is  required  for such Party to
            enter into, execute or perform this Agreement as contemplated;

      (b)   the  persons  signing  on  behalf of each  Party  hereto is the duly
            authorized  representative  of  such  Party,  with  full  power  and
            authority to enter into and execute this Agreement on behalf of such
            Party;

      (c)   this Agreement  constitutes  the legal and binding  agreement of the
            Parties, enforceable against each of such Parties in accordance with
            its terms; and

      (d)   such Party is not bound by or subject  to any  contract,  agreement,
            court order or judgment,  administrative  ruling, law, regulation or
            any other item which prohibits or restricts such party from entering
            into and performing  this Agreement in accordance with its terms, or
            requiring  the consent of any third party prior to the entry into or
            performance of this  Agreement in accordance  with its terms by such
            Party.

                                   ARTICLE VI

                               GENERAL PROVISIONS

6.1   Notices. All notices,  requests, demands and other communications required
      or permitted to be given hereunder shall be in writing and shall be deemed
      to have been duly given on the date of personal service or transmission by
      fax if such  transmission  is received during the normal business hours of
      the  addressee,  or on the first  business  day after  sending the same by
      overnight  courier  service or by telegram,  or on the third  business day
      after  mailing the same by first  class mail,  or on the day of receipt if
      sent by certified or registered mail, addressed as follows:

                                      -5-
<PAGE>

            If to Star:                        International Star, Inc.
                                               2266 Chestnut Bluffs
                                               Henderson, NV  89052
                                               Tel:  (702) 897-5338
                                               Fax: (702) 897-5832
                                               Attn:    Mr. Denny Cashett
                                                        President

            with a copy (which shall
            not constitute notice) to:         August Law Group, P.C.
                                               19200 Von Karman, Suite 900
                                               Irvine, CA  92612
                                               Tel: (949) 752-7772
                                               Fax: (949) 752-7776
                                               Attn:    Kenneth S. August, Esq.
                                                        President

            If to Resolve:                     Resolve Capital Corporation, Inc.
                                                  2 Lansing Square, Suite 306
                                                  Toronto, Ontario M2J 4P8
                                                  Attn: Mr. E. L. Stone
                                                        President
                                               Tel: (416)-299-3252
                                               Fax: (416)-299-3252

      or to such other  address or  addresses  as such  Parties may  indicate by
      written notice sent in accordance with this Section 6.1.

6.2   Binding  Agreement.  This Agreement shall constitute the binding agreement
      of the Parties hereto, enforceable against each of them in accordance with
      its  terms.  This  Agreement  shall  inure to the  benefit  of each of the
      Parties hereto, and their respective successors and permitted assigns.

6.3   Entire  Agreement.   This  Agreement  constitutes  the  entire  and  final
      agreement  and  understanding  between  the  Parties  with  respect to the
      subject  matter  hereof  and the  transactions  contemplated  hereby,  and
      supersedes   any  and  all  oral  or   written   agreements,   statements,
      representations,  warranties or understandings between the Parties arising
      prior to the date of this  Agreement,  all of which are merged  herein and
      superseded hereby.

                                      -6-
<PAGE>

6.4   Assignment.   This  Agreement,  nor  any  of  the  rights,  privileges  or
      obligations of the Parties hereunder, may not be assigned,  transferred or
      delegated  to any other Party  without the prior,  written  consent of the
      non-assigning Party, provided,  however, that Resolve shall be entitled to
      assign its rights and  obligations  hereunder to any third party which has
      the ability to perform all of Resolve's obligations hereunder,  and agrees
      in writing  to join in and be bound by this  Agreement  and the  Operating
      Agreement, which assignment need not be consented to by Star in advance.

6.5   Waiver. No waiver of any provision of this Agreement shall be deemed to be
      or shall  constitute  a waiver  of any  other  provision,  whether  or not
      similar,  nor shall any waiver  constitute a continuing  waiver. No waiver
      shall be  binding  unless  executed  in  writing  by the Party  making the
      waiver.

6.6   Headings.  The headings provided herein are for convenience only and shall
      have no force or effect upon the  construction  or  interpretation  of any
      provision hereof.

6.7   Counterparts;  Facsimiles.  This  Agreement may be executed in one or more
      counterparts,  each of which shall be deemed an original, but all of which
      together  shall  constitute  one  and  the  same  instrument.   Facsimiles
      containing  original  signatures  shall be deemed for all  purposes  to be
      originally-signed  copies of the  documents  which are the subject of such
      facsimiles.

6.8   Further Documents and Acts. Each Party hereto agrees to execute such other
      and further documents and to perform such other and further acts as may be
      reasonably  necessary  to carry out the purposes  and  provisions  of this
      Agreement.

6.9   Governing  Law.  This  Agreement  shall be  governed by and  construed  in
      accordance  with the internal laws of the State of Nevada,  without giving
      effect to the law of conflicts of laws applied thereby.  In the event that
      any dispute  shall occur  between the parties  arising out of or resulting
      from the construction,  interpretation, enforcement or any other aspect of
      this  Agreement,   the  parties  hereby  agree  to  accept  the  exclusive
      jurisdiction  of the Courts of the State of Nevada  sitting in and for the
      County of Clark.  In the event  either  party shall be forced to bring any
      legal  action  to  protect  or  defend  its  rights  hereunder,  then  the
      prevailing  party in such  proceeding  shall be entitled to  reimbursement
      from the  non-prevailing  party of all  fees,  costs  and  other  expenses
      (including,  without limitation, the reasonable expenses of its attorneys)
      in bringing or defending against such action.

6.10  Severable Provisions.  The provisions of this Agreement are severable, and
      if any one or more  provisions is  determined  to be illegal,  indefinite,
      invalid or otherwise  unenforceable,  in whole or in part, by any court of
      competent  jurisdiction,  then the remaining  provisions of this Agreement
      and any partially  unenforceable  provisions to the extent  enforceable in
      the pertinent  jurisdiction,  shall  continue in full force and effect and
      shall be binding and enforceable on the Parties.

6.11  Amendment and  Modification.  To the extent  permitted by applicable  law,
      this  Agreement  shall be  amended,  modified  or  supplemented  only by a
      written agreement signed by each of the Parties to this Agreement.

                                      -7-
<PAGE>

6.12  Specific Performance;  Remedies Cumulative.  The parties hereby agree with
      each other that, in the event of any breach of this Agreement by any party
      where such breach may cause  irreparable harm to any other party, or where
      monetary   damages  may  not  be  sufficient  or  may  not  be  adequately
      quantified,  then the  affected  party or  parties  shall be  entitled  to
      specific  performance,  injunctive relief or such other equitable remedies
      as  may be  available  to it,  which  remedies  shall  be  cumulative  and
      non-exclusive,  and in addition  to such other  remedies as such party may
      otherwise have at law or in equity.

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

INTERNATIONAL STAR, INC.                  ATTEST:

    By: /s/ Denny Cashett                       By: /s/ Dorothy Wommack McNeely
        -------------------------                   ---------------------------
        Denny Cashett                               Dorothy Wommack McNeely
        President                                   Secretary

RESOLVE CAPITAL CORPORATION, INC.         ATTEST:

    By: /s/ E.L. Stone                         By:  /s/ Keith McDowell
        -------------------------                   ---------------------------
        E. L. Stone                                 Keith McDowell
        President                                   Secretary

                                      -8-
<PAGE>

Schedule A

Detrital Wash Property (the "Property").

                                LEGAL DESCRIPTION

One Thousand,  two hundred and eighty  (1,280) acres of mining claim property in
Sections 23 and 26, Township 28N, Range 21 W located in Mohave County,  Arizona.
The Arizona  State Office  Bureau of Land  Management,  222 N.  Central  Avenue,
Phoenix, Arizona, manages the property.

Specifically, Arizona Mining Claims:

AMC 347931,  AMC 347932, AMC 347933, and AMC 347934 in Section 23, Township 28N,
Range 21 W located in Mohave  County,  Arizona and

AMC 347935,  AMC 347936, AMC 347937 and, AMC 347938 in Section 26, Township 28N,
    By: /s/ Denny Cashett

As shown in;

Example 1; Map of property
Example 2; Stamped Maintenance Fee Payment
Example 3; Quit Claim DeedUnassociated Document

    EXHIBIT
      10.60

     

    EMPLOYMENT
      AGREEMENT

     

    This
      Employment Agreement (“Agreement”) made and entered into effective as of January
      12, 2006 (the
      “Effective Date”), by and between FuelCell Energy, Inc. (the “Corporation”), a
      Delaware corporation with its principal office at 3 Great Pasture Road, Danbury,
      Connecticut, 06813, and R. Daniel Brdar (“Executive”), an individual who resides
      at 109 Lake Ridge Road, Southbury, Connecticut 06488.

     

    WHEREAS,
      the Corporation desires to promote Executive to the position of President and
      Chief Executive Officer and the Executive desires to accept such promotion,
      commencing as of the Effective Date; and

     

    WHEREAS,
      the Corporation and Executive desire to enter into this Agreement to set forth
      the terms and conditions of their employment relationship; and

     

    WHEREAS,
      Executive acknowledges that by executing and delivering this Agreement, he
      will
      obtain certain rights, compensation, and benefits greater than those that he
      previously received from the Corporation and that, accordingly, such rights,
      compensation, and benefits constitute valid consideration to
      Executive.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements contained
      herein, and other good and valuable consideration, the receipt and sufficiency
      of which is hereby acknowledged by the parties, the parties agree as
      follows:

     

    1. Employment.
      The
      Corporation shall employ Executive in the capacity of President and Chief
      Executive Officer (“President & CEO”) of the Corporation during the term of
      this Agreement, and Executive hereby accepts such employment on the terms and
      conditions set forth in this Agreement. Executive represents that his employment
      by the Corporation pursuant to this Agreement does not violate any other
      agreement, covenant or obligation to which he is a party or by which he is
      bound.

    

    2. Duties.
      During
      the term of this Agreement, Executive shall perform all duties, consistent
      with
      his position as President & CEO in order to advance the Corporation’s
      affairs and related business efforts, assigned or delegated to him by the Board
      of Directors of the Corporation (the
      “Board”) and normally associated with the position of President & CEO. He
      shall devote all of his full business time, attention, energies, skills, and
      efforts to the advancement of the interests and business of the Corporation.
      Following the Effective Date of this Agreement, Executive shall become a member
      of the Board and its Executive Committee.

     

    3. Term.
      The
      term of this Agreement shall begin on the Effective Date, and shall expire
      on
      December 31, 2006, unless earlier terminated as provided in this Agreement
      (the
“Initial Term”). Upon expiration of the Initial Term and any subsequent term or
      extension thereof, this Agreement shall automatically be extended for an
      additional term of one (1) year, unless Executive or the Corporation elect
      to
      terminate this Agreement in accordance with the provisions of Section 12 of
      this
      Agreement (the “Initial Term,” together with any subsequent terms or extensions,
      until termination or expiration in accordance with the provisions of this
      Agreement, shall be referred to as the “Employment Term”). 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4. Compensation.
      As
      compensation for any and all services to be rendered by Executive to the
      Corporation pursuant to this Agreement, the Corporation shall pay Executive
      and
      provide Executive with the following compensation and benefits, which Executive
      agrees to accept in full satisfaction for his services:

     

    a. Base
      Salary.
      The
      Corporation shall pay Executive a Base Salary, payable in equal installments
      at
      such payment intervals as are the usual payroll practices of the Corporation,
      at
      an initial annual rate of $350,000, less such deductions or amounts to be
      withheld as shall be required by applicable law or as may be allowed at the
      request of Executive (the “Base Salary”). The Base Salary shall be reviewed at
      least annually by the Compensation Committee of the Board after the end of
      each
      fiscal year of the Corporation and shall be adjusted by such amount, if any,
      as
      Compensation Committee of the Board, in its sole discretion, shall determine
      and
      approve. Any such adjustment of Base Salary shall be made effective on the
      date
      set by the Compensation Committee of the Board. 

     

    b. Bonus.
      Provided Executive first meets the Corporation’s expectations for his
      performance during the Employment Term and remains employed on the date of
      payment, Executive shall be eligible for a discretionary bonus (a “Discretionary
      Bonus”) of up to fifty
      percent (50%)
      of his
      Base Salary as determined and approved by the Board in its sole discretion
      based
      upon Executive’s achievements in meeting his performance goals and those of the
      Corporation for its most recently ended fiscal year. Goals shall be established
      after the commencement of the Employment Term and then in the first quarter
      of
      any subsequent fiscal year. Any such Discretionary Bonus may be payable in
      cash,
      stock options, and/or restricted stock upon such terms and conditions as
      determined by the Board. The Corporation shall pay any such Discretionary Bonus
      by the end of the first quarter of the following fiscal year. As any bonus
      paid
      to Executive is discretionary, the payment of any bonus in a year must not
      be
      construed as requiring the payment of a bonus in any other year. 

     

    c. Benefits.

     

    (i) Executive
      shall be entitled to participate, to the extent he is eligible, in all group
      insurance programs, health, medical, dental, and disability plans (including,
      without limitations, the Corporation’s 401(k) plan), and other employee benefit
      plans which the Corporation may hereafter in its sole and absolute discretion
      make available generally to its senior executives (other than any incentive
      compensation or equity ownership plan), but the Corporation shall not be
      required to establish or maintain any such program or plan. 

     

    
      
        
        

      

      
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    (ii) Executive
      shall be entitled to four (4) weeks paid vacation during each calendar year,
      in
      accordance with the Corporation’s vacation policies. Such vacation may be taken
      at such time or times as is reasonably consistent with the Corporation’s
      vacation policies and the performance by Executive of his duties and
      responsibilities under this Agreement. Up to one week of unused vacation time
      in
      one year may be carried over and used in the subsequent year.

     

    (iii) Executive
      shall be entitled to participate
      in the
      Corporation’s Stock Option Plan (the “Plan”) and the Compensation Committee of
      the Board has previously granted Executive options to purchase 250,000 shares
      of
      the Corporation’s common stock. The Option shall not be subject to accelerated
      vesting in the event Executive is terminated for Cause pursuant to Section
      12c
      hereof. Executive understands and agrees that any stock rights granted to
      Executive shall be subject to the provisions of the Plan and any separate
      written agreements embodying the grant of the rights that are required by the
      Plan. The rights shall be set forth in a separate agreement embodying the grant
      of the rights which shall be otherwise in the form stipulated in the Plan.
      To
      the extent that there is any conflict between the vesting provisions of this
      Agreement and the provisions of the Plan, the provisions of this Agreement
      shall
      govern.

     

    d. Taxes.
      All
      compensation and benefits are subject to applicable withholding taxes, federal,
      state, and local, and any other proper deductions.

     

    e. Benefit
      Plans.
      Executive understands that the Corporation may amend, change, or cancel its
      employment policies and benefit plans at any time as allowed by law or by any
      applicable plan documents.

     

    5. Business
      Expenses.
      The
      Corporation shall pay, or reimburse Executive for, the reasonable and necessary
      business expenses of Executive incurred in the performance of his duties under
      this Agreement, provided Executive provides timely and reasonable documentation
      of those expenses in accordance with the rules and regulations of the
      Corporation.

     

    6. Compliance
      with Policies.
      Executive acknowledges and agrees that, except as set forth in this Agreement,
      compliance with the Corporation’s policies, practices and procedures is a term
      and condition of his employment under this Agreement.

     

    7. Intellectual
      Property, Inventions and Improvements.
      Executive acknowledges, covenants and agrees that the Corporation shall be
      the
      sole owner of all the fruits and proceeds of Executive’s services to the
      Corporation, including but not limited to all writings, inventions, discoveries,
      designs, systems, processes, software or other improvements relating to the
      business or products of the Corporation, whether or not patentable,
      registerable, or copyrightable, which Executive may, alone or with others,
      conceive, create, develop, produce or make during or as a result of his
      employment with the Corporation (collectively, the “Invention”), free and clear
      of any claims by Executive of any kind or character whatsoever other than
      Executive’s rights to compensation under this Agreement. Executive agrees that
      he shall disclose each of the Inventions promptly and completely to the
      Corporation, and shall, at the request of the Board, execute such assignments,
      certificates or other instruments as the Board or the Corporation from time
      to
      time deem necessary or desirable to evidence, establish, maintain, perfect,
      protect, enforce or defend the Corporation’s right, title and interest in or to
      any or all of the Inventions. Executive acknowledges that all works of
      authorship (including, without limitation, works of authorship that contain
      software program code) relating to the business of the Corporation and produced
      during Executive’s employment with the Corporation, whether they are or are not
      created on the Corporation’s premises or during regular working hours, are works
      made for hire and are the property of the Corporation, and that copyrights
      in
      those works of authorship are the property of the Corporation. If for any reason
      the Corporation is not the author of any such work of authorship for copyright
      purposes, Executive hereby expressly assigns all of his rights in and to that
      work to the Corporation and agrees to sign any instrument of specific assignment
      requested. Executive, whether or not still employed by the Corporation, agrees
      to supply evidence, give testimony, sign and execute all papers, and do all
      other legal and proper things that the Corporation may deem reasonably necessary
      for obtaining, maintaining, and enforcing patents for such Inventions and for
      vesting in the Corporation full title. If Executive is no longer employed by
      the
      Corporation at such time, then Corporation shall pay Executive his reasonable
      out-of-pocket expenses incurred in connection with his providing the services
      rendered by him in the previous sentence.

     

    
      
        
        

      

      
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    8. Non-Disclosure
      of Confidential Information.

     

    a. Executive
      acknowledges that, in and as a result of his employment by the Corporation,
      he
      will be making use of, acquiring and/or adding to the Corporation’s Confidential
      Information (as defined below). As a material inducement to the Corporation
      to
      employ Executive and to pay Executive the compensation and benefits set forth
      in
      this Agreement, Executive covenants and agrees that he shall not, at any time
      during or following the term of his employment with the Corporation, directly
      or
      indirectly divulge or disclose for any purposes whatsoever, any Confidential
      Information that has been obtained by, or disclosed to, him as a result of
      his
      employment with the Corporation. For purposes of this Agreement, “Confidential
      Information” means, collectively, all confidential matters and materials of the
      Corporation, including without limitation, (i) the Corporation’s proprietary
      information, inventions, trade secrets, knowledge, data, know-how, intellectual
      property, systems, procedures, manuals, pricing policies, operational methods
      and information relating to the Corporation’s products, processes, formulae,
      business plans, marketing plans and strategies, pricing strategies, customer
      lists, and all other subject matters pertaining to the business and/or financial
      affairs of the Corporation; (ii) the Corporation’s information regarding plans
      and strategies for research, development, new products, future business plans,
      budgets and unpublished financial statements, licenses, prices and costs; (iii)
      information regarding the skills and compensation of other employees of the
      Corporation; and (iv) information disclosed in confidence to the Corporation
      by
      a third party with a duty on the Corporation to maintain the confidentiality
      of
      such information. The term “Confidential Information” shall not include any
      information that (x) has been made available generally to the public either
      by
      the Corporation or by a third party with the Corporation’s consent, unless such
      information became available as a result of any action by Executive in violation
      of this Agreement, any other agreement, or his obligations under law, or (y)
      has
      been made available as a result of a final award, order, or ruling by an
      arbitration tribunal or a court of competent jurisdiction that has determined
      that such Confidential Information may be disclosed. 

     

    b. If
      Executive is required by a court, arbitration tribunal, or governmental agency
      (by oral questions, interrogatories, requests for information or documents,
      subpoena, civil investigation demand or similar process) to disclose any
      Confidential Information, Executive may disclose such Information to such court,
      tribunal, or agency without liability hereunder, provided, that Executive first
      provides the Corporation with notice of any such requirement(s) as promptly
      as
      practicable, but in any case with sufficient timeliness to enable the
      Corporation to seek an appropriate protective order and/or waive its compliance
      with the relevant provisions of this Agreement.

     

    
      
        
        

      

      
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    9. Covenants
      Against Competition.
      

     

    a. Non-Solicitation
      of Employees.
      While
      employed by the Corporation and for a period of one (1) year, followed by a
      second period of one (1) year, for a total period of two (2) years, from
      the
      date of termination of Executive’s Employment Term with the Corporation for any
      reason, Executive shall not directly or indirectly solicit, induce or encourage
      any of the Corporation’s employees to terminate their employment with the
      Corporation or to accept employment with any competitor, supplier, client,
      agent
      or broker of the Corporation, nor shall Executive cooperate with any others
      in
      doing or attempting to do so. As used in this paragraph, the term “solicit,
      induce or encourage” includes, but is not limited to, (i) initiating
      communications with any employee of the Corporation relating to possible
      employment or independent contractor relationship, (ii) offering bonuses or
      additional compensation to encourage any employee of the Corporation to
      terminate his or her employment with the Corporation and accept employment
      with
      a competitor, supplier, client, agent or broker of the Corporation, or (iii)
      referring any employee of the Corporation to recruiters, personnel or agents
      employed by competitors, suppliers, clients, agents or brokers of the
      Corporation. Notwithstanding the foregoing, the term "solicit, induce or
      encourage", as used in this Section 9a, specifically excludes any action by
      the
      Executive related to any of the Corporation's employees where it is in the
      Corporation's best interest to terminate any such employees as in the case
      of a
      planned reduction in force by the Corporation.

     

    b. Non-Compete.
      While
      Executive is employed by the Corporation and for a period of one (1) year,
      followed by a second period of one (1) year, for a total period of two (2)
      years, from
      the
      date of termination of Executive’s Employment Term for any reason, Executive
      shall not directly or indirectly, as a principal, agent, contractor, employee,
      employer, partner, shareholder, proprietor, investor, member, director, officer
      or consultant or in any other capacity, engage in or perform any managerial
      or
      executive services (a) for any corporation, partnership, individual or entity
      which is engaged in a business competitive with the Corporation or affiliate
      of
      the Corporation, or (b) to any customer of the Corporation or affiliate of
      the
      Corporation.

     

    c. For
      the
      purposes of this Agreement:

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (i) The
      term
“engaged in a business competitive with the Corporation” means directly or
      indirectly engaging in the business of researching, developing, designing,
      manufacturing, selling or distributing fuel cells or batteries or engaging
      in
      the same or any substantially similar business as the Corporation or any of
      its
      affiliates in any manner whatsoever within any geographic area in which the
      Corporation’s products or services are offered or distributed. Executive
      understands and agrees that, because the Corporation is engaged in business
      throughout the world, the geographic area covered by this noncompete covenant
      extends throughout North America, South America, Europe, Asia and Africa;
 

     

    (ii) The
      term
“affiliate” means any legal entity that directly or indirectly through one or
      more intermediaries controls, is controlled by, or is under common control
      with
      the Corporation; and

     

    (iii) The
      term
“customer” means any business, company, person, and any other entity to whom the
      Corporation or any of its affiliates has provided any product or service,
      whether or not for compensation, within a period of two (2) years prior to
      the
      time Executive ceases to be employed by the Corporation.

     

    d. Exclusion
      for Investments.
      None of
      the provisions of this Section 9 shall prohibit Executive from investing in
      securities (i) listed on a national securities exchange or actively traded
      over-the-counter so long as such investments are not greater than five percent
      (5%) of the outstanding securities of any issuer of the same class or issue
      or
      (ii) of entities engaged in a business competitive with the Corporation so
      long
      as any such entity was not engaged in a business competitive with the
      Corporation at the time Executive made such investment. 

     

    10. Reasonableness
      of Restrictions.
      

     

    a. Executive
      has carefully read and considered the provisions of Section 8 and
      Section 9, and, having done so, agrees that:

     

    (i) The
      restrictions set forth in Section 8 and Section 9, including but not limited
      to
      the character, duration, and geographical area of restriction, are fair and
      reasonable and are reasonably required for the protection of the good will
      and
      other legitimate business interests of the Corporation and its affiliates,
      officers, directors, shareholders, and other employees;

     

    (ii) Executive
      has received, or is entitled to receive, adequate consideration for such
      obligations; and

     

    (iii) Such
      obligations do not prevent Executive from earning a livelihood.

     

    b. If,
      notwithstanding the foregoing, any of the provisions of Section 8 or Section
      9
      shall be held to be invalid or unenforceable, the remaining provisions thereof
      shall nevertheless continue to be valid and enforceable as though the invalid
      and unenforceable parts had not been included therein. If any provision of
      Section 8 or Section 9 is determined by a court of competent jurisdiction that
      the character, duration, geographical scope, or related aspects are unreasonable
      in light of the circumstances as they then exist, then it is the intention
      of
      the parties that Section 8 and/or Section 9 shall be construed by the court
      in
      such a manner as to impose only those restrictions on the conduct of Executive
      that are reasonable in light of the circumstances as they then exist and as
      are
      necessary to assure the Corporation of the intended benefit of this Agreement
      and such restrictions, as so modified, shall become and thereafter be the
      maximum restriction in such regard, and the restriction shall remain enforceable
      to the fullest extent deemed reasonable by such court.

     

    
      
        
        

      

      
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    11. Remedies
      for Breach of Executive’s Covenants of Non-Disclosure and
      Non-Competition.
      Executive recognizes and agrees that the Corporation’s remedy at law for any
      breach of Section 8 or Section 9 would be inadequate as such a breach would
      cause irreparable harm to the Corporation, and he agrees that, for any actual
      or
      threatened breach of such provisions, the Corporation shall, in addition to
      such
      other remedies as may be available to it at law or in equity, be entitled to
      injunctive relief and to enforce its rights by an action for specific
      performance. All of the Corporation’s remedies for any breach of this Agreement
      shall be cumulative and the pursuit of any one remedy shall not exclude the
      Corporation’s pursuit of any other remedies.

     

    12. Termination
      and Severance.

     

    a. Death.
      In the
      event that Executive dies during the Employment Term, this Agreement shall
      terminate automatically upon his death, upon which event Executive’s legal
      representatives shall be entitled to receive, and the Corporation shall pay
      or
      cause to be paid to Executive’s legal representatives, any Base Salary and other
      compensation or benefits accrued but as yet unpaid on the date of Executive’s
      death. 

     

    b. Incapacity
      or Disability.
      If
      during the Employment Term, Executive is prevented from performing the duties
      or
      fulfilling responsibilities of his employment under this Agreement by reason
      of
      any incapacity or disability for a continuous period of six (6) months, as
      determined by an independent qualified physician selected by the Corporation
      and
      reasonably acceptable to Executive (or his representative), then the Corporation
      may terminate Executive’s employment hereunder, but Executive shall continue to
      be eligible to receive any benefits to which he may be entitled under the terms
      of any long-term disability plan or insurance policy maintained by the
      Corporation for its employees generally or for Executive specifically. In the
      event of such incapacity or disability, the Corporation shall continue to pay
      full compensation to Executive in accordance with the terms of this Agreement
      until the date of such termination.

     

    c. By
      Corporation for Cause.
      The
      Corporation may, upon written notice to Executive, terminate Executive’s
      employment hereunder for Cause (as defined hereafter); provided that the
      Corporation shall first provide Executive with an opportunity to be heard by
      the
      Board on any proposed termination for Cause by the Board. For purposes of this
      Agreement, the term “Cause” shall mean (i) Executive’s material breach of this
      Agreement if the Corporation has notified Executive of such breach and he has
      not cured such breach within 15 days of having received such notice; (ii)
      Executive’s material failure to adhere to any policy of the Corporation
      generally applicable to employees of the Corporation if Executive has been
      given
      a reasonable opportunity to comply with such policy or cure his failure to
      comply; (iii) Executive’s appropriation (or attempted appropriation) of a
      business opportunity of the Corporation, including attempting to secure or
      securing any personal profit in connection with any transaction entered into
      on
      behalf of the Corporation; (iv) Executive’s misappropriation (or attempted
      misappropriation) of any of the Corporation’s funds or property; (v) Executive’s
      conviction of, or the entering of a guilty plea or plea of no contest with
      respect to, a felony, the equivalent thereof, or of a lesser crime having as
      its
      predicate element fraud, dishonesty or misappropriation of property of the
      Corporation; (vi) Executive’s willful misconduct or insubordination; (vii)
      Executive’s physical or mental disability or other inability to perform the
      essential functions of his position for a consecutive six (6) month period,
      with
      or without reasonable accommodation, as determined by an independent qualified
      physician selected by the Corporation and reasonably acceptable to Executive
      (or
      his representative) if Executive is not eligible for benefits under the terms
      of
      any long-term disability policy or insurance policy maintained by the
      Corporation for its employees generally or for Executive specifically; (viii)
      Executive’s engaging in bad faith or gross negligence in the performance of his
      duties under this Agreement as determined in good faith by the Board; or (ix)
      any other conduct of Executive sufficiently detrimental to the Corporation
      so as
      to warrant immediate termination of Executive’s employment with the Corporation.

     

    
      
        
        

      

      
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    In
      the
      event of termination for Cause of Executive’s employment, Executive’s right to
      receive compensation and other benefits hereunder (other than any Base Salary
      and any vacation accrued but as yet unpaid on the effective date of such
      termination) shall terminate on the effective date of such termination, and
      Executive shall not be entitled to any severance payments or other
      benefits.

     

    d. Termination
      by the Corporation without Cause.
      The
      Corporation may elect to terminate Executive’s employment at any time without
      Cause upon written notice to Executive. In the event of such termination without
      Cause, Executive shall be entitled to a
      severance
      payment
      in an amount
      equal to
      two (2) years of (i) Executive’s Base Salary as
      of the
      date of termination plus (ii) the average of the bonuses paid Employee
      since the inception of the Agreement; such payment to be made in equal
      installments over a six (6) month period on the Corporation’s usual pay
      periods
      during
      that period of time; provided, however, that in order to be eligible to receive
      such severance payment, Executive must sign a waiver of any claims against
      the
      Corporation on a waiver and release form approved by the Corporation at that
      time.
      

     

    e. Nonrenewal
      of Agreement.
      The
      Corporation may elect to not renew or extend this Agreement at any time without
      cause upon written notice to Executive not later than thirty (30) days prior
      to
      the end of any Initial Term or any extended Employment Term. In the event of
      a
      nonrenewal or non-extension pursuant to this Paragraph, Executive’s rights to
      receive compensation and other benefits (other than any Base Salary and vacation
      accrued but as yet unpaid on the effective date of such termination) shall
      terminate at the expiration of the Initial Term or Employment Term. In the
      event
      of such termination, Executive shall be entitled to a
      severance
      payment
      following the end of such Initial Term or Employment Term in
      an
      amount equal
      to
      the
      amounts specified in Section 12(d).
      

     

    
      
        
        

      

      
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    f. By
      Executive for Certain Reasons.
      Executive may, at his option, upon at least thirty (30) days written notice
      to
      the Corporation, terminate his employment hereunder, if the Corporation, without
      Executive’s express written consent, (i) removes him as an officer of the
      Corporation, (ii) demotes him from President and CEO, (iii) assigns him duties
      materially inconsistent with the position and/or duties described in Sections
      1
      or 2, (iv) materially diminishes his responsibilities and/or duties described
      in
      Sections 1 or 2, or (v) breaches any material obligations to Executive under
      this Agreement. Upon any termination by Executive under this Paragraph the
      Corporation shall be obligated to pay Executive the severance payments specified
      in Section 12(d).

     

    g. By
      Executive Following Change of Control.
      Executive may, at his option, upon thirty (30) days written notice to the
      Corporation, terminate his employment hereunder for Good Reason (as hereinafter
      defined) following a Change of Control of the Corporation. Upon any termination
      by Executive under this Paragraph, the Corporation shall be obligated to pay
      Executive the
      amounts specified in Section 12(d).
      Termination by Executive pursuant to this paragraph shall not be deemed a
      voluntary termination by Executive pursuant to Section 12k hereof. 

     

    h. Good
      Reason Defined.
      For
      purposes of this Agreement, the term “Good Reason” means, during the thirty (30)
      day period prior to or the twelve (12) month period following a Change of
      Control, without Executive’s express written consent, the occurrence of any of
      the following circumstances:

     

    
      
        	 	
                (i)

              	
                the
                  assignment to Executive of any duties inconsistent (except in the
                  nature
                  of a promotion) with the position in the Corporation that he held
                  immediately prior to the Change of Control or substantial adverse
                  alteration in the nature or status of his position or responsibilities
                  or
                  the conditions of his employment from those in effect immediately
                  prior to
                  the Change of Control;

              

      

      
        	 	 	 

      

      
        	 	
                (ii)

              	
                a
                  reduction,
                  other than a de minimis reduction, by
                  the Corporation in Executive’s annual Base Salary as in effect on the date
                  hereof, as the same may be increased from time to time;
                  

              

      

      
        	 	 	 

      

      
        	 	
                (iii)
 	
                the
                  failure by the Corporation to continue in effect any material compensation
                  or benefit plan in which Executive participates immediately prior
                  to the
                  Change of Control unless an equitable arrangement (embodied in
                  an ongoing
                  substitute or alternative plan) has been made with respect to such
                  plan,
                  or the failure by the Corporation to continue Executive’s participation
                  therein (or in such substitute or alternative plan) on a basis
                  not
                  materially less favorable, both in terms of the amount of benefits
                  provided and the level of his participation relative to other
                  participants, than existed immediately prior to the Change of
                  Control;
                  or

              

      

      
        	 	 	 

      

      
        	 	
                (iv)

              	
                the
                  failure by the Corporation or its successor or any surviving entity
                  to
                  maintain Executive as the President and CEO of the top level operating
                  company affiliated with the Corporation or its successor or surviving
                  entity. 

              

      

    

     

    
      
        
        

      

      
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    i. Change
      of Control Defined.
      For
      purposes of this Agreement, a “Change of Control” shall be deemed to have
      occurred if the transaction is of a nature that would be required to be reported
      in response to Item l(a) of the Current Report on Form 8-K, as in effect on
      January 1, 2003, pursuant to Section 13 or 15(d) of the Securities Exchange
      Act
      of 1934 (the “Exchange Act”); provided that, without limitation, such a “Change
      of Control” shall be deemed to have occurred if: (i) a third Person, including a
“group” as such term is used in Section 13(d)(3) of the Exchange Act, other than
      the trustee of any employee benefit plan of the Corporation, becomes the
      beneficial owner, directly or indirectly, of 35% or more of the combined voting
      power of the Corporation’s outstanding voting securities ordinarily having the
      right to vote for the election of directors of the Corporation; (ii) during
      any
      period of twenty-four (24) consecutive months individuals who, at the beginning
      of such consecutive twenty-four (24) month period, constitute the Board of
      Directors of the Corporation (the “Board”) cease for any reason (other than
      retirement upon reaching normal retirement age, disability, or death) to
      constitute at least a majority of the Board; provided that any person becoming
      a
      director subsequent to the date hereof whose election, or nomination for
      election by the Corporation’s shareholders, was approved by a vote of at least
      three quarters of the directors comprising the Incumbent Board shall be, for
      purposes of this Agreement, considered as though such person were a member
      of
      the Incumbent Board; or (iii) the Corporation shall cease to be a publicly
      owned
      corporation having its outstanding Common Stock listed on the New York Stock
      Exchange or quoted in the NASDAQ National or
      Small
      Cap Market
      System, except where the delisting is related to a private purchase of the
      Corporation’s stock by a group consisting of the Corporation’s current officers.

     

    For
      these
      purposes, a “Change of Control” also shall not be deemed to have occurred where,
      with respect to any transaction otherwise constituting a “Change of Control,”
Executive is reasonably expected to maintain his existing position as President
      and CEO with the Corporation. 

     

    For
      these
      purposes, Incumbent Board means the Board as in existence twenty-four (24)
      months prior to the date the action is being considered. Notwithstanding the
      foregoing, if the Incumbent Board specifically determines that any transaction
      does not constitute a Change of Control for purposes of this Agreement such
      determination shall be conclusive and binding.

     

    
      
        
        

      

      
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    j. Person
      Defined.
      For
      purposes of this Agreement, the term “Person” means any individual, corporation,
      association, partnership, limited partnership, limited liability company,
      limited liability partnership, organization, business, joint venture, sole
      proprietorship, governmental agency, entity or subdivision or other entity
      of
      any kind or nature.

     

    k. Voluntary
      Termination by Executive.
      Executive may, at his option, upon thirty (30) days prior written notice to
      the
      Corporation, terminate his employment hereunder. In the event of a voluntary
      termination of his employment by the Executive pursuant to this Paragraph,
      Executive’s rights to receive compensation and other benefits (other than any
      Base Salary and vacation accrued but as yet unpaid on the effective date of
      such
      termination) shall terminate on the effective date of such termination, and
      Executive shall not be entitled to any severance payments or other
      benefits.

     

    l. Eligibility
      for Severance; Requirement of Release.
      Except
      as provided in Sections 12d, 12e, 12f, and 12g, Executive shall not be eligible
      for or entitled to any severance payments in the event of termination of his
      employment hereunder. No severance shall be paid under this Agreement unless
      Executive first executes and agrees to be bound by a release of all claims,
      on a
      form provided by the Corporation, which releases any and all claims that
      Executive has or might have against the Corporation and which contains terms
      customary in such agreements.

     

    m. Resignation.
      In the
      event of termination of his employment other than for death, Executive shall
      be
      deemed to have resigned from all positions held in the Corporation, including
      without limitation any position as a director, officer, agent, trustee, or
      consultant of the Corporation or any affiliate of the Corporation. Upon request
      of the Corporation, Executive shall promptly sign and deliver to the Corporation
      any and all documents reflecting such resignations as of the date of termination
      of his employment.

     

    n. Compliance
      with Section 409A of the Code.
      Notwithstanding anything to the contrary in this Agreement, to the extent that
      the Corporation in the exercise of its reasonable judgment shall determine
      that
      Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
      applies to any amounts payable under this Section 12, then any such amounts
      shall be paid in such fashion and at such times so as to ensure that the
      Corporation and Executive are in compliance with Section 409A of the Code.
      

     

    13. Vesting
      upon Change of Control.
      Any
      stock options and restricted stock granted to Executive by the Corporation
      shall
      accelerate and immediately vest upon the occurrence of the following events:
      if
      (a) any “person,” as such term is used in Sections 13(d) and 14(e) of the
      Securities and Exchange Act of 1934, as amended (the “Exchange Act”) (other than
      the Corporation, any trustee or other fiduciary holding securities under an
      employee benefit plan of the Corporation, or any corporation owned directly
      or
      indirectly by the stockholders of the Corporation in substantially the same
      proportion as their ownership of stock in the Corporation) is or becomes the
      “Beneficial Owner” (as defined in Rule 13d-3 under the Exchange Act), directly
      or indirectly, of securities of the Corporation representing 50% or more of
      the
      combined voting power of the Corporation’s then outstanding securities (other
      than as a result of acquisitions of such securities from the Corporation);
      (b)
      individuals who, as of the date hereof, constitute the Board of Directors of
      the
      Corporation (the “Incumbent Board”) cease for any reason to constitute at least
      a majority of the Board, provided that any person becoming a director after
      the
      date hereof whose election, or nomination for election by the Corporation’s
      stockholders, was approved by a majority of the directors then comprising the
      Incumbent Board (other than an election or nomination of an individual whose
      initial assumption of office is in connection with an actual or threatened
      election contest relating to the election of the directors of the Corporation)
      shall be, for purposes of this Agreement, considered to be a member of the
      Incumbent Board; (c) the stockholders of the Corporation approve a merger or
      consolidation of the Corporation with any other corporation, other than (i)
      a
      merger or consolidation that would result in the voting securities of the
      Corporation outstanding immediately prior thereto continuing to represent
      (either by remaining outstanding or by being converted into voting securities
      of
      the surviving entity) more than 50% of the combined voting power of the voting
      securities of the Corporation or such surviving entity outstanding immediately
      after such merger or consolidation or (ii) a merger or consolidation effected
      to
      implement a recapitalization of the Corporation (or similar transaction) in
      which no “person” (as defined above, acquires more than 20% of the combined
      voting power of the Corporation’s then outstanding securities; or (d) the
      stockholders of the Corporation approve a plan of complete liquidation of the
      Corporation or an agreement for the sale or disposition of the Corporation
      of
      all or substantially all of the Corporation’s assets. To the extent permitted by
      applicable law, Executive shall be entitled to exercise, for a period of 12
      months from the effective date of termination of his employment, all of his
      stock options and restricted grants, which vest pursuant to this Section or
      were
      otherwise vested prior to the termination of his employment. 

     

    
      
        
        

      

      
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    14. Payment
      or Benefit in Connection with Change of Control.
      

     

    a.
       Notwithstanding
      any other provision of this Agreement, in the event that any payment or benefit
      received or to be received by the Executive (i) is deemed to be in connection
      with a Change of Control (whether payable pursuant to the terms of this
      Agreement or any other plan, arrangement or agreement with the Corporation,
      its
      successors, any person whose actions result in a Change of Control or any
      corporation (“Affiliates”) affiliated (or which, as a result of the completion
      of the transactions causing a Change of Control will become affiliated) with
      the
      Corporation within the meaning of Section 1504 of the Internal Revenue Code
      of
      1986, as amended (the “Code”) (collectively with the payments and benefits
      pursuant to this Agreement if deemed to be paid pursuant to a Change of Control,
      “Total Payments”) and (ii) is determined by the Corporation's independent
      certified accounting firm (the “Tax Advisor”) that such
      amount exceeds 2.99 times the base amount (as such term is defined under Section
      280G(b)(3) of the Code) but that is less than 4 times the base amount and that
      an
      excise
      tax is payable by Executive under Section 4999 of the Code, then the amount
      of
      payments to the Executive shall be reduced so that the payments do not exceed
      the limits then set forth in Section 280G of the Code.

     

    b.
       Notwithstanding
      any other provisions of this Agreement or the provisions of Section (a) above,
      in the event that the Total Payments received or to be received by Executive
      in
      connection with a Change of Control would be subject (in whole or part), to
      an
      excise tax pursuant to Section 4999 of the Code (such tax hereinafter referred
      to as the “Excise Tax”) because the amount of the Total Payments equals or
      exceeds four (4) times the base amount (as such term is defined under Section
      280G(b)(3) of the Code), then the Total Payments shall be grossed up to the
      extent necessary to reflect any Excise Taxes due by Executive and the income
      taxes attributable thereto so that the Executive will be entitled to a net
      amount equal to the Total Payments (the “Grossed-Up Payment”). For purposes of
      determining whether and the extent to which the Total Payments will be subject
      to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment
      of which Executive shall have effectively waived in writing prior to the date
      of
      this termination of employment shall be taken into account, (ii) no portion
      of
      the Total Payments shall be taken into account which in the opinion of tax
      counsel selected by Corporation does not constitute a “parachute payment” within
      the meaning of Section 280G(b)(2) of the Code, (including by reason of Section
      280(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of
      such
      Total Payment shall be taken into account which constitutes reasonable
      compensation for services actually rendered, within the meaning of Section
      280G(b)(4)(B) of the Code, in excess of the base amount as defined in Section
      280G(b)(3) of the Code allowable to such reasonable compensation, and (iii)
      the
      value of any non-cash benefit or any deferred payment or benefit included in
      the
      Total Payments shall be determined by Corporation in accordance with the
      principles of Sections 280G(d)(3) and (4) of the Code. Prior to the thirtieth
      day following the date of Executive’s termination of employment, Corporation
      shall provide Executive with its calculation of the amounts referred to in
      this
      Section and such supporting materials as are reasonably necessary for Executive
      to evaluate Corporation’s calculations but the Corporation’s calculations shall
      be used for purposes of any payments pursuant to this Section. 

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    c. If
      the
      Corporation’s Tax Advisor determines that the Total
      Payments received or to be received by Executive fall under subparagraph (a)
      above and upon audit by the Internal Revenue Service the IRS determines that
      an
      Excise Tax is due and payable due to the amount of the Total Payments received
      by Executive, then the Corporation agrees to make a Grossed-Up Payment
      calculated in the same manner as provided in subparagraph (b). 

    

    d. In
      the
      event of any IRS audit concerning to the Total Payments payable or paid to
      Executive, the Corporation may in its sole discretion choose to respond to
      the
      audit. If the Corporation chooses not to respond, then it shall be the sole
      responsibility of Executive to respond to the audit.

    

    15. Waiver.
      A
      party’s failure to insist on compliance or enforcement of any provision of this
      Agreement shall not affect the validity or enforceability or constitute a waiver
      of future enforcement of that provision or of any other provision of this
      Agreement by that party or any other party.

     

    16. Governing
      Law.
      This
      Agreement shall in all respects be subject to, and governed by, the laws of
      the
      State of Connecticut without reference to its conflict of laws

     

    17. Severability.
      Subject
      to the provisions of Section 18, Executive and the Corporation agree that the
      invalidity or unenforceability of any provision in the Agreement shall not
      in
      any way affect the validity or enforceability of any other provision and this
      Agreement shall be construed in all respects as if such invalid or unenforceable
      provision had never been in the Agreement.

     

    18. Judicial
      Modification.
      If a
      court of competent jurisdiction determines that the character, duration,
      geographic scope, activity and/or subject of the provisions in Sections 8,
      9, or
      10 of this Agreement is or are unreasonable under the circumstances as they
      then
      exist, then Executive and the Corporation agree that such provisions should
      be
      limited and reduced, and request that any reviewing court limit and reduce
      such
      provisions, so as to make them enforceable under applicable law to assure the
      Corporation of the intended maximum benefit of such provisions under this
      Agreement.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    19. Notice.
      Any and
      all notices required or permitted herein shall be in writing and shall be deemed
      to have been duly given (a) when delivered if delivered personally,
      (b) on the fifth day following the date of deposit in the United States
      mail if sent first class, postage prepaid, or by certified mail, or (c) one
      day after delivery to a nationally recognized overnight courier service. The
      parties’ respective addresses for such notices shall be those set forth below,
      or such other address or addresses as either party may hereafter designate
      in
      writing to the other.

     

    
      	
            	If
              to the Corporation:	
              FuelCell
                Energy, Inc.

            

    

    3
      Great
      Pasture Road

    Danbury,
      CT 06813

    Attention:
      Chairman of the Board of Directors

    Facsimile
      No.: (203) 825-6100

     

    
      
        	
              	With
                a copy to:	
                Robinson
                  & Cole LLP

              

      
Financial
      Centre

    695
      East
      Main Street

    Stamford,
      CT 06904-2305

    Attention:
      Richard A. Krantz, Esq.

    Facsimile
      No.: (203) 462-7599

     

    
      
        	
              	If
                to Employee:	
                R.
                  Daniel Brdar

              

      

      
        	 	 	109 Lake Ridge
                Road

      

      
        	 	 	Southbury, CT
                06488

      

    

     

             20. Assignment.
      This
      Agreement shall inure to the benefit of, and shall be binding upon, the parties
      hereto and their respective successors, assigns, heirs, and legal
      representatives, including any entity with which the Corporation may merge
      or
      consolidate or to which all or substantially all of its assets may be
      transferred. The duties and covenants of Executive under this Agreement, being
      personal, may not be delegated.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    21. Amendments.
      This
      Agreement may be amended at any time by mutual consent of the parties hereto,
      with any such amendment to be invalid unless in writing and signed by the
      Corporation and Executive and expressly referring to this
      Agreement.

     

    22. Entire
      Agreement.
      This
      Agreement contains the entire agreement and understanding by and between
      Executive and the Corporation with respect to the employment of Executive and
      supersedes all existing agreements between the Corporation and Executive with
      respect to such subject matter. No representations, promises, agreements, or
      understandings, written or oral, relating to the employment of Executive by
      the
      Corporation, or any of its officers, directors, employees, or agents, not
      contained herein shall be of any force or effect, provided that, Sections 5,
      6,
      7, 8, and 9 shall be supplemental to any other agreement of Executive with
      the
      Corporation related to the matters identified therein.

     

    23. No
      Undue Influence; Construction.
      This
      Agreement is executed voluntarily and without any duress or undue influence.
      Executive acknowledges that he has read this Agreement and executed it with
      his
      full and free consent. No provision of this Agreement shall be construed against
      any party by virtue of the fact that such party or its counsel drafted such
      provision or the entirety of this Agreement.

     

    24. References
      to Gender and Number Terms.
      In
      construing this Agreement, feminine or number pronouns shall be substituted
      for
      those masculine in form and vice versa, and plural terms shall be substituted
      for singular and singular for plural in any place in which the context so
      requires.

     

    25. Counterparts;
      Headings; Sections.
      This
      Agreement may be executed in multiple counterparts, each of which shall be
      considered to have the force and effect of any original but all of which taken
      together shall constitute but one and the same instrument. The various headings
      in this Agreement are inserted for convenience only and are not part of the
      Agreement. All references to “Sections” and “Paragraphs” in this Agreement refer
      to the various corresponding sections and paragraphs of this
      Agreement.

     

    26. Survival.
      The
      covenants and agreements contained in Sections 5 through 10 shall survive any
      termination of Executive’s employment with the Corporation. 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    27. Arbitration;
      Waiver of Trial by Jury.
      Executive and the Corporation shall submit any disputes arising under this
      Agreement to an arbitration panel conducting a binding arbitration in Hartford,
      Connecticut or at such other location as may be agreeable to the parties, in
      accordance with the National Rules for the Resolution of Employment Disputes
      of
      the American Arbitration Association in effect on the date of such arbitration
      (the “Rules”), and judgment upon the award rendered by the arbitrator or
      arbitrators may be entered in any court having jurisdiction thereof; provided,
      however, that nothing herein shall impair the Corporation’s right to seek
      equitable relief in any court for any breach or threatened breach of Section
      8
      or Section 9. The award of the arbitrators shall be final and shall be the
      sole
      and exclusive remedy between the parties regarding any claims, counterclaims,
      issues or accountings presented to the arbitration panel. The parties hereto
      further agree that the arbitration panel shall consist of one (1) person
      mutually acceptable to the Corporation and Executive, provided that if the
      parties cannot agree on an arbitrator within thirty (30) days of filing a notice
      of arbitration, the arbitrator shall be selected by the manager of the principal
      office of the American Arbitration Association serving Hartford County in the
      State of Connecticut. Each party will pay for the fees and expenses of its
      own
      attorneys, experts, witnesses, and preparation and presentation of proofs and
      post-hearing briefs (unless (i) the party prevails on a claim for which
      attorney’s fees and expenses are recoverable under the Rules and those amounts
      are included as part of the award or (ii) Executive prevails on a claim for
      breach of this Agreement after the Corporation has terminated Executive pursuant
      to Section 12c hereof, in which case, the Corporation will pay for Executive's
      above-described fees and expenses related to such claim). Any action to enforce
      or vacate the arbitrator’s award shall be governed by the federal Arbitration
      Act, if applicable, and otherwise by applicable state law. If either the
      Corporation or Executive pursues any claim, dispute or controversy against
      the
      other in a proceeding other than the arbitration provided for herein, the
      responding party shall be entitled to dismissal or injunctive relief regarding
      such action and recovery of all costs, losses and attorney’s fees related to
      such action. Executive acknowledges and expressly agrees that this arbitration
      provision constitutes a knowing and voluntary waiver of trial by jury in any
      action or proceeding to which Executive and the Corporation may be parties
      arising out of or pertaining to this Agreement.

     

    

    THE
      NEXT
      PAGE IS THE SIGNATURE PAGE

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    

    IN
      WITNESS WHEREOF, the Corporation and Executive have duly executed this Agreement
      on the date set forth below.

    

    
      	CORPORATION:	 	
              WITNESS:

            
	 	 	 
	
              FUELCELL
                ENERGY, INC.

            	 	 
	 	 	 
	By: 
_______________________________________	 	 
	Name:	 	Name:
	Its: 	 	 
	 	 	 
	Date: ___________	 	 
	 	 	 
	 	 	 
	EXECUTIVE:	 	WITNESS:
	 	 	 
	 	 	 
	Name: R. Daniel Brdar	 	Name:
	 	 	 
	
              Date:
                ____________

            	 	 

    

     

     

    
      
        
        

      

      17

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