Document:

EXHIBIT 10.1

                       INVESTMENT AND EXCHANGE AGREEMENT

     This Investment and Exchange Agreement is made as of April 4, 2000, by and
among DeNora Fuel Cells S.p.A., a company established under the laws of Italy
("DNFC"), DeNora New Energy Investments B.V., a company established under the
laws of The Netherlands and the parent company of DNFC ("DN"), Arthur D.
Little, Inc., a Massachusetts corporation ("ADL"), and Epyx Corporation, a
Delaware corporation ("Epyx").

                              W I T N E S S E T H:

     WHEREAS, DN desires to exchange all of the shares of DNFC for 500,000
newly issued shares of Epyx, and Epyx desires to exchange such shares of Epyx
for all of the shares of DNFC, on the terms and conditions set forth in this
Agreement;

     WHEREAS, upon consummation of such exchange, Epyx shall change its name to
Nuvera ("New DeNora Epyx"), DNFC shall be a wholly-owned subsidiary of New
DeNora Epyx, and DN and ADL shall each own 50% of the outstanding shares of New
DeNora Epyx; and

     WHEREAS, DN and ADL desire to provide for certain matters with respect to
the funding of the operations of New DeNora Epyx and their ownership of common
stock of New DeNora Epyx.

     NOW THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements hereinafter set forth, the parties hereto agree as follows:

ARTICLE I.  DEFINITIONS

     The following capitalized terms, as used in this Agreement, shall have the
meanings set forth below.

     An "Affiliate" of any Person means a Person that directly or indirectly,
through one or more intermediaries, controls, is controlled by or is under
common control with the first mentioned Person. A Person shall be deemed to
control another Person if such first Person possesses directly or indirectly
the power to direct, or cause the direction of, the management and policies of
the second Person, whether through the ownership of voting securities, by
contract or otherwise.

     "Board" means the Board of Directors of New DeNora Epyx.

     "Closing" and "Closing Date" have the meanings set forth in Section 2.2.

     "Common Stock" means the Common Stock, par value $.01 per share, of New
DeNora Epyx, issued in accordance with and subject to the terms of the
Certificate of Incorporation of

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Epyx, and any other common equity securities now or hereafter issued by Epyx,
together with any other shares of stock issued or issuable with respect thereto
(whether by way of a stock dividend, stock split or in exchange for or upon
conversion of such shares or otherwise in connection with a combination of
shares, recapitalization, merger, consolidation or other corporate
reorganization).

     "DNFC Business" means the development and manufacture by DNFC of
commercial multifuel stacks (hydrogen, direct methanol and reformate operation)
for micropower and mobile applications and the development of expertise for the
integration of fuel stacks in power modules and/or fully integrated units.

     "DNFC Intellectual Property" means the Italian and foreign patents and
patent applications, invention disclosures (whether patentable or not),
copyrights, trademarks (including, in the case of trademarks, all goodwill
pertaining thereto) and licenses under any third party intellectual property
rights (including but not limited to patents, patent applications, copyrights,
trademarks, trade secrets and know-how) currently used in the DNFC Business,
together with all associated trade secrets and know-how related to DNFC
Business.

     "DN Shares" means the shares of Common Stock issued to DN at the Closing.

     "Epyx Business" means the development by Epyx of fuel cells, fuel
processors and reformer technology pertaining to the conversion of hydrocarbon
fuels into hydrogen for fuel cells or other purposes and other development
activities directly related to integration of fuel cells and fuel processing
technology to fuel cell development, including the development by Epyx of
commercial distributed power and transportation products related thereto and
components thereof.

     "Epyx Intellectual Property" means the United States and foreign patents
and patent applications, invention disclosures (whether patentable or not),
copyrights, trademarks (including, in the case of trademarks, all goodwill
pertaining thereto) and licenses under any third party intellectual property
rights (including but not limited to patents, patent applications, copyrights,
trademarks, trade secrets and know-how) currently used in the Epyx Business,
together with all associated trade secrets and know-how related to the Epyx
Business.

     "Liabilities" means, with respect to any party, obligations or liabilities
of any nature, whether known or unknown, accrued, absolute, contingent or
otherwise, and whether due or to become due of such party.

     "Operating Plan" means the operating plan of New DeNora Epyx, as prepared
by the senior officers of New DeNora Epyx and approved by the Board from time
to time.

     "Person" means an individual, a corporation, an association, a
partnership, a limited liability company, an estate, a trust, and any other
entity or organization, governmental or otherwise.

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     "Securities Act" means the Securities Act of 1933, as amended from time to
time, and the rules and regulations promulgated thereunder.

     "Stock" means Common Stock and any other equity securities of Epyx.

     "Stockholders" means ADL and DN, together with such other Persons as may
become stockholders of New DeNora Epyx from time to time.

ARTICLE II.  EXCHANGE OF SHARES; CLOSING

     2.1 Exchange of Shares. On the terms and subject to the conditions herein
set forth, New DeNora Epyx agrees to purchase from DN, and DN hereby agrees to
sell to New DeNora Epyx, at the Closing, 400,000 ordinary shares of capital
stock of DNFC, representing all of the outstanding shares of DNFC, in exchange
for 500,000 newly issued shares of Common Stock. Upon such issuance, DN and ADL
each shall own 50% of the outstanding shares of Common Stock.

     2.2 Closing. The exchange of shares contemplated by Section 2.1 above (the
"Closing") shall take place at the offices of Epyx, Acorn Park, Cambridge,
Massachusetts, on April 4, 2000, or at such other place or on such date as the
parties may mutually agree. Such date is referred to herein as the "Closing
Date." At the Closing, DN shall deliver to New DeNora Epyx stock certificates
representing all of the outstanding shares of DNFC. Such stock certificates
shall be duly endorsed in blank for transfer or shall be presented with stock
powers duly executed in blank, with such other documents as may be reasonably
required by New DeNora Epyx to effect a valid transfer of such shares to New
DeNora Epyx, free and clear of any and all liens, encumbrances, charges or
claims. At the Closing, New DeNora Epyx shall deliver to DN a certificate or
certificates representing 500,000 shares of Common Stock.

     2.3 Financial Statements. Within twenty (20) days after the Closing, ADL
shall deliver to DN a balance sheet of Epyx as of March 31, 2000, and DN shall
deliver to ADL a balance sheet of DNFC as of March 31, 2000. ADL represents and
warrants that the Epyx balance sheet shall be true and correct in all material
respects, have been prepared in conformity with generally accepted accounting
principles applied on a consistent basis, and fairly present the financial
condition of Epyx as of the date thereof (subject to the absence of footnotes
and to year-end audit adjustments). DN represents and warrants that the DNFC
balance sheet shall be true and correct in all material respects, have been
prepared in conformity with EC accepted accounting principles applied on a
consistent basis, and fairly present the financial condition of DNFC as of the
date thereof (subject to the absence of footnotes and to year-end audit
adjustments). Provided that the respective balance sheet reflects that each of
Epyx and DNFC have a net worth of US$500,000 or more and net financial
indebtedness of US$700,000 or less, there will be no adjustment in the exchange
of shares of Common Stock pursuant to Section 2.1 above.

ARTICLE III.  REPRESENTATIONS AND WARRANTIES OF EPYX

     Epyx and ADL hereby represent and warrant to DNFC and DN as follows:

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         3.1 Corporate Organization; No Subsidiaries or Investments. Epyx is
duly incorporated, validly existing and in good standing under the laws of the
State of Delaware. Epyx has the requisite corporate power and authority to
conduct its business as it is currently being conducted. Epyx is duly qualified
as a foreign corporation in the Commonwealth of Massachusetts. Epyx has no
subsidiaries and does not own of record or beneficially any capital stock or
other equity interest in any other Person. The corporate documents and records
delivered to DN prior to the execution of this Agreement constitute true,
complete and correct copies of the corporate documents of Epyx and reflect all
amendments thereto through and including the Closing Date.

     3.2 Corporate Power and Authority; Non-Contravention.

          (a) Epyx has all requisite corporate power and authority to execute
     and deliver this Agreement and each agreement, document and instrument to
     be executed and delivered by Epyx pursuant to or as contemplated by this
     Agreement (collectively, the "Epyx Agreements") and to carry out the
     transactions contemplated hereby and thereby. The execution and delivery
     of this Agreement and the Epyx Agreements by Epyx and the consummation by
     Epyx of the transactions contemplated hereby and thereby have been duly
     authorized by all necessary corporate action on the part of Epyx,
     including the approval of the Board and of Epyx's stockholders, and no
     other corporate action or proceeding on the part of Epyx is necessary to
     authorize the execution and delivery by Epyx of this Agreement and the
     Epyx Agreements or the consummation by Epyx of the transactions
     contemplated hereby and thereby. This Agreement and each of the Epyx
     Agreements constitutes the valid and binding obligation of Epyx,
     enforceable against Epyx in accordance with their respective terms. The
     execution, delivery and performance by Epyx of this Agreement and each of
     the Epyx Agreements:

               (i) do not and will not conflict with or violate any provision
          of the Certificate of Incorporation or By-Laws of Epyx;

               (ii) do not and will not violate any laws, rules or regulations
          of the United States or any state or other jurisdiction applicable to
          Epyx, or require Epyx to obtain any approval, consent or waiver of,
          or to make any filing with, any Person that has not been obtained or
          made; and

               (iii) do not and will not result in a breach of, constitute a
          default under, accelerate any obligation under or give rise to a
          right of termination of any indenture or loan or credit agreement or
          any other agreement, contract, instrument, mortgage, lien, lease,
          permit, license, authorization, order, writ, judgment, injunction or
          decree to which Epyx is a party or by which Epyx or its property is
          bound, or result in the creation or imposition of any mortgage,
          pledge, lien, security interest or other charge or encumbrance on any
          of the assets or properties of Epyx.

          (b) The DN Shares, when issued and delivered to and paid for by DN in
     accordance with the terms of this Agreement (i) will be validly issued,
     fully paid and nonassessable, (ii) will represent 50% of the outstanding
     capital stock of New DeNora Epyx and (iii) will be free and clear of any
     and all liens, encumbrances, charges or claims.

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     3.3 No Consents or Approvals Required. Except as set forth in Schedule
3.3, no notice, declaration, report or other filing or registration with, and
no consent, waiver, approval or authorization of, any governmental or
regulatory authority or instrumentality or any other person is required to be
submitted, made or obtained by Epyx in connection with the execution, delivery
or performance of this Agreement or the Epyx Agreements, or the consummation of
the transactions contemplated hereby or thereby, except for those the failure
of which to submit, make or obtain would not have a material adverse effect
upon the assets or business of Epyx.

     3.4 Capitalization. The authorized capital stock of Epyx consists of
2,000,000 shares of common stock, $.01 par value per share, of which 500,000
shares are issued and outstanding. All such shares have been duly authorized
and validly issued, are fully paid and nonassessable. There are no outstanding
options, warrants, rights, commitments, preemptive rights or agreements of any
kind for the issuance or sale of, or outstanding securities convertible into,
any additional shares of common stock. There are no other securities of Epyx
entitled, in the ordinary course, to vote in the election of the Board. There
are no outstanding obligations of Epyx to repurchase, redeem or otherwise
acquire any securities of Epyx.

     3.5 Material Contracts. Schedule 3.5 hereto contains a complete and
correct list of all agreements, contracts and commitments (collectively, the
"Material Contracts") of the following types, written or oral to which Epyx or
ADL is a party or by which it is bound and which, in each case, relate
primarily to Epyx Business, including (i) leases of real or personal property,
(ii) employment, consulting and agency agreements; (iii) research and
development contracts; (iv) agreements, orders or commitments for the sale or
purchase of raw materials, supplies or finished products; (v) joint ventures,
partnerships or similar arrangements; (vi) agreements for the acquisition or
disposition of all or substantially all of the Epyx Business; and (vii)
licenses to or from others relating to the Epyx Intellectual Property. Each of
the Material Contracts is in full force and effect and there does not exist
thereunder any material default by Epyx or ADL, or to the best knowledge of
Epyx and ADL, of any other party thereto, or event or condition which, after
notice or lapse of time or both, would constitute a material default thereunder
by Epyx or ADL or, to the best knowledge of Epyx and ADL, by any other party
thereto. Neither Epyx nor ADL has received any notice that any party to any of
the Material Contracts intends to cancel or terminate any such Material
Contract. Epyx has delivered or made available to DN true, complete and correct
copies of all Material Contracts.

     3.6 Intellectual Property. The Epyx Intellectual Property includes all
rights necessary to conduct the Business as currently conducted, with no known
infringement of the proprietary rights of any third party. Except as set forth
on Schedule 3.6 and except with respect to standard rights reserved to the U.S.
government pursuant to contracts between Epyx or ADL and the U.S. government,
(i) to the best knowledge of Epyx and ADL, Epyx is the sole and exclusive owner
of all rights to the Epyx Intellectual Property and has the right to use the
same without the payment of any license, fee, royalty or similar charge; (ii)
there is no material claim of any other person, firm or corporation or any
proceeding pending or, to the best knowledge of Epyx and ADL, threatened which
relates to any of the Epyx Intellectual Property or the validity or
enforceability thereof or Epyx's rights thereto; and (iii) to the best
knowledge of Epyx and ADL, there are no inventions within the scope of the Epyx
Intellectual Property for which the

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inventor(s) thereof is or are not contractually obligated to assign all of
their rights therein to Epyx or ADL.

     3.7 Litigation; Disputes. There are no claims, actions, suits, proceedings
or investigations by any third party or by governmental, regulatory or
administrative authorities of any nature, civil, criminal or regulatory, at law
or in equity, by or before any court, arbitrator or governmental or other
regulatory or administrative agency, instrumentality or authority which are
pending or, to the best knowledge of Epyx and ADL, threatened, by or against or
affecting Epyx or the Epyx Business.

     3.8 Compliance with Applicable Law. Epyx is currently in compliance, in
all material respects, with all applicable statutes, laws, rules, regulations,
orders, ordinances, judgments or decrees of all governmental authorities
(federal, state, local or otherwise) applicable to the Epyx Business. Epyx has
all governmental licenses, authorizations, permits, consents and approvals
necessary to conduct its business as it is currently being conducted.

     3.9 Taxes. Epyx (or ADL on behalf of Epyx) has filed or will file within
the time prescribed by law (including extensions of time approved by the
appropriate taxing authority) all tax returns and reports required to be filed
with the United States Internal Revenue Service, the Commonwealth of
Massachusetts, and any other jurisdictions where such filing is required by
law. All taxes which are due and payable by Epyx or ADL related to the Epyx
Business, and any interest and penalties thereon, whether disputed or not, have
been paid in full. Neither ADL nor Epyx is delinquent in the payment of any tax
related to the Epyx Business, and there is no tax deficiency or claim
outstanding, proposed or assessed against either of them related to the Epyx
Business.

     3.10 Sufficiency of Assets. Upon consummation of the transactions
contemplated hereby (including, but not limited to, the execution and
performance of the Transition Services Agreement and the Sublease), Epyx will
have the assets that are necessary and adequate for it to conduct the Epyx
Business as currently conducted.

     3.11 Financial Statements. Attached hereto as Schedule 3.11 is the
unaudited balance sheet of Epyx as of December 31, 1999 (the "Balance Sheet") ,
and the unaudited statement of income of Epyx for the period ending December
31, 1999 (collectively, the "Epyx Financial Statements"). The Epyx Financial
Statements are true and correct in all material respects, have been prepared in
conformity with generally accepted accounting principles applied on a
consistent basis, and fairly present the financial condition of Epyx as of the
date thereof (subject to the absence of footnotes and to year-end audit
adjustments).

     3.12 No Undisclosed Liabilities. Since the date of the Epyx Financial
Statements, Epyx has not incurred any Liabilities relating to the Epyx Business
except Liabilities (a) that were incurred in the usual and ordinary course of
business consistent with past practice and (b) that, individually and in the
aggregate, would not have a materially adverse effect upon the Epyx Business.

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     3.13 Absence of Certain Changes. Since December 31, 1999, Epyx has
conducted the Epyx Business only in the ordinary course. Without limiting the
generality of the foregoing, Epyx has not since such date:

          (a) experienced any material adverse change in its financial
     condition, assets, liabilities, prospective contracts or its relationship
     with its principal clients;

          (b) sold, assigned, transferred, pledged, leased or otherwise
     disposed of any asset except in the ordinary course of business consistent
     with past practices, but not in any event exceeding $200,000;

          (c) incurred any obligation, liability or indebtedness except in the
     ordinary course of business consistent with past practices, but not in any
     event exceeding $200,000, or incurred any extraordinary losses;

          (d) made any declaration, setting aside or payment of any dividend by
     Epyx, or made any other distribution in respect of the capital stock of
     Epyx, or any direct or indirect redemption, purchase or other acquisition
     by Epyx of its own capital stock;

          (e) incurred any obligation or liability to any of its officers,
     directors, stockholders or employees, or made any loans or advances to any
     of its officers, directors, stockholders or employees, except normal
     compensation and expense allowances payable to officers or employees;

          (f) amended, waived, released, disposed of or permitted to lapse any
     right relating to the Epyx Business;

          (g) transferred or granted any rights under any concessions, leases,
     licenses, agreements, patents, inventions, trademarks, service marks,
     trade names, trade dress, brand names, trade secrets or copyrights or with
     respect to the Epyx Intellectual Property;

          (h) experienced any material damage, destruction or loss (whether or
     not covered by insurance) relating to the assets of the Epyx Business; or

          (i) agreed, whether or not in writing, to do any of the foregoing.

     3.14 Insurance. ADL currently maintains policies of fire, liability,
worker's compensation, life, and property and casualty in respect to the Epyx
Business. All such policies (i) are in full force and effect and (ii) are
sufficient for compliance in all material respects by Epyx with all
requirements of law and all agreements to which Epyx is a party.

     3.15 Employee Benefit Plans. Except for the arrangements set forth in
Schedule 3.15, neither Epyx nor ADL currently maintains, contributes to, or
participates in, any pension, profit-sharing, deferred compensation, bonus,
stock option, share appreciation right, severance, group or individual health,
dental, medical, life insurance, survivor benefit, car allowance, or similar
plan, policy or arrangement, whether formal or informal, for the benefit of any
employee of Epyx. Such arrangements are referred to in this Agreement as the
"Employee Benefit Plans." Epyx has heretofore delivered or made available to DN
and DNFC true and correct descriptions of each Employee Benefit Plan.

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     3.16 Real and Personal Property.

          (a) Real Property. Epyx does not own any real property. All of the
     real property leased by Epyx is identified on Schedule 3.16(a). True and
     complete copies of all leases with respect to such leased real property
     have been delivered to DN. Each of said leases has been duly authorized
     and executed by the parties and is in full force and effect. Neither ADL
     nor Epyx is in default under any of said leases, nor, to the knowledge of
     ADL and Epyx, has any event occurred which, with notice or the passage of
     time, or both, would give rise to such a default. To the knowledge of ADL
     and Epyx, the other party to each of said leases is not in default under
     any of said leases and there is no event which, with notice or the passage
     of time, or both, would give rise to such a default. Except as set forth
     in Schedule 3.16(a), no consent or approval is required from the other
     parties to any such lease or from any regulatory authority in the United
     States relating to the transfer of a leasehold interest in real property
     and no filing with any such regulatory authority is required in connection
     therewith. To the extent that any such consents, approvals or filings are
     required, ADL or Epyx will obtain or complete them before the Closing.

          (b) Personal Property. A complete description of the equipment of
     Epyx is contained in Schedule 3.16(b) hereto. Except as specifically
     disclosed in said Schedule, Epyx has good and marketable title to all of
     its personal property. None of such personal property or assets is subject
     to any mortgage, pledge, lien or encumbrance except as specifically
     disclosed in said Schedule. Except as otherwise specified in Schedule
     3.16(b) hereto, all leasehold improvements, furnishings and equipment of
     Epyx are in good working order and comply in all material respects with
     all applicable laws, ordinances and regulations.

     3.17 Receivables from Affiliates. Except as disclosed on Schedule 3.17
hereto, Epyx does not have any accounts or loans receivable from any person,
firm or corporation which is affiliated with Epyx or ADL or from any director,
officer or employee of Epyx or ADL, and all accounts and loans receivable from
any such person, firm or corporation shall be paid in cash prior to the
Closing.

     3.18 Transactions with Interested Persons. Except as set forth in Schedule
3.18 hereto, neither Epyx nor any stockholder, officer, supervisory employee or
director of Epyx or ADL or, to the knowledge of ADL and Epyx, any of their
respective spouses or family members, owns directly or indirectly on an
individual or joint basis any material interest in, or serves as an officer or
director or in another similar capacity of, any competitor or supplier of Epyx,
or any organization which has a material contract or arrangement with Epyx.

     3.19 Employees; Labor Matters. A complete list of employees of Epyx is
contained in Schedule 3.19(a) hereto, together with their current position and
compensation. Epyx is not delinquent in payments to any of its employees for
any wages, salaries, commissions, bonuses or other direct compensation for any
services performed for it to the date hereof or amounts

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required to be reimbursed to such employees. Upon termination of the employment
of any of said employees, neither ADL nor Epyx will by reason of the
transactions contemplated under this Agreement or anything done prior to the
Closing be liable to any of said employees for so-called "severance pay" or any
other payments, except as set forth in Schedule 3.19(b). Neither Epyx nor ADL
has any policy, practice, plan or program of paying any form of severance
compensation in connection with the termination of employment, except as set
forth in said Schedule. Epyx is in compliance with all applicable laws and
regulations respecting labor, employment, fair employment practices, work place
safety and health, terms and conditions of employment, and wages and hours.
There are no charges of employment discrimination or unfair labor practices,
nor are there any strikes, slowdowns, stoppages of work, or any other concerted
interference with normal operations which are existing, pending or threatened
against or involving Epyx. There are no grievances, complaints or charges that
have been filed against Epyx, and there is no arbitration or similar proceeding
pending and no claim therefor has been asserted. No collective bargaining
agreement is in effect or is currently being or is about to be negotiated by
Epyx. Neither Epyx nor ADL has received any information indicating that any of
its employment policies or practices is currently being audited or investigated
by any domestic or foreign government agency. No circumstances have arisen
under which Epyx is likely to be required to pay damages for wrongful
dismissal, to make any statutory redundancy payment or make or pay any
compensation in respect of unfair dismissal, or make any other payment under
any employment protection or other employment statutes, treaties, regulations,
by-laws, codes or orders, or to reinstate or re-engage any former employee.

     3.20 Environmental Matters.

          (a) Epyx is in compliance with all Environmental Laws applicable to
     the Business. Epyx has all permits necessary under any Environmental Law
     to conduct the Business as presently conducted. There is no suit, action,
     claim, arbitration, administrative, governmental investigation (including,
     but not limited to, requests for information) or other legal proceeding
     pending or, to the best of Epyx's knowledge, threatened, which relates to
     the ownership, conduct or operation of the Epyx Business and which arises
     under Environmental Law or which is reasonably likely to give rise to an
     Environmental Liability.

          (b) For purposes of this Section 3.20, the following terms shall have
     the meanings set forth below:

               (i) "Environmental Laws" means any and all federal, state, local
          and foreign statutes, laws, judicial decisions, regulations,
          ordinances, rules, judgments, orders, decrees, codes, plans,
          injunctions, permits, licenses, agreements and governmental
          restrictions, relating to human health, safety, the environment or to
          emissions, discharges or releases of pollutants, contaminants or
          other hazardous substances or wastes into the environment, including
          without limitation ambient air, surface water, ground water or land,
          or otherwise relating to the manufacture, processing, distribution,
          use, treatment, storage, disposal, transport or handling of
          pollutants, contaminants or other hazardous substances or wastes or
          the clean-up or other remediation thereof.

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               (ii) "Environmental Liabilities" means any and all liabilities
          of or relating to the Epyx Business which arise under or relate to
          matters covered by Environmental Laws.

     3.21 No Right of Set-Off. Neither Epyx nor ADL enjoys any right of
immunity from set-off, suit or execution with respect to their obligations
under this Agreement and the Epyx Agreements.

 ARTICLE IV.  REPRESENTATIONS AND WARRANTIES OF DNFC

     DN and DNFC hereby represent and warrant to Epyx and ADL as follows:

     4.1 Corporate Organization; No Subsidiaries or Investments. DNFC is duly
incorporated, validly existing and in good standing under the laws of Italy.
DNFC has the requisite corporate power and authority to conduct its business as
it is currently being conducted. DNFC has no subsidiaries and does not own of
record or beneficially any capital stock or other equity interest in any other
Person. The corporate documents and records delivered to ADL prior to the
execution of this Agreement constitute true, complete and correct copies of the
corporate documents of DNFC and reflect all amendments thereto through and
including the Closing Date.

     4.2 Corporate Power and Authority; Non-Contravention.

          (a) DNFC has all requisite corporate power and authority to execute
     and deliver this Agreement and each agreement, document and instrument to
     be executed and delivered by DNFC pursuant to or as contemplated by this
     Agreement (collectively, the "DNFC Agreements") and to carry out the
     transactions contemplated hereby and thereby. The execution and delivery
     of this Agreement and the DNFC Agreements by DNFC and the consummation by
     DNFC of the transactions contemplated hereby and thereby have been duly
     authorized by all necessary corporate action on the part of DNFC,
     including the approval of the Board of Directors of DNFC and of DNFC's
     stockholders, and no other corporate action or proceeding on the part of
     DNFC is necessary to authorize the execution and delivery by DNFC of this
     Agreement and the DNFC Agreements or the consummation by DNFC of the
     transactions contemplated hereby and thereby. This Agreement and each of
     the DNFC Agreements constitutes the valid and binding obligation of DNFC,
     enforceable against DNFC in accordance with their respective terms. The
     execution, delivery and performance by DNFC of this Agreement and each of
     the DNFC Agreements:

               (i) do not and will not conflict with or violate any provision
          of the charter documents of DNFC;

               (ii) do not and will not violate any laws, rules or regulations
          of Italy or any other jurisdiction applicable to DNFC, or require
          DNFC to obtain any approval, consent or waiver of, or to make any
          filing with, any Person that has not been obtained or made; and

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               (iii) do not and will not result in a breach of, constitute a
          default under, accelerate any obligation under or give rise to a
          right of termination of any indenture or loan or credit agreement or
          any other agreement, contract, instrument, mortgage, lien, lease,
          permit, license, authorization, order, writ, judgment, injunction or
          decree to which DNFC is a party or by which DNFC or its property is
          bound, or result in the creation or imposition of any mortgage,
          pledge, lien, security interest or other charge or encumbrance on any
          of the assets or properties of DNFC.

     4.3 No Consents or Approvals Required. No notice, declaration, report or
other filing or registration with, and no consent, waiver, approval or
authorization of, any governmental or regulatory authority or instrumentality
or any other person is required to be submitted, made or obtained by DNFC in
connection with the execution, delivery or performance of this Agreement or the
DNFC Agreements, or the consummation of the transactions contemplated hereby or
thereby, except for those the failure of which to submit, make or obtain would
not have a material adverse effect upon the assets or business of DNFC.

     4.4 Capitalization. The authorized capital of DNFC is 400,000,000 Italian
lire, divided into 400,000 shares of stock with a value of 1,000 Italian lire
per share. All of such shares are issued and outstanding, have been duly
authorized and validly issued, are fully paid and nonassessable, and are owned
of record by DN. There are no outstanding options, warrants, rights,
commitments, preemptive rights or agreements of any kind for the issuance or
sale of, or outstanding securities convertible into, any additional shares of
DNFC stock. There are no other securities of DNFC entitled, in the ordinary
course, to vote in the election of the Board of Directors of DNFC. There are no
outstanding obligations of DNFC to repurchase, redeem or otherwise acquire any
securities of DNFC.

     4.5 Material Contracts. Schedule 4.5 hereto contains a complete and
correct list of all agreements, contracts and commitments (collectively, the
"Material Contracts") of the following types, written or oral to which DNFC or
DN is a party or by which it is bound and which, in each case, relate primarily
to the DNFC Business, including (i) leases of real or personal property, (ii)
employment, consulting and agency agreements; (iii) research and development
contracts; (iv) agreements, orders or commitments for the sale or purchase of
raw materials, supplies or finished products; (v) joint ventures, partnerships
or similar arrangements; (vi) agreements for the acquisition or disposition of
all or substantially all of the DNFC Business; and (vii) licenses to or from
others relating to the DNFC Intellectual Property. Each of the Material
Contracts is in full force and effect and there does not exist thereunder any
material default by DNFC or DN, or to the best knowledge of DNFC and DN, of any
other party thereto, or event or condition which, after notice or lapse of time
or both, would constitute a material default thereunder by DNFC or DN or, to
the best knowledge of DNFC and DN, by any other party thereto. Neither DNFC nor
DN has received any notice that any party to any of the Material Contracts
intends to cancel or terminate any such Material Contract. DNFC has delivered
or made available to ADL true, complete and correct copies of all Material
Contracts.

     4.6 Intellectual Property. The Intellectual Property includes all rights
necessary to conduct the DNFC Business as currently conducted, with no known
infringement of the proprietary rights of any third party. Except as set forth
on Schedule 4.6 and except with respect

                                      11
<PAGE>

to standard rights granted to Italian or European Union government or agencies
pursuant to the contracts listed in Schedule 4.6, (i) to the best knowledge of
DNFC and DN, DNFC is the sole and exclusive owner of all rights to the DNFC
Intellectual Property and has the right to use the same without the payment of
any license, fee, royalty or similar charge; (ii) there is no material claim of
any other person, firm or corporation or any proceeding pending or, to the best
knowledge of DNFC and DN, threatened which relates to any of the DNFC
Intellectual Property or the validity or enforceability thereof or DNFC's
rights thereto; and (iii) to the best knowledge of DNFC and DN, there are no
inventions within the scope of the DNFC Intellectual Property for which the
inventor(s) thereof is or are not contractually obligated to assign all of
their rights therein to DNFC or DN.

     4.7 Litigation; Disputes. There are no claims, actions, suits, proceedings
or investigations by any third party or by governmental, regulatory or
administrative authorities of any nature, civil, criminal or regulatory, at law
or in equity, by or before any court, arbitrator or governmental or other
regulatory or administrative agency, instrumentality or authority which are
pending or, to the best knowledge of DNFC and DN, threatened, by or against or
affecting DNFC or the DNFC Business.

     4.8 Compliance with Applicable Law. DNFC is currently in compliance, in
all material respects, with all applicable statutes, laws, rules, regulations,
orders, ordinances, judgments or decrees of all governmental authorities
(federal, state, local or otherwise) applicable to the DNFC Business. DNFC has
all governmental licenses, authorizations, permits, consents and approvals
necessary to conduct its business as it is currently being conducted.

     4.9 Taxes. DNFC (or DN on behalf of DNFC) has filed or will file within
the time prescribed by law (including extensions of time approved by the
appropriate taxing authority) all tax returns and reports required to be filed
with the Italian taxing authorities and any other jurisdictions where such
filing is required by law. All taxes which are due and payable by DNFC or DN
related to the DNFC Business, and any interest and penalties thereon, whether
disputed or not, have been paid in full. Neither DN nor DNFC is delinquent in
the payment of any tax related to the DNFC Business, and there is no tax
deficiency or claim outstanding, proposed or assessed against either of them
related to the DNFC Business. There has not been any audit of any tax return
filed by DN or DNFC, no such audit is in progress, and neither DN nor DNFC has
been notified by any tax authority that any such audit is contemplated or
pending. Except as provided for in the DNFC Financial Statements or incurred in
the ordinary course of business since the date thereof, there is no existing
contingent or deferred liability for taxes and no material changes in the
assets and liabilities as shown in the DNFC Financial Statements have occurred,
other than in the ordinary course of business, since the date thereof which
might result in any such liability.

     4.10 Sufficiency of Assets. Upon consummation of the transactions
contemplated hereby (including, but not limited to, the execution and
performance of the Transition Services Agreement and the Sublease), DNFC will
have the assets that are necessary and adequate for it to conduct the DNFC
Business as currently conducted.

                                      12
<PAGE>

     4.11 Financial Statements. Attached hereto as Schedule 4.11 is the
unaudited balance sheet of DNFC as of December 31, 1999, and the unaudited
statement of income of DNFC for the period ending December 31, 1999
(collectively, the "DNFC Financial Statements"). The DNFC Financial Statements
are true and correct in all material respects, have been prepared in conformity
with EC accepted accounting principles applied on a consistent basis, and
fairly present the financial condition of DNFC as of the date thereof (subject
to the absence of footnotes and to year-end audit adjustments).

     4.12 No Undisclosed Liabilities. Since the date of the DNFC Financial
Statements, DNFC has not incurred any Liabilities relating to the DNFC Business
except Liabilities (a) that were incurred in the usual and ordinary course of
business consistent with past practice and (b) that, individually and in the
aggregate, would not have a materially adverse effect upon the DNFC Business.

     4.13 Absence of Certain Changes. Since December 31, 1999, DNFC has
conducted the DNFC Business only in the ordinary course. Without limiting the
generality of the foregoing, except as set forth on Schedule 4.13, DNFC has not
since such date:

          (a) experienced any material adverse change in its financial
     condition, assets, liabilities, prospective contracts or its relationship
     with its principal clients;

          (b) sold, assigned, transferred, pledged, leased or otherwise
disposed of any asset except in the ordinary course of business consistent with
past practices, but not in any event exceeding $200,000;

          (c) incurred any obligation, liability or indebtedness except in the
     ordinary course of business consistent with past practices, but not in any
     event exceeding $200,000, or incurred any extraordinary losses;

          (d) made any declaration, setting aside or payment of any dividend by
     DNFC, or made any other distribution in respect of the capital stock of
     DNFC, or any direct or indirect redemption, purchase or other acquisition
     by DNFC of its own capital stock;

          (e) incurred any obligation or liability to any of its officers,
     directors, stockholders or employees, or made any loans or advances to any
     of its officers, directors, stockholders or employees, except normal
     compensation and expense allowances payable to officers or employees;

          (f) amended, waived, released, disposed of or permitted to lapse any
     right relating to the DNFC Business;

          (g) transferred or granted any rights under any concessions, leases,
     licenses, agreements, patents, inventions, trademarks, service marks,
     trade names, trade dress, brand names, trade secrets or copyrights or with
     respect to the DNFC Intellectual Property;

                                      13
<PAGE>

          (h) experienced any material damage, destruction or loss (whether or
     not covered by insurance) relating to the assets of the DNFC Business; or

          (i) agreed, whether or not in writing, to do any of the foregoing.

     4.14 Insurance. DNFC, directly or through its Affiliates, currently
maintains policies of fire, liability, worker's compensation, life, and
property and casualty in respect to the DNFC Business. All such policies (i)
are in full force and effect and (ii) are sufficient for compliance in all
material respects by DNFC with all requirements of law and all agreements to
which DNFC is a party.

     4.15 Employee Benefit Plans. Neither DNFC nor DN currently maintains,
contributes to, or participates in, any pension, profit-sharing, deferred
compensation, bonus, stock option, share appreciation right, severance, group
or individual health, dental, medical, life insurance, survivor benefit, car
allowance, or similar plan, policy or arrangement, whether formal or informal,
for the benefit of any employee of DNFC. Such arrangements are referred to in
this Agreement as the "Employee Benefit Plans." DNFC has heretofore delivered
or made available to Epyx and ADL true and correct descriptions of each
Employee Benefit Plan.

     4.16 Real and Personal Property

          (a) Real Property. DNFC does not own any real property. All of the
     real property leased by DNFC is identified on Schedule 4.16(a). True and
     complete copies of all leases with respect to such leased real property
     have been delivered to ADL. Each of said leases has been duly authorized
     and executed by the parties and is in full force and effect. Neither DN
     nor DNFC is in default under any of said leases, nor, to the knowledge of
     DN and DNFC, has any event occurred which, with notice or the passage of
     time, or both, would give rise to such a default. To the knowledge of DN
     and DNFC, the other party to each of said leases is not in default under
     any of said leases and there is no event which, with notice or the passage
     of time, or both, would give rise to such a default. Except as set forth
     in Schedule 4.16(a), no consent or approval is required from the other
     parties to any such lease or from any regulatory authority in Italy
     relating to the transfer of a leasehold interest in real property and no
     filing with any such regulatory authority is required in connection
     therewith. To the extent that any such consents, approvals or filings are
     required, DN or DNFC will obtain or complete them before the Closing.

          (b) Personal Property. A complete description of the equipment of
     DNFC is contained in Schedule 4.16(b) hereto. Except as specifically
     disclosed in said Schedule, DNFC has good and marketable title to all of
     its personal property. None of such personal property or assets is subject
     to any mortgage, pledge, lien or encumbrance except as specifically
     disclosed in said Schedule. Except as otherwise specified in Schedule
     4.16(b) hereto, all leasehold improvements, furnishings and equipment of
     DNFC are in good working order and comply in all material respects with
     all applicable laws, ordinances and regulations.

     4.17 Receivables from Affiliates. Except as disclosed on Schedule 4.17
hereto, DNFC does not have any accounts or loans receivable from any person,
firm or corporation which is affiliated with DNFC or DN or from any director,
officer or employee of DNFC or DN, and all

                                      14
<PAGE>

accounts and loans receivable from any such person, firm or corporation shall
be paid in cash prior to the Closing.

     4.18 Transactions with Interested Persons. Neither DNFC nor any
stockholder, officer, supervisory employee or director of DNFC or DN or, to the
knowledge of DN and DNFC, any of their respective spouses or family members,
owns directly or indirectly on an individual or joint basis any material
interest in, or serves as an officer or director or in another similar capacity
of, any competitor or supplier of DNFC, or any organization which has a
material contract or arrangement with DNFC.

     4.19 Employees; Labor Matters. A complete list of employees of DNFC is
contained in Schedule 4.19(a) hereto, together with their current position and
compensation. DNFC is not delinquent in payments to any of its employees for
any wages, salaries, commissions, bonuses or other direct compensation for any
services performed for it to the date hereof or amounts required to be
reimbursed to such employees. Upon termination of the employment of any of said
employees, neither DNFC nor Epyx will by reason of the transactions
contemplated under this Agreement or anything done prior to the Closing be
liable to any of said employees for so-called "severance pay" or any other
payments, except as set forth in Schedule 4.19(b). Neither DNFC nor DN has any
policy, practice, plan or program of paying any form of severance compensation
in connection with the termination of employment, except as set forth in said
Schedule. DNFC is in compliance with all applicable laws and regulations
respecting labor, employment, fair employment practices, work place safety and
health, terms and conditions of employment, and wages and hours. There are no
charges of employment discrimination or unfair labor practices, nor are there
any strikes, slowdowns, stoppages of work, or any other concerted interference
with normal operations which are existing, pending or threatened against or
involving DNFC. There are no grievances, complaints or charges that have been
filed against DNFC, and there is no arbitration or similar proceeding pending
and no claim therefor has been asserted. No collective bargaining agreement is
in effect or is currently being or is about to be negotiated by DNFC. Neither
DNFC nor DN has received any information indicating that any of its employment
policies or practices is currently being audited or investigated by any
domestic or foreign government agency. No circumstances have arisen under which
DNFC is likely to be required to pay damages for wrongful dismissal, to make
any statutory redundancy payment or make or pay any compensation in respect of
unfair dismissal, or make any other payment under any employment protection or
other employment statutes, treaties, regulations, by-laws, codes or orders, or
to reinstate or re-engage any former employee.

     4.20 Environmental Matters.

          (a) DNFC is in compliance with all Environmental Laws applicable to
     the DNFC Business. DNFC has all permits necessary under any Environmental
     Law to conduct the DNFC Business as presently conducted. There is no suit,
     action, claim, arbitration, administrative, governmental investigation
     (including, but not limited to, requests for information) or other legal
     proceeding pending or, to the best knowledge of DNFC and DN, threatened,
     which relates to the ownership, conduct or operation of the DNFC Business
     and which arises under Environmental Law or which is reasonably likely to
     give rise to an Environmental Liability.

                                      15
<PAGE>

          (b) For purposes of this Section 4.20, the following terms shall have
     the meanings set forth below:

               (i) "Environmental Laws" means any and all federal, state, local
          and foreign statutes, laws, judicial decisions, regulations,
          ordinances, rules, judgments, orders, decrees, codes, plans,
          injunctions, permits, licenses, agreements and governmental
          restrictions, relating to human health, safety, the environment or to
          emissions, discharges or releases of pollutants, contaminants or
          other hazardous substances or wastes into the environment, including
          without limitation ambient air, surface water, ground water or land,
          or otherwise relating to the manufacture, processing, distribution,
          use, treatment, storage, disposal, transport or handling of
          pollutants, contaminants or other hazardous substances or wastes or
          the clean-up or other remediation thereof.

               (ii) "Environmental Liabilities" means any and all liabilities
          of or relating to the DNFC Business which arise under or relate to
          matters covered by Environmental Laws.

ARTICLE V.  REPRESENTATIONS AND WARRANTIES OF DN

     DN hereby represents and warrants to ADL and Epyx as follows:

     5.1 Corporate Organization. DN is duly incorporated, validly existing and
in good standing under the laws of The Netherlands. DN has the requisite
corporate power and authority to conduct its business as it is currently being
conducted. By the date of execution of this Agreement, the corporate name of DN
is still "Androma B.V.", while the name "New DeNora New Energy Investments" is
its registered tradename, as confirmed by the certificate of the Amsterdam
Chamber of Commerce dated March 30, 2000, which has been delivered to ADL and
to Epyx prior to the execution of this Agreement. All requested corporate
action and resolutions to record "De Nora New Energy Investments" as the proper
corporate name of the company, have been adopted by DN.

     5.2 Corporate Power and Authority; Non-Contravention. DN has all requisite
corporate power and authority to execute and deliver this Agreement and each
agreement, document and instrument to be executed and delivered by DN pursuant
to or as contemplated by this Agreement (collectively, the "DN Agreements") and
to carry out the transactions contemplated hereby and thereby. The execution
and delivery of this Agreement and the DN Agreements by DN and the consummation
by DN of the transactions contemplated hereby and thereby have been duly
authorized by all necessary corporate action on the part of DN, including the
approval of DN's Board of Directors, and no other corporate action or
proceeding on the part of DN is necessary to authorize the execution and
delivery by DN of this Agreement and the DN Agreements or the consummation by
DN of the transactions contemplated hereby and thereby. This Agreement and each
of the DN Agreements constitute the valid and binding obligation of DN,
enforceable in accordance with their respective terms. The execution, delivery
and performance by DN of this Agreement and each of the DN Agreements:

                                      16
<PAGE>

               (i) do not and will not conflict with or violate any provision
          of the charter documents of DN;

               (ii) do not and will not violate any laws, rules or regulations
          of The Netherlands or any other jurisdiction applicable to DN, or
          require DN to obtain any approval, consent or waiver of, or to make
          any filing with, any Person that has not been obtained or made; and

               (iii) do not and will not result in a breach of, constitute a
          default under, accelerate any obligation under or give rise to a
          right of termination of any indenture or loan or credit agreement or
          any other agreement, contract, instrument, mortgage, lien, lease,
          permit, license, authorization, order, writ, judgment, injunction or
          decree to which DN is a party or by which DN or its property is
          bound, or result in the creation or imposition of any mortgage,
          pledge, lien, security interest or other charge or encumbrance on any
          of the assets or properties of DN.

     5.3 Transfer of Assets. DN has transferred to DNFC all of DN's right,
title and interest to the assets of DN used primarily in the DNFC Business,
including without limitation, the DNFC Intellectual Property and all DN
personnel dedicated to the DNFC Business. DN has transferred to DNFC all of
DN's rights and obligations under the contracts and agreements listed on
Schedule 4.5 or, to the extent that such rights and obligations are not
transferable, DN has entered into arrangements with DNFC to provide that DNFC
shall receive the benefits and burdens of such contracts and agreements.

     5.4 Investment Representations.

          (a) DN, by reason of its business and financial experience, has such
     knowledge, sophistication and experience in business and financial matters
     as to be capable of evaluating the merits and risks of its investment in
     the DN Shares, and is purchasing the DN Shares hereunder for its own
     account, for investment only and not with a view to, or any present
     intention of, effecting a distribution of such securities or any part
     thereof. DN acknowledges that the DN Shares to be purchased hereunder have
     not been registered under the Securities Act or the securities laws of any
     state or other jurisdiction and cannot be disposed of unless they are
     subsequently registered under the Securities Act and any applicable state
     laws or exemption from such registration is available.

          (b) DN is an "accredited investor" as that term is defined in Rule
     501 promulgated under the Securities Act.

          (c) DN has had the opportunity to ask questions and to
receive answers concerning the financial condition, operations and prospects of
Epyx and the terms and conditions of DN's investment.

ARTICLE VI.  REPRESENTATIONS AND WARRANTIES OF ADL

     ADL hereby represents and warrants to DN and DNFC as follows:

                                      17
<PAGE>

     6.1 Corporate Organization. ADL is duly incorporated, validly existing and
in good standing under the laws of the Commonwealth of Massachusetts. ADL has
the requisite corporate power and authority to conduct its business as it is
currently being conducted.

     6.2 Corporate Power and Authority; Non-Contravention. ADL has all
requisite corporate power and authority to execute and deliver this Agreement
and each agreement, document and instrument to be executed and delivered by ADL
pursuant to or as contemplated by this Agreement (collectively, the "ADL
Agreements") and to carry out the transactions contemplated hereby and thereby.
The execution and delivery of this Agreement and the ADL Agreements by ADL and
the consummation by ADL of the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate action on the part of ADL,
including the approval of ADL's Board of Directors, and no other corporate
action or proceeding on the part of ADL is necessary to authorize the execution
and delivery by ADL of this Agreement and the ADL Agreements or the
consummation by ADL of the transactions contemplated hereby and thereby. This
Agreement and each of the ADL Agreements constitute the valid and binding
obligation of ADL, enforceable in accordance with their respective terms. The
execution, delivery and performance by ADL of this Agreement and each of the
ADL Agreements:

               (i) do not and will not conflict with or violate any provision
          of the Articles of Organization or By-Laws of ADL;

               (ii) do not and will not violate any laws, rules or regulations
          of the United States or any state or other jurisdiction applicable to
          ADL, or require ADL to obtain any approval, consent or waiver of, or
          to make any filing with, any Person that has not been obtained or
          made; and

               (iii) do not and will not result in a breach of,
         constitute a default under, accelerate any obligation under or give
         rise to a right of termination of any indenture or loan or credit
         agreement or any other agreement, contract, instrument, mortgage,
         lien, lease, permit, license, authorization, order, writ, judgment,
         injunction or decree to which ADL is a party or by which ADL or its
         property is bound, or result in the creation or imposition of any
         mortgage, pledge, lien, security interest or other charge or
         encumbrance on any of the assets or properties of ADL.

     6.3 Transfer of Assets. ADL has transferred to Epyx all of ADL's right,
title and interest to the assets of ADL used primarily in the Epyx Business,
other than the two government contracts listed on Schedule 6.3 hereto,
including without limitation, the Epyx Intellectual Property and all ADL
personnel dedicated to the Epyx Business. ADL has transferred to Epyx all of
ADL's rights and obligations under the contracts and agreements listed on
Schedule 3.5 (other than the two government contracts listed on Schedule 6.3)
or, to the extent that such rights and obligations are not transferable, ADL
has entered into arrangements with Epyx to provide that Epyx shall receive the
benefits and burdens of such contracts and agreements.

     6.4 Investment Representations.

                                      18
<PAGE>

          (a) ADL, by reason of its business and financial experience, has such
     knowledge, sophistication and experience in business and financial matters
     as to be capable of evaluating the merits and risks of its investment in
     New DeNora Epyx, and has purchased its shares of New DeNora Epyx for its
     own account, for investment only and not with a view to, or any present
     intention of, effecting a distribution of such securities or any part
     thereof. ADL acknowledges that such shares have not been registered under
     the Securities Act or the securities laws of any state or other
     jurisdiction and cannot be disposed of unless they are subsequently
     registered under the Securities Act and any applicable state laws or
     exemption from such registration is available.

          (b) ADL is an "accredited investor" as that term is defined in Rule
     501 promulgated under the Securities Act.

          (c) ADL has had the opportunity to ask questions and to receive
     answers concerning the financial condition, operations and prospects of
     New DeNora Epyx and DNFC and the terms and conditions of ADL's investment.

ARTICLE VII.  BUSINESS OF NEW DENORA EPYX AND FUNDING

     7.1 Business of New DeNora Epyx.

          (a) DN and ADL agree that the primary mission of New DeNora Epyx will
     be the development of multifuel power modules as follows:

               (i) Develop and manufacture world class commercial multifuel
          fuel processors and stacks (hydrogen and reformate operation) for
          micropower and mobile applications; and

               (ii) Develop expertise for integration of fuel processors and
          stacks in power modules and/or fully integrate units (directly or
          with external technological partners)

          (b) DN and ADL agree that the key objectives of New DeNora Epyx to be
     achieved are:

               (i) MicroPower(TM)Market.

                    (1) Residential Sector: Design manufacture and test of 100,
               5kW-class MicroPower prototype units for residential markets of
               interest in the near term.

                    (2) Premium/Portable Power Sector: Design manufacture and
               test approximately ten 1kW- class prototype units for portable
               power applications of interest in the near term.

                                      19
<PAGE>

                    (3) Commercial/Industrial Sector: Implement system studies,
               develop stacks and system integration expertise (with selected
               industrial partners) for applications of hydrogen recovery
               (industrial cogeneration). System studies will include the
               commercial building market up to 100 kW.

               (ii) Transportation Market. Develop and demonstrate fuel
          processors and stacks for mobile applications in the frame of funded
          projects.

          (c) DN and ADL do not intend to pursue component activities at this
     time, but the Board may change the business focus of New DeNora Epyx or
     any of the foregoing business purposes of New DeNora Epyx at any time or
     from time to time.

     7.2 Facilities and Services. New DeNora Epyx will use the present
facilities of Epyx in Cambridge, Massachusetts and DNFC will use the present
facilities of DNFC in Milan, Italy for early stage manufacturing and assembly
activities. ADL will license such facilities to New DeNora Epyx pursuant to the
ADL License and Services Agreement, and DN, directly or through any of its
Affiliates, will lease or sublease such facilities to DNFC pursuant to existing
agreements with DNFC. The Board will agree on new facilities when larger
volumes of fuel cells are required by the market. DN and ADL shall provide
services to New DeNora Epyx pursuant to the terms of the DN Services Agreement
and the ADL License and Services Agreement, respectively. The Board may elect
at any time or from time to time to discontinue the use of any or all of such
services.

     7.3 Marketing. On a priority basis, New DeNora Epyx will identify
appropriate distribution channels and present them to the Board for approval.
New DeNora Epyx will take the lead in identifying a first-class distribution
channel in the United States, and DNFC will take the lead in identifying a
first-class distribution channel in Europe. Asian distribution channels will be
identified jointly.

     7.4 Funding.

          (a) New DeNora Epyx shall be funded by the Stockholders in accordance
     with this Section 7.4 and the then current Operating Plan. DN shall be
     responsible for 50% of the funding of New DeNora Epyx and ADL shall be
     responsible for the other 50% of the funding of New DeNora Epyx.

          (b) The operations of New DeNora Epyx shall be funded as follows: Not
     later than April 10, 2000, each of ADL and DN shall pay to New DeNora Epyx
     three million US dollars (US$3,000,000) by wire transfer of immediately
     available funds. Such funds shall be used by New DeNora Epyx in accordance
     with the then-current Operating Plan, and shall be treated as additional
     paid in capital. Each of ADL and DN hereby further agree to provide an
     additional eight million US dollars ($8,000,000) by December 31, 2000 in
     accordance with this Section 7.4(b). From time to time after the date
     hereof, upon resolution duly approved by the Board, ADL and DN shall
     contribute additional funds to New DeNora Epyx in order for New DeNora
     Epyx to fund its operations pursuant to the then-current Operating Plan.
     All such amounts shall be funded equally and simultaneously by ADL and DN,
     and shall be treated as

                                      20
<PAGE>

     paid in capital. In the event that at October 15, 2000, the Board
     determines that an IPO (as defined in Section 5.10 of the Stockholders'
     Agreement) will not be completed by December 31, 2000 for any reason or
     that funding in excess of the aggregate US$22,000,000 provided for above
     is required, the Board will meet to determine the amount of additional
     funding necessary and the mechanism for providing such funds to New DeNora
     Epyx. DNFC shall be funded by New DeNora Epyx in accordance with the
     then-current Operating Plan and, in any case, in such a manner as to
     comply with any mandatory legal requirements imposed by the laws of Italy,
     and otherwise as directed from time to time by the Board of Directors of
     DNFC.

          (c) New DeNora Epyx shall use all amounts funded by the Stockholders
     in accordance with the then-current Operating Plan.

ARTICLE VIII.  CONDITIONS PRECEDENT TO CLOSING

     8.1 Conditions Precedent to Obligations of DN. The obligations of DN to
consummate the transactions contemplated by this Agreement are subject to the
satisfaction of the following conditions, at or prior to the Closing:

          (a) All covenants, agreements, obligations and conditions contained
     in this Agreement to be performed or complied with by Epyx and ADL on or
     prior to the Closing Date shall have been performed or complied with in
     all respects.

          (b) At the Closing Date, the issuance of the DN Shares to DN shall be
     legally permitted by all laws and regulations to which the parties hereto
     are subject.

          (c) DN shall have received from Epyx and ADL such documents with
     respect to the legal existence and authority of Epyx and ADL as DN shall
     reasonably request.

          (d) DN shall have received a legal opinion from Hale and Dorr LLP,
     substantially in the form attached hereto as Exhibit A.

     8.2 Conditions Precedent to Obligations of ADL. The obligations of ADL to
consummate the transactions contemplated by this Agreement are subject to the
satisfaction of the following conditions, at or prior to the Closing:

          (a) All covenants, agreements and conditions contained in this
     Agreement to be performed or complied with by DN and DNFC on or prior to
     the Closing Date shall have been performed or complied with in all
     respects.

          (b) At the Closing Date, the issuance of the DN Shares to DN and the
     transfer of the shares of DNFC to Epyx shall be legally permitted by all
     laws and regulations to which the parties hereto are subject.

          (c) ADL shall have received from DN and DNFC such documents with
     respect to the legal existence and authority of DN and DNFC as ADL shall
     reasonably request.

                                      21
<PAGE>

          (d) ADL shall have received a legal opinion from Studio Legale
     Cannata, Pierallini e Associati, substantially in the form attached hereto
     as Exhibit B.

          (e) ADL and Epyx shall have entered into a license agreement,
     substantially in the form attached hereto as Exhibit C (the "License
     Agreement").

     8.3 Conditions Precedent to Obligations of DN and ADL. The obligations of
DN and ADL to consummate the transactions contemplated by this Agreement are
subject to the satisfaction of the following conditions, at or prior to the
Closing:

          (a) DN and ADL shall have agreed on the initial Operating Plan,
     attached hereto as Exhibit D.

          (b) DN, ADL and New DeNora Epyx shall have entered into a
     stockholders' agreement, substantially in the form attached hereto as
     Exhibit E (the "Stockholders' Agreement").

          (c) ADL and New DeNora Epyx shall have entered into a license
     agreement for space and services in the ADL facility in Cambridge,
     Massachusetts, substantially in the form attached hereto as Exhibit F (the
     "ADL License and Services Agreement").

          (d) DN, directly or through any of its Affiliates, and DNFC shall
     have entered into a services agreement, substantially in the form attached
     hereto as Exhibit G (the "DN Services Agreement").

          (e) Each party shall have made all filings with and
notifications of governmental authorities, regulatory agencies and other
entities required to be made by such party in connection with the execution and
delivery of this Agreement and the performance of the transactions contemplated
hereby; and each party shall have received all authorizations, waivers from all
third parties, including, without limitation, applicable governmental
authorities, regulatory agencies, lessors, lenders and contract parties,
required to permit the consummation of the transactions contemplated by this
Agreement.

          (f) The transactions contemplated by this Agreement shall have been
     approved by the Board of Directors of each party and, if required, by the
     stockholders of each party.

ARTICLE IX.  COVENANTS OF DN AND ADL

     9.1 Noncompetition by ADL.

          (a) For a period of four (4) years after the date hereof, ADL, for
     itself and each of its subsidiaries and Affiliates, agrees that it will
     not perform any work in the reformate fueled direct hydrogen or direct
     methanol fueled PEMFC systems field (the "Field") in competition with New
     DeNora Epyx, except that ADL may work unrestricted in the fields of use

                                      22
<PAGE>

     in which it has been provided a license pursuant to the License Agreement.
     The foregoing shall not prevent ADL from continuing to work under the
     following existing government sponsored projects, including any extensions
     thereof: (1) "Design of a 50 kw Stationary PEMFC System," and (2) "Design
     of next generation of PEMFC stacks with clearly superior hydrogen
     utilization." In the event that ADL acquires rights in intellectual
     property in the Field arising out of the foregoing projects, ADL agrees to
     grant to New DeNora Epyx a royalty-free, non-exclusive license in such
     intellectual property. Neither ADL nor any of its Affiliates shall license
     any such intellectual property to fuel cell companies other than New
     DeNora Epyx without approval of the Board (excluding the directors
     appointed by ADL). The provisions of this Section 9.1(a) also shall not
     prevent ADL from owning beneficially or of record up to five percent (5%)
     of the outstanding securities of a publicly-held corporation which engages
     in any competing activity in the Field.

          (b) DN agrees that ADL can conduct internal projects in the Field,
     and, provided that ADL complies with the procedure set forth in the
     following five sentences, ADL may work on U.S. government funded projects
     in the Field. If ADL desires to work on U.S. government funded projects in
     the Field, ADL shall provide written notice thereof to New DeNora Epyx
     describing the project. New DeNora Epyx shall have fifteen (15) days from
     receipt of such notice to elect to pursue such project on its own. If New
     DeNora Epyx informs ADL in writing that it has elected to pursue such
     project, ADL shall not be permitted to pursue such project. If New DeNora
     Epyx informs ADL in writing that it has elected not to pursue such project
     or if New DeNora Epyx fails to respond within such 15-day period, ADL
     shall be permitted to pursue such project. In the event that ADL acquires
     rights in intellectual property in the Field arising out of the foregoing
     work, ADL agrees to grant to New DeNora Epyx a royalty-free, non-exclusive
     license and to provide New DeNora Epyx with a right of first refusal to
     take a mutually agreeable exclusive royalty bearing license.

     9.2 Noncompetition by DN.

          (a) For a period of four (4) years after the date hereof, DN, for
     itself and each of its subsidiaries and Affiliates, agrees that it will
     not perform any work in the Field in competition with New DeNora Epyx. The
     foregoing shall not prevent DN from continuing its current research and
     manufacture of catalysts, provided that supply of catalysts by DN or its
     Affiliates to fuel cell companies other than New DeNora Epyx will require
     approval of the Board (excluding the directors appointed by DN). The
     foregoing also shall not prevent DN from owning beneficially or of record
     up to five percent (5%) of the outstanding securities of a publicly-held
     corporation which engages in any competing activity in the Field.

          (b) ADL agrees that DN, directly or through any of its Affiliates,
     can conduct internal projects in the Field, and, provided that DN complies
     with the procedure set forth in the following five sentences, DN may work
     on Italian or EC government funded projects in the Field. If DN desires to
     work on Italian or EC government funded projects in the Field, DN shall
     provide written notice thereof to New DeNora Epyx describing the project.
     New DeNora Epyx shall have fifteen (15) days from receipt of such notice
     to elect to pursue such project on its own. If New DeNora Epyx informs DN
     in writing that it has elected to pursue such project, DN shall not be
     permitted to pursue such project. If New DeNora Epyx informs DN in writing
     that it has

                                      23
<PAGE>

     elected not to pursue such project or if New DeNora Epyx fails to respond
     within such 15-day period, DN shall be permitted to pursue such project.
     In the event that DN acquires rights in intellectual property in the Field
     arising out of the foregoing work, DN agrees to grant to New DeNora Epyx a
     royalty-free, non-exclusive license and to provide New DeNora Epyx with a
     right of first refusal to take a mutually agreeable exclusive royalty
     bearing license.

     9.3 Supply of Catalysts. DN will supply catalysts and related technology
to New DeNora Epyx on favorable terms to be approved by the Board (excluding
the directors appointed by DN).

     9.4 Equity Participation Plan. As soon as practicable after the Closing,
the Board shall adopt a stock option or other equity participation plan for the
employees of New DeNora Epyx and its subsidiaries and Affiliates, and shall
agree on which New DeNora Epyx employees initially will receive options or
rights under such plan. The aggregate pool of equity available for grant under
such plan shall be up to 15% of the Common Stock, on a fully diluted basis, and
the pool of equity available for the initial grants to New DeNora Epyx
employees shall be between 3% and 4% of the Common Stock, on a fully diluted
basis.

ARTICLE X.  INDEMNIFICATION

     10.1 Agreement to Indemnify.

          (a) From and after the Closing, ADL agrees to indemnify, defend and
     hold harmless DN and New DeNora Epyx from and against any and all demands,
     claims, losses, damages, costs and expenses, including without limitation
     interest, costs, liabilities, fines, penalties and reasonable fees of
     attorneys and consultants (collectively, "Damages"), asserted against,
     imposed upon or incurred or suffered by DN or New DeNora Epyx as a result
     of or arising from any breach of any representation, warranty, covenant or
     agreement of ADL contained in this Agreement.

          (b) The aggregate liability of ADL with respect to claims for
     indemnification pursuant to Section 10.1(a) above shall not exceed the
     lesser of (i) the aggregate dollar amount which, as of the date of any
     such claim, DN shall have contributed to New DeNora Epyx for funding of
     New DeNora Epyx's operations and (ii) twenty-five million dollars
     ($25,000,000). ADL shall have no liability in respect of claims for
     indemnification pursuant to Section 10.1(a) above (i) unless and until the
     total Damages suffered by DN and/or New DeNora Epyx with respect to such
     claims exceeds $100,000, and then only to the extent of such excess, and
     (ii) unless written notice of such claim, in accordance with the
     provisions of Section 10.2, shall have been given to ADL on or before the
     date which is fifteen (15) months after the Closing Date.

          (c) From and after the Closing, DN agrees to indemnify, defend and
     hold harmless ADL and New DeNora Epyx from and against any and all
     Damages, asserted against, imposed upon or incurred or suffered by ADL or
     New DeNora Epyx as a result of or arising from any breach of any
     representation, warranty, covenant or agreement of DN contained in this
     Agreement.

                                      24
<PAGE>

          (d) The aggregate liability of DN with respect to claims for
     indemnification pursuant to Section 10.1(c) above shall not exceed the
     lesser of (i) the aggregate dollar amount which, as of the date of any
     such claim, ADL shall have contributed to New DeNora Epyx for funding of
     New DeNora Epyx's operations and (ii) twenty-five million dollars
     ($25,000,000). DN shall have no liability in respect of claims for
     indemnification pursuant to Section 10.1(c) above (i) unless and until the
     total Damages suffered by ADL and/or New DeNora Epyx with respect to such
     claims exceeds $100,000, and then only to the extent of such excess, and
     (ii) unless written notice of such claim, in accordance with the
     provisions of Section 10.2, shall have been given to DN on or before the
     date which is fifteen (15) months after the Closing Date.

     10.2 Procedure for Indemnification.

          (a) In the event that any indemnified party receives written notice
     of the commencement of any action or proceeding, the assertion of any
     claim by a third party or the imposition of any penalty or assessment for
     which indemnity may be sought pursuant to this Article X (a "Third Party
     Claim"), and such indemnified party intends to seek indemnity pursuant to
     this Article X, such indemnified party shall promptly provide the
     indemnifying party with notice of such action, proceeding, claim, penalty
     or assessment, and such indemnifying party shall, upon receipt of such
     notice, be entitled to participate in or, at the indemnifying party's
     option, assume the defense, appeal or settlement of such action,
     proceeding, claim, penalty or assessment with respect to which such
     indemnity has been invoked with counsel selected by it and approved by the
     indemnified party (such approval not to be unreasonably withheld), and
     such indemnified party will fully cooperate with the indemnifying party in
     connection therewith; provided that such indemnified party shall be
     entitled to employ its own counsel to represent it if, in such indemnified
     party's reasonable judgment, a conflict of interest between the
     indemnifying party and the indemnified party exists in respect of such
     claim, or if the defendants in, or targets of, any such action or
     proceeding include both an indemnified party and an indemnifying party and
     such indemnified party shall have reasonably concluded that there may be
     legal defenses available to it that are different from or additional to
     those available to the indemnifying party, and in any such event the
     reasonable fees and expenses of such separate counsel shall be paid by the
     indemnifying party. In the event that the indemnifying party fails to
     assume the defense, appeal or settlement of such action, proceeding,
     claim, penalty or assessment within 20 days after receipt of notice
     thereof from such indemnified party, such indemnified party shall have the
     right to undertake the defense or appeal of or settle or compromise such
     action, proceeding, claim, penalty or assessment on behalf of and for the
     account and risk of the indemnifying party. The indemnifying party shall
     not settle or compromise any such action, proceeding, claim, penalty or
     assessment without the indemnified party's prior written consent, unless
     such settlement or compromise provides solely for the payment of money and
     provides a complete release of, or dismissal with prejudice of claims
     against, the indemnified party. If written notice of a Third Party Claim
     is not provided promptly as required by this Section 10.2(a), the
     indemnified party shall nonetheless be entitled to indemnification by the
     indemnifying party except to the extent that the indemnifying party is
     prejudiced by such late receipt of such written notice.

                                      25
<PAGE>

          (b) Any indemnifiable claim that is not a Third Party Claim shall be
     asserted by written notice to the indemnifying party from the indemnified
     party, which notice shall be provided promptly after the indemnifying
     party becomes aware of the claim. If the indemnifying party does not
     respond to such notice within 60 days, it shall have no further right to
     contest the validity of such claim and shall pay such claim to the
     indemnified party within 30 days after the expiration of such 60 day
     period.

ARTICLE XI.  MISCELLANEOUS PROVISIONS

     11.1 Expenses. Each party shall bear its own costs and expenses, including
the reasonable fees and disbursements of legal counsel and other professionals,
incurred in connection with the transactions contemplated by this Agreement.

     11.2 Legend on Securities. DN acknowledges and agrees that the following
legend shall be typed on each certificate evidencing any of the securities
issued hereunder held at any time by DN:

     THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED,
HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT PURSUANT TO (1) A REGISTRATION
STATEMENT WITH RESPECT TO SUCH SECURITIES WHICH IS EFFECTIVE UNDER SUCH ACT OR
(2) AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER SUCH ACT RELATING TO THE
DISPOSITION OF SECURITIES. THESE SECURITIES ARE ALSO SUBJECT TO THE PROVISIONS
OF A STOCKHOLDERS' AGREEMENT, DATED AS OF APRIL 4, 2000, INCLUDING CERTAIN
RESTRICTIONS ON TRANSFER SET FORTH THEREIN. A COMPLETE AND CORRECT COPY OF SUCH
AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF NEW DENORA
EPYX AND WILL BE FURNISHED UPON WRITTEN REQUEST AND WITHOUT CHARGE.

     11.3 Amendment and Waiver. Any party may waive any provision hereof
intended solely for its benefit in writing. No failure or delay on the part of
any party hereto in exercising any right, power or remedy hereunder shall
operate as a waiver thereof. Except as otherwise expressly provided herein, the
remedies provided for herein are cumulative and are not exclusive of any
remedies that may be available to any party hereto at law or in equity or
otherwise. This Agreement may not be amended without the prior written consent
of each of the parties hereto.

     11.4 Notices. All notices and other communications shall be in writing and
shall be deemed given if delivered by hand, sent via facsimile, sent via a
reputable nationwide courier service or mailed by registered mail (return
receipt requested) to the parties at the following addresses (or at such other
address for a party as shall be specified by like notice) and shall be deemed
given on the date on which so hand-delivered, the date on which receipt of the
facsimile is acknowledged, the next business day following the date on which so
sent or on the third business day following the date on which so mailed, as the
case may be:

                                      26
<PAGE>

         If to ADL:
                  Acorn Park
                  Cambridge, MA 02140
                  Attention:  General Counsel
                  Facsimile:  +1.617.498-7116

         If to DN:
                  Herengracht 548
                  Postbus 990
                  1000AZ Amsterdam, The Netherlands
                  Attention:  Board of Managing Directors
                  Facsimile:  +31.20.625.8274

         If to DNFC:
                  Via Bistolfi 35
                  20134 Milano, Italy
                  Attention:  Chief Executive Officer
                  Facsimile:  +39.02.2129.2403

         with a copy to:
                  Avv. Giuseppe Cambareri
                  Via dei Giardini 10
                  20121 Milano, Italy

                  Facsimile:  +39.02.6555.152

         If to Epyx:
                  Acorn Park
                  Cambridge, MA 02140
                  Attention:  Chief Operating Officer
                  Facsimile:  (617) 498-6655

     11.5 Headings. The Article and Section headings used or contained in this
Agreement are for convenience of reference only and shall not affect the
construction of this Agreement.

     11.6 Counterparts. This Agreement may be executed in one or more
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which together
shall be deemed to constitute one and the same agreement.

     11.7 Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions contained herein shall not be in any way impaired
thereby, it being intended that all of the rights and privileges of the parties
hereto shall be enforceable to the fullest extent permitted by law.

                                      26
<PAGE>

     11.8 Entire Agreement. This Agreement and the other agreements
contemplated hereby are intended by the parties as a final expression of their
agreement and intended to be complete and exclusive statement of the agreement
and understanding of the parties hereto in respect of the subject matter
contained herein and therein. This Agreement and the other agreements
contemplated hereby (including the exhibits hereto) supersede all prior
agreements and understandings between the parties with respect to such subject
matter.

     11.9 Adjustments. All references to share prices and amounts herein shall
be equitably adjusted to reflect stock splits, stock dividends,
recapitalizations and similar changes affecting the capital stock of New DeNora
Epyx and DNFC.

     11.10 Law Governing. This Agreement shall be construed and enforced in
accordance with and governed by the laws of The Commonwealth of Massachusetts
(without giving effect to principles of conflicts of law). Any controversy,
claim or dispute arising out of or relating to this Agreement, the
Stockholders' Agreement or any other agreement or instrument delivered in
connection therewith shall be submitted to and resolved exclusively by
arbitration in accordance with the rules of the American Arbitration
Association in effect on the date thereof. Judgment upon the award rendered by
the arbitrator(s) in accordance with said rules may be entered and enforced in
any court of competent jurisdiction and, for such purpose, each party hereby
waives trial by jury in any action relating thereto and consents to the
jurisdiction of any Massachusetts court (federal or state). Any such
arbitration proceedings shall be held in Boston, Massachusetts.

     11.11 Cooperation. Each of New DeNora Epyx, DNFC, DN and ADL shall
cooperate with all reasonable requests of the others not inconsistent with the
terms of this Agreement or any other agreement entered into in connection
herewith to more effectively consummate the transactions contemplated hereby
and the transactions referred to herein and therein.

     11.12 Public Statements. No party shall issue any press release or
otherwise make any public statements with respect to this Agreement or the
transactions contemplated hereby without the prior written consent of the other
parties hereto. This provision shall not restrict a party from making an
announcement internally to its employees.

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

                                      DENORA NEW ENERGY INVESTMENTS B.V.
                                      (presently ANDROMA B.V.)

                                      By: /s/ Mauro Saponelli
                                         ---------------------------------------
                                         Mauro Saponelli
                                         Managing Director

                                      DENORA FUEL CELLS S.p.A.

                                      By: /s/ Franco Ladavas
                                         ---------------------------------------
                                         Franco Ladavas
                                         Chairman of the Board of Directors

                                      EPYX CORPORATION

                                      By: /s/ Mark A. Brodsky
                                         ---------------------------------------
                                         Mark A. Brodsky
                                         President

                                      ARTHUR D. LITTLE, INC.

                                      By: /s/ Lorenzo C. Lamadrid
                                         ---------------------------------------
                                          Lorenzo C. Lamadrid
                                          President and Chief Executive Officer

                                      29EXHIBIT 10.2
                            STOCKHOLDERS' AGREEMENT

     This Stockholders' Agreement is made as of April 4, 2000, by and among
DeNora New Energy Investments B.V., a company established under the laws of The
Netherlands and the parent company of DeNora Fuel Cells, S.p.A. ("DN"), Arthur
D. Little, Inc., a Massachusetts corporation ("ADL"), Amerada Hess Corporation,
a Delaware corporation ("Hess" and, together with ADL and DN, the
"Stockholders"), and Epyx Corporation, a Delaware corporation ("Epyx").

                              W I T N E S S E T H:

     WHEREAS, the Stockholders desire to provide for certain matters with
respect to their ownership of common stock of New DeNora Epyx Corporation
(formerly, Epyx Corporation, "New DeNora Epyx"), as well as for the management
and operations of New DeNora Epyx.

     NOW THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements hereinafter set forth, the parties hereto agree as follows:

ARTICLE I.  DEFINITIONS

     The following capitalized terms, as used in this Agreement, shall have the
meanings set forth below. Capitalized terms used herein without definition
shall have the meaning ascribed to such terms in that certain Investment and
Exchange Agreement dated as of the date hereof by and among DN, DeNora Fuel
Cells, S.p.A., ADL and Epyx (the "Investment Agreement").

     An "Affiliate" of any Person means a Person that directly or indirectly,
through one or more intermediaries, controls, is controlled by or is under
common control with the first mentioned Person. A Person shall be deemed to
control another Person if such first Person possesses directly or indirectly
the power to direct, or cause the direction of, the management and policies of
the second Person, whether through the ownership of voting securities, by
contract or otherwise.

     "Board" means the Board of Directors of New DeNora Epyx.

     "Commission" means the Securities and Exchange Commission.

     "Common Stock" means the Common Stock, par value $.01 per share, of New
DeNora Epyx, issued in accordance with and subject to the terms of the
Certificate of Incorporation of New DeNora Epyx, and any other common equity
securities now or hereafter issued by New DeNora Epyx, together with any other
shares of stock issued or issuable with respect thereto (whether by way of a
stock dividend, stock split or in exchange for or upon conversion of such
shares or otherwise in connection with a combination of shares,
recapitalization, merger, consolidation or other corporate reorganization).

                                       1
<PAGE>

     "Controlling Person" has the meaning set forth in Section 4.4.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time, and the rules and regulations promulgated thereunder.

     "Holder" has the meaning set forth in Section 4.1.

     "Person" means an individual, a corporation, an association, a
partnership, a limited liability company, an estate, a trust, and any other
entity or organization, governmental or otherwise.

     "Registrable Securities" has the meaning set forth in Section 4.2.

     "Securities Act" means the Securities Act of 1933, as amended from time to
time, and the rules and regulations promulgated thereunder.

     "Selling Holder" has the meaning set forth in Section 4.4.

     "Stock" means Common Stock and any other equity securities of New DeNora
Epyx.

     "Transfer" means any direct or indirect offer, transfer, donation, sale,
assignment, pledge, hypothecation, grant of a security interest in, conveyance
of a beneficial ownership or other right in, or other disposal or attempted
disposal of all or any portion of a security or of any rights. "Transferred"
means the accomplishment of a Transfer, and "Transferee" means the recipient of
a Transfer.

ARTICLE II.  ELECTION OF DIRECTORS OF NEW DENORA EPYX

     2.1 Voting of Shares for Election of Directors of New DeNora Epyx.

          (a) With respect to each election or removal of members of the Board
     (including, without limitation, any replacement members), whether at an
     annual or special meeting of stockholders or by written consent of
     stockholders, each of the Stockholders agrees to vote its Stock (and any
     shares of Stock over which it exercises voting control) and to take such
     other action as may be necessary to fix the number of Directors of New
     DeNora Epyx at eight (8), as indicated below, and to cause and maintain
     the nomination and election to the Board and to keep in office as such:

               (i) four (4) persons designated from time to time by DN (the "DN
          Directors");

               (ii) three (3) persons designated from time to time by ADL (the
          "ADL Directors"); and

               (iii) one (1) person designated from time to time by Hess (the
          "Hess Director").

<PAGE>

          (b) New DeNora Epyx shall nominate the DN Directors, the Hess
     Director and the ADL Directors for election to the Board. Each of DN, ADL
     and Hess further agrees to place at least one of the DN Directors, the
     Hess Director and one of the ADL Directors on each committee of the Board.
     The Chairman of the Board shall be nominated by ADL, subject to the
     approval of DN. The Chief Executive Officer of New DeNora Epyx shall be
     nominated by ADL, subject to the approval of DN, provided that upon the
     selection of a Chief Executive Officer, such officer shall become a member
     of the Board and will be one of the three ADL Directors.

     2.2 Vacancies; Removal. Each of the Stockholders agrees to vote its Stock
(and any shares of Stock over which it exercises voting control), to the extent
required by Section 2.1, in such manner as shall be necessary or appropriate so
as to ensure that any vacancy occurring for any reason in the Board shall be
filled so as to constitute the Board in accordance with Section 2.1 above. The
DN Directors only may be removed by DN, the Hess Director only may be removed
by Hess and the ADL Directors only may be removed by ADL, provided that each of
DN, Hess and ADL agrees to vote for the removal of any director upon the
request of the party which designated such director and for the election to the
Board of a substitute director designated by such party.

     2.3 Meetings; Expenses. The Board shall hold such number of meetings as
shall be determined by the Board. A quorum shall consist of four (4) Directors,
at least two of which shall be DN Directors and two of which shall be ADL
Directors. Meetings of the Board shall be convened in accordance with the
by-laws of New DeNora Epyx (attached hereto as Exhibit A), provided that in any
case a Board meeting shall be convened upon written request of at least two (2)
Directors, one of which is a DN Director and one of which is an ADL Director.
In such case, written notice of such meeting shall be delivered to each of the
other Directors at least seven (7) business days prior to the date of the
proposed meeting. In the event that the Hess Director is unavailable for any
meeting of the Board, Hess shall have the right to designate an alternate
Director for any such meeting, and such alternate Director shall have the same
rights, duties and obligations as the Hess Director. All Directors shall,
subject to reasonable substantiation and documentation be entitled to
reimbursement of out-of-pocket expenses incurred in attending each meeting of
the Board or any committee thereof or otherwise incurred in performing his or
her duties as a director of New DeNora Epyx (including, without limitation,
reasonable travel, lodging, meals and communication expenses).

     2.4 Deadlock.

          (a) If the Board, after a reasonable period of discussion at a duly
     constituted meeting or meetings thereof, is unable to resolve any issue
     before them, the resolution of which is necessary for the continued
     operation of the Business in a commercially reasonable manner and/or the
     Board is unable to agree upon any matter requiring special Board approval
     pursuant to Section 3.3 below, a Special Meeting of the Board to further
     consider the issue shall be scheduled and consideration of the matter
     shall be suspended until such Special Meeting which shall meet within
     seven (7) days to discuss the matter.

<PAGE>

          (b) If the Board, after a reasonable period of discussion at a
     Special Meeting called pursuant to Section 2.4(a), are unable to resolve
     the issue that necessitated such meeting, (i) a subsequent Special Meeting
     to further consider the issue shall be scheduled, (ii) consideration of
     the matter shall be suspended until such Special Meeting and (iii) the
     chief executive officers of DN, Hess and ADL (the "Senior Deadlock
     Committee") shall meet within twenty (20) days to discuss the matter. At
     the subsequent Special Meeting to discuss the issue, the Senior Deadlock
     Committee shall make a report to the Board, and the Board shall adopt any
     proposal agreed to unanimously by all members of the Senior Deadlock
     Committee.

          (c) During any period in which a deadlock continues, the Board shall
     continue to conduct the Business in good faith and to the best of their
     abilities consistent with past practices and the then current Operating
     Plan.

ARTICLE III.  COVENANTS OF NEW DENORA EPYX

     3.1 Financial and Other Information.

          (a) Accounts and Reports. New DeNora Epyx will maintain a standard
     system of accounts in accordance with generally accepted accounting
     principles consistently applied.

          (b) Annual, Quarterly and Monthly Financial Statements. New DeNora
     Epyx will deliver to each Stockholder: (i) within ninety (90) days after
     the end of each fiscal year, financial statements of New DeNora Epyx and
     its subsidiaries, if any, prepared in reasonable detail and in accordance
     with generally accepted accounting principles consistently applied, and
     certified by the principal financial officer of New DeNora Epyx that they
     are true and accurate in all material respects as of their respective
     dates, and (ii) copies of all financial statements and reports which New
     DeNora Epyx shall send to its stockholders or file with the Securities and
     Exchange Commission or any stock exchange on which any securities of New
     DeNora Epyx may be listed. New DeNora Epyx also will deliver to each such
     holder (x) within forty-five (45) days after the end of the first three
     quarters of each fiscal year, a copy of the consolidated balance sheet of
     New DeNora Epyx as of the end of such quarter and consolidated statements
     of income and of cash flows of New DeNora Epyx for the fiscal quarter and
     for the portion of the fiscal year ending on the last day of such quarter,
     each of the foregoing balance sheets and statements to set forth in
     comparative form the corresponding figures for the same period of the
     prior fiscal year, and (y) within twenty (20) days after the end of each
     calendar month, a copy of the consolidated balance sheet of New DeNora
     Epyx as of the end of such month and consolidated statements of income and
     of cash flows of New DeNora Epyx for such month and for the portion of the
     fiscal year ending on the last day of such month, each of the foregoing
     balance sheets and statements to set forth in comparative form the
     corresponding figures for the same period of the prior fiscal year;
     provided, however, that such financials may be subject to year-end
     adjustments and need not contain all footnotes required under generally
     accepted accounting principles, and to be certified, subject to normal
     year-end audit adjustments, by the principal financial officer of New
     DeNora Epyx that they are true and accurate in all material respects as of
     their respective dates.

<PAGE>

          (c) Operating Plan. The Operating Plan shall be revised at least
     annually or otherwise as directed by the Board. The adoption of the
     revised operating plan to supersede the Operating Plan shall be effective
     as and when approved by the Required Percentage (as defined below) of the
     Board.

          (d) Visits and Discussions. New DeNora Epyx will permit each
     Stockholder and its authorized representatives, at all reasonable times
     during normal business hours and as often as reasonably requested, to
     visit and inspect, at the expense of such Stockholder, any of the
     properties of New DeNora Epyx, including its books and records and lists
     of security holders, and to make extracts therefrom and to discuss the
     affairs, finances and accounts of New DeNora Epyx with its officers.

          (e) Confidentiality. Each Stockholder agrees to treat all non-public
     information provided to it by New DeNora Epyx, including without
     limitation all financial and other information provided to any such
     Stockholder pursuant to this Section 3.1, as confidential and will not
     convey any such information to any Person (other than such Stockholder's
     Affiliates, accountants, legal counsel and other similar representatives)
     without the prior written consent of New DeNora Epyx. The foregoing
     obligation of confidentiality shall not apply to information (i) which
     later becomes part of the public domain (other than as a result of a
     violation of this Section 3.1(e) by any such Stockholder); (ii) which is
     required to be disclosed to the extent necessary to enforce this
     Agreement; or (iii) which is required to be disclosed by law or
     governmental order or regulation, or subpoena or other legal process,
     provided that such Stockholder notifies New DeNora Epyx as soon as
     practicable prior to such disclosure, cooperates with New DeNora Epyx to
     preserve the confidentiality of such information, and uses commercially
     reasonable efforts to limit any such disclosure to the minimum disclosure
     necessary to comply with such law or governmental order or regulation, or
     subpoena or other legal process.

     3.2 Dealings with Affiliates and Others. New DeNora Epyx covenants that it
shall not, without the prior approval of an absolute majority of the Board,
enter into any transaction (including without limitation the purchase, sale,
rental or exchange of any property or services, or any loans, advances or
guarantees) with any stockholder, director, officer, agent, partner, employee
or affiliate of New DeNora Epyx or any of its stockholders, other than upon
fair and reasonable terms no less favorable to New DeNora Epyx than would be
obtained in a comparable arms-length transaction with any other Person not so
affiliated with New DeNora Epyx.

     3.3 Actions Requiring Special Board Approval.

          (a) Without the prior approval of the Required Percentage (as defined
     below) of the Board, acting by resolution at a duly called regular or
     special meeting of the Board or acting by written consent, New DeNora Epyx
     shall not:

               (i) merge or consolidate New DeNora Epyx with any other Person,
          or sell, assign, lease or otherwise dispose of or voluntarily part
          with the control of (whether in one transaction or in a series of
          transactions) all, or substantially all, of its assets or capital
          stock (whether now owned or hereinafter acquired) or sell, assign or
          otherwise dispose of (whether in one transaction or in a series of
          transactions) any asset or group of

<PAGE>

          assets which is material to the business or operations of New DeNora
          Epyx, or agree to do any of the foregoing, except for sales or other
          dispositions of assets in the ordinary course of business;

               (ii) amend the Certificate of Incorporation or By-laws of New
          DeNora Epyx;

               (iii) sell or issue to any Person any capital stock of New
          DeNora Epyx except pursuant to this Agreement or any approved stock
          option or other equity participation plan, or agree to do either of
          the foregoing;

               (iv) redeem, purchase or otherwise acquire for value any Common
          Stock or any other capital stock New DeNora Epyx except for
          repurchases of Common Stock pursuant to the terms of any approved
          stock option or other equity participation plan within the normal
          operation of such plan, or agree to do any of the foregoing;

               (v) declare or pay any dividend on any capital stock of New
          DeNora Epyx;

               (vi) liquidate, dissolve or commence proceedings in bankruptcy;

               (vii) approve the Operating Plan; or

               (viii) designate the individual to represent New DeNora Epyx in
          the shareholders meeting of DNFC and the instructions to be granted
          to such representative to vote at such meeting.

          (b) For purposes of this Section 3.3, "Required Percentage" shall
     mean: (i) seventy-five percent (rounded up to the nearest whole number) of
     the Board as long as the number of directors on the Board is eight (8) or
     less and (ii) sixty-six and two-thirds percent (rounded up to the nearest
     whole number) of the Board as long as the number of directors on the Board
     is nine (9) or more.

          (c) To the extent that any of the matters listed in Section 3.3(a)
     also require approval by the stockholders of New DeNora Epyx pursuant to
     the General Corporation Law of the State of Delaware or any other
     applicable law, such approval shall require the prior approval of
     sixty-six and two-thirds percent of the shares of Common Stock then
     outstanding, acting by resolution at a duly called regular or special
     meeting of the stockholders of New DeNora Epyx or acting by written
     consent.

     3.4 Access to Public Capital Market. New DeNora Epyx shall use
commercially reasonable efforts to access the public capital market no later
than December 31, 2000.

     3.5 Funding of Operations. The operations of New DeNora Epyx shall be
funded in accordance with the provisions of Section 7.4 of the Investment
Agreement.

<PAGE>

ARTICLE IV.  REGISTRATION RIGHTS

     4.1 "Piggy-Back" Registration Rights. If at any time or times after the
Closing Date, New DeNora Epyx shall determine or be required to register any
shares of its Common Stock for sale under the Securities Act (whether in
connection with a public offering of securities by New DeNora Epyx (a "primary
offering"), a public offering of securities by stockholders of New DeNora Epyx
(a "secondary offering"), or both, but not in connection with a registration
effected solely to implement an employee benefit plan or a transaction to which
Rule 145 or any other similar rule of the Commission under the Securities Act
is applicable), New DeNora Epyx will promptly give written notice (but in no
event less than 30 days before the anticipated filing date) thereof to DN, Hess
and ADL and any other Person to whom New DeNora Epyx has granted "piggy-back"
registration rights with respect to the Common Stock (referred to for purposes
of this Article IV collectively as the "Holders" and individually as a "Holder
) and such notice shall offer, subject to the terms and conditions hereof, each
such Holder the opportunity to register such Registrable Securities (as
hereinafter defined) as such Holder may request on the same terms and
conditions as the securities proposed to be sold by New DeNora Epyx or any
other Holder in such offering. If within 30 days after the delivery of such
notice by New DeNora Epyx one or more Holders of Registrable Securities request
in a writing delivered to New DeNora Epyx the inclusion of some or all of the
Registrable Securities (but not any other securities) held by them in such
registration, New DeNora Epyx will use its best efforts to effect the
registration under the Securities Act of all such Registrable Securities. In
the case of the registration of shares of Common Stock by New DeNora Epyx in
connection with an underwritten public offering, (i) New DeNora Epyx shall not
be required to include any Registrable Securities in such underwriting unless
the Holders thereof accept the terms of the underwriting as agreed upon between
New DeNora Epyx and the underwriter or underwriters selected by it, and (ii) if
the underwriter(s) determines that marketing factors require a limitation on
the number of Registrable Securities to be offered, New DeNora Epyx shall not
be required to register Registrable Securities of the Holders in excess of the
amount, if any, of shares of the capital stock which the principal underwriter
of such underwritten offering shall reasonably and in good faith agree to
include in such offering in excess of any amount to be registered for New
DeNora Epyx. In the event of any such limitation, the first shares to be
included in such registration shall be any shares to be registered for the
benefit of New DeNora Epyx and thereafter any shares which any other Holders
have requested to be registered shall be included on a pro rata basis, based
upon their respective holdings of Registrable Securities. All expenses relating
to the registration and offering of Registrable Securities pursuant to this
Section 4.1 (including the reasonable fees and expenses of not more than one
independent counsel for the Holders) shall be borne by New DeNora Epyx, except
that the Holders shall bear underwriting and selling commissions attributable
to their Registrable Securities being registered and any transfer taxes on
shares being sold by such Holders.

     4.2 Registrable Securities. For the purposes of this Article IV, the term
"Registrable Securities" and any and all references to Registrable Securities
held by any Person shall mean any shares of Common Stock purchased by, or
issued to, a Stockholder prior to, at or after the Closing, and shall also mean
shares of Common Stock issuable pursuant to the exercise of warrants, options
or other convertible or exchangeable security, to the extent then exercisable,
notwithstanding that any such warrant, option or other convertible security has
not been

<PAGE>

exercised; provided, however, that any Common Stock that is sold in a
registered sale pursuant to an effective registration statement under the
Securities Act or pursuant to Rule 144 thereunder, or that may be sold without
restriction (including volume limitations) pursuant to Rule 144(k) under the
Securities Act (as confirmed by an unqualified opinion of counsel to New DeNora
Epyx), shall not be deemed to be Registrable Securities.

     4.3 Further Obligations of New DeNora Epyx. Whenever under Section 4.1 New
DeNora Epyx is required hereunder to register any Registrable Securities, it
agrees that it shall also do the following:

          (a) Use its best efforts (with due regard to the management of the
     ongoing business of New DeNora Epyx) diligently to prepare and file with
     the Commission a registration statement and such amendments and
     supplements to said registration statement and the prospectus used in
     connection therewith as may be necessary to keep said registration
     statement effective and to comply with the provisions of the Securities
     Act with respect to the sale of securities covered by said registration
     statement for the lesser of (i) 180 days (or 120 days in the case of
     registration on Form S-3) or (ii) the period necessary to complete the
     proposed public offering;

          (b) Furnish to each selling Holder such copies of each preliminary
     and final prospectus and such other documents as such Holder may
     reasonably request to facilitate the public offering of its or his
     Registrable Securities;

          (c) Enter into any reasonable underwriting agreement required by the
     proposed underwriter for the selling Holders, if any, in such form and
     containing such terms as are customary; provided, however, that no Holder
     shall be required to make any representations or warranties other than
     with respect to its title to the Registrable Securities and any written
     information provided by the Holders to New DeNora Epyx, and if the
     underwriter requires that representations or warranties be made, New
     DeNora Epyx shall make all such representations and warranties relating to
     New DeNora Epyx reasonably required by such underwriter;

          (d) Use its reasonable best efforts to register or qualify the
     securities covered by said registration statement under the securities or
     "blue-sky" laws of such jurisdictions as any selling Holders may
     reasonably request, provided that New DeNora Epyx shall not be required to
     register or qualify the securities in any jurisdictions which require it
     to qualify to do business or subject itself to general service of process
     therein;

          (e) Immediately notify each selling Holder, at any time when a
     prospectus relating to such Holder's Registrable Securities is required to
     be delivered under the Securities Act, of the happening of any event as a
     result of which such prospectus contains an untrue statement of a material
     fact or omits any material fact necessary to make the statements therein
     not misleading, and, at the request of any such selling Holder, prepare a
     supplement or amendment to such prospectus so that, as thereafter
     delivered to the purchasers of such Registrable Securities, such
     prospectus will not contain any untrue statement of a material fact or
     omit to state any material fact necessary to make the statements therein
     not misleading;

<PAGE>

          (f) Cause all such Registrable Securities to be listed on each
     securities exchange or quoted in each quotation system on which similar
     securities issued by New DeNora Epyx are then listed or quoted (or, in the
     case of New DeNora Epyx's initial public offering, such exchange or
     quotation system as New DeNora Epyx may determine);

          (g) Otherwise use its best efforts to comply with all applicable
     rules and regulations of the Commission and make generally available to
     its security holders, in each case as soon as practicable, but not later
     than 45 days after the close of the period covered thereby (90 days in
     case the period covered corresponds to a fiscal year of New DeNora Epyx),
     an earnings statement of New DeNora Epyx which will satisfy the provisions
     of Section 9(a) of the Securities Act;

          (h) Obtain and furnish to each selling Holder, immediately prior to
     the effectiveness of the registration statement (and, in the case of an
     underwritten offering, at the time of delivery of any Registrable
     Securities sold pursuant thereto), a cold comfort letter from New DeNora
     Epyx's independent public accountants in the same form and covering the
     same matters as is typically delivered to underwriters and, in the event
     that an underwriter or underwriters have been retained in connection with
     such registration, such cold comfort letter to be provided to the selling
     Holders shall be the same cold comfort letter delivered to such
     underwriter or underwriters; and

          (i) Otherwise cooperate with the underwriter or underwriters, the
     Commission and other regulatory agencies and take all actions and execute
     and deliver or cause to be executed and delivered all documents necessary
     to effect the registration of any Registrable Securities under this
     Article IV.

     4.4 Indemnification; Contribution.

          (a) Incident to any registration statement referred to in this
     Article IV, and subject to applicable law, New DeNora Epyx will indemnify
     and hold harmless each underwriter, each Holder who offers or sells any
     such Registrable Securities in connection with such registration statement
     (including its partners (including partners of partners and stockholders
     of such partners), and directors, officers, employees and agents of any of
     them (a "Selling Holder"), and each person (a "Controlling Person") who
     controls any of them within the meaning of Section 15 of the Securities
     Act or Section 20 of the Exchange Act (collectively, the "Indemnified
     Persons"), from and against any and all losses, claims, damages, expenses
     and liabilities, joint or several (including any investigation, legal and
     other expenses incurred in connection with, and any amount paid in
     settlement of, any action, suit or proceeding or any claim asserted), to
     which they, or any of them, may become subject under the Securities Act,
     the Exchange Act or other federal or state statutory law or regulation, at
     common law or otherwise, insofar as such losses, claims, damages, expenses
     or liabilities arise out of or are based on (i) any untrue statement or
     alleged untrue statement of a material fact contained in such registration
     statement (including any related preliminary or definitive prospectus, or
     any amendment or supplement to such registration statement or prospectus),
     (ii) any omission or alleged omission to state in such document a material
     fact required to be stated in it or necessary to make the statements in it
     not misleading, or (iii) any violation by New DeNora Epyx of the
     Securities Act,

<PAGE>

     any state securities or "blue sky" laws or any rule or regulation
     thereunder in connection with such registration; provided, however, that
     New DeNora Epyx will not be liable to the extent that such loss, claim,
     damage, expense or liability arises from and is based on an untrue
     statement or omission or alleged untrue statement or omission made in
     reliance on and in conformity with information furnished in writing to New
     DeNora Epyx by such Indemnified Person expressly for use in such
     registration statement (in such Person's capacity as a shareholder of New
     DeNora Epyx and not in its capacity as an officer or director of New
     DeNora Epyx and which such information relates to such Person's capacity
     as a shareholder). With respect to such untrue statement or omission or
     alleged untrue statement or omission in the information furnished in
     writing to New DeNora Epyx by any Selling Holder expressly for use in such
     registration statement (in such Person's capacity as a shareholder of New
     DeNora Epyx and not in its capacity as an officer or director of New
     DeNora Epyx and which such information relates to such Person's capacity
     as a shareholder), such Selling Holder will indemnify and hold harmless
     each underwriter, New DeNora Epyx (including its directors, officers,
     employees and agents), each other Selling Holder (including its partners
     (including partners of partners and stockholders of such partners) and
     directors, officers, employees and agents of any of them), and each person
     who controls any of them within the meaning of Section 15 of the
     Securities Act or Section 20 of the Exchange Act, from and against any and
     all losses, claims, damages, expenses and liabilities, joint or several,
     to which they, or any of them, may become subject under the Securities
     Act, the Exchange Act or other federal or state statutory law or
     regulation, at common law or otherwise to the same extent provided in the
     immediately preceding sentence. In no event, however, shall the liability
     of a Selling Holder for indemnification under this Section 4.4(a) in its
     capacity as such (and not in its capacity as an officer or director of New
     DeNora Epyx) exceed the lesser of (i) that proportion of the total of such
     losses, claims, damages or liabilities indemnified against equal to the
     proportion of the total securities sold under such registration statement
     which is being sold by such Selling Holder or (ii) the proceeds received
     by such Selling Holder from its sale of Registrable Securities under such
     registration statement.

          (b) If the indemnification provided for in Section 4.4(a) above for
     any reason is held by a court of competent jurisdiction to be unavailable
     to an indemnified party in respect of any losses, claims, damages,
     expenses or liabilities referred to therein, then each indemnifying party
     under this Section 4.4, in lieu of indemnifying such indemnified party
     thereunder, shall contribute to the amount paid or payable by such
     indemnified party as a result of such losses, claims, damages, expenses or
     liabilities (i) in such proportion as is appropriate to reflect the
     relative benefits received by New DeNora Epyx, the other Selling Holders
     and the underwriters from the offering of the Registrable Securities or
     (ii) if the allocation provided by clause (i) above is not permitted by
     applicable law, in such proportion as is appropriate to reflect not only
     the relative benefits referred to in clause (i) above but also the
     relative fault of New DeNora Epyx, the other Selling Holders and the
     underwriters in connection with the statements or omissions which resulted
     in such losses, claims, damages, expenses or liabilities, as well as any
     other relevant equitable considerations. The relative benefits received by
     New DeNora Epyx, the Selling Holders and the underwriters shall be deemed
     to be in the same respective proportions that the net proceeds from the
     offering (before deducting expenses) received by New DeNora Epyx and the
     Selling Holders and the underwriting discount received by the
     underwriters, in each case as set forth in the table on the cover page of
     the applicable prospectus, bear to the aggregate public offering price of
     the Registrable Securities. The relative fault of New DeNora Epyx, the

<PAGE>

     Selling Holders and the underwriters shall be determined by reference to,
     among other things, whether the untrue or alleged untrue statement of a
     material fact or the omission or alleged omission to state a material fact
     relates to information supplied by New DeNora Epyx, the Selling Holders or
     the underwriters and the parties' relative intent, knowledge, access to
     information and opportunity to correct or prevent such statement or
     omission.

     New DeNora Epyx, the Selling Holders, and the underwriters agree that it
would not be just and equitable if contribution pursuant to this Section 4.4(b)
were determined by pro rata or per capita allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to in the immediately preceding paragraph. In no event, however, shall a
Selling Holder be required to contribute any amount under this Section 4.4(b)
in excess of the lesser of (i) that proportion of the total of such losses,
claims, damages or liabilities indemnified against equal to the proportion of
the total Registrable Securities sold under such registration statement which
are being sold by such Selling Holder or (ii) the proceeds received by such
Selling Holder from its sale of Registrable Securities under such registration
statement. No person found guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not found guilty of such fraudulent
misrepresentation.

          (c) The amount paid by an indemnifying party or payable to an
     indemnified party as a result of the losses, claims, damages and
     liabilities referred to in this Section 4.4 shall be deemed to include,
     subject to the limitations set forth above, any legal or other expenses
     reasonably incurred by such indemnified party in connection with
     investigating or defending any such action or claim, payable as the same
     are incurred. The indemnification and contribution provided for in this
     Section 4.4 will remain in full force and effect regardless of any
     investigation made by or on behalf of the indemnified parties or any
     officer, director, employee, agent or controlling person of the
     indemnified parties.

     4.5 Rule 144 and 144A Requirements. If New DeNora Epyx becomes subject to
the reporting requirements of either Section 13 or 15(d) of the Exchange Act,
New DeNora Epyx will use its best efforts thereafter to file with the
Commission such information as is specified under either of said Sections for
so long as DN, Hess or ADL are Holders of Registrable Securities; and in such
event, New DeNora Epyx shall use its best efforts to take all action as may be
required as a condition to the availability of Rule 144 or Rule 144A under the
Securities Act (or any successor or similar exemptive rules hereafter in
effect). New DeNora Epyx shall furnish to each of DN, Hess and ADL upon request
a written statement executed by New DeNora Epyx as to the steps it has taken to
comply with the current public information requirement of Rule 144 or Rule 144A
or such successor rules.

     4.6 Market Stand-Off. Each of DN, Hess and ADL agrees, if requested by New
DeNora Epyx and an underwriter of Common Stock of New DeNora Epyx (provided
that all Holders have been so requested), not to sell or otherwise transfer or
dispose of any Common Stock held by it for such period, not to exceed 180 days
following the effective date of any registration statement (other than a
registration effected solely to implement an employee benefit plan or a
transaction to which Rule 145 or any other similar rule of the Commission under
the Securities Act is applicable) of New DeNora Epyx filed under the

<PAGE>

Securities Act as New DeNora Epyx or such underwriter shall specify reasonably
and in good faith.

ARTICLE V.  MISCELLANEOUS PROVISIONS

     5.1 Restrictions on Transfer. No Stockholder shall Transfer any Stock
without the prior written consent, which consent shall not be unreasonably
withheld, of the other Stockholders except (i) pursuant to Article IV hereof;
(ii) in connection with any pledge to any of such Stockholder's lenders; (iii)
ADL may Transfer shares of Common Stock to Hess pursuant to the Investment
Agreement between ADL and Hess dated as of March 30, 2000; and (iv) any
Stockholder may Transfer, in one or more transactions, up to an aggregate of
ten percent (10%) of the outstanding shares of Common Stock, provided that each
Transferee is a financial or investment institution which is in good standing
with the applicable regulatory authorities and is in compliance with the
applicable laws and regulations. Notwithstanding any provision of this Section
5.1 to the contrary, no Stockholder may Transfer any shares of Stock unless the
Transferee agrees in writing to be bound by the provisions of this Section 5.1.
The provisions of this Section 5.1 shall terminate automatically and will be of
no further force and effect upon the closing of an IPO (as defined in Section
5.10 below). In the event that at October 15, 2000, the Stockholders determine
that an IPO will not be completed by December 31, 2000 for any reason, the
Stockholders agree to renegotiate in good faith the provisions of this Section
5.1.

     5.2 Legend on Securities. The Stockholders acknowledge and agree that the
following legend shall be typed on each certificate evidencing any of the
securities issued hereunder held at any time by the Stockholders:

     THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED,
HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT PURSUANT TO (1) A REGISTRATION
STATEMENT WITH RESPECT TO SUCH SECURITIES WHICH IS EFFECTIVE UNDER SUCH ACT OR
(2) AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER SUCH ACT RELATING TO THE
DISPOSITION OF SECURITIES. THESE SECURITIES ARE ALSO SUBJECT TO THE PROVISIONS
OF A CERTAIN STOCKHOLDERS' AGREEMENT, DATED AS OF APRIL 4, 2000, INCLUDING
CERTAIN RESTRICTIONS ON TRANSFER SET FORTH THEREIN. A COMPLETE AND CORRECT COPY
OF SUCH AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE
COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST AND WITHOUT CHARGE.

     5.3 Amendment and Waiver. Any party may waive any provision hereof
intended solely for its benefit in writing. No failure or delay on the part of
any party hereto in exercising any right, power or remedy hereunder shall
operate as a waiver thereof. Except as otherwise expressly provided herein, the
remedies provided for herein are cumulative and are not exclusive of any
remedies that may be available to any party hereto at law or in equity or
otherwise. This Agreement may not be amended without the prior written consent
of each of the parties hereto.

<PAGE>

     5.4 Notices. All notices and other communications shall be in writing and
shall be deemed given if delivered by hand, sent via facsimile, sent via a
reputable nationwide courier service or mailed by registered mail (return
receipt requested) to the parties at the following addresses (or at such other
address for a party as shall be specified by like notice) and shall be deemed
given on the date on which so hand-delivered, the date on which receipt of the
facsimile is acknowledged, the next business day following the date on which so
sent or on the third business day following the date on which so mailed, as the
case may be:

     If to DN:
              Herengracht 548
              Postbus 990
              1000AZ Amsterdam, The Netherlands
              Attention: Managing Board of Directors
              Facsimile: +31.20.625.8274

     with a copy to:
              Avv. Giuseppe Cambareri
              Via dei Giardini 10
              20121 Milano, Italy
              Facsimile: +39.02.6555.152

     If to ADL:
              Acorn Park
              Cambridge, MA 02140
              Attention: General Counsel
              Facsimile: (617) 498-7116

     If to Hess:
              1185 Avenue of the Americas
              New York, NY 10036
              Attention: General Counsel
              Facsimile: (212) 536-8241

     If to New DeNora Epyx:
              Acorn Park
              Cambridge, MA 02140
              Attention: Chief Operating Officer
              Facsimile: (617) 498-6655

     5.5 Headings. The Article and Section headings used or contained in this
Agreement are for convenience of reference only and shall not affect the
construction of this Agreement.

     5.6 Counterparts. This Agreement may be executed in one or more
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which together
shall be deemed to constitute one and the same agreement.

<PAGE>

     5.7 Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions contained herein shall not be in any way impaired
thereby, it being intended that all of the rights and privileges of the parties
hereto shall be enforceable to the fullest extent permitted by law.

     5.8 Entire Agreement. This Agreement and the other agreements contemplated
hereby are intended by the parties as a final expression of their agreement and
intended to be complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained
herein and therein. This Agreement and the other agreements contemplated hereby
(including the exhibits hereto) supersede all prior agreements and
understandings between the parties with respect to such subject matter. The
Stockholders agree that in the event of any inconsistencies between the by-laws
of New DeNora Epyx and the provisions of this Agreement, the latter shall
prevail. No amendment to the by-laws of New DeNora Epyx shall be deemed an
amendment of this Agreement, in whole or in part, so that no right or
obligation of the parties with respect to any matters covered by this Agreement
shall be affected thereby.

     5.9 Law Governing. This Agreement shall be construed and enforced in
accordance with and governed by the laws of The Commonwealth of Massachusetts
(without giving effect to principles of conflicts of law). Any controversy,
claim or dispute arising out of or relating to this Agreement, the Investment
Agreement or any other agreement or instrument delivered in connection
therewith shall be submitted to and resolved exclusively by arbitration in
accordance with the rules of the American Arbitration Association in effect on
the date thereof. Judgment upon the award rendered by the arbitrator(s) in
accordance with said rules may be entered and enforced in any court of
competent jurisdiction and, for such purpose, each party hereby waives trial by
jury in any action relating thereto and consents to the jurisdiction of any
Massachusetts court (federal or state). Any such arbitration proceedings shall
be held in Boston, Massachusetts.

     5.10 Termination upon Initial Public Offering. This Agreement
automatically shall, except as provided in the following sentence,
automatically terminate and be of no further force or effect upon the closing
of an underwritten initial public offering of New DeNora Epyx pursuant to an
effective registration statement covering the offer and sale to the public of a
number of shares equal to at least ten percent (10%) of the shares of Common
Stock outstanding prior to such offering (an "IPO"). Notwithstanding the
preceding sentence, Article IV and Sections 3.1(e) and 5.9 hereof shall survive
such termination.

<PAGE>

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

                                            DENORA NEW ENERGY INVESTMENTS B.V.
                                            (presently ANDROMA B.V.)

                                            By: /s/ Mauro Saponelli
                                               ---------------------------------
                                               Mauro Saponelli
                                               Managing Director

                                            EPYX CORPORATION

                                            By: /s/ Mark A. Brodsky
                                               ---------------------------------
                                               Mark A. Brodsky
                                               President

                                            ARTHUR D. LITTLE, INC.

                                            By: /s/ Mark A. Brodsky
                                               ---------------------------------
                                               Mark A. Brodsky
                                               Executive Vice President

                                            AMERADA HESS CORPORATION

                                            By: /s/ John A. Gartman
                                               ---------------------------------
                                               Name:  John A. Gartman
                                               Title: Sr. Vice President

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