Document:

exv10w3

Exhibit 10.3

FUEL TECH, INC.

EMPLOYMENT AGREEMENT — GENERAL

This Employment Agreement (“Agreement”) is made as of October 2, 2008 between Fuel Tech, Inc., a
Delaware corporation (the “Company”) with offices at 27601 Bella Vista Parkway, Warrenville,
Illinois 60555 , and Volker Rummenhohl (“Employee”).

The Company is a leader in air pollution control and the development and use of specialty chemicals
for improving the efficiency, reliability, and environmental status of plants operating in the
electric utility, industrial, pulp and paper, and waste-to-energy markets. The Company has
invested considerable time and expense to develop and protect its goodwill, customer relationships,
and Confidential Information (as defined below). Employee understands and agrees that the
provisions of this Agreement are reasonable and necessary to protect the legitimate business
interests of the Company.

In consideration of the Company’s employment of Employee, the compensation and benefits provided to
Employee, and Employee’s access to Confidential Information, the Company and Employee agree as
follows:

1. Employment Status. Employment with the Company is contingent on Employee signing this
Agreement. Employee shall also be entitled to participate in such benefits as the Company provides
to its employees generally.

No statement in this Employment Agreement shall be construed to grant Employee an employment
contract of fixed duration, as altering the at-will employment relationship with Employee,
or as a limitation, either express or implied, on the Company’s right to discipline or
discharge employee. Either Employee or the Company may terminate the employment
relationship at any time, for any reason, with or without notice and with or without cause.

2. Best Efforts; Duty of Loyalty. During Employee’s employment, Employee agrees to use
his/her best efforts and to faithfully and diligently perform Employee’s duties, to act in the
Company’s best interests at all times, and to abide by all of the Company’s policies, procedures,
and guidelines (including, without limitation, the Company’s policies, procedures and guidelines
set forth in the Company’s Code of Business Ethics and Conduct, and the Company’s Employee
Handbook) as well as all applicable federal, state, and local laws, regulations, and ordinances.
The Company reserves the right, in its sole discretion, to change any such policies, procedures, or
guidelines, in whole or in part, at any time in the future, with or without notice to Employee.

3. Developments. Employee shall disclose promptly and completely to the Company in
writing, and shall respond to all inquiries by the Company about, whether during or after
employment, all inventions, programs, processes, software, data, formulae, trade secrets, ideas,
concepts, discoveries and developments, whether patentable or not, that during employment Employee
may make, conceive, reduce to writing or other storage media, or with respect to which Employee
shall acquire the right to grant licenses or to become licensed, either solely or jointly with
others, and that: (a) relate to any subject matter with which Employee’s work for the Company may
be concerned; (b) relate to or are concerned with the business, products or projects of the Company
or that of its customers; or (c) involve the use of the Company’s time, material or facilities
(“Developments”).

Employee agrees that all Developments are and shall remain the sole and absolute property of the
Company or its nominees. Employee will not withhold Developments from the Company for the use or
benefit of Employee or any other person or Company after Employee’s employment terminates.

4. Copyrights. Employee agrees that all writings, illustrations, models, pictures,
software, and other such materials and original works of authorship (“Works”) created or produced
by Employee during the term of his employment with the Company and relating to his/her employment
with the Company shall be a work made for hire under U.S. copyright laws and shall be at all times
the sole and absolute property of the Company or its nominees. To the extent that such Works are
not works made for hire under the U.S. copyright laws, then Employee grants, assigns, and transfers
to the Company any and all rights (including but not limited to copyrights) in all such Works.

 

 

5. Assignment. At all times during and after Employee’s employment with the Company and
at no expense to Employee, Employee shall execute and deliver such assignments and other documents
as may be reasonably requested by the Company to obtain or uphold for the benefit of the Company,
patents, trademarks, and copyrights in any and all countries for Developments, whether or not
Employee is the inventor or creator thereof. The Company shall be the sole and absolute owner of
any resulting patents, trademarks, and copyrights for Developments.

6. Development Exclusions. This Agreement does not apply to a Development or Work that
was developed entirely on Employees’ own time and that used no equipment, facility, supplies or
trade secret information of the Company and (a) that does not result from any work performed by
Employee for the Company or (b) that does not relate to the business of the Company or to the
Company’s actual or demonstrably anticipated research or development.

7. Development Compensation. Employee shall receive no compensation for actions required
of Employee under the requirements of Sections 3 and 4 and 5 above whether during or after
termination of employment, provided, however, that Employee shall be reimbursed by the Company for
any of Employee’s reasonable out of pocket expenses necessarily arising out of such actions and
such expenses are approved in advance by the Company.

8. Confidentiality; Non-Use. Employee agrees, at all times, to hold in trust and
confidence all Confidential Information, as defined below, that Employee has acquired or may
acquire during Employee’s employment with the Company. The term “Confidential Information” means
any information (whether or not specifically labeled or identified as “confidential”), in any form
or medium, that is disclosed to, developed, or learned by Employee during his/her employment, that
relates to the business, services, techniques, know-how, processes, methods, formulations,
investments, finances, operations, plans, research or development of the Company, and that is not
generally known outside of the Company. Confidential Information includes, but is not limited to:
the identity and information concerning the needs and preferences of current, former, and
prospective customers; performance, compensation, and other personnel data concerning employees of
the Company; business plans and strategies; plans for recruiting and hiring new personnel; trade
secrets; and pricing strategies and policies. Confidential Information does not include the
general skills, knowledge, and experience gained during Employees employment and common to others
in the industry or information that is or becomes publicly available without any breach by Employee
of this Agreement. Employee agrees that at all times both during and after his/her employment,
Employee will not, without the Company’s express written permission, use Confidential Information
for Employee’s own benefit or the benefit of any other person or entity or disclose Confidential
Information to any person other than (a) in the case of disclosures made while Employee is employed
by the Company, persons to whom disclosure is required in connection with the performance of
Employee’s duties for the Company or (b) any disclosure requested by a court or regulatory
authority with jurisdiction over the subject matter, in which event Employee agrees promptly to
notify the Company in advance of and cooperate with the Company in any efforts to suppress or limit
such disclosure.

9. Company Property. Employee shall carefully preserve the Company’s property and not
convert it to personal use. At the termination of Employee’s employment or at any other time
requested by the Company, Employee shall return to the Company any and all Company property
entrusted to Employee, including without limiting the generality of the foregoing, all notes,
correspondence, books, laboratory logs, computer disks and tapes or other data storage media,
engineering records, drawings, keys, key cards, credit cards, telephone cards, computers, equipment
and vehicles.

10. Misuse of Third Party Information. Employee agrees that Employee will not directly or
indirectly use for the Company’s benefit any confidential or trade secret information of any other
entity, including former employers. Employee understands that any disclosure by him/her of
another’s confidential or trade secret information to the Company is strictly prohibited and will
be grounds for disciplinary action including, but not limited to, termination. Employee understands
that the prohibition in this section does not apply if the Company has acquired the right to use
such information.

11. Communications to Third Parties. Both during and after Employee’s employment with the
Company, Employee agrees not to make any oral or written statement at any time to any third party
that disparages, defames, or reflects adversely upon the Company, any affiliate of the Company, or
any employee of the Company.

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12. Cooperation. Following the termination of Employee’s employment for any reason,
Employee agrees to cooperate with and assist the Company in any manner the Company reasonably may
request, including, but not limited to, meeting with and fully and truthfully answering the
questions of the Company or its counsel in connection with any actual or potential litigation or
other legal matter, and testifying and preparing to testify at any deposition or trial.

13. Employee Disputes. Except as otherwise provided in this section, any controversy or
claim between Employee and the Company arising out of or relating to Employee’s employment or
termination of employment or any other dispute between the parties, whether arising in tort,
contract, or pursuant to a statute, regulation, or ordinance now in existence or which may in the
future be enacted or recognized, will be settled and determined by a single arbitrator whose award
will be accepted as final and binding upon the parties. The arbitration will be conducted within
the district of the federal district court with jurisdiction over Employee’s most recent place of
employment with the Company (for outside sales employees, this would be Employee’s most recent
residence during his/her employment) and in accordance with the American Arbitration Association
(“AAA”) Employment Arbitration Rules in effect at the time such arbitration is properly initiated,
except in the event of any conflict with applicable law or the terms of this section, in which case
applicable law will take precedence under all circumstances and the terms of this Agreement will
take precedence over the AAA rules. The arbitrator will render a written decision to the parties
setting forth the rationale for any award. The costs of the arbitration, including administrative
fees and fees charged by the arbitrator, will be allocated pursuant to the AAA rules or, in the
absence of any rules covering such costs, will be shared equally between the parties. Each party
will bear its or his/her own travel expenses and attorneys’ fees. A judgment may be entered upon
the arbitrator’s decision and the decision will be enforceable by any court having jurisdiction
thereof. In any situation in which emergency injunctive relief may be necessary, either party may
seek such relief from a court until such time as the arbitrator is able to address the matter
covered by this section.

14. Waiver of Jury Trial. If notwithstanding the preceding section, either party files,
and is allowed by the courts to prosecute, a court action on a dispute between Employee and the
Company, the plaintiff in such an action agrees not to request, and hereby waives his/her or its
right to, a trial by jury.

15. Law. This Agreement and any disputes arising between the Company and Employee shall be
interpreted and governed by the law of the State of Illinois.

16. Entire Agreement; Waiver. This Agreement supersedes any and all prior agreements that
Employee has entered into with the Company relating to the subject matter hereof. This Agreement
may not be amended, modified, superseded, canceled, or waived on behalf of the Company except by a
written instrument signed by a properly authorized representative of the Company. No waiver by the
Company of the breach of any provision of this Agreement in any one or more instances shall be
deemed to be or construed as a further or continuing waiver of any such breach or as a waiver of
any breach of any other provisions of this Agreement. The failure of the Company at any time or
times to require performance of any provision of this Agreement shall in no manner affect the
Company’s right to enforce the same at a later time. This Agreement shall not limit in any way any
rights or remedies the Company may have under the common law or any statute to protect the
Company’s trade secrets and other Confidential Information.

17. Severability. If a court determines that any provision contained in this Agreement is
unenforceable in any respect, then the effect of such provision will be limited and restricted so
as to permit the provision to be enforceable to the maximum extent permitted by law or, if that is
not possible, such provision will be removed from this Agreement. In either case, this Agreement
should be interpreted, even if modified, to achieve the full intent expressed, and the other
provisions of this Agreement will remain in force and unmodified and will be enforced as written.

18. Injunctive Relief. Because money damages for the breach or threatened breach of
Employee’s obligations under this Agreement may be inadequate to compensate the Company fully for
the harm it has suffered or will suffer, the Company may seek injunctive relief (a court order
preventing Employee from doing something) or specific performance (a court order compelling
Employee to do something) or other remedies “in equity” for such a breach or threatened breach,
without first being obligated to post any bond or to show actual damages. In addition, the Company
may obtain any other remedies available at law, in equity or under this Agreement. In connection
with any claim based on a breach or threatened breach of this Agreement, the prevailing party shall
be entitled to payment of its reasonable attorneys’ fees and costs by the non-prevailing party.

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19. Survival of Obligations; Successors and Assigns. Employee further agrees that
termination of his/her employment by the Company for any reason whatsoever, with or without cause,
shall not affect his/her obligations under this Agreement, and that the undertakings and
obligations set forth in this Agreement shall be an obligation of Employee’s executors,
administrators, or other legal representatives. This Agreement may be assigned by the Company to,
and is intended for the benefit of, any successor to all or part of the Company’s business as well
as any affiliate of the Company for which the Employee may become employed or render services.

IN WITNESS WHEREOF, the parties have signed this four page Agreement as of the day and year first
written above.

	 	 	 	 	 	 	 	 	 
	 

	 	/s/ Volker Rummenhohl
	 	 	 	/s/ Gina Wesanko	 	 
	 

	 	 

     Employee
	 	 	 	 

     Witness
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Gina Wesanko	 	 
	 

	 	 	 	 	 	 

Name (Please print or type)
	 	 

	 	 	 	 	 
	FUEL TECH, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ John F. Norris Jr.	 	 
	

Title:

	 	 

CEO and President
	 	 

4exv10w4

Exhibit 10.4

Sublease

Fuel Tech, Inc. —American Bailey Corporation

Agreement of Sublease made as of January 29, 2004 between Fuel Tech, Inc., A Massachusetts
corporation (“Sublandlord”) and American Bailey Corporation, a Delaware corporation (Subtenant”)
both of the Financial Centre, 695 East Main Street, Stamford, Connecticut 06901 (this “Sublease”).

WITNESSETH:

Whereas, by an Agreement of Sublease dated the 29th day of January, 2004 (the “Overlease”)
Sublandlord hereunder did lease as Tenant from General Re Corporation, a Delaware corporation, as
Landlord (“Landlord”) thereunder, the Premises more particularly described in the Overlease and as
drawn on Schedule I hereto; and

Whereas, Sublandlord and Subtenant are and have been sharing occupancy of the Premises, Sublandlord
desires to sublet and demise to Subtenant and Subtenant desires to rent an interest in the Premises
(hereafter known as Subtenant’s “Proportionate Share” which shall be that percentage interest in
the amount of thirty seven and one half percent (37.5%) described on Schedule II hereto “Allocation
of Direct and Common Space Final Layout -Fuel Tech/American Bailey Office” on the line “Percent of
Direct Space” under the Column “Allocation of New Space (Sq. Ft.) ABC,” or such other percentage
interest as may be set out from time to time by an addendum hereto signed by the parties, all on
the terms and subject to the conditions set forth below:

Now Therefore, for and in consideration of the mutual covenants set out in this Sublease, the
parties agree as follows:

1. Subletting. Sublandlord does hereby sublease and demise to Subtenant Subtenant’s Proportionate
Share in the Premises including use of the common areas within the Premises (the Subpremises) .

2. Term. The term (the “Term”) of this Agreement of Sublease shall commence on February 1, 2004 and
shall end on 12:00 noon on January 31, 2010, unless the Term shall sooner or later terminate
pursuant to any of the terms, covenants or conditions of this Agreement of Sublease or pursuant to
law. The parties intend that this instrument shall be a sublease of the Subpremises and not an
assignment of an interest in the Overlease.

3. Incorporation by Reference. To the extent not otherwise inconsistent with the provisions of this
Sublease, the terms, provisions, covenants, conditions and definitions of the Overlease, as
modified herein, are hereby incorporated by reference with the term Sublandlord substituting for
Landlord and the term Subtenant substituting for Tenant. Subtenant hereby assumes in this Sublease,
as if expressed herein, and not inconsistent with the terms of this Sublease, its Proportionate
Share of all of the obligations of Tenant

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as expressed in the Overlease, accruing or payable during the Term and such Proportionate Share of
its obligations shall survive the Term.

4. Payments. Subtenant shall reimburse Sublandlord for Subtenant’s Proportionate Share of:

	 	(a)	 	The construction costs of Tenant’s Installation of the Premises as assumed
by Sublandlord as Tenant under Exhibit C of the Overlease, as amended;
	 
	 	(b)	 	Fixed Rent;
	 
	 	(c)	 	Additional Rent; and
	 
	 	(d)	 	Sublandlord’s direct cost of maintaining the Premises, in addition to
Additional Rent, if any, including without limiting the generality of the foregoing,
utilities and cafeteria subsidy.

Payment shall be made by Subtenant to Sublandlord’s office or, as the case may be, by wire transfer
to Sublandlord’s bank account within thirty (30) days of receipt of Sublandlord’s invoice. Such
payments shall not be subject to any deduction or offset and shall include Subtenant’s
Proportionate Share of any interest or penalties thereon.

5. Insurance. Subtenant shall maintain insurance on the Subpremises for the Term (naming Landlord
and Sublandlord as additional insureds) of the type and with the coverage and limits specified in
Article 19 of the Overlease. Subtenant shall obtain from its carrier of such insurance a consent to
the waiver of recovery as expressed in Section 19.05 of the Overlease and furnish a copy thereof to
Sublandlord.

6. Negative Covenants. Sublandlord and Subtenant shall not, absent the written consent of the
other,

	 	(a)	 	make any material alterations or additions to the Premises or Subpremises;
	 
	 	(b)	 	transfer, hypothecate, assign, conveyor mortgage this Sublease or any
interest therein or allow any lien thereon; or
	 
	 	(c)	 	take any action or fail to take any action in connection with the Premises or
Subpremises as a result of which Sublandlord would be in default under the Overlease.

7. Landlord’s Rights. Subtenant acknowledges any rights reserved by Landlord in the Overlease and
acknowledges that Subtenant’s possession and use of the Subpremises shall at all times be subject
to such rights. Subtenant releases Sublandlord of and from all liability in connection with
Landlord’s exercise of such rights.

8. Landlord’s Defaults. Sublandlord shall not be liable to Subtenant for Landlord’s failure to
perform any of Landlord’s obligations under the Overlease, nor shall Sublandlord have any
obligation to perform the same or to bring legal proceedings or

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take any other action against Landlord to assure performance of Landlord’s obligations under the
Overlease. The parties shall mutually consult in the event of such defaults of Landlord’s
obligations with a view toward agreement as to the proper course of action in such circumstances.

9. Dispute Resolution. Any controversies or disputes arising under this Sublease, its
interpretation or the transactions contemplated by it shall be discussed and negotiated by
authorized representatives of the parties neither of whom shall be an employee, officer or director
of the other party. Failing a resolution of such controversies or disputes after discussion and
negotiation, such matters shall, at the request of either party at any time, be determined in
final, binding arbitration under the commercial arbitration rules of the American Arbitration
Association (“AAA”) before a single, neutral arbitrator in Stamford, Connecticut. Prior to
commencement of arbitration proceedings the parties shall engage in mediation under the AAA rules.
Any award in such arbitration may be entered in and enforced by any court having jurisdiction.

IN WITNESS WHEREOF, the parties have set their hands and seals by their duly authorized
representatives as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	Fuel Tech, Inc.	 	 	 	American Bailey Corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Charles W. Grinnell
	 	 	 	By:
	 	/s/ Douglas G. Bailey	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

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Schedule I 

 

Allocation of Direct and Common Space 
Final Layout —
Fuel Tech/American Bailey Office

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Office	 	 	 	Allocation Percentage	 	Allocation of New Space (Sq. Ft.)
	Number	 	Individual	 	Fuel Tech	 	ABC	 	Office Size	 	Fuel Tech	 	ABC
	 	103	 	 	Betsy Kenyon
	 	 	75	%	 	 	25	%	 	 	253	 	 	 	190	 	 	 	63	 
	 	104	 	 	Doug Bailey
	 	 	25	%	 	 	75	%	 	 	369	 	 	 	92	 	 	 	277	 
	 	105	 	 	Ralph Bailey
	 	 	75	%	 	 	25	%	 	 	373	 	 	 	280	 	 	 	93	 
	 	106	 	 	Nolan Schwartz
	 	 	100	%	 	 	0	%	 	 	295	 	 	 	295	 	 	 	—	 
	 	107	 	 	Tracy Krumme
	 	 	100	%	 	 	0	%	 	 	157	 	 	 	157	 	 	 	—	 
	 	108	 	 	Pat Fern
	 	 	100	%	 	 	0	%	 	 	157	 	 	 	157	 	 	 	—	 
	 	109	 	 	Eleanor Skolnick
	 	 	100	%	 	 	0	%	 	 	157	 	 	 	157	 	 	 	—	 
	 	110	 	 	Bill Cummings
	 	 	100	%	 	 	0	%	 	 	235	 	 	 	235	 	 	 	—	 
	 	111	 	 	Alex Dainoff
	 	 	100	%	 	 	0	%	 	 	157	 	 	 	157	 	 	 	—	 
	 	112	 	 	John O’Leary
	 	 	100	%	 	 	0	%	 	 	157	 	 	 	157	 	 	 	—	 
	 	113	 	 	Brad Hittle
	 	 	0	%	 	 	100	%	 	 	220	 	 	 	—	 	 	 	220	 
	 	114	 	 	Bill Drake
	 	 	0	%	 	 	100	%	 	 	242	 	 	 	—	 	 	 	242	 
	 	115	 	 	Sophia Mattus
	 	 	0	%	 	 	100	%	 	 	120	 	 	 	—	 	 	 	120	 
	 	117	 	 	ABC File Room and Equipment Area
	 	0	%	 	 	100	%	 	 	166	 	 	 	—	 	 	 	166	 
	 	118	 	 	FT File Room
	 	 	100	%	 	 	0	%	 	 	82	 	 	 	82	 	 	 	—	 
	 	119	 	 	Bari Veno
	 	 	100	%	 	 	0	%	 	 	102	 	 	 	102	 	 	 	—	 
	 	125	 	 	ABC Guest Workstation
	 	 	0	%	 	 	100	%	 	 	94	 	 	 	—	 	 	 	94	 
	 	N/A	 	 	FT Dedicated File Areas
	 	 	100	%	 	 	0	%	 	 	65	 	 	 	65	 	 	 	—	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Total Direct Space
	 	 	 	 	 	 	 	 	 	 	3,401	 	 	 	2,126	 	 	 	1,275	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Percent of Direct Space
	 	 	 	 	 	 	 	 	 	 	100.0	%	 	 	62.5	%	 	 	37.5	%
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Common Area (Allocated on %
Direct)
	 	 	62.5	%	 	 	37.5	%	 	 	3,747	 	 	 	2,342	 	 	 	1,405	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Total Space Rented
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	7,148	 	 	 	4,468	 	 	 	2,680	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Schedule II

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