Document:

EMPLOYMENT AGREEMENT

 

This Employment Agreement ("Agreement") is entered into as of July 15, 2005, by and between Radiologix, Inc., a Delaware corporation (the "Company"), and Carol A. Gleber ("Employee").

In consideration of the mutual covenants and conditions set forth herein, and other good and valuable consideration, the parties hereby agree as follows:

1.Employment.  The Company hereby employs Employee in the capacity of Senior Vice President and Chief Operating Officer. Employee accepts such employment and agrees to perform such services as are customary to such office and as shall from time to time be assigned to her by the Company.  Employee shall report to the Company's Chief Executive Officer.

2.Term.  Employee's employment hereunder shall commence on July 15, 2005 (the Commencement Date") and shall continue until terminated as provided in Section 5.  Employee's employment will be on a full-time basis requiring the devotion of such amount of her professional time as is necessary for the efficient operation of the business of the Company. 

3.Compensation and Benefits.

3.1Salary.  For the performance of Employee's duties hereunder, the Company shall pay Employee an annual salary of no less than $300,000, payable (after deducting required withholdings) in accordance with the Company's ordinary payroll practices.

3.2Bonus.  Employee will be a participant in all Company bonus or incentive compensation plans that are generally available to the Company's corporate officers. 

	Stock Options.  On the Commencement Date, the Company shall grant to Employee stock options for the purchase, at fair market value at the date of grant, of 250,000 shares of the Company's Common Stock pursuant to the applicable plans and the terms of stock option agreements under the Company's 2004 Long-Term Incentive Compensation Plan (the "LTICP").  

3.4Benefits.  Employee shall be entitled to such medical, disability and life insurance coverage and such vacation, sick leave and holiday benefits, if any, and any other benefits as are made available to the Company's corporate officers, all in accordance with the Company's benefits program in effect from time to time.

3.5Reimbursement of Expenses.  Employee shall be entitled to be reimbursed for all reasonable expenses, including but not limited to expenses for travel, meals and entertainment, licenses and associated costs incurred by Employee in connection with and reasonably related to the furtherance of the Company's business; provided, however, that the Company may require as a condition to such reimbursements, that Employee comply with the Company's expense reimbursement policies.

3.6Annual Review.  The Company's Board of Directors (or, if delegated by the Board of Directors, the Company's Compensation Committee or Chief Executive Officer) will, on an annual basis, review Employee's performance and compensation hereunder (including salary, bonus and stock options and/or other equity incentives).

4.Change of Control.  

4.1Termination After a Change of Control Occurs.  In the event of a Change of Control of the Company (as defined below), all options then granted to Employee which are unvested at the date of the Change of Control will vest pursuant to the provisions of the Company's LTICP.  In lieu of the provisions of Section 5.2(b), if the Company terminates Employee's employment hereunder within one year following a Change of Control for any reason other than for Disability or Cause (each as defined below), or if Employee terminates her employment hereunder for Good Reason (as defined below) within one year following a Change of Control, then the Company shall pay Employee, not later than the third business day after the effective date of such termination of employment, in addition to the amounts required under Section 5.2(a), a lump sum severance payment in an amount equal to the sum of (i) the product of Employee's then current annual salary for one year multiplied by two, plus (ii) the product of Employee's most recent annual bonus payment received for the fiscal year immediately preceding the Change of Control multiplied by two.  

In addition, the Company shall continue to provide Employee with the benefits described in Section 3.4 until the earlier of (i) the two-year anniversary of the effective date of Employee's termination of employment or (ii) the date on which Employee obtains substantially equivalent benefits from another party. 

4.2Definition.  As used herein, a "Change of Control" of the Company shall be deemed to have occurred when: 

(a)The acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (A) the then outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); provided, however, that for purposes of this Section 4, the following acquisitions shall not constitute a Change of Control:  (w) any acquisition directly from the Company; (x) any acquisition by the Company; (y) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary; or (z) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (c) below; or

(b)During any period of two consecutive years (not including any period prior to the Effective Date) individuals who constitute the Board on the Effective Date (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

(c)Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any of its Subsidiaries (each a "Business Combination"), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, thirty percent (30%) or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (C) at least a majority of the members of the Board of Directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 

(d)Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

For purposes of this section, (i) "Person" shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, and shall include a "group" as defined in Section 13(d) thereof, (ii) "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time, including rules thereunder and successor provisions and rules thereto, and (iii) "Effective Date" means the effective date of this Agreement; provided, however, that with respect to the treatment of stock options or other stock-based awards, "Effective Date" shall mean the effective date of the plan under which such options or awards are granted, to the extent that the existence of a Change in Control is measured by reference to such effective date.

4.3Parachute Payment Provisions.  Notwithstanding any other provision of this Agreement to the contrary, if it is determined (as hereafter provided) that any payment made to Employee following a Change of Control, either alone or together with other payments or benefits, either cash or non-cash, that Employee has the right to receive from the Company, including, but not limited to, accelerated vesting or payment of any deferred compensation, options, stock appreciation rights or any benefits payable to (or for the benefit of) Employee under any plan for the benefit of employees, would constitute an "excess parachute payment" (as defined in Section 280G of the Internal Revenue Code of 1986, as amended (the "Code")), then such payment or other benefit shall be reduced so that the aggregate present value of all payments and benefits, either cash or non-cash, to (or for the benefit of) Employee which are contingent on the change in control (as defined in Code Section 280G(b)(2)(A)) is One Dollar ($1.00) less than the amount which Employee could receive without being considered to have received any parachute payment. The determination of the amount of any reduction required by this Section shall be made by an independent auditor selected by the Company and acceptable to Employee, and such determination shall be conclusive and binding on the parties hereto.

5.Termination.

5.1Termination Events.  Employee's employment hereunder will terminate upon the occurrence of any of the following events:

(a)Employee dies;

(b)the Company, by written notice to Employee or her personal representative, discharges Employee due to Employee's Disability (as defined below);

As used in this Agreement, the term "Disability" shall mean that for a period of at least 120 days during any twelve consecutive month period on account of a mental or physical condition, Employee is unable to perform the essential functions of her job for the Company, with or without reasonable accommodation.  The determination of Employee's Disability shall be made (a) by a medical physician selected or agreed to by the Company or (b) upon mutual agreement of the Company and Employee or her personal representative.  All costs relating to the determination of whether Employee has incurred a Disability shall be paid by the Company.  Employee shall submit to any examination that is reasonably required by an examining physician for purposes of determining whether a Disability exists.

(c)Employee is discharged by the Company for Cause (as defined below): 

As used in this Agreement, the term "Cause" shall mean:

(i)Employee's conviction of (or plea of guilty or nolo contendere to) (A) any felony or (B) any misdemeanor involving fraud or dishonesty in connection with the performance of her duties hereunder or moral turpitude; or

(ii)the willful and continued failure of Employee for a total of 10 days (which need not be consecutive days) within any fiscal year of the Company to substantially perform her duties with the Company (other than any such failure resulting from illness or Disability) after a written demand for substantial performance from the Company is delivered to Employee, which demand specifically identifies the manner in which it is claimed Employee has not substantially performed her duties, or 

(iii)Employee has willfully engaged in misconduct which has, or can reasonably be expected to have, a direct and material adverse monetary effect on the Company.

For purposes of this Section, no act or failure to act on Employee's part shall be considered "willful" unless Employee acted in bad faith or without a reasonable belief that Employee's action or omission was in the best interest of the Company.  

(d)Employee is discharged by the Company for any reason other than for Cause or Disability, which the Company may do at any time; 

(e)Employee voluntarily terminates her employment due to either (i) a material default by the Company in the performance of any of its obligations hereunder, or (ii) an Adverse Change in Duties (as defined below), which default or Adverse Change in Duties remains unremedied by the Company for a period of ten days following its receipt of written notice thereof from Employee (which notice must reasonably describe the facts claimed by Employee to constitute the default or Adverse Change in Duties) (the reasons described in items (i) and (ii) of this paragraph being referred to herein as "Good Reason"); or

(f)Employee voluntarily terminates her employment for any reason other than Good Reason, which Employee may do at any time with at least 30 days' advance notice.

As used in this Agreement, "Adverse Change in Duties" means an action or series of actions taken by the Company and/or the Board of Directors of the Company, without Employee's prior written consent, which results in:

(i)A change in Employee's reporting responsibilities, titles, job or responsibilities which results in a material diminution of her status, control or authority as Senior Vice President and Chief Operating Officer of the Company; or

(ii)The assignment to Employee of any positions, duties or responsibilities which are materially inconsistent with Employee's positions, duties and responsibilities or status with the Company; or

(iii)A requirement by the Company that Employee be based or perform her duties anywhere other than (i) at the Company's corporate office location on the date of this Agreement, or (ii) if the Company's corporate office location is moved after the date of this Agreement, at a new location that is more than 60 miles from such prior location; or

(iv)A failure by the Company to provide for Employee's participation in any current or future benefits or plans at a level or to an extent commensurate with that of other corporate officers of the Company, taking into account the differing duties and responsibilities of such executives and their contribution to the success of the Company, as determined in good faith by the Compensation Committee of the Board of Directors.

5.2Effects of Termination.

(a)Upon termination of Employee's employment hereunder for any reason, the Company will promptly pay Employee all compensation owed to Employee and unpaid through the effective date of termination (including without limitation salary and Employee's properly documented expense reimbursements).

(b)In addition, if Employee's employment is terminated under Sections 5.1(b), (d) or (e), then the Company shall also pay Employee, not later than the third business day after the effective date of such termination of employment, a lump sum severance payment in an amount equal to Employee's then current annual salary.

5.3Noncompete After Termination.  Immediately upon Employee's execution of this Agreement and on an on-going basis, the Company agrees that it shall provide to Employee confidential information and trade secrets of the Company and its business  ("Confidential Information"). In consideration of, among other things, the Company's obligation to disclose confidential information to Employee and her receipt of that confidential information, Employee agrees that during her employment with the Company and for the one year period following the termination of Employee's employment hereunder for any reason, Employee will not, directly or indirectly, whether as an individual, employee, director, consultant, investor, stockholder, partner, agent, principal, lender or advisor, or in any other capacity whatsoever, and whether personally or through other persons:

(i)provide services to any person, firm, corporation or other business enterprise whose primary business involves (A) owning or operating diagnostic imaging centers or the provision of diagnostic imaging services, (B) providing administrative, management or other information services to radiology practices or (C) providing management services in the area of radiology, in each case unless she obtains the prior written consent of the Company.  The Company conducts business across the entire United States and, thus, to enforce the covenants herein, the geographic area for purposes of this restriction is nationwide.

(ii)solicit business from, attempt to do business with, or do business with any customer of the Company with whom the Company transacted business within the preceding 12 months, and for which Employee contacted, called on, serviced, did business with or had significant contact with during Employee's employment with the Company.

(iii)solicit, or attempt to encourage or solicit, any individual to leave the Company's employ for any reason or interfere in any other manner with the employment relationships between the Company and its current or prospective employees or any employee who has been employed by the Company within ninety days preceding Employee's termination.

(iv)directly or indirectly induce or attempt to induce any provider, payor, customer, supplier, distributor, licensee or other business relation of the Company to cease doing, or curtail, business with the Company or in any way interfere with the existing business relationship between any such customer, supplier, distributor, licensee or other business relation and the Company.

If any restriction set forth in this paragraph is held to be unreasonable and/or unenforceable as written, Employee and the Company agree that the restriction may be reformed to make it enforceable, and the restriction shall remain in full force and effect as reformed.

Employee acknowledges that the restrictions contained in this paragraph in view of the nature of the Company's business, are reasonable and necessary to protect the Company's legitimate business interests and that any violation of this paragraph would result in irreparable injury to the Company, and that monetary damages may not be sufficient to compensate the Company for any economic loss which may be incurred by reason of breach of the foregoing restrictive covenants.  In the event of a breach or a threatened breach by Employee of any provision in this paragraph, the Company shall be entitled to a temporary restraining order and injunctive relief restraining Employee from the commission of any breach, and to recover the Company's attorneys' fees, costs and expenses related to the breach or threatened breach.  Nothing contained in this paragraph shall be construed as prohibiting the Company from pursuing any other remedies available to it for any breach or threatened breach, including, without limitation, the recovery of money damages, attorneys' fees, and costs.  The restrictions in this paragraph shall each be construed as independent of any other provisions in this Agreement, and the existence of any claim or cause of action by Employee against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement of this Agreement.    

If Employee violates any of the restrictions contained in this paragraph, the restrictive period will be suspended and will not run in favor of Employee from the time of the commencement of any violation until the time when Employee cures the violation to the Company's satisfaction.

6.General Provisions.

6.1Assignment.  Employee shall not assign or delegate any of her rights or obligations under this Agreement without the prior written consent of the Company, and any attempted assignment without the Company's consent shall be void ab initio.  The Company may assign this Agreement to any successor of the Company or any purchaser of all or substantially all of the assets of the Company.

6.2Entire Agreement.  This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes any and all prior agreements between the parties relating to such subject matter.  In the case of any conflict between the terms of this Agreement and any option agreement or similar instrument, the terms of this Agreement shall control.

6.3Modifications.  This Agreement may be changed or modified only by an agreement in writing signed by both parties hereto.

6.4Successors and Assigns.  The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and permitted assigns and Employee and Employee's legal representatives, heirs, legatees, distributees, assigns and transferees by operation of law, whether or not any such person shall have become a party to this Agreement and have agreed in writing to join and be bound by the terms and conditions hereof.

6.5Governing Law.  This Agreement is performable in whole or in part in Dallas County, Texas wherein exclusive venue shall lie for any proceeding, claim or controversy, and shall be governed by, and construed in accordance with, the laws of the State of Texas, without giving effect to any conflict-of-laws principles.  

6.6Severability.  If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect. 

6.7Further Assurances.  The parties will execute such further instruments and take such further actions as may be reasonably necessary to carry out the intent of this Agreement.

6.8Notices.  Any notices or other communications required or permitted hereunder shall be in writing and shall be deemed received by the recipient when delivered personally or, if mailed, five days after the date of deposit in the United States mail, certified or registered, postage prepaid and addressed, in the case of the Company, to Radiologix, Inc., 3600 J.P. Morgan Chase Tower, 2200 Ross Avenue, Dallas, Texas 75201-2776, attention:  General Counsel; and in the case of Employee, to the address shown for Employee on the signature page hereof.

6.9No Waiver.  The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver of that provision, nor prevent that party thereafter from enforcing that provision of any other provision of this Agreement.

6.10Legal Fees and Expenses.  In the event of any disputes under this Agreement, each party shall be responsible for its own legal fees and expenses which it may incur in resolving such dispute, unless otherwise prohibited by applicable law or a court of competent jurisdiction. 

6.11Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

	Mediation.  If a dispute arises out of or relating to this Agreement or its breach, and if the dispute cannot be settled through direct discussions, then the parties agree to first endeavor to settle the dispute in an amicable manner by mediation, under the applicable provisions of Section 154.001, et seq., Texas Civil Practice & Remedies Code, as supplemented by the rules of the Association of Attorney Mediators, before having recourse to any other proceeding or forum.  The parties agree to conduct such mediation in Dallas County, Texas, through either an individual mediator agreed upon by the parties; or if the parties cannot agree upon a mediator, through a mediator to be appointed by the American Arbitration Association in accordance with its rules governing mediation.  The cost and expense of the mediation shall be borne equally by the parties.  This provision shall not prevent any of the parties from seeking injunctive relief or exercising any of the rights or remedies provided for in this Agreement.

6.13Code Section 409A Compliance.  Notwithstanding any other provisions of this Agreement to the contrary, the parties hereto agree that they will in good faith amend this Agreement in any manner reasonably necessary in order to comply with Code Section 409A, as enacted by the American Jobs Creation Act of 2004, and the parties further understand and agree that any provision in this Agreement that shall violate the requirements of Code Section 409A shall be of no force and effect after such amendment. 

 

IN WITNESS WHEREOF, the Company and Employee have executed this Agreement, effective as of the day and year first above written.

COMPANYEMPLOYEE

RADIOLOGIX, INC.

 

By: /s/ Sami S. Abbasi/s/ Carol A. Gleber

Name:  Sami S. AbbasiName:    Carol A. Gleber
Title:  President and Chief Executive OfficerAddress:  3010 Wren Lane

    Richardson, Texas 75082rrd85747_6814.html

Exhibit 10.1EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT is made on July 1, 2005 by and between Quantum Fuel Systems Technologies Worldwide, Inc. ("Quantum" or the "Company") and Kenneth R. Lombardo ("Employee"). Capitalized terms not otherwise defined in the body of this Agreement shall have the meanings specified in Section 5 hereof.
RECITALS
WHEREAS, Employer desires to employ Employee in accordance with the terms and conditions of this Agreement and Employee desires to be so employed by Employer.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants contained in this Agreement, the parties hereto agree as follows:
SECTION 1 .        EMPLOYMENT.
The Company hereby employs Employee as General Counsel and Vice-President, Legal for the Company.  Employee hereby accepts employment under this Agreement and agrees to devote his best effort and substantially full time, attention and energy to the Company's business. Employee's duties shall include all of the duties, including reasonable business-related travel, normally associated with the position named above, and shall include such other activities, responsibilities and duties that are consistent with such position as may be reasonably assigned from time to time by the Board of Directors or the CEO. The Company, through the Board of Directors and the CEO, shall retain full direction and control of the manner, means and methods by which Employee performs the services for which he is employed hereunder.
SECTION 2         COMPENSATION.
2.1 BASE SALARY. During the Term, Quantum will pay Employee a base salary of Two Hundred Twenty Five Thousand dollars ($225,000) per year. The CEO shall review this base salary at least annually, and the Compensation Committee shall review and approve any recommended increases. Said salary, including any increases, shall be paid to Employee in accordance with Quantum's normal payroll policies as in effect from time to time.  Upon the execution of this Agreement by the parties, Employee shall be entitled to receive a one-time signing bonus of $50,000 in the first payroll period following execution of this Agreement.
2.2 INCENTIVE COMPENSATION. During the Term, Employee shall be eligible for: (a) participation in any executive cash bonus plan adopted by the Company, which shall be payable based on achievement of corporate and individual performance objectives to be determined by the CEO and approved by the Compensation Committee, and which shall be paid within one hundred (100) days following the end of the Fiscal Year, and shall be pro rated on a daily basis for any period of the Term which does not include all of a Fiscal Year; and (b) awards under the Company's long-term incentive plans, including but not limited to stock options and restricted stock, under the terms of such plans as in effect from time to time.
2.3 BENEFITS. During the Term, Employee shall be entitled to the following benefits:
(a) Except as otherwise specified in this Agreement, the fringe benefits that the Company makes generally available to its executive officers, which currently include medical insurance, a Section 401(k) defined contribution employee savings plan, and a non-qualified deferred compensation plan;
(b) Term life insurance coverage, paid for by the Company, in the face amount of the greater of (i) two (2) times an annual amount which is the sum of Employee's annual base salary under Section 2.1 as in effect from time to time, and the average of Employee's prior two (2) years' annual cash bonuses under Section 2.2, and (ii) one million dollars ($1,000,000); provided, however, that the face amount of this coverage shall never decrease;
(c) If Employee becomes eligible to receive payments under the Company's standard long-term disability ("LTD") insurance, supplemental LTD insurance coverage, such that the combination of monthly payments from the Company's standard LTD plan and from this supplemental LTD policy shall equal one twelfth (1/12) of sixty percent (60%) of Employee's annual base salary as in effect from time to time.
(d) Four (4) weeks of paid vacation each calendar year, pro rated on a daily basis for any period of the Term which is less than a full calendar year.
(e) A car allowance of seven hundred ($700) per month, pro rated on a daily basis for any period of the Term which is less than a full month;
(f) If Employee becomes unable to work due to disability, sick leave that covers Employee at full base salary and continued participation in whatever other Company-sponsored pay and benefit arrangements that are in place for Employee immediately prior to such disability, until Employee is eligible for LTD benefits. Any unused sick leave shall not be accumulated or carried over, nor paid for upon termination of this Agreement.
2.4 BUSINESS EXPENSE REIMBURSEMENT. During the Term, the Company shall reimburse Employee for reasonable and necessary out-of-pocket expenses incurred by Employee in performance of services for the Company under this Agreement (e.g. transportation, lodging and food expenses incurred while traveling on Company business), all subject to such policies and other requirements as the Company may from time to time establish for its employees generally. Employee shall maintain such records as will enable the Company to deduct such items as business expenses when computing its taxes.
2.5 WITHHOLDING. Payment of compensation to Employee shall be subject to withholding of such amounts on account of payroll taxes, income taxes and other withholding as may be required by applicable law, rule or regulation of any governmental authority or as consented to by Employee.
SECTION 3         TERM AND TERMINATION PAYMENTS.
3.1 TERM. The Term shall commence effective as of July 12, 2005 and shall continue until the earliest of: (a) the Company's termination of Employee's employment as set forth in Section 3.2 of this Agreement; (b) Employee's termination of employment as set forth in Section 3.3 of this Agreement; or (c) the Employee's Disability, Death or Retirement, as set forth in Section 3.4 of this Agreement.
3.2 TERMINATION BY COMPANY. The Company may terminate Employee's employment with Cause effective immediately, or without Cause at any time by giving Employee written notice at least thirty (30) days prior to the effective date of termination; provided, that if such termination of employment is made by the Company without Cause, then Employee shall be entitled to the following severance benefits (the "Severance Benefits"):
(a) a lump sum cash payment equal to two (2) times the Employee's Base Salary in effect immediately prior to the date of termination.  Said payment shall be paid to Employee within ten (10) days of Employee's execution of the Release (as hereinafter defined);
(b) continuation of the benefits provided pursuant to Section 2.3 (a) and (b) for a period of two (2) years following the date of termination (the "Severance Period") to the extent permitted by the applicable plans; provided, however, that said benefits shall cease immediately when Employee is next employed with reasonably comparable benefits; and further provided, however, that if Employee elects during the Severance Period to convert Employee's health coverage under COBRA, then Employee shall pay the Company the same premiums for health coverage that Employee paid prior to electing COBRA and the Company shall pay the balance of the COBRA premiums during the Severance Period; and
(c) All incentive compensation awards including, without limitation, stock options (qualified and non-qualified), restricted stock and other stock-based compensation, shall immediately and automatically become fully vested.
(d) In the event that Section 280G of the Internal Revenue Code, as amended from time to time, shall apply to Employee's Severance Benefits and Employee's Severance Benefits shall exceed the 2.99x limit set forth in said Section 280G (the "280G Limit"), then the Company shall provide Employee a Section 280G tax gross-up payment, subject to a maximum payment of one-sixth (1/6) of the aggregate amount of the 280G Limit.
Employee's eligibility, both initially and ongoing, to receive the foregoing Severance Benefits shall be conditioned on Employee having first signed a release agreement, in the form attached as Exhibit A (the "Release").
Notwithstanding anything contained in this Agreement to the contrary, under no circumstances shall Employee have any duty or obligation to mitigate the amount of Severance Benefits due under this Agreement.
3.3 TERMINATION BY EMPLOYEE. Employee may terminate employment with the Company with or without Good Reason effective at any time by giving the Company written notice at least thirty (30) days prior to the effective date of termination; provided, however, that if Employee seeks to terminate employment for Good Reason, then Employee shall give the Company: (a) written notice no more than fifteen (15) days from the date when Employee first became aware that Good Reason has taken place (or else Employee forfeits the right to terminate employment for Good Reason) and (b) the opportunity, for no less than thirty (30) days from the effective date of Employee's written notice to the Company, to cure the purported situation that gave rise to Good Reason. In the event of termination by Employee without Good Reason, Employee shall not be entitled to any compensation or benefits following the effective date of termination of employment, except as expressly provided under the terms of the Company's applicable plans and policies. In the event of termination by Employee for Good Reason and after the Company shall have failed to cure, then Employee shall be entitled to the Severance Benefits set forth in Section 3.2 above.
3.4 TERMINATION BY DEATH, DISABILITY OR RETIREMENT. Employee's employment shall terminate automatically upon the earliest of Employee's death and, to the extent permitted by law, Disability and Retirement. In the event that Employee's employment is terminated by death, Disability or Retirement, then the Company shall pay all compensation and benefits to which Employee is entitled up to the date of such termination. Thereafter, all obligations of the Company shall cease. A termination by death, Disability or Retirement shall not constitute: (a) a termination by the Company without Cause for purposes of Section 3.2 above or (b) a termination by Employee for Good Reason for purposes of Section 3.3 above. Nothing in this section shall affect Employee's rights under any Company plan in which Employee is a participant.
SECTION 4         CONFIDENTIALITY.
4.1 CONFIDENTIAL INFORMATION. Employee shall not at any time, during the period of employment with the Company or thereafter, except as required in the course of employment with the Company or as authorized in writing by the Board of Directors, directly or indirectly use, disclose, disseminate or reproduce any Confidential Information or use any Confidential Information to compete, directly or indirectly, with the Company. All notes, notebooks, memoranda, computer program and similar repositories of information containing or relating in any way to Confidential Information shall be the property of the Company. All such items made or compiled by Employee or made available to Employee during the Term, including all copies thereof, shall be delivered to the Company by Employee upon termination of the Term or at any other time, upon request of the Company.
4.2 PROPRIETARY INFORMATION OF OTHERS. Employee shall not use in the course of employment with the Company, or disclose or otherwise make available to the Company, any information, documents or other items which Employee may have received from any prior employer or other person and which Employee is prohibited from so using, disclosing or making available by reason of any contract, court order, law or other obligation by which Employee is bound.
4.3 EQUITABLE RELIEF. Employee acknowledges that: the provisions of this Section 4 of the Agreement are essential to the Company; the Company would not enter into this Agreement if it did not include such provisions; the damages sustained by the Company as a result of any breach of such provisions cannot be adequately remedied by damages; and, in addition to any other right or remedy that the Company may have under this Agreement by law or otherwise, the Company will be entitled to injunctive and other equitable relief to prevent or curtail any breach of any such provisions.
SECTION 5         DEFINITIONS.
Whenever used in this Agreement with initial letters capitalized, the following terms shall have the following meanings:
"BOARD OF DIRECTORS" means, unless otherwise specified, Quantum Fuel Systems Technologies Worldwide, Inc.'s Board of Directors.
"CAUSE" means (i) Employee's conviction of a crime involving dishonesty, breach of trust, or physical harm to any person; (ii) Employee willfully engaging in conduct that is in bad faith and materially injurious to the Company, including but not limited to misappropriation of trade secrets; (iii) Employee willfully engaging in fraud or embezzlement; (iv) Employee's commission of a material breach of this Agreement, which breach is not cured within thirty (30) days after written notice to Employee from the Company; (v) Employee's willful refusal to implement or follow a lawful policy or directive of the Company, which breach is not cured within thirty (30) days after written notice to Employee from the Company; or (vi) Employee's engaging in misfeasance or malfeasance demonstrated by a pattern of failure to perform job duties diligently and professionally, which breach is not cured within thirty (30) days after written notice to Employee from Company.
"CEO" means the Chief Executive Officer of the Company.
"CHANGE OF CONTROL" means a change in ownership or control of the Company effected through a merger, consolidation or acquisition by any person or related group of persons (other than an acquisition by the Company or by a Company-sponsored employee benefit plan or by a person or persons that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934) of securities possessing more than fifty percent (50%) of the total combined voting power of the outstanding securities of the Company.
"COMPENSATION COMMITTEE" means the Compensation Committee of the Board of Directors.
"CONFIDENTIAL INFORMATION" means information not generally known relating to the business of the Company or any third party that is contributed to, developed by, disclosed to, or known to Employee in the course of employment by the Company, including but not limited to customer lists, specifications, data, research, test procedures and results, know-how, services used, computer programs, information regarding past, present and prospective plans and methods of purchasing, accounting, engineering, business, marketing, merchandising, selling and servicing used by the Company.
"DISABILITY" means that Employee becomes eligible for the Company's long-term disability benefits or, in the sole discretion of the Company, Employee is unable to carry out Employee's executive responsibilities by reason of any physical or mental impairment for more than ninety (90) consecutive days or more than one hundred and twenty (120) days in any twelve-month period.
"FISCAL YEAR" means the Company's fiscal year for financial accounting purposes as in effect from time to time, which is currently a fiscal year ending on April 30.
"GOOD REASON" means the occurrence of any of the following events or conditions, unless consented to by Employee or cured by the Company: (a) a change in Employee's status, title, position or responsibilities which represents a material adverse change from Employee's status, title, position or responsibilities as in effect at any time during the Term; provided, however, that if after a Change in Control, Employee retains substantially the same status, title, position and responsibilities that Employee had prior to the Change in Control but Employee is serving as the General Counsel and Vice President - Legal of the Company as a subsidiary or division of another entity, then Good Reason shall not have occurred; (b) a reduction in Employee's base salary to a level below that in effect at any time during the Term; (c) requiring Employee to be based at any place outside a fifty (50) mile radius from Employee's job location at the time of the execution of this Agreement, except for business-related travel reasonably required for the performance of Employee's duties as the Company's General Counsel and Vice President - Legal; or (d) requiring Employee to undertake business-related travel requirements that are materially greater than the business-related travel requirements as set forth in subsection (c) above and Section 1 of this agreement.
"RETIREMENT" means Employee's retirement in accordance with the plans and policies of the Company as in effect from time to time and applicable to Employee.
"TERM" means the period during which Agreement is in effect as provided in Section 3.1. 
SECTION 6         MISCELLANEOUS.
6.1 COMPLIANCE WITH LAWS. In the performance of this Agreement, each party shall comply with all applicable laws, regulations, rules, orders and other requirements of governmental authorities having jurisdiction.
6.2 NONWAIVER. The failure of any party to insist upon or enforce strict performance by any other of any provision of this Agreement or to exercise any right, remedy or provision of this Agreement shall not be interpreted or construed as a waiver or relinquishment to any extent of such party's right to consent or rely upon the same in that or any other instance; rather, the same shall be and remain in full force and effect.
6.3 ENTIRE AGREEMENT. This Agreement constitutes the entire Agreement, and supersedes any and all prior agreements between the Company and Employee.  No amendment, modification or waiver of any of the provisions of this Agreement shall be valid unless set forth in a written instrument signed by the party to be bound thereby.
6.4 APPLICABLE LAW AND VENUE. This Agreement shall be interpreted, construed and enforced in all respects in accordance with the laws of the State of California, and venue for any action arising out of this Agreement shall be in the federal or state courts in Orange County, California.
6.5 SURVIVAL. Section 4, together with all other provisions of this Agreement which may reasonably be interpreted or construed to survive any termination of the Term, shall survive termination of the Term.
6.6 ATTORNEYS' FEES. In the event any suit or proceeding is instituted by any party against another arising out of this Agreement, the prevailing party shall be entitled to recover its attorneys' fees and expenses of litigation; provided, however, that in the event of the settlement of any suit or proceeding, the parties shall bear their own attorneys' fees and expenses of litigation.
6.7 SEVERABILITY. If any term, provision, covenant or condition of this Agreement shall be held by a court of competent jurisdiction to be invalid, unenforceable or void, then the remainder of this Agreement shall remain in full force and effect.
6.8 HEADINGS. The headings and captions of this Agreement are provided for convenience only, and are not intended to have any effect upon the interpretation or construction of the Agreement.
6.9 NOTICES. Any notice, request, consent or approval required or permitted to be given under this Agreement or pursuant to law shall be sufficient if in writing, and personally delivered to Employee or by registered or certified mail to Employee's residence (as noted in the Company's records), or if personally delivered to the Company's Corporate Secretary at the Company's principal office.
EMPLOYEE:
/s/  Kenneth R. Lombardo                
QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE, INC.
/s/  Alan P. Niedzwiecki
President and Chief Executive Officer

EXHIBIT A
FORM OF RELEASE CERTIFICATE
("You") and Quantum Fuel Systems Technologies Worldwide, Inc. (the "Company") have agreed to enter into this Release Certificate on the following terms:
Within ten (10) days after you sign this Release Certificate (which you may sign no sooner than the last day of your employment with the Company), you will become eligible to receive the Severance Benefits in accordance with the terms of your Employment Agreement with the Company.
In return for the consideration described in the Employment Agreement, you and your representatives completely release the Company, its affiliated, related, parent or subsidiary corporations, and its and their present and former directors, officers and employees (the "Released Parties") from all claims of any kind, known and unknown (see footnote 1). which you may now have or have ever had against any of them, or arising out of your relationship with any of them, including all claims arising from your employment or the termination of your employment, with the exception of Severance Payments as outlined in Section 3.2, whether based on contract, tort, statute, local ordinance, regulation or any comparable law in any jurisdiction ("Released Claims"). By way of example and not in limitation, the Released Claims shall include any claims arising under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Worker Adjustment and Retraining Notification Act, the Age Discrimination in Employment Act, and the California Fair Employment and Housing Act, and any other comparable state or local law, as well as any claims asserting wrongful termination, breach of contract, breach of the covenant of good faith and fair dealing, negligent or intentional misrepresentation, defamation and any claims for attorneys' fees. You also agree not to initiate or cause to be initiated against any of the Released Parties any lawsuit, compliance review, administrative claim, investigation or proceedings of any kind which pertain in any manner to the Released Claims.
You acknowledge that the release of claims under the Age Discrimination in Employment Act ("ADEA") is subject to special waiver protection. Therefore, you acknowledge the following: (a) you have had twenty-one (21) days to consider this Release Certificate (but may sign it at any time beforehand, if you so desire); (b) you can consult an attorney in doing so; (c) you can revoke this Release Certificate within seven (7) days of signing it, by sending a certified letter to that effect to the Company's Chief Executive Officer; and that (d) notwithstanding the foregoing, the portion of this Release Certificate that pertains to the release of claims under ADEA shall not become effective or enforceable and no funds shall be exchanged until the seven (7)-day revocation period has expired, but that all other provisions of this Release Certificate shall become effective upon its execution by the parties.
The parties agree that this Release Certificate and the Employment Agreement contain all of our agreements and understandings with respect to their subject matter, and may not be contradicted by evidence of any prior or contemporaneous agreement, except to the extent that the provisions of any such agreement have been expressly referred to in this Release Certificate or the Employment Agreement as having continued effect. It is agreed that this Release Certificate shall be governed by the laws of the State of California. If any provision of this Release Certificate or its application to any person, place or circumstance is held by a court of competent jurisdiction to be invalid, unenforceable or void, then the remainder of this Release Certificate and such provision as applied to other person, places and circumstances shall remain in full force and effect.
Notwithstanding anything contained in this Release Certificate to the contrary, the Company acknowledges and agrees that Employee is not releasing the Company from any claims for indemnification that Employee may have against the Company arising from or related to Employee's status as an officer of the Company whether such rights to indemnification arise from the Company's Articles of Incorporation, Bylaws or by statute, contract or otherwise.
Please note that this Release Certificate may not be signed before the last day of your employment with the Company, and that your eligibility for severance benefits is conditioned upon meeting the terms set forth in your Employment Agreement.
Date:          
Employee:
QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE, INC.
By:                        Date:          
Name:          
Title:          
Footnote 1:  You further agree that because this Release Certificate specifically covers known and unknown claims, you waive your rights under Section 1542 of the California Civil Code or under any other comparable law of another jurisdiction that limits a general release to claims that are known to exist at the date of this release. Section 1542 of the California Civil Code states as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor."

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