Document:

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                                                                    EXHIBIT 10.6

                              MILLENNIUM CELL INC.

                              AMENDED AND RESTATED

                             2000 STOCK OPTION PLAN
                      (AMENDED EFFECTIVE DECEMBER 1, 2001)
                      [DATE OF BOARD OF DIRECTORS APPROVAL]

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                                TABLE OF CONTENTS

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<S>         <C>                                                                 <C>
Section 1.  Purpose.........................................................   .1

Section 2.  Definitions.....................................................   .1

Section 3.  Administration..................................................   .4

Section 4.  Common Stock Subject to the Plan................................   .5

Section 5.  Eligibility to Receive Awards...................................   .6

Section 6.  Stock Options...................................................   .6

Section 7.  Stock Appreciation Rights.......................................   10

Section 8.  Performance Unit Awards.........................................   12

Section 9.  Restricted Stock Awards.........................................   13

Section 10. Stock Bonus Awards..............................................   15

Section 11. Loans...........................................................   16

Section 12. Securities Law Requirements.....................................   16

Section 13. Restrictions on Transfer; Representations
 of Participant; Legends. ..................................................   16

Section 14. Right of Repurchase.............................................   17

Section 15. Right of First Refusal..........................................   19

Section 16. Single or Multiple Agreements...................................   20

Section 17. Rights of a Stockholder.........................................   20

Section 18. No Right to Continue Employment or Service......................   20

Section 19. Withholding.....................................................   20

Section 20. Indemnification.................................................   20

Section 21. Non-Assignability...............................................   20

Section 22. Nonuniform Determinations.......................................   21

Section 23. Adjustments.....................................................   21

Section 24. Termination and Amendment.......................................   21

Section 25. Severability....................................................   21

Section 26. Effect on Other Plans...........................................   22

Section 27. Effective Date of the Plan......................................   22

Section 28. Governing Law...................................................   22

Section 29. Gender and Number...............................................   22

Section 30. Acceleration of Exercisability and Vesting......................   22

Section 31. Modification of Awards..........................................   22

Section 32. No Strict Construction..........................................   22

Section 33. Successors......................................................   23

Section 34. Plan Provisions Control.........................................   23

Section 35. Headings........................................................   23
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                              MILLENNIUM CELL INC.
                             2000 STOCK OPTION PLAN

      SECTION 1. PURPOSE. The purpose of the Millennium Cell Inc. 2000 Stock
Option Plan (the "Plan") is to foster and promote the long-term financial
success of Millennium Cell Inc., a Delaware corporation (the "Company"), and its
Subsidiaries and thereby increase stockholder value. The Plan provides for the
award of long-term incentives to those directors, consultants, advisers,
officers and other employees who make substantial contributions to the Company
or its Subsidiaries by their loyalty, industry and invention.

      SECTION 2. DEFINITIONS. For purposes of this Plan, the following terms
used herein shall have the following meanings, unless a different meaning is
clearly required by the context.

      2.1   "Board" means the Board of Directors of the Company.

      2.2 "Cause" means any one of the following: the Participant's conviction
for any felony crime, the Participant's refusal to perform his or her assigned
duties, engaging in any act of fraud injurious to the Company or any Subsidiary,
the Participant's breach of any contract where such breach is materially
injurious to the Company or any Subsidiary, engaging in any conduct that
constitutes willful gross neglect with respect to the Company or any Subsidiary
and engaging in willful misconduct that results in material economic harm to the
Company or any Subsidiary.

      2.3   "Change of Control" means the occurrence of any of the following:

                  (i)   the Board votes to approve:

                        (A) any consolidation or merger of the Company pursuant
to which less than 50% of the outstanding voting securities of the surviving or
resulting company are owned by the individuals or entities which were
shareholders of the Company prior to the consolidation or merger;

                        (B) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all, or substantially all,
of the assets of the Company other than any sale, lease, exchange or other
transfer to any company where the Company owns, directly or indirectly, 100% of
the outstanding voting securities of such company after any such transfer;

                  (ii) any person (as such term is used in Section 13(d) of the
Exchange Act), other than one or more current shareholders, the Company, a
Subsidiary, or one or more employee benefit plans established by the Company for
the benefit of employees of the Company or its subsidiaries, shall become the
beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act)
whether directly, indirectly, beneficially or of record, of 35% or more of
outstanding Common Stock (other than as the result of an initial public
offering);

                  (iii) commencement by any entity, person, or group (including
any affiliate thereof, other than the Company) of a tender offer or exchange
offer where the offeree acquires more than 50% of the outstanding voting
securities of the Company.

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      2.4   "Code" means the Internal Revenue Code of 1986, as amended.

      2.5   "Committee" shall have the meaning provided in Section 3 of the
            Plan.

      2.6   "Common Stock" means the common stock, $.001 par value, of the
            Company.

      2.7 "Constructive Discharge" means upon or within 18 months of a "Change
in Control," the termination of a Participant's Continuous Service by the
Participant on account of (i) a material reduction in the Participant's
compensation, (ii) a material reduction in the level or scope of job
responsibility or status of the Participant occurring without the Participant's
consent, or (iii) the relocation of a Participant to a location which is more
than 50 miles from the office of the Company where the Participant was
previously located to which the Participant has not agreed.

      2.8 "Continuous Service" means that the Participant's service with the
Company or any Subsidiary whether as an employee, officer, director, adviser or
consultant, is not interrupted or terminated. Subject to Section 2.7 above, the
Participant's Continuous Service shall not be deemed to have terminated merely
because of a change in the capacity in which the Participant renders service to
the Company or any Subsidiary as an employee, officer, consultant, adviser or
director or a change in the entity for which the Participant renders such
service, provided that there is no interruption or termination of the
Participant's Continuous Service. For example, a change in status from an
employee of the Company to a consultant of a Subsidiary or a director will not
constitute an interruption of Continuous Service. The Board or the chief
executive officer of the Company, in that party's sole discretion, may determine
whether Continuous Service shall be considered interrupted in the case of any
leave of absence approved by that party, including sick leave, military leave or
any other personal leave.

      2.9 "Disability" means, as it relates to the exercise of an Incentive
Stock Option after termination of employment, a disability within the meaning of
Section 22(e)(3) of the Code, and for all other purposes, a mental or physical
condition which, in the opinion of the Committee, renders a Participant unable
or incompetent to carry out the job responsibilities which such Participant held
or the tasks to which such Participant was assigned at the time the disability
was incurred, and which is expected to be permanent or for an indefinite
duration exceeding one year.

      2.10 "Effective Date" shall have the meaning provided in Section 27 of the
Plan.

      2.11 "Exchange Act" means the Securities Exchange Act of 1934, as amended.

      2.12 "Fair Market Value" means, as determined by the Committee, the last
sale price as quoted on the National Market System on the trading day
immediately preceding the date for which the determination is being made or, in
the event that no such sale takes place on such day, the average of the reported
closing bid and asked prices on such day, or, if the Common Stock of the Company
is listed on a national securities exchange, the last reported sale price on the
principal national securities exchange on which the Common Stock is listed or
admitted to trading on the trading day immediately preceding the date for which
the determination is being made or, if no such reported sale takes place on such
day, the average of the closing bid and asked prices on such day on the
principal national securities exchange on which the Common Stock is listed or
admitted to trading, or if the Common Stock is not quoted on such National

                                      -2-
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Market System nor listed or admitted to trading on a national securities
exchange, then the average of the closing bid and asked prices on the day
immediately preceding the date for which the determination is being made in the
over-the-counter market as reported by NASDAQ or, if bid and asked prices for
the Common Stock on such day shall not have been reported through NASDAQ, the
average of the bid and asked prices for such day as furnished by any New York
Stock Exchange member firm regularly making a market in the Common Stock
selected for such purpose by the Board or a committee thereof. If none of the
foregoing is applicable, then the fair market value of the Common Stock shall be
its value as determined in connection with the Company's most recent corporate
financing; provided, however, that if a significant event (as determined in good
faith by the Committee in its sole discretion) has occurred with respect to the
Company since the Company's most recent corporate financing, the value of the
Common Stock shall be determined in good faith by the Committee in its sole
discretion.

      2.13 "Immediate Family" means the Participant's spouse, parents, children,
stepchildren, adoptive relationships, sisters, brothers and grandchildren (and,
for this purpose, shall also include the Participant.

      2.14 "Incentive Stock Option" means a stock option granted under the Plan
which is intended to be designated as an "incentive stock option" within the
meaning of Section 422 of the Code.

      2.15 "Listing Date" means the first date upon which any security of the
Company is listed (or approved for listing) upon notice of issuance on any
securities exchange or designated (or approved for designation) upon notice of
issuance as a national market security on an interdealer quotation system.

      2.16 "Non-Qualified Stock Option" means a stock option granted under the
Plan which is not intended to be an Incentive Stock Option, including any stock
option that provides (as of the time such option is granted) that it will not be
treated as an Incentive Stock Option nor as an option described in Section
423(b) of the Code.

      2.17 "Parent Company" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if, at the time of the
granting of the option, each of the corporations other than the Company owns
stock possessing 50 percent or more of the combined voting power of all classes
of stock in one of the other corporations in the chain.

      2.18 "Participant" shall mean any employee, director or officer of, or key
adviser or consultant to, the Company or any Subsidiary to whom an award is
granted under the Plan.

      2.19 "Performance Unit Award" means an award made pursuant to Section 8.

      2.20 "Plan Year" means the twelve-month period beginning on January 1 and
ending on December 31; provided, however, that the first Plan Year shall be a
short Plan Year beginning on the Effective Date and ending on December 31, 2000.

      2.21 "Restricted Stock Award" means an award of shares of Common Stock
pursuant to Section 9.

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      2.22 "Retirement" means termination of a Participant's Continuous Service
on or after the Participant's 65th birthday other than as a result of death,
Disability or termination for Cause.

      2.23 "Stock Appreciation Right" means an award made pursuant to Section 7.

      2.24 "Stock Bonus Award" means an award made pursuant to Section 10.

      2.25 "Stock Option" means any option to purchase Common Stock granted
pursuant to Section 6.

      2.26 "Subsidiary" means: (i) as it relates to Incentive Stock Options, any
corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company if, at the time of the granting of the option, each
of the corporations (other than the last corporation in the unbroken chain) owns
stock possessing 50 percent or more of the total combined voting power of all
classes of stock in one of the other corporations in the chain; and (ii) for all
other purposes, a company, domestic or foreign, of which not less than 50
percent of the voting shares are held by the Company or by a Subsidiary, whether
or not such company now exists or is hereafter organized or acquired by the
Company or by a Subsidiary .

      2.27 "Term of the Plan" means the period beginning on the Effective Date
and ending on the earlier to occur of (i) the date the Plan is terminated by the
Committee in accordance with Section 24 and (ii) the date which is ten years
from the Effective Date.

      SECTION 3. ADMINISTRATION. The Plan shall be administered by the Board or
a committee of the Board (as the Board in its sole discretion shall determine);
provided, however, that if the Company registers any class of equity security
pursuant to Section 12 of the Exchange Act, and if the Plan is to be
administered by a committee, then such committee shall consist of two or more
members of the Board, each of whom shall each qualify as a "Non-employee
Director" within the meaning of Rule 16b-3 of the Exchange Act and also qualify
as an "outside director" within the meaning of Section l62(m) of the Code and
regulations pursuant thereto. For purposes of the Plan, the Board acting in this
capacity or the Committee described in the preceding sentence shall be referred
to as the "Committee". The Committee shall have the power and authority to grant
to eligible persons pursuant to the terms of the Plan: (1) Stock Options, (2)
Stock Appreciation Rights, (3) Restricted Stock Awards, (4) Performance Unit
Awards, (5) Stock Bonus Awards, or (6) any combination of the foregoing.

      The Committee shall have authority in its discretion to interpret the
provisions of the Plan and to decide all questions of fact arising in its
application; to select the persons to whom awards shall be made under the Plan;
to determine whether and to what extent awards shall be made under the Plan; to
determine the types of award to be made and the amount, size, terms and
conditions of each such award; to determine the time when the awards shall be
granted; to determine whether, to what extent and under what circumstances
Common Stock and other amounts payable with respect to an award under the Plan
shall be deferred either automatically or at the election of the Participant; to
adopt, alter and repeal such administrative rules, guidelines and practices
governing the Plan as it shall from time to time deem advisable; and to make all
other determinations necessary or advisable for the administration of the Plan.

                                      -4-
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      The Committee shall have authority in its discretion to vary the terms of
the Plan to the extent necessary to comply with federal, state or local law. The
Committee also shall have the authority in its discretion to vary the terms of
the Plan and any award: (i) to the extent necessary to comply with federal,
state or local law; (ii) to change the period over which awards vest and are
exercisable (which period may be accelerated or extended at any time and from
time to time in the discretion of the Committee) including in the event of
termination of a Participant's Continuous Service; and (iii) to waive
performance objectives and targets.

      Notwithstanding anything in the Plan to the contrary, with respect to any
Participant or eligible person who is resident outside of the United States, the
Committee may, in its sole discretion, amend the terms of the Plan in order to
conform such terms with the requirements of local law or to meet the objectives
of the Plan. The Committee may, where appropriate, establish one or more
sub-plans for this purpose.

      All decisions made by the Committee pursuant to the provisions of the Plan
shall be final and binding on all persons who participate in the Plan.

      All expenses and liabilities incurred by the Committee in the
administration of the Plan shall be borne by the Company. The Committee may
employ attorneys, consultants, accountants or other persons in connection with
the administration of the Plan. The Company, and its officers and directors,
shall be entitled to rely upon the advice, opinions or valuations of any such
persons.

      SECTION 4.  COMMON STOCK SUBJECT TO THE PLAN.

      4.1 Share Reserve. There shall be reserved and available for issuance
under the Plan 5,500,000 shares of Common Stock, subject to such adjustment as
may be made pursuant to Section 23.

      4.2 Source of Shares/Reversion of Shares. Such shares may consist in whole
or in part of authorized and unissued shares or treasury shares or any
combination thereof as the Committee may determine. Except as otherwise provided
herein, any shares subject to an option or right which for any reason expires or
is terminated unexercised, becomes unexercisable, or is forfeited or otherwise
terminated, surrendered or canceled as to any shares, or if any shares of Common
Stock are surrendered to the Company in connection with any award (whether or
not such surrendered shares were acquired pursuant to any award), or if any
shares are withheld by the Company, the shares subject to such award and the
surrendered and withheld shares shall thereafter be available for further awards
under the Plan; provided, however, that any such shares that are surrendered to
or withheld by the Company in connection with any award or that are otherwise
forfeited after issuance shall not be available for purchase pursuant to
Incentive Stock Options. No awards may be granted following the end of the Term
of the Plan.

      4.3 Code Section 162(m) Limitation. The total number of shares of Common
Stock for which (i) Stock Options, (ii) Stock Appreciation Rights, and (iii)
Restricted Stock Awards and Stock Bonus Awards that are subject to the
attainment of performance criteria to protect against loss of deductibility
under Section 162(m) of the Code, may be granted to any employee during any
twelve month period shall not exceed 1,100,000 in the aggregate, subject to
adjustment

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pursuant to Section 23. The maximum amount that may be earned under Performance
Unit Awards that are subject to the attainment of performance criteria to
protect against loss of deductibility under Section 162(m) of the Code, by any
employee during any twelve month period shall not exceed $1,000,000. This
Section 4.3 shall not apply prior to the Listing Date and, following the Listing
Date, this Section 4.3 shall not apply until (i) the earliest of: (1) the first
material modification of the Plan (including any increase in the number of
shares of Common Stock reserved for issuance under the Plan in accordance with
Section 4.1); (2) the issuance of all of the shares of Common Stock reserved for
issuance under the Plan; (3) the expiration of the Plan; or (4) the first
meeting of shareholders at which directors are to be elected that occurs after
the close of the third calendar year following the calendar year in which
occurred the first registration of an equity security under Section 12 of the
Exchange Act; or (ii) such other date required by Section 162(m) of the Code and
the rules and regulations promulgated thereunder.

      SECTION 5. ELIGIBILITY TO RECEIVE AWARDS. An award may be granted to any
employee, director, or officer of, or key adviser or consultant to, the Company
or any Subsidiary, who is responsible for or contributes to the management,
growth or success of the Company or any Subsidiary, provided that bona fide
services shall be rendered by consultants or advisers to the Company or its
Subsidiaries and such services must not be in connection with the offer and sale
of securities in a capital-raising transaction and must not directly or
indirectly promote or maintain a market for the Company's securities. Subject to
the preceding sentence, the Committee shall have the sole authority to select
the persons to whom an award is to be granted hereunder and to determine what
type of award is to be granted to each such person. No person shall have any
right to participate in the Plan. Any person selected by the Committee for
participation during any one period will not by virtue of such participation
have the right to be selected as a Participant for any other period.

      SECTION 6. STOCK OPTIONS. A Stock Option may be an Incentive Stock Option
or a Non-Qualified Stock Option. Only employees of the Company or any Parent or
Subsidiary of the Company are eligible to receive Incentive Stock Options. To
the extent that any Stock Option does not qualify as an Incentive Stock Option,
it shall constitute a separate Non-Qualified Stock Option. Stock Options may be
granted alone or in addition to other awards granted under the Plan. The terms
and conditions of each Stock Option granted under the Plan shall be specified by
the Committee, in its sole discretion, and shall be set forth in a written
option agreement between the Company and the Participant in such form as the
Committee shall approve from time to time. No person shall have any rights under
any Stock Option granted under the Plan unless and until the Company and the
person to whom such Stock Option shall have been granted shall have executed and
delivered an agreement expressly granting the Stock Option to such person and
containing provisions setting forth the terms for the Stock Option. The terms
and conditions of each Incentive Stock Option shall be such that each Incentive
Stock Option issued hereunder shall constitute and shall be treated as an
"incentive stock option" as defined in Section 422 of the Code. The terms and
conditions of each Non-Qualified Stock Option will be such that each
Non-Qualified Stock Option issued hereunder shall not constitute nor be treated
as an "incentive stock option" as defined in Section 422 of the Code or an
option described in Section 423(b) of the Code and will be a "non-qualified
stock option" for federal income tax purposes. The terms and conditions of any
Stock Option granted hereunder need not be identical to those of any other Stock
Option granted hereunder. The agreements shall contain in substance

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the following terms and conditions and may contain such additional terms and
conditions, not inconsistent with the terms of the Plan, as the Committee shall
deem desirable:

      6.1 Type of Option. Each option agreement shall identify the option
represented thereby as an Incentive Stock Option or a Non-Qualified Stock
Option, as the case may be.

      6.2 Option Price. The Incentive Stock Option exercise price shall be fixed
by the Committee but shall in no event be less than 100 percent (or 110 percent
in the case of an employee referred to in Section 6.7(ii) below) of the Fair
Market Value of the shares of Common Stock subject to the Incentive Stock Option
on the date the Incentive Stock Option is granted. The Non-Qualified Stock
Option exercise price shall be fixed by the Committee but in no event shall be
less than the par value of the Common Stock.

      6.3 Exercise Term. Each option agreement shall state the period or periods
of time within which the Stock Option may be exercised, in whole or in part,
which shall be such period or periods of time as may be determined by the
Committee, provided that no Stock Option shall be exercisable after ten years
from the date of grant thereof (or, in the case of an Incentive Stock Option
granted to an employee referred to in Section 6.7(ii) below, such term shall in
no event exceed five (5) years from the date on which such Incentive Stock
Option is granted); provided further, each option granted under the Plan shall
become exercisable six (6) months after the grant date, unless specifically
stipulated otherwise under the option agreement. The Committee shall have the
power to permit an acceleration of previously established exercise terms,
subject to the requirements set forth herein, upon such circumstances and
subject to such terms and conditions as the Committee deems appropriate.

      6.4 Payment for Shares. A Stock Option shall be deemed to be exercised
when written notice of such exercise has been given to the Company in accordance
with the terms of the option agreement by the Participant entitled to exercise
the Stock Option and full payment for the shares of Common Stock with respect to
which the Stock Option is exercised has been received by the Company. The
Committee, in its sole discretion, may permit all or part of the payment of the
exercise price to be made, to the extent permitted by applicable statutes and
regulations, either: (i) in cash, by check or wire transfer, (ii) in any other
form of legal consideration as provided for under the terms of the Stock Option
agreement, or (iii) in the event the Common Stock is listed on any United States
securities exchange or traded on NASDAQ or on an over-the-counter quotation
system in the United States, through the delivery of irrevocable instructions to
a broker to deliver property to the Company in an amount equal to the aggregate
exercise price for the shares being purchased. In lieu of payment in fractions
of shares, payment of any fractional share amount shall be made in cash or check
payable to the Company. No shares of Common Stock shall be issued to any
Participant upon exercise of a Stock Option until the Company receives full
payment therefor as described above. Upon the receipt of notice of exercise and
full payment for the shares of Common Stock, the shares of Common Stock shall be
deemed to have been issued and the Participant shall be entitled to receive such
shares of Common Stock and shall be a stockholder with respect to such shares,
and the shares of Common Stock shall be considered fully paid and nonassessable.
No adjustment will be made for a dividend or other right for which the record
date is prior to the date on which the stock certificate is issued, except as
provided in Section 23 of the Plan. Each exercise of a Stock

                                      -7-
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Option shall reduce, by an equal number, the total number of shares of Common
Stock that may thereafter be purchased under such Stock Option.

      6.5 Rights upon Termination of Continuous Service or Change of Control.
Unless otherwise determined by the Committee and set forth in the option
agreement, in the event that a Participant's Continuous Service terminates for
any reason, other than death, Retirement, Disability, or for Cause, any rights
of the Participant under any Stock Option shall immediately terminate; provided,
however, that the Participant (or any successor or legal representative) shall
have the right to exercise the Stock Option (to the extent that the Stock Option
was exercisable at the time of termination) within a period equal to the lesser
of: (i) three (3) months after the effective date of such termination of
Continuous Service, and (ii) the remainder of the term set forth in the Stock
Option agreement.

           Unless otherwise determined by the Committee and set forth in the
option agreement, in the event that a Participant's Continuous Service
terminates for Cause, the Participant (or any successor or legal representative)
shall not have any rights under any Stock Option, and the Company shall not be
obligated to sell or deliver shares of Common Stock (or have any other
obligation or liability) under the Plan. The Committee shall determine in its
sole discretion whether the Participant's Continuous Service shall have been
terminated for Cause. In the event of such determination, the Participant (or
any successor or legal representative) shall have no right under any Stock
Option to purchase any shares of Common Stock regardless of whether the
Participant (or any successor or legal representative) shall have delivered a
notice of exercise prior to the making of such determination. Any Stock Option
may be terminated entirely by the Committee at the time or at any time
subsequent to a determination by the Committee under this Section 6.5 which has
the effect of eliminating the Company's obligation to sell or deliver shares of
Common Stock under such Stock Option.

      Unless otherwise determined by the Committee and set forth in the option
agreement, in the event that a Participant's Continuous Service terminates due
to a Participant's Retirement prior to the expiration of the Stock Option and
without the Participant's having fully exercised the Stock Option, the Stock
Option shall be deemed to be fully exercisable, and the Participant or his
successor or legal representative shall have the right to exercise the Stock
Option within a period of three (3) months following such Retirement.

      Unless otherwise determined by the Committee and set forth in the option
agreement, in the event that a Participant's Continuous Service terminates due
to a Participant's Disability prior to the expiration of the Stock Option and
without the Participant's having fully exercised the Stock Option, the Stock
Option shall be deemed to be exercisable as the Committee, in its sole
discretion, may determine, and the Participant or his successor or legal
representative shall have the right to exercise the Stock Option within the
period determined by the Committee.

      Unless otherwise determined by the Committee and set forth in the option
agreement, in the event that a Participant's Continuous Service terminates due
to a Participant's death prior to the expiration of the Stock Option and without
the Participant's having fully exercised the Stock Option, the Stock Option
shall be deemed to be fully exercisable, and the Participant's successor or
legal representative shall have the right to exercise the Stock Option within a
period of twelve (12) months following the Participant's death.

                                      -8-
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      The Stock Option agreement may, but need not, include a provision whereby
the Participant may elect at any time before the Participant's Continuous
Service terminates to exercise the Stock Option as to any part or all of the
shares of Common Stock subject to the Stock Option prior to the full vesting of
the Stock Option. Any unvested shares of Common Stock so purchased may be
subject to a repurchase option in favor of the Company (including but not
limited to the Right of Repurchase under Section 14) or to any other restriction
the Committee determines to be appropriate.

      Unless otherwise determined by the Committee and set forth in the option
agreement, in the event of a Change of Control prior to the date a Participant's
Continuous Service terminates, each outstanding Stock Option granted to such
Participant shall be assumed or an equivalent Stock Option substituted by the
successor corporation (or a parent or subsidiary of the successor corporation).
In the event that the successor corporation (or a parent or subsidiary of the
successor corporation) refuses to assume or substitute for each Stock Option,
each Stock Option shall continue to vest and be exercisable in accordance with
the terms and conditions of each such Stock Option. Notwithstanding any
provision of this Plan to the contrary, in the event that any Participant who is
an officer of the Company or a Subsidiary has his or her Continuous Service
terminated by reason of a Constructive Discharge, each unexercised Stock Option
granted to such Participant shall immediately become 100% vested and exercisable
as of the date of the termination of such Participant's Continuous Service.

      6.6 Re-load Options. Without in any way limiting the authority of the
Committee to make or not to make grants of Stock Options hereunder, the
Committee shall have the authority (but not an obligation) to include as part of
any Stock Option a provision entitling the Participant to a further Stock Option
(a "Re-Load Option") in the event the Participant exercises the original Stock
Option, in whole or in part, by surrendering other shares of Common Stock in
accordance with this Plan and the terms and conditions of the Stock Option
agreement. Any such Re-Load Option shall (i) provide for a number of shares of
Common Stock equal to the number of shares of Common Stock surrendered as part
or all of the exercise price of such Stock Option; (ii) have an expiration date
which is the same as the expiration date of the Stock Option the exercise of
which gave rise to such Re-Load Option; and (iii) have an exercise price fixed
by the Committee, but in no event shall the exercise price be less than the par
value of the Common Stock. Notwithstanding the foregoing, a Re-Load Option shall
be subject to the same exercise price and term provisions heretofore described
for Stock Options under the Plan.

      Any such Re-Load Option may be an Incentive Stock Option or a
Non-Qualified Stock Option, as the Committee may designate at the time of the
grant of the original Stock Option; provided, however, the designation of any
Re-Load Option as an Incentive Stock Option shall be subject to the $100,000
annual limitation on the exercisability of Incentive Stock Options described in
Section 6.7 and in Section 422(d) of the Code. Furthermore, any Re-Load Option
designated as an Incentive Stock Option shall have an exercise price which is
equal to 100 percent of the Fair Market Value of the Common Stock subject to the
Re-Load Option on the date of exercise of the original Stock Option. There shall
be no Re-Load Options on a Re-Load Option. Any such Re-Load Option shall be
subject to the availability of sufficient shares of Common Stock under Section
4.1 and the limitation on the grants of Stock Options under Section 4.3 and
shall be subject to such other terms and conditions as the Committee may
determine which are not inconsistent with the express provisions of the Plan
regarding the terms of Stock Options.

                                      -9-
<PAGE>

      6.7 Special Incentive Stock Option Rules. Notwithstanding the foregoing,
in the case of an Incentive Stock Option, each option agreement shall contain
such other terms, conditions and provisions as the Committee determines
necessary or desirable in order to qualify such Stock Option as an Incentive
Stock Option under the Code including, without limitation, the following:

                  (i) To the extent that the aggregate Fair Market Value
(determined as of the time the option is granted) of the Common Stock, with
respect to which Incentive Stock Options granted under this Plan (and all other
plans of the Company and its Subsidiaries) become exercisable for the first time
by any person in any calendar year, exceeds $100,000, such options shall be
treated as Non-Qualified Stock Options; and

                  (ii) No Incentive Stock Option shall be granted to any
employee if, at the time the Incentive Stock Option is granted, the employee (by
reason of the attribution rules applicable under Section 424(d) of the Code)
owns more than 10 percent of the combined voting power of all classes of stock
of the Company or any Parent or Subsidiary unless at the time such Incentive
Stock Option is granted the option price is at least 110 percent of the Fair
Market Value (determined as of the time the Incentive Stock Option is granted)
of the shares of Common Stock subject to the Incentive Stock Option and such
Incentive Stock Option by its terms is not exercisable after the expiration of
five years from the date of grant.

If an Incentive Stock Option is exercised after the expiration of the exercise
periods that apply for purposes of Section 422 of the Code, such Stock Option
shall thereafter be treated as a Non-Qualified Stock Option.

      SECTION 7. STOCK APPRECIATION RIGHTS. Stock Appreciation Rights entitle
Participants to increases in the Fair Market Value of shares of Common Stock.
The terms and conditions of each Stock Appreciation Right granted under the Plan
shall be specified by the Committee, in its sole discretion, and shall be set
forth in a written agreement between the Company and the Participant in such
form as the Committee shall approve from time to time. The agreements shall
contain in substance the following terms and conditions and may contain such
additional terms and conditions, not inconsistent with the terms of the Plan, as
the Committee shall deem desirable:

      7.1 Award. Stock Appreciation Rights shall entitle the Participant,
subject to such terms and conditions determined by the Committee, to receive
upon exercise thereof an award equal to all or a portion of the excess of: (i)
the Fair Market Value of a specified number of shares of Common Stock at the
time of exercise, over (ii) a specified price which shall not be less than 100
percent of the Fair Market Value of the Common Stock at the time the right is
granted or, if connected with a previously issued Stock Option, not less than
100 percent of the Fair Market Value of the Common Stock at the time such Stock
Option was granted. Such amount may be paid by the Company in cash, Common Stock
(valued at its then Fair Market Value) or any combination thereof, as the
Committee may determine. Stock Appreciation Rights may be, but are not required
to be, granted in connection with a previously or contemporaneously granted
Stock Option. In the event of the exercise of a Stock Appreciation Right, the
number of shares reserved for issuance hereunder shall be reduced by the number
of shares covered by the Stock Appreciation Right.

                                      -10-
<PAGE>
      7.2 Term. Each agreement shall state the period or periods of time within
which the Stock Appreciation Right may be exercised, in whole or in part,
subject to such terms and conditions prescribed for such purpose by the
Committee provided that no Stock Appreciation Right shall be exercisable prior
to six months nor after ten years from the date of grant thereof. The Committee
shall have the power to permit an acceleration of previously established
exercise terms, subject to the requirements set forth herein, upon such
circumstances and subject to such terms and conditions as the Committee deems
appropriate.

      7.3 Rights upon Termination of Continuous Service or Change of Control.
Unless otherwise determined by the Committee and set forth in the Stock
Appreciation Right agreement, in the event that a Participant's Continuous
Service terminates for any reason, other than death, Retirement, Disability or
for Cause, any rights of the Participant under any Stock Appreciation Right
shall immediately terminate; provided, however, that the Participant (or any
successor or legal representative) shall have the right to exercise the Stock
Appreciation Right (to the extent that the Stock Appreciation Right was
exercisable at the time of termination) within a period equal to the lesser of
(i) three (3) months after the effective date of such termination of Continuous
Service, and (ii) the remainder of term set forth in the Stock Appreciation
Right.

      Unless otherwise determined by the Committee and set forth in the Stock
Appreciation Right agreement, in the event that a Participant's Continuous
Service terminates for Cause, the Participant (or any successor or legal
representative) shall not have any rights under any Stock Appreciation Right,
and the Company shall not be obligated to pay or deliver any cash, Common Stock
or any combination thereof (or have any other obligation or liability) under any
Stock Appreciation Right. The Committee shall determine in its sole discretion
whether the Participant's Continuous Service shall have been terminated for
Cause. In the event of such determination, the Participant (or any successor or
legal representative) shall have no right under any Stock Appreciation Right to
purchase any shares of Common Stock regardless of whether the Participant (or
any successor or legal representative) shall have delivered a notice of exercise
prior to the making of such determination. Any Stock Appreciation Right may be
terminated entirely by the Committee at the time of or at any time subsequent to
the determination by the Committee under this Section 7.3 which has the effect
of eliminating the Company's obligations under such Stock Appreciation Right.

      Unless otherwise determined by the Committee and set forth in the Stock
Appreciation Right agreement, in the event that a Participant's Continuous
Service terminates due to a Participant's Retirement prior to the expiration of
the Stock Appreciation Right and without the Participant's having fully
exercised the Stock Appreciation Right, the Stock Appreciation Right shall be
deemed to be fully exercisable, and the Participant or his successor or legal
representative shall have the right to exercise the Stock Appreciation Right
within a period of three (3) months following such Retirement.

      Unless otherwise determined by the Committee and set forth in the Stock
Appreciation Right agreement, in the event that a Participant's Continuous
Service terminates due to a Participant's Disability prior to the expiration of
the Stock Appreciation Right and without the Participant's having fully
exercised the Stock Appreciation Right, the Stock Appreciation Right shall be
deemed to be exercisable as the Committee, in it's sole discretion, may
determine, and

                                      -11-
<PAGE>
the Participant or his successor or legal representative shall have the right to
exercise the Stock Appreciation Right within the period determined by the
Committee.

      Unless otherwise determined by the Committee and set forth in the Stock
Appreciation Right agreement, in the event that a Participant's Continuous
Service terminates due to a Participant's death prior to the expiration of the
Stock Appreciation Right and without the Participant's having fully exercised
the Stock Appreciation Right, the Stock Appreciation Right shall be deemed to be
fully exercisable, and the Participant's successor or legal representative shall
have the right to exercise the Stock Appreciation Right within a period of
twelve (12) months following the Participant's death.

      Unless otherwise determined by the Committee and set forth in the Stock
Appreciation Right agreement, in the event of a Change of Control prior to the
date a Participant's Continuous Service terminates, each outstanding Stock
Appreciation Right granted to such Participant shall be assumed or an equivalent
Stock Appreciation Right substituted by the successor corporation (or a parent
or subsidiary of the successor corporation). In the event that the successor
corporation (or a parent or subsidiary of the successor corporation) refuses to
assume or substitute for each Stock Appreciation Right, each Stock Appreciation
Right shall continue to vest and be exercisable in accordance with the terms and
conditions of each such Stock Appreciation Right. Notwithstanding any provision
of this Plan to the contrary, in the event that any Participant who is an
officer of the Company or a Subsidiary has his or her Continuous Service
terminated by reason of a Constructive Discharge, each unexercised Stock
Appreciation Right granted to such Participant shall immediately become 100%
vested and exercisable as of the date of the termination of such Participant's
Continuous Service.

      SECTION 8. PERFORMANCE UNIT AWARDS. Performance Unit Awards under the Plan
shall entitle Participants to future payments based upon the achievement of
preestablished long-term performance objectives. The terms and conditions of
each Performance Unit Award granted under the Plan shall be specified by the
Committee, in its sole discretion, and shall be set forth in a written agreement
between the Company and the Participant in such form as the Committee shall
approve from time to time. The agreements shall contain in substance the
following terms and conditions and may contain such additional terms and
conditions, not inconsistent with the terms of the Plan, as the Committee shall
deem desirable:

      8.1 Performance Period. The Committee shall establish with respect to each
Performance Unit Award a performance period as determined by the Committee in
its discretion.

      8.2 Unit Value. The Committee shall establish with respect to each
Performance Unit Award a value for each unit which shall not thereafter change
or which may vary thereafter on the basis of criteria specified by the
Committee.

      8.3 Performance Targets. The Committee shall establish with respect to
each Performance Unit Award maximum and minimum performance targets to be
achieved during the applicable performance period. The achievement of maximum
targets shall entitle a Participant to payment with respect to the full value of
a Performance Unit Award. The achievement of less than the maximum targets, but
in excess of the minimum targets, shall entitle a Participant to payment with
respect to a portion of a Performance Unit Award according to the level of

                                      -12-
<PAGE>
achievement of targets as specified by the Committee. To the extent the
Committee deems necessary or appropriate to protect against the loss of
deductibility pursuant to Section 162(m) of the Code, such targets shall be
established in conformity with the requirements of Section 162(m) of the Code.

      8.4 Performance Measures. Performance targets established by the Committee
shall relate to corporate, division, subsidiary, group or unit performance and
may be established in terms of growth in gross revenue, earnings per share, or
ratios of earnings to equity or assets, net profits, stock price, market share,
sales or costs or, with respect to Participants not subject to Section 162(m) of
the Code, such other measures or standards determined by the Committee in its
discretion. Multiple targets may be used and may have the same or different
weighting, and they may relate to absolute performance or relative performance
measured against other companies or businesses.

      8.5 Adjustments. At any time prior to payment of a Performance Unit Award,
the Committee may adjust previously established performance targets or other
terms and conditions, including the Company's or other company's financial
performance, for Plan purposes, in order to reduce or eliminate, but not to
increase, the payment with respect to a Performance Unit Award that would
otherwise be due upon attainment of a preestablished performance objective. Such
adjustments shall be made to reflect major unforeseen events such as changes in
laws, regulations or accounting practices, mergers, acquisitions or divestitures
or other extraordinary, unusual or nonrecurring items or events.

      8.6 Payment of Performance Unit Awards. Following the conclusion of each
performance period, the Committee shall determine the extent to which
performance targets have been attained, and any other terms and conditions
satisfied, for such period. The Committee shall determine what, if any, payment
is due on the Performance Unit Award and whether such payment shall be made in
cash, Common Stock or a combination thereof. Payment shall be made in a lump sum
or installments, as determined by the Committee, commencing as promptly as
practicable following the end of the performance period unless deferred subject
to such terms and conditions and in such form as may be prescribed by the
Committee.

      8.7 Termination of Continuous Service or Change of Control. In the event
that a Participant's Continuous Service terminates for any reason, other than
death or Disability, any rights of the Participant or his successor or legal
representative under any Performance Unit Award shall immediately terminate.

      In the event that a Participant's Continuous Service terminates because
such Participant dies or suffers a Disability, or in the event of a Change of
Control prior to the date a Participant's Continuous Service terminates, the
Committee may, in its sole discretion, pay to the Participant or his successor
or legal representative all or any portion of any Performance Unit Award to the
extent earned under the applicable performance targets regardless of whether the
applicable performance period has ended, pursuant to such terms as the Committee
in its sole discretion shall determine.

      SECTION 9. RESTRICTED STOCK AWARDS. Restricted Stock Awards shall consist
of shares of Common Stock restricted against transfer ("Restricted Stock"),
subject to a substantial risk of

                                      -13-
<PAGE>

forfeiture and other terms and conditions intended to further the purpose of the
Plan. The terms and conditions of each Restricted Stock Award granted under the
Plan shall be specified by the Committee, in its sole discretion, and shall be
set forth in a written agreement between the Company and the Participant in such
form as the Committee shall approve from time to time. The agreements shall
contain in substance the following terms and conditions and may contain such
additional terms and conditions, not inconsistent with the terms of the Plan, as
the Committee shall deem desirable:

      9.1 Restriction Period. Restricted Stock Awards shall be subject to the
above-described restrictions over such period as the Committee determines. To
the extent the Committee deems necessary or appropriate to protect against loss
of deductibility pursuant to Section 162(m) of the Code, Restricted Stock Awards
to certain Participants may also be subject to certain conditions with respect
to attainment of one or more preestablished performance objectives which shall
relate to corporate, subsidiary, division, group or unit performance in terms of
growth in gross revenue, earnings per share or ratios of earnings to equity or
assets; provided that such objectives may be adjusted to reduce or eliminate,
but not to increase, an award in order to take into account unforeseen events or
changes in circumstances.

      9.2 Restriction upon Transfer. Shares awarded, and the right to vote such
shares and to receive dividends thereon, may not be sold, assigned, transferred,
exchanged, pledged, hypothecated or otherwise encumbered, except as herein
provided or as provided in any agreement entered into between the Company and a
Participant in connection with the Plan, during the restriction period
applicable to such shares. Notwithstanding the foregoing, and except as
otherwise provided in the Plan, the Participant shall have all the other rights
of a stockholder including, but not limited to, the right to receive dividends
and the right to vote such shares.

      9.3 Certificates. Each certificate issued in respect of shares awarded to
a Participant shall be registered in the name of the Participant and deposited
with the Company, or its designee, and shall bear the following legend:

               "This certificate and the shares of stock represented hereby are
               subject to the terms and conditions (including forfeiture
               provisions and restrictions against transfer) contained in the
               Millennium Cell Inc. 2000 Stock Option Plan and a Restricted
               Stock Award Agreement entered into between the registered owner
               and Millennium Cell Inc. Release from such terms and conditions
               shall be obtained only in accordance with the provisions of the
               Plan and Agreement, a copy of each of which is on file in the
               office of the Secretary of Millennium Cell Inc."

Each Participant, as a condition of any Restricted Stock Award, shall have
delivered a stock power, endorsed in blank, relating to the Common Stock covered
by such award.

      9.4 Lapse of Restrictions. Except for preestablished performance
objectives established with respect to awards to Participants subject to Section
162(m) of the Code, the Committee may, in its sole discretion, provide for the
lapse of such restrictions in installments and may accelerate or waive such
restrictions in whole or in part based on such factors and such

                                      -14-
<PAGE>

circumstances as the Committee may determine. Upon the lapse of such
restrictions, shares of Common Stock, free of the restrictive legend set forth
in Section 9.3 above, shall be issued to the Participant or his legal
representative. The Committee shall have the power to permit, in its discretion,
an acceleration of the expiration of the applicable restrictions period with
respect to any part or all of the shares awarded to a Participant, except, with
respect to Participants subject to Section 162(m) of the Code, to the extent
such acceleration would result in the loss of the deductibility of an award to
the Company.

      9.5 Termination of Continuous Service or Change of Control. Unless
otherwise determined by the Committee and set forth in the Restricted Stock
agreement, in the event that a Participant's Continuous Service terminates for
any reason, other than death or Disability, any rights of the Participant or his
successors or legal representatives under any Restricted Stock Award that
remains subject to restrictions shall immediately terminate and any Restricted
Stock Award with unlapsed restrictions shall be forfeited to the Company without
payment of any consideration.

      Unless otherwise determined by the Committee and set forth in the
Restricted Stock agreement, in the event that a Participant's Continuous Service
terminates because such Participant dies or suffers a Disability, all remaining
shares of a Restricted Stock Award shall no longer be subject to any unlapsed
restrictions.

      Unless otherwise determined by the Committee and set forth in the
Restricted Stock agreement, in the event of a Change of Control prior to the
date a Participant's Continuous Service terminates, each share of a Restricted
Stock Award granted to such Participant shall be assumed or an equivalent
Restricted Stock Award substituted by the successor corporation (or a parent or
subsidiary of the successor corporation). In the event that the successor
corporation (or a parent or subsidiary of the successor corporation) refuses to
assume or substitute for each Restricted Stock Award, each Restricted Stock
Award shall continue to vest and be exercisable in accordance with the terms and
conditions of each such Restricted Stock Award. Notwithstanding any provision of
this Plan to the contrary, in the event that any Participant who is an officer
of the Company or a Subsidiary has his or her Continuous Service terminated by
reason of a Constructive Discharge, each Restricted Stock Award granted to such
Participant shall immediately become 100% vested and the Common Stock subject to
the Restricted Stock Award shall be fully vested Common Stock as of the date of
the termination of such Participant's Continuous Service.

      SECTION 10. STOCK BONUS AWARDS. The Committee may, in its sole discretion,
grant a Stock Bonus Award based upon corporate, division, subsidiary, group or
unit performance in terms of growth in gross revenue, earnings per share or
ratios of earnings to equity or assets or, with respect to Participants not
subject to Section 162(m) of the Code, such other measures or standards
determined by the Committee in its discretion; provided, that such performance
objectives may be adjusted to reduce or eliminate but not to increase an award
in order to take into account unforeseen events or changes in circumstances.

      The terms and conditions of each Stock Bonus Award granted under the Plan
shall be specified by the Committee, in its sole discretion, and shall be set
forth in a written agreement between the Company and the Participant in such
form as the Committee shall approve from

                                      -15-
<PAGE>

time to time. In addition to any applicable performance goals, shares of Common
Stock subject to a Stock Bonus Award may be: (i) subject to additional
restrictions (including, without limitation, restrictions on transfer), or (ii)
granted directly to a person free of any restrictions, not inconsistent with the
terms of the Plan, as the Committee shall deem desirable.

      SECTION 11. LOANS. The Committee may, in its sole discretion and to
further the purpose of the Plan, provide for loans to persons in connection with
all or any part of an award under the Plan. Any loan made pursuant to this
Section 11 shall be evidenced by a loan agreement, promissory note or other
instruments in such form and which shall contain such terms and conditions
(including, without limitation, provisions for interest, payment, schedules,
collateral, forgiveness, acceleration of such loans or parts thereof or
acceleration in the event of termination) as the Committee shall prescribe from
time to time. Notwithstanding the foregoing, each loan shall comply with all
applicable laws, regulations and rules of the Board of Governors of the Federal
Reserve System and any other governmental agency having jurisdiction.

      SECTION 12. SECURITIES LAW REQUIREMENTS. No shares of Common Stock shall
be issued upon the exercise or payment of any Award unless and until:

                  (i) The shares of Common Stock underlying the Award have been
registered under the Securities Act of 1933, as amended (the "Act"), or the
Company has determined that an exemption from the registration requirements
under the Act is available or the registration requirements of the Act do not
apply to such exercise or payment;

                  (ii) The Company has determined that all applicable listing
requirements of any stock exchange or quotation system on which the shares of
Common Stock are listed have been satisfied; and

                  (iii) The Company has determined that any other applicable
provision of state or Federal law, including without limitation applicable state
securities laws, has been satisfied.

      SECTION 13. RESTRICTIONS ON TRANSFER; REPRESENTATIONS OF PARTICIPANT;
LEGENDS.

      The Committee in its sole discretion may restrict the transferability of
shares until the Common Stock is listed on any United States securities exchange
or traded on NASDAQ or an over-the-counter quotation system in the United
States.

      Regardless of whether the offering and sale of shares of Common Stock has
been registered under the Securities Act or has been registered or qualified
under the securities laws of any state, the Company may impose restrictions upon
the sale, pledge, or other transfer of such shares, including the placement of
appropriate legends on stock certificates, if, in the judgment of the Company
and its counsel, such restrictions are necessary or desirable in order to
achieve compliance with the provisions of the Securities Act, the securities
laws of any state, or any other law. As a condition to the Participant's receipt
of shares, the Company may require the Participant to represent that such shares
are being acquired for investment, and not with a view to the sale or
distribution thereof, except in compliance with the Securities Act, and to make
other representations as are deemed necessary or appropriate by the Company and
its counsel. Stock

                                      -16-
<PAGE>

certificates evidencing shares acquired pursuant to an unregistered transaction
to which the Securities Act applies shall bear a restrictive legend
substantially in the following form and such other restrictive legends as are
required or deemed advisable under the Plan or the provisions of any applicable
law:

            "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
            UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
            QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. THESE SHARES HAVE
            BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO OR FOR SALE IN
            CONNECTION WITH ANY DISTRIBUTION THEREOF, AND MAY NOT BE SOLD,
            MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN
            EFFECTIVE REGISTRATION UNDER THE ACT AND QUALIFICATION UNDER ANY
            APPLICABLE STATE SECURITIES LAWS, OR WITHOUT AN OPINION OF COUNSEL
            ACCEPTABLE TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION OR
            QUALIFICATION IS NOT REQUIRED."

The Company shall also place legends on stock certificates representing its
right of repurchase under Section 14 hereof and the right of first refusal under
Section 15 hereof. Any determination by the Company and its counsel in
connection with any of the matters set forth in this Section 13 shall be
conclusive and binding on all persons.

      The Company may, but shall not be obligated to, register or qualify the
sale of shares under the Securities Act or any other applicable law.

      SECTION 14. RIGHT OF REPURCHASE.

      14.1 Repurchase Right. At the Committee's discretion, shares of Common
Stock issued to a Participant under this Plan may be subject to a right, but not
an obligation, of repurchase by the Company (the "Right of Repurchase"), at the
price specified in Section 14.2 below, if the Participant's Continuous Service
terminates for any reason ("Employment Termination"). Shares issued by the
Company shall be transferable only by the Participant subject to the Right of
Repurchase, and the Company shall legend the Right of Repurchase on the stock
certificates evidencing such shares and shall take such other steps as it deems
necessary to ensure compliance with this restriction. The Company's rights under
this Section 14.1 shall be freely assignable, in whole or in part.

      14.2 Repurchase Price. The price per share at which the Company may
exercise the Right of Repurchase under Section 14.1 (the "Repurchase Price")
shall be:

            (a) the lower of: (i) the exercise price of each share as paid by
the Participant (in the case of a Stock Option), or (ii) the Fair Market Value
of each share at the later of the date of the Participant's Employment
Termination or the date of issuance of such share to the Participant (provided,
the Company's ability to exercise the Right of Repurchase at the exercise

                                      -17-
<PAGE>
price of each share as paid by the Participant shall only apply to unvested
shares issued upon early exercise of the nonvested portion of the Participant's
Stock Option and shall lapse at a rate that will result in the same vesting as
if early exercise of the nonvested portion of the Participant's Stock Option had
not occurred); or

            (b) such other price as the Committee in its sole discretion shall
determine in accordance with applicable state Blue Sky or other laws.

      14.3 Repurchase Procedure. The Company may exercise its Right of
Repurchase by sending a written notice to the Participant or his or her
successor or legal representative and to the escrow agent, if any, of its taking
such action and specifying the number of shares being repurchased. The Company's
Right of Repurchase with respect to vested shares at their Fair Market Value as
provided in clause (a)(ii) of Section 14.2 above shall terminate if not
exercised by written notice from the Company to the Participant or his or her
successor or legal representative within thirty (30) days of the effective date
of the Employment Termination. If the Company exercises its Right of Repurchase,
within ninety (90) days of the effective date of the Participant's Employment
Termination (or, in the case of Common Stock issued upon exercise of the Stock
Option after the effective date of the Participant's Employment Termination,
within ninety (90) days after the date of exercise), the Participant, or his or
her successor or legal representative, or if applicable, the escrow agent, shall
deliver to the Company every stock certificate representing the shares being
repurchased, together with appropriate assignments separate from certificates,
and the Company shall then promptly pay the total Repurchase Price in cash to
the Participant, or if applicable, to the escrow agent, for delivery to the
Participant.

      14.4 Escrow. To facilitate the consummation of the Company's Right of
Repurchase under this Section 14, at the request of the Committee, the
Participant and the Company shall execute joint escrow instructions and the
Participant shall deliver and deposit with the escrow agent named in the joint
escrow instructions two "Assignments Separate from Certificate", together with
all certificates evidencing the shares of Common Stock issued to the Participant
pursuant to the Plan, duly endorsed in blank. The escrow agent shall hold such
documents and deliver the same to the Company pursuant to the joint escrow
instructions and in accordance with the terms of this Section 14, as applicable.

      14.5 Binding Effect. The Company's Right of Repurchase shall inure to the
benefit of its successors and assigns and shall be binding upon any
representative, executor, administrator, heir, or legatee of the Participant.

      14.6 Termination of Right of Repurchase. Notwithstanding any other
provision of this Section 14, in the event that the Common Stock is listed on
any United States securities exchange or traded on any formal over-the-counter
market in general use in the United States at the time the Participant would
otherwise be required to transfer his or her vested shares to the Company at not
less than the Fair Market Value thereof as provided in clause (a)(ii) of Section
14.2 above, the Company shall no longer have the Right of Repurchase with
respect to such vested shares, and the Participant shall have no obligations to
comply with this Section 14 with respect to such vested shares. The Company's
Right of Repurchase at the exercise price of each unvested share issued upon
early exercise of the nonvested portion of a Participant's Stock

                                      -18-
<PAGE>
Option as provided in clause (a)(i) of Section 14.2 above shall not expire but
shall continue in full force and effect on and after the date the Common Stock
becomes publicly traded.

      SECTION 15. RIGHT OF FIRST REFUSAL.

      15.1 Right of First Refusal. At the Committee's discretion, shares issued
to a Participant under this Plan may be subject to a requirement that if the
Participant proposes to sell, pledge, or otherwise transfer any such shares or
any interest in such shares, to any person or entity, the Company shall have a
right of first refusal (the "Right of First Refusal") with respect to such
shares. Any Participant desiring to transfer shares subject to the Right of
First Refusal shall give a written notice (the "Transfer Notice") to the Company
describing fully the proposed transfer, including the number of shares proposed
to be transferred, the proposed transfer price, and the name and address of the
proposed transferee. The Transfer Notice shall be signed both by the Participant
and by the proposed transferee and must constitute a binding commitment of both
parties to the transfer of the shares. The Company shall have the right to
purchase all (but not less than all) the shares subject to the Transfer Notice
on the terms of the proposal referred to in the Transfer Notice, subject to any
change in such terms permitted under Section 15.2 hereof, by delivery of a
notice of exercise of the Right of First Refusal within thirty (30) days after
the date the Transfer Notice is received by the Company. The Company's rights
under this Section 15.1 shall be freely assignable, in whole or in part.

      15.2 Transfer of Shares. If the Company fails to exercise the Right of
First Refusal within thirty (30) days after the date on which it receives the
Transfer Notice, the Participant may, not later than six (6) months following
receipt of the Transfer Notice by the Company, consummate a transfer of the
shares subject to the Transfer Notice on the terms and conditions described in
the Transfer Notice, subject to restrictions on the transfer of such shares
imposed pursuant to Section 13. Any proposed transfer on terms and conditions
different from those described in the Transfer Notice, as well as any subsequent
proposed transfer by the Participant, shall again be subject to the Right of
First Refusal and shall again require compliance with the procedure described in
Section 15.1. If the Company exercises its Right of First Refusal, the
Participant shall immediately endorse and deliver to the Company every stock
certificate representing the shares being purchased, and the Company shall then
promptly pay the purchase price in accordance with the terms set forth in the
Transfer Notice.

      15.3 Repurchase Payment. The amount payable to a Participant pursuant to
the Company's exercise of the Right of First Refusal shall be paid to the
Participant in accordance with the terms and conditions of the Transfer Notice
or may, at the election of the Company, be paid in full in cash.

      15.4 Binding Effect. The Company's Right of First Refusal shall inure to
the benefit of its successors and assigns and shall be binding upon any
transferee of the shares, other than a transferee acquiring shares in a
transaction with respect to which the Company failed to exercise its Right of
First Refusal (a "Free Transferee") or a transferee of a Free Transferee.

      15.5 Termination of Right of First Refusal. Notwithstanding any other
provision of this Section 15, if the Common Stock is listed on any United States
securities exchange or traded on any formal over-the-counter market in general
use in the United States at the time the

                                      -19-
<PAGE>
Participant desires to transfer his or her shares, the Company shall no longer
have the Right of First Refusal, and the Participant shall have no obligation to
comply with this Section 15.

      SECTION 16. SINGLE OR MULTIPLE AGREEMENTS. Multiple forms of awards or
combinations thereof may be evidenced by a single agreement or multiple
agreements, as determined by the Committee.

      SECTION 17. RIGHTS OF A STOCKHOLDER. The recipient of any award under the
Plan, unless otherwise provided by the Plan, shall have no rights as a
stockholder with respect thereto unless and until certificates for shares of
Common Stock are issued to him.

      SECTION 18. NO RIGHT TO CONTINUE EMPLOYMENT OR SERVICE. Nothing in the
Plan or any instrument executed or award granted pursuant thereto shall confer
upon any Participant any right to continue to serve the Company or any
Subsidiary in the capacity in effect at the time the award was granted or shall
affect the right of the Company or any Subsidiary to terminate (i) the
employment of an employee with or without notice and with or without cause, (ii)
the service of a consultant or adviser pursuant to the terms of such
consultant's or adviser's agreement with the Company or any Subsidiary or (iii)
the service of a director pursuant to the Bylaws of the Company or any
Subsidiary and any applicable provisions of the corporate law of the state in
which the Company or any Subsidiary is incorporated, as the case may be.

      SECTION 19. WITHHOLDING. The Company's obligation to (i) deliver shares of
Common Stock or pay cash upon the exercise of any Non-Qualified Stock Option or
any Stock Appreciation Right granted under the Plan, (ii) deliver shares of
Common Stock or pay cash in payment of any Performance Unit Award, (iii) deliver
stock certificates upon the vesting of any award of Restricted Stock Award, and
(iv) deliver shares of Common Stock upon the grant of any Stock Bonus Award
shall be subject to the minimum statutory withholding requirements under
applicable foreign, federal, state and local law. Foreign, federal, state and
local withholding tax due under the terms of the Plan may be paid in cash or
shares of Common Stock (either through the surrender of previously held shares
of Common Stock or the withholding of shares of Common Stock otherwise issuable
upon the exercise or payment of such award) having a Fair Market Value equal to
the required withholding and upon such other terms and conditions as the
Committee shall determine; provided, however, the Committee, in its sole
discretion, may require that such taxes be paid in cash; and provided, further,
any election by a Participant subject to Section 16(b) of the Exchange Act to
pay his withholding tax in shares of Common Stock shall be subject to and must
comply with Rule 16b-3(e) of the Exchange Act.

      SECTION 20. INDEMNIFICATION. No member of the Board or the Committee, nor
any officer or employee of the Company or a Subsidiary acting on behalf of the
Board or the Committee, shall be personally liable for any action, determination
or interpretation taken or made in good faith with respect to the Plan, and all
members of the Board or the Committee and each and any officer or employee of
the Company or any Subsidiary acting on their behalf shall, to the extent
permitted by law, be fully indemnified and protected by the Company in respect
of any such action, determination or interpretation.

      SECTION 21. NON-ASSIGNABILITY. No award under the Plan shall be assignable
or transferable by the recipient thereof except by will, by the laws of descent
and distribution and

                                      -20-
<PAGE>
by such other means as the Committee may approve from time to time. However, the
Participant, with the approval of the Committee, may transfer a Stock Option
(other than an Incentive Stock Option) for no consideration to or for the
benefit of the Participant's Immediate Family (including without limitation, to
a trust for the benefit of a Participant's Immediate Family or to a partnership
or limited liability company for one or more members of the Participant's
Immediate Family), subject to such limits as the Committee may establish, and
the transferee shall remain subject to all the terms and conditions applicable
to the Stock Option prior to such transfer. The foregoing right to transfer the
Stock Option shall apply to the right to consent to amendments to Plan and, in
the discretion of the Committee, shall also apply the right to transfer
ancillary rights associated with the Stock Option.

      SECTION 22. NONUNIFORM DETERMINATIONS. The Committee's determinations
under the Plan (including without limitation determinations of the persons to
receive awards, the form, amount and timing of such awards, the terms and
provisions of such awards and the agreements evidencing same, and the
establishment of values and performance targets) need not be uniform and may be
made by it selectively among persons who receive, or are eligible to receive,
awards under the Plan, whether or not such persons are similarly situated.

      SECTION 23. ADJUSTMENTS. In the event of any change in the outstanding
shares of Common Stock, without the receipt of consideration by the Company, by
reason of a stock dividend, stock split, reverse stock split or distribution,
recapitalization, merger, reorganization, reclassification, consolidation,
split-up, spin-off, combination of shares, exchange of shares or other change in
corporate structure affecting the Common Stock and not involving the receipt of
consideration by the Company, the Committee shall make appropriate adjustments
in (a) the aggregate number of shares of Common Stock (i) reserved for issuance
under the Plan, (ii) for which grants or awards may be made to any Participant
and (iii) covered by outstanding awards and grants denominated in shares or
units of Common Stock, (b) the exercise or other applicable price related to
outstanding awards or grants and (c) the appropriate Fair Market Value and other
price determinations relevant to outstanding awards or grants and shall make
such other adjustments as may be appropriate under the circumstances; provided,
that the number of shares subject to any award or grant always shall be a whole
number.

      SECTION 24. TERMINATION AND AMENDMENT. The Board may terminate or amend
the Plan or any portion thereof at any time, including but not limited to
amendments to the Plan necessary to comply with the requirements of Section
16(b) of the Exchange Act or to correct any defect or supply an omission or
reconcile any inconsistency in the Plan or any award granted hereunder, without
approval of the shareholders of the Company, unless shareholder approval is
required by Rule 16b-3 of the Exchange Act, applicable stock exchange or NASDAQ
or other quotation system rules, or applicable Code provisions. No amendment,
termination or modification of the Plan shall affect any award theretofore
granted in any material adverse way without the consent of the recipient.

      SECTION 25. SEVERABILITY. With respect to Participants subject to Section
16 of the Exchange Act, (i) the Plan is intended to comply with all applicable
conditions of Rule 16b-3 or its successors, (ii) all transactions involving
Participants who are subject to Section 16(b) of the Exchange Act are subject to
such conditions, regardless of whether the conditions are expressly set forth in
the Plan, and (iii) any provision of the Plan that is contrary to a condition of
Rule

                                      -21-
<PAGE>
16b-3 shall not apply to Participants who are subject to Section 16(b) of the
Exchange Act. If any of the terms or provisions of this Plan, or awards made
under this Plan, conflict with the requirements of Section 162(m) or Section 422
of the Code with respect to awards subject to or governed by Section 162(m) or
Section 422 of the Code, then such terms or provisions shall be deemed
inoperative to the extent they so conflict with the requirements of Section
162(m) or Section 422 of the Code. With respect to an Incentive Stock Option, if
this Plan does not contain any provision required to be included herein under
Section 422 of the Code (as the same shall be amended from time to time), such
provision shall be deemed to be incorporated herein with the same force and
effect as if such provision had been set out herein.

      SECTION 26. EFFECT ON OTHER PLANS. Participation in this Plan shall not
affect an employee's eligibility to participate in any other benefit or
incentive plan of the Company or any Subsidiary and any awards made pursuant to
this Plan shall not be used in determining the benefits provided under any other
plan of the Company or any Subsidiary unless specifically provided.

      SECTION 27. EFFECTIVE DATE OF THE PLAN. The Plan shall become effective as
determined by the Board, but no Stock Option shall be exercised and no other
awards shall be granted unless and until the Plan has been approved by the
shareholders of the Company, which approval shall be within twelve (12) months
before or after the date the Plan is adopted by the Board.

      SECTION 28. GOVERNING LAW. This Plan and all agreements executed in
connection with the Plan shall be governed by, and construed in accordance with,
the laws of the State of Delaware, without regard to its conflicts of law
doctrine.

      SECTION 29. GENDER AND NUMBER. Words denoting the masculine gender shall
include the feminine gender, and words denoting the feminine gender shall
include the masculine gender. Words in the plural shall include the singular,
and the singular shall include the plural.

      SECTION 30. ACCELERATION OF EXERCISABILITY AND VESTING. The Committee
shall have the power to accelerate the time at which an award may first be
exercised or the time during which an award or any part thereof will vest in
accordance with the Plan, notwithstanding the provisions in the award stating
the time at which it may first be exercised or the time during which it will
vest.

      SECTION 31. MODIFICATION OF AWARDS. Within the limitations of the Plan and
subject to Section 23, the Committee may modify outstanding awards or accept the
cancellation of outstanding awards for the granting of new awards in
substitution therefor. Notwithstanding the preceding sentence, except for any
adjustment described in Section 23, no modification of an award shall, without
the consent of the Participant, alter or impair any rights or obligations under
any award previously granted under the Plan in any material adverse way without
the affected Participant's consent.

      SECTION 32. NO STRICT CONSTRUCTION. No rule of strict construction shall
be applied against the Company, the Committee, or any other person in the
interpretation of any of the

                                      -22-
<PAGE>
terms of the Plan, any agreement executed in connection with the Plan, any award
granted under the Plan, or any rule, regulation or procedure established by the
Committee.

      SECTION 33. SUCCESSORS. This Plan is binding on and will inure to the
benefit of any successor to the Company, whether by way of merger,
consolidation, purchase, or otherwise.

      SECTION 34. PLAN PROVISIONS CONTROL. The terms of the Plan govern all
awards granted under the Plan, and in no event will the Committee have the power
to grant any award under the Plan which is contrary to any of the provisions of
the Plan. In the event any provision of any award granted under the Plan shall
conflict with any term in the Plan as constituted on the grant date of such
award, the term in the Plan as constituted on the grant date of such award shall
control.

      SECTION 35. HEADINGS. The headings used in the Plan are for convenience
only, do not constitute a part of the Plan, and shall not be deemed to limit,
characterize, or affect in any way any provisions of the Plan, and all
provisions of the Plan shall be construed as if no captions had been used in the
Plan.

                                      -23-<PAGE>

                                                                   EXHIBIT 10.11

                    SEPARATION AGREEMENT AND RELEASE IN FULL

      THIS SEPARATION AGREEMENT AND RELEASE IN FULL ("Agreement") is made,
entered into and effective as of the "Effective Date" as that term is defined in
paragraph 23 hereinbelow, between Millennium Cell Inc., a Delaware corporation
with its principal place of business located at 1 Industrial Way West,
Eatontown, New Jersey 07724 ("the Company"), and Steven C. Amendola, a resident
of the State of New Jersey, residing at 22 Lambert Johnson Drive, Ocean, New
Jersey 07712 ("Amendola").

      WHEREAS, the Company and Amendola are parties to an agreement entitled,
"Amended and Restated Employment Agreement", dated as of August 2, 2000 (the
"Employment Contract"), pursuant to which Amendola is employed by the Company as
an at-will employee; and

      WHEREAS, the Company and Amendola have determined that it would be
mutually beneficial to terminate the Employment Contract and Amendola's
employment relationship with the Company as of October 1, 2001; and

      WHEREAS, Amendola has requested that the Company enter into an Independent
Consulting Agreement with Reaction Sciences, Inc. (the "Independent
Consultant"), a corporation incorporated in the State of New Jersey and
wholly-owned by Amendola, pursuant to which the Independent Consultant will
provide consulting services to the Company as an independent contractor in
exchange for consulting fees and other consideration (the
<PAGE>
"Independent Consulting Agreement"), and pursuant to which Amendola, as sole
shareholder of the Independent Consultant, will receive benefits of substantial
value; and

      WHEREAS, Amendola agrees and acknowledges that the Company is not
obligated to enter into the Independent Consulting Agreement; and

      WHEREAS, under the Employment Contract, Amendola would not be entitled to
receive a "Bonus", as that term is defined in Section 2(b) of the Employment
Contract, for the year 2001 in the amount of $115,000.00, until 2002; and

      WHEREAS, Amendola has requested that the Company pay to him a Bonus, as
that term is defined in Section 2(b) of the Employment Contract, for the year
2001, in the amount of $115,000.00, on or before December 12, 2001; and

      WHEREAS, Amendola has requested the Company to grant additional stock
options in such amounts and on such terms as set forth in this Agreement
pursuant to the Millennium Cell Inc. Amended and Restated 2000 Stock Option Plan
("the Plan"); and

      WHEREAS, Amendola agrees and acknowledges that the Company has no
obligation to grant additional stock options to him pursuant to the Plan or
pursuant to any other express or implied agreement or the law;

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, and for other and additional consideration, the receipt and
legal sufficiency of which are hereby acknowledged by the parties hereto;

      1. The Employment Contract, and any other purported employment agreements
between the Company and Amendola, are hereby terminated as of October 1, 2001.
Other than as set forth herein, as of October 1, 2001, the Company owes no past,
present or future

                                       2
<PAGE>
obligations and/or duties to Amendola pursuant to, as a result of, arising from
or in any manner related to Amendola's employment relationship with the Company,
the Employment Contract or any other purported employment agreements between the
Company and Amendola. Amendola further acknowledges that the Company has paid
Amendola all compensation and other benefits and any and all other and further
amounts otherwise due to Amendola under the Employment Contract or any other
purported employment agreements as of and through October 1, 2001. Nothing set
forth herein shall have any effect on Amendola's status or compensation as a
member of the Company's Board of Directors, as determined, from time to time, by
the Company's shareholders, nor shall anything contained herein give any rights
to Amendola to be a nominee for director at any election of directors to be held
after the Effective Date of this Agreement, as that term is defined in paragraph
23 hereinbelow.

      2. On or before October 1, 2001, Amendola shall have delivered to the
Company all property belonging to the Company in his or his agents' possession,
custody or control, including, without limitation, (a) all Company credit cards,
(b) all computers, laptops, cellular or portable phones, (c) electronic
organizers, (d) any and all originals and copies of Confidential Information, as
that term is defined in paragraph 11 hereinbelow, and (e) building keys and
Company identification cards and other documents. After October 1, 2001, other
than as authorized in writing by the Company, Amendola shall not have access to
or use of the Company's e-mail, voice-mail, Internet, intranet or extranets.

      3. The Company and the Independent Consultant shall enter into the
Independent Consulting Agreement, in the form annexed hereto as Exhibit A, which
Independent Consulting Agreement shall be executed simultaneously with the
execution of this Agreement.

                                       3
<PAGE>
      4. Subject to paragraph 23 hereinbelow: (a) the Company shall pay to
Amendola, by check, the Bonus, as that term is defined in Section 2(b) of the
Employment Contract, for the year 2001, in the amount of $115,000.00, and
severance, in the amount of $230,000.00, less all applicable taxes and
withholdings, including, without limitation, income tax and FICA, on the eighth
day after the Effective Date of this Agreement, as that term is defined in
paragraph 23 hereinbelow, and (b) an additional 16-2/3 percent of the 1,006,643
stock options granted to Amendola pursuant to that certain Stock Option Grant
Notice dated July 13, 2000 (the "Stock Option Grant Notice") that have not
vested as of October 1, 2001, shall vest as of October 1, 2001, so that a total
of 50 percent of such options shall have vested as of October 1, 2001, which
shall be exercisable at a strike price of $2.90 per share (the "Accelerated
Stock Options'"). Amendola's rights with respect to exercising the Accelerated
Stock Options and/or selling common stock of the Company that he acquires
pursuant to his exercise of the Accelerated Stock Options shall be governed by
and subject to the provisions of the Plan, the Stock Option Grant Notice (as
amended by this Agreement) and paragraphs 7 and 9 hereinbelow. Amendola's rights
with respect to exercising the remainder of the unvested stock options covered
by the Stock Option Grant Notice shall continue to be governed by and subject to
the provisions of the Plan and the Stock Option Grant Notice (as amended by this
Agreement).

      5. Amendola agrees that he is not entitled to, and hereby irrevocably
waives and relinquishes, any and all of his rights to, and releases the Company
from any and all obligations for, (a) any severance payments or rights arising
from or related to the termination of Amendola's employment with the Company or
of the Employment Contract or any other purported employment agreements,
including, without limitation, severance payments or rights

                                       4
<PAGE>
set forth in Section 2(e)(A)(i) and Section 2(e)(A)(ii) of the Employment
Contract, other than for any such payments or rights as set forth in this
Agreement, and (b) any rights concerning exercise or vesting of stock options
arising from or relating to the termination of Amendola's employment with the
Company or of the Employment Contract or any other purported employment
agreements, including, without limitation, those rights concerning exercise or
vesting of stock options set forth in Section 2(e)(A)(ii) of the Employment
Contract, other than for any such acceleration of vesting of stock options as
set forth in this Agreement.

      6. Subject to paragraphs 15, 16, 17, 18 and 23 hereinbelow, and in
accordance with the terms of the Plan as amended:

      (a) On or before February 28, 2003, the Company shall grant to Amendola an
option(s) to purchase additional shares of the Company's common stock at a
strike price of $2.90 per share based on the following formula: for each hour
that the Independent Consultant provides approved "Services" to the Company in
accordance with the terms and conditions of the Independent Consulting
Agreement, Amendola shall be entitled to an option(s) to purchase eight-nine
(89) shares of common stock of the Company, up to a maximum quantity of 166,667
shares (the "Additional Stock Options"). Except as set forth in, and subject to,
paragraph 7, the Additional Stock Options shall vest and be exercisable on the
date that the Additional Stock Options are granted to Amendola. Except as set
forth in, and subject to, paragraphs 7, 8 and 9 hereinbelow, the term of the
Additional Stock Options shall not exceed the earlier to occur of: (i) the last
day of the ten-year period commencing on the date that the Additional Stock
Options are granted to Amendola, and (ii) the last day of the one-year period
following the termination of Amendola's Continuous Service, as that term is
defined in paragraph 2.8 of the Plan.

                                       5
<PAGE>
      (b) Amendola shall be eligible for an additional grant of an option(s) to
purchase up to a maximum of forty thousand (40,000) shares of the Company's
common stock at a strike price of $2.90 per share (the "Supplemental Stock
Options"). The decision to grant Supplemental Stock Options to Amendola, and the
quantity of such Supplemental Stock Options, shall be within the sole discretion
of the Company's Vice President - Product Development, based upon his assessment
of the value contributed to the Company by the Independent Consultant as a
result of the Independent Consultant's performance of the "Services", as that
term is defined in the Independent Consulting Agreement. In the event that the
Company grants Supplemental Stock Options to Amendola, the Supplemental Stock
Options shall be granted on or before February 28, 2003. Except as set forth in,
and subject to paragraph 7, the Supplemental Stock Options shall vest and be
exercisable on the date that the Supplemental Stock Options are granted to
Amendola. Except as set forth in, and subject to, paragraphs 7, 8 and 9
hereinbelow, the term of the Supplemental Stock Options shall not exceed the
earlier to occur of: (i) the last day of the ten-year period commencing on the
date that the Supplemental Stock Options are granted to Amendola, and (ii) the
last day of the one-year period following the termination of Amendola's
"Continuous Service", as that term is defined in paragraph 2.8 of the Plan.

      7. (a) Amendola shall not exercise any stock options granted to him,
including, without limitation, stock options granted to him pursuant to the
Plan, the Stock Option Agreement, the Stock Option Grant Notice, this Agreement
and/or any other stock option grant notice, unless and until he has sold to an
unaffiliated third party all of the common stock of the Company beneficially
owned by him as of the Effective Date, as that term is defined in paragraph 23
hereinbelow (the "Currently-Owned Shares") (the parties hereto acknowledge that

                                       6
<PAGE>
Amendola beneficially owns fifty-four thousand, six hundred and ninety (54,690)
Currently-Owned Shares as of the Effective Date).

      (b) During the period from the Effective Date, as that term is defined in
paragraph 23 hereinbelow, through October 1, 2002, Amendola shall dispose of no
Currently-Owned Shares for less than the greater of (x) ten dollars and no cents
($10.00) per share exclusive of commissions, such price to be adjusted to
reflect any share reclassifications, stock splits, reverse stock splits or
similar adjustments in the number of shares outstanding, or (y) the price of the
Company's common stock offered for sale in a secondary offering of common stock
by shareholders of the Company pursuant to a registration statement for an
underwritten resale by such shareholders (an "Underwritten Resale Registration
Statement").

      (c) Except to the extent that Amendola's Currently-Owned Shares are
included in the Underwritten Resale Registration Statement (the inclusion of
which shall be in the sole discretion of the Company), Amendola shall not sell
any Currently-Owned Shares other than pursuant to a written plan as contemplated
by Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, which
written plan provides for minimum pricing as set forth in paragraph 7(b)
hereunder and which has been approved by the Board of Directors of the Company
(an "Approved Rule 10b5-1 Plan"), provided however, that this paragraph 7(c)
shall no longer apply following the expiration of the ninety-day period after
the occurrence of all of the following events: (i) Amendola ceases to be a
member of the Company's Board of Directors, (ii) the Independent Consulting
Agreement terminates in accordance with its terms, and (iii) Amendola is not
providing services to the Company as an employee or as a consultant.

                                       7
<PAGE>
      8. In the event that Amendola's "Continuous Service", as that term is
defined in paragraph 2.8 of the Plan, terminates for any reason other than the
following: (a) Amendola's voluntary resignation from the Company's Board of
Directors, (b) the removal of Amendola from the Company's Board of Directors for
cause, or (c) Amendola chooses or requests not to stand for election or
reelection to the Company's Board of Directors, then the provisions of paragraph
7(a) shall not apply and notwithstanding anything in this Agreement to the
contrary, Amendola shall have a period of up to one year following his
termination of "Continuous Service" to exercise his Additional Stock Options and
his Supplemental Stock Options. Notwithstanding the foregoing, this paragraph 8
shall not apply in the event that: (w) the Independent Consultant terminates the
Independent Consulting Agreement without Cause pursuant to paragraph 12(b) of
the Independent Consulting Agreement, (x) the Company terminates the Independent
Consulting Agreement for Cause pursuant to paragraph 12(b) of the Independent
Consulting Agreement, (y) Amendola ceases to own at least seventy-five percent
of the outstanding capital of Independent Consultant, or (z) Amendola ceases to
be an employee of Independent Consultant.

      9. In the event that Amendola exercises stock options granted to him
pursuant to the Plan, the Stock Option Agreement, the Stock Option Grant Notice,
this Agreement and/or any other stock option grant notice, and disposes of any
common stock of the Company acquired pursuant to his exercise of stock options
during the period from the Effective Date of this Agreement, as that term is
defined in paragraph 23 hereinbelow, through October 1, 2002, (a) Amendola shall
not dispose of any such shares of common stock for less than the greater of (i)
twelve dollars and no cents ($12.00) per share exclusive of commissions, such
price to be

                                       8
<PAGE>
adjusted to reflect any share reclassifications, stock splits,
reverse stock splits or similar adjustments in the number of shares outstanding,
or (ii) the price of the Company's common stock offered for sale pursuant to an
Underwritten Resale Registration Statement, and (b) Amendola shall not sell any
such shares of common stock other than pursuant to an Approved Rule 10b5-1 Plan.

      10. Amendola agrees to execute any and all documents and instruments, and
to perform any acts, required in connection with, or that may be necessary for
the Company to perform, the obligations set forth in paragraphs 4 through 9
hereinabove, including, without limitation, an Approved Rule 10b5-1 Plan.

      11. Amendola expressly acknowledges that, in the performance of his duties
during his employment with the Company and its predecessors, Amendola was
exposed to the trade secrets, business and/or financial secrets and confidential
and proprietary information of the Company, its predecessors, its affiliates,
its joint venturers and/or its clients or customers ("Confidential
Information"). The term "Confidential Information" means, without limitation,
information or material that has actual or potential commercial value to the
Company, its affiliates, its joint venturers and/or its clients or customers and
is not generally known to and is not readily ascertainable by proper means to
persons outside the Company, its affiliates, its joint venturers and/or its
clients or customers. Except as authorized in writing by the Company's
President, until such time as any such Confidential Information becomes
generally known to and readily ascertainable by proper means to persons outside
the Company, its affiliates, its joint venturers and/or its clients or
customers, Amendola agrees to keep strictly confidential and not use for
personal benefit or the benefit to any other person or entity (other than the
Company) the

                                       9
<PAGE>
Confidential Information of the Company, its predecessors, its affiliates, its
joint venturers and/or its clients or customers, whether or not prepared or
developed by Amendola. Confidential Information includes, without limitation,
the following, whether or not expressed in a document or medium, regardless of
the form in which it is communicated, and whether or not marked "trade secret"
or "confidential" or any similar legend: (a) lists of and/or information
concerning customers, clients, suppliers, employees, consultants, and/or
co-venturers of the Company, its predecessors, its affiliates, its joint
venturers and/or its clients or customers, or any such prospective customers,
clients, suppliers, employees, consultants and co-venturers, (b) information
submitted by customers, clients, suppliers, employees, consultants and/ or
co-venturers of the Company, its predecessors, its affiliates, its joint
venturers and/or its clients or customers, (c) information concerning the
business or prospective business of the Company, its predecessors, its
affiliates, its joint venturers and/or its clients or customers, including,
without limitation, cost information, technical information, profits, sales
information, prices, accounting, unpublished financial information, business
plans or proposals, markets and marketing methods, advertising and marketing
strategies, administrative procedures and manuals, the terms and conditions of
the Company's contracts and trademarks and patents under consideration,
distribution channels, franchises, investors, sponsors and advertisers, (d)
information concerning products and services of the Company, its predecessors,
its affiliates, its joint venturers and/or its customers or clients, including,
without limitation, product data and specifications, diagrams, flow charts, know
how, processes, designs, formulae, inventions, manufacture, actual or proposed
applications, and product development, (e) lists of and/or information
concerning applicants, candidates or other prospects for employment, independent
contractor or consultant

                                       10
<PAGE>
positions at or with the Company, its predecessors, its affiliates, its joint
venturers and/or its clients or customers, or any actual or prospective customer
of the Company, its predecessors, its affiliates and/or its joint venturers, (f)
any and all confidential processes, inventions or methods of conducting business
of the Company, its predecessors, its affiliates, its joint venturers and/or its
clients or customers, (g) any and all versions of proprietary computer software
(including source and object code), hardware, firmware, code, discs, tapes, data
listings and documentation of the Company, its predecessors, its affiliates, its
joint venturers and/or its clients or customers, (h) any other information
disclosed to Amendola by, or which Amendola obtained under a duty of confidence
from, the Company, its predecessors, its affiliates, its joint venturers and/or
its clients or customers, and (i) all other information not generally known to
the public which, if misused or disclosed, could reasonably be expected to
adversely affect the business or prospects of the Company, its predecessors, its
affiliates, its joint venturers and/or its clients or customers. The
determination of what constitutes Confidential Information is within the sole
discretion of the Company. Amendola agrees that any breach by him or any person
or entity on his behalf of this paragraph 11 shall be a material breach of this
Agreement, as a result of which, and in addition to any other legal remedies
available to the Company, Amendola shall waive and forfeit, and hereby waives
and forfeits, his right to any Additional Stock Options and any Supplemental
Stock Options, which right shall be irrevocably waived and forfeited, and shall
be obligated to pay the attorneys' fees and costs incurred by the Company in
connection with any lawsuit or other proceeding related to enforcement or
litigation of this paragraph 11. For purposes of this paragraph 11, the
determination of whether Amendola has breached this paragraph 11 shall be within
the sole discretion of the Company.

                                       11
<PAGE>
      12. (a) Amendola acknowledges that, in connection with his employment with
the Company and/or its predecessors which commenced on August 1, 1997 and
terminated on October 1, 2001 ("the Inventions Employment Period"), Amendola may
have created, conceived of, made, prepared, worked on or contributed to the
creation of, or may have been asked by the Company, its predecessors, its
affiliates, its joint venturers, or actual or potential customers or clients of
the Company, its predecessors, its affiliates or its joint venturers, to create,
conceive of, make, prepare, work on or contribute to the creation of, without
limitation, lists, business diaries, business address books, documentation,
ideas, concepts, inventions, designs, works of authorship, computer programs,
audio/visual works, developments, proposals, works for hire or other materials
("Inventions"). To the extent that any such Inventions that Amendola, during the
Inventions Employment Period, created, conceived of, made, prepared, worked on
or contributed to the creation of, or may have been asked by the Company, its
predecessors, its affiliates, its joint venturers, or actual or potential
customers or clients of the Company, its predecessors, its affiliates or its
joint venturers, to create, conceive of, make, prepare, work on or contribute to
the creation of, relate or were related to the actual or reasonably anticipated
business of the Company, its affiliates, its predecessors, its joint venturers
and/or its clients or customers, or fall within, are or were suggested by or
result or resulted from any tasks to be performed by Amendola during the
Inventions Employment Period for or on behalf of the Company, its predecessors,
its affiliates, its joint venturers and/or its clients or customers, in
accordance with the terms hereof, Amendola expressly acknowledges that all of
his activities and efforts relating to any such Inventions, whether or not
performed during the regular business hours of either the Company or Amendola,
are or were within the scope of Amendola's scope of employment with

                                       12
<PAGE>
the Company or its predecessors, and that the Company owns all right, title and
interest in and to all Inventions, including, to the extent that they exist, all
intellectual property rights thereto, including, without limitation, copyrights,
patents and trademarks in and to all Inventions. Amendola also acknowledges and
agrees that the Company owns and is entitled to sole ownership of all rights and
proceeds to all such Inventions. For purposes of this paragraph 12(a), the term
"actual or reasonably anticipated business of the company, its predecessors, its
affiliates, its joint venturers and/or its clients or customers" shall mean the
development, licensing, sale or distribution of technology, devices or systems
related to alternative energy chemistry.

      (b) To the extent that any such Inventions have not already been assigned
by Amendola to the Company, Amendola expressly agrees to assign to the Company,
and hereby assigns to the Company, all right, title and interest in and to all
such Inventions, including, to the extent they exist, all intellectual property
rights thereto, including, without limitation, copyrights, patents and
trademarks in and to all such Inventions.

      (c) Amendola represents and warrants that he has disclosed to the Company
any and all such Inventions to the Company. Amendola further agrees to execute
promptly, at the Company's request, specific written assignments of any right,
title and interest in any such Inventions and do anything else reasonably
necessary to enable the Company to secure or obtain a copyright, patent,
trademark or other form of protection in or for any such Invention in the United
States or other countries. Amendola further agrees that the Company is not
required to secure Amendola's permission to change or otherwise alter any such
Invention.

                                       13
<PAGE>
      (d) Amendola agrees to waive, and hereby does waive, for the benefit of
all persons, any and all right, title and interest in the nature of "moral
rights" or "droit moral" granted to or claimed by Amendola in any country in the
world.

      (e) Amendola acknowledges that all rights, waivers, releases and/or
assignments granted herein and made by Amendola are freely assignable by the
Company and are made for the benefit of the Company and its affiliates,
subsidiaries, licensees, successors, joint-venturers and assigns.

      13. As consideration for the benefits and other consideration provided by
the Company to Amendola in this Agreement, and as a material inducement to the
Company to grant such benefits and other consideration to Amendola as provided
in this Agreement, Amendola, for himself and his heirs, administrators,
executives and permitted assigns or for any other individual or entity who may
claim by or through him, hereby irrevocably and unconditionally releases,
remises and forever discharges, the Company, and all of each of its present and
former divisions, subsidiaries, affiliates, affiliated organizations, parents,
predecessors, successors, assigns, joint venture partners, assignees, grantees,
fiduciaries, officers, directors, shareholders, employees, agents, directors,
representatives and attorneys, and the heirs, executors and administrators of
such of the foregoing as are natural persons, and all persons acting by,
through, under or in concert with any of the foregoing (hereinafter, "Released
Parties"), from any and all claims, charges, complaints, liabilities,
obligations, promises, agreements, contracts, doings, omissions, controversies,
actions, rights, costs, debts, sums of money, reckonings, covenants, demands,
causes of action, suits at law or equity, damages, punitive damages, verdicts,
losses, executions, expenses, attorneys' fees, costs and judgments of every kind
and nature whatsoever against any

                                       14
<PAGE>
of the Released Parties, which Amendola now has, may have or claim to have, or
which Amendola any time heretofore had, may have had or claimed to have had,
from the beginning of the world through the Effective date of this Agreement, as
that term is defined in paragraph 23 hereinbelow, whether known or unknown,
anticipated or unanticipated, asserted or unasserted, accrued or unaccrued,
foreseeable or unforeseeable (hereinafter, collectively, "claims"), for, upon,
by reason of, resulting from, arising from, concerning, relating to or in any
manner connected with, any matter, thing, event, act, omission or situation,
including, without limitation, claims for, upon, by reason of, resulting from,
arising from, concerning, relating to or in any manner connected with,
Amendola's employment relationship with the Company, the cessation of Amendola's
employment relationship with the Company, the Employment Contract and/or any
other purported employment agreements between Amendola and the Company, and/or
the termination of the Employment Contract or any other purported employment
agreements between Amendola and the Company, including, without limitation,
claims for, upon, by reason of, resulting from, arising from, concerning,
relating to or in any manner connected with, breach of contract, breach of
agreement, breach of the duty of good faith and fair dealing, breach of public
policy, constructive discharge, promissory estoppel, indemnity, contribution,
fraud, negligence, wrongful or bad faith termination or discharge, retaliation,
intentional or negligent infliction of emotional distress, invasion of privacy,
defamation, slander or libel and/or other business or personal injury, rights to
wages, salary, bonuses, severance, accrued vacation, stock options or other
compensation or benefits, discrimination based on sex, race, color, religion,
religious creed, age, national origin, citizenship, ancestry, handicap, physical
or mental disability or disorder, mental retardation, learning disability,
medical condition, marital status, veteran's

                                       15
<PAGE>
status, carrier status, sexual orientation or retaliation, arising under any
federal, state or local statutes, regulations, ordinances or laws, including,
without limitation, common law, Title VII of the Civil Rights Act of 1964, as
amended, the Americans With Disabilities Act, the Civil Rights Act of 1991, the
Civil Rights Act of 1866, as amended, the Family and Medical Leave Act, the
Equal Pay Act, the Fair Labor Standards Act, the Employee Retirement Income
Security Act, as amended, the Age Discrimination in Employment Act ("ADEA"), as
amended, the Older Workers Benefit Protection Act of 1990 (hereinafter,
"OWBPA"), the Rehabilitation Act of 1973, the Immigration Reform and Control Act
of 1986, the Worker Adjustment and Retraining Notification Act, the Veteran's
Reemployment Rights Act, the Uniformed Services Employment and Reemployment
Rights Act of 1994, the Vietnam-Era Veterans' Readjustment Assistance Act, the
Consolidated Omnibus Budget Reconciliation Act, the New York State Labor Law,
the New York State Equal Pay Law, the New York State Human Rights Law, the New
York State Executive Law, the Administrative Code of the City of New York, the
New York City Human Rights Law, the New Jersey Law Against Discrimination, the
New Jersey Equal Pay Act and/or the New Jersey Family Medical Leave Act.
Amendola represents and warrants to the Company that he understands and agrees
that this Agreement shall act as a full and final release of all claims of every
nature and kind whatsoever that have arisen or that could have arisen between
Amendola on the one hand, and the Company or the other Released Parties on the
other hand, prior to the date of execution of this Agreement, whether such
claims are currently known or unknown, and whether they were whether known or
unknown, anticipated or unanticipated, asserted or unasserted, accrued or
unaccrued, or foreseeable or unforeseeable.

                                       16
<PAGE>
      14. To comply with the OWBPA, and for all other purposes, the Company, in
this Agreement, has advised, and hereby advises, Amendola of the legal
requirements of the OWBPA and fully incorporates the legal requirements of the
OWBPA into this Agreement, as follows:

      (a) Amendola expressly acknowledges and agrees that this Agreement is
written in layman's terms and Amendola understands and comprehends its terms.

      (b) The Company hereby advises Amendola, and Amendola hereby expressly
acknowledges and agrees that the Company has advised him, to consult with an
attorney to review this Agreement prior to entering into and executing this
Agreement.

      (c) The Company expressly acknowledges and agrees that, by entering into
and executing this Agreement, Amendola is not waiving any claims that may arise
after the date that he enters into and executes this Agreement, nor is Amendola
waiving any claims that his waiver of claims for age discrimination under the
ADEA set forth in this Agreement is invalid.

      (d) Amendola expressly acknowledges and agrees that he has been given a
reasonable opportunity to consider this Agreement by having up to twenty-one
(21) days to enter into and execute it and to consult with an attorney before
entering into and executing it.

      (e) Amendola expressly agrees and acknowledges that, pursuant to this
Agreement, he is receiving consideration beyond anything of value to which he is
already entitled under the Employment Contract, any other express or implied
agreements and/or applicable law.

      (f) The Company hereby advises Amendola, and Amendola hereby expressly
agrees and acknowledges, that the Company has advised him he may revoke this
Agreement, in writing, delivered to Norman R. Harpster, Jr., Vice President -
Finance & Administration, Millennium Cell Inc., 1 Industrial Way West,
Eatontown, New Jersey 07724, within seven (7) days after

                                       17
<PAGE>
executing this Agreement, and that this Agreement shall not become effective
until the expiration of said seven (7) day period after Amendola executes this
Agreement.

      15. This Agreement shall not in any way be construed as an admission by
any of the Released Parties of any acts, conduct or omission constituting
wrongdoing against Amendola or any other person, or of fault or liability of any
of the Released Parties arising from or in any manner connected with, Amendola's
employment relationship with the Company, the cessation of Amendola's employment
relationship with the Company, the Employment Contract and/or any other
purported employment agreements between Amendola and the Company, and/or the
termination of the Employment Contract or any other purported employment
agreements between Amendola and the Company, and the Company specifically
disclaims and denies any liability to or wrongdoing against Amendola or any
other person, on the part of all Released Parties.

      16. Amendola, for, together with and on behalf of himself and his heirs,
beneficiaries, executors, administrators, agents, representatives, attorneys,
successors and assigns, also agrees and covenants not to file a lawsuit or
administrative complaint against the Company or any of the Released Parties, or
to assert any claim with respect to Amendola's employment relationship with the
Company, the cessation of Amendola's employment relationship with the Company,
the Employment Contract or any other purported employment agreements between
Amendola and the Company, and/or the termination of the Employment Contract or
any other purported agreements between Amendola and the Company, which occurred
prior to the Effective Date of this Agreement as that is defined in paragraph 23
hereinbelow. Amendola, for, together with and on behalf of himself and his
heirs, beneficiaries, executors, administrators, agents,

                                       18
<PAGE>
representatives, attorneys, successors and assigns, further agrees not to file
or permit to be filed any lawsuit or other legal claim on his behalf against the
Company or any of the Released Parties. Any lawsuit, administrative claim or
other legal claim filed in violation of this Agreement by Amendola, for,
together with and on behalf of himself or his heirs, beneficiaries, executors,
administrators, agents, representatives, attorneys, successors or assigns, shall
automatically constitute a material breach of this Agreement, and in addition to
any other legal or equitable remedies available to the Company or any of the
other Released Parties, Amendola shall waive and forfeit, and hereby waives and
forfeits, his right to any Additional Stock Options and any Supplemental Stock
Options as set forth in paragraph 6 hereinabove, which right shall be
irrevocably waived and forfeited, and shall be obligated to pay the attorneys'
fees and costs incurred by the Company and any other Released Parties in
connection with any such lawsuit, administrative claim or other legal claim
(with the sole exception of lawsuits, administrative claims or other legal
claims challenging the validity of this release of claims for age discrimination
in violation of the ADEA, the filing or challenging of which shall not require
Amendola to return to the Company the consideration provided to him by the
Company pursuant to this Agreement, or to waive and forfeit his right to
Additional Stock Options and to Supplemental Stock Options or to reimburse the
Company and the Released Parties for their attorneys' fees and costs incurred in
connection with any such lawsuit or other legal claim or challenge). For
purposes of this paragraph 16, the determination of whether Amendola has
breached this paragraph 16 shall be within the sole discretion of the Company.

      17. Amendola, for, together with and on behalf of himself and his heirs,
beneficiaries, executors, administrators, agents, representatives, attorneys,
successors and assigns, expressly

                                       19
<PAGE>
represents and warrants to the Company that it is understood and agreed that, as
a material condition of this Agreement and exchange of consideration hereunder,
the terms and conditions of this Agreement and of Amendola's separation from the
Company are to remain strictly confidential. Amendola, for, together with and on
behalf of himself and his heirs, beneficiaries, executors, administrators,
agents, representatives, attorneys and successors, and his counsel, agrees and
promises to keep the terms and conditions of this Agreement and of Amendola's
separation from the Company, and the exchange of consideration hereunder,
strictly confidential to the extent permitted by law, and that he will not
disclose or consent to disclosure by others, discuss, or otherwise disseminate
that information to anyone in any way, unless specifically required by law to do
so. Amendola, for, together with and on behalf of himself and his heirs,
beneficiaries, executors, administrators, agents, representatives, attorneys,
successors and assigns, also represents and warrants to the Company that it is
understood and agreed that if either Amendola receives any third party inquiries
about the terms and conditions of this Agreement or of Amendola's separation
from the Company, Amendola is prohibited from responding orally, and is
permitted to respond in writing only in the form annexed hereto as Exhibit B,
and shall not reveal the terms or substance of any part of this Agreement or of
his separation from the Company. Amendola agrees that any breach by him or any
person or entity on his behalf of this paragraph 17 shall constitute a material
breach of this Agreement, as a result of which, and in addition to any other
legal and equitable remedies available to the Company, Amendola shall waive and
forfeit, and hereby waives and forfeits, his right to any Additional Stock
Options and any Supplemental Stock Options as set forth in paragraph 6
hereinabove, which right shall be irrevocably forfeited, and shall be obligated
to pay the attorneys' fees and

                                       20
<PAGE>
costs incurred by the Company in connection with any lawsuit or other proceeding
related to enforcement or litigation of this paragraph 17. For purposes of this
paragraph 17, the determination of whether Amendola has breached thus paragraph
17 shall be within the sole discretion of the Company.

      18. (a) Amendola, to the best of his knowledge and belief, for, together
with and on behalf of himself and his heirs, beneficiaries, executors,
administrators, agents, representatives, attorneys, successors and assigns,
expressly represents and warrants to the Company that, during the Inventions
Employment Period, Amendola did not commit any act(s) or omission(s), or make
any oral or written statement(s), representation(s) or disclosure(s), accurate
or inaccurate, that, directly or indirectly, during the Employment Inventions
Period, may have resulted in, caused or otherwise contributed to, or, following
the termination of the Inventions Employment Period, may result in, cause or
otherwise contribute to, any reduction, impingement or other compromise of the
Company's interest(s) in any of its intellectual property, including, without
limitation, patentable inventions, the patents and other intellectual property
that the Company acquired from Amendola and GP Strategies Corporation pursuant
to that certain Amended and Restated Agreement dated August 1, 2000 by and among
Amendola, GP Strategies Corporation and the Company and Appendix A thereto
(consisting of an Assignment by Amendola to the Company executed by Amendola on
May 24, 2000), and the patents and other intellectual property that the Company
acquired from Amendola and GP Strategies Corporation pursuant to that certain
Assignment and Assumption of License Agreement dated as of December 17, 1998
between GP Strategies Corporation and the Company to which Amendola consented.
In the event that it is determined by the Company that any such

                                       21
<PAGE>
act(s) or omission(s) that Amendola committed, or oral or written statement(s),
representation(s) or disclosure(s) that Amendola made, has directly or
indirectly resulted in, caused or otherwise contributed to, or directly or
indirectly results in, causes or otherwise contributes to, any reduction,
impingement upon or other compromise of the Company's interest(s) in any such
intellectual property of the Company, such event shall constitute a material
breach of this Agreement, as a result of which Amendola shall forfeit, and
hereby forfeits, his right to any Additional Stock Options and any Supplemental
Stock Options as set forth in paragraph 6 hereinabove, which right shall be
irrevocably forfeited. For purposes of this paragraph 18(a), the determination
of whether any act(s) or omission(s) that Amendola committed, or oral or written
statement(s), representation(s) or disclosure(s) that Amendola made, has
directly or indirectly resulted in, caused or otherwise contributed to, or
directly or indirectly results in, causes or otherwise contributes to, any
reduction, impingement upon or other compromise of the Company's interest(s) in
any such intellectual property of the Company, shall be within the sole
discretion of the Company.

      (b) Amendola agrees to provide any and all assistance and cooperation
requested by the Company in connection with any and all issues and/or disputes
concerning, relating to or arising from the Company's rights to or interests in
any of its intellectual property, including, without limitation, issues or
disputes concerning, relating to or arising from claims of persons or entities
other than the Company to any right to or interest in any such intellectual
property. With respect to any such request for assistance or cooperation,
provided that the Independent Consulting Agreement is in force and has not been
terminated, Amendola shall not be entitled to any compensation for such
assistance or cooperation by virtue of this Agreement, provided

                                       22
<PAGE>
however, that the Company shall compensate the Independent Consultant in
accordance with the terms and conditions of the Independent Consulting
Agreement. With respect to any such request by the Company for acceptance or
cooperation made by the Company subsequent to the termination of the Independent
Consulting Agreement, the Company shall compensate Amendola at the rate of
$125.00 per hour, such hourly rate to be increased annually on the anniversary
date of the termination of the Independent Consulting Agreement at the rate of
five percent per annum. In the event that Amendola fails to provide any
assistance or cooperation requested by the Company in connection with any such
issues or disputes, such failure shall constitute a material breach of this
Agreement, as a result of which Amendola shall forfeit, and hereby forfeits, his
right to any Additional Stock Options and any Supplemental Stock Options as set
forth in paragraph 6 hereinabove, which right shall be irrevocably forfeited.
For purposes of this paragraph 18(b), the determination of whether Amendola has
breached this paragraph 18(b) shall be within the sole discretion of the
Company.

      19. Amendola understands and acknowledges that, pursuant to this
Agreement, other than the rights expressly set forth in this Agreement, he has
expressly waived all his rights against the Released Parties.

      20. Amendola represents and warrants to the Company that he has the full
power, capacity, and authority to enter into this Agreement, and that no portion
of any claim, right, demand, action, or cause of action that Amendola has or
might have had arising out of the acts, events, transactions, and occurrences
referred to herein have been assigned, transferred, or conveyed to any person
not a party to this Agreement, by way of subrogation, operation of law, or
otherwise, and that no releases or settlement agreements are necessary or need
to be obtained from any other

                                       23
<PAGE>
person or entity to release and discharge completely any of Amendola's claims
released in this Agreement.

      21. Amendola represents and warrants to the Company that Amendola
understands that if the facts upon which this Agreement are found hereafter to
be different from the facts now believed to be true, this Agreement will remain
binding and effective and the parties expressly accept and assume the risk of
such possible differences and agree that this Agreement shall remain binding and
effective, notwithstanding such potential differences.

      22. Amendola acknowledges that he has entered into this Agreement freely,
knowingly, and voluntarily; it is further understood and agreed that this
Agreement was reached and agreed to by the parties in order to avoid the expense
and uncertainties of potential litigation.

      23. This Agreement shall become effective on the eighth day after Amendola
and the Company execute this Agreement, provided however, that Amendola has not
revoked this Agreement in writing within seven days after executing this
Agreement in accordance with paragraph 14(f) hereinabove or in any other manner
("the Effective Date"). Amendola's non-revocation of this Agreement in writing
within seven days after executing this Agreement in accordance with paragraph
14(f) hereinabove or in any other manner is a condition precedent to this
Agreement becoming effective, to each and every obligation of the Company set
forth in this Agreement, including, without limitation, the Company's
obligations set forth in paragraphs 4 through 9 hereinabove, and to the
effectiveness of the Independent Consulting Agreement.

      24. Amendola covenants not to seek or apply for future employment with the
Company or any of its parents, subsidiaries, affiliates or successors. Amendola
also acknowledges that his employment relationship with the Company and its
parents, subsidiaries, affiliates and successors has been permanently and
irrevocably severed and that neither the Company nor any of its parents,
subsidiaries,

                                       24
<PAGE>
affiliates or successors has any obligation, contractual or otherwise, to
rehire, recall or hire him in the future. Amendola agrees that any attempt by
him to become employed by the Company or any of its parents, subsidiaries,
affiliates or successors will constitute a material breach of this Agreement.

      25. (a) This Agreement shall inure to the benefit of and be binding upon
Amendola and any of his heirs, administrators, executives and assigns or any
other individual or entity who may claim by or through him. Amendola's rights
and obligations under this Agreement shall not be assigned, pledged, or
encumbered by him without the Company's written consent.

      (b) No modification, amendment or waiver of any provision of this
Agreement shall be effective unless approved in writing by both parties. The
failure of either party at any time to enforce any of the provisions of this
Agreement shall not be construed as a waiver of such provisions and shall not
affect the right of such party thereafter to enforce each and every provision
hereof in accordance with its terms.

      (c) Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be held to be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

      (d) This Agreement is complete and sets forth the entire understanding of
the parties regarding the subject matter thereof. All existing agreements,
contracts, or understandings between the parties, whether oral or written,
relating to the subject matter of this Agreement are hereby superseded and
rendered invalid by this Agreement, with the sole exception of the

                                       25
<PAGE>
following: (i) that certain Stock Option Agreement (Incentive and Non-Qualified
Stock Options) dated October 3, 2000, (ii) that certain Stock Option Grant
Notice dated July 13, 2000, (iii) the Independent Consulting Agreement, (iv)
that certain Amended and Restated Agreement dated August 1, 2000 by among
Amendola, GP Strategies Corporation and the Company and Appendix A thereto
(consisting of an Assignment by Amendola to the Company executed by Amendola on
May 24, 2000), and (v) that certain Assignment and Assumption of License
Agreement dated as of December 17, 1998 between GP Strategies Corporation and
the Company to which Amendola consented. The parties acknowledge that, as of
October 1, 2001, the Company possesses no right of first refusal with respect to
Inventions that Amendola created, conceived of, made, prepared, worked on or
contributed to the creation of during the Inventions Employment Period.

      (e) All questions concerning the construction, validity, interpretation
and enforcement of this Agreement shall be governed by the internal laws of the
State of New York without regard to its conflicts of laws principles.

      (f) Any and all disputes relating to this Agreement shall be brought
exclusively in the federal or state courts located in the City, County, and
State of New York, and the parties hereby expressly represent and agree that
they are subject to the personal jurisdiction of said courts, and each of the
parties hereby irrevocably consents to the jurisdiction of such courts in any
legal or equitable proceedings related to such dispute and waives, to the
fullest extent permitted by law, any objection which it may now or hereafter
have that the laying of the venue of any legal proceedings related to such
dispute which is brought in any such court is improper or that such proceedings
have been brought in an inconvenient forum.

      (g) Amendola acknowledges that any breach of paragraphs 11 or 12 would
constitute a material breach of this Agreement and may cause great or
irreparable injury to the Company for which pecuniary compensation would not
afford adequate relief, or it would be extremely

                                       26
<PAGE>
difficult to ascertain the amount of the compensation which would afford
adequate relief. Therefore, in the event of an actual or threatened breach of
paragraphs 11 or 12 of this Agreement, Amendola agrees that the Company has the
right to seek and obtain equitable relief, including injunctive relief and
specific performance as against Amendola, in addition to any other rights and
remedies it may have, for Amendola's threatened or actual breach of paragraphs
11 and 12 hereinabove.

      (h) The "WHEREAS" recitals are an integral part of this Agreement, and are
therefore incorporated herein as a part of this Agreement.

      (i) This Agreement may be executed in counterparts, each of which together
constitute one and the same instrument.

      26. Amendola expressly acknowledges and agrees that he has had the
opportunity to consult with an attorney of his own choice and has entered into
this Agreement freely, knowingly and voluntarily. It is further understood and
agreed that this Agreement was reached and agreed to by the parties in order to
avoid the expense of litigation, as well as the uncertainties of potential
litigation. Amendola agrees and acknowledges that he has read this Agreement
carefully and fully understands all of its provisions, including the legal
effect of all of its provisions. By signing below, Amendola acknowledges that he
has voluntarily accepted the terms and conditions of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       27
<PAGE>
      IN WITNESS WHEREOF, the parties have hereunto voluntarily executed this
Agreement on the dates indicated below.

STEVEN C. AMENDOLA

/s/ Steven C. Amendola
-----------------------
Dated: December 11, 2001

STATE OF NEW JERSEY)
COUNTY OF MONMOUTH)  ss.:

      On December __, 2001, before me personally came Steven C. Amendola, to me
known or proved to me on the basis of satisfactory evidence to be the individual
described in, and who executed the foregoing Separation Agreement and Release In
Full, and who duly acknowledged to me that he executed the same in his
individual capacity as his free, knowing and voluntary act, and that by his
signature on the instrument, executed the same.

Sworn to before me this
__ day of December, 2001

________________________
     Notary Public

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       28
<PAGE>
MILLENNIUM CELL INC.
     /s/ Stephen S. Tang
By:  -------------------
     Stephen S. Tang

Its: -------------------------------------
     President and Chief Executive Officer

Dated: December 11, 2001

STATE OF NEW JERSEY)
COUNTY OF MONMOUTH) ss.:

      On December __, 2001, before me personally came Stephen S. Tang, to me
known or proved to me on the basis of satisfactory evidence to be the individual
described herein, who, by me duly sworn, did depose and say that deponent is the
President and Chief Executive Officer of Millennium Cell Inc., the entity
described in, and which executed, the foregoing Separation Agreement And Release
In Full, and that deponent is authorized to execute the foregoing Separation
Agreement And Release In Full.

Sworn to before me this
__ day of December, 2001

________________________
     Notary Public

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       29
<PAGE>
                  EXHIBIT A [INDEPENDENT CONSULTING AGREEMENT]

                                       30
<PAGE>
                EXHIBIT B [AGREED STATEMENT CONCERNING DEPARTURE]

Millennium Cell Inc. ("the Company") and Steven C. Amendola ("Amendola")
Amendola's employment agreement with the Company and entered into an agreement
that is of mutual benefit to both parties because it maintains Mr. Amendola's
long-term commitment to the Company through a consultancy arrangement, yet gives
him the intellectual freedom to pursue unrelated scientific interests.
Notwithstanding the foregoing sentence, Amendola agrees that the Company may
make any and all statements relating to the termination of his employment with
the Company and/or the terms and conditions of his separation from the Company
that are required to be made under United States securities laws.

                                       31
<PAGE>
                              MILLENNIUM CELL INC.
                              1 Industrial Way West
                           Eatontown, New Jersey 07724

                                                                  March 13, 2002

Mr. Steven C. Amendola
22 Lambert Johnson Drive
Ocean, New Jersey 07712

Dear Mr. Amendola:

      This letter is in reference to that certain Separation Agreement and
Release in Full effective as of December 11, 2001 (the "Agreement"), between
Millennium Cell Inc., a Delaware corporation (the "Company") and you, a resident
of the State of New Jersey. Capitalized terms used herein, unless otherwise
defined or unless the context otherwise indicates, shall have the same meanings
as set forth in the Agreement. The Agreement is hereby amended as follows:

1.    Section 7(a).

      Section 7(a) is hereby amended to read in its entirety as follows:

      "7. (a) The parties hereby acknowledge that Amendola beneficially owns
fifty-four thousand, six hundred and ninety (54,690) shares of common stock of
the Company as of the Effective Date, as term is defined in paragraph 23
hereinbelow (the "Currently-Owned Shares")."

2.    Section 8.

      Section 8 is hereby amended to ready in its entirety as follows:

      "8. In the event that Amendola's "Continuous Service", as that term is
defined in paragraph 2.8 of the Plan, terminates for any reason other than the
following: (a) Amendola's voluntary resignation from the Company's Board of
Directors, (b) the removal of Amendola

                                       32
<PAGE>
from the Company's Board of Directors for cause, or (c) Amendola chooses or
requests not to stand for election or reelection to the Company's Board of
Directors, then notwithstanding anything in this Agreement to the contrary,
Amendola shall have a period of up to one year following his termination of
"Continuous Service" to exercise his Additional Stock Options and his
Supplemental Stock Options. Notwithstanding the foregoing, this paragraph 8
shall not apply in the event that: (w) the Independent Consultant terminates the
Independent Consulting Agreement without Cause pursuant to paragraph 12(b) of
the Independent Consulting Agreement, (x) the Company terminates the Independent
Consulting Agreement for Cause pursuant to paragraph 12(b) of the Independent
Consulting Agreement, (y) Amendola ceases to own at least seventy-five percent
of the outstanding capital of Independent Consultant, or (z) Amendola ceases to
be an employee of Independent Consultant."

      Except for the aforementioned amendments to Section 7(a) and Section 8 of
the Agreement set forth in this letter, no other terms or provisions of the
Agreement are being or have been amended, and all other terms and provisions of
the Agreement shall remain in full force and effect.

                                Very truly yours,

                                MILLENNIUM CELL INC.

                                By:  /s/ Norman R. Harpster, Jr.
                                     -------------------------------------------
                                     Norman R. Harpster, Jr.

                                Its:
                                     -------------------------------------------
                                     Vice President - Finance and Administration

Agreed To And Accepted By:

STEVEN C. AMENDOLA

/s/ Steven C. Amendola
--------------------------

                                       33

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