Document:

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                                                                   Exhibit 10.41

                              EMPLOYMENT AGREEMENT

This AGREEMENT is entered into by and between Plug Power Inc. (the "Company"),
and Roger B. Saillant (the "Executive"), effective as of December 15, 2000.

1.  Employment Period.  The Company hereby agrees to employ the Executive, and
    -----------------
    the Executive hereby agrees to remain in the employ of the Company subject
    to the terms and conditions of this Agreement, for the period commencing on
    December 15, 2000 (the "Commencement Date") and ending on the one year
    anniversary of the Commencement Date (the "Employment Period") unless
    earlier terminated as provided herein; provided, however, that the
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    Employment Period shall automatically be extended without action by either
    party for additional one (1) year periods, as of the first anniversary of
    the Commencement Date and each succeeding anniversary thereof unless the
    Company or the Executive shall have served written notice to the other party
    as provided in this Agreement.

2.  Terms of Employment.
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    a) Position and Duties
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       (i) During the Employment Period, the Executive shall serve in the
           position and at the location set forth on Exhibit A hereto, or such
           other executive position(s) appropriate to the Executive's training,
           qualifications or experience, as the Compensation Committee of the
           Board of Directors of the Company may from time to time determine are
           reasonably comparable to the Executive's initial position.

      (ii) During the Employment Period, and excluding any periods of
           vacation and sick leave to which the Executive is entitled, the
           Executive agrees to devote his full attention and time to the
           business and affairs of the Company and to use the Executive's
           reasonable best efforts to: (A) perform such responsibilities in a
           professional manner, (B) promote the interests of the Company and its
           subsidiaries, (C) discharge such executive and administrative duties
           not inconsistent with his position as may be assigned to him by the
           Board, and (D) serve, without additional compensation, as a director
           of the Company or as an officer and director of any subsidiary of the
           Company if elected or appointed as such. It shall not be a violation
           of this Agreement for the Executive to: (A) serve on corporate, civic
           or charitable boards

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           or committees, (B) deliver lectures, fulfill speaking engagements or
           teach at educational institutions and/or (C) manage personal
           investments, so long as such activities do not conflict with or
           significantly interfere with the performance of the Executive's
           responsibilities as an employee of the Company in accordance with
           this Agreement.

   b)  Compensation.
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       (i) Base Salary.  During the Employment Period, the Executive shall
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           receive an annual base salary ("Annual Base Salary") in the initial
           amount of $300,000. The Annual Base Salary may be revised from time
           to time. The Annual Base Salary shall be paid in accordance with the
           Company's normal payroll practices for senior executives subject only
           to such payroll and withholding deductions as are required by law.
           The Annual Base Salary shall be paid no less frequently than in equal
           monthly installments. For purposes of this Agreement, employment and
           compensation paid by any direct or indirect subsidiary of the Company
           will be deemed to be employment and compensation paid by the Company.

      (ii) Annual Incentive. During the Employment Period, the Executive
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           shall be eligible to receive an annual incentive bonus with a target
           amount equal to 100 percent of his Annual Base Salary to be
           determined in accordance with the provisions of a bonus plan adopted
           by the Board of Directors of the Company (the "Bonus Plan").
           Extraordinary performance, as defined by the Compensation Committee
           of the Board, and the Bonus Plan, can result in a maximum award of up
           to 200% of Annual Base Salary. Any bonus awarded under such Bonus
           Plan shall be paid one-third in cash and the remainder in the form of
           equity (such as options and restricted stock) with a vesting schedule
           no greater than four years.

     (iii) Savings and Retirement Plans. During the Employment Period, the
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           Executive shall be eligible to participate in all savings and
           retirement plans, practices, policies and programs to the extent
           applicable generally to other peer executives of the Company and any
           affiliated entities, and in accordance with the provisions of those
           plans. Nothing shall require the Company to establish any such plans,
           practices, policies and/or programs or limit the Company's right, in
           its sole discretion, to amend or terminate any such plans, practices,
           policies and/or programs at any time.

      (iv) Welfare and Other Benefits Plans. During the Employment Period,
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           the Executive and the Executive's eligible family members

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           shall be entitled to participate in all benefit and executive
           perquisites under welfare, fringe and other similar benefit plans,
           practices, policies and programs pursuant to the terms, conditions
           and eligibility requirements of any such plans, policies, practices
           and/or programs, which may be provided by the Company and its
           affiliated entities (including, without limitation, medical,
           prescription, dental, disability, employee life, group life,
           accidental death and travel accident insurance plans and programs) to
           the extent applicable generally to other peer executives of the
           Company and its affiliated entities. Nothing contained in this
           Agreement shall require the Company to establish any such plans,
           practices, policies and/or programs or limit the Company's right, in
           its sole discretion, to amend or terminate any such benefit plans,
           practices and/or programs at any time.

       (v) Expenses. During the Employment Period, the Executive shall be
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           entitled to receive prompt reimbursement for all reasonable business
           expenses incurred and submitted by the Executive in accordance with
           the policies of the Company.

    c) Contingent Retirement Benefit. The Company shall establish a funding
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       vehicle on the Commencement Date in an amount equal to the agreed upon
       lump sum, present value of the difference between (i) the lump sum
       benefit Executive would have received pursuant to the Ford/Visteon
       pension plan if he had retired at his normal retirement date in
       accordance with the provisions of such plan; and (ii) the lump sum
       benefit Executive is eligible to receive pursuant to such plan based upon
       his actual retirement date (the "Contingent Retirement Benefit"). In
       order to calculate the amount of the Contingent Retirement Benefit, the
       Company shall use an interest rate factor equal to 8%, a life expectancy
       of 80 years of age and a normal retirement age of 65. This Contingent
       Retirement Benefit shall vest based on a 5-year cliff vesting schedule.
       The Contingent Retirement Benefit shall also vest prior to the expiration
       of the five year period in the event Executive is terminated for any
       reason other than "Cause" (as defined in Paragraph 3 below) or as a
       result of Disability (as defined in Paragraph 3 below). The Contingent
       Retirement Benefit shall also vest prior to the expiration of the five
       year period in the event Executive terminates his employment for "Good
       Reason" (as defined below in Paragraph 3 below). Notwithstanding the fact
       that the Contingent Retirement Benefit shall have vested in accordance
       with the provisions of this Paragraph 2(c), the Company shall not have
       any obligation to pay the Contingent Retirement Benefit to the Executive
       if (i) Executive's "vested equity value" of the Initial Stock Options
       granted to the Executive pursuant to Paragraph 6 of this Agreement equals
       or exceeds three times the amount of the Contingent Retirement

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    Benefit, or (ii) Executive's employment is terminated for "Cause" (as
    defined in Paragraph 3 of this Agreement). In such cases, the Executive
    agrees to relinquish all rights to such payment. The "vested equity value"
    of the Initial Stock Options shall be equal to the market value of the
    vested number of shares of stock subject to such options, reduced by the
    Executive's exercise price for such shares, and shall be tested at the time
    the Contingent Retirement Benefit becomes fully vested in accordance with
    the provisions of this Paragraph 2(c).

3.  Termination of Employment
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    Notwithstanding any other provisions of this Agreement, the Executive's
    employment may be terminated upon the occurrence of any event set forth
    below. All rights and obligations of the parties shall terminate as of the
    effective date of such termination except as specifically provided herein.

    a) Death or Disability. The Executive's employment shall terminate
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       automatically upon the Executive's death during the Employment Period. In
       the event of the Executive's death, the effective date of termination
       shall be the date of Executive's death. If the Company determines in good
       faith that the Disability (as defined below) of the Executive has
       occurred during the Employment Period, it may give to the Executive
       written notice of its intention to terminate the Executive's employment.
       In such event, the Executive's employment with the Company shall
       terminate effective on the thirtieth day after receipt of such notice by
       the Executive. For purposes of this Agreement, "Disability" shall mean
       the Executive's inability to perform his normal duties for the Company
       for three months or more during any twelve-month period.

    b) Cause. The Company may terminate the Executive's employment during the
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       Employment Period for "Cause". For purposes of this Agreement, "Cause"
       shall mean:

       (i) any material breach of this Agreement by the Executive, which
           breach is not remedied within thirty (30) days after written notice
           thereof, specifying the nature of such breach in reasonable detail,
           is given by the Board to the Executive,

      (ii) Executive's conviction of a felony or other crime involving
           moral turpitude,

     (iii) any act or omission by the Executive during the Employment
           Period involving willful malfeasance or gross negligence in the
           performance of his duties hereunder, and/or

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      (iv) Executive's failure to follow the reasonable instructions given
           in good faith by the Board, which failure is not remedied within
           thirty (30) days after written notice thereof specifying the details
           of such conduct is given by the Board to the Executive. The effective
           date of termination for purposes of clause 3(b)(iii) shall be the
           date of such act and the effective date of termination for purposes
           of clause 3(b)(ii) shall be the date of such conviction. If Executive
           does not remedy any condition identified in clause 3(b)(i) and/or
           3(b)(iv) within such notice period, then termination shall be deemed
           to occur 30 days after the date of the notice from the Company. The
           Executive shall forfeit all right to unearned Annual Base Salary and
           any bonus accrued pursuant to the Bonus Plan as of the effective date
           of such termination for Cause.

  c)  Good Reason.
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       (i) The Executive's employment may be terminated by the Executive for
            Good Reason.

      (ii) For purposes of this Agreement, prior to any Change in Control
           (as defined in this Paragraph 3(c)), or after any applicable Window
           Period (as defined in this Paragraph 3(c)), "Good Reason" shall mean
           a material breach by the Company of this Agreement after the
           Executive has given the Company notice of the breach and a reasonable
           opportunity to cure.

     (iii) In the event of any Change in Control, "Good Reason" shall mean
           that any of the following events has occurred without the Executive's
           written consent: (i) a demotion in the Executive's status, position
           or responsibilities which, in his reasonable judgment, does not
           represent a positive change from his status, position or
           responsibilities as in effect immediately prior to the Change in
           Control; (ii) the assignment to the Executive of any duties or
           responsibilities which, in his reasonable judgment, are inconsistent
           with such status, position or responsibilities immediately prior to
           the Change in Control; or any removal of the Executive from or
           failure to reappoint or reelect him to any of such positions that the
           Executive had immediately prior to the Change in Control; (iii) a
           reduction by the Company in the Executive's Annual Base Salary as in
           effect on the date hereof or as the same may be increased from time
           to time during the term of this Agreement or the Company's failure to
           increase (within twelve (12) months of the Executive's last increase
           in Annual Base Salary) the Executive's Annual Base Salary after a
           Change in Control in an amount which at least equals, on a percentage
           basis,

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           the average percentage increase in base salary for all executive and
           senior executives of the Company effected in the preceding twelve
           (12) months; (iv) the relocation of the principal executive offices
           of the Company to a location more than fifty (50) miles beyond which
           the office at which Executive performed his duties immediately prior
           to the Change in Control, except for required travel on the Company's
           business to an extent substantially consistent with his business
           travel obligations at the time of a Change in Control; (v) the
           failure by the Company to continue in effect any incentive, bonus or
           other compensation plan in which the Executive participated
           immediately prior to the Change in Control, unless an equitable
           arrangement (embodied in an ongoing substitute or alternative plan),
           to which he has consented, has been made with respect to such plan in
           connection with the Change in Control, or the failure by the Company
           to continue his participation therein, or any action by the Company
           which would directly or indirectly materially reduce his
           participation therein; (vi) the failure by the Company to continue to
           provide the Executive with benefits substantially similar to those
           enjoyed by him or to which he was entitled under any of the Company's
           profit sharing, life insurance, medical, dental, health and accident,
           or disability plans in which he was participating at the time of a
           Change in Control, the taking of any action by the Company which
           would directly or indirectly materially reduce any of such benefits
           or deprive him of any material fringe benefit enjoyed by him or to
           which he was entitled at the time of the Change in Control, or (vii)
           the failure of the Company to obtain a satisfactory agreement from
           any successor or assign of the Company to assume and agree to perform
           this Agreement. Notwithstanding the foregoing, Executive may only
           exercise his right to terminate his employment for "Good Reason"
           pursuant to the provisions of this Paragraph 3(c)(iii) if the
           Executive's Notice of Termination specifying the event constituting
           Good Reason pursuant to the provisions of this Paragraph 3(c)(iii) is
           delivered to the Company within one year of the date of the Change in
           Control (the "Window Period").

     (iv)  For purposes of this Agreement, "Change of Control" shall mean the
           occurrence of any one of the following events:

            (A)   any "Person," as such term is used in Sections 13(d) and 14(d)
                  of the Securities Exchange Act of 1934 (the "Act") (other than
                  (1) the Company, (2) any of its Subsidiaries, (3) any trustee,
                  fiduciary or other person or entity holding securities under
                  any employee benefit plan or trust of the Company or any of
                  its subsidiaries, or (4) either of Edison Development
                  Corporation, a Michigan corporation or Mechanical Technology

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                  Incorporated, a New York corporation), together with all
                  "affiliates" and "associates" (as such terms are defined in
                  Rule 12b-2 under the Act of such Person, shall become the
                  "beneficial owner" (as such term is defined in Rule 13d-3
                  under the Act), directly or indirectly, of securities of the
                  Company representing 50 percent or more of the combined voting
                  power of the Company's then outstanding securities having the
                  right to vote in an election of the Company's Board of
                  Directors ("Voting Securities") (in such case other than as a
                  result of an acquisition of securities directly from the
                  Company); or

            (B)   persons who, as of the Effective Date, constitute the
                  Company's Board of Directors (the "Incumbent Directors") cease
                  for any reason, including, without limitation, as a result of
                  a tender offer, proxy contest, merger or similar transaction,
                  to constitute at least a majority of the Board, provided that
                  any person becoming a director of the Company subsequent to
                  the Effective Date shall be considered an Incumbent Director
                  if such person's election was approved by or such person was
                  nominated for election by either (1) a vote of at least a
                  majority of the Incumbent Directors or (2) a vote of at least
                  a majority of the Incumbent Directors who are members of a
                  nominating committee comprised, in the majority, of Incumbent
                  Directors; but provided further, that any such person whose
                  initial assumption of office is in connection with an actual
                  or threatened election contest relating to the election of
                  members of the Board of Directors or other actual or
                  threatened solicitation of proxies or consents by or on behalf
                  of a Person other than the Board, including by reason of
                  agreement intended to avoid or settle any such actual or
                  threatened contest or solicitation, shall not be considered an
                  Incumbent Director; or

             (C)  the stockholders of the Company shall approve (1) any
                  consolidation or merger of the Company where the stockholders
                  of the Company, immediately prior to the consolidation or
                  merger, would not, immediately after the consolidation or
                  merger, beneficially own (as such term is defined in Rule 13d-
                  3 under the Act), directly or indirectly, shares representing
                  in the aggregate more than 50 percent of the voting shares of
                  the corporation issuing cash or securities in the
                  consolidation or merger (or of its ultimate parent
                  corporation, if any), (2) any sale, lease, exchange or other
                  transfer (in one transaction or a series of transactions
                  contemplated or arranged by any party as a single plan) of all

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                  or substantially all of the assets of the Company or (3) any
                  plan or proposal for the liquidation or dissolution of the
                  Company.

            Notwithstanding the foregoing, a "Change of Control" shall not be
            deemed to have occurred for purposes of the foregoing clause (A)
            solely as the result of an acquisition of securities by the Company
            which, by reducing the number of shares of Voting Securities
            outstanding, increases the proportionate number of shares of Voting
            Securities beneficially owned by any person to 50 percent or more of
            the combined voting power of all then outstanding Voting Securities;
            provided, however, that if any person referred to in this sentence
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            shall thereafter become the beneficial owner of any additional
            shares of Voting Securities (other than pursuant to a stock split,
            stock dividend, or similar transaction or as a result of an
            acquisition of securities directly from the Company) and immediately
            thereafter beneficially owns 50 percent or more of the combined
            voting power of all then outstanding Voting Securities, then a
            "Change of Control" shall be deemed to have occurred for purposes of
            the foregoing clause (A).

            (v) Notwithstanding anything contained in this Agreement to the
                contrary, if the Executive's employment is terminated before a
                Change in Control as defined in this Paragraph 3(c) and the
                Executive reasonably demonstrates that such termination (A) was
                at the request of a third party who has indicated an intention
                or taken steps reasonably calculated to effect a "Change in
                Control" and who effectuates a "Change in Control" or (B)
                otherwise occurred in connection with, or in anticipation of, a
                "Change in Control" which actually occurs, then for all purposes
                of this Agreement, the date of a "Change in Control" with
                respect to the Executive shall mean the date immediately prior
                to the date of such termination of the Executive's employment.

d)   Without Good Reason.   This Agreement may be terminated by the Executive,
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     upon sixty (60) days' prior notice to the Company, in the absence of "Good
     Reason". In such event, the effective date of termination shall be the date
     set forth in such notice.

e)   Without Cause.  This Agreement may be terminated by the Company,
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     without Cause, upon sixty (60) days prior notice to the Executive. In such
     event, the effective date of termination shall be the date set forth in
     such notice.

f)   Notice of Termination. Any termination by the Company for Cause, or by the
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     Executive for Good Reason, shall be communicated by Notice of Termination
     to the other party. For purposes of this Agreement, a "Notice of
     Termination" means a written notice which

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       (i) indicates the specific termination provision in this Agreement relied
       upon, (ii) to the extent applicable, sets forth in reasonable detail the
       facts and circumstances claimed to provide a basis for termination of the
       Executive's employment under the provision so indicated and (iii) if the
       Date of Termination is other than the date of receipt of such notice,
       specifies the termination date (which date shall be not more than thirty
       days after the giving of such notice). The failure by the Executive or
       the Company to set forth in the Notice of Termination any fact or
       circumstance which contributes to a showing of Good Reason or Cause shall
       not waive any right of the Executive or the Company, respectively,
       hereunder or preclude the Executive or the Company, respectively, from
       asserting such fact or circumstance in enforcing the Executive's or the
       Company's rights hereunder.

    g) Date of Termination. "Date of Termination" or "Termination Date" for
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       purposes of this Agreement means the effective date of termination
       determined in accordance with the provisions of this Paragraph 3.

4.  Obligations of the Company upon Termination.
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    a) Good Reason; Other Than for Cause. If, during the Employment Period, the
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       Company shall terminate the Executive's employment other than for Cause,
       death or Disability, or the Executive shall terminate employment for Good
       Reason:

       i)  The Company shall pay to the Executive in a lump sum in cash
           within thirty (30) calendar days after the Date of Termination, the
           aggregate of the amounts set forth in clauses A and B below:

           A. the sum of: (1) the Executive's Annual Base Salary accrued
              through the Date of Termination to the extent not theretofore
              paid, and (2) the product of (x) the greater of the actual bonus
              accrued through the Date of Termination pursuant to the Bonus Plan
              or the annual average bonus paid to the Executive pursuant to the
              Bonus Plan determined based on the three (3) fiscal years
              immediately preceding the Termination Date (the "Minimum Bonus")
              and (y) a fraction, the numerator of which is the number of days
              in the current calendar year through the Date of Termination, and
              the denominator of which is 365 (the sum of the amounts described
              in clauses (1) and (2) are referred to herein as the "Accrued
              Obligations");

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           B. the amount equal to the product of (1) and (2) where:

              (1) is: (i) if the Date of Termination occurs within the Window
                  Period, the lesser of (a) two, or (b) the number of years,
                  rounded to the nearest twelfth (1/12th) of a year, between the
                  Date of Termination and the Executive's attainment of age
                  sixty-five (65) and

                  (ii) if the Date of Termination occurs prior to a Change in
                       Control or outside the Window Period, the number one (1),

                       and where:

              (2) is: the sum of (x) the Executive's Annual Base Salary and (y)
                  the Minimum Bonus.

   ii) Any restricted stock, stock options and any other stock awards
       granted to Executive that were outstanding immediately prior to the
       Termination Date including, but not limited to, the Initial Stock Options
       ("Prior Stock Awards") shall become immediately vested.

  iii) The Contingent Pension Benefit as defined in Paragraph 2(c) shall
       also immediately vest and its value compared to the vested equity value
       of the Initial Stock Options to determine Executive's entitlement to such
       Contingent Pension Benefit. Executive shall only be entitled to receive
       the Contingent Pension Benefit if the vested equity value of the Initial
       Stock Options is less than three times the amount of the Contingent
       Retirement Benefit.

   iv) The Company shall continue benefits to the Executive and/or the
       Executive's eligible family members at least equal to those which would
       have been provided to them in accordance with the welfare plans,
       programs, practices, executive pre-requisites and policies described in
       section 2(b)(iv) of this Agreement if the Executive's employment had not
       been terminated provided, however, that if the Executive becomes
       reemployed with another employer and is eligible to receive medical or
       other welfare benefits under another employer provided plan, the medical
       and other welfare benefits described herein shall be secondary to those
       provided under such other plan during such applicable period of
       eligibility. Such benefits shall be continued for the period determined
       below:

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       1)  if the Date of Termination occurs within the Window Period, the
           lesser of (a) two or (b) the number of years, rounded to the nearest
           twelfth (1/12th) of a year, between the Date of Termination and the
           Executive's attainment of age sixty-five (65) and

       2)  if the Date of Termination occurs prior to a Change in Control or
           outside the Window Period, the number one (1).

    v) To the extent not theretofore paid or provided, the Company shall
       timely pay or provide to the Executive any other amounts or benefits
       required to be paid or provided which the Executive is entitled to
       receive as a participant of any plan, program, policy or practice or
       contract or agreement of the Company and its affiliated companies,
       excluding any severance plan or policy (such other amounts and benefits
       shall be hereinafter referred to as the "Other Benefits").

b) Cause; Other than for Good Reason.  If the Executive's employment is
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   terminated for Cause or the Executive terminates employment without Good
   Reason, this Agreement shall terminate without further obligations to the
   Executive other than the obligation to pay to the Executive his Annual Base
   Salary and Other Benefits through the Date of Termination.

c) Death. If the Executive's employment is terminated by reason of the
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   Executive's death during the Employment Period, this Agreement shall
   terminate without further obligations to the Executive's legal
   representatives under this Agreement, other than payment of Accrued
   Obligations and the timely payment or provision of Other Benefits. Accrued
   Obligations shall be paid to the Executive's estate in a lump sum in cash
   within 30 days of the Date of Termination.

d) Disability.  If the Executive's employment is terminated by reason of the
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   Executive's Disability during the Employment Period, this Agreement shall
   terminate without further obligations to the Executive, other than as set
   forth in this Paragraph 4(d). The Company shall pay Executive Accrued
   Obligations and the timely payment or provision of Other Benefits. The
   Contingent Pension Benefit as defined in Paragraph 2(c) shall also
   immediately vest and its value compared to the vested equity value of the
   Initial Stock Options to determine Executive's entitlement to all or any
   portion of such Contingent Pension Benefit. Executive shall only be entitled
   to receive the Contingent Pension Benefit if the vested equity value of the
   Initial Stock Options is less than three times the amount of the

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       Contingent Retirement Benefit. The Initial Stock Options shall become
       immediately vested upon the Executive's Disability. Accrued Obligations
       shall be paid to the Executive in a lump sum in cash within 30 days of
       the Date of Termination

5. Vacation. The Executive shall be entitled to paid vacation and holidays
   --------
   annually during the Employment Period in accordance with the Company's policy
   as determined from time to time by the Board, provided, however, the
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   Executive shall be entitled to not less than four (4) weeks of paid vacation
   during the first year of the Employment Period following the Commencement
   Date and not less than five (5) weeks of paid vacation each year, thereafter.

6. Stock Options.  The Company grants to Executive nonqualified stock options
   -------------
   to acquire up to 750,000 shares of the Company's common stock $0.01 par
   value, at an exercise price of $11.1875 per share (this price is the fair
   market value of the Company's Stock on the date the Executive signed the
   Offer Letter), in accordance with and subject to the provisions of the
   Company's 1999 Stock Option and Incentive Plan (the "Initial Stock Options").
   The shares subject to the Initial Stock Options shall vest based on the
   following schedule.

            Vesting Date                      Number of
            ------------                      ---------
                                              Option Shares Exercisable
                                              -------------------------

            December 15, 2001                   15%

            December 15, 2002                   30%

            December 15, 2003                   50%

            December 15, 2004                   75%

            December 15, 2005                   100%

   No portion of the Initial Stock Options may be exercised until such portion
   has vested. The Initial Stock Options shall expire on December 15, 2010
   ("Expiration Date") and no portion of the Initial Stock Options shall be
   exercisable after the Expiration Date. The Initial Stock Options shall become
   fully vested in the event of the Executive's Disability, his termination for
   Good Reason or in the event the Company terminates his employment for any
   reason other than Cause.

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7. Restricted Stock. The Company agrees to grant Executive a restricted stock
   ----------------
   award entitling Executive to acquire, at par value, an amount of shares of
   the Company's $0.01 par value per share, common stock equivalent to the
   amount of restricted shares the Executive forfeited as a result of
   Executive's retirement from Ford/Visteon (the "Restricted Stock"). The
   Restricted Stock shall vest based on the same schedule that the restricted
   shares the Executive forfeited as a result of Executive's retirement from
   Ford/Visteon would have vested. The Restricted Stock award shall be made in
   accordance with and subject to the provisions of the Company's 1999 Stock
   Option and Incentive Plan ("Restricted Stock"). Executive shall provide the
   Company affirmation of the restricted shares the Executive forfeited as a
   result of the Executive's retirement from Ford/Visteon.

8. Visteon 2000 Incentive Bonus Offset.  Executive shall receive a payment in
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   March 2001 from the Company equivalent to the estimated annual incentive
   bonus that Executive would have earned at Visteon for the year 2000 which
   Executive forfeited as a result of Executive's retirement from Ford/Visteon.
   Such payment shall be made in the form of cash. Executive shall provide the
   Company affirmation of his 1999 incentive bonus paid and, to the extent
   possible, the calculation to be used to quantify his 2000 incentive bonus
   award, prior to March 1, 2001.

9. Relocation.  Executive shall be reimbursed for all customary and reasonable
   ----------
   expenses incurred in connection with relocation, including the movement of
   all household goods, temporary housing costs during the relocation period not
   to extend beyond June 30, 2001, two house hunting trips to the Capital
   District for Executive, closing costs associated with selling Executive's
   current residence and purchasing a new residence in the Capital District, and
   reasonable incidental costs and the personal tax consequences thereof;
   provided, however, that any reimbursement hereunder shall not exceed an
   amount equal to two months' Annual Base Salary, grossed up for tax purposes.

10. Cash Sign-On Inducement.  Upon execution of this Agreement, Executive shall
    -----------------------
    receive the sum of $50,000, grossed up for tax purposes.

11. Confidential Information:  Noncompetition.
    -----------------------------------------

    a) The Executive shall have executed and shall be bound by the provisions
       of a certain "Employee Patent, Confidential Information and Non-Compete
       Agreement." The provisions of this Employment Agreement shall supplement
       but shall not supersede the provisions of such Employee Patent,
       Confidential Information and Non-Compete Agreement. The terms of the
       Employee Patent, Confidential Information and Non-Compete Agreement shall
       be incorporated in this Agreement by this reference. In the event of any
       express conflict

                                       13
<PAGE>

       between the terms of the Employee Patent, Confidential Information and
       Non-Compete Agreement and this Employment Agreement, the terms of the
       Employee Patent, Confidential Information and Non-Compete Agreement shall
       control.

    b) The Executive shall hold in a fiduciary capacity for the benefit of
       the Company all secret or confidential information, knowledge or data
       relating to the Company or any of its affiliated companies, and their
       respective businesses, which shall have been obtained by the Executive
       during the Executive's employment by the Company or any of its affiliated
       companies and which shall not be or become public knowledge (other than
       by acts by the Executive or representatives of the Executive in violation
       of this Agreement). After termination of the Executive's employment with
       the Company, the Executive shall not, without the prior written consent
       of the Company or as may otherwise be required by law or legal process
       (provided the Company has been given notice of and opportunity to
       challenge or limit the scope of disclosure purportedly so required),
       communicate or divulge any such information, knowledge or data to anyone
       other than the Company and those designated by it. In addition, Executive
       shall not solicit employees of the Company for at least a one (1) year
       period beginning on the Date of Termination.

    c) The parties expressly agree that the terms of the non-competition
       provisions set forth in the Employee Patent, Confidential Information and
       Non-Compete Agreement are reasonable, enforceable, and necessary to
       protect the Company's interests, and are valid and enforceable. In the
       unlikely event, however, that a court of competent jurisdiction was to
       determine that any portion of such limited non-competition provision is
       unenforceable, then the parties agree that the remainder of the limited
       non-competition provision set forth in such Agreement shall remain valid
       and enforceable to the maximum extent possible.

    d) The Executive agrees that it would be difficult to measure damages to the
       Company from any breach of the covenants contained this Paragraph 11
       and/or in the Employee Patent, Confidential Information and Non-Compete
       Agreement, but that such damages from any such beach would be great,
       incalculable and irremediable, and that money damages would be an
       inadequate remedy. Accordingly, the Executive agrees that the Company may
       have specific performance of the terms of this Agreement and Employee
       Patent, Confidential Information and Non-Compete Agreement in any court
       of competent jurisdiction. The parties agree however, that the specific
       performance remedies described above shall not be the exclusive remedies,
       and the Company may enforce any other remedy or remedies available to it
       either in law

                                       14
<PAGE>

       or in equity including, but not limited to, temporary, preliminary,
       and/or permanent injunctive relief.

12.  Successors.
     ----------

    a) This Agreement is personal to the Executive and shall not be
       assignable by the Executive.

    b) This Agreement shall inure to the benefit of and be binding upon the
       Company and its successors and assigns.

    c) The Company will require any successor (whether direct or indirect, by
       purchase, merger, consolidation or otherwise) to all or substantially all
       of the business and/or assets of the Company to expressly assume and
       agree to perform this Agreement in the same manner and to the same extent
       that the Company would be required to perform it if no such succession
       had taken place. As used in this Agreement, "Company" shall mean the
       Company as hereinbefore defined herein and any successor to its business
       and/or assets as aforesaid which assumes and agrees to perform this
       Agreement by operation of law, or otherwise.

13. Internal Revenue Code Limits.  Notwithstanding anything in this
    ----------------------------
    Agreement to the contrary (other than this Section), in the event that the
    Company's independent auditor (the "Accounting Firm") determines that any
    payment by the Company to or for the benefit of the Executive pursuant to
    the terms of this Agreement would be nondeductible by the Company for
    federal income tax purposes because of Section 280G of the Code, then the
    amount payable to or for the benefit of the Executive pursuant to this
    Agreement shall be reduced (but not below zero) to the maximum amount
    payable without causing the payment to be nondeductible by the Company
    because of Section 280G of the Code (the "Section 280G Limit. Such
    determination by the Accounting Firm shall be conclusive and binding upon
    the parties.

14. Miscellaneous.
    -------------

    a) This Agreement shall be governed by and construed in accordance with the
       laws of New York, without reference to principles of conflict of laws.
       The captions of this Agreement are not part of the provisions hereof and
       shall have no force or effect. This Agreement may not be amended or
       modified except by a written agreement executed by the parties hereto or
       their respective successors and legal representatives.

    b) All notices and other communications hereunder shall be in writing and
       shall be deemed to be received when (i) hand delivered (with written
       confirmation of receipt), (ii) when received by the addressee, if

                                       15
<PAGE>

       sent by nationally recognized overnight delivery service (receipt
       requested) in each case to the address set forth below (or to such other
       address as a party may designate by notice to the other party).

       If to the Executive:
       -------------------

       Mr. Roger B. Saillant
       7352 Parker Road
       Saline, MI  48176

       With a copy to:
       ---------------

       William Hodgman, Esq.
       Cox, Hodgman & Giarmarco, P.C.
       101 West Big Beaver Road
       Columbia Circle II, 10th Floor
       Troy, MI  48084-4160

       If to the Company:
       -----------------

       Plug Power Inc.
       Attn:  Ana-Maria Galeano
       General Counsel
       968 Albany-Shaker Road
       Latham, NY  12110

       With a copy to:
       ---------------

       Boies, Schiller & Flexner LLP
       Attn:  Kathleen M. Franklin
       100 State Street, Suite 900
       Albany, New York  12207

    c) The invalidity or unenforceability of any provision of this Agreement
       shall not affect the validity or enforceability of any other provision of
       this Agreement.

    d) The Company may withhold from any amounts payable under this Agreement
       such Federal, state, local or foreign taxes as shall be required to be
       withheld pursuant to any applicable law or regulation.

    e) This Employment Agreement may be executed through the use of separate
       signature pages or in any number of counterpart copies, and each of such
       counterparts shall, for all purposes, constitute one agreement binding on
       all the parties.

                                       16
<PAGE>

    f) The provisions of this Agreement contain all of the terms and
       conditions agreed upon by the parties relating to the subject matter of
       this Agreement and shall supersede all prior agreements, negotiations,
       correspondence, undertakings and communications of the parties, either
       oral or written, with respect to such subject matter.

     IN WITNESS WHEREOF, the Executive has executed this Agreement and, subject
to the authorization of its Board of Directors, the Company has caused this
Agreement to be executed in its name on its behalf, as of the Commencement Date.

     /s/ Roger B. Saillant
     _____________________________________, Executive
     Roger B. Saillant

     December 15, 2000
     _____________________________________
     Date

     PLUG POWER INC.

         /s/ George McNamee
     By___________________________________
          George McNamee, Chairman of
          Board of Directors

          December 15, 2000
     ______________________________________
                                       Date

                                       17
<PAGE>

                                   EXHIBIT A

Position: President and Chief Executive Officer

Location: 968 Albany Shaker Road, Latham, New York  12110

                                       18<PAGE>
                                                                   Exhibit 10.42

                                                               February 13, 2001

William H. Largent
1249 Crooked Tree Court
Westerville, Ohio 43081

Re: Agreement

Dear Bill:

This letter serves as an agreement between you and Plug Power Inc. ("Plug")
related to your continued employment with Plug.

1)   You agree to the following in consideration for the benefits as noted
     herein, effective February 26, 2001:

2)   You agree to work part-time for Plug out of your office in the Central Ohio
     area. You will no longer hold the title of Chief Financial Officer or any
     other officer title. You will report to the Controller, Dave Neumann, and
     perform financial and accounting related functions under his direction,
     including providing an oral report monthly to Mr. Neumann.

3)   Your salary will be adjusted to an annual rate of $50,000 and be paid
     weekly. As a part-time employee you will be entitled to Plug's medical
     insurance plan. You will have no bonus plan or any other benefits other
     than those stated in this agreement.
4)   Plug will pay all expenses for travel between Albany, New York and
     Columbus, Ohio, as well as, all lodging and transportation expenses while
     you are in the Albany area, should you need to travel to Albany for Plug
     business. You will not be required to travel to Albany unless both you and
     Plug mutually agree as to the time and duration of the travel.

5)   It is understood and agreed to that you may take employment with other
     parties after the effective date of this agreement.

6)   Your employment may not be terminated by Plug until after May 31, 2002,
     unless for cause defined as a) making willful and material dishonest
     statements about Plug or any affiliate, or, b) being convicted of a felony
     or other crime involving moral turpitude.
<PAGE>

7)   In addition, for purposes of the stock option plans you will continue to be
     considered an employee of Plug, thus you will continue to vest in your
     current stock options through the period of your employment with Plug.

8)   Except for your Employee Patent, Confidentiality and Non-Compete Agreement
     and Stock Option Agreements which are incorporated in their entirety by
     reference herein, you agree that this Agreement supercedes all previous
     communications, whether oral or written, and constitutes the sole and
     entire agreement between you and Plug pertaining to your employment hereof.
     No modification, deletion of, or addition to the terms of this Agreement
     shall be binding on either party hereto unless made in writing and signed
     by a duly authorized representative of each party hereto.

          Please sign in the space below if you agree to the foregoing terms.

          Sincerely,

          /s/ Roger B. Saillant

          Roger B. Saillant
          President and Chief Executive Officer

          I acknowledge and accept this Agreement,

          /s/ William H. Largent      February 21, 2001
          ----------------------      -----------------
          William H. Largent                 Date

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