Document:

RELIANT BUILDING PRODUCTS, INC.
                                3010 LBJ Freeway
                                    Suite 400
                              Dallas, Texas   75234

                              November  1,  1999

To  the  Holders  of  10 7/8%  Senior  Subordinated
     Notes  due  2004  of  Reliant  Building  Products,  Inc.
     Identified  below:

     The  term  sheet annexed hereto sets forth the principal terms on which you
have  agreed  in  principle to exchange the entire principal amount beneficially
owned by you of the 10 7/8% Senior Subordinated Notes due 2004 (the "Old Notes")
of  Reliant  Building  Products,  Inc.  (the  "Company")  for an equal aggregate
principal  amount  of new notes (the "New Notes") having substantially the terms
set  forth  therein,  together  with  such  other  terms  and  conditions as are
customary  in  instruments similar to the New Notes and transactions of the type
contemplated.

     Our  signatures  below  evidence  (i)  our mutual non-binding  intention to
proceed with negotiations  designed to carry out a transaction  substantially in
the  manner  outlined  herein  and  (ii)  our  mutual  intention  to  proceed
expeditiously  with  the  negotiation  of  a  mutually  satisfactory lock-up and
forbearance  agreement  and  other  related  documentation.  Consummation of the
transaction   will  be  subject to  the negotiation and  execution of definitive
agreements  with  terms  satisfactory  to you and the Company, each in your sole
discretion.

     Very  truly  yours,

     RELIANT  BUILDING  PRODUCTS,  INC.

By: /s/ William Snyder
Name: William Snyder
Title: Senior Vice President

Confirmed  as  of  the  date  first  above  written::

Name  of  Bondholder:          Name  of  Bondholder:
Alliance Capital Management

By:  /s/ Michael E. Sohr       By:
Name: Michael E. Sohr          Name:
Title: Vice President          Title:

Principal  amount              Principal  amount
of  bonds  held:               of  bonds  held:
29,250,000

Name  of  Custodian:           Name  of  Custodian:
Various

Name  of  Bondholder:          Name  of  Bondholder:
SunAmerica CBO                 SunAmerica Life Insurance

By: /s/ Rafael Fogel           By: /s/ Rafael Fogel
Name: Rafael Fogel             Name: Rafael Fogel
Title: Authorized Agent        Title: Authorized Agent

Principal  amount              Principal amount
Of bonds held:                 of bonds held:
$6,000,000                     $1,000,000
Name  of  Custodian:           Name  of  Custodian:
Chase Texas                    DeutscheBank

Name  of  Bondholder:          Name  of  Bondholder:
SunAmerica Inc.                Bankers Trust

By: /s/ Rafael Fogel           By: /s/ Rafael Fogel
Name: Rafael Fogel             Name: Rafael Fogel
Title: Authorized Agent        Title: Authorized Agent

Principal  amount              Principal amount
Of bonds held:                 of bonds held:
$10,400,000                    $3,000,000
Name  of  Custodian:           Name  of  Custodian:
Chase DeutscheBank             DeutscheBank

Name  of  Bondholder:          Name  of  Bondholder:

By: /s/ H. Kevin Bivter        By:
Name: H. Kevin Bivter          Name:
Title: Partner                 Title:

Principal  amount              Principal amount
Of bonds held:                 of bonds held:
$6,500,000
Name  of  Custodian:           Name  of  Custodian:
Chase - Texas Commerce

<PAGE>
     November  1,  1999

                         RELIANT BUILDING PRODUCTS, INC.

                           SUMMARY OF PRINCIPAL TERMS
                           OF AMENDMENTS APPLICABLE TO
                    10 7/8% SENIOR SUBORDINATED NOTES DUE 2004

Issuer          Reliant  Building  Products,  Inc.  (the  "Company")

<PAGE>

The  Exchange Offer and Related Restructuring

The Company intends to make an
offer  to all Holders of the Company's outstanding 10 7/8% Senior Subordinated
Notes due 2004 (the "Old Notes") to exchange New Notes (as defined below) for an
equal principal amount of Old Notes (the "Exchange Offer"). In connection with
the  Exchange  Offer,  the Company intends to solicit (the "Solicitation")
consents  (the  "Consents")  to  certain  proposed  amendments (the "Proposed
Amendments")  to  the  Old  Indenture.  The Company's obligation to accept for
exchange  Old -Notes validly tendered pursuant to the Exchange Offer,  and the
obligation  of  each  Holder  of  Old  Notes  to  tender such Old Notes, will be
conditioned  upon  (i)  receipt  of valid unrevoked tenders from holders of at
least  95%  of the principal amount of the Old Notes outstanding (the "Tender
Condition"), (ii) execution by the Company and the Trustee under the indenture
pursuant  to  which  the  Old Notes were issued (the "Old Indenture"), following
receipt of Consents from Holders of at least a majority in principal amount of
the  Old  Notes  outstanding,  of  a supplemental indenture pro-viding for the
Proposed  Amendments (the "Consent Condition"), (iii) satisfaction of the Credit
Agreement  Amendment  Condition  (as  defined  below),  (iv) satisfaction of the
Investment  Condition  (as defined below), and (v) certain general conditions
to  the  Exchange Offer and the Solicitation set forth in Exhibit A hereto (the
                                                          ---------
"General  Conditions").    In  the  event  that  the  Tender  Condition is not
satisfied,  the  Company  may  elect  to  file  a prepackaged Chapter 11 plan of
reorganization  containing  substantially  the same terms as the Exchange Offer.

New  Notes

Up  to  $70,000,000  aggregate  principal  amount  of Senior
Subordinated  Variable  Rate  Interest  Option  Notes due 2004 (the "New Notes")

Maturity  of  New  Notes          May  1,  2004
                                  -------------

Interest

Interest on the New Notes will accrue and be payable as follows:
(a) On  each  of  the  interest payment dates November 1, 1999 and May 1,
2000,  interest  on the New Notes will be payable, at the option of the Company,
either  in  cash  or  by  accrual at 10 7/8 % per annum.  Accrued interest shall
compound  semi-annually.

(b) On  each  of  the interest payment dates November 1, 2000 and May 1,
2001,  interest on the New Notes will be payable, at the option of the Company,
either in cash at 10 7/8% per annum or by accrual at 11% per annum.  Accrued
interest  shall  compound  semi-annually.

(c) On each of the interest payment dates November 1, 2001 and May 1,
2002, interest on the New Notes will be payable, at the option of the Company,
either in  cash at 10 7/8% per annum or by accrual at 11% per annum. Accrued
interest shall compound semi-annually.

(d) On the August 1, 2002 interest payment date, interest on the New Notes
will be payable, at the option of the Company, either in cash at 10.731 % per
annum or by accrual at 11 7/8% per annum.

(e) On each interest payment date commencing November 1, 2002 through and
including May 1, 2004, interest on the New Notes will be payable quarterly in
cash at 10.731% per annum.

(f) All deferred interest shall become payable at the final maturity date
of the New Notes.

Interest Payment Dates

Commencing November 1, 1999 through and including May 1, 2002, semi-annually on
May 1  and November 1.  Commencing August 1, 2002 through and including May 1,
2004, quarterly on February 1, May 1, August 1, and November 1.  Interest that
is deferred as aforesaid shall be paid in full at the final maturity date of the
New Notes.

<PAGE>

Subsidiary  Guaranties

The New Notes will be guaranteed (the "Guaranties"),
jointly and severally on a senior subordinated basis, by each of the Company's
direct and indirect Subsidiaries (as defined) on the issue date of the New Notes
and by each direct and indirect Subsidiary of the Company (excluding
Unrestricted Subsidiaries) formed or acquired thereafter.  The Guaranties will
be  general  unsecured obligations of the Guarantors.  The Guarantors will also
guarantee all obligations  of the Company under the Senior Credit Facility (as
defined), and  each  Guarantor  will  grant  a  security  interest  in  all or
substantially all  its  assets  to  secure its guarantee obligations under the
Senior Credit Facility.   The obligations of each Guarantor under its Guaranty
will be  subordinated  in right of payment to the prior payment in full of all
Guarantor Senior Indebtedness (as defined) of such Guarantor to substantially
the same extent as the Notes are subordinated to all existing and future Senior
Indebtedness of the Company.

Ranking

The  Notes  will  be unsecured and will be subordinated to all
existing  and  future  Senior Indebtedness of the Company.  The Notes will rank
pari  passu with any future senior subordinated indebtedness of the Company and
will  rank  senior  to  all  other  Subordinated  Indebtedness  of the Company.

Covenants          Same  as  Old  Notes

<PAGE>

Exchange Offer and Registration Rights

The  Company will enter into a Registration Rights
Agreement  containing  terms  customary  for  transactions of this type with the
holders  who  exchange  Old  Notes for New Notes, pursuant to which the Company
will either offer to exchange, pursuant to an effective registration statement,
an  equal  principal amount of notes having terms substantially identical to the
New  Notes except for the transfer restrictions (the "Exchange Notes") or cause
the  New  Notes  to  be  registered  under  the Securities Act and, if any such
registration  statement  is  not  filed and declared effective or such exchange
offer  is  not  consummated,  in each case within certain customary time limits,
then  additional  interest (in addition to the interest otherwise due on the New
Notes)  will  be  paid by the Company in cash or deferred (in the same manner as
interest  otherwise due is paid in cash or deferred) to each holder of New Notes
on  account  of  the first 90-day period immediately following the occurrence of
each  such  default  in  an  amount equal to $0.05 per week per $1,000 principal
amount  of  New  Notes,  increasing  by  an additional $0.05 per week per $1,000
principal  amount  of  New  Notes  for  each subsequent 90-day period until such
default  is  cured,  up  to a maximum amount of additional interest of $0.50 per
week  per  $1,000  principal amount of New Notes.  Such additional interest will
cease  accruing  on  the  New Notes when the default in filing such registration
statement  or  con-summating  such  exchange  offer  has  been  cured.

Transfer Restrictions; Absence of  a Public Market for the New Notes

The New Notes will not be registered under the Securities Act and will be
subject to restrictions  on  transferability  and  resale.  If issued, the
Exchange Notes generally  will be freely transferable, but there can be no
assurance as to the development  or  liquidity  of any market for the Exchange
Notes.  The Exchange Notes  are  expected  to  be  eligible  for  trading  in
the PORTAL market.  The Company  does  not intend to apply for listing of the
New Notes or the Exchange Notes on any national securities exchange or for their
quotation through the National  Association  of  Securities  Dealers  Automated
Quotation  System.
<PAGE>

Observation  Rights

The holders of the New Notes shall be entitled to name
one  person  as  an  observer  to the Company's Board of Directors, who shall be
entitled to  receive notice of and participate in all meetings of the Company's
Board  of Directors  but  who  shall  not  have  any  voting  rights

Consent  Fee

20 basis points per $1,000 principal amount of Old Notes as to
which Consents  to  the  Pro-posed  Amendments  are  duly given, payable at the
closing of  the  Exchange  Offer

Expenses

All fees and expenses of the professionals to the Holders of Old
Notes to be paid at closing of restructuring, if not sooner paid.

<PAGE>

Certain  Definitions

"Credit Agreement Amendment Condition" shall mean the
execution and delivery of that certain Second Amendment and Waiver to the Credit
Agreement,  dated  as of January 28, 1998, as amended, supplemented or otherwise
modified  from time to time thereafter, by and between the Company, as Borrower,
the  several  banks  and  other financial institutions or entities from time to
time  parties  thereto, Chase Securities, Inc. as advisor and arranger, Canadian
Imperial  Bank of Commerce, New York Agency, as documentation agent, and Bank of
Texas,  National Association, as administrative agent, which shall be in a form
reasonably  acceptable  to  the  Holders  of  Old  Notes  and  their  counsel.

     "Investment  Condition"  shall  mean  an  equity investment of $10 million,
which  shall  be in a form reasonably acceptable to the Holders of Old Notes and
their  counsel,  from  certain  entities  related to Reliant Partners, L.P. and
Reliant  Partners  II, L.P.,  the current controlling stockholders of Reliant's
parent,  RBPI  Holding  Corporation    (the "Stockholders"), pursuant to which
investment the Stockholders will acquire from the Company newly issued shares of
common  stock  in  such  amount that, after giving effect to such investment the
Stockholders will own substantially all of the common stock of the Company to be
then outstanding other than the common stock to be issued to management, if any.
The  obligation  of  the  Stockholders  to  make  the equity investment will be
conditioned  upon  the  satisfaction  of  the  Tender  Condition,  the  Consent
Condition,  the  Credit  Agreement  Amendment  Condition,  and  the  General
Conditions.

     All  other  capitalized  terms  used but not defined herein shall have the
meanings  given  to  them  in  the  Old  Indenture.

<PAGE>
     EXHIBIT  A

     General  Conditions
     -------------------

     For  purposes  of  the  Exchange  Offer, the "General Conditions" shall be
deemed to have been satisfied unless any of the following conditions shall occur
on or after the date the Exchange Offer is commenced and prior to the acceptance
for  exchange  of  any  Old  Notes  tendered  pursuant  to  the Exchange Offer:

     (a) there  shall  have  occurred  (i)  any  general  suspension  of,  or
limitation on prices for, trading in securities in the United States securities
or financial markets, (ii) a material impairment in the trading market for debt
securities, (iii) a declaration of a banking moratorium or any suspension of
payments in respect of banks in the United States (whether or not mandatory),
(iv) any limitation (whether or not mandatory) by any governmental authority
on, or other event having a reasonable likelihood of affecting, the extension
of credit  by  banks  or other lending institutions in the United States, (v) a
commencement of  a  war,  armed  hostilities or other national or international
crisis involving the United States or (vi) any significant adverse change in the
United States securities or financial markets generally or in the case of any
of the foregoing existing on the date hereof, a material acceleration or
worsening thereof;

     (b) there exists an order, statute, rule, regulation, executive order,
stay, decree, judgment  or  injunction that shall have been enacted, entered,
issued, promulgated,  enforced  or  deemed  applicable  by  any  court  or
governmental, regulatory  or administrative agency or instrumentality that, in
the reasonable judgment of the Company, would or would be reason-ably likely
to prohibit,  prevent  or materially restrict or delay consummation of the
Exchange Offer or the Solicitation or that is, or is reasonably likely to be,
materially adverse  to  the  business,  operations,  properties, conditions
(financial or  otherwise), assets, liabilities or prospects of the Company or
its subsidiaries;

     (c) there  shall  have  been  instituted  or  be  pending any action or
proceeding before or by any court or governmental, regulatory or administrative
agency or instrumentality, or by any other person, which challenges the making
of the Exchange Offer or the Solicitation or the Proposed Amendments or is
reasonably likely to directly or indirectly prohibit, prevent, restrict or
delay the consummation of the Exchange Offer or the Solicitation or the
Proposed Amendments or otherwise adversely affect in any material manner the
Exchange Offer, the Solicitation or the Proposed Amendments; or

     (d) the Trustee under the Old Indenture shall have objected in any respect
to, or taken any action that would be reasonably likely to materially and
adversely affect the consummation of the Exchange Offer or the Solicitation
or the  Company's  ability  to  effect the Proposed Amendments, or shall have
taken any action  that  challenges  the  validity  or  effectiveness  of the
procedures used by the Company in soliciting the Consents (including the form
thereof) or  in  the  making of the Exchange Offer or the acceptance of the Old
Notes or the Consents or the issuance of New Notes in exchange for Old Notes.EMPLOYMENT AGREEMENT
                              --------------------

         THIS AGREEMENT is made and entered into as of the 23 day of March, 1999
between EVERCEL, INC., a Delaware corporation (the "Company"), and ROBERT L.
KANODE, an individual with a current mailing address at 67 Lincoln Lane,
Ridgefield, Connecticut 06877, (the "the Employee"). Unless the context
otherwise requires, the term "Company", shall include the Company and each of
its subsidiaries.

                                W I T N E S E T H

         WHEREAS, the Company desires to employ the Employee as its President
and Chief Executive Officer and the Employee desires to be employed in such
capacities in accordance with the terms and conditions set forth herein;

         NOW, THEREFORE, in consideration of the covenants, conditions,
undertakings and premises contained herein, the sufficiency which is hereby
acknowledged, the Company and the Employee agree follows:

                                    ARTICLE 1
                                    ---------

                              EMPLOYMENT AND DUTIES
                              ---------------------

1.1      EMPLOYMENT; DUTIES
Subject to the terms and conditions set forth herein, commencing April 19, 1999
(the "Commencement Date") the Company agrees to employ the Employee and the
Employee agrees to be employed as President and Chief Executive Officer of the
Company. In such position, the Employee shall perform such duties as are or may
be assigned to the Employee by the Board of Directors of the Company (the "Board
of Directors") from time to time. In connection therewith, the Employee shall
report to and be subject to the supervision of the Executive Committee of the
Board of Directors.

1.2      FULL TIME
The Employee shall devote his full working time, attention, energies, skills and
best efforts exclusively to the performance of his duties hereunder. The
Employee shall not during the term of this Agreement engage in any other
business activity whether or not such activity is pursued for gain, profit or
other pecuniary advantage, except that the Employee, on his own time, (a) may
manage his own investments, and those of his immediate family, and (b) may serve
as a member of the board of directors of other corporations subject to the
restrictions set forth in Section 5.1, so long as such activity (as described in
either clause (a) or (b) above), does not, in the reasonable judgment of the
Company's Board of Directors, adversely affect the performance of his duties
hereunder.

1.3      BOARD MEMBERSHIP
The Employee, effective upon the Commencement Date, shall become a member of the
Board of Directors and its Executive Committee. Thereafter, for so long as the
Employee is serving as Chief Executive Officer of the Company, the Company will
nominate the Employee for re-election as a management nominee of the Board of
Directors and use its reasonable best efforts to cause the Employee to be so
re-elected and, if so elected, to appoint the Employee as a member of the
Executive Committee of the Board of Directors. If at any time the Employee
ceases to serve as President and Chief Executive Officer of the Company, if the
Board of Directors so requests, the Employee shall immediately tender his
resignation from the Board of Directors and shall automatically be deemed to
have so resigned whether or not such resignation is tendered.

                                    ARTICLE 2
                                    ---------
2.1      TERM
The term of the Employee's employment by the Company hereunder shall commence on
the Commencement Date and, except as otherwise provided in this Agreement with
respect to earlier termination, shall continue until terminated by either party
pursuant to Article 7.

                                    ARTICLE 3
                                    ---------
                                  COMPENSATION
                                  ------------
3.1      BASE SALARY
For all service to be rendered by the Employee under this Agreement, including
services as an officer, director and member of any committee, and such other
duties as the Board of Directors or the Executive Committee may assign to him in
accordance with Section 1.1 hereof, the Company agrees to pay the Employee a
base salary of $250,000 per annum. The Employee's base salary shall be subject
to periodic review and adjustment by the Board of Directors in its sole
discretion,provided that the base salary may not be reduced below $250,000 per

                                       41
<PAGE>

year. The base salary shall be payable at such times as is customary for
employees of the Company and in accordance with the normal payroll practices of
the Company.

3.2      INCENTIVE COMPENSATION
The Employee shall be a participant in the Company's incentive compensation plan
generally made available to executive officers as it may be in effect and
revised from time to time. Employee's target bonus under such plan will be forty
percent (40%) of his base salary (prorata for part of the fiscal year). The
Employee understands and agrees that the implementation of an incentive
compensation plan for the Employee and other executive officers will be subject
to the review and approval of the Compensation Committee of the Board of
Directors.

3.3      EXPENSES
         (a)      GENERAL. In addition to base salary and incentive
                  compensation, the Company shall reimburse the Employee for all
                  reasonable and necessary business expenses actually incurred
                  by him in the performance of his duties, including, without
                  limitation, expenses for travel, meals, entertainment and
                  other miscellaneous business expenses, in accordance with the
                  Company's policies and practices as may be in effect from time
                  to time.
         (b)      RELOCATION. It is understood that no relocation by Employee is
                  required or offered.
         (c)      SIGNING BONUS. To assist employee in covering expenses
                  relating to his employment (e.g., an automobile), the Company
                  will provide employee with a one-time payment of $20,000, half
                  payable on his first day of employment at the Company and half
                  30 days later.

                                    ARTICLE 4
                                    ---------
                                COMPANY BENEFITS
                                ----------------
4.1      VACATION
The Employee shall be entitled to receive four weeks of paid vacation per
calendar year (pro rated for any partial year), which shall be taken at such
time or times as will not unreasonably hinder or interfere with the Company's
business or operations.

4.2      SEVERANCE BENEFIT
If during the Employee's employment pursuant to this Agreement, the Employee
ceases to be employed by the Company as a result of the Company's termination of
the Employee without cause pursuant to Section 7.4 (which shall not include any
termination that is otherwise within Article 6) or the Employee's termination of
his employment for good reason pursuant to Section 7.1, the Company shall pay
the Employee as a severance benefit, (a) his then base salary plus (b) an amount
equal to the Employee's bonus from the Company, if any, for the immediately
preceding year. This severance benefit shall be payable by the Company through
(i) the continuation of the Employee's base salary for a period of one year and
(ii) the payment of the balance in four equal quarterly installments, with the
first such payment due three months after the termination and the final payment
due one year after the termination. The severance obligation set forth in this
Section 4.2 shall be in lieu of and not in addition to any other severance
benefits made available to other employees of the Company.

4.3      STOCK OPTIONS
Effective on the execution of this Agreement, the Company shall issue to the
Employee an option to purchase 100,000 shares of the Company's Common Stock with
an exercise price equal to $6.00, pursuant to the Company's standard form of
Option Agreement, subject to the following provisions. The option shall vest
over a four year period at 25% per year (25,000 shares) on each anniversary date
of the Commencement Date; provided however, if the Employee's employment
hereunder is terminated without cause by the Company or for good reason by the
Employee prior to the first anniversary date of the Commencement Date, the
options to purchase the first 25,000 shares of the Company's Common Stock will
automatically vest. The options will also fully vest upon a change of control of
the Company.

4.4      OTHER BENEFIT PLANS
The Employee shall further be entitled to participate in and receive benefits
under any retirement, life insurance, accident, disability, health and dental
insurance, profit sharing, or similar plans generally made available to its
employees.

4.5      INDEMNIFICATION
The Company agrees to defend and shall indemnify and hold the Employee harmless
to the fullest extent permitted by law from any and all liability, costs, and
expenses which may be assessed against the Employee by reason of the performance
of his responsibilities and duties under the terms of this Agreement, provided
such liability does not result from willful misconduct or gross negligence of
the Employee.

                                       42
<PAGE>

                                    ARTICLE 5
                                    ---------
                                  RESTRICTIONS
                                  ------------
5.1      NON-COMPETITION
         (a) So long as the Employee is employed by the Company, serving as a
Director or is receiving payments hereunder (whether in connection with the
Employee's employment or as a result of the termination of the Employee's
employment hereunder) and for a period of two years thereafter (the
"Noncompetition Period"), the Employee shall not, directly or indirectly,
whether as owner, partner, shareholder, director, consultant, agent, employee,
guarantor, surety or otherwise, or through any person, consult with or in any
way aid or assist any competitor of the Company or engage or attempt to engage
in any employment, consulting or other activity which directly or indirectly
competes with the Business of the Company. For purposes of this Agreement, the
term "employment" shall include the performance of services by Employee as an
employee, consultant, agent, independent contractor or otherwise and the term
"Business" shall mean the research, development, manufacture, sale or
distribution of fuel cells, batteries or related products and any other business
engaged in, planned or under development by the Company with respect to which
the Employee has had access to Company confidential information during the
Noncompetition Period. The Employee acknowledges that his participation in the
conduct of any such Business alone or with any person other than the Company
will materially impair the Business and prospects of the Company.

         (b) In addition to and without limiting the foregoing, during the
Noncompetition Period, Employee shall not knowingly do, attempt to or assist any
other person in doing or attempting to do any of the following: (i) hire any
director, officer, employee, or agent of the Company (a "Company Employee") or
encourage any such person to terminate such relationship with the Company, as
the case may be (for purposes hereof, the Employee shall be deemed to have so
encouraged a Company Employee to terminate such relationship with the Company if
the Employee hires or otherwise assists any person in hiring any such Company
Employee within six months after the Company Employee terminates his or her
relationship with the Company), (ii) encourage any customer, client, supplier or
other business relationship of the Company to terminate or alter such
relationship, whether contractual or otherwise, to the disadvantage of the
Company; (iii) encourage any prospective customer or supplier not to enter into
a business relationship with the Company; (iv) impair or attempt to impair any
relationship, contractual or otherwise, written or oral, between the Company and
any customer, supplier or other business relationship of the Company; or (v)
sell or offer to sell or assist in or in connection with the sale to any
customer or prospective customer of the Company any products of the type sold or
rendered by the Company.

         (c) Nothing in this Agreement shall preclude Employee from making
passive investments of not more than 2% of a class of securities of any business
enterprise registered under the Securities Exchange Act of 1934.

5.2      INTELLECTUAL PROPERTY
Upon execution of this Agreement, the Employee shall execute the Evercel, Inc.
Agreement for Assignment, Confidentiality and Nonsolicitation, which agreement
is hereby incorporated herein by reference.

5.3      INJUNCTIVE RELIEF
The Employee acknowledges that the restrictions contained in this Article are
reasonable in view of the nature of the business in which the Company is engaged
and his position with the Company which will provide him with extensive
knowledge of the business.

The Company and the Employee mutually agree that the Employee's obligations
under this Article are of a special and unique character which gives them a
peculiar value, and the Company cannot be reasonably or adequately be
compensated in damages in an action at law in the event the Employee breaches
such obligations. The Employee therefore expressly agrees that, in addition to
any other rights or remedies which the Company may possess, the Company shall be
entitled to injunctive and other equitable relief to prevent a breach of this
Article by the Employee, including a temporary restraining order or temporary
injunction from any court of competent jurisdiction restraining any threatened
or actual violation, and each party hereby consents to the entry of such order
and injunctive relief and waives the making of a bond as a condition for
obtaining such relief. Such rights shall be cumulative and in addition to any
other legal or equitable rights and remedies the Company may have.

5.4      SURVIVAL ENFORCEABILITY
It is expressly agreed by the parties hereto that the provisions of this Article
shall survive the termination of this Agreement. If any one or more of the
provisions contained in this Article shall for any reason in any jurisdiction be
held to be excessively broad as to the time, duration, geographical scope,
activity or subject, it shall be construed with respect to such jurisdiction, by
limiting or reducing it, so as to be enforceable to the extent compatible with
the applicable law of such jurisdiction as it shall then appear.

                                       43
<PAGE>

                                    ARTICLE 6
                                    ---------
                                DEATH; DISABILITY
                                -----------------
6.1      DEATH
If the Employee dies while employed under this Agreement, this Agreement shall
terminate immediately. The Company will pay to the Employee's estate his base
salary under Section 3.1 through the last day of the calendar month in which he
dies, plus any incentive compensation awarded to the Employee under the
Incentive Compensation Plan, but not yet paid, and such death benefits as may be
provided pursuant to Section 4.4.

6.2      DISABILITY
If the Employee fails to perform his duties under this Agreement due to
"Disability", as defined below, the Company may terminate this Agreement upon 30
days written notice to him. In that event, the Company shall pay the Employee
his base salary under Section 3.1 through the date of termination; PROVIDED,
HOWEVER, that to the extent the Employee is receiving disability benefits
pursuant to the Company's disability insurance policy, the amount of such
benefits shall be credited against the Employee's base salary during the period
prior to the date of termination. In addition, upon any termination based upon
Disability, the Company shall pay to the Employee any incentive compensation
awarded to the Employee under the Incentive Compensation Plan but not yet paid.
The term "Disability" shall mean the inability of the Employee to perform for
the Company the duties specified in Section 1.1 by reason of any medically
determinable physical or mental impairment for (i) a period of four consecutive
months, (ii) for shorter periods aggregating five months in any 12-month period
or (iii) if the Board of Directors determines that it is probable that the
Disability will continue for a length of time so as to constitute a Disability
under clauses (i) or (ii) above. The determination of whether the Employee is
Disabled shall be made by the Board of Directors on the basis of written medical
evidence reasonably satisfactory to it. Notwithstanding anything to the contrary
in the foregoing, in the event of a termination of the Employee pursuant to
clause (iii), the Company will pay the Employee a minimum of four months base
salary following such termination; PROVIDED, HOWEVER, that to the extent the
Employee is receiving disability benefits pursuant to the Company's disability
insurance policy, the amount of such benefits shall be credited against the
Employee's base salary.

                                    ARTICLE 7
                                    ---------
                                   TERMINATION
                                   -----------
7.1      TERMINATION BY THE EMPLOYEE FOR GOOD REASON
The Employee may terminate this Agreement for good reason upon ninety (90) days
written notice to the Company setting forth with specificity the grounds for
termination upon the occurrence of any of the following: (a) the failure of the
Company to observe or comply with any of its material obligations under this
Agreement, if such failure has not been cured within 30 days after written
notice thereof has been given by the Employee to the Company; (b) the
dissolution of the Company; or (c) any merger in which the Company is not the
surviving corporation and in which the stockholders of the Company own less than
50% of the voting securities of the merged entity upon the effectiveness of the
merger, or any consolidation, sale of substantially all of the assets of the
Company or change of control of the Company, provided the Employee has not
approved the transaction by voting for it either as a director or shareholder.
For purposes of clause (a) a material breach by the Company shall include a
material change in the reporting responsibilities of the Employee such that the
Employee is no longer effectively serving as the President and Chief Executive
Officer of the Company, a material reduction in benefits or other perquisites of
office such that the Employee is not receiving the benefits set forth herein or
the benefits and other perquisites generally granted for executive positions
within the Company. For purposes of clause (c) above, a "change of control"
shall be presumed to have occurred if within any 12-month period a single person
or entity, or related group of persons or entities, acquires 50% or more of the
outstanding voting stock of the Company. In the event of a termination for good
reason under this Section, the Company shall pay the Employee (i) his base
salary as then in effect under Section 3.1 through the date of termination, (ii)
any incentive compensation awarded to the Employee under the Incentive
Compensation Plan, but not yet paid, and (iii) the severance benefit set forth
in Section 4.2.

7.2      TERMINATION BY THE COMPANY FOR CAUSE
The Company may terminate this Agreement for cause in the manner set forth
below. For purposes of this Section, "cause" shall mean (a) a material breach by
the Employee of the terms of this Agreement, including without limitation
failure by the Employee to perform a material portion of his duties hereunder
(not otherwise excused by the disability of the Employee) (b) criminal
misconduct or unethical conduct, whether or not in relation to the Company's
affairs or business, which reflects adversely upon Employee's honesty or
integrity in the performance of his duties as an employee of the Company, or
which otherwise is materially detrimental to the interests of the Company; (c)
if the Employee is found guilty or pleads nolo contendere to the commission of a
crime classified as a felony under any Federal, state or local law; and (d)
commission by the Employee of an act of gross incompetence in the course of his
employment hereunder. The term "cause" as used in the preceding sentence does
not include the Employee's erroneous judgment or judgments of a technical,
scientific, financial, legal and/or environmental nature which were, although
erroneous, nevertheless reasonable at the time and under the circumstances in
which they were made. In the event of termination under this Section, the
Company shall pay to the Employee his base salary under Section 3.1 through the
date of termination stated in the notice plus any incentive compensation awarded

                                       44
<PAGE>

to the Employee under the Incentive Compensation Plan but not yet paid, and the
Employee shall, if so requested by the Board of Directors, perform his duties
under Article 1 through the date of termination stated in the notice.

7.3      TERMINATION BY THE COMPANY FOR CAUSE-PROCEDURE
NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH HEREIN, THE EMPLOYEE SHALL
NOT BE DEEMED TO HAVE BEEN TERMINATED FOR CAUSE WITHOUT (I) DELIVERY TO THE
EMPLOYEE OF WRITTEN NOTICE SETTING FORTH THE REASONS FOR THE COMPANY'S INTENTION
TO TERMINATE FOR CAUSE, (II) AN OPPORTUNITY FOR THE EMPLOYEE, TOGETHER WITH HIS
COUNSEL, TO BE HEARD BEFORE THE BOARD OF DIRECTORS AND (III) DELIVERY TO THE
EMPLOYEE OF A NOTICE OF TERMINATION FROM THE BOARD OF DIRECTORS STATING THAT A
MAJORITY OF THE MEMBERS OF THE BOARD HAVE DETERMINED IN GOOD FAITH THAT THE
EMPLOYEE WAS GUILTY OF CONDUCT THAT SUPPORTS THE TERMINATION FOR CAUSE,
SPECIFYING THE CONDUCT WHICH GAVE RISE TO SUCH TERMINATION.

7.4      TERMINATION BY THE COMPANY OR THE EMPLOYEE WITHOUT CAUSE
Either the Company or the Employee may terminate this Agreement for reasons
other than as set forth above in Section 7.1 or Section 7.2 and which are not
otherwise within Article 6 upon 30 days written notice by the Company or 90 days
written notice by the Employee. Upon such termination, the Company shall pay the
Employee his base salary under Section 3.1 through the date of termination
(provided, however, that the Employee continues to be available to perform the
services required under Section 1.1 through the date of termination), plus any
incentive compensation awarded to the Employee under the Incentive Compensation
Plan, but not yet paid, and any accrued vacation. In addition, upon the
Company's termination of the Employee without cause, the Company shall be
required to pay the Employee the severance benefit set forth in Section 4.2.
Nothing herein shall prohibit the Company from relieving the Employee of any or
all of his duties hereunder pending the expiration of the 30-day notice period.

7.5 TERMINATION OF DUTIES
Notwithstanding anything to the contrary set forth herein, at any time on or
after delivery of written notice to the Employee, the Company may relieve the
Employee of all of his duties and responsibilities hereunder and may relieve the
Employee of authority to act on behalf of, or legally bind, the Company;
provided, however, that any such action by the Company shall not relieve the
Company of its obligation to pay to the Employee all compensation and benefits
otherwise provided for in this Agreement.

                                    ARTICLE 8
                                    ---------
                                  MISCELLANEOUS
                                  -------------

8.1      NO CONFLICTING AGREEMENTS.
The Employee represents and warrants to the Company, that the Employee is not
under any obligation to any person or entity which is inconsistent with or in
conflict with any of the terms of this Agreement or which would prevent, limit
or impair in any way the Employee's performance of all the terms of this
Agreement and the Employee agrees not to enter into any agreement, either
written or oral, in conflict herewith.

8.2      ENTIRE AGREEMENT
This Agreement contains the entire understanding and agreement between the
Company and the Employee and cannot be amended, modified, or supplemented in any
respect except by subsequent written agreement entered into by both parties.

8.3      SUCCESSORS OF THE COMPANY
This Agreement shall inure to the benefit of and be binding upon the Company,
its successors and assigns, including, without limitation, any person, firm,
corporation or other entity which may acquire all or substantially all of the
Company's assets and business, or with or into which the Company may be
consolidated or merged, and this provision shall apply in the event of any
subsequent merger, consolidation or transfer. In every respect, this Agreement
shall inure to the benefit of and be binding upon the Employee, his heirs,
executors and personal representatives and, being personal in nature, shall not
be assignable by the Employee.

8.4      EFFECT OF WAIVER
The waiver by either party of a breach of any provision of this Agreement shall
not operate as or be construed as a waiver of any subsequent breach.

8.5      NOTICES
Any notice, request, demand or other communication in connection with this
Agreement must be in writing and shall be deemed to have been given and received
three days after a certified or registered letter containing such notice,
properly addressed, with postage prepaid, is deposited in the United States
mail; and, if given otherwise than by registered or certified mail, it shall not
be deemed to have been given until actually delivered to and received by the
party to whom it is addressed.

                                       45
<PAGE>

Notice to the Company shall be given at its principal mailing address, which at
the time of execution of this Agreement is 3 Great Pasture Road, Danbury,
Connecticut, 06813, Attention: Chairman of the Board of Directors, or at such
other address as it may designate.
Notice to the Employee shall be given at his home address, which at the time of
execution of this Agreement is the address set forth in the heading of this
Agreement, or at such other address as he may designate.

8.6      COUNTERPARTS
This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same instrument.

8.7      SEVERABILITY
If, in any jurisdiction, any provision of this Agreement or its application to
any party or circumstances is restricted, prohibited or unenforceable, such
provision shall, as to such jurisdiction, be ineffective only to the extent of
such restriction, prohibition or unenforceability without invalidating the
remaining provisions hereof and without affecting the validity or enforceability
of such provision in any other jurisdiction or its application to other parties
or circumstances.

8.8      SURVIVAL
Each of the terms and provision of this Agreement which are expressly or
impliedly so intended shall survive the termination of this Agreement.

8.9      APPLICABLE LAW
This Agreement shall be governed by and construed according to the laws of the
State of Connecticut.

                         IN WITNESS WHEREOF, the parties have executed this
                    Agreement as of the day and year first stated above.

                              EVERCEL, INC.

                              By: /s/ JERRY LEITMAN
                                  ---------------------
                                  Jerry Leitman
                                  Chairman of the Board

                                  /s/ ROBERT L. KANODE
                                  ---------------------
                                  Robert L. Kanode

                                       46

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