Exhibit 10.2

AMENDMENT NO. 1
TO
CONSULTING AGREEMENT
 
October 31, 2007
 
This Amendment No. 1 (this “Amendment”) to that certain Consulting Agreement
effective as of August 31, 2007 (the “Agreement”) is made as of October 31, 2007
between Axion Power International, Inc., a Delaware corporation (the “Company”),
and Andrew Carr Conway, Jr., an individual (the “Consultant”), and for the
limited purposes of Section 1 hereof, Conway Enterprises, LLC (“CE” and together
with the Company and the Consultant, the “Parties”). Capitalized terms used and
not defined herein shall have the meanings set forth in the Agreement.
 
WHEREAS, the Parties previously entered into the Agreement by which the
Consultant agreed to provide certain financial services to the Company and act
as the Company’s Chief Financial Officer; and
 
WHEREAS, the Parties, among other things, desire to amend certain provisions of
the Agreement to clarify the vesting schedule of the stock options granted to
the Consultant by the Company pursuant to the Agreement; and
 
WHEREAS, Section 12 of the Agreement provides that provisions of the Agreement
may be amended or modified pursuant to a signed, written agreement by the
Company and the Consultant.
 
NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which hereby are acknowledged, the
Parties hereby agree as follows:
 
1. Consultant. The Parties agree and acknowledge that the parties to the
Agreement are the Company and the Consultant (as those terms are defined in this
Amendment). The Parties further agree that the Preamble of the Agreement is
hereby amended to change the name of the Consultant to “Andrew Carr Conway, Jr.,
an individual” and all references to the term “Consultant” in the Agreement
shall refer to “Andrew Carr Conway, Jr., an individual.”
 
2. Amendment. Section 4 of the Agreement is hereby amended and restated in its
entirety to read as follows:
 
“In consideration of your agreement to devote the time to accomplish the
requirements listed in this contract, we will grant you an option to purchase
80,000 shares of our common stock at an exercise price of $4.50 per share. The
option shall vest 30,000 shares upon execution of this contract and then at the
rate of 10,000 shares per month commencing on October 1, 2007 and continuing for
the term of this contract. If your consulting relationship with us is terminated
for any reason at any time during the first month, all vested options will be
forfeit. Subject to the foregoing minimum length of service condition, vested
options may be exercised at any time or from time to time, in whole or in part,
for a period of two years. The option agreement attached hereto as “Exhibit F”
shall be executed currently with this agreement.”
 
 
 

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3. Counterparts. This Amendment may be executed in any number of counterparts,
and each such counterpart shall be deemed to be an original instrument, but all
such counterparts together shall constitute one and the same instrument.
 
4. Governing Law. This Amendment, pursuant to Section 14 of the Agreement, shall
be governed and construed as to its validity, interpretation and effect by the
laws of the Commonwealth of Pennsylvania notwithstanding the choice of law rules
of Pennsylvania or any other jurisdiction.
 
[Signature Page Follows]
 
 
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IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be duly
executed as of the day and year first above written.

        COMPANY:       AXION POWER INTERNATIONAL, INC.      
   
   
    By:   /s/ Thomas G. Granville  

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Thomas G. Granville
Chief Executive Officer

        CONSULTANT:      
   
   
       /s/ Andrew Carr Conway, Jr.  

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ANDREW CARR CONWAY, JR.

 

FOR THE LIMITED PURPOSES OF SECTION 1
 
AGREED TO AND ACKNOWLEDGED:
 
CONWAY ENTERPRISES, LLC

          By:  /s/ Andrew Carr Conway, Jr.        

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Andrew Carr Conway, Jr.
Sole Member
   

 
 
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