<PAGE>   1
                                                                    EXHIBIT 10.2



                              EMPLOYMENT AGREEMENT

     This Amended Agreement made and entered into as of the 12 day of February,
2001 amends the prior Agreement dated November 7, 2000 (the "Effective Date")
by and between Elektryon (the "Company"), and Michael E. Holmstrom (the
"Employee"),

                                WITNESSETH THAT:

     WHEREAS, the parties desire to enter into this Agreement pertaining to the
employment of the Employee by the Company;

     NOW THEREFORE, in consideration of the mutual covenants and agreements set
forth below, it is hereby covenanted and agreed by the Company and the Employee
as follows:

          1. EMPLOYMENT PERIOD. Subject to the terms and conditions of this
Agreement, the Company hereby agrees to employ the Employee during the
Employment Period (as defined below) and the Employee hereby agrees to remain in
the employ of the Company and to provide services during the Employment Period
in accordance with this Agreement. The "Employment Period" shall be the period
beginning on the Effective Date and ending on the third anniversary thereof. The
parties agree that, on or about the second anniversary of the Effective Date, if
the Employee is then employed by the Company, they will negotiate the terms and
conditions of the two years of employment following the expiration of the Term,
assuming that both parties mutually desire to continue the employment
relationship after the expiration of the Term and mutually desire to enter into
an employment agreement (or an amendment to this Agreement) to evidence such
relationship.

          1.    DUTIES. The Employee agrees that, during the Employment Period
while he is employed by the Company, he will devote his full business time,
energies and talents to serving as the Chief Financial Officer/President of the
Company and providing services for the Company at the direction of the Executive
Board of the Company. The Employee shall have such duties and responsibilities
as may be assigned to him from time to time by the Board, and as long as these
duties are consistent with duties of Chief Financial Officers/Presidents
similarly situated - he shall perform all duties assigned to him faithfully and
efficiently, subject to the direction of the Executive Board, and shall have
such authorities and powers as are inherent to the undertakings applicable to
his position and necessary to carry out the responsibilities and duties required
of him hereunder.

          2.    COMPENSATION. Subject to the terms and conditions of this
Agreement, during the Employment Period while the Employee is employed by the
Company, the Company shall compensate him for his services as follows:

          (a)  The Employee shall receive, for each 12-consecutive month period
               beginning on the Effective Date and each anniversary thereof, an
               annual salary of $250,000 (the "Salary"), which Salary shall be
               payable in accordance with the Company's normal payroll
               practices.

          (b)  The Employee shall receive bonus payments from the Company as
               follows:

                    (i)  upon completion of the Company's audited financial
                         statements for the year 1999 by the accounting firm of
                         Arthur Anderson, the Employee shall be entitled to a
                         bonus of $100,000, payable no later than 5 business
                         days after such financial statements are completed by
                         Arthur Andersen; and

                    (ii) upon consummation of an initial public offering of the
                         Company's common stock (as "IPO"), the Employee shall
                         be entitled to a bonus of $100,000, payable no later
                         than 5 business days after the date of the final
                         prospectus relating to the IPO.

               All bonus payments referred to in 2(b) will be payable
immediately upon any change of control of the Company. Change of control is
defined as any or all of the following: an asset sale of substantial assets of
the Company, a substantial change in the Executive Board of the Company, a
material equity infusion greater than $10 Million into the Company during the
Employment period.

          (c)  The Employee shall be provided with bonus, incentive, pension,
               welfare and other fringe benefits the same extent and on the same
               terms and conditions as those benefits are provided by the
<PAGE>   2
            Company from time to time to its similarly situated senior
            executive employees.

            (d)   The Employee shall be reimbursed by the Company, on terms and
                  conditions that are substantially similar to those that apply
                  to other similarly situated senior executive employees of the
                  Company, for reasonable out-of-pocket expenses for
                  entertainment, travel, meals, lodging and similar items which
                  are actually incurred by the Employee in the promotion of the
                  Company's business.

            (e)   The Board of Directors of the Company (or a committee thereof
                  shall grant, as of the Effective Date or as soon as
                  practicable thereafter, stock options to purchase 300,000
                  shares of the Company's common stock, at an exercise price of
                  $2.00 per share, which options shall vest as follows (i)
                  one-half as of the Effective Date, and (ii) one-half as of the
                  90 day anniversary of the Effective Date. (iii) All options
                  will vest upon any change of control of the Company as defined
                  in 2 above. The options shall be exercisable for a period of
                  60 months from the date on which they vest regardless of
                  Employee's employment status at that time.

            (f)   To compensate the Employee for relocation and moving expenses,
                  the Employee shall be entitled to the following payments from
                  the Company:

                  (i)     The Employee shall be entitled to a cash payment of
                          $60,000, payable as soon as practicable following the
                          Effective Date.

                  (ii)    The Employee shall be entitled to a cash payment of
                          $60,000, payable as soon as practicable following the
                          90th day anniversary of his Employment which is
                          February 5, 2001.

                  (iii)   The Employee shall be entitled to reimbursement for
                          the reasonable expenses incurred by the Employee (A)
                          with respect to the sale of the Employee's principal
                          residence in Anchorage, Alaska, including commissions,
                          broker's and attorney's fees incurred by the Employee
                          with respect to such sale, (B) with respect to moving
                          the Employee's household goods and possessions from
                          Anchorage, Alaska to the Company's administrative
                          headquarters, when established, and (C) for temporary
                          lodging expenses for himself and his family in Odessa,
                          Texas or at the location of the Company's
                          administrative headquarters, for the period beginning
                          on the Effective Date and continuing up to the six
                          month anniversary of the date on which the location of
                          the Company's administrative headquarters is
                          determined. Any reimbursements under this subparagraph
                          (iii) shall be paid within a reasonable time following
                          the presentation by the Employee of appropriate
                          documentation of the expenses to the Company.

      3. Rights and Payments Upon Termination. The Employee's right to benefits
and payments, if any, for periods after the date on which his employment with
the Company terminates for any reason (his "Termination Date") shall be
determined in accordance with this Section 4:

            (a)   Minimum Payments:  If the Employee's Termination Date occurs
                  during the Employment Period for any reason, the Employee
                  shall be entitled to the following payments, in addition to
                  any payments or benefits to which the Employee may be entitled
                  under the following provisions of this Section 3 (other than
                  this paragraph (a)).

                  (i)     his earned but unpaid Salary for the period ending on
                          his Termination Date but in any event no less than one
                          year's annual salary; and

                  (ii)    his accrued but unpaid vacation pay for the period
                          ending with his Termination Date, as determined in
                          accordance with the Company's policy as in effect from
                          time to time.

                  Payments to be made to the Employee pursuant to this paragraph
                  4(e) shall be made in a lump sum as soon as practicable after
                  the Employee's Termination Date. Except as may be otherwise
                  expressly provided to the contrary in this Agreement, nothing
                  in this Agreement shall be construed as requiring the Employee
                  to be treated as employed by the Company following his
                  Termination




                                       1



<PAGE>   3
          Date for purposes of any employee benefit plan or arrangement in which
          he may participate at such time.

     (b)  Termination by the Company for Reasons Other Than Cause. If the
          Employee's Termination Date occurs during the Employment Period and
          is a result of the Employee's termination of employment by the
          Company for reasons other than Cause (as defined below) and is not
          on account of Employee's death, disability, voluntary resignation,
          termination by the Company for Cause or the mutual agreement of the
          parties, then the Employee shall receive from the Company for the
          period commencing on his Termination Date and ending on the earliest
          of (i) last day of the Employment Period, (ii) the date of the
          Employee's death, or (iii) the first anniversary of the Termination
          Date, the Salary in effect as of his Termination Date, payable in
          accordance with the provisions of paragraph 3(a). For purposes of
          this Agreement, the term "Cause" shall mean (i) the continuous
          failure by the Employee to substantially perform his duties under
          this Agreement for 30 days following written notice by a majority of
          the non-employee Board members, (ii) the willful, and in bad faith,
          failure by the Employee to cease engaging in conduct which is
          demonstrably and materially injurious to the Company or its
          affiliates, monetarily or otherwise for 30 days following written
          notice by a majority of the non-employee Board members, (iii) conduct
          by the Employee that involves theft, fraud or dishonesty, or (iv) the
          Employee's violation of the provisions of Sections 6 or 7 hereof.

     (c)  Termination for Any Other Reason. If the Employee's Termination Date
          occurs during the Employment Period for any reason other than
          provided in paragraph (b) above, then the Employee shall have no
          right to payments or benefits under this Agreement (and the Company
          shall have no obligation to make any such future payments or provide
          any such future benefits) for periods after the Employee's
          Termination Date.

     4.   Set-Off. The Company shall be entitled to set off against the amounts
payable to the Employee under this Agreement, any amounts owed to the Company or
its affiliates by the Employee.

     5.   Confidential Information. The Employee agrees that:

     (a)  Except as may be required by the lawful order of a court or agency of
          competent jurisdiction, or except to the extent that the Employee has
          express authorization from the Company, he shall keep secret and
          confidential indefinitely all non-public information (including,
          without limitation, information regarding litigation and pending
          litigation) concerning the Company and its affiliates which was
          acquired by or disclosed to the Employee during the course of his
          employment (or prior affiliation) with the Company and not to
          disclose the same, either directly or indirectly, to any other
          person, firm, or business entity, or to use it in any way.

     (b)  Upon his Termination Date or at the Company's earlier request, he
          will promptly return to the Company any and all records, documents,
          physical property, information, computer disks or other materials
          relating to the business of the Company and its affiliates obtained
          by him during his course of employment (or prior affiliation) with
          the Company.

     (c)  Nothing in the foregoing provisions of this Section 6 shall be
          construed so as to prevent the Employee from using, in connection
          with his employment for himself or an employer other than the Company
          or any of its affiliates, knowledge which was acquired by him during
          the course of his employment with the Company and its affiliates, and
          which is generally known to persons of his experience in other
          companies in the same industry.

     6.   Noncompetition. While the Employee is employed by the Company, and for
a period of one year after the Employee's Termination Date, the Employee agrees
that he will not directly or indirectly engage in, assist, perform services for,
establish or open, or have any equity interest (other than ownership of 5% or
less of the outstanding stock of any corporation listed on the New York or
American Stock Exchange or included in the National Association of Securities
Dealers Automated Quotation System) in any person, firm, corporation, or
business entity (whether as an employee, officer, director, agent, security
holder, creditor, consultant, or otherwise) that engages in any activity in the
world in which the Company is conducting business activities (and in which the
Company conducted business activities during the Employee's employment with the
Company) which are the same as, similar to, or competitive with the business of
distributed generation of electricity. Nothing in this Section 7 shall be
construed as limiting the Employee's duty of loyalty to the Company while he is
employed by the Company, or any other duty be may otherwise have to the Company
while he is employed by the Company.


                                        -2-

<PAGE>   4
     7.   Equitable Remedies. The Employee acknowledges that the Company would
be irreparably injured by a violation of Sections 6 or 7 and agrees that the
Company, in addition to other remedies available to it for such breach or
threatened breach, shall be entitled to a preliminary injunction, temporary
restraining order, other equivalent relief, restraining the Employee from any
actual or threatened breach of Sections 6 or 7 without any bond or other
security being required.

     8.   Notices. Notices provided for in this Agreement shall be in writing
and shall be deemed to have been duly received when delivered in person or set
by facsimile transmission, on the first business day after it is sent by air
express courier service or on the second business day following deposit in the
United States registered or certified mail, return receipt requested, postage
prepaid and addressed, in the case of the Company to the following address:

          ___________________________
          ___________________________
          ___________________________
          Attention: ___________________________

     or to the Employee:

          Michael E. Holmstrom
          12410 Caragana Circle
          Anchorage, AK 99515

or such other address as either party may have furnished to the other in writing
in accordance herewith, except that a notice of change of address shall be
effective only upon actual receipt.

     9.   Withholding. All compensation payable under this Agreement shall be
subject to customary withholding taxes and other employment taxes as required
with respect to compensation paid by a corporation to an employee and the
amount of compensation payable hereunder shall be reduced appropriately to
reflect the amount of any required withholding. The Company shall have no
obligation to make any payments to the Employee or to make the Employee whole
for the amount of any required taxes.

     10.  Successors. This Agreement shall be binding on, and inure to the
benefit of, the Company and its successors and assigns and any person
acquiring, whether by merger, reorganization, consolidation, by purchase of
assets or otherwise, all or substantially all of the assets of the Company.

     11.  Nonalienation. The interests of the Employee under this Agreement are
not subject to the claims of his creditors, other than the Company, and may not
otherwise be voluntarily or involuntarily assigned, alienated or encumbered.

     12.  Waiver of Breach. The waiver by either the Company or the Employee of
a breach of any provision of this Agreement shall not operate as or be deemed a
waiver of any subsequent breach by either the Company or the Employee.
Continuation of payments hereunder by the Company following a breach by the
Employee of any provision of this Agreement shall not preclude the Company from
thereafter terminating said payments based upon the same violation.

     13.  Severability. It is mutually agreed and understood by the parties
that should any of the agreements and covenants contained herein be determined
by any court of competent jurisdiction to be invalid by virtue of being vague
or unreasonable, including but not limited to the provisions of Sections 6 and
7, then the parties hereto consent that this Agreement shall be amended
retroactive to the date of its execution to include the terms and conditions
said court deems to be reasonable and in conformity with the original intent of
the parties and the parties hereto consent that under such circumstances, said
court shall have the power and authority to determine what is reasonable and
in conformity with the original intent of the parties to the extent that said
covenants and/or agreements are enforceable.

     14.  Applicable Law. This Agreement shall be construed in accordance with
the laws of the State of Nevada.


                                      _3_


<PAGE>   5
     15.  Amendment. This Agreement may be amended or cancelled by mutual
agreement of the parties in writing without the consent of any other person.

     16.  Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute one and the same
instrument. Each counterpart may consist of a copy hereof containing multiple
signature pages, each signed by one party hereto, but together signed by both
of the parties hereto.

     17.  Other Agreements. This Agreement constitutes the sole and complete
Agreement between the Company and the Employee and supersedes all other
agreements, both oral and written, between the Company and the Employees with
respect to the matters contained herein including, without limitation any
severance agreements, consulting agreements or other arrangements between the
parties. No verbal or other statements, inducements, or representations have
been made to or relied upon by the Employee. The parties have read and
understand this Agreement.

  Dated as of the date set forth above.

                                                            ELEKTRYON

                                        By:
                                            ------------------------------------

                                        Its:
                                             -----------------------------------


                                        /s/ MICHAEL E. HOLMSTROM
                                        ----------------------------------------
                                                  Michael E. Holmstrom


                                        /s/ John Cavalier               2/15/01
                                        ----------------------------------------

                                        /s/ Wendell H. Admir, Jr.       2/15/01
                                        ----------------------------------------

                                        /s/ Curtis Olson                2/27/01
                                        ----------------------------------------


                                      _4_