**Exhibit      10.2(b)**

**ECHELON      CORPORATION**

**NONQUALIFIED      STOCK OPTION GRANT AGREEMENT - Early Exercise**

|  **Maximum Number of              Shares**            |               |                                                                                                      |
|------------------------------------------------------------|--------------------|-----------------------------------------------------------------------------------------------------------|
|  **Purchasable with this              Option**:  |  [NUMBER]     |   **Exercise              Price per Share****:    **US              $______ |
|                                                       |               |                                                                                                      |
|  **Vesting Commencement              Date**:          |   [DATE] |                                                                                                      |
|                                                       |               |                                                                                                      |
|  **Scheduled Vesting              Dates:**            |               |  **Number of              Shares**                                                                   |
|  [DATE]                                          |               | [NUMBER]                                                                                                  |
|  [DATE]                                               |               | [NUMBER]                                                                                                  |
|  [DATE]                                               |               | [NUMBER]                                                                                                  |
|  [DATE]                                               |               | [NUMBER]                                                                                                  |

**Expiration      Date:**
** **

*IMPORTANT:*

|  OPTIONEE:                      |   |  ECHELON CORPORATION |
|--------------------------------------|--------|---------------------------|
|                                 |   |                      |
|                                 |   |                 |
|  Signature                      |   |  By                  |
|                                 |   |                      |
|                                 |   |                      |
|  Print Name                     |   |   Title         |
|                                 |   |                      |
|  Residence              Address |   |                      |
|                                 |   |                      |
|                                 |   |                      |

----

** **

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**EXHIBIT        1**

**ECHELON        CORPORATION**

**1997        STOCK PLAN **

**RESTRICTED        STOCK PURCHASE AGREEMENT**

**11**

** **

**ECHELON      CORPORATION**

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**EXHIBIT        2 **

**ASSIGNMENT      SEPARATE FROM CERTIFICATE**

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**EXHIBIT      3**

**JOINT      ESCROW INSTRUCTIONS**

** **

**ECHELON      CORPORATION**

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**EXHIBIT      4**

**ELECTION      UNDER SECTION 83(b)**

**OF      THE INTERNAL REVENUE CODE OF 1986**

| NAME:                              | TAXPAYER: | SPOUSE: |
|------------------------------------|-----------|---------|
| ADDRESS:                           |      |    |
| IDENTIFICATION                NO.: | TAXPAYER: | SPOUSE: |
| TAXABLE                YEAR:       |      |    |