<PAGE>

                                                                   EXHIBIT 10.19

                 SEVENTH AMENDMENT TO LEASE AGREEMENT BETWEEN
               METROPOLITAN LIFE INSURANCE COMPANY, AS LANDLORD
                                      AND
                         ACTIVE POWER, INC., AS TENANT

          To be attached to and form a part of Lease made the 12/th/ day of
          March 1996 (which together with any amendments, modifications and
          extensions thereof, is hereinafter called the Lease), between Landlord
          and Tenant.

     THIS SEVENTH AMENDMENT TO LEASE AGREEMENT (this "Seventh Amendment) made
                                                      -----------------
and entered into as of the _________ day of _______________, 2000 by and between
METROPOLITAN LIFE INSURANCE COMPANY ("Landlord") and ACTIVE POWER, INC.,
                                      --------
("Tenant").

                             W I T N E S S E T H:

     Landlord and Tenant entered into that certain Lease Agreement dated March
12, 1996 (the "Lease" for space in Stonehollow 1), amended by the First
               -----
Amendment dated June 24, 1996 increasing the square footage to 8,100 square feet
in Stonehollow 1, Suite 135, amended by the Second Amendment dated September 4,
1996 notifying Landlord of a name change from "Magnetic Bearing Technologies" to
"Active Power, Inc." amended by the Third Amendment dated October 10, 1997
expanding into STONEHOLLOW 2 for approximately an additional 15,080 square feet
of space located at 11525 Stonehollow Drive, Suite 255, Austin, Texas for a
total of 23,180 square feet of space, amended by the Fourth Amendment dated
August 20, 1999 extending the term in Stonehollow 2, Suite 255 for an additional
twelve months, amended by the Fifth Amendment dated February 9, 2000 extending
the lease term for Suite 135 and Suite 255 to expire on March 31, 2003 and
expansion into Suites 120, 110 and 130 to expire March 31, 2003, and amended by
the Sixth Amendment where Tenant expanded into Suite 155 for an additional 4,050
square feet.

     Landlord and Tenant now desire to further amend the Lease Agreement and
Amendments in certain respects as more fully hereinafter set forth. Landlord and
Tenant agree as follows:

     Commencement Date for the "expansion space" (Suite 155) is confirmed to be
December 15, 2000.

Except as specifically amended hereby, the Lease shall remain unaffected hereby
and in full force and effect as originally written.

          DATED AS OF THE __________ DAY OF _________________, 2001.

        WITNESS:                      LANDLORD:
                                      Metropolitan Life Insurance Company, a New
                                      York Corporation; on behalf of a
                                      commingled separate account
        ___________________________
                                      BY: SSR Realty Advisors, Inc., a Delaware
                                      corporation, as Investment Advisor to
                                      Metropolitan Life Insurance Company

                                      By:___________________________________
                                      Name:     ____________________________
                                      Title:    ____________________________
                                      Address:  ____________________________
                                                ____________________________
                                                ____________________________

          DATED AS OF THE __________ DAY OF _________________, 2001.

        WITNESS:                      TENANT:
                                      ACTIVE POWER, INC.

        ___________________________
                                      By:___________________________________
                                      Name:     ____________________________
                                      Title:    ____________________________
                                      Address:  ____________________________
                                                    ____________________________