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                                                                   Exhibit 10.11


                  SECOND AMENDMENT TO LEASE AGREEMENT BETWEEN
                      BRAKER PHASE III, LTD. AS LANDLORD,
              AND MAGNETIC BEARING TECHNOLOGIES, INC., AS TENANT

                To be attached to and form a part of Lease made the
                12th day of March, 1996 (which together with any
                amendments, modifications and extensions thereof, is
                hereinafter called the Lease), between Landlord and
                Tenant, covering a total of 8,100 square feet and
                located at 11525 Stonehollow Drive, Suite 135, Austin,
                Texas, 78758 known as Braker Center III, Building 1.

         WITNESSETH that:

   1.    The Commencement Date shall be May 6, 1996, and shall expire Sixty (60)
         months thereafter on Maya 31, 2001.

   2.    Effective September 1, 1996 and expiring May 31, 2001, the monthly base
         rental rate shall be structured as follows:


               =======================================================
                    Lease Period                   Base Total Rental
                                                    Rate Per Month
               -------------------------------------------------------

               -------------------------------------------------------
                 9/1/96 thru 5/31/97                   $6,025.10
               -------------------------------------------------------
                 6/1/97 thru 5/31/98                   $6,227.60
               -------------------------------------------------------
                 6/1/98 thru 5/31/99                   $6,430.10
               -------------------------------------------------------
                 6/1/99 thru 5/31/00                   $6,632.60
               -------------------------------------------------------
                 6/1/00 thru 5/31/01                   $6,835.10
               =======================================================

   3.    The Lease expressly refers to Tenant as "Magnetic Bearing Technologies,
         Inc. The Tenant's name has been changed to "Active Power, Inc.. The
         Lease and all related documents are hereby amended such that all
         references to "Tenant" or "Magnetic Bearing Technologies, Inc." will
         translate to mean "Active Power, Inc.".

   4.    Except as herein and hereby modified and amended the Agreement of Lease
         shall remain in full force and effect and all the terms, provisions,
         covenants and conditions thereof are hereby ratified and confirmed.

             DATED AS OF THE 1st DAY OF September, 1996.
                             ---        ---------    --

   WITNESS:                         BRAKER PHASE III, LTD.:
                                    By:  2800 Industrial, Inc., General Partner


/s/                                 /s/ Richard E. Anderson
---------------------------------   ---------------------------------
                                    By:     Richard E. Anderson
                                    Title:  Vice President
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WITNESS:                            ACTIVE POWER, INC.

/s/                                 /s/ Joseph F. Pinkerton
---------------------------------   ---------------------------------
                                    By:     Joseph F. Pinkerton
                                    Title:  President

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