Document:

Exhibit
      10.2

    AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT

    

    This
      Amended and Restated Employment Agreement (the "Agreement"),
      entered into as of February 14, 2008, is by and between Beacon Power
      Corporation, a Delaware corporation (the "Company"),
      and
      James M. Spiezio (the "Executive")

    

    WHEREAS,
      the Executive is an employee of the Company, and the Company desires to retain
      his services and he wishes to continue his employment by the Company;

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties agree as follows:

    

    Section
      1.
      Term.
      The
      Company shall employ the Executive for a term commencing on the above date
      and
      continuing until March 31, 2009, unless renewed or terminated pursuant to
      Section 9. The period of the Executive's employment hereunder is referred to
      as
      the "Employment
      Period."

    

    Section
      2.
      Duties.
      The
      Executive shall serve the Company as Vice President and Chief Financial Officer
      and shall have duties and responsibilities consistent with such position. Such
      duties and responsibilities shall include, but not be limited to, overall
      financial management of the Company. The Executive will report to the Chief
      Executive Officer of the Company. The Executive will generally perform his
      services at the Company's principal offices, which are currently located in
      Tyngsboro, Massachusetts; provided,
      however,
      that
      the Executive may be required to travel from time to time in connection with
      Company business.

    

    Section
      3.
      Full
      Time; Best Efforts.
      During
      the Employment Period the Executive shall use his best efforts to promote the
      interests of the Company and shall devote his full business time and efforts
      to
      its business and affairs. The Executive shall not engage in any business
      activity which could reasonably be expected to interfere with the performance
      of
      the Executive's duties, services and responsibilities hereunder.

    

    Section
      4.
      Compensation.
      The
      Executive shall be entitled to compensation as follows: 

    

    (a) Base
      Salary.
      During
      the Employment Period, the Executive will receive a salary at an annual gross
      rate of $210,813 (as the same may be adjusted from time to time, the
      "Base
      Salary"),
      which
      shall be payable in accordance with the Company’s regular payroll practices
      applicable to senior executive officers. The Executive's Base Salary shall
      be
      reviewed by the Board of Directors of the Company (the "Board")
      at
      least annually and may be increased (but not decreased) in the Board's
      discretion, depending upon the performance of the Executive and of the
      Company.

    

    (b) Annual
      Bonus.
      The
      Executive shall be eligible to receive an annual bonus based on the achievement
      of individual and Company performance objectives determined annually by the
      Compensation Committee of the Board in consultation with the Executive. The
      amount of the annual bonus will be targeted at an amount equal to thirty-five
      percent (35%) of Base Salary per year. The Executive and the Compensation
      Committee of the Board will set performance goals and targets for the annual
      bonus prior to March 31, 2008. The Compensation Committee shall evaluate such
      performance goals and targets and such annual bonus, if any, shall be paid
      on
      March 1, 2009.

    

    (c) Long
      term incentive compensation.
      Effective on the effective date of this Agreement, the Company has entered
      into
      a 2008 long term incentive compensation arrangement with Executive, consisting
      of a non-qualified stock option and restricted stock units. 

    

    (d) Withholding.
      The
      Company may withhold from compensation payable to the Executive all applicable
      federal, state, and local withholding taxes as required by law.

    

    Section
      5.
      Benefits.
      

    

    (a) Generally.
      The
      Executive will be entitled to such fringe benefits as are generally available
      to
      the Company's executive officers, including group health and dental insurance
      coverage, group long and short-term disability insurance coverage, and 401(k)
      plan and stock plan participation. He will also be entitled to a fringe benefit
      consisting of reimbursement of the cost to the Executive (above any applicable
      insurance coverage) of an executive physical every other year (not to exceed
      $1,000 for each such physical). In the event that any insurance policy is paying
      disability benefits to Executive, and if the amount of the Executive's monthly
      base salary that would be paid in the absence of such disability is higher
      than
      the monthly insurance payments, then the Company shall pay Executive an amount
      per month equal to such excess, for so long as the Executive is employed with
      the Company. No such difference shall be payable after the Executive's
      employment expires or is terminated.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Paid
      Vacation.
      In
      addition to U.S. statutory holidays, the Executive will be entitled to 20
      business days of paid vacation per year, accruing at the rate of 1.66 days
      per
      month. A maximum of ten unused vacation days in any year may be carried over
      and
      used in the next year, subject to such policies as the Company may adopt from
      time to time with respect thereto. If by December 31, each year, the Executive
      has accrued in excess of ten unused vacation days, the Company shall pay
      (consistent with existing Company policy) the Executive a cash amount (based
      on
      the Executive's then current year's base salary) equal to such excess up to
      a
      maximum not to exceed ten vacation days.

    

    (c) Life
      Insurance.
      The
      Company will provide the Executive with group term life insurance in an amount
      equal to no less than two times his Base Salary plus $1,000,000.

    

    Section
      6.
      Expense
      Reimbursement.
      The
      Executive will be entitled to reimbursement of all reasonable and necessary
      business expenses incurred by the Executive in the ordinary course of business
      on behalf of the Company, subject to presentation of appropriate documentation
      and compliance with policies established by the Board.

    

    Section
      7.
      Non-Disclosure
      and Assignment of Invention Agreement; Indemnification
      Agreement.
      The
      parties acknowledge and agree that the Executive has executed and delivered
      to
      the Company the Company's standard form of Invention and Non-Disclosure
      Agreement and that the Company and the Executive have executed and delivered
      an
      Indemnification Agreement in form and substance satisfactory to both parties
      (the "Indemnification
      Agreement").

    

    Section
      8.
      Non-Competition
      and Non-Solicitation Covenants.

    

    (a) Non-competition.
      The
      Executive agrees that during the Employment Period and for the longer
      of (i)
      12 months thereafter, and (ii) the period during which the Company is providing
      payment to the Executive under Section 9(c) of this Agreement, he will not
      own,
      manage, operate, control, be employed by, provide services as an independent
      contractor or consultant to, own any stock or other investment in or debt of,
      or
      otherwise be connected in any manner with the ownership, management, operation
      or control of, any business or enterprise that at the time of termination,
      competes with the Company or conducts business in a field in respect of which
      the Board is making plans to enter. 

    

    (b) Non-solicitation.
      The
      Executive agrees that during the Employment Period and for two year thereafter,
      he will not attempt to persuade or induce any employee of the Company to
      terminate his or her employment with the Company for any reason.

    

    (c) Acknowledgments
      by Executive.
      The
      Executive acknowledges that the covenants set forth in this Section 8 are
      reasonable in scope and are no greater than is necessary to protect the
      Company's legitimate business interests. The Executive further acknowledges
      that
      any breach by him of the covenants set forth in this Section 8 would irreparably
      injure the Company, and that money damages would not adequately compensate
      the
      Company for the injuries that it would suffer. The parties accordingly agree
      that in the event of any breach or threatened breach by the Executive of any
      of
      the covenants set forth in this Section 8, the Company may obtain, from any
      court of competent jurisdiction, both preliminary and permanent injunctive
      relief in order to prevent the occurrence or continuation of such injuries,
      without being required to prove actual damages or post any bond or other
      security. Nothing in this Agreement shall prohibit the Company from pursuing
      any
      other legal or equitable remedy that may be available to it in the event of
      the
      Executive's breach of any of the covenants set forth in this
      Agreement.

     

    Section
      9.
      Termination.

    

    (a) Employment
      Termination.
      The
      employment of the Executive pursuant to this Agreement shall terminate upon
      the
      occurrence of any of the following:

    

    
      
        
        

      

      
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    (i)
      At
      the election of the Company, for Cause, immediately upon written notice by
      the
      Company to the Executive. For purposes of this Agreement, "Cause"
      shall
      be deemed to exist upon a reasonable good faith finding by the Board that the
      Executive has:

    

    (1)
      committed an act constituting fraud, embezzlement or other felony, determined
      in
      the reasonable opinion of the Board acting in its sole discretion,
      or

    

    (2)
      materially breached his obligations under this Agreement or the Inventions
      and
      Nondisclosure Agreement, and failed to cure same within 30 days after written
      notice thereof is given to him by the Company, or

    

    (3)
      materially breached the Company's material policies, including but not limited
      to the Company's policies regarding insider trading and sexual harassment,
      or

    

    (4)
      engaged in willful misconduct and failed to cure same within 30 days after
      written notice thereof is given to him by the Company. 

    

    (ii)
      At
      the election of the Company, without Cause, upon at least 90 days written notice
      by the Company to the Executive.

    

    (iii)
      The
      death of the Executive, or (in the discretion of the Company) the Disability
      of
      the Executive. For purposes of this Agreement, "Disability"
      shall
      be considered to exist:

    

    (1)
      if
      the Executive fails to perform his normal duties for at least 60 days (not
      counting days taken for vacation), whether or not consecutive, during any
      180-day period, or

    

    (2)
      if
      the Executive's insurance company has confirmed that any disability insurance
      benefits are going to be paid by reason of Executive's incapacitation, or

    

    (3)
      if
      the Board, acting in its sole discretion but after reasonable consultation
      with
      Executive, concludes that the Executive suffers from a degree of physical or
      mental incapacitation as a result of illness or accident which makes it
      reasonably unlikely that the Executive will be able to perform his normal duties
      for a period of 60 days. In reaching this conclusion, the Board may consult
      third parties, including, but not limited to, other employees, physicians,
      psychiatrists, and counselors. 

    

    (iv)
      At
      the election of the Executive, for any reason, upon at least 90 days prior
      written notice to the Company.

    

    (v)
      At
      the election of the Executive for Good Reason, provided
      that the
      Executive shall have given written notice to the Company within 30 days after
      he
      becomes aware of the occurrence of any event of Good Reason specifying such
      event, and such event shall be continued for a period of 30 days following
      such
      notice. For purposes of this Agreement, "Good
      Reason"
      means
      any of the following events:

    

    (1)
      a
      material diminution in the duties, responsibilities, position or job title
      of
      the Executive without the Executive's written consent. For example, it will
      be
      considered such a diminution if in the event of a business combination involving
      the Company by means of a reorganization, merger, consolidation,
      recapitalization, or asset sale (other than one described below in subparagraph
      4), the Executive remains as Vice President and CFO of the Company itself but
      is
      not appointed as the Vice President and CFO of the other party to such
      combination by the 180th
      day
      after closing (or, the Executive and the Company have not reached some other,
      mutually acceptable arrangement by then). 

    

    (2)
      a
      material breach by the Company of its obligations under this Agreement or the
      Indemnification Agreement, or

    

    (3)
      a
      change in the primary location where the Executive is expected to perform his
      services hereunder to a location that is more than 50 miles away from Tyngsboro,
      Massachusetts, or

    

    
      
        
        

      

      
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    (4)
      a
      Sale of the Business (as defined below) For purposes of this Agreement, a
      "Sale
      of the Business"
      means
      (A) the acquisition by a person, group, or party of 50% or more of the
      outstanding capital stock of the Company in a single transaction or series
      of
      contractually related transactions, (B) a change of a majority of the members
      of
      the Board (other than by resignation or by any replacement of such resigned
      Board member(s)) when the change of the various directors occurs at
      substantially the same time, without the approval or consent of the members
      of
      the Board before such change, (C) the acquisition of the Company by means of
      a
      reorganization, merger, consolidation, recapitalization, or asset sale, unless
      the owners of the capital stock of the Company before such transaction own
      immediately after such transaction more than 50% of the capital stock of the
      acquiring or succeeding entity in substantially the same proportions (without
      giving effect to any funds that may be newly invested in the Company or such
      acquiring or succeeding entity at about the same time), or (D) the approval
      of a
      liquidation or dissolution of the Company.

    

    (b)
      Effect
      of Termination.

    

    (i)
      Termination
      Pursuant to Section 9(a)(i) relating to termination for cause or Section
      9(a)(iv) relating to termination at the election of Executive for any
      reason.
      In the
      event the Executive's employment is terminated pursuant to Section 9(a)(i)
      or
      Section 9(a)(iv), the Company shall pay to the Executive his accrued Base Salary
      through the last date of his employment hereunder (the "Termination
      Date")
      and
      shall continue to provide to the Executive the benefits described in Section
      5
      (the "Benefits")
      through the Termination Date, but shall have no further responsibility for
      any
      compensation or benefits to the Executive for any time period subsequent to
      the
      Termination Date.

    

    (ii)
      Termination
      pursuant to Section 9(a)(ii) relating to termination without
      cause.
      In the
      event the Executive's employment is terminated pursuant to Section 9(a)(ii),
      the
      Company shall:

    

    (1)
      Pay
      to the Executive a cash amount equal to his then monthly Base Salary multiplied
      by twelve.

    

    (2)
      Continue to provide the benefits described in Sections 5(a) and 5(c) to the
      Executive until the first anniversary of the Termination Date. 

    

    (3)
      Within five business days after the Termination Date, pay the Executive an
      amount equal to his bonus which was paid (or which has been determined but
      not
      yet paid) with respect to the prior fiscal year multiplied by a fraction, the
      numerator of which is the number of full fiscal months that have elapsed in
      the
      then current fiscal year prior to the Termination Date, and the denominator
      of
      which is 12. In no event shall payment under this Section 9(b)(ii)(3) exceed
      80%
      of the Executive's base salary for the prior year. If the bonus with respect
      to
      the prior fiscal year has not yet been determined by the date that the parties
      must calculate the amount to be paid under this paragraph, then the parties
      shall calculate this portion of the severance by reference to the bonus paid
      with respect to the year next preceding the prior fiscal year. 

    

    (iii)
      Termination
      pursuant to Section 9(a)(v) relating to termination at the election of Executive
      for Good Reason.
      In the
      event the Executive's employment is terminated pursuant to Section 9(a)(v),
      the
      Company shall:

    

    (1)
      Pay
      to the Executive a cash amount equal to his then monthly Base Salary multiplied
      by twelve.

    

    (2)
      Continue to provide the benefits described in Sections 5(a) and 5(c) to the
      Executive until the first anniversary of the Termination Date. 

    

    (3)
      Within five business days after the Termination Date, pay the Executive an
      amount equal to his bonus which was paid (or which has been determined but
      not
      yet paid) with respect to the prior fiscal year multiplied by a fraction, the
      numerator of which is the number of full fiscal months that have elapsed in
      the
      then current fiscal year prior to the Termination Date, and the denominator
      of
      which is 12. In no event, shall payment under this Section 9(b)(iii)(3) exceed
      80% of the Executive's base salary for the prior year. If the bonus with respect
      to the prior fiscal year has not yet been determined by the date that the
      parties must calculate the amount to be paid under this paragraph, then the
      parties shall calculate this portion of the severance by reference to the bonus
      paid with respect to the year next preceding the prior fiscal year.

    

    
      
        
        

      

      
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    (iv)
      Termination
      pursuant to Section 9(a)(iii) relating to the death or disability of the
      Executive.
      In the
      event the Executive's employment is terminated pursuant to Section 9(a)(iii),
      the Company shall: 

    

    (1)
      Continue to pay to Executive or his estate, as the case may be, an amount equal
      to his then current Base Salary for the three-month period following the
      Termination Date. 

    

    (2)
      Continue for the 12-month period following the Termination Date all health
      and
      dental insurance benefits the Executive was entitled to at the Termination
      Date.

     

    (v)
      Golden
      Parachute Payment Excise Tax Protection.
      In the
      event that the excise tax imposed by Section 4999 of the Internal Revenue Code
      of 1986, as amended (the "Code"),
      (or
      any successor penalty or excise tax subsequently imposed by law) applies to
      any
      payments or benefits specifically paid or conferred only under this Agreement
      (which shall not include any payments or benefits paid or conferred under the
      long-term incentive compensation arrangement or the performance based long-term
      incentive compensation arrangement referenced in Section 4(c)) (the
“Excise
      Tax”),
      an
      additional amount shall be paid by the Company to the Executive equal
      to
      the amount of such Excise Tax (the “Gross
      Up Payment”);
      provided, however in no event shall the aggregate amount payable by the Company
      to Executive for any excise tax imposed by Section 4999 of the Code pursuant
      to
      this Agreement and all other agreements between the Company and Executive exceed
      $250,000. The Company and its advisers shall make the determination of the
      amount of the Gross Up Payment. To the extent that the amount of such Gross
      Up
      Payment exceeds the amount of Excise Tax actually paid by Executive, Executive
      shall promptly pay to the Company such excess amount.

    

    (c) Continuation/Nonrenewal.
      Unless
      this Agreement has been otherwise terminated before the end of the scheduled
      Employment Period as described in Section 1, the Company and the Executive
      agree
      to discuss in good faith the possible continuation of the Executive’s
      employment, commencing six months prior to such date. If the Company fails
      to
      offer the Executive a new employment agreement, with at least equivalent
      material terms to this Agreement, by such date and in fact the Executive ceases
      to be an employee of the Company (other than for Cause) following such date
      the
      Company shall pay the Executive a monthly amount for twelve months equal to
      his
      last prevailing monthly Base Salary, plus one-twelfth of the Executive’s bonus
      for the most recent fiscal year of the Company, in accordance with the Company’s
      regular payroll practices, less applicable withholdings required by law. If
      the
      bonus with respect to the most recent fiscal year has not yet been determined
      by
      the date that the parties must calculate the amount to be paid under this
      paragraph with respect to bonus, then the parties shall calculate this portion
      of the severance by reference to the bonus paid with respect to the year next
      preceding such most recent fiscal year.

    

    Section
      10.
      No
      Conflicting Agreements.
      The
      Executive represents and warrants to the Company that he is not a party to
      or
      bound by any confidentiality, non-competition, non-solicitation or other
      agreement or restriction that could conflict with or be violated by the
      performance of his duties for the Company. 

    

    Section
      11.
      No
      Disparagement.
      Each
      party agrees that at all times following the termination of the Executive's
      employment hereunder, such party shall not make or cause to be made, directly
      or
      indirectly, any statements to any third party that disparage or denigrate the
      other party or, in the case of the Company, any of its current or former
      directors, officers or employees, unless required by law.

    

    Section
      12.
      Enforceability,
      etc.
      This
      Agreement shall be interpreted in such a manner as to be effective and valid
      under applicable law, but if any provision hereof shall be prohibited or invalid
      under any such law, such provision shall be ineffective to the extent of such
      prohibition or invalidity, without invalidating or nullifying the remainder
      of
      such provision or any other provisions of this Agreement. If any one or more
      of
      the provisions contained in this Agreement shall for any reason be held to
      be
      excessively broad as to duration, geographical scope, activity, or subject,
      such
      provisions shall be construed by limiting and reducing it so as to be
      enforceable to the maximum extent permitted by applicable law.

    

    Section
      13.
      Notices.
      Any
      notice or other communication given pursuant to this Agreement shall be in
      writing and shall be personally delivered, sent by nationally recognized
      overnight courier or express mail, or mailed by first class certified or
      registered mail, postage prepaid, return receipt requested as
      follows:

    

    
      
        
        

      

      
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              (a)
                If
                to the Executive:
James
                M. Spiezio

               

               

            	
              (b)
                If
                to the Company:
Beacon
                Power Corporation
65
                Middlesex Road
Tyngsboro,
                MA 01879
Attn:
                Compensation Committee and Chief Executive
                Officer

            

    

     

    or
      to
      such other address as a party shall have designated by notice to the other
      party. 

    

    Section
      14.
      Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the Commonwealth of Massachusetts without giving effect to any choice
      or
      conflict of laws provision or rule that would cause the application of the
      domestic substantive laws of any other jurisdiction.

    

    Section
      15.
      Amendments
      and Waivers.
      No
      amendment or waiver of this Agreement or any provision hereof shall be binding
      upon the party against whom enforcement of such amendment or waiver is sought
      unless it is made in writing and signed by or on behalf of such party. The
      waiver by either party of a breach of any provision of this Agreement by the
      other party shall not operate and be construed as a waiver or a continuing
      waiver by that party of the same or any subsequent breach of any provision
      of
      this Agreement by the other party. To the extent that the final regulations
      under Section 409A of the Code require modifications to this Agreement in order
      to avoid that section’s penalty tax, the parties agree to discuss amending this
      Agreement accordingly. Notwithstanding the foregoing, to the extent the Company
      reasonably determines that any portion of the payments or benefits payable
      under
      this Agreement is subject to Section 409A of the Code, such portion of payments
      or benefits payable shall (i) to the extent required by Section 409A of the
      Code, be delayed for six months from the Termination Date or (ii) to the extent
      permitted under subsequent guidance from the Internal Revenue Service, be
      otherwise made to comply with such Section 409A requirements, provided, however,
      that any such action under this subsection (ii) that is more detrimental to
      Executive than that in subsection (i) shall only be made with Executive’s
      consent.

    

    Section
      16.
      Binding
      Effect.
      This
      Agreement shall be binding on and inure to the benefit of the parties hereto
      and
      their respective heirs, executors and administrators, successors and assigns,
      except that it may not be assigned by the Company without the Executive's
      consent, provided that the Company may assign this Agreement to an entity that
      acquires substantially all of the Company's assets by means of an asset sale,
      merger or otherwise, provided further that such entity shall agree in writing
      to
      assume and be bound by this Agreement. This Agreement is personal to the
      Executive and is not assignable by him.

    

    Section
      17.
      Entire
      Agreement.
      This
      Agreement constitutes the final and entire agreement of the parties with respect
      to the matters covered hereby and replaces and supersedes all other agreements
      and understandings relating hereto, other than the RSU (restricted stock unit)
      and option agreements already in place.

    

    Section
      18.
      Pronouns.
      Whenever the context may require, any pronouns used in this Agreement shall
      include the corresponding masculine, feminine or neuter forms, and the singular
      form of nouns and pronouns shall include the plural, and vice
      versa.

    

    Section
      19. Survivability.
      Sections
      6-20 herein
      shall
      survive the termination of this
      Agreement. 

    

    Section
      20.
      Counterparts.
      This
      Agreement may be executed in any number of counterparts, and with counterpart
      signature pages, each of which shall be deemed an original, but all of which
      together shall constitute one and the same instrument.

    

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, this Agreement has been executed as a sealed instrument as
      of
      the date first above written.

    

      
        	
                EXECUTIVE

              	 	
                BEACON
                  POWER CORPORATION

              
	
                 

              	 	
                 

              	 
	
                /s/
                  James M. Spiezio

              	 	 	
                 

              
	
                James
                  M. Spiezio

              	 	
                By:
                  

              	
                /s/
                  F. William Capp

              
	
                 

              	 	Name:
                F.
                William Capp
	
                 

              	 	Title:
                President and Chief Executive
                OfficerUnassociated Document

    Exhibit
      10.3

     

    AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT

    

    This
      Amended and Restated Employment Agreement (the "Agreement"),
      entered into as of February 14, 2008, is by and between Beacon Power
      Corporation, a Delaware corporation (the "Company"),
      and
      Matthew L. Lazarewicz (the "Executive")

    

    WHEREAS,
      the Executive is an employee of the Company, and the Company desires to retain
      his services and he wishes to continue his employment by the Company;

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties agree as follows:

    

    Section
      1.
      Term.
      The
      Company shall employ the Executive for a term commencing on the above date
      and
      continuing until March 31, 2009, unless renewed or terminated pursuant to
      Section 9. The period of the Executive's employment hereunder is referred to
      as
      the "Employment
      Period."

    

    Section
      2.
      Duties.
      The
      Executive shall serve the Company as Vice President and Chief Technical Officer
      and shall have duties and responsibilities consistent with such position. Such
      duties and responsibilities shall include, but not be limited to, management
      of
      the Company's intellectual property and technology. The Executive will report
      to
      the Chief Executive Officer of the Company. The Executive will generally perform
      his services at the Company's principal offices, which are currently located
      in
      Tyngsboro, Massachusetts; provided,
      however,
      that
      the Executive may be required to travel from time to time in connection with
      Company business.

    

    Section
      3.
      Full
      Time; Best Efforts.
      During
      the Employment Period the Executive shall use his best efforts to promote the
      interests of the Company and shall devote his full business time and efforts
      to
      its business and affairs. The Executive shall not engage in any business
      activity which could reasonably be expected to interfere with the performance
      of
      the Executive's duties, services and responsibilities hereunder.

    

    Section
      4.
      Compensation.
      The
      Executive shall be entitled to compensation as follows: 

    

    (a) Base
      Salary.
      During
      the Employment Period, the Executive will receive a salary at an annual gross
      rate of $189,280 (as the same may be adjusted from time to time, the
      "Base
      Salary"),
      which
      shall be payable in accordance with the Company’s regular payroll practices
      applicable to senior executive officers. The Executive's Base Salary shall
      be
      reviewed by the Board of Directors of the Company (the "Board")
      at
      least annually and may be increased (but not decreased) in the Board's
      discretion, depending upon the performance of the Executive and of the
      Company.

    

    (b) Annual
      Bonus.
      The
      Executive shall be eligible to receive an annual bonus based on the achievement
      of individual and Company performance objectives determined annually by the
      Compensation Committee of the Board in consultation with the Executive. The
      amount of the annual bonus will be targeted at an amount equal to thirty-five
      percent (35%) of Base Salary per year. The Executive and the Compensation
      Committee of the Board will set performance goals and targets for the annual
      bonus prior to March 31, 2008. The Compensation Committee shall evaluate such
      performance goals and targets and such annual bonus, if any, shall be paid
      on
      March 1, 2009.

    

    (c) Long
      term incentive compensation.
      Effective on the effective date of this Agreement, the Company has entered
      into
      a 2008 long term incentive compensation arrangement with Executive, consisting
      of a non-qualified stock option and restricted stock units. 

    

    (d) Withholding.
      The
      Company may withhold from compensation payable to the Executive all applicable
      federal, state, and local withholding taxes as required by law.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      5.
      Benefits.
      

    

    (a) Generally.
      The
      Executive will be entitled to such fringe benefits as are generally available
      to
      the Company's executive officers, including group health and dental insurance
      coverage, group long and short-term disability insurance coverage, and 401(k)
      plan and stock plan participation. He will also be entitled to a fringe benefit
      consisting of reimbursement of the cost to the Executive (above any applicable
      insurance coverage) of an executive physical every other year (not to exceed
      $1,000 for each such physical). In the event that any insurance policy is paying
      disability benefits to Executive, and if the amount of the Executive's monthly
      base salary that would be paid in the absence of such disability is higher
      than
      the monthly insurance payments, then the Company shall pay Executive an amount
      per month equal to such excess, for so long as the Executive is employed with
      the Company. No such difference shall be payable after the Executive's
      employment expires or is terminated.

    

    (b) Paid
      Vacation.
      In
      addition to U.S. statutory holidays, the Executive will be entitled to 20
      business days of paid vacation per year, accruing at the rate of 1.66 days
      per
      month. A maximum of ten unused vacation days in any year may be carried over
      and
      used in the next year, subject to such policies as the Company may adopt from
      time to time with respect thereto. If by December 31, each year, the Executive
      has accrued in excess of ten unused vacation days, the Company shall pay
      (consistent with existing Company policy) the Executive a cash amount (based
      on
      the Executive's then current year's base salary) equal to such excess up to
      a
      maximum not to exceed ten vacation days.

    

    (c) Life
      Insurance.
      The
      Company will provide the Executive with group term life insurance in an amount
      equal to no less than two times his Base Salary plus $1,000,000.

    

    Section
      6.
      Expense
      Reimbursement.
      The
      Executive will be entitled to reimbursement of all reasonable and necessary
      business expenses incurred by the Executive in the ordinary course of business
      on behalf of the Company, subject to presentation of appropriate documentation
      and compliance with policies established by the Board.

    

    Section
      7.
      Non-Disclosure
      and Assignment of Invention Agreement; Indemnification
      Agreement.
      The
      parties acknowledge and agree that the Executive has executed and delivered
      to
      the Company the Company's standard form of Invention and Non-Disclosure
      Agreement and that the Company and the Executive have executed and delivered
      an
      Indemnification Agreement in form and substance satisfactory to both parties
      (the "Indemnification
      Agreement").

    

    Section
      8.
      Non-Competition
      and Non-Solicitation Covenants.

    

    (a) Non-competition.
      The
      Executive agrees that during the Employment Period and for the longer
      of (i)
      12 months thereafter, and (ii) the period during which the Company is providing
      payment to the Executive under Section 9(c) of this Agreement, he will not
      own,
      manage, operate, control, be employed by, provide services as an independent
      contractor or consultant to, own any stock or other investment in or debt of,
      or
      otherwise be connected in any manner with the ownership, management, operation
      or control of, any business or enterprise that at the time of termination,
      competes with the Company or conducts business in a field in respect of which
      the Board is making plans to enter. 

    

    (b) Non-solicitation.
      The
      Executive agrees that during the Employment Period and for two year thereafter,
      he will not attempt to persuade or induce any employee of the Company to
      terminate his or her employment with the Company for any reason.

    

    (c) Acknowledgments
      by Executive.
      The
      Executive acknowledges that the covenants set forth in this Section 8 are
      reasonable in scope and are no greater than is necessary to protect the
      Company's legitimate business interests. The Executive further acknowledges
      that
      any breach by him of the covenants set forth in this Section 8 would irreparably
      injure the Company, and that money damages would not adequately compensate
      the
      Company for the injuries that it would suffer. The parties accordingly agree
      that in the event of any breach or threatened breach by the Executive of any
      of
      the covenants set forth in this Section 8, the Company may obtain, from any
      court of competent jurisdiction, both preliminary and permanent injunctive
      relief in order to prevent the occurrence or continuation of such injuries,
      without being required to prove actual damages or post any bond or other
      security. Nothing in this Agreement shall prohibit the Company from pursuing
      any
      other legal or equitable remedy that may be available to it in the event of
      the
      Executive's breach of any of the covenants set forth in this
      Agreement.

     

    
      
        
        

      

      
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    Section
      9.
      Termination.

    

    (a) Employment
      Termination.
      The
      employment of the Executive pursuant to this Agreement shall terminate upon
      the
      occurrence of any of the following:

    

    (i)
      At
      the election of the Company, for Cause, immediately upon written notice by
      the
      Company to the Executive. For purposes of this Agreement, "Cause"
      shall
      be deemed to exist upon a reasonable good faith finding by the Board that the
      Executive has:

    

    (1)
      committed an act constituting fraud, embezzlement or other felony, determined
      in
      the reasonable opinion of the Board acting in its sole discretion,
      or

    

    (2)
      materially breached his obligations under this Agreement or the Inventions
      and
      Nondisclosure Agreement, and failed to cure same within 30 days after written
      notice thereof is given to him by the Company, or

    

    (3)
      materially breached the Company's material policies, including but not limited
      to the Company's policies regarding insider trading and sexual harassment,
      or

    

    (4)
      engaged in willful misconduct and failed to cure same within 30 days after
      written notice thereof is given to him by the Company. 

    

    (ii)
      At
      the election of the Company, without Cause, upon at least 90 days written notice
      by the Company to the Executive.

    

    (iii)
      The
      death of the Executive, or (in the discretion of the Company) the Disability
      of
      the Executive. For purposes of this Agreement, "Disability"
      shall
      be considered to exist:

    

    (1)
      if
      the Executive fails to perform his normal duties for at least 60 days (not
      counting days taken for vacation), whether or not consecutive, during any
      180-day period, or

    

    (2)
      if
      the Executive's insurance company has confirmed that any disability insurance
      benefits are going to be paid by reason of Executive's incapacitation, or

    

    (3)
      if
      the Board, acting in its sole discretion but after reasonable consultation
      with
      Executive, concludes that the Executive suffers from a degree of physical or
      mental incapacitation as a result of illness or accident which makes it
      reasonably unlikely that the Executive will be able to perform his normal duties
      for a period of 60 days. In reaching this conclusion, the Board may consult
      third parties, including, but not limited to, other employees, physicians,
      psychiatrists, and counselors. 

    

    (iv)
      At
      the election of the Executive, for any reason, upon at least 90 days prior
      written notice to the Company.

    

    (v)
      At
      the election of the Executive for Good Reason, provided
      that the
      Executive shall have given written notice to the Company within 30 days after
      he
      becomes aware of the occurrence of any event of Good Reason specifying such
      event, and such event shall be continued for a period of 30 days following
      such
      notice. For purposes of this Agreement, "Good
      Reason"
      means
      any of the following events:

    

    (1)
      a
      material diminution in the duties, responsibilities, position or job title
      of
      the Executive without the Executive's written consent. For example, it will
      be
      considered such a diminution if in the event of a business combination involving
      the Company by means of a reorganization, merger, consolidation,
      recapitalization, or asset sale (other than one described below in subparagraph
      4), the Executive remains as Vice President and CTO of the Company itself but
      is
      not appointed as the Vice President and CTO of the other party to such
      combination by the 180th
      day
      after closing (or, the Executive and the Company have not reached some other,
      mutually acceptable arrangement by then). 

    

    (2)
      a
      material breach by the Company of its obligations under this Agreement or the
      Indemnification Agreement, or

     

    
      
        
        

      

      
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    (3)
      a
      change in the primary location where the Executive is expected to perform his
      services hereunder to a location that is more than 50 miles away from Tyngsboro,
      Massachusetts, or

    

    (4)
      a
      Sale of the Business (as defined below) For purposes of this Agreement, a
      "Sale
      of the Business"
      means
      (A) the acquisition by a person, group, or party of 50% or more of the
      outstanding capital stock of the Company in a single transaction or series
      of
      contractually related transactions, (B) a change of a majority of the members
      of
      the Board (other than by resignation or by any replacement of such resigned
      Board member(s)) when the change of the various directors occurs at
      substantially the same time, without the approval or consent of the members
      of
      the Board before such change, (C) the acquisition of the Company by means of
      a
      reorganization, merger, consolidation, recapitalization, or asset sale, unless
      the owners of the capital stock of the Company before such transaction own
      immediately after such transaction more than 50% of the capital stock of the
      acquiring or succeeding entity in substantially the same proportions (without
      giving effect to any funds that may be newly invested in the Company or such
      acquiring or succeeding entity at about the same time), or (D) the approval
      of a
      liquidation or dissolution of the Company.

    

    (b)
      Effect
      of Termination.

    

    (i)
      Termination
      Pursuant to Section 9(a)(i) relating to termination for cause or Section
      9(a)(iv) relating to termination at the election of Executive for any
      reason.
      In the
      event the Executive's employment is terminated pursuant to Section 9(a)(i)
      or
      Section 9(a)(iv), the Company shall pay to the Executive his accrued Base Salary
      through the last date of his employment hereunder (the "Termination
      Date")
      and
      shall continue to provide to the Executive the benefits described in Section
      5
      (the "Benefits")
      through the Termination Date, but shall have no further responsibility for
      any
      compensation or benefits to the Executive for any time period subsequent to
      the
      Termination Date.

    

    (ii)
      Termination
      pursuant to Section 9(a)(ii) relating to termination without
      cause.
      In the
      event the Executive's employment is terminated pursuant to Section 9(a)(ii),
      the
      Company shall:

    

    (1)
      Pay
      to the Executive a cash amount equal to his then monthly Base Salary multiplied
      by twelve.

    

    (2)
      Continue to provide the benefits described in Sections 5(a) and 5(c) to the
      Executive until the first anniversary of the Termination Date. 

    

    (3)
      Within five business days after the Termination Date, pay the Executive an
      amount equal to his bonus which was paid (or which has been determined but
      not
      yet paid) with respect to the prior fiscal year multiplied by a fraction, the
      numerator of which is the number of full fiscal months that have elapsed in
      the
      then current fiscal year prior to the Termination Date, and the denominator
      of
      which is 12. In no event shall payment under this Section 9(b)(ii)(3) exceed
      80%
      of the Executive's base salary for the prior year. If the bonus with respect
      to
      the prior fiscal year has not yet been determined by the date that the parties
      must calculate the amount to be paid under this paragraph, then the parties
      shall calculate this portion of the severance by reference to the bonus paid
      with respect to the year next preceding the prior fiscal year. 

    

    (iii)
      Termination
      pursuant to Section 9(a)(v) relating to termination at the election of Executive
      for Good Reason.
      In the
      event the Executive's employment is terminated pursuant to Section 9(a)(v),
      the
      Company shall:

    

    (1)
      Pay
      to the Executive a cash amount equal to his then monthly Base Salary multiplied
      by twelve.

    

    (2)
      Continue to provide the benefits described in Sections 5(a) and 5(c) to the
      Executive until the first anniversary of the Termination Date. 

     

    
      
        
        

      

      
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    (3)
      Within five business days after the Termination Date, pay the Executive an
      amount equal to his bonus which was paid (or which has been determined but
      not
      yet paid) with respect to the prior fiscal year multiplied by a fraction, the
      numerator of which is the number of full fiscal months that have elapsed in
      the
      then current fiscal year prior to the Termination Date, and the denominator
      of
      which is 12. In no event, shall payment under this Section 9(b)(iii)(3) exceed
      80% of the Executive's base salary for the prior year. If the bonus with respect
      to the prior fiscal year has not yet been determined by the date that the
      parties must calculate the amount to be paid under this paragraph, then the
      parties shall calculate this portion of the severance by reference to the bonus
      paid with respect to the year next preceding the prior fiscal year.

    

    (iv)
      Termination
      pursuant to Section 9(a)(iii) relating to the death or disability of the
      Executive.
      In the
      event the Executive's employment is terminated pursuant to Section 9(a)(iii),
      the Company shall: 

    

    (1)
      Continue to pay to Executive or his estate, as the case may be, an amount equal
      to his then current Base Salary for the three-month period following the
      Termination Date. 

    

    (2)
      Continue for the 12-month period following the Termination Date all health
      and
      dental insurance benefits the Executive was entitled to at the Termination
      Date.

     

    (v)
      Golden
      Parachute Payment Excise Tax Protection.
      In the
      event that the excise tax imposed by Section 4999 of the Internal Revenue Code
      of 1986, as amended (the "Code"),
      (or
      any successor penalty or excise tax subsequently imposed by law) applies to
      any
      payments or benefits specifically paid or conferred only under this Agreement
      (which shall not include any payments or benefits paid or conferred under the
      long-term incentive compensation arrangement or the performance based long-term
      incentive compensation arrangement referenced in Section 4(c)) (the
“Excise
      Tax”),
      an
      additional amount shall be paid by the Company to the Executive equal
      to
      the amount of such Excise Tax (the “Gross
      Up Payment”);
      provided, however in no event shall the aggregate amount payable by the Company
      to Executive for any excise tax imposed by Section 4999 of the Code pursuant
      to
      this Agreement and all other agreements between the Company and Executive exceed
      $250,000. The Company and its advisers shall make the determination of the
      amount of the Gross Up Payment. To the extent that the amount of such Gross
      Up
      Payment exceeds the amount of Excise Tax actually paid by Executive, Executive
      shall promptly pay to the Company such excess amount.

    

    (c) Continuation/Nonrenewal.
      Unless
      this Agreement has been otherwise terminated before the end of the scheduled
      Employment Period as described in Section 1, the Company and the Executive
      agree
      to discuss in good faith the possible continuation of the Executive’s
      employment, commencing six months prior to such date. If the Company fails
      to
      offer the Executive a new employment agreement, with at least equivalent
      material terms to this Agreement, by such date and in fact the Executive ceases
      to be an employee of the Company (other than for Cause) following such date
      the
      Company shall pay the Executive a monthly amount for twelve months equal to
      his
      last prevailing monthly Base Salary, plus one-twelfth of the Executive’s bonus
      for the most recent fiscal year of the Company, in accordance with the Company’s
      regular payroll practices, less applicable withholdings required by law. If
      the
      bonus with respect to the most recent fiscal year has not yet been determined
      by
      the date that the parties must calculate the amount to be paid under this
      paragraph with respect to bonus, then the parties shall calculate this portion
      of the severance by reference to the bonus paid with respect to the year next
      preceding such most recent fiscal year.

    

    Section
      10.
      No
      Conflicting Agreements.
      The
      Executive represents and warrants to the Company that he is not a party to
      or
      bound by any confidentiality, non-competition, non-solicitation or other
      agreement or restriction that could conflict with or be violated by the
      performance of his duties for the Company. 

    

    Section
      11.
      No
      Disparagement.
      Each
      party agrees that at all times following the termination of the Executive's
      employment hereunder, such party shall not make or cause to be made, directly
      or
      indirectly, any statements to any third party that disparage or denigrate the
      other party or, in the case of the Company, any of its current or former
      directors, officers or employees, unless required by law.

    

    Section
      12.
      Enforceability,
      etc.
      This
      Agreement shall be interpreted in such a manner as to be effective and valid
      under applicable law, but if any provision hereof shall be prohibited or invalid
      under any such law, such provision shall be ineffective to the extent of such
      prohibition or invalidity, without invalidating or nullifying the remainder
      of
      such provision or any other provisions of this Agreement. If any one or more
      of
      the provisions contained in this Agreement shall for any reason be held to
      be
      excessively broad as to duration, geographical scope, activity, or subject,
      such
      provisions shall be construed by limiting and reducing it so as to be
      enforceable to the maximum extent permitted by applicable law.

     

    
      
        
        

      

      
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    Section
      13.
      Notices.
      Any
      notice or other communication given pursuant to this Agreement shall be in
      writing and shall be personally delivered, sent by nationally recognized
      overnight courier or express mail, or mailed by first class certified or
      registered mail, postage prepaid, return receipt requested as
      follows:

    
      	
              (a)
                If
                to the Executive:

              Matthew
                L. Lazarewicz

               

               

            	
              (b)
                If
                to the Company:

              Beacon
                Power Corporation

              65
                Middlesex Road

              Tyngsboro,
                MA 01879

              Attn:
                Compensation Committee and Chief Executive
                Officer

            

    

    or
      to
      such other address as a party shall have designated by notice to the other
      party. 

    

    Section
      14.
      Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the Commonwealth of Massachusetts without giving effect to any choice
      or
      conflict of laws provision or rule that would cause the application of the
      domestic substantive laws of any other jurisdiction.

    

    Section
      15.
      Amendments
      and Waivers.
      No
      amendment or waiver of this Agreement or any provision hereof shall be binding
      upon the party against whom enforcement of such amendment or waiver is sought
      unless it is made in writing and signed by or on behalf of such party. The
      waiver by either party of a breach of any provision of this Agreement by the
      other party shall not operate and be construed as a waiver or a continuing
      waiver by that party of the same or any subsequent breach of any provision
      of
      this Agreement by the other party. To the extent that the final regulations
      under Section 409A of the Code require modifications to this Agreement in order
      to avoid that section’s penalty tax, the parties agree to discuss amending this
      Agreement accordingly. Notwithstanding the foregoing, to the extent the Company
      reasonably determines that any portion of the payments or benefits payable
      under
      this Agreement is subject to Section 409A of the Code, such portion of payments
      or benefits payable shall (i) to the extent required by Section 409A of the
      Code, be delayed for six months from the Termination Date or (ii) to the extent
      permitted under subsequent guidance from the Internal Revenue Service, be
      otherwise made to comply with such Section 409A requirements, provided, however,
      that any such action under this subsection (ii) that is more detrimental to
      Executive than that in subsection (i) shall only be made with Executive’s
      consent.

    

    Section
      16.
      Binding
      Effect.
      This
      Agreement shall be binding on and inure to the benefit of the parties hereto
      and
      their respective heirs, executors and administrators, successors and assigns,
      except that it may not be assigned by the Company without the Executive's
      consent, provided that the Company may assign this Agreement to an entity that
      acquires substantially all of the Company's assets by means of an asset sale,
      merger or otherwise, provided further that such entity shall agree in writing
      to
      assume and be bound by this Agreement. This Agreement is personal to the
      Executive and is not assignable by him. 

    

    Section
      17.
      Entire
      Agreement.
      This
      Agreement constitutes the final and entire agreement of the parties with respect
      to the matters covered hereby and replaces and supersedes all other agreements
      and understandings relating hereto, other than the RSU (restricted stock unit)
      and option agreements already in place.

    

    Section
      18.
      Pronouns.
      Whenever the context may require, any pronouns used in this Agreement shall
      include the corresponding masculine, feminine or neuter forms, and the singular
      form of nouns and pronouns shall include the plural, and vice
      versa.

    

    Section
      19. Survivability.
      Sections
      6-20 herein
      shall
      survive the termination of this
      Agreement. 

    

    Section
      20.
      Counterparts.
      This
      Agreement may be executed in any number of counterparts, and with counterpart
      signature pages, each of which shall be deemed an original, but all of which
      together shall constitute one and the same instrument.

    

    IN
      WITNESS WHEREOF, this Agreement has been executed as a sealed instrument as
      of
      the date first above written.

    

    
      	
              EXECUTIVE

            	 	
              BEACON
                POWER CORPORATION

            
	 	 	 
	
              /s/
                Matthew L. Lazarewicz

            	 	
              By:

            	
              /s/
                F. William Capp

            
	
              Matthew
                L. Lazarewicz

            	 	
              Name:
                F. William Capp

            
	 	 	
              Title:
                President and Chief Executive
                Officer

            

    

     

    
      
        
        

      

      
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