Document:

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                                                                 Exhibit 10.1.12

THE SECURITIES EVIDENCED BY THIS WARRANT CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT
BE SOLD, TRANSFERRED, OR ASSIGNED UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN
ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT, OR THE COMPANY RECEIVES AN
OPINION OF COUNSEL FOR THE HOLDER OF SUCH SECURITIES REASONABLY SATISFACTORY TO
THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS
EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

THE SALE OR TRANSFER AND CERTAIN OTHER RIGHTS RELATING TO THE SECURITIES
REPRESENTED BY THIS DOCUMENT ARE SUBJECT TO THE TERMS AND CONDITIONS OF A
CERTAIN SHAREHOLDER AGREEMENT BY AND AMONG THE COMPANY AND CERTAIN SHAREHOLDERS
OF THE COMPANY. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF
THE COMPANY.

No.:  KP-1

                                     WARRANT

                            TO PURCHASE COMMON STOCK

                                       OF

                            BEACON POWER CORPORATION

                           (void after August 2, 2005)

         1. ISSUANCE OF WARRANT. FOR VALUE RECEIVED, on and after the date of
issuance of this Warrant, and subject to the terms and conditions herein set
forth, the Holder (as defined below) is entitled to purchase from Beacon
Power Corporation, a Delaware corporation (the "Company"), at any time before
5:00 p.m. New York time on August 2, 2005 (the "Termination Date"), at a
price per share equal to (the Warrant Price) (as defined below and subject to
adjustment as described below), 20,000 shares of the Common Stock, $.01 par
value per share (the "Warrant Stock") upon exercise of this warrant (this
"Warrant") pursuant to Section 6 hereof. This Warrant is issued pursuant to
the Securities Purchase Agreement (as defined below).

         2. DEFINITIONS. As used in this Warrant, the following terms have the
definitions ascribed to them below:

                  (a) "Additional Stock" is defined in Section 3(d)(iv).

                  (b) "Business Day" means any day other than a Saturday, Sunday
or other day on which the national or state banks located in the State of
Massachusetts or the State of New York or the District of Columbia are
authorized to be closed.

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                  (c) "Change-In-Control Event" means the occurrence after the
Commencement Date of any of the following: (i) the acquisition of voting
securities of the Company by any person or group of persons that results in such
person or group, together with its affiliates, becoming, directly or indirectly,
the beneficial owner of in excess of 50% of the outstanding voting securities of
the Company; (ii) a merger or consolidation of the Company with any other
corporation or legal entity regardless of which entity is the survivor, other
than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or being converted into voting securities of
the surviving entity) in excess of 50% of the voting securities of the Company
or such surviving entity outstanding immediately after such merger or
consolidation; or (iii) the sale or disposition of all or substantially all of
the Company's assets other than in a transaction in which holders of the voting
securities of the Company immediately prior to such transaction receive voting
securities of the acquiror of such assets or its affiliate that represent in
excess of 50% of the voting securities of such entity after consummation of such
transaction.

                  (d) "Commencement Date" means the date of issue of this
Warrant.

                  (e) "Common Stock" means the Company's Common Stock, $.01 par
value per share.

                  (f) "Holder" means Kaufman-Peters Company or its assigns.

                  (g) "Public Offering" means the consummation of an
underwritten public offering of Common Stock pursuant to an effective
registration statement under the Securities Act of 1933, as amended.

                  (h) "Warrant Price" means the initial offering price per share
of the Common Stock in the first Public Offering, in each case subject to
adjustment under Section 3.

         3. ADJUSTMENTS AND NOTICES. The Warrant Price and/or the number of
shares of Warrant Stock shall be subject to adjustment from time to time in
accordance with this Section 3. The Warrant Price and/or the number of Warrant
Shares shall be adjusted to reflect all of the following events that occur on or
after the Commencement Date.

                  (a) SUBDIVISION, STOCK DIVIDENDS OR COMBINATIONS. In case the
Company shall at any time subdivide the outstanding shares of Warrant Stock or
shall issue a stock dividend with respect to the Warrant Stock, the Warrant
Price in effect immediately prior to such subdivision or the issuance of such
dividend shall be proportionately decreased, and in case the Company shall at
any time combine the outstanding shares of the Warrant Stock, the Warrant Price
in effect immediately prior to such combination shall be proportionately
increased, in each case effective at the close of business on the date of such
subdivision, dividend or combination, as the case may be.

                  (b) RECLASSIFICATION, EXCHANGE, SUBSTITUTION, IN-KIND
DISTRIBUTION. Upon any reclassifications, exchange, substitution or other event
that results in a change of the number

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and/or class of the securities issuable upon exercise or conversion of this
Warrant or upon the payment of a dividend in securities or property other than
shares of Warrant Stock, the Holder shall be entitled to receive, upon exercise
or conversion of this Warrant, the number and kind of securities and property
that Holder would have received if this Warrant had been exercised or converted
immediately before the record date for such reclassification, exchange,
substitution, or other event or immediately prior to the record date for such
dividend. The Company or its successor shall promptly issue to Holder a new
warrant for such new securities or other property. The new warrant shall provide
for adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 3 including, without limitation,
adjustments to the Warrant Price and to the number of securities or property
issuable upon exercise or conversion of the new warrant. The provisions of this
Section 3(b) shall similarly apply to successive reclassifications, exchanges,
substitutions, or other events and successive dividends.

                  (c) REORGANIZATION, MERGER ETC. In case of any
Change-In-Control Event, the Company, or such successor or purchasing
corporation, as the case may be, shall, as a condition to closing any such
reorganization, merger or sale, duly execute and deliver to the Holder hereof a
new warrant so that the Holder shall have the right to receive, at a total
purchase price not to exceed that payable upon the exercise or conversion of the
unexercised or unconverted portion of this Warrant, and in lieu of the shares of
the Warrant Stock theretofore issuable upon exercise or conversion of this
Warrant, the kind and amount of shares of stock, other securities, money and
property receivable upon such reorganization, merger or sale by the Holder of
the number of shares of Warrant Stock then purchasable under this Warrant. Such
new warrant shall provide for adjustments that shall be as nearly equivalent as
may be practicable to the adjustments provided for in this Section 3. The
provisions of this subparagraph (c) shall similarly apply to successive
Change-In-Control Events.

                  (d) DILUTIVE ISSUANCES ADJUSTMENT OF NUMBER OF SHARES AND
WARRANT PRICE. In order to prevent dilution of the rights granted under this
Warrant, the number of shares of Warrant Stock obtainable upon exercise of this
Warrant and the Warrant Price shall be subject to adjustment from time to time
as provided in this Section 3(d).

         (i) ADJUSTMENT OF WARRANT PRICE UPON ISSUANCE OF ADDITIONAL STOCK. If
and whenever after the Commencement Date, the Company issues, or in accordance
with Section 3(d)(ii) is deemed to have issued, any Additional Stock to any
person for a consideration per share less than the Warrant Price then in effect,
then the Warrant Price in effect immediately before each such issuance shall
forthwith be adjusted to a price determined by multiplying such Warrant Price by
a fraction, the NUMERATOR of which shall be the number of shares of Common Stock
outstanding immediately prior to such issuance plus the number of shares of
Common Stock that the aggregate consideration received by the Company for such
issuance would purchase at such Warrant Price; and the DENOMINATOR of which
shall be the number of shares of Common Stock outstanding immediately prior to
such issuance plus the number of shares of such Additional Stock. In addition,
upon each adjustment of the Exercise Price under this Section 3, the number of
Warrant Shares acquirable upon the exercise of this Warrant shall be adjusted to
equal the number of shares determined by multiplying the Exercise Price in
effect immediately prior to the

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adjustment of the Warrant Price by the number of Warrant Shares acquirable upon
exercise of this Warrant immediately prior to the adjustment of the Warrant
Price and dividing the product thereof by the Exercise Price resulting from the
adjustment of the Warrant Price.

                           (ii) EFFECT OF CERTAIN EVENTS. For purposes of
determining under Section (d)(i) the adjusted number of shares of Warrant Stock
acquirable upon exercise of this Warrant, the following shall be applicable:

                                        (A) ISSUANCE OF RIGHTS OR OPTIONS. If
                    the Company in any manner issues, grants or sells (or
                    otherwise becomes subject to) any options, rights, or
                    warrants (collectively, "Options") to purchase Common Stock
                    or securities that are convertible into or exchangeable for
                    Common Stock ("Convertible Securities"), then the total
                    maximum number of shares of Common Stock issuable upon the
                    exercise of such Options or upon conversion or exchange of
                    the total maximum amount of such Convertible Securities
                    issuable upon the exercise of such Options shall be deemed
                    to have been sold on the date of issuance, grant or sale of
                    such Options and to be outstanding, and the total maximum
                    consideration receivable for such issue, grant and sale of
                    the Options, Convertible Securities and Common Stock shall
                    be deemed to have been received by the Company.

                                        (B) ISSUANCE OF CONVERTIBLE SECURITIES.
                    If the Company in any manner grants, issues or sells (or
                    otherwise becomes subject to) any Convertible Securities,
                    then the maximum number of shares of Common Stock issuable
                    upon conversion or exchange of such Convertible Securities
                    shall be deemed to have been sold on the date of issuance,
                    grant or sale of such Convertible Securities and to be
                    outstanding, and the total maximum consideration receivable
                    for such grant, issue and sale of the Convertible Securities
                    and Common Stock shall be deemed to have been received by
                    the Company.

                                        (C) TREATMENT OF EXPIRED OPTIONS AND
                    UNEXERCISED CONVERTIBLE SECURITIES. Upon the expiration of
                    any Option or the termination of any right to convert or
                    exchange any Convertible Securities without the exercise of
                    such Option or right, the number of shares of Warrant Stock
                    acquirable hereunder shall be adjusted to the number of
                    shares which would have been in effect at the time of such
                    expiration or termination had such Option or Convertible
                    Securities, to the extent outstanding immediately prior to
                    such expiration or termination, never been issued and the
                    consideration for such exercise never been received.

                                        (D) TREASURY SHARES. The number of
                    shares of Common Stock outstanding at any given time does
                    not include shares owned or held by or for the account of
                    the Company or any Subsidiary, and the disposition of any
                    shares so owned or held shall be considered an issuance or
                    sale of Common Stock.

                                        (E) RECORD DATE. If the Company takes a
                    record of the holders of Common Stock for the purpose of
                    entitling them (A) to receive a dividend or other

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                    distribution payable in Common Stock, Options or in
                    Convertible Securities or (B) to subscribe for or purchase
                    Common Stock, Options or Convertible Securities, then such
                    record date shall be deemed to be the date of the issue or
                    sale of the shares of Common Stock deemed to have been
                    issued or sold upon the declaration of such dividend or the
                    making of such other distribution or the date of the
                    granting of such right of subscription or purchase, as the
                    case may be.

                           (iii) In the case of the issuance of Additional Stock
for cash, the consideration received therefor shall be deemed to be the amount
of cash paid therefor before deducting any reasonable discounts, commissions or
other expenses allowed, paid or incurred by the company for any underwriting or
otherwise in connection with the issuance and sale thereof. In the case of the
issuance of Additional Stock for a consideration in whole or in part other than
cash, the consideration other than cash received therefor shall be deemed to be
the fair value thereof as reasonably determined by the Board of Directors of the
Company in its good faith judgment irrespective of any accounting treatment.

                           (iv) "Additional Stock" shall mean any shares of
Common Stock issued (or deemed to have been issued pursuant to clause (ii) of
this Section 3(d)) by the Company after the Commencement Date, other than shares
of Common Stock issued or issuable:

                                        (A) to officers, directors, employees
                    and consultants of the Company directly or pursuant to a
                    stock option plan or restricted stock plan approved by the
                    Board of Directors of the Company; or

                                        (B) upon conversion of the Class A, B,
                    C, D or E Preferred Stock of the Company or the exercise of
                    warrants issued by the Company before or on the Commencement
                    Date.

                           (v) CERTAIN EVENTS. If any event occurs of the type
contemplated by the provisions of this Section 3(d) but not expressly
provided for by such provisions (including, without limitation, the granting of
stock appreciation rights, phantom stock rights or other rights with equity
features), then the Company's board of directors shall make an appropriate
adjustment in the number of shares of Warrant Stock obtainable upon exercise of
this Warrant and in the Warrant Price so as to protect the rights of the holders
of the Warrants; provided that no such adjustment shall decrease the number of
shares of Warrant Stock obtainable as otherwise determined pursuant to this
Section 3.

                  (e) CERTIFICATE OF ADJUSTMENT. In each case of an adjustment
or readjustment of the Warrant Price, the Corporation, at its own expense, shall
cause its Chief Financial Officer to compute such adjustment or readjustment in
accordance with the provisions hereof and prepare a certificate showing such
adjustment or readjustment, and shall mail such certificate, by first class
mail, postage prepaid, to the Holder. The certificate shall set forth such
adjustment or readjustment, showing in detail the facts upon which such
adjustment or readjustment is based. No adjustment of the Warrant Price shall be
required to be made unless it would result in an increase or decrease of at
least one cent, but any adjustments not made because of this sentence

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shall be carried forward and taken into account in any subsequent adjustment
otherwise required hereunder.

                  (f) NO IMPAIRMENT. The Company shall not, by amendment of its
Certificate of Incorporation or through a reorganization, transfer of assets,
consolidation, merger, dissolution, issue, or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed under this Warrant by the Company, but
shall at all times in good faith assist in carrying out all of the provisions of
this Section 3 and in taking all such action as may be necessary or appropriate
to protect the Holder's rights under this Section 3 against impairment. If the
Company takes any action affecting the Common Stock other than as described
above that adversely affects the Holder's rights under this Warrant, the Warrant
Price shall be adjusted downward.

                  (g) FRACTIONAL SHARES. No fractional shares shall be issuable
upon exercise or conversion of the Warrant and the number of shares to be issued
shall be rounded down to the nearest whole share. If a fractional share interest
arises upon any exercise or conversion of the Warrant, the Company shall
eliminate such fractional share interest by paying the Holder an amount computed
by multiplying the fractional interest by the fair market value of a full share.

         4. NO SHAREHOLDER RIGHTS. This Warrant, by itself, as distinguished
from any shares purchased hereunder, shall not entitle its Holder to any of the
rights of a shareholder of the Company.

         5. RESERVATION OF STOCK. On and after the date hereof, the Company will
reserve from its authorized and unissued stock a sufficient number of shares to
provide for the issuance of Warrant Stock upon the exercise or conversion of
this Warrant. Issuance of this Warrant shall constitute full authority to the
Company's officers who are charged with the duty of executing stock certificates
to execute and issue the necessary certificates for shares of Warrant Stock
issuable upon the exercise or conversion of this Warrant.

         6. EXERCISE OF WARRANT. This Warrant may be exercised as a whole or in
part by the Holder, at any time after the date hereof prior to the termination
of this Warrant, by the surrender of this Warrant, together with the Notice of
Exercise and Investment Representation Statement in the forms attached hereto as
ATTACHMENTS 1 AND 2, respectively, duly completed and executed at the principal
office of the Company, specifying the portion of the Warrant to be exercised and
accompanied by payment in full of the Warrant Price in cash or by check with
respect to the shares of Warrant Stock being purchased. This Warrant shall be
deemed to have been exercised immediately prior to the close of business on the
date of its surrender for exercise as provided above, and the person entitled to
receive the shares of Warrant Stock issuable upon such exercise shall be treated
for all purposes as the holder of such shares of record as of the close of
business on such date. As promptly as practicable after such date, the Company
shall issue and deliver to the person or persons entitled to receive the same a
certificate or certificates for the number of full shares of Warrant Stock
issuable upon such exercise. If this Warrant shall be exercised for less than
the total number of shares of Warrant Stock then issuable upon exercise,
promptly after surrender of this Warrant upon such exercise, the Company will
execute and deliver a new

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warrant, dated the date hereof, evidencing the right of the Holder to the
balance of this Warrant Stock purchasable hereunder upon the same terms and
conditions set forth herein.

         7. CONVERSION. In lieu of exercising this Warrant or any portion
hereof, at any time after the occurrence of a Change-In-Control Event or the
filing of a registration statement for an initial underwritten public offering
of securities by the Company, the Holder hereof shall have the right to convert
this Warrant or any portion hereof into Warrant Stock by executing and
delivering to the Company at its principal office the written Notice of
Conversion and Investment Representation Statement in the forms attached hereto
as ATTACHMENTS 2 AND 3, specifying the portion of the Warrant to be converted,
and accompanied by this Warrant. The number of shares of Warrant Stock to be
issued to Holder upon such conversion shall be computed using the following
formula:

                                 X=(P)(Y)(A-B)/A

         where X = the number of shares of Warrant Stock to be issued to the
Holder for the portion of the Warrant being converted.

                           P =      the portion of the Warrant being converted
                                    expressed as a decimal fraction.

                           Y =      the total number of shares of Warrant Stock
                                    issuable upon exercise of the Warrant in
                                    full.

                           A =      the fair market value of one share of
                                    Warrant Stock which means (i) the fair
                                    market value of the Warrant Stock as of the
                                    last Business Day immediately prior to the
                                    date the notice of conversion is received by
                                    the Company, as reported in the principal
                                    market for such securities or, if no such
                                    market exists, as determined in good faith
                                    by the Company's Board of Directors, or (ii)
                                    if this Warrant is being converted in
                                    conjunction with a public offering of stock
                                    the price to the public per share pursuant
                                    to the offering.

                           B =      the Warrant Price on the date of conversion.

Any portion of this Warrant that is converted shall be immediately canceled.
This Warrant or any portion hereof shall be deemed to have been converted
immediately prior to the close of business on the date of its surrender for
conversion as provided above, and the person entitled to receive the shares of
Warrant Stock issuable upon such conversion shall be treated for all purposes as
the holder of such shares of record as of the close of business on such date. As
promptly as practicable after such date, the Company shall issue and deliver to
the person or persons entitled to receive the same a certificate or certificates
for the number of full shares of Warrant Stock issuable upon such conversion. If
the Warrant shall be converted for less than the

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total number of shares of Warrant Stock then issuable upon conversion, promptly
after surrender of the Warrant upon such conversion, the Company will execute
and deliver a new warrant, dated the date hereof, evidencing the right of the
Holder to the balance of the Warrant Stock purchasable hereunder upon the same
terms and conditions set forth herein. If this Warrant is converted, as a whole
or in part, after the occurrence of a Change-In-Control Event as to which
Section 3(c) is applicable, the Holder shall receive the consideration
contemplated by Section 3(c) in lieu of Warrants Stock of the Company.

         8. TRANSFER OF WARRANT. This Warrant may be transferred or assigned by
the Holder hereof as a whole or in part, provided that the transferor provides,
at the Company's request, an opinion of counsel satisfactory to the Company that
such transfer does not require registration under the Securities Act and the
securities law applicable with respect to any other applicable jurisdiction.

         9. TERMINATION. This Warrant shall terminate on 5:00 p.m. New York time
on the Termination Date.

         10. LOCK-UP. The Holder will not, without the prior written consent of
Salomon Smith Barney Inc., offer, sell, contract to sell, pledge or otherwise
dispose of (or enter into any transaction which is designed to, or might
reasonably be expected to, result in the disposition (whether by actual
disposition or effective economic disposition due to cash settlement or
otherwise) by the undersigned or any affiliate of the Holder or any person in
privity with the Holder or any affiliate of the Holder), directly or indirectly,
including the filing of a registration statement with the Securities and
Exchange Commission in respect of, or establish or increase a put equivalent
position or liquidate or decrease a call equivalent position within the meaning
of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Securities and Exchange Commission promulgated hereunder
with respect to, any shares of capital stock of the Company or any securities
convertible into, or exercisable or exchangeable for such capital stock, or
publicly announce an intention to effect any such transaction, for a period of
180 days after the date of the proposed Underwriting Agreement (the
"Underwriting Agreement"), between the Company, and each of the Underwriters
named therein, other than shares of Common Stock disposed of as bona fide gifts
approved by Salomon Smith Barney Inc. If for any reason the Underwriting
Agreement shall be terminated prior to the Closing Date (as defined in the
Underwriting Agreement), this provision shall be of no further effect.

         11. MISCELLANEOUS. This Warrant shall be governed by the laws of the
Commonwealth of Massachusetts, as such laws are applied to contracts to be
entered into and performed entirely in Massachusetts by Massachusetts residents.
In the event of any dispute among the Holder and the Company arising out of the
terms of this Warrant, the parties hereby consent to the exclusive jurisdiction
of the federal and state courts located in the Commonwealth of Massachusetts for
resolution of such dispute, and agree not to contest such exclusive jurisdiction
or seek to transfer any action relating to such dispute to any other
jurisdiction. The headings in this Warrant are for purposes of convenience and
reference only, and shall not be deemed to constitute a part hereof. Neither
this Warrant nor any term hereof may be changed or

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waived orally, but only by an instrument in writing signed by the Company and
the Holder of this Warrant. All notices and other communications from the
Company to the Holder of this Warrant shall be delivered personally or by
facsimile transmission or mailed by first class mail, postage prepaid, to the
address or facsimile number furnished to the Company in writing by the last
Holder of this Warrant who shall have furnished an address or facsimile number
to the Company in writing, and if mailed shall be deemed given three days after
deposit in the United States mail.

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         ISSUED:  AUGUST 2, 2000

                  BEACON POWER CORPORATION

                  By:      /s/ William E. Stanton
                           ----------------------------

                  Name:    William E. Stanton

                  Title:   President

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                                  Attachment 1

NOTICE OF EXERCISE

TO:      BEACON POWER CORPORATION

1.   The undersigned hereby elects to purchase _______________ shares of the
     Warrant Stock of Beacon Power Corporation pursuant to the terms of the
     attached Warrant, and tenders herewith payment of the purchase price in
     full, together with all applicable transfer taxes, if any.

2.   Please issue a certificate or certificates representing said shares of
     Warrant Stock in the name of the undersigned or in such other name as is
     specified below:

                         ------------------------------
                                     (Name)

                        -------------------------------
                                   (Address)

---------------------------------------     -----------------------------------
(Date)   (Name of Warrant Holder)

     By:_______________________________

     Title:____________________________

<PAGE>

                                  Attachment 2

                       INVESTMENT REPRESENTATION STATEMENT

                           Shares of the Common Stock
                     (as defined in the attached Warrant) of
                            BEACON POWER CORPORATION

         In connection with the purchase of the above-listed securities, the
undersigned hereby represents to Beacon Power Corporation (the "Company") as
follows:

(a) The securities to be received upon the exercise of the Warrant (the
"Securities") will be acquired for investment for its own account, not as a
nominee or agent, and not with a view to the sale or distribution of any part
thereof, and the undersigned has no present intention of selling, granting
participation in or otherwise distributing the same, but subject, nevertheless,
to any requirement of law that the disposition of its property shall at all
times be within its control. By executing this statement, the undersigned
further represents that it does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer, or grant participations to such
person or to any third person, with respect to any Securities issuable upon
exercise of the Warrant.

(b) The undersigned understands that the Securities issuable upon exercise of
the Warrant at the time of issuance may not be registered under the Securities
Act of 1933, as amended (the "Securities Act"), and applicable state securities
laws, on the ground that the issuance of such securities is exempt pursuant to
Section 4(2) of the Securities Act and state law exemptions relating to offers
and sales not by means of a public offering, and that the Company's reliance on
such exemptions is predicated on the undersigned's representations set forth
herein.

(c) The undersigned agrees that in no event will it make a disposition of any
Securities acquired upon the exercise of the Warrant unless and until (i) it
shall have notified the Company of the proposed disposition and shall have
furnished the Company with a statement of the circumstances surrounding the
proposed disposition, and (ii) it shall have furnished the Company with an
opinion of counsel satisfactory to the Company and Company's counsel to the
effect that (A) appropriate action necessary for compliance with the Securities
Act and any applicable state securities laws has been taken or an exemption from
the registration requirements of the Securities Act and such laws is available,
and (B) the proposed transfer will not violate any of said laws.

(d) The undersigned acknowledges that an investment in the Company is highly
speculative and represents that it is able to fend for itself in the
transactions contemplated by this statement, has such knowledge and experience
in financial and business matters as to be capable of evaluating the merits and
risks of its investments, and has the ability to bear the economic risks
(including the risk of a total loss) of its investment. The undersigned
represents that it has had the opportunity to ask questions of the Company
concerning the Company's business and assets and to obtain any additional
information which it considered necessary to verify the accuracy of or to

<PAGE>

amplify the Company's disclosures, and has had all questions which have been
asked by it satisfactorily answered by the Company

(e) The undersigned acknowledges that the Securities issuable upon exercise or
conversion of the Warrant must be held indefinitely unless subsequently
registered under the Securities Act or an exemption from such registration is
available. The undersigned is aware of the provisions of Rule 144 promulgated
under the Securities Act which permit limited resale of shares purchased in a
private placement subject to the satisfaction of certain conditions, including,
among other things, the existence of a public market for the shares, the
availability of certain current public information about the Company, the resale
occurring not less than one year after a party has purchased and paid for the
security to be sold from the Company or any affiliate of the Company, the sale
being through a "broker's transaction" or in transactions directly with a
"market maker" (as provided by Rule 144(f)) and the number of shares being sold
during any three month period not exceeding specified limitations.

         Dated:________________________

         ______________________________________
         (Typed or Printed Name)

         By:___________________________________
              (Signature)

         ______________________________________
         (Title)

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                                  Attachment 3

NOTICE OF CONVERSION

TO:      BEACON POWER CORPORATION

1. The undersigned hereby elects to acquire _______________ shares of the
Warrant Stock of Beacon Power Corporation pursuant to the terms of the attached
Warrant, by conversion of _________ percent (_____%) of the Warrant.

2. Please issue a certificate or certificates representing said shares of
Warrant Stock in the name of the undersigned or in such other name as is
specified below:

                         ------------------------------
                                     (Name)

                         -------------------------------
                                    (Address)

---------------------------------------     -----------------------------------
(Date)   (Name of Warrant Holder)

   By:________________________________

   Title:_____________________________
       (Title and signature of authorized person)

                                      -3-<PAGE>

                                                                 EXHIBIT 10.1.13

                            BEACON POWER CORPORATION

              SECOND AMENDED AND RESTATED 1998 STOCK INCENTIVE PLAN

1.       PURPOSE

         The purpose of this Second Amended and Restated 1998 Stock Incentive
Plan (the "Plan") of Beacon Power Corporation, a Delaware corporation (the
"Company"), is to advance the interests of the Company's stockholders by
enhancing the Company's ability to attract, retain and motivate persons who make
(or are expected to make) important contributions to the Company by providing
such persons with equity ownership opportunities and performance-based
incentives and thereby better aligning the interests of such persons with those
of the Company's stockholders. Except where the context otherwise requires, the
term "Company" shall include any present or future subsidiary corporations of
the Company as defined in Section 424(f) of the Internal Revenue Code of 1986,
as amended, and any regulations promulgated thereunder (the "Code").

2.       ELIGIBILITY

         All of the Company's employees, officers, directors, consultants and
advisors are eligible to be granted options, restricted stock, or other
stock-based awards (each, an "Award") under the Plan. Each person who has been
granted an Award under the Plan shall be deemed a "Participant".

3.       ADMINISTRATION, DELEGATION

         (a) ADMINISTRATION BY BOARD OF DIRECTORS. The Plan will be administered
by the Board of Directors of the Company (the "Board"). The Board shall have
authority to grant Awards and to adopt, amend and repeal such administrative
rules, guidelines and practices relating to the Plan as it shall deem advisable.
The Board may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Award in the manner and to the extent it shall
deem expedient to carry the Plan into effect and it shall be the sole and final
judge of such expediency. All decisions by the Board shall be made in the
Board's sole discretion and shall be final and binding on all persons having or
claiming any interest in the Plan or in any Award. No director or person acting
pursuant to the authority delegated by the Board shall be liable for any action
or determination relating to or under the Plan made in good faith.

         (b) DELEGATION TO EXECUTIVE OFFICERS. To the extent permitted by
applicable law, the Board may delegate to one or more executive officers of the
Company the power to make Awards and exercise such other powers under the Plan
as the Board may determine, provided that the Board shall fix the maximum number
of shares subject to Awards and the maximum number of shares for any one
Participant to be made by such executive officers.

         (c) APPOINTMENT OF COMMITTEES. To the extent permitted by applicable
law, the Board may delegate any or all of its powers under the Plan to one or
more committees or subcommittees of the Board (a "Committee"). If and when the
common stock, $0.01 par value per share, of the Company (the "Common Stock") is
registered under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), the Board shall appoint one such Committee of not less than two members,
each member of which shall be an "outside director" within the meaning of
Section 162(m) of the Code and a "non-employee director" as defined in Rule
16b-3 promulgated under the Exchange Act. All references in the Plan to the
"Board" shall mean the Board or a Committee of the Board or the executive
officer referred to in Section

<PAGE>

3(b) to the extent that the Board's powers or authority under the Plan have been
delegated to such Committee or executive officer.

4.       STOCK AVAILABLE FOR AWARDS

         (a) NUMBER OF SHARES. Subject to adjustment under Section 4(c), Awards
may be made under the Plan for up to 4,500,000 shares of Common Stock. If any
Award expires or is terminated, surrendered or canceled without having been
fully exercised or is forfeited in whole or in part or results in any Common
Stock not being issued, the unused Common Stock covered by such Award shall
again be available for the grant of Awards under the Plan, subject, however, in
the case of Incentive Stock Options (as hereinafter defined), to any limitation
required under the Code. Shares issued under the Plan may consist in whole or in
part of authorized but unissued shares or treasury shares.

         (b) PER-PARTICIPANT LIMIT. Subject to adjustment under Section 4(c),
for Awards granted after the Common Stock is registered under the Exchange Act,
the maximum number of shares of Common Stock with respect to which an Award may
be granted to any Participant under the Plan shall be 450,000 per calendar year.
The per-Participant limit described in this Section 4(b) shall be construed and
applied consistently with Section 162(m) of the Code.

         (c) ADJUSTMENT TO COMMON STOCK. In the event of any stock split, stock
dividend, recapitalization, reorganization, merger, consolidation, combination,
exchange of shares, liquidation, spin-off or other similar change in
capitalization or event, or any distribution to holders of Common Stock other
than a normal cash dividend, (i) the number and class of securities available
under this Plan, (ii) the number and class of security and exercise price per
share subject to each outstanding Option (as hereinafter defined), (iii) the
repurchase price per security subject to each outstanding Restricted Stock
Award, and (iv) the terms of each other outstanding stock-based Award shall be
appropriately adjusted by the Company (or substituted Awards may be made, if
applicable) to the extent the Board shall determine, in good faith, that such an
adjustment (or substitution) is necessary and appropriate. If this Section 4(c)
applies and Section 8(e)(1) also applies to any event, Section 8(e)(1) shall be
applicable to such event, and this Section 4(c) shall not be applicable.

5.       STOCK OPTIONS

         (a) GENERAL. The Board may grant options to purchase Common Stock
(each, an "Option") and determine the number of shares of Common Stock to be
covered by each Option, the exercise price of each Option and the conditions and
limitations applicable to the exercise of each Option, including conditions
relating to applicable federal or state securities laws, as it considers
necessary or advisable. An Option which is not intended to be an Incentive Stock
Option (as hereinafter defined) shall be designated a "Nonstatutory Stock
Option".

         (b) INCENTIVE STOCK OPTIONS. An Option that the Board intends to be an
"incentive stock option" as defined in Section 422 of the Code (an "Incentive
Stock Option") shall only be granted to employees of the Company and shall be
subject to and shall be construed consistently with the requirements of Section
422 of the Code. The Company shall have no liability to a Participant, or any
other party, if an Option (or any part thereof) which is intended to be an
Incentive Stock Option is not an Incentive Stock Option.

         (c) EXERCISE PRICE. The Board shall establish the exercise price at the
time each Option is granted and specify it in the applicable option agreement.

                                      -2-
<PAGE>

         (d) DURATION OF OPTIONS. Each Option shall be exercisable at such times
and subject to such terms and conditions as the Board may specify in the
applicable option agreement; provided, however, that no Option will be granted
for a term in excess of ten (10) years.

         (e) EXERCISE OF OPTION. Options may be exercised by delivery to the
Company of a written notice of exercise signed by the proper person or by
another form of notice (including electronic notice) approved by the Board
together with payment in full as specified in Section 5(f) for the number of
shares of Common Stock for which the Option is exercised.

         (f) PAYMENT UPON EXERCISE. Common Stock purchased upon the exercise of
an option granted under the Plan shall be paid for as follows:

                  (1) in cash or by check, payable to the order of the Company;

                  (2) except as the Board may, in its sole discretion, otherwise
provide in an option agreement, (i) delivery of an irrevocable and unconditional
undertaking by a creditworthy broker to deliver promptly to the Company
sufficient funds to pay the exercise price or (ii) delivery by the Participant
to the Company of a copy of irrevocable and unconditional instructions to a
creditworthy broker to deliver promptly to the Company cash or a check
sufficient to pay the exercise price;

                  (3) at such time as the Common Stock is registered under the
Exchange Act, delivery of shares of Common Stock owned by the Participant valued
at their fair market value as determined by (or in a manner approved by) the
Board in good faith ("Fair Market Value"), which Common Stock was owned by the
Participant at least six months prior to such delivery;

                  (4) to the extent permitted by the Board, in its sole
discretion, (i) by delivery of a promissory note of the Participant to the
Company on terms determined by the Board or (ii) by payment of such other lawful
consideration as the Board may determine; or

                  (5) any combination of the above permitted forms of payment.

6.       RESTRICTED STOCK

         (a) GRANTS. The Board may grant Awards entitling recipients to acquire
shares of Common Stock, subject to the right of the Company to repurchase all or
part of such shares at their issue price or other stated or formula price (or to
require forfeiture of such shares if issued at no cost) from the recipient in
the event that conditions specified by the Board in the applicable Award are not
satisfied prior to the end of the applicable restriction period or periods
established by the Board for such Award (each, a "Restricted Stock Award").

         (b) TERMS AND CONDITIONS. The Board shall determine the terms and
conditions of any such Restricted Stock Award, including the conditions for
repurchase (or forfeiture) and the issue price, if any. Any stock certificates
issued in respect of a Restricted Stock Award shall be registered in the name of
the Participant and, unless otherwise determined by the Board, deposited by the
Participant, together with a stock power endorsed in blank, with the Company (or
its designee). At the expiration of the applicable restriction periods, the
Company (or such designee) shall deliver the certificates no longer subject to
such restrictions to the Participant or if the Participant has died, to the
beneficiary designated, in a manner determined by the Board, by a Participant to
receive amounts due or exercise rights of the Participant in the event of the
Participant's death (the "Designated Beneficiary"). In the absence of an
effective designation by a Participant, Designated Beneficiary shall mean the
Participant's estate.

                                      -3-
<PAGE>

7.       OTHER STOCK-BASED AWARDS

         The Board shall have the right to grant other Awards based upon the
Common Stock having such terms and conditions as the Board may determine,
including the grant of shares based upon certain conditions, the grant of
securities convertible into Common Stock and the grant of stock appreciation
rights.

8.       GENERAL PROVISIONS APPLICABLE TO AWARDS

         (a) TRANSFERABILITY OF AWARDS. Except as the Board may otherwise
determine or provide in an Award, Awards shall not be sold, assigned,
transferred, pledged or otherwise encumbered by the person to whom they are
granted, either voluntarily or by operation of law, except by will or the laws
of descent and distribution, and, during the life of the Participant, shall be
exercisable only by the Participant. References to a Participant, to the extent
relevant in the context, shall include references to authorized transferees.

         Notwithstanding the foregoing, a Participant's transfer to a revocable
trust that is solely for the benefit of the Participant and the Participant's
spouse and/or issue during his lifetime and transfer under such trust at the
Participant's death to the trust's intended beneficiaries shall not be deemed to
be prohibited by the foregoing provisions. If any person other than the
Participant, the Participant's then current spouse, and the Participant's issue
shall possess a vested interest in such trust during the lifetime of the
Participant, such interest shall not be recognized hereunder as giving such
person any right the benefit of an Award. In such event the Award shall revest
in the Participant as if such transfer in trust had not occurred. Any Award that
consists of an incentive stock option and that is transferred to a trust as
permitted in this paragraph, and any shares purchased thereunder, are subject to
any applicable rules of the Internal Revenue Code concerning the effects of such
transfers on incentive stock option status.

         (b) DOCUMENTATION. Each Award shall be evidenced by a written
instrument in such form as the Board shall determine. Each Award may contain
terms and conditions in addition to those set forth in the Plan.

         (c) BOARD DISCRETION. Except as otherwise provided by the Plan, each
Award may be made alone or in addition or in relation to any other Award. The
terms of each Award need not be identical, and the Board need not treat
Participants uniformly.

         (d) TERMINATION OF STATUS. The Board shall determine the effect on an
Award of the disability, death, retirement, authorized leave of absence or other
change in the employment or other status of a Participant and the extent to
which, and the period during which, the Participant, the Participant's legal
representative, conservator, guardian or Designated Beneficiary may exercise
rights under the Award.

         (e)      ACQUISITION EVENTS

                  (1) CONSEQUENCES OF ACQUISITION EVENTS. Upon the occurrence of
an Acquisition Event (as defined below), or the execution by the Company of any
agreement with respect to an Acquisition Event, the Board shall take any one or
more of the following actions with respect to then outstanding Awards: (i)
provide that all outstanding Options shall be assumed, or equivalent Options
shall be substituted, by the acquiring or succeeding corporation (or an
affiliate thereof), provided that any such Options substituted for Incentive
Stock Options shall satisfy, in the determination of the Board, the requirements
of Section 424(a) of the Code; (ii) upon written notice to the Participants,
provide that all then unexercised Options will become exercisable in full as of
a specified time (the "Acceleration Time")

                                      -4-
<PAGE>

prior to the Acquisition Event and will terminate immediately prior to the
consummation of such Acquisition Event, except to the extent exercised by the
Participants between the Acceleration Time and the consummation of such
Acquisition Event; (iii) in the event of an Acquisition Event under the terms of
which holders of Common Stock will receive upon consummation thereof a cash
payment for each share of Common Stock surrendered pursuant to such Acquisition
Event (the "Acquisition Price"), provide that all outstanding Options shall
terminate upon consummation of such Acquisition Event and each Participant shall
receive, in exchange therefor, a cash payment equal to the amount (if any) by
which (A) the Acquisition Price multiplied by the number of shares of Common
Stock subject to such outstanding Options (whether or not then exercisable),
exceeds (B) the aggregate exercise price of such Options; (iv) provide that all
Restricted Stock Awards then outstanding shall become free of all restrictions
prior to the consummation of the Acquisition Event; and (v) provide that any
other stock-based Awards outstanding (A) shall become exercisable, realizable or
vested in full, or shall be free of all conditions or restrictions, as
applicable to each such Award, prior to the consummation of the Acquisition
Event, or (B), if applicable, shall be assumed, or equivalent Awards shall be
substituted, by the acquiring or succeeding corporation (or an affiliate
thereof).

         An "Acquisition Event" shall mean: (a) any merger or consolidation
which results in the voting securities of the Company outstanding immediately
prior thereto representing immediately thereafter (either by remaining
outstanding or by being converted into voting securities of the surviving or
acquiring entity) less than 50% of the combined voting power of the voting
securities of the Company or such surviving or acquiring entity outstanding
immediately after such merger or consolidation; (b) any sale of all or
substantially all of the assets of the Company; or (c) the complete liquidation
of the Company.

                  (2) Assumption of Options Upon Certain Events. The Board may
grant Awards under the Plan in substitution for stock and stock-based awards
held by employees of another corporation who become employees of the Company as
a result of a merger or consolidation of the employing corporation with the
Company or the acquisition by the Company of property or stock of the employing
corporation The substitute Awards shall be granted on such terms and conditions
as the Board considers appropriate under the circumstances.

         (f) WITHHOLDING. Each Participant shall pay to the Company, or make
provision satisfactory to the Board for payment of, any taxes required by law to
be withheld in connection with Awards to such Participant no later than the date
of the event creating the tax liability. Except as the Board may otherwise
provide in an Award, Participants may satisfy such tax obligations in whole or
in part by delivery of shares of Common Stock, including shares retained from
the Award creating the tax obligation, valued at their Fair Market Value. The
Company may, to the extent permitted by law, deduct any such tax obligations
from any payment of any kind otherwise due to a Participant.

         (g) AMENDMENT OF AWARD. The Board may amend, modify or terminate any
outstanding Award, including but not limited to, substituting therefor another
Award of the same or a different type, changing the date of exercise or
realization, accelerating the vesting of an Award (and in appropriate cases,
providing that the portion so accelerated be held as restricted stock), and
converting an Incentive Stock Option to a Nonstatutory Stock Option, provided
that the Participant's consent to such action shall be required unless the Board
determines that the action, taking into account any related action, would not
materially and adversely affect the Participant.

         (h) CONDITIONS ON DELIVERY OF STOCK. The Company will not be obligated
to deliver any shares of Common Stock pursuant to the Plan or to remove
restrictions from shares previously delivered under the Plan until (i) all
conditions of the Award have been met or removed to the satisfaction of the
Company, (ii) in the opinion of the Company's counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied,
including any applicable securities laws and any applicable stock exchange or
stock market rules and regulations, and (iii) the Participant has executed and

                                      -5-
<PAGE>

delivered to the Company such representations or agreements as the Company may
consider appropriate to satisfy the requirements of any applicable laws, rules
or regulations.

         (i) ACCELERATION. The Board may at any time provide that any Options
shall become immediately exercisable in full or in part, that any Restricted
Stock Awards shall be free of all restrictions or that any other Awards may
become exercisable in full or in part or free of some or all restrictions or
conditions, or otherwise realizable in full or in part, as the case may be.

9.       MISCELLANEOUS

         (a) NO RIGHT TO EMPLOYMENT OR OTHER STATUS. No person shall have any
claim or right to be granted an Award, and the grant of an Award shall not be
construed as giving a Participant the right to continued employment or any other
relationship with the Company. The Company expressly reserves the right at any
time to dismiss or otherwise terminate its relationship with a Participant free
from any liability or claim under the Plan, except as expressly provided in the
applicable Award.

         (b) NO RIGHTS AS STOCKHOLDER. Subject to the provisions of the
applicable Award, no Participant or Designated Beneficiary shall have any rights
as a stockholder with respect to any shares of Common Stock to be distributed
with respect to an Award until becoming the record holder of such shares.
Notwithstanding the foregoing, in the event the Company effects a split of the
Common Stock by means of a stock dividend and the exercise price of and the
number of shares subject to such Option are adjusted as of the date of the
distribution of the dividend (rather than as of the record date for such
dividend), then an optionee who exercises an Option between the close of
business on the record date for such stock dividend and the close of business on
the distribution date for such stock dividend shall be entitled to receive, on
the distribution date, the stock dividend with respect to the shares of Common
Stock acquired upon such Option exercise, notwithstanding the fact that such
shares were not outstanding as of the close of business on the record date for
such stock dividend.

         (c) EFFECTIVE DATE AND TERM OF PLAN. The Plan shall become effective on
the date on which it is adopted by the Board, but no Award granted to a
Participant designated as subject to Section 162(m) by the Board shall become
exercisable, vested or realizable, as applicable to such Award, unless and until
the Plan has been approved by the Company's stockholders to the extent
stockholder approval is required by Section 162(m). No Awards shall be granted
under the Plan after the completion of ten years from the earlier of (i) the
date on which the Plan was adopted by the Board or (ii) the date the Plan was
approved by the Company's stockholders, but Awards previously granted may extend
beyond that date.

         (d) AMENDMENT OF PLAN. The Board may amend, suspend or terminate the
Plan or any portion thereof at any time, provided that, to the extent required
by Section 162(m), no Award granted to a Participant designated as subject to
Section 162(m) by the Board after the date of such amendment shall become
exercisable, realizable or vested, as applicable to such Award (to the extent
that such amendment to the Plan was required to grant such Award to a particular
Participant), unless and until such amendment shall have been approved by the
Company's stockholders.

         (e) STOCKHOLDER APPROVAL. For purposes of this Plan, stockholder
approval shall mean approval by a vote of the stockholders in accordance with
the requirements of Section 162(m) of the Code.

         (f) GOVERNING LAW. The provisions of the Plan and all Awards made
hereunder shall be governed by and interpreted in accordance with the laws of
the State of Delaware, without regard to any applicable conflicts of law.

                                      -6-

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