Document:

Exhibit
10.5

     

    BEACON
POWER CORPORATION

     

    Restricted
Stock Unit and Option Agreement

     

    This Restricted Stock Unit and Option
Agreement (this “Agreement”), dated as of April 3, 2009
(the “Effective Date”),
is by and between Beacon Power Corporation (the “Company”) and James M.
Spiezio (“Executive”),
an executive officer of the Company.

     

    WHEREAS,
this Agreement is intended to provide Executive compensation in the form of
restricted stock units (or “RSUs”) that convert into
shares of the Company’s common stock, $.01 par value per share (the “Common Stock”);

     

    WHEREAS,
this Agreement is also intended to provide Executive with a non-qualified stock
option to purchase shares of the Common Stock pursuant to the terms and
conditions set forth herein;

     

    NOW
THEREFORE, it is agreed as follows:

     

    ARTICLE
I.           RESTRICTED STOCK UNIT
AWARD

     

    1.1           Restricted
Stock Unit Award.  Subject to the
terms and conditions of this Agreement and pursuant to the Company’s Third
Amended and Restated 1998 Stock Incentive Plan (the “Plan”), the Company hereafter
will grant RSUs to Executive in accordance with the vesting table set forth
below.  On each vesting date set forth below (each a “Vesting Date”), the Company
shall be considered to have awarded RSUs in the indicated amount to the
Executive.

     

    
      
        
          
            
              
                
                  
                    	
                            % of total RSUs Vested

                          	 	
                            Vesting Date

                          	 	
                            RSUs Vesting

                            on Vesting Date

                          	 	 	
                            Total RSUs Vested 

                            to Date

                          	 
	
                            8.33%

                          	 	
                            March
      31, 2009

                          	 	 	1,268	 	 	 	1,268	 
	
                            8.33%

                          	 	
                            June
      30, 2009

                          	 	 	1,268	 	 	 	2,536	 
	
                            8.33%

                          	 	
                            September
      30, 2009

                          	 	 	1,268	 	 	 	3,804	 
	
                            8.33%

                          	 	
                            December
      31, 2009

                          	 	 	1,268	 	 	 	5,072	 
	
                            8.33%

                          	 	
                            March
      31, 2010

                          	 	 	1,268	 	 	 	6,340	 
	
                            8.33%

                          	 	
                            June
      30, 2010

                          	 	 	1,268	 	 	 	7,608	 
	
                            8.33%

                          	 	
                            September
      30, 2010

                          	 	 	1,268	 	 	 	8,876	 
	
                            8.33%

                          	 	
                            December
      31, 2010

                          	 	 	1,268	 	 	 	10,144	 
	
                            8.33%

                          	 	
                            March
      31, 2011

                          	 	 	1,268	 	 	 	11,412	 
	
                            8.33%

                          	 	
                            June
      30, 2011

                          	 	 	1,268	 	 	 	12,680	 
	
                            8.33%

                          	 	
                            September
      30, 2011

                          	 	 	1,268	 	 	 	13,498	 
	
                            8.37%

                          	 	
                            December
      31, 2011

                          	 	 	1,266	 	 	 	15,214	 

                  

                

              

            

          

        

      

    

     

    1.2           Conversion
to Common Stock.  Each vested RSU shall convert into one (1)
share of Common Stock on the applicable Vesting Date; provided, that, if the
applicable Vesting Date occurs during a period in which Executive is (a) subject
to a lock-up agreement restricting Executive’s ability to sell Common Stock in
the open market, (b) restricted from selling Common Stock in the open market
because a trading window is not available, in the opinion of Company, or (c)
trading is otherwise not appropriate, in the reasonable and good faith opinion
of Company, such conversion of vested RSUs into shares of Common Stock shall be
delayed until the date immediately following the expiration of the lock-up
agreement or the opening of a trading window or confirmation by Company that
trading is appropriate, as the case may be; provided, however, that in no event
shall conversion be delayed beyond March 15 of the year following the Vesting
Date year.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
II.         NON-QUALIFIED STOCK OPTION
GRANT

     

    2.1          Grant of
Option.  The Company
hereby grants Executive an option (the “Option”) to purchase, as a
whole or in part, on the terms provided herein and in the Plan the shares (the
“Shares”) of Common
Stock at an exercise price per share, as set forth below:

    

    
      
        
          
            
              
                	
                        Shares:

                      	 	
                        Exercise
      Price:

                      	 
	

                        136,918

                      	 	$	0.49	 

              

            

          

        

      

    

    

    Unless
earlier terminated, the Option shall expire one day before its 10th anniversary
(the “Final Exercise
Date”).  It is intended that the Option shall be a
non-qualified stock option.

    

    2.2          Vesting
Schedule.  Subject to the
other terms of this Agreement regarding the exercisability of the Option, the
Shares shall vest and become exercisable, as follows; provided, however, that as
of each relevant Vesting Date, Executive’s employment with the Company has not
terminated:

    

    
      
        
          
            
              
                
                  
                    	
                            % of total Shares Vested

                          	 	
                            Vesting Date

                          	 	
                            Shares Vesting

                            on Vesting Date

                          	 	 	
                            Total Shares Vested 

                            to Date

                          	 
	
                            8.33%

                          	 	
                            March
      31, 2009

                          	 	 	11,410	 	 	 	11,410	 
	
                            8.33%

                          	 	
                            June
      30, 2009

                          	 	 	11,410	 	 	 	22,820	 
	
                            8.33%

                          	 	
                            September
      30, 2009

                          	 	 	11,410	 	 	 	34,230	 
	
                            8.33%

                          	 	
                            December
      31, 2009

                          	 	 	11,410	 	 	 	45,640	 
	
                            8.33%

                          	 	
                            March
      31, 2010

                          	 	 	11,410	 	 	 	57,050	 
	
                            8.33%

                          	 	
                            June
      30, 2010

                          	 	 	11,410	 	 	 	68,460	 
	
                            8.33%

                          	 	
                            September
      30, 2010

                          	 	 	11,410	 	 	 	79,870	 
	
                            8.33%

                          	 	
                            December
      31, 2010

                          	 	 	11,410	 	 	 	91,280	 
	
                            8.33%

                          	 	
                            March
      31, 2011

                          	 	 	11,410	 	 	 	102,690	 
	
                            8.33%

                          	 	
                            June
      30, 2011

                          	 	 	11,410	 	 	 	114,100	 
	
                            8.33%

                          	 	
                            September
      30, 2011

                          	 	 	11,410	 	 	 	125,510	 
	
                            8.37%

                          	 	
                            December
      31, 2011

                          	 	 	11,408	 	 	 	136,918	 

                  

                

              

            

          

        

      

    

    

    The right
of exercise shall be cumulative so that to the extent the Option is not
exercised in any period to the maximum extent permissible it shall continue to
be exercisable, as a whole or in part, with respect to all Shares for which it
is vested until the earlier of the Final Exercise Date or the termination of the
Option under this Agreement or the Plan.

    

    2.3          Exercise of
Option.

    

    (a)           Form of
Exercise.  Each election to exercise the Option shall be in
writing, signed by Executive, and received by the Company at its principal
office, accompanied by a copy of this Agreement and by payment in full as provided
below.  Executive may purchase less than the number of Shares covered
by the Option, provided that no partial exercise of the Option may be for any
fractional share or for fewer than 100 whole shares of Common
Stock.  Payment shall be as follows:

    

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

    

    (ii)           in
the sole discretion of the authorized administrator of the Plan, (A) 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 (B)
delivery by Executive 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;

     

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    (iii)          delivery
of shares of Common Stock owned by Executive valued at fair market value, as
determined in the sole discretion of the board of directors of the Company,
which Common Stock was owned by Executive at least six months prior to such
delivery;

    

    (iv)          to
the extent permitted by the authorized administrator of the Plan, in its sole
discretion, by payment of such other lawful consideration as the authorized
administrator of the Plan may determine; or

    

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

    

    A certificate or certificates for the
Shares purchased shall be issued by the Company after the exercise of the Option
and payment therefor, including the provision for any federal and state
withholding taxes, and other applicable employment taxes.

    

    (b)          
Continuous
Relationship with the Company Required.  Except as otherwise
provided in Article III, the Option may not be exercised unless Executive, at
the time he exercises the Option, is, and has been at all times since the
Effective Date, an employee of the Company or any parent or subsidiary of the
Company as defined in Section 424(e) or (f) of the Internal Revenue Code of
1986, as amended (the “Code”).

    

    ARTICLE
III.        TERMINATION OF
EMPLOYMENT

     

    3.1          Termination
of Employment.  

     

    (a)           General.  Except
as indicated below in (b), if Executive terminates his employment for any
reason, including by resignation, or if the Company terminates his employment
with or without a Breach of Conduct (as defined below), Executive may retain all
RSUs and Shares underlying the Option that have vested before the Termination
Notice Date (as defined below).  However, he will not be entitled to
receive and shall forfeit any interest in RSUs and Shares underlying the Option
that are scheduled to be vested after the Termination Notice Date.

     

    The
“Termination Notice
Date” means the date on which Executive resigns (or if earlier, the date
on which Executive notifies Company that Executive will resign), or the date on
which Company terminates the employment for or without a Breach of Conduct (or
if earlier, the date on which the Company notifies Executive that employment
will be so terminated).

     

    (b)           Special Rules for
Options.  In the case of termination of employment by reason of
death, disability (as defined under the Executive's employment agreement),
resignation or without Breach of Conduct, the vested Shares underlying the
Option will expire if not exercised within 365 days after the Termination Notice
Date.  In the case of termination of employment for Breach of Conduct,
all vested Shares underlying the Option will expire immediately on the written
declaration of the authorized administrator of the Plan.

    

    Such
declaration shall be communicated in writing to Executive.  In
addition, the Company may, in its sole discretion, by written notice, demand
that any or all stock certificates for Shares acquired pursuant to the exercise
of the Option, or any profit realized from the sale or transfer of such Shares,
be returned to the Company within five days of receipt of such notice, and any
exercise price paid by Executive shall be returned to Executive by the Company
immediately thereafter, without interest.  The Company shall be
entitled to reimbursement of reasonable attorney fees and expenses incurred in
seeking to enforce its rights under this paragraph.

    

    “Breach of Conduct” shall mean
activities which constitute a serious breach of conduct that, only if possible
to cure as determined by the authorized administrator of the Plan in its sole
discretion, is not cured within 30 days after receipt of written notice to
Executive, including, but not limited to: (i) the disclosure or misuse of
confidential information, trade secrets or other intellectual property of the
Company or third parties who have disclosed such information, secrets or
intellectual property to the Company or a company that controls, is controlled
by or is under common control with the Company (collectively, an “Affiliate”), (ii) activities
in violation of the policies of the Company or any Affiliate, including without
limitation, the Company’s insider trading policy; (iii) the violation or breach
of any material provision in any applicable contract or agreement between
Executive and the Company (or an Affiliate), including, for example, a violation
or breach which is grounds for discharge for cause; (iv) engaging in conduct
relating to Executive’s employment for which either criminal or civil penalties
have been sought; (v) engaging in activities which adversely affect or which are
contrary or harmful to the interests of the Company or Affiliate, or (vi) in the
event that Executive and Company have not signed a noncompetition agreement
(which therefore otherwise would govern issues of noncompetition), engaging in
competition with the Company or any Affiliate or soliciting their respective
employees or customers on behalf of some other entity during employment or
within one year following termination of employment with the Company or
Affiliate.  The determination of Breach of Conduct shall be determined
by the authorized administrator of the Plan in good faith and in its sole
discretion.

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

    ARTICLE
IV.       GENERAL PROVISIONS

    

    4.1          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 authorized administrator of the Plan shall take any
one or more of the following actions with respect to the RSUs and the Option:
(i) provide that the RSUs and/or the Option shall be assumed, or equivalent
equity compensation shall be substituted, by the acquiring or succeeding
corporation (or an affiliate thereof); (ii) upon written notice to Executive,
provide that any portion of the RSUs that are vested but not converted and/or
any portion of the Shares underlying the Option that are vested but not
exercised will become converted or exercisable, as the case may be, in full as
of a specified time (the “Acceleration Time”) prior to
the Acquisition Event and will terminate immediately prior to the consummation
of such Acquisition Event, except to the extent exercised by Executive 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 (A) the unvested RSUs shall terminate upon consummation of such Acquisition
Event and Executive shall receive, in exchange therefor, a cash payment equal to
the amount equal to the Acquisition Price multiplied by the number of shares of
Common Stock subject to such unvested RSUs, (B) the Option shall terminate upon
consummation of such Acquisition Event and Executive shall receive, in exchange
therefor, a cash payment equal to the amount (if any) by which (x) the
Acquisition Price multiplied by the number of shares of Common Stock subject to
the Option (whether or not then convertible or exercisable), exceeds (y) the
aggregate exercise price of the Option; and (iv) provide that the unvested RSUs
and/or the Option (A) shall become exercisable, realizable or vested in full, or
shall be free of all conditions or restrictions, as applicable to the Option,
prior to the consummation of the Acquisition Event, or (B), if applicable, shall
be assumed, or equivalent options 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.

    

    4.2          Acceleration.  The
authorized administrator of the Plan may at any time provide that the Option
shall become immediately exercisable in full or in part, that the Option 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.

    

    4.3          Golden
Parachute Payment Excise Tax Protection.  In the event that the
excise tax imposed by Section 4999 of 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 (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.

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

    

    ARTICLE
V.         TRANSFERABILITY

     

    5.1           Nontransferability
of Agreement, RSUs and the Option.  This Agreement, the RSUs
and the Option may not be sold, assigned, transferred, pledged or otherwise
encumbered by Executive, either voluntarily or by operation of law, except by
will or the laws of descent and distribution.  Notwithstanding the
foregoing, Executive’s transfer to a revocable trust that is solely for the
benefit of Executive and Executive’s spouse and/or issue during Executive’s
lifetime and transfer under such trust at Executive’s death to the trust’s
intended beneficiaries shall not be deemed to be prohibited by the foregoing
provisions.  If any person other than Executive, Executive’s then
current spouse, and Executive’s issue shall possess a vested interest in such
trust during the lifetime of Executive, such interest shall not be recognized
hereunder as giving such person any right to the benefit of any RSUs or the
shares of Common Stock issuable upon conversion thereof.  In such
event the RSUs shall revest in Executive as if such transfer in trust had not
occurred.  During the lifetime of Executive, the RSUs and the Option
shall be exercisable only by Executive.

     

    ARTICLE
VI.        MISCELLANEOUS

     

    6.1           Provisions
of the Plan.  This Agreement is subject to the provisions of
the Plan, a copy of which Executive hereby acknowledges receiving with this
Agreement.

    

    6.2           No Right
to Continued Employment.  This Agreement
shall not confer upon Executive any right with respect to continuance of
employment by the Company, nor shall it interfere in any way with the right of
the Company to terminate Executive’s employment at any time.

    

    6.3           No Right
as Stockholder.  Executive shall not be entitled to vote any
shares of Common Stock that may be acquired through conversion of RSUs or the
Shares underlying the Option to Common Stock, shall not receive any dividends
attributed to such shares of Common Stock, and shall have no other rights of a
stockholder with respect to the RSUs and/or the Option unless and until the
Common Stock issuable upon conversion of the RSUs has been delivered to
Executive or the Option is duly exercised by Executive and the Common Stock is
issued.

    

    6.4           Compliance
with Law and Regulations.  This Agreement and the obligation of
the Company to issue, sell and deliver shares of Common Stock hereunder shall be
subject to all applicable federal and state laws, rules and regulations and to
such approvals by any government or regulatory agency as may be
required.  The Company shall not be required to issue or deliver any
certificates for Shares or to remove restrictions from shares of Common Stock
previously delivered until (a) the listing of such Shares on any stock exchange
on which the Shares may then be listed, (b) all conditions have been met or
removed to the satisfaction of the Company, (c) 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, (d)
Executive has executed and 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 and (e) the completion of any
registration or qualification of such Shares under any federal or state law, or
any rule or regulation of any government body which the Company shall, in its
sole discretion, determine to be necessary or advisable.  Moreover,
the Option and the RSUs may not be exercised or converted to Common Stock if its
exercise or conversion, or the receipt of Shares pursuant thereto, would be
contrary to applicable law.

    

    6.5           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, the number and class of
securities each RSU shall be convertible into under this Agreement and the
number of Shares underlying the Option shall be appropriately adjusted by
Company to the extent the authorized administrator of the Plan shall determine,
in good faith, that such an adjustment is necessary and
appropriate.

    

    6.6           Withholding.  Executive
shall pay to Company, or make provision satisfactory to Company for payment of,
any taxes required by law to be withheld in
connection with this Agreement no later than each Vesting Date upon which
Company vests RSUs to Executive.  No shares of Common Stock will be
issued pursuant to the exercise of the Option unless and until Executive pays to
the Company, or makes provision satisfactory to the Company for payment of, any
federal, state or local withholding taxes required by law to be withheld in
respect of the Option.  Executive may satisfy such tax obligations by
delivering to Company cash in the form of wire transfer or check and Company
may, to the extent permitted by law, deduct any such tax obligations from any
payment of any kind otherwise due to Executive.

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

    

    

    6.7           Common
Stock Reserved.  Company shall at
all times during the term of this Agreement reserve and keep available such
number of shares of Common Stock as will be sufficient to satisfy the
requirements of this Agreement.

    

    6.8           Notices.  Any
notice hereunder to the Company shall be addressed to Beacon Power Corporation,
Attn: Compensation Committee, 234 Ballardvale Street, Wilmington, MA 01887, and
any notice hereunder to Executive shall be sent to the address reflected on the
payroll records of the Company, subject to the right of either party to
designate at any time hereafter in writing some other address.

    

    6.9           Delaware
Law to Govern.  This Agreement shall be construed and
administered in accordance with and governed by the laws of the State of
Delaware (without giving effect to any conflict or choice of laws provisions
thereof that would cause the application of the domestic substantive laws of any
other jurisdiction).

    

    6.10        Certain
Special Rules.  To the extent
that this Agreement and the grant of the RSUs and the Option hereunder become
subject to the provisions of Section 409A of the Code, the Company and Executive
agree that the RSUs and the Option may be amended, modified, rescinded or
substituted by the Company with an award of comparable economic value as
required to maintain compliance with the provisions of Section 409A of the
Code.

    

    6.11        Amendment
of Agreement.  Company may
amend, modify or
terminate this Agreement, provided that Executive’s consent to such action shall
be required unless Company determines that the action, taking into account any
related action, would not materially and adversely affect
Executive.

    

    6.12        Successors
and Assigns; No Third Party Beneficiaries.  Except as otherwise
expressly provided herein, the provisions hereof shall inure to the benefit of,
and be binding upon, the successors, assigns, heirs, executors and
administrators of the parties hereto.  There are no third party
beneficiaries of this Agreement.

    

    6.13        Entire
Agreement.  This Agreement and the Plan constitute the full and
entire understanding and agreement of the parties with regard to the RSUs and
the Option and supersede in their entirety all other prior agreements, whether
oral or written, with respect thereto.

    

    6.14        Severability; Titles and
Subtitles; Gender; Singular and Plural; Counterparts;
Facsimile.

     

    (a)           In
case any provision of this Agreement shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions of this
Agreement shall not in any way be affected or impaired thereby.

     

    (b)           The
titles of the sections and subsections of this Agreement are for convenience of
reference only and are not to be considered in construing this
Agreement.

     

    (c)           The
use of any gender in this Agreement shall be deemed to include the other
genders, and the use of the singular in this Agreement shall be deemed to
include the plural (and vice versa), wherever appropriate.

     

    (d)           This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together constitute one instrument.

     

    (e)           Counterparts
of this Agreement (or applicable signature pages hereof) that are manually
signed and delivered by facsimile transmission shall be deemed to constitute
signed original counterparts hereof and shall bind the parties signing and
delivering in such manner.

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the parties have
executed this Agreement as a sealed instrument as of the Effective
Date.

     

    
      
        
          
            
              
                	
                        EXECUTIVE:

                      	 	
                        BEACON
      POWER CORPORATION

                      
	 
      	 	 
      
	
                        By:

                      	
                        /s/ James M. Spiezio

                      	 	
                        By:

                      	
                        /s/ F. William Capp

                      
	 
      	
                        Signature

                      	 	 
      	
                        Signature

                      
	 
      	 	 
      
	
                        Name:  James
      M. Spiezio

                      	 	
                        Name:  F.
      William Capp

                      
	
                        Address:

                      	 	
                        Title:  President
      and Chief Executive
Officer

                      

              

            

          

        

      

    

    
      
         

      

      
        - 7
-Exhibit
10.6

    

     

    BEACON
POWER CORPORATION

     

    Restricted
Stock Unit and Option Agreement

     

    This Restricted Stock Unit and Option
Agreement (this “Agreement”), dated as of April 3, 2009
(the “Effective Date”),
is by and between Beacon Power Corporation (the “Company”) and Matthew L.
Lazarewicz (“Executive”), an executive
officer of the Company.

     

    WHEREAS,
this Agreement is intended to provide Executive compensation in the form of
restricted stock units (or “RSUs”) that convert into
shares of the Company’s common stock, $.01 par value per share (the “Common Stock”);

     

     

    WHEREAS,
this Agreement is also intended to provide Executive with a non-qualified stock
option to purchase shares of the Common Stock pursuant to the terms and
conditions set forth herein;

     

    NOW
THEREFORE, it is agreed as follows:

     

    ARTICLE
I.          RESTRICTED STOCK UNIT
AWARD

     

    1.1           Restricted
Stock Unit Award.  Subject to the
terms and conditions of this Agreement and pursuant to the Company’s Third
Amended and Restated 1998 Stock Incentive Plan (the “Plan”), the Company hereafter
will grant RSUs to Executive in accordance with the vesting table set forth
below.  On each vesting date set forth below (each a “Vesting Date”), the Company
shall be considered to have awarded RSUs in the indicated amount to the
Executive.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                % of total RSUs Vested

                              	 	
                                Vesting Date

                              	 	
                                RSUs Vesting

                                on Vesting Date

                              	 	
                                Total RSUs Vested

                                to Date

                              
	
                                8.33%

                              	 	
                                March
      31, 2009

                              	 	
                                1,137

                              	 	
                                1,137

                              
	
                                8.33%

                              	 	
                                June
      30, 2009

                              	 	
                                1,137

                              	 	
                                2,274

                              
	
                                8.33%

                              	 	
                                September
      30, 2009

                              	 	
                                1,137

                              	 	
                                3,411

                              
	
                                8.33%

                              	 	
                                December
      31, 2009

                              	 	
                                1,137

                              	 	
                                4,548

                              
	
                                8.33%

                              	 	
                                March
      31, 2010

                              	 	
                                1,137

                              	 	
                                5,685

                              
	
                                8.33%

                              	 	
                                June
      30, 2010

                              	 	
                                1,137

                              	 	
                                6,822

                              
	
                                8.33%

                              	 	
                                September
      30, 2010

                              	 	
                                1,137

                              	 	
                                7,959

                              
	
                                8.33%

                              	 	
                                December
      31, 2010

                              	 	
                                1,137

                              	 	
                                9,096

                              
	
                                8.33%

                              	 	
                                March
      31, 2011

                              	 	
                                1,137

                              	 	
                                10,223

                              
	
                                8.33%

                              	 	
                                June
      30, 2011

                              	 	
                                1,137

                              	 	
                                11,370

                              
	
                                8.33%

                              	 	
                                September
      30, 2011

                              	 	
                                1,137

                              	 	
                                12,507

                              
	
                                8.37%

                              	 	
                                December
      31, 2011

                              	 	
                                1,132

                              	 	
                                13,639

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    1.2           Conversion
to Common Stock.  Each vested RSU shall convert into one (1)
share of Common Stock on the applicable Vesting Date; provided, that, if the
applicable Vesting Date occurs during a period in which Executive is (a) subject
to a lock-up agreement restricting Executive’s ability to sell Common Stock in
the open market, (b) restricted from selling Common Stock in the open market
because a trading window is not available, in the opinion of Company, or (c)
trading is otherwise not appropriate, in the reasonable and good faith opinion
of Company, such conversion of vested RSUs into shares of Common Stock shall be
delayed until the date immediately following the expiration of the lock-up
agreement or the opening of a trading window or confirmation by Company that
trading is appropriate, as the case may be, provided, however, that in no event
shall conversion be delayed beyond March 15 of the year following the Vesting
Date year.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
II.         NON-QUALIFIED STOCK OPTION
GRANT

     

    2.1          Grant of
Option.  The Company
hereby grants Executive an option (the “Option”) to purchase, as a
whole or in part, on the terms provided herein and in the Plan the shares (the
“Shares”) of Common
Stock at an exercise price per share, as set forth below:

     

    
      
        
          
            
              
                
                  
                    
                      	
                              Shares:

                            	 	
                              Exercise Price:

                            	 
	
                              122,911

                            	 	$	0.49	 

                    

                  

                

              

            

          

           

        

      

    

    Unless
earlier terminated, the Option shall expire one day before its 10th anniversary
(the “Final Exercise
Date”).  It is intended that the Option shall be a
non-qualified stock option.

    

    2.2          Vesting
Schedule.  Subject to the
other terms of this Agreement regarding the exercisability of the Option, the
Shares shall vest and become exercisable, as follows; provided, however, that as
of each relevant Vesting Date, Executive’s employment with the Company has not
terminated:

    

    
      
        
          
            
              
                
                  
                    
                      	
                              % of total Shares Vested

                            	 	
                              Vesting Date

                            	 	
                              Shares Vesting

                              on Vesting Date

                            	 	
                              Total Shares Vested

                              to Date

                            
	
                              8.33%

                            	 	
                              March
      31, 2009

                            	 	
                              10,243

                            	 	
                              10,243

                            
	
                              8.33%

                            	 	
                              June
      30, 2009

                            	 	
                              10,243

                            	 	
                              20,486

                            
	
                              8.33%

                            	 	
                              September
      30, 2009

                            	 	
                              10,243

                            	 	
                              30,729

                            
	
                              8.33%

                            	 	
                              December
      31, 2009

                            	 	
                              10,243

                            	 	
                              40,972

                            
	
                              8.33%

                            	 	
                              March
      31, 2010

                            	 	
                              10,243

                            	 	
                              51,215

                            
	
                              8.33%

                            	 	
                              June
      30, 2010

                            	 	
                              10,243

                            	 	
                              61,458

                            
	
                              8.33%

                            	 	
                              September
      30, 2010

                            	 	
                              10,243

                            	 	
                              71,701

                            
	
                              8.33%

                            	 	
                              December
      31, 2010

                            	 	
                              10,243

                            	 	
                              81,944

                            
	
                              8.33%

                            	 	
                              March
      31, 2011

                            	 	
                              10,243

                            	 	
                              92,187

                            
	
                              8.33%

                            	 	
                              June
      30, 2011

                            	 	
                              10,243

                            	 	
                              102,430

                            
	
                              8.33%

                            	 	
                              September
      30, 2011

                            	 	
                              10,243

                            	 	
                              112,673

                            
	
                              8.37%

                            	 	
                              December
      31, 2011

                            	 	
                              10,238

                            	 	
                              122,911

                            

                    

                  

                

              

            

          

        

      

    

    

    The right
of exercise shall be cumulative so that to the extent the Option is not
exercised in any period to the maximum extent permissible it shall continue to
be exercisable, as a whole or in part, with respect to all Shares for which it
is vested until the earlier of the Final Exercise Date or the termination of the
Option under this Agreement or the Plan.

    

    2.3          Exercise of
Option.

    

    (a)          
Form of
Exercise.  Each election to exercise the Option shall be in
writing, signed by Executive, and received by the Company at its principal
office, accompanied by a copy of this Agreement and by payment in full as provided
below.  Executive may purchase less than the number of Shares covered
by the Option, provided that no partial exercise of the Option may be for any
fractional share or for fewer than 100 whole shares of Common
Stock.  Payment shall be as follows:

    

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

    

    (ii)          in
the sole discretion of the authorized administrator of the Plan, (A) 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 (B)
delivery by Executive 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;

     

    
      
        
        

      

      
        - 2 -

        
          

        

      

      
        
        

      

    

    

    (iii)         delivery
of shares of Common Stock owned by Executive valued at fair market value, as
determined in the sole discretion of the board of directors of the Company,
which Common Stock was owned by Executive at least six months prior to such
delivery;

    

    (iv)         to
the extent permitted by the authorized administrator of the Plan, in its sole
discretion, by payment of such other lawful consideration as the authorized
administrator of the Plan may determine; or

    

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

    

    A certificate or certificates for the
Shares purchased shall be issued by the Company after the exercise of the Option
and payment therefor, including the provision for any federal and state
withholding taxes, and other applicable employment taxes.

    

    (b)         
Continuous
Relationship with the Company Required.  Except as otherwise
provided in Article III, the Option may not be exercised unless Executive, at
the time he exercises the Option, is, and has been at all times since the
Effective Date, an employee of the Company or any parent or subsidiary of the
Company as defined in Section 424(e) or (f) of the Internal Revenue Code of
1986, as amended (the “Code”).

    

    ARTICLE
III.       TERMINATION OF
EMPLOYMENT

     

    3.1          Termination
of Employment.  

     

    (a)           General.  Except
as indicated below in (b), if Executive terminates his employment for any
reason, including by resignation, or if the Company terminates his employment
with or without a Breach of Conduct (as defined below), Executive may retain all
RSUs and Shares underlying the Option that have vested before the Termination
Notice Date (as defined below).  However, he will not be entitled to
receive and shall forfeit any interest in RSUs and Shares underlying the Option
that are scheduled to be vested after the Termination Notice Date.

     

    The “Termination Notice Date”
means the date on which Executive resigns (or if earlier, the date on which
Executive notifies Company that Executive will resign), or the date on which
Company terminates the employment for or without a Breach of Conduct (or if
earlier, the date on which the Company notifies Executive that employment will
be so terminated).

     

    (b)           Special Rules for
Options.  In the case of termination of employment by reason of
death, disability (as defined under the Executive's employment agreement),
resignation or without Breach of Conduct, the vested Shares underlying the
Option will expire if not exercised within 365 days after the Termination Notice
Date.  In the case of termination of employment for Breach of Conduct,
all vested Shares underlying the Option will expire immediately on the written
declaration of the authorized administrator of the Plan.

     

    Such
declaration shall be communicated in writing to Executive.  In
addition, the Company may, in its sole discretion, by written notice, demand
that any or all stock certificates for Shares acquired pursuant to the exercise
of the Option, or any profit realized from the sale or transfer of such Shares,
be returned to the Company within five days of receipt of such notice, and any
exercise price paid by Executive shall be returned to Executive by the Company
immediately thereafter, without interest.  The Company shall be
entitled to reimbursement of reasonable attorney fees and expenses incurred in
seeking to enforce its rights under this paragraph.

    

    “Breach of Conduct” shall mean
activities which constitute a serious breach of conduct that, only if possible
to cure as determined by the authorized administrator of the Plan in its sole
discretion, is not cured within 30 days after receipt of written notice to
Executive, including, but not limited to: (i) the disclosure or misuse of
confidential information, trade secrets or other intellectual property of the
Company or third parties who have disclosed such information, secrets or
intellectual property to the Company or a company that controls, is controlled
by or is under common control with the Company (collectively, an “Affiliate”), (ii) activities
in violation of the policies of the Company or any Affiliate, including without
limitation, the Company’s insider trading policy; (iii) the violation or breach
of any material provision in any applicable contract or agreement between
Executive and the Company (or an Affiliate), including, for example, a violation
or breach which is grounds for discharge for cause; (iv) engaging in conduct
relating to Executive’s employment for which either criminal or civil penalties
have been sought; (v) engaging in activities which adversely affect or which are
contrary or harmful to the interests of the Company or Affiliate, or (vi) in the
event that Executive and Company have not signed a noncompetition agreement
(which therefore otherwise would govern issues of noncompetition), engaging in
competition with the Company or any Affiliate or soliciting their respective
employees or customers on behalf of some other entity during employment or
within one year following termination of employment with the Company or
Affiliate.  The determination of Breach of Conduct shall be determined
by the authorized administrator of the Plan in good faith and in its sole
discretion.

     

    
      
        
        

      

      
        - 3 -

        
          

        

      

      
        
        

      

    

    

    ARTICLE
IV.       GENERAL PROVISIONS

    

    4.1          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 authorized administrator of the Plan shall take any
one or more of the following actions with respect to the RSUs and the Option:
(i) provide that the RSUs and/or the Option shall be assumed, or equivalent
equity compensation shall be substituted, by the acquiring or succeeding
corporation (or an affiliate thereof); (ii) upon written notice to Executive,
provide that any portion of the RSUs that are vested but not converted and/or
any portion of the Shares underlying the Option that are vested but not
exercised will become converted or exercisable, as the case may be, in full as
of a specified time (the “Acceleration Time”) prior to
the Acquisition Event and will terminate immediately prior to the consummation
of such Acquisition Event, except to the extent exercised by Executive 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 (A) the unvested RSUs shall terminate upon consummation of such Acquisition
Event and Executive shall receive, in exchange therefor, a cash payment equal to
the amount equal to the Acquisition Price multiplied by the number of shares of
Common Stock subject to such unvested RSUs, (B) the Option shall terminate upon
consummation of such Acquisition Event and Executive shall receive, in exchange
therefor, a cash payment equal to the amount (if any) by which (x) the
Acquisition Price multiplied by the number of shares of Common Stock subject to
the Option (whether or not then convertible or exercisable), exceeds (y) the
aggregate exercise price of the Option; and (iv) provide that the unvested RSUs
and/or the Option (A) shall become exercisable, realizable or vested in full, or
shall be free of all conditions or restrictions, as applicable to the Option,
prior to the consummation of the Acquisition Event, or (B), if applicable, shall
be assumed, or equivalent options 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.

    

    4.2          Acceleration.  The
authorized administrator of the Plan may at any time provide that the Option
shall become immediately exercisable in full or in part, that the Option 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.

    

    4.3          Golden
Parachute Payment Excise Tax Protection.  In the event that the
excise tax imposed by Section 4999 of 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 (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.

     

    
      
        
        

      

      
        - 4 -

        
          

        

      

      
        
        

      

    

    

    ARTICLE
V.        TRANSFERABILITY

     

    5.1          Nontransferability
of Agreement, RSUs and the Option.  This Agreement, the RSUs
and the Option may not be sold, assigned, transferred, pledged or otherwise
encumbered by Executive, either voluntarily or by operation of law, except by
will or the laws of descent and distribution.  Notwithstanding the
foregoing, Executive’s transfer to a revocable trust that is solely for the
benefit of Executive and Executive’s spouse and/or issue during Executive’s
lifetime and transfer under such trust at Executive’s death to the trust’s
intended beneficiaries shall not be deemed to be prohibited by the foregoing
provisions.  If any person other than Executive, Executive’s then
current spouse, and Executive’s issue shall possess a vested interest in such
trust during the lifetime of Executive, such interest shall not be recognized
hereunder as giving such person any right to the benefit of any RSUs or the
shares of Common Stock issuable upon conversion thereof.  In such
event the RSUs shall revest in Executive as if such transfer in trust had not
occurred.  During the lifetime of Executive, the RSUs and the Option
shall be exercisable only by Executive.

     

    ARTICLE
VI.       MISCELLANEOUS

     

    6.1          Provisions
of the Plan.  This Agreement is subject to the provisions of
the Plan, a copy of which Executive hereby acknowledges receiving with this
Agreement.

    

    6.2          No Right
to Continued Employment.  This Agreement
shall not confer upon Executive any right with respect to continuance of
employment by the Company, nor shall it interfere in any way with the right of
the Company to terminate Executive’s employment at any time.

    

    6.3          No Right
as Stockholder.  Executive shall not be entitled to vote any
shares of Common Stock that may be acquired through conversion of RSUs or the
Shares underlying the Option to Common Stock, shall not receive any dividends
attributed to such shares of Common Stock, and shall have no other rights of a
stockholder with respect to the RSUs and/or the Option unless and until the
Common Stock issuable upon conversion of the RSUs has been delivered to
Executive or the Option is duly exercised by Executive and the Common Stock is
issued.

    

    6.4          Compliance
with Law and Regulations.  This Agreement and the obligation of
the Company to issue, sell and deliver shares of Common Stock hereunder shall be
subject to all applicable federal and state laws, rules and regulations and to
such approvals by any government or regulatory agency as may be
required.  The Company shall not be required to issue or deliver any
certificates for Shares or to remove restrictions from shares of Common Stock
previously delivered until (a) the listing of such Shares on any stock exchange
on which the Shares may then be listed, (b) all conditions have been met or
removed to the satisfaction of the Company, (c) 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, (d)
Executive has executed and 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 and (e) the completion of any
registration or qualification of such Shares under any federal or state law, or
any rule or regulation of any government body which the Company shall, in its
sole discretion, determine to be necessary or advisable.  Moreover,
the Option and the RSUs may not be exercised or converted to Common Stock if its
exercise or conversion, or the receipt of Shares pursuant thereto, would be
contrary to applicable law.

    

    6.5          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, the number and class of
securities each RSU shall be convertible into under this Agreement and the
number of Shares underlying the Option shall be appropriately adjusted by
Company to the extent the authorized administrator of the Plan shall determine,
in good faith, that such an adjustment is necessary and
appropriate.

    

    6.6          Withholding.  Executive
shall pay to Company, or make provision satisfactory to Company for payment of,
any taxes required by law to be withheld in
connection with this Agreement no later than each Vesting Date upon which
Company vests RSUs to Executive.  No shares of Common Stock will be
issued pursuant to the exercise of the Option unless and until Executive pays to
the Company, or makes provision satisfactory to the Company for payment of, any
federal, state or local withholding taxes required by law to be withheld in
respect of the Option.  Executive may satisfy such tax obligations by
delivering to Company cash in the form of wire transfer or check and Company
may, to the extent permitted by law, deduct any such tax obligations from any
payment of any kind otherwise due to Executive.

     

    
      
        
        

      

      
        - 5 -

        
          

        

      

      
        
        

      

    

    

    6.7          Common
Stock Reserved.  Company shall at
all times during the term of this Agreement reserve and keep available such
number of shares of Common Stock as will be sufficient to satisfy the
requirements of this Agreement.

    

    6.8          Notices.  Any
notice hereunder to the Company shall be addressed to Beacon Power Corporation,
Attn: Compensation Committee, 234 Ballardvale Street, Wilmington, MA 01887, and
any notice hereunder to Executive shall be sent to the address reflected on the
payroll records of the Company, subject to the right of either party to
designate at any time hereafter in writing some other address.

    

    6.9          Delaware
Law to Govern.  This Agreement shall be construed and
administered in accordance with and governed by the laws of the State of
Delaware (without giving effect to any conflict or choice of laws provisions
thereof that would cause the application of the domestic substantive laws of any
other jurisdiction).

    

    6.10        Certain
Special Rules.  To the extent
that this Agreement and the grant of the RSUs and the Option hereunder become
subject to the provisions of Section 409A of the Code, the Company and Executive
agree that the RSUs and the Option may be amended, modified, rescinded or
substituted by the Company with an award of comparable economic value as
required to maintain compliance with the provisions of Section 409A of the
Code.

    

    6.11        Amendment
of Agreement.  Company may
amend, modify or
terminate this Agreement, provided that Executive’s consent to such action shall
be required unless Company determines that the action, taking into account any
related action, would not materially and adversely affect
Executive.

    

    6.12        Successors
and Assigns; No Third Party Beneficiaries.  Except as otherwise
expressly provided herein, the provisions hereof shall inure to the benefit of,
and be binding upon, the successors, assigns, heirs, executors and
administrators of the parties hereto.  There are no third party
beneficiaries of this Agreement.

    

    6.13        Entire
Agreement.  This Agreement and the Plan constitute the full and
entire understanding and agreement of the parties with regard to the RSUs and
the Option and supersede in their entirety all other prior agreements, whether
oral or written, with respect thereto.

    

    6.14        Severability; Titles and
Subtitles; Gender; Singular and Plural; Counterparts;
Facsimile.

     

    (a)           In
case any provision of this Agreement shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions of this
Agreement shall not in any way be affected or impaired thereby.

     

    (b)           The
titles of the sections and subsections of this Agreement are for convenience of
reference only and are not to be considered in construing this
Agreement.

     

    (c)           The
use of any gender in this Agreement shall be deemed to include the other
genders, and the use of the singular in this Agreement shall be deemed to
include the plural (and vice versa), wherever appropriate.

     

    (d)           This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together constitute one instrument.

     

    (e)           Counterparts
of this Agreement (or applicable signature pages hereof) that are manually
signed and delivered by facsimile transmission shall be deemed to constitute
signed original counterparts hereof and shall bind the parties signing and
delivering in such manner.

     

    
      
        
        

      

      
        - 6 -

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the parties have
executed this Agreement as a sealed instrument as of the Effective
Date.

     

    
      
        
          	
                  EXECUTIVE:

                	 
      	
                  BEACON
      POWER CORPORATION

                
	 	 	 
	
                  By:

                	
                  /s/ Matthew L. Lazarewicz

                	 
      	
                  By:

                	
                  /s/ F. William Capp

                
	 
      	
                  Signature

                	 
      	 
      	
                  Signature

                
	 
      	 
      	 
      
	
                  Name:  Matthew
      L. Lazarewicz

                	 
      	
                  Name:  F.
      William Capp

                
	
                  Address:

                	 
      	
                  Title:  President
      and Chief Executive
Officer

                

        

      

    

    

    
      
        
        

      

      
        - 7 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]