Document:

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                                                                    Exhibit 10.2

                             EMPLOYMENT AGREEMENT

     This Employment Agreement (the "Agreement") is entered into by and between
BSST, LLC, a Delaware limited liability company (the "Company"), and Dr. Lon E.
Bell (the "Employee") as of the ____ day of _______________. [to be entered upon
exercise of Amerigon stock option]

I.   EMPLOYMENT.
     ----------

     The Company hereby employs Employee and Employee hereby accepts such
employment, upon the terms and conditions hereinafter set forth, from ____ ___,
____, to and including ____ ___, ____ [for a one year term] (the "Stated Term").
This Agreement is subject to renewal only as set forth in Section VI below.

II.  DUTIES.
     ------

     A.   Employee shall serve during the course of his employment as President
and Chief Executive Officer of the Company, and shall have such duties and
responsibilities as the Board of Directors of the Company shall determine from
time to time.

     B.   Employee agrees to devote substantially all of his time, energy and
ability to the business of the Company. Nothing herein shall prevent Employee,
upon approval of the Board of Directors of the Company and which approval shall
not be unreasonably withheld, from serving as a director or trustee of other
corporations or businesses which are not in competition with the business of the
Company or in competition with any affiliate of the Company. Nothing herein
shall prevent Employee from investing in real estate for his own account or from
becoming a partner or a stockholder in any corporation, partnership or other
venture not in competition with the business of the Company or in competition
with any affiliate of the Company.

     C.   For the term of this Agreement, Employee shall report to the Board of
Directors of the Company or its designee.

III. COMPENSATION.
     ------------

     A.   The Company will pay to Employee a base salary at the rate of $180,000
per year. Such salary shall be earned monthly and shall be payable in periodic
installments no less frequently than monthly in accordance with the Company's
customary practices. Amounts payable shall be reduced by standard withholding
and other authorized deductions. The Company will review Employee's salary at
least annually.

     B.   Incentive, Savings and Retirement Plans. Employee shall be entitled
          ---------------------------------------
to participate in all incentive, savings and retirement plans, practices,
policies and programs applicable generally to other executives of the Company;
provided, however, that Employee has elected to not participate in any cash
--------  -------
bonus or incentive program.
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     C.   Welfare Benefit Plans. Employee and/or his family, as the case may
          ---------------------
be, shall be eligible for participation in and shall receive all benefits under
welfare benefit plans, practices, policies and programs (including, but not
limited to, disability insurance) provided by the Company to the extent
applicable generally to other executives of the Company.

     D.   Expenses.  Employee shall be entitled to receive prompt reimbursement
          --------
for all reasonable employment expenses incurred by him in accordance with the
policies, practices and procedures as in effect generally with respect to other
executives of the Company.

     E.   Fringe Benefits.  Employee shall be entitled to fringe benefits in
          ---------------
accordance with the plans, practices, programs and policies as in effect
generally with respect to other executives of the Company.

     F.   Vacation.  Employee shall be entitled to paid vacation in accordance
          --------
with the plans, policies, programs and practices as in effect generally with
respect to other executives of the Company.

     G.   Changes.  The Company reserves the right to modify, suspend or
          -------
discontinue any and all of the above plans, practices, policies and programs
described in paragraphs B through F above at any time without recourse by
Employee so long as such action is taken generally with respect to other
similarly situated executives and does not single out Employee.

     H.   Option.  Employee shall be granted, upon the initial execution of this
          ------
Agreement, an option for 58,824 Class A Common Units of the Company which shall
vest and be exercisable upon achievement of Milestones (as defined in the
Company's Amended and Restated Operating Agreement as in effect on the date
hereof).

IV.  TERMINATION.
     -----------

     A.   Termination Events.
          ------------------

          1.  Death or Disability.  Employee's employment shall terminate
              -------------------
     automatically upon Employee's death. If the Company determines in good
     faith that the Disability of Employee has occurred (pursuant to the
     definition of Disability set forth below), it may give to Employee written
     notice in accordance with Section XVIII of its intention to terminate
     Employee's employment. In such event, Employee's employment with the
     Company shall terminate effective on the 90th day after receipt of such
     notice by Employee, provided that, within such period, Employee shall not
     have returned to full-time performance of his duties. For purposes of this
     Agreement, "Disability" shall mean a physical or mental impairment that
     renders Employee unable to perform the essential functions of his position,
     even with reasonable accommodation that does not impose an undue hardship
     on the Company. The Company reserves the right, in good faith, to make the
     determination of disability under this Agreement based upon information
     supplied by Employee and/or his medical personnel, as well as information
     from medical personnel (or others) selected by the Company or its insurers.

                                       2
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          2.  Cause.  The Company may terminate Employee's employment for Cause.
              -----
     For purposes of this Agreement, "Cause" shall mean that the Company, acting
     in good faith based upon the information then known to the Company,
     determines that Employee has engaged in or committed: willful misconduct;
     theft, fraud or other illegal conduct; documented refusal or unwillingness
     to perform his duties after written notice thereof; sexual harassment;
     insubordination; any willful act that is likely to and which does in fact
     have the effect of injuring the reputation, business, or a business
     relationship of the Company; violation of any fiduciary duty to the
     Company; violation of any duty of loyalty to the Company; and breach of any
     term of this Agreement after written notice thereof and failure to cure
     within 30 days.

          3.  Other than Cause or Death or Disability.  The Company may
              ---------------------------------------
     terminate Employee's employment at any time, with or without cause, upon 90
     days' written notice. The Employee may terminate his employment at any time
     with Good Reason.

     B.   Obligations of the Company Upon Termination.
          -------------------------------------------

          1.  Death or Disability.  If Employee's employment is terminated by
              -------------------
     reason of Employee's Death or Disability, this Agreement shall terminate
     without further obligations to Employee or his legal representatives under
     this Agreement, other than for (a) payment of the sum of (i) Employee's
     annual base salary through the date of termination to the extent not
     theretofore paid and (ii) any compensation previously deferred by Employee
     (together with any accrued interest or earnings thereon) and any accrued
     vacation pay in each case to the extent not theretofore paid (the sum of
     the amounts described in clauses (i) and (ii) shall be hereinafter referred
     to as the "Accrued Obligations"), which shall be paid to Employee or his
     estate or beneficiary, as applicable, in a lump sum in cash upon
     termination; (b) payment to Employee or his estate or beneficiary, as
     applicable, any amounts due pursuant to the terms of any applicable welfare
     benefit plans and (c) continued participation in the Company's group health
     plan(s) at the same benefit level at which he and his covered dependent(s)
     participated immediately before the termination of his employment for a
     period of nine months after such termination.

          2.  Cause.  If Employee's employment is terminated by the Company for
              -----
     Cause, this Agreement shall terminate without further obligations to
     Employee other than for the timely payment of Accrued Obligations. If it is
     subsequently determined that the Company did not have Cause for termination
     under this Section IV(B)(2), then the Company's decision to terminate shall
     be deemed to have been made under Section IV(B)(3) and the amounts payable
     thereunder shall be the only amounts Employee may receive for his
     termination.

          3.  Other than Cause or Death or Disability.  If the Company
              ---------------------------------------
     terminates Employee's employment for other than Cause or Death or
     Disability, or Employee terminates his employment for Good Reason, this
     Agreement shall terminate without further obligations to Employee other
     than (a) the timely payment of Accrued Obligations and (b) payment to
     Employee of a lump sum of nine months' salary, less

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     standard withholdings and other authorized deductions. As used herein,
     "Good Reason" shall mean (i) a reduction in Employee's base salary (other
     than as part of a broad salary reduction program instituted because the
     Company is in financial distress), or (ii) the elimination or reduction of
     Employee's eligibility to participate in the Company's benefit programs
     that is inconsistent with the eligibility of other employees of the Company
     to participate therein, or (iii) the placement of the Employee into a non-
     executive position due to an act of the Company, excluding for this purpose
     any isolated action not taken in bad faith and which is remedied by the
     Company within 30 days of receipt of written notice from Employee.

     C.   Exclusive Remedy. Employee agrees that the payments contemplated by
          ----------------
this Agreement shall constitute the exclusive and sole remedy for any
termination of his employment and Employee covenants not to assert or pursue any
other remedies, at law or in equity, with respect to any termination of
employment.

V.   ARBITRATION.
     -----------

     Any controversy or claim arising out of or relating to this Agreement, its
enforcement or interpretation, or because of an alleged breach, default, or
misrepresentation in connection with any of its provisions, or otherwise arising
out of Employee's employment with or separation from the Company, including any
claims for discrimination, sexual or other unlawful harassment, retaliation,
breach of public policy, torts or the violation of any federal, state or local
law, regulation or ordinance or the common law, shall be submitted to final and
binding arbitration, to be held in Los Angeles County, California in accordance
with California Civil Procedure Code (S)(S) 1282-1284.2. In such arbitration,
the arbitrator shall issue a written opinion describing the essential findings
and conclusions upon which an award is based. Employee hereby represents that he
understands that in exchange for the benefits of a speedy, economical and
impartial dispute resolution procedure of arbitration, the Company and the
Employee are foregoing their rights to resolution of disputes in a court of law
by judge or jury. In the event either party institutes arbitration under this
Agreement, the party prevailing in any such litigation shall be entitled to all
relief permitted by law.

VI.  RENEWAL.
     -------

     This Agreement shall be automatically renewed for one additional year on
the annual anniversary of the expiration of the Stated Term, unless one party or
the other gives notice, in writing, at least 30 days prior to the expiration of
this Agreement (or any renewal), of their desire to terminate the Agreement or
modify its terms.

VII. ANTISOLICITATION.
     ----------------

     Employee promises and agrees that during the term of this Agreement or
renewal in accordance with Section VI above, he will not influence or attempt to
influence customers of the Company or any of its subsidiaries or affiliates,
either directly or indirectly, to divert their business to any individual,
partnership, firm, corporation or other entity then in competition with the
business of the Company, or any subsidiary or affiliate of the Company.

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VIII.  JOINING OTHER EMPLOYEES.
       -----------------------

       Employee promises and agrees that he will not, for a period of one year
following termination of his employment or the expiration of this Agreement or
renewal in accordance with Section VI above, enter into business, work with,
employ, hire or retain any of the Company employees who earned annually $50,000
or more as a Company employee during the last six months of his or her own
employment to work for any business, individual, partnership, firm, corporation,
or other entity then in competition with the business of the Company or any
subsidiary or affiliate of the Company.

IX.  CONFIDENTIAL INFORMATION.
     ------------------------

     A.   Employee, in the performance of Employee's duties on behalf of the
Company, shall have access to, receive and be entrusted with confidential
information, including but in no way limited to development, marketing,
organizational, financial, management, administrative, production, distribution
and sales information, data, specifications and processes presently owned or at
any time in the future developed, by the Company or its agents or consultants,
or used presently or at any time in the future in the course of its business
that is not otherwise part of the public domain (collectively, the "Confidential
Material"). All such Confidential Material is considered secret and will be
available to Employee in confidence. Except in the performance of duties on
behalf of the Company, Employee shall not, directly or indirectly for any reason
whatsoever, disclose or use any such Confidential Material, unless such
Confidential Material ceases (through no fault of Employee's) to be confidential
because it has become part of the public domain. All records, files, drawings,
documents, equipment and other tangible items, wherever located, relating in any
way to the Confidential Material or otherwise to the Company's business, which
Employee prepares, uses or encounters, shall be and remain the Company's sole
and exclusive property and shall be included in the Confidential Material. Upon
termination of this Agreement by any means, or whenever requested by the
Company, Employee shall promptly deliver to the Company any and all of the
Confidential Material, not previously delivered to the Company, that may be or
at any previous time has been in Employee's possession or under Employee's
control.

     B.   Employee hereby acknowledges that the sale or unauthorized use or
disclosure of any of the Company's Confidential Material by any means whatsoever
and any time before, during or after Employee's employment with the Company
shall constitute Unfair Competition. Employee agrees that Employee shall not
engage in Unfair Competition either during the time employed by the Company or
any time thereafter.

X.   RESULTS AND PROCEEDS.
     --------------------

     Employee acknowledges and agrees that the Company shall own all rights in
and to the results and proceeds of Employee's services under this Agreement,
including anything which is, in whole or in part, created, developed and/or
produced by Employee and which is suggested by Employee or related to Employee's
employment under this Agreement. To the fullest extent permitted by law, all
work product (including any inventions and works of authorship) created by
Employee during the term of this Agreement shall belong to the

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Company and shall, to the fullest extent possible, be considered a work made for
hire for the Company. To the extent the Company does not own such work product
as a work made for hire, Employee hereby assigns to Company all rights in such
work product, including, but not limited to, all patent rights, copyrights,
trade secret rights and any other intellectual rights of any kind throughout the
world. Such assignment by Employee to Company shall include, but not be limited
to, all reproduction rights, distribution rights, public display rights, with no
limitation on the use of such rights. Employee agrees to execute all documents
reasonably requested by the Company to further evidence the foregoing assignment
and to provide all reasonable assistance to the Company in perfecting or
protecting the Company's rights in such work product. If Employee is unable or
unwilling to assist the Company in perfecting or protecting its legal rights to
such work product, Employee designates and appoints the Company as his agent and
attorney-in-fact to act for Employee and to take any steps necessary to perfect
or protect the Company's legal rights with the same legal force and effect as if
done by Employee. This provision does not apply to an invention which qualifies
fully under Section 2870 of the California Labor Code.

     Notwithstanding the above, the provisions of this Section X shall be
limited and only apply to the "Technology" as defined in the Assignment and
Subscription Agreement dated as of September 4, 2000 entered by and between the
Company and Employee and the "Basic Technology" as defined in the Revenue
Sharing Agreement dated as of even date hereof between the Company and Employee.
The Company further acknowledges any reversionary rights that Employee has to
the Technology under the Assignment and Subscription Agreement and the Company's
Amended and Restated Operating Agreement.

XI.  MISCELLANEOUS.
     -------------

     A.   Governing Law.  This Agreement and the rights and obligations of the
          -------------
parties hereunder shall be governed by, and shall be construed and enforced in
accordance with, the internal laws of the state of California, without regard to
conflicts of laws principles, and of the United States.

     B.   Notices.  Any notice or other communication provided for in this
          -------
Agreement shall be in writing and sent to the address listed under each party's
signature hereto or at such other address a party may from time to time in
writing designate. Each such notice or other communication shall be effective
(i) if given by telecommunication, when transmitted to the applicable number so
specified pursuant to this Section and a confirmation of transmission is
received, (ii) if given by mail, three days after such communication is
deposited in the mails with first class postage prepaid, addressed as aforesaid
or (iii) if given by any other means, when actually delivered at such address.

     C.   Amendments and Waiver.  No amendment, modification, termination or
          ---------------------
waiver of any provision of this Agreement, shall be effective unless the same
shall be in writing and signed by the parties. Any such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which it was given. Failure by either party, at any time, to require performance
by the other party or to claim a breach of any provision of this Agreement shall
not be construed as a waiver of any right accruing under this

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Agreement, nor shall it affect any subsequent breach or the effectiveness of
this Agreement or any part hereof, or prejudice either party with respect to any
subsequent action.

     D.   Severability. If any provision of this Agreement is held invalid or
          ------------
unenforceable, the remainder of this Agreement shall nevertheless remain in full
force and effect, and if any provision is held invalid or unenforceable with
respect to particular circumstances, it shall nevertheless remain in full force
and effect in all other circumstances, to the fullest extent permitted by law.

     E.   Integration.  This Agreement, together with any exhibits and schedules
          -----------
hereto, constitutes the entire agreement among the parties pertaining to the
subject matter hereof and supersedes all prior agreements and understandings of
the parties in connection therewith.

     G.   Assignment.
          ----------

          1.  This Agreement is personal to Employee and shall not, without the
     prior written consent of the Company, be assignable by Employee.

          2.  This Agreement shall inure to the benefit of and be binding upon
     the Company and its successors and assigns and any such successor or
     assignee shall be deemed substituted for the Company under the terms of
     this Agreement for all purposes.  As used herein, "successor" and
     "assignee" shall include any person, firm, corporation or other business
     entity which at any time, whether by purchase, merger or otherwise,
     directly or indirectly acquires the stock of the Company or to which the
     Company assigns this Agreement by operation of law or otherwise.

     H.   Legal Counsel.  Employee and the Company recognize that this is a
          -------------
legally binding contract and acknowledge and agree that they have had the
opportunity to consult with legal counsel of their choice.

     I.   Construction.  Each party has cooperated in the drafting and
          ------------
preparation of this Agreement. Hence, in any construction to be made of this
Agreement, the same shall not be construed against any party on the basis that
the party was the drafter. The captions of this Agreement are not part of the
provisions hereof and shall have no force or effect.

     J.   Headings.  The Article headings in this Agreement are for convenience
          --------
only, and shall not be considered a part of, or affect the interpretation of,
any provision of this Agreement.

     K.   Counterparts.  This Agreement may be executed in one or more
          ------------
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document.

                            [Signature page follows]

                                       7
<PAGE>

     In witness whereof, the parties hereto have executed this Agreement as of
the date first above written.

BSST, LLC                     DR. LON E. BELL

By ________________________   _________________________
Name:
Title:

Notice Address:               Notice Address:

                                      S-1<PAGE>

                                                                    Exhibit 10.3

                               OPTION AGREEMENT

                                 by and among

                            AMERIGON INCORPORATED,

                                   BSST, LLC

                                      and

                                DR. LON E. BELL

                            Dated September 4, 2000
<PAGE>

                               OPTION AGREEMENT

          This OPTION AGREEMENT (this "Agreement") is entered into as of
September 4, 2000 by and among AMERIGON, INC., a California corporation (the
"Holder"), BSST, LLC, a Delaware limited liability company (the "Company"), and
DR. LON E. BELL, the sole member of the Company ("Dr. Bell").

                                R E C I T A L S

          WHEREAS, Dr. Bell is party to an operating agreement with respect to
the Company, dated as of August 29, 2000;

          WHEREAS, the Company and Dr. Bell, desire, subject to the terms and
conditions hereof, to grant to the Holder an Option (as defined below) to
subscribe for 2,000 Series A Preferred Units of the Company (the "Option
Units"), representing membership interests with such rights, preferences, and
privileges as set forth in the form of Amended and Restated Operating Agreement
("Amended Operating Agreement") attached as Exhibit A hereto;
                                            ---------

          WHEREAS, concurrently with the exercise of this Agreement, (i) the
Company and Dr. Bell shall execute and deliver the Amended Operating Agreement
and the Employment Agreement attached as Exhibit B hereto and (ii) the Company
                                         ---------
shall grant to Dr. Bell a performance-based option based on the Milestones (as
defined in the Amended Operating Agreement) for 58,824 Class A Common Units,
which shall equal 5% of the fully-diluted membership interests of the Company
(the "Initial Class A Member Option") at the time of exercise of the Option;

          WHEREAS, it being understood that the Company and Dr. Bell desire the
Option Units to be convertible into a number of Class B Common Units of the
Company equal to no less than 90% of the outstanding membership interests of the
Company at the time of exercise of the Option;

          WHEREAS, the Holder is entering this Agreement concurrently and in
reliance upon the execution by the Company and Dr. Bell of the Assignment and
Subscription Agreement and Revenue Sharing Agreement each dated as of the date
hereof (the "Related Agreements");

          WHEREAS, as consideration for the Option, the Holder has delivered
$150,000 in cash (the "Option Fee") to the Company and the Company and the
Holder agree that, in the event the Holder exercises the Option, such Option Fee
shall be credited to the Option Exercise consideration (as defined below); and

          WHEREAS, Dr. Bell, being the sole member of the Company, has duly
authorized the grant of the Option and the issuance of the Option Units in
accordance with the terms hereof;

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          NOW, THEREFORE, in consideration of the promises, and of the parties'
respective representations, warranties, covenants and agreements set forth
below, the Company and the Holder agree as follows:

          1.   Grant of Option. Subject to the terms and conditions set forth
               ---------------
herein, as consideration for the payment of the Option Fee, the Company hereby
grants to the Holder an option (the "Option") to purchase the Option Units in
exchange for payment of the Option Exercise Price (as defined below) in
accordance with Sections 3 and 5; provided that such Option is exercised within
                ----------------  --------
the time and in the manner set forth in Section 2.  The Option Fee shall be
                                        ---------
fully refundable to the Holder in the event that Dr. Bell is no longer an
employee of the Company, but under all other circumstances shall be non-
refundable.

          2.   Exercise of Option.  The Option may be exercised by the Holder at
               ------------------
any time after the date hereof, but no later than January 31, 2001 (the "Option
Exercise Period").  The Holder may exercise the Option by delivering written
notice to the Company during the Option Exercise Period of the Holder's
intention to exercise the Option.  The date, if any, on which the Holder shall
be deemed to have exercised the Option shall be the date within the Option
Exercise Period on which the Holder's written notice to the Company has been
effectively received by the Company pursuant to Section 11(b) (the "Exercise
                                                -------------
Date"), whereupon such Option exercise shall become irrevocable.

          3.   Option Exercise Consideration.  The consideration for exercise of
               -----------------------------
the Option Units shall be a commitment by the Holder ("Option Exercise
Consideration") to pay to the Company an amount equal to $2,000,000 minus the
Option Fee (the "Commitment Amount") in accordance with the schedule set forth
in Section 5.

          4.   Option Units.  The number of Option Units to be purchased by the
               ------------
Holder upon exercise of the Option shall be 2,000 of the Company's Series A
Preferred Units.

          5.   Payment and Closing.
               -------------------

          (a)  In the event that the Holder exercises the Option in accordance
with Section 2, the Holder at the Option Closing (as defined below) shall pay
     ---------
$400,000 of the Commitment Amount to the Company in immediately available funds
by wire transfer to an account designated by the Company and the Company shall
thereupon issue to and register in the name of the Holder the Option Units.

          (b)  Upon five business days' prior notice and no more than once in
any three month period, the Company shall request the Holder to pay the
following amount to the Company of any remaining uncontributed portion of the
Commitment Amount in immediately available funds by wire transfer to an account
designated by the Company an amount equal to the lesser of (i) $400,000 and (ii)
the aggregate remaining uncontributed Commitment Amount. Unless waived in
writing by the Company, if the Holder does not pay such amount five business
days after the end of such calendar quarter, the Holder shall foreit all rights
in, and Company shall cancel, a number of Option Units equal to the unpaid
portion of the requested amount divided by $1,000.

                                       2
<PAGE>

          (c)    The completion of the exercise of the Option shall take place
at the offices of the Company, or such other reasonable location as the Company
shall determine, on the third Business Day following the Exercise Date, or such
other reasonable time as the Company and the Holder may agree to in writing (the
"Option Closing"). At the Option Closing, simultaneously with the delivery of
immediately available funds as provided in Section 5(a), (i) the Company shall
                                           ------------
register the Option Units in the register of the Company, (ii) the Holder, Dr.
Bell and the Company shall execute and deliver the Amended Operating Agreement,
(iii) Dr. Bell and the Company shall execute and deliver the Employment
Agreement, and (iv) each of the parties hereto shall execute and deliver or
obtain or cause its equity holders and/or directors to execute and deliver or
obtain any and all other agreements, consents or instruments reasonably
necessary for the consummation of the transactions contemplated under this
Agreement.

          6.     The Holder's Representations and Warranties.
                 -------------------------------------------

          (a)    The Holder has full legal capacity and authority to enter into
this Agreement; the execution, delivery and performance of this Agreement does
not and will not breach, violate or conflict with any agreement to which the
Holder is a party or is bound; and this Agreement constitutes the legal, valid
and binding obligation of the Holder, enforceable against the Holder in
accordance with its terms.

          (b)    The Holder understands that the offering and sale of the Option
Units is intended to be exempt from registration under the Securities Act of
1933, as amended (the "Securities Act"), by virtue of Section 4(2) of the
Securities Act, as well as exempt from the Corporate Securities Law of 1968 of
California by virtue of Section 25102(f) and in accordance therewith and in
furtherance thereof, the Holder represents and warrants and agrees as follows:

          (i)    The Holder has a preexisting business relationship with the
     Company and is fully aware of the risks entailed in an investment in the
     Company in the form of Option Units, including but not limited to the risks
     enumerated in the Company's confidential business plan.

          (ii)   THE HOLDER UNDERSTANDS AND ACKNOWLEDGES THAT ITS INVESTMENT IN
     COMPANY INVOLVES A HIGH DEGREE OF RISK AND IS SUITABLE ONLY FOR INVESTORS
     OF SUBSTANTIAL MEANS WHO HAVE NO IMMEDIATE NEED FOR LIQUIDITY OF THE AMOUNT
     INVESTED, AND THAT SUCH INVESTMENT INVOLVES A RISK OF LOSS OF ALL OR A
     SUBSTANTIAL PART OF SUCH INVESTMENT.

          (iii)  The Holder is not subscribing for the Option Units as a result
     of or subsequent to any advertisement, article, notice or other
     communication published in any newspaper, magazine or similar media or
     broadcast over television or radio, or presented at any seminar or meeting,
     or any solicitation of a subscription by a person other than a
     representative of the Company;

          (iv)   The Holder has adequate means of providing for the Holder's
     current financial needs and contingencies, is able to bear the substantial
     economic risks of an

                                       3
<PAGE>

     investment in the Company for an indefinite period of time, has no need for
     liquidity in such investment, and, at the present time, could afford a
     complete loss of such investment;

          (v)     The Holder has such knowledge and experience in financial, tax
     and business matters so as to enable the Holder to utilize the information
     available to the Holder to evaluate the merits and risks of an investment
     in the Company and to make an informed investment decision with respect
     thereto;

          (vi)    The Holder is not relying on the Company with respect to the
     tax or other economic considerations of an investment in the Option Units
     and has obtained, or had the opportunity to obtain, the advice of the
     Holder's own legal, tax and other advisors;

          (vii)   The Holder will not sell or otherwise transfer the Option
     Units for value without registration under the Securities Act or applicable
     state or foreign securities laws or an exemption therefrom. The Option
     Units have not been registered under the Securities Act or under the
     securities laws of any other jurisdiction. the Holder represents that the
     Holder is purchasing the Option Units for the Holder's own account, for
     investment and not with a view to resale or distribution except in
     compliance with the Securities Act. the Holder has not offered or sold any
     portion of the Option Units being acquired nor does the Holder have any
     present intention of selling, distributing or otherwise disposing of any
     portion of the Option Units, which may be a violation of the Securities
     Act, unless (i) a registration statement has been filed and declared
     effective by the Securities and Exchange Commission covering such Option
     Units to be resold or otherwise distributed; (ii) the passage of a fixed or
     determinable period of time that makes such resale or distribution exempt
     from registration and is pursuant to Rule 144 promulgated under the
     Securities Act or upon the occurrence or nonoccurrence of any predetermined
     event or circumstance in violation of the Securities Act; or (iii) the
     transfer is not a "sale" of securities as said term is defined in the
     Securities Act. the Holder is aware that there is currently no market for
     the Company's Option Units;

          (viii)  The Holder is an "accredited investor" within the meaning of
     Rule 501 of Regulation D promulgated under the Securities Act;

          (ix)    The Holder's overall commitment to investments which are not
     readily marketable is reasonable in relation to the Holder's net worth; and

          (x)     In making an investment decision the Holder has relied on the
     Holder's own examination of the Company, including the merits and risks
     involved.  THE SECURITIES OFFERED IN THIS AGREEMENT HAVE NOT BEEN
     RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY
     AUTHORITY.  ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

                                       4
<PAGE>

          7.   The Company's Representations and Warranties.
               --------------------------------------------

          (a)  The Company has full legal capacity and authority to enter into
this Agreement; the execution, delivery and performance of this Agreement does
not and will not breach, violate or conflict with any agreement to which the
Company is a party or is bound; and this Agreement constitutes the legal, valid
and binding obligation of the Company, enforceable against the Company in
accordance with its terms.

          (b)  The Company owes no commission, fee or other compensation to any
person as a finder or broker as a result of the transactions contemplated by
this Agreement.

          (c)  The Company is duly organized and existing under the laws of the
State of Delaware.

          (d)  The Company represents and warrants that the Option Units, when
issued, will be duly authorized and validly issued.

          (e)  As of the date hereof, 100,000 of the Company's Class A Common
Units and no units of any other class or series of the Company's Units are
issued and outstanding and no Units are held in the treasury of the Company.

          8.   Affirmative Covenants of the Company.  Prior to exercise of the
               ------------------------------------
Option, the Company agrees as follows:

          (a)  Inspection Rights; Financial and Accounting Records.  The Company
               ---------------------------------------------------
shall permit any authorized representatives designated by the Holder to visit
and inspect any proprieties of the Company, to inspect and copy its financial
and accounting records, and to discuss its affairs, finances and accounts with
the Company's officers and its independent public accountants, all at such
reasonable times and as often as the Holder may reasonably request.  With
reasonable promptness, the Company shall deliver such other information and data
with respect to the Company as the Holder may from time to time reasonably
request.

          (b)  Financial Plans and Operating Budget.  The Company shall provide
               ------------------------------------
to the Holder an annual financial plan and operating budget of the Company,
which shall include at least a projection of income and a projected cash flow
statement for each fiscal quarter and a projected balance sheet as of the end of
each fiscal quarter.  Any material changes in such business plan and operating
budget shall be delivered to the Holder as promptly as practicable.

          (c)  Material Agreements.  Within five business days of discovery,
               -------------------
notification of any material non-compliance with any material agreement (except
if such non-compliance has been corrected within such five-day period).

          (d)  Compliance with Laws.  The Company shall comply with all
               --------------------
applicable laws, rules, regulations and orders relating to the conduct of its
businesses or to its properties or assets.

                                       5
<PAGE>

          (e)  Prompt Payment of Taxes.  The Company will promptly pay and
               -----------------------
discharge, or cause to be paid and discharged, when due and payable, all lawful
taxes, assessments and governmental charges or levies imposed upon the income,
profits, property or business of the Company or any subsidiary; provided,
                                                                --------
however, that any such tax, assessment, charge or levy need not be paid if the
-------
validity thereof shall currently be contested in good faith by appropriate
proceedings and if the Company shall have set aside on its books adequate
reserves with respect thereto, and provided, further, that the Company will pay
                                   --------  -------
all such taxes, assessments, charges or levies forthwith upon the commencement
of proceedings to foreclose any lien which may have attached as security
therefor.  The Company will promptly pay or cause to be paid when due, or in
conformance with customary trade terms or otherwise, all other indebtedness
incident to operations of the Company.

          (f)  Insurance.  The Company will keep its assets which are of an
               ---------
insurable character insured by financially sound and reputable insurers against
loss or damage by fire, explosion and other risks customarily insured against by
companies in the Company's line of business, and the Company will maintain, with
financially sound and reputable insurers, insurance against other hazards and
risks and liability to persons and property to the extent and in the manner
customary for companies in similar businesses similarly situated.

          (g)  Maintenance of Existence.  The Company shall maintain in full
               ------------------------
force and effect its existence, rights and franchises and all licenses and other
rights in or to use patents, processes, licenses, trademarks, trade names or
copyrights owned or possessed by it and deemed by the Company to be necessary to
the conduct of its business.

          (h)  Proprietary Information and Inventions Agreements.  The Company
               -------------------------------------------------
will cause each person now or hereafter employed by it with access to
confidential information to enter into a proprietary information and inventions
agreement.

          9.   Negative Covenants of the Company.  The Company covenants and
               ---------------------------------
agrees that the Company will not do any of the following without the consent of
the Holder prior to exercise of the Option:

          (a)  Dispositions. Convey, sell, lease, transfer, license or otherwise
               ------------
dispose of (collectively, a "Disposition"), or permit any of its subsidiaries to
dispose, all or any part of its business or property (including intellectual
property), other than Dispositions (i) of inventory in the ordinary course of
business and (ii) of worn-out or obsolete equipment.

          (b)  Changes in Business.  Engage in any business other than the
               -------------------
businesses currently engaged in by the Company or contemplated by the business
plan presented to the Holder and any business substantially similar or related
thereto (or incidental thereto).

          (c)  Mergers or Acquisitions.  Merge or consolidate to merge or
              -----------------------
consolidate, with or into any other business organization or entity, or acquire
all or substantially all of the capital stock or property of another Person.

                                       6
<PAGE>

          (d)  Indebtedness.  Create, incur, assume or be or remain liable with
               ------------
respect to any indebtedness in excess of $100,000 whether senior, subordinated,
secured or unsecured, except advances and similar expenditures in the ordinary
course of business or for trade accounts of the Company in the ordinary course
of business.

          (e)  Encumbrances.  Create, incur, assume or suffer to exist any
               ------------
encumbrance with respect to any of its property, or assign or otherwise convey
any right to receive income, including without limitation pursuant to the
Revenue Sharing Agreement dated as of the date hereof between the Company and
Dr. Bell, created after the date hereof pursuant to agreements in effect on the
date hereof, or created in the ordinary course of business.

          (f)  Distributions.  Pay any other distribution or payment on account
               -------------
of or in redemption, retirement or purchase of any equity interest.

          (g)  Investments.  Directly or indirectly acquire or own, or make any
               -----------
Investment (as defined below) in or to any Person.  "Investment" means any
beneficial ownership of (including stock, partnership interest or other
securities) any Person, or any loan, advance or capital contribution to any
Person.

          (h)  Transactions with Affiliates.  Engage in any loans, leases,
               ----------------------------
contracts or other transactions with any equity holder (other than the Holder),
director, officer or key employee of the Company, or any member of any such
person's immediate family, including the parents, spouse, children and other
relatives of any such person, on terms less favorable than the Company would
obtain in a transaction with an unrelated party.

          (i)  Equity Issuances.  Issue any of its equity interests, or grant an
               ----------------
option or rights to subscribe for, purchase or acquire any of its equity
interests to any person, except the Company may concurrently with the exercise
of the Option, issue the Initial Class A Member Option in form and substance
reasonably satisfactory to the Holder.

          (j)  Compensation of Employees.  Compensate any of its employees,
               -------------------------
including officers, or consultants in an annual amount greater than $180,000.

          (k)  Amendment of Related Agreements.  Amend, modify or change the
               -------------------------------
terms or conditions of any Related Agreement.

          10.  Agreement of Dr. Bell.  Dr. Bell agrees that all of his
               ---------------------
activities relating to the "Technology" as defined in the Assignment and
Subscription Agreement shall be carried out through the Company.

          11.  Miscellaneous.
               -------------

          (a)  Governing Law.  This Agreement and the rights and obligations of
               -------------
the parties hereunder shall be governed by, and shall be construed and enforced
in accordance with, the internal laws of the state of California, without regard
to conflicts of laws principles, and of the United States.

                                       7
<PAGE>

          (b)  Notices.  Any notice or other communication provided for in this
               -------
Agreement shall be in writing and sent to the address listed under each party's
signature hereto or at such other address a party may from time to time in
writing designate.  Each such notice or other communication shall be effective
(i) if given by telecommunication, when transmitted to the applicable number so
specified pursuant to this Section and a confirmation of transmission is
received, (ii) if given by mail, three days after such communication is
deposited in the mails with first class postage prepaid, addressed as aforesaid
or (iii) if given by any other means, when actually delivered at such address.

          (c)  Amendments and Waiver. No amendment, modification, termination or
               ---------------------
waiver of any provision of this Agreement, shall be effective unless the same
shall be in writing and signed by the parties. Any such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which it was given. Failure by either party, at any time, to require performance
by the other party or to claim a breach of any provision of this Agreement shall
not be construed as a waiver of any right accruing under this Agreement, nor
shall it affect any subsequent breach or the effectiveness of this Agreement or
any part hereof, or prejudice either party with respect to any subsequent
action.

          (d)  Severability.  If any provision of this Agreement is held invalid
               ------------
or unenforceable, the remainder of this Agreement shall nevertheless remain in
full force and effect, and if any provision is held invalid or unenforceable
with respect to particular circumstances, it shall nevertheless remain in full
force and effect in all other circumstances, to the fullest extent permitted by
law.

          (e)  Integration.  This Agreement, together with any exhibits and
               -----------
schedules hereto, supersedes all prior agreements and understandings of the
parties in connection pertaining to the subject matter hereof.  There are no
oral agreements between the parties that pertain to the subject matter hereof.

          (f)  Arbitration.  Any controversy or claim arising out of or relating
               -----------
to this Agreement, its enforcement or interpretation, or because of an alleged
breach, default, or misrepresentation in connection with any of its provisions,
other than a controversy or claim arising out of or relating to a calculation
pursuant to any of its provisions, shall be submitted to arbitration, to be held
in Los Angeles County, California in accordance with California Civil Procedure
Code Sections 1282-1284.2.  In the event either party institutes arbitration
under this Agreement, the party prevailing in any such arbitration shall be
entitled, in addition to all other relief, to reasonable attorneys' fees
relating to such arbitration.  The nonprevailing party shall be responsible for
all costs of the arbitration, including but not limited to, the arbitration
fees, court reporter fees, etc.

          (g)  Further Assurances.  Each party hereto agrees to execute,
               ------------------
acknowledge and deliver any and all further instruments, and to do any and all
further acts, as may be necessary or appropriate to carry out the intent and
purpose of this Agreement, and each party will use its best efforts to obtain
any and all third party consents or approvals necessary or useful for the
consummation of the transactions contemplated by this Agreement.

                                       8
<PAGE>

          (h)  Headings.  The section headings in this Agreement are for
               --------
convenience only, and shall not be considered a part of, or affect the
interpretation of, any provision of this Agreement.

          (i)  Counterparts.  This Agreement may be executed in one or more
               ------------
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document.

                          [Signature page to follow]

                                       9
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their respective authorized officers as of the day and year
first above written.

                                          AMERIGON INCORPORATED

                                          By:___________________________

                                          Name:
                                          Title:

                                          Notice Address:

                                          BSST, LLC

                                          By:___________________________

                                          Name:
                                          Title:

                                          Notice Address:

                                          DR. LON E. BELL

                                          ______________________________

                                          Notice Address:

                                      S-1

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