BEACON POWER CORP
LAZAREWICZ EMPLOYMENT AGREEMENT AMENDMENT
<DOCUMENT>
<TYPE>EX-10.1.26
<SEQUENCE>10
<FILENAME>lazagr.txt
<DESCRIPTION>LAZAREWICZ EMPLOYMENT AGREEMENT AMENDMENT
<TEXT>
EXHIBIT 10.1.26

                        AMENDMENT TO EMPLOYMENT AGREEMENT

This Amendment to Employment  Agreement (the  "Amendment") is entered into as of
October  25,  2003,  by  and  between  Beacon  Power  Corporation,   a  Delaware
corporation (the "Company"), and Matthew Lazarewicz (the "Executive").

WHEREAS,  the Company and  Executive  are  entering  into this  Amendment to the
Employment  Agreement (the "Agreement")  dated as of May 6, 2002 between them in
order to extend the duration of the Agreement by six months, NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

1.   Section 1 of the  Agreement  is hereby  amended in its  entirety to read as
     follows:

"Section 1. Term.  This  Agreement  shall be effective for a term  commencing on
October 25, 2002  (provided  the Executive is an employee of the Company on that
date), and continuing until April 25, 2004, unless earlier  terminated  pursuant
to Section 9. The period of the Executive's  employment hereunder is referred to
as the "Employment Period"."

2.   Section  9(c)  of the  Agreement  is  amended  in its  entirety  to read as
     follows:

"(c)  Continuation  /Nonrenewal.   Unless  this  Agreement  has  been  otherwise
terminated before April 24, 2004, the Company and the Executive agree to discuss
in  good  faith  the  possible  continuation  of  the  Executive's   employment,
commencing six months prior to April 24, 2004. If the Company fails to offer the
Executive a new employment agreement, with at least equivalent material terms to
this  Agreement,  by April 24,  2004 and in fact the  Executive  ceases to be an
employee of the company  following  April 24,  2004,  the Company  shall pay the
Executive a monthly amount until April 24, 2005,  equal to the sum of one-twelve
of the Executive's Base Salary in effect at the expiration of the Agreement plus
one-twelve  of the  Executive's  bonus for the most  recent  fiscal  year of the
Company,  in  accordance  with the Company's  regular  payroll  practices,  less
applicable  holdings required by law. In the event the Executive and the Company
do not sign a new  employment  agreement  by April 24, 2004 but the  Executive's
employment  with the  Company  continues  on an at-will  basis past that date by
terminates  for any reason  before  April 24,  2005,  payment  of the  foregoing
monthly  amount will  commence  after such  termination  and continue only until
April 24, 2005.  If the at-will  employment  continues  after April 24, 2005 but
then terminates, no such monthly amount will be paid."

3.   In all other respects, the Agreement shall remain unamended.

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

  EXECUTIVE                                  BEACON POWER CORPORATION
  /s/Matthew Lazarewicz
  ----------------------                     -----------------------
  Matthew Lazarewicz

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</DOCUMENT>
