BEACON POWER CORP
PERFORMANCE-BASED RSU AGRMT - J. M. SPIEZIO
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<TYPE>EX-10.1.25
<SEQUENCE>6
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<DESCRIPTION>PERFORMANCE-BASED RSU AGRMT - J. M. SPIEZIO
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<p style=' margin-bottom:4pt; margin-top:4pt;text-align:right;'><font SIZE=2>EXHIBIT 10.1.25</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt;text-align:center;'><b><font SIZE=3>BEACON POWER CORPORATION</font></b></p>

<p style=' margin-bottom:4pt; margin-top:4pt;text-align:center;'><b><small>PERFORMANCE-BASED</small> <small>RESTRICTED</small> <small>STOCK</small> <small>UNIT</small> <small>AGREEMENT</small></b></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.58in;text-align:justify;'><font size=2>This Performance-Based Restricted Stock Unit Agreement (this &#147;</font><i><font size=2>Agreement</font></i><font size=2>&#148;</font><i><font size=2>)</font></i><font size=2>, dated as of May 8, 2006 (the &#147;</font><i><font size=2>Effective Date</font></i><font size=2>&#148;), is by and between Beacon Power Corporation (the &#147;</font><i><font size=2>Company</font></i><font size=2>&#148;) and James M. Spiezio (&#147;</font><i><font size=2>Executive</font></i><font size=2>&#148;), an executive officer of the Company.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>WHEREAS, this Agreement is intended to provide Executive deferred compensation in the form of the restricted stock units (&#147;</font><i><font size=2>RSUs</font></i><font size=2>&#148;) referenced below that convert into shares of the Company&#146;s common stock, $.01 par value per share (the &#147;</font><i><font size=2>Common Stock</font></i><font size=2>&#148;), with Executive having the right to convert his RSUs into shares at any time after vesting;</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>NOW THEREFORE, it is agreed as follows:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font SIZE=2>ARTICLE I.</font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font SIZE=2>RESTRICTED STOCK UNIT AWARD</font></b></u></p> </td> </tr></table>

<p style=' margin-bottom:4pt; margin-top:4pt;text-align:justify;'><b><font size=2>1.1</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Restricted Stock Unit Award</font></b></u><b><font size=2>.  </font></b><font size=2>Subject to the terms and conditions of this Agreement and pursuant to the Company&#146;s Third Amended and Restated 1998 Stock Incentive Plan (the &#147;</font><i><font size=2>Plan</font></i><font size=2>&#148;), the Company will be considered to have awarded an aggregate of up to 316,456 RSUs (the &#147;</font><i><font size=2>Potential Award&#148;</font></i><font size=2>)</font><i><font size=2> </font></i><font size=2>to Executive:  </font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size=2>Conditions to be Met.</font></i><font size=2>  The </font><i><font size=2>&#147;Vesting Date&#148;</font></i><font size=2> is the date on which all the vesting conditions set forth below have been met:</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; margin-left:0.5in; text-indent:0.5in;text-align:justify;'><font size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company must have achieved a positive Adjusted EBITDA (as defined below) of at least $2,000,000 for the fiscal year ending in 2009 or 2010.  This must be determined in accordance with GAAP by the Company&#146;s independent auditor.  The &#147;</font><i><font size=2>Adjusted EBITDA&#148; </font></i><font size=2>means the Company&#146;s income before the effect of interest expenses, income taxes, depreciation, amortization and equity compensation expenses as set forth in the Company&#146;s audited Consolidated Statement of Operations or the footnotes to the Company&#146;s audited financial statements.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; margin-left:0.5in; text-indent:0.5in;text-align:justify;'><font size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company must have received a signed, unqualified opinion (including without limitation, any qualification as to going concern value or financial condition) from its regular auditing firm with respect to the fiscal year ending in 2009 or 2010, as the case may be depending on the fiscal year in which Section 1.1(a)(i) is achieved, and which does not characterize the Company as a development stage company (the &#147;</font><i><font size=2>Audit Opinion</font></i><font size=2>&#148;). </font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; margin-left:0.5in; text-indent:0.5in;text-align:justify;'><font size=2>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Executive must be an employee of the Company at all times from the date of this Agreement through the last day of whichever of the two fiscal years (i.e., 2009 or 2010) with respect to which the above conditions have become satisfied.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size=2>Variability of Award by Size of Adjusted EBITDA.</font></i><font size=2>  The size of the Award will vary as shown below:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:4pt;margin-bottom:4pt'><i><font size=2>Size of Adjusted EBITDA:</font></i><i></i></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:4.0pt;margin-bottom:4.0pt'><i><font size=2>Number of RSUs in the Actual Award:</font></i><i></i></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>Under $2,000,000</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>No Award</font><i></i></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>$2,000,000</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>50% of the Potential Award</font><i></i></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>$2,000,000 to $4,000,000</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>Potential Award</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 4.0pt'><font SIZE=2>X</font></p> </td>
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            <p style='margin:0in;text-indent:0pt;text-align:center;margin-top:4pt;margin-bottom:.0001pt'><u><font size=2>Adjusted EBITDA</font></u></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4,000,000</font></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>Over $4,000,000</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>100% of the Potential Award</font></p> </td> </tr></table>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:1in;text-align:justify;'><font size=2>The number of RSUs actually awarded based on the Potential Award and in accordance herewith is herein referred to as the &#147;Actual Award.&#148;</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.62in;text-align:justify;'><font size=2> (c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size=2>Variability of Award by Date Conditions Are Achieved.</font></i><font size=2>  If the conditions referenced in subclause (a), above, are met for fiscal year 2009, and yet if less than all the Potential Award is actually awarded (because the Adjusted EBITDA for fiscal 2009 is less than $4,000,000), then the as-yet unawarded balance of the Potential </font></p>

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<p style=' margin-bottom:4pt; margin-top:4pt;text-align:justify;'><font size=2>Award may still be awarded with respect to fiscal year 2010 if all the conditions in subclause (a) are in fact also met with respect to 2010.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size=2>Termination if Conditions Not Met.</font></i><font size=2>  This Agreement automatically terminates as of the date that the Executive leaves the full time employment of the Company for any reason (including without limitation by resignation or termination with or without &#147;</font><i><font size=2>Cause</font></i><font size=2>&#148;).  &#147;</font><i><font size=2>Cause</font></i><font size=2>&#148; shall have the same meaning as set forth in Executive&#146;s then-current employment agreement with the Company or, if no such agreement is in effect, &#147;</font><i><font size=2>Cause</font></i><font size=2>&#148; shall have the same meaning as set forth in Executive&#146;s most recent employment agreement with the Company.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size=2>Transitional Rules Upon Termination.</font></i><font size=2>  If this Agreement terminates as described above in subclause (d):</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; margin-left:0.5in; text-indent:0.5in;text-align:justify;'><font size=2>(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive may retain all RSUs (A) that have vested prior to the Termination Notice Date (as defined below) or (B) that would have vested with respect to 2009 or 2010, as the case may be, if Executive&#146;s termination had not occurred after such year end but before receipt of the Audit Opinion for that year if Executive remained an employee of the Company long enough for the Audit Opinion to be received, so long as the Audit Opinion is actually received by the Company;</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; margin-left:0.5in; text-indent:0.5in;text-align:justify;'><font size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding that no &#147;</font><i><font size=2>Acquisition Event</font></i><font size=2>&#148; (as defined in Section 1.3) has been consummated, in the event Executive&#146; employment with the Company is terminated without Cause (but not for &#147;</font><i><font size=2>Good Reason</font></i><font size=2>&#148;, as defined in Executive&#146;s employment agreement with the Company, and not in the event of resignation by Executive), Executive shall be entitled to his &#147;</font><i><font size=2>Pro Rated Actual Award</font></i><font size=2>&#148; (as defined in Section 1.3) if and only if the &#147;</font><i><font size=2>Termination Stock Price</font></i><font size=2>&#148; (as defined below) is higher than the Target Stock Price (as defined in Section 1.3); and</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; margin-left:0.5in; text-indent:0.5in;text-align:justify;'><font size=2>(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive shall not be entitled to receive and shall forfeit any interest in any other RSUs that are covered by this Agreement.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:1in;text-align:justify;'><font size=2>In the case of subsection (ii) above, &#147;</font><i><font size=2>Termination Stock Price</font></i><font size=2>&#148; shall mean the 30-day &#147;</font><i><font SIZE=2>VWAP</font></i><font size=2>&#148; as of the date prior to the Termination Notice Date.  &#147;</font><i><font SIZE=2>VWAP</font></i><font size=2>&#148; means the daily dollar volume-weighted average price for the Company&#146;s common stock on the Nasdaq Capital Market (&#147;</font><i><font size=2>Nasdaq</font></i><font size=2>&#148;) on any particular day on which the Company&#146;s common stock is traded on Nasdaq during the period beginning at 9:30 a.m., New York City time (or such other time as Nasdaq publicly announces is the official open of trading), and ending at 4:00 p.m., New York City time (or such other time as Nasdaq publicly announces is the official close of trading), as reported by Bloomberg through its
&#147;Volume at Price&#148; functions or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30 a.m., New York City time (or such other time as Nasdaq publicly announces is the official open of trading), and ending at 4:00 p.m., New York City time (or such other time as Nasdaq publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the &#147;pink sheets&#148; by the National Quotation Bureau, Inc.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:1in;text-align:justify;'><font size=2>The &#147;</font><i><font size=2>Termination Notice Date</font></i><font size=2>&#148; 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 Executive&#146;s employment for any or no reason (or if earlier, the date on which the Company notifies Executive that employment will be so terminated).</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt;text-align:justify;'><b><font size=2>1.2</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Conversion to Common Stock</font></b></u><font size=2>.  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&#146;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.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt;text-align:justify;'><b><font size=2>1.3</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Acquisition Events</font></b></u><font size=2>.  In the event of an &#147;</font><i><font size=2>Acquisition Event</font></i><font size=2>&#148; (as defined below), if and only if the average of the high and low prices of the Company&#146;s common stock, as reported on Nasdaq, as of the day prior to the date of closing (the &#147;</font><i><font size=2>Closing Date</font></i><font size=2>&#148;) is higher than the &#147;</font><i><font size=2>Target Stock Price</font></i><font size=2>&#148; (as defined below), the Company will be </font></p>

<p style=' margin-bottom:0pt; margin-top:4pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 2 -</font></p> </td> </tr></table>

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<p style=' margin-bottom:4pt; margin-top:4pt;text-align:justify;'><font size=2>considered to have awarded fully-vested RSUs to Executive in accordance with the following formula (the &#147;</font><i><font size=2>Pro Rated Actual Award</font></i><font size=2>&#148;):</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pro Rated Actual Award = Potential Award X  </font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Lapsed Months</font></u></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>56</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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<p style=' margin-bottom:4pt; margin-top:4pt; margin-left:0.5in;text-align:justify;'><font size=2>where, &#147;Lapsed Months&#148; means the number of calendar months that have lapsed from the Effective Date to the Closing Date.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.58in;text-align:justify;'><font size=2>An &#147;</font><i><font size=2>Acquisition Event</font></i><font size=2>&#148; 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; provided, that any such Acquisition Event must occur prior to the Vesting Date.  </font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.61in;text-align:justify;'><font size=2> &#147;</font><i><font size=2>Target Stock Price</font></i><font size=2>&#148; means the average of the high and low prices of the Company&#146;s common stock as reported on Nasdaq on the Effective Date multiplied by 15%, compounded annually and prorated for any partial year.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt;text-align:justify;'><b><font size=2>1.4</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Nontransferability of Agreement and the Award</font></b></u><font size=2>.  This Agreement, the Award and the RSUs underlying the Award 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&#146;s transfer to a revocable trust that is solely for the benefit of Executive and Executive&#146;s spouse and/or issue during Executive&#146;s lifetime and transfer under such trust at Executive&#146;s death to the trust&#146;s intended beneficiaries shall not be deemed to be prohibited by the foregoing provisions.  If any person other than Executive, Executive&#146;s then current spouse, and Executive&#146;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 shall be exercisable only by Executive.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt;text-align:justify;'><b><font size=2>1.5</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Golden Parachute Payment Excise Tax Protection</font></b></u><font size=2>.  In the event that the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the &#147;</font><i><font size=2>Code</font></i><font size=2>&#148;), (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 &#147;</font><i><font size=2>Excise Tax</font></i><font size=2>&#148;), an additional amount shall be paid by the Company to the Executive equal to the amount of such Excise Tax (the &#147;</font><i><font size=2>Gross Up Payment</font></i><font size=2>&#148;); 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.  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.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font SIZE=2>ARTICLE II.</font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font SIZE=2>MISCELLANEOUS</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.1</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Provisions of the Plan</font></b></u><font size=2>.  This Agreement is subject to the provisions of the Plan, a copy of which Executive hereby acknowledges receiving with this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.2</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>No Right to Continued Employment</font></b></u><b><font size=2>.</font></b><font size=2>  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&#146;s employment at any time.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.3</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>No Right as Stockholder</font></b></u><font size=2>.  Executive shall not be entitled to vote any shares of Common Stock that may be acquired through conversion of RSUs, 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 unless and until the Common Stock issuable upon conversion of the RSUs has been delivered to Executive.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.4</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Compliance with Law and Regulations</font></b></u><font size=2>.  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 </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 3 -</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

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<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>and regulations and to such approvals by any government or regulatory agency as may be required.  Moreover, the RSUs may not be converted to Common Stock if its exercise, or the receipt of Shares pursuant thereto, would be contrary to applicable law. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.5</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Adjustment</font></b><font size=2> </font><b><font size=2>to Common Stock</font></b></u><b><font size=2>.</font></b><font size=2>  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 shall be appropriately adjusted by Company to the extent the authorized administrator of the Plan shall determine, in good faith, that such an adjustment</font><b><font size=2> </font></b><font size=2>is necessary and appropriate.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.6</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Withholding</font></b></u><font size=2>.  Executive shall pay to Company, or make provision satisfactory to Company for payment of, any taxes required</font><b><font size=2> </font></b><font size=2>by law to be withheld in connection with this Agreement no later than the Vesting Date, if any.  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.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.7</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Common Stock Reserved</font></b></u><b><font size=2>.</font></b><font size=2>  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.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.8</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Notices</font></b></u><font size=2>.  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.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.9</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Delaware Law to Govern</font></b></u><font size=2>.  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).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.10</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Certain Special Rules</font></b></u><b><font size=2>.  </font></b><font size=2>To the extent that this Agreement and the grant of the Award hereunder become subject to the provisions of Section 409A of the Code, the Company and Executive agree that the Award and/or the RSUs 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.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.11</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Amendment of Agreement</font></b></u><b><font size=2>.</font></b><font size=2>  Company may amend, modify</font><b><font size=2> </font></b><font size=2>or terminate this Agreement, provided that Executive&#146;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.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.12</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Successors and Assigns; No Third Party Beneficiaries</font></b></u><font size=2>.  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. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>2.13</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><b><font size=2>Entire Agreement</font></b></u><font size=2>.  This Agreement and the Plan constitute the full and entire understanding and agreement of the parties with regard to the Award and supersede in their entirety all other prior agreements, whether oral or written, with respect thereto. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.14</font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Severability; Titles and Subtitles; Gender; Singular and Plural; Counterparts; Facsimile</font></b></u><b><font size=2>.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 4 -</font></p> </td> </tr></table>

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<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.5in;text-align:justify;'><font size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt; text-indent:0.59in;text-align:justify;'><font size=2>IN WITNESS WHEREOF, the parties have executed this Agreement as a sealed instrument as of the Effective Date.</font></p>


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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><b><font SIZE=2>EXECUTIVE:</font></b></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><i><font size=2>By:</font></i><font size=2>&nbsp;</font>             <u><font size=2>/s/  James M. Spiezio</font></u>                                                                                                                                 <font size=2>&nbsp;</font></p>
<p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><i><font size=2>Signature</font></i></p>
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<p
style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><i><font size=2>Name:</font></i><font size=2>  James M. Spiezio</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Address:  </font></i>                                         </p>
<p style='margin-left:0pt;text-indent:.75in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><b><font SIZE=2>BEACON POWER CORPORATION</font></b></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><i><font size=2>By:</font></i><font size=2>&nbsp;</font>             <u><font size=2>/s/  Jack P. Smith</font></u>                                                                                                                                                       <font size=2>&nbsp;</font></p>
<p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><i><font size=2>Signature</font></i></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font
size=2>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><i><font size=2>Name:  </font></i><font size=2>Jack P. Smith</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><i><font size=2>Title:  </font></i><font size=2>Chairman, Compensation Committee</font></p>
<p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 4.0pt'><b>&nbsp;</b></p> </td> </tr></table>

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