This Employment Agreement (the "Agreement") entered into as of December 1, 2003, by and between Beacon -
-------- Power Corporation, a Delaware corporation (the "Company"), and F. William Capp (the "Executive") --
WHEREAS, the Executive is an employee of the Company, and the Company desires to retain his services and
he wishes to continue his employment by the Company;
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
SECTION 1. TERM. The Company shall employ the Executive for a term commencing on December 1, 2003
and continuing until December 31, 2004 unless terminated pursuant to Section 9. The period of the Executive's
employment hereunder is referred to as the "Employment Period."
SECTION 2. DUTIES. The Executive shall serve the Company as President and Chief Executive Officer and
shall have duties and responsibilities consistent with such position. Such duties and responsibilities shall include,
but not be limited to, overall management of the Company. The Executive will report to the Board of Directors of
the Company (the "Board"). The Executive will generally perform his services at the Company's principal offices,
which are currently located in Wilmington, Massachusetts; provided, however, that the Executive may be
required to travel from time to time in connection with Company business.
SECTION 3. FULL TIME; BEST EFFORTS. During the Employment Period the Executive shall use his best
efforts to promote the interests of the Company and shall devote his full business time and efforts to its business
and affairs. The Executive shall not engage in any business activity which could reasonably be expected to
interfere with the performance of the Executive's duties, services and responsibilities hereunder.
SECTION 4. COMPENSATION. The Executive shall be entitled to compensation as follows:
(a) Base Salary. During the Employment Period, the Executive will