EXHIBIT 10.1.26


                       AMENDMENT TO EMPLOYMENT AGREEMENT

     This Amendment to Employment Agreement (the "Amendment") is entered into as
of  March  30,  2005,  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 April 25, 2004 between them
in order to  extend  the  duration  of the  Agreement  by  twelve  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 January 1, 2005 and  continuing  until  December  31,  2005,
     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 so that every  reference to 2004
     shall be changed to 2005 and that every  reference to 2005 shall be changed
     to 2006.

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 L. Lazarewicz               /s/Jack P. Smith
- ------------------------------         --------------------------------------
Chief Technical Officer                 Director