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UNITED STATES OMB Number: 3235-0145
SECURITIES AND EXCHANGE COMMISSION Expires December 31, 2005
WASHINGTON, D.C. 20549 Estimated average burden
hours per response.... 11
SCHEDULE 13D/A -------------------------
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1 )*
Distributed Energy Systems Corp.
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(Name of Issuer)
Common Stock, $0.01 par value
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(Title of Class of Securities)
25475V104
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(CUSIP Number)
Robert W. Shaw, Jr.
Arete Corporation
P.O. Box 1299
Center Harbor, NH 03226
(603) 253-9797
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
January 7, 2004
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box. [ ]
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss.240.13d-7 for other
parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
CUSIP No. 25475V104 Page 2 of 12
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1 NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Robert W. Shaw, Jr.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States citizen
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7 SOLE VOTING POWER
2,741,216 shares (1)
NUMBER OF -------------------------------------------------------------
8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares
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OWNED BY 9 SOLE DISPOSITIVE POWER
EACH
2,741,216 shares (1)
REPORTING -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON
WITH 0 shares
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,741,216 shares (1)
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.4%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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(1) Includes 90,000 shares issuable upon exercise of options within 60 days of
December 31, 2003 and 1,083,031 shares issuable upon exercise of warrants.
CUSIP No. 25475V104 Page 3 of 12
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1 NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Micro-Generation Technology Fund, LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0 shares
NUMBER OF -------------------------------------------------------------
8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares
--------------------------------------------------------------
OWNED BY 9 SOLE DISPOSITIVE POWER
EACH
0 shares
REPORTING --------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON
WITH
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
--
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
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CUSIP No. 25475V104 Page 4 of 12
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1 NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Utech Climate Challenge Fund, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0 shares
NUMBER OF -------------------------------------------------------------
8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares
-------------------------------------------------------------
OWNED BY 9 SOLE DISPOSITIVE POWER
EACH
0 shares
REPORTING -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON
WITH 0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
--
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
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CUSIP No. 25475V104 Page 5 of 12
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1 NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Arete Venture Investors II Limited Partnership
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0 shares
NUMBER OF -------------------------------------------------------------
8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares
-------------------------------------------------------------
OWNED BY 9 SOLE DISPOSITIVE POWER
EACH
0 shares
REPORTING -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON
WITH 0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
--
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
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CUSIP No. 25475V104 Page 6 of 12
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1 NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Utech LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0 shares
NUMBER OF -------------------------------------------------------------
8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares
-------------------------------------------------------------
OWNED BY 9 SOLE DISPOSITIVE POWER
EACH
0 shares
REPORTING -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON
WITH 0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
--
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
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CUSIP No. 25475V104 Page 7 of 12
Item 1. Security and Issuer.
This statement relates to the common stock, $.01 par value (the "Common
Stock"), of Distributed Energy Systems Corp. (the "Issuer") having its principal
executive office at 10 Technology Drive, Wallingford, CT 06492. This statement
amends and restates the statement on Schedule 13D filed by the undersigned with
respect to the Issuer on December 23, 2003.
Item 2. Identity and Background.
This statement is being filed by Dr. Robert W. Shaw, Jr. ("Dr. Shaw"),
Micro-Generation Technology Fund, LLC ("MG"), Utech Climate Challenge Fund, L.P.
("Climate Challenge"), Utech LLC, ("Utech") and Arete Venture Investors II
Limited Partnership ("AVI") (each a "Reporting Person" and collectively the
"Reporting Persons").
Item 2(a) Item 2(b) Item 2(c)
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Citizenship or Place
Name of Person Filing Address of Organization
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Robert W. Shaw, Jr. c/o Arete Corporation United States citizen
P.O. Box 1299
Center Harbor, NH 03226
MG c/o Arete Corporation Delaware
P.O. Box 1299
Center Harbor, NH 03226
Climate Challenge c/o Arete Corporation Delaware
P.O. Box 1299
Center Harbor, NH 03226
Utech c/o Arete Corporation Delaware
P.O. Box 1299
Center Harbor, NH 03226
AVI c/o Arete Corporation Delaware
P.O. Box 1299
Center Harbor, NH 03226
Dr. Shaw is (i) the President of Arete Corporation, which is the
manager of MG and Utech, (ii) the managing member of the general partner of
Climate Challenge, and (iii) the general partner of AVI. In such capacities, he
has sole dispositive power with respect to the shares of Common Stock held by
MG, Climate Challenge, Utech and AVI. Dr. Shaw, therefore, may be deemed the
beneficial owner of the shares of Common Stock directly owned by Climate
Challenge, Utech and AVI. Dr. Shaw disclaims this beneficial ownership. The
principal business of each of MG, Climate Challenge, Utech and AVI is to make
investments.
Dr. Shaw formerly served as general partner of the general partner of
UVCC Fund II ("Fund II") and UVCC II Parallel Fund, L.P. ("Parallel Fund").
These funds dissolved on December 31, 2003.
CUSIP No. 25475V104 Page 8 of 12
During the five years prior to the date hereof, none of the Reporting
Persons has been convicted in a criminal proceeding or has been a party to a
civil proceeding ending in a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration.
Dr. Shaw funded the purchase of his interests in the entities that own
Common Stock from his personal funds. Each of the other Reporting Persons funded
its purchases of Common Stock from its own working capital.
Item 4. Purpose of Transaction.
Each of the Reporting Persons acquired the Common Stock for investment
purposes. Depending on market conditions, their continuing evaluation of the
business and prospects of the Issuer and other factors, the Reporting Persons
may dispose of or acquire additional shares of Common Stock. Except as set forth
in this Schedule 13D, none of the Reporting Persons has any present plans which
relate to or would result in:
(a) The acquisition by any person of additional securities of the
Issuer, or the disposition of securities of the Issuer;
(b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Issuer or any of its subsidiaries;
(c) A sale or transfer of a material amount of assets of the Issuer
or any of its subsidiaries;
(d) Any change in the present board of directors or management of the
Issuer, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the board;
(e) Any material change in the present capitalization or dividend
policy of the Issuer;
(f) Any other material change in the Issuer's business or corporate
structure;
(g) Changes in the Issuer's charter, bylaws or instruments
corresponding thereto or other actions which may impede the acquisition of
control of the Issuer by any person;
(h) Causing a class of securities of the Issuer to be delisted from a
national securities exchange or to cease to be authorized to be quoted in an
inter-dealer quotation system of a registered national securities association;
(i) A class of equity securities of the Issuer becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Securities
Exchange Act of 1934; or
(j) Any action similar to any of those enumerated above.
Item 5. Interest in Securities of the Issuer.
On December 10, 2003, subsidiaries of the Issuer were merged into
Proton Energy Systems, Inc. ("Proton") and Northern Power Systems, Inc.
("Northern"). At the time of the merger,
CUSIP No. 25475V104 Page 9 of 12
(i) Dr. Shaw held of record 194,341 shares of common stock of Proton
and options to purchase 60,000 shares of common stock that were
exercisable within 60 days after September 30, 2003,
(ii) MG held of record 76,316 shares of common stock of Proton,
(iii) Fund II held of record 1,891,763 shares of common stock of
Proton, and
(iv) Climate Challenge held of record 1,534,620 shares of common stock
of Proton, and
(v) UVCC II Parallel Fund, L.P., a venture fund affiliated with Dr.
Shaw, held of record 285,715 shares of common stock of Proton.
In addition,
(i) MG held of record 919,000 shares of preferred stock of Northern,
(ii) Fund II held of record 633,405 shares of preferred stock of
Northern, and
(iii) Climate Challenge held of record 558,925 shares of preferred
stock of Northern.
In the merger, each share of outstanding common stock of Proton was
converted into a share of Common Stock of the Issuer, and each share of
outstanding common stock of Northern was converted into an amount of cash, a
number of shares of Common Stock of the Issuer and warrants to purchase a number
of shares of Common Stock of the Issuer in accordance with the formulas set
forth in the merger agreement. The warrants have an exercise price of $2.80 per
share and expire on December 10, 2006. In the merger:
(i) MG received $4,005,108, 420,170 shares of Common Stock and
warrants to purchase 471,412 shares of Common Stock in respect of
its Northern preferred stock,
(ii) AVI and Utech, in their capacities as partners of Fund II,
received $279,946 and $2,372,458, respectively, 65,626 shares of
Common Stock and 262,504 shares of Common Stock, respectively,
and warrants to purchase 64,982 shares of Common Stock and
259,930 shares of Common Stock, respectively, in respect of Fund
II's Northern preferred stock, and
(iii) Climate Challenge received $2,374,086, 277,574 shares of Common
Stock and warrants to purchase 286,707 shares of Common Stock in
respect of its Northern preferred stock.
Of the cash and Common Stock paid to Northern's stockholders in respect
of their Northern shares, 15% was placed in escrow to secure indemnification
obligations.
On December 19, 2003, Parallel Fund distributed to its partners all
285,715 shares of Common Stock previously held by Parallel Fund. Of this amount,
21,144 shares were distributed to Dr. Shaw and 1,714 shares were distributed to
his wife. Also on December 19, 2003, Fund II distributed to its partners all
1,891,763 shares of Common Stock previously held by Fund II. Of this amount,
272,500 shares were distributed to AVI and 1,619,262 shares were distributed to
Utech.
On January 7, 2004, Utech distributed to its members 1,619,262 shares
of Common Stock. Also on January 7, 2004, (i) AVI distributed to its partners
272,500 shares of Common Stock (of which Dr.
CUSIP No. 25475V104 Page 10 of 12
Shaw received 95,375 shares) and (ii) Climate Challenge distributed to its
partners 1,471,354 shares of Common Stock (of which Dr. Shaw received 80,408
shares and his wife received 9,746 shares).
As a result of the above-described transactions,
(i) Dr. Shaw holds of record 391,268 shares of Common Stock and
options to purchase 90,000 shares of common stock that were
exercisable within 60 days after December 31, 2003 and his wife
holds of record 11,460 shares of Common Stock,
(ii) MG holds of record 496,486 shares of Common Stock and a warrant
to purchase 471,412 shares of Common Stock,
(iii) Climate Challenge holds of record 340,840 shares of Common Stock
and a warrant to purchase 286,707 shares of Common Stock,
(iv) AVI holds of record 65,626 shares of Common Stock, and a warrant
to purchase 64,982 shares of Common Stock, and
(v) Utech holds of record 262,505 shares of Common Stock and a
warrant to purchase 259,930 shares of Common Stock.
The shares of Common Stock beneficially owned by the Reporting Persons
represent an aggregate of 7.7% of the outstanding Common Stock of the Issuer.
Such percentage is calculated based upon 35,349,517 shares of Common Stock
outstanding as of December 10, 2003, as adjusted pursuant to Rule 13d-3(d) (1)
promulgated under the Act.
Except as set forth above, none of the Reporting Persons has effected
any transaction in the Common Stock in the last 60 days. No other person is
known to have the right to receive or the power to direct the receipt of
dividends from, or any proceeds from the sale of, the Common Stock beneficially
owned by any of the Reporting Persons.
Item 6. Contracts, Arrangements, Undertakings or Relationships with Respect to
Securities of the Issuer.
Each of MG, Climate Challenge, AVI and Utech have entered into a lockup
agreement under which they have agreed not to offer, sell or otherwise dispose
of the shares of Common Stock issued to them in the merger or upon exercise of
warrants issued in the merger for a period of three months after closing of the
merger with respect to 25% of such shares and six months after closing with
respect to the remainder of such shares.
Item 7. Material to be Filed as Exhibits.
Exhibit 1 - Form of Lockup Agreement.*
Exhibit 2 - Agreement regarding filing of joint Schedule 13D.
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*Included as Exhibit 1 to the Schedule 13D filed by the Reporting Persons on
December 23, 2003.
CUSIP No. 25475V104 Page 11 of 12
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief,
each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Date: January 12, 2004
/s/ Robert W. Shaw, Jr.
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Robert W. Shaw, Jr.
MICRO-GENERATION TECHNOLOGY FUND, LLC
By: ARETE CORPORATION, Manager
By: /s/ Robert W. Shaw, Jr.
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Robert W. Shaw, Jr., President
UTECH CLIMATE CHALLENGE FUND, L.P.
By: ARETE CLIMATE CHALLENGE PARTNERS, LLC
By: /s/ Robert W. Shaw, Jr.
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Robert W. Shaw, Jr., Managing Member
UTECH LLC
By: ARETE CORPORATION, Manager
By: /s/ Robert W. Shaw, Jr.
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Robert W. Shaw, Jr., President
ARETE VENTURE INVESTORS II LIMITED PARTNERSHIP
By: /s/ Robert W. Shaw, Jr.
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Robert W. Shaw, Jr., General Partner