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Exhibit 10.5
[BEACON POWER LETTERHEAD]
May 23, 2000
Perseus Capital, L.L.C. DQE Enterprises, Inc.
The Army and Navy Club Bldg. One Northshore Center
1627 I Street, N.W. 12 Federal Street
Suite 610 Suite 100
Washington, D.C. 20006 Pittsburgh, PA 15212
Attn: Philip Deutch Attn: Eric Stoltz
Micro-Generation Technology Fund, L.L.C.
c/o Arete Corporation
P.O. Box 1299
Center Harbor, NH
Attn: Robert Shaw
Re: SHARE ADJUSTMENT AND NON-APPLICATION OF PUT RIGHT
TO CLASS F SECURITIES
To Class D Participating Investors:
By executing this letter, each of Perseus Capital, L.L.C., DQE
Enterprises, Inc. and Micro-Generation Technology Fund, L.L.P. (collectively,
the "Purchasers") confirm and agree that the issuance of the shares of Class F
Preferred Stock of Beacon Power Corporation (the "Company") and Warrants to
acquire shares of the Company's Common Stock (together, the "Purchased
Securities"), pursuant to the Securities Purchase Agreement of even date
herewith, will not cause an adjustment of the outstanding shares of the
Company's Class D Preferred Stock (or warrants to purchase such shares) as a
result of the per share price applicable to the Class F Preferred Stock, and
that the "Put Rights" granted by SatCon Technology Corp. to the Purchasers
pursuant to Section 1.4 of the Securities Purchase Agreement, dated October 23,
1998, by and among the Company, the Purchasers, SatCon and certain other
stockholders of the Company, do not apply to the Purchased Securities. This
letter shall in no way affect any put rights of the Purchasers with respect to
any securities issued prior to the date hereof.
Sincerely,
/s/ William E. Stanton
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By: William E. Stanton
Name: President
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Perseus Capital, L.L.C.,
DQE Enterprises, Inc.
Micro-Generation Technology Fund, L.L.C.
May 23, 2000
Page 2
Agreed and confirmed:
PERSEUS CAPITAL, L.L.C.
By: /s/ Philip J. Deutch
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Name: Philip J. Deutch
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Title: Managing Director
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DQE ENTERPRISES, INC.
By: /s/ Eric R. Stoltz
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Name: Eric R. Stoltz
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Title: Vice President and Treasurer
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MICRO-GENERATION
TECHNOLOGY FUND, L.L.C.
BY ARETE CORPORATION,
ITS MANAGER
By: /s/ Robert W. Shaw, Jr.
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Robert W. Shaw, Jr., President
