Document:

Form of Restricted Stock Agreement

 Exhibit 10.3 
  
 AMERICAN SUPERCONDUCTOR CORPORATION 
  
 Restricted Stock Agreement 
  
 AGREEMENT made this              day of
            , 2004, between American Superconductor Corporation, a Delaware corporation (the “Company”), and (the “Employee”). 
  
 For valuable consideration, receipt of which is acknowledged, the parties
hereto agree as follows: 
  
 1. Purchase of Shares.

  
 The Company shall issue and sell to the Employee, and the
Employee shall purchase from the Company, subject to the terms and conditions set forth in this Agreement and in the Company’s 2004 Stock Incentive Plan (the “Plan”),
            shares (the “Shares”) of common stock, $.01 par value, of the company (“Common Stock”), at a purchase price of $.01 per share. The aggregate purchase price
for the Shares shall be paid by the Employee by check payable to the order of the company or such other method as may be acceptable to the Company. Upon receipt by the Company of payment for the Shares, the company shall issue to the Employee one or
more certificates in the name of the Employee for that number of Shares purchased by the Employee. The Employee agrees that the Shares shall be subject to the purchase options set forth in Section 2 of this Agreement and the restrictions on transfer
set forth in Section 4 of this Agreement. 
  
 2. Purchase
Option. 
  
 (a) The Shares shall vest upon the earliest of
(i) [insert financial targets]; (ii) a Change in Control of the Company (as defined below); or (iii) [            ]. The Shares shall be “Unvested Shares” until vested as provided
in the preceding sentence. 
  
 For purposes of the Agreement, a
“Change in Control” shall be deemed to have occurred upon the occurrence of the following events: (i) any “person”, as such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned directly or indirectly by the stockholders of the Company in substantially
the same proportion as their ownership of stock of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company’s then outstanding securities; (ii) during any period of two consecutive years ending during the term of this Agreement, individuals who at the beginning of such period constitute the Board of Directors of
the Company, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect any 
  

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 transaction described in clause (i), (iii) or (iv) of this Section 2) whose election by the Board of Directors or
nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who were either directors at the beginning of the period or whose election or whose nomination for
election was previously so approved (collectively, the “Disinterested Directors”), cease for any reason to constitute a majority of the Board of Directors; (iii) the consummation of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (iv) the stockholders of the Company approve a plan
of complete liquidation of the Company or there occurs the sale or disposition by the Company of all or substantially all of the Company’s assets. 
  
 (b) In the event that the Employee ceases to be employed by the Company for any reason or no reason, with or without cause, prior to the occurrence of one
of the events stated in clauses (i), (ii) or (iii) of paragraph (a) above, the Company shall have the right and option (the “Purchase Option”) to purchase from the Employee, for a sum of $.01 per share (the “Option Price”), some
or all of the Unvested Shares. 
  
 (c) For purposes of the
Agreement, employment with the Company shall include employment with a parent or subsidiary of the Company. 
  
 3. Exercise of Purchase Option and Closing. 
  
 (a) The Company may exercise the Purchase Option by delivering or mailing to the Employee (or his estate), within 60 days after the termination of the
employment of the Employee with the Company, a written notice of exercise of the Purchase Option. Such notice shall specify the number of Shares to be purchased. If and to the extent the Purchase Option is not so exercised by the giving of such a
notice within such 60-day period, the Purchase Option shall automatically expire and terminate effective upon the expiration of such 60-day period. 
  
 (b) Within 10 days after delivery to the Employee of the Company’s notice of the exercise of the Purchase Option pursuant to subsection (a) above,
the Employee (or his estate) shall, pursuant to the provisions of the Joint Escrow Instructions referred to in Section 5, tender to the Company at its principal offices the certificate or certificates representing the Shares which the Company has
elected to purchase in accordance with the terms of this Agreement, duly endorsed in blank or with duly endorsed stock powers attached thereto, all in form suitable for the transfer of such Shares to the Company. Promptly following its receipt of
such certificate or certificates, the Company shall pay to the Employee the aggregate Option Price for such Shares (provided that any delay in making such payment shall not invalidate the Company’s exercise of the Purchase Option with respect
to such Shares). 
  
 (c) After the time at which any Shares are
required to be delivered to the Company for transfer to the Company pursuant to subsection (b) above, the Company shall not pay any dividend to the Employee on account of such Shares or permit the Employee to exercise any of the privileges or rights
of a stockholder with respect to such Shares, but shall, in so far as permitted by law, treat the Company as the owner of such Shares. 
  

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 (d) The Option Price may be payable, at the option of the Company, in cancellation of all or a portion of
any outstanding indebtedness of the Employee to the Company or in cash (by check) or both. 
  
 (e) The Company shall not purchase any fraction of a Share upon exercise of the Purchase Option, and any fraction of a Share resulting from a computation made pursuant to Section 2 of this Agreement shall be rounded
to the nearest whole Share (with any one-half Share being rounded upward). 
  
 (f) The Company may assign its Purchase Option to one or more persons or entities. 
  
 4. Restrictions on Transfer. 
  
 The Employee shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively
“transfer”) any Shares, or any interest therein, that are subject to the Purchase Option, except that the Employee may transfer such Shares (i) to or for the benefit of any spouse, child or grandchild of the Employee, or to a trust for
their benefit, provided that such Shares shall remain subject to this Agreement (including without limitation the restrictions on transfer set forth in this Section 4 and the Purchase Option) and such permitted transferee shall, as a
condition to such transfer, deliver to the Company a written instrument confirming that such transferee shall be bound by all of the terms and conditions of this Agreement or (ii) as a part of the sale of all or substantially all of the shares of
capital stock of the Company (including pursuant to a merger or consolidation), provided that, in accordance with Section 9 of the Plan, the securities or other property received by the Employee in connection with such transaction shall remain
subject to this Agreement. 
  
 5. Escrow. 
  
 The Employee shall, upon the execution of this Agreement, execute Joint
Escrow Instructions in the form attached to this Agreement as Exhibit A. The Joint Escrow Instructions shall be delivered to the Controller of the company, as escrow agent thereunder. The Employee shall deliver to such escrow agent a stock
assignment duly endorsed in blank, in the form attached to this Agreement as Exhibit B, and hereby instructs the Company to deliver to such escrow agent, on behalf of the Employee, the certificates(s) evidencing the Shares issued hereunder.
Such materials shall be held by such escrow agent pursuant to the terms of such Joint Escrow Instructions. 
  
 6. Restrictive Legends. 
  
 All certificates representing Shares shall have affixed thereto a legend in substantially the following form, in addition to any other legends that may be
required under federal or state securities law: 
  
 “The
shares of stock represented by this certificate are subject to restrictions on transfer and an option to purchase set forth in a certain Restricted Stock Agreement between the corporation and the registered owner of these shares (or his predecessor
in interest), and such Agreement is available for inspection without charge at the office of the Secretary of the corporation.” 
  

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 7. Withholding Taxes; Section 83(b) Election. 
  
 (a) The Employee acknowledges and agrees that the Company has the right to
deduct from payments of any kind otherwise due to the Employee any federal, state or local taxes of any kind required by law to be withheld with respect to the purchase of the Shares by the Employee or the lapse of the Purchase Option. 

 
 (b) The Employee acknowledges that he has been informed of the
availability of making an election in accordance with Section 83(b) of the Internal Revenue Code of 1986, as amended; that such election must be filed with the Internal Revenue Service within 30 days of the transfer of shares to the Employee; and
that the Employee is solely responsible for evaluating the tax implications to the Employee or his or her purchase of the shares under this Agreement and for making such election if he or she so chooses. 
  
 8. No Rights To Employment. 
  
 Nothing contained in this Agreement shall be construed as giving the
Employee any right to be retained, in any position, as an employee of the Company. The Employee further acknowledges and agrees that the transactions contemplated hereunder and the vesting provisions set forth herein do not constitute an express or
implied process of continued engagement as an employee until the Shares vest, for any period of time, or at all. 
  
 9. Provisions of the Plan. 
  
 This Agreement is subject to the provisions of the Plan, a copy of which has been furnished to the Employee. 
  
 10. Severability. 
  
 The invalidity or unenforceability of any provision of this Agreement shall
not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law. 
  
 11. Waiver. 
  
 Any provision for the benefit of the Company contained in this Agreement may
be waived, either generally or in any particular instance, by the Board of Directors of the Company. 
  

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 12. Binding Effect. 
  
 This Agreement shall be binding upon and inure to the benefit of the Company and the Employee and their respective heirs,
executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 4 of this Agreement. 
  
 13. Notice. 
  
 All notices required or permitted hereunder shall be in writing and deemed effectively given upon personal delivery or five days after deposit in the
United States Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto at the address shown beneath his or its respective signature to this Agreement, or at such other address or addresses as either party
shall designate to the other in accordance with this Section 13. 
  
 14. Pronouns. 
  
 Whenever the context may
require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, vice versa. 
  
 15. Entire Agreement. 
  
 This Agreement and the Plan constitute the entire agreement between the
parties, and supersede all prior agreements and understandings, relating to the subject matter of this Agreement. 
  
 16. Amendment. 
  
 This Agreement may be amended or modified only by a written instrument executed by both the Company and the Employee. 
  
 17. Governing Law. 
  
 This Agreement shall be construed, interpreted and enforced in accordance
with the internal laws of the State of Delaware without regard to any applicable conflicts of law. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 
  

			
	AMERICAN SUPERCONDUCTOR CORPORATION
		
	By:	 	  

	 	 	Thomas Rosa
	Title:	 	Vice President, Finance and Accounting
	Address:	 	Two Technology Drive
	 	 	Westborough, MA 01581

  

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 The Employee has reviewed the provisions of this Agreement, has had an opportunity to obtain the advice
of the Employee’s own tax and legal advisors prior to executing this Agreement and fully understands and agrees to the provisions hereof. The Employee understands that the law firm of Wilmer Cutler Pickering Hale and Dorr LLP is acting as
counsel to the Company in connection with the transactions contemplated by this Agreement and is not acting as counsel to the Employee. 
  

			
	

		
	Address:	 	  

	 	 	  

  

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 Exhibit A 
  

AMERICAN SUPERCONDUCTOR CORPORATION 
  
 Joint Escrow Instructions 
  
 ______, 2004 
  
 Mr. Thomas M. Rosa 
 Vice President, Finance and Accounting 
 American Superconductor Corporation 
 Two Technology Drive 
 Westborough, MA 01581 
  
 Dear Sir: 
  
 As Escrow Agent for the American Superconductor Corporation, a Delaware
corporation (the “Company”), and the undersigned person (“Holder”), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that certain Restricted Stock Agreement (the
“Agreement”) of even date herewith, to which a copy of these Joint Escrow Instructions is attached, in accordance with the following instructions: 
  
 1. Appointment. Holder irrevocably authorizes the company to deposit with you any certificates evidencing Shares (as defined in the Agreement) to
be held by you hereunder and any additions and substitutions to said Shares. For purposes of these Joint Escrow Instructions, “Shares” shall be deemed to include any additional or substitute property. Holder does hereby irrevocably
constitute and appoint you as his attorney-in-fact and agent for the term of this escrow to execute with respect to such Shares all documents necessary or appropriate to make such Shares negotiable and to complete any transaction here contemplated.
Subject to the provisions of this paragraph 1 and the terms of the Agreement, Holder shall exercise all rights and privileges of a stockholder of the Company while the Shares are held by you. 
  
 2. Closing of Purchase. 
  
 (a) Upon any purchase by the company of the Shares pursuant to the
Agreement, the Company shall give to Holder and you a written notice specifying the purchase price for the Shares, as determined pursuant to the Agreement, and the time for a closing hereunder (the “Closing”) at the principal office of the
Company. Holder and the Company hereby irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the terms of said notice. 
  

	 	(b)	At the Closing, you are directed (a) to date the stock assignment form or forms necessary for the transfer of the Shares, (b) to fill in on such form or forms the number of Shares
being transferred, and (c) to deliver the same, together with the 

  

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 certificate or certificates evidencing the Shares to be transferred, to the Company against the
simultaneous delivery to you of the purchase price for the Shares being purchased pursuant to the Agreement. 
  
 3. Withdrawal. The Holder shall have the right to withdraw from this escrow any Shares as to which the Purchase Option (as defined in the
Agreement) has terminated or expired. 
  

	 	4.	Duties of Escrow Agent. 

  
 (a) Your duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto. 
  
 (b) You shall be obligated only for the performance of such duties as are
specifically set forth herein and may relay and shall be protected in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You shall not be
personally liable for any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact of Holder while acting in good faith and in the exercise of your own good judgment, and any act done or omitted by you pursuant to the advice of
your own attorneys shall be conclusive evidence of such good faith. 
  
 (c) You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or Company, excepting only orders or process of courts of law, and are hereby expressly authorized to comply
with and obey orders, judgments or decrees of any court. In case you obey or comply with any such order, judgment or decree of any court, you shall not be liable to any of the parties hereto or to any other person, firm or Company by reason of such
compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction. 
  
 (d) You shall not be liable in any respect on account of the identity, authority or rights of the parties executing or
delivering or purporting to execute or deliver the Agreement or any documents or papers deposited or called for hereunder. 
  
 (e) You shall be entitled to employ such legal counsel and other experts as you may deem necessary properly to advise you in connection with your
obligations hereunder and may rely upon the advice of such counsel. 
  
 (f) Your rights and responsibilities as Escrow Agent hereunder shall terminate if (i) you cease to be Controller of the Company or (ii) you resign by written notice to each party. In the event of a termination under clause (i), your
successor as Controller shall become Escrow Agent hereunder; in the event of a termination under clause (ii), the Company shall appoint a successor Escrow Agent hereunder. 
  
 (g) If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations
in respect hereto, the necessary parties hereto shall join in furnishing such instruments. 
  

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 (h) It is understood and agreed that should any dispute arise with respect to the delivery and/or
ownership or right of possession of the securities held by you hereunder, you are authorized and directed to retain in your possession without liability to anyone all or any part of said securities until such dispute shall have been settled either
by mutual written agreement of the parties concerned or by a final order, decree or judgment of a court competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall be under no duty whatsoever to
institute or defend any such proceedings. 
  
 (i) These Joint
Escrow Instructions set forth your sole duties with respect to any and all matters pertinent hereto and no implied duties or obligations shall be read into these Joint Escrow Instructions against you. 
  
 (j) The Company shall indemnify you and hold you harmless against any and all
damages, losses, liabilities, costs, and expenses, including attorney’s fees and disbursements, for anything done or omitted to be done by you as Escrow Agent in connection with this Agreement or the performance of your duties hereunder, except
such as shall result from your gross negligence or willful misconduct. 
  
 5. Notice. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail with
postage and fees prepaid, addressed to each of the other parties thereunto entitled at the following addresses, or at such other addresses as a party may designate by ten days’ advance written notice to each of the other parties hereto.

  

			
	COMPANY:	    	American Superconductor Corporation
	 	    	Two Technology Drive
	 	    	Westborough, MA 01581
		
	HOLDER:	    	Notices to Holder shall be sent to the address set forth
	 	    	below Holder’s signature below.
		
	ESCROW AGENT:	    	American Superconductor Corporation
	 	    	Two Technology Drive
	 	    	Westborough, MA 01581
	 	    	Attn: Vice President, Finance and Accounting

  

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 6. Miscellaneous. 
  
 (a) By signing these Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint Escrow
Instructions, and you do not become a party to the Agreement. 
  
 (b) This instrument shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
  

			
	Very truly yours,
	
	 AMERICAN SUPERCONDUCTOR CORPORATION

		
	By:	 	  

	 	 	Thomas Rosa
	Title:	 	Vice President, Finance and Accounting
	
	HOLDER:
	  

	(Signature)
	
	  

	Print Name

			
	
	Address:
	
	  

	
	  

		
	Date Signed:	 	  

  

	
	ESCROW AGENT:
	  

	Vice President, Finance and Accounting

  

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 Exhibit B 
  

Stock Assignment 
  
 FOR VALUE RECEIVED, I hereby sell, assign and transfer unto
                     (            ) shares of Common Stock, $[0.01] par
value per share, of                      (the “Corporation”) standing in my name on the books of the Corporation represented by
Certificate(s) Number              herewith, and do hereby irrevocably constitute and appoint
                     attorney to transfer the said stock on the books of the Corporation with full power of substitution in the premises.

  

					
	 	 	Dated:	 	_____________
		
	IN PRESENCE OF	 	  

		
	 	 	  

  
 NOTICE: The
signature(s) to this assignment must correspond with the name as written upon the face of the certificate, in every particular, without alteration, enlargement, or any change whatever and must be guaranteed by a commercial bank, trust company or
member firm of the Boston, New York or Midwest Stock Exchange. 
  

 - 11Form of Stock Option Agreement

 Exhibit 10.4 
  
 AMERICAN SUPERCONDUCTOR CORPORATION 
  

Non-Statutory Stock Option Agreement  
 Granted Under 1997 Directors Stock Option Plan 
  
 1. Grant of
Option. American Superconductor Corporation, a Delaware corporation (the “Company”), hereby grants on this day of , 200 to (the “Optionee”) an option, pursuant to the Company’s 1997 Directors Stock Option Plan (the
“Plan”), to purchase an aggregate of shares of Common Stock (“Common Stock”) of the Company at a price of $ per share, purchasable as set forth in and subject to the terms and conditions of this option and the Plan. Except where
the context otherwise requires, the term “Company” shall include the parent and all present and future subsidiaries of the Company as defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended or replaced from
time to time (the “Code”). 
  
 2. Non-Statutory Stock Option.
This option is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. 
  
 3. Exercise of Option and Provisions for Termination. 
  
 (a) Vesting Schedule. Except as otherwise provided in this Agreement, this option may be exercised prior to the tenth anniversary of the date of
grant (hereinafter the “Expiration Date”). This option is fully vested upon the grant date of             , 200    . 
  
 The right of exercise shall be cumulative so that if the option is not exercised to the
maximum extent permissible during any exercise period, it shall be exercisable, in whole or in part, with respect to all shares not so purchased at any time prior to the Expiration Date or the earlier termination of this option. This option may not
be exercised at any time on or after the Expiration Date, except as otherwise provided in Section 3(e) below. 
  
 (b) Exercise Procedure. Subject to the conditions set forth in this Agreement, this option shall be exercised by the Optionee’s delivery of
written notice of exercise to the Treasurer of the Company, specifying the number of shares to be purchased and the purchase price to be paid therefor and accompanied by payment in full in accordance with Section 4. Such exercise shall be effective
upon receipt by the Treasurer of the Company of such written notice together with the required payment. The Optionee may purchase less than the number of shares covered hereby, provided that no partial exercise of this option may be for any
fractional share or for fewer than ten whole shares. 

 (c) Continuous Relationship with the Company Required. Except as otherwise provided in this
Section 3, this option may not be exercised unless the Optionee, at the time he or she exercises this option, is, and has been at all times since the date of grant of this option, an employee, officer or director of, or consultant or advisor to, the
Company (an “Eligible Optionee”). 
  
 (d) Termination
of Relationship with the Company. If the Optionee ceases to be an Eligible Optionee for any reason, then, except as provided in paragraphs (e) and (f) below, the right to exercise this option shall terminate [60 days] after such cessation (but
in no event after the Expiration Date), provided that this option shall be exercisable only to the extent that the Optionee was entitled to exercise this option on the date of such cessation. Notwithstanding the foregoing, if the Optionee, prior to
the Expiration Date, materially violates the non-competition or confidentiality provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between the Optionee and the Company, the right to exercise this
option shall terminate immediately upon written notice to the Optionee from the Company describing such violation. 
  
 (e) Exercise Period Upon Death or Disability. If the Optionee dies or becomes disabled (within the meaning of Section 22(e)(3) of the Code) prior
to the Expiration Date while he or she is an Eligible Optionee, or if the Optionee dies within three months after the Optionee ceases to be an Eligible Optionee (other than as the result of a termination of such relationship by the Company for
“cause” as specified in paragraph (f) below), this option shall be exercisable, within the period of [180 days] following the date of death or disability of the Optionee (whether or not such exercise occurs before the Expiration Date), by
the Optionee or by the person to whom this option is transferred by will or the laws of descent and distribution, provided that this option shall be exercisable only to the extent that this option was exercisable by the Optionee on the date of his
or her death or disability. Except as otherwise indicated by the context, the term “Optionee”, as used in this option, shall be deemed to include the estate of the Optionee or any person who acquires the right to exercise this option by
bequest or inheritance or otherwise by reason of the death of the Optionee. 
  
 (f) Discharge for Cause. If the Optionee, prior to the Expiration Date, is discharged by the Company for “cause” (as defined below), the right to exercise this option shall terminate immediately upon
such cessation of employment. “Cause” shall mean willful misconduct by the Optionee in connection with the Optionee’s employment or willful failure to perform his or her responsibilities in the best interests of the Company
(including, without limitation, breach by the Optionee of any provision of any employment, consulting, advisory, nondisclosure, non-competition or other similar agreement between the Optionee and the Company), as determined by the Company, which
determination shall be conclusive. The Optionee shall be considered to have been discharged “for cause” if the Company determines, within 30 days after the Optionee’s resignation, that discharge for cause was warranted. 
  

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 4. Payment of Purchase Price. 
  
 (a) Method of Payment. Payment of the purchase price for shares purchased upon exercise of this option shall be made
(i) by delivery to the Company of cash or a check to the order of the Company in an amount equal to the purchase price of such shares, (ii) subject to the consent of the Company, by delivery to the Company of shares of Common Stock of the Company
then owned by the Optionee having a fair market value equal in amount to the purchase price of such shares, (iii) by any other means which the Board of Directors determines are consistent with the purpose of the Plan and with applicable laws and
regulations (including, without limitation, the provisions of Rule 16b-3 under the Securities Exchange Act of 1934 and Regulation T promulgated by the Federal Reserve Board), or (iv) by any combination of such methods of payment. 
  
 (b) Valuation of Shares or Other Non-Cash Consideration Tendered in
Payment of Purchase Price. For the purposes hereof, the fair market value of any share of the Company’s Common Stock or other non-cash consideration which may be delivered to the Company in exercise of this option shall be determined in
good faith by the Board of Directors of the Company. 
  
 (c)
Delivery of Shares Tendered in Payment of Purchase Price. If the Optionee exercises this option by delivery of shares of Common Stock of the Company, the certificate or certificates representing the shares of Common Stock of the Company to be
delivered shall be duly executed in blank by the Optionee or shall be accompanied by a stock power duly executed in blank suitable for purposes of transferring such shares to the Company. Fractional shares of Common Stock of the Company will not be
accepted in payment of the purchase price of shares acquired upon exercise of this option. 
  
 (d) Restrictions on Use of Option Stock. Notwithstanding the foregoing, no shares of Common Stock of the Company may be tendered in payment of the purchase price of shares purchased upon exercise of this option
if the shares to be so tendered were acquired within twelve (12) months before the date of such tender, through the exercise of an option granted under the Plan or any other stock option or restricted stock plan of the Company. 
  
 5. Delivery of Shares; Compliance With Securities Laws, Etc. 
  
 (a) General. The Company shall, upon payment of the option price for
the number of shares purchased and paid for, make prompt delivery of such shares to the Optionee, provided that if any law or regulation requires the Company to take any action with respect to such shares before the issuance thereof, then the date
of delivery of such shares shall be extended for the period necessary to complete such action. 
  
 (b) Listing, Qualification, Etc. This option shall be subject to the requirement that if, at any time, counsel to the Company shall determine that the listing, registration or qualification of the shares
subject hereto upon any securities exchange or under any state or federal law, or the consent or approval of any governmental or regulatory body, or that the disclosure of non-public information or the satisfaction of any other condition is
necessary as a condition of, or in connection with, the issuance or purchase of shares hereunder, this option may not be exercised, 
  

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 in whole or in part, unless such listing, registration, qualification, consent or approval, disclosure or satisfaction of
such other condition shall have been effected or obtained on terms acceptable to the Board of Directors. Nothing herein shall be deemed to require the Company to apply for, effect or obtain such listing, registration, qualification or disclosure, or
to satisfy such other condition. 
  
 6. Nontransferability of Option. This
option is personal and no rights granted hereunder may be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) nor shall any such rights be subject to execution, attachment or similar process, except
that this option may be transferred (i) by will or the laws of descent and distribution, (ii) pursuant to a qualified domestic relations order as defined in Section 414(p) of the Code or (iii) to a member of the immediate family of the Optionee
(which shall mean the Optionee’s spouse, children, parents, grandchildren and siblings) or to a trust established for the benefit of members of the Optionee’s immediate family or the Optionee. Upon any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of this option or of such rights contrary to the provisions hereof, or upon the levy of any attachment or similar process upon this option or such rights, this option and such rights shall, at the election of the
Company, become null and void. 
  
 7. No Special Employment or Similar
Rights. Nothing contained in the Plan or this option shall be construed or deemed by any person under any circumstances to bind the Company to continue the employment or other relationship of the Optionee with the Company for the period within
which this option may be exercised. 
  
 8. Rights as a Shareholder. The
Optionee shall have no rights as a shareholder with respect to any shares which may be purchased by exercise of this option (including, without limitation, any rights to receive dividends or non-cash distributions with respect to such shares) unless
and until a certificate representing such shares is duly issued and delivered to the Optionee. No adjustment shall be made for dividends or other rights for which the record date is prior to the date such stock certificate is issued. 
  
 9. Adjustment Provisions. 
  
 (a) General. If, through or as a result of any merger, consolidation,
sale of all or substantially all of the assets of the Company, reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar transaction, (i) the outstanding shares of Common Stock are
increased or decreased or are exchanged for a different number or kind of shares or other securities of the Company, or (ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed
with respect to such shares of Common Stock or other securities, the Optionee shall, with respect to this option or any unexercised portion hereof, be entitled to the rights and benefits, and be subject to the limitations, set forth in Section 15(a)
of the Plan. 
  
 (b) Board Authority to Make Adjustments.
Any adjustments under this Section 9 will be made by the Board of Directors, whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive. No fractional shares will be issued pursuant
to this option on account of any such adjustments. 
  

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 10. Mergers, Consolidation, Distributions, Liquidations Etc. In the event of a merger or consolidation or sale of
all or substantially all of the assets of the Company in which outstanding shares of Common Stock are exchanged for securities, cash or other property of any other corporation or business entity, or in the event of a liquidation of the Company,
prior to the Expiration Date or termination of this option, the Optionee shall, with respect to this option or any unexercised portion hereof, be entitled to the rights and benefits, and be subject to the limitations, set forth in Section 16(a) of
the Plan. 
  
 11. Withholding Taxes. The Company’s obligation to
deliver shares upon the exercise of this option shall be subject to the Optionee’s satisfaction of all applicable federal, state and local income and employment tax withholding requirements. 
  
 12. Investment Representations; Legends. 
  
 (a) Representations. The Optionee represents, warrants and covenants
that: 
  
 (i) Any shares purchased upon exercise
of this option shall be acquired for the Optionee’s account for investment only, and not with a view to, or for sale in connection with, any distribution of the shares in violation of the Securities Act of 1933 (the “Securities Act”),
or any rule or regulation under the Securities Act. 
  
 (ii) The Optionee has had such opportunity as he or she has deemed adequate to obtain from representatives of the Company such information as is necessary to permit the Optionee to evaluate the merits and risks of his or her investment in
the Company. 
  
 (iii) The Optionee is able to
bear the economic risk of holding such shares acquired pursuant to the exercise of this option for an indefinite period. 
  
 (iv) The Optionee understands that (A) the shares acquired pursuant to the exercise of this option will not be registered under the
Securities Act and are “restricted securities” within the meaning of Rule 144 under the Securities Act; (B) such shares cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under the Securities Act
or an exemption from registration is then available; (C) in any event, an exemption from registration under Rule 144 or otherwise under the Securities Act not be available for at least two years and even then will not be available unless a public
market then exists for the Common Stock, adequate information concerning the Company is then available to the public, and other terms and conditions of Rule 144 are complied with; and (D) there is now no registration statement on file with the
Securities and Exchange Commission with respect to any stock of the Company and the Company has no obligation or current intention to register any shares acquired pursuant to the exercise of this option under the Securities Act. 
  

 5 

 (v) The Optionee agrees that, if the Company offers any of its Common Stock for sale
pursuant to a registration statement under the Securities Act, the Optionee will not, without the prior written consent of the Company, offer, sell, contract to sell or otherwise dispose of, directly or indirectly (a “Disposition”), any
shares purchased upon exercise of this option for a period of 90 days after the effective date of such registration statement. 
  
 By making payment upon exercise of this option, the Optionee shall be deemed to have reaffirmed, as of the date of such payment, the representations made in this Section
12. 
  
 (b) Legends on Stock Certificate. All stock
certificates representing shares of Common Stock issued to the Optionee upon exercise of this option shall have affixed thereto legends substantially in the following forms, in addition to any other legends required by applicable state law:

  
 “The shares of stock represented by this certificate have not been
registered under the Securities Act of 1933 and may not be transferred, sold or otherwise disposed of in the absence of an effective registration statement with respect to the shares evidenced by this certificate, filed and made effective under the
Securities Act of 1933, or an opinion of counsel satisfactory to the Company to the effect that registration under such Act is not required.” 
  
 “The shares of stock represented by this certificate are subject to certain restrictions on transfer contained in an Option Agreement, a copy of which will be
furnished upon request by the issuer.” 
  
 13. Miscellaneous.

  
 (a) Except as provided herein, this option may not be amended
or otherwise modified unless evidenced in writing and signed by the Company and the Optionee. 
  
 (b) All notices under this option shall be mailed or delivered by hand to the parties at their respective addresses set forth beneath their names below or at such other address as may be designated in writing by
either of the parties to one another. 
  
 (c) This option shall be
governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. 
  
 American Superconductor Corporation 
  

			
	By:	 	  

	 	 	Thomas Rosa
	Title:	 	Vice President, Finance and Accounting
	Address:	 	Two Technology Drive
	 	 	Westborough, MA 01581

  

 6 

 OPTIONEE’S ACCEPTANCE 
  
 The undersigned hereby accepts the foregoing option and agrees to the terms and conditions thereof. The undersigned hereby acknowledges receipt of a copy of the
Company’s 1997 Directors’ Stock Option Plan. 
  
 OPTIONEE 
  

	
	  

 

  
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