Document:

exv10w1

Exhibit 10.1

RETIREMENT AND SERVICES AGREEMENT

     This Retirement and Services Agreement (the “Agreement”), dated as of May 23, 2011
(the “Effective Date”), is entered into by and between Gregory J. Yurek
(“Executive”) and American Superconductor Corporation, a Delaware corporation (the
“Company”).

     WHEREAS, Executive and the Company have previously entered into that certain Employment
Agreement, dated as of December 4, 1991 (the “Employment Agreement”), and that certain
Amended and Restated Executive Severance Agreement, dated as of December 23, 2008 (the
“Severance Agreement”); and

     WHEREAS, Executive and the Company desire to implement the succession and retirement plan that
Executive and the Company’s Board of Directors have been discussing since late 2010 and, in
connection with such plan, Executive desires to retire from his employment with the Company
effective as of June 1, 2011.

     NOW, THEREFORE, in exchange for the good and valuable consideration set forth herein, the
adequacy of which is specifically acknowledged, Executive and the Company (“the parties”)
hereby agree as follows:

     1. Retirement; Service Through Retirement Date. Executive’s employment with the
Company shall terminate effective as of 12:01 a.m., Eastern Time, on June 1, 2011 (such time and
date, the “Retirement Date”). Effective as of the Retirement Date, Executive shall no
longer serve as Chief Executive Officer of the Company and shall no longer serve in any officer or
other position with the Company or any of its subsidiaries or affiliates, except as specifically
provided in Section 2. Effective as of the Retirement Date, Executive shall cease to hold
any position (whether as an officer, director, manager, employee, trustee, fiduciary, or otherwise)
with, and shall cease to exercise or convey any authority (actual, apparent, or otherwise) on
behalf of, the Company and its subsidiaries, except as otherwise specifically provided in
Section 2. Between the date hereof and the Retirement Date (the “Transition
Period”), Executive shall report to and take directions from the board of directors of the
Company (the “Board”), and shall use his commercially reasonable best efforts to assist
with the transition of the duties and responsibilities of the chief executive officer of the
Company to Executive’s successor to the position of chief executive officer of the Company, as
determined by the Board (the “New CEO”). In addition, during the Transition Period
Executive shall perform such other duties as reasonably requested by the Board.

     2. Service Following the Retirement Date.

          (a) Service Continuation Period. Notwithstanding anything in this Agreement, the Employment
Agreement or the Severance Agreement to the contrary, for a period of twenty-four (24) months
following the Retirement Date (the “Service Continuation Period”), Executive agrees to
provide, as Senior Advisor, such transitional advisory services (“Advisory Services”) to
the Company and the New CEO, including, without limitation, advising and assisting the New CEO on
strategy, acquisitions, financings, recruiting, customers and shareholder and governmental
relations, as may be reasonably requested by the Company and/or
the New CEO from time to time during the Service Continuation Period. Notwithstanding the

 

 

foregoing, the Company may terminate the Service Continuation Period at any time upon written
notice to the Executive and the Service Continuation Period may be extended by mutual written
agreement of the Company and the Executive. Notwithstanding the foregoing, without limiting
Section 5(c), from and after the Retirement Date, the Company and the Executive intend that
the level of bona fide services which Executive shall perform for the Company pursuant to this
Section 2(a) shall not exceed nineteen percent (19%) of the average level of bona fide
services performed by Executive for the Company as the Chief Executive Officer of the Company over
the thirty-six (36) month period immediately preceding the Retirement Date.

          (b) Board Service. Executive shall continue to serve, in the capacity of a non-employee
director of the Company, as Chairman of the Board (such service, the “Board Services”)
during the period (the “Board Continuation Period”) beginning on the Retirement Date and
ending on the earliest to occur of (i) the date Executive resigns from the Board, (ii) the date of
the first annual meeting of the Company’s stockholders to occur following the Retirement Date,
(iii) the date Executive is removed from the Board for cause and (iv) August 15, 2011. The Company
will maintain a directors’ and officers’ liability insurance policy that covers Executive’s service
as a member of the Board during the Board Continuation Period. Executive shall cease to serve on
the Board effective as of the date upon which the Board Continuation Period expires.

          (c) Compensation. Except as otherwise expressly provided herein and notwithstanding the terms
of any other agreement or any benefit plan of the Company or its affiliates to the contrary, from
and after the Retirement Date, Executive shall not be entitled to any employee or other benefits or
compensation as a result of or in connection with providing the Advisory Services or the Board
Services pursuant to this Section 2.

     3. Payments and Benefits.

          (a) Provided that Executive has not revoked his release of claims arising under the Age
Discrimination in Employment Act pursuant to Section 16 and has complied with his
obligations under Section 1, Section 2 and Section 8, in each case, as
reasonably determined by the Company, the Company will pay or provide to the Executive the
following (collectively, the “Payments”), less applicable withholdings and subject to
Section 5 and Section 10(b):

               (i) an amount in cash equal in the aggregate to $1,250,000, payable in fifteen (15) equal
monthly installments of $83,333.33 upon the last day of each calendar month beginning on June 30,
2011 and ending on and including August 31, 2012;

               (ii) an amount in cash equal to $50,000, payable in a lump sum on September 30, 2012;

               (iii) an amount in cash equal in the aggregate to $700,000, payable in fourteen (14) equal
monthly installments of $50,000 upon the last day of each calendar month beginning on April 30,
2013 and ending on and including May 31, 2014; and

               (iv) for a period of 36 months following the Retirement Date (the “Benefit Continuation
Period”), the Company shall provide to Executive and Executive’s family the opportunity to
continue to receive the medical, dental and vision benefits that are provided to

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the Company’s
active employees, in accordance with the terms and conditions of the applicable benefit plans as in
effect from time to time (to the extent such benefits can continue to be provided to the Executive
and his family, or to the extent such benefits cannot be provided to the Executive and his family,
then the cash equivalent thereof, based on the premium cost thereof to the Company, which cash
amount shall be paid proportionately over the Benefit Continuation Period, monthly in advance);
provided, however (1) that if Executive becomes reemployed with another employer and is eligible to
receive a particular type of benefit (e.g., medical benefits) from such employer on terms at least
as favorable to Executive and his family as those being provided by the Company, then the Company
shall no longer be required to provide those particular benefits to Executive and his family; and
(2) to the extent that such payments are taxable to Executive and/or extend beyond the COBRA
continuation period, then such payments shall be made monthly in advance.

          (b) Executive shall continue to receive the compensation provided in this Section 3,
subject to the limitations in Section 3(a)(iv), in the event the Service Continuation
Period ends pursuant to the Executive’s death or the Company’s termination of the Executive without
Cause (as defined in the Severance Agreement) following the Retirement Date.

          (c) During the Service Continuation Period, the Company shall reimburse Executive for
reasonable travel and other business expenses incurred by Executive at the request of the Company
in the performance of Advisory Services, subject to the Company’s advance review and approval of
any such expenses.

          (d) In addition, the Company will pay or provide to the Executive the following (the
“Accrued Rights”) in a lump-sum cash payment on or as soon as reasonably practicable
following the Retirement Date, less applicable withholdings and subject to Section 5:

               (i) Executive’s annual base salary earned through the Retirement Date and not previously paid,

               (ii) any accrued vacation pay and not previously paid, and

               (iii) any amounts owed to Executive as of the Retirement Date for expenses that are
reimbursable by the Company under the terms of the Employment Agreement and with respect to which
Executive shall have delivered to the Company prior to the Retirement Date documentation acceptable
to the Company.

     4. Equity Awards. The outstanding stock options to purchase common stock of the
Company held by Executive on the Effective Date (the “Options”) shall continue to be
governed by the terms of the applicable plan and stock option agreement following the Effective
Date. The outstanding and unvested shares of restricted stock granted to Executive on May 12, 2009
(award number 3468) and May 12, 2010 (award number 3988) shall be forfeited on the
Retirement Date pursuant to the terms of the applicable restricted stock agreements.

     5. Section 409A.

          (a) No Six Month Delay. For purposes of Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) and the U.S. Department of Treasury

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Regulations and guidance issued or
promulgated under such section (collectively, “Section 409A”), the parties intend that the
Payments set forth in Sections 3(a)(i) and (ii) shall be treated as exempt from
Section 409A under the “short-term deferral” and/or “involuntary separation pay” exemptions and
that such payments therefore shall not be subject to the required six-month delay that would apply
if such payments constituted “non-qualified deferred compensation” under Section 409A.

          (b) Separate Payments. It is intended that each installment of the payments and benefits
provided under Section 3 shall be treated as a separate payment for purposes of Section
409A.

          (c) Separation from Service. For purposes of this Agreement, “Separation from
Service” shall mean Executive’s “separation from service” from the Company, within the meaning
of Section 409A(a)(2)(A)(i) of the Code and Treasury Regulation Section 1.409A-1(h), including the
applicable “default” provisions thereunder. Notwithstanding any other provision of this Agreement,
including, without limitation, Section 2, it is the intention of the parties that Executive
shall incur a Separation from Service as of the Retirement Date, and this Agreement shall be
construed, interpreted and implemented in accordance with such intention.

     6. Existing Agreements. The terms and conditions of Section 4.3 of the
Severance Agreement shall survive the execution of this Agreement and shall apply to any payments
or benefits under this Agreement as if set forth in full herein. The Employee Nondisclosure and
Development Agreement by and between the Company and Executive shall remain in full force and
effect following the Retirement Date, subject to Section 18. Executive hereby waives any
and all rights under the Severance Agreement regarding the receipt of a Notice of Termination (as
defined in the Severance Agreement) in connection with the matters described herein.

     7. Return of Company Property. On the Retirement Date, Executive shall return any
property of the Company (including, without limitation, proprietary information or intellectual
property) that is within Executive’s custody or control, except to the extent such property is
reasonably necessary for Executive to perform the Board Services or Advisory Services, as
determined by the Company. Executive shall return any Company property retained by Executive as
provided in the preceding sentence upon the expiration of (i) the Board Continuation Period if such
property is retained in connection with the performance of Board Services and (ii) the Service
Continuation Period if such property is retained in connection with the performance of Advisory
Services.

     8. Non-Competition; Non-Solicitation; Non-Disparagement.

          (a) Executive shall not, at any time during the Restriction Period (as defined below),
directly or indirectly engage in the business of, have any equity interest in or manage or operate
any person, firm, corporation, partnership or other entity or business (whether as director,
officer, employee, agent, representative, partner, security holder, consultant, proprietor, joint
venturer or otherwise) that engages in any business which competes with any portion of the Business
(as defined below) of the Company anywhere in the Restricted Area (as defined below). Nothing
herein shall prohibit Executive from being a passive owner of not more than 1% of the outstanding
equity interest in any entity that is publicly traded, so long as Executive

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has no active
participation in the business of such entity.

          (b) Executive shall not, at any time during the Restriction Period, directly or indirectly,
recruit or otherwise solicit or induce any employee, customer, subscriber or supplier of the
Company or any prospective employee, customer, subscriber or supplier of the Company (i) to
terminate its employment or arrangement with the Company, or (ii) to otherwise change its
relationship with the Company. In addition, Executive shall not, at any time during the
Restriction Period, directly or indirectly, either for Executive or for any other person or entity
employ such individual during his or her employment with the Company and for a period of six months
after such individual terminates his or her employment with the Company.

          (c) Executive agrees to refrain from disparaging the Company and its affiliates, including,
without limitation, any of their respective products, services, technologies or practices, or any
of their respective directors, officers, employees, agents, representatives or stockholders, either
orally or in writing. The Company agrees to refrain, and use commercially reasonable efforts to
cause its directors and officers to refrain, from disparaging Executive, either orally or in
writing. Nothing in this Section 8(c) shall preclude either party from making truthful
statements that are reasonably necessary to comply with applicable law, regulation or legal
process.

          (d) Executive acknowledges that the restrictions contained in this Section 8 (i) are
in consideration for the rights provided to Executive as set forth in this Agreement and the
Company’s past and future provision of confidential information to Executive, and (ii) represent a
fair balance of the Company’s rights to protect its Business and Executive’s right to pursue
employment. In the event the terms of this Section 8 shall be determined by any court of
competent jurisdiction to be unenforceable by reason of its extending for too great a period of
time or over too great a geographical area or by reason of its being too extensive in any other
respect, it will be interpreted to extend only over the maximum period of time for which it may be
enforceable, over the maximum geographical area as to which it may be enforceable, or to the
maximum extent in all other respects as to which it may be enforceable, all as determined by such
court in such action.

          (e) As used in this Section 8, (i) the term “Company” shall include the
Company and its direct and indirect parents and subsidiaries, (ii) the term “Business”
shall mean the Business of the Company or its subsidiaries or affiliates and any business that is
competitive with the business, work or projects of the Company or its subsidiaries or affiliates,
as such business, work or projects may have been conducted or contemplated during (A) the term of
Executive’s employment with the Company or (B) the Service Continuation Period; (iii) the term
“Restricted Area” shall mean anywhere in the world and (iv) the term “Restriction
Period” shall mean the period beginning on the Retirement Date and ending on the third
anniversary of the Retirement Date.

     9. Injunctive Relief. It is recognized and acknowledged by Executive that a breach of
the covenants contained in Section 8 will cause irreparable damage to the Company and its
goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the
remedies at law for any such breach will be inadequate. Accordingly, Executive agrees that in the
event of a breach of any of the covenants contained in Section 8, in addition to any other

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remedy which may be available at law or in equity, the Company will be entitled to specific
performance and injunctive relief.

     10. General Release and Waiver.

          (a) Release. In consideration of the Payments, Executive, on behalf of himself and his
representatives, agents, estate, heirs, successors and assigns, hereby irrevocably and
unconditionally releases, remises and discharges the Company, its officers, directors,
stockholders, affiliates (within the meaning of the Securities Act of 1933), attorneys, agents and
employees, and their respective predecessors, successors and assigns (collectively, the
“Company Releasees”), from any and all actions or causes of action, suits, claims,
complaints, liabilities, contracts, torts, debts, damages, controversies, rights and demands,
whether existing or contingent, known or unknown, arising up to and through the later of the
Retirement Date and the Effective Date out of Executive’s employment, or the termination of
Executive’s employment, with the Company, including, but not limited to, all employment
discrimination claims under the Age Discrimination in Employment Act, 29 U.S.C. §621 et seq., Title
VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act
of 1990, 42 U.S.C. § 12101 et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the
Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101 et seq., the Massachusetts Fair
Employment Practices Act, M.G.L. c.151B, § 1 et seq., the Massachusetts Civil Rights Act, M.G.L.
c.12, §§ 11H and 11I, the Massachusetts Equal Rights Act, M.G.L. c.93, § 102 and M.G.L. c.214, §
1C, the Massachusetts Labor and Industries Act, M.G.L. c.149, § 1 et seq., and the Massachusetts
Privacy Act, M.G.L. c.214, § 1B, all as amended, and all claims arising out of the Fair Credit
Reporting Act, 15 U.S.C. § 1681 et seq. and the Employee Retirement Income Security Act of 1974, 29
U.S.C. § 1001 et seq., all as amended; and all claims to any non-vested ownership interest in the
Company, contractual or otherwise, including, but not limited to, claims to stock or stock options.
Notwithstanding the foregoing, (i) nothing in this release prevents Executive from filing,
cooperating with, or participating in any proceeding before the U.S. Equal Employment Opportunity
Commission or a state Fair Employment Practices Agency (except that Executive acknowledges that he
may not recover any monetary benefits in connection with any such claim, charge or proceeding),
(ii) this release does not extend to any rights Executive has that arise after the later of the
Retirement Date or the Effective Date or to any rights to payments under and in accordance with the
terms of this Agreement and (iii) this release does not extend to any rights Executive may have
under the Company’s directors’ and officers’ liability insurance policy or to indemnification as an
officer
or director of the Company under the provisions of the Company’s by-laws or applicable law.

          (b) Bring Down Release. As a condition to continuing to receive the Payments following the
date on which the Service Continuation Period expires, the Executive shall execute and deliver to
the Company a release in the form attached hereto as Exhibit A (the “Bring Down
Release”) on the date upon which the Service Continuation Period expires or Executive will
forfeit all remaining Payments.

     11. Covenant Not to Sue. Executive agrees that he will never sue or file a lawsuit
against any Company Releasee including, without limitation, any lawsuit concerning or in any way
related to his employment, the termination of that employment, the compensation or benefits payable
in connection with his employment, or any other interaction with or matter

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pertaining to the
Company Releasees, and that no such suit is currently pending. Should Executive violate any aspect
of this Section 11, Executive agrees that any suit shall be null and void. Executive also
agrees that if a claim or charge of any kind should be raised, brought, or filed in his name or on
his behalf, Executive waives any right to, and agrees not to benefit from or take, any resulting
award. This Agreement, including, without limitation, this Section 11, shall not operate
to waive or bar any claim which by express and unequivocal terms of law may not under any
circumstances be waived or barred.

     12. No Other Payments. Executive understands and agrees that the Company shall make
any no other payments to Executive and shall have no other obligations to Executive, except as
described in this Agreement and that, except as otherwise set forth in this Agreement, all payments
or benefits which are provided to Executive by the Company shall terminate on the Retirement Date.
Without limiting the generality of the foregoing, Executive acknowledges and agrees that Executive
shall not be entitled to any bonus in respect of the Company’s 2010 or 2011 fiscal year or any
fiscal year during the Service Continuation Period.

     13. Taxes. To the extent any taxes may be due on the payments to Executive provided
in this Agreement beyond any withheld by the Company, Executive agrees to pay them himself.
Executive further agrees to provide any and all information pertaining to Executive upon request as
reasonably necessary for the Company and other entities released herein to comply with applicable
tax laws.

     14. Severability. Except as otherwise specified below, should any portion of this
Agreement (including, without limitation, Section 8) be found void or unenforceable for any
reason by a court of competent jurisdiction, the court should attempt to limit or otherwise modify
such provision so as to make it enforceable, and if such portion cannot be modified to be
enforceable, the unenforceable portion shall be deemed severed from the remaining portions of this
Agreement, which shall otherwise remain in full force and effect. If any portion of this Agreement
is so found to be void or unenforceable for any reason in regard to any one or more persons,
entities, or subject matters, such portion shall remain in full force and effect with respect to
all other persons, entities, and subject matters. In the event Executive should in the future
contend that Executive’s agreement to Section 8 hereof or release of claims pursuant to
this Agreement (including, without limitation, the Bring Down Release) is for any reason void,
imperfect, or incomplete, Executive may not pursue any claim against the Company (or any other
party intended to be released thereby) to establish the invalidity of such agreement or release, or
premised (in whole or in part) on the invalidity of such agreement or release, before or without
repaying to the Company the full amount of the Payments provided to Executive under this Agreement
and applicable statutes of limitations shall be deemed to run in regard to Executive’s claims
without regard to the parties’ entry into this Agreement. The preceding sentence shall not operate
to limit the scope or effect of Executive’s covenant not to sue as set forth in Section 11.

     15. Understanding and Authority. The parties understand and agree that all terms of
this Agreement are contractual and are not a mere recital, and represent and warrant that they are
competent to covenant and agree as herein provided.

     16. Release of Age Discrimination Claims; Periods for Review and Reconsideration.

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          (a) Executive understands that this Agreement includes a release of claims arising under the
Age Discrimination in Employment Act. Executive understands, agrees and represents that the
covenants made herein may affect rights and liabilities of substantial extent and agrees that the
covenants and releases provided herein are in Executive’s best interest. Executive acknowledges
under penalties of perjury that (i) Executive has been and is hereby advised to consult with an
attorney prior to executing this Agreement; (ii) Executive has been given a period of twenty-one
(21) days within which to consider this Agreement; (iii) Executive has signed this Agreement free
of duress or coercion; and (iv) Executive is fully aware of his rights, and has carefully read and
fully understands all provisions of this Agreement before signing. Further, Executive represents
and warrants that in negotiating and executing this Agreement he has had an adequate opportunity to
consult with competent legal counsel of Executive’s choosing concerning the meaning and effect of
each term and provision hereof, and that there are no representations, promises, or agreements
between the Company and Executive other than those expressly set forth in writing herein.

          (b) Executive further warrants that he understands that, with respect to the release of age
discrimination claims only, he has seven (7) days after signing on the second signature line below
to revoke the release of age discrimination claims by notice in writing to American Superconductor
Corporation, 64 Jackson Road, Devens, Massachusetts 01434, Attention: General Counsel.
Notwithstanding anything in this Agreement to the contrary and except with respect to the first
$50,000 set forth in Section 3(a)(i), the Company shall have no obligation to pay any of
the amounts set forth in Section 3 in the event Executive revokes the release of age
discrimination claims, but all other provisions of this Agreement shall remain in full force and
effect.

     17. Indemnification. No amendment, termination or repeal of Article VI of the
Company’s by-laws or of the relevant provisions of the Delaware General Corporation Law or any
other applicable laws shall affect or diminish in any way the rights Executive may have under the
Company’s directors’ and officers’ liability insurance policy or the rights of Executive to
indemnification under the provisions of Article VI of the Company’s by-laws with respect to
any action, suit, proceeding or investigation arising out of or relating to any actions,
transactions or facts occurring prior to the final adoption of such amendment, termination or
repeal.

     18. Entire Agreement. This Agreement contains the entire agreement and understanding
between Executive and the Company concerning the matters described herein. This Agreement
supersedes all prior agreements, discussions, negotiations, understandings and proposals of the
parties concerning matters described herein, including but not limited to any rights to receive any
compensation, severance or similar payments under the Employment Agreement, the Severance
Agreement, any Award agreement or any other agreement with the Company or its subsidiaries. The
terms of this Agreement cannot be changed except in a subsequent document signed by Executive and a
duly authorized officer of the Company. The Company may assign this Agreement to any party without
Executive’s consent.

     19. Choice of Law. This Agreement shall be governed by and interpreted in accordance
with the law of the Commonwealth of Massachusetts, without regard to the law of conflicts of that
state that would result in the application of the laws of any other jurisdiction.

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     20. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one instrument.

     21. Voluntary Agreement. Executive represents and warrants that in negotiating and
executing this Agreement Executive has had an adequate opportunity to consult with competent legal
counsel of Executive’s choosing concerning the meaning and effect of each term and provision
hereof, and that there are no representations, promises, or agreements between the Company and
Executive other than those expressly set forth in writing herein. The parties have carefully read
this Agreement in its entirety; fully understand and agree to its terms and provisions; and intend
and agree that it is final and binding on all parties.

     22. Successors. This Agreement shall be binding upon the Company and its successors
and assigns. In the event of a merger of the Company with or into, or the sale of substantially all
of the assets of the Company to, another corporation or other entity, the Company shall cause this
Agreement to be assumed the successor corporation or other entity or by an affiliate of the
successor corporation or other entity. This Agreement shall inure to the benefit of and be
enforceable by Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If Executive should die while any amount
would still be payable to Executive or his family hereunder if Executive had continued to live, all
such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the executors, personal representatives or administrators of Executive’s estate.

     23. Attorneys Fees. The Company shall pay for the reasonable and documented legal
fees incurred by Executive on or prior to the Effective Date in connection with the negotiation of
this Agreement, up to a maximum of $10,000.

[Signature Page Follows]

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     IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed the foregoing
on the dates shown below.

	 	 	 	 	 
	 	AMERICAN SUPERCONDUCTOR CORPORATION

 	 
	 	By:  	/s/ Peter O. Crisp
 	                    Date:      5/23/11 
	 	 	Name:  	Peter O. Crisp 	 
	 	 	Title:  	Chairman of the Compensation Committee 	 
	 

ACKNOWLEDGEMENT (AS TO ALL CLAIMS

OTHER THAN AGE DISCRIMINATION CLAIMS)

     The undersigned, having had full opportunity to review this Agreement with counsel of
his choosing, signifies his agreement to the terms of this Agreement (other than as it
relates to age discrimination claims) by his signature below.

	 	 	 	 	 
	 	EXECUTIVE

/s/ Gregory J. Yurek

 	                    Date: 5/23/11 
	 	Gregory J. Yurek 	 

ACKNOWLEDGEMENT (AGE DISCRIMINATION CLAIMS)

     The undersigned, having had full opportunity to review this Agreement with counsel of
his choosing, signifies his agreement to the terms of this Agreement (as it relates to age
discrimination claims) by his signature below.

	 	 	 	 	 
	 	EXECUTIVE

/s/ Gregory J. Yurek

 	                    Date: 5/23/11 
	 	Gregory J. Yurek 	 

 

EXHIBIT A

Bring Down Release

     This Release Agreement (this “Agreement”), dated as of _________, 20__ (the
“Effective Date”), is made by and between Gregory J. Yurek (“Executive”) and
American Superconductor Corporation, a Delaware corporation (the “Company”). Capitalized
terms used but not defined in this Agreement shall have the meanings set forth in that certain
Retirement and Services Agreement, dated as of May 23, 2011, by and between Executive and the
Company (the “Retirement Agreement”).

     WHEREAS, Executive and the Company have previously entered into the Retirement Agreement;

     WHEREAS, pursuant to the terms of the Retirement Agreement, Executive’s right to continue to
receive Payments following the date upon which the Service Continuation Period expires is
contingent upon Executive executing and delivering this Agreement to the Company on such date; and

     WHEREAS, Executive and the Company wish to resolve any and all disputes, claims, complaints,
grievances, charges, actions, petitions, and demands that Executive may have against the Company
and any of the Company Releasees (as defined below) including, but not limited to, any and all
claims arising out of or in any way related to Executive’s employment or other service relationship
with or separation from the Company or its subsidiaries or affiliates.

     NOW, THEREFORE, in consideration of the Company’s agreement to continue to provide the
Payments as set forth in the Retirement Agreement and the mutual promises made herein, the Company
and Executive hereby agree as follows:

     1. General Release and Waiver. Executive, on behalf of himself and his
representatives, agents, estate, heirs, successors and assigns, hereby irrevocably and
unconditionally releases, remises and discharges the Company, its officers, directors,
stockholders, affiliates (within the meaning of the Securities Act of 1933), attorneys, agents and
employees, and their respective predecessors, successors and assigns (collectively, the
“Company Releasees”), from any and all actions or causes of action, suits, claims,
complaints, liabilities, contracts, torts, debts, damages, controversies, rights and demands,
whether existing or contingent, known or unknown, arising up to and through the Effective Date out
of Executive’s employment, or the termination of Executive’s employment, with the Company,
including, but not limited to, all employment discrimination claims under the Age Discrimination in
Employment Act, 29 U.S.C. §621 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. §
2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Family
and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification
Act, 29 U.S.C. § 2101 et seq., the Massachusetts Fair Employment Practices Act, M.G.L. c.151B, § 1
et seq., the Massachusetts Civil Rights Act, M.G.L. c.12, §§ 11H and 11I, the Massachusetts Equal
Rights Act, M.G.L. c.93, § 102 and M.G.L. c.214, § 1C, the Massachusetts Labor and Industries Act,
M.G.L. c.149, § 1 et seq., and the Massachusetts Privacy Act, M.G.L. c.214, § 1B, all as amended,
and all claims arising out of the Fair Credit

A-1

 

Reporting Act, 15 U.S.C. § 1681 et seq. and the Employee Retirement Income Security Act of
1974, 29 U.S.C. § 1001 et seq., all as amended; and all claims to any non-vested ownership interest
in the Company, contractual or otherwise, including, but not limited to, claims to stock or stock
options. Notwithstanding the foregoing, (a) nothing in this release prevents Executive from filing,
cooperating with, or participating in any proceeding before the U.S. Equal Employment Opportunity
Commission or a state Fair Employment Practices Agency (except that Executive acknowledges that he
may not recover any monetary benefits in connection with any such claim, charge or proceeding), (b)
this release does not extend to any rights Executive has that arise after the Effective Date or to
any rights to payments after the date hereof that arise under the Retirement Agreement and (c) this
release does not extend to any rights Executive may have under the Company’s directors’ and
officers’ liability insurance policy or to indemnification as an officer or director of the Company
under the provisions of the Company’s by-laws or applicable law.

     2. Severability. In the event that any provision or any portion of any provision
hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent
jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in
full force and effect without said provision or portion of provision.

     3. No Oral Modification. This Agreement may only be amended in a writing signed by
Employee and a duly authorized officer of the Company.

     4. Voluntary Agreement. Executive represents and warrants that in negotiating and
executing this Agreement Executive has had an adequate opportunity to consult with competent legal
counsel of Executive’s choosing concerning the meaning and effect of each term and provision
hereof, and that there are no representations, promises, or agreements between the Company and
Executive other than those expressly set forth in writing herein or in the Retirement Agreement.
The parties have carefully read this Agreement in its entirety; fully understand and agree to its
terms and provisions; and intend and agree that it is final and binding on all parties.

     5. Choice of Law. This Agreement shall be governed by and interpreted in accordance
with the law of the Commonwealth of Massachusetts, without regard to the law of conflicts of that
state that would result in the application of the laws of any other jurisdiction.

[Signature Page Follows]

A-2

 

     IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this
Agreement as of the date first set forth above.

	 	 	 	 	 
	 	AMERICAN SUPERCONDUCTOR CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	EXECUTIVE

 	 
	 	Gregory J. Yurek 	 

A-3exv10w2

Exhibit 10.2

AMERICAN SUPERCONDUCTOR CORPORATION

Amended and Restated Executive Severance Agreement

     THIS AMENDED AND RESTATED EXECUTIVE SEVERANCE AGREEMENT (this “Agreement”) by and
between American Superconductor Corporation, a Delaware corporation (the “Company”), and
Daniel P. McGahn (the “Executive”) is made as of May 24, 2011 (the “Effective
Date”).

     WHEREAS, the Executive and the Company have previously entered into that certain Amended and
Restated Executive Severance Agreement, dated as of December 23, 2008, as amended (the “Prior
Agreement”);

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined it is in
the best interests of the Company and its stockholders to amend and restate the Prior Agreement in
connection with the Executive’s appointment to the position of President and Chief Executive
Officer of the Company;

     WHEREAS, the Company and the Executive acknowledge and agree that the benefits described in
this Agreement are not intended to, and shall not, constitute a severance plan, and shall confer no
benefit on anyone other than the parties hereto; and

     WHEREAS, the Company and the Executive desire to amend and restate the Prior Agreement as set
forth herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Executive and the Company hereby agree as follows:

     1. Definitions.

     As used herein, the following terms shall have the following respective meanings:

          1.1 “Change in Control” means an event or occurrence set forth in any one or more of
subsections (a) through (c) below:

               (a) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a
“Person”) of beneficial ownership of any capital stock of the Company if, after such
acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) 50% or more of either (x) the then-outstanding shares of common stock of the Company
(the “Outstanding Company Common Stock”) or (y) the combined voting power of the
then-outstanding securities of the Company entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”); provided, however, that for
purposes of this subsection (a), the following acquisitions shall not constitute a Change in
Control: (i) any acquisition directly from the Company, or (ii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company; or

 

 

               (b) the Continuing Directors (as defined below) no longer constituting a majority of the Board
(or, if applicable, the Board of Directors of a successor corporation to the Company), where the
term “Continuing Director” means at any date a member of the Board (i) who was a member of
the Board on the Effective Date or (ii) who was nominated or elected subsequent to the Effective
Date by at least a majority of the directors who were Continuing Directors at the time of such
nomination or election or whose election to the Board was recommended or endorsed by at least a
majority of the directors who were Continuing Directors at the time of such nomination or election;
provided, however, that there shall be excluded from this clause (ii) any
individual whose initial assumption of office occurred as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents, by or on behalf of a person other than the Board; or

               (c) the consummation of a merger, consolidation, reorganization, recapitalization or statutory
share exchange involving the Company or a sale or other disposition of all or substantially all of
the assets of the Company in one or a series of related transactions (a “Business
Combination”), other than a Business Combination in which all or substantially all of the
individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, immediately following such Business Combination, more than 50% of the
then-outstanding shares of common stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors, respectively, of the resulting
or acquiring corporation in such Business Combination (which shall include, without limitation, a
corporation which as a result of such transaction owns the Company or substantially all of the
Company’s assets either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Business Combination, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, respectively.

          1.2 “Change in Control Date” means the first date during the Term (as defined in
Section 2) on which a Change in Control occurs.

          1.3 “Cause” means:

               (a) the Executive’s failure to perform his reasonable assigned duties to the standards
reasonably required by the Company (other than any such failure resulting from incapacity due to
physical or mental illness), which failure is not cured within 30 days after a written notice is
received by the Executive from the Company describing in reasonable detail the manner in which the
Board of Directors believes the Executive has not performed the Executive’s duties to the standards
reasonably required by the Company; or

               (b) the Executive’s willful engagement in illegal conduct or gross misconduct that is
materially injurious to the Company. For purposes of this Section 1.3(b), no act or failure to act
by the Executive shall be considered “willful” unless it is done intentionally and without
reasonable belief that the Executive’s action was in the best interests of the Company.

2

 

          1.4 “Good Reason” means the occurrence, without the Executive’s written consent, of
any of the following events or circumstances:

               (a) a material diminution in the Executive’s base compensation; or

               (b) a material diminution in the Executive’s authority, duties, or responsibilities; or

               (c) a material change in the geographic location at which the Executive must perform his
duties; or

               (d) any other action or inaction of the Company which constitutes a material breach by the
Company of this Agreement.

     Any termination by the Executive for Good Reason shall be communicated by means of a written
notice delivered by the Executive to the Company within 90 days of the initial existence of the
occurrence or condition on which the Executive bases his claim for Good Reason. If the condition
is capable of being corrected, the Company shall have 30 days during which it may remedy the
condition (the “Cure Period”). Notwithstanding the occurrence of any such event or
circumstance, such occurrence shall not be deemed to constitute Good Reason if such event or
circumstance has been fully corrected within the Cure Period and the Executive has been reasonably
compensated for any losses or damages resulting therefrom. If the condition is not corrected, the
Executive must leave employment within one (1) year after the Company fails to cure the condition
giving rise to the Executive’s claim for Good Reason during the Cure Period.

          1.5 “Disability” means the Executive’s absence from the full-time performance of the
Executive’s duties with the Company for 180 consecutive calendar days as a result of incapacity due
to mental or physical illness which is determined to be total and permanent by a physician selected
by the Company or its insurers and acceptable to the Executive or the Executive’s legal
representative.

          1.6 “Severance Period” shall mean the period of 24 months immediately following the
Date of Termination.

     2. Term of Agreement. This Agreement, and all rights and obligations of the parties
hereunder, shall take effect upon the Effective Date and shall expire upon the first to occur of
(a) the expiration of the Term (as defined below) if neither a termination of employment covered by
Section 4.1(a) below nor a Change in Control occurred during the Term, or (b) the fulfillment by
the Company and the Executive of all of their respective obligations under this Agreement following
a termination of the Executive’s employment with the Company. “Term” shall mean the period
commencing as of the Effective Date and continuing in effect through March 31, 2015;
provided, however, that commencing on April 1, 2012 and each April 1 thereafter (each
hereinafter referred to as a “Renewal Date”), the Term shall be automatically extended for
one additional year so as to terminate four years from such Renewal Date, unless at least 90 days
prior to such Renewal Date, the Company shall have given the Executive written notice that the Term
will not be extended.

     3. Employment Status; Termination Following Change in Control.

3

 

          3.1 Not an Employment Contract. The Executive acknowledges that this Agreement does
not constitute a contract of employment or impose on the Company any obligation to retain the
Executive as an employee and that this Agreement does not prevent the Company or the Executive from
terminating his employment at any time, before or after a Change in Control.

          3.2 Termination of Employment.

               (a) Any termination of the Executive’s employment by the Company at any time during the Term
or at any time after the Change in Control Date, or by the Executive within 12 months following the
Change in Control Date (other than due to the death of the Executive) shall be communicated by a
written notice to the other party hereto (the “Notice of Termination”), given in accordance
with Section 7.2. Any Notice of Termination shall: (i) indicate (in the case of a termination by
the Company) whether such termination is for Cause and (in the case of a termination by the
Executive within 12 months following the Change in Control Date) whether such termination is for
Good Reason, (ii) to the extent applicable, set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment for Cause or
for Good Reason and (iii) specify the Date of Termination (as defined below). The effective date
of an employment termination (the “Date of Termination”) shall be the close of business on
the date specified in the Notice of Termination (which date may not be less than 15 days or more
than 120 days after the date of delivery of such Notice of Termination) in the case of a
termination other than one due to the Executive’s death, or the date of the Executive’s death, as
the case may be.

               (b) The failure by the Executive or the Company to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the Executive or the
Company, respectively, from asserting any such fact or circumstance in enforcing the Executive’s or
the Company’s rights hereunder.

               (c) Any Notice of Termination for Cause given by the Company must be given within 90 days of
the occurrence of the event(s) or circumstance(s) that constitute(s) Cause.

               (d) Any Notice of Termination for Good Reason given by the Executive must be given within 90
days of the occurrence of the event(s) or circumstance(s) that constitute(s) Good Reason.

     4. Benefits to Executive.

          4.1 Termination Prior to Change in Control Date.

               (a) Termination Without Cause. If, prior to the Change in Control Date (including a
situation in which the Change in Control Date never occurs), the Company terminates the Executive’s
employment other than for Cause, Disability or death, then, provided Executive has complied with
his obligations under Section 6, the Executive shall be entitled to the following benefits, the
distribution of which shall be subject to the provisions of Sections 4.4 and 4.7:

4

 

                    (i) the Company shall pay to the Executive, in a lump sum in cash on the Date of Termination,
the sum of the following amounts: (1) the Executive’s base salary through the Date of Termination,
(2) any compensation previously deferred by the Executive (together with any accrued interest or
earnings thereon) and (3) any accrued vacation pay, in each case to the extent not previously paid
(the sum of the amounts described in clauses (1) through (3) shall be hereinafter referred to as
the “Accrued Obligations”);

                    (ii) during the Severance Period, the Company shall continue to pay to the Executive, in
accordance with the Company’s regular payroll practices, the Executive’s highest annual base salary
during the two-year period prior to the Date of Termination; and

                    (iii) during the Severance Period, the Company shall continue to provide to the Executive and
the Executive’s family the opportunity to continue to receive the medical, dental and vision
benefits that are provided to the Company’s active employees, in accordance with the applicable
Benefit Plans in effect on the Date of Termination (to the extent such benefits can continue to be
provided to the Executive and his family, or to the extent such benefits cannot be provided to the
Executive and his family, then the cash equivalent thereof, based on the premium cost thereof to
the Company, which cash amount shall be paid proportionately over the Severance Period, monthly in
advance); provided, however: (1) that if the Executive becomes reemployed with
another employer and is eligible to receive a particular type of benefits (e.g., medical insurance
benefits) from such employer on terms at least as favorable to the Executive and his family as
those being provided by the Company, then the Company shall no longer be required to provide those
particular benefits to the Executive and his family; and (2) to the extent that such payments are
taxable to the Executive and/or extend beyond the COBRA continuation period, then such payments
shall be made monthly in advance.

               (b) Other Terminations. If, prior to the Change in Control Date, the Executive’s
employment with the Company is terminated other than under the circumstances described in Section
4.1(a), then the Company shall (i) pay the Executive (or his estate, if applicable), in a lump sum
in cash on the Date of Termination, the Accrued Obligations and (ii) to the extent not previously
paid or provided, timely pay or provide to the Executive any other amounts or benefits required to
be paid or provided or which the Executive is eligible to receive following the Executive’s
termination of employment under any plan, program, policy, practice, contract or agreement of the
Company and its subsidiaries (such other amounts and benefits shall be hereinafter referred to as
the “Other Benefits”), the distribution of which shall be subject to the provisions of
Section 4.7.

          4.2 Termination Following Change in Control Date.

               (a) Termination within 12 Months Following Change in Control Date. If the Company
terminates the Executive’s employment other than for Cause, Disability or death within 12 months
following the Change in Control Date, or if the Executive terminates his employment for Good Reason
within 12 months following the Change in Control Date, then, provided Executive has complied with
his obligations under Section 6, the Executive shall be entitled to the following benefits, the
distribution of which shall be subject to the provisions of Sections 4.4 and 4.7:

5

 

                    (i) the Company shall pay to the Executive, in a lump sum in cash on the Date of Termination,
(A) the Accrued Obligations and (B) the product of (x) the annual target bonus payable to the
Executive for the fiscal year in which the Date of Termination occurs and (y) a fraction, the
numerator of which is the number of days in the then-current fiscal year through the Date of
Termination, and the denominator of which is 365, less any portion of such bonus previously paid to
the Executive;

                    (ii) during the Severance Period, the Company shall continue to pay to the Executive, in
accordance with the Company’s regular payroll practices, the Executive’s highest annual base salary
during the two-year period prior to the Date of Termination; and

                    (iii) during the Severance Period, the Company shall continue to provide to the Executive and
the Executive’s family the opportunity to continue to receive the medical, dental and vision
benefits that are provided to the Company’s active employees, in accordance with the applicable
Benefit Plans in effect on the Date of Termination (to the extent such benefits can continue to be
provided to the Executive and his family, or to the extent such benefits cannot be provided to the
Executive and his family, then the cash equivalent thereof, based on the premium cost thereof to
the Company, which cash amount shall be paid proportionately over the Severance Period, monthly in
advance); provided, however: (1) that if the Executive becomes reemployed with
another employer and is eligible to receive a particular type of benefits (e.g., medical insurance
benefits) from such employer on terms at least as favorable to the Executive and his family as
those being provided by the Company, then the Company shall no longer be required to provide those
particular benefits to the Executive and his family; and (2) to the extent that such payments are
taxable to the Executive and/or extend beyond the COBRA continuation period, then such payments
shall be made monthly in advance.

               (b) Termination More Than 12 Months Following Change in Control Date. If the Company
terminates the Executive’s employment other than for Cause, Disability or death more than 12 months
following the Change in Control Date, then, provided Executive as complied with his obligations
under Section 6, the Executive shall be entitled to the following benefits, the distribution of
which shall be subject to the provisions of Sections 4.4 and 4.7:

                    (i) the Company shall pay to the Executive, in a lump sum in cash on the Date of Termination,
the Accrued Obligations;

                    (ii) during the Severance Period, the Company shall continue to pay to the Executive, in
accordance with the Company’s regular payroll practices, the Executive’s highest annual base salary
during the two-year period prior to the Date of Termination; and

                    (iii) during the Severance Period, the Company shall continue to provide to the Executive and
the Executive’s family the opportunity to continue to receive the medical, dental and vision
benefits that are provided to the Company’s active employees, in accordance with the applicable
Benefit Plans in effect on the Date of Termination (to the extent such benefits can continue to be
provided to the Executive and his family, or to the extent such benefits cannot be provided to the
Executive and his family, then the cash equivalent thereof,

6

 

based on the premium cost thereof to the Company, which cash amount shall be paid
proportionately over the Severance Period, monthly in advance); provided, however:
(1) that if the Executive becomes reemployed with another employer and is eligible to receive a
particular type of benefits (e.g., medical insurance benefits) from such employer on terms at least
as favorable to the Executive and his family as those being provided by the Company, then the
Company shall no longer be required to provide those particular benefits to the Executive and his
family; and (2) to the extent that such payments are taxable to the Executive and/or extend beyond
the COBRA continuation period, then such payments shall be made monthly in advance.

               (c) Other Terminations. If, following the Change in Control Date, the Executive’s
employment with the Company is terminated other than under the circumstances described in Section
4.2(a) or Section 4.2(b), then the Company shall (i) pay the Executive (or his estate, if
applicable), in a lump sum in cash on the Date of Termination, the Accrued Obligations and (ii) to
the extent not previously paid or provided, timely pay or provide to the Executive the Other
Benefits, the distribution of which shall be subject to the provisions of Section 4.7.

               (d) Expenses. Subject to Section 4.7, the Company agrees to reimburse the Executive
for all legal and other fees and expenses that the Executive reasonably incurs as a result of any
claim or dispute regarding the benefits due to the Executive pursuant to this Section 4.2 if the
Executive prevails in such claim or dispute.

          4.3 Section 280G Provisions.

               (a) Notwithstanding any other provision of this Agreement, in the event that the Company
undergoes a Change in Ownership or Control (as defined below), the Company shall not be obligated
to provide to the Executive a portion of any Contingent Compensation Payments (as defined below)
that the Executive would otherwise be entitled to receive to the extent necessary to eliminate
Excess Parachute Payments (as defined below) for the Executive, except as set forth in Section
4.3(b). For purposes of this Section 4.3, the Contingent Compensation Payments so eliminated shall
be referred to as the “Eliminated Payments” and the aggregate amount (determined in
accordance with the Treasury Regulations codified at 26 C.F.R. § 1.280G-1, as may be amended, or
any successor regulations thereto (the “280G Regulations”)) of the Contingent Compensation
Payments so eliminated shall be referred to as the “Eliminated Amount.”

               (b) Notwithstanding the provisions of Section 4.3(a), no such reduction in Contingent
Compensation Payments shall be made if (i) the Eliminated Amount (computed without regard to this
sentence) exceeds (ii) 110% of the aggregate present value (determined in accordance with the 280G
Regulations) of the amount of any additional taxes that would be incurred by the Executive if the
Eliminated Payments (determined without regard to this sentence) were paid to him (including, state
and federal income taxes on the Eliminated Payments, the excise tax imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended (the “Code”, which term shall include applicable
Treasury Regulations), payable with respect to all of the Contingent Compensation Payments in
excess of the Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code), and any
withholding taxes). The override of such reduction in Contingent Compensation Payments pursuant to
this Section 4.3(b)

7

 

shall be referred to as a “Section 4.3(b) Override.” For purposes of this paragraph,
if any federal, state or local income taxes would be attributable to the receipt of any Eliminated
Payment, the amount of such taxes shall be computed by multiplying the amount of the Eliminated
Payment by the maximum combined federal, state and local income tax rate provided by law.

               (c) For purposes of this Section 4.3 the following terms shall have the following respective
meanings:

                    (i) “Change in Ownership or Control” shall mean a change in the ownership or effective
control of the Company or in the ownership of a substantial portion of the assets of the Company
determined in accordance with Section 280G(b)(2) of the Code.

                    (ii) “Contingent Compensation Payment” shall mean any payment (or benefit) in the
nature of compensation that is made or made available (under this Agreement or otherwise) to a
“disqualified individual” (as defined in Section 280G(c) of the Code) and that is contingent
(within the meaning of Section 280G(b)(2)(A)(i) of the Code) on a Change in Ownership or Control of
the Company.

                    (iii) “Excess Parachute Payment” shall mean a payment described in Section 280G(b)(1)
of the Code.

               (d) Any payments or other benefits otherwise due to the Executive following a Change in
Ownership or Control that could reasonably be characterized (as determined by the Company) as
Contingent Compensation Payments (the “Potential Payments”) shall not be made until the
dates provided for in this Section 4.3(d).

                    (i) In the event that the Company undergoes a Change in Ownership or Control, and the
Executive becomes entitled to receive Contingent Compensation Payments relating to such Change in
Ownership or Control, the Company shall (A) determine at such time or times as may be necessary to
comply with the requirements under Section 280G of the Code whether such Contingent Compensation
Payments constitute in whole or in part Excess Parachute Payments and (B) in the event the Company
determines that such Contingent Compensation Payments constitute in whole or in part Excess
Parachute Payments, notify the Executive (within 30 days after each such determination and with
reasonable detail regarding the basis for its determinations) of the following: (1) which Potential
Payments constitute Contingent Compensation Payments, (2) the Eliminated Amount and (3) whether the
Section 4.3(b) Override is applicable.

                    (ii) Within 30 days after delivery of such notice to the Executive, the Executive shall
deliver a response to the Company (the “Executive Response”) stating either (A) that he
agrees with the Company’s determination pursuant to the preceding sentence, or (B) that he
disagrees with such determination, in which case he shall set forth (1) which Potential Payments
should be characterized as Contingent Compensation Payments, (2) the Eliminated Amount, or (3)
whether the Section 4.3(b) Override is applicable.

                    (iii) If and to the extent that any Contingent Compensation Payments are required to be
treated as Eliminated Payments pursuant to this Section 4.3, then the Payments shall be reduced or
eliminated, as determined by the Company, in the following order:

8

 

(A) any cash payments, (B) any taxable benefits, (C) any nontaxable benefits, and (D) any
vesting of equity awards, in each case in reverse order beginning with payments or benefits that
are to be paid the farthest in time from the date that triggers the applicability of the excise
tax, to the extent necessary to maximize the Eliminated Payments.

                    (iv) If the Executive fails to deliver an Executive Response on or before the required date,
the Company’s initial determinations shall be final, and the Company shall make the Potential
Payments (other than the Eliminated Payments) to the Executive within 10 business days following
the due date for delivery to the Company of the Executive Response (except for any Potential
Payments which are not due to be made until after such date, which Potential Payments shall be made
on the date on which they are due).

                    (v) If the Executive states in the Executive Response that he agrees with the Company’s
determinations, the Company’s initial determinations shall be final, the Contingent Compensation
Payments that shall be treated as Eliminated Payments shall be as set forth in the Executive
Response, and the Company shall make the Potential Payments (other than the Eliminated Payments) to
the Executive within 10 business days following delivery to the Company of the Executive Response
(except for any Potential Payments which are not due to be made until after such date, which
Potential Payments shall be made on the date on which they are due).

                    (vi) If the Executive states in the Executive Response that he disagrees with the Company’s
determinations, then, for a period of 60 days following delivery of the Executive Response, the
Executive and the Company shall use good faith efforts to resolve such dispute. If such dispute is
not resolved within such 60-day period, such dispute shall be settled exclusively by arbitration in
Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The
Company shall, within 10 business days following delivery to the Company of the Executive Response,
make to the Executive those Potential Payments as to which there is no dispute between the Company
and the Executive regarding whether they should be made (except for any such Potential Payments
which are not due to be made until after such date, which Potential Payments shall be made on the
date on which they are due). The balance of the Potential Payments (other than Eliminated
Payments) shall be made within 10 business days following the resolution of such dispute.

                    (vii) Subject to the limitations contained in Sections 4.3(a) and (b) hereof, the amount of
any payments to be made to the Executive following the resolution of such dispute shall be
increased by amount of the accrued interest thereon computed at the prime rate announced from time
to time by Bank of America, compounded monthly from the date that such payments originally were
due.

                    (viii) In the event the Company is required to perform a redetermination in accordance with
Treas. Reg. 1.280G-1 Q/A-33(b) with respect to any Contingent Compensation Payments, this Section
4.3(d) shall apply with respect to such redetermination and the parties shall make such adjustments
as may be necessary as a result of such redetermination including, if appropriate, the payment by
the Company of Contingent

9

 

Compensation Payments previously treated as Eliminated Payments if the Section 4.3(b) Override
applies as a result of such redetermination.

               (e) The provisions of this Section 4.3 are intended to apply to any and all payments or
benefits available to the Executive under this Agreement or any other agreement or plan of the
Company under which the Executive receives Contingent Compensation Payments.

          4.4 Release. The obligation of the Company to make the payments and provide the
benefits to the Executive under Section 4.1(a), Section 4.2(a) or Section 4.2(b) is conditioned
upon the Executive signing a release of claims in the form attached hereto as Exhibit A, or
such other form as may be agreed to by the Company and the Executive (the “Employee
Release”), within 21 days (the “Release Period”) following the Date of Termination and
upon the Executive not revoking the Employee Release in a timely manner thereafter. Provided that
the Employee Release has become binding, the payments to the Executive under Section 4.1(a),
Section 4.2(a) or Section 4.2(b) shall be payable or shall commence on the 30th day
following the Date of Termination. Notwithstanding the foregoing, the provisions of benefits under
Section 4.1(a)(iii), Section 4.2(a)(iii) or Section 4.2(b)(iii) shall continue during the Release
Period and any applicable revocation period.

          4.5 Exclusive Severance Benefits. The making of the payments and the provision of the
benefits by the Company to the Executive under Section 4.1(a), Section 4.2(a) or Section 4.2(b)
shall constitute the entire obligation of the Company to the Executive as a result of the
termination of his employment under the circumstances set forth in such Sections, and the Executive
shall not be entitled to additional payments or benefits under any other plan, program, policy,
practice, contract or agreement of the Company or its subsidiaries.

          4.6 Mitigation. The Executive shall not be required to mitigate the amount of any
payment or benefits provided for in Section 4.1(a), Section 4.2(a) or Section 4.2(b) by seeking
other employment or otherwise. Further, except as provided in Section 4.1(a)(iii), Section
4.2(a)(iii) or Section 4.2(b)(iii), the amount of any payment or benefits provided for in Section
4.1(a), Section 4.2(a) or Section 4.2(b) shall not be reduced by any compensation earned or
benefits received by the Executive as a result of employment by another employer.

          4.7 Section 409A. Subject to this Section 4.7, any severance payments or benefits
under this Agreement shall begin only upon the date of the Executive’s “separation from service”
(as determined below), which occurs on or after the date of the Executive’s termination. The
following rules shall apply with respect to distribution of the payments and benefits, if any, to
be provided to the Executive under Sections 4.1 or 4.2, as applicable:

               (a) It is intended that each installment of the payments and benefits provided under Sections
4.1 and 4.2 shall be treated as a separate “payment” for purposes of Section 409A of the Code and
the guidance issued thereunder (“Section 409A”). Neither the Company nor the Executive
shall have the right to accelerate or defer the delivery of any such payments or benefits except to
the extent specifically permitted or required by Section 409A;

10

 

               (b) If, as of the date of the “separation from service” of the Executive from the Company
(within the meaning of Section 4.7(d) below), the Executive is not a “specified employee” (within
the meaning of Section 409A), then each installment of the payments and benefits shall be made on
the dates and terms set forth in Sections 4.1 or 4.2, as applicable; and

               (c) If, as of the date of the separation from service of the Executive from the Company, the
Executive is a specified employee, then:

                    (i) Each installment of the payments and benefits due under Sections 4.1 or 4.2 that, in
accordance with the dates and terms set forth herein, will in all circumstances, regardless of when
the separation from service occurs, be paid within the short-term deferral period (as defined under
Section 409A) shall be treated as a short-term deferral within the meaning of Treasury Regulation
Section 1.409A-1(b)(4) to the maximum extent permissible under Section 409A; and

                    (ii) Each installment of the payments and benefits due under Sections 4.1 or 4.2 that is not
described in Section 4.7(c)(i), above, and that would, absent this subsection, be paid within the
six-month period following the separation from service of the Executive from the Company shall not
be paid until the date that is six months and one day after such separation from service (or, if
earlier, the Executive’s death), with any such installments that are required to be delayed being
accumulated during the six-month period and paid in a lump sum on the date that is six months and
one day following the Executive’s separation from service and any subsequent installments, if any,
being paid in accordance with the dates and terms set forth herein; provided,
however, that the preceding provisions of this sentence shall not apply to any installment
of payments and benefits if and to the maximum extent that such installment is deemed to be paid
under a separation pay plan that does not provide for a deferral of compensation by reason of the
application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an
involuntary separation from service). Any installments that qualify for the exception under
Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of the
Executive’s second taxable year following his taxable year in which the separation from service
occurs.

               (d) The determination of whether and when a separation from service from the Company has
occurred shall be made and in a manner consistent with and based on the presumptions set forth in,
Treasury Regulation Section 1.409A-1(h). Solely for purposes of this Section 4.7(d), “Company”
shall include all persons with whom the Company would be considered a single employer as determined
under Treasury Regulation Section 1.409A-1(h)(3).

               (e) All reimbursements and in-kind benefits provided under the Agreement shall be made or
provided in accordance with the requirements of Section 409A to the extent that such reimbursements
or in-kind benefits are subject to Section 409A, including, where applicable, the requirement that
(i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter
period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement
during a calendar year may not affect the expenses eligible for reimbursement in any other calendar
year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the
calendar year following the year in

11

 

which the expense is incurred and (iv) the right to reimbursement is not subject to set off or
liquidation or exchange for any other benefit.

               (f) The Company makes no representation or warranty and shall have no liability to the
Executive or any other person if any provisions of this Agreement are determined to constitute
nonqualified deferred compensation subject to Section 409A and do not satisfy an exemption from, or
the conditions of, Section 409A.

     5. Settlement of Disputes; Arbitration. All claims by the Executive for benefits
under this Agreement shall be directed to the Board and shall be in writing. Any denial by the
Board of a claim for benefits under this Agreement shall be delivered to the Executive in writing
and shall set forth the reasons for the denial and the provisions of this Agreement relied upon.
Any further dispute or controversy arising under or in connection with this Agreement shall be
settled exclusively by arbitration in Boston, Massachusetts, in accordance with the rules of the
American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award
in any court having jurisdiction.

     6. Restrictive Covenants.

          6.1 Non-competition. The Executive shall not, at any time during the Restriction
Period (as defined below), directly or indirectly engage in the business of, have any equity
interest in or manage or operate any person, firm, corporation, partnership or other entity or
business (whether as director, officer, employee, agent, representative, partner, security holder,
consultant, proprietor, joint venturer or otherwise) that engages in any business which competes
with any portion of the Business (as defined below) of the Company anywhere in the Restricted Area
(as defined below). Nothing herein shall prohibit the Executive from being a passive owner of not
more than 1% of the outstanding equity interest in any entity that is publicly traded, so long as
the Executive has no active participation in the business of such entity.

          6.2 Non-solicitation. The Executive shall not, at any time during the Restriction
Period, directly or indirectly, recruit or otherwise solicit or induce any employee, customer,
subscriber or supplier of the Company or any prospective employee, customer, subscriber or supplier
of the Company (i) to terminate its employment or arrangement with the Company, or (ii) to
otherwise change its relationship with the Company. In addition, the Executive shall not, at any
time during the Restriction Period, directly or indirectly, either for Executive or for any other
person or entity employ such individual during his or her employment with the Company and for a
period of six months after such individual terminates his or her employment with the Company.

          6.3 Non-disparagement. The Executive agrees to refrain from disparaging the Company
and its affiliates, including, without limitation, any of their respective products, services,
technologies or practices, or any of their respective directors, officers, employees, agents,
representatives or stockholders, either orally or in writing. Nothing in this Section 6.3 shall
preclude the Company from making truthful statements that are reasonably necessary to comply with
applicable law, regulation or legal process.

12

 

          6.4 Non-disclosure.

               (a) Except in connection with the faithful performance of the Executive’s duties as the
President and Chief Executive Officer of the Company or as a member of the Board, the Executive
shall, in perpetuity, maintain in confidence and shall not directly, indirectly or otherwise, use,
disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any person,
firm, corporation or other entity any confidential or proprietary information or trade secrets of
or relating to the Company (including, without limitation, business plans, business strategies and
methods, acquisition targets, intellectual property in the form of patents, trademarks and
copyrights and applications therefor, ideas, inventions, works, discoveries, improvements,
information, documents, formulae, practices, processes, methods, developments, source code,
modifications, technology, techniques, data, programs, other know-how or materials, owned,
developed or possessed by the Company, whether in tangible or intangible form, information with
respect to the Company’s operations, processes, products, inventions, business practices, finances,
principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices,
contractual relationships, regulatory status, prospects and compensation paid to employees or other
terms of employment) (collectively, the “Confidential Information”), or deliver to any
person, firm, corporation or other entity any document, record, notebook, computer program or
similar repository of or containing any such Confidential Information. The Executive and the
Company hereby stipulate and agree that, as between them, any item of Confidential Information is
important, material and confidential and affects the successful conduct of the businesses of the
Company (and any successor or assignee of the Company). Notwithstanding the foregoing,
Confidential Information shall not include any information that has been published in a form
generally available to the public prior to the date the Executive proposes to disclose or use such
information, provided that such publishing of the Confidential Information shall not have
resulted from the Executive directly or indirectly breaching the Executive’s obligations under this
Section 6.4 or any other similar provision by which the Executive is bound, or from any third-party
breaching a provision similar to that found under this Section 6.4. For the purposes of the
previous sentence, Confidential Information will not be deemed to have been published or otherwise
disclosed merely because individual portions of the information have been separately published, but
only if all material features comprising such information have been published in combination.

               (b) The Executive may respond to a lawful and valid subpoena or other legal process but (i)
shall give the Company the earliest possible notice thereof, (ii) shall, as much in advance of the
return date as possible, make available to the Company and its counsel the documents and other
information sought and (iii) shall assist such counsel at Company’s expense in resisting or
otherwise responding to such process.

               (c) On the Date of Termination, the Executive shall return any property of the Company
(including, without limitation, proprietary information or intellectual property) that is within
the Executive’s custody or control.

               (d) Nothing in this Section 6.4 shall prohibit the Executive from (i) disclosing information
and documents when required by law, subpoena or court order (subject to the requirements of Section
6.4(b) above), (ii) disclosing information and documents to the Executive’s attorney or tax adviser
for the purpose of securing legal or tax advice, (iii) disclosing

13

 

the Executive’s post-employment restrictions in this Agreement in confidence to any potential
new employer, or (iv) retaining, at any time, the Executive’s personal correspondence, the
Executive’s personal contacts and documents related to the Executive’s own personal benefits,
entitlements and obligations.

          6.5 Acknowledgement. The Executive acknowledges that the restrictions contained in
this Section 6 (a) are in consideration for the rights provided to Executive as set forth in this
Agreement and the Company’s past and future provision of confidential information to Executive, and
(b) represent a fair balance of the Company’s rights to protect its Business and Executive’s right
to pursue employment. In the event the terms of this Section 6 shall be determined by any court of
competent jurisdiction to be unenforceable by reason of its extending for too great a period of
time or over too great a geographical area or by reason of its being too extensive in any other
respect, it will be interpreted to extend only over the maximum period of time for which it may be
enforceable, over the maximum geographical area as to which it may be enforceable, or to the
maximum extent in all other respects as to which it may be enforceable, all as determined by such
court in such action.

          6.6 Injunctive Relief. It is recognized and acknowledged by the Executive that a
breach of the covenants contained in Section 6 will cause irreparable damage to the Company and its
goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the
remedies at law for any such breach will be inadequate. Accordingly, the Executive agrees that in
the event of a breach of any of the covenants contained in Section 6, in addition to any other
remedy which may be available at law or in equity, the Company will be entitled to specific
performance and injunctive relief.

          6.7 Section 6 Defined Terms. As used in this Section 6, (a) the term
“Company” shall include the Company and its direct and indirect parents and subsidiaries,
(b) the term “Business” shall mean the Business of the Company or its subsidiaries or
affiliates and any business that is competitive with the business, work or projects of the Company
or its subsidiaries or affiliates, as such business, work or projects may have been conducted or
contemplated during the term of the Executive’s employment with the Company, (c) the term
“Restricted Area” shall mean anywhere in the world and (d) the term “Restriction
Period” shall mean the period beginning on the Effective Date and ending on the date upon which
the Severance Period expires.

     7. Miscellaneous.

          7.1 Successors. This Agreement shall be binding upon the Company and its successors
and assigns. This Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Executive should die while any amount would still be payable to the
Executive or his family hereunder if the Executive had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the
executors, personal representatives or administrators of the Executive’s estate.

          7.2 Notice. All notices, instructions and other communications given hereunder or in
connection herewith shall be in writing. Any such notice, instruction or

14

 

communication shall be sent either (i) by registered or certified mail, return receipt
requested, postage prepaid, or (ii) prepaid via a reputable nationwide overnight courier service,
in each case addressed to the Company, at 64 Jackson Road, Devens, Massachusetts 01434, Attention:
General Counsel, and to the Executive at the Executive’s last address reflected in the Company’s
records (or to such other address as either the Company or the Executive may have furnished to the
other in writing in accordance herewith). Any such notice, instruction or communication shall be
deemed to have been delivered five business days after it is sent by registered or certified mail,
return receipt requested, postage prepaid, or one business day after it is sent via a reputable
nationwide overnight courier service. Either party may give any notice, instruction or other
communication hereunder using any other means, but no such notice, instruction or other
communication shall be deemed to have been duly delivered unless and until it actually is received
by the party for whom it is intended.

          7.3 Employment by Subsidiary. For purposes of this Agreement, the Executive’s
employment with the Company shall not be deemed to have terminated solely as a result of the
Executive continuing to be employed by a wholly-owned subsidiary of the Company.

          7.4 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,
which shall remain in full force and effect.

          7.5 Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the internal laws of the Commonwealth of Massachusetts, without
regard to conflicts of law principles that would result in the application of the laws of any other
jurisdiction.

          7.6 Waivers. No waiver by the Executive at any time of any breach of, or compliance
with, any provision of this Agreement to be performed by the Company shall be deemed a waiver of
that or any other provision at any subsequent time.

          7.7 Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original but both of which together shall constitute one and the same
instrument.

          7.8 Tax Withholding. Any payments provided for hereunder shall be paid net of any
applicable tax withholding required under federal, state or local law.

          7.9 Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto in respect of the subject matter contained herein and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or warranties, whether oral or
written, by any officer, employee or representative of any party hereto in respect of the subject
matter contained herein; and any prior agreement of the parties hereto in respect of the subject
matter contained herein is hereby terminated and cancelled. Without limiting the generality of the
preceding sentence, this Agreement shall replace and supersede in its entirety the Prior Agreement,
which shall have no further force or effect. Notwithstanding the foregoing, the provisions of any
stock option agreements between the Company and the Executive

15

 

(including, without limitation, any terms thereof relating to acceleration of vesting) shall
not be superseded by or modified by the terms of this Agreement.

          7.10 Amendments. This Agreement may be amended or modified only by a written
instrument executed by both the Company and the Executive.

          7.11 Executive’s Acknowledgements. The Executive acknowledges that he: (a) has read
this Agreement; (b) has been represented in the preparation, negotiation, and execution of this
Agreement by legal counsel of the Executive’s own choice or has voluntarily declined to seek such
counsel; (c) understands the terms and consequences of this Agreement; and (d) understands that the
law firm of Latham & Watkins LLP is acting as counsel to the Company in connection with the
transactions contemplated by this Agreement, and is not acting as counsel for the Executive.

[Signature Page Follows]

16

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first set forth above.

	 	 	 	 	 
	 	AMERICAN SUPERCONDUCTOR CORPORATION

 	 
	 	Signature:  	  /s/ Gregory J. Yurek
 	 
	 	 	Print name:       Gregory J. Yurek 	 
	 	 	Title:  	Chairman of the Board 	 
	 	 	 	 
	 	EXECUTIVE

 	 
	 	Signature:  	/s/ Daniel P. McGahn 	 
	 	 	Print name:      Daniel P. McGahn 	 
	 	 	 	 

 

 

	 	 	 	 	 

EXHIBIT A

Release Agreement

     This Release Agreement (this “Agreement”), dated as of _________, 20__, is made by and
between Daniel P. McGahn (the “Executive”) and American Superconductor Corporation, a
Delaware corporation (the “Company”). Capitalized terms used but not defined in this
Agreement shall have the meanings set forth in that certain Amended and Restated Severance
Agreement, dated as of May 24, 2011, by and between the Executive and the Company (the
“Severance Agreement”).

     WHEREAS, the Executive and the Company have previously entered into the Severance Agreement;

     WHEREAS, pursuant to the terms of the Severance Agreement, the obligation of the Company to
make the payments and provide the benefits (collectively, the “Payments”) to the Executive
under Section 4.1(a), Section 4.2(a) or Section 4.2(b) (as applicable) of the Severance Agreement
is conditioned upon the Executive executing this Agreement within the Release Period and upon the
Executive not revoking this Agreement in a timely manner; and

     WHEREAS, the Executive and the Company wish to resolve any and all disputes, claims,
complaints, grievances, charges, actions, petitions, and demands that the Executive may have
against the Company and any of the Company Releasees (as defined below) including, but not limited
to, any and all claims arising out of or in any way related to the Executive’s employment with or
separation from the Company or its subsidiaries or affiliates.

     NOW, THEREFORE, in consideration of the Company’s agreement to provide the Payments as set
forth in the Severance Agreement and the mutual promises made herein, the Company and the Executive
hereby agree as follows:

     1. General Release and Waiver. The Executive, on behalf of himself and his
representatives, agents, estate, heirs, successors and assigns, hereby irrevocably and
unconditionally releases, remises and discharges the Company, its officers, directors,
stockholders, affiliates (within the meaning of the Securities Act of 1933), attorneys, agents and
employees, and their respective predecessors, successors and assigns (collectively, the
“Company Releasees”), from any and all actions or causes of action, suits, claims,
complaints, liabilities, contracts, torts, debts, damages, controversies, rights and demands,
whether existing or contingent, known or unknown, arising up to and through the Effective Date (as
defined below) out of the Executive’s employment, or the termination of the Executive’s employment,
with the Company, including, but not limited to, all employment discrimination claims under the Age
Discrimination in Employment Act, 29 U.S.C. §621 et seq., Title VII of the Civil Rights Act of
1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et
seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and
Retraining Notification Act, 29 U.S.C. § 2101 et seq., the Massachusetts Fair Employment Practices
Act, M.G.L. c.151B, § 1 et seq., the Massachusetts Civil Rights Act, M.G.L. c.12, §§ 11H and 11I,
the Massachusetts Equal Rights Act, M.G.L. c.93, § 102 and M.G.L. c.214, § 1C, the Massachusetts
Labor and Industries Act, M.G.L. c.149, § 1 et seq., and

A-1

 

the Massachusetts Privacy Act, M.G.L. c.214, § 1B, all as amended, and all claims arising out
of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. and the Employee Retirement Income
Security Act of 1974, 29 U.S.C. § 1001 et seq., all as amended; and all claims to any non-vested
ownership interest in the Company, contractual or otherwise, including, but not limited to, claims
to stock or stock options. Notwithstanding the foregoing, (a) nothing in this release prevents the
Executive from filing, cooperating with, or participating in any proceeding before the U.S. Equal
Employment Opportunity Commission or a state Fair Employment Practices Agency (except that the
Executive acknowledges that he may not recover any monetary benefits in connection with any such
claim, charge or proceeding), (b) this release does not extend to any rights the Executive has that
arise after the Effective Date or to any rights to payments after the date hereof that arise under
the Severance Agreement and (c) this release does not extend to any rights the Executive may have
to indemnification as an officer or director of the Company under the provisions of the Company’s
by-laws or applicable law.

     2. Release of Age Discrimination Claims; Periods for Review and Reconsideration.

          (a) The Executive understands that this Agreement includes a release of claims arising under
the Age Discrimination in Employment Act. The Executive understands, agrees and represents that
the covenants made herein may affect rights and liabilities of substantial extent and agrees that
the covenants and releases provided herein are in the Executive’s best interest. The Executive
acknowledges under penalties of perjury that (i) the Executive has been and is hereby advised to
consult with an attorney prior to executing this Agreement; (ii) the Executive has been given a
period of twenty-one days within which to consider this Agreement; (iii) the Executive has signed
this Agreement free of duress or coercion; and (iv) the Executive is fully aware of his rights, and
has carefully read and fully understands all provisions of this Agreement before signing. Further,
the Executive represents and warrants that in negotiating and executing this Agreement he has had
an adequate opportunity to consult with competent legal counsel of the Executive’s choosing
concerning the meaning and effect of each term and provision hereof, and that there are no
representations, promises, or agreements between the Company and the Executive with respect to the
matters contemplated by this Agreement other than those expressly set forth in writing herein or in
the Severance Agreement.

          (b) The Executive further warrants that he understands that he has seven days after signing
this Agreement to revoke the Agreement by notice in writing to American Superconductor Corporation,
64 Jackson Road, Devens, Massachusetts 01434, Attention: General Counsel. This Agreement shall be
binding, effective, and enforceable upon both parties upon the expiration of this seven-day
revocation period (the “Effective Date”) without the Company’s General Counsel having
received such revocation, but not before such time.

     3. Severability. In the event that any provision or any portion of any provision
hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent
jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in
full force and effect without said provision or portion of provision.

     4. No Oral Modification. This Agreement may only be amended in a writing signed by
Employee and a duly authorized officer of the Company.

A-2

 

     5. Voluntary Agreement. The Executive represents and warrants that in negotiating and
executing this Agreement the Executive has had an adequate opportunity to consult with competent
legal counsel of the Executive’s choosing concerning the meaning and effect of each term and
provision hereof, and that there are no representations, promises, or agreements between the
Company and the Executive with respect to the matters contemplated by this Agreement other than
those expressly set forth in writing herein or in the Severance Agreement. The parties have
carefully read this Agreement in its entirety; fully understand and agree to its terms and
provisions; and intend and agree that it is final and binding on all parties.

     6. Choice of Law. This Agreement shall be governed by and interpreted in accordance
with the law of the Commonwealth of Massachusetts, without regard to the law of conflicts of that
state that would result in the application of the laws of any other jurisdiction.

[Signature Page Follows]

A-3

 

     IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement on the
respective dates set forth below.

	 	 	 	 	 
	 	 	 
	Dated:                     	  	Daniel P. McGahn
 	 
	 	 	 	 
	 	 	 	 
	 
	 	AMERICAN SUPERCONDUCTOR CORPORATION

 	 
	Dated:                     	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-4

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