Document:

ex_146603.htm

Exhibit 10.1

 

 

Fiscal 2019 Executive Incentive Plan. On June 1, 2019, the Compensation Committee of the Board of Directors of American Superconductor Corporation (the “Committee”) and the Board of Directors of American Superconductor Corporation (the “Company”) approved an executive incentive plan for the Company’s fiscal year ending March 31, 2020 (“fiscal 2019”). Participants in the plan include the Company’s chief executive officer, all other current executive officers and James F. Maguire, a former executive officer who was a named executive officer in our Definitive Proxy Statement on Schedule 14A, filed with the Securities and Exchange Commission (“SEC”) on June 15, 2018. Pursuant to the plan, each participant is designated a target cash incentive amount, expressed as a percentage of the participant’s base salary. The Committee is responsible for determining the payout under the plan to each participant except the chief executive officer. The Board of Directors of the Company determines the payout under the plan for the chief executive officer, taking into account the recommendation of the Committee.

 

The amount of the incentive award actually paid to each participant may be less than or greater than the participant’s target cash incentive, with the amount capped at 200% of the target incentive. For each participant, individual incentive awards will be determined following the end of fiscal 2019 based on the following factors and their corresponding weightings:

 

	
			 

				
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			the Company’s operating cash flow for fiscal 2019 as compared to the established target – 50%

			

 

	
			 

				
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			the Company’s revenues for fiscal 2019 as compared to the established target – 25%

			

 

	
			 

				
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			the Company’s operating expenses for fiscal 2019 as compared to the established target – 25%

			

 

The following table sets forth the target cash incentive for fiscal 2019 for each current executive officer and Mr. Maguire:

 

	 	 	 	 	 	 	 	 	 	 	 
	
			Executive Officer

				
			  

				
			Title

				
			  

				
			Target Incentive

			as % of

			Base Salary

				
			 

				
			 

				
			Target Incentive

				
			 

			
	
			Daniel P. McGahn

				
			  

				
			Chairman, President and Chief Executive Officer

				
			  

				
			 

				
			100

				
			%

				
			 

				
			$

				
			500,000

				
			 

			
	
			John W. Kosiba, Jr.

				
			  

				
			Senior Vice President, Chief Financial Officer and Treasurer

				
			  

				
			 

				
			50

				
			%

				
			 

				
			$

				
			150,000

				
			 

			
	
			James F. Maguire

				
			  

				
			Executive Vice President, Technology

				
			  

				
			 

				
			40

				
			% 

				
			 

				
			$

				
			90,000ex_146280.htm

Exhibit 4.3

 

 

DESCRIPTION OF CAPITAL STOCK 

 

The following description of our capital stock is intended as a summary only. This description is based upon, and is qualified by reference to, our certificate of incorporation, our by-laws and applicable provisions of Delaware corporation law. 

 

Our authorized capital stock consists of 75,000,000 shares of common stock, $0.01 par value per share. 

 

Common Stock 

 

Annual Meeting. Annual meetings of our stockholders are held on the date designated in accordance with our by-laws. Written notice must be mailed to each stockholder entitled to vote not less than ten nor more than 60 days before the date of the meeting. The presence in person or by proxy of the holders of a majority of our issued and outstanding shares entitled to vote at such meeting constitutes a quorum for the transaction of business at meetings of the stockholders. Except as may be otherwise provided by applicable law, our restated certificate of incorporation or our by-laws, all elections shall be decided by a plurality of the votes cast by stockholders entitled to vote in the election. All other matters shall be decided by a majority of the votes cast by stockholders entitled to vote thereon at a duly held meeting of stockholders at which a quorum is present. 

 

Voting Rights. Each holder of common stock is entitled to one vote for each share of stock held on all matters to be voted upon by stockholders. 

 

Dividends. The holders of common stock are entitled to receive dividends when and if declared by the board of directors out of legally available funds, subject to any preferential dividend rights of holders of any preferred stock then outstanding. 

 

Liquidation and Dissolution. If we are liquidated or dissolved, the holders of the common stock will be entitled to share in our assets available for distribution to stockholders in proportion to the amount of common stock they own. The amount available for common stockholders is calculated after payment of creditors and of any preferential liquidation rights of any preferred stock then outstanding. 

 

Other Rights. The holders of our common stock have no right to: 

 

	
   

  	
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  convert the stock into any other security; 

  

 

	
   

  	
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  have the stock redeemed; 

  

 

	
   

  	
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  purchase additional stock; or 

  

 

	
   

  	
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  maintain their proportionate ownership interest. 

  

 

The common stock does not have cumulative voting rights. Holders of shares of our common stock are not required to make additional capital contributions. 

 

Provisions of Our By-laws and Delaware Law That May Have Anti-Takeover Effects 

 

Special Meeting of Stockholders. Our by-laws provide that special meetings of the stockholders may be called for any purpose by our board of directors, the chairman of the board or directors or the president, but such special meetings may not be called by any other person or persons. 

 

Advance Notice Procedures. Our by-laws contain advance notice procedures for stockholders to make nominations of candidates for election as directors or to bring other business before the annual meeting of stockholders. Our by-laws provide that a stockholder must notify us in writing of any stockholder nomination of a director or any business to be brought before an annual meeting by a stockholder not earlier than the 90th day and not later than the 120th day prior to the first anniversary of the preceding year’s annual meeting; provided, that if the date of the annual meeting is advanced by more than 20 days, or delayed by more than 60 days, from such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the 120th day prior to the date of such annual meeting and not later than the later of (x) the 90th day prior to the date of such meeting and (y) the 10th day following the day on which notice of such special meeting was mailed or the day on which public disclosure of the date of such annual meeting, whichever occurs first. 

 

Delaware Business Combination Statute. We are subject to Section 203 of the General Corporation Law of the State of Delaware. Section 203 restricts some types of transactions and business combinations between a corporation and a 15% stockholder. A 15% stockholder is generally considered by Section 203 to be a person owning 15% or more of the corporation’s outstanding voting stock. Section 203 refers to a 15% stockholder as an “interested stockholder.” Section 203 restricts these transactions for a period of three years from the date the stockholder acquires 15% or more of our outstanding voting stock. With some exceptions, unless the transaction is approved by the board of directors and the holders of at least two-thirds of the outstanding voting stock of the corporation, Section 203 prohibits significant business transactions such as: 

 

	
   

  	
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  a merger with, disposition of significant assets to or receipt of disproportionate financial benefits by the interested stockholder, and 

  

 

	
   

  	
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  any other transaction that would increase the interested stockholder’s proportionate ownership of any class or series of our capital stock. 

  

 

The shares held by the interested stockholder are not counted as outstanding when calculating the two-thirds of the outstanding voting stock needed for approval. 

 

The prohibition against these transactions does not apply if: 

 

	
   

  	
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  prior to the time that any stockholder became an interested stockholder, the board of directors approved either the business combination or the transaction in which such stockholder acquired 15% or more of our outstanding voting stock, or 

  

 

	
   

  	
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  the interested stockholder owns at least 85% of our outstanding voting stock as a result of a transaction in which such stockholder acquired 15% or more of our outstanding voting stock. Shares held by persons who are both directors and officers or by some types of employee stock plans are not counted as outstanding when making this calculation.ex_146283.htm

Exhibit 10.38

FIRST AMENDMENT TO Intercreditor, 

Subordination and Standstill Agreement

 

THIS FIRST AMENDMENT TO Intercreditor, Subordination and Standstill Agreement (this “Amendment”) made as of the 28th day of March, 2019, by and between EAST BOSTON SAVINGS BANK (hereafter “Senior Lender”), with a principal place of business at 67 Prospect Street, Peabody, Massachusetts 01960 and ASC DEVENS LLC, a Delaware limited liability company (hereafter the “Junior Lender”), with a place of business at 114 East Main Street, Ayer, Massachusetts 01432.

 

RECITALS

 

A.     Senior Lender and Junior Lender are parties to that certain Intercreditor, Subordination and Standstill Agreement dated March 28, 2018, with respect to the respective rights, entitlements and priorities between the Senior Lender and Junior Lender (as amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”; capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Intercreditor Agreement).

 

B.     Senior Lender has agreed to increase the Senior Loan from $17,500,000 to $20,700,000 (the “Increase”).

 

C.     Senior Lender and Junior Lender desire to amend the Intercreditor Agreement, as more particularly described herein, to reflect the Increase.

 

D.     Furthermore, although not required by the terms of the Intercreditor Agreement, Senior Loan Documents or Junior Loan Documents, Senior Lender has requested that Junior Lender submit its written consent to the Increase.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements set forth in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which being hereby acknowledged, the parties do hereby agree as follows:

 

1.     Consent to Increase. Junior Lender hereby consents to the increase in the Senior Loan from $17,500,000 to $20,700,000, and confirms that Senior Loan, as increased by the Increase, shall be senior to the Junior Loan and included as monies owed to Senior Lender under the Senior Loan.

 

2.     Reaffirmation. The Intercreditor Agreement, as amended by this Amendment, shall remain in full force and effect and is hereby reaffirmed, confirmed and ratified in all respects.

 

3.     Amendment. The Intercreditor Agreement shall be amended as follows:

 

a.     Any reference to “Senior Loan” shall be deemed to mean commercial real estate mortgage loan from Senior Lender to Borrower in the increased amount of $20,700,000.

 

b.     Any reference to “Senior Mortgage and Security Agreement” and “Assignment of Leases and Rents” shall mean each of the foregoing, as amended by that certain First Amendment to Security Documents dated of even date herewith.

 

c.     Any reference to “Senior Loan Documents” shall be deemed to refer to those documents listed on Schedule A attached hereto, as the same may be amended, modified or restated from time to time.

 

4.     Reference to and Effect on the Intercreditor Agreement. Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the Intercreditor Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import shall mean and be a reference to the Intercreditor Agreement as amended hereby.

 

5.     Execution in Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. Delivery of a signature page hereto by facsimile or by other electronic method of transmission shall be as effective as delivery of a manually executed counterpart hereof.

 

6.     Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.

 

 

 

[Signatures appear on following page.]

 

 

 

 

 

IN WITNESS WHEREOF, this First Amendment to Intercreditor, Subordination and Standstill Agreement has been duly executed under seal as of the date first above written.

 

SENIOR LENDER:

 

EAST BOSTON SAVINGS BANK

 

                              By:      /s/ Brian R. Haney               

Name: Brian R. Haney

Title:      Vice President

 

 

 

COMMONWEALTH OF MASSACHUSETTS

 

COUNTY OF ESSEX

 

On this 26 day of March, 2019, before me, the undersigned notary public, personally appeared Brian Haney, the Vice President of East Boston Savings Bank, proved to me through satisfactory evidence of identification, which was known, to be the person whose name is signed above, and acknowledged to me that he signed it voluntarily for its stated purpose as Vice President of East Boston Savings Bank.

 

 

                              /s/ MaryAnn Burns                

Notary Public     

My Commission Expires: 1/17/25     

 

 

 

 

 

 

JUNIOR LENDER:

 

ASC DEVENS LLC

 

                              By:      /s/ John Kosiba               

                              Name:     John Kosiba                    

     Title:      Authorized Person               

 

 

 

COMMONWEALTH OF MASSACHUSETTS

 

COUNTY OF MIDDLESEX

 

On this 26th day of March, 2019, before me, the undersigned notary public, personally appeared John Kosiba, the Authorized Person of ASC Devens LLC, proved to me through satisfactory evidence of identification, which was MA license, to be the person whose name is signed above, and acknowledged to me that he signed it voluntarily for its stated purpose as the Authorized Person of ASC Devens LLC.

 

 

/s/ Laura B. Pellerin

                    Notary Public:     Laura B. Pellerin                              My Commission Expires: Jan 27, 2023

 

 

 

 

 

 

SCHEDULE A

 

Senior Loan Documents

The Borrower has executed, acknowledged and delivered to the Senior Lender, as the case may be, the following loan documents (the “Senior Loan Documents”), each dated March 28, 2018 (unless otherwise noted), as each may be further amended, modified or restated from time to time:

 

 

	 	
			a.

				
			Loan Agreement, as amended by that certain First Amendment to Loan Agreement dated of even date herewith;

			

 

	 	
			b.

				
			Promissory Note, as amended by that certain Allonge and First Amendment to Promissory Note dated of even date herewith;

			

 

	 	
			c.

				
			Mortgage and Security Agreement, as amended by that certain Frist Amendment to Security Documents dated of even date herewith (the “Security Documents Amendment”);

			

 

	 	
			d.

				
			Assignment of Leases, Rents and Profits, as amended by the Security Documents Amendment;

			

 

	 	
			e.

				
			Collateral Assignment of Contracts, Licenses, Permits and Approvals, as amended by the Security Documents Amendment;

			

 

	 	
			f.

				
			Property Carry Reserve Account Agreement, as amended by that certain First Amendment to Property Carry Reserve Account Agreement dated of even date herewith;

			

 

	 	
			g.

				
			Hazardous Materials Indemnity Agreement;

			

 

	 	
			h.

				
			Nonrecourse Carve-Out Guaranty of John Matteson, as amended by that certain First Amendment to Nonrecourse Carve-Out Guaranty dated of even date herewith;

			

 

	 	
			i.

				
			Nonrecourse Carve-Out Guaranty of Tracy Goodman, as amended by that certain First Amendment to Nonrecourse Carve-Out Guaranty dated of even date herewith;

			

 

	 	
			j.

				
			Limited Payment Guaranty of John Matteson dated of even date herewith;

			

 

	 	
			k.

				
			Limited Payment Guaranty of Tracy Goodman dated of even date herewith ((h)-(k), collectively, the “Guaranties”);

			

 

	 	
			l.

				
			UCC-1 Financing Statements; and

			

 

	 	
			m.

				
			Other documents, certificates, affidavits, subordination agreements, assignments and/or warranties or representations executed in addition to or in connection with the Senior Loan Documents.

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