<SEC-DOCUMENT>0000950123-11-093390.txt : 20111031
<SEC-HEADER>0000950123-11-093390.hdr.sgml : 20111031
<ACCEPTANCE-DATETIME>20111031130428
ACCESSION NUMBER:		0000950123-11-093390
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20111028
ITEM INFORMATION:		Termination of a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20111031
DATE AS OF CHANGE:		20111031

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN SUPERCONDUCTOR CORP /DE/
		CENTRAL INDEX KEY:			0000880807
		STANDARD INDUSTRIAL CLASSIFICATION:	MOTORS & GENERATORS [3621]
		IRS NUMBER:				042959321
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19672
		FILM NUMBER:		111167435

	BUSINESS ADDRESS:	
		STREET 1:		SIXTY FOUR JACKSON ROAD
		CITY:			DEVENS
		STATE:			MA
		ZIP:			01434
		BUSINESS PHONE:		9788423000

	MAIL ADDRESS:	
		STREET 1:		SIXTY FOUR JACKSON ROAD
		CITY:			DEVENS
		STATE:			MA
		ZIP:			01434
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>b88797e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<TITLE>e8vk</TITLE>
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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Pursuant to Section&nbsp;13 or 15(d) of<BR>
The Securities Exchange Act of 1934</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><!-- xbrl,dc --><B>Date of Report (Date of earliest event reported):<BR>
October&nbsp;28, 2011</B><!-- /xbrl,dc -->
</DIV>
<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>American Superconductor Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR></TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>0-19672</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>04-2959321</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction <BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
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<TR valign="bottom">
    <TD align="center" valign="top">64 Jackson Road <BR>
Devens, Massachusetts
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">01434</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Registrant&#146;s telephone number, including area code <U><B>(978)&nbsp;842-3000</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Not Applicable<BR>
(Former name or former address, if changed since last report.)
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">








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<!-- link1 "Item&nbsp;1.02. Termination of a Material Definitive Agreement" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.02. Termination of a Material Definitive Agreement.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On October&nbsp;28, 2011, American Superconductor Corporation, a Delaware corporation (the
&#147;<U>Company</U>&#148;), The Switch Engineering Oy, a limited liability company incorporated and
existing under the laws of Finland (&#147;<U>The Switch</U>&#148;), and the shareholders of The Switch (the
&#147;<U>Sellers</U>&#148;), entered into a Termination Agreement (the &#147;<U>Termination Agreement</U>&#148;),
pursuant to which the Company and the Sellers mutually agreed to terminate the Share Purchase
Agreement dated March&nbsp;12, 2011 and amended on June&nbsp;29, 2011 (the &#147;<U>Purchase Agreement</U>&#148;), and
the Amended and Restated Stockholders Agreement dated June&nbsp;29, 2011 (the &#147;<U>Stockholders
Agreement</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the Purchase Agreement, the Company had agreed, upon the satisfaction or waiver of the
conditions in the Purchase Agreement, to acquire all of the outstanding shares of The Switch for an
aggregate purchase price of (i) &#128;190.0&nbsp;million, which was to be paid as follows: (1) &#128;14.25&nbsp;million
in cash in the form of an advance payment (the &#147;<U>Advance Payment</U>&#148;), which was paid by the
Company on June&nbsp;29, 2011, (2) &#128;118.75&nbsp;million in cash at the closing and (3)&nbsp;the issuance at the
closing of shares of the Company&#146;s common stock, $0.01 par value per share (&#147;<U>Common
Stock</U>&#148;), with a value of &#128;57.0&nbsp;million based on the average closing price of the Common Stock
during the 20 trading days preceding the second business day prior to the closing and the USD/EUR
exchange rate on the second business day prior to the closing, and (ii)&nbsp;in the event closing
occurred after September&nbsp;1, 2011, interest at an annual rate of 4% on &#128;118.75&nbsp;million, accruing
from September&nbsp;1, 2011 until the closing date (inclusive), payable in cash at the closing. In the
event that the total number of shares of Common Stock issuable to the Shareholders would have
exceeded 19.9% of the total number of shares of Common Stock outstanding prior to such issuance, in
lieu of the issuance of such excess shares, the Company had agreed to pay additional cash at the
closing to the Minor Sellers (as defined in the Purchase Agreement) and issue to the remaining
shareholders unsecured promissory notes for such excess amount, which notes would have been payable
on the first business day after the first anniversary of the closing date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the Termination Agreement, the Company and the Sellers agreed, among other things, that
(i)&nbsp;the Purchase Agreement and the Stockholders Agreement are terminated with immediate effect,
except for Section&nbsp;10 (Confidentiality) of the Purchase Agreement, (ii)&nbsp;the Company and the Sellers
have no further rights or obligations, other than as provided for in the Termination Agreement,
towards each other under or in relation to the Purchase Agreement or the Stockholders Agreement,
and (iii)&nbsp;the Sellers are entitled to retain the Advance Payment as a termination fee, which the
Company will record as an expense during the three months ended September&nbsp;30, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A description of the terms of the Purchase Agreement was included in Item&nbsp;1.01 of the Current
Report on Form 8-K filed by the Company on June&nbsp;30, 2011 and to the extent required by Item&nbsp;1.02 of
Form 8-K, the description of the Purchase Agreement is incorporated by reference in this Item&nbsp;1.02
pursuant to General Instruction B.3 of Form 8-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The foregoing description of the Termination Agreement does not purport to be complete and is
qualified in its entirety by reference to the Termination Agreement, a copy of which is attached as
Exhibit&nbsp;10.1 hereto and incorporated herein by reference.
</DIV>

<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d) <I>Exhibits</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.1 Termination Agreement dated as of October&nbsp;28, 2011 by and between the Shareholders of The
Switch Engineering Oy, a limited liability company incorporated and existing under the laws of
Finland (&#147;<U>The Switch</U>&#148;), the Registrant and The Switch.
</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
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<!-- link1 "SIGNATURES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left" nowrap>AMERICAN SUPERCONDUCTOR CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: October 31, 2011&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David A. Henry
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">David A. Henry&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" nowrap><I>Senior Vice President and Chief Financial Officer</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
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<!-- link1 "EXHIBIT INDEX" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT INDEX
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">

    <TD align="left" valign="top" colspan="3">10.1</TD>

    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Termination Agreement dated as of October&nbsp;28, 2011 by and between the Shareholders of The Switch Engineering Oy,
a limited liability company incorporated and existing under the laws of Finland (&#147;The Switch&#148;), the Registrant
and The Switch.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>b88797exv10w1.htm
<DESCRIPTION>EX-10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.1
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXECUTION COPY
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>TERMINATION AGREEMENT</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>THIS TERMINATION AGREEMENT </B>(this &#147;<B>Agreement</B>&#148;) is dated as of October&nbsp;28, 2011 and made by and
between
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(1)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>THE SHAREHOLDERS OF THE SWITCH ENGINEERING OY </B>as listed in Appendix&nbsp;A to the SPA (as defined
below) (the &#147;<B>Sellers</B>&#148;);</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(2)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>AMERICAN SUPERCONDUCTOR CORPORATION</B>, a corporation incorporated and existing under the laws
of Delaware, United States, having its principal place of business at 64 Jackson Road Devens,
MA 01434, United States (&#147;<B>AMSC</B>&#148;); and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(3)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>THE SWITCH ENGINEERING CORPORATION</B>, a limited liability company incorporated and existing
under the laws of Finland, having its principal place of business at Yritt&#228;j&#228;nkatu 15, 65380
Vaasa, Finland (the &#147;<B>Company</B>&#148;).</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The above parties are hereinafter jointly referred to as the &#147;<B>Parties</B>&#148; and individually as a
&#147;<B>Party</B>&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>WHEREAS</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(A)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Sellers and AMSC have entered into a share purchase agreement dated 12 March&nbsp;2011 and
amended on 29 June&nbsp;2011 (the &#147;<B>SPA</B>&#148;) regarding the Company and a stockholders agreement dated
12 March&nbsp;2011 and amended on 29 June&nbsp;2011 (the &#147;<B>Stockholders Agreement</B>&#148;); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(B)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is the intention of the Sellers and AMSC to agree on the termination of the SPA and the
Stockholders Agreement as of the date hereof.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOW, THEREFORE, IT IS AGREED:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>TERMINATION OF THE AGREEMENTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Sellers and AMSC hereby agree that the SPA and the Stockholders Agreement shall terminate
with immediate effect as of the date hereof, except for Section&nbsp;10 (Confidentiality) of the
SPA which shall continue in full force and effect, and that the Sellers and AMSC shall have no
further rights or obligations, other than as provided for in this Agreement, towards each
other under or in relation to the SPA or the Stockholders Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In consideration of the termination herein, each of the Parties confirms that such Party has
not and shall not have any claims, charges, complaints, liens, demands, causes of action,
damages and liabilities, known or unknown, suspected or unsuspected, against any of the other
Parties in relation to the SPA or the Stockholders Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to the abovementioned, each Party represents and warrants that neither it nor
anyone acting on its behalf has assigned or transferred, or attempted to assign or transfer,
to any person or entity, any of the claims, charges, complaints, liens, demands, causes of
action, damages or liabilities it is releasing in this Agreement.</TD>
</TR>

</TABLE>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->-1-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONFIDENTIALITY</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties agree that all confidential information (including trade secrets, technical,
commercial, financial and legal information of the Group Companies (as defined in the SPA and
its amendment) and AMSC and its affiliated companies) or other information of a proprietary
nature contained in the SPA or relating to the Group Companies or AMSC and its affiliated
companies, including Confidential Information (as defined in the SPA), Disclosed Material (as
defined in the SPA), the existence and the terms and conditions of the SPA, or obtained by a
Party from the other Parties in connection with the due diligence review and negotiations
relating to the transactions contemplated in the SPA shall be strictly confidential and not be
disclosed to any third party or used to cause damage to another Party. The obligation to keep
information confidential does not apply, if (i)&nbsp;a Party is required to provide information by
law, regulation or governmental decision, or (ii)&nbsp;a Party is required to provide information
by any applicable stock exchange regulations, or (iii)&nbsp;such disclosure has been consented to
by the other Party in writing, or (iv)&nbsp;the information is commonly known in the public domain
and this is not a result of a breach by the Party. The secrecy obligation set forth in this
Section&nbsp;2 shall remain in effect for five (5)&nbsp;years from the date of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>AMSC undertakes immediately after the signing of this Agreement promptly to destroy or delete
all of the documents and all copies thereof containing confidential information, including
Confidential Information (as defined in the SPA) and Disclosed Material (as defined in the
SPA), regarding the Company, its affiliated companies and the Group Companies (as defined in
the SPA) (including all copies thereof and any notes, analyses, compilations, summaries,
studies, interpretations or other documents prepared by AMSC or its directors, employees or
advisors which contain any confidential information) that was delivered to AMSC by the
Sellers, the Company or its advisors or the Group Companies (as defined in the SPA) or that
was prepared by AMSC, and confirm such destruction to the Company in writing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Sellers and the Company undertake immediately after the signing of this Agreement
promptly to destroy or delete all of the documents and electronic copies thereof containing
confidential information regarding AMSC and its affiliated companies (including all copies
thereof and any notes, analyses, compilations, summaries, studies, interpretations or other
documents prepared by the Sellers, the Company or its directors, employees or advisors which
contain any confidential information) that was delivered to the Sellers or to the Company by
AMSC or its advisors or that was prepared by the Sellers or the Company and confirm such
destruction to AMSC in writing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding Sections&nbsp;2.2 and 2.3 above, the Parties may retain such information as may be
required under any applicable law or regulation, and they shall not be required to erase any
automatically stored back-up files in electronic data systems.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sections&nbsp;2.2 and 2.3 above shall not apply to any current co-operation between the Company
and AMSC outside the transactions contemplated in the SPA and subject to any existing
confidentiality agreements between such parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ADVANCE PAYMENT</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties hereby acknowledge that the Advance Payment (as defined in the SPA) of EUR
14,250,000 paid by AMSC to the Sellers constitutes a termination fee to the
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sellers, and
AMSC and its affiliated companies or their assignees or their successors shall have no
right whatsoever to claim the Sellers to return the Advance Payment or any part of it.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MISCELLANEOUS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement constitutes the entire agreement and understanding between the Parties and
supersedes all other agreements, whether oral or in writing between the Parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All press releases and other public relations activities of the Parties with regard to this
Agreement shall be mutually approved by Sellers and Purchaser in advance.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall be governed by and construed in accordance with the substantive laws of
Finland. Any dispute arising out of or relating to this Agreement or transaction agreed herein
shall be finally settled by arbitration in accordance with the Arbitration Rules of the
Stockholm Chamber of Commerce. The Arbitration Tribunal shall consist of three (3)
arbitrators, one (1)&nbsp;to be appointed by AMSC, one (1)&nbsp;by the Sellers and one (1)&nbsp;arbitrator,
serving as the chairman, by the two arbitrators so appointed. Failing the appointment of an
arbitrator or the chairman, the arbitrator or the chairman, as the case may be, shall be
appointed by the Arbitration Board of the Stockholm Chamber of Commerce. The arbitration shall
be held in Stockholm, Sweden and the arbitral proceedings shall be conducted in the English
language, but evidence may be submitted also in Finnish and/or Swedish and witnesses heard in
any of the said languages.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party to this Agreement acknowledges and represents that it (i)&nbsp;has fully and carefully
read and acquainted itself with this Agreement prior to signing it, (ii)&nbsp;has been or has had
the opportunity to be, advised by independent legal counsel of its own choice at its own costs
as to the legal effect and meaning of each of the terms and conditions of this Agreement, and
(iii)&nbsp;is entering into this Agreement freely and voluntarily and not in reliance on any
promises or representation other than as set forth in this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;<I>Signature page to follow</I>&#093;
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->-3-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>IN WITNESS WHEREOF</B>, the undersigned has caused this Agreement to be duly executed
and delivered as of the date first written above in two (2)&nbsp;identical counterparties, one (1)&nbsp;for
each Party.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>AMERICAN SUPERCONDUCTOR CORPORATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David A. Henry
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David Henry&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Senior Vice President, Chief Financial
Officer and Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>THE SHAREHOLDERS OF THE SWITCH ENGINEERING OY </B>as listed in
Appendix&nbsp;A to the SPA, acting through the Sellers&#146; Representative<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Veijo Karppinen
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Veijo Karppinen&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Sellers&#146; Representative&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">             /s/ Dag Sand&#229;s
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Dag Sand&#229;s&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Sellers&#146; Representative&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>THE SWITCH ENGINEERING CORPORATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Dag Sand&#229;s
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Dag Sand&#229;s&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">CFO and Deputy to CEO&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->-4-<!-- /Folio -->
</DIV>



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