<SEC-DOCUMENT>0001193125-14-077480.txt : 20140228
<SEC-HEADER>0001193125-14-077480.hdr.sgml : 20140228
<ACCEPTANCE-DATETIME>20140228163203
ACCESSION NUMBER:		0001193125-14-077480
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140228
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140228
DATE AS OF CHANGE:		20140228

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:		14655914

	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>d683793d8k.htm
<DESCRIPTION>8-K
<TEXT>
<HTML><HEAD>
<TITLE>8-K</TITLE>
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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM 8-K
</B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant
to Section&nbsp;13 or 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>of The Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported): </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>February&nbsp;28, 2014 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>American
Superconductor Corporation </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in its charter) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" ALIGN="center">


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<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>000-19672</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>04-2959321</B></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>of incorporation)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File Number)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
</TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>64 Jackson Road</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Devens, Massachusetts</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"><B>01434</B></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"><B>(Address of principal executive offices)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>(Zip Code)</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Registrant&#146;s telephone number, including area code (978)&nbsp;842-3000 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Not Applicable </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Former
name or former address, if changed since last report.) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">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): </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

<p Style='page-break-before:always'>
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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;8.01</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Other Events. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On February&nbsp;21, 2014 the United States District Court for the District of
Massachusetts (the &#147;<U>Court</U>&#148;) issued an order preliminarily approving the proposed Stipulation and Agreement of Settlement (the &#147;<U>Settlement</U>&#148;) to settle the previously disclosed stockholder derivative actions <I>In re
American Superconductor Corporation Derivative Litigation</I>, Docket No.&nbsp;1:11-cv-10784-WGY, filed in the Court, <I>In re American Superconductor Corporation Shareholder Derivative Litigation</I>, Docket No.&nbsp;11-1961, filed in Superior
Court for the Commonwealth of Massachusetts, and <I>Krasnoff v. Budhraja, </I>et al., Docket No.&nbsp;7171 filed in the Court of Chancery for the State of Delaware. The terms of the Settlement are described in American Superconductor
Corporation&#146;s (the &#147;<U>Company</U>&#148;) Current&nbsp;Report on Form 8-K filed with the Securities and Exchange Commission on February&nbsp;6, 2014. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">A hearing to determine whether the Court should issue an order of final approval of the Settlement has been scheduled for May&nbsp;6, 2014, at 2:00 p.m. at
the United States District Court for the District of Massachusetts, located at the John Joseph Moakley U.S. Courthouse, 1 Courthouse Way, Suite 2300, Boston, Massachusetts 02210. Pursuant to the Court&#146;s order, any objections to the Settlement
must be filed in writing with the Court and served on the parties to the litigation by no later than April&nbsp;16, 2014. Pursuant to the Court&#146;s order, any such objections must comply with the terms and conditions set forth in the Notice to
Current AMSC Shareholders Regarding Proposed Settlement of Derivative Actions (the &#147;<U>Notice</U>&#148;), a copy of which is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;9.01. Financial Statements and Exhibits. </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">(d)
<I>Exhibits</I>. <I></I> </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1.00pt solid #000000; width:25.30pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit<BR>No.</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Description</B></P></TD></TR>


<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Notice to Current AMSC Shareholders Regarding Proposed Settlement of Derivative Actions.</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3">AMERICAN SUPERCONDUCTOR CORPORATION</TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
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<TD VALIGN="top">Date: February&nbsp;28, 2014</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">By:</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ David A. Henry</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">David A. Henry</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><I>Senior Vice President and Chief Financial Officer</I></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXHIBIT INDEX </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="92%"></TD></TR>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1.00pt solid #000000; width:23.50pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">Exhibit<BR>No.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Description</B></P></TD></TR>


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<TD HEIGHT="8"></TD>
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<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Notice to Current AMSC Shareholders Regarding Proposed Settlement of Derivative Actions.</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>

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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d683793dex991.htm
<DESCRIPTION>EX-99.1
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<HTML><HEAD>
<TITLE>EX-99.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 99.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES DISTRICT COURT </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>DISTRICT OF MASSACHUSETTS </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


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<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">IN RE AMERICAN SUPERCONDUCTOR</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">)</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">CORPORATION DERIVATIVE</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">)</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom">Lead Case No. 1:11-cv-10784-WGY</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">LITIGATION</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">)</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">)</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">This Document Relates to:</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">)</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">)</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="text-indent:2.00em; font-size:10pt; font-family:Times New Roman">ALL ACTIONS</P></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">)</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">)</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>NOTICE TO CURRENT AMSC SHAREHOLDERS REGARDING PROPOSED </U></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>SETTLEMENT OF DERIVATIVE ACTIONS </U></B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>TO:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>ALL OWNERS OF AMERICAN SUPERCONDUCTOR CORPORATION (&#147;AMSC&#148; OR &#147;THE COMPANY&#148;) COMMON STOCK AS OF FEBRUARY 4, 2014 (&#147;CURRENT AMSC SHAREHOLDERS&#148;). </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS MAY BE AFFECTED. THIS NOTICE RELATES TO A PROPOSED SETTLEMENT AND
DISMISSAL OF SHAREHOLDER DERIVATIVE LITIGATION AND CONTAINS IMPORTANT INFORMATION REGARDING YOUR RIGHTS. YOUR RIGHTS MAY BE AFFECTED BY LEGAL PROCEEDINGS IN THESE ACTIONS. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>IF THE FEDERAL COURT APPROVES THE SETTLEMENT AND DISMISSAL OF THE ACTIONS, SHAREHOLDERS OF AMSC WILL BE FOREVER BARRED FROM CONTESTING THE
APPROVAL OF THE PROPOSED SETTLEMENT AND FROM PURSUING THE SETTLED CLAIMS. THESE ACTIONS ARE NOT &#147;CLASS ACTIONS.&#148; THUS, THERE IS NO COMMON FUND UPON WHICH YOU CAN MAKE A CLAIM FOR A MONETARY PAYMENT. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>THE FEDERAL COURT HAS MADE NO FINDINGS OR DETERMINATIONS RESPECTING THE MERITS OF THE ACTIONS. THE RECITATION OF THE BACKGROUND AND
CIRCUMSTANCES OF THE SETTLEMENT CONTAINED HEREIN DOES NOT CONSTITUTE THE FINDINGS OF THE COURT. IT IS BASED ON REPRESENTATIONS MADE TO THE COURT BY COUNSEL FOR THE PARTIES. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>IF YOU WERE NOT THE BENEFICIAL OWNER OF AMSC COMMON STOCK ON THE RECORD DATE, PLEASE TRANSMIT THIS DOCUMENT TO SUCH BENEFICIAL OWNER.
</B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>YOU ARE HEREBY NOTIFIED, </B>pursuant to Federal Rule of Civil Procedure 23.1 and an Order of
the United States District Court for the District of Massachusetts (the &#147;Federal Court&#148;), that a proposed settlement agreement (the &#147;Settlement&#148;) has been reached among
Plaintiffs,<SUP STYLE="font-size:85%; vertical-align:top">1</SUP> on behalf of themselves and derivatively on behalf of AMSC in connection with the following shareholder derivative actions: 1. <I>In re American Superconductor Corporation Derivative
Litigation</I>, Lead Case No.&nbsp;1:11-cv-10784-WGY pending in the above Federal Court (the &#147;Federal Action&#148;); 2. <I>In re American Superconductor Corporation Shareholder Derivative Litigation, </I>Docket No.&nbsp;11-1961 pending in the
Superior Court for the Commonwealth of Massachusetts, Worcester County (the &#147;Massachusetts State Action&#148;); and 3. <I>Krasnoff v. Budhraja, et al., </I>C.A. No.&nbsp;7171-VCP pending in the Court of Chancery for the State of Delaware (the
&#147;Delaware Action&#148;) (collectively, the &#147;Actions&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Plaintiffs filed the Actions derivatively on behalf of AMSC to
remedy the alleged harms caused to the Company by the Individual Defendants&#146; alleged breach of their fiduciary duties. The proposed Settlement, if approved by the Federal Court, would fully, finally and forever resolve the Actions on the terms
set forth in the Stipulation and summarized in this Notice, including the dismissal of the Actions with prejudice. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I></I>As explained
below, a hearing (the &#147;Settlement Hearing&#148;) shall be held before the Federal Court on May&nbsp;6, 2014 at 2:00 p. m. to determine whether, <I>inter alia</I>, the proposed Settlement is fair, reasonable, and adequate, and should be finally
approved by the Federal Court. You have the right to object to the Settlement in the manner provided herein. If you fail to object in the <I> </I></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE="font-family:Times New Roman; font-size:10pt">For purposes of this Notice, the Federal Court incorporates by reference the definitions in the Parties&#146; Stipulation and Agreement of Settlement
(&#147;Stipulation&#148;) fully executed as of February&nbsp;4, 2014, and all capitalized terms used herein, unless otherwise defined, shall have the same meanings as set forth in the Stipulation. The Stipulation may be inspected at the Clerk of the
United State District Court for the District of Massachusetts located at the John Joseph Moakley U.S. Courthouse, 1 Courthouse Way, Suite 2300, Boston, Massachusetts 02210, during business hours of each business day.
</P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>
</I></B>manner provided herein <B><I>at least fourteen (14)&nbsp;business days prior to the Settlement Hearing</I></B>, you will be deemed to have waived your objections and will be bound by the
Final Order and Judgment to be entered and the releases to be given, unless otherwise ordered by the Federal Court.<B><I> </I></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This
Notice is not intended to be and should not be construed as an expression of any opinion by the Federal Court with respect to the merits of the claims made in the Actions, but is merely to advise you of the proposed Settlement and of your rights as
a Current AMSC Shareholder. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>I.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>BACKGROUND OF THE ACTIONS </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>A.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>Factual Background</U></B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">According to the Stipulation, AMSC provides wind turbine
designs and electrical control systems primarily in North America, Europe, and the Asia-Pacific. On March&nbsp;31, 2011, the Company asserted that Sinovel Wind Group Co., Ltd. (&#147;Sinovel&#148;), a manufacturer of wind turbines based in China and
one of AMSC&#146;s largest customers, refused to accept contracted shipments from AMSC, and that the Company believed Sinovel intended to reduce its level of inventory before accepting any further contracted shipments. As a result of the accumulated
aged accounts receivable due to payment delays and Sinovel&#146;s asserted refusal to accept March 2011 deliveries, the Company disclosed that it was reviewing the appropriateness of the timing of its revenue recognition on approximately $56 million
of unpaid shipments in the second, third and fourth quarters of fiscal year 2010 (ending March&nbsp;31, 2011). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On July&nbsp;11, 2011, the
Company announced that its financial statements for the quarterly periods ended on September&nbsp;30, 2010 and December&nbsp;31, 2010 could no longer be relied upon because the Company had not followed Generally Accepted Accounting Principles
(&#147;GAAP&#148;) in </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
its recognition of revenue from Sinovel and others during those quarters. Accordingly, a restatement of reported revenue was forthcoming, which was expected to reduce revenues for the quarterly
periods ended on September&nbsp;30, 2010 and December&nbsp;31, 2010, and AMSC&#146;s previously issued revenue guidance for the quarter ending March&nbsp;31, 2011 was being revised. Further, AMSC disclosed that it might have one or more material
weaknesses in its internal controls over financial reporting to ensure the accuracy of revenue recognition in China. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On
September&nbsp;22, 2011, AMSC filed its Annual Report on Form 10-K for the fiscal year ending March&nbsp;31, 2011 <FONT STYLE="white-space:nowrap">(&#147;10-K&nbsp;FYE&nbsp;3/31/2011&#148;)</FONT> with the U.S. Securities and Exchange Commission
(the &#147;SEC&#148;), and filed amended Quarterly Reports on Form 10-Q/A for the quarterly periods ending September&nbsp;30, 2010 and December&nbsp;31, 2010. In these reports, the Company reduced its previously stated revenues, net income, and net
earnings per share. In addition, the Company disclosed that as of March&nbsp;31, 2011, it did not maintain adequate internal controls to ensure that AMSC did not deviate from contractually established payment terms that were identified, communicated
and authorized, and that customer creditworthiness had not been properly monitored. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>B.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>Procedural Background</U></B> </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>1.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>The Federal Action</U></B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Following the Company&#146;s March&nbsp;31, 2011 disclosures,
on May&nbsp;4, 2011, plaintiff Weakley filed a shareholder derivative action against the Individual Defendants on behalf of AMSC in the Federal Court captioned <I>Weakley v. Yurek, et al.,</I> Case <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">No.&nbsp;1:11-cv-10784-WGY</FONT></FONT> (the &#147;<I>Weakley</I> Action&#148;), raising claims for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement and waste of corporate assets. On
May&nbsp;20, 2011, plaintiff Connors filed a substantially similar shareholder derivative action on behalf of AMSC in this </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
Court captioned <I>Connors v. Yurek, et al., </I>Case No.&nbsp;1:11-cv-10910-WGY (the &#147;<I>Connors</I> Action&#148;). The <I>Connors </I>Action was consolidated with the <I>Weakley</I> Action
by order of the Federal Court dated June&nbsp;16, 2011. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On June&nbsp;17, 2011, plaintiff Hurd filed a shareholder derivative action on
behalf of AMSC in this Court captioned <I>Hurd v. Yurek, et al.</I>, Case No.&nbsp;1:11-cv-11102-WGY (the &#147;<I>Hurd</I> Action&#148;), raising substantially similar allegations and claims to those which had been previously alleged in the
<I>Weakley</I> and <I>Connors</I> Actions. The <I>Hurd</I> Action was consolidated with the <I>Weakley</I> and <I>Connors</I> Actions by order of the Federal Court dated June&nbsp;22, 2011 to form the Federal Action. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On June&nbsp;28, 2011, the parties to the Federal Action filed a Stipulation (and proposed order) Staying Consolidated Derivative Action,
Appointing Co-Lead Counsel and Addressing Related Matters, which was entered by this Court on July&nbsp;5, 2011 (the &#147;Stay Order&#148;). The Stay Order, among other things, stayed the Federal Action pending further developments in the federal
securities class action pending in this Court captioned <I>Lenartz v. American Superconductor Corp., </I>No.&nbsp;11-cv-10582-WGY (the &#147;Securities Class Action&#148;). </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>2.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>The Massachusetts State Action</U></B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Following the Company&#146;s March&nbsp;31, 2011
disclosures, on April&nbsp;27, 2011, plaintiff Segel also filed a shareholder derivative action on behalf of AMSC in the Massachusetts State Court, captioned <I>Segel v. Yurek et al., </I>Docket No.&nbsp;11-0787 (the &#147;<I>Segel</I>
Action&#148;). The <I>Segel</I> Action raised substantially similar allegations and claims as those which would also be raised in the Federal Action. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On June&nbsp;3, 2011, the Marlborough Family Revocable Trust UAD 05/05/03 (&#147;Marlborough&#148;) filed a substantially similar derivative
action on behalf of AMSC in the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
Superior Court for the Commonwealth of Massachusetts, Middlesex County, captioned <I>Marlborough Family Revocable Trust UAD 05/05/03 v. Yurek et. al</I>., No.&nbsp;11-1961 (the &#147;Marlborough
Action&#148;). The Segel Action and the Marlborough Action were subsequently consolidated in the Massachusetts State Court (<I>i.e</I>., in Worcester County) by order dated September&nbsp;7, 2011 to form the &#147;Massachusetts State Action. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On December&nbsp;12, 2011, plaintiff Segel filed a First Consolidated Verified Shareholder Derivative Complaint. On June&nbsp;20, 2011, the
Massachusetts State Court entered an Order staying the Massachusetts State Action pending further developments in the Securities Class Action. On March&nbsp;8, 2012, the Massachusetts State Court entered an Order adding Anderson as a plaintiff in
the Massachusetts State Action. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>3.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>The Delaware Action</U></B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Following the Company&#146;s March&nbsp;31, 2011
disclosures, on May&nbsp;12, 2011, plaintiff Krasnoff issued a pre-suit shareholder litigation demand upon the Board (the &#147;Litigation Demand&#148;) pursuant to Del. Ch. Ct. R. 23.1. The Litigation Demand raised allegations substantially similar
to those which had been asserted in the Federal Action and the Massachusetts State Action. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Eight months after issuing the Litigation
Demand on the Board, on January&nbsp;12, 2012, plaintiff Krasnoff filed the Delaware Action on behalf of AMSC in the Delaware Court. In the Delaware Action, plaintiff Krasnoff raised substantially similar allegations and claims as those which had
been raised in the Federal Action and the Massachusetts State Action. On August&nbsp;1, 2012, the parties to the Delaware Action submitted a stipulation and proposed order to stay the Delaware Action pending further developments in the Securities
Class Action, which was entered on August&nbsp;2, 2012. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>


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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>4.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>Mediation and Settlement</U> </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On January&nbsp;24, 2013, Plaintiffs submitted a Joint
Mediation Statement and Settlement Demand in anticipation of an in-person mediation which subsequently took place on March&nbsp;5, 2013 in New York City (the &#147;Mediation&#148;). The parties to the Actions (and to the Securities Class Action)
participated in the Mediation, which was held before an experienced mediator, Jed D. Melnick, Esq. (the &#147;Mediator&#148;). While a resolution of the Actions was not reached at the conclusion of the Mediation, the submissions made by the parties
and other communications in connection with the Mediation served as the basis for an extended series of subsequent communications and discussions over the next ten months. Based on those negotiations, the parties to the Action reached an agreement
in principle to the terms required to settle the Actions and ultimately executed this Stipulation. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>II.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>PLAINTIFFS&#146; COUNSEL&#146;S INVESTIGATION AND RESEARCH, PLAINTIFFS&#146; CLAIMS, AND THE BENEFITS OF SETTLEMENT</B> </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Plaintiffs&#146; Counsel conducted an extensive investigation relating to the claims and the underlying events alleged in the Actions
including, but not limited to: (1)&nbsp;inspecting, analyzing, and reviewing AMSC&#146;s public filings with the SEC, press releases, announcements, transcripts of investor conference calls, and news articles; (2)&nbsp;drafting the Litigation Demand
and drafting and filing the various complaints in the Actions; (3)&nbsp;researching the applicable law with respect to the claims asserted in the Actions and the potential defenses thereto; (4)&nbsp;researching corporate governance issues;
(5)&nbsp;reviewing and analyzing non-public documents and information produced by Defendants; (6)&nbsp;preparing a joint mediation statement and settlement demand and subsequently participating in the March&nbsp;5, 2013 in-person Mediation before
the Mediator; and (7)&nbsp;participating in extensive settlement discussions with counsel for the Defendants. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Plaintiffs&#146; Counsel believe that the claims asserted in the Actions have merit and that
their investigation supports the claims asserted. Without conceding the merit of any of Defendants&#146; defenses or the lack of merit of any of their own allegations, and solely in order to avoid the potentially protracted time, expense, and
uncertainty associated with continued litigation, including potential trial and appeals, Plaintiffs have concluded that it is desirable that the Actions be fully and finally settled in the manner and upon the terms and conditions set forth in this
Stipulation. Plaintiffs and Plaintiffs&#146; Counsel recognize the significant risk, expense, and length of continued proceedings necessary to prosecute the Actions against the Individual Defendants through trial(s) and through possible appeal(s).
Plaintiffs&#146; Counsel also have taken into account the uncertain outcome and the risk of any litigation, especially in complex cases such as the Actions, as well as the difficulties and delays inherent in such litigation. Based on their
evaluation, Plaintiffs and Plaintiffs&#146; Counsel have determined that the Settlement is in the best interests of Plaintiffs, AMSC, and Current AMSC Shareholders, and have agreed to settle the Actions upon the terms and subject to the conditions
set forth herein. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>III.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>DEFENDANTS&#146; DENIALS OF WRONGDOING AND LIABILITY </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Individual Defendants have
denied and continue to deny that they have committed or attempted to commit any violations of law, any breach of fiduciary duty owed to AMSC, or any wrongdoing whatsoever. Without admitting the validity of any of the claims Plaintiffs have asserted
in the Actions, or any liability with respect thereto, the Individual Defendants and AMSC have concluded that it is desirable that the claims be settled on the terms and subject to the conditions set forth herein. Defendants are entering into this
Settlement because it will eliminate the uncertainty, distraction, disruption, burden, risk, and expense of further litigation. Further, Defendants acknowledge that the Settlement is fair, reasonable, adequate, and in the best interests of AMSC and
Current AMSC Shareholders. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Neither this Stipulation, nor any of its terms or provisions, nor entry of the Final Order and
Judgment, nor any document or exhibit referred or attached to this Stipulation, nor any action taken to carry out this Stipulation, is or may be construed or used as evidence of the validity of any of Plaintiffs&#146; Released Claims, or as an
admission by or against Defendants of any fault, wrongdoing, or concession of liability whatsoever. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>IV.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>THE SETTLEMENT HEARING</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Settlement Hearing will be held before the Federal Court on
May&nbsp;6, 2014 at 2:00 p.m. at the United State District Court for the District of Massachusetts located at the John Joseph Moakley U.S. Courthouse, 1 Courthouse Way, Suite 2300, Boston, Massachusetts 02210 to determine: (i)&nbsp;whether the
proposed Settlement, upon the terms set forth in the Stipulation, should be finally approved in all respects as fair, reasonable, and adequate; (ii)&nbsp;whether the Final Order and Judgment approving the Settlement should be entered;
(iii)&nbsp;whether Plaintiffs&#146; Counsel&#146;s agreed-to Fee Award should be finally approved; and (iv)&nbsp;whether the Incentive Awards should be finally approved. The Settlement Hearing may be continued by the Court at the Settlement Hearing,
or at any adjourned session thereof without further notice. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>V.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>THE SETTLEMENT</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The terms and conditions of the proposed Settlement are set forth fully
in the Stipulation described above. The Stipulation has been filed with the Court and the following is only a summary of its terms. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As a
result, in part, of the filing, prosecution and settlement of the Action, the Company received the relief described below. Defendants have agreed that the Company and/or the Board will adopt the corporate governance provisions referred to below to
the extent not already adopted. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">9 </P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Following the initiation of the Actions, during the fourth quarter of the fiscal year ended
March&nbsp;31, 2012, AMSC adopted and/or implemented a series of corporate governance reforms (the &#147;Reforms&#148;), which are attached to the Stipulation as Exhibit E. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Subsequently, as a direct result of the initiation, prosecution, and settlement of the Actions, AMSC agreed to further enhance certain of the
Reforms that were previously adopted (the &#147;Enhancements&#148;). To the extent that any of the Enhancements to the Reforms have not already been implemented, AMSC shall do so within 90 (ninety) days of the date of the Stipulation. The
Enhancements to certain of the Reforms that were previously adopted are as follows: </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I><U>Reform 1 Enhancement</U>: </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">AMSC shall continue to maintain a Credit Policy that clearly outlines the Company&#146;s requirement that all revenue transactions require
evidence and support that a proper credit evaluation was done to limit any risk around collectability. For each customer granted open credit shipment terms, prior to the grant of such terms, a credit evaluation is performed and as part of the
Schedule B Determination Worksheet a required communication from the preparer before revenue can be recorded is an assertion that the proper credit support has been completed and on file. The preparer shall be an individual who has a sufficient
background in financial balance sheet analysis and sufficient credit training to perform this task. The credit support will be backed by a D&amp;B, Creditform, or CreditRisk analysis from our credit services and additional evidence based on history
with the Company and a review of their financials, if such financials can be obtained with reasonable effort. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">10 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I><U>Reform 4 Enhancement</U>: </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Credit Policy was discussed with the Company&#146;s Finance Directors of Austria and China, the Managing Director of Finance, the VP of
Operations, the Revenue Manager and VP Corporate Controller to ensure that it was understood and clear what the expectations were in regards to this policy. Each time a new individual assumes one of these positions, the Credit Policy will be
discussed with that officer to ensure that it is understood and clear what the expectations are in regards to this policy. Additionally, the Credit Policy will be reviewed with new employees in the following functions: Revenue Manager, Business Unit
Controllers, Plant Controllers, V.P. Operations Finance, V.P. Corporate Controller and CFO. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I><U>Reform 5 Enhancement</U>: </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A new control was implemented at AMSC to set credit limits on customers in Oracle that will prevent shipments being made beyond an approved
credit limit. At a minimum, credit limits will be reviewed on an annual basis for all active customers. Exceptions to credit limits may be approved only by the CFO or General Counsel. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I><U>Reform 7 Enhancement</U>: </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">AMSC has provided additional tools for its Finance Team to use to assess creditworthiness of customers in addition to D&amp;B and Creditreform
used previously. AMSC has been also utilizing Credit Risk Monitor Service and Standard&nbsp;&amp; Poor&#146;s. The CFO or his or her designee will ensure that members of the Finance Team are sufficiently conversant in the evaluation of
D&amp;B&#146;s Financial Strength Score, Paydex Score, Financial Stress Score, and Commercial Credit Score, and Credit Risk Monitor&#146;s FRISK Score. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">11 </P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I><U>Reform 15 Enhancement</U>: </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Key employees &#151; Revenue Manager, VP Corporate Controller, VP Finance Operations and Director of Accounting &#151; shall attend the PwC
Revenue Boot Camp or obtain equivalent training every three (3)&nbsp;years. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I><U>Reform 17 Enhancement</U>: </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In-house training on revenue recognition shall be requested of the Company&#146;s qualified outside accounting firm for all sales and
development, and accounting staff and line managers with revenue responsibility every three (3)&nbsp;years, and shall be recorded for those who cannot attend in person and required to be reviewed. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I><U>Reform 19 Enhancement</U>: </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">During monthly operations reviews, time shall be devoted to senior management review of pending operational and accounting issues for the
current quarter. Minutes of monthly operations reviews shall be brought to the attention of the Audit Committee as appropriate. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In
addition, as a direct result of the initiation, prosecution, and settlement of the Actions, AMSC has also agreed to adopt a policy whereby the Chair of the Audit Committee of the Board shall rotate every seven (7)&nbsp;years, provided that a
qualified individual is available to assume the role. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Parties agree that the foregoing measures have materially benefitted or will
materially benefit AMSC and Current AMSC Shareholders. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>VI.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>DISMISSAL AND RELEASES </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If the Federal Court approves the Settlement at the Settlement
Hearing, the Parties will jointly request entry of the Final Order and Judgment by the Federal Court, the entry of which is a condition of the Stipulation: (i)&nbsp;approving finally the Settlement set forth in the Stipulation as
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">12 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
fair, adequate, and reasonable, and directing its consummation pursuant to its terms; (ii)&nbsp;finally approving the Fee Award and Incentive Awards; (iii)&nbsp;dismissing with prejudice all of
Plaintiffs&#146; Released Claims against Defendants&#146; Released Persons; (iv)&nbsp;permanently barring and enjoining the institution and prosecution by Plaintiffs&#146; Released Persons and anyone acting on behalf of AMSC against Defendants&#146;
Released Persons in any court asserting any of Plaintiffs&#146; Released Claims and any claims arising out of, relating to or in connection with the institution, prosecution, assertion, defense, settlement, or resolution of the Actions;
(v)&nbsp;permanently barring and enjoining the institution and prosecution by Defendants&#146; Released Persons and/or Current AMSC Shareholders of any action against Plaintiffs&#146; Released Persons in any court asserting any of the
Defendants&#146; Released Claims arising out of, relating to, or in connection with the institution, prosecution, assertion, defense, settlement, or resolution of the Action; and (vi)&nbsp;containing such other and further provisions consistent with
the terms of this Stipulation to which the Parties hereto consent in writing. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In consideration of the obligations and commitments
undertaken by Defendants and the releases by Defendants&#146; Released Persons, which constitute good and valuable consideration, and subject to the terms and conditions of this Stipulation, on the Effective Date, Plaintiffs&#146; Released Persons
shall fully, finally and forever release, relinquish and discharge as against Defendants&#146; Released Persons any and all of Plaintiffs&#146; Released Claims, and shall forever be barred and enjoined from instituting, commencing, or prosecuting
any and all of Plaintiffs&#146; Released Claims against Defendants&#146; Released Persons. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In consideration of the obligations and
commitments undertaken by the Parties, which constitute good and valuable consideration, and subject to the terms and conditions of this Stipulation, on the Effective Date, Defendants&#146; Released Persons shall fully, finally and forever
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">13 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
release, relinquish and discharge as against Plaintiffs&#146; Released Persons any and all of Defendants&#146; Released Claims, and shall forever be barred and enjoined from instituting,
commencing, or prosecuting any and all Defendants&#146; Released Claims against Plaintiffs&#146; Released Persons. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Nothing herein shall
in any way impair or restrict the rights of any Party to enforce the terms of the Stipulation. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>VII.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>ATTORNEYS&#146; FEES AND EXPENSES </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In recognition of the substantial benefits provided
to AMSC and Current AMSC Shareholders as a result of the initiation, prosecution, pendency, and Settlement of the Action, AMSC, through its Board exercising its independent business judgment, shall cause to be paid to Plaintiffs&#146; Counsel an
agreed-to award of attorneys&#146; fees and expenses in the total amount of $475,000.00 (the &#147;Fee Award&#148;). The Parties agree that this Fee Award is fair and reasonable in light of the substantial benefits conferred upon AMSC and Current
AMSC Shareholders as a result of this Settlement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Plaintiffs&#146; Counsel shall request final approval of the Fee Award at the
Settlement Hearing. To date, Plaintiffs&#146; Counsel have neither received any payment for their services in conducting the Actions, nor have they been reimbursed for their out-of-pocket expenses incurred. Plaintiffs&#146; Counsel believes that the
Fee Award agreed to is within the range of attorneys&#146; fees approved by courts under similar circumstances in litigation of this type. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In light of the benefits they have helped to create for all Current AMSC Shareholders, Plaintiffs shall apply for Court-approved incentive
awards in the amount of $1,000 (the &#147;Incentive Award&#148;). The Incentive Awards shall be funded from the Fee Award to the extent that agreement is approved in whole or part. Defendants shall take no position on the Incentive Awards. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">14 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>VIII.&nbsp;&nbsp;THE RIGHT TO OBJECT AND/OR BE HEARD AT THE SETTLEMENT HEARING </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B><I></I></B>Any Current AMSC Shareholder may object and/or appear and show cause, if he, she, or it has any concern, why the Settlement
should not be approved as fair, reasonable, and adequate, or why the Final Order and Judgment should not be entered thereon, or why the Fee Award or Incentive Awards should not be approved; provided, however, unless otherwise ordered by the Court,
no Current AMSC Shareholder shall be heard or entitled to contest the approval of the terms and conditions of the Settlement, or, if approved, the Final Order and Judgment to be entered thereon approving the same, or the Fee Award or Incentive
Awards, unless that shareholder has, <B><I>at least fourteen (14)&nbsp;business days prior to the Settlement Hearing</I></B>: (1)&nbsp;filed with the Clerk of the Federal Court a written objection to the Settlement setting forth: (a)&nbsp;the nature
of the objection; (b)&nbsp;proof of ownership of AMSC common stock through the date of the Settlement Hearing, including the number of shares of AMSC common stock and the date of purchase; and (c)&nbsp;any documentation in support of such objection;
and (2)&nbsp;if a Current AMSC Shareholder intends to appear and requests to be heard at the Settlement Hearing, such shareholder must have, in addition to the requirements of (1)&nbsp;above, filed with the Clerk of the Federal Court: (a)&nbsp;a
written notice of such shareholder&#146;s intention to appear; (b)&nbsp;a statement that indicates the basis for such appearance; and (c)&nbsp;the identities of any witnesses the shareholder intends to call at the Settlement Hearing and a statement
as to the subjects of their testimony. If a Current AMSC Shareholder files a written objection and/or written notice of intent to appear, such shareholder must also simultaneously serve copies of such notice, proof, statement, and <B><I>
</I></B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">15 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
documentation, together with copies of any other papers or briefs such shareholder files with the Federal Court (either by hand delivery or by first class mail) upon each of the following: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="50%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Brett D. Steckers</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">THE WEISER LAW FIRM, P.C.</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">22
Cassatt Ave, First Floor</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Berwyn, PA 19312</P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>Counsel for the Federal Plaintiffs</I></P></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Patrick E. Gibbs</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">LATHAM &amp; WATKINS LLP</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">140 Scott
Drive</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Menlo Park, CA 94025</P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>Counsel for Defendants</I></P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Any Current AMSC Shareholder who does not make his, her, or its objection in the manner provided herein shall
be deemed to have waived such objection and shall forever be foreclosed from making any objection to the fairness, reasonableness, or adequacy of the settlement and the Fee Award and Incentive Awards as incorporated in the Stipulation, unless
otherwise ordered by the Federal Court, but shall otherwise be bound by the Final Order and Judgment to be entered and the releases to be given. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>IX.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>CONDITIONS FOR SETTLEMENT </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Settlement is conditioned upon the occurrence of certain
events described in the Stipulation, which requires, among other things: (1)&nbsp;entry of the requested Final Order and Judgment by the Federal Court; (2)&nbsp;the payment of the Fee Award; and (3)&nbsp;expiration of the time to appeal from or
alter or amend the Final Order and Judgment. If, for any reason, any one of the conditions described in the Stipulation is not met and the entry of the Final Order and Judgment does not occur, the Stipulation might be terminated and, if terminated,
will become null and void; and the Parties to the Stipulation will be restored to their respective positions as of February&nbsp;4, 2014. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>X.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>EXAMINATION OF PAPERS AND INQUIRIES </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This Notice contains only a summary of the terms of
the Settlement. For a more detailed statement of the matters involved in the Actions, reference is made to the Stipulation, which may </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">16 </P>


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be inspected at the Clerk of the United State District Court for the District of Massachusetts located at the John Joseph Moakley U.S. Courthouse, 1 Courthouse Way, Suite 2300, Boston,
Massachusetts 02210, during business hours of each business day. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Any other inquiries regarding the Settlement or the Actions should be
addressed in writing to the following: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="99%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center">Brett D. Stecker</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center">THE WEISER LAW FIRM, P.C.</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center">22 Cassatt Ave, First Floor</TD></TR>
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<TD VALIGN="top" ALIGN="center">Berwyn, PA 19312</TD></TR>
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<TD VALIGN="top" ALIGN="center"><I>Counsel for the Federal Plaintiffs</I></TD></TR>
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<TD VALIGN="top" ALIGN="center"><B>PLEASE DO NOT TELEPHONE THE FEDERAL COURT OR AMSC</B></TD></TR>
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<TD VALIGN="top" ALIGN="center"><B>REGARDING THIS NOTICE.</B></TD></TR>
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 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">17 </P>

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