APPROVAL OF AMENDMENTS TO THE 2007 STOCK INCENTIVE PLAN, AS
AMENDED
(PROPOSAL 2)
Overview
In this Proposal 2, we are requesting AMSC stockholders approve amendments to our 2007 Stock Incentive Plan, as amended, or 2007 Plan,
(i) to increase by 1,200,000 the number of shares of our common stock available for issuance under the 2007 Plan, and (ii) to remove certain provisions which were otherwise required for awards to qualify as performance-based compensation
under an exception to Section 162(m) of the Code prior to its repeal.
Our Board approved the amendments to the 2007 Plan on
June 13, 2019, subject to and effective upon stockholder approval. If this Proposal 2 is not approved by our stockholders, the amendments to the 2007 Plan will not become effective, but the 2007 Plan will remain in effect in accordance with its
terms prior to such Board approval.
The approval of the amendments to the 2007 Plan requires the affirmative vote of the holders of a
majority of the shares of common stock voting on the matter. Abstentions and broker
non-votes
will have no effect on the outcome of this proposal.
Board Recommendation
The Board
believes that the amendments to the 2007 Plan are in the best interests of AMSC and our stockholders and therefore recommends a vote FOR this proposal.
Prior Stockholder Approvals
On
August 3, 2007, AMSC stockholders adopted and approved the 2007 Plan and 300,000 shares of common stock were reserved for issuance thereunder.
On August 6, 2009, AMSC stockholders adopted amendments to our 2007 Plan which (i) increased by 300,000 the number of shares of
common stock available for issuance under the 2007 Plan, and (ii) implemented fungible share counting by counting future restricted stock, restricted stock units and other stock-based awards with a per share price or per unit purchase price
lower than 100% of fair market value, or Full-Value Awards, against the 2007 Plans share reserve as two shares for every one share issued in connection with such awards.
On July 27, 2012, AMSC stockholders adopted amendments to our 2007 Plan which (i) increased by 750,000 the number of shares of common
stock available for issuance under the 2007 Plan, and (ii) decreased our existing fungible share reserve ratio so that, for awards granted from and after the date of the 2012 annual meeting, the number of shares of stock available for issuance
under the 2007 Plan were reduced (A) by one (1) share for each share granted pursuant to awards that are not Full-Value Awards (including, without limitation, stock options or stock appreciation rights) awarded under the 2007 Plan, and
(B) by one and three tenths (1.3) shares for each share granted pursuant to Full-Value Awards awarded under the 2007 Plan.
On
August 1, 2014, AMSC stockholders adopted amendments to our 2007 Plan which (i) increased by 700,000 the number of shares of common stock available for issuance under the 2007 Plan, and (ii) decreased our existing fungible share
reserve ratio so that, for awards granted from and after the date of the 2014 annual meeting, the number of shares of stock available for issuance under the 2007 Plan were reduced by one (1) share for each share granted pursuant to each award,
whether or not a Full-Value Award, awarded under the 2007 Plan, and (iii) extended the term of the 2007 Plan through August 1, 2024, the tenth anniversary of shareholder approval at the 2014 annual meeting.
On July 29, 2016, AMSC stockholders adopted amendments to our 2007 Plan which (i) increased by 1,350,000 the number of shares of our
common stock available for issuance under the 2007 Plan, (ii) approved the material terms of performance goals that may apply to awards granted under the 2007 Plan for purposes of Section 162(m) of the Code, and (iii) increased the
maximum number of shares issuable to any person in any calendar year from 100,000 shares to 250,000 shares.
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