Power Solutions International, Inc. (NASDAQ:PSIX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.
On March 26, 2020, Power Solutions International, Inc. (the “Company”) entered into the First Amendment to Strategic Collaboration Agreement (the “Amendment”), which amends the Strategic Collaboration Agreement, dated March 20, 2017 (the “Collaboration Agreement”) with Weichai Power Co., Ltd. (“Weichai Power”), an affiliate of Weichai America Corp. (“Weichai”). The Amendment extends the terms and obligations under the Collaboration Agreement until March 20, 2023, with the option to extend the Collaboration Agreement through mutual agreement of the parties within two months of the expiration of the term.
Weichai is currently the Company’s largest stockholder holding 51.4% of the Company’s outstanding common stock as of March 26, 2020. The Collaboration Agreement was entered into in conjunction with a Share Purchase Agreement, dated March 20, 2017, between the Company and Weichai, and a Shareholder Agreement, dated March 20, 2017, between the Company and Weichai.
The Collaboration Agreement was entered into in order to achieve the respective strategic objectives and enhance the strategic cooperation alliance to share experiences, expertise and resources among the Company and Weichai Power. Among other things, the Collaboration Agreement established a joint steering committee, permitted Weichai Power to second a limited number of certain technical, marketing, sales, procurement and finance personnel to work at the Company and established several collaborations, related to stationary natural-gas applications and Weichai Power diesel engines. The Collaboration Agreement provides for the steering committee to create various sub-committees with operating roles and otherwise governs the treatment of intellectual property of parties prior to the collaboration and the intellectual property developed during the collaboration.
The foregoing descriptions of the Amendment and the Collaboration Agreement do not purport to be complete and are subject to and qualified in their entirety by reference to the full texts of such agreements, copies of which are filed as Exhibits 10.1 on this Form 8-K, and Exhibit 10.5 on the Form 8-K filed by the Company on March 27, 2017, respectively, and are incorporated herein by reference.
Section 9 – Financial Statements and Exhibits.
| 10.1 | First Amendment to Strategic Collaboration Agreement, dated as of March 26, 2020, by and between the Company and Weichai Power. |
