On March 24, 2023, Power Solutions International, Inc. (the “Company” or “PSI”) amended its $130 million uncommitted senior secured revolving credit agreement (the “Third Amended and Restated Credit Agreement”), with Standard Chartered Bank, as administrative agent (“Standard Chartered”), and the lenders party thereto from time to time. The Third Amended and Restated Credit Agreement extends the maturity date of loans outstanding under its previous credit facility to the earlier of March 22, 2024 or the demand of Standard Chartered. The Third Amended and Restated Credit Agreement is fully drawn as of the date of this Current Report.

The Third Amended and Restated Credit Agreement is subject to customary events of default and covenants, including minimum consolidated EBITDA and Consolidated Interest Coverage Ratio covenants for the second and third quarters of 2023. Borrowings under the Third Amended and Restated Credit Agreement will incur interest at either the alternate base rate or the Secured Overnight Financing Rate (“SOFR”) plus 3.35% per annum. The obligations under the Third Amended and Restated Credit Agreement are unconditionally guaranteed, on a joint and several basis, by certain wholly-owned, existing and subsequently acquired or formed direct and indirect domestic subsidiaries of the Company, subject to customary exceptions.

The obligations under the Third Amended and Restated Credit Agreement are secured by substantially all assets of the Company and the Company's wholly-owned subsidiaries. In connection with the Third Amended and Restated Credit Agreement, on March 24, 2023, the Company also amended two of its four separate shareholder's loan agreements with its majority stockholder, Weichai America Corp. (“Weichai”), to among other things, extend the maturities thereof.

The first shareholder's loan agreement was amended to extend the maturity date from April 24, 2023 to April 24, 2024 (the “first amended Shareholder's Loan Agreement”), providing the Company with a $130.0 million subordinated loan under which Weichai is obligated to advance funds solely for purposes of repaying outstanding borrowings under the Third Amended and Restated Credit Agreement if the Company is unable to pay such borrowings. The fourth shareholder's loan agreement was amended to extend the maturity date from March 31, 2023 to March 31, 2024 (the “fourth amended Shareholder's Loan Agreement”), providing the Company with a $30 million subordinated loan at the discretion of Weichai. The Company also previously entered into two other loan agreements with Weichai, including the $25 million Second Amended and Restated Shareholder's Loan Agreement (the “second amended Shareholder's Loan Agreement”) and the $50 million First Amended and Restated Shareholder's Loan Agreement (the “third amended Shareholder's Loan Agreement”).

The second amended Shareholder's Loan Agreement will mature on May 20, 2023 and the third amended Shareholder's Loan Agreement will mature on November 30, 2023. The Company intends to work with Weichai to extend both the second amended Shareholder's Loan Agreement and the third amended Shareholder's Loan Agreement as the maturity date approaches. As of March 24, 2023, both the second amended Shareholder's Loan Agreement and the third amended Shareholder's Loan Agreement have been fully drawn.