Document:

EX-4.2

 Exhibit 4.2 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND, EXCEPT IN SUCH
LIMITED CIRCUMSTANCES, MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR OF THE DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

SOUTHWEST AIRLINES CO. 

5.250% Notes due 2025 
 No.
[        ] 
 CUSIP # 844741 BJ6 

Southwest Airlines Co., a corporation duly organized and existing under the laws of Texas (herein called the “Company,” which term
includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
$[            ] ([            ] MILLION DOLLARS) on May 4, 2025, and to pay interest thereon from May 4, 2020 or from
the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, semi-annually in arrears on May 4 and November 4 (each, an “Interest Payment Date”) in each year, commencing
November 4, 2020, at the rate of 5.250% per annum, until the principal hereof is fully paid or made available for full payment. Interest on this Security shall be computed on the basis of a 360-day year
of twelve 30-day months. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, subject to certain exceptions provided in such Indenture, be paid to the person in
whose name this Security is registered on the Security register or registers of the Company at the close of business on April 19 or October 20 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.

  
 1 

 Payment of the principal of and interest on this Security will be made in such immediately
available funds of the United States of America as at the time of payment are legal tender for payment of public and private debts. 

Reference is hereby made to the further provisions of this Security set forth below, which further provisions shall for all purposes have the
same effect as if set forth in this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to
below by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated: May     , 2020 
  

			
	SOUTHWEST AIRLINES CO.

 
			
		
	By:	 	  

	Name:	 	
	Title:	 	

  

	
	ATTEST:
	
	  

	Name:
	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein referred to in the within-mentioned Indenture. 

WELLS FARGO BANK, NATIONAL ASSOCIATION 
  as Trustee

  

			
	By:	 	  

		 	Authorized Signatory

  
 Signature Page to
Global Note ([    ]) 
 CUSIP # 844741 BJ6 

 This Security is one of a duly authorized issue of debt securities of the Company, issued
and to be issued in one or more series under an Indenture, dated as of September 17, 2004 (herein called the “Indenture”), between the Company and Wells Fargo Bank, National Association, as Trustee (herein called the
“Trustee”, which term includes any successor trustee under the Indenture), to which Indenture, all indentures supplemental thereto, and the Officers’ Certificate dated May 4, 2020, setting forth the terms of the debt
securities of this series, reference is hereby made for a statement of the respective rights, limitation of rights, duties, and immunities thereunder of the Company, the Trustee, and the holders of the Securities (as defined below) and of the terms
upon which the Securities are, and are to be, authenticated and delivered. This Security is one of a series designated as 5.250% Notes due 2025 (the “Securities”). This Security is a Global Security representing a portion of the
Securities, initially limited in aggregate principal amount to $1,250,000,000, but subject to the right of the Company to issue and sell additional Securities in the future without the consent of the holders thereof. Any additional securities of
this series, together with this Security, shall constitute a single series under the Indenture. 
 Redemption 

The Securities shall be redeemable, at the option of the Company, in whole or in part, at any time, on at least 10 days but not more than 60
days’ prior notice sent to the registered address of each holder of Securities to be so redeemed. If the Securities are redeemed at any time prior to the Par Call Date, the Securities will be redeemed at a redemption price equal to the greater
of (i) 100% of the principal amount of the Securities to be so redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on such Securities that would have been made if the Securities matured
on the Par Call Date (exclusive of interest accrued to the redemption date) discounted to the redemption date, on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at the Treasury Rate (as defined herein) plus 50 basis points, plus, in either case, accrued and unpaid interest on the principal amount being redeemed to such redemption date. If the Securities are
redeemed on or after the Par Call Date, the Securities will be redeemed at a redemption price equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest thereon to the redemption date. In either case,
the redemption is subject to the right of holders of record on the relevant record date to receive interest due on an Interest Payment Date that is on or before the date of redemption. 

If fewer than all of the Securities are to be redeemed at any time, selection of Securities for redemption will be made by the Trustee in such
manner as the trustee deems appropriate and fair (or, in the case of Securities issued in global form, by such other method as the DTC may require); provided, however, that the Securities will be redeemed only in the minimum denominations of $2,000
and integral multiples thereof of $1,000. 
 For purposes of determining the redemption price, the following definitions shall apply: 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or
interpolated maturity comparable to the remaining term of the Securities to be redeemed, calculated as if the maturity date of the Securities were the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection
and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life. 

“Comparable Treasury Price” means, with respect to any redemption date, the average of the Reference Treasury Dealer Quotations for
such redemption date. 
 “Par Call Date” means April 4, 2025. 

“Quotation Agent” means one of the Reference Treasury Dealers appointed by the Company. 

“Reference Treasury Dealer” means each of BofA Securities, Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P.
Morgan Securities LLC, and Morgan Stanley & Co. LLC, and their respective successors; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury
Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date,
the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company and the Trustee by such Reference Treasury
Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such redemption date. 

  
 3 

 “Treasury Rate” means, with respect to any redemption date, the rate per year
equal to the semi-annual equivalent yield to maturity or interpolated yield (on a day count basis) of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the Comparable Treasury Price for such redemption date. The Treasury Rate shall be calculated by the Quotation Agent on the third Business Day preceding such redemption date. 

Any such redemption may, at the Company’s discretion, be conditioned upon (i) the occurrence of a Change of Control (as defined
below) or (ii) the closing of another transaction, including a sale of securities or other financing, in each case as specified in the notice in reasonable detail. A notice of conditional redemption will be of no effect unless all conditions to
the redemption have occurred on or before the redemption date or have been waived by the Company on or before the redemption date. The Company will provide notice of the satisfaction of all conditions as soon as practicable following occurrence of
the conditions. The Company will provide notice of any waiver of a condition or failure to meet such conditions no later than the redemption date. 

Change of Control 
 Upon the
occurrence of a Change of Control Triggering Event, unless the Company has otherwise exercised its right to redeem the Securities, each holder of such Securities will have the right to require the Company to purchase all or a portion of such
holder’s Securities pursuant to the offer described below (the “Change of Control Offer”), at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the date of purchase,
subject to the rights of holders of Securities on the relevant record date to receive interest due on the relevant Interest Payment Date. 

Within 30 days following the date upon which the Change of Control Triggering Event occurs, or at the Company’s option, prior to any
Change of Control but after the public announcement of the Change of Control, unless the Company has otherwise exercised the Company’s right to redeem the Securities, the Company shall deliver a notice to each holder of Securities, with a copy
to the Trustee, which notice will govern the terms of the Change of Control Offer. Such notice will state, among other things, the purchase date, which must be no earlier than 30 days nor later than 60 days from the date such notice is sent, other
than as may be required by law (the “Change of Control Payment Date”). The notice, if sent prior to the date of consummation of the Change of Control, will state that the Change of Control Offer is conditioned on the Change of Control
Triggering Event occurring on or prior to the Change of Control Payment Date. Holders of Securities electing to have Securities purchased pursuant to a Change of Control Offer must surrender their Securities, with the form entitled “Option of
Holder to Elect Purchase” on the reverse of the Security completed, to the Paying Agent at the address specified in the notice, or transfer their Securities to the Paying Agent by book-entry transfer pursuant to the applicable procedures of
DTC, before the close of business on the third Business Day prior to the Change of Control Payment Date. 
 The Company will not be required
to make a Change of Control Offer if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for such an offer made by the Company and such third party purchases all Securities properly
tendered and not withdrawn under its offer. 
 If holders of not less than 90% in aggregate principal amount of the outstanding Securities
validly tender and do not withdraw the Securities in a Change of Control Offer and the Company, or any third party making a Change of Control Offer in lieu of the Company, purchases all of the Securities validly tendered and not withdrawn by such
holders, the Company will have the right, upon not less than 10 nor more than 60 days’ prior notice, given not more than 30 days following such purchase pursuant to the Change of Control Offer described above, to redeem all Securities that
remain outstanding following such purchase at a redemption price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the date of redemption (subject to the right of holders of record on the
relevant record date to receive interest on the relevant Interest Payment Date). 
 The Company will comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934 (the “Exchange Act”) and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in
connection with the repurchase of the Securities as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Offer provisions of the
Securities, the Company will comply with those securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Offer provisions of the Securities by virtue of any such conflict. 

Except as described above with respect to a Change of Control Triggering Event, the holders of the Securities shall not have any right to
require the Company to repurchase or redeem the Securities in the event of a takeover, recapitalization, or similar transaction. 

  
 4 

 As used herein: 

“Below Investment Grade Rating Event” means the rating on the Securities is lowered by each of the Rating Agencies and the Securities
are rated below Investment Grade by each of the Rating Agencies on any day within the 60-day period (which 60-day period will be extended if, and so long as, the rating
of the Securities is under publicly announced consideration for a possible downgrade to below Investment Grade by all Rating Agencies that have not lowered the rating on the Securities to below Investment Grade, but in any event not beyond the 60th
day following the occurrence of the Change of Control) after the earlier of (1) the occurrence of a Change of Control or (2) public notice of the occurrence of a Change of Control or the Company’s intention to effect a Change of
Control; provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below
Investment Grade Rating Event for purposes of the definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform
the Company and the Trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the
applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event). 
 “Change of Control”
means the consummation of any transaction (including without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), other than the Company or
its subsidiaries, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the combined
voting power of the Company’s Voting Stock or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged, or changed measured by voting power rather than number of shares, other than any such
transaction where: 
 (a)    the Company’s outstanding Voting Stock is reclassified, consolidated,
exchanged, or changed for other Voting Stock of the Company or for Voting Stock of the surviving corporation, and 

(b)    the holders of the Company’s Voting Stock immediately before that transaction own, directly or
indirectly, not less than a majority of the Company’s Voting Stock or the Voting Stock of the surviving parent corporation immediately after such transaction and in substantially the same proportion as their ownership in the Company before the
transaction. 
 “Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade
Rating Event. 
 “Fitch” means Fitch Ratings, Inc. and its successors. 

“Investment Grade” means a rating of BBB- or better by Fitch (or its equivalent under any
successor rating category of Fitch); a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating category of Moody’s); and a rating of BBB- or better by S&P (or its
equivalent under any successor rating category of S&P). 
 “Moody’s” means Moody’s Investors Service, Inc., a
subsidiary of Moody’s Corporation, and its successors. 
 “Rating Agency” means (1) each of Fitch, Moody’s, and
S&P, and (2) if any of Fitch, Moody’s, or S&P ceases to rate the Securities or fails to make a rating of the Securities publicly available for reasons outside of the Company’s control, a “nationally recognized statistical
rating organization” as defined in Section 3(a)(62) of the Exchange Act, selected by the Company (as certified by a resolution of the Company’s board of directors) as a replacement agency for Fitch, Moody’s, or S&P, or all of
them, as the case may be. 
 “S&P” means S&P Global Ratings, a division of S&P Global Inc., and its successors. 

“Voting Stock” of any specified person as of any date means the capital stock of such person that is at the time entitled to vote
generally in the election of the board of directors of such person. 
 Supplemental Indentures 

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in
aggregate principal amount of the Securities at the time outstanding of all series to be affected (voting as one class), evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the holders of the Securities of each such series; provided, however, 

  
 5 

 
that no such supplemental indenture shall (i) extend the stated maturity of any Security, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of any
interest thereon, or reduce any amount payable on redemption thereof or impair or affect the right of any holder of Securities to institute suit for payment thereof or right of repayment, if any, at the option of a holder of the Securities, without
the consent of the holder of each Security so affected, or (ii) reduce the percentage of aggregate principal amount of Securities of any series or of all series (voting as one class), as the case may be, the holders of which are required to
consent to any such supplemental indenture, without the consent of the holders of all outstanding Securities of each such series so affected. 

Denominations 
 The Securities are
in registered form without coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
 Exchange 

This Global Security shall be exchangeable for Securities registered in the names of persons other than the Depositary for such Global Security
or its nominee only as provided in this paragraph. This Global Security shall be so exchangeable if (x) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Global Security or if at any time such
Depositary ceases to be a clearing agency registered as such under the Exchange Act, and the Company fails to appoint a successor Depositary for this Global Security within 90 days after the Company receives such notice or becomes aware of such
event, (y) the Company executes and delivers to the Trustee written instructions that this Global Security shall be so exchangeable, or (z) there shall have occurred and be continuing an Event of Default or an event which, with the giving
of notice or lapse of time, or both, would constitute an Event of Default with respect to the Securities. Securities so issued in exchange for this Global Security shall be of the same series and of like tenor, in authorized denominations and in the
aggregate having the same principal amount as this Global Security and registered in such names as the Depositary for such Global Security shall direct. 

Transfer 
 As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security register or registers of the Company, upon surrender of this Security for registration of transfer at the office or agency
of the Company in any place where the principal of and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security registrar, duly executed by the
registered holder hereof or its attorney duly authorized in writing, and thereupon on or more new Securities, and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or
transferees. At the date of the Indenture, such agency of the Company is located at the office of Wells Fargo Bank, National Association, at 600 South 4th Street, 6th Floor, Minneapolis, MN 55415. 

No service charge shall be made for any such exchange or registration of transfer, but the Company or the Securities registrar may require
payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of
this Security for registration of transfer, the Company, the Trustee, and any agent of the Company or the Trustee may treat the person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. All payments made to or upon the order of such registered holder shall, to the extent of the sum or sums paid, effectually satisfy and
discharge liability for moneys payable on this Security. 
 Miscellaneous 

The Securities are not subject to any sinking fund. 

The Indenture contains provisions for defeasance of the entire indebtedness of the Securities upon compliance by the Company with certain
conditions set forth therein. 
 If an Event of Default with respect to the Securities shall occur and be continuing, the principal of the
Securities may be declared due and payable in the manner and with the effect provided in the Indenture. 
 All terms used in this Security
that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 The Indenture and the Securities shall be
governed by and construed in accordance with the laws of the State of Texas. 

  
 6 

 Option of Holder to Elect Purchase 

If you want to elect to have this Security purchased by the Company pursuant to the Change of Control Offer of the Indenture, check the box
below: 
  

	
	 ☐  Yes

 If you want to elect to have only part of the Security purchased by the Company pursuant to Change of Control
Offer of the Indenture, state the amount you elect to have purchased (in minimum denominations of $2,000 and integral multiples thereof of $1,000, except if you have elected to have all of your Securities purchased): $ 

 

			
	Date:	 	Your Signature:
		 	(Sign exactly as your name appears on the Security)
		 	Tax Identification No.:

  

	
	Signature Guarantee*

  

	*	 NOTICE: The Signature must be guaranteed by an institution which is a member of one of the following recognized
signature Guarantee Programs: (i) the Securities Transfer Agents Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Signature Program (MSP); (iii) the Stock Exchanges Medallion Program (SEMP); or (iv) such other
guarantee program acceptable to the Trustee. 

  
 7Exhibit

CONFIDENTENTIAL CONSULTING AGREEMENT AND RELEASE
This Confidential Consulting Agreement and Release (the “Agreement”) is entered into between William Buzogany (“Buzogany”) and Power Solutions International, Inc. (the “Company”) (collectively, the “Parties”).  This Agreement will be effective upon expiration of the revocation period provided in Section 11 of this Agreement (the “Effective Date”). 
RECITALS
WHEREAS, Buzogany currently serves as the Company’s Vice President of Human Resources and General Counsel and has been employed with the Company since February 15, 2014;
WHEREAS, Buzogany and the Company entered into an Employment Agreement (the “Employment Agreement”) dated and effective on September 15, 2017;
WHEREAS, the Parties have mutually agreed that it is in the best interests of the Parties to terminate the Employment Agreement and move Buzogany into a consulting role with the Company (the “Consultancy”) under the terms and conditions stated herein;  
WHEREAS, Buzogany and PSI desire to enter into this Agreement to (a) provide Buzogany with the benefits described below in recognition of his contribution and service to the Company, (b) provide for Buzogany’s cooperation as needed with respect to the transition of his current responsibilities, and (c) avoid any disputes between them relating to or arising from Buzogany’s employment by the Company or his termination of employment. 
NOW, THEREFORE, in consideration of the promises and mutual agreements set forth in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
AGREEMENT
		
	1.
	Resignation of Employment.  Buzogany agrees to resign his employment with Company, effective July 17, 2019 (the “Effective Date”).  Buzogany’s resignation will be announced in a statement prepared by the Company as mutually agreed with Buzogany over its content; however, the Company will apply the requirements of Regulation S-K in its reasonable judgment, as applicable.  The Company will continue to employ Buzogany and will continue to provide Buzogany with all compensation and benefits set forth in Section 4 of his Employment Agreement effective September 15, 2017 (“Employment Agreement”) through the Effective Date.  On or before the next regularly scheduled pay period following the Effective Date, Buzogany will receive payment for any unpaid final wages for time worked through and including the Effective Date.  As of the Effective Date, all unvested stock awards, if any, will be cancelled.  Except as set forth herein, all compensation and employee benefits will terminate on the Effective Date.  Except as specifically provided in this Section 1 and with respect to Termination Benefits in Section 2, Buzogany acknowledges and agrees he is not entitled to any other payment, benefits, or consideration arising from his employment with the Company. 

2.Separation Benefits.
A.The Company will pay Buzogany severance pay in the total amount of $189,000 less applicable withholdings in 12 equal monthly installments of $15,750 payable on the first day of each month beginning on July 17, 2019.  The payment will not be considered compensation for retirement or other compensation plan purposes.

B.If Buzogany timely elects COBRA health insurance continuation coverage, the Company will pay a proportional share of the premiums owed by Buzogany as if Buzogany were still employed by the Company for a period of 12 months.  Buzogany will be responsible for submitting all notices and forms required to elect COBRA. 
C.The Company will take necessary steps to transfer the cell phone number currently assigned to Buzogany from the Company’s account to Buzogany’s account, and Buzogany shall assume responsibility for charges incurred through use of that number.
Buzogany acknowledges and agrees that he is responsible for all tax liability, if any, arising from the Separation Benefits provided in Section 2. 
		
	3.
	Indemnification.  The Company agrees that the Indemnification Agreement between Buzogany and the Company dated October 26, 2016 and any duly executed amendments thereto (“Indemnification Agreement”) remains in full force and effect. A true and accurate copy of the Indemnification Agreement is attached hereto as Exhibit A and is fully incorporated by reference.

4.Expenses.  Buzogany agrees to disclose any amounts PSI paid for airline tickets or credits that remain unused no later than July 1, 2019.  Buzogany shall submit documentation for any outstanding Business Expenses incurred under Section 4(e) of the Employment Agreement no later than July 12, 2019.  For the avoidance of doubt, nothing in this Section 7 is intended to interfere with or affect the Parties’ respective rights and obligations under the Indemnification Agreement.
5.Release.  In exchange for the consideration specified in this Agreement, except for claims specifically exempted from the terms of this Release under the Agreement, Buzogany, on behalf of himself and his heirs, legatees, personal representatives and assigns, releases and discharges the Company, the Company affilliates, and each of their respective officers, directors, members, managers, partners and shareholders from any and all claims and causes of action, whether known or unknown, that Buzogany has, had or may have against them, related in any way to his employment with the Company or separation of employment, including any and all claims under the Employment Agreement.  This Release specifically includes, but is in no way limited to, (i) all claims arising from or relating in any way to Buzogany’s employment with the Company or his termination of employment with the Company; (ii) all claims under Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, 42 U.S.C. §§ 2000e et seq.; the Civil Rights Acts of 1866 and 1871 as amended, 42 U.S.C. § 1981; the Age Discrimination in Employment Act of 1967 as amended, 29 U.S.C. §§ 621 et. seq.; the Americans With Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq., as amended; the Equal Pay Act, 29 U.S.C. § 29 U.S.C. § 206(d); the Family and Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq., as amended; the Employee Retirement Income Security Act of 1973 as amended, 29 U.S.C. §§ 1001 et seq.; the Occupational Safety and Health Act of 1970 as amended, 29 U.S.C. §§ 651 et seq.; the Illinois Human Rights Act, 765 ILCS 5/1-101 et seq., the Illinois Whistleblower Act, 740 ILCS 174/1 et seq., or any provision of Chapter 820 of the Illinois Compiled Statutes; and (iv) any other claims or causes of action that Buzogany has, had, or may have had under any federal, state, or local statute, regulation, ordinance, or the common law. Buzogany waives any right to receive any monetary or other benefit because of any charge, claim, lawsuit, or administrative proceeding based upon any claim released in this Agreement.  This Release does not apply to claims for workers’ compensation benefits or other claims that cannot be released under applicable law.  For avoidance of doubt, this Release shall not act to preclude Buzogany from asserting any rights or claims as a Shareholder of the Company and shall not release any claims or modify any rights available to Buzogany under the Indemnification Agreement.  Nothing in this Agreement limits Buzogany’s ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state, or local government agency or commission (“Government Agencies”), but Buzogany waives his right to recover damages from PSI should any agency or other third party pursue 

a claim on his behalf; provided, however, that nothing in this Section 5 or Agreement limits Buzogany’s right to receive or fully retain a monetary award from a government administered whistleblower award program for providing information directly to a Government Agency. Buzogany further understands that this Agreement does not limit his ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency.  Nothing in this Agreement is intended to prevent, impede, or interfere with Buzogany providing testimony and information during an investigation authorized by law and conducted by any Government Agencies.  
6.Consultancy.  The Consultancy shall begin on the Effective Date and last until terminated (“Consulting Period”) under the terms set forth in this Section 6: 
A.Consulting Services.  During the Consulting Period, Buzogany will provide services to the Company as a consultant to assist in the transition of his current responsibilities with the Company or as reasonably directed with regard to legal and human resources matters (the “Consulting Services”).  Buzogany’s duties and responsibilities as a consultant will be defined and communicated to Buzogany by the Company’s CEO and will be consistent with Buzogany’s duties and responsibilities in his current roles.
B.Termination of Consulting Period. 
(1)Either party may terminate the Consulting Period for any reason at any time by giving 30 calendar days prior written notice of such termination to the other party. 
(2)The Consulting Period shall terminate immediately if the Company determines, in its sole and reasonable discretion, that Buzogany is unable to perform Consulting Services due to death or physical or mental incapacity, and Buzogany shall not be entitled to any consulting fee, severance, reimbursements, or other benefits except for pro rata amounts earned or accrued prior to his last day providing Consulting Services.
(3)If the Company elects to terminate the Consulting Period, except due to Buzogany’s death or disability under Section 6.B.2., the Company shall pay Buzogany 6 equal monthly installments of $27,250 payable on the first day of each month beginning after the Company’s termination of such Consultancy (the “Severance Period”) so long as he first executes and returns to the Company a general release agreement in a form mutually agreed between the Parties. 
C.Consulting Fee and Benefits.  
(1)In consideration for Buzogany’s Consulting Services under this Agreement, the Company will pay Buzogany a consulting fee of $27,250 per month paid on the first day of the first month following the Effective Date and ending upon the termination of the Consulting Period.  This monthly consulting fee assumes that Buzogany dedicates his work efforts on a full-time basis to the Company, consistent with past practices.  To the extent that Buzogany dedicates his work efforts on less than a full-time basis, Buzogany and the Company agree to mutually determine a reasonable pro rata monthly fee amount to account for such less-than full-time schedule.  As an independent contractor, Buzogany acknowledges and agrees that he is responsible for all withholding taxes, insurance, and compliance reporting to Government Agencies for compensation paid to Buzogany. 
(2)Buzogany agrees to use best efforts to spend any amounts PSI paid for airline tickets or credits that remain unused prior to the Effective Date toward performing work for the Consultancy.  The Company will reimburse Buzogany for reasonable expenses incurred by him in the course of performing his duties and responsibilities during the Consulting Period, consistent with the Company policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s reasonable requirements, including submission of an expense report on a monthly basis, with respect to reporting and documentation of such expenses. 

(3)The Company will make office space available for Buzogany to work on-site at PSI as necessary during the Consulting Period, along with necessary administrative support services, business systems, telephone use, email and other accommodations.  
D.Return of Company Materials.  Upon termination of the Consulting Period, Buzogany will cease acting as a consultant for the Company and will cooperate with the Company regarding the return of any Company property and confidential records and information.
E.Independent Contractor.  In providing Consulting Services to the Company, Buzogany will act as an independent contractor and not an employee, agent, servant, joint venture, or partner of the Company.  Buzogany shall not be entitled to any of the benefits available to the employees of the Company, except as set forth in this Agreement.  Payments and benefits paid to Buzogany under this Agreement during the Consulting Period and Severance Period shall not be subject to federal, state, or local income or employment tax withholding by the Company and will be reported by the Company on Internal Revenue Service Form 1099.  Buzogany will be responsible for reporting income and paying all applicable income and self-employment taxes relative to any payment or benefit under this Agreement.  Any liability insurance purchased or held by the Company shall also cover Buzogany in his capacity as an independent contractor. 
F.Cooperation.  During the Severance Period and at any time after the Consulting Period terminates, Buzogany agrees, in his sole discretion, to continue to make himself reasonably available to assist with pending or future legal matters with which he may have knowledge as requested by the CEO.  The Company agrees to reimburse him for time incurred on such assistance at the rate of $250 per hour plus reasonable expenses incurred by him in the course of performing his duties and responsibilities.  Buzogany agrees that he will be responsible for any and all tax liability, if any, arising from the payments received under this Section 6.F.  The scope and timing of such assistance, if any, shall be mutually agreed upon in advance by Buzogany and the Company to the extent practicable.  This provision is intended to modify Section 8(b) of the Employment Agreement to remove the 18-month time limitation and to specify the per diem rate to be paid Buzogany.  For the avoidance of doubt, this Agreement (i) shall not infringe or prevent Buzogany in any way from asserting his rights under the Fifth Amendment to the Constitution of the United States and (ii) shall not require Buzogany to cooperate in a manner adverse to his own interests in any governmental investigation.  To the extent that the Company seeks Buzogany’s cooperation relating to a matter in which Buzogany is represented by counsel, the Company shall work directly with Buzogany’s counsel regarding the Company’s request for Buzogany’s assistance.  The Company agrees to provide reasonable assistance and cooperation with Buzogany’s requests for information in connection with any legal proceeding, audit, or governmental investigation relating to matters within the scope of Buzogany’s employment by the Company.  Buzogany understands that nothing in this Agreement prevents or is intended to prevent or discourage him from speaking to or cooperating with the government in any ongoing or future investigations.
7.Post-Employment Covenants.  In exchange for the payments provided in Section 2, Buzogany agrees that the non-compete agreement set forth in Section 6(b) of the Employment Agreement will be enforceable until the two (2) year anniversary of the Effective Date.  The Company agrees that it will not enforce the non-compete described in the previous sentence to preclude Buzogany from becoming employed with or providing consulting services to Weichai America.  Except as explicitly set forth in Sections 5, 6, 7, and 8 of this Agreement, Buzogany agrees that the provisions of Sections 6, 7, and 8 of his Employment Agreement remain enforceable and are not superseded by this Agreement.  Nothing in this Section 7 or Agreement (or the Employment Agreement) is intended to restrict Buzogany in the practice of law following the Effective Date and all post-employment covenants are intended to be construed and enforced in accordance with the Illinois Supreme Court Rules of Professional Conduct.
8.Confidentiality.  The Company and Buzogany will keep the fact and terms of this Agreement confidential and will not discuss or disclose these matters with or to any third person other than the Parties’ attorneys and tax or financial advisors, except as required by law, including Regulation S-K, in the Company’s 

reasonable judgment.  Buzogany and the Company will advise any such person to whom such information is disclosed that the information is confidential and may not be disclosed except as provided herein.  This Section does not preclude the Company or Buzogany from disclosing information about this Agreement (i) to any government agencies conducting the ongoing investigations, in a manner consistent with the confidential document productions to the agencies, or (ii) to a court or government agency as part of a legal proceeding or investigation, provided that any such disclosure, submission, or filing under part (ii) of this sentence is made under seal and on a confidential basis to the maximum extent allowed by law.
9.Non-Disparagement.  Except as provided in the next sentence, Buzogany and the Company each agree that they will not make any statement at any time, in the present or future, to any person or entity which is disparaging of the individual, business, reputation, competence or good character of the other party or which, if publicized, would cause the other party humiliation or embarrassment, or would cause the public to question the other party’s integrity, competence or good character.  For the avoidance of doubt, nothing in this Agreement in any way precludes or interferes with, or is intended to preclude or interfere with, Buzogany or the Company or their agents from providing truthful testimony or information as part of a legal proceeding or investigation, or making any truthful statements to any government enforcement or regulatory agency.
10.Knowing and Voluntary Waiver of Age Claims.  Buzogany acknowledges that:
A.He has been given a period of at least 21 days after being presented with this Agreement in which to consider whether to sign it, and has an adequate opportunity to review this Agreement and obtain any legal advice necessary to fully understand its terms;
B.The consideration he will receive under this Agreement is in addition to anything of value to which he is otherwise entitled to receive from the Company under applicable law; 
C.He has read and understands this Agreement; 
D.He is waiving any and all claims against the Company under the Age Discrimination in Employment Act arising up to the date on which he signs this Agreement; and
E.He has been advised that he may consult with an attorney of his choice before executing this Agreement.
11.Revocation.  Buzogany may revoke this Agreement within 7 calendar days after signing it.  The revocation will be effective only if written notice is received by the Company before the 8th calendar day after Buzogany signs this Agreement.  The Company’s obligations under this Agreement will not take effect until the time for Buzogany to revoke this Agreement has expired and Buzogany has not revoked the Agreement.  
12.Notice.  Any notice provided for in this Agreement must be in writing and sent to the recipients at the address indicated below:
If to Buzogany:    William Buzogany
At the address on file with the Company
If to the Company:    Power Solutions International, Inc.
201 Mittel Drive
Wood Dale, Il  60191
Attn: John Miller
JMiller@psiengines.com
or such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party.  Any notice under this Agreement shall be deemed to have been duly given or made as follows:  (a) if sent by registered or certified mail in the United States, return receipt 

requested, upon actual receipt; (b) if sent by reputable overnight air courier (such as DHL or Federal Express), two business days after being so sent; or (c) if by electronic mail or otherwise actually personally delivered, when so delivered.  
13.Taxes and Deductions.  All payments provided for in this Agreement will be subject to payroll tax withholding and deductions to the extent required by law.  Each party will report, as may be required by law for income tax purposes, its respective payment and receipt of the payments provided for in this Agreement and will bear its respective tax liabilities, if any, arising from this Agreement.  
14.No Admission of Wrongdoing.  Nothing in this Agreement constitutes an implication or admission of wrongdoing by Buzogany or the Company. 
15.Section 409A.  
A.The intent of the Parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Section 409A”) including the exceptions thereto and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith, and any payments hereunder shall be made upon an event and in a manner that complies with Section 409A or an applicable exemption.  Any payments under this Agreement that may be excluded from Section 409A either as termination pay due to an involuntary termination from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible.  For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment.  Any payments to be made under this Agreement in connection with a termination of employment shall only be made if such termination of employment constitutes a “separation from service” under Section 409A.  The Company shall be entitled to amend this Agreement to comply and/or clarify a payment’s compliance with Section 409A (or an exemption therefrom), provided, however, to the extent that any provision hereof is modified, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Executive and the Company of the applicable provision without violating the provisions of Section 409A.  Notwithstanding anything in the Agreement to the contrary, in no event whatsoever shall the Company be liable for any tax, interest or penalty that may be imposed on Buzogany under Section 409A or any damages for failing to comply with Section 409A.  
B.Notwithstanding anything in this Agreement to the contrary, if any payment or benefit provided to Buzogany in connection with his retirement and termination of employment is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A and Buzogany is determined to be a “specified employee” as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Effective Date or, if earlier, on Buzogany’s death (the “Specified Employee Payment Date”).  The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid (without interest) to Buzogany in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.  
C.To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following:  (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (ii) any reimbursement of an eligible expense shall be paid to Buzogany on or before the last day of the calendar year following the calendar year in which the expense was incurred; and (iii) any 

right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.  
16.Entire Agreement.  This Agreement sets forth the entire agreement of the Parties and supersedes all prior and contemporaneous agreements and understandings between the Parties, including but not limited to the Employment Agreement, except as otherwise explicitly stated herein.  
17.Choice of Law.  This Agreement is to be construed in accordance with the laws of the State of Illinois, without regard to conflict of law principles.  
18.Modification of this Agreement.  This Agreement may not be amended or modified except in a writing signed by the Party against whom the amendment or modification is to be enforced.
19.Execution in Counterparts.  This Agreement may be signed in counterparts, which together will form the original.
Severability.  Nothing in this Agreement is to be construed as waiving rights that cannot be waived under applicable law, or as barring either Party from providing information or truthful testimony when required to do so under applicable law.  Should any portion of this Agreement be ruled unenforceable by a court of competent jurisdiction, the remainder of this Agreement and the releases and covenant not to sue contained herein will remain in full force and effect as to any and all other claims.

Accepted and Agreed To By:

	
		
	William Buzogany

      /s/ William Buzogany_____

Date:_    July 10,2019________
	POWER SOLUTIONS INTERNATIONAL, INC.

By:____      /s/ John A. Miller___________

Title:____Chief Executive Officer________

Date:________July 10, 2019____________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00308-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00308-of-00352.parquet"}]]