POWER SOLUTIONS INTERNATIONAL, INC. SAR AND BONUS AGREEMENT

Exhibit 10.1

POWER SOLUTIONS INTERNATIONAL, INC.

SAR AND BONUS AGREEMENT

This SAR AND BONUS AGREEMENT (this “Agreement”), dated as of July 6, 2015, is by and between Power Solutions International, Inc., a Delaware corporation (the “Company”), and Eric A. Cohen (the “Grantee”).

WHEREAS, the Company and Grantee are parties to an Executive Employment Agreement dated as of June 6, 2012 by and among Grantee, the Company and Power Great Lakes, Inc. (the “Employment Agreement”);

WHEREAS, pursuant to the Employment Agreement the Company previously granted Grantee a Stock Appreciation Right under the Power Solutions International, Inc. 2012 Incentive Compensation Plan (the “Plan”) covering 543,872 shares of the Company’s common stock (the “SAR”), and the terms and conditions of the SAR are set forth in a Stock Appreciation Rights Agreement dated as of June 6, 2012, as amended by a First Amendment dated as of June 5, 2015 (the “SAR Agreement”); and

WHEREAS, the Company and Grantee now desire to extend the vesting schedule applicable to the remaining unvested portion of the SAR and to enter into other compensation arrangements.

NOW THEREFORE, in consideration of the foregoing, as well as all other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Company and Grantee hereby agree as follows:

1. Amendment to SAR Agreement. The SAR Agreement is hereby amended as follows:

If Grantee’s Termination of Service is a result of Grantee’s death or Disability, the SAR may be exercised for a period of one year from the date of such Termination of Service (but not beyond the original Term). If Grantee’s Termination of Service is a result of the Company’s termination of employment for other than Cause or Grantee’s termination for Good Reason, the SAR may be exercised for a period of 30 days from the date of such Termination of Service (but not beyond the original Term).

All other terms and conditions contained in the SAR Agreement not changed, amended or modified pursuant to this Agreement shall remain unchanged and in full force and effect. In the event of an inconsistency between this Agreement and the SAR Agreement, this Agreement shall govern. All other capitalized terms used herein but not defined shall have the meanings assigned to them in the Plan.

2

2. Bonus Consideration.

3. Stock Retention & Holding Requirements. The parties acknowledge and agree that the Company will implement a stock retention and holding policy (“Stock Retention Policy”) which will require directors and officers of the Company to own a certain amount of Company stock and hold stock acquired pursuant to Awards under the Plan for a specified period of time, and will prohibit sales in excess of a certain amount without the approval of the Company’s Compensation Committee. Grantee agrees that he will fully comply with the Stock Retention Policy. Grantee further agrees that while employed by Company and until the earlier of June 6, 2017 or the effective date of the Stock Retention Policy, neither he nor any family member will sell more than $750,000 of any vested SAR Shares within a six-month period without the written consent of the Company’s Compensation Committee.

4. Amendment of Employment Agreement. Grantee, the Company and Power Great Lakes, Inc. agree that for purposes of the SAR Agreement and the Annual Bonus consideration, the definition of “Cause” as set forth in the Employment Agreement shall exclude the reference to Grantee’s disability.

[Signature page follows]

3

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date, month and year first written above.

4