Ballard Power Systems announced that it has given termination notice on two licensing agreements in the China market as a result of material breaches of these agreements by Azure Hydrogen. The first license agreement, originally announced on September 26, 2013, is related to the assembly of Ballard's FCvelocity-HD7 Bus power modules in China for the Chinese market. The second license agreement, announced on June 19, 2014, is related to the assembly of Ballard's ElectraGen(TM)Telecom Backup Power systems in China for the Chinese market.

As a result of Azure's breaches under both contracts, and notwithstanding Ballard's good faith efforts to reach a settlement, the company has provided notice of termination of both contracts and will consider its legal remedies.