On December 30, 2013, Powell Industries, Inc. entered into the Amended and Restated Powell Supply Agreement with General Electric Company (GE), which amended and restated that certain Powell Supply Agreement, dated as of August 7, 2006, by and between the Company and GE. Under the Original Powell Supply Agreement, GE agreed to purchase from the Company, subject to certain conditions and exceptions, all of GE's requirements for medium voltage switchgear and circuit breakers and other related equipment and components for a term of fifteen years, with successive three-year renewals unless otherwise determined by either party. The Restated Powell Supply Agreement, among other things, (i) terminates the Products purchase requirements under the Original Powell Agreement and (ii) provides that GE will not be required to purchase the Products from the Company and may purchase the Products from third parties or produce similar products and resell, or sell, such similar products.

Notwithstanding the foregoing, the Restated Powell Supply Agreement provides that, during the period from January 1, 2014 through December 31, 2014, to the extent GE does not itself manufacture similar products to the Products, GE will purchase all of its requirements for the Products (other than arc-resistant switchgear) from the Company, subject to certain conditions and exceptions. Unless terminated earlier, the Restated Powell Supply Agreement has a term of four years from January 1, 2014. Immediately upon the effectiveness of the Restated Powell Supply Agreement, the Company assigned its rights and obligations thereunder to Powell Electrical Systems, Inc. In connection with the Restated Powell Supply Agreement, the Company and GE agreed to terminate another supply agreement, dated as of August 7, 2006 whereby the Company was required to purchase, subject to certain conditions and exceptions, its requirements for various components from GE; however, pursuant to the Restated Powell Supply Agreement, the Company and GE have agreed to consider a new GE supply agreement within ninety days of January 1, 2014.

In consideration for the Company's agreement to enter into the Restated Powell Supply Agreement and to terminate the GE Supply Agreement, GE agreed to make certain cash payments to the Company.