Exhibit 10.2

Execution Version

WOODWARD, INC.

AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENT

As of October 1, 2013

To the Noteholders (as defined below):

Ladies and Gentlemen:

Woodward, Inc. (formerly known as Woodward Governor Company) (hereinafter,
together with its successors and assigns, the “Company”) agrees with you as
follows:

 

1. PRELIMINARY STATEMENTS.

 

  1.1. Note Issuances, etc.

Pursuant to that certain Note Purchase Agreement dated October 1, 2008 (as in
effect immediately prior to giving effect to the Amendments (as defined below)
provided for hereby, the “Existing Note Purchase Agreement”, and as amended by
this Amendment Agreement (as defined below) and as may be further amended,
restated or otherwise modified from time to time, the “Note Purchase Agreement”)
the Company issued and sold (a) One Hundred Million Dollars ($100,000,000) in
aggregate principal amount of its Series B Senior Notes due October 1, 2013 (the
“Existing Series B Notes”, and the Existing Series B Notes, as amended pursuant
to this Amendment Agreement and as may be further amended, restated, modified or
replaced from time to time, together with any such notes issued in substitution
therefor pursuant to Section 13 of the Note Purchase Agreement, the “Series B
Notes”), (b) Fifty Million Dollars ($50,000,000) in aggregate principal amount
of its Series C Senior Notes due October 1, 2015 (the “Existing Series C Notes”,
and the Existing Series C Notes, as amended pursuant to this Amendment Agreement
and as may be further amended, restated, modified or replaced from time to time,
together with any such notes issued in substitution therefor pursuant to
Section 13 of the Note Purchase Agreement, the “Series C Notes”) and (c) One
Hundred Million Dollars ($100,000,000) in aggregate principal amount of its
Series D Senior Notes due October 1, 2018 (the “Existing Series D Notes” and
together with the Existing Series B Notes and the Existing Series C Notes,
collectively, the “Existing Notes”, and the Existing Series D Notes, as amended
pursuant to this Amendment Agreement and as may be further amended, restated,
modified or replaced from time to time, together with any such notes issued in
substitution therefor pursuant to Section 13 of the Note Purchase Agreement, the
“Series D Notes”, and the Series D Notes, together with the Series B Notes and
Series C Notes, collectively, the “Notes”). The register for the registration
and transfer of the Notes indicates that the parties named in Annex 1 (the
“Noteholders”) to this Amendment No. 1 to Note Purchase Agreement (the
“Amendment Agreement”) are currently the holders of the entire outstanding
principal amount of the Notes.

 

2. DEFINED TERMS.

Capitalized terms used herein and not otherwise defined herein have the meanings
ascribed to them in the Existing Note Purchase Agreement.

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3. AMENDMENTS.

The Company agrees and, subject to the satisfaction of the conditions set forth
in Section 6 of this Amendment Agreement, the Required Holders agree to the
amendment of certain provisions of the Existing Note Purchase Agreement as
provided for by Section 4 of this Amendment Agreement (collectively, the
“Amendments”).

 

4. AMENDMENTS TO THE EXISTING NOTE PURCHASE AGREEMENT.

The Existing Note Purchase Agreement is hereby and shall be amended in the
manner specified in Exhibit A to this Amendment Agreement.

 

5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

To induce you to enter into this Amendment Agreement and to consent to the
Amendments, the Company represents and warrants as follows:

5.1. Reaffirmation of Representations and Warranties.

All of the representations and warranties contained in Section 5 of the Existing
Note Purchase Agreement are correct with the same force and effect as if made by
the Company on the date hereof except to the extent (a) that any of such
representations and warranties relate by their terms to a prior date,
(b) otherwise disclosed in the periodic and current reports filed by the Company
with the Securities and Exchange Commission since the Closing or set forth in
the Offering Memorandum relating to the 2013 Note Purchase Agreement (as defined
below), a copy of which has been delivered to the Noteholders or (c) set forth
on Schedule 5.1 attached hereto.

5.2. Organization, Power and Authority, etc.

The Company has all requisite corporate power and authority to enter into and
perform its obligations under this Amendment Agreement and the Notes.

5.3. Legal Validity.

The execution and delivery of this Amendment Agreement and the Notes by the
Company and compliance by the Company with its obligations hereunder and under
the Note Purchase Agreement and the Notes: (a) are within the corporate powers
of the Company; and (b) do not violate or result in any breach of, constitute a
default under, or result in the creation of any Lien upon any property of the
Company under the provisions of: (i) its charter documents; (ii) any order,
judgment, decree or ruling of any court, arbitrator or Governmental Authority
applicable to either the Company or its property; or (iii) any agreement or
instrument to which the Company is a party or by which the Company or any of its
property may be bound or any statute or other rule or regulation of any
Governmental Authority applicable to the Company or its property.

Each of this Amendment Agreement and each of the Notes has been duly authorized
by all necessary action on the part of the Company, has been executed and
delivered by a duly authorized officer of the Company, and constitutes a legal,
valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, reorganization, arrangement, insolvency, moratorium, or
other similar laws affecting the enforceability of creditors’ rights generally
and subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

 

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5.4. No Defaults.

No event has occurred and no condition exists that: (a) would constitute a
Default or an Event of Default or (b) could reasonably be expected to have a
Material Adverse Effect.

5.5. Disclosure.

This Amendment Agreement and the documents, certificates or other writings
delivered to the Noteholders by or on behalf of the Company in connection
therewith, taken as a whole, do not contain any untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein
not misleading in light of the circumstances under which they were made. There
is no fact known to the Company that could reasonably be expected to have a
Material Adverse Effect that has not been set forth herein or in the other
documents, certificates and other writings delivered to the Noteholders by or on
behalf of the Company specifically for use in connection with the transactions
contemplated by the this Amendment Agreement.

 

6. EFFECTIVENESS OF AMENDMENTS.

The Amendments shall become effective only upon the date of the satisfaction in
full of the following conditions precedent:

6.1. Execution and Delivery of this Amendment Agreement.

The Company and the Required Holders shall have executed and delivered this
Amendment Agreement.

6.2. Execution and Delivery of Guarantor Acknowledgement.

Each Guarantor shall have executed and delivered a Guarantor Acknowledgement in
the form of Exhibit B to this Amendment Agreement.

6.3. Execution and Delivery of Replacement Notes.

The Company shall have executed and delivered replacement Notes to any
Noteholder requesting the same.

6.4. Representations and Warranties True.

The representations and warranties set forth in Section 5 shall be true and
correct on such date in all respects.

6.5. Authorization.

The Company shall have authorized, by all necessary action, the execution,
delivery and performance of all documents, agreements and certificates in
connection with this Amendment Agreement.

6.6. 2013 Note Purchase Agreement.

Each of the Noteholders shall have received, on or before the date hereof, a
fully executed copy of the Note Purchase Agreement (the “2013 Note Purchase
Agreement”), dated as of October 1, 2013, by and among the Company and the
purchasers party thereto, in form and substance satisfactory to the Required
Holders, and the conditions to the effectiveness thereof, and all conditions to
the obligations of the purchasers party thereto to purchase the notes to be
issued thereunder shall have been satisfied or waived.

 

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6.7. Revolving Facility.

Each of the Noteholders shall have received, on or before the date hereof, a
fully executed copy of that certain Credit Agreement, dated as of July 10, 2013,
by and among the Company, as a borrower, the foreign subsidiary borrowers from
time to time parties thereto, the institutions from time to time party thereto
as lenders, and Wells Fargo Bank, National Association, as administrative agent
for itself and the other lenders party thereto.

6.8. Amendment to 2009 Note Purchase Agreement.

Each of the Noteholders shall have received, on or before the date hereof, a
fully executed copy of the Amendment No. 1 to Note Purchase Agreement dated as
of October 1, 2013, by and among the Company and the purchasers party thereto
with respect to that certain Note Purchase Agreement dated April 3, 2009, in
form and substance satisfactory to the Required Holders, and the conditions to
the effectiveness thereof, and all conditions to the obligations of the
purchasers party thereto to purchase the notes to be issued thereunder shall
have been satisfied or waived.

6.9. Special Counsel Fees.

The Company shall have paid the reasonable fees and disbursements of
Noteholders’ special counsel in accordance with Section 7 below.

6.10. Proceedings Satisfactory.

All proceedings taken in connection with this Amendment Agreement and all
documents and papers relating thereto shall be satisfactory to the Noteholders
signatory hereto and their special counsel, and such Noteholders and their
special counsel shall have received copies of such documents and papers as they
or their special counsel may reasonably request in connection herewith.

 

7. EXPENSES.

Whether or not the Amendments become effective, the Company will promptly (and
in any event within thirty (30) days of receiving any statement or invoice
therefor) pay all reasonable fees, expenses and costs of your special counsel,
Bingham McCutchen LLP, incurred in connection with the preparation, negotiation
and delivery of this Amendment Agreement, the Intercreditor Agreement and any
other documents related thereto. Nothing in this Section shall limit the
Company’s obligations pursuant to Section 15.1 of the Existing Note Purchase
Agreement.

 

8. MISCELLANEOUS.

8.1. Part of Existing Note Purchase Agreement; Future References, etc.

This Amendment Agreement shall be construed in connection with and as a part of
the Note Purchase Agreement and, except as expressly amended by this Amendment
Agreement, all terms, conditions and covenants contained in the Existing Note
Purchase Agreement and the Existing Notes are hereby ratified and shall be and
remain in full force and effect. Any and all notices, requests, certificates and
other instruments executed and delivered after the execution and delivery of
this Amendment Agreement may refer to the Note Purchase Agreement without making
specific reference to this Amendment Agreement, but nevertheless all such
references shall include this Amendment Agreement unless the context otherwise
requires.

 

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8.2. Counterparts, Facsimiles.

This Amendment Agreement may be executed in any number of counterparts, each of
which shall be an original but all of which together shall constitute one
instrument. Each counterpart may consist of a number of copies hereof, each
signed by less than all, but together signed by all, of the parties hereto.
Delivery of an executed signature page by facsimile transmission shall be
effective as delivery of a manually signed counterpart of this Amendment
Agreement.

8.3. Governing Law.

THIS AMENDMENT AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND
THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK
EXCLUDING CHOICE OF LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD PERMIT
THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

[Remainder of page intentionally left blank. Next page is signature page.]

 

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If you are in agreement with the foregoing, please so indicate by signing the
acceptance below on the accompanying counterpart of this Amendment Agreement and
returning it to the Company, whereupon it will become a binding agreement among
you and the Company.

 

WOODWARD, INC.

By:

 

/s/ Robert F. Weber, Jr.

Name:

 

Robert F. Weber, Jr.

Title:

 

Vice Chairman, Chief Financial Officer

 

and Treasurer

 

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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The foregoing Amendment Agreement is hereby accepted as of the date first above
written. By its execution below, each of the undersigned represents that it is
the owner of one or more of the Notes and is authorized to enter into this
Amendment Agreement in respect thereof.

 

METROPOLITAN LIFE INSURANCE COMPANY METLIFE INSURANCE COMPANY OF CONNECTICUT By:
  Metropolitan Life Insurance Company, its Investment Manager

METLIFE INVESTORS INSURANCE COMPANY

By:   Metropolitan Life Insurance Company, its Investment Manager By:   /s/
Judith A. Gulotta Name:   Judith A. Gulotta Title:   Managing Director

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY By:   /s/ Eve Hampton Name:   Eve
Hampton Title:   Vice President, Investments By:   /s/ Paul Runnalls Name:  
Paul Runnalls Title:   Manager, Investments

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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LONDON LIFE INSURANCE COMPANY By:   /s/ W. J. Sharman Name:   W. J. Sharman
Title:   Authorized Signatory By:   /s/ D. B. E. Ayers Name:   D. B. E. Ayers
Title:   Authorized Signatory

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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THE CANADA LIFE ASSURANCE COMPANY By:   /s/ Eve Hampton Name:   Eve Hampton
Title:   Vice President, Investments By:   /s/ Paul Runnalls Name:   Paul
Runnalls Title:   Manager, Investments

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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NEW YORK LIFE INSURANCE COMPANY By:   /s/ Loyd T. Henderson Name:   Loyd T.
Henderson Title:   Managing Director NEW YORK LIFE INSURANCE AND ANNUITY
CORPORATION By:   New York Life Investment Management LLC, Its Investment
Manager   By:   /s/ Loyd T. Henderson   Name:   Loyd T. Henderson   Title:  
Managing Director

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION INSTITUTIONALLY OWNED LIFE
INSURANCE SEPARATE ACCOUNT

(BOLI 30C)

By:   New York Life Investment Management LLC, Its Investment Manager   By:  
/s/ Loyd T. Henderson   Name:   Loyd T. Henderson   Title:   Managing Director

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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THE PRUDENTIAL INSURANCE COMPANY OF AMERICA By:   /s/ Mitchell W. Reed Name:    
Mitchell W. Reed Title:   Vice President PRUCO LIFE INSURANCE COMPANY OF NEW
JERSEY By:   /s/ Mitchell W. Reed Name:     Mitchell W. Reed Title:   Vice
President PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY By:  

Prudential Investment Management, Inc.,

as Investment Manager

  By:   /s/ Mitchell W. Reed   Name:     Mitchell W. Reed   Title:   Vice
President ZURICH AMERICAN INSURANCE COMPANY By:  

Prudential Private Placement Investors, L.P.,

as Investment Advisor

  By:  

Prudential Private Placement

Investors, Inc., as its General Partner

    By:   /s/ Mitchell W. Reed     Name:     Mitchell W. Reed     Title:   Vice
President

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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HARTFORD LIFE INSURANCE COMPANY TWIN CITY FIRE INSURANCE COMPANY HARTFORD LIFE
AND ANNUITY INSURANCE COMPANY By:  

Hartford Investment Management Company,

their Agent and Attorney-in-Fact

  By:   /s/ John R. Knox   Name:   John R. Knox   Title:   Vice President

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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ING LIFE INSURANCE AND ANNUITY COMPANY
ING USA ANNUITY AND LIFE INSURANCE COMPANY RELIASTAR LIFE INSURANCE COMPANY By:
  ING Investment Management LLC, as Agent   By:   /s/ Joshua A. Winchester  
Name:   Joshua A. Winchester   Title:   Vice President

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY MASSMUTUAL ASIA LIMITED C.M. LIFE
INSURANCE COMPANY By:   Babson Capital Management LLC   as Investment Adviser  
By:   /s/ Thomas P. Shea   Name:   Thomas P. Shea   Title:   Managing Director

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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AXA EQUITABLE LIFE INSURANCE COMPANY By:     Name:   Title:   MONY LIFE
INSURANCE COMPANY By:     Name:     Title:  

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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PRINCIPAL LIFE INSURANCE COMPANY By:   Principal Global Investors, LLC   a
Delaware limited liability company,   its authorized signatory   By:   /s/
Adrienne L. McFarland   Name:     Adrienne L. McFarland   Title:   Counsel   By:
  /s/ James C. Fifield   Name:   James C. Fifield   Title:   Assistant General
Counsel

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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AMERICAN UNITED LIFE INSURANCE COMPANY By:   /s/ Michael I. Bullock Name:  
Michael I. Bullock Title:   VP, Private Placements THE STATE LIFE INSURANCE
COMPANY By:  

American United Life Insurance Company,

its Agent

  By:   /s/ Michael I. Bullock   Name:   Michael I. Bullock   Title:   VP,
Private Placements

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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PHOENIX LIFE INSURANCE COMPANY

By:   /s/ Nelson Correa Name:   Nelson Correa Title:   Senior Managing Director,
Private Placements PHL VARIABLE INSURANCE COMPANY By:   /s/ Nelson Correa Name:
  Nelson Correa Title:   Its Duly Authorized Officer

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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UNITED OF OMAHA LIFE INSURANCE COMPANY By:   /s/ Justin P. Kavan Name:   Justin
P. Kavan Title:   Vice President

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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MODERN WOODMEN OF AMERICA By:  

/s/ Douglas A. Pannier

Name:   Douglas A. Pannier Title:   Group Head – Private Placements

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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AMERITAS LIFE INSURANCE CORP. THE UNION CENTRAL LIFE INSURANCE COMPANY By:  
Ameritas Investment Partners, as Agent   By:   /s/ James Mikus    

 

  Name:   James Mikus   Title:   President and CEO

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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NATIONAL GUARDIAN LIFE INSURANCE COMPANY By:   /s/ R.A. Mucci  

 

Name:   R.A. Mucci Title:   Senior Vice President & Treasurer

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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THE OHIO NATIONAL LIFE INSURANCE COMPANY By:   /s/ Annette M. Teders  

 

Name:   Annette M. Teders Title:   Vice President

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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STATE FARM LIFE INSURANCE COMPANY By:   /s/ June Hoyer  

 

Name:   June Hoyer Title:   Senior Investment Officer By:   /s/ Christiane M.
Stoffer  

 

Name:   Christiane M. Stoffer Title:   Assistant Secretary

 

Signature Page to Amendment No. 1 to 2008 Note Purchase Agreement

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Annex 1

Noteholders

Metropolitan Life Insurance Company

MetLife Insurance Company of Connecticut

MetLife Investors Insurance Company

Great-West Life & Annuity Insurance Company

London Life Insurance Company

The Canada Life Assurance Company

New York Life Insurance Company

New York Life Insurance and Annuity Corporation

New York Life Insurance and Annuity Corporation Institutionally Owned Life
Insurance Separate Account (BOLI 30C)

The Prudential Insurance Company of America

Pruco Life Insurance Company of New Jersey

Prudential Retirement Insurance and Annuity Company

Zurich American Insurance Company

Hartford Life Insurance Company

Hartford Life and Annuity Insurance Company

Twin City Fire Insurance Company

ING Life Insurance and Annuity Company

ING USA Annuity and Life Insurance Company

Reliastar Life Insurance Company

Massachusetts Mutual Life Insurance Company

MassMutual Asia Limited

C.M. Life Insurance Company

AXA Equitable Life Insurance Company

 

Annex 1-1

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MONY Life Insurance Company

Principal Life Insurance Company

American United Life Insurance Company

The State Life Insurance Company

Phoenix Life Insurance Company

PHL Variable Insurance Company

United of Omaha Life Insurance Company

Modern Woodmen of America

Ameritas Life Insurance Corp.

The Union Central Life Insurance Company

National Guardian Life Insurance Company

The Ohio National Life Insurance Company

State Farm Life Insurance Company

 

Annex 1-2

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Schedule 5.1

[Intentionally Removed]

 

Schedule 5.1-1

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EXHIBIT A

AMENDMENTS TO EXISTING NOTE PURCHASE AGREEMENT

(a) Introductory Paragraph. The phrase “(the “Company”)” in the introductory
paragraph of the Existing Note Purchase Agreement is hereby amended and restated
to read as follows:

“(together with any successor thereto that becomes a party hereto pursuant to
Section 10.2, the “Company”)”

(b) Section 10.7 – Minimum Consolidated Net Worth. Section 10.7 of the Existing
Note Purchase Agreement is hereby amended and restated to read as follows:

“10.7 Minimum Consolidated Net Worth.

The Company will not permit its Consolidated Net Worth at any time to be less
than the sum of (a) $800,000,000 plus (b) an aggregate amount equal to 50% of
its Consolidated Net Earnings (but, in each case, only if a positive number) for
each completed fiscal year beginning with the fiscal year ending September 30,
2013.”

(c) Section 11(f) – Cross-Default. Section 11(f) of the Existing Note Purchase
Agreement is hereby amended by deleting each reference to “$25,000,000” therein
and inserting “$60,000,000” in lieu thereof.

(d) Section 11(i) – Judgment Defaults. Section 11(i) of the Existing Note
Purchase Agreement is hereby amended by deleting the reference to “$25,000,000”
therein and inserting “$60,000,000” in lieu thereof.

(e) Section 11(j) – ERISA Defaults. Section 11(j) of the Existing Note Purchase
Agreement is hereby amended by deleting the reference to “$15,000,000” therein
and inserting “$60,000,000” in lieu thereof.

(f) Section 22.3 – Accounting Terms. Section 22.3 of the Existing Note Purchase
Agreement is hereby amended and restated to read as follows:

“22.3 Accounting Terms.

(a) All accounting terms used herein which are not expressly defined in this
Agreement have the meanings respectively given to them in accordance with GAAP.
Except as otherwise specifically provided herein, (i) all computations made
pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all
financial statements shall be prepared in accordance with GAAP. For purposes of
determining compliance with this Agreement (including, without limitation,
Section 9, Section 10 and the definition of “Indebtedness”), any election by the
Company to measure any financial liability using fair value (as permitted by
Financial Accounting Standards Board Accounting Standards Codification Topic
No. 825-10-25 – Fair Value Option, International Accounting Standard 39 –
Financial Instruments: Recognition and Measurement or any similar accounting
standard) shall be disregarded and such determination shall be made as if such
election had not been made.

 

Exhibit A-1

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(b) If the Company notifies the holders of Notes that, in the Company’s
reasonable opinion, or if the Required Holders notify the Company that, in the
Required Holders’ reasonable opinion, as a result of changes in GAAP from time
to time (“Subsequent Changes”), any of the covenants contained in Sections 10.6
through 10.10, or any of the defined terms used therein no longer apply as
intended such that such covenants are materially more or less restrictive to the
Company than are such covenants immediately prior to giving effect to such
Subsequent Changes, the Company and the holders of Notes shall negotiate in good
faith to reset or amend such covenants or defined terms so as to negate such
Subsequent Changes, or to establish alternative covenants or defined terms.
Until the Company and the Required Holders so expressly agree to reset, amend or
establish alternative covenants or defined terms, the covenants contained in
Sections 10.6 through 10.10, together with the relevant defined terms, shall
continue to apply and compliance therewith shall be determined assuming that the
Subsequent Changes shall not have occurred (“Static GAAP”). During any period
that compliance with any covenants shall be determined pursuant to Static GAAP,
the Company shall include relevant reconciliations in reasonable detail between
GAAP and Static GAAP with respect to the applicable covenant compliance
calculations contained in each certificate of a Senior Financial Officer
delivered pursuant to Section 7.2(a) during such period.”

(g) Schedule B – Definition of Company. The definition of “Company” appearing in
Schedule B of the Existing Note Purchase Agreement is hereby deleted.

(h) Schedule B – Definitions of Material Acquisition Amount, Static GAAP,
Subsequent Changes and 2009 Note Purchase Agreement. The following definitions
are hereby added to Schedule B of the Existing Note Purchase Agreement in their
proper alphabetical order to read as follows:

““Material Acquisition Amount” means an amount equal to the greater of
(a) $50,000,000 and (b) the applicable dollar threshold amount for certain
permitted acquisitions necessary to increase the leverage ratio applicable to
the Company as set forth in the definition of “Leverage Ratio Increase
Requirements” in the Revolving Facility or similar threshold in any other
Revolving Facility.”

““Static GAAP” is defined in Section 22.3(b).”

““Subsequent Changes” is defined in Section 22.3(b).”

““2009 Note Purchase Agreement” means that certain Note Purchase Agreement,
dated April 3, 2009, by and among the Company and the purchasers listed in
Schedule A attached thereto, as such agreement may be further amended, restated,
supplemented, modified, refinanced, extended or replaced.”

(i) Schedule B – Definitions of EBITDA and Major Credit Facility. The
definitions of “EBITDA”, “Major Credit Facility”, “Material Acquisition Period”
and “Revolving Facility” appearing in Schedule B of the Existing Note Purchase
Agreement are hereby amended and restated to read as follows:

““EBITDA” means, for any period, on a consolidated basis for the Company and its
Subsidiaries, the sum of the amounts for such period, without duplication, of
(a) Net Income, plus (b) Interest Expense to the extent deducted in computing
Net Income, plus (c) charges against income for foreign, federal, state and
local taxes to the extent deducted in computing Net Income, plus
(d) depreciation expense to the extent deducted in computing Net Income, plus
(e) amortization expense, including, without limitation, amortization of
goodwill and other intangible assets to the extent deducted in computing Net
Income, plus (f) any unusual non-cash charges to the extent deducted in
computing Net Income, plus (g) non-cash stock based compensation paid during
such period to the extent deducted in computing Net Income, minus (h) any
unusual non-cash gains to the extent added in computing Net Income. EBITDA shall
be calculated on a pro forma basis giving effect to Material Acquisitions and
Material Asset Dispositions on a four (4) fiscal quarter basis on the assumption
that any such Material Acquisition or Material Asset Disposition shall be deemed
to have occurred on the first day of the fourth full fiscal quarter preceding
the date of determination, using historical financial statements containing
reasonable adjustments satisfactory to the Required Holders, broken down by
fiscal quarter in the Company’s reasonable judgment. As used herein, “Material
Acquisition” means one or more related Acquisitions the net consideration for
which is in excess of $20,000,000 individually or in the aggregate and “Material
Asset Disposition” means any Asset Disposition or series of Asset Dispositions
the Fair Market Value of which is equal to or greater than $20,000,000
individually or in the aggregate.”

 

Exhibit A-2

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““Major Credit Facility” means (a) the Revolving Facility, (b) the Term
Facility, (c) the Existing Note Purchase Agreement, (d) the 2009 Note Purchase
Agreement and (e) any other credit, loan or borrowing facility or note purchase
agreement by the Company or any Subsidiary providing, in each case, for the
incurrence of Senior Indebtedness in a principal amount equal to or greater than
$75,000,000, in each case under clauses (a) through (e) as amended, restated,
supplemented or otherwise modified and together with increases, refinancings and
replacements thereof.”

““Material Acquisition Period” means each period of four (4) consecutive fiscal
quarters of the Company commencing with the fiscal quarter in which one or more
of the Company and any Subsidiary has consummated (a) one or more Acquisitions
of equity interests in entities that become Subsidiaries upon such Acquisition
or (b) one or more acquisitions from an entity of a business or a brand, if the
consideration paid for such Acquisitions under clause (a) and/or (b) (including,
without limitation, Indebtedness of the new Subsidiary and, without duplication,
any Indebtedness of such entity that is assumed by any one or more of the
Company and its Subsidiaries), taken together with the aggregate consideration
(including assumed Indebtedness as aforesaid) paid for all other such
Acquisitions consummated during the immediately preceding three (3) fiscal
quarters of the Company, is equal to or greater than the Material Acquisition
Amount; provided that a new Material Acquisition Period may not be commenced
until such time as at least two (2) complete consecutive fiscal quarters have
elapsed since the expiration of the last previous Material Acquisition Period.”

““Revolving Facility” means that certain Credit Agreement, dated as of July 10,
2013, by and among the Company, as a borrower, the foreign subsidiary borrowers
from time to time parties thereto, the institutions from time to time parties
thereto as lenders, and Wells Fargo Bank, National Association, as
administrative agent for itself and the other lenders, as such agreement may be
further amended, restated, supplemented, modified, refinanced, extended or
replaced.”

 

Exhibit A-3

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EXHIBIT B

[FORM OF GUARANTOR ACKNOWLEDGEMENT]

GUARANTOR ACKNOWLEDGEMENT

Each of the undersigned hereby acknowledges and agrees to the terms of Amendment
No. 1 to Note Purchase Agreement, dated as of October 1, 2013 (the “Amendment”),
amending that certain Note Purchase Agreement, dated October 1, 2008, (the “Note
Purchase Agreement”), among Woodward, Inc. (formerly known as Woodward Governor
Company), a Delaware corporation, and the holders of Notes party thereto. Each
of the undersigned hereby confirms that the Guaranty Agreement to which the
undersigned is a party remains in full force and effect after giving effect to
the Amendment and continues to be the valid and binding obligation of the
undersigned, enforceable against the undersigned in accordance with its terms,
subject to any applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditor’s rights generally or by
equitable principles including principles of commercial reasonableness, good
faith and fair dealing (whether enforceability is sought by proceedings in
equity or at law).

Capitalized terms used herein but not defined are used as defined in the Note
Purchase Agreement.

Dated as of October 1, 2013

 

WOODWARD FST, INC. By:                                     
                                                             Name: Title: MPC
PRODUCTS CORPORATION By:                                     
                                                             Name: Title:
WOODWARD HRT, INC. By:                                     
                                                             Name: Title:

 

Exhibit B-1