Document:

exv10w7

Exhibit 10.7

Summary of Non-employee Director Meeting Fees and Compensation

We do not pay directors who are also Woodward employees additional compensation for their service
as directors. In addition to reasonable expenses for attending meetings of the Board, non-employee
directors receive the following compensation:

	 	 	 	 	 
	Monthly Retainer
	 	$	3,000	 
	Each Board meeting attended
	 	$	2,000	 
	Telephonic
Board meeting
	 	$	500	 
	Each Committee meeting attended — Chairman
	 	$	2,500	 
	Each Committee meeting attended — all others
	 	$	1,500	 
	Telephonic
Committee Meetings — Chairman
	 	$	1,000	 
	Telephonic
Committee Meetings — all others
	 	$	500	 
	Lead Director — each independent director meeting
	 	$	2,500	 
	Audit Committee Chairman — additional monthly retainer
	 	$	750	 

In addition, annual stock option awards with a fair market value of approximately $60,000 on the
date of grant are granted to each director. In November 2008, the
target market value of the annual stock option awards was increased
to $85,000. The terms of the awards, such as vesting and length of
the award, can be found in the Form of Non-Qualified Stock Option Agreement, filed as Exhibit 10.14
to our Annual Report on Form 10-K for our fiscal year ended September 30, 2007, and are
incorporated herein by reference. Our directors receive no perquisites.exv10w16

EXHIBIT 10.16

WOODWARD GOVERNOR COMPANY

SUMMARY OF EXECUTIVE OFFICER COMPENSATION

     The compensation program for executive officers of Woodward Governor Company (the “Company”)
primarily consists of three variable components: base salary, a potential cash bonus under the
Company’s annual Management Incentive Plan, and cash and equity long-term incentive compensation
under the Woodward Governor Company 2006 Omnibus Incentive Plan (the “2006 Plan”). We also provide
other benefits incident to employment to our employees.

BASE SALARIES

     The base salaries for each of the executive officers of the Company (the “Executive Officers”)
for fiscal year 2009, are as follows:

	 	 	 	 	 
	Name and Principal Positions	 	Base Salary	 
	Thomas A. Gendron, President and Chief Executive Officer
	 	$	700,000	 
	Robert F. Weber, Jr., Chief Financial Officer and Treasurer
	 	$	360,000	 
	Gerhard Lauffer, Group Vice President, Electrical Power Systems
	 	$	337,900	 
	Dennis Benning, Group Vice President, Airframe Systems
	 	$	330,070	 
	Martin V. Glass, Group Vice President, Turbine Systems
	 	$	325,500	 
	Chad R. Preiss, Group Vice President, Engine Systems
	 	$	260,000	 
	A. Chris Fawzy, Vice President, General Counsel and Corporate Secretary
	 	$	270,000	 

MANAGEMENT INCENTIVE PLAN

     The threshold, target and stretch/outstanding amounts to be awarded under the annual
Management Incentive Plan (“MIP”) of the Company for fiscal year 2009 for each of our Executive
Officers, subject to achievement of financial objectives of the Company, are as follows:

	 	 	 	 	 
	 	 	Threshold, Target and	 
	 	 	Stretch/Outstanding	 
	 	 	Amounts as a Percentage of	 
	Name of Executive Officer	 	Base Salary	 
	 
	 	 	40,100,	 
	Mr. Gendron
	 	 	& 200	%
	 
	 	 	24,60,	 
	Mr. Weber
	 	 	& 120	%
	 
	 	 	22,55	 
	Mr. Lauffer
	 	 	& 110	%
	 
	 	 	22,55	 
	Mr. Benning
	 	 	& 110	%
	 
	 	 	22,55	 
	Mr. Glass
	 	 	& 110	%
	 
	 	 	22,55	 
	Mr. Preiss
	 	 	&110	%
	 
	 	 	20,50	 
	Mr. Fawzy
	 	 	& 100	%

LONG TERM INCENTIVE PLAN AWARDS UNDER THE 2006 PLAN

     Stock Option Awards

1

 

     The annual awards of options to purchase shares of Common Stock of the Company relating to
fiscal year 2009 will be granted to each of the Executive Officers under the 2006 Plan on November
24, 2008 with an exercise price based on the closing price of Woodward’s common stock on The Nasdaq
Global Select Market on November 24, 2008.

	 	 	 	 	 
	 	 	Number of	 
	Name of Executive Officer	 	Shares	 
	Mr. Gendron
	 	 	62,000	 
	Mr. Weber
	 	 	14,500	 
	Mr. Lauffer
	 	 	14,000	 
	Mr. Benning
	 	 	14,000	 
	Mr. Glass
	 	 	14,000	 
	Mr. Preiss
	 	 	14,000	 
	Mr. Fawzy
	 	 	6,000	 

     The form of Stock Option Award Agreement under the 2006 Plan, including vesting provisions,
pursuant to which such awards were made, is incorporated herein by reference to Exhibit 99.2 to the
Company’s Current Report on Form 8-K dated November 16, 2007.

CASH COMPONENT OF LONG-TERM INCENTIVE PLAN

     The Company established a reward target for the cash component of the three-year long-term
incentive plan (“LTIP”) for fiscal 2008-2010 for each Executive Officer, articulated as a
percentage of base pay. Payout targets for the cash component of the long-term incentive plan are
detailed in the following table:

	 	 	 	 	 
	 	 	Cash Target	 
	 	 	LTIP Award as	 
	Executive Officer	 	a % of Base	 
	Gendron
	 	 	50	%
	Weber
	 	 	40	%
	Lauffer
	 	 	35	%
	Benning
	 	 	35	%
	Glass
	 	 	35	%
	Preiss
	 	 	35	%
	Fawzy
	 	 	25	%

     For purposes of the LTIP, we assess our performance as measured by Return on Capital and
Growth on Net Earnings per Share against the same performance metrics of the other companies in the
S&P Small Cap 600 over the three-year period 2008 through 2010. Each performance measurement is
worth 50% of the award and each is measured separately. Payout triggers in relation to our ranking
within the S&P Small Cap 600 are as follows:

	 	 	 
	Performance	 	Payout
	At or above 50th percentile

	 	50% of target
	At or above 60th percentile

	 	100% of target
	At or above 75th percentile

	 	200% of target

OTHER BENEFITS

     Our Executive Officers participate in the same health, welfare and retirement benefits as does
all of our employee membership. This includes a group health insurance program; life insurance,
inclusive of employee life, additional buy-up employee life, optional spouse life, and optional
child life; Accidental Death & Dismemberment insurance; Long-Term Disability; Woodward Retirement
Savings Plan, inclusive of employee contributions and Company contributions (100% match on the
first 3% of employee contributions, 50% on the next 3% of employee contributions, maxing at 4.5%);
Woodward Stock Plan (Company contribution of 5% of base wages); Retirement Income Plan (Company
contribution of 1.5% of eligible wages, and 0.1% for each year of additional service). The
Retirement Income Plan was frozen as of September 30, 2003, with prior participants grandfathered
and closed to new participants.

2

 

     All plans are subject to applicable IRS limitations. Supplemental matches and contributions
are made for the Retirement Savings Plan, the Woodward Stock Plan, and the grandfathered Retirement
Income Plan.

     Our Executive Officers are also eligible to participate in a deferred compensation plan, the
Executive Benefit Plan (EBP). This plan is also available to other key leaders. Participants are
able to defer up to 50% of base pay, and up to 100% of any incentive payments.

WHERE MORE INFORMATION CAN BE FOUND

     Each of the plans and agreements mentioned herein are discussed further annually in our Notice
of Annual Meeting of Shareholders and Proxy Statement as filed with the Securities and Exchange
Commission ( “SEC” ). Our Proxy Statement can be found on our website at
www.woodward.com/corp/IR/secFilings.cfm and at the SEC’s website at www.sec.gov.

3exv10w18

Exhibit 10.18

	 	 	 
	

	 	Woodward Governor Company

1000 East Drake Road

P.O. Box 1519

Fort Collins, CO 80522-1519 USA

Tel: 970-482-5811

Fax: 970-498-3058

	 	 	 
	Date:

	 	October 1, 2008
	 
	 	 
	To:

	 	Dennis Benning
	 
	 	 
	From:

	 	Tom Gendron
	 

	 	Chairman of the Board and Chief Executive Officer
	 
	 	 
	Subject:

	 	Confirmation of Promotion

Dear Dennis,

We are pleased to present to you the following details of your promotion:

POSITION:

	 	•	 	Your new position will be Group Vice President, Airframe Systems and President of Woodward MPC.
	 
	 	•	 	The Compensation Committee of the Board of Directors reviewed the Hewitt total
compensation data and approved our recommendations for all compensation changes.
	 
	 	•	 	You will be based in the Skokie, Illinois facility and report directly to me.

COMPENSATION:

	 	•	 	Effective with the pay period beginning October 4, 2008, your base salary will be
$12,695 bi-weekly or $330,070 annually. This represents an 10% combined merit/assignment
base pay increase.
	 
	 	•	 	You will continue to participate in the Management Incentive Plan (MIP). Your annual
incentive pay target will continue at 55% of base pay. This represents a cash target bonus
of $181,539.
	 
	 	•	 	This position qualifies for stock Options. The granting of stock options is not a
guarantee, and is subject to approval by the Compensation Committee of the Board of
Directors.
	 
	 	•	 	You will continue to participate in the Woodward Long Term Incentive Plan (LTIP). Your
target participation level will continue at 35% of base pay. This represents a cash
target bonus of $115,525.
	 
	 	•	 	You will be eligible for a salary review on October 1, 2009.

SPECIAL PROVISIONS:

	 	•	 	The Company will allow you the use of a car and reimburse you for the cost of gas
associated with business use of the vehicle.
	 
	 	•	 	The Company will provide accommodations (either hotel or rented apartment or some
combination) for the duration of the assignment. You will be responsible for other all
day-to-day living expenses during the assignment, e.g. meals, laundry expenses, and other
misc. expenses.

 

 

	 	•	 	The Company will allow you an unlimited number of trips to return to your home in
Windsor during the weekends. Alternatively, the Company will reimburse travel expenses
associated with your wife, Lori, visiting you in Illinois.
	 
	 	•	 	The Company will pay for a driver service for Lori as needed.
	 
	 	•	 	Household property management and associated utility and maintenance costs will be
picked up by the company.
	 
	 	•	 	At the successful completion of your assignment, you will be eligible to receive a
performance bonus in the amount of $150,000 less applicable withholdings. Successful
completion means that your successor is assessed, named and effectively transitioned into
the Group Vice President, Airframe Systems and Woodward MPC President position.
	 
	 	•	 	The expected duration of this assignment will be between 6 to 12 months. Subject to
meeting all performance and conduct requirements, the Company’s intent is to place you in a
comparable executive position (i.e. same grade level and pay treatment) at the conclusion
of this assignment.

Please contact me should you have any questions. Dennis, we are looking forward to your leadership
abilities in running the Airframe Systems Business Group and completing the integration activities
at Woodward MPC. In your new position, you will continue to play a key role on the Executive Staff
and will have significant impact on our ability to meet our Vision 2010, goals and strategies.

If you accept this promotion on the terms and conditions set forth in this letter, please sign
below and return the original of this letter to my attention.

Sincerely,

Tom Gendron

	 	 	 	 	 
	 	 	 
	Dennis Benning

	 	Date

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