Document:

Exhibit 10.1

 

P O Box 13222

Sacramento CA 95813-6000

 

Tel: 916-355-4708

Email: Michael.Bunter@rocket.com

 

 

Mike Bunter

Senior Director, Human Resources

 

 

September 27, 2016

 

Paul Lundstrom

PMB 123

304 W. Main St.

Avon, CT 06001

 

 

Dear Paul:

 

Per our discussions, please accept our offer of employment to you.

 

Position and Base Salary

We are pleased to extend an offer of full-time employment as Chief
Financial Officer for Aerojet Rocketdyne Holdings, Inc. (Aerojet Rocketdyne); this position is classified as Exempt. Your unique
skills and experience will be an asset to Aerojet Rocketdyne, and we believe that our company offers you a challenging and rewarding
opportunity. Your starting salary will be $16,538.46 paid bi-weekly ($430,000 annually) in accordance with the standard payroll
practices of the Company and subject to all withholdings and deductions as required by law. You will report to Eileen Drake, Chief
Executive Officer and President. Your work location will be our El Segundo, CA office. Your start date is scheduled for November
7, 2016.

 

Variable Compensation

As part of your annual total cash compensation, you will be eligible
to participate in the Aerojet Rocketdyne Annual Incentive Plan (AIP). Your target annual incentive is 65% of your base salary.
Incentive plan payments are contingent upon the financial performance of Aerojet Rocketdyne and Aerojet Rocketdyne Holdings Inc.
and your incentive may vary above or below the target level. You will be eligible for a pro-rated bonus for fiscal year 2016 based
on your date of hire. Your eligibility to participate in the program is at the discretion of management. Aerojet Rocketdyne may
modify, change or cancel any of the AIP, and may adjust any individual payment during the performance period or at any time prior
to the payment date.

 

You will also be eligible to participate in the long-term incentive
program (LTIP) under the Amended and Restated 2009 Equity and Performance Incentive Plan as approved by the Board of Directors.
Long term incentive grants are normally made during Aerojet Rocketdyne Holdings Inc.’s second fiscal quarter. Your long-term
incentive target is 135% of your base salary. Your first grant under the LTIP will be in the March / April 2017 time frame with
vesting scheduled for the first quarter of 2020.

     

     

    

Paul Lundstrom

September 27, 2016

Page 2

 

Sign on Equity Grant

You will be granted 40,000 restricted shares of Aerojet Rocketdyne
stock effective as of the date your employment begins (the “grant date”). This equity grant will vest ratably in tranches
of one-third on the anniversary of the grant date over three years. If you are terminated by Aerojet Rocketdyne for any reason,
other than for cause, within the first twenty four (24) months of employment, any unvested shares from your sign on equity grant
will be vested immediately upon your date of termination.

 

Cash Sign on Bonus

You will be advanced $100,000 (less required taxes and withholdings)
as a one time hiring incentive, paid to you within thirty (30) days of your start date or as soon thereafter as is administratively
practical.

If your employment is terminated by the Company for Cause or if
you terminate your employment voluntarily prior to twelve (12) months of your start date, you agree to repay the full amount of
the signing bonus within 30 days following your termination date.

 

Relocation Assistance

To assist you with your relocation to the Los Angeles, CA area,
we are offering you the benefits outlined in the enclosed relocation summary. Following your written acceptance of our offer, a
Brookfield Global Relocation Services representative will contact you to initiate your move. We will provide you with commuter
benefits equivalent to a trip home every week until your family joins you in the Los Angeles area in December 2016.

 

Additionally, Aerojet Rocketdyne will provide a loss on sale and
/ or guaranteed buyout provision on the sale of your home in Connecticut with the following terms:

	You will list your home for a minimum of 60 days with the assistance of Brookfield Global
Relocation Services.
	If your home does not go under contract within the 60 day listing period, Aerojet Rocketydne
will purchase the house through Brookfield Global Relocation Services at your original documented purchase price of $850,000.
	In the event your home does go under contract within the 60 day listing period for a sale
price below your original purchase price of $850,000, Aerojet Rocketdyne will provide you with an offset payment to cover your
loss on sale up to your original purchase price of $850,000.

A loss on sale is defined as the difference between the documented
original purchase price and final selling price as indicated on the legally executed settlement statements.  This provision
does not provide loss reimbursement of capital improvements.  In order to be eligible to receive this reimbursement,
you must actively market your home as noted above, and the sales price must reflect current market values for the area.  This
loss on sale benefit will be grossed up for federal and state income taxes in a manner consistent with IRS rulings to reasonably
offset taxes paid by you. The tax assistance is intended to be an approximation of your tax liability and is not intended to be
an exact calculation.  

 

You should be aware that all payments for any and all costs associated
with relocation shall be repaid to Aerojet Rocketdyne should you resign or be terminated for cause within eighteen (18) months
of your start date.

 

Vacation Time

You will accrue paid vacation time at the rate of three weeks (120
hours) per year.

     

     

    

Paul Lundstrom

September 27, 2016

Page 3

 

Offer Terms and Conditions

Aerojet Rocketdyne reserves the right to revoke this offer at any
time before employment begins. In addition, due to the nature of the work being performed at Aerojet Rocketdyne, we must maintain
high levels of health, safety, and security. All offers of employment are contingent upon reference checks and a background investigation
as well as upon your receiving appropriate security clearances (if required), submitting to a post-offer medical evaluation as
determined by the position’s physical, safety and environmental requirements, and demonstrating your ability to satisfy the
physical requirements of the job. Testing for substance abuse is part of our post-offer screening. Aerojet Rocketdyne will not
hire individuals who test positive for use of illegal drugs or improperly used legal drugs.

 

A representative from Aerojet Rocketdyne will phone and/or email
you regarding the specific date, time, and other details of your drug test and medical evaluation, which will be scheduled with
a doctor or occupational health clinic in your area.

 

Your start date is presently scheduled for November 7, 2016 pending
completion of all of our post-offer screening processes and reference checks. On your first day, please report to the main lobby
of our El Segundo, CA facility at 222 N. Sepulveda Blvd, El Segundo, CA 90245.

 

As an employee of Aerojet Rocketdyne, it is necessary that you agree
to conform to the rules and regulations of the Company. We also require you to acknowledge, by signing in the space provided below,
that your employment with Aerojet Rocketdyne is at-will. This means your employment can be terminated, with or without cause, and
with or without notice, at any time, at your option or at Aerojet Rocketdyne’s option. Although other terms and conditions
of employment may change, this at-will employment will remain in effect throughout your employment with the Company, unless it
is modified by an express written employment contract for a specified term which is signed by you and an officer of Aerojet Rocketdyne.
Your signature further indicates that you agree that this letter incorporates all of the elements of our employment offer, and
no agreement which is contrary to any of the matters stated in this offer letter shall be effective unless it is contained in a
specific, express written contract which is signed by an authorized officer of the Company and you.

 

We also require you to sign the enclosed copy of our mutual agreement
to arbitrate claims, which provides an expedited, impartial dispute resolution procedure for any claims that may arise during or
following your employment with Aerojet Rocketdyne. By signing this offer and the mutual agreement to arbitrate claims, you are
agreeing to have your claims ruled on by an impartial arbitrator and are waiving the right to a civil trial before a judge or jury.

 

Our offer is contingent upon your completing, signing and returning
all of the enclosed documents. A checklist and a return envelope are included for your convenience.

 

Because the position you are being offered requires eligibility
for a U.S. security clearance, you will be required to provide proof of U.S. citizenship on your first day of work. You may provide
this proof in one of the following required forms (please bring your documents with you on your start date):

 

	An original or certified copy of a birth certificate;
	A certificate of naturalization;
	A Certificate of Citizenship issued by the Immigration and Naturalization Service (INS);
	A Report of Birth Abroad of a Citizen of the United States of America (Form FS-240);
	A Certificate of Birth (Form FS-545 or DS-1350);
	A current passport; or
	A Record of Military Processing-Armed Forces of the United States (DD Form 1966), provided
it reflects U.S. citizenship.

 

     

     

    

Paul Lundstrom

September 27, 2016

Page 4

 

Additionally, Aerojet Rocketdyne is required by Federal law to verify
all new employees’ legal right to work in the United States. Our offer is conditioned upon your providing this proof. It
is not necessary to provide proof now, but you must provide proof of your legal right to work in the United States on your first
day of work. The documents described in the enclosed list are acceptable for this purpose. If you will have any difficulty providing
this documentation on your start date, please notify us immediately.

 

Eileen Drake and I are pleased to welcome you to the Aerojet Rocketdyne
team. If you have any questions, please feel free to contact me at (916) 355-4708. Aerojet Rocketdyne is an exciting place to work
and an environment in which your contributions will be valued. We look forward to having you on our team.

 

Please respond to our offer no later than October 4, 2016

 

Sincerely,

 

 

Mike Bunter

Senior Director, Human Resources

 

 

Enclosures

 

 

 

 

OFFER ACCEPTANCE ______________________   DATE _________________________Exhibit

Exhibit 10.1

AMENDMENT TO AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

THIS AMENDMENT (“Amendment”) to that certain Amended and Restated Employment Agreement, as amended from time to time (the “Employment Agreement”) entered into as of May 1, 2013, by and between Basic Energy Services, Inc. (the “Company”) and Thomas Monroe Patterson (the “Executive”) is entered into as of October 24, 2016 (the “Effective Date”), by and between the Company and the Executive (each, a “Party,” and collectively, the “Parties”).
    
WHEREAS, the Company will be filing a petition for relief under chapter 11 of title 11 of the United States Code to implement a restructuring of its balance sheet (the “Reorganization”);

WHEREAS, the Parties would like to clarify that the consummation of the restructuring transaction as contemplated by the Plan of Reorganization (attached as Exhibit A to that certain Restructuring Support Agreement, dated October 23, 2016) and as may be amended from time to time in accordance with the terms of such Restructuring Support Agreement, will not itself constitute a Change in Control or give rise to a Good Reason event (both as defined in the Employment Agreement); and    

WHEREAS, in connection with the Reorganization, the Company and its creditors have negotiated the material terms of a management incentive plan (the “MIP”) to be effective upon the date of the Company’s emergence from the restructuring transaction contemplated by the Plan of Reorganization and as may be amended from time to time to time in accordance with the terms of the Restructuring Support Agreement (the “Reorganization Date), with such material terms as set forth in the MIP term sheet (the “MIP Term Sheet”) attached as an exhibit to that certain Restructuring Support Agreement; 
 
WHEREAS, in consideration of the Executive’s continuing services to the Company, the Parties desire to amend the Employment Agreement to provide that if the Board of Directors of the reorganized Company fails to grant the emergence awards allocated to the Executive in accordance with MIP Term Sheet on or within ninety (90) days following the Reorganization Date, such failure will constitute a Good Reason event under the Employment Agreement; and

WHEREAS, Section 32 of the Employment Agreement permits amendment of the Employment Agreement by means of a written instrument, signed by both Parties.

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, the Company and Employee agree as follows:

1.Amendment to Employment Agreement. Effective as of the Effective Date:

		
	A.
	A new Section 6(d)(7)(G) will be added to the Employment Agreement to read as follows:

		
	(i)
	The failure of the Board of Directors of Basic Energy Services, Inc. to grant the emergence awards allocated to the Executive in accordance with the MIP Term Sheet as set forth in Exhibit G to the Restructuring Support Agreement, on or within ninety (90) days following the Reorganization Date, shall constitute a “Good Reason” event.

		
	B.
	In the last paragraph of Section 6(d)(7), the words “under subparagraphs (A), (B), (C), (D), or (E) (above)” shall be replaced with the words “under subparagraphs (A), (B), (C), (D), (E) or (G) (above).”  

		
	C.
	The following sentence will be added after the last sentence of the last paragraph in Section 6(d)(7):

		
	(i)
	In addition, the consummation of the restructuring transaction as contemplated by the Plan of Reorganization as may be amended from time to time in accordance with the terms of the Restructuring Support Agreement, shall not itself give rise to a “Good Reason” event under subparagraphs (C) or (D) (above).”

		
	D.
	A new Section 6(d)(3)(D) will be added to the Employment Agreement to read as follows:

		
	(i)
	Notwithstanding the foregoing as set forth in this Section 6(d)(3), the consummation of the restructuring transaction as contemplated by the Plan of Reorganization as may be amended from time to time in accordance with the terms of such Restructuring Support Agreement, shall not constitute a “Change in Control” herein.

		
	E.
	Section 6(d)(8) is hereby amended to replaced in its entirety to read as follows:

		
	(i)
	“Retirement” means the termination of Executive’s employment for normal retirement at or after attaining age sixty (60) provided that, on the date of his retirement, Executive has accrued at least ten years of active service with the Company.

2.    Definitions. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Employment Agreement. 

3.    References. All references in the Employment Agreement to “Agreement” and any other references of similar effect shall hereinafter refer to the Employment Agreement as amended by this Amendment.

4.    Remaining Provisions. Except as expressly modified by this Amendment, the Employment Agreement shall remain in full force and effect. This Amendment embodies the entire agreement and understanding of the Parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether oral or written, relating thereto.

5.    Governing Law. This Amendment is to be interpreted, construed and governed according to the laws of the State of Texas without regard to conflicts of laws.

6.    Counterparts. The Parties hereto may execute this Amendment in counterparts, each of which shall be deemed to be an original and all of which shall together constitute one and the same instrument.

[signature page follows]
    

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the Effective Date.

EXECUTIVE

/s/Thomas Monroe Patterson        
Thomas Monroe Patterson

Company

By: /s/Eric Lannen            
Name:    Eric Lannen
Title:    V.P. Human Resources

Patterson, Thomas M.

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