Document:

sn_EX_10_1

		
			Exhibit 10.1
		

		
			 
		

		
			FIRST AMENDMENT TO
		

		
			AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP
		

		
			OF
		

		
			SN EF UNSUB, LP
		

		
			 
		

		
			 
		

		
			THIS FIRST AMENDMENT TO AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP (this “Amendment”) of SN EF UnSub, LP (the “Partnership”), is entered into effective as of March 1, 2017.  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in Article I of the Partnership Agreement (as defined below).
		

		
			RECITALS
		

		
			WHEREAS, the Amended and Restated Agreement of Limited Partnership of the Partnership was executed, dated as of March 1, 2017 (the “Partnership Agreement”); and
		

		
			WHEREAS, the Partnership desires to amend the Partnership Agreement to (i) modify or add certain provisions with respect to allocations and (ii) amend the definition of Base Preferred Return Amount as set forth below; and
		

		
			WHEREAS, Section 15.1 of the Partnership Agreement allows the General Partner to make the amendments herein only if such amendments are approved in writing by the Investor Representative and, as applicable, the Institutional Investor; and
		

		
			WHEREAS, the General Partner deems it advisable and in the best interests of the Partnership to modify and amend the Partnership Agreement as set forth below and by its signature below the Investor Representative and, as applicable, the Institutional Investor hereby approves this Amendment.
		

		
			NOW, THEREFORE, in consideration of the foregoing, the Partnership Agreement shall be amended as follows:
		

		
			1.         AMENDMENT TO PARTNERSHIP AGREEMENT.
		

		
			A.        Section 4.2(a) shall be amended and restated to read in it entirety as follows:
		

		
			(a)      Profits.   After making the allocations required by Section 4.3 and Section 4.4, Profits for any Fiscal Year or Fiscal Period shall be allocated as follows:
		

		
			(i)       first, 100% to Preferred Partners, pro rata in proportion to the aggregate number of Preferred Units held by each such Preferred Partner, until the aggregate Profits allocated to the Preferred Partners pursuant to this Section 4.2(a)(i) for the current and all previous taxable periods is equal to the aggregate Losses allocated to the Preferred Partners pursuant to Section 4.2(b)(ii) for the current and all previous taxable periods;
		

		
			 
		

		
			
		

		
			

		 

		

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			(ii)      second, 100% to the holders of Common Units, pro rata in accordance with their respective Proportional Share.
		

		
			 
		

		
			B.         Section 4.3(h) shall be amended and restated to read in its entirety as follows:
		

		
			(h)  Special Allocations.
		

		
			(i)         Items of gross income shall be allocated to each Preferred Partner until the cumulative allocations of items of gross income to each Preferred Partner pursuant to this Section 4.3(h)(i) equal the cumulative amount of Simulated Depletion allocated to each Preferred Partner pursuant to Section 4.3(j);
		

		
			(ii)       Items of gross income and gain shall be allocated to each Preferred Partner until the cumulative allocations of items of gross income and gain to each Preferred Partner for the current and all previous taxable periods equal to the amount of return accruing to each Preferred Partner sufficient to generate an IRR with respect to each Preferred Unit held by a Preferred Partner of fourteen percent (14%); and
		

		
			(iii)      Consistent with Section 3.1(a), the Partnership shall be treated as making a guaranteed payment to each of the Institutional Investor and the Intrepid Investor within the meaning of Code Section 707 in an amount equal to the Institutional Investor’s and the Intrepid Investor’s respective share of the Sanchez Shares and Warrants Amount (as set forth on Schedule A hereto) and the resulting deductions shall be allocated to the Sanchez Investor.
		

		
			C.         The definition of “Base Preferred Return Amount” in Article I of the Partnership Agreement shall be amended and restated to read in its entirety as follows:
		

		
			“Base Preferred Return Amount” means, at any time of determination, an amount of cash Distributions that would be required to be made to the Preferred Partners in respect of each Preferred Unit then outstanding equal to the greater of (i) the amount required to cause the IRR with respect to each Preferred Unit to be equal to fourteen percent (14.0%) and (ii) the amount required to cause the Return on Investment with respect to each such Preferred Unit to be equal to 1.5, each such figure to be determined inclusive of all cash Distributions previously made to the Preferred Partners (or if any such Preferred Unit has been Transferred since the Effective Date by the predecessor owner(s) of such Transferred Preferred Units) in respect of such Preferred Units, other than Excluded Amounts.
		

		
			2.         MISCELLANEOUS PROVISIONS.
		

		
			(a)        Entire Agreement.  The Partnership Agreement, as amended hereby, constitutes the full and complete agreement of the Partners with respect to the subject matter hereof and thereof and supersede all prior contracts or agreements with respect to the Partnership and the matters addressed or governed hereby and thereby, whether oral or written.
		

		
			 
		

		
			
		

		
			

		 

		

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			(b)        Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of Delaware, without reference to any conflict of law or choice of law principles
		

		
			(c)        Severability.  Every provision of this Amendment is severable.  If any term or provision hereof is held to be illegal, invalid or unenforceable for any reason by any duly constituted court, agency or tribunal, the legality, validity or enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
		

		
			(d)        Headings.  The headings used in this Amendment are for the purpose of reference only and will not otherwise affect the meaning or interpretation of any provision of this Amendment.
		

		
			[SIGNATURE PAGE FOLLOWS]
		

		
			 
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, the General Partner has executed this Amendment effective as of the day and year first above written.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						General Partner:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SN EF UnSub GP, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						/s/ Patricio D. Sanchez

				
	
					
						 

					
					
						Name:  Patricio D. Sanchez

				
	
					
						 

					
					
						Title: Chief Executive Officer

				

		
			 
		

		
			
		

		
			

		 

		

			[Signature Page to First Amendment]

		

 

		

		
			 
		

		
			IN WITNESS WHEREOF, each of the Investor Representative and Institutional Investor has executed this Amendment effective as of the day and year first above written. By executing this Amendment in the space below, the undersigned represents that it is the Investor Representative duly designated as such in accordance with and as contemplated in the Partnership Agreement.
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						Investor Representative and

				
	
					
						 

					
					
						Institutional Investor:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						GSO ST HOLDINGS LP

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						GSO ST Holdings Associates LLC,

				
	
					
						 

					
					
						 

					
					
						its general partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						/s/ Marisa J. Beeney

				
	
					
						 

					
					
						Name:  Marisa J. Beeney

				
	
					
						 

					
					
						Title: Authorized Signatory

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			IN WITNESS WHEREOF, the Class B Member of the General Partner has consented to and approved this Amendment effective as of the day and year first above written.
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Class B Member of the General Partner:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						GSO ST HOLDINGS ASSOCIATES LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						/s/ Marisa J. Beeney

				
	
					
						 

					
					
						Name:  Marisa J. Beeney

				
	
					
						 

					
					
						Title: Authorized Signatory

				

		
			 
		

		
			 
		

		 

		

			[Signature Page to First Amendment]Exhibit 101 Cromwell Employment Letter

		

			 

		

		

			 

		

		

			 

		

		

			Corporate Headquarters

		

		

			1081 Woodward Way

		

		

			Fort Collins, CO 80524, USA

		

		

			970-498-5811

		

		

			 

		

		

			 

		

		

			 

		

		

			 

		

		

			Exhibit 10.1

		

		
			January 30, 2019
		

		
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			Mr. Thomas G. Cromwell
		

		
			W4050 Sumac Road
		

		
			Plymouth, WI  53073
		

		
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			Dear Tom:
		

		
			Based on our interview and selection process, we are confident that you have the ability to create and deliver substantial value to Woodward.  As a result, I am pleased to present to you the following details of your job offer, which has been approved by the Compensation Committee.     
		

		
			POSITION:
		

		
			This offer is for the position of Vice Chairman, Chief Operating Officer reporting to Tom Gendron, Chairman of the Board and Chief Executive Officer.   This is an exempt position based at the Woodward Lincoln Campus Headquarters, Fort Collins, Colorado.
		

		
			COMPENSATION:
		

		
			Base Pay:
		

			
	
			
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			Your base salary will be $575,000 annually.  You will be eligible for a wage review on January 1, 2020.

		
			 
		

		
			Annual Incentive Compensation:
		

		
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			You will participate in the Woodward Variable Incentive Plan (WVIP).  Your annual incentive pay target will be 75% of eligible wages, or $431,250.  The WVIP payouts can reach a maximum of 200% of target and are paid out each November after the close of the fiscal year.  Incentive plan performance measurements continue to be aligned with company objectives and financial performance.  Please review the attached WVIP at a Glance document and related materials for further details.

		
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			Long Term Incentive (LTI) Compensation:
		

			
	
			
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			This position qualifies for Stock Options.  The granting of Stock Options is not a guarantee, and is subject to Board of Directors approval.  Any grants are typically issued on the first business day of the fiscal year.  Please review the enclosed Stock Option Plan Agreement for further details.

		
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			You will also participate in the Woodward Cash Long Term Incentive Plan (Cash LTI).  This is a cash incentive compensation plan for selected top executives of the Company.  The plan consists of a three-year performance period, with a new performance period starting at the beginning of each fiscal year.  To the extent that the designated goals are achieved, a multiple of the target award will be paid at the end of the performance period.  Your target participation level will be 40% of your base pay.  

		
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			Corporate Headquarters

		

		

			1081 Woodward Way

		

		

			Fort Collins, CO 80524, USA

		

		

			970-498-5811

		

		

			 

		

		

			 

		

		

			 

		

		

			 

		

			
	
			
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			Your total annual target LTI is $1,500,000.  $230,000 of this amount (after adjusting for forfeiture risk) is allocated to the Cash LTI, with the balance ($1,270,000) being attributable to future years’ equity awards.

		
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			Total target compensation:  $2,506,250
		

		
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			Special Provisions:
		

		
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			Sign-On Incentives:
		

		
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			If you accept this position with a start date on or before March 4, 2019, you will receive the following sign-on incentives:

		
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			A one-time $500,000 (less applicable withholdings) cash sign-on bonus.  This bonus is typically included in your first pay statement following your start date.  Please note that all special provision payments are taxed at a flat federal withholding tax rate of twenty-five percent (25%).  Please also note that you will be required to repay Woodward the cash sign-on bonus should you voluntarily leave the company within 1 year from your start date. 

		
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			A one-time $500,000 Company contribution to the Executive Benefit Plan (nonqualified deferred compensation plan).  This contribution will be made as soon as administratively possible following your hire date.

		
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			Incentive Compensation for FY19:
		

		
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			Under our Administrative Guidelines for the Cash LTI plan, your eligibility will begin with the FY20 - FY22 performance cycle, and the annual stock option grant is as of October 1st of each year.  To fully compensate you for your target long-term incentive compensation in FY19, you will receive a stock option grant of 38,700 options upon your start date, with a delivered value of approximately $1,000,000 using the Black Sholes value of $25.86 for the recently awarded stock option grants, representing your prorated FY19 LTI.  The grant will be established at the Woodward stock price on your first date of employment using the closing price of the Company's common stock on NASDAQ on that day.  The normal vesting schedule under our form Stock Option Agreement will apply for this grant and your future annual stock option grants.

		
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			You will also be eligible for a prorated payout under the WVIP for FY19 in accordance with the terms of that plan. 

		
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			Travel:
		

		
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			The Company will cover travel expenses for you for a 6-month period to commute between Plymouth, WI and Fort Collins, CO.

		
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			Change-In-Control Agreement:
		

		
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			A Transition Agreement that is triggered by a change in control will be prepared for you consistent with the provisions set for our officers.   Following a change in control, if your employment is terminated 
		

		 

		

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			Corporate Headquarters

		

		

			1081 Woodward Way

		

		

			Fort Collins, CO 80524, USA

		

		

			970-498-5811

		

		

			 

		

		

			 

		

		

			 

		

		

			 

		

			(other than for cause or due to death or disability), or if you terminate with good reason (as defined in the agreement), you would receive an amount equal to 200% of each of (1) your annual base salary, (2) the greater of your WVIP target award or amount earned based on annualized YTD performance, (3) a pro-rated amount, based on relevant service, of the greater of your target Cash LTI or the annualized YTD performance based on all outstanding Cash LTI performance cycles, and (4) the sum of the contributions the company would have made during the year on your behalf to the tax-qualified defined contribution retirement plans.  In addition, all unvested stock options awards would be accelerated and become immediately exercisable.  Member health and welfare benefits would be continued at the company’s expense for a period of two years after the date of termination.  Outplacement services would be provided at the company’s expense as well as tax preparation services for the taxable year in which the termination occurred.

		
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			BENEFITS:
		

		
			Woodward has an outstanding benefits package that distinguishes us in the labor market.  Please review the enclosed Benefits Program Summary.  Some benefits to highlight:
		

		
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			You and any eligible dependents will be able to fully participate in the One Woodward Health Care (medical, dental and vision) programs after thirty days of continued employment.  

		
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			You will become eligible for company-funded basic life insurance as well as Accidental Death and Dismemberment (AD&D) coverage in the amount of two times your base annual salary up to a maximum of $1,000,000 after thirty days of continued employment.  

		
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			You may also elect to participate in our 401K plan upon employment.  You can contribute between 0-50% of your bi-weekly pay, and Woodward will match 100% on contributions from 1-3% and 50% on contributions from 4-6% (maximum company match of 4.5%).  You will be 100% vested at the time of enrollment.  

		
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			Upon two years of service, you will automatically become a participant in the Woodward Stock Plan (the Company contributes 5% of eligible wages on your behalf).  You will be 100% vested at the time of eligibility.

		
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			The standard Seniority Based Vacation Plan accrues per pay period and equates to a base of ten days per calendar year.  As a seasoned executive, you will be eligible for 4 weeks of vacation through your 13th year of service.  Upon your 14th year of service, vacation will begin to accrue beyond 4 weeks, at the rate indicated on the Seniority Based Vacation Plan schedule.  Vacation may be taken after 30 days of employment.  Base vacation in your first year will be calculated based upon the number of pay periods you work.  

		
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			You will also be eligible to participate in the Executive Benefit Plan, our nonqualified deferred compensation plan.  Please review the attached program description.

		
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			RELOCATION BENEFITS:
		

		
			We will authorize a comprehensive relocation program to assist you and your family in moving from Plymouth, Wisconsin to the Fort Collins, Colorado area.  Please review the attached Woodward Relocation Policy Guidelines 
		

		 

		

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			Corporate Headquarters

		

		

			1081 Woodward Way

		

		

			Fort Collins, CO 80524, USA

		

		

			970-498-5811

		

		

			 

		

		

			 

		

		

			 

		

		

			 

		

		for a full description of the relocation benefits and program rules.  The following highlights some of the benefits that will be provided to you:
		

			
	
			
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			Pre-move house hunting trip for you and your spouse

			
	
			
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			Moving of household goods

			
	
			
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			Final move expenses

			
	
			
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			Temporary living expenses

			
	
			
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			Assistance in the sale of your home 

			
	
			
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			Closing costs on your new home

		
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			As an added benefit, we will authorize the following relocation policy exceptions:
		

			
	
			
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			Guaranteed offer on your primary residence in Plymouth, Wisconsin.  The guaranteed offer will be 100% of the average appraised value of the home.

		
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			This letter contains the entire agreement with respect to your employment.  It supersedes any and all other agreements, either oral or in writing with respect to your employment relationship.  You and Woodward acknowledge and agree that no other agreement, statement or promise not included in this letter shall be valid or binding.  The terms of employment, as set out in this letter, may not be modified or amended by oral agreement or course of conduct, but only by an agreement signed by both you and the Corporate Vice President, Human Resources.
		

		
			While we look forward to this being a long and mutually rewarding association, Colorado is an at-will state.  Your employment will be at will.  You may leave your employment at any time.  Woodward may transfer, reassign, suspend or demote, or may terminate your employment, at any time, for any reason, with or without cause, and with or without notice.
		

		
			Our offer is contingent upon:  1) the successful completion of a pre-employment drug screen, 2) the position being in existence at the time of your established start date, 3) no evidence of false or misleading information on your application or subsequent information you provide, 4) the successful completion of a background check and Restricted Party Screening, 5) fulfilling I-9 and e-Verify requirements, and 6) receipt of any required export license or other authorization from the US government under US Export Control Regulation.  These are requirements for all new employees.
		

		
			We look forward to discussing the offer in more detail.  In the meantime, should any questions arise regarding this offer, feel free to contact Steve Meyer or me.
		

		
			If you accept this job offer on the terms and conditions set forth in this letter, please sign below and return the original of this letter me via email.
		

		
			Tom, we are really looking forward to having you join Woodward.  This is an exciting time to be with the company as we are positioned extremely well for profitable growth.  
		

		

		

		 

		

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			Corporate Headquarters

		

		

			1081 Woodward Way

		

		

			Fort Collins, CO 80524, USA

		

		

			970-498-5811

		

		

			 

		

		

			 

		

		

			 

		

		

			 

		

		Sincerely,
		

		
			/s/ Thomas A. Gendron
		

		
			Tom Gendron
		

		
			Chairman, Chief Executive Officer and President
		

		
			Enclosures
		

		
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			____________________________________________________________________________________
		

		
			Accepted
		

		
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						/s/ Thomas G. Cromwell

					
					
						 

					
					
						1/30/19

				
	
					
						Thomas G. Cromwell

					
					
						 

					
					
						Date

				

		
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						Start Date:  

					
					
						On or before March 4th, likely Feb. 18 or 25.

				

		
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