Document:

EX-4.1

 Exhibit 4.1 

For Execution 
 WOODWARD
EXECUTIVE BENEFIT PLAN 
 (Amended and Restated June 1, 2018) 

 TABLE OF CONTENTS 

 

									
	 	  	 	  	 	  	Page	 
	I	  	PURPOSE AND EFFECTIVE DATE	  	 	1	 
		  	1.1.	  	Purpose	  	 	1	 
		  	1.2.	  	Effective Date	  	 	1	 
		  	1.3.	  	History	  	 	1	 
		  	1.4.	  	Code Section 409A	  	 	1	 
	II	  	DEFINITIONS	  	 	1	 
		  	2.1.	  	“Account”	  	 	1	 
		  	2.2.	  	“Administrator”	  	 	2	 
		  	2.3.	  	“Affiliate”	  	 	2	 
		  	2.4.	  	“Base Salary”	  	 	2	 
		  	2.5.	  	“Beneficiary”	  	 	2	 
		  	2.6.	  	“Board”	  	 	2	 
		  	2.7.	  	“Bonus”	  	 	2	 
		  	2.8.	  	“Change in Control”	  	 	3	 
		  	2.9.	  	“Code”	  	 	4	 
		  	2.10.	  	“Company”	  	 	4	 
		  	2.11.	  	“Deferral Contribution Amounts”	  	 	5	 
		  	2.12.	  	“Deferral Election”	  	 	5	 
		  	2.13.	  	“Director Compensation”	  	 	5	 
		  	2.14.	  	“Disability”	  	 	5	 
		  	2.15.	  	“Distribution Election”	  	 	5	 
		  	2.16.	  	“Early Retirement Date”	  	 	5	 
		  	2.17.	  	“Election Period”	  	 	5	 
		  	2.18.	  	“Eligible Member”	  	 	6	 
		  	2.19.	  	“Exchange Act”	  	 	6	 
		  	2.20.	  	“FICA”	  	 	6	 
		  	2.21.	  	“Investment Fund or Funds”	  	 	6	 
		  	2.22.	  	“Normal Retirement Date”	  	 	6	 
		  	2.23.	  	“Participant”	  	 	6	 
		  	2.24.	  	“Plan”	  	 	6	 

  
 -i- 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	  	 	  	 	  	Page	 
		  	2.25.	  	“Plan Year”	  	 	6	 
		  	2.26.	  	“Prior Account Balance”	  	 	7	 
		  	2.27.	  	“Retirement”	  	 	7	 
		  	2.28.	  	“Separation from Service”	  	 	7	 
		  	2.29.	  	“Specified Employee”	  	 	7	 
		  	2.30.	  	“Supplemental Benefit Amount”	  	 	8	 
		  	2.31.	  	“Valuation Date”	  	 	8	 
	III	  	PARTICIPATION	  	 	8	 
		  	3.1.	  	Participation	  	 	8	 
		  	3.2.	  	ERISA Exemption	  	 	8	 
	IV	  	DEFERRAL CONTRIBUTION AMOUNTS 	  	 	9	 
		  	4.1.	  	Permissible Deferrals under the Plan	  	 	9	 
		  	4.2.	  	Deferral Elections	  	 	9	 
		  	4.3.	  	Crediting of Deferral Elections	  	 	10	 
		  	4.4.	  	Vesting	  	 	11	 
		  	4.5.	  	Deferred Contribution Amounts Subject to FICA at Time of Deferral	  	 	11	 
	V	  	SUPPLEMENTAL BENEFIT AMOUNT 	  	 	11	 
		  	5.1.	  	Computation of Supplemental Benefit Amount	  	 	11	 
		  	5.2.	  	Vesting	  	 	12	 
		  	5.3.	  	Crediting of Supplemental Benefit Amount	  	 	12	 
		  	5.4.	  	Distribution Elections	  	 	12	 
	VI	  	ACCOUNTS AND INVESTMENTS	  	 	12	 
		  	6.1.	  	Valuation of Accounts	  	 	12	 
		  	6.2.	  	Hypothetical Investment Funds	  	 	13	 
		  	6.3.	  	Crediting of Investment Return	  	 	13	 
		  	6.4.	  	Changing Investment Fund Options	  	 	14	 
		  	6.5.	  	Investment Alternatives After Death	  	 	14	 
	VII	  	PAYMENT OF BENEFITS 	  	 	14	 
		  	7.1.	  	Distribution at Specific Future Date	  	 	14	 
		  	7.2.	  	Distribution Upon Retirement or Disability	  	 	15	 
		  	7.3.	  	Distribution On Other Termination of Service	  	 	16	 

  
 -ii- 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	  	 	  	 	  	Page	 
		  	7.4.	  	Unforeseeable Emergency	  	 	16	 
		  	7.5.	  	Time and Form of Elections	  	 	17	 
		  	7.6.	  	Form of Payment and Withholding	  	 	17	 
		  	7.7.	  	Exception for Specified Employees	  	 	17	 
		  	7.8.	  	Timing of Payments	  	 	17	 
	 VIII
	  	DEATH BENEFITS	  	 	17	 
		  	8.1.	  	Death Prior to Commencement of Benefits	  	 	17	 
		  	8.2.	  	Death After Commencement of Benefits	  	 	18	 
	 IX
	  	ADMINISTRATION	  	 	18	 
		  	9.1.	  	Authority of Administrator	  	 	18	 
		  	9.2.	  	Participant’s Duty to Furnish Information	  	 	18	 
		  	9.3.	  	Interested Member of Administrator	  	 	18	 
		  	9.4.	  	Indemnification	  	 	18	 
		  	9.5.	  	Claims Procedure	  	 	19	 
		  	9.6.	  	Special Procedure for Disability Claims	  	 	20	 
	 X
	  	AMENDMENT AND TERMINATION	  	 	24	 
	 XI
	  	MISCELLANEOUS	  	 	24	 
		  	11.1.	  	No Implied Rights; Rights on Termination of Service	  	 	24	 
		  	11.2.	  	No Right to Continued Service	  	 	24	 
		  	11.3.	  	Nature of the Plan	  	 	24	 
		  	11.4.	  	Nontransferability	  	 	25	 
		  	11.5.	  	Successors and Assigns	  	 	25	 
		  	11.6.	  	Payment with Respect to Incapacitated Persons	  	 	25	 
		  	11.7.	  	Arbitration	  	 	26	 
		  	11.8.	  	Gender and Number	  	 	26	 
		  	11.9.	  	Headings	  	 	26	 
		  	11.10.	  	Severability	  	 	26	 
		  	11.11.	  	Effect on Other Employee Benefit Plans	  	 	26	 
		  	11.12.	  	Non-U.S. Participants.	  	 	26	 
		  	11.13.	  	Applicable Law	  	 	27	 

  
 -iii- 

 WOODWARD EXECUTIVE BENEFIT PLAN 

I     PURPOSE AND EFFECTIVE DATE. 

 

	 	1.1.	 Purpose. The Woodward Executive Benefit Plan has been established by Woodward, Inc. to attract
and retain certain key members by: 

  

	 	(a)	 providing a tax-deferred capital accumulation vehicle to supplement
such members’ individual retirement contributions, thereby encouraging savings for retirement, and 

  

	 	(b)	 supplementing certain members’ retirement income available under the Woodward Retirement Savings Plan (the
“RSP”), which is otherwise limited pursuant to the rules and regulations of the Internal Revenue Code of 1986, as amended (the “Code”). 

  

	 	1.2.	 Effective Date. The Plan was originally effective January 1, 2001 and was subsequently
amended and restated effective January 1, 2007, January 1, 2009 and September 18, 2013. The Plan is hereby amended and restated generally effective as of June 1, 2018, except as otherwise stated herein. The Plan shall remain in
effect until terminated in accordance with Article X. 

  

	 	1.3.	 History. The Woodward Governor Company Amended and Restated Unfunded Deferred Compensation Plan
No. 1 (the “DC Plan No. 1”) and the Woodward Governor Company Unfunded Deferred Compensation Plan No. 2 (the “DC Plan No. 2) were merged with and into this Plan effective January 1, 2001. The Plan is intended
to be an amendment, restatement and continuation of such plans for periods following the merger date. As of January 26, 2011, the Company changed its name to “Woodward, Inc.” In connection with the change of the Company’s name,
on and after January 26, 2011, this Plan shall be known as the “Woodward Executive Benefit Plan.” 

  

	 	1.4.	 Code Section 409A. This Plan is intended to be a nonqualified
deferred compensation plan within the meaning of Section 409A of the Code. The provisions of this Plan shall be interpreted, construed and administered in a manner necessary to comply with the requirements of Code Section 409A and
applicable regulations and other guidance issued thereunder. 

 II     DEFINITIONS.

 When used in the Plan and initially capitalized, the following words and phrases shall have the meanings indicated: 

 

	 	2.1.	 “Account” means the recordkeeping account established for each Participant in the Plan for
purposes of accounting for the amount of the Participant’s: 

  

	 	(a)	 Deferral Contribution Amounts deferred and credited in accordance with Article IV each year, if any,

	 	(b)	 Supplemental Benefit Amounts determined and credited in accordance with Article V each year, if any, and

  

	 	(c)	 account balance, if any, under the prior DC Plan No. 1 and/or prior DC Plan No. 2 on the day
immediately preceding the original effective date of this Plan, 

 all adjusted periodically to reflect the hypothetical
investment return on such amounts in accordance with Article VI and distributions in accordance with Article VII. 
  

	 	2.2.	 “Administrator” means the Compensation Committee of the Board or such other individual or
committee appointed and delegated by the Board to administer the Plan in accordance with Article IX. To the extent so delegated, the term “Administrator” hereunder shall be deemed to refer to such individual or committee. The Compensation
Committee shall take such actions it deems necessary or desirable to ensure that such individual or committee has sufficient and appropriate authority for carrying out the intent and purpose of the Plan. 

 

	 	2.3.	 “Affiliate” means any corporation, partnership, joint venture, trust, association or other
business enterprise which is a member of the same controlled group of corporations, trades or businesses as the Company within the meaning of Code Section 414(b) or (c); provided, however, that for purposes only of the term
“Affiliate” when used in the definition of “Separation from Service” below, in applying Code Section 1563(a)(1), (2), and (3) in determining a controlled group of corporations under Code Section 414(b), the
language “at least 50 percent” shall be used instead of “at least 80 percent” each place it appears in Code Section 1563(a)(1), (2), and (3), and in applying Treasury Reg. §
1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c), “at least 50 percent” shall be used
instead of “at least 80 percent” each place it appears in Treasury Reg. § 1.414(c)-2. 

  

	 	2.4.	 “Base Salary” means a Participant’s base salary in effect for a given Plan Year as
reflected in the personnel records of the Company. 

  

	 	2.5.	 “Beneficiary” means the person or entity designated by the Participant to receive the
Participant’s Plan benefits in the event of the Participant’s death. If the Participant does not designate a Beneficiary, or if the Participant’s designated Beneficiary predeceases the Participant, the Participant’s estate shall
be the Beneficiary under the Plan. 

  

	 	2.6.	 “Board” means the Board of Directors of the Company. 

 

	 	2.7.	 “Bonus” means for a given Plan Year any incentive compensation awarded and payable to a
Participant in the Plan Year for performance over one or more fiscal-year performance periods under the Woodward Management Incentive Plan, the Woodward Long Term Incentive Plan, and/or any other bonus or incentive compensation plan designated by
the Administrator from time to time for inclusion within this definition for deferral purposes. 

  
 -2- 

	 	2.8.	 “Change in Control” shall be deemed to have occurred if: 

 

	 	(a)	 any “person” (as defined in Section 13(d) and 14(d) of the Exchange Act) (excluding for this
purpose the Company or any subsidiary of the Company, or any employee benefit plan of the Company or any subsidiary of the Company, or any person or entity organized, appointed or established by the Company for or pursuant to the terms of such plan
which acquires beneficial ownership of voting securities of the Company) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) directly or indirectly of securities of
the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities; provided, however, that no Change in Control shall be deemed to have occurred: 

 

	 	(i)	 as the result of an acquisition of securities of the Company by the Company which, by reducing the number of
voting securities outstanding, increases the direct or indirect beneficial ownership interest of any person to fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities, but any subsequent increase
in the direct or indirect beneficial ownership interest of such a person in the Company shall be deemed a Change in Control; or 

  

	 	(ii)	 as a result of the acquisition directly from the Company of securities of the Company representing less than
fifty percent (50%) of the voting power of the Company; or 

  

	 	(iii)	 if the Board determines in good faith that a person who has become the beneficial owner directly or indirectly
of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities has inadvertently reached that level of ownership interest, and if such person divests as promptly
as practicable a sufficient amount of securities of the Company so that the person no longer has a direct or indirect beneficial ownership interest in fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding
securities; or 

  

	 	(b)	 during any period of two (2) consecutive years (not including any period prior to the original effective
date (as set forth in Section 1.2 above) of the Plan), individuals who at the beginning of such two-year period constitute the Board and any new director or directors (except for any director designated
by a person who has entered into an agreement with the Company to effect a transaction described in paragraph (a) above or 

  
 -3- 

	 	
paragraph (c) below) whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least
two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to
constitute at least a majority of the Board (such individuals and any such new directors being referred to as the “Incumbent Board”); or 

  

	 	(c)	 approval by the shareholders of the Company of a complete liquidation or dissolution of the Company; or

  

	 	(d)	 consummation of: 

  

	 	(i)	 an agreement for the sale or disposition of the Company or all or substantially all of the Company’s
assets, 

  

	 	(ii)	 a plan of merger or consolidation of the Company with any other corporation, or 

 

	 	(iii)	 a similar transaction or series of transactions involving the Company (any transaction described in
subparagraphs (i) and (ii) of this paragraph (d) being referred to as a “Business Combination”), in each case unless after such a Business Combination: 

 

	 	(a)	 the shareholders of the Company immediately prior to the Business Combination continue to own, directly or
indirectly, more than fifty-one percent (51%) of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the new (or continued) entity
(including, but not by way of limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s former assets either directly or through one or more subsidiaries) immediately after such
Business Combination, in substantially the same proportion as their ownership in the Company immediately prior to such Business Combination, and 

  

	 	(b)	 at least a majority of the members of the board of directors of the entity resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination. 

 

	 	2.9.	 “Code” means the Internal Revenue Code of 1986, as amended. 

 

	 	2.10.	 “Company” means Woodward, Inc. and any successor thereto. 

  
 -4- 

	 	2.11.	 “Deferral Contribution Amounts” means the amounts of Base Salary, Director Compensation and/or
Bonus (as applicable) deferred by a Participant, if any, and credited to his or her Account in accordance with Article IV but such amounts specifically and expressly do not include any Prior Account Balance of such Participant.

  

	 	2.12.	 “Deferral Election” means the election made in writing (or any other format approved by the
Administrator) by an Eligible Member to defer such Eligible Member’s Base Salary, Director Compensation and/or Bonus (as applicable) otherwise payable for any given Plan Year in accordance with Article IV. 

 

	 	2.13.	 “Director Compensation” means any and all (i) retainer or committee fees,
(ii) attendance fees, (iii) chairman or lead director fees, and (iv) other cash compensation directly pertaining to the provision of services on the Board or a committee thereof, and in each case prior to any reduction therein,
payable in cash to a Participant who is a non-employee director of the Board for services as a member of the Board. 

  

	 	2.14.	 “Disability” means that the Participant is, by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving disability benefits under the Company’s long-term disability plan for a period of not less
than three months. If a Participant does not participate in such a long term disability plan, then Disability shall mean that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, as determined in the sole discretion of the Administrator. 

 

	 	2.15.	 “Distribution Election” means the election made by a Participant in writing (or any other
format approved by the Administrator) for a Plan Year regarding the timing and form of payment of his or her Deferral Contribution Amounts under Article IV or Supplemental Benefit Amounts under Article V with respect to such Plan Year or, where
applicable, made under prior DC Plan No. 1 or prior DC Plan No. 2 in respect of the timing and form of payment of his or her Prior Account Balance. 

 

	 	2.16.	 “Early Retirement Date” means the date on which any Participant incurs a Separation from
Service on or after he has attained age 55 but before he has attained age 65. 

  

	 	2.17.	 “Election Period” means the period(s) specified by the Administrator during which a Deferral
Election may be made with respect to a Participant’s Base Salary, Director Compensation and/or Bonus (as applicable) otherwise payable for a Plan Year, or a Distribution Election may be made with respect to payment of Deferred Compensation
Amounts or Supplemental Benefit Amounts credited for such Plan Year. 

  
 -5- 

	 	2.18.	 “Eligible Member” means a member of the Company or an Affiliate or a non-employee member of the Board who has been selected by the Administrator to participate in the Plan in accordance with Article III. 

 

	 	2.19.	 “Exchange Act” means the Securities and Exchange Act of 1934. 

 

	 	2.20.	 “FICA” means the employment tax imposed on a member’s income under the Federal Insurance
Contributions Act (Chapter 21 of the Code) which is comprised of Old-Age, Survivors and Disability Insurance and Hospital Insurance. 

 

	 	2.21.	 “Investment Fund or Funds” means the investment funds designated by the Administrator as the
basis for determining the hypothetical investment return to be credited in accordance with Article VI to Participants’ Accounts. As of the effective date of this amendment and restatement of the Plan, the Investment Funds shall mirror the
investment funds available under the RSP, including the investment in Woodward, Inc. Common Stock under the Company Stock Component under the RSP. The Administrator, in its sole discretion, may change the Investment Funds at such times as it deems
appropriate. Any Investment Fund alternatives that are different than those offered under the RSP shall be described in an Appendix to the Plan. 

  

	 	2.22.	 “Normal Retirement Date” means the date on which any Plan Participant incurs a Separation from
Service on or after he has attained age 65. 

  

	 	2.23.	 “Participant” means an Eligible Member who has: 

 

	 	(a)	 been notified by the Administrator of his eligibility to participate in the Plan, and 

 

	 	(b)	 either: 

  

	 	(i)	 completed and submitted a Deferral Election in accordance with Section 4.2, or 

 

	 	(ii)	 had credited to his Account, by the Company, Supplemental Benefit Amounts in accordance with Article V, or

  

	 	(iii)	 had an account balance under the prior DC Plan No. 1 and/or the prior DC Plan No. 2 on the day
immediately preceding the original effective date of this Plan. 

  

	 	2.24.	 “Plan” means the Woodward Executive Benefit Plan, as amended from time to time.

  

	 	2.25.	 “Plan Year” means the 12 consecutive month period beginning each January 1.

  
 -6- 

	 	2.26.	 “Prior Account Balance” means an Eligible Member’s account balance(s), if any, under the
prior DC Plan No. 1 and/or prior DC Plan No. 2 which were transferred to this Plan by the Company and credited to his Account pursuant to Section 3.1. 

 

	 	2.27.	 “Retirement” means Separation from Service by a Participant on his Early Retirement Date or
Normal Retirement Date. 

  

	 	2.28.	 “Separation from Service” means, in respect of a Participant, any termination of employment
with the Company and all its Affiliates, or in the case of a non-employee director, any termination of service on the Board, due to Retirement, death, or other reason; provided, however, that for Participants
who are employees of the Company or any of its Affiliates, no Separation from Service for reasons other than death shall be deemed to occur for purposes of the Plan while the Participant is on military leave, sick leave, or other bona fide leave of
absence that does not exceed six months or, if longer, the period during which the Participant’s right to reemployment with the Company or its Affiliates is provided either under applicable statute or by contract; and provided further that, if
the period of leave exceeds six months and the Participant does not retain a right to reemployment under an applicable statute or by contract, a Separation from Service will be deemed to have occurred on the first day following such six-month period. Whether or when a Separation from Service has occurred for purposes of the Plan shall be determined based on the meaning of “separation from service” under Code Section 409A and the
regulations promulgated thereunder and, accordingly, shall be based on whether the facts and circumstances indicate that the Company and its Affiliates and the Participant reasonably anticipate that no further services will be performed after a
certain date or that the level of bona fide services the Participant will perform after such date (whether as an employee, an independent contractor or a non-employee director) will permanently decrease to no
more than 20% of the average level of bona fide services performed (whether as an employee, an independent contractor or a non-employee director) over the immediately preceding
36-month period (or the full period of services to the Company and its Affiliates if the Participant has been providing services to the Company and its Affiliates less than 36 months). A Participant shall be
presumed for this purpose to have a Separation from Service where the level of bona fide services decreases to a level equal to 20% or less of such average level of services. 

 

	 	2.29.	 “Specified Employee” means a Participant who is a key employee (as defined in Code
Section 416(i) without regard to Code Section 416(i)(5)) of the Company or an Affiliate. For purposes of this definition, a Participant is a key employee if the Participant meets the requirements of Code Section 416(i)(1)(A)(i), (ii)
or (iii) (applied in accordance with the regulations thereunder and disregarding Code Section 416(i)(5)) at any time during the 12-month period ending on any December 31st. If a Participant is a key
employee as of any December 31st, that Participant is treated as a Specified Employee for the 12-month period beginning on the April 1st following the relevant December 31st. Notwithstanding the foregoing, a
Participant who otherwise would be a Specified Employee under the preceding sentence shall not be a Specified Employee for purposes of the Plan unless, as of the date of the Participant’s Separation from Service, stock of such Company or an
Affiliate thereof is publicly traded on an established securities market or otherwise. 

  
 -7- 

	 	2.30.	 “Supplemental Benefit Amount” means the amount computed on behalf of the Participant, if any,
and credited to his or her Account in accordance with Article V. 

  

	 	2.31.	 “Valuation Date” means a date on which the Investment Funds are valued and the
Participant’s Account is adjusted for any resulting gains or losses. The Valuation Date shall be each day the New York Stock Exchange is open for business, or such other date(s) occurring at least once every calendar year as the Administrator
shall determine; provided, however, that for purposes of Articles VII and VIII and Section 11.4 only, Valuation Date shall mean the 15th day of each calendar month or, if it is not a day the New York Stock Exchange is open for business, the
next succeeding day the New York Stock Exchange is open for business. 

III    PARTICIPATION. 
  

	 	3.1.	 Participation. The Administrator shall select those members eligible to participate in the Plan.
In selecting Eligible Members, the Administrator shall take into consideration such factors as it deems relevant in connection with accomplishing the purposes of the Plan. An Eligible Member shall become a Participant in the Plan when (A) he is
notified in writing by the Administrator (or in any other format approved by the Administrator) that he is eligible to participate in the Plan, and (B) he has either (1) completed and submitted a Deferral Election to the Administrator in
accordance with Article IV, or (2) had credited to his Account, by the Company, Supplemental Benefit Amounts in accordance with Article V, or (3) had credited to his Account, by the Company, his account balance, if any, under the prior DC
Plan No. 1 and/or the prior DC Plan No. 2 on the day immediately preceding the original effective date of this Plan. 

  

	 	3.2.	 ERISA Exemption. It is the intent of the Company that the Plan be exempt from Parts 2, 3 and 4 of
Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), as an unfunded plan that is maintained by the Company primarily for the purpose of providing deferred compensation for a select group of
management of highly compensated employees and non-employee directors serving on the Board (the “ERISA Exemption”). Notwithstanding anything to the contrary in Section 3.1 or in any other
provision of the Plan, the Administrator may in its sole discretion exclude any one or more members from eligibility to participate or from participation in the Plan, may exclude any Participant from continued participation in the Plan, and may take
any further action it considers necessary or appropriate if the Administrator reasonably determines in good faith that such exclusion or further action is necessary in order for the Plan to qualify for, or to continue to qualify for, the ERISA
Exemption. 

  
 -8- 

 IV     DEFERRAL CONTRIBUTION AMOUNTS. 

 

	 	4.1.	 Permissible Deferrals under the Plan. An Eligible Member may, by filing a Deferral Election in
accordance with Section 4.2 below, elect to defer (as applicable): 

  

	 	(a)	 Deferral of Base Salary: up to 50% of his or her Base Salary for a Plan Year, in increments of
1%; 

  

	 	(b)	 Deferral of Specified Bonus(es): up to 100% of his or
her specified Bonus for a Plan Year, in increments of 5%, or, in the alternative, a specific dollar amount of $1,000 or more (with separate Deferral Elections being made available for each type of Bonus, as applicable); and 

 

	 	(c)	 Deferral of Director Compensation: up to 100% of his or her Director Compensation for a
Plan Year, in increments of 1%. 

  

	 	4.2.	 Deferral Elections. A Participant’s Deferral Election shall be in writing (or in any other
form approved by the Administrator), and shall be filed with the Administrator at such time and in such manner as the Administrator shall provide, subject to the following: 

 

	 	(a)	 A Deferral Election pertaining to Base Salary or Director Compensation shall be made during the Election Period
established by the Administrator which shall end no later than December 31 preceding the first day of the Plan Year in which the services in respect of which such Base Salary or Director Compensation would otherwise be payable are performed. A
Deferral Election pertaining to a Bonus for a Plan Year shall be made during the Election Period established by the Administrator which shall end no later than the last day of the Company’s fiscal year next preceding the fiscal year which
contains the first day of the performance period (which shall consist of one or more consecutive fiscal years of the Company) to which such Bonus relates and after the end of which such Bonus, absent the Deferral Election, would be paid.
Notwithstanding the foregoing, with respect to any portion of a Bonus which constitutes “performance-based compensation,” as defined under Code Section 409A, such Deferral Election shall be made within the Election Period prescribed
by the Administrator which shall end no later than the date that is six months before the end of the applicable fiscal year performance period(s) with respect to which the Bonus is payable but in no event after the Bonus amount has become readily
ascertainable; provided, however, that any such Deferral Election may only be made during an Election Period established under this sentence if the Participant has performed services continuously from the later of the beginning of such performance
period(s) or the date the performance criteria is established through the date the Deferral Election is made. 

  
 -9- 

	 	(b)	 At the discretion of the Administrator, a Deferral Election may be made by 

 

	 	(i)	 newly-hired or newly-elected (as applicable) Eligible Members for the Plan Year in which they commence
employment or service on the Board, or 

  

	 	(ii)	 a member who otherwise becomes an Eligible Member after the beginning of a Plan Year for the Plan Year in which
he or she first becomes an Eligible Member (as determined consistent with Code Section 409A and the regulations thereunder). 

Notwithstanding the preceding sentence or Section 4.2(a), such Deferral Elections must be made within thirty (30) days of the
Eligible Member’s date of hire or date of election (as applicable), or the date the member becomes an Eligible Member, whichever applies. However, such Deferral Elections shall be prospective and shall apply only to Base Salary or Director
Compensation that would otherwise be paid to the Eligible Member with respect to services performed after the Deferral Election is made and only to a portion of a Bonus (if applicable) for the applicable performance period(s) that shall not exceed
the total Bonus amount prorated for the number of days remaining in the relevant performance period(s) after the Deferral Election is made relative to the total number of days in the performance period(s). 

 

	 	(c)	 Once made, Deferral Elections for Base Salary, Director Compensation or Bonus (as applicable) shall remain in
effect only for the Plan Year for which each such election is made. 

 Notwithstanding any provision herein to the
contrary, Deferral Elections with respect to a given Plan Year shall be irrevocable on the date filed with the Administrator, except if the Administrator, in its sole discretion, determines that the Participant has suffered an unforeseeable
emergency as provided in Section 7.4 or, before the end of the Election Period in which the Deferral Election was made, revokes the election because a bona fide administrative mistake was made. If a Deferral Election is cancelled in accordance
with Section 7.4, the Participant may not make a new Deferral Election until the Election Period established by the Administrator in accordance with Section 4.2(a) for making deferrals for the Plan Year commencing at least 12 months after
the unforeseeable emergency. 
  

	 	(d)	 At the time a Deferral Election is made with respect to Base Salary, Director Compensation or
Bonus (as applicable) for a Plan Year, the Participant shall also make a Distribution Election with respect to such Plan Year deferrals in accordance with Article VII. 

 

	 	4.3.	 Crediting of Deferral Elections. The amount of Base Salary, Director Compensation or Bonus (as
applicable) that a Participant elects to defer under the 

  
 -10- 

	 	
Plan shall be credited by the Company to the Participant’s Account as Deferral Contribution Amounts as of the date such Base Salary, Director Compensation or such Bonus would have been paid
to the Participant absent the Deferral Election. 

  

	 	4.4.	 Vesting. A Participant’s Deferral Contribution Amounts for each Plan Year shall be fully
vested at the time credited to such Participant’s Account. 

  

	 	4.5.	 Deferred Contribution Amounts Subject to FICA at Time of Deferral. Except with respect to
deferrals of Director Compensation, a Participant’s Deferred Contribution Amounts are subject to FICA at the time the amounts are contributed to the Plan for deferral. The gross amount of the Participant’s Base Salary deferral and Bonus
deferral will be contributed to the Participant’s Account and the corresponding FICA tax due will be deducted from that portion of the Participant’s Base Salary or Bonus not deferred, as the case may be. Notwithstanding the foregoing, if a
Participant has elected to defer a percentage of his or her Bonus such that contribution of the gross amount of the Bonus deferred would leave insufficient funds to remit the applicable FICA tax to the government, then the applicable Bonus amount
contributed to the Participant’s Account shall be made net of the smallest amount of FICA tax needed to satisfy such liability which cannot be covered from the portion of Bonus not deferred. 

V     SUPPLEMENTAL BENEFIT AMOUNT. 

 

	 	5.1.	 Computation of Supplemental Benefit Amount. An Eligible Member designated by the Administrator
for participation under the Plan, other than an Eligible Member who is a non-employee director serving on the Board, shall be entitled to a Supplemental Benefit Amount for each Plan Year that he is an Eligible
Member equal to: 

  

	 	(a)	 the excess, if any, of the amount of contributions the Participant otherwise would have been entitled to have
credited to a separate account for his benefit as Company Matching Contributions, Grandfathered Contributions and Company Stock Component Contributions under the RSP for a given year if such contribution amounts were calculated without regard to the
following: 

  

	 	(i)	 Code Section 415, 

 

	 	(ii)	 Code Section 401(a)(17), 

 

	 	(iii)	 Code Section 401(k)(3), 

 

	 	(iv)	 Code Section 401(m)(2), 

 

	 	(v)	 Code Section 402(g), and 

 

	 	(vi)	 any Deferral Election made by the Participant for such given year under Article IV of this Plan,
over 

  
 -11- 

	 	(b)	 the actual amount of such contributions which the Participant is entitled to have credited to a separate
account for his benefit for such given year under the RSP. 

 Notwithstanding the foregoing, if after the beginning of a
Plan Year, a Participant changes his or her deferral/contribution elections under the RSP in a manner that would affect the amount of Supplemental Benefit Amount credits based on Company Matching Contributions under the RSP for such Plan Year, the
Supplemental Benefit Amount credits to be credited for such Plan Year shall be appropriately reduced or increased, as the case may be, provided that the aggregate Supplemental Benefit Amount for such Plan Year based on Company Matching Contributions
under the RSP does not exceed 100% of the matching contributions that would have been provided under the RSP for such Plan Year absent any plan-based restrictions that reflect limits on qualified plan contributions under the Code. 

 

	 	5.2.	 Vesting. A Participant’s Supplemental Benefit Amounts calculated by the Company for each
Plan Year shall be fully vested at the time credited to such Participant’s Account. 

  

	 	5.3.	 Crediting of Supplemental Benefit Amount. The Supplemental Benefit Amounts computed in
Section 5.1 above for each Plan Year shall be credited by the Company to the Participant’s Account as soon as reasonably practicable. 

  

	 	5.4.	 Distribution Elections. During the Election Period pertaining to the deferral of Base Salary for
each Plan Year, a Participant shall also make a Distribution Election in accordance with Article VII with respect to the distribution of any Supplemental Benefit Amount to be credited to his or her Account for such Plan Year. 

VI     ACCOUNTS AND INVESTMENTS. 

 

	 	6.1.	 Valuation of Accounts. The Administrator shall establish an Account for each Participant who:

  

	 	(a)	 has filed a Deferral Election to defer Base Salary, Director Compensation or Bonus (as applicable); or

  

	 	(b)	 has been credited with a Supplemental Benefit Amount; or 

 

	 	(c)	 has a Prior Account Balance on the effective date of this Plan. 

  
 -12- 

 Such Account shall be credited with a Participant’s Deferral Contribution Amounts and
Supplemental Benefit Amounts as set forth in Sections 4.3 and 5.3, respectively, and with the Participant’s Prior Account Balance, if any. As of each Valuation Date, the Participant’s Account shall be adjusted upward or downward to
reflect: 
  

	 	(d)	 the investment return to be credited as of such Valuation Date pursuant to Section 6.3 below; and

  

	 	(e)	 the amount of distributions, if any, to be debited as of that Valuation Date under Article VII.

 Each Participant will receive a statement of his or her Account balance at least annually. 

 

	 	6.2.	 Hypothetical Investment Funds. Each Participant generally may direct the manner in which his or
her Account shall be deemed invested in and among the Investment Funds; provided, however, that each investment election made by a Participant who is not subject to the Woodward Officer/Director Stock Ownership Guidelines, as in effect
from time to time (the “Guidelines”), shall, notwithstanding anything to the contrary in the Plan, be strictly subject to the consent of the Administrator which, in its sole discretion, may elect to honor the Participant’s request or
have the Account deemed invested in another manner. Such deemed investment election shall be made in accordance with such procedures as the Administrator may establish and any such election shall be made in whole percentages. The investment
authority shall remain at all times with the Administrator. The selection of Investment Funds by a Participant shall be for the sole purpose of determining the rate of return to be credited to his or her Account and shall not be treated or
interpreted in any manner whatsoever as a requirement or direction to actually invest assets in any Investment Fund or any other investment media. 

Notwithstanding any provision of the Plan to the contrary, a Participant who is subject to the Guidelines may revoke an Investment Fund
election (including an election for the Investment Fund based on Woodward, Inc. Company Common Stock (“Company Common Stock”)) at any time in accordance with such procedures as the Administrator may establish; provided, however, that if a
Participant who is not subject to the Guidelines is granted permission to make an investment election for the Investment Fund based on Company Common Stock, the Participant may only revoke such Investment Fund election with the prior approval of the
Administrator. Any such revocation shall only be effective with respect to future deferrals and credits. Any portion of the Participant’s Account deemed invested in Company Common Stock shall continue to be deemed to be invested in Company
Common Stock and may not be transferred to any other hypothetical Investment Fund. The applicable value of Company Common Stock as of any Valuation Date shall be equal to the closing price of such common stock on NASDAQ quoted by the Wall Street
Journal for the applicable Valuation Date. No portion of any Participant’s Account attributable to Supplemental Benefit Amounts credited on or after June 1, 2018 may initially be deemed invested in Company Common Stock. 

 

	 	6.3.	 Crediting of Investment Return. Each Participant’s Account shall be credited on each
Valuation Date with his or her allocable share of investment gains or losses of 

  
 -13- 

	 	
each Investment Fund in which his or her Account is hypothetically invested. The Administrator shall adopt a protocol for allocating the deemed investment gains and losses similar to that used in
the RSP. Notwithstanding any provision herein to the contrary, if a Participant elects to invest in the hypothetical Investment Fund for Company Common Stock, such Participant’s Account shall also be credited with any deemed
dividends paid during the period beginning with the immediately preceding Valuation Date and ending with the current Valuation Date. 

  

	 	6.4.	 Changing Investment Fund Options. Subject to the provisions of this Article VI, a Participant
may, on a daily basis, make a new election with respect to the hypothetical Investments Funds in which his or her Account shall be deemed invested in the future. Any such election shall be made in the form specified by the Administrator.

  

	 	6.5.	 Investment Alternatives After Death. For periods after the Valuation Date coincident with or next
following a Participant’s death and pursuant to procedures established by the Administrator, the Participant’s Account balance pertaining to Deferral Contribution Amounts, Supplemental Benefit Amounts, if any, and/or Prior Account Balance,
if any, shall be reallocated and reinvested among the Investment Funds in accordance with the Beneficiary’s hypothetical investment direction. 

VII    PAYMENT OF BENEFITS. 

 

	 	7.1.	 Distribution at Specific Future Date. During the Election Period(s) specified by the
Administrator for making a Deferral Election for a Plan Year, an Eligible Member may elect one or more future Valuation Dates (which must be one or more specific dates) as of which all or a portion of his or her Deferral Contribution Amounts to be
deferred and any Supplemental Benefit Amounts to be credited for such Plan Year, and earnings thereon, shall be distributed. Participants who participated prior to January 1, 2001 in prior DC Plan No. 1 or prior DC Plan No. 2 also had
the opportunity to make such an election(s) under such plans with respect to all or a portion of their Prior Account Balances and earnings thereon, which elections shall continue in effect under this Section 7.1 of the Plan. Any distribution as
of a specific future date made to an Eligible Member pursuant to any such elections shall be paid in a single lump-sum payment or substantially equal annual, quarterly or monthly installments for a specified
period up to but not exceeding 10 years, as provided in such election. Any such specific future date shall be a Valuation Date in a specific future year which is at least five Plan Years after the Plan Year for which the Deferral Contribution
Amounts or Supplemental Benefit Amounts are credited to such Participant’s Account; provided, however, that only one distribution date per Plan Year may be elected under this Section 7.1. If the Participant elects a distribution to be made
or commenced at one or more specific future dates and incurs a Separation from Service or a Disability prior to any such date, such election shall be without further effect and distribution shall commence pursuant to Section 7.2, 7.3 or 8.1, as
applicable. The amount of each installment payment to be made under any installment payment election shall be equal to the 

  
 -14- 

	 	
quotient obtained by dividing the balance in the portion of the Eligible Member’s Account subject to the election as of the Valuation Date as of which the installment payment is to be made
by the number of installment payments remaining to be made at the time of such calculation. A Distribution Election under this Section 7.1 may be changed to a Valuation Date (which must be a specific date) in a future Plan Year or changed to a
different form of payment if the following requirements are satisfied: (i) the new Distribution Election must be made at least 12 months in advance of the originally scheduled distribution or distribution commencement date and may not take
effect for at least 12 months after the date the new Distribution Election is made; (ii) the new Distribution Election must require a revised distribution or distribution commencement date of at least five Plan Years from the date such payment
would otherwise have been made or commenced; and (iii) the new Distribution Election shall not accelerate the schedule of any payment, except as permitted under the regulations under Code Section 409A. Notwithstanding the foregoing, any
amounts distributable under this Section 7.1 shall be paid or commenced, as the case may be, on or as soon as practicable following the Valuation Date elected and must be made or commenced within the same taxable year of the elected Valuation
Date or, if later and provided the Participant is not permitted, directly or indirectly, to designate the taxable year of payment, the 15th day of the third calendar month following the elected Valuation Date. 

 

	 	7.2.	 Distribution Upon Retirement or Disability. Subject to Sections 7.7 and 7.8 and the provisions of
this Section 7.2, if a Participant incurs a Separation from Service by reason of Retirement or incurs a Disability, distribution of the Participant’s Account (excluding any portion thereof then being paid in installments pursuant to
Section 7.1) shall be made or commenced on the Valuation Date of the calendar month beginning next following the date such Participant incurs the Separation from Service or Disability or as soon thereafter as is practicable. Distribution under
this Section 7.2 shall be made: 

  

	 	(a)	 in a lump sum; or 

  

	 	(b)	 in substantially equal annual, quarterly or monthly installments for a specified period up to but not exceeding
10 years, 

 as elected by the Participant on his or her Distribution Election(s). The amount of each installment payment
to be made under any installment payment election shall be equal to the quotient obtained by dividing the balance in the portion of the Participant’s Account subject to the election as of the Valuation Date as of which the installment payment
is to be made by the number of installment payments remaining to be made at the time of such calculation. A Distribution Election under this Section 7.2 may be changed to another time and/or form of payment if the following requirements are
satisfied: (i) the new Distribution Election must be made at least 12 months in advance of the originally scheduled distribution or distribution commencement date and may not take effect for at least 12 months after the date the new
Distribution Election is made; (ii) the new Distribution Election must require a revised distribution or distribution commencement date of 

  
 -15- 

 
at least five Plan Years from the date such payment would otherwise have been made or commenced; and (iii) the new Distribution Election shall not accelerate the schedule of any payment,
except as permitted under the regulations under Code Section 409A. A Participant cannot alter or change his Distribution Election once he has begun to receive payments under this Section 7.2 of the Plan. If the Participant does not have in
effect a valid Distribution Election with respect to all or any portion of his or her Account on file with the Administrator at the time of Retirement or Disability, the Participant’s Account or applicable portion thereof not covered by a valid
Distribution Election shall be paid in a single sum under paragraph (a) above. Notwithstanding any provision in the Plan to the contrary, distributions made under this Section 7.2 must be made or commenced within 90 days following the
Participant’s Separation from Service or Disability, as the case may be, and the Participant shall not have any right to designate the year of payment. 
  

	 	7.3.	 Distribution On Other Termination of Service. Subject to Sections 7.7 and 7.8 and the provisions
of this Section 7.3, if a Participant incurs a Separation from Service for any reason other than Retirement or death and the Participant has not incurred a Disability prior thereto, the Participant’s Account (excluding any portion thereof
then being paid in installments under Section 7.1) shall be paid in a lump sum payment as of the Valuation Date of the calendar month beginning next following such Separation from Service or as soon thereafter as is practicable. Notwithstanding
any provision in the Plan to the contrary, distributions made under this Section 7.3 must be made within 90 days following the Participant’s Separation from Service and the Participant shall not have any right to designate the year of
payment. 

  

	 	7.4.	 Unforeseeable Emergency. Prior to the distribution date otherwise scheduled under the Plan as of
which payment is to be made or commenced, upon showing an unforeseeable emergency, a Participant may request that the Administrator accelerate payment of all or a portion of his or her Deferral Contribution Amounts, Supplemental Benefit Amounts,
Prior Account Balance, and earnings thereon, in an amount not exceeding the amount necessary to meet the unforeseeable emergency, plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account
the extent to which such unforeseeable emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself
cause severe financial hardship). For purposes of the Plan, an unforeseeable emergency means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent of
the Participant (as specified in Code Section 409A), loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.
The determination of an unforeseeable emergency shall be made by the Administrator in its sole discretion, based on such information as the Administrator shall deem to be necessary and relevant and the requirements of Section 409A of the Code,
and such decision shall be final and binding on all 

  
 -16- 

	 	
parties. If the Administrator authorizes a withdrawal due to an unforeseeable emergency pursuant to this Section 7.4, the Participant shall not be eligible to file a new Deferral Election
until the Election Period established by the Administrator in accordance with Section 4.2(a) for the Plan Year commencing at least 12 months after such withdrawal, and the Participant’s Deferral Election(s) for the Plan Year in which the
withdrawal is made shall be cancelled. Notwithstanding any provision in the Plan to the contrary, distributions made under this Section 7.4 must be made as of a Valuation Date within 90 days following the Administrator’s determination of
an unforeseeable emergency and the Participant shall not have any right to designate the year of payment. 

  

	 	7.5.	 Time and Form of Elections. Subject to the provisions of Section 4.2(d) and 5.4, all
Distribution Elections under this Article VII shall be made at the time and in the form established by the Administrator and shall be subject to such other rules and limitations that the Administrator, in its sole discretion, may establish to the
extent permissible under and consistent with Code Section 409A. 

  

	 	7.6.	 Form of Payment and Withholding. All payments under the Plan shall be made in cash and are
subject to the withholding of all applicable federal, state and local and foreign governmental taxes; provided, however, any payment under the Plan that is attributable to the portion of a Participant’s Account deemed invested in Company Common
Stock shall be made in whole shares of Company Common Stock, with fractional shares paid in cash. 

  

	 	7.7.	 Exception for Specified Employees. Notwithstanding any provision to the contrary in this Article
VII of the Plan, if a Participant is a Specified Employee at the time when his or her Separation from Service occurs for any reason other than death, such Participant’s distribution or distribution commencement date in accordance with
Section 7.2 or Section 7.3 on account of such Separation from Service shall be adjusted to instead occur on the date that is six (6) months following the relevant distribution or distribution commencement date. 

 

	 	7.8.	 Timing of Payments. Notwithstanding any provision of the Plan to the contrary, until paid, any
amount distributable from a Participant’s Account shall continue to be adjusted under Article VI to reflect investment returns of the investments in which the Account is deemed invested, and the amount distributable shall be valued as of the
Valuation Date coincident with or next preceding the date payment is made. In addition, if calculation of the amount of a payment is not administratively practicable due to events beyond the control of the Participant or his or her Beneficiary, a
payment will be treated as made on the specified date for purposes of Code Section 409A if the payment is made during the first calendar year in which the calculation of the amount of the payment is administratively practicable.

 VIII    DEATH BENEFITS. 

 

	 	8.1.	 Death Prior to Commencement of Benefits. If a Participant dies prior to commencement of payment
of his or her Account under Section 7.2 or 7.3, the 

  
 -17- 

	 	
Participant’s Beneficiary shall receive a survivor benefit in an amount equal to the Participant’s Account balance (including the amount of any unpaid installments that had commenced
pursuant to Section 7.1) to be paid in a single lump sum as soon as practicable following the Participant’s death. Distributions made under this Section 8.1 must be made on a Valuation Date within 90 days following the
Participant’s death, and the Beneficiary shall not have any right to designate the year of payment. 

  

	 	8.2.	 Death After Commencement of Benefits. If a Participant incurs a Separation from Service or incurs
a Disability prior to a Separation from Service, has commenced payments in installments, and dies prior to the time his or her Account balance has been fully distributed, the Participant’s Beneficiary shall receive the remaining portion of the
Participant’s Account at the regularly-scheduled date of payment for any remaining installment payments of the Participant’s Account. 

IX     ADMINISTRATION. 
  

	 	9.1.	 Authority of Administrator. The Administrator shall have full power and authority to carry out
the terms of the Plan, including, subject to the provisions of Section 1.4, the discretionary authority to construe and interpret the Plan, make factual findings, decide all questions of eligibility and determine the amount, manner and time of
payment of any benefits hereunder. The Administrator may establish such rules and regulations as it may consider necessary or desirable for the effective and efficient administration of the Plan. The Administrator’s interpretation, construction
and administration of the Plan, including any adjustment of the amount or recipient of the payments to be made, shall be binding and conclusive on all persons for all purposes. Neither the Company, including its officers, members or directors, nor
the Administrator or the Board or any member thereof, shall be liable to any person for any action taken or omitted in connection with the interpretation, construction and administration of the Plan. 

 

	 	9.2.	 Participant’s Duty to Furnish Information. Each Participant shall furnish to the
Administrator such information as it may from time to time request for the purpose of the proper administration of this Plan. 

  

	 	9.3.	 Interested Member of Administrator. If a member of the Administrator is also a Participant in the
Plan, he or she may not decide or determine any matter or question concerning his or her benefits unless such decision or determination could be made by him or her under the Plan if he or she were not a member of the Administrator.

  

	 	9.4.	 Indemnification. No person (including any present or former member of the Administrator, and any
present or former officer or member of the Company or any Affiliate) shall be personally liable for any act done or omitted to be done in good faith in the administration of the Plan. Each present or former officer or member of the Company or any
Affiliate to whom the Administrator has delegated any portion of its responsibilities under the Plan and each present or former member of 

  
 -18- 

	 	
the Administrator shall be indemnified and saved harmless by the Company (to the extent not indemnified or saved harmless under any liability insurance or other indemnification arrangement with
respect to the Plan) from and against any an all claims of liability to which they are subjected by reason of any act done or omitted to be done in good faith in connection with the administration of the Plan, including all expenses reasonably
incurred in their defense if the Company fails to provide such defense. No member of the Administrator shall be liable for any act or omission of any other member of the Administrator, nor for any act or omission upon his own part, excepting his own
willful misconduct or gross neglect. 

  

	 	9.5.	 Claims Procedure. If a Participant or Beneficiary (“Claimant”) is denied all or a
portion of an expected benefit under this Plan for any reason, he or she (or his or her representative who is authorized in writing by the Claimant to act on his or her behalf) may file a claim with the Administrator or its delegate (“Claims
Administrator”) in the form and manner prescribed by the Administrator. The Claims Administrator shall notify the Claimant of its decision within 90 days of receipt of the claim, unless the Claimant receives written or electronic notice from
the Claims Administrator prior to the end of the 90-day period stating that special circumstances require an extension (of up to 90 additional days) of the time for decision. The extension notice shall
indicate those special circumstances and the date by which the Claims Administrator expects to render its decision. The notice of the decision shall be in writing and sent by mail to Claimant’s last known address (or sent electronically).

  

	 	(a)	 If the claim is denied, a notice of a denial of the claim, shall contain the following information:
(i) the specific reasons for the denial; (ii) reference to specific provisions of the Plan on which the denial is based; (iii) if applicable, a description of any additional information or material necessary to perfect the claim and
an explanation of why such information or material is necessary; and (iv) an explanation of the claims review procedure including the time limits applicable to such procedures; and (v) a statement of the Claimant’s right to bring an
action under Section 502(a) of ERISA following a final adverse benefit determination. 

  

	 	(b)	 A Claimant (or his or her representative who is authorized in writing by the Claimant to act on his or her
behalf) is entitled to request a review of any denial of his or her claim by the Board or its delegate (“Appeals Administrator”). The request for review must be submitted within 60 days of receipt of the denial and in the form and manner
prescribed by the Appeals Administrator. The Claimant shall be entitled to submit comments, documents, records and other information orally and in writing. The Appeals Administrator’s review shall take into account all comments, documents,
records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The Claimant shall be provided, upon request and free of
charge, reasonable access to, or copies of, all documents, records and other information relevant to 

  
 -19- 

	 	
Claimant’s claim. The Appeals Administrator shall render a review decision within 60 days after receipt of a request for a review, provided that, in special circumstances the Appeals
Administrator may extend the time for decision by not more than 60 days upon notice to the Claimant. The extension notice shall indicate those special circumstances and the date by which the Appeals Administrator expects to render its review
decision. The Claimant shall receive written or electronic notice of the Appeals Administrator’s review decision. 

  

	 	(c)	 If the claim is denied on review, the notice of the denial shall contain the following: (i) the specific
reasons for the decision; (ii) reference to the specific provisions of the Plan on which the denial is based; (iii) a statement that the Claimant shall be provided, upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant to the Claimant’s claim; and (iv) a statement of the Claimant’s right to bring an action under Section 502(a) of ERISA. 

 

	 	9.6.	 Special Procedure for Disability Claims. Notwithstanding Section 9.5, to the extent a claim
for benefits due to a Disability requires the Claims Administrator or the Appeals Administrator, as applicable, to make a determination of Disability under the terms of the Plan, then any such claim submitted on or after April 2, 2018 (a
“Disability Claim”) shall be subject to all of the rules described in Section 9.5, except as expressly modified by this Section 9.6. 

  

	 	(a)	 An initial decision on a Disability Claim shall be made within 45 days of the Plan’s receipt of such
claim, unless matters beyond the control of the Claims Administrator require additional time, in which case the Claims Administrator shall notify the Claimant before the end of the initial 45-day period of an
extension of up to 30 days. If necessary due to matters beyond the control of the Claims Administrator, the Claims Administrator may notify the Claimant, prior to the end of the initial 30-day extension
period, of a second extension of up to 30 days. If an extension is required due to the Claimant’s failure to supply the necessary information, then the notice of extension shall describe the additional information required and the Claimant
shall have 45 days to provide such additional information. Moreover, the period for making the determination shall be tolled from the date the notification of extension was sent out until the Claimant responds to the request for additional
information. No additional extensions may be made, except with the Claimant’s voluntary consent. The extension notice shall indicate the reason(s) requiring the extension of time and the date by which the Claims Administrator expects to render
its decision. 

  
 -20- 

	 	(b)	 The Claims Administrator shall provide notice of a denial of the Disability Claim, in a culturally and
linguistically appropriate manner consistent with Department of Labor Regulation Section 2560.503-1(o). Such notice shall contain the information described in Section 9.5(a), subject to the
following: 

  

	 	(i)	 The denial notice shall include any internal rule, guideline, protocol, standard or other similar criterion
relied upon in making the adverse determination or, alternatively, shall state that such criterion does not exist. 

  

	 	(ii)	 The denial notice shall include a discussion of the Claims Administrator’s decision, including an
explanation of the Claims Administrator’s basis for disagreeing with or not following: 

  

	 	(A)	 The views presented by the Claimant to the Plan of health care professionals treating the Claimant and
vocational professionals who evaluated the Claimant; 

  

	 	(B)	 The views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with a
Claimant’s denial without regard to whether the advice was relied upon in making the benefit determination; and 

  

	 	(C)	 A disability determination regarding the Claimant presented by the Claimant to the Plan made by the Social
Security Administration. 

  

	 	(iii)	 The denial notice also shall include a statement that the Claimant shall be provided, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other information relevant to the Disability Claim. 

  

	 	(iv)	 If the denial was based on a medical necessity or experimental treatment or similar exclusion or limit, the
denial notice also shall include either an explanation of the scientific or clinical judgement for the determination, applying the terms of the Plan to the Claimant’s medical circumstances, or a statement that such explanation will be provided
free of charge upon request. 

  

	 	(c)	 Any Claimant whose Disability Claim is denied in whole or in part, may appeal the denial by submitting to the
Appeals Administrator a request for a review of the denial within 180 days after receiving notice of the denial. Any individual appointed to review the claim shall consider the appeal de novo, without any deference to the initial benefit denial. The
review shall not include any person who participated in the initial benefit denial or who is the subordinate of a person who participated in the initial benefit denial. 

 

	 	(d)	 If the initial denial was based in whole or in part on a medical judgment, then the Appeals Administrator shall
consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment, and who was neither consulted in connection with the initial benefit determination nor is the subordinate
of any person who was consulted in connection with that determination. 

  
 -21- 

	 	(e)	 A decision on review shall be made no later than 45 days after receipt of a timely request for review, unless
special circumstances require an extension of time for processing. If an extension is required, the Claimant shall be notified before the end of the initial 45-day period. The extension notice shall indicate
those special circumstances and the date by which the Appeals Administrator expects to render its decision. A decision shall be given as soon as possible, but not later than 90 days after receipt of the request for review. Notwithstanding the
foregoing: 

  

	 	(i)	 Before any denial on review may be issued, the Appeals Administrator shall provide the Claimant, free of
charge, with any new or additional evidence considered, relied upon, or generated in connection with the Disability Claim; and 

  

	 	(ii)	 Before any denial on review based on a new or additional rationale may be issued, the Appeals Administrator
shall provide the Claimant, free of charge, with the additional rationale. 

 Any evidence or rationale required to be
provided pursuant to subparagraphs (i) or (ii) of this paragraph (e), must be provided as soon as possible and sufficiently in advance of the date on which the denial notice is required to be provided under this Section 9.6(e) to give the
Claimant a reasonable opportunity to respond prior to that date. 
  

	 	(f)	 The Appeals Administrator shall provide a notice of a denial of the Disability Claim on review, in a culturally
and linguistically appropriate manner consistent with Department of Labor Regulation Section 2560.503-1(o). Such notice shall contain the information described in Section 9.5(c), subject to the
following: 

  

	 	(i)	 Any denial notice on review shall include the specific internal rule, guideline, protocol, standard or other
similar criterion relied upon in making the adverse determination or, alternatively, shall state that such criterion does not exist. 

  

	 	(ii)	 Any denial notice on review also shall include a discussion, including an explanation of the Appeals
Administrator’s basis for disagreeing with or not following: 

  

	 	(A)	 The views presented by the Claimant to the Plan of health care professionals treating the Claimant and
vocational professionals who evaluated the Claimant; 

  

	 	(B)	 The views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with a
Claimant’s denial, without regard to whether the advice was relied upon in making the benefit determination; and 

  
 -22- 

	 	(C)	 A disability determination regarding the Claimant presented by the Claimant to the Plan made by the Social
Security Administration. 

  

	 	(iii)	 The statement of the Claimant’s right to bring an action under Section 502(a) of ERISA described in
Section 9.5(c)(iv) shall also describe any contractual limitations period that applies to the Claimant’s right to bring such an action, including the calendar date on which the contractual limitations period expires for the Disability
Claim. 

  

	 	(iv)	 If the denial on review was based on a medical necessity or experimental treatment or similar exclusion or
limit, the denial notice also shall include either an explanation of the scientific or clinical judgement for the determination, applying the terms of the Plan to the Claimant’s medical circumstances, or a statement that such explanation will
be provided free of charge upon request. 

  

	 	(g)	 The Appeals Administrator also shall identify any medical or vocational expert whose advice was obtained on
behalf of the Appeals Administrator in connection with the denial, without regard to whether the advice was relied upon in making the benefit determination. 

  

	 	(h)	 If the Plan fails to strictly adhere to all of the requirements of Section 9.5 or 9.6 with respect to any
Disability Claim, the Claimant will be deemed to have exhausted the Plan’s claims and review procedure for purposes of Section 9.6(i). If the Claimant chooses to pursue remedies available under Section 502(a) of ERISA under such
circumstances, the Disability Claim is deemed denied on review without the exercise of discretion by an appropriate fiduciary. Notwithstanding the foregoing, the Plan’s claims and review procedure will not be deemed exhausted based on de
minimis violations that do not cause, and are not likely to cause, prejudice or harm to the Claimant, provided that the violations (i) were for good cause or due to matters beyond the Plan’s control, (ii) occurred in the context of an
ongoing, good faith exchange of information between the Plan and the Claimant, and (iii) were not part of a pattern or practice of Plan violations. The Claimant may request a written explanation of such violations from the Plan, and within 10
days of the Claimant’s request, the Plan shall provide such explanation, including a specific description of the bases, if any, for asserting that the violations should not cause the Plan’s claims and review procedure to be deemed
exhausted. If a court rejects the Claimant’s request for immediate review on the basis of exhaustion under this Section 9.6(h), the Disability Claim shall be considered as re-filed for review upon
the Plan’s receipt of the court’s decision. Within a reasonable time after the receipt of the court’s decision, the Plan shall provide the Claimant with notice of the resubmission. 

  
 -23- 

	 	(i)	 No action in law or equity may be brought with respect to any Disability Claim unless and until the applicable
claims and review procedures under the Plan have been exhausted. 

 X     AMENDMENT
AND TERMINATION. 
 The Board may amend or terminate the Plan at any time. Upon termination of the Plan, Participant Account balances
shall remain in the Plan until the Participant becomes eligible for benefit payments as provided in Article VII or VIII, as applicable. Notwithstanding the foregoing, the Administrator, in its discretion, may elect to distribute Participants’
Account balances following termination of the Plan, in which case the entire vested Account balances of all Participants shall be distributed, notwithstanding any installment payment elections made by Participants, to the extent acceleration of the
time and form of payment is permitted under Code Section 409A and the regulations and guidance issued thereunder. 

XI     MISCELLANEOUS. 
  

	 	11.1.	 No Implied Rights; Rights on Termination of Service. Neither the establishment of the Plan nor
any amendment thereof shall be construed as giving any Participant, Beneficiary or any other person, individually or as a member of a group, any legal or equitable right unless such right shall be specifically provided for in the Plan or conferred
by specific action of the Board or the Administrator in accordance with the terms and provisions of the Plan. Except as expressly provided in this Plan, neither the Company nor any of its Affiliates shall be required or be liable to make any payment
under the Plan. 

  

	 	11.2.	 No Right to Continued Service. Nothing herein shall constitute a contract of employment or of
continuing service or in any manner obligate the Company or any Affiliate to continue the services of any Participant, or obligate any Participant to continue in the service of the Company or Affiliates, or as a limitation of the right of the
Company or Affiliates to discharge any of their members, with or without cause. 

  

	 	11.3.	 Nature of the Plan. 

 

	 	(a)	 Unfunded Plan. Nothing herein contained shall require or be deemed to require the Company to
segregate, earmark or otherwise set aside any funds or other assets to provide for any payments made hereunder. Benefits hereunder shall be paid from assets which shall continue, for all purposes, to be part of the general, unrestricted assets of
the Company and its Affiliates. The obligations of the Company hereunder shall be an unfunded and unsecured promise to pay money in the future. However, the Company may establish one or more trusts to assist in meeting its obligations under the
Plan, the assets of which shall be subject to the claims of the Company’s general creditors. No current or former Participant, Beneficiary or other person, individually or as a member of a group, shall have any right, title or interest in any
account, fund, grantor trust, or any asset that may be acquired by the Company in respect of its obligations under the Plan (other than as a general creditor of the Company with an unsecured claim against its general assets). 

  
 -24- 

	 	(b)	 Exception for Change in Control. Notwithstanding the provisions of paragraph (a) of this
Section 11.3, the Company shall create a rabbi trust to hold funds to be used in payment of the obligations of the Company under the Plan, which trust shall not be funded except as provided in the following sentence. In the event of a Change in
Control (or prior thereto in the sole discretion of the Company), the Company shall fund such trust in an amount equal to not less than the total value of the Participants’ Accounts under the Plan as of the Valuation Date immediately preceding
the Change in Control, provided that: (i) any funds contained therein shall remain subject to the claims of the Company’s general creditors; and (ii) such action will not result in the imposition of additional tax under
Section 409A(b)(5) of the Code. In addition, upon a Change in Control, the trust by its terms shall become irrevocable. 

  

	 	11.4.	 Nontransferability. Prior to payment thereof, no benefit under the Plan shall be assignable or
subject to any manner of alienation, sale, transfer, claims of creditors, pledge, attachment or encumbrances of any kind, except pursuant to a domestic relations order awarding benefits to an “alternate payee” (within the meaning of Code
Section 414(p)(8)) that the Administrator determines satisfies the criteria set forth in paragraphs (1), (2) and (3) of Code Section 414(p) (a “DRO”). Notwithstanding any provision of the Plan to the contrary, to the extent
required by the DRO the Plan benefits awarded to an alternate payee under a DRO may be paid in a single lump sum to the alternate payee on the Valuation Date as soon as administratively practicable following the date the Administrator determines the
order is a DRO, and such amounts, as adjusted for earnings, gains and losses, will be deducted from the Participant’s Account as of such Valuation Date. 

 

	 	11.5.	 Successors and Assigns. The rights, privileges, benefits and obligations under the Plan are
intended to be, and shall be treated as legal obligations of and binding upon the Company, its successors and assigns, including successors by merger, consolidation, reorganization or otherwise. 

 

	 	11.6.	 Payment with Respect to Incapacitated Persons. Any amounts payable hereunder to any person who is
a minor or under a legal disability, as determined under applicable state law, or who is unable to manage properly his or her financial affairs may be paid (a) to the legal representative of such person, (b) to anyone acting as the
person’s agent under a durable power of attorney, (c) to an adult relative or friend of the person or (d) to anyone with whom the person is residing. Any payment of a benefit made in accordance with the provisions of this section
shall be a complete discharge of any liability for the making of such payment under the Plan. The Administrator’s reliance on the written power of attorney or other instrument of agency governing a relationship between the person entitled to
benefit the person to whom the Administrator directs payment of the benefit shall be fully 

  
 -25- 

	 	
protected at least to the same extent as though the Administrator had dealt directly with the person entitled to the benefit as a fully competent person. In the absence of actual knowledge to the
contrary, the Administrator may assume that the instrument of agency was validly executed, that the person was competent at the time of execution and that at the time of reliance, the agency had not been terminated or amended. 

 

	 	11.7.	 Arbitration. Any controversy or claim arising out of or relating to this Plan (other than a
Disability Claim), or breach hereof, shall be settled by arbitration in the City of Chicago in accordance with the laws of the State of Illinois with an arbitrator appointed by the Company; provided, however, that with respect to any claim subject
to Section 9.5, the individual must have exhausted the claims and review procedure set forth in such Section 9.5 before submitting the claim to arbitration under this Section 11.7. The arbitration shall be conducted in accordance with
the rules of the American Arbitration Association, except with respect to the selection of an arbitrator. The arbitrator’s determination shall be final and binding upon all parties and judgment upon the award rendered by the arbitrator may be
entered in any court having jurisdiction thereof. 

  

	 	11.8.	 Gender and Number. Except when otherwise indicated by the context, words in the masculine gender
shall include the feminine and neuter genders, the plural shall include the singular, and the singular shall include the plural. 

  

	 	11.9.	 Headings. The headings of the various Articles and Sections in the Plan are solely for
convenience and shall not be relied upon in construing any provisions hereof. Any reference to a Section shall refer to a Section of the Plan unless specified otherwise. 

 

	 	11.10.	 Severability. Whenever possible, each provision of the Plan shall be interpreted in such manner
as to be effective and valid under applicable law, but it any provision of the Plan is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other provision or any other jurisdiction, and the Plan shall be reformed, construed and enforced in such jurisdiction so as to best give effect to the intent of the Company under the Plan. 

 

	 	11.11.	 Effect on Other Employee Benefit Plans. Any benefit paid or payable under this Plan shall not be
included in a Participant’s compensation for purposes of computing benefits under any employee benefit plan maintained or contributed by the Company or any Affiliate except as may otherwise be required under the specific terms of such employee
benefit plan. 

  

	 	11.12.	 Non-U.S. Participants. With respect to any Participant
who resides outside the United States and provides services to any Affiliate, and notwithstanding anything herein to the contrary, the Administrator may, in its sole discretion, amend the terms of the Plan in order to conform such terms with the
requirements of local law or to meet the objectives of the Plan, and may, where appropriate, establish one or more sub-plans to reflect such amended provisions. 

  
 -26- 

	 	11.13.	 Applicable Law. This Plan is established under and will be construed according to the laws of the
State of Illinois, to the extent not preempted by the laws of the United States. 

*            *           
 * 
 IN WITNESS WHEREOF, the undersigned has caused this Plan to be executed this ______ day of _________________, 2018. 

 

			
	WOODWARD, INC.

 
			
		
	By:	 	 

  
 -27-Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of September 14, 2015 between YETI Coolers, LLC, a Delaware limited liability company (the “Company”), and Matthew J. Reintjes (“Executive”).

 

In consideration of the mutual covenants contained herein and other good and valuable consideration (including a Nonqualified Stock Option Agreement to be entered into as soon as practicable following the Effective Date), the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Certain Definitions.  Certain words or phrases used herein with initial capital letters shall have the meanings set forth in paragraph 8 hereof.

 

2.                                      Employment.  The Company shall employ Executive, and Executive accepts such employment with the Company, upon the terms and conditions set forth in this Agreement for the period beginning on the Effective Date and ending as provided in paragraph 5 hereof (the “Employment Period”).  Notwithstanding anything in this Agreement to the contrary, Executive will be an at-will employee of the Company and Executive or the Company may terminate Executive’s employment with the Company for any reason or no reason at any time.

 

3.                                      Position and Duties.

 

(a)                                 During the Employment Period, Executive shall serve as the Chief Executive Officer of the Company and shall have the normal duties, responsibilities and authority of an executive serving in such position, subject to the power of the Board of Directors of YETI Holdings, Inc. (the “Board”) to expand or limit such duties, responsibilities and authority, either generally or in specific instances.  During the Employment Period, subject to Executive’s good performance during the one year period following the Effective Date, as determined by the Board in its sole discretion, Executive shall be appointed as a member of the Board following the first anniversary of the Effective Date.

 

(b)                                 During the Employment Period, Executive shall report to the Board.

 

(c)                                  During the Employment Period, Executive shall devote Executive’s best efforts and Executive’s full business time and attention (except for permitted paid time off periods and reasonable periods of illness or other incapacity) to the business and affairs of the Company, its subsidiaries and affiliates; provided, however, that Executive may engage in charitable and civic activities so long as such activities do not compete with the Company’s Business or materially interfere, individually or in the aggregate, with the performance of his duties hereunder.

 

(d)                                 Executive will seek to permanently relocate his wife and children to the Austin, Texas area by January 1, 2016.  Executive shall perform Executive’s duties and responsibilities to the best of Executive’s abilities in a diligent, trustworthy, businesslike and efficient manner.

 

 

(e)                                  During the Employment Period, Executive shall perform Executive’s duties and responsibilities principally in the Austin, Texas area; provided, however, that Executive acknowledges that he may be required to engage in travel in connection with the performance of his duties hereunder.

 

4.                                      Compensation and Benefits.

 

(a)                                 Salary.  The Company agrees to pay Executive a salary during the Employment Period in installments based on the Company’s practices as may be in effect from time to time.  Executive’s initial salary shall be at the rate of $400,000 per year (the “Base Salary”).  The Board shall review Executive’s salary annually in the first week of January beginning in 2017 and may, in its sole discretion, increase it.

 

(b)                                 Annual Bonus.

 

(i)                                     2015 Bonus.  During the Employment Period, with respect to the 2015 calendar year, Executive will be eligible to receive a cash bonus with a target amount equal to 40% of Executive’s Base Salary paid since the Effective Date, with 90% of the actual payout based on the Company’s EBITDA growth during such year and 10% of the actual payout based on the achievement of predetermined individual objectives.  Notwithstanding the foregoing, any annual bonus earned with respect to the 2015 calendar year shall be capped at 100% of Executive’s Base Salary paid since the Effective Date.  With respect to the 2015 calendar year, Executive’s bonus will be prorated for the period Executive was employed by the Company as a percentage of the entire year.  For purposes of this subparagraph 4(b)(i), the Company’s EBITDA growth during the 2015 calendar year will be determined by the Chief Financial Officer of the Company, using his or her best efforts to be accurate.  For the 2015 calendar year, the Company’s targeted adjusted EBITDA is $85 million.

 

(ii)                                  Post-2015 Bonuses. With respect to each calendar year during the Employment Period commencing on or after January 1, 2016, Executive will be eligible to receive an annual cash bonus, with a maximum amount equal to 80% of Executive’s Base Salary, based on the achievement of goals determined by the Board based on a number of factors, including Executive’s historical and anticipated future performance, the Company’s growth and profitability, and other relevant considerations.

 

(iii)                               Payment of Bonuses.  Annual bonuses, including with respect to the 2015 calendar year, will be calculated on a sliding scale, with ranges above and below target, consistent with bonus calculations prepared by the Company’s management and provided to Executive during the applicable calendar year.  Executive will be required to be employed by the Company on December 31 of the calendar year to which the bonus relates in order to be eligible to receive the applicable bonus under this subparagraph 4(b).  Any such bonus will be paid by no later than March 15 of the year following the year to which it relates.

 

2

 

(c)                                  Paid Time Off.  During the Employment Period, Executive shall be entitled to twenty (20) days of paid time off during each calendar year. Any accrued paid time off that is not used in the calendar year in which it is earned will not be eligible to be carried forward to, or otherwise used in, any subsequent calendar year.

 

(d)                                 Holidays.  During the Employment Period, Executive shall be entitled to holidays consistent with the Company’s current policy, which may be amended from time to time.

 

(e)                                  Relocation Bonus.  The Company shall pay Executive a relocation bonus in an amount equal to $50,000 (subject to any applicable tax and other required withholding) on the first regular payroll date immediately following the Effective Date to reimburse Executive for Executive’s relocation-related expenses (including travel, hotel and incidental expenses, among others).

 

(f)                                   Temporary Housing Accommodations and Travel Expenses.  During the Employment Period, for the period commencing on the Effective Date and ending on December 31, 2015, the Company shall (i) pay temporary housing expenses with respect to a two bedroom house or apartment for Executive in the Austin, Texas area; and (ii) reimburse Executive for all reasonable and customary travel expenses incurred with respect to Executive’s spouse’s and Executive’s children’s travel between the Kansas City, Kansas area and the Austin, Texas area.  Executive shall provide the Company with appropriate documentation relating to expenses incurred in connection with Executive’s spouse’s and Executive’s children’s travel within thirty (30) days of incurring such expense, and the Company shall provide such reimbursement within thirty (30) days after Executive submits such documentation.  Executive shall be responsible for all costs associated with Executive’s personal travel between the Kansas City, Kansas area and the Austin, Texas area.

 

(g)                                  Right to Purchase Common Shares.  Executive will have the right, but not the obligation, until September 14, 2015, to purchase up to such number of whole shares of the common stock of YETI Holdings, Inc. (“Holdings”) equivalent in value to approximately $250,000, for a purchase price per share equal to 100% of the fair market value of a share of such common stock, subject to Executive becoming a party to the Holdings Stockholders Agreement and agreeing to abide by its terms.

 

(h)                                 Standard Benefits Package.  Executive shall be entitled during the Employment Period to participate, on the same basis as other employees of the Company, in the Company’s Standard Benefits Package.  The Company’s “Standard Benefits Package” means those benefits (including insurance and other benefits, but excluding, except as hereinafter provided in subparagraph 6(b), any severance pay program or policy of the Company) for which substantially all of the employees of the Company are from time to time generally eligible, as determined from time to time by the Board.

 

3

 

5.                                      Employment Period.

 

(a)                                 Except as hereinafter provided, the Employment Period shall continue until, and shall end upon, the first anniversary of the Effective Date.

 

(b)                                 On the first anniversary of the Effective Date and on each anniversary thereafter, unless the Employment Period shall have ended pursuant to subparagraph 5(c) below or the Company shall have given Executive thirty (30) days’ written notice that the Employment Period will not be extended, the Employment Period shall be extended for an additional year.

 

(c)                                  Notwithstanding (a) or (b) above, the Employment Period shall end early upon the first to occur of any of the following events:

 

(i)                                     Executive’s death;

 

(ii)                                  the Company’s termination of Executive’s employment due to Permanent Disability;

 

(iii)                               a Termination For Cause;

 

(iv)                              a Termination Without Cause;

 

(v)                                 a Termination For Good Reason; or

 

(vi)                              a Voluntary Termination.

 

6.                                      Post-Employment Payments.

 

(a)                                 At the end of Executive’s employment for any reason, Executive shall cease to have any rights to salary, equity awards, expense reimbursements or other benefits, except that Executive shall be entitled to (i) any Base Salary which has accrued but is unpaid, any annual bonus set forth in paragraph 4(b) above that has been earned for a prior calendar year but is unpaid, any reimbursable expenses which have been incurred but are unpaid, and any paid time off days which have accrued pursuant to the Company’s paid time off policy, as in effect from time to time, but are unused, as of the end of the Employment Period, (ii) any option rights or plan benefits which by their terms extend beyond termination of Executive’s employment (but only to the extent provided in any option theretofore granted to Executive or any other benefit plan in which Executive has participated as an employee of the Company and excluding, except as hereinafter provided in subparagraph 6(b), any severance pay program or policy of the Company) and (iii) any benefits to which Executive is entitled under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”).  In addition, Executive shall be entitled to the additional amounts described in subparagraph 6(b), in the circumstances described in such subparagraph.

 

(b)                                 If the Employment Period ends pursuant to paragraph 5 on account of a Termination Without Cause or a Termination For Good Reason, the Company shall

 

4

 

continue to pay Executive his Base Salary at the time of such termination for a period of twelve (12) months following such termination in accordance with the Company’s normal payroll practices; provided, however, that Base Salary amounts due during the 60-day period following such termination shall not be paid during such 60-day period but instead shall be paid on the first payroll date after such 60-day period.  It is expressly understood that the Company’s payment obligations under this subparagraph 6(b) shall cease in the event Executive breaches any of the agreements in paragraph 7 hereof.  Each payment under this subparagraph 6(b) shall be considered a separate payment and not one of a series of payments for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).

 

(c)                                  Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment.

 

(d)                                 Release.  Notwithstanding anything herein to the contrary, the Company shall not be obligated to make any payment under subparagraph 6(b) hereof unless (i) prior to the 60th day following the Termination Without Cause or Termination For Good Reason, Executive executes a release of all current or future claims, known or unknown, arising on or before the date of the release against the Company and its subsidiaries and the directors, officers, employees and affiliates of any of them, in a form substantially similar to that attached as Exhibit A, with such changes as the Company deems in good faith are required or advisable as a result of changes in applicable law after the date hereof, and (ii) any applicable revocation period has expired during such 60-day period without Executive revoking such release.

 

7.                                      Competitive Activity; Confidentiality; Nonsolicitation.

 

(a)                                 Acknowledgements and Agreements.  Executive hereby acknowledges and agrees that in the performance of Executive’s duties to the Company during the Employment Period, Executive will be brought into frequent contact with existing and potential customers of the Company throughout the world.  Executive also agrees that trade secrets and confidential information of the Company, more fully described in subparagraph 7(e)(i), gained by Executive during Executive’s association with the Company, have been developed by the Company through substantial expenditures of time, effort and money and constitute valuable and unique property of the Company.  Executive further understands and agrees that the foregoing makes it necessary for the protection of the Company’s Business that Executive not compete with the Company during his employment with the Company, and not compete with the Company for a reasonable period thereafter, as further provided in the following subparagraphs.

 

(b)                                 Covenants.

 

(i)                                     Covenants During Employment.  While employed by the Company, Executive will not compete with the Company anywhere in the world.  In accordance with this restriction, but without limiting its terms, while employed by the Company, Executive will not:

 

5

 

(A)                               enter into or engage in any business which competes with the Company’s Business;

 

(B)                               solicit customers, business, patronage or orders for, or sell, any products or services in competition with, or for any business that competes with, the Company’s Business;

 

(C)                               divert, entice or otherwise take away any customers, business, patronage or orders of the Company or attempt to do so; or

 

(D)                               promote or assist, financially or otherwise, any person, firm, association, partnership, corporation or other entity engaged in any business which competes with the Company’s Business.

 

(ii)                                  Covenants Following Termination.  For two (2) years following the termination of Executive’s employment, Executive shall not:

 

(A)                               enter into or engage in any business which competes with the Company’s Business within the Restricted Territory (as defined in paragraph 8);

 

(B)                               solicit customers, business, patronage or orders for, or sell, any products and services in competition with, or for any business, wherever located, that competes with, the Company’s Business within the Restricted Territory;

 

(C)                               divert, entice or otherwise take away any customers, business, patronage or orders of the Company within the Restricted Territory, or attempt to do so; or

 

(D)                               promote or assist, financially or otherwise, any person, firm, association, partnership, corporation or other entity engaged in any business which competes with the Company’s Business within the Restricted Territory.

 

The time period set forth in subparagraph 7(b)(ii) may be extended to such longer period as determined by the Company in its sole discretion, provided that if the Company extends the applicable period, the Company shall make payment to Executive of the Base Salary during any such extended period.

 

(iii)                               Indirect Competition.  For the purposes of subparagraphs 7(b)(i) and (ii) inclusive, but without limitation thereof, Executive will be in violation thereof if Executive engages in any or all of the activities set forth therein directly as an individual on Executive’s own account, or indirectly as a partner, joint venturer, employee, agent, salesperson, consultant, officer and/or director of any firm, association, partnership, corporation or other entity, or as a stockholder of any corporation in which Executive or Executive’s spouse, child or parent owns,

 

6

 

directly or indirectly, individually or in the aggregate, more than one percent (1%) of the outstanding stock.

 

(iv)                              If it is judicially determined that Executive has violated this subparagraph 7(b) and the Company obtains an injunction or other equitable relief, then the period applicable to each obligation that Executive has been determined to have violated will be automatically extended by a period of time equal in length to the period during which such violation occurred.

 

(c)                                  The Company.  For purposes of this paragraph 7, the Company shall include any and all direct and indirect subsidiary, parent, affiliated, or related companies of the Company for which Executive worked or had responsibility at the time of termination of his employment and at any time during the two (2) year period prior to such termination.

 

(d)                                 Non-Solicitation; Non-Association.  Executive will not directly or indirectly at any time during the period of Executive’s employment, or for five (5) years thereafter, attempt to disrupt, damage, impair or interfere with the Company’s Business by raiding any of the Company’s employees, soliciting any of them to resign from their employment by the Company or associating with any of them for the express purpose of encouraging them to resign from their employment by the Company, or by disrupting the relationship between the Company and any of its consultants, agents or representatives.  Executive acknowledges that this covenant is necessary to enable the Company to maintain a stable workforce and remain in business.

 

(e)                                  Further Covenants.

 

(i)                                     Executive will keep in strict confidence, and will not, directly or indirectly, at any time, during or after Executive’s employment with the Company, disclose, furnish, disseminate, make available or, except in the course of performing Executive’s duties of employment, use any trade secrets or confidential business and technical information of the Company or its customers or vendors, without limitation as to when or how Executive may have acquired such information.  Such confidential information shall include, without limitation, the Company’s unique selling, manufacturing and servicing methods and business techniques, training, service and business manuals, promotional materials, training courses and other training and instructional materials, vendor and product information, customer and prospective customer lists, other customer and prospective customer information and other business information.  Executive specifically acknowledges that all such confidential information, whether reduced to writing, maintained on any form of electronic media, or maintained in the mind or memory of Executive and whether compiled by the Company, and/or Executive, derives independent economic value from not being readily known to or ascertainable by proper means by others who can obtain economic value from its disclosure or use, that reasonable efforts have been made by the Company to maintain the secrecy of such information, that such information is the sole property of the Company and that any retention and use of such information by Executive during Executive’s employment with the Company (except in the course of performing Executive’s duties and obligations to the

 

7

 

Company) or after the termination of Executive’s employment shall constitute a misappropriation of the Company’s trade secrets.

 

(ii)                                  Executive agrees that upon termination of Executive’s employment with the Company, for any reason, Executive shall return to the Company, in good condition, all property of the Company, including without limitation, the originals and all copies of any materials which contain, reflect, summarize, describe, analyze or refer or relate to any items of information listed in subparagraph 7(e)(i) of this Agreement.

 

(f)                                   Discoveries and Inventions; Work Made for Hire.

 

(i)                                     Executive agrees that upon conception and/or development of any idea, discovery, invention, improvement, software, writing or other material or design that:  (A) relates to the business of the Company, or (B) relates to the Company’s actual or demonstrably anticipated research or development, or (C) results from any work performed by Executive for the Company, Executive will assign to the Company the entire right, title and interest in and to any such idea, discovery, invention, improvement, software, writing or other material or design.  Executive has no obligation to assign any idea, discovery, invention, improvement, software, writing or other material or design that Executive conceives and/or develops entirely on Executive’s own time without using the Company’s equipment, supplies, facilities, or trade secret information unless the idea, discovery, invention, improvement, software, writing or other material or design either:  (x) relates to the business of the Company, or (y) relates to the Company’s actual or demonstrably anticipated research or development, or (z) results from any work performed by Executive for the Company.  Executive agrees that any idea, discovery, invention, improvement, software, writing or other material or design that relates to the business of the Company or relates to the Company’s actual or demonstrably anticipated research or development which is conceived or suggested by Executive, either solely or jointly with others, within one (1) year following termination of Executive’s employment under this Agreement or any successor agreements shall be presumed to have been so made, conceived or suggested in the course of such employment with the use of the Company’s equipment, supplies, facilities, and/or trade secrets.

 

(ii)                                  In order to determine the rights of Executive and the Company in any idea, discovery, invention, improvement, software, writing or other material, and to insure the protection of the same, Executive agrees that during Executive’s employment, and, to the extent related to the Company’s Business, for one (1) year after termination of Executive’s employment under this Agreement or any successor agreement, Executive will disclose immediately and fully to the Company any idea, discovery, invention, improvement, software, writing or other material or design conceived, made or developed by Executive solely or jointly with others.  The Company agrees to keep any such disclosures confidential.  Executive also agrees during Executive’s employment, and, to the extent related to the Company’s Business, for one (1) year after termination of Executive’s

 

8

 

employment under this Agreement or any successor agreement, to record descriptions of all work in the manner directed by the Company and agrees that all such records and copies, samples and experimental materials will be the exclusive property of the Company.  Executive agrees that at the request of and without charge to the Company, but at the Company’s expense, Executive will execute a written assignment of the idea, discovery, invention, improvement, software, writing or other material or design to the Company and will assign to the Company any application for letters patent or for trademark registration made thereon, and to any common-law or statutory copyright therein; and that Executive will do whatever may be necessary or desirable to enable the Company to secure any patent, trademark, copyright, or other property right therein in the United States and in any foreign country, and any division, renewal, continuation, or continuation in part thereof, or for any reissue of any patent issued thereon.  In the event the Company is unable, after reasonable effort, and in any event after ten business days, to secure Executive’s signature on a written assignment to the Company of any application for letters patent or to any common-law or statutory copyright or other property right therein, whether because of Executive’s physical or mental incapacity or for any other reason whatsoever, Executive irrevocably designates and appoints the Corporate Secretary of the Company as Executive’s attorney-in-fact to act on Executive’s behalf to execute and file any such application and to do all other lawfully permitted acts to further the prosecution and issuance of such letters patent, copyright or trademark.

 

(iii)                               Executive acknowledges that, to the extent permitted by law, all work papers, reports, documentation, drawings, photographs, negatives, tapes and masters therefor, prototypes and other materials (hereinafter, “items”), including without limitation, any and all such items generated and maintained on any form of electronic media, generated by Executive during Executive’s employment with the Company shall be considered a “work made for hire” and that ownership of any and all copyrights in any and all such items shall belong to the Company.  The item will recognize the Company as the copyright owner, will contain all proper copyright notices, e.g., “(creation date) YETI Coolers, LLC, All Rights Reserved,” and will be in condition to be registered or otherwise placed in compliance with registration or other statutory requirements throughout the world.

 

(g)                                  Confidentiality Agreements.  Executive agrees that Executive shall not disclose to the Company or induce the Company to use any secret or confidential information belonging to Executive’s former employers.  Except as indicated, Executive warrants that Executive is not bound by the terms of a confidentiality agreement or other agreement with a third party that would preclude or limit Executive’s right to work for the Company and/or to disclose to the Company any ideas, inventions, discoveries, improvements or designs or other information that may be conceived during employment with the Company.  Executive agrees to provide the Company with a copy of any and all agreements with a third party that preclude or limit Executive’s right to make disclosures or to engage in any other activities contemplated by Executive’s employment with the Company.

 

9

 

(h)                                 Relief.  Executive acknowledges and agrees that the remedy at law available to the Company for breach of any of Executive’s obligations under this Agreement would be inadequate.  Executive therefore agrees that, in addition to any other rights or remedies that the Company may have at law or in equity, temporary and permanent injunctive relief may be granted in any proceeding which may be brought to enforce any provision contained in subparagraphs 7(b), 7(d), 7(e), 7(f) and 7(g) inclusive, of this Agreement, without the necessity of proof of actual damage.

 

(i)                                     Reasonableness.  Executive acknowledges that Executive’s obligations under this paragraph 7 are reasonable in the context of the nature of the Company’s Business and the competitive injuries likely to be sustained by the Company if Executive were to violate such obligations.  Executive further acknowledges that this Agreement is made in consideration of, and is adequately supported by the agreement of the Company to perform its obligations under this Agreement and by other consideration, which Executive acknowledges constitutes good, valuable and sufficient consideration.

 

8.                                      Definitions.

 

(a)                                 “Company’s Business” means the design, manufacture, distribution and sale of hard coolers (including water coolers), soft coolers, beverageware (including insulated drinkware such as cups, coozies, hydration bottles and jugs), gear and accessories, through retail and eCommerce channels.

 

(b)                                 “EBITDA” shall have the meaning set forth in the Credit Agreement by and among YETI Coolers, LLC, successor by merger to YETI Acquisition, LLC, Fifth Street Finance Corp. and each additional person who becomes a party thereto as a lender, dated June 15, 2012, as the same may be amended from time to time, or if replaced by another credit facility, as defined in such credit facility, but, for the avoidance of doubt, shall be determined without regard to any management fees paid to Cortec Group Fund V, L.P., a Delaware limited partnership, and its affiliates.

 

(c)                                  “Permanent Disability” means that Executive, because of accident, disability, or physical or mental illness, is incapable of performing Executive’s duties to the Company or any subsidiary, as determined by the Board.  Notwithstanding the foregoing, Executive will be deemed to have become incapable of performing Executive’s duties to the Company or any subsidiary, if Executive is incapable of so doing for (i) a continuous period of 120 days and remains so incapable at the end of such 120 day period or (ii) periods amounting in the aggregate to 180 days within any one period of 365 days and remains so incapable at the end of such aggregate period of 180 days.

 

(d)                                 “Restricted Territory” means: (i) the United States and Canada; and/or (ii) all of the specific customer accounts, whether within or outside of the geographic area described in (i) above, with which Executive had any contact or for which Executive had any responsibility (either direct or supervisory) at the time of termination of Executive’s employment and at any time during the two (2) year period prior to such termination.

 

10

 

(e)                                  “Termination For Cause” means the termination by the Company of Executive’s employment as a result of:  (i) the commission by Executive of a felony or a fraud, (ii) conduct by Executive that brings the Company or any subsidiary or affiliate of the Company into substantial public disgrace or disrepute, (iii) gross negligence or gross misconduct by Executive with respect to the Company or any subsidiary or affiliate of the Company, (iv) repudiation by Executive of this Agreement or Executive’s abandonment of Executive’s employment with the Company or any subsidiary, (v) Executive’s insubordination or failure to follow the directions of the Board or the Board of Directors of any subsidiary or affiliate, which is not cured within three (3) days after written notice thereof to Executive, (vi) Executive’s violation of (A) Executive’s confidentiality obligations with respect to the Company’s and any subsidiary’s or affiliate’s confidential information, knowledge or data or (B) Executive’s agreement to not engage in competition with the Company or any subsidiary or affiliate, (vii) Executive’s breach of a material employment policy of the Company which is not cured within three (3) days after written notice thereof to Executive, or (viii) any other breach by Executive of this Agreement or any other agreement with the Company or any subsidiary or affiliate which is material and which is not cured within thirty (30) days after written notice thereof to Executive.

 

(f)                                   “Termination For Good Reason” means a termination by Executive of Executive’s employment with the Company as a result of: (i) a material decrease in the Base Salary, other than in connection with a general cost-reduction program imposed by the Board on all senior officers because of deteriorating performance of the Company or any subsidiary, (ii) any material breach of this Agreement by the Company, or (iii) the involuntary relocation of Executive’s principal place of employment to a location more than fifty (50) miles beyond Executive’s principal place of employment in Austin, Texas as of the Effective Date.  Notwithstanding the foregoing, no termination of employment by Executive shall constitute a “Termination For Good Reason” unless (A) Executive gives the Company notice of the existence of an event described in clause (i), (ii) or (iii) above, within fifteen (15) days following the occurrence thereof, (B) the Company does not remedy such event described in clause (i), (ii) or (iii) above, as applicable, within thirty (30) days of receiving the notice described in the preceding clause (A), and (C) Executive terminates employment within five (5) days of the end of the cure period specified in clause (B), above.

 

(g)                                  “Termination Without Cause” means the termination by the Company or any subsidiary of Executive’s employment with the Company or any subsidiary for any reason other than a termination for Permanent Disability or a Termination For Cause and shall include the Company’s giving notice pursuant to subparagraph 5(b) that the Employment Period will not be extended.

 

(h)                                 “Voluntary Termination” means Executive’s termination of Executive’s employment with the Company or any subsidiary for any reason, other than a Termination For Good Reason (it being understood that Executive may voluntarily resign his employment at any period after the Effective Date).

 

11

 

9.                                      Survival.  Subject to any limits on applicability contained therein, paragraph 7 hereof shall survive and continue in full force in accordance with its terms notwithstanding any termination of the Employment Period.

 

10.                               Taxes.  The Company may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as the Company is required to withhold pursuant to any applicable law, regulation or ruling.  Notwithstanding any other provision of this Agreement, the Company shall not be obligated to guarantee any particular tax result for Executive with respect to any payment provided to Executive hereunder, and Executive shall be responsible for any taxes imposed on Executive with respect to any such payment.

 

11.                               Notices.  Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, sent by reputable overnight carrier or mailed by first class mail, return receipt requested, to the recipient at the address below indicated:

 

Notices to Executive:

 

At the address contained in the Company’s payroll records

 

Notices to the Company:

 

YETI Coolers, LLC

5301 Southwest Parkway

Suite 200

Austin, TX 78735

 

or such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party.  Any notice under this Agreement will be deemed to have been given when so delivered.

 

12.                               Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid or unenforceable in any respect under any applicable law, such invalidity or unenforceability shall not affect any other provision, but this Agreement shall be reformed, construed and enforced as if such invalid or unenforceable provision had never been contained herein.

 

13.                               Complete Agreement.  This Agreement embodies the complete agreement and understanding between the parties with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or between the parties, written or oral which may have related to the subject matter hereof in any way, including without limitation the offer letter by and between Executive and the Company, dated August 12, 2015, and any other similar offer letters or term sheets.

 

14.                               Counterparts.  This Agreement may be executed in separate counterparts, each of which shall be deemed to be an original and both of which taken together shall constitute one and the same agreement.

 

12

 

15.                               Successors and Assigns.  This Agreement shall bind and inure to the benefit of and be enforceable by Executive, the Company and their respective heirs, executors, personal representatives, successors and assigns, except that neither party may assign any rights or delegate any obligations hereunder without the prior written consent of the other party. Executive hereby consents to the assignment by the Company of all of its rights and obligations hereunder to any successor to the Company by merger or consolidation or purchase of all or substantially all of the Company’s assets, provided such transferee or successor assumes the liabilities of the Company hereunder.

 

16.                               Choice of Law.  This Agreement shall be governed by, and construed in accordance with, the internal, substantive laws of the State of Texas.  Executive agrees that the state and federal courts located in the State of Texas shall have jurisdiction in any action, suit or proceeding against Executive based on or arising out of this Agreement and Executive hereby: (a) submits to the personal jurisdiction of such courts; (b) consents to service of process in connection with any action, suit or proceeding against Executive; and (c) waives any other requirement (whether imposed by statute, rule of court or otherwise) with respect to personal jurisdiction, venue or service of process.

 

17.                               Amendment and Waiver.  The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and Executive, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement.

 

18.                               Section 409A Compliance.  The parties intend for this Agreement to either comply with, or be exempt from, Section 409A, and all provisions of this Agreement will be interpreted and applied accordingly. In no event, however, shall this paragraph or any other provisions of this Agreement be construed to require the Company to provide any gross-up for the tax consequences of any provisions of, or payments under, this Agreement and the Company shall have no responsibility for tax consequences to Executive (or his beneficiary) resulting from the terms or operation of this Agreement.  Any payments or reimbursements of any expenses provided for under this Agreement shall be made in accordance with Treas. Reg. §1.409A-3(i)(1)(iv).

 

19.                               Operation of Agreement.  This Agreement will be binding immediately upon its execution, but, notwithstanding any provision of this Agreement to the contrary, this Agreement will not become effective or operative (and neither party will have any obligation hereunder) until Executive commences employment with the Company (the “Effective Date”).  If Executive does not commence employment with the Company by September 14, 2015, this Agreement will not become effective or operative (and neither party will have any obligation hereunder).

 

[SIGNATURES ON FOLLOWING PAGE]

 

13

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
YETI Coolers, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David L. Schnadig
    
	
 
    	
Name:
    	
David L. Schnadig
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Matthew J. Reintjes
    
	
 
    	
Matthew J. Reintjes
    

 

 

EXHIBIT A

 

RELEASE AGREEMENT

 

RELEASE AGREEMENT, dated as of                  , 20   (this “Agreement”), by and between YETI Coolers, LLC, a Delaware limited liability company (the “Company”), and Matthew J. Reintjes (“Executive”) (collectively, the “Parties”).

 

WHEREAS, Executive’s employment agreement with the Company, dated                , 2015 (as amended from time to time, the “Employment Agreement”), provides for certain post-termination payments and benefits to Executive pursuant to Paragraph 6(b) thereof, subject to Executive executing and not revoking a release of claims against the Company; and

 

WHEREAS, Executive desires, and the Company agrees, that the Company shall provide a release of claims with respect to Executive’s employment and termination of employment.

 

NOW, THEREFORE, in consideration of the mutual promises and obligations set forth in the Employment Agreement and this Agreement, and in consideration for the payments and benefits to be provided to Executive pursuant to Paragraph 6(b) of the Employment Agreement, and for other good and valuable consideration, the sufficiency of which is hereby recognized by the Parties, the Parties agree as follows:

 

1.                                      Termination of Employment.  Executive acknowledges and agrees that his employment with the Company and its subsidiaries and affiliates will terminate effective                  , 20   (the “Termination Date”).  As of the Termination Date, Executive will resign all positions he held as an officer, director or employee of the Company and its subsidiaries and affiliates, and will promptly execute such documents and take such actions as may be necessary or reasonably requested by the Company to effectuate or memorialize the resignation of such positions.

 

2.                                      Consideration.  Executive and the Company each acknowledge that in consideration of Executive’s employment and in consideration for the payments set forth in the Employment Agreement that are subject to the release provision of Paragraph 6(d) of the Employment Agreement (the “Payments”), the following shall apply.

 

3.                                      General Release of Claims.  In exchange for the mutual promises set forth in this Agreement (including the Payments), Executive, on behalf of himself, his agents, attorneys, heirs, administrators, executors, assigns, and other representatives, and anyone acting or claiming on his or their joint or several behalf, hereby releases, waives, and forever discharges the Company, including its past or present employees, officers, directors, trustees, board members, stockholders, agents, affiliates, parent entities, subsidiaries, successors, assigns, and other representatives, and anyone acting on their joint or several behalf (the “Releasees”), from any and all known and unknown claims, causes of action, demands, damages, costs, expenses, liabilities, or other losses that in any way arise from, grow out of, or are related to Executive’s employment with the Company or any of its affiliates and subsidiaries or the termination thereof.  By way of example only and without limiting the immediately preceding sentence, Executive agrees that he is releasing, waiving, and discharging any and all claims against the Company and the Releasees

 

 

under (a) any federal, state, or local employment law or statute, including, but not limited to Title VII of the Civil Rights Act(s) of 1964 and 1991, the Americans with Disabilities Act, the Age Discrimination in Employment Act (ADEA), Older Worker Benefit Protection Act (OWBPA), the Genetic Information Non-Discrimination Act (GINA), the Sarbanes-Oxley Act,  applicable state civil rights law(s) or any other federal law, statute, ordinance, rule, regulation or executive order relating to employment and/or discrimination in employment, and/or any claims to attorneys’ fees or costs thereunder, (b) any claims for wrongful discharge, retaliatory discharge, negligent or intentional infliction of emotional distress, interference with contractual relations, personal, emotional or physical injury, fraud, defamation, libel, slander, misrepresentation, violation of public policy, invasion of privacy, or any other statutory or common law theory of recovery under any federal, state or municipal common law, or (c) any other federal, state or municipal law, statute, ordinance or common law doctrine affecting employment rights.  Nothing herein shall be construed to prohibit Executive from filing a charge with the Equal Employment Opportunity Commission or participating in investigations by that entity.  However, Executive acknowledges that by signing this release, Executive waives his right to seek individual remedies in any such action or accept individual remedies or monetary damages in any such action or lawsuit arising from such charges or investigations, including but not limited to, back pay, front pay, or reinstatement.  Executive further agrees that if any person, organization, or other entity should bring a claim against the Releasees involving any matter covered by this Agreement, Executive will not accept any personal relief in any such action, including damages, attorneys’ fees, costs, and all other legal or equitable relief.  Notwithstanding the foregoing, Executive will not give up his right to any vested benefits to which he is entitled under any retirement plan of the Company that is intended to be qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended, or his rights, if any, under Part 6 of Subtitle B of Title I of the Executive Retirement Income Security Act of 1974, as amended.

 

4.                                      No Claims Filed.  Executive affirms that, as of the date of execution of this Agreement, he has filed no lawsuit, charge, claim or complaint with any governmental agency or in any court against the Company or the Releasees.

 

5.                                      Employment Agreement Provisions.  The provisions of Paragraphs 7 (Competitive Activity; Confidentiality; Nonsolicitation), 10 (Taxes), 11 (Notices) and 16 (Choice of Law) of the Employment Agreement are hereby expressly incorporated by reference.

 

6.                                      Nondisclosure of Terms.  Executive agrees that the existence, terms and conditions of this Agreement, and any and all underlying communications and negotiations in connection with or leading to this Agreement, are and shall remain confidential.  Except as specifically set forth in this paragraph 6, Executive shall not disclose the existence or terms of this Agreement in whole or in part to any individual or entity without prior written consent of the Company.  Executive agrees that he will not disclose the existence or terms of this Agreement to any person except (i) to members of Executive’s immediate family and his professional advisors, who shall be advised of this confidentiality provision, (ii) to the extent required by a final and binding court order or other compulsory process, and (iii) to any federal, state, or local taxing authority.  Upon Executive’s receipt of any order, subpoena or other compulsory process demanding production or disclosure of this Agreement, Executive agrees that he will promptly notify the Company in writing of the requested disclosure, including the proposed date of the disclosure, the reason for the requested disclosure, and the identity of the individual or entity requesting the disclosure, at

 

 

least ten (10) business days prior to the date that such disclosure is to be made or immediately upon receipt of the requested disclosure.  Executive agrees not to oppose any action that the Company might take with respect to any such requested disclosure.  Executive further agrees to instruct his counsel not to disclose to any person or entity, including potential or existing clients, the existence or terms of this Agreement.

 

7.                                      Future Cooperation.  Executive agrees that, as reasonably requested for (a) the 12 months following the termination of his employment, he will (i) fully cooperate with the Company in effecting an orderly transition of his duties and (ii) without any additional compensation, respond to reasonable requests for information from the Company regarding matters that may arise in the Company’s business and (b) the three-year period following the termination of his employment, fully and completely cooperate with the Company, its advisors and its legal counsel with respect to any litigation that is pending against the Company and any claim or action that may be filed against the Company in the future.  Such cooperation reflected in part (b) above shall include making himself available at reasonable times and places for interviews, reviewing documents, testifying in a deposition or a legal or administrative proceeding, and providing advice to the Company in preparing defenses to any pending or potential future claims against the Company.  The Company agrees to pay/reimburse Executive for any reasonable expenses incurred as a result of his cooperation with the Company pursuant to this paragraph 7.

 

8.                                      Assistance to Others.  Executive agrees following the termination of his employment, not to assist or cooperate, in any way, directly or indirectly, with any person, entity or group (other than the Equal Employment Opportunity Commission (EEOC) or other governmental agency) involved in any proceeding, inquiry or investigation of any kind or nature against or involving the Company or any of its Releasees, except as required by law, subpoena or other compulsory process.  Moreover, Executive agrees that to the extent he is compelled to cooperate with such third parties during the three-year period following the termination of his employment, he shall disclose to the Company in advance that he intends to cooperate and shall disclose the manner in which he intends to cooperate.  Further, Executive agrees that within three (3) days after such cooperation, he will offer to meet with representatives of the Company and disclose the information that he provided to the third party, to the extent permitted by law.  Further, if Executive is legally required to appear or participate in any proceeding that involves or is brought against the Company or the Releasees, within three years following the termination of his employment, Executive agrees, unless prohibited by law, to disclose to the Company in advance what he plans to say or produce and otherwise cooperate fully with the Company or the Releasees.

 

9.                                      ADEA/OWBPA Waiver & Acknowledgment.  Insofar as this Agreement pertains to the release of Executive’s claims, if any, under the ADEA or other civil rights laws, Executive, pursuant to and in compliance with the rights afforded him under the Older Worker Benefit Protection Act: (a) is hereby advised to consult with an attorney before executing this Agreement; (b) is hereby afforded twenty-one (21) days to consider this Agreement (the “Consideration Period”); (c) may revoke this Agreement any time within the seven (7) day period following his execution of this Agreement (the “Revocation Period”) by providing written notice to the Company on or before 5:00 PM Eastern Daylight Time on the seventh day after Executive signs this Agreement; (d) is hereby advised that this Agreement shall not become effective or enforceable until the seven (7) day Revocation Period has expired; and (e) is hereby advised that he is not waiving claims that may arise after the date on which he executes this Agreement.  If this

 

 

Agreement is revoked within the Revocation Period, the Company shall have no obligations under this Agreement, including the Payments.  If this Agreement is not revoked by Executive within the Revocation Period, this Agreement will be effective and enforceable on the date immediately following the last day of the seven (7) day Revocation Period (the “Effective Date”).  The offer to enter into this Agreement shall remain open for the twenty-one (21) day Consideration Period, after which time it shall be withdrawn

 

10.                               Reemployment.  Executive hereby agrees that he shall not seek reinstatement or apply for future employment with the Company or any of its affiliates and subsidiaries; and should Executive apply for reinstatement or re-employment in violation of this paragraph, neither the Company nor any of its affiliates and subsidiaries shall incur any liability by virtue of its or their refusal to hire him or consider him for employment.

 

11.                               Future Association.  Executive further agrees, as a material condition of this Agreement, that he will not to enter onto any Company property, offices, facilities, land, parking lots, buildings, structures, fixtures, installations, automobiles, trucks and any other vehicles, equipment or property, whether owned, leased, used or controlled by the Company or any of its affiliates and subsidiaries after his Resignation Date.

 

12.                               Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid or unenforceable in any respect under any applicable law, such invalidity or unenforceability shall not affect any other provision, but this Agreement shall be reformed, construed and enforced as if such invalid or unenforceable provision had never been contained herein.

 

13.                               Voluntary Execution.  Executive acknowledges that he is executing this Agreement voluntarily and of his own free will and that he fully understands and intends to be bound by the terms of this Agreement.  Further, Executive acknowledges that he received a copy of this Agreement on                  , 20  , and has had an opportunity to carefully review this Agreement with his attorney prior to executing it or warrants that he chooses not to have an attorney review this Agreement prior to signing.  Executive will be responsible for any attorneys’ fees incurred in connection with review of this Agreement by his attorneys.

 

14.                               No Assignment of Claims.  Executive hereby represents and warrants that he has not previously assigned or purported to assign or transfer to any person or entity any of the claims or causes of action herein released.

 

15.                               Complete Agreement.  This Agreement embodies the complete agreement and understanding between the parties with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or between the parties, written or oral, which may have related to the subject matter hereof in any way.  Any amendments, additions or other modifications to this Agreement must be done in writing and signed by both parties.

 

 

16.                               Counterparts.  This Agreement may be executed in separate counterparts, each of which shall be deemed to be an original and both of which taken together shall constitute one and the same agreement.

 

17.                               Successors and Assigns.  This Agreement shall bind and inure to the benefit of and be enforceable by Executive, the Company and their respective heirs, executors, personal representatives, successors and assigns, except that neither party may assign any rights or delegate any obligations hereunder without the prior written consent of the other party.  Executive hereby consents to the assignment by the Company of all of its rights and obligations hereunder to any successor to the Company by merger or consolidation or purchase of all or substantially all of the Company’s assets, provided such transferee or successor assumes the liabilities of the Company hereunder.

 

[SIGNATURES ON FOLLOWING PAGE]

 

 

IN WITNESS WHEREOF, Executive and a duly authorized representative of the Company hereby certify that they have read this Agreement in its entirety and voluntarily executed it in the presence of competent witnesses, as of the date set forth under their respective signatures.

 

	
EXECUTIVE
    	
 
    	
YETI COOLERS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
Matthew J. Reintjes
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness
    	
 
    	
Witness
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}]]