Document:

NN Inc. Employment Agreement - Gentry

     

    EXHIBIT
      10.4

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    THIS
      AGREEMENT
      is made
      as of this 21st day of August, 2006 by and between NN,
      Inc.,
      a
      Delaware Corporation with its principal place of business in Johnson City,
      Tennessee (the “Company”), and Frank
      T. Gentry, III (the
      “Executive”).

     

    WITNESSETH:

     

    WHEREAS,
      the
      Company recognizes the value of the Executive’s experience and expertise and
      desires to continue in its employment of the Executive as Vice President -
      General Manager U.S. Ball and Roller Division of the Company; and

     

    WHEREAS,
      the
      Executive wishes to continue to be employed by the Company in such capacity;
      and

     

    WHEREAS,
      the
      Company and the Executive mutually desire that their employment relationship
      be
      set forth under the terms of this written Employment Agreement;

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and of the promises, covenants and mutual
      agreements set forth below, and other good and valuable consideration, the
      receipt and sufficiency of which are hereby acknowledged, the parties hereto
      do
      hereby agree as follows:

     

    
      	1.  	
              Employment.
                The Company agrees to continue to employ the Executive, and the Executive
                agrees to continue to be employed by the Company, on the terms and
                conditions set forth herein.

            

    

     

    
      	2.  	
              Term
                of Employment.
                The employment of the Executive by the Company as provided herein
                shall
                commence on August 21, 2006, and end on August 20, 2007 unless further
                extended or sooner terminated as hereinafter provided. On August
                20, 2007
                and on August 20 of each year thereafter, the term of the Executive’s
                employment hereunder be extended automatically one (1) additional
                year,
                unless at least six (6) months prior to the date of such automatic
                extension the Company shall have delivered to the Executive or the
                Executive shall have delivered to the Company written notice that
                the term
                of the Executive’s employment hereunder shall not be
                extended.

            

    

     

    
      	3.  	
              Position
                and Duties.
                The Executive shall serve as the Vice President - General Manager
                U.S.
                Ball and Roller Division of the Company with responsibilities and
                authority as may from time to time be assigned by the Chief Executive
                Officer and/or the Board of Directors of the Company. Executive agrees
                to
                perform faithfully and industriously the duties which the Company
                may
                assign to him. The Executive shall devote substantially all of his
                working
                time and efforts to the business affairs of the Company, to the exclusion
                of all other employment or business interest other than passive personal
                investments, charitable, religious or civic activities. Executive
                may not
                engage, directly or indirectly, in any other business or businesses,
                whether or not similar to that of the Company, except with the consent
                of
                the Chief Executive Officer and the Board of Directors of the Company.
                

            

    

     

    
      
        
        

      

      
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      	4.  	
              Compensation
                and Benefits.
                In consideration of the Executive’s performance of his duties hereunder,
                the Company shall provide the Executive with the following compensation
                and benefits during the term of his employment
                hereunder.

            

    

     

    
      	(a)  	
              Base
                Salary.
                The Company shall pay to the Executive an aggregate base salary at
                a rate
                of 207,000 Dollars ($207,000) per annum, payable in accordance with
                the
                Company’s normal payroll practices. Such base salary may be increased from
                time to time by the Board of Directors in accordance with the normal
                business practices of the Company.

            

    

     

    
      	(b)  	
              Expenses.
                The Company, as applicable, shall promptly reimburse the Executive
                for all
                reasonable out-of-pocket expenses incurred by the Executive in his
                performance of services hereunder, including all such expenses of
                travel
                and entertainment, provided that such expenses are incurred, accounted
                for
                and documented in accordance with the Company’s regular policies and in
                compliance with IRS Guidelines. The Company reserves the right to
                establish limits on the types or amounts of business expenses that
                the
                Executive may incur.

            

    

     

    
      	(c)  	
              Employee
                Benefits.
                The Executive shall be entitled to continue to participate in all
                Company
                employee benefit plans for which he is eligible, subject to the rules
                and
                regulations applicable thereto, which were in effect on the date
                hereof
                (including, but not limited to, life, disability, and health insurance
                plans and programs and savings plans and programs) as such plans
                may
                continue or be altered by the Company Board of Directors from time
                to time
                at the Board’s discretion.

            

    

     

    
      	(d)  	
              Vacation
                and Other Absences.
                The Executive shall receive reasonable and customary vacation in
                each
                calendar year during the term of this Agreement, in accordance with
                the
                Company's present policies. The Executive shall also receive all
                paid
                absences for holidays or illnesses in accordance with the Company's
                applicable plans, policies or
                provisions.

            

    

     

    
      	5.  	
              Termination.
                Except for the provisions of Paragraphs 7, 8, 9, 10, and 11, which
                shall
                continue in full force and effect, this Agreement shall terminate
                upon the
                first to occur of the following:

            

    

     

    
      	(a)  	
              The
                death of Executive;

            

    

     

    
      	(b)  	
              The
                permanent Disability of Executive, as defined in Paragraph
                6(a)(iv);

            

    

     

    
      	(c)  	
              Termination
                of Executive’s employment by Company "For Cause" as defined in
                Paragraph 6(a)(i);

            

    

     

    
      	(d)  	
              Separation
                From Service with the Company other than For Cause or Separation
                from
                Service with the Company by Executive with "Good Reason" as defined
                in
                Paragraph 6(a)(ii). The Company reserves the right to terminate the
                Executive at any time, subject to the Company's obligation to pay
                the
                Executive Compensation as otherwise provided for herein; or
                

            

    

     

    
      
        
        

      

      
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      	(e)  	
              Separation
                From Service with the Company following a "Change in Control" as
                defined
                in Paragraph 6(a)(iii) and as provided in Paragraph 6(d)(i);
                or

            

    

     

    
      	(f)  	
              Termination
                of employment with the Company by Executive without Good Reason,
                provided
                that Executive shall give written notice of his voluntary termination
                in
                accordance with Paragraph 6(a)(v). Upon receipt of notice of intended
                termination given by Executive, the Company reserves the right to
                terminate the Executive's employment effective
                immediately.

            

    

     

    
      	6.  	
              Compensation
                and Benefits in the Event of Termination or Separation From
                Service.
                In the event of the termination of the Executive’s employment or a
                Separation From Service, as applicable, during the term of this Agreement
                or any renewal thereof, compensation and benefits shall be paid as
                set
                forth below.

            

    

     

    
      	(a)  	
              Definitions.
                For purposes of this Agreement, the following terms shall have the
                meanings indicated:

            

    

     

    
      	(i)  	
              The
                term "For Cause" shall include, but shall not be limited to (A) the
                failure of the Executive to perform the Executive's duties under
                this
                Agreement (other than as a result of physical or mental illness or
                injury), which failure, if correctable, and provided it does not
                constitute willful misconduct or gross negligence described in Subsection
                B below, remains uncorrected for 10 days following written notice
                to
                Executive by the President or the Board of Directors of the Company
                of
                such breach; (B) willful misconduct or gross negligence by the Executive,
                in either case that results in material damage to the business or
                reputation of the Company; (C) a material breach by Executive of
                this
                Agreement which, if correctable, remains uncorrected for 10 days
                following
                written notice to Executive by the Board of Directors of the Company
                of
                such breach; or (D) the Executive is convicted of a felony or any
                other
                crime involving moral turpitude (whether or not in connection with
                the
                performance by Executive of his duties under this
                Agreement).

            

    

     

    
      	(ii)  	
              The
                term "Good Reason" shall mean
                either:

            

    

     

    
      	 	
              (A)

            	
              assignment
                to the Executive of any duties inconsistent with Executive's position
                duties, responsibilities, title or office, or any other action by
                the
                Company that results in a material diminution in the Executive's
                position,
                authority, duties or responsibilities, excluding in each case any
                assignment or action that is remedied by the Company within 10 days
                after
                receipt of notice thereof from the Executive;
                or

            

    

     

    
      	 	
              (B)

            	
              any
                material failure by the Company to comply with this Agreement, other
                than
                a failure that is remedied by the Company within 10 days after receipt
                of
                notice thereof from the Executive.

            

    

     

    
      
        
        

      

      
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      	(iii)  	
              The
                term “Change in Control” shall mean
                either:

            

    

     

    
      	(A)  	
              A
                person, corporation, entity or group (1) makes a tender or exchange
                offer
                for the issued and outstanding voting stock of the Company and
                beneficially owns fifty percent (50%) or more of the issued and
                outstanding voting stock of the Company after such tender or exchange
                offer, or (2) acquires, directly or indirectly, the beneficial ownership
                of fifty percent (50%) or more of the issued and outstanding voting
                stock
                of the Company in a single transaction or a series of transactions
                (other
                than any person, corporation, entity or group for which a Schedule
                13G is
                on file with the Securities and Exchange Commission, so long as such
                person, corporation, entity or group has beneficial ownership of
                less than
                fifty percent (50%) of the issued and outstanding voting stock of
                the
                Company); or

            

    

     

    
      	(B)  	
              The
                Company is a party to a merger, consolidation or similar transaction
                and
                following such transaction, fifty percent (50%) or more of the issued
                and
                outstanding voting stock of the resulting entity is not beneficially
                owned
                by those persons, corporations or entities that constituted the
                stockholders of the Company immediately prior to the transaction;
                or

            

    

     

    
      	(C)  	
              The
                Company sells fifty percent (50%) or more of its assets to any other
                person or persons (other than an affiliate or affiliates of the Company);
                or

            

    

     

    
      	 	
              (D)

            	
              Individuals
                who, as of the date hereof, constitute the Board (the "Incumbent
                Board")
                cease for any reason to constitute at least seventy-five percent
                (75%) of
                the Board of Directors of the Company; provided, however, that any
                individual becoming a director subsequent to the date hereof, whose
                election or nomination was approved by a majority of the directors
                than
                comprising the Incumbent Board, shall be considered a member of the
                Incumbent Board, but not including any individual whose initial board
                membership is a result of an actual or threatened election contest
                (as
                that term is used in Rule 14a-11 promulgated under the Securities
                Act of
                1934, as amended) or an actual or threatened solicitation of proxies
                or
                consents by or on behalf of a party other than the
                Board.

            

    

     

    It
      is not
      intended that a Change of Control will serve as an event which entitles
      Executive to any payment hereunder.

    

    
      	(iv)  	
              The
                term “Disability” shall mean the Executive’s failure to satisfactorily
                perform his regular duties on behalf of the Company on a full-time
                basis
                for one hundred and twenty (120) days during any three hundred and
                sixty
                (360) day period, by reason of the Executive’s incapacity due to physical
                or mental illness. 

            

    

     

    
      
        
        

      

      
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      	(v)  	
              The
                term “Notice of Termination” shall mean a written notice which shall
                include the specific termination provision under this Agreement relied
                upon, and shall set forth in reasonable detail the facts and circumstances
                claimed to provide a basis for termination of the Executive’s employment.
                Any purported termination of the Executive’s employment hereunder by
                action of either party shall be communicated by delivery of a Notice
                of
                Termination to the other party. Any termination by Executive of his
                employment without Good Reason shall be made on not less than 14
                days'
                notice.

            

    

     

    
      	(vi) 
               	
              The
                term “Separation From Service” shall have the meaning contemplated in
                guidance issued by the U. S. Department of the Treasury for purposes
                of
                applying the provisions of Section 409A of the Internal Revenue
                Code.

            

    

     

    
      	                                     (vii)    
              	
              The
                term “Specified Employee” shall have the meaning contemplated
                by  Section
                409A(a)(2)(B)(i) of the Internal Revenue Code and
                guidance  issued
                thereunder by the U. S. Department of the
                Treasury.

            

    

     

    
      	(b)  	
              Separation
                From Service By Company Not For Cause Or By Executive With Good Reason
                Prior To A Change Of Control.
                In the event Executive incurs a termination of employment by action
                of the
                Company without Cause prior to a Change of Control, or by the Executive
                with Good Reason prior to a Change in Control, then upon a Separation
                From
                Service the Executive shall be entitled to receive: (1) The annual
                salary
                due to him through the date of termination of his employment which
                occurs
                in connection with the Separation From Service. In addition, Executive
                shall be entitled to receive a lump sum amount equal to his Annual
                Salary
                in effect on the date of termination of his employment which occurs
                in
                connection with the Separation From Service, payable (except as provided
                in Paragraph 6(e)) within seventy-five (75) days of said Separation
                From
                Service. (2) Any vested rights of Executive shall be paid to Executive
                in
                accordance with the Company's plans, programs or policies. (3) The
                Company
                shall promptly reimburse Executive for any and all reimbursable business
                expenses (to the extent not already reimbursed) upon Executive's
                properly
                accounting for the same. (4) The Company shall (except as provided
                in
                Paragraph 6(e)) promptly reimburse Executive for Executive's payment
                of
                the COBRA premium required in order to continue coverage for Executive
                and
                his family under the Company's existing benefit plans until the first
                anniversary of the date the COBRA continuation period begins or until
                Executive becomes eligible for similar coverage under the terms of
                new
                employment undertaken by Executive, whichever first occurs; and provided
                further, that the terms of the Company's benefit plans shall be subject
                to
                amendment during such period, to the extent that such amendments
                are
                applicable to the executive officers of the Company
                generally.

            

    

     

    
      
        
        

      

      
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      	(c)  	
              Termination
                By The Company For Cause Or By The Executive Without Good
                Reason.
                In the event the Executive’s employment hereunder is terminated (A) by
                action of the Company for Cause; (B) by action of the Executive without
                Good Reason; or (C) by reason of the Executive’s death, Disability or
                retirement, the following compensation and benefits shall be paid
                and
                provided the Executive (or his
                beneficiary):

            

    

     

    
      	(1)  	
              The
                Executive’s annual salary provided under Paragraph 5(a) through the date
                of termination, at the annual rate in effect at the time the Notice
                of
                Termination is given (or death occurs), to the extent unpaid prior
                to such
                Date of Termination;

            

    

     

    
      	(2)  	
              Any
                vested rights of Executive shall be paid to Executive or in accordance
                with the Company's plans, programs or policies. Without limiting
                the
                foregoing, in the event of the termination of Executive's employment
                due
                to death or disability, the rights and benefits of Executive (or
                his
                designated beneficiary or representatives, as applicable) under any
                Company life, health and long-term disability plans and policies
                shall be
                determined in accordance with the terms and provisions of such plans
                and
                policies; and

            

    

     

    
      	(3)  	
              The
                Company shall promptly reimburse Executive for any and all reimbursable
                business expenses (to the extent not already reimbursed) upon Executive's
                properly accounting for the same.

            

    

     

    
      	(d)  	
              Separation
                From Service Following a Change of
                Control

            

    

     

    
      	 	
              (i)

            	
              Severance
                Benefits.
                In the event that Executive incurs a termination of employment coincident
                with or followed by a Separation From Service, in either event within
                two
                (2) years following a "Change of Control" (as defined in Paragraph
                6(a)(iii)) and
                such termination or Separation From Service is either (i) Without
                Cause
                (as defined below), or
                (ii) is a Constructive Termination (as defined below), Executive
                shall
                receive, in addition to all compensation due and payable to or accrued
                for
                the benefit of Executive:

            

    

     

    
      	 	
              (A)

            	
              a
                lump sum payment equal to an amount set forth on Schedule
                A
                to
                this Agreement ("Severance Payment"). The Severance payment shall
                be made
                by wire transfer or immediately available funds to an account designated
                by Executive within seven (7) business days following the date of
                the
                Separation From Service, except as provided in Paragraph 6(e) with
                respect
                to payments to Specified Employees;

            

    

     

    
      	 	
              (B)

            	
              a
                payment equal to the annual bonus to which Executive would have been
                entitled but for Executive's termination of employment in connection
                with
                the Separation From Service, for the year of Executive's termination;
                pro-rated for the portion of the year during which he was employed
                by the
                Company (“Pro-rated Bonus”). The Pro-rated Bonus shall be payable to
                Executive within seventy-five (75) days following Executive's Separation
                From Service, except as provided in Paragraph 6(e);
                and

            

    

     

    
      
        
        

      

      
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              (C)

            	
              for
                a period of twelve months after such termination (the "Coverage Period"),
                medical, dental, prescription drug, life, accidental death and disability
                insurance coverage substantially similar to the coverage which Executive
                was receiving or entitled to receive immediately prior to the date
                of the
                termination of Executive's employment ("Insurance Benefits”), to the
                extent permitted by the terms of each particular existing benefit
                plan
                and, if not so permitted, the Company shall, except as provided in
                Paragraph 6(e), promptly reimburse Executive for Executive's payment
                of
                the COBRA premium required in order to continue coverage for Executive
                and
                his family under the Company's existing benefit plans. Notwithstanding
                the
                foregoing, Executive shall not be entitled to receive the Insurance
                Benefits (or a portion thereof) to the extent that Executive obtains
                other
                employment that provides equal or greater benefits during the Coverage
                Period. 

            

    

     

    The
      Severance Payment, Pro-rated Bonus and Insurance Benefits are collectively
      referred to in this Agreement as the "Severance Benefit."

     

    (ii) Termination
      or Separation From Service Without Cause.
      For
      purposes of this subparagraph 6(d), "Without Cause" shall mean termination
      of
      Executive by the Company for reasons other than: (i) the willful, persistent
      failure of Executive (after thirty (30) days written notice and a reasonable
      opportunity to cure ) to perform his material duties for reasons other than
      death or disability; (ii) the breach by Executive of any material provision
      of
      this Agreement; or (iii) Executive's conviction of a felony involving
      dishonesty, deceit or moral turpitude by a trial court of competent
      jurisdiction, whether or not appeal is taken.

     

    (iii) Constructive
      Termination.
      For
      purposes of this subparagraph 6(d) "Constructive Termination" shall mean: (1)
      a
      material, adverse change of Executive's responsibilities, authority, status,
      position, offices, titles, duties or reporting requirements (including
      directorships); (2) an adverse change in Executive's annual compensation and
      benefits; (3) a requirement to relocate in excess of fifty (50) miles from
      the
      Executive's then current place of employment; or (4) the breach by the Company
      of any material provision of this Agreement, other than a breach that is
      remedied by the Company within 10 days after receipt of notice thereof from
      Executive. For purposes of this definition, Executive's responsibilities,
      authority, status, position, offices, titles, duties and reporting requirements
      are to be determined as of the date of this Agreement. 

     

    (iv) Other
      Severance Benefits.
      The
      Severance Benefit payable to Executive pursuant to this subparagraph 6(d) shall
      be reduced by any severance benefits to which Executive is entitled under the
      Company's severance policies for terminated employees generally or any
      termination payments otherwise payable under this Agreement.

     

    
      
        
        

      

      
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    (v) Excise
      Tax.

     

    
      	 	
              (A)

            	
              Notwithstanding
                anything to the contrary set forth in this Agreement, in no event
                shall a
                Severance Benefit payable pursuant to this Paragraph 6(d) exceed
                an amount
                equal to the lesser of (i) 2.99 times the "base amount" (as defined
                in
                Section 280G(b)(3) of the Internal Revenue Code) of Executive's
                compensation, or (ii) such other amount which would constitute a
                "parachute payment" (as defined in Section 280G of the Code). In
                the event
                that it shall be determined that any Severance Benefit to Executive
                (whether paid or payable or distributed or distributable) would be
                subject
                to the excise tax imposed by Section 4999 of the Code, or any successor
                provision thereto (the "Excise Tax"), then Executive shall be entitled
                to
                receive from the Company an additional payment (the "Gross-Up Payment”) in
                an amount such that the net amount of the Severance Benefit and the
                Gross-Up Payment retained by the Executive after calculation and
                deduction
                of all Excise Taxes (including any interest or penalties imposed
                with
                respect to such taxes) or the Gross-Up Payment provided for in this
                Section, and taking into account any lost or reduced tax deductions
                on
                account of the Gross-Up payment, shall be equal to the Severance
                Benefit.

            

    

     

    
      	 	
              (B)

            	
              Executive
                shall notify the Company in writing of any claim by the Internal
                Revenue
                Service that, if successful, would require the payment by the Company
                of
                the Gross-Up Payment. Such notification shall be given as soon as
                practicable after Executive is informed in writing of such claim
                and shall
                apprise the Company of the nature of such claim and the date on which
                such
                claim is requested to be paid. Executive shall not pay such claim
                prior to
                the expiration of the 30-day period following the date on which Executive
                gives such notice to the Company (or such shorter period ending on
                the
                date that any payment of taxes, interest and/or penalties with respect
                to
                such claim is due). If the Company notifies Executive in writing
                prior to
                the expiration of such period that it desires to contest such claim,
                Executive shall:

            

    

     

    
      	 	
              (1)

            	
              give
                the Company any information reasonably requested by the Company relating
                to such claim;

            

    

     

    
      	 	
              (2)

            	
              take
                such action in connection with contesting such claim as the Company
                shall
                reasonably request in writing from time to time, including, without
                limitation, accepting legal representation with respect to such claim
                by
                an attorney reasonably selected by the
                Company;

            

    

     

    
      
        
        

      

      
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              (3)

            	
              cooperate
                with the Company in good faith in order to effectively contest such
                claim;
                and

            

    

     

    
      	 	
              (4)

            	
              permit
                the Company to participate in any proceedings relating to such
                claims;

            

    

     

    provided,
      however,
      that the
      Company shall bear and pay directly all costs and expenses (including additional
      interest and penalties) incurred in connection with such contest and shall
      indemnify Executive for and hold Executive harmless from, on an after-tax basis,
      any Excise Tax or income tax (including interest and penalties with respect
      thereto) imposed as a result of such representation and payment of all related
      costs and expenses. Without limiting the foregoing provisions of this section,
      the Company shall control all proceedings taken in connection with such contest
      and, at its sole option, may pursue or forgo any and all administrative appeals,
      proceedings, hearings and conferences with the taxing authority in respect
      of
      such claim and may, at its sole option, either direct Executive to pay the
      tax
      claimed and sue for a refund or contest the claim in any permissible manner,
      and
      Executive agrees to prosecute such contest to a determination before any
      administrative tribunal, in a court of initial jurisdiction and in one or more
      appellate courts, as the Company shall determine; provided,
      however, that
      if
      the Company directs Executive to pay such claim and sue for a refund, the
      Company shall advance the amount of such payment to Executive, on an
      interest-free basis, and shall indemnify Executive for and hold Executive
      harmless from, on an after-tax basis, any Excise Tax or income tax (including
      interest or penalties with respect thereto) imposed with respect to such advance
      or with respect to any imputed income with respect to such advance (including
      as
      a result of any forgiveness by the Company of such advance); provided,
      further,
      that
      any extension of the statute of limitations relating to the payment of taxes
      for
      the taxable year of Executive with respect to which such contested amount is
      claimed to be due is limited solely to such contested amount. Furthermore,
      the
      Company's control of the contest shall be limited to issues with respect to
      which a Gross-Up Payment would be payable hereunder and Executive shall be
      entitled to settle or contest, as the case may be, any other issue raised by
      the
      Internal Revenue Service or any other taxing authority.

     

    
      	(e)  	
              Payments
                to Specified Employees.
                Notwithstanding the foregoing provisions which normally require payment
                of
                certain elements of compensation within a stated period after a Separation
                From Service, in no event shall any payment to a Specified Employee
                of
                compensation which is subject to Internal Revenue Code Section 409A
                be
                made prior to the date which is six (6) months and one (1) day after
                the
                date of such Separation From Service. Any amount otherwise required
                to be
                paid within such payment suspension period shall be paid in a lump
                sum on
                the date the suspension period lapses or, if such date is not a regular
                business day of the Company, on the first regular business day of
                the
                Company which follows the expiration of the payment suspension
                period.

            

    

     

    
      
        
        

      

      
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      	(f)  	
              Continuation
                of Benefits.
                Following the termination of Executive’s employment hereunder, the
                Executive shall have the right to continue in the Company’s group health
                insurance plan or other Company benefit program as may be required
                by
                COBRA or any other federal or state law or
                regulation.

            

    

     

    
      	 	
                      
                (g)

            	
              Limit
                on Company Liability.
                Except as expressly set forth in this Paragraph 6, the Company shall
                have
                no obligation to Executive under this Agreement following a termination
                of
                Executive's employment with the Company. Without limiting the generality
                of the provision of the foregoing sentence, the Company shall not,
                following a termination of Executive's employment with the Company,
                have
                any obligation to provide any further benefit to Executive or make
                any
                further contribution for Executive's benefit except as provided in
                this
                paragraph 6.

            

    

     

    
      	7.  	
              Disclosure
                of Confidential Information.
                The Company has developed confidential information, strategies and
                programs, which include customer lists, prospects, lists, expansion
                and
                acquisition plans, market research, sales systems, marketing programs,
                computer systems and programs, product development strategies,
                manufacturing strategies and techniques, budgets, pricing strategies,
                identity and requirements of national accounts, customer lists, methods
                of
                operating, service systems, training programs and methods, other
                trade
                secrets and information about the business in which the Company is
                engaged
                that is not known to the public and gives the Company an opportunity
                to
                obtain an advantage over competitors who do not know of such information
                (collectively, "Confidential Information"). In performing duties
                for the
                Company, Executive regularly will be exposed to and work with Confidential
                Information. Executive acknowledges that such Confidential Information
                is
                critical to the Company's success and that the Company has invested
                substantial sums of money in developing the Confidential Information.
                While Executive is employed by the Company and after such employment
                ends
                for any reason, Executive will never reproduce, publish, disclose,
                use,
                reveal, show or otherwise communicate to any person or entity any
                Confidential Information unless specifically directed by the Company
                to do
                so in writing. Executive agrees that whenever Executive's employment
                with
                the Company ends for any reason, all documents containing or referring
                to
                Confidential Information as may be in Executive's possession or control
                will be delivered by Executive to the Company immediately, with no
                request
                being required.

            

    

     

    
      	8.  	
              Non-Interference
                with Personnel Relations.
                While Executive is employed by the Company and for twenty-four (24)
                months
                after such employment ends for any reason, Executive acting either
                directly or indirectly, or through any other person, firm, or corporation,
                will not hire contract with or employ any employee of the Company
                or
                induce or attempt to induce or influence any employee of the Company
                to
                terminate employment with the Company. However, this provision shall
                not
                apply to Executive in the case of the solicitation of his or her
                immediate
                family members.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	9.  	
              Non-Competition.
                While Executive is employed by the Company and for twenty-four (24)
                months
                after such employment ends for any reason, Executive will not, directly
                or
                indirectly, or through any other person, firm or corporation (i)
                be
                employed by, consult for, have any ownership interest in or engage
                in any
                activity on behalf of any competing business, or (ii) call on, solicit
                or
                communicate with any of the Company's customers (whether actual or
                potential) for the purpose of selling precision steel balls and rollers
                and other related items to such customer other than for the benefit
                of the
                Company. As used in this Agreement, the term "competing business"
                means a
                business that is a manufacturer and supplier of precision steel balls
                and
                rollers to anti-friction bearing manufacturers (excluding any ball
                and
                roller manufacturers who manufacture such products for use in their
                business or the business of their affiliates and do not supply such
                products to third parties) and the term "customer" means any customer
                (whether actual or potential) with whom Executive or any other employee
                of
                the Company had business contact on behalf of the Company during
                the
                eighteen (18) months immediately before Executive's employment with
                the
                Company ended. Notwithstanding the foregoing, this paragraph shall
                not be
                construed to prohibit Executive from owning less than five percent
                (5%) of
                the outstanding securities of a corporation which is publicly traded
                on a
                securities exchange or
                over-the-counter.

            

    

     

    
      	10.  	
              Notification
                to Subsequent Employers.
                Executive grants the Company the right to notify any future employer
                or
                prospective employer of Executive concerning the existence of and
                terms of
                this Agreement and grants the Company the right to provide a copy
                of this
                Agreement to any such subsequent employer or prospective
                employer.

            

    

     

    
      	11.  	
              Company
                Proprietary Rights.

            

    

     

    
      	 	
              (a)

            	
              Company
                to Retain Rights.
                Executive agrees that all right, title and interest of every kind
                and
                nature whatsoever in and to copyrights, patents, ideas, business
                or
                strategic plans and concepts, studies, presentations, creations,
                inventions, writings, properties, discoveries and all other intellectual
                property conceived by Executive during the term of this Agreement
                and
                pertaining to or useful in or to (directly or indirectly) the activities
                of the Company (collectively, "Company Intellectual Property") shall
                become and remain the exclusive property of the Company, and Executive
                shall have no interest therein.

            

    

     

    
      	 	
              (b)

            	
              Further
                Assurances.
                At the request of the Company, Executive shall, at the Company's
                expense
                but without additional consideration, execute such documents and
                perform
                such other acts as the Company may deem necessary or appropriate
                to vest
                in the Company or its designee such title as Executive may have to
                all
                Company Intellectual Property in which Executive may be able to claim
                any
                rights by virtue of his employment under this
                Agreement.

            

    

     

    
      	 	
              (c)

            	
              Return
                of Material.
                Upon the termination of the Executive's employment under this Agreement,
                the Executive will promptly return to the Company all copies of
                information protected by Paragraph 11(a) hereof which are in his
                possession, custody or control, whether prepared by him or others,
                and the
                Executive agrees that he shall not retain any of
                same.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	12.  	
              Representation
                and Warranty of Executive.
                Executive represents and warrants to the Company that he is not now
                under
                any obligation, of a contractual nature or otherwise, to any person,
                partnership, company or corporation that is inconsistent or in conflict
                with this Agreement or which would prevent, limit or impair in any
                way the
                performance by him of his obligations
                hereunder.

            

    

     

    
      	13.  	
              Withholding.
                Any provision of this Agreement to the contrary notwithstanding,
                all
                payments made by the Company hereunder to the Executive or his estate
                or
                beneficiaries shall be subject to the withholding of such amounts,
                if any,
                relating to tax and other payroll deductions as the Company may reasonably
                determine should be withheld pursuant to any applicable law or regulation.
                In lieu of withholding such amounts, the Company may accept other
                provisions, provided that it has sufficient funds to pay all taxes
                required by law to be withheld in respect of any or all such
                payments.

            

    

     

    
      	14.  	
              Mitigation.
                The Company's obligation to make the payments provided for in this
                Agreement and otherwise to perform its obligations hereunder shall
                not be
                affected by any set-off, counterclaim, recoupment, defense or other
                claim,
                right or action which the Company may have against Executive or others.
                In
                no event shall Executive be obligated to seek other employment or
                take any
                other action by way of mitigation of the amounts payable to Executive
                under any of the provisions of this agreement and such amounts shall
                not
                be reduced whether or not Executive obtains other
                employment.

            

    

     

    
      	15.  	
              Notices.
                All notices, requests, demands and other communications provided
                for by
                this Agreement shall be in writing and shall be sufficiently given
                if and
                when mailed in the continental United States by registered or certified
                mail, or personally delivered to the party entitled thereto, at the
                address stated below or to such changed address as the addressee
                may have
                given by a similar notice:

            

    

     

    
      	
              To
                the Company:

            	 	
              President

            
	 	 	
              NN,
                Inc.

            
	 	 	
              2000
                Waters Edge Drive

            
	 	 	
              Johnson
                City, TN 37604

            

    

    

    
      	
              To
                the Executive:

            	 	
              Frank
                T. Gentry, III

            
	 	 	
              _______________

            
	 	 	
              _______________

            
	 	 	 

    

    
      	16.  	
              Successors:
                Binding Agreement.
                The Company shall require any successor (whether direct or indirect,
                by
                purchase, merger, consolidation or otherwise) to all or substantially
                all
                of the business and/or assets of the Company, by agreement in the
                form and
                substance satisfactory to the Executive, to expressly assume and
                agree to
                perform this Agreement in the same manner and to the same extent
                that the
                Company would be required to perform it if no such succession had
                taken
                place. Failure of the Company to obtain such agreement prior to the
                effectiveness of any such succession shall be a breach of this Agreement.
                For purposes of this Agreement, “Company” shall include any successor to
                its business and/or assets as aforesaid which executes and delivers
                the
                agreement provided for in this Section or which otherwise becomes
                bound by
                all the terms and provisions of this Agreement by operation of
                law.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    This
      Agreement shall inure to the benefit of and be enforceable by the Executive’s
      personal or legal representatives, executors, administrators, successors, heirs,
      distributees, devisees and legatees. If the Executive should die while any
      amount would still be payable to him hereunder if he had continued to live,
      all
      such amounts, except to the extent otherwise provided under this Agreement,
      shall be paid in accordance with the terms of this Agreement to his devisee,
      legatee or other designee, or if there be no such designee, to the Executive’s
      estate.

     

    
      	17.  	
              Modification,
                Waiver or Discharge.
                No provision of this Agreement may be modified or discharged unless
                such
                modification or discharge is authorized by the Board of Directors
                of the
                Company and is agreed to in writing, signed by the Executive and
                by an
                officer of the Company duly authorized by the Board. However, the
                Company
                may unilaterally revise the provisions of this Agreement governed
                by the
                provisions of Internal Revenue Code Section 409A in order to make
                the
                Agreement compliant therewith. No waiver by either party hereto of
                any
                breach by the other party hereto of any condition or provision of
                this
                Agreement to be performed by such other party will be deemed a waiver
                of
                similar or dissimilar provisions or conditions at the time or at
                any time
                or at any prior or subsequent time.

            

    

     

    
      	18.  	
              Entire
                Agreement.
                This Agreement constitutes the entire understanding of the parties
                hereto
                with respect to its subject matter and supersedes all prior agreements
                between the parties hereto with respect to its subject matter, including,
                but not limited to, all employment agreements, change of control
                agreements, non-competition agreements or any other agreement related
                to
                Executive's employment with the Company; provided, however, nothing
                herein
                shall affect the terms of the Indemnification Agreement entered into
                between the Company and Executive dated August 7, 2003, which shall
                continue and remain in full force and
                effect.

            

    

     

    
      	19.  	
              Governing
                Law.
                The validity, interpretation, construction and performance of this
                Agreement shall be governed by the laws of the State of Tennessee
                to the
                extent federal law does not apply.

            

    

     

    
      	20.  	
              Resolution
                of Disputes.
                Any dispute or claim arising out of or relating to this Agreement
                shall be
                settled by final and binding arbitration in Johnson City, Tennessee
                in
                accordance with the Commercial Arbitration rules of the American
                Arbitration Association, and judgment upon the award rendered by
                the
                arbitrators may be entered in any court having jurisdiction thereof.
                The
                fees and expenses of the arbitration panel shall be equally borne
                by the
                Company and Executive. Each party shall be liable for its own costs
                and
                expenses as a result of any dispute related to this
                Agreement.

            

    

     

    
      	21.  	
              Validity.
                The invalidity or unenforceability of any provision of this Agreement
                shall not affect the validity or enforceability of the other provisions
                of
                this Agreement, which latter provisions shall remain in full force
                and
                effect.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	22.  	
              No
                Adequate Remedy At Law; Costs to Prevailing Party.
                The Company and the Executive recognize that each party may have
                no
                adequate remedy at law for breach by the other of any of the agreements
                contained herein, and particularly a breach of Paragraphs 7, 8, 9,
                or 11,
                and, in the event of any such breach, the Company and the Executive
                hereby
                agree and consent that the other shall be entitled to injunctive
                relief or
                other appropriate remedy to enforce performance of such
                agreements.

            

    

     

    
      	23.  	
              Non-Assignability.
                This Agreement, and the rights and obligations of the parties hereunder,
                are personal and neither this Agreement, nor any right, benefit or
                obligation of either party hereto, shall be subject to voluntary
                or
                involuntary assignment, alienation or transfer, whether by operation
                of
                law or otherwise, without the prior written consent of the other
                party;
                provided, however, that the Company may assign this Agreement in
                connection with a merger or consolidation involving the Company or
                a sale
                of substantially all of its assets to the surviving corporation or
                purchaser, as the case may be, so long as such assignee assumes the
                Company's obligations hereunder.

            

    

     

    
      	24.  	
              Headings.
                The section headings contained in this Agreement are for convenience
                of
                reference only and will not be deemed to control or affect the meaning
                or
                construction of any provision of this Agreement. Reference to Paragraphs
                are to Paragraphs in this
                Agreement.

            

    

     

    
      	25.  	
              Counterparts.
                This Agreement may be executed in one or more counterparts, each
                of which
                shall be deemed to be an original, but of which together will constitute
                one and the same instrument.

            

    

     

    IN
      WITNESS WHEREOF,
      the
      Executive and the Company (by action of its duly authorized officers) have
      executed this Agreement as of the date first above written.

     

    
      	
            	NN,
              INC.
	 
 	 	 
 
	Attest: 
              /s/Angela Johnson 	By: 	 /s/Roderick
              R. Baty, Chairman/CEO
	 	
              
Roderick
              R. Baty, Chairman/CEO
	 	 
	 	 EXECUTIVE:
	 	 
	 	 /s/Frank
              T. Gentry, III 

              
Frank
              T. Gentry, III
	 	 

     

     

    

     

    
      
         

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    Schedule
      A

     

    

     

    Executive's
      Severance Payment shall be a lump sum payment equal to:

     

    1. 2.0
      times
      Executive's base salary (as of the date of Executive's termination);
      plus

     

    2. 1.0
      times
      Executive's median bonus available at the following bonus target percentage:
      35%.

     

    
      
        
        

      

      
        15NN Inc. Employment Agreement - Trombetti

    EXHIBIT
      10.5

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    THIS
      AGREEMENT
      is made
      as of this 21st
      day
      of
      August, 2006 by and between NN
      Europe SpA,
      an
      Italian Corporation with its principal place of business in Pinerolo, Italy
      (the
“Company”), and Nicola
      Trombetti
      (the
“Executive”).

     

    WITNESSETH:

     

    WHEREAS,
      the
      Company recognizes the value of the Executive’s experience and expertise and
      desires to continue in its employment of the Executive as Vice President and
      Managing Director of the Company; and

     

    WHEREAS,
      the
      Executive wishes to continue to be employed by the Company in such capacity;
      and

     

    WHEREAS,
      the
      Company and the Executive mutually desire that their employment relationship
      be
      set forth under the terms of this written Employment Agreement;

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and of the promises, covenants and mutual
      agreements set forth below, and other good and valuable consideration, the
      receipt and sufficiency of which are hereby acknowledged, the parties hereto
      do
      hereby agree as follows:

     

    
      	1.  	
              Employment.
                The Company agrees to continue to employ the Executive, and the Executive
                agrees to continue to be employed by the Company, on the terms and
                conditions set forth herein.

            

    

     

    
      	2.  	
              Term
                of Employment.
                The employment of the Executive by the Company as provided herein
                shall
                commence on August 21, 2006, and end on August 20, 2007 unless further
                extended or sooner terminated as hereinafter provided. On August
                20, 2007
                and on August 20 of each year thereafter, the term of the Executive’s
                employment hereunder be extended automatically one (1) additional
                year,
                unless at least six (6) months prior to the date of such automatic
                extension the Company shall have delivered to the Executive or the
                Executive shall have delivered to the Company written notice that
                the term
                of the Executive’s employment hereunder shall not be
                extended.

            

    

     

    
      	3.  	
              Position
                and Duties.
                The Executive shall serve as the Vice President and Managing Director
                of
                the Company with responsibilities and authority as may from time
                to time
                be assigned by the Chief Executive Officer and/or the Board of Directors
                of the Company. Executive agrees to perform faithfully and industriously
                the duties which the Company may assign to her. The Executive shall
                devote
                substantially all of her working time and efforts to the business
                affairs
                of the Company, to the exclusion of all other employment or business
                interest other than passive personal investments, charitable, religious
                or
                civic activities. Executive may not engage, directly or indirectly,
                in any
                other business or businesses, whether or not similar to that of the
                Company, except with the consent of the Chief Executive Officer and
                the
                Board of Directors of the Company. 

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	4.  	
              Compensation
                and Benefits.
                In consideration of the Executive’s performance of her duties hereunder,
                the Company shall provide the Executive with the following compensation
                and benefits during the term of her employment
                hereunder.

            

    

     

    
      	(a)  	
              Base
                Salary.
                The Company shall pay to the Executive an aggregate base salary at
                a rate
                of 250,000 Euro (€250,000) per annum, payable in accordance with the
                Company’s normal payroll practices. Such base salary may be increased from
                time to time by the Board of Directors in accordance with the normal
                business practices of the Company.

            

    

     

    
      	(b)  	
              Expenses.
                The Company, as applicable, shall promptly reimburse the Executive
                for all
                reasonable out-of-pocket expenses incurred by the Executive in her
                performance of services hereunder, including all such expenses of
                travel
                and entertainment, provided that such expenses are incurred, accounted
                for
                and documented in accordance with the Company’s regular policies and in
                compliance with IRS Guidelines. The Company reserves the right to
                establish limits on the types or amounts of business expenses that
                the
                Executive may incur.

            

    

     

    
      	(c)  	
              Employee
                Benefits.
                The Executive shall be entitled to continue to participate in all
                Company
                employee benefit plans for which she is eligible, subject to the
                rules and
                regulations applicable thereto, which were in effect on the date
                hereof
                (including, but not limited to, life, disability, and health insurance
                plans and programs and savings plans and programs) as such plans
                may
                continue or be altered by the Company Board of Directors from time
                to time
                at the Board’s discretion.

            

    

     

    
      	(d)  	
              Vacation
                and Other Absences.
                The Executive shall receive reasonable and customary vacation in
                each
                calendar year during the term of this Agreement, in accordance with
                the
                Company's present policies. The Executive shall also receive all
                paid
                absences for holidays or illnesses in accordance with the Company's
                applicable plans, policies or
                provisions.

            

    

     

    
      	5.  	
              Termination.
                Except for the provisions of Paragraphs 7, 8, 9, 10, and 11, which
                shall
                continue in full force and effect, this Agreement shall terminate
                upon the
                first to occur of the following:

            

    

     

    
      	(a)  	
              The
                death of Executive;

            

    

     

    
      	(b)  	
              The
                permanent Disability of Executive, as defined in Paragraph
                6(a)(iv);

            

    

     

    
      	(c)  	
              Termination
                of Executive’s employment by Company "For Cause" as defined in
                Paragraph 6(a)(i);

            

    

     

    
      	(d)  	
              Separation
                From Service with the Company other than For Cause or Separation
                From
                Service with the Company by Executive with "Good Reason" as defined
                in
                Paragraph 6(a)(ii). The Company reserves the right to terminate the
                Executive at any time, subject to the Company's obligation to pay
                the
                Executive Compensation as otherwise provided for herein;
                or

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	(e)  	
              Separation
                From Service with the Company following a "Change in Control" as
                defined
                in Paragraph 6(a)(iii) and as provided in Paragraph 6(d)(i);
                or

            

    

     

    
      	(f)  	
              Termination
                of employment with the Company by Executive without Good Reason,
                provided
                that Executive shall give written notice of her voluntary termination
                in
                accordance with Paragraph 6(a)(v). Upon receipt of notice of intended
                termination given by Executive, the Company reserves the right to
                terminate the Executive's employment, effective
                immediately.

            

    

     

    
      	6.  	
              Compensation
                and Benefits in the Event of Termination or Separation From
                Service.
                In the event of the termination of the Executive’s employment or a
                Separation From Service, as applicable, during the term of this Agreement
                or any renewal thereof, compensation and benefits shall be paid as
                set
                forth below.

            

    

     

    
      	(a)  	
              Definitions.
                For purposes of this Agreement, the following terms shall have the
                meanings indicated:

            

    

     

    
      	(i)  	
              The
                term "For Cause" shall include, but shall not be limited to (A) the
                failure of the Executive to perform the Executive's duties under
                this
                Agreement (other than as a result of physical or mental illness or
                injury), which failure, if correctable, and provided it does not
                constitute willful misconduct or gross negligence described in Subsection
                B below, remains uncorrected for 10 days following written notice
                to
                Executive by the President or the Board of Directors of the Company
                of
                such breach; (B) willful misconduct or gross negligence by the Executive,
                in either case that results in material damage to the business or
                reputation of the Company; (C) a material breach by Executive of
                this
                Agreement which, if correctable, remains uncorrected for 10 days
                following
                written notice to Executive by the Board of Directors of the Company
                of
                such breach; or (D) the Executive is convicted of a felony or any
                other
                crime involving moral turpitude (whether or not in connection with
                the
                performance by Executive of her duties under this
                Agreement).

            

    

     

    
      	(ii)  	
              The
                term "Good Reason" shall mean
                either:

            

    

     

    
      	 	
              (A)

            	
              assignment
                to the Executive of any duties inconsistent with Executive's position
                duties, responsibilities, title or office, or any other action by
                the
                Company that results in a material diminution in the Executive's
                position,
                authority, duties or responsibilities, excluding in each case any
                assignment or action that is remedied by the Company within 10 days
                after
                receipt of notice thereof from the Executive;
                or

            

    

     

    
      	 	
              (B)

            	
              any
                material failure by the Company to comply with this Agreement, other
                than
                a failure that is remedied by the Company within 10 days after receipt
                of
                notice thereof from the Executive.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	(iii)  	
              The
                term “Change in Control” shall mean
                either:

            

    

     

    
      	(A)  	
              A
                person, corporation, entity or group (1) makes a tender or exchange
                offer
                for the issued and outstanding voting stock of the Company and
                beneficially owns fifty percent (50%) or more of the issued and
                outstanding voting stock of the Company after such tender or exchange
                offer, or (2) acquires, directly or indirectly, the beneficial ownership
                of fifty percent (50%) or more of the issued and outstanding voting
                stock
                of the Company in a single transaction or a series of transactions
                (other
                than any person, corporation, entity or group for which a Schedule
                13G is
                on file with the Securities and Exchange Commission, so long as such
                person, corporation, entity or group has beneficial ownership of
                less than
                fifty percent (50%) of the issued and outstanding voting stock of
                the
                Company); or

            

    

     

    
      	(B)  	
              The
                Company is a party to a merger, consolidation or similar transaction
                and
                following such transaction, fifty percent (50%) or more of the issued
                and
                outstanding voting stock of the resulting entity is not beneficially
                owned
                by those persons, corporations or entities that constituted the
                stockholders of the Company immediately prior to the transaction;
                or

            

    

     

    
      	(C)  	
              The
                Company sells fifty percent (50%) or more of its assets to any other
                person or persons (other than an affiliate or affiliates of the Company);
                or

            

    

     

    
      	 	
                      (D)

            	
              Individuals
                who, as of the date hereof, constitute the Board (the "Incumbent
                Board")
                cease for any reason to constitute at least seventy-five percent
                (75%) of
                the Board of Directors of the Company; provided, however, that any
                individual becoming a director subsequent to the date hereof, whose
                election or nomination was approved by a majority of the directors
                than
                comprising the Incumbent Board, shall be considered a member of the
                Incumbent Board, but not including any individual whose initial board
                membership is a result of an actual or threatened election contest
                (as
                that term is used in Rule 14a-11 promulgated under the Securities
                Act of
                1934, as amended) or an actual or threatened solicitation of proxies
                or
                consents by or on behalf of a party other than the
                Board.

            

    

     

    It
      is not
      intended that a Change of Control will serve as an event which entitles
      Executive to any payment hereunder.

     

    
      	(iv)  	
              The
                term “Disability” shall mean the Executive’s failure to satisfactorily
                perform her regular duties on behalf of the Company on a full-time
                basis
                for one hundred and twenty (120) days during any three hundred and
                sixty
                (360) day period, by reason of the Executive’s incapacity due to physical
                or mental illness. 

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	(v)  	
              The
                term “Notice of Termination” shall mean a written notice which shall
                include the specific termination provision under this Agreement relied
                upon, and shall set forth in reasonable detail the facts and circumstances
                claimed to provide a basis for termination of the Executive’s employment.
                Any purported termination of the Executive’s employment hereunder by
                action of either party shall be communicated by delivery of a Notice
                of
                Termination to the other party. Any termination by Executive of her
                employment without Good Reason shall be made on not less than 14
                days'
                notice.

            

    

     

    
      	(vi)  	
              The
                term “Separation From Service” shall have the meaning contemplated in
                guidance issued by the U. S. Department of the Treasury for purposes
                of
                applying the provisions of Section 409A of the Internal Revenue
                Code.

            

    

     

    
      	                                        (vii)
              	
              The
                term “Specified Employee” shall have the meaning contemplated
                by Section
                409A(a)(2)(B)(i) of the Internal Revenue Code and guidance issued
                thereunder by the U. S. Department of the
                Treasury.

            

    

     

    
      	(b)  	
              Separation
                From Service By Company Not For Cause Or By Executive With Good Reason
                Prior To A Change Of Control.
                In the event Executive incurs a termination of employment by action
                of the
                Company without Cause prior to a Change of Control, or by the Executive
                with Good Reason prior to a Change in Control, then upon a Separation
                From
                Service the Executive shall be entitled to receive: (1) The annual
                salary
                due to her through the date of termination of her employment which
                occurs
                in connection with the Separation From Service. In addition, Executive
                shall be entitled to receive a lump sum amount equal to her Annual
                Salary
                in effect on the date of termination of her employment which occurs
                in
                connection with the Separation From Service, payable (except as provided
                in Paragraph 6(e)) within seventy-five (75) days of said Separation
                From
                Service. (2) Any vested rights of Executive shall be paid to Executive
                in
                accordance with the Company's plans, programs or policies. (3) The
                Company
                shall promptly reimburse Executive for any and all reimbursable business
                expenses (to the extent not already reimbursed) upon Executive's
                properly
                accounting for the same. (4) The Company shall (except as provided
                in
                Paragraph 6(e)) promptly reimburse Executive for Executive's payment
                of
                the COBRA premium required in order to continue coverage for Executive
                and
                her family under the Company's existing benefit plans until the first
                anniversary of the date the COBRA continuation period begins or until
                Executive becomes eligible for similar coverage under the terms of
                new
                employment undertaken by Executive, whichever first occurs; and provided
                further, that the terms of the Company's benefit plans shall be subject
                to
                amendment during such period, to the extent that such amendments
                are
                applicable to the executive officers of the Company
                generally.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	(c)  	
              Termination
                By The Company For Cause Or By The Executive Without Good
                Reason.
                In the event the Executive’s employment hereunder is terminated (A) by
                action of the Company for Cause; (B) by action of the Executive without
                Good Reason; or (C) by reason of the Executive’s death, Disability or
                retirement, the following compensation and benefits shall be paid
                and
                provided the Executive (or his
                beneficiary):

            

    

     

    
      	(1)  	
              The
                Executive’s annual salary provided under Paragraph 5(a) through the date
                of termination, at the annual rate in effect at the time the Notice
                of
                Termination is given (or death occurs), to the extent unpaid prior
                to such
                Date of Termination;

            

    

     

    
      	(2)  	
              Any
                vested rights of Executive shall be paid to Executive or in accordance
                with the Company's plans, programs or policies. Without limiting
                the
                foregoing, in the event of the termination of Executive's employment
                due
                to death or disability, the rights and benefits of Executive (or
                her
                designated beneficiary or representatives, as applicable) under any
                Company life, health and long-term disability plans and policies
                shall be
                determined in accordance with the terms and provisions of such plans
                and
                policies; and

            

    

     

    
      	(3)  	
              The
                Company shall promptly reimburse Executive for any and all reimbursable
                business expenses (to the extent not already reimbursed) upon Executive's
                properly accounting for the same.

            

    

     

    
      	(d)  	
              Separation
                From Service Following a Change of
                Control

            

    

     

    
      	 	
              (i)

            	
              Severance
                Benefits.
                In the event that Executive incurs a termination of employment coincident
                with or followed by a Separation From Service, in either event within
                two
                (2) years following a "Change of Control" (as defined in Paragraph
                6(a)(iii)) and
                such termination or Separation From Service is either (i) Without
                Cause
                (as defined below), or
                (ii) is a Constructive Termination (as defined below), Executive
                shall
                receive, in addition to all compensation due and payable to or accrued
                for
                the benefit of Executive:

            

    

     

    
      	 	
              (A)

            	
              a
                lump sum payment equal to an amount set forth on Schedule
                A
                to
                this Agreement ("Severance Payment"). The Severance payment shall
                be made
                by wire transfer or immediately available funds to an account designated
                by Executive within seven (7) business days following the date of
                the
                Separation From Service, except as provided in Paragraph 6(e) with
                respect
                to payments to Specified Employees;

            

    

     

    
      	 	
              (B)

            	
              a
                payment equal to the annual bonus to which Executive would have been
                entitled but for Executive's termination of employment in connection
                with
                the Separation From Service, for the year of Executive's termination;
                pro-rated for the portion of the year during which he was employed
                by the
                Company (“Pro-rated Bonus”). The Pro-rated Bonus shall be payable to
                Executive within seventy-five (75) days following Executive's Separation
                From Service, except as provided in Paragraph 6(e);
                and

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	 	
              (C)

            	
              for
                a period of twelve months after such termination (the "Coverage Period"),
                medical, dental, prescription drug, life, accidental death and disability
                insurance coverage substantially similar to the coverage which Executive
                was receiving or entitled to receive immediately prior to the date
                of the
                termination of Executive's employment ("Insurance Benefits”), to the
                extent permitted by the terms of each particular existing benefit
                plan
                and, if not so permitted, the Company shall, except as provided in
                Paragraph 6(e), promptly reimburse Executive for Executive's payment
                of
                the COBRA premium required in order to continue coverage for Executive
                and
                her family under the Company's existing benefit plans. Notwithstanding
                the
                foregoing, Executive shall not be entitled to receive the Insurance
                Benefits (or a portion thereof) to the extent that Executive obtains
                other
                employment that provides equal or greater benefits during the Coverage
                Period. 

            

    

     

    The
      Severance Payment, Pro-rated Bonus and Insurance Benefits are collectively
      referred to in this Agreement as the "Severance Benefit."

     

    (ii) Termination
      or Separation From Service Without Cause.
      For
      purposes of this subparagraph 6(d), "Without Cause" shall mean termination
      of
      Executive by the Company for reasons other than: (i) the willful, persistent
      failure of Executive (after thirty (30) days written notice and a reasonable
      opportunity to cure ) to perform his material duties for reasons other than
      death or disability; (ii) the breach by Executive of any material provision
      of
      this Agreement; or (iii) Executive's conviction of a felony involving
      dishonesty, deceit or moral turpitude by a trial court of competent
      jurisdiction, whether or not appeal is taken.

     

    (iii) Constructive
      Termination.
      For
      purposes of this subparagraph 6(d) "Constructive Termination" shall mean: (1)
      a
      material, adverse change of Executive's responsibilities, authority, status,
      position, offices, titles, duties or reporting requirements (including
      directorships); (2) an adverse change in Executive's annual compensation and
      benefits; (3) a requirement to relocate in excess of fifty (50) miles from
      the
      Executive's then current place of employment; or (4) the breach by the Company
      of any material provision of this Agreement, other than a breach that is
      remedied by the Company within 10 days after receipt of notice thereof from
      Executive. For purposes of this definition, Executive's responsibilities,
      authority, status, position, offices, titles, duties and reporting requirements
      are to be determined as of the date of this Agreement. 

     

    (iv) Other
      Severance Benefits.
      The
      Severance Benefit payable to Executive pursuant to this subparagraph 6(d) shall
      be reduced by any severance benefits to which Executive is entitled under the
      Company's severance policies for terminated employees generally or any
      termination payments otherwise payable under this Agreement.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (v) Excise
      Tax.

     

    
      	 	
              (A)

            	
              Notwithstanding
                anything to the contrary set forth in this Agreement, in no event
                shall a
                Severance Benefit payable pursuant to this Paragraph 6(d) exceed
                an amount
                equal to the lesser of (i) 2.99 times the "base amount" (as defined
                in
                Section 280G(b)(3) of the Internal Revenue Code) of Executive's
                compensation, or (ii) such other amount which would constitute a
                "parachute payment" (as defined in Section 280G of the Code). In
                the event
                that it shall be determined that any Severance Benefit to Executive
                (whether paid or payable or distributed or distributable) would be
                subject
                to the excise tax imposed by Section 4999 of the Code, or any successor
                provision thereto (the "Excise Tax"), then Executive shall be entitled
                to
                receive from the Company an additional payment (the "Gross-Up Payment”) in
                an amount such that the net amount of the Severance Benefit and the
                Gross-Up Payment retained by the Executive after calculation and
                deduction
                of all Excise Taxes (including any interest or penalties imposed
                with
                respect to such taxes) or the Gross-Up Payment provided for in this
                Section, and taking into account any lost or reduced tax deductions
                on
                account of the Gross-Up payment, shall be equal to the Severance
                Benefit.

            

    

     

    
      	 	
              (B)

            	
              Executive
                shall notify the Company in writing of any claim by the Internal
                Revenue
                Service that, if successful, would require the payment by the Company
                of
                the Gross-Up Payment. Such notification shall be given as soon as
                practicable after Executive is informed in writing of such claim
                and shall
                apprise the Company of the nature of such claim and the date on which
                such
                claim is requested to be paid. Executive shall not pay such claim
                prior to
                the expiration of the 30-day period following the date on which Executive
                gives such notice to the Company (or such shorter period ending on
                the
                date that any payment of taxes, interest and/or penalties with respect
                to
                such claim is due). If the Company notifies Executive in writing
                prior to
                the expiration of such period that it desires to contest such claim,
                Executive shall:

            

    

     

    
      	 	
              (1)

            	
              give
                the Company any information reasonably requested by the Company relating
                to such claim;

            

    

     

    
      	 	
              (2)

            	
              take
                such action in connection with contesting such claim as the Company
                shall
                reasonably request in writing from time to time, including, without
                limitation, accepting legal representation with respect to such claim
                by
                an attorney reasonably selected by the
                Company;

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	 	
              (3)

            	
              cooperate
                with the Company in good faith in order to effectively contest such
                claim;
                and

            

    

     

    
      	 	
              (4)

            	
              permit
                the Company to participate in any proceedings relating to such
                claims;

            

    

     

    provided,
      however,
      that the
      Company shall bear and pay directly all costs and expenses (including additional
      interest and penalties) incurred in connection with such contest and shall
      indemnify Executive for and hold Executive harmless from, on an after-tax basis,
      any Excise Tax or income tax (including interest and penalties with respect
      thereto) imposed as a result of such representation and payment of all related
      costs and expenses. Without limiting the foregoing provisions of this section,
      the Company shall control all proceedings taken in connection with such contest
      and, at its sole option, may pursue or forgo any and all administrative appeals,
      proceedings, hearings and conferences with the taxing authority in respect
      of
      such claim and may, at its sole option, either direct Executive to pay the
      tax
      claimed and sue for a refund or contest the claim in any permissible manner,
      and
      Executive agrees to prosecute such contest to a determination before any
      administrative tribunal, in a court of initial jurisdiction and in one or more
      appellate courts, as the Company shall determine; provided,
      however, that
      if
      the Company directs Executive to pay such claim and sue for a refund, the
      Company shall advance the amount of such payment to Executive, on an
      interest-free basis, and shall indemnify Executive for and hold Executive
      harmless from, on an after-tax basis, any Excise Tax or income tax (including
      interest or penalties with respect thereto) imposed with respect to such advance
      or with respect to any imputed income with respect to such advance (including
      as
      a result of any forgiveness by the Company of such advance); provided,
      further,
      that
      any extension of the statute of limitations relating to the payment of taxes
      for
      the taxable year of Executive with respect to which such contested amount is
      claimed to be due is limited solely to such contested amount. Furthermore,
      the
      Company's control of the contest shall be limited to issues with respect to
      which a Gross-Up Payment would be payable hereunder and Executive shall be
      entitled to settle or contest, as the case may be, any other issue raised by
      the
      Internal Revenue Service or any other taxing authority.

     

    
      	(e)  	
              Payments
                to Specified Employees.
                Notwithstanding the foregoing provisions which normally require payment
                of
                certain elements of compensation within a stated period after a Separation
                From Service, in no event shall any payment to a Specified Employee
                of
                compensation which is subject to Internal Revenue Code Section 409A
                be
                made prior to the date which is six (6) months and one (1) day after
                the
                date of such Separation From Service. Any amount otherwise required
                to be
                paid within such payment suspension period shall be paid in a lump
                sum on
                the date the suspension period lapses or, if such date is not a regular
                business day of the Company, on the first regular business day of
                the
                Company which follows the expiration of the payment suspension
                period.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	(f)  	
              Continuation
                of Benefits.
                Following the termination of Executive’s employment hereunder, the
                Executive shall have the right to continue in the Company’s group health
                insurance plan or other Company benefit program as may be required
                by
                COBRA or any other federal or state law or
                regulation.

            

    

     

    
      	 	
                      
                (g)

            	
              Limit
                on Company Liability.
                Except as expressly set forth in this Paragraph 6, the Company shall
                have
                no obligation to Executive under this Agreement following a termination
                of
                Executive's employment with the Company. Without limiting the generality
                of the provision of the foregoing sentence, the Company shall not,
                following a termination of Executive's employment with the Company,
                have
                any obligation to provide any further benefit to Executive or make
                any
                further contribution for Executive's benefit except as provided in
                this
                paragraph 6.

            

    

     

    
      	7.  	
              Disclosure
                of Confidential Information.
                The Company has developed confidential information, strategies and
                programs, which include customer lists, prospects, lists, expansion
                and
                acquisition plans, market research, sales systems, marketing programs,
                computer systems and programs, product development strategies,
                manufacturing strategies and techniques, budgets, pricing strategies,
                identity and requirements of national accounts, customer lists, methods
                of
                operating, service systems, training programs and methods, other
                trade
                secrets and information about the business in which the Company is
                engaged
                that is not known to the public and gives the Company an opportunity
                to
                obtain an advantage over competitors who do not know of such information
                (collectively, "Confidential Information"). In performing duties
                for the
                Company, Executive regularly will be exposed to and work with Confidential
                Information. Executive acknowledges that such Confidential Information
                is
                critical to the Company's success and that the Company has invested
                substantial sums of money in developing the Confidential Information.
                While Executive is employed by the Company and after such employment
                ends
                for any reason, Executive will never reproduce, publish, disclose,
                use,
                reveal, show or otherwise communicate to any person or entity any
                Confidential Information unless specifically directed by the Company
                to do
                so in writing. Executive agrees that whenever Executive's employment
                with
                the Company ends for any reason, all documents containing or referring
                to
                Confidential Information as may be in Executive's possession or control
                will be delivered by Executive to the Company immediately, with no
                request
                being required.

            

    

     

    
      	8.  	
              Non-Interference
                with Personnel Relations.
                While Executive is employed by the Company and for twenty-four (24)
                months
                after such employment ends for any reason, Executive acting either
                directly or indirectly, or through any other person, firm, or corporation,
                will not hire contract with or employ any employee of the Company
                or
                induce or attempt to induce or influence any employee of the Company
                to
                terminate employment with the Company. However, this provision shall
                not
                apply to Executive in the case of the solicitation of his or her
                immediate
                family members.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	9.  	
              Non-Competition.
                While Executive is employed by the Company and for twenty-four (24)
                months
                after such employment ends for any reason, Executive will not, directly
                or
                indirectly, or through any other person, firm or corporation (i)
                be
                employed by, consult for, have any ownership interest in or engage
                in any
                activity on behalf of any competing business, or (ii) call on, solicit
                or
                communicate with any of the Company's customers (whether actual or
                potential) for the purpose of selling precision steel balls and rollers
                and other related items to such customer other than for the benefit
                of the
                Company. As used in this Agreement, the term "competing business"
                means a
                business that is a manufacturer and supplier of precision steel balls
                and
                rollers to anti-friction bearing manufacturers (excluding any ball
                and
                roller manufacturers who manufacture such products for use in their
                business or the business of their affiliates and do not supply such
                products to third parties) and the term "customer" means any customer
                (whether actual or potential) with whom Executive or any other employee
                of
                the Company had business contact on behalf of the Company during
                the
                eighteen (18) months immediately before Executive's employment with
                the
                Company ended. Notwithstanding the foregoing, this paragraph shall
                not be
                construed to prohibit Executive from owning less than five percent
                (5%) of
                the outstanding securities of a corporation which is publicly traded
                on a
                securities exchange or
                over-the-counter.

            

    

     

    
      	10.  	
              Notification
                to Subsequent Employers.
                Executive grants the Company the right to notify any future employer
                or
                prospective employer of Executive concerning the existence of and
                terms of
                this Agreement and grants the Company the right to provide a copy
                of this
                Agreement to any such subsequent employer or prospective
                employer.

            

    

     

    
      	11.  	
              Company
                Proprietary Rights.

            

    

     

    
      	 	
              (a)

            	
              Company
                to Retain Rights.
                Executive agrees that all right, title and interest of every kind
                and
                nature whatsoever in and to copyrights, patents, ideas, business
                or
                strategic plans and concepts, studies, presentations, creations,
                inventions, writings, properties, discoveries and all other intellectual
                property conceived by Executive during the term of this Agreement
                and
                pertaining to or useful in or to (directly or indirectly) the activities
                of the Company (collectively, "Company Intellectual Property") shall
                become and remain the exclusive property of the Company, and Executive
                shall have no interest therein.

            

    

     

    
      	 	
              (b)

            	
              Further
                Assurances.
                At the request of the Company, Executive shall, at the Company's
                expense
                but without additional consideration, execute such documents and
                perform
                such other acts as the Company may deem necessary or appropriate
                to vest
                in the Company or its designee such title as Executive may have to
                all
                Company Intellectual Property in which Executive may be able to claim
                any
                rights by virtue of her employment under this
                Agreement.

            

    

     

    
      	 	
              (c)

            	
              Return
                of Material.
                Upon the termination of the Executive's employment under this Agreement,
                the Executive will promptly return to the Company all copies of
                information protected by Paragraph 11(a) hereof which are in her
                possession, custody or control, whether prepared by her or others,
                and the
                Executive agrees that he shall not retain any of
                same.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	12.  	
              Representation
                and Warranty of Executive.
                Executive represents and warrants to the Company that he is not now
                under
                any obligation, of a contractual nature or otherwise, to any person,
                partnership, company or corporation that is inconsistent or in conflict
                with this Agreement or which would prevent, limit or impair in any
                way the
                performance by her obligations
                hereunder.

            

    

     

    
      	13.  	
              Withholding.
                Any provision of this Agreement to the contrary notwithstanding,
                all
                payments made by the Company hereunder to the Executive or her estate
                or
                beneficiaries shall be subject to the withholding of such amounts,
                if any,
                relating to tax and other payroll deductions as the Company may reasonably
                determine should be withheld pursuant to any applicable law or regulation.
                In lieu of withholding such amounts, the Company may accept other
                provisions, provided that it has sufficient funds to pay all taxes
                required by law to be withheld in respect of any or all such
                payments.

            

    

     

    
      	14.  	
              Mitigation.
                The Company's obligation to make the payments provided for in this
                Agreement and otherwise to perform its obligations hereunder shall
                not be
                affected by any set-off, counterclaim, recoupment, defense or other
                claim,
                right or action which the Company may have against Executive or others.
                In
                no event shall Executive be obligated to seek other employment or
                take any
                other action by way of mitigation of the amounts payable to Executive
                under any of the provisions of this agreement and such amounts shall
                not
                be reduced whether or not Executive obtains other
                employment.

            

    

     

    
      	15.  	
              Notices.
                All notices, requests, demands and other communications provided
                for by
                this Agreement shall be in writing and shall be sufficiently given
                if and
                when mailed in the continental United States by registered or certified
                mail, or personally delivered to the party entitled thereto, at the
                address stated below or to such changed address as the addressee
                may have
                given by a similar notice:

            

    

     

    
      	
              To
                the Company:

            	 	
              President

            
	 	 	
              NN,
                Inc.

            
	 	 	
              2000
                Waters Edge Drive

            
	 	 	
              Johnson
                City, TN 37604

            

    

    

    
      	
              To
                the Executive:

            	 	
              Nicola
                Trombetti 

            
	 	 	
              _______________

            
	 	 	
              _______________

            
	 	 	 

    

    
      	16.  	
              Successors:
                Binding Agreement.
                The Company shall require any successor (whether direct or indirect,
                by
                purchase, merger, consolidation or otherwise) to all or substantially
                all
                of the business and/or assets of the Company, by agreement in the
                form and
                substance satisfactory to the Executive, to expressly assume and
                agree to
                perform this Agreement in the same manner and to the same extent
                that the
                Company would be required to perform it if no such succession had
                taken
                place. Failure of the Company to obtain such agreement prior to the
                effectiveness of any such succession shall be a breach of this Agreement.
                For purposes of this Agreement, “Company” shall include any successor to
                its business and/or assets as aforesaid which executes and delivers
                the
                agreement provided for in this Section or which otherwise becomes
                bound by
                all the terms and provisions of this Agreement by operation of
                law.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    This
      Agreement shall inure to the benefit of and be enforceable by the Executive’s
      personal or legal representatives, executors, administrators, successors, heirs,
      distributees, devisees and legatees. If the Executive should die while any
      amount would still be payable to her hereunder if she had continued to live,
      all
      such amounts, except to the extent otherwise provided under this Agreement,
      shall be paid in accordance with the terms of this Agreement to her devisee,
      legatee or other designee, or if there be no such designee, to the Executive’s
      estate.

     

    
      	17.  	
              Modification,
                Waiver or Discharge.
                No provision of this Agreement may be modified or discharged unless
                such
                modification or discharge is authorized by the Board of Directors
                of the
                Company and is agreed to in writing, signed by the Executive and
                by an
                officer of the Company duly authorized by the Board. However, the
                Company
                may unilaterally revise the provisions of this Agreement governed
                by the
                provisions of Internal Revenue Code Section 409A in order to make
                the
                Agreement compliant therewith. No waiver by either party hereto of
                any
                breach by the other party hereto of any condition or provision of
                this
                Agreement to be performed by such other party will be deemed a waiver
                of
                similar or dissimilar provisions or conditions at the time or at
                any time
                or at any prior or subsequent time.

            

    

     

    
      	18.  	
              Entire
                Agreement.
                This Agreement constitutes the entire understanding of the parties
                hereto
                with respect to its subject matter and supersedes all prior agreements
                between the parties hereto with respect to its subject matter, including,
                but not limited to, all employment agreements, change of control
                agreements, non-competition agreements or any other agreement related
                to
                Executive's employment with the Company; provided, however, nothing
                herein
                shall affect the terms of the Indemnification Agreement entered into
                between the Company and Executive dated May 15, 2006, which shall
                continue
                and remain in full force and
                effect.

            

    

     

    
      	19.  	
              Governing
                Law.
                The validity, interpretation, construction and performance of this
                Agreement shall be governed by the laws of the State of Tennessee
                to the
                extent federal law does not apply.

            

    

     

    
      	20.  	
              Resolution
                of Disputes.
                Any dispute or claim arising out of or relating to this Agreement
                shall be
                settled by final and binding arbitration in Johnson City, Tennessee
                in
                accordance with the Commercial Arbitration rules of the American
                Arbitration Association, and judgment upon the award rendered by
                the
                arbitrators may be entered in any court having jurisdiction thereof.
                The
                fees and expenses of the arbitration panel shall be equally borne
                by the
                Company and Executive. Each party shall be liable for its own costs
                and
                expenses as a result of any dispute related to this
                Agreement.

            

    

     

    
      	21.  	
              Validity.
                The invalidity or unenforceability of any provision of this Agreement
                shall not affect the validity or enforceability of the other provisions
                of
                this Agreement, which latter provisions shall remain in full force
                and
                effect.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	22.  	
              No
                Adequate Remedy At Law; Costs to Prevailing Party.
                The Company and the Executive recognize that each party may have
                no
                adequate remedy at law for breach by the other of any of the agreements
                contained herein, and particularly a breach of Paragraphs 7, 8, 9,
                or 11,
                and, in the event of any such breach, the Company and the Executive
                hereby
                agree and consent that the other shall be entitled to injunctive
                relief or
                other appropriate remedy to enforce performance of such
                agreements.

            

    

     

    
      	23.  	
              Non-Assignability.
                This Agreement, and the rights and obligations of the parties hereunder,
                are personal and neither this Agreement, nor any right, benefit or
                obligation of either party hereto, shall be subject to voluntary
                or
                involuntary assignment, alienation or transfer, whether by operation
                of
                law or otherwise, without the prior written consent of the other
                party;
                provided, however, that the Company may assign this Agreement in
                connection with a merger or consolidation involving the Company or
                a sale
                of substantially all of its assets to the surviving corporation or
                purchaser, as the case may be, so long as such assignee assumes the
                Company's obligations hereunder.

            

    

     

    
      	24.  	
              Headings.
                The section headings contained in this Agreement are for convenience
                of
                reference only and will not be deemed to control or affect the meaning
                or
                construction of any provision of this Agreement. Reference to Paragraphs
                are to Paragraphs in this
                Agreement.

            

    

     

    
      	25.  	
              Counterparts.
                This Agreement may be executed in one or more counterparts, each
                of which
                shall be deemed to be an original, but of which together will constitute
                one and the same instrument.

            

    

     

    IN
      WITNESS WHEREOF,
      the
      Executive and the Company (by action of its duly authorized officers) have
      executed this Agreement as of the date first above written.

     

    
      	
            	NN,
              INC.
	 
 	 	 
 
	Attest:            	By: 	 /s/William
              C. Kelly, Jr.
	 	
              
William
              C. Kelly, Jr., Vice President/CAO
	 	 
	 	 EXECUTIVE:
	 	 
	 	 /s/Nicola
              Trombetti
              
Nicola
              Trombetti
	 	 

    

    

     

     

    

     

    
      
         

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    Schedule
      A

     

    

     

    Executive's
      Severance Payment shall be a lump sum payment equal to:

     

    1. 2.0
      times
      Executive's base salary (as of the date of Executive's termination);
      plus

     

    2. 1.0
      times
      Executive's median bonus available at the following bonus target percentage:
      35%. 

     

     

     

    
      
        
        

      

      
        15

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