Document:

Exhibit 10(n)(iii)

 

INCENTIVE AWARD AGREEMENT

 

 

This INCENTIVE AWARD AGREEMENT (the “Agreement”),
is dated as of the 1st day of April, 2019, between Albany International Corp., a Delaware corporation (the “Company”),
and Stephen Nolan (the “Participant”).

WHEREAS, the Company adopted and maintains
the Albany International Corp. 2017 Incentive Plan (the “Plan”);

WHEREAS, Section 8 of the
Plan provides for the grant of service-based awards to Participants in the Plan, which awards may or may not be equity-based or
equity-related awards; and

WHEREAS, as an incentive
to encourage the Participant to join and remain in the employ of the Company and its subsidiaries by affording the Participant
a greater interest in the success of the Company and its subsidiaries, the Company desires to grant the Participant shares of Common
Stock as provided herein;

 

WHEREAS, the Participant
desires to obtain such Common Stock on the terms and conditions provided for herein;

 

NOW THEREFORE, in consideration
of the agreements and obligations hereinafter set forth, the parties hereto agree as follows:

 

 

1.                 
Definitions; References.

As used herein, the
following terms shall have the meanings indicated below. Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Plan.

(i)           
“Beneficiary” shall mean the person(s) designated by the Participant in a written instrument delivered
pursuant to the Plan to receive a payment due under the Plan upon the Participant’s death, signed by the Participant and
delivered to the Company prior to the Participant’s death or, if no such written instrument is on file, the Participant’s
estate.

(ii)           
“Cause” shall be deemed to exist if a majority of the members of the Board of Directors determine that
the Participant has (i) caused substantial harm to the Company with intent to do so or as a result of gross negligence in the performance
of his or her duties; (ii) not made a good faith effort to carry out his or her duties; (iii) wrongfully and substantially enriched
himself or herself at the expense of the Company; or (iv) been convicted of a felony.

(iii)           
“Determination Date” shall mean, with respect to the Service Period, the date on which the Committee
shall have determined that the Participant has fulfilled the Service

 

 

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Requirement of this Award, which date
shall not be later than the last day of May following the Service Period.

(iv)           
“Disability” shall be deemed to exist if (i) by reason of mental or physical illness the Participant
has not performed his or her duties for a period of six consecutive months; and (ii) the Participant does not return to the performance
of his or her duties within thirty days after written notice is given by Company or one of its subsidiaries that the Participant
has been determined by the Committee to be “Disabled” under the Company’s long term disability policy.

(v)           
“Distribution Date” is the first Business Day on or after May 15 of the year immediately following the
end of the Service Period.

(vi)           
“Service Period” shall mean the period that begins on April 1, 2019 and ends on March 31, 2022.

(vii)           
“Service Requirement” shall be as specified in Section 3.

(viii)           
“Share Bonus” with respect to the Service Period, shall mean the number of shares of Common Stock specified
in Section 2.

2.     
“Establishment of the Share Bonus”. Pursuant to, and subject to, the terms and conditions set forth herein
and in the Plan, the Company hereby establishes the Participant’s Share Bonus at 6,285 shares of Common Stock for the Service
Period.

3.     
“Establishment of the Service Requirement”. Pursuant to, and subject to, the terms and conditions set
forth herein and in the Plan, the Company hereby establishes the Participant’s Service Requirement as the performance of
the duties and obligations of the position of Chief Financial Officer, at the direction of the Company’s CEO and its Board
of Directors, in good faith, and to the best of his abilities, during the entire Service Period.

4.     
Determination of Service Requirement. As soon as practicable after the end of the Service Period, and in no event
later than the 15th day of the first May following the Service Period, the Committee shall determine whether the Participant
has adequately fulfilled the Service Requirement. The Committee shall have discretion to reduce (but not increase) the Share Bonus
at any time prior to the payment of such bonus to the Participant. The Committee may, but shall not be required to, set forth in
Exhibit A hereto such criteria (which may be subjective) to be used as the basis by the Committee to make any such reduction.

5.                 
Time and Method of Payment of Bonus.

a.                              
The Share Bonus shall be distributed in shares of Common Stock, less applicable taxes and withholdings, which may be satisfied
with shares of Common Stock, and shall be distributed on the Distribution Date.

b. In the event that a payment is called
for hereunder to the Participant at a time when the Participant is deceased, such payment shall be made to the Participant’s
Beneficiary.

 

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6.                 
Effect of Termination of Employment.

a.                              
In the event the Participant’s employment with the Company terminates for any reason during the Service Period, no
bonus shall be earned and the Participant shall not be entitled to any payment under Section 5 or have any other rights with respect
to the Share Bonus.

b.                             
In the event the Participant’s employment with the Company terminates at any time after the end of the Service Period
for any reason other than termination by the Company for Cause, the Share Bonus Amount shall nevertheless be determined and distributed
to the Participant in accordance with the otherwise applicable provisions of this Agreement; provided however, that any unpaid
Share Bonus shall be forfeited in its entirety should Participant engage in any business or activity, either on his own or as an
employee, which is deemed to be in competition with the Company.

c.                              
In the event the Company terminates the Participant’s employment for Cause at any time prior to the Distribution Date,
any vested but unpaid Share Bonus shall be forfeited and the Participant shall not be entitled to any other payment under Section
5 or have any other rights with respect to the Share Bonus.

7.                 
Clawback. In the event that the Company required to prepare an accounting restatement for any fiscal quarter or year
commencing after April 1, 2019 due to the material noncompliance of the Company with any financial reporting requirement, and the
Board of Directors of the Company (the “Board”) determines that the Participant’s willful commission of an act
of fraud or dishonesty or recklessness in the performance of his duties contributed to the noncompliance which resulted in the
obligation to restate the Company’s financial statements, the Board of Directors may require the Participant to repay to
the Company all or part of the Share Bonus, or forfeit such if not already paid, whether vested or unvested.

8.                 
Modification and Waiver. Except as provided in the Plan with respect
to determinations of the Committee and subject to the Company’s Board of Directors’ right to amend the Plan, neither
this Agreement nor any provision hereof can be changed, modified, amended, discharged, terminated or waived orally or by any course
of dealing or purported course of dealing, but only by an agreement in writing signed by the Participant and the Company. No such
agreement shall extend to or affect any provision of this Agreement not expressly changed, modified, amended, discharged, terminated
or waived or impair any right consequent on such a provision. The waiver of or failure to enforce any breach of this Agreement
shall not be deemed to be a waiver or acquiescence in any other breach thereof.

9.                 
Notices. All notices and other communications hereunder shall be in writing, shall be deemed to have been given if
delivered in person or by first-class registered or certified mail, return receipt requested, and shall be deemed to have been
given when personally delivered or five (5) days after mailing to the following address (or to such other address as either party
may have furnished to the others in writing in accordance herewith, except that notices of change of address shall only be effective
upon receipt):If to the Company:

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Albany International Corp.

216 Airport Drive

Rochester, New Hampshire 03867

Fax: (518) 445-2270

Attention: Legal Department

 

If to the Participant, to the most recent
address of the Participant that the Company has in its records.

10.             
Participant Acknowledgement. The Participant hereby acknowledges receipt of a copy of the Plan.

11.             
Incorporation of the Plan. All terms and provisions of the Plan are
incorporated herein and made part hereof as if stated herein. If any provision hereof and of the Plan shall be in conflict, the
terms of the Plan shall govern. All capitalized terms used herein and not defined herein shall have the meanings assigned to them
in the Plan.

12.             
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an
original, but each of which together shall constitute one and the same document.

13.             
Governing Law; Choice of Forum. This Agreement shall be governed by and interpreted in accordance with New York law,
without regard to its conflicts of law principles, and the parties hereby submit to the jurisdiction of the courts and tribunals
of New York.

14.             
Binding Effect. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by the heirs, personal
representatives and successors of the parties hereto. Nothing expressed or referred to in this Agreement is intended or shall be
construed to give any person other than the parties to this Agreement, or their respective heirs, personal representatives or successors,
any legal or equitable rights, remedy or claim under or in respect of this Agreement or any provision contained herein.

15.             
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall
remain in full force and effect and shall in no way be affected, impaired or invalidated.

16.             
Miscellaneous. The headings contained in this Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement.

 

[SIGNATUE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the Company and the
Participant have duly executed this Award Agreement as of the Award Date specified above.

 

 

ALBANY INTERNATIONAL CORP.

 

 

	 	 
	 	By:	/s/ Charles J. Silva, Jr
	 	Name:	 Charles J. Silva, Jr
	 	Title:	Vice President, General Counsel and Secretary 

 

	 	Participant
	 	 
	 	/s/ Stephen M. Nolan
	 	Stephen M. Nolan

 

 

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EXHIBIT A

 

Pursuant to Paragraph 4 of the Incentive
Award Agreement, the Committee retains discretion to reduce the Share Bonus payable to the Participant. Without limiting such discretion,
the Committee has concluded that it is likely to exercise such discretion in the event it determines, in its sole discretion, that
either,

(1)              
The Company has failed to pursue or make adequate progress in the implementation of the company-wide safety measures; or

(2)              
The Company has failed to adequately address the long-term strategic issues facing the Albany Engineered Composites business
segment sufficient to advance and ensure its long-term strength and success, including:

a.                  
Progress on engineering and manufacturing ramp-up of Safran part;

b.                 
Progress on R&T and staffing to address additional business opportunities with priority on Safran;

c.                  
Progress on maturation of AEC organization.

 

 

     6Exhibit

Exhibit 10.1

SEPARATION AND RELEASE AGREEMENT 

THIS SEPARATION AND RELEASE AGREEMENT (this “Agreement”) is made by and between Roland Desilets (the “Executive”) and Vishay Precision Group, Inc. (the “Company”).  
WHEREAS, the Company and the Executive entered into an Employment Agreement dated January 1, 2016, as amended, which governs the Executive’s employment with the Company (the “Employment Agreement”); and
WHEREAS, pursuant to a mutual agreement between the Company and the Executive, the Executive resigned his employment with the Company and its affiliates effective on April 26, 2019 (the “Termination Date”); and
WHEREAS, the Company has agreed to pay the Executive certain amounts and provide certain benefits in connection with the Executive’s resignation of his employment, subject to his execution of this Agreement.
NOW THEREFORE, in consideration of these premises and the mutual promises contained herein, and intending to be legally bound hereby, the parties agree as follows:
1.    Termination; Consideration.  
1.1.    The parties acknowledge and agree that the Executive’s employment, including all officer, director and fiduciary positions with the Company or any of its affiliates, including with respect to any benefit plan sponsored by or contributed to by the Company or any of its affiliates, held by the Executive terminated effective as of the Termination Date.  Without limiting the generality of the foregoing, the Executive hereby confirms his resignation as an officer of the Company and any of its affiliates.
1.2.    The Executive acknowledges that: (i) following the execution of this Agreement, he will have no other entitlement or rights under any severance or similar arrangement maintained by the Company or any of its affiliates, and (ii) except as otherwise provided specifically in Section 2 and Section 4 of this Agreement, the Company and its affiliates do not and will not have any other liability or obligation to the Executive.  The Executive further acknowledges that, in the absence of his execution of this Agreement, the payments specified in Section 2 below, would not otherwise be payable.
2.    Severance Payments and Benefits.  In connection with the cessation of the Executive’s employment, in satisfaction of the Company’s obligations under Section 6.2 of the Employment Agreement, in consideration of the Executive’s execution of this Agreement, and such Agreement becoming irrevocable in accordance with its terms, the Company will provide the following payments and benefits:
2.1.         the Company will continue to pay to the Executive his base salary for the eighteen (18) month period following the Termination Date (i.e., until October 26, 2020), in accordance with the Company’s payroll policies.
2.2.        the Company will waive the applicable premium otherwise payable for COBRA continuation coverage for the Executive (and, to the extent covered immediately prior to the Termination Date, his eligible dependents) for the eighteen (18) month period following the Termination Date (i.e., until October 26, 2020), or if earlier, until the date upon which the Executive receives health insurance coverage from another employer; and
2.3.    the Company will pay the Executive $47,264.44 in satisfaction of his annual performance bonus in respect of the Company’s 2019 fiscal year.

3.    Release and Covenant Not to Sue.
3.1.    In exchange for the good and valuable consideration contained in this Agreement, the Executive hereby fully and forever releases and discharges the Company, its affiliates, and each of their predecessors and successors, assigns, stockholders, officers, directors, trustees, employees, agents and attorneys, past and present (the Company and each such person or entity is referred to as a “Released Person”) from any and all claims, demands, liens, agreements, contracts, covenants, suits, actions, causes of action, obligations, controversies, debts, costs, expenses, damages, judgments, orders and liabilities, of whatever kind or nature, direct or indirect, in law, equity or otherwise, whether known or unknown, or whether asserted or unasserted, which the Executive now has, or hereafter can, shall or may have, upon or by reason of any act, transaction, practice, conduct, matter, cause or thing of any kind or nature whatsoever arising or occurring through the date of this Agreement (each, a “Claim”, and collectively, “Claims”), including, but not limited to, any Claim arising out of the Executive’s employment by the Company or the termination thereof, any Claim under the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq. (the “ADEA”), the Employee Retirement Income Security Act, 29 U.S.C. § 1001, et seq., the Pennsylvania Human Relations Act, any Claim based upon alleged wrongful or retaliatory discharge or breach of contract, any Claim for attorneys’ fees, and any other Claim under any other federal, state, local or foreign statute, ordinance, regulation, or under any contract, tort or common law theory.  
3.2.    Notwithstanding Section 3.1 above, the Executive is not releasing any Claims hereunder with respect to (i) his rights to enforce this Agreement, (ii) his rights to receive his base pay through the Termination Date and, to the extent payable under the Company’s policies, his accrued but unused paid time off, (iii) his right to be indemnified pursuant to the Company’s applicable governing documents, (iv) his rights to vested benefits under any qualified retirement plan, (v) his rights to benefits under directors & officers (D&O) insurance or other insurance coverage maintained by the Company for the benefit of former directors and officers.
3.3.    The Executive expressly represents that he has not filed a lawsuit or initiated any other administrative proceeding against a Released Person and that he has not assigned any Claim against a Released Person.  The Executive further promises not to initiate a lawsuit, to bring or to assign to any person or entity any Claim against a Released Person arising out of or in any way related to the Executive’s employment by the Company or the termination of that employment (other than those expressly set forth in Section 3.2 above).  Notwithstanding anything herein to the contrary, this Agreement will not prevent the Executive from filing a charge with the Equal Employment Opportunity Commission (the “EEOC”) (or similar state agency) or participating in any investigation conducted by the EEOC (or similar state agency); provided, however, that any claim by the Executive for personal relief in connection with such a charge or investigation (such as reinstatement or monetary damages) would be barred.
4.    Other Obligations.  In accordance with the Employment Agreement, the Company will: (i) pay, within 15 days after the Termination Date, the Executive any unpaid reasonable business expense he incurred and that he submits to the Company; (ii) cause all of the Executive’s outstanding time-vested restricted stock unit awards to become fully vested as of the Termination Date; and (iii) cause all of the Executive’s outstanding performance-based restricted stock unit awards to vest on the applicable vesting date prescribed under each such award to the extent the applicable performance criteria are realized (provided that upon a “Change in Control” (as defined in the Vishay Precision Group, Inc. 2010 Stock Incentive Program) any outstanding performance-based restricted stock unit awards will immediately vest as if the performance criteria had been satisfied at the target level).
5.    Covenants Acknowledgment.  The Executive acknowledges that the obligations specified in Section 7 of the Employment Agreement will survive the termination of his employment, that the restrictions contained therein shall remain in full force and effect and are reasonable and necessary to protect the legitimate interests of the Company, that he received adequate consideration in exchange for agreeing to those restrictions and that he will abide by those restrictions.

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6.    Rescission Right.  The Executive expressly acknowledges and recites that (i) he has read and understands the terms of this Agreement in its entirety, (ii) he has entered into this Agreement knowingly and voluntarily, without any duress or coercion; (iii) he has been advised orally and is hereby advised in writing to consult with an attorney with respect to this Agreement before signing it; (iv) he was provided twenty-one (21) calendar days after receipt of the Agreement to consider its terms before signing it; and (v) he has seven (7) calendar days from the date of signing to terminate and revoke this Agreement, in which case this Agreement shall be unenforceable, null and void.  The Executive may revoke this Agreement during those seven (7) days by providing written notice of revocation to the Company, 3 Great Valley Parkway, Suite 150, Malvern, PA 19355, attention: Chief Executive Officer.  If the Executive does not revoke this Agreement within the seven (7) day revocation period, this Agreement shall become effective on the eighth (8th) day following the Executive’s execution of the Agreement.
7.    Notice.  Nothing in this Agreement shall (i) prohibit the Executive from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of state or federal law or regulation, or (ii) require notification or prior approval by the Company of any reporting described in clause (i).         
8.    Miscellaneous.
8.1.    409A Compliance.  To the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A of the Internal Revenue Code (the “Code”) to payments due to the Executive upon or following the Termination Date, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following the Termination Date will be deferred (without interest) and paid to the Executive in a lump sum within ten days following such six month period.  This provision shall not be construed as preventing payments hereunder during such six month delay period that meet the requirements of the short-term deferral exemption under Section 409A of the Code and the “separation pay exception” under Treas. Reg. §1.409A-1(b)(9)(iii).  Each payment in a series of payments to the Executive will be deemed a separate payment.
8.2.    Return of Materials and Confidentiality.  In further consideration of the promises and payments made by the Company and its affiliates hereunder, the Executive agrees to return immediately, and before receiving payment under this Agreement, all documents, materials and other things in his possession or control relating to the Company and its affiliates, or that have been in his possession or control at the time of or since the termination of his employment with the Company, without retaining or providing to anyone else any copies, summaries, abstracts, excerpts, portions, replicas or other representations thereof.  Such documents, materials and other things shall include, without limitation, all product specifications, contracts, underwriting information, product and service lists, computer equipment, computer software, databases, other information compilations, pricing information, financial information, product supply information, parts supply information, customer identify information, customer status and financial information, product development information, source code information, object code information, human resources information, marketing materials and other documents, materials and things related to the Company and its affiliates, its customers, its business partners or its services, keys other security access badges, any credit or phone cards provided by or through the Company or its affiliates, and any equipment (including, but not limited to, cell phones, pages, laptops, computers, or other personal computing devices) that were issued by or are owned by the Company or its affiliates. 

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8.3.    Tax Withholding.  All payments provided to the Executive will be subject to tax withholding in accordance with applicable law.
8.4.    No Admission of Liability.  This Agreement is not to be construed as an admission of any violation of any federal, state or local statute, ordinance or regulation or of any duty owed by either party.  There have been no such violations, and each party specifically denies any such violations, respectively.
8.5.    No Reinstatement.  The Executive agrees that he will not apply for reinstatement with the Company or seek in any way to be reinstated, re-employed or hired by the Company in the future unless specifically approached by Company management or the Company’s or its subsidiaries’ or affiliates’ boards of directors regarding re-employment or re-hiring at a future date.
8.6.    Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the Company and the Executive and their respective successors, assigns, subsidiaries, affiliates, executors, administrators and heirs.  
8.7.    Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law.  However, if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision, and this Agreement will be reformed, construed and enforced as though the invalid, illegal or unenforceable provision had never been herein contained.
8.8.    Entire Agreement; Amendments.  The parties agree that this Agreement contains their entire agreement and understanding relating to the subject matter hereof and merges and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature relating to the subject matter hereof.  This Agreement may not be changed or modified, except by an agreement in writing signed by each of the parties hereto.
8.9.    Governing Law.  This Agreement shall be governed by, and enforced in accordance with, the laws of the State of Delaware without regard to the application of the principles of conflicts of laws.
8.10.    Execution Date; Counterparts and Facsimiles.  This Agreement may not be signed by the Executive prior to the Termination Date.  This Agreement may be executed, including execution by facsimile signature, in multiple counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument.
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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its respective duly authorized officer, and the Executive has executed this Agreement, on the date(s) below written.

VISHAY PRECISION GROUP, INC.

By: /s/ William Clancy                                                
Name & Title: William Clancy, Executive Vice President
Date: April 26, 2019

ROLAND DESILETS
/s/ Roland Desilets

Date: April 26, 2019
 

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