Document:

EX-10.1

 Exhibit 10.1 

NN, INC. 
 PERFORMANCE
SHARE UNITS AGREEMENT 
 2015-2017 Performance Share Units Award 

NN, INC., a Delaware corporation (the “Company”), has granted to you the Performance Share Units (“Performance Share
Units”) specified in Exhibit A attached hereto, which is incorporated into this Performance Share Units Agreement (the “Agreement”) and deemed to be a part hereof. This award is subject in all respects to the terms, definitions and
provisions of the Company’s 2011 Stock Incentive Plan (the “Plan”). Capitalized terms used in this Agreement that are not specifically defined herein shall have the meanings ascribed to such terms in the Plan. 

 

	
	 Award Date: April 30, 2015
  

Performance Measurement Period: February 1, 2015 to December 31, 2017

 
 Performance Measurement Date: December 31, 2017

 
 Performance Goals: The Performance Goals and the range specifying the
number of Performance Share Units that may vest at specified levels of performance are included in Exhibit A attached hereto.
  

Vesting Date: The Performance Share Units will vest on April 30, 2018, subject to earlier vesting at the times indicated in
Sections 5 and 7.
  
 Settlement: Vested Performance Share Units
will be settled by delivery of one share of the Company’s Common Stock, $0.01 par value per share (“Shares”), for each Performance Share Unit being settled. Settlement shall occur at the time specified in Sections 3 and 5 hereof,
as applicable.

	1.	PERFORMANCE SHARE UNITS AWARD 

 The Compensation Committee of the Board of Directors of NN, Inc.
(the “Committee”) has granted to you an award of Performance Share Units as designated herein subject to the terms, conditions and restrictions set forth in this Agreement. The target number of Performance Share Units and the kind of
shares deliverable in settlement and other terms and conditions of the Performance Share Units are subject to adjustment in accordance with Section 10 hereof and Plan Section 11(a). 

 

	2.	PERFORMANCE GOALS 

 The Performance Goals are specified on the cover page of this Agreement and
Exhibit A hereto. 
  

	3.	DETERMINATION OF PERFORMANCE SHARE UNITS VESTED; FORFEITURES; SETTLEMENT 

 Except as otherwise
set forth in this Agreement, Performance Share Units shall be subject to the restrictions and conditions set forth herein during the period from the Award Date until the date such Performance Share Unit has become vested and non-forfeitable such
that there are no longer any Performance Share Units that may become potentially vested and non-forfeitable (the “Restricted Period”). 

Performance Share Units are subject to vesting based on your service to the Company during the Performance Measurement Period. The stated
vesting date is set forth on the cover page hereof. If, before the stated vesting date, there occurs an event immediately after which you are not an employee of the Company, its subsidiaries or an affiliate of the Company, you will become vested in
Performance Share Units only to the extent provided in Sections 5 or 7, and any Performance Share Units that have not vested at or before such event shall be canceled and forfeited. 

In certain termination events as specified below and in connection with a long-term Disability (as defined in Section 6), you will be
entitled to vesting of a proportionate number of the target number of Performance Share Units. The formula for determining the proportionate number of the target number of Performance Share Units you are entitled to is available by request from the
Office of the Corporate Secretary at 207 Mockingbird Lane, Johnson City, Tennessee 37604. 
 The number of Performance Share Units vested
shall be rounded to the nearest whole Performance Share Unit, unless otherwise determined by the Company officers responsible for day-to-day administration of the Plan. 

Performance Share Units that become vested shall be settled promptly within 60 days of April 30, 2018, by delivery of one Share for each
Performance Share Unit being settled; provided, however, that settlement of Performance Share Units under Sections 5(a), (b), (c) or (d) shall be subject to the applicable provisions of Plan Section 18. Until Shares are delivered
to you in settlement of Performance Share Units, you shall have none of the rights of a stockholder of the Company with respect to the Shares issuable in settlement of the Performance Share Units, 

  
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including the right to vote the shares and receive distributions. Shares of stock issuable in settlement of Performance Share Units shall be delivered to you upon settlement in certificated form
or in such other manner as the Company may reasonably determine. 
  

	4.	NONTRANSFERABILITY OF PERFORMANCE SHARE UNITS 

 During the Restricted Period and any further
period prior to settlement of your Performance Share Units, you may not sell, transfer, pledge or assign any of the Performance Share Units or your rights relating thereto. If you attempt to assign your rights under this Agreement in violation of
the provisions herein, the Company’s obligation to settle Performance Share Units or otherwise make payments shall terminate. 
  

	5.	RETIREMENT AND OTHER TERMINATIONS (EXCLUDING DEATH) 

 (a) Retirement. In the event
of your Retirement (defined below) prior to settlement of Performance Share Units, you will be deemed vested in a proportionate number of the target number of Performance Share Units granted as determined by the Committee in accordance with
Section 3. Any Performance Share Units vested under this Section 5(a) shall be settled at the date such Performance Share Units would have settled if you had continued to be employed by the Company or a subsidiary or affiliate. Following your
Retirement, any Performance Share Units that have not vested will be canceled and forfeited. “Retirement” means termination of service after the Participant has completed 10 years of service with the Company and has reached the age
of 55. 
 (b) Termination by the Company Not For Cause. In the event of your Termination Not for Cause (as defined in
Section 5(f)) by the Company or a subsidiary or affiliate, prior to vesting of Performance Share Units, Performance Share Units granted herein that have not become vested shall be canceled and forfeited, and you shall have no right to
settlement of any portion of the Performance Share Units, except as may be determined otherwise by the Committee in its the sole and absolute discretion. 

(c) Termination Following a Change in Control. In the event that your employment is terminated by the Company following a Change
in Control (a “Qualifying Termination”), you will be deemed vested in all of the Performance Share Units at the Target Performance levels set forth on Exhibit A. Upon your Qualifying Termination, any Performance Share Units that
have not vested under this Section 5(c) will be canceled and forfeited. 
 (d) Other Terminations. If you cease to
be an employee of the Company and its subsidiaries and affiliates for any reason other than Retirement, Termination Not for Cause, a Qualifying Termination within the Protected Period following a Change in Control, or death, Performance Share Units
granted herein that have not vested shall be canceled and forfeited, and you shall have no right to settlement of any portion of the Performance Share Units, except as may be determined otherwise by the Committee in its the sole and absolute
discretion. 
 (e) Special Distribution Rules to Comply with Code Section 409A. The Performance Share Units constitute a
“deferral of compensation” under Section 409A of the Internal Revenue Code (the “Code”), based on Internal Revenue Service regulations and guidance in effect on the Award Date. As a result, the timing of settlement of your
Performance Share Units will be 

  
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subject to applicable limitations under Code Section 409A. Specifically, each tranche of Performance Share Units will be subject to Plan Section 18, including the following restrictions
on settlement: 
 (i) Settlement of the Performance Share Units under Section 5(c) upon a Qualifying Termination will be
subject to the requirement that the termination constitute a “separation from service” under Treas. Reg. § 1.409A-1(h). 

(ii) Settlement of the Performance Share Units under Sections 5(a) or 5(b) in the event of a Change in Control will occur
only if an event relating to the Change in Control constitutes a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company within the meaning of Treas. Reg.
§ 1.409A-3(i)(5) and only if your Retirement under Section 5(a) or Termination Not for Cause under Section 5(b) constitute a “separation from service” under Treas. Reg. § 1.409A-1(h). 

(f) Definition of “Termination Not for Cause.” For purposes of this Section 5, a “Termination Not for
Cause” means a termination initiated by the Company or a subsidiary of the Company for reason other than (i) for “Cause” as defined in any employment agreement between the Participant and the Company or (ii), if there is no
employment agreement between the Participant and the Company, willful misconduct, activity deemed detrimental to the interests of the Company and its subsidiaries and affiliates, or Disability (as defined in Section 6 below). 

(g) Determination of Termination Date. For purposes of the Performance Share Units, your employment will be considered
terminated as of the date you are no longer actively providing services to the Company or one of its subsidiaries or affiliates (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment
laws in the jurisdiction where you are employed or the terms of your employment agreement, if any), and unless otherwise expressly provided in this Agreement or determined by the Company, your right to vest in the Performance Share Units under the
Plan, if any, will terminate as of such date and will not be extended by any notice period (e.g., your period of service would not include any contractual notice period or any period of “garden leave” or similar period mandated under
employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any); the Company shall have the exclusive discretion to determine when you are no longer actively providing services for purposes of your
Performance Share Units (including whether you may still be considered to be providing services while on a leave of absence). 
  

	6.	DISABILITY OF PARTICIPANT 

 For purposes of this Agreement, “Disability” or
“Disabled” shall mean qualifying for and receiving payments under a disability plan of the Company or any subsidiary or affiliate either in the United States or in a jurisdiction outside of the United States, and in jurisdictions outside
of the United States shall also include qualifying for and receiving payments under a mandatory or universal disability plan or program managed or maintained by the government. If you become Disabled, you will not be deemed to have terminated
employment for the period during which, under the applicable Disability pay plan of the Company or a subsidiary or affiliate, you are deemed to be employed and continue to receive Disability payments. Upon the cessation of

  
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payments under such Disability pay plan, (i) if you return to employment status with the Company or a subsidiary or affiliate, you will not be deemed to have terminated employment, and
(ii) if you do not return to such employment status, you will be deemed to have terminated employment at the date of cessation of such Disability payments, with such termination treated for purposes of the Performance Share Units as a
Retirement, death, Termination Not for Cause or voluntary termination based on your circumstances at the time of such termination. 
  

	7.	DEATH OF PARTICIPANT 

 In the event of your death while employed by the Company or a subsidiary
and prior to settlement of Performance Share Units, you will be deemed vested in a proportionate number of the target number of Performance Share Units. In the case of your death, any Performance Share Units that have not vested will be
canceled and forfeited. 
  

	8.	RESPONSIBILITY FOR TAXES 

 You acknowledge that, regardless of any action taken by the Company,
any subsidiary or affiliate of the Company, including your employer (“Employer”), the ultimate liability for all income tax (including federal, state, local and non-U.S. taxes), social security, payroll tax, fringe benefits tax, payment on
account or other tax-related items related to your participation in the Plan and legally applicable to you or deemed by the Company or the Employer to be an appropriate charge to you even if legally applicable to the Company or the Employer
(“Tax-Related Items”) is and remains your responsibility and may exceed the amount actually withheld by the Company or the Employer. 

By your acceptance of the Performance Share Units, you authorize the Company and/or the Employer, or their respective agents, at their
discretion, to satisfy its withholding obligations by one or a combination of the following: 
 (a) withholding from your wages or other
cash compensation paid to you by the Company; or 
 (b) withholding from proceeds of the sale of Shares acquired upon settlement of the
Performance Share Units either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf pursuant to this authorization without further consent); or 

(c) withholding Shares to be issued upon settlement of the Performance Share Units. 

You agree to pay to the Company, including through withholding from your wages or other cash compensation paid to you by the Company, any
amount that the Company may be required to withhold or account for as a result of your participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the Shares or the proceeds of the
sale of Shares, if you fail to comply with your obligations. 

  
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	9.	DIVIDENDS AND OTHER ADJUSTMENTS 

 (a) Dividends or dividend equivalents that may be paid with
respect to the Performance Share Units that have vested, shall be paid in cash at the same time that shares have been delivered to you in settlement of the Performance Share Units in accordance with Section 3. 

(b) The target number of Performance Share Units, the kind of securities deliverable in settlement of Performance Share Units and/or any
performance measure based on per share results shall be appropriately adjusted in order to prevent dilution or enlargement of your rights with respect to the Performance Share Units upon the occurrence of an event referred to in Plan
Section 11(a). In furtherance of the foregoing, in the event of an equity restructuring which affects the Shares, you shall have a legal right to an adjustment to your Performance Share Units which shall preserve without enlarging the value of
the Performance Share Units, with the manner of such adjustment to be determined by the Committee in its discretion. Any Performance Share Units or related rights which directly or indirectly result from an adjustment to a Performance Share Unit
hereunder shall be subject to the same risk of forfeiture and other conditions as apply to the granted Performance Share Unit and will be settled at the same time as the granted Performance Share Unit. 

 

	10.	EFFECT ON OTHER BENEFITS 

 In no event shall the value, at any time, of the Performance Share
Units or any other payment or right to payment under this Agreement be included as compensation or earnings for purposes of any other compensation, retirement, or benefit plan offered to employees of the Company or its subsidiaries or affiliates
unless otherwise specifically provided for in such plan. Performance Share Units and the income and value of the same are not part of normal or expected compensation or salary for any purposes including, but not limited to, calculation of any
severance, resignation, termination, redundancy or end-of-service payments, bonuses, long-service awards, pension or retirement benefits, or similar payments. 
  

	11.	ACKNOWLEDGMENT OF NATURE OF PLAN AND PERFORMANCE SHARE UNITS 

 In accepting the Performance
Share Units, you acknowledge, understand and agree that: 
 (a) The Plan is established voluntarily by the Company, it is discretionary in
nature and may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan; 
 (b) The
award of Performance Share Units is voluntary and occasional and does not create any contractual or other right to receive future awards of Performance Share Units, or benefits in lieu of Performance Share Units even if Performance Share Units have
been awarded in the past; 
 (c) All decisions with respect to future awards of Performance Share Units or other awards, if any, will be at
the sole discretion of the Company; 

  
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 (d) Your participation in the Plan is voluntary; 

(e) The Performance Share Units and the Shares subject to the Performance Share Units are not intended to replace any pension rights or
compensation; 
 (f) Unless otherwise agreed with the Company, the Performance Share Units and the Shares subject to the Performance Share
Units, the income and value of the same, are not granted as consideration for, or in connection with, the service you may provide as a director of a subsidiary or an affiliate of the Company; 

(g) The future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty; 

(h) No claim or entitlement to compensation or damages arises from the forfeiture of Performance Share Units, resulting from termination of
your employment or other service relationship with the Company, or any of its subsidiaries or affiliates or the Employer (for any reason whatsoever and whether or not later found to be invalid or in breach of employment laws in the jurisdiction
where you are employed or the terms of your employment agreement, if any), and in consideration of the grant of the Performance Share Units to which you are otherwise not entitled, you irrevocably agree never to institute any claim against the
Company, any of its subsidiaries or affiliates or the Employer, waive your ability, if any, to bring such claim, and release the Company, any subsidiary or affiliate and/or the Employer from any such claim; if, notwithstanding the foregoing, any
such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, you shall be deemed irrevocably to have agreed not to pursue such claim and agree to execute any and all documents necessary to request dismissal or
withdrawal of such claim; 
 (i) Unless otherwise provided in the Plan or by the Company in its discretion, the Performance Share Units and
the benefits evidenced by this Agreement do not create any entitlement to have the Performance Share Units or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any
corporate transaction affecting the shares of the Company; 
 (j) The following provisions apply only if you are providing services outside
the United States: (i) the award and the Shares subject to the Performance Share Units are not part of normal or expected compensation or salary for any purpose; (ii) neither the Company, the Employer nor any subsidiary or affiliate of the
Company shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the Performance Share Units or of any amounts due to you pursuant to the settlement of the
Performance Share Units or the subsequent sale of any Shares acquired upon settlement; and 
 (k) You agree that the Company may recover any
incentive-based compensation received by you under this Agreement, including, without limitation, pursuant to Sections 5, 6, and 7 hereof, if such recovery is pursuant to a clawback or recoupment policy approved by the Committee. 

  
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	12.	NO ADVICE REGARDING GRANT 

 The Company is not providing any tax, legal or financial advice, nor
is the Company making any recommendations regarding your participation in the Plan or your acquisition or sale of the underlying Shares. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your
participation in the Plan before taking any action related to the Plan. 
  

	13.	RIGHT TO CONTINUED EMPLOYMENT 

 Nothing in the Plan or this Agreement shall confer on you any
right to continue in the employ of the Company or any subsidiary or affiliate of the Company or any specific position or level of employment with the Company or any subsidiary or affiliate of the Company or affect in any way the right of the Company
or any subsidiary or affiliate of the Company to terminate your employment without prior notice at any time for any reason or no reason. 
  

	14.	ADMINISTRATION; UNFUNDED OBLIGATIONS 

 The Committee shall have full authority and discretion,
subject only to the express terms of the Plan, to decide all matters relating to the administration and interpretation of the Plan and this Agreement, and all such Committee determinations shall be final, conclusive, and binding upon the Company,
any subsidiary or affiliate, you, and all interested parties. Any provision for distribution in settlement of your Performance Share Units and other obligations hereunder shall be by means of bookkeeping entries on the books of the Company and shall
not create in you or any beneficiary any right to, or claim against any, specific assets of the Company, nor result in the creation of any trust or escrow account for you or any beneficiary. You and any of your beneficiaries entitled to any
settlement or other distribution hereunder shall be a general creditor of the Company. 
  

	15.	DEEMED ACCEPTANCE 

 You are required to accept the terms and conditions set forth in this
Agreement prior to the first anniversary of the Award Date in order for you to receive the award granted to you hereunder. If you wish to decline this award, you must reject this Agreement prior to the first anniversary of the Award Date. For your
benefit, if you have not rejected the Agreement prior to the first anniversary of the Award Date, you will be deemed to have automatically accepted this award and all the terms and conditions set forth in this Agreement. Deemed acceptance will allow
the shares to be released to you in a timely manner and once released, you waive any right to assert that you have not accepted the terms hereof. 
  

	16.	AMENDMENT TO PLAN 

 This Agreement shall be subject to the terms of the Plan, as amended from
time to time, except that, subject to Sections 23 and 26 below, Performance Share Units which are the subject of this Agreement may not be materially adversely affected by any amendment or termination of the Plan approved after the Award Date
without your written consent. 

  
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	17.	SEVERABILITY AND VALIDITY 

 The various provisions of this Agreement are severable and if any
one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable. 
  

	18.	GOVERNING LAW, JURISDICTION AND VENUE 

 This Agreement and award grant shall be governed by the
substantive laws (but not the choice of law rules) of the State of Delaware. 
  

	19.	SUCCESSORS 

 This Agreement shall be binding upon and inure to the benefit of the successors,
assigns, and heirs of the respective parties. 
  

	20.	DATA PRIVACY 

 You hereby explicitly and unambiguously consent to the collection, use and
transfer, in electronic or other form, of your personal data as described in this Agreement by and among, as applicable, the Employer, the Company and its subsidiaries for the exclusive purpose of implementing, administering and managing your
participation in the Plan. 
 You understand that the Company, any subsidiary and/or the Employer may hold certain personal
information about you, including, but not limited to, your name, home address and telephone number, date of birth, social security number or other identification number (e.g., resident registration number), salary, nationality, job title, any shares
of stock or directorships held in the Company, details of all Performance Share Units or any other entitlement to shares awarded, canceled, vested, unvested or outstanding in your favor (“Data”), for the purpose of implementing,
administering and managing the Plan. 
 You understand that Data may be transferred to a stock plan service provider as may be
selected by the Company in the future, which assists in the implementation, administration and management of the Plan. You understand that the recipients of the Data may be located in the United States or elsewhere, and that the recipient’s
country (e.g. the United States) may have different data privacy laws and protections than your country. You understand that if you reside outside the United States, you may request a list with the names and addresses of any potential recipients of
the Data by contacting your local human resources representative. You authorize the Company and other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data as may be required to a broker,
escrow agent or other third party with whom the Shares received upon vesting of the Performance Share Units may be deposited. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation
in the Plan. You understand that if you reside outside the United States, you may, at any time, view Data, request additional information 

  
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about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting your local human resources
representative. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent, or if you later seek to revoke your consent, your employment status or service and career with the Employer will
not be adversely affected; the only consequence of refusing or withdrawing your consent is that the Company would not be able to grant you Performance Share Units or other equity awards or administer or maintain such awards. Therefore, you
understand that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local
human resources representative. 
  

	21.	ELECTRONIC DELIVERY AND ACCEPTANCE 

 The Company may, in its sole discretion, decide to deliver
any documents related to current or future participation in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established
and maintained by the Company or a third party designated by the Company. 
  

	22.	INSIDER TRADING/MARKET ABUSE LAWS 

 You acknowledge that, depending on your country of
residence, you may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell Shares or rights to Shares ( e.g., Performance Share Units) under the Plan during such times as you are
considered to have “inside information” regarding the Company (as defined by the laws in your country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any
applicable Company insider trading policy. You acknowledge that it is your responsibility to comply with any applicable restrictions, and you should speak to your personal advisor on this matter. 

 

	23.	LANGUAGE 

 If you have received this Agreement or any other document related to the Plan
translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control. 
  

	24.	COMPLIANCE WITH LAWS AND REGULATIONS 

 Notwithstanding any other provisions of the Plan or this
Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Shares, you understand that the Company will not be obligated to issue any Shares pursuant to the vesting and
settlement of the Performance Share Units, if the issuance of such Shares shall constitute a violation by you or the Company of any provision of law or regulation of any governmental authority. Further, you agree that the Company shall have
unilateral authority to amend the Plan and the Agreement without your consent to the extent necessary to comply with securities or other laws applicable to issuance of shares. Any determination by the Company in this regard shall be final, binding
and conclusive. 

  
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	25.	ENTIRE AGREEMENT AND NO ORAL MODIFICATION OR WAIVER 

 This Agreement contains the entire
understanding of the parties. This Agreement shall not be modified or amended except in writing duly signed by the parties except that the Company may adopt a modification or amendment to the Agreement that is not materially adverse to you in
writing signed only by the Company. Any waiver of any right or failure to perform under this Agreement shall be in writing signed by the party granting the waiver and shall not be deemed a waiver of any subsequent failure to perform. 

 

	26.	ADDENDUM 

 Your Performance Share Units shall be subject to any special provisions set forth in
the Addendum to this Agreement for your country, if any. If you relocate to one of the countries included in the Addendum, the special provisions for such country shall apply to you, to the extent the Company determines that the application of such
provisions is necessary or advisable for legal or administrative reasons. The Addendum, if any, constitutes part of this Agreement. 
  

	27.	FOREIGN ASSET/ACCOUNT REPORTING REQUIREMENTS AND EXCHANGE CONTROLS 

 Your country may have
certain foreign asset and/or foreign account reporting requirements and exchange controls which may affect your ability to acquire or hold Shares under the Plan or cash received from participating in the Plan (including from any dividends paid on
Share sale proceeds resulting from the sale of Shares acquired under the Plan) in a brokerage or bank account outside your country. You may be required to report such accounts, assets or transactions to the tax or other authorities in your country.
You also may be required to repatriate sale proceeds or other funds received as a result of your participation in the Plan to your country through a designated bank or broker within a certain time after receipt. You acknowledge that it is your
responsibility to be compliant with such regulations, and you should consult your personal legal advisor for any details. 

  
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	28.	IMPOSITION OF OTHER REQUIREMENTS 

 The Company reserves the right to impose other requirements
on your participation in the Plan, on the Performance Share Units and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require you to sign any
additional agreements or undertakings that may be necessary to accomplish the foregoing. 
  

			
	For the Company:
	
	NN, INC.
		
	By:		  

		
	Name:		  

		
	Title:		  

 I have read this Agreement in its entirety. I understand that this award has been granted to provide a
means for me to acquire and/or expand an ownership position in Bristol-Myers Squibb Company. I acknowledge and agree that sales of Shares will be subject to the Company’s policies regulating trading by employees. In accepting this award, I
hereby agree that any vendor the Company may choose to administer the Plan may provide the Company with any and all account information for the administration of this award. 

I hereby agree to all the terms, restrictions and conditions set forth in the Agreement, including, but not limited to, post-employment
obligations related to non-competition and non-solicitation. 
  

			
	  

		
	By:		  

		
	Name:		  

		
	Title:		  

  
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 Exhibit A 

PERFORMANCE SHARE UNITS AGREEMENT 

2015-2017 Performance Share Units Award 

Performance Goals 
 The
target number of Performance Share Units granted to Participant is as follows: 
  

			
	 Performance Measure
	  	Target Number of
Performance Share Units
	 Relative TSR
	  	
		
	 ROIC
	  	

 With respect to Performance Share Units measured by Relative TSR, Participant shall earn 50% of the target
number of Performance Share Units for “Threshold Performance,” 100% of the target number of Performance Share Units for “Target Performance,” and 150% of the target number of Performance Share Units for “Maximum
Performance.” With respect to Performance Share Units measured by ROIC, Participant shall earn 35% of the target number of Performance Share Units for “Threshold Performance,” 100% of the target number of Performance Share Units for
“Target Performance,” and 150% of the target number of Performance Share Units for “Maximum Performance.” For performance levels falling between the values shown below, the percentages will be determined by interpolation. The
following tables establish the performance goals with respect to Relative TSR and ROIC: 
 Relative TSR: 

 

					
	Threshold Performance
(50% of Shares)	 	Target Performance
(100% of Shares)	 	Maximum Performance
(150% of Shares)
	35th Percentile	 	50th Percentile	 	75th Percentile

 ROIC: 
  

					
	Threshold Performance
(35% of Shares)	 	Target Performance
(100% of Shares)	 	Maximum Performance
(150% of Shares)
	11%	 	12.5%	 	14%

 In the event that Relative TSR and the S&P Small Cap 600 Index are negative over the Performance
Measurement Period, and NN’s relative TSR for such period was greater than the S&P Small Cap 600 Index, then the Performance Goal with respect to Relative TSR shall be deemed to have met at Target Performance, and 100% of the target number
of Performance Share Units shall vest, but not more than, nor less than, 100%. 

 “Relative Total Shareholder Return (Relative TSR)” shall mean the change in the
value, expressed as a percentage of a given dollar amount invested in a company’s most widely publicly traded stock over the Performance Measurement Period, taking into account both stock price appreciation (or depreciation) and the
reinvestment of dividends (including the cash value of non-cash dividends) in additional stock of the company. The twenty (20) trading-day average closing values of the Company’s Common Stock and the S&P Small Cap 600 Index, as
applicable ( i.e., average S&P Small Cap 600 Index closing values over the period of 20 trading days ending on the Award Date and the final 20 trading days ending on the Performance Measurement Date), shall be used to value the
Company’s Common Stock and the S&P Small Cap 600 Index, as applicable, at the beginning and end of the Performance Measurement Period. At the end of the Performance Measurement Period, the Company will calculate the total share returned for
NN and compare that relative to the total shareholder return for the S&P Small Cap 600 Index for the Performance Measurement Period in order to determine whether Threshold Performance, Target Performance or Maximum Performance with respect to
Relative TSR has been met.  
 “TSR Percentile Rank” shall mean the percentage of TSR values of the S&P Small Cap 600
Index during the Performance Measurement Period as compared to the Company’s TSR during the Performance Measurement Period. 

“Return On Invested Capital (ROIC)” shall be determined based on the following formula: 

ROIC = (Net Operating Profit after Tax + JV Income) / (Property, Plant and Equipment + Noncash Working Capital) 

ROIC will be based on the consolidated results of the Company, including all acquisitions and divestitures, provided, however, that the ROIC
calculation will be based on “Adjusted Operating Results” and will exclude any items that are publicly excluded from “Adjust Net Income” as specified in the Company’s press releases and SEC filings from time to time. 

In determining ROIC for each year of the Performance Measurement Period, ROIC will be measured on a quarterly basis to determine an average
ROIC for the year. At the end of the Performance Measurement Period, the Company will calculate the annual average ROIC over the Performance Measurement Period to determine whether Threshold Performance, Target Performance or Maximum Performance has
been obtained. 

  
 A-2exh_102.htm

Exhibit 10.2

 

Parnell Pharmaceuticals Holdings Ltd

2014 Omnibus Incentive Plan

 

Award Agreement

 

 

 

 

 

You have been selected to be a Participant in the Parnell Pharmaceuticals Holdings Ltd 2014 Omnibus Incentive Plan (the “Plan”), as specified below:

 

 

Participant:                                                                                                                                                                       

 

Date of Award:                                                                                                                                                                  

 

Term:                                                                                                                                                                                

 

Options Awarded:                                                                                                                                                             

 

Exercise Price:                                                                                                                                                                

 

Equity Restricted Share Units Awarded:                                                                                                                    

 

Bonus Restricted Share Units Awarded:                                                                                                                    

 

	
This document constitutes part of the prospectus covering securities that have been registered under the Securities Act of 1933.

THIS AWARD AGREEMENT (this “Agreement”), effective as of the Date of Award set forth above, represents an award of the options and units set forth above (the “Equity Award”) by Parnell Pharmaceuticals Holdings Ltd, an Australian company limited by shares (the “Company”), to the Participant named above, pursuant to the provisions of the Plan.

 

The Plan provides a complete description of the terms and conditions governing the Equity Award.  If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement.  All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein.  For purposes of this Agreement, the term “Parnell” shall mean the Company, its subsidiaries and affiliates.  In consideration of the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties hereto agree as follows:

 

1. Employment by the Company and Lapse of Restrictions.  The Equity Award granted hereunder is awarded in consideration of future services and on the condition that the Participant remains employed by Parnell from the Date of Award through (and including) the applicable vesting date (the “Lapse of Restrictions Date”) (this time period is referred to herein as the “Restriction Period”).  However, neither such condition regarding further employment nor the award of the Equity Award shall impose upon Parnell any obligation to retain the Participant in its employ for any given period or upon any specific terms of employment.  Except as may otherwise be provided in this Agreement and in the Plan, all restrictions pertaining to the Equity Award shall lapse and terminate on the Lapse of Restrictions Date.

 

 

  

  

2. Restricted Share Units.

 

(a) Evidence of Award of Restricted Share Units (“RSUs”).  As soon as practicable following the execution of this Agreement, the Company’s stock transfer agent or its designee shall credit the RSUs awarded under this Agreement (Equity and Bonus, as applicable) to the Participant’s RSU account, which RSUs shall be subject to the restrictions applicable thereto until such time as all conditions and/or restrictions applicable to such RUSs have been satisfied.

 

(b) Vesting of Equity RSUs. The Equity RSUs will vest over a ___________________________ period following the Date of Award, with _____________ percent vesting  _____________ (each, an “Equity RSU Vesting Date”).

 

(c) Vesting of Bonus RSUs.  The Bonus RSUs will vest over a ______________ period following the Date of Award, with ________ percent vesting on (the “Bonus RSU Vesting Date”) (any Bonus RSU Vesting Date or Equity RSU Vesting Date may be referred to generally as a “Vesting Date”).

 

(d) Form and Timing of Settlement of RSUs.  Within thirty (30) calendar days follow­ing the applicable Vesting Date (a “Payment Date”), the Company will deliver to the Participant Ordinary Shares in settlement of the vested RSUs, less applicable tax withholdings.  For withholding purposes, the value of each vested RSU will be equal to the fair market value of one ordinary share of the Company as of the applicable Vesting Date.

 

(e) Voting Rights and Dividends.  The Participant will not have voting rights or the right to receive Dividend Equivalents with respect to the RSUs.

 

(f) Termination of Employment for Other Reasons.  In the event that the Participant, prior to the Payment Date, terminates employment with Parnell for any reason, all RSUs awarded to the Participant under this Agreement shall be forfeited by the Participant; provided, however, that the Administrator, in its sole discretion, may waive such automatic forfeiture provision.  When the Administrator exercises its sole discretion regarding forfeiture, it may take into consideration any individual facts and circumstances that it deems relevant for purposes of achieving the desired objectives under the Plan.  Any determination regarding forfeiture under this Section 2(f) for a given Participant shall not dictate any required result for a different Participant in a similar or different situation.

 

3. Share Options.

 

(a) Award of Share Options (“Options”).  Subject to the terms and conditions of the Plan and this Agreement, the Participant is hereby granted an option to acquire up to the number of Share Options Awarded of the Ordinary Shares of the Company at the Exercise Price set forth above.  This award is not intended to qualify as an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended.

 

  

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(a) Vesting of Options.  The Options will vest as follows: 

                                                ____________________________________________________________________________________________________________________

 

                                                ____________________________________________________________________________________________________________________

 

                                               ____________________________________________________________________________________________________________________

 

 

(b) Term.  The Options shall not be exercisable, either in whole or in part, on or after the tenth anniversary of the Date of Award (the “Expiration Date”).  Any Options not exercised by the Expiration Date shall automatically be cancelled on the Expiration Date.

 

(c) Exercise of Options.  Any vested Options may be exercised from time to time, in whole or in part, by written notice delivered to and received by the Administrator prior to the Expiration Date, so long as the Participant is in compliance with the Company’s insider trading policy and pre-clearance process.  This notice must:

 

(i) be signed by the Participant;

 

(ii) state the Participant’s election to exercise the Options;

 

(iii) specify the number of whole Ordinary Shares of the Company with respect to which the Options are being exercised;

 

(iv) be accompanied by a check payable to the Company, in the amount of the full Exercise Price for the number of Ordinary Shares acquired.  Alternatively, the Participant may pay all or a portion of the Exercise Price by authorizing the Administrator to sell a sufficient portion of the Ordinary Shares acquired upon the exercise of the Options and remit to the Company a sufficient portion of the sale proceeds to pay the entire Exercise Price and tax withholding resulting from such exercise.

 

As soon as practicable after the Company receives such notice and payment, and following receipt from the Participant of payment for any taxes which the Company is required by law to withhold by reason of such exercise, the Company will deliver to the Participant either a certificate or certificates for the Ordinary Shares so acquired or other evidence of the appropriate registration of such Ordinary Shares on the Company’s books and records.

 

                                        (c) Termination of Employment.  In the event that the Participant, prior to the Payment Date, terminates employment with Parnell for any reason, all Options not then vested and exercisable shall be immediately forfeited, except to the extent otherwise set forth in any employment agreement that may exist between Participant and Parnell; provided, however, that the Administrator, in its sole discretion, may waive such automatic forfeiture provision.  When the Administrator exercises its sole discretion regarding forfeiture, it may take into consideration any individual facts and circumstances that it deems relevant for purposes of achieving the desired objectives under the Plan.  Any determination regarding forfeiture under this Section 3(e) for a given Participant shall not dictate any required result for a different Participant in a similar or different situation.  Options that have vested prior to termination of the Participant’s employment

  

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shall remain exercisable following such termination, and may be exercised until the Expiration Date.

 

4. Nontransferability.  RSUs and Options awarded hereunder may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.  Further, except as otherwise determined by the Administrator and provided in this Agreement, a Participant’s rights under the Plan shall be exercisable during the Participant’s lifetime only by the Participant or, during any period during which the Participant is under a legal disability, the Participant’s guardian or legal representative.

 

5. Adjustments in Authorized Shares.  The Administrator shall have the sole discretion to adjust the number of RSUs and Options awarded pursuant to this Agreement, in accordance with Section 10 of the Plan.

 

6. Tax Withholding.  Parnell shall have the power and the right to deduct or withhold, or require the Participant or beneficiary to remit Parnell, an amount sufficient to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Agreement.  For Awards payable in Ordinary Shares, Parnell’s power and right to withhold includes the right to withhold Ordinary Shares with a fair market value equivalent to the amount needed to satisfy the minimum statutory tax withholding requirements of Parnell in the appropriate taxing jurisdiction.

 

7. Beneficiary Designation.  The Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Agreement is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Administrator during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate.

 

Beneficiary Designation (name, address, and relationship):

           

______________________________________________                                                                                                     

 

______________________________________________              

 

______________________________________________                                                                                        

 

8. Administration.  This Agreement and the rights of the Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Administrator may adopt for administration of the Plan.  It is expressly understood that the Administrator is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Participant.  Any inconsistency between the Agreement and the Plan shall be resolved in favor of the Plan.

 

                9. Continuation of Employment.  This Agreement is not an employment agreement, it shall not confer upon the Participant any right to continuation of employment by

 

  

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                Parnell, nor shall this Agreement interfere in any way with Parnell’s right to terminate the Participant’s employment at any time, subject to employment laws in the appropriate jurisdiction.

 

               10. No Vested Right In Future Awards.  Participant acknowledges and agrees (by executing this Agreement) that the granting of Equity Awards under this Agreement are made on a fully discretionary basis by the Administrator and that this Agreement does not lead to a vested right to further Equity Awards in the future.  Further, the Equity Awards set forth in this Agreement constitute a non-recurrent benefit and the terms of this Agreement are only applicable to the Equity Awards distributed pursuant to this Agreement.

 

               11. Severability.  In the event that any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Agreement, and this Agreement shall be construed and enforced as if the illegal or invalid provision had not been included.

 

               12. Termination; Modification.  The Administrator may terminate, amend, or modify the Plan; provided, however, that no such termination, amendment, or modification of the Plan shall adversely affect in any material way the Participant’s rights under this Agreement without the Participant’s written approval.

 

               13. Applicable Laws.  This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

 

               14. Binding Agreement.  All obligations of the Company under the Plan and this Agreement, with respect to the Equity Award granted hereunder, shall be binding (a) on the Company and on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company; and (b) on the Participant and his or her heirs and legal representatives.

 

               15. Governing Law; Jurisdiction; Venue.  To the extent not preempted by federal law or the laws of Australia (to the extent applicable), this Agreement is deemed to have been made and entered into in the State of Kansas and in all respects the rights and obligations of the parties will be governed by, and construed and enforced in accordance with, the laws of the State of Kansas without regard to the principles of conflict of laws.  Any and all lawsuits, legal actions or proceedings against either party arising out of this Award Agreement will be brought (a) if the Participant’s address is in Australia in the courts of New South Wales; and (b) otherwise, in Johnson County, Kansas, or federal court of competent jurisdiction sitting nearest to Overland Park, Kansas.  Each party hereby submits to and accepts the exclusive jurisdiction of such court for the purpose of such suit, legal action or proceeding.  Each party irrevocably waives any objection it may now have or hereinafter have to this choice of venue of any suit, legal action or proceeding in any such court and further waives any claim that any suit, legal action or proceeding brought in any such court has been brought in an inappropriate forum.

 

  

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IN WITNESS WHEREOF, the parties have caused this Amended and Restated Award Agreement to be executed effective as of ______________________________.

 

	 	Parnell Pharmaceuticals Holdings Ltd
	 	 	 
	 	 	 
	 	By: ________________________________________
	 	Name: ______________________________________
	 	Title: _______________________________________
	 	 	 
	 	 	 
	 	Participant	 

 

 

 

 

 

 

 

 

 

 

 

 

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