Document:

Director Nomination Agreement ... Carl Marks Strategic Investments, L.P.

 Exhibit 10.6 

DIRECTOR NOMINATION AGREEMENT 

This Director Nomination Agreement (this “Agreement”) is made as of May 25, 2010 (the “Effective
Time”), between Xerium Technologies, Inc., a Delaware corporation (the “Company”), and the stockholders party hereto (collectively, the “Stockholder”). Unless otherwise specified herein, all of the
capitalized terms used herein are defined in Section 4 hereof. 
 WHEREAS, the Company has issued shares of its
common stock, par value, $0.001 per share, of the Company (the “Common Stock”) pursuant to, and upon the terms set forth in, the plan of reorganization of the Company and certain of its subsidiaries under Chapter 11 of Title 11 of
the United States Code; and 
 WHEREAS, the Company has agreed to permit the Stockholder, who Beneficially Owns 1,342,151 shares
(the “Number of Shares”) of Common Stock on the date hereof, to designate one or more persons for nomination for election to the board of directors of the Company (the “Board”) on the terms and conditions set forth
herein; 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows: 

Section 1. Board of Directors. 

(a) Subject to the terms and conditions of this Agreement, from and after the Effective Time and until a Termination Event shall have
occurred, the Stockholder shall have the right to designate one person in the aggregate to be nominated for election to the Board (the “Nominee”) by giving written notice to the Company in accordance with the Company’s Bylaws,
but in no event later than sixty (60) days prior to the deadline for receipt of a stockholder proposal to be eligible for inclusion in the Company’s proxy statement pursuant to Rule 14a-8 under the Securities Exchange Act of 1934, with
respect to any meeting of the Company’s stockholders at which directors are to be elected, which notice shall include all information regarding the Nominee that is required by applicable law, the Company’s Bylaws, the rules and regulations
of the Securities and Exchange Commission and the listing standards of any national securities exchange on which the Common Stock is listed, provided however, that, before the Nominee will be included in the Board’s slate of nominees submitted
to the stockholders for election as members of the Board at the next meeting of stockholders called with respect to such election, the Nominating and Corporate Governance Committee of the Board must consent to his/her nomination, such consent not to
be unreasonably withheld. 
 (b) For a period of thirty (30) days from the date of receipt of the Stockholder’s
nomination pursuant to Section 1(a) hereof (the “Initial Review Period”), the Stockholder will (i) provide such additional information about the Nominee as reasonably requested by the Nominating and Governance
Committee of the Board and (ii) cause the Nominee to be available for interviews and discussions with the Nominating and Corporate Governance Committee of the Board. 

 (c) If the Nominating and Governance Committee consents to the nomination of the Nominee by
the end of the Initial Review Period, the Company shall take all actions reasonably necessary to ensure that: (i) the Nominee is included in the Board’s slate of nominees submitted to the stockholders for election as directors at the next
meeting of stockholders called with respect to such election, and at every adjournment or postponement thereof (the “Next Election”); and (ii) the Nominee is included in the proxy statement prepared by management of the Company
in connection with soliciting proxies for the Next Election. 
 (d) If the Nominating and Governance Committee does not provide
its consent pursuant to Section 1(a) hereof, then the Stockholder shall have the right to designate an alternative person to be nominated for election by the Board (the “Alternate Nominee”) by giving written notice to
the Company in accordance with the Company’s Bylaws, but in no event later than fifteen (15) days after the expiration of the Initial Review Period, which notice shall include all information regarding the Alternate Nominee that is
required by applicable law, the Company’s Bylaws, the rules and regulations of the Securities and Exchange Commission and the listing standards of any national securities exchange on which the Common Stock is listed. 

(e) For a period of fifteen (15) days from the date of receipt of the Stockholder’s written notice proposing an Alternate
Nominee pursuant to Section 1(d) hereof (the “Second Review Period”), the Stockholder will (i) provide such additional information about the Alternate Nominee as reasonably requested by the Nominating and Governance
Committee of the Board and (ii) cause the Alternate Nominee to be available for interviews and discussions with the Nominating and Governance Committee of the Board. 

(f) If the Nominating and Governance Committee consents to the nomination of the Alternate Nominee by the end of the Second Review
Period, the Company shall take all actions reasonably necessary to ensure that: (i) the Alternate Nominee is included in the Board’s slate of nominees submitted to the stockholders for election as directors at the Next Election; and
(ii) the Alternate Nominee is included in the proxy statement prepared by management of the Company in connection with soliciting proxies for the Next Election. 

(g) The Company shall work in good faith with the Stockholder to identify and pre-clear Nominees and Alternate Nominees, as the case may
be, in advance of deadlines contained in Sections 1(b) and 1(e) hereof and take such other actions as reasonably requested by the Stockholder to assist the Stockholder in submitting Nominees or Alternate Nominees, as the case may be,
that will obtain the requisite consent required under Section 1(a) hereof. 
 (h) Notwithstanding anything to the
contrary contained herein, the rights of the Stockholder under this Agreement shall terminate automatically as soon as the Stockholder, together with its Affiliates, ceases to Beneficially Own at least one-half of the Number of Shares of Common
Stock (a “Termination Event”). The Stockholder shall notify the Company within three Business Days after the occurrence of a Termination Event. At the time of nomination, a Nominee or Alternate Nominee, as applicable, shall execute
and deliver a resignation letter that shall be irrevocable upon election of such Nominee or Alternate Nominee as a member of the Board and shall be effective automatically upon the occurrence of a Termination Event. 

 

 -2- 

 (i) Prior to a Termination Event, if a vacancy occurs because of the death, disability,
disqualification, resignation or removal of a Nominee or Alternate Nominee, as the case may be, as a member of the Board, the Company shall provide notice of such vacancy to the Stockholder within five (5) Business Days of such vacancy. The
Stockholder shall be entitled to designate such person’s successor by giving written notice to the Company within thirty (30) days of the date the Stockholder receives notification of the vacancy from the Company (the “Initial
Vacancy Review Period”), such notice to the Company to include all information regarding such proposed successor that is required by applicable law, the Company’s Bylaws, the rules and regulations of the Securities and Exchange
Commission and the listing standards of any national securities exchange on which the Common Stock is listed, provided however, that, before such successor will be appointed to fill such vacancy, the Nominating and Corporate Governance Committee of
the Board must consent to his/her appointment, such consent not to be unreasonably withheld. Any successor that is appointed to fill a vacancy pursuant to this Section 1(i) shall have the right to serve until the next meeting of the
stockholders of the Company at which directors are elected, or until his/her successor is elected and duly qualified. If the Nominating and Governance Committee does not provide its consent within the Initial Vacancy Review Period, then the
Stockholder shall have the right to designate an alternative person to fill the vacancy (the “Alternative Vacancy Nominee”) by giving written notice to the Company in accordance with the Company’s Bylaws, but in no event later
than fifteen (15) days after the expiration of the Initial Vacancy Review Period, which notice shall include all information regarding the Alternate Nominee that is required by applicable law, the Company’s Bylaws, the rules and
regulations of the Securities and Exchange Commission and the listing standards of any national securities exchange on which the Common Stock is listed. If the Nominating and Governance Committee does not provide its consent to the Alternative
Vacancy Nominee within thirty (30) days of receipt of his/her designation from the Stockholder, then the Nominating and Governance Committee shall have the right to appoint a director to fill the vacancy, provided however, that so long as a
Termination Event has not occurred prior to the next meeting of the stockholders of the Company at which directors are elected, the Stockholder shall have to right to designate the person to be nominated for election to the Board to fill the vacant
Board seat subject of this Section 1(i) at such meeting in accordance with Sections 1(a) through (f) hereof and subject to the limitations therein. 

(j) The Nominee or Alternate Nominee, as applicable, shall be entitled to all rights and privileges as a member of the Board as other
similarly situated members of the Board for their service to the Company (e.g., out-of-pocket expenses for attending meetings, compensation for service to the Company). 

(k) Notwithstanding anything to the contrary contained herein, and for the avoidance of doubt, the Stockholder shall only have the right
to nominate or designate one person at a time to serve as a member of the Board, and in no event will the Company or the Board be obligated to nominate or designate a person to the Board that, upon such person’s election by the stockholders of
the Company or appointment by the Board, would result in more than one nominee or designee of the Stockholder serving as a member of the Board. 
  

 -3- 

 (l) Notwithstanding anything herein to the contrary, the Company shall not be obligated to
cause to be nominated for election to the Board or recommend to the stockholders the election of any person (i) who fails to submit to the Company on a timely basis such questionnaires as the Company may reasonably require of its directors
generally and such other information as the Company may reasonably request in connection with the preparation of its filings under the federal securities laws; or (ii) the nomination of whom the Board or the Nominating and Governance Committee
determines in good faith, after consultation with outside legal counsel, would constitute a breach of its fiduciary duties or applicable law or violate the Company’s Certificate of Incorporation; provided, however, that upon the occurrence of
either (i) or (ii) above, the Company shall promptly notify the Stockholder of the occurrence of such event and permit the applicable Stockholder to provide an alternate person in accordance with the applicable provisions hereof
(Section 1(d) for Nominees or Alternate Nominees for election at stockholder meetings and Section 1(i) with respect to the filling of vacancies on the Board) and the Company shall use commercially reasonable efforts to perform its
obligations hereunder with respect to such alternate person, provided however, that, notwithstanding anything to the contrary contained herein, in no event shall the Company be obligated to postpone, reschedule or delay any scheduled meeting of the
stockholders with respect to such election of any person nominated to the Board pursuant to the provisions of this Agreement. 

Section 2. Further Obligations. 

(a) The Company shall (i) maintain directors’ and officers’ liability insurance in an amount determined by the Board to be
reasonable and customary, (ii) for so long as any Nominee or Alternate Nominee serves as a member of the Board, maintain such coverage with respect to such Nominee or Alternate Nominee and (iii) for two years after such Nominee or
Alternate Nominee ceases to be a member of the Board maintain coverage with respect to any act or omission occurring while such Nominee or Alternate Nominee was a member of the Board. 

(b) For so long as any Nominee or Alternate Nominee serves as a member of the Board, the Company shall not amend, alter or repeal any
right to indemnification or exculpation covering or benefiting any such Nominee or Alternate Nominee. 
 (c) Notwithstanding
anything to the contrary contained herein, it shall be reasonable for the Nominating and Governance Committee to withhold its consent for any person suggested for nomination or appointment to the Board pursuant to terms of this Agreement, if the
Board or the Nominating and Governance Committee determines, in good faith, that none of the persons suggested for nomination or appointment to the Board pursuant to the terms of this Agreement and the Other Nomination Agreement is
“independent” in accordance with the standards for director independence adopted by the Board, or, if the Common Stock is listed on any national securities exchange, such standards consistent with the rules of such national securities
exchange. 
  

 -4- 

 Section 3. Transfers; Termination. 

(a) The Stockholder’s rights hereunder do not attach to its shares of Common Stock and may only be assigned pursuant to a Permitted
Assignment under Section 5 hereof. 
 (b) Except pursuant to a Permitted Assignment under Section 5
hereof, this Agreement shall terminate automatically upon the occurrence of a Termination Event and shall be of no further force and effect, and no party hereto shall have any surviving obligations, rights, or duties hereunder after a Termination
Event; provided that the Stockholder shall be obligated to comply with Section 1(h) hereof. 

Section 4. Definitions. 

“Affiliate” means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such first Person. 
 “Agreement” has the meaning set
forth in the preamble. 
 “Alternate Nominee” has the meaning set forth in Section 1(d) hereof.

 “Alternative Vacancy Nominee” has the meaning set forth in Section 1(i) hereof. 

“Beneficially Own” has the meaning ascribed to it in Section 13(d) of the Securities Exchange Act of 1934, as amended.

 “Board” has the meaning set forth in recitals. 

“Common Stock” has the meaning set forth in the recitals. 

“Company” has the meaning set forth in the preamble. 

“Effective Time” has the meaning set forth in the preamble. 

“Initial Review Period” has the meaning set forth in Section 1(b) hereof. 

“Initial Vacancy Review Period” has the meaning set forth in Section 1(i) hereof. 

“Joinder Agreement” has the meaning set forth in Section 5 hereof. 

“Next Election” has the meaning set forth in Section 1(c) hereof. 

“Nominee” has the meaning set forth in Section 1(a) hereof. 

“Number of Shares” has the meaning set forth in Recitals hereto. 

“Other Nomination Agreement” means the Nomination Agreement, dated as of the date hereof, between the Company and AS Investors,
LLC. 
  

 -5- 

 “Permitted Assignee” means an Affiliate of the Stockholder so long as the
Affiliate, together with the Stockholder and the other Affiliates of the Stockholder, hold in the aggregate at least one-half the Number of Shares of Common Stock. 

“Permitted Assignment” has the meaning set forth in Section 5 hereof. 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company,
a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 

“Second Review Period” has the meaning set forth in Section 1(e) hereof. 

“Stockholder” has the meaning set forth in the preamble. 

“Termination Event” has the meaning set forth in Section 1(h) hereof. 

“Transfer” means any sale, transfer, assignment or other disposition of (whether with or without consideration and whether
voluntary or involuntary or by operation of law) of Common Stock. 
 Section 5. Assignment; Benefit of Parties;
Transfer. 
 No party may assign this Agreement or any of its rights or obligations hereunder and any assignment hereof will be
null and void except that (a) the Stockholder may assign, in whole, but not in part, this Agreement to a Permitted Assignee (a “Permitted Assignment”); provided that in each case the Permitted Assignee executes a joinder
agreement pursuant to which such Permitted Assignee agrees to be bound by the terms hereof as the Stockholder hereunder (a “Joinder Agreement”). The Stockholder shall notify the Company immediately upon any such Permitted
Assignment. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors, legal representatives and Permitted Assignees for the uses and purposes set forth and referred to herein. In the
event of a Transfer by a Stockholder, the transferee shall not have the rights and powers of a Stockholder hereunder unless (i) the transferee is a Permitted Assignee of the Stockholder prior to and following the Transfer and (ii) the
Stockholder and such transferee comply with the terms of this Agreement, including without limitation the obligation under this Section 5 for the Transferee to execute a Joinder Agreement. Nothing herein contained shall confer or is
intended to confer on any third party or entity that is not a party to this Agreement any rights under this Agreement. For the avoidance of doubt, in the event of a Permitted Assignment, the Permitted Assignee shall be deemed be the Stockholder for
purposes of this Agreement 
 Section 6. Remedies. 

The Company and the Stockholder shall be entitled to enforce their rights under this Agreement specifically, to recover damages by reason
of any breach of any provision of this Agreement and to exercise all other rights existing in their favor. The parties hereto agree and acknowledge that a breach of this Agreement would cause irreparable harm and money damages would not be an
adequate remedy for any such breach and that, in addition to other rights and 
  

 -6- 

 
remedies hereunder, the Company and the Stockholder shall be entitled to specific performance and/or injunctive or other equitable relief (without posting a bond or other security) from any court
of law or equity of competent jurisdiction in order to enforce or prevent any violation of the provisions of this Agreement. 

Section 7. Notices. 

All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given when (i) delivered personally to the recipient, (ii) telecopied or sent by facsimile to the recipient, or (iii) one (1) Business Day after being sent to the recipient by reputable
overnight courier service (charges prepaid). Such notices, demands and other communications shall be sent to the Stockholder or the Company at the address set forth below, or at such address or to the attention of such other Person as the recipient
party has specified by prior written notice to the sending party. 
 The Stockholder’s address is: 

Carl Marks Strategic Investments, L.P. 

900 Third Avenue,
33rd Floor 

New York, NY 10022-4775 

Attention: James F. Wilson 

Facsimile: (212) 980-2630 

and 

Carl Marks Strategic Opportunities Fund, L.P. 

900 Third Avenue,
33rd Floor 

New York, NY 10022-4775 

Attention: James F. Wilson 

Facsimile: (212) 980-2630 

with copies to: 

Chadbourne & Parke LLP 

30 Rockefeller Plaza 

New York, NY 10112 

Attention: Sey-Hyo Lee 

Facsimile: (646) 710-1064 
  

 -7- 

 The Company’s address is: 

Xerium Technologies, Inc. 

8537 Six Forks Road, Suite 300 

Raleigh, NC 27615 

Attention: Chief Financial Officer 

Facsimile: (919) 556-2432 

with copies to: 

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, LLP 

2500 Wachovia Capital Center 

Raleigh, NC 27601 

Attention: Gerald F. Roach 

Facsimile: (919) 821-6800 

and 

Cadwalader, Wickersham & Taft LLP 

1 World Financial Center 

New York, NY 10281 

Attention: R. Ronald Hopkinson 

       Peter C. Gyr 

Facsimile: (212) 504-6666 

Section 8. Adjustments. 

If, and as often as, there are any changes in the Common Stock by way of stock split, stock dividend, combination or reclassification, or
through merger, consolidation, reorganization, recapitalization or sale, or by any other means, appropriate adjustment shall be made to the definition of Number of Shares and in the provisions of this Agreement, as may be required, so that the
rights, privileges, duties and obligations hereunder shall continue with respect to the Common Stock as so changed. 

Section 9. Descriptive Headings, Interpretation, No Strict Construction. 

The descriptive headings of this Agreement are inserted for convenience only and do not constitute a substantive part of this Agreement.
Whenever required by the context, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns, pronouns, and verbs shall include the plural and vice versa. Reference to any
agreement, document, or instrument means such agreement, document, or instrument as amended or otherwise modified from time to time in accordance with the terms thereof, and, if applicable, hereof. The words “include,” “includes”
or “including” in this Agreement shall be deemed to be followed by “without limitation.” The use of the words “or,” 

 

 -8- 

 
“either” or “any” shall not be exclusive. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this
Agreement. All references to laws, rules, regulations and forms in this Agreement shall be deemed to be references to such laws, rules, regulations and forms, as amended from time to time or, to the extent replaced, the comparable successor thereto
in effect at the time. All references to agencies, self-regulatory organizations or governmental entities in this Agreement shall be deemed to be references to the comparable successors thereto from time to time. 

Section 10. No Third-Party Beneficiaries. 

Nothing in this Agreement, express or implied, is intended or shall be construed to confer upon, or give to, any person or entity other
than the parties hereto and their respective successors and assigns any remedy or claim under or by reason of this Agreement or any terms, covenants or conditions hereof, and all of the terms, covenants, conditions, promises and agreements contained
in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their respective successors and assigns. 

Section 11. Further Assurances. 

Each of the parties hereby agrees that it will hereafter execute and deliver any further document, agreement, instruments of assignment,
transfer or conveyance as may be necessary or desirable to effectuate the purposes hereof. 
 Section 12.
Counterparts. 
 This Agreement may be executed in one or more counterparts, and may be delivered by means of facsimile or
electronic transmission in portable document format, each of which shall be deemed to be an original and shall be binding upon the party who executed the same, but all of such counterparts shall constitute the same agreement. 

Section 13. Delivery by Facsimile and Electronic Means. 

This Agreement, the agreements referred to herein, and each other agreement or instrument entered into in connection herewith or therewith
or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine or other electronic means, shall be treated in all manner and respects as an original agreement or instrument
and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto or to any such agreement or instrument, each other party hereto or thereto shall
re-execute original forms thereof and deliver them to all other parties. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or other electronic means to deliver a signature or the fact that any
signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or other electronic means as a defense to the formation or enforceability of a contract and each such party forever waives any such defense.

  

 -9- 

 Section 14. Arm’s Length Agreement. 

Each of the parties to this Agreement agrees and acknowledges that this Agreement has been negotiated in good faith, at arm’s length,
and not by any means prohibited by law. 
 Section 15. Sophisticated Parties; Advice of Counsel. 

Each of the parties to this Agreement specifically acknowledges that (i) it is a knowledgeable, informed, sophisticated Person
capable of understanding and evaluating the provisions set forth in this Agreement and (ii) it has been fully advised and represented by legal counsel of its own independent selection and has relied wholly upon its independent judgment and the
advice of such counsel in negotiating and entering into this Agreement. 
 Section 16. Governing Law. 

This Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of
Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) to the extent such rules or provisions would cause the application of the laws of any
jurisdiction other than the State of Delaware. 
 Section 17. Submission to Jurisdiction. 

Any action, suit or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this
Agreement or the transactions contemplated hereby must be brought in the United States District Court located in the State of Delaware or any Delaware state court, and each party consents to the exclusive jurisdiction and venue of such courts (and
of the appropriate appellate courts therefrom) in any such action, suit or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such, action,
suit or proceeding in any such court or that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. 

Section 18. Waiver of Jury Trial. 

Each of the parties to this Agreement hereby agrees to waive its respective rights to a jury trial of any claim or cause of action based
upon or arising out of this Agreement. The scope of this waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this Agreement, including contract claims, tort claims
and all other common law and statutory claims. Each party hereto acknowledges that this waiver is a material inducement to enter into this Agreement, that each has already relied on this waiver in entering into this Agreement, and that each will
continue to rely on this waiver in their related future dealings. Each party hereto further warrants and represents that it has reviewed this waiver with its legal counsel and that it knowingly and voluntarily waives its jury trial rights following
consultation with legal counsel. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO 

 

 -10- 

 
THIS SECTION 18 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. In the
event of litigation, this Agreement may be filed as a written consent to a trial by the court. 
 Section 19.
Complete Agreement. 
 This Agreement and any Joinder Agreements hereto represent the complete agreement between the parties
hereto as to all matters covered hereby, and supersedes any prior agreements or understandings between the parties. 

Section 20. Severability. 

In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction
shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
 Section 21.
Amendment and Waiver. 
 Except as otherwise provided herein, no modification, amendment or waiver of any provision of this
Agreement shall be effective against the Company or the Stockholder unless such modification is approved in writing by the Company and the Stockholder. The failure of any party to enforce any of the provisions of this Agreement shall in no way be
construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. 

[SIGNATURE PAGES FOLLOW] 
  

 -11- 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year
first above written. 
  

			
	 Company:

	
	XERIUM TECHNOLOGIES, INC
		
	By:	 	 /s/ David Maffucci

		 	Name: David Maffucci
		 	Title: Executive Vice President, Chief Financial Officer and Assistant Secretary

					
	 Stockholder:

	
	CARL MARKS STRATEGIC INVESTMENTS, L.P.
		
	By:	 	CMSI GP LLC,
		 	its General Partner
			
		 	By:	 	 /s/ Robert C. Ruocco

		 	Name: Robert C. Ruocco
		 	Title: Managing Director
		 	Address: 900 Third Avenue,
33rd Floor
		 	New York, NY 10022-4775
		 	Facsimile: 212-980-2630

  

 -2- 

					
	Stockholder:
	
	CARL MARKS STRATEGIC OPPORTUNITIES FUND, L.P.
		
	By:	 	Carl Marks GP LLC,
		 	its General Partner
			
		 	By:	 	 /s/ Robert C. Ruocco

		 	Name: Robert C. Ruocco
		 	Title: General Partner
		 	Address: 900 Third Avenue,
33rd Floor
		 	New York, NY 10022-4775
		 	Facsimile: 212-980-2630

  

 -3-2010 Equity Incentive Plan

 Exhibit 10.7 

XERIUM TECHNOLOGIES, INC. 

2010 EQUITY INCENTIVE PLAN 
  

	 	1.	Purpose; Term. 

This Xerium Technologies, Inc. 2010 Equity Incentive Plan (the “Plan”) provides for the grant of incentive awards consisting of
or based on the Common Stock of the Company. The purpose of the Plan is to attract and retain key employees, directors and consultants of the Company and its Affiliates, to provide an incentive for them to achieve performance goals, and to enable
them to participate in the growth of the Company by granting Awards with respect to the Company’s Common Stock. No Awards may be granted under the Plan after the tenth anniversary of the Effective Date, but Awards granted prior to that date may
continue in accordance with their terms. Certain capitalized terms used herein are defined in Section 3 below. 
  

	 	2.	Administration. 

The Plan shall be administered by the Committee. Except to the extent action by the Committee is required under Section 162(m) of the
Code in the case of Awards intended to qualify for exemption thereunder, the Board may in any instance perform any of the functions of the Committee hereunder. The Committee shall select the Participants to receive Awards and shall determine the
terms and conditions of the Awards. The Committee shall have authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the operation of the Plan as it shall from time to time consider advisable, and to
interpret the provisions of the Plan. The Committee’s decisions shall be final and binding. The Committee may delegate (i) to one or more of its members such of its duties, powers and responsibilities as it may determine; (ii) to one
or more officers of the Company the power to grant rights or options to the extent permitted by Section 157(c) of the Delaware General Corporation Law; (iii) to one or more officers of the Company the authority to allocate other Awards
among such persons (other than officers of the Company) eligible to receive Awards under the Plan as such delegated officer or officers determine consistent with such delegation; provided, that with respect to any delegation described in this clause
(iii) the Committee (or a properly delegated member or members of such Committee) shall have authorized the issuance of a specified number of shares of Stock under such Awards and shall have specified the consideration, if any, to be paid
therefor; and (iv) to such employees or other persons as it determines such ministerial tasks as it deems appropriate. In the event of any delegation described in the preceding sentence, references herein to the Committee shall include the
person or persons so delegated to the extent of such delegation. 
  

	 	3.	Certain Definitions. 

“Affiliate” means any business entity in which the Company owns directly or indirectly 50% or more of the total voting power or has a
significant financial interest as determined by the Committee. 

 “Award” means any Option, SAR, Restricted Stock, Unrestricted Stock or Stock Unit Award granted
under the Plan. 
 “Board” means the Board of Directors of the Company. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor law. 

“Committee” means one or more committees each comprised of not less than two members of the Board appointed by the Board to administer the Plan
or a specified portion thereof. Unless otherwise determined by the Board, if a Committee is authorized to grant Awards to a Reporting Person or a Covered Employee, each member shall be a “non-employee director” within the meaning of Rule
16b-3 under the Exchange Act or an “outside director” within the meaning of Section 162(m) of the Code, respectively. 

“Common Stock” or “Stock” means the Common Stock, $0.001 par value, of the Company. 

“Company” means Xerium Technologies, Inc., a Delaware corporation. 

“Covered Employee” means a “covered employee” within the meaning of Section 162(m) of the Code. 

“Designated Beneficiary” means the beneficiary designated by a Participant, in a manner determined by the Committee, to receive amounts due or
exercise rights of the Participant in the event of the Participant’s death. In the absence of an effective designation by a Participant, “Designated Beneficiary” means the Participant’s estate. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor law. 

“Fair Market Value” means, with respect to Common Stock or any other property, the fair market value of such property as determined by the
Committee in good faith or in the manner established by the Committee from time to time. 
 “Participant” means a person selected by
the Committee to receive an Award under the Plan. 
 “Reporting Person” means a person subject to Section 16 of the Exchange Act.

 “Section 409A” means Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance
issued thereunder, including without limitation any such regulation or other guidance that may be issued after the Effective Date. 
  

	 	4.	Eligibility. 

 All
key employees, all directors and all consultants of the Company or of any Affiliate whom the Committee considers to be capable of contributing to the successful performance of the Company are eligible to be Participants in the Plan. Incentive Stock
Options may be granted only to employees of the Company or of any parent or subsidiary corporation of the Company, as those terms are used in Section 424 of the Code. 
  

 -2- 

	 	5.	Stock Available for Awards. 

a. Amount. Subject to adjustment under subsection (b), no more than 463,525 shares of Common Stock in the aggregate
may be delivered under or in satisfaction of Awards, provided, however, that to the extent that equity incentive awards granted prior to the Effective Date pursuant to the Company’s 2005 Equity Incentive Plan, as amended, do not vest on or
after the Effective Date in accordance with their terms, the number of shares of Common Stock subject to such unvested awards shall be added to the number of shares that may be delivered hereunder. For the avoidance of doubt, the termination,
cancellation or expiration of an Award or any portion thereof without the delivery of shares of Common Stock, or the satisfaction of an Award or any portion thereof by the delivery of cash or other property other than shares of Common Stock, shall
not be treated as the delivery of shares of Common Stock for purposes of this subsection (a). Common Stock issued under awards granted by another company (“other company awards”) and assumed by the Company in connection with a merger,
consolidation, stock purchase or similar transaction, or issued by the Company under awards substituted for other company awards in connection with a merger, consolidation, stock purchase or similar transaction, shall not reduce the shares available
for Awards under the Plan; provided, that the maximum number of shares that may be issued pursuant to ISOs (as defined below) shall be determined in a manner consistent with Section 422 of the Code and the rules thereunder. Shares issued under
the Plan may consist of authorized but unissued shares or treasury shares. 
 b. Adjustment. In the event
that the Committee determines that any stock dividend, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, exchange of shares or other transaction affects the Common Stock such that
an adjustment is required or appropriate to preserve the benefits intended to be provided by the Plan, then the Committee (subject in the case of ISOs, or in the case of Awards intended to qualify for exemption under Section 162(m) of the Code,
to any limitation required under the Code) shall make such adjustment as it determines to be equitable to any or all of (i) the number and kind of shares in respect of which Awards may be made under the Plan, (ii) the number and kind of
shares subject to outstanding Awards and (iii) the exercise price with respect to any of the foregoing; provided, that the number of shares subject to any Award shall always be a whole number. 

c. Limit on Individual Grants. The maximum number of shares of Common Stock subject to Options and Stock
Appreciation Rights that may be granted to any Participant in the aggregate in any calendar year shall not exceed, in each case, 150,000, and the maximum number of shares of Common Stock that may be granted as Stock Awards pursuant to Section 8
to any Participant in the aggregate in any calendar year shall not exceed 150,000, subject in each case to adjustment under subsection (b). 
  

 -3- 

	 	6.	Stock Options. 

a. Grant of Options. Subject to the provisions of the Plan, the Committee may grant both (i) options
(“Options”) to purchase shares of Common Stock that are intended to comply with the requirements of Section 422 of the Code and the rules thereunder (“ISOs”) and (ii) Options that are not intended to comply with such
requirements (“NSOs”). The Committee shall determine the number of shares subject to each Option and the exercise price therefor, which shall not be less than 100% of the Fair Market Value of the Common Stock on the date of grant.

 b. Terms and Conditions. Each Option shall be exercisable at such times and subject to such terms and
conditions as the Committee may specify in the applicable grant or thereafter. The Committee may impose such conditions with respect to the exercise of Options, including conditions relating to applicable federal or state securities laws, as it
considers necessary or advisable. 
 c. Payment. No shares shall be delivered pursuant to any exercise of
an Option until payment in full of the exercise price therefor is received by the Company. Such payment may be made in whole or in part in cash or, to the extent legally permissible and permitted by the Committee at or after the grant of the Option,
by delivery of a note or other commitment satisfactory to the Committee; shares of Common Stock that have been owned by the optionee for at least six months (or such other period as the Committee may determine), valued at their Fair Market Value on
the date of delivery; such other lawful consideration, including a payment commitment of a financial or brokerage institution, as the Committee may determine; or any combination of the foregoing permitted forms of payment. 

 

	 	7.	Stock Appreciation Rights. 

a. Grant of SARs. Subject to the provisions of the Plan, the Committee may grant rights to receive any excess in
value of shares of Common Stock over the exercise price (“Stock Appreciation Rights” or “SARs”). The Committee shall determine at the time of grant or thereafter whether SARs are settled in cash, Common Stock or other securities
of the Company, Awards or other property, and may define the manner of determining the excess in value of the shares of Common Stock. 

b. Exercise Price. The Committee shall fix the exercise price of each SAR, which shall not be less than 100% of the
Fair Market Value of the Common Stock at the date of grant. 
  

	 	8.	Stock Awards. 

a. Restricted or Unrestricted Stock Awards. The Committee may grant shares of Common Stock subject to forfeiture
(“Restricted Stock”) and determine the duration of the period (the “Restricted Period”) during which, and the conditions under which, the shares may be forfeited to the Company and the other terms and conditions of such Awards.
Shares of Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered, except as permitted by the Committee, during the Restricted Period. Shares of Restricted Stock shall be evidenced in such manner as the Committee

  

 -4- 

 
may determine. Any certificates issued in respect of shares of Restricted Stock shall be registered in the name of the Participant and unless otherwise determined by the Committee, deposited by
the Participant, together with a stock power endorsed in blank, with the Company. At the expiration of the Restricted Period, the Company shall deliver such certificates to the Participant or if the Participant has died, to the Participant’s
Designated Beneficiary. The Committee also may make Awards of shares of Common Stock that are not subject to restrictions or forfeiture, on such terms and conditions as the Committee may determine from time to time (“Unrestricted Stock”).
Shares of Restricted Stock or Unrestricted Stock may be issued for such consideration, if any, as the Committee may determine consistent with applicable law. 

b. Stock Unit Awards. The Committee may grant Awards (“Stock Unit Awards”) consisting of units
representing shares of Common Stock. Each Stock Unit Award shall represent the unfunded and unsecured commitment of the Company to deliver to the Participant at a specified future date or dates one or more shares of Common Stock (including, if so
provided with respect to the Award, shares of Restricted Stock), subject to the satisfaction of any vesting or other terms and conditions established with respect to the Award as the Committee may determine. No Participant or Designated Beneficiary
holding a Stock Unit Award shall be treated as a stockholder with respect to the shares of Common Stock subject to the Award unless and until such shares are actually delivered under the Award. Stock Unit Awards may not be sold, assigned,
transferred, pledged or otherwise encumbered except as permitted by the Committee. 
 c. Performance
Goals. The Committee may establish performance goals on which the granting of Restricted Stock, Unrestricted Stock, or Stock Unit Awards, or the vesting of Restricted Stock or Stock Unit Awards, will be subject. Such performance goals may be
based on such corporate or other business criteria as the Committee may determine. The Committee shall determine whether any performance goals so established have been achieved, and if so to what extent, and its determination shall be binding on all
persons. Notwithstanding anything herein to the contrary, the performance criteria terms set forth on Appendix A hereto shall apply to any Award for which performance goals are established pursuant to this Section 8(c) that is intended to
satisfy the exception for qualified performance-based compensation under Section 162(m) of the Code. 
  

	 	9.	General Provisions Applicable to Awards. 

a. Documentation. Each Award shall be evidenced by a writing delivered to the Participant or agreement executed by
the Participant specifying the terms and conditions thereof and containing such other terms and conditions not inconsistent with the provisions of the Plan as the Committee considers necessary or advisable to achieve the purposes of the Plan or to
comply with applicable tax and regulatory laws and accounting principles. 
 b. Application of Code
Section 409A. Notwithstanding anything in this Plan to the contrary, it is intended that any grant of an Award shall satisfy the requirements for compliance with or exemption from Section 409A of the Code, to the extent applicable. The
Plan and any Award shall be interpreted in a manner that is 
  

 -5- 

 
consistent with compliance with or exemption from Section 409A. In the event that any Award is subject to Section 409A and is otherwise payable upon a Change of Control, no such payment
shall be made unless such Change of Control constitutes a “Change in Control Event” as defined in Section 1.409A-3(i)(5)(i) of the Treasury Regulations, and as set forth in Section 1.409A-3(i)(5)(v) through (vii). In the event
that any Award is subject to Section 409A and is payable upon termination of employment or service, such Award shall not be payable upon a termination of employment or service unless such termination of employment or service constitutes a
“separation from service” within the meaning of Section 1.409A-1(h) of the Treasury Regulations. 

c. Committee Discretion. Awards may be made alone or in combination with other Awards, including Awards of other
types. The terms of Awards of the same type need not be identical, and the Committee need not treat Participants uniformly (subject to the requirements of applicable law). Except as otherwise provided by the Plan or a particular Award, any
determination with respect to an Award may be made by the Committee at the time of grant or at any time thereafter. 

d. Dividends and Cash Awards. In the discretion of the Committee, any Award under the Plan may provide the
Participant with (i) dividends or dividend equivalents payable (in cash or in the form of Awards under the Plan) currently or deferred with or without interest and (ii) cash payments in lieu of or in addition to an Award. 

e. Termination of Service. Unless the Committee expressly provides otherwise, the following rules shall apply in
connection with the cessation of a Participant’s employment or other service relationship with the Company and its Affiliates. Immediately upon the cessation of the Participant’s employment or other service relationship with the Company
and its Affiliates an Award requiring exercise will cease to be exercisable and all Awards to the extent not already fully vested will be forfeited, except that: 

(i) All Stock Options and SARs held by a Participant immediately prior to his or her death, to the extent then
exercisable, will remain exercisable by such Participant’s executor or administrator or the person or persons to whom the Stock Option or SAR is transferred by will or the applicable laws of descent and distribution, in each case for the lesser
of (i) the one year period ending with the first anniversary of the Participant’s death or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this subsection (e),
and shall thereupon terminate; and 
 (ii) all Stock Options and SARs held by the Participant immediately prior
to the cessation of the Participant’s employment or other service relationship for reasons other than death and except as provided in (iii) below, to the extent then exercisable, will remain exercisable for the lesser of (1) a period
of three months or (2) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this subsection (e), and shall thereupon terminate. 

 

 -6- 

 (iii) Unless the Committee expressly provides otherwise, a
Participant’s “employment or other service relationship with the Company and its Affiliates” will be deemed to have ceased, in the case of an employee Participant, upon termination of the Participant’s employment with the Company
and its Affiliates (whether or not the Participant continues in the service of the Company or its Affiliates in some capacity other than that of an employee of the Company or its Affiliates), and in the case of any other Participant, when the
service relationship in respect of which the Award was granted terminates (whether or not the Participant continues in the service of the Company or its Affiliates in some other capacity). 

f. Change in Control. If (i) any Person or “group,” within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act, other than the Company or any of its subsidiaries or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or one of its subsidiaries, becomes a beneficial owner, directly or
indirectly, in one or a series of transactions, of securities representing fifty percent (50%) or more of the total number of votes that may be cast for the election of directors of the Company, (ii) the Company merges into or combines
with any other entity and, immediately following such merger or combination, any Person or group of Persons acting in concert holds 50% or more of the voting power of the entity surviving such merger or combination (other than any Person or group of
Persons which held 50% or more of the Company’s voting power immediately prior to such merger or combination or any Affiliated Person of any such Person or member of such group), (iii) the Company sells all or substantially all of its
assets or business for cash or for securities of another Person or group of Persons (other than to any Person or group of Persons which held 50% or more of the Company’s total voting power immediately prior to such sale or to any Affiliated
Person of any such Person or any member of such group), or (iv) a dissolution or liquidation of the Company (any of (i), (ii), (iii) or (iv) being herein referred to as a “Covered Transaction”), then, without further action
by the Committee, (A) all outstanding Options and SARs shall immediately become fully vested and exercisable, and (B) all outstanding Restricted Stock Awards and Stock Unit Awards shall immediately become fully earned and vested and, in
the case of Restricted Stock, the Restricted Period with respect thereto shall immediately lapse; provided, however, that: (1) any such Restricted Stock Awards and Stock Unit Awards that are conditioned upon the attainment of specified price
targets with respect to the Common Stock shall only become earned and vested to the extent that the transaction price per share in the Covered Transaction or, if not discernable due to the nature of the Covered Transaction, the Fair Market Value of
a share of Common Stock, in each case as determined by the Committee, exceeds the applicable price targets under such Awards, and (2) any such Restricted Stock Awards and Stock Unit Awards that are conditioned upon the attainment of
performance-based conditions (other than performance-based Awards covered by subsection (1) above) shall only become earned and vested in respect of that portion of the Award that would become earned and vested upon target-level achievement of
the performance goals applicable thereto, as determined by the Committee. Without limiting the foregoing (but solely after giving full effect to the provisions of the preceding sentence), in the event of a Covered Transaction, the Committee in its
discretion may, with respect to any Award, at the time the Award is made or at any time thereafter, take 
  

 -7- 

 
one or more of the following actions: (A) provide for the acceleration of any time period relating to the exercise or payment of the Award (provided that the payment of any Award that
constitutes a deferral of compensation subject to Section 409A may not be accelerated except to the extent permitted by Section 409A of the Code), (B) provide for the cancellation of the Award (without the consent of the Participant)
in exchange for the payment to the Participant of cash or other property with a Fair Market Value equal to the amount that would have been received (net of any exercise price) upon the exercise or payment of the Award had the Award been exercised or
paid immediately prior to the Covered Transaction, (C) adjust the terms of the Award in a manner determined by the Committee to reflect the covered transaction, (D) cause the Award to be assumed, or new rights substituted therefor, by
another entity, or (E) make such other provision as the Committee may consider equitable to Participants and in the best interests of the Company. 

g. Transferability. No Award may be transferred other than by will or the laws of descent and distribution and may
be exercised, during the life of the Participant, only by the Participant, except that, as to Awards other than ISOs, the Committee may permit certain transfers to the Participant’s family members or to certain entities controlled by the
Participant or his or her family members. 
 h. Withholding Taxes. The Participant shall pay to the
Company, or make provision satisfactory to the Committee for payment of, any taxes or social insurance contributions required by law to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability.
The Company and its Affiliates may, to the extent permitted by law, deduct any such tax (or social insurance) obligations from any payment of any kind due to the Participant hereunder or otherwise. In the Committee’s discretion, the minimum tax
(or social insurance) obligations required by law to be withheld in respect of Awards may be paid in whole or in part in shares of Common Stock, including shares retained from the Award creating the obligation, valued at their Fair Market Value on
the date of retention or delivery. 
 i. Amendment of Award. The Committee may amend, modify, or terminate
any outstanding Award, including substituting therefor another Award of the same or a different type, changing the date of exercise or realization and converting an Incentive Stock Option to a Nonstatutory Stock Option. Any such action shall require
the Participant’s consent unless the Committee determines that the action, taking into account any related action, would not materially and adversely affect the Participant. 

j. Foreign Nationals. The Committee may take any action consistent with the terms of the Plan, either before or
after an Award has been granted, which the Committee deems necessary or advisable to comply with government laws or regulatory requirements of any foreign jurisdiction, including but not limited to modifying or amending the terms and conditions
governing any Awards, establishing sub-plans under the Plan, or adopting such procedures as the Committee may determine to be appropriate in response to differences in laws, rules, regulations or customs of such foreign jurisdictions with respect to
tax, securities, currency, employment, accounting or other matters. 
  

 -8- 

	 	10.	Miscellaneous. 

a. No Right To Employment. No person shall have any claim or right to be granted an Award. Neither the adoption,
maintenance, nor operation of the Plan nor any Award hereunder shall constitute a contract of employment or confer upon any employee, director or consultant of the Company or of any Affiliate any right with respect to the continuance of his/her
employment by or other service with the Company or any such Affiliate nor shall it or they be construed as affecting the rights of the Company (or Affiliate) to terminate the service of any person at any time or otherwise change the terms of such
service, including, without limitation, the right to promote, demote or otherwise re-assign any employee or other service provider from one position to another within the Company or any Affiliate. 

b. No Rights As Stockholder. Subject to the provisions of the applicable Award, no Participant or Designated
Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be issued under the Plan until he or she becomes the holder thereof. A Participant to whom Restricted Stock or Unrestricted Stock is awarded shall be
considered a stockholder of the Company at the time of the Award except as otherwise provided in the applicable Award. 

c. Effective Date. The date on which the Joint Prepackaged Plan of Reorganization Plan of the Company (and the
other Debtors listed therein) becomes effective. 
 d. Amendment of Plan. The Board may amend, suspend, or
terminate the Plan or any portion thereof at any time, subject to such stockholder approval as the Board determines to be necessary or advisable. Further, under all circumstances, the Committee may make non-substantive administrative changes to the
Plan as to conform with or take advantage of governmental requirements, statutes or regulations. 
 e.
Repricing. Without the approval of stockholders, the Committee will not amend or replace previously granted Options or SARs in a transaction that constitutes a “repricing,” which for this purpose means any of the following or any
other action that has the same effect: (i) lowering the exercise price of an Option or SAR after it is granted; (ii) any other action that is treated as a repricing under generally accepted accounting principles; or (iii) canceling an
Option or SAR at a time when its exercise price exceeds the Fair Market Value of the underlying Common Stock, in exchange for another Option or SAR or other equity, cash or other property; provided, however, that the foregoing transactions shall not
be deemed a repricing if pursuant to an adjustment authorized under Section 5(b). 
 f. Governing
Law. The provisions of the Plan shall be governed by and interpreted in accordance with the laws of the State of Delaware. 
  

 -9- 

 APPENDIX A 

PERFORMANCE CRITERIA TERMS 

A Performance Criterion must be an objectively determinable measure of performance relating to any or any combination of the following (measured either
absolutely or by reference to an index or indices and determined either on a consolidated basis or, as the context permits, on a divisional, subsidiary, line of business, project or geographical basis or in combinations thereof): sales; revenues;
assets; expenses; earnings before or after deduction for all or any portion of interest, taxes, depreciation, or amortization, whether or not on a continuing operations or an aggregate or per share basis, including, without limitation, EBITDA or
adjusted EBITDA as determined for purposes of any credit agreement or other agreement to which the Company is a party; return on equity, investment, capital or assets; one or more operating ratios; borrowing levels, leverage ratios or credit rating;
market share; capital expenditures; cash flow; net cash from operations plus or minus such expenditures, expenses, cash proceeds from dispositions (whether or not of operating assets) and other objectively determinable adjustments, if any, as the
Committee may determine; stock price; stockholder return; sales of particular products or services; customer acquisition or retention; acquisitions and divestitures (in whole or in part); joint ventures and strategic alliances; spin-offs, split-ups
and the like; reorganizations; or recapitalizations, restructurings, financings (issuance of debt or equity) or re-financings. A Performance Criterion and any targets with respect thereto determined by the Committee need not be based upon an
increase, a positive or improved result or avoidance of loss. The Committee may provide that any or any combination, or all, of the Performance Criteria applicable to an award will be adjusted in an objectively determinable manner to reflect events
(for example, but without limitation, acquisitions or dispositions) occurring during the performance period that affect the applicable Performance Criterion or Criteria, to the extent consistent with the requirements for satisfying the
performance-based compensation exception under Section 162(m) of the Code. 
  

 -10-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]