Document:

Converted by EDGARwiz

Exhibit 10.3

Eaton Vance Corp.

2013 INCENTIVE COMPENSATION NONQUALIFIED EMPLOYEE STOCK PURCHASE PLAN

October 4, 2013

as Amended and Restated on October 30, 2015

The purpose of this 2013 Incentive Compensation Nonqualified Employee Stock Purchase Plan, as amended and restated, (the “Incentive ESPP”) is to provide employees of Eaton Vance Corp. (the “Company”) and its subsidiaries with opportunities to apply up to fifty percent (50%) of their Non-Base Compensation (as defined below) to purchase shares of the Company’s non-voting common stock (the “Non-Voting Common Stock”) in accordance with the terms hereof.  Either authorized and unissued shares of Non-Voting Common Stock or issued shares of Non-Voting Common Stock heretofore or hereafter reacquired by the Company may be issued under the Incentive ESPP.   Six hundred thousand (600,000) shares of Non-Voting Common Stock in the aggregate have been approved for this purpose, subject to any adjustment pursuant to Section 13 hereof.  

1.

Administration.  The Incentive ESPP will be administered by the Company’s Board of Directors (the “Board”) or by a Committee appointed by the Board (the “Committee”) (See Exhibit A).  The Board or the Committee has authority to make rules and regulations for the administration of the Incentive ESPP and its interpretation and decisions with regard thereto shall be final and conclusive.

2.

Eligibility.  Any employee of the Company or any subsidiary of the Company who receives Non-Base Compensation is eligible to elect to participate in any one or more of the offerings of Options (as defined in Section 7) to purchase Non-Voting Common Stock under the Incentive ESPP.  The Company retains the discretion to determine which eligible employees may participate in an offering. 

3.

Offerings.  The Company will make one or more offerings (“Offerings”) to eligible employees who elect to purchase shares of Non-Voting Common Stock under this Incentive ESPP.  Offerings will begin on or about each November 16, February 16, May 16 and August 16, or the first business day thereafter (the “Offering Commencement Dates”), with the actual Offering Commencement Date for each Plan Period (as defined below) to be communicated to eligible employees no later than 10 days prior to such Offering Commencement Date.  Each Offering Commencement Date will begin a three (3) month period (a “Plan Period”). The Board or the Committee may, at its discretion, choose a different commencement date for Offerings under the Incentive ESPP. 

4.

Participation.  An eligible employee may participate in any Offering by completing and submitting an online election form with the Company’s authorized agent or otherwise completing and forwarding such other written or electronic election form approved by the Company to the employee’s appropriate payroll office, in either case, by the 10th day of the 

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month in which the applicable Offering Commencement Date occurs and complying with such other administrative procedures as the Board or the Committee shall establish from time to time.  The participating employee will elect on such election form to apply any whole percentage from a minimum of five percent (5%) to a maximum of fifty percent (50%) of the Non-Base Compensation the employee will receive during the following Plan Period (such amount, the “Elected Amount”) to purchase shares of Non-Voting Common Stock.  Unless an employee withdraws from the Incentive ESPP in accordance with Section 6 hereof, the employee’s Elected Amount will remain the same for future Offerings under the Incentive ESPP as long as the Incentive ESPP remains in effect.  The term “Non-Base Compensation” means any compensation other than (i) current base salary, (ii) retroactive base salary, (iii) overtime, (iv) dividends on unvested restricted stock and (v) vacation payouts and shall include, without limitation, annual cash incentives awarded by the Company, including cash amounts paid in settlement of incentive awards under the Eaton Vance Corp. Deferred Alpha Incentive Plan (and similar incentive plans), bonuses known as pre-tax incentive bonuses and annual sales bonuses, as well as monthly cash incentive bonuses and commissions.

5.

Interest.  Interest will not be paid on any portion of any Elected Amount to be applied to the purchase of shares of Non-Voting Common Stock pursuant to the terms hereof, except to the extent that the Board or the Committee, in its sole discretion, elects to credit an employee with interest on the employee’s Elected Amount at such rate as it may from time to time determine.

6.

Withdrawal.  An employee who has elected to participate under the Incentive ESPP may withdraw his or her election to participate in an Offering by giving notice to the Company or its authorized agent at any time prior to the close of business on the 10th day prior to the applicable Exercise Date (as defined below). The portion of any Elected Amount withheld for the purchase of shares of Non-Voting Common Stock and not used for the purchase of such shares shall be returned without interest.  The employee may participate in any subsequent Offering in accordance with terms and conditions established by the Board or the Committee.

7.

Purchase of Shares.  

(a)

Number of Shares.

On the Offering Commencement Date of each Plan Period, the Company will grant to each eligible employee who is then a participant in the Incentive ESPP an option (an “Option”) to purchase on the last business day of such Plan Period (the “Exercise Date”) at the applicable purchase price (the “Option Price”) up to a whole number of shares of Non-Voting Common Stock determined by dividing the Elected Amount by Option Price.

(b)

Option Price.

The Option Price will be 90% of the lesser of the closing price of the Non-Voting Common Stock on (i) the Offering Commencement Date or (ii) the Exercise Date.  The closing price shall be the closing price (for the primary trading session) on any national securities exchange on which the Non-Voting Common Stock is listed.  If no sales of Non-Voting Common Stock were made on such a day, the price of the Non-Voting Common Stock shall be the reported price for the most recent previous day on which sales were made.  

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(c)

Exercise of Option.

Each employee who continues to be a participant in the Incentive ESPP on the Exercise Date shall be deemed to have exercised his Option at the Option Price on such date and shall be deemed to have purchased from the Company the number of whole shares of Non-Voting Common Stock reserved for the purpose of the Incentive ESPP that his or her Elected Amount will pay for.

(d)

Return of Unused Elected Amount.  Any balance of the Elected Amount representing a fractional share interest will be carried forward for the following Offering unless the participating employee elects not to participate in the following Offering, in which case the balance will be returned to the participating employee without interest following the Exercise Date. 

8.

Issuance of Shares.  Shares of Non-Voting Common Stock purchased under the Incentive ESPP will held in book entry in an account at the brokerage firm designated by the Company, which account may be in the name of the employee or in the name of the employee and another person of legal age as joint tenants with rights of survivorship.    

9.

Rights on Termination of Employment.  If a participating employee's employment ends before the last business day of a Plan Period, no portion of such employee’s Elected Amount shall be taken from any pay then due and owing to the employee and the portion of any Elected Amount then held by the Company shall be paid to the employee.  In the event of the employee’s death before the last business day of a Plan Period, the Company shall, upon notification of such death, pay any portion of the Elected Amount then held by the Company (a) to such beneficiary or beneficiaries as the employee has designated in writing during his or her lifetime to the Company (each a “Designated Beneficiary”); (b) if there is no such Designated Beneficiary, to his or her surviving spouse; (c) if none, to the executor or administrator of the employee’s estate; or (d) if no such executor or administrator has been appointed to the knowledge of the Company, to such other person(s) as the Company may, in its discretion, designate.  

10.

Optionees Not Stockholders.  Neither the granting of an Option to an employee nor the deductions from his or her Non-Base Compensation shall make such employee a stockholder of the shares of Non-Voting Common Stock covered by an Option under this Incentive ESPP until he or she has purchased and received such shares.

11.

Options Not Transferable.  Options under this Incentive ESPP are not transferable by a participating employee other than by will or the laws of descent and distribution, and are exercisable during the employee’s lifetime only by the employee.

12.

Application of Funds.  All funds received or held by the Company under this Incentive ESPP may be combined with other corporate funds and may be used for any corporate purpose, unless expressly forbidden under the laws of the country of domicile of a particular subsidiary. 

13.

Adjustment for Changes in Non-Voting Common Stock and Certain Other Events.   

(a)

Changes in Capitalization.  In the event of any stock split, reverse stock 

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split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any dividend or distribution to holders of Non-Voting Common Stock other than an ordinary cash dividend, (i) the number and class of securities available under this Incentive ESPP and (ii) the Option Price shall be equitably adjusted to the extent determined by the Board or the Committee.

(b)

Reorganization Events.

(1)

Definition.  A “Reorganization Event” shall mean:  (a) any merger or consolidation of the Company with or into another entity as a result of which all of the Non-Voting Common Stock of the Company is converted into or exchanged for the right to receive cash, securities or other property or is cancelled, (b) any transfer or disposition of all of the Non-Voting Common Stock of the Company for cash, securities or other property pursuant to a share exchange or other transaction or (c) any liquidation or dissolution of the Company.

(2)

Consequences of a Reorganization Event on Options.  In connection with a Reorganization Event, the Board or the Committee may take any one or more of the following actions as to outstanding Options on such terms as the Board or the Committee determines:  (i) provide that Options shall be assumed, or substantially equivalent Options shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof), (ii) upon written notice to employees, provide that all outstanding Options will be terminated immediately prior to the consummation of such Reorganization Event and that all such outstanding Options will become exercisable to the extent of the Elected Amount held by the Company as of a date specified by the Board or the Committee in such notice, which date shall not be less than ten (10) days preceding the effective date of the Reorganization Event, (iii) upon written notice to employees, provide that all outstanding Options will be cancelled as of a date prior to the effective date of the Reorganization Event and that any portion of the participating employee’s Elected Amount held by the Company will be returned to participating employees on such date, (iv) in the event of a Reorganization Event under the terms of which holders of Non-Voting Common Stock will receive upon consummation thereof a cash payment for each share surrendered in the Reorganization Event (the “Acquisition Price”), change the last day of the Plan Period to be the date of the consummation of the Reorganization Event and make or provide for a cash payment to each employee equal to (A) (i) the Acquisition Price times (ii) the number of shares of Non-Voting Common Stock that the employee’s Elected Amount could purchase at the Option Price, where the Acquisition Price is treated as the fair market value of the Non-Voting Common Stock on the last day of the applicable Plan Period for purposes of determining the Option Price under Section 7(b) hereof, and where the number of shares that could be purchased is determined in accordance with Section 7(a) hereof, minus (B) the result of multiplying such number of shares by such Option Price, (v) provide that, in connection with a liquidation or dissolution of the Company, Options shall convert into the right to receive liquidation proceeds (net of the Option Price thereof) and (vi) any combination of the foregoing. 

For purposes of clause (i) above, an Option shall be considered assumed if, following consummation of the Reorganization Event, the Option confers the right to purchase, for each share of Non-Voting Common Stock subject to the Option immediately prior to the consummation of the Reorganization Event, the consideration (whether cash, securities or other property) received as a result of the Reorganization Event by holders of Non-Voting Common 

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Stock for each share of Non-Voting Common Stock held immediately prior to the consummation of the Reorganization Event (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Non-Voting Common Stock); provided, however, that if the consideration received as a result of the Reorganization Event is not solely common stock of the acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation, provide for the consideration to be received upon the exercise of Options to consist solely of such number of shares of common stock of the acquiring or succeeding corporation (or an affiliate thereof) that the Board determines to be equivalent in value (as of the date of such determination or another date specified by the Board) to the per share consideration received by holders of outstanding shares of Non-Voting Common Stock as a result of the Reorganization Event.

14.

Amendments to or Termination of the Incentive ESPP.  The Board may at any time, and from time to time, without notice, amend, modify, suspend or terminate this Incentive ESPP, provided however that the then-existing rights of all participating employee’s shall not be adversely affected thereby.  For the avoidance of doubt, participating employees shall not be adversely affected by any amendment, modification, suspension or termination of this Incentive ESPP as long as the participating employees may receive a refund on any amounts otherwise allocable to shares of Non-Voting Common Stock not purchased. 

15.

Governmental Regulations.  The Company’s obligation to sell and deliver Non-Voting Common Stock under this Incentive ESPP is subject to listing on a national stock exchange (to the extent the Non-Voting Common Stock is then so listed or quoted) and the approval of all governmental authorities required in connection with the authorization, issuance or sale of such stock.  

16.

Governing Law.  The Incentive ESPP shall be governed by Maryland law except to the extent that such law is preempted by federal law.

17.

Issuance of Shares.  Shares may be issued upon exercise of an Option from authorized but unissued Non-Voting Common Stock, from shares held in the treasury of the Company, or from any other proper source.  

18.

Restriction on Sale of Shares.  No participating employee shall be permitted to sell any shares of Non-Voting Common Stock purchased under the Incentive ESPP until the earliest of (i) the first anniversary of the Exercise Date on which the shares were purchased; (ii) the participating employee’s death; and (iii) the date on which the participating employee presents proof satisfactory to the Company that he or she has either become disabled within the meaning of Section 22(e)(3) of the Code or needs such shares on account of Hardship.  For purposes of the Incentive ESPP, “Hardship” shall mean an immediate and heavy financial need which may be met only by the sale of shares of Non-Voting Common Stock, as determined by the Board or Committee in accordance with nondiscriminatory standards.

19.

Withholding.  Each participating employee shall, no later than the date of the event creating the tax liability, make provision satisfactory to the Board or Committee for payment of any taxes required by law to be withheld in connection with any transaction related 

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to Options granted to or shares acquired by such employee pursuant to the Incentive ESPP.  The Company may, to the extent permitted by law, deduct any such taxes from any payment of any kind otherwise due to an employee.

20.

Effective Date.  The Incentive ESPP shall take effect on October 4, 2013.  It was initially adopted by the Board of Directors on October 3, 2013 and approved by the stockholders on October 4, 2013.  The Incentive ESPP, as amended and restated, shall take effect on October 30, 2015, the date it was approved by the stockholders; it was initially approved by the Board of Directors on October 28, 2015.

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EXHIBIT A

Initial actions taken by the Board, and approved by the Voting Stockholders, effective October 4, 2013.

Pursuant to Section 1 of the Incentive ESPP, the Board appoints the Management Committee to administer the Incentive ESPP.

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           Exhibit 10.4

EXHIBIT B

Incentive Plan

EVA Holdings, LLC,  a Delaware limited liability company (the “General Partner”), and Parametric Portfolio, L.P., a Delaware limited partnership (the “Partnership”), have established a long-term incentive plan (the “Plan”), effective as of October 30, 2015, amending and restating the Partnership’s previous long-term incentive plan, which was effective as of October 31, 2013.  The purpose of the Plan is to create a market competitive long-term equity incentive program for key employees of PPA and its Affiliates.  Grants under the Plan are intended to attract, retain and motivate key professionals and provide an opportunity for these employees to become indirect owners of PPA, through their interest in the Partnership, and participate in the future growth of PPA over time.

The key elements of the Plan, applicable to all Operating Units and Liquidating Floor Units hereunder, are as follows:

1.

Operating Units and Liquidating Floor Units.  The Plan will consist of Operating Units and Liquidating Floor Units in the Partnership.  Operating Units and Liquidating Floor Units will participate in distributions in accordance with the Agreement.  The number of Operating Units and Liquidating Floor Units made available for issuance by the General Partner shall be set forth on Exhibit A to the Agreement.  The General Partner shall remain the owner of any Operating Units or Liquidating Floor Units made available for issuance under the Plan but not yet issued, entitling the General Partner to all rights in respect thereof.  The Operating Units and Liquidating Floor Units granted under the Plan will be designated in accordance with the year of the Issuance Date of such Operating Units and Liquidating Floor Units (e.g., Operating Units with an Issuance Date of November 2, 2015 shall be designated “2015 Operating Units”).

2.

Issuance Dates.  Operating Units and Liquidating Floor Units shall only be issued on the first day of a Fiscal Year, except as otherwise agreed in writing by the General Partner.  Operating Units and Liquidating Floor Units will be issued at the sole discretion of the General Partner.  The date an Operating Unit or Liquidating Floor Unit is issued is referred to herein as the “Issuance Date” of such Operating Unit or Liquidating Floor Unit; provided that the Issuance Date of Operating Units and Liquidating Floor Units issued from the conversion of profit units outstanding immediately before the effective date of the Agreement shall be the issuance date of such profit units as determined under the Plan immediately before such effective date, as reflected on Schedule A.

3.

Valuation.

(a)

The General Partner shall in good faith determine the fair value of a Unit (the “Fair Value”), on the basis of its Liquidation Value, by utilizing an annual appraisal, conducted by an independent third party within a reasonable period prior to the first day of such Fiscal Year, of the units of PPA held by the Partnership.  The annual appraisal will utilize two 

valuation techniques: the fading growth model and the guideline company method.  These two valuation methodologies will utilize appropriate discount rates as well as relevant investment management industry market multiples.  The General Partner shall review the results of such annual appraisal and, in its discretion, make such adjustments thereto in determining the Fair Value, with the Fair Value for a Full Liquidating Unit as of the first day of such Fiscal Year to be set forth in an annual report to the Partners (the “Annual Valuation”).  The Fair Value of a Full Liquidating Unit, as set forth in each Annual Valuation, shall be used as the basis for determining (i) the Cap Amount and Floor Amount of a Liquidating Cap Unit or Liquidating Floor Unit, respectively, issued after the effective date of the Agreement and (ii) the price to be paid by the General Partner in connection with a repurchase of each Operating Unit and Liquidating Unit in accordance with the terms hereof.  For avoidance of doubt, it is understood that (i) the Liquidation Value of an Operating Unit, and therefore its Fair Value, is always zero and (ii) the Fair Value of Liquidating Floor Unit is its Liquidation Value as determined based on the assumption that the Liquidation Value of a Full Liquidating Unit is its Fair Value.

(b)

The Annual Valuation shall be final and binding on the General Partner, the Partnership and any Grantee under a Grant Agreement, subject to the dispute resolution procedure listed in this paragraph (b).  If a Grantee disagrees with the Fair Value set forth in the Annual Valuation, the Grantee may dispute such Fair Value by notifying the General Partner within 30 days of the distribution of such Annual Valuation and providing at the Grantee’s expense an alternative appraisal of a Unit prepared by a nationally recognized valuation firm within 120 days of the distribution of the Annual Valuation.  The General Partner and the Grantee shall then jointly select an arbitrator that is recognized as a valuation expert to determination of Fair Value of a Unit based on the appraisals obtained by each and such other information that either deem relevant.  The cost of the arbitrator will be shared equally between the Partnership and the Grantee.  The arbitrator’s determination shall be binding on the General Partner and Grantee but only with respect to Units held by the Grantee. Notwithstanding Section 6.2.11 of the Agreement, this Section shall govern the resolution of disputes about the Annual Valuation. 

4.

Plan Administration.  The General Partner shall be the administrator of the Plan; provided, however, the Grantees, and the number of Operating Units and Liquidating Floor Units to be issued thereto, shall be determined by the General Partner based upon the joint recommendation of the Managers and PPA’s Executive Committee (each as defined in the PPA Operating Agreement).

5.

Awards.  All Operating Units and Liquidating Floor Units awarded under the Plan shall be subject to the terms and conditions of a Grant Agreement to be executed and delivered by the Grantee. The Operating Units and Liquidating Floor Units shall be subject to vesting, Puts, Calls, forfeiture and other terms as set forth herein and in the Grant Agreement.  The form of Grant Agreement shall be as attached hereto as Appendix A.

6.

Vesting.  The Operating Units and Liquidating Floor Units shall be subject to vesting as provided herein.  “Unvested Units” shall mean 100% of the Operating Units and Liquidating Floor Units as of the Issuance Date of such Liquidating Floor Units, and “Vested Units” shall mean all Operating Units and Liquidating Floor Units that are not Unvested Units.  On each of the dates listed below, the respective number of Operating Units and Liquidating 

Floor Units indicated below shall become Vested Units if the Grantee remains an employee of PPA or an Affiliate of PPA on such date.  All vesting shall cease upon a Termination Event; provided, however, all Unvested Units shall immediately vest and become Vested Units (i) upon the death or Disability of the Grantee or (ii) if the General Partner, in its sole discretion, chooses to treat Unvested Units as Vested Units (all such accelerated Operating Units and Liquidating Floor Units, the “Accelerated Units”).  Notwithstanding anything in this paragraph to the contrary, Liquidating Floor Units converted from profit units outstanding immediately prior to the effective date of the Agreement shall be Vested Units if such profit units were previously vested under the Plan as in effect immediately before such effective date.

			
	Anniversary of

Issuance Date of Operating Units and Liquidating Floor Units

	Percentage of Operating Units and Liquidating Floor Units

Becoming Vested

	Cumulative

Percentage Vested

	 
	 
	 

	First

	10%

	10%

	Second

	15%

	25%

	Third

	20%

	45%

	Fourth

	25%

	70%

	Fifth

	30%

	100%

	 
	 
	 

7.

Put Rights.  

(a)

General.  Each Grantee shall have the right, subject to the terms and conditions set forth in this Section 7 and subject to the vesting provisions in Section 6, to cause the General Partner to purchase a portion of the Vested Units held by such Grantee as set forth in this Section 7 (each, a “Put”); provided, however, that in no event shall a Grantee cause a Put of, and the General Partner shall not be obligated to purchase, any Operating Units or Liquidating Floor Units that are, as of the applicable Exercise Date, Unvested Units; provided, further, that the Grantee must transfer an equal number of Operating Units and Liquidating Floor Units with the same Issuance Date upon the exercise of a Put.  Until the Put Closing Date, the Grantee shall receive all distributions distributable on the Operating Units held.

(b)

Exercise.  A Grantee may exercise a Put with respect to the Grantee’s Vested Units by delivery of a put exercise notice (a “Put Exercise Notice”) to the Partnership and General Partner, stating therein the number and designation of such Vested Units (the “Put Units”) with respect to which such Put is being exercised by no later than September 30th of the Fiscal Year immediately preceding the Fiscal Year in which the Exercise Date occurs (the “Put Exercise Period”).  If a Grantee submits a Put Exercise Notice on Vested Units that will not become Mature Units until after the Put Exercise Period, the Exercise Date for purposes of determining the Put Closing Date will be the first Exercise Date following the date on which such Vested Units become Mature Units.  As of September 30th of the Fiscal Year immediately preceding the Fiscal Year in which the Exercise Date occurs, the Put Exercise Notice shall constitute an irrevocable commitment on behalf of such Grantee to transfer to the General Partner the number of Put Units set forth therein (subject to any reduction required hereunder).

(c)

Purchase Price.  The purchase price per Put Unit shall be equal to the Fair Value of the Liquidating Floor Units on the applicable Exercise Date.  For the avoidance of doubt, no value shall be assigned to the Operating Units transferred on the exercise of a Put.

(d)

Closing.  The closing of the purchase and sale of any Put Units pursuant to the exercise of a Put shall be at a time and place specified by the parties involved in such transaction within thirty (30) days after (i) the delivery of the applicable Annual Valuation and (ii) the applicable Exercise Date, whichever is later (such closing date, the “Put Closing Date”).  At such closing, the Grantee shall deliver such Put Units free and clear of all liens, and, if requested by the General Partner, the Grantee shall execute an agreement reasonably acceptable to the General Partner stating therein that the Grantee has sole record and beneficial title to the Put Units, free and clear of any liens as of such closing date (other than those imposed by the Agreement).  The General Partner shall pay the aggregate purchase price for the Put Units by check or wire (net of withholding taxes, if any).  At the closing, the General Partner shall deliver a certificate confirming that the Put Units have been transferred to the General Partner and that Exhibit A to the Agreement (and Schedule A to the Grantee’s Partner Admission) has been amended to reflect such purchase.  In connection with any closing, the General Partner shall be deemed to be purchasing a ratable share of the Grantee’s Capital Account with respect to such Grantee’s Put Units as of the applicable Exercise Date.

(e)

Limitations on Puts.  Notwithstanding the foregoing, (i) a Grantee shall be entitled to exercise a Put in respect of such Grantee’s Operating Units and Liquidating Floor Units on no more than two (2) occasions and only during the term of such Grantee’s employment and (ii) the maximum number of Operating Units and Liquidating Floor Units that the General Partner shall be required to purchase from any individual Grantee pursuant to an exercise by a Grantee of his or her Put rights hereunder shall be equal to the difference between (x) fifty percent (50%) of the Aggregate Issued Units and (y) the sum of all such Grantee’s Units that have been previously purchased by the General Partner pursuant to the exercise by such Grantee of his or her Put rights hereunder.

8.

Call Rights.

(a)

General.  The General Partner shall have the right, but not the obligation, to purchase all or a portion of the Operating Units and Liquidating Floor Units from each Grantee, and each Grantee shall be obligated to sell such Operating Units and Liquidating Floor Units to the General Partner, upon and each year following the tenth anniversary of the Issuance Date of such Operating Unit or Liquidating Floor Unit (the “Call”) pursuant to the terms of this Section 8.  The General Partner may exercise the Call in respect of any or all Grantees, and any number of Operating Units and Liquidating Floor Units from any of such Grantees, in its sole discretion; provided, however, that the General Partner must purchase an equal number of Operating Units and Liquidating Floor Units with the same Issuance Date upon the exercise of a Call.  Until the Call Closing Date, the Grantee shall receive all distributions distributable on the Operating Units held.

(b)

Exercise.  The General Partner may exercise a Call by delivering written notice (the “Call Notice”) to that effect to a Grantee on or prior to September 30th immediately preceding the applicable Exercise Date (the “Call Exercise Period”), specifying therein an equal number of Operating Units and Liquidating Floor Units to be purchased by the General Partner (the “Call Units”) on the applicable Exercise Date.  If the General Partner submits a Call Notice on Vested Units that will not become Mature Units until after the Call Exercise Period, the Exercise Date for purposes of determining the Call Closing Date will be the first Exercise Date following the date on which such Vested Units become Mature Units.

(c)

Purchase Price.  The purchase price per Call Unit shall be equal to the Fair Value of the Liquidating Floor Units on the Exercise Date.  For the avoidance of doubt, no value shall be assigned to the Operating Units transferred on the exercise of a Call.

(d)

Closing.  The closing of the purchase and sale of any Call Units pursuant to the exercise of a Call shall be at a time and place specified by the parties involved in such transaction within thirty (30) days of the later to occur of (i) the delivery of the applicable Annual Valuation and (ii) the applicable Exercise Date (such closing date, the “Call Closing Date”).  At such closing, a Grantee shall deliver such Call Units free and clear of all liens, and, if requested by the General Partner, such Grantee shall execute an agreement reasonably acceptable to the General Partner stating therein that such Grantee has sole record and beneficial title to the Call Units, free and clear of any liens as of such closing date (other than those imposed by the Agreement).  The General Partner shall pay the aggregate purchase price for the Call Units by check or wire (net of withholding taxes, if any).  At the closing, the General Partner shall deliver a certificate confirming that the Call Units have been transferred to the General Partner and that Exhibit A to the Agreement (and Schedule A to such Grantee’s Partner Admission) has been amended to reflect such purchase.  In connection with any closing, the General Partner shall be deemed to be purchasing a ratable share of the Grantee’s Capital Account with respect to his or her Call Units.

9.

Repurchase upon Termination.

(a)

General.  Subject to Section 9(e), upon a Termination Event applicable to a Grantee, (i) the General Partner shall have the right, but not the obligation, to purchase all or a portion of the Operating Units and Liquidating Floor Units (including Unvested Units) from such Grantee, and such Grantee shall be obligated to sell such Operating Units and Liquidating Floor Units to the General Partner (a “Termination Call”), and (ii) such Grantee shall separately have the right, but not the obligation, to sell all or a portion of such Grantee’s Operating Units and Liquidating Floor Units to the General Partner (a “Termination Put”), in each case pursuant to the terms and conditions of this Section 9; provided, however, that upon a Termination Event, for any Vested Unit that is not a Mature Unit, the Termination Call and Termination Put shall apply to such Vested Unit on the first Exercise Date following the date on which such Vested Unit becomes a Mature Unit; provided, further, that the Grantee must transfer and the General Partner must purchase an equal number of Operating Units and Liquidating Floor Units with the same Issuance Date upon the exercise of a Termination Call or a Termination Put.  For the avoidance of doubt, a Termination Call shall apply to Unvested Units immediately upon the Termination Event.  Upon a Termination Event applicable to a Grantee, all of the Grantee’s Unvested Units (excluding, for these purposes, any Accelerated Units) held by such Grantee shall cease to vest. 

Until the Termination Closing Date, the Grantee shall receive all distributions distributable on the Operating Units held.

(b)

Exercise.  The General Partner or the Grantee may elect to exercise a Termination Call or Termination Put, as applicable, by delivering written notice (the “Termination Repurchase Notice”) to that effect to the other Party within the later of (a) the 90th day following the effective date of the Termination Event and (b) the date on which the General Partner receives the Annual Valuation for the Fiscal Year immediately following the year in which such Termination Event occurred, specifying in such Termination Repurchase Notice the number of Operating Units and Liquidating Floor Units (including any Accelerated Units) to be purchased by the General Partner (the “Repurchase Units”) on the applicable Repurchase Date.  As of the later of (a) the 90th day following the effective date of the Termination Event and (b) the date on which the General Partner receives the Annual Valuation for the Fiscal Year immediately following the year in which such Termination Event occurred, a Termination Repurchase Notice delivered by a Grantee shall constitute an irrevocable commitment on behalf of such Grantee to transfer to the General Partner the number of Repurchase Units set forth therein (subject to any reduction required hereunder).

(c)

Purchase Price.  The purchase price per Repurchase Unit which is a Vested Unit (including any Accelerated Units) shall be equal to the purchase price determined under the principles of Sections 7(c) and 8(c), above; provided, however, that in the event of a Termination Repurchase in connection with the termination of a Grantee’s employment with PPA and its Affiliates for Cause, the purchase price per Repurchase Unit that is a Vested Unit shall be equal to 10% of the value determined above as of the applicable Repurchase Date.  The aggregate purchase price for all Repurchase Units that are Unvested Units (after giving effect to any acceleration as provided herein) shall be $1.00.

(d)

Closing.  The closing of the purchase and sale of any Repurchase Units (including any Unvested Units) pursuant to the exercise of a Termination Repurchase shall be at a time and place specified by the parties involved in such transaction within thirty (30) days of the later to occur of (i) the delivery of the applicable Annual Valuation and (ii) the delivery of the Repurchase Notice (such closing date, the “Termination Closing Date”).  At each such closing, the Grantee shall deliver such Repurchase Units free and clear of all liens, and, if requested by the General Partner, the Grantee shall execute an agreement reasonably acceptable to the General Partner stating therein that the Grantee has sole record and beneficial title to the Repurchase Units, free and clear of any liens as of such closing date (other than those imposed by the Agreement).  The General Partner shall pay the aggregate purchase price for the Repurchase Units by check or wire (net of withholding taxes, if any).  At such closing, the General Partner shall deliver a certificate confirming that the Repurchase Units have been transferred to the General Partner and that Exhibit A to the Agreement (and Schedule A to such Grantee’s Partner Admission) has been amended to reflect such purchase.  In connection with any closing, the General Partner shall be deemed to be purchasing a ratable share of the Grantee’s Capital Account with respect to the Repurchase Units.

(e)

Notwithstanding anything to the contrary herein, upon the Retirement of a Grantee, PPA’s Executive Committee may recommend that the Retiree provide agreed-upon services to PPA and, accordingly, for the General Partner to refrain from purchasing all or a 

portion of the Operating Units and Liquidating Floor Units from such Grantee during the period of service (“Post-Retirement Period”).  If the General Partner approves, the General Partner will refrain from purchasing all or a portion of the Operating Units or Liquidating Floor Units from such Grantee as agreed between the parties.

10.

Failure to Execute.  In the event that a Grantee is required to sell some or all of a Grantee’s Operating Units or Liquidating Floor Units pursuant to the provisions of Sections 8 and 9 above, and in the further event that such Grantee refuses to, is unable to, or for any reason fails to, execute and deliver the agreements required by said sections, the General Partner may deposit the purchase price therefor in cash with any bank doing business within fifty (50) miles of the Partnership’s principal place of business, or in escrow, for such Grantee, to be held by such bank or escrow agent for the benefit of and for delivery to such Grantee.  Upon such deposit by the General Partner and upon notice thereof given to such Grantee, such Grantee’s Call Units or Repurchase Units, as applicable, shall be deemed to have been sold, transferred, conveyed and assigned to the General Partner, such Grantee shall have no further rights with respect thereto (other than the right to withdraw the payment therefor, if any, held by such bank or in escrow), and the General Partner shall record such transfer or repurchase on Exhibit A to the Agreement (and Schedule A to such Grantee’s Partner Admission).

11.

Assignment.  The General Partner may assign its rights and obligations hereunder to one or more of its Affiliates; provided, however, that nothing shall relieve the General Partner of its obligations hereunder.

12.

Effect of Purchase.  For the avoidance of doubt, upon the Closing of a Put or Call as set forth herein, the Grantee subject thereto shall cease to own the repurchased Operating Units and Liquidating Floor Units, and shall have no further rights in respect of such repurchased Operating Units and Liquidating Floor Units under the Agreement (including, without limitation, any right to distributions under the Agreement), other than the right to payment set forth in Sections 7 through 9 of the Plan, as applicable.

13.

Definitions.  Capitalized terms used in the Plan and not defined shall have the meanings given to them in the Agreement.  The following terms used in the Plan shall have the following meanings:

“Accelerated Units” has the meaning set forth in Section 6. 

“Aggregate Issued Units” means, as of any date and with respect to any Grantee, the total number of Operating Units and Liquidating Floor Units transferred by the General Partner and the Partnership to such Grantee pursuant to one or more Grant Agreements through such date, and for this purpose, any Profit Units that were issued to a Grantee and not converted pursuant to Section 1.4 of the Agreement shall be treated as Operating Units and Liquidating Floor Units transferred by the General Partner and the Partnership to the Grantee.

“Annual Valuation” has the meaning set forth in Section 3(a).

“Call” has the meaning set forth in Section 8(a).

“Call Exercise Period” has the meaning set forth in Section 8(b).

“Call Notice” has the meaning set forth in Section 8(b).

“Call Units” has the meaning set forth in Section 8(b).

“Cause” means, with respect to each Grantee, (i) the willful and continued failure of the Grantee to perform substantially the Grantee’s duties with PPA and its Affiliates (other than any such failure resulting from incapacity due to physical or mental illness, and specifically excluding any failure by the Grantee, after reasonable efforts, to meet performance expectations), after a written demand for substantial performance is delivered to the Grantee by the PPA Managers which specifically identifies the manner in which the PPA Managers believe that the Grantee has not substantially performed the Grantee’s duties, or (ii) the willful engaging by the Grantee in illegal conduct or gross misconduct which is materially and demonstrably injurious to PPA and its Affiliates.  For purposes of this provision, no act or failure to act, on the part of the Grantee, shall be considered “willful” unless it is done, or omitted to be done, by the Grantee in bad faith or without reasonable belief that the Grantee’s action or omission was in the best interests of PPA and its Affiliates.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the PPA Managers or based upon the advice of counsel for PPA shall be conclusively presumed to be done, or omitted to be done, by the Grantee in good faith and in the best interests of PPA.  The cessation of employment of the Grantee shall not be deemed to be for Cause unless and until there shall have been delivered to the Grantee a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the PPA Managers at a meeting of the PPA Managers called and held for such purpose (after reasonable notice is provided to the Grantee and the Grantee is given an opportunity, together with counsel, to be heard before the PPA Managers), finding that, in the good faith opinion of the PPA Managers, the Grantee is guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars thereof in detail.

“Disability” or “Disabled” means the inability of a Grantee, as determined by the PPA Managers, to perform the essential functions of his or her regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which has lasted (or can reasonably be expected to last) for a period of six (6) consecutive months.  At the request of the Grantee or his personal representative, the PPA Managers’ determination that the Disability of the Grantee has occurred shall be certified by two physicians mutually agreed upon by such Grantee, or his or her personal representative, and PPA and failing such independent certification (if so requested by the Grantee), the Grantee’s termination shall be deemed a termination by PPA without Cause and not a termination by reason of his Disability.

“Exercise Date” shall mean November 1 of each year or, solely with respect to Operating Units and Liquidating Floor Units having an Issuance Date that is later than November 1 of the Fiscal Year in which such Operating Units and Liquidating Floor Units are designated, such later date of each year subsequent to the Issuance Date (i.e., if the Issuance Date of an Operating Unit or Liquidating Floor Unit is November 3rd, then the Exercise Date for such Operating Unit or Liquidating Floor Unit shall be November 3rd of each subsequent year).

“Issuance Date” has the meaning set forth in Section 2.

“Mature Units” means Units that have been held by a Grantee for longer than six (6) months after becoming vested.

“Post-Retirement Period” has the meaning set forth in Section 9(e).

“PPA Managers” means the Managers of PPA as defined in the PPA Operating Agreement.

“Put” means, with respect to any Operating Unit or Liquidating Floor Unit, a Put and/or a Termination Put.

“Put Exercise Notice” has the meaning set forth in Section 7(b).

“Put Exercise Period” has the meaning set forth in Section 7(b).

“Put Units” has the meaning set forth in Section 7(b).

“Repurchase Date” means, with respect to a Termination Event of a Grantee, the first day of the Fiscal Year following the year in which such Termination Event occurs; provided, however, with respect to the repurchase of any Operating Units or Liquidating Floor Units in respect of the Death of such Grantee, the “Repurchase Date” may be such earlier date as determined by the General Partner.

“Repurchase Units” has the meaning set forth in Section 9(b).

“Retirement” means, with respect to a Grantee, either (i) such Grantee’s voluntary termination of his or her employment with PPA and its Affiliates following the attainment of such Grantee of age 65, (ii) such Grantee’s voluntary termination of his or her employment with PPA and its Affiliates following the attainment of such Grantee of age 55 and such Grantee has a combined age plus years of service to PPA and its Affiliates (including any predecessors) of 75 years, or (iii) or following the agreement of PPA’s Executive Committee and the EVA Managers to treat such voluntary termination as a retirement.

“Termination Call” has the meaning set forth in Section 9(a).

“Termination Put” has the meaning set forth in Section 9(a).

“Termination Event” means, with respect to a Grantee, an event of termination of such Grantee’s employment with PPA and its Affiliates for any reason (including, without limitation, the resignation, Retirement, death, Disability or termination by PPA with or without Cause).

“Termination Repurchase” means either a Termination Put or a Termination Call.

“Termination Repurchase Notice” has the meaning set forth in Section 9(b).

“Unvested Units” has the meaning set forth in Section 6.

“Vested Units” has the meaning set forth in Section 6.

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