Document:

Exhibit 10.12

 

WINDY CITY INVESTMENTS HOLDING, L.L.C.

 

SECOND AMENDED AND RESTATED UNITHOLDERS AGREEMENT

 

THIS SECOND AMENDED AND RESTATED UNITHOLDERS AGREEMENT (this “Agreement”) is made as of October 11, 2010 (the “Effective Date”), by and among Windy City Investments Holdings, L.L.C., a Delaware limited liability company (the “Company”) and certain employees of the Company or its Subsidiaries (each, an “Executive” and collectively, the “Executives”) as well as any other Person who, at any time, acquires Units in accordance with the terms of this Agreement and the LLC Agreement as determined by the Board (each, an “Other Unitholder” and collectively, the “Other Unitholders”). The Executives and the Other Unitholders are collectively referred to herein as the “Unitholders” and individually as a “Unitholder.” Except as otherwise defined herein or defined in the LLC Agreement (as defined below), capitalized terms used herein are defined in Section 5 hereof.

 

WHEREAS, certain Executives hold Class A Units and certain Executives hold or are acquiring rights to receive Class A Units in the future upon satisfaction of certain conditions (the “Deferred Units”);

 

WHEREAS, certain Other Unitholders may purchase Units or other equity securities or interests in the Company from time to time in the future;

 

WHEREAS, the Unitholders are parties to the LLC Agreement;

 

WHEREAS, certain Unitholders and the Company entered into this Agreement on November 13, 2007, as amended and restated on December 14, 2007 and now desire to further amend and restate this Agreement as set forth herein;

 

WHEREAS, the parties desire to enter into this Agreement to be applicable to all Units issued to Executives for the purposes, among others, of (i) assuring continuity in the management and ownership of the Company and (ii) limiting the manner and terms by which Units may be transferred.

 

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:

 

1.             Representations and Warranties. Each Executive represents and warrants that (a) this Agreement has been duly authorized, executed and delivered by such Executive and constitutes the valid and binding obligation of such Executive, enforceable in accordance with its terms, and (b) such Executive has not granted and is not a party to any proxy, voting trust or other agreement which is inconsistent with, conflicts with, or violates any provision of this Agreement.

 

2.             Restrictions on Transfer of Units. The following transfer restrictions shall apply to any issued and outstanding Class A Units (or other securities) that are received upon settlement of any Deferred Units that are granted on or after the Effective Date (the “Deferred

 

 

Class A Units”) and Stock (as defined below), in each case in addition to, and not in substitution for, any other transfer restrictions:

 

(a)           Transfer of Securities. No Executive shall Transfer any Deferred Class A Units or Stock (as defined below) without the prior consent of the Board, except for Transfers of Deferred Class A Units (i) to a Permitted Transferee in accordance with Section 2(c) hereof, (ii) in connection with a Sale of the Company in accordance with the LLC Agreement, (iii) in connection with any repurchase rights provided in Section 4, or (iv) with respect to a Transfer of Stock, in accordance with Section 2(b).

 

(b)           Transfers Following an IPO by Executives. Shares of stock or other securities distributed in respect of, or received on account of, the Deferred Class A Units (and any other shares of stock or property subsequently received in respect of such stock or securities) (collectively, “Stock”) held by an Executive or any Permitted Transferee of such Executive (“Applicable Shares of Stock”) shall be subject to the following restrictions on Transfer (in addition to, and not in substitution for, any other restriction on Transfer applicable to such Applicable Shares of Stock of such Executive or such Permitted Transferee): (i) no unvested Applicable Shares of Stock may be Transferred, (ii) no Applicable Shares of Stock may be Transferred during any Underwriter’s Restriction Period, (iii) commencing upon the expiration of the Underwriter’s Restriction Period, if any, imposed in connection with an IPO, no more than 33% of the aggregate number of shares of Applicable Shares of Stock (whether vested or unvested and including, on an as-issued and fully-settled basis, any such Applicable Shares of Stock issuable with respect to any Deferred Class A Units) held by an Executive or his Permitted Transferee at the end of the Underwriter’s Restriction Period may be Transferred by such Executive or Permitted Transferee during the first 12 consecutive months (and no more than 66% of such Applicable Shares, on a cumulative basis including whatever Shares may have been sold by such Executive or Permitted Transferee during the first 12 months, may be sold during the second 12 consecutive months) other than to a Permitted Transferee, provided, however that the restriction contained in this section (iii) shall expire after the date that is 36 months following the expiration of the Underwriter’s Restriction Period, (iv) in the event an Executive’s employment with the Company and its Subsidiaries is terminated at any time prior to an IPO in a Disqualifying Termination, the initial 12-month period specified in clause (iii) above applicable to such Executive and such Executive’s Permitted Transferees shall commence on the six-month anniversary of the expiration of the Underwriter’s Restriction Period imposed on other Executives in connection with the IPO and (v) in the event an Executive’s employment with the Company (including as the “Company,” the issuer of the Stock) and its Subsidiaries terminates after the IPO in a Disqualifying Termination and prior to the third anniversary of the expiration of the Underwriter’s Restriction Period, no vested Applicable Shares of Public Stock held by such Executive and such Executive’s Permitted Transferees may be Transferred during the six-month period commencing upon such termination of employment (the “Termination Blackout Period”) and the Termination Blackout Period shall be disregarded and ignored for purposes of determining the number of Applicable Shares of Stock that may be Transferred by such Executive and such Executive’s Permitted Transferees during any 12 consecutive month period that includes the Termination Blackout Period. Subject to any other agreement applicable to Applicable Shares of Stock (including any registration rights agreement), the Applicable Shares of Stock held by an Executive shall not be subject to restrictions on Transfer under this Section 2(b) upon the expiration of the longest period specified in this Section 2(b) that is

 

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applicable to such Executive. Upon the written request of any Executive, the Company shall promptly inform such Executive of the number of vested Applicable Shares of Stock that the Company calculates such Executive may Transfer consistently with this Section 2(b) subject to the terms and conditions hereof.

 

(c)           Permitted Transfers. The restrictions set forth in Section 2(a) or Section 2(b) shall not apply to any Transfer of Deferred Class A Units or Stock by an Executive (A) who is an individual (i) in the event of such Executive’s death, pursuant to will or applicable laws of descent or distribution, (ii) to such Executive’s legal guardian (in case of any mental incapacity) or (iii) to or among his or her Family Group, or (B) that is an entity, to or among its Affiliates; provided that the restrictions contained in this Agreement and any other agreement applicable to such Executive or such Deferred Class A Unit and/or Stock will continue to be applicable to the Units and/or Stock after any Transfer pursuant to this Section 2(c), subject to Section 8. At least 30 days prior (other than in the case of Transfers pursuant clauses (A)(i) or (ii) above, in which case as promptly as practical following such Transfer) to the Transfer of Deferred Class A Units or vested Stock pursuant to this Section 2(c), the Transferee(s) will deliver a written notice to the Company, which notice shall disclose in reasonable detail the identity of such Transferee. Any Transferee of Deferred Class A Units or Stock pursuant to a Transfer in accordance with the provisions of this Section 2(c) is herein referred to as a “Permitted Transferee.” Notwithstanding the foregoing, (A) no party hereto shall avoid the provisions of this Agreement or the LLC Agreement by (i) making one or more Transfers to one or more Permitted Transferees and then disposing of all or any portion of such party’s interest in any such Permitted Transferee or (ii) Transferring the securities of any entity holding (directly or indirectly) Units or Stock and (B) if and to the extent that the Board determines in good faith that the Transfer of Deferred Class A Units or Stock to a Permitted Transferee pursuant to this Section 2(c) would have an adverse effect on the Company, including by causing the Company to become subject to the reporting requirements of the Exchange Act, the Board may delay, modify, or, if determined by the Board to be necessary to avoid such adverse effect, prohibit any such Transfer pursuant to this Section 2(c). Any Permitted Transferee shall be bound by, and subject to, the terms of this Agreement to the same extent that Executive would be bound by such terms if the Deferred Class A Units or vested Stock held by a Permitted Transferee were still held by Executive.

 

(d)           Implementation. The Company or its Subsidiaries may apply an appropriate legend on any shares of Stock, issue stop orders or take such actions as are necessary or appropriate to implement the provisions of this Section 2.

 

(e)           Termination of Restrictions. The restrictions set forth in this Section 2 shall continue with respect to each Deferred Class A Unit and each share of Stock until the consummation of a Sale of the Firm or such restrictions otherwise lapse pursuant to Section 2(b).

 

3.             Holdback. In connection with any Public Offering, each Executive shall enter into any lockup, cutback, or other limitations or transfer restrictions requested in good faith based upon the then prevailing market precedent and public investor expectations by the underwriters managing such Public Offering with respect to all of the Deferred Class A Units issued to such Executive and any Stock received in respect of such Deferred Class A Units.

 

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4.             Repurchase Option. Except as otherwise determined by the Board in its sole and absolute discretion, the vested Units, which, for the avoidance of doubt, shall include the Deferred Class A Units, held by an Executive will be subject to repurchase, in each case by the Company and its Subsidiaries and the Investor Members pursuant to the terms and conditions set forth in this Section 4 (the “Repurchase Option”).

 

(a)           Repurchase Priority. In the event of a termination of an Executive’s employment with the Company or its Subsidiaries for any reason, first the Company and its Subsidiaries, and second the Investor Members shall have the right, but not the obligation, to repurchase (pro rata, in the case of the Investor Members) all or any portion of the vested Units or vested shares of Stock then held by such Executive or such Executive’s Permitted Transferees.

 

(b)           Repurchase Price. The price per vested Unit or share of vested Stock to be paid pursuant to repurchases under this Section 4 shall be as follows: (1) in the case of the repurchase of Deferred Class A Units or Stock received in respect of Deferred Class A Units, after a termination by the Company for Cause, 90%, as applicable, of the Fair Market Value of such Unit or Stock as of the date of repurchase; and (2) in the case of a termination of Executive’s employment for any other reason or under any other circumstances in which a repurchase option exists, the Fair Market Value of such vested Unit or Stock as of the date of repurchase. Any amounts paid to repurchase a vested Unit or vested Stock under this Section 4 shall be paid in cash.

 

(c)           Repurchase Procedure.

 

(i)            The Company or any of its Subsidiaries shall be entitled to repurchase all or any portion of the Units or shares of Stock subject to repurchase pursuant to this Section 4 (the “Available Equity”) by delivery of a written notice (the “Company Repurchase Notice”) to the Executive within 120 days after the Executive’s separation date, or, if later, within 60 days after the calendar quarter containing the Executive’s separation date (the “Repurchase Notice Period”) setting forth the amount of Available Equity it intends to purchase. Notwithstanding anything to the contrary in this Agreement, the Company or any of its Subsidiaries may acquire such Available Equity with stock of Windy Holdings with a Fair Market Value equal to the repurchase price determined under Section 4(b) and if Windy Holdings then immediately redeems such stock for cash.

 

(ii)           If for any reason the Company and its Subsidiaries do not elect to purchase all of the Available Equity, then the Investor Members shall be entitled to repurchase all or any portion of the Available Equity that was not repurchased by the Company and its Subsidiaries pursuant to Section 4(c)(i) above (the “Remaining Equity”). As soon as practicable after the Company and its Subsidiaries have determined that they will not purchase all of the Remaining Equity, but in any event within 150 days after the beginning of the Repurchase Notice Period corresponding to such Remaining Equity, or, if later, within 90 days after the end of the calendar quarter containing the Executive’s separation date, the Company shall

 

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provide to each Investor Member setting forth the amount of Remaining Equity (the “Available Equity Notice”). The Investor Members may elect to purchase all or any portion of the Remaining Equity by giving written notice to the Company within 30 days after the Available Equity Notice has been delivered to the Investor Members by the Company. If the Investor Members elect to purchase an aggregate amount of Remaining Equity in excess of the amount of Remaining Equity specified in the Available Equity Notice, then the Remaining Equity shall be allocated among the Investor Members on a pro rata basis according to the number of Class A Units owned by each Investor Member on the date of the Available Units Notice. Any Investor Member may condition its election to purchase such Remaining Equity on the election of one or more other Investor Members to purchase Remaining Equity. As soon as practicable, and in any event within 10 days after the expiration of the 30 day period beginning on the date the Available Equity Notice is delivered to the Investor Members pursuant to this Section 4(c)(ii), the Investor Members shall deliver a further Repurchase Notice (the “Investor Member Repurchase Notice”) to the holders of such Remaining Equity and the Company setting forth the amount of Remaining Equity to be acquired and the time and place for the closing of the transaction. At the time the Investor Members deliver the Investor Member Repurchase Notice to the holders of such Remaining Equity, the Company shall also deliver written notice to each Investor Member setting forth the amount of Remaining Equity such Investor Member is entitled to purchase and the time and place of the closing of the transaction.

 

(d)           Notwithstanding anything to the contrary contained in this Agreement, all repurchases of Units or Stock by the Company and its Subsidiaries shall be subject to applicable restrictions contained in the Act, as amended, or any successor statute and in the Company’s and its Subsidiaries’ debt and equity financing agreements. If any such restrictions prohibit the repurchase of Units hereunder which the Company and its Subsidiaries is otherwise entitled to make, the Company will provide written notice to the Investor Members as soon as reasonably practicable after such determination and the order of repurchase for the Company and its Subsidiaries and the Investor Members as set forth in this Section 4(c) shall be reversed (i.e., the Investor Members will be substituted for the Company and its Subsidiaries in Section 4(c)(i) above and the Company and its Subsidiaries will be substituted for the Investor Members in Section 4(c)(ii) above). In such event, the period during which the Company and its Subsidiaries may exercise such repurchase right under Section 4(c) shall be tolled during the period such restrictions are in effect and the Company and its Subsidiaries shall be allowed to exercise their repurchase rights under Section 4(c) during the 30-day period following the date such restrictions are no longer in effect; provided, however, that such repurchase rights shall lapse and terminate if such purchase is not consummated within such 30-day period following the end of such tolling period.

 

(e)           Upon delivery of the full consideration for the Units or Stock at the closing of a repurchase pursuant to this Section 4, the holder of such Units or Stock from whom such securities are to be purchased shall cease to have any rights as a holder of such securities,

 

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and such securities shall be deemed purchased in accordance with the applicable provisions hereof and the purchaser thereof shall be deemed the owner (of record and beneficially) and holder(s) of such securities, whether or not the certificate representing such Units or Stock has been delivered as required by this Agreement.

 

(f)            Any election by the Company and its Subsidiaries or the Investor Members (or, in each case, any of their designees) to purchase Units or Stock pursuant to this Section 4 shall be revocable by such Person (with respect to all or any portion of the Units elected to be purchased) at any time prior to the closing of such purchase, without any liability whatsoever to such Person in respect of the rights and obligations in this Section 4.

 

(g)           The provisions of this Section 4 will terminate with respect to all Units upon the consummation of an IPO.

 

5.             Definitions.

 

(a)           For purposes of this Agreement, terms defined elsewhere in this Agreement shall have the meanings set forth herein, and the following terms have the meanings set forth below:

 

“Accredited Investor” means an “accredited investor” within the meaning of Regulation D of the Securities Act.

 

“Act” means the Delaware Limited Liability Company Act, 6 Del. L. § 18-101, et seq., as it may be amended from time to time, and including any successor statute.

 

“Affiliate” has the meaning given such term in the LLC Agreement.

 

“Board” means the Board of Managers of the Company.

 

“Cause” shall have the meaning provided in the Executive’s employment agreement, provided that if no such agreement exists, “Cause” shall mean: (i) the willful and continued failure of Executive to perform substantially Executive’s duties with the Company or one of its subsidiaries (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to Executive by the Board or its representatives, which specifically identifies the manner in which the Board believes that Executive has not substantially performed Executive’s duties; (ii) the willful engaging by Executive in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company or its Affiliates; (iii) conviction of a felony or entry of a guilty or nolo contendere plea by Executive with respect thereto; (iv) a material breach by Executive of the restrictive covenants included in any agreement granting Units to such Executive; or (v) a willful or reckless violation of a material regulatory requirement, or of any material written Company policy or procedure, that is materially and demonstrably injurious to the Company. For purposes of this provision, no act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s act or omission was in the best interests of the Company. Any act, or failure to act, based upon express authority given pursuant to a resolution duly adopted by the Board with respect to such act or omission or based upon the

 

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advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.

 

“Class A Units” has the meaning given term in the LLC Agreement.

 

“Deferred Units” means any Deferred Units issued by a subsidiary of the Company that entitle the holder, upon settlement, to receive Class A Units or other property based upon the value of Class A Units.

 

“Disability” means Executive’s inability, due to illness, accident, injury, physical or mental incapacity or other disability, to carry out effectively Executive’s duties and obligations to the Company or any of its Subsidiaries or, if applicable based on Executive’s position, to participate effectively and actively in the management of the Company or any of its Subsidiaries for a period of at least 90 consecutive days or for shorter periods aggregating at least 120 days (whether or not consecutive) during any twelve month period, as determined in the reasonable judgment of the Board. A Disability shall be deemed to have occurred on the date that either Executive or Executive’s personal representative or legal guardian, on the one hand, or the Company, on the other hand, provides notice to the other party of the satisfaction of each of the requirements to constitute a Disability set forth above or on such other date as the parties shall mutually agree.

 

“Disqualifying Termination” shall mean a termination of the Executive’s employment with the Company and its Subsidiaries for any reason other than the Executive’s death, Disability, termination by the Company or the Subsidiary without Cause or the Executive’s resignation for Good Reason.

 

“Exchange Act” means the Securities Exchange Act of 1934, as it may be amended from time to time, and including any successor statute.

 

“Executive” means an Executive and/or its Permitted Transferees.

 

“Fair Market Value” has the meaning given such term in the LLC Agreement.

 

“Family Group” means, with respect to a Person who is an individual, such Person’s spouse and descendants (whether natural or adopted), and any trust, family limited partnership, limited liability company or other entity wholly owned, directly or indirectly, by such Person or such Person’s spouse and/or descendants that is and remains solely for the benefit of such Person and/or such Person’s spouse and/or descendants and any retirement plan for such Person.

 

“Good Reason” has the meaning given such term in any employment agreement or benefit plan of the Company applicable to the Executive, provided, however, that if no such agreement or similar arrangement shall apply to such Executive, the concept of resignation with Good Reason shall not apply to such Executive.

 

“Investor Members” has the meaning given such term in the LLC Agreement.

 

“IPO” has the meaning given such term in the LLC Agreement.

 

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“LLC Agreement” means the Company’s Amended and Restated Limited Liability Company Agreement (as the same may be amended supplemented or otherwise modified from time to time in accordance with its terms.)

 

“Manager” has the meaning given such term in the LLC Agreement.

 

“MDP” has the meaning given such term in the LLC Agreement.

 

“Nuveen” means Nuveen Investments, Inc, a Delaware Corporation.

 

“Permitted Transferees” has the meaning set forth in Section 2(c).

 

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

 

“Public Sale” has the meaning given such term in the LLC Agreement.

 

“Registration Agreement” has the meaning given such term in the LLC Agreement.

 

“Restatement Date” has the meaning given such term in the LLC Agreement.

 

“Sale of the Company” has the meaning given such term in the LLC Agreement.

 

“Sale of the Firm” means (i) the consummation of a Sale of the Company; or (ii) both (x) a person or a group of persons acting as a “group” for purposes of the federal securities laws (an “Acquirer”), other than MDP and its Affiliates, becomes the majority owner of the Company or its successor or otherwise gains the right to appoint a majority of the Company’s or its successor’s board of directors or similar governing body, and (y) in connection therewith, MDP and/or its Affiliates sell, exchange, dispose of, monetize or otherwise extract economic value from the Company or its successor representing more than 25% of MDP’s ownership interest in the Company or its successor (any such transaction by MDP and/or it Affiliates is referred to herein as an “MDP Liquidity Event”) on a non-pro rata basis. Notwithstanding the foregoing, a “Sale of the Firm” shall not occur if an Acquirer consummates a transaction in which (i) the Acquirer’s asset management business with assets under management of at least $100 billion is combined with the Company’s asset management business, and that transaction would otherwise constitute a Sale of the Firm, and (ii) an MDP Liquidity Event does not occur in connection with such transaction.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time and any successor statute, and any rules or regulations promulgated thereunder.

 

“Subsidiary” has the meaning given such term in the LLC Agreement.

 

“Transfer” has the meaning given such term in the LLC Agreement.

 

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“Underwriter’s Restriction Period” means the period during which an underwriter participating in a Public Offering requests that Stock held by an Executive should be subject to lock up, cutback provisions, transfer restrictions or other limitations that, in each case, are imposed in good faith based on then-prevailing market precedent and public investor expectations, it being understood that the Underwriter’s Restriction Period shall end if the applicable underwriter waives future compliance with the provisions, restrictions and limitations set forth above.

 

“Units” has the meaning given such term in the LLC Agreement and, for the avoidance of doubt, shall not include a Deferred Unit but shall include any Class A Units issued in settlement thereof.

 

“Windy Holdings” means Windy City Investments, Inc., a Delaware corporation and a direct, wholly-owned Subsidiary of Holdings.

 

6.             Notices. Any notice provided for in this Agreement must be in writing and must be personally delivered, sent by telecopy or email with original to follow by overnight courier service, by first class mail (postage prepaid and return receipt requested) or reputable overnight courier service (charges prepaid) to the recipient at the addresses indicated below:

 

Notices to the Company:

 

Nuveen Investments, Inc.

333 West Wacker Drive

33rd Floor

Chicago, IL 60606

Facsimile: (312) 917-7952

Telephone: (312) 917-7955

Attention: General Counsel

 

with copies to (which shall not constitute notice):

 

Madison Dearborn Capital Partners

Three First National Plaza

38th Floor

Chicago, Illinois 60602

Facsimile: (312) 895-1056

Telephone: (312) 895-1000

Attention: General Counsel

 

and

 

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Kirkland & Ellis LLP

300 North LaSalle

Chicago, IL 60654

Facsimile: (312) 862-2200

Telephone: (312) 862-2000

Electronic mail: richard.porter@kirkland.com

Attention: Richard W. Porter, P.C.

Scott D. Price

 

Notices to Executive:

 

At the Executive’s address provided on the signature page hereto.

 

with copies to (which shall not constitute notice):

 

McDermott Will & Emery LLP

227 West Monroe Street, Suite 4400

Chicago, IL 60606

Facsimile: (312) 984-7700

Telephone: (312) 984-2121

Electronic mail: mharris@mwe.com

Attention: Mark A. Harris

 

or to such other address or to the attention of such other Person as the recipient party has specified by prior written notice to the sending party. Any notice under this Agreement shall be deemed to have been given when so delivered or, if sent by telecopy the day of receipt, or if mailed, three days after deposit in the U.S. mail (return receipt requested) and one day after deposit with a reputable overnight courier service.

 

7.             Restrictive Legend. Each certificate evidencing Units or Stock shall be stamped or otherwise imprinted with the legend set forth below, as well as any other legends that may be required under the LLC Agreement or a Unitholder’s unit purchase agreement with the Company. Upon the request of the holder thereof, the legend set forth below shall be removed from the certificates evidencing any Units which cease to be Units in accordance with the definition thereof.

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN REPURCHASE PROVISIONS, AND CERTAIN OTHER AGREEMENTS SET FORTH IN THE SECOND AMENDED AND RESTATED UNITHOLDERS AGREEMENT BETWEEN THE COMPANY AND EXECUTIVE DATED AS OF OCTOBER 11, 2010, A COPY OF WHICH MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.”

 

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8.                                      Transfer of Units. Prior to the Transfer of any Units or Stock (other than pursuant to a Sale of the Company or after an IPO as permitted by Section 2(b)) to any Person, the Transferring holder of Units or Stock subject to this Agreement shall cause the prospective Transferee to be bound by this Agreement and to execute and deliver to the Company a counterpart of or joinder to the LLC Agreement and the Unitholders Agreement (or other similar agreement) as a condition to the effectiveness of such Transfer. Upon the execution and delivery of such counterpart or joinder by such Person, subject to the requirements of the LLC Agreement, such Person’s acquired Units shall be Units under this Agreement and such Person shall be a Unitholder hereunder with respect to such Units.

 

9.                                      Irrevocability: Binding Effect on Successors and Assigns. Executive hereby acknowledges and agrees that, except as provided under applicable federal state, or foreign securities laws, that Executive is not entitled to cancel, terminate or revoke this Agreement, the LLC Agreement, or any agreements of Executive hereunder, and that this Agreement, the LLC Agreement and such other agreements shall survive the death or disability of Executive and shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors, legal representatives and assigns. If Executive is more than one person, the obligations of Executive hereunder shall be joint and several and the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and his, her or its heirs, executors, administrators, successors, legal representatives, and assigns (including subsequent holders of Units). The agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon the Company and its successors and assigns (including the surviving corporation to any merger or other reorganization of the Company).

 

10.                               Survival of Covenants, Representations and Warranties. All covenants, representations and warranties contained herein or made in writing by any party in connection herewith shall survive the execution and delivery of this Agreement, the LLC Agreement, those documents expressly referred to herein and the consummation of the transactions contemplated hereby and thereby.

 

11.                               Transfers in Violation of Agreement. Any Transfer or attempted Transfer of any Units or Stock in violation of any provision of this Agreement, the LLC Agreement or other applicable agreement shall be void, and such Transfer shall not be recorded on the applicable books and any purported transferee of such Units or Stock shall not be treated as the owner of such Units or Stock for any purpose.

 

12.                               Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

13.                               Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by the Company and its successors and

 

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assigns and the Executives holding a majority of the vested Units. In the event the Company is liquidated, then the rights and benefits of the Company under this agreement shall adhere to and be enforceable by Windy City Investments, Inc., which shall become the Company for all purposes of this Agreement without further action by any Unitholder.

 

14.                               Complete Agreement. This Agreement, the LLC Agreement, the Registration Agreement, any agreement between the Executive and the Company or any of its Subsidiaries or Affiliates evidencing the grants of Units or Deferred Units and those documents expressly referred to herein embody the complete agreement and understanding among the parties with respect to the subject matter hereof and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

 

15.                               Counterparts. This Agreement may be executed in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Agreement.

 

16.                               Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

 

17.                               No Strict Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their collective mutual intent, and no rule of strict construction shall be applied against any person. The term “including” as used herein shall be by way of example, and shall not be deemed to constitute a limitation of any term or provision contained herein. Each defined term used in this Agreement has a comparable meaning when used in its plural or singular form.

 

18.                               Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits hereto shall be governed by the internal law, and not the law of conflicts, of the State of Delaware.

 

19.                               WAIVER OF JURY TRIAL. AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

 

20.                               Remedies. Each of the parties to this Agreement shall be entitled to enforce its rights under this Agreement specifically, to recover damages and costs (including reasonable attorney’s fees) caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The parties hereto agree and acknowledge that money damages would not be an adequate remedy for any breach of the provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement.

 

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21.                               Amendment and Waiver. Except as otherwise provided herein, any provision of this Agreement may be amended or waived only with the prior written consent of Executive and the Board (on behalf of the Company and the Investor Members); provided that any provision of this Agreement may be amended with the approval of the Executives holding a majority of the affected class of such Units to the extent that the such amendment does not disproportionately and adversely change the rights of an Executive (or group of Executives) as compared to other Executives (or group of Executives). For the avoidance of doubt, amendments to the LLC Agreement and the Registration Agreement shall be accomplished according to the terms of the LLC Agreement or the Registration Agreement, respectively.

 

22.                               Community Property. If, as of the date hereof, Executive is lawfully married and Executive’s address or the permanent residence of Executive’s spouse is located in a community property jurisdiction, Executive’s spouse shall execute and deliver to the Company on the Effective Date the Consent in the form of Exhibit A attached hereto.

 

23.                               Business Days. If any time period for giving notice or taking action hereunder expires on a day which is a Saturday, Sunday or legal holiday in the state in which the Company’s chief executive office is located, the time period shall be automatically extended to the business day immediately following such Saturday, Sunday or holiday.

 

24.                               Third-Party Beneficiary. The Company and Executive acknowledge that each of the Investor Members is a third-party beneficiary under this Agreement and that the Investor Members can enforce the provisions of this Agreement intended for the Investor Members’ benefit.

 

25.                               Consent to Jurisdiction. Each party to this Agreement, by its execution hereof, (a) hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Illinois for the purpose of any action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this Agreement or relating to the subject matter hereof, (b) hereby waives to the extent not prohibited by applicable law, and agrees not to assert, and agrees not to allow any of its Permitted Transferees to assert, by way of motion, as a defense or otherwise, in any such action, any claim that they are not subject personally to the jurisdiction of the above named courts, that their property is exempt or immune from attachment or execution, that any such proceeding brought in one of the above named courts is improper, or that this Agreement or the subject matter hereof or thereof may not be enforced in or by such court and (c) hereby agrees not to commence or maintain any action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this Agreement or relating to the subject matter hereof or thereof other than before one of the above named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation to any court other than one of the above named courts whether on the grounds of inconvenient forum or otherwise. Notwithstanding the foregoing, any party to this Agreement may commence and maintain an action to enforce a judgment of any of the above named courts in any court of competent jurisdiction.

 

*  *  *  *

 

13

 

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

 

	
 
    	
WINDY CITY INVESTMENTS HOLDINGS, L.L.C.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Its:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[Executives] [Print Name]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[Signature]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[Address]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[State of Residence]
    

 

Signature Page to Second Amended And Restated Unitholders Agreement

 

 

EXHIBIT A

 

SPOUSAL CONSENT

 

The undersigned spouse of Executive hereby acknowledges that I have read the foregoing Unitholders Agreement executed by Executive as of the date hereof and that I understand its contents. I am aware that the foregoing Unitholders Agreement provides for the sale or repurchase of my spouse’s Units under certain circumstances and/or imposes other restrictions on such securities (including, without limitation, restrictions on transfer). I agree that my spouse’s interest in these securities is subject to these restrictions and any interest that I may have in such securities shall be irrevocably bound by these agreements and further, that my community property interest, if any, shall be similarly bound by this Agreement.

 

	
 
    	
 
    	
Date:            ,   2010
    
	
 
    	
 
    	
 
    
	
 
    	
Spouse’s Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:            ,   2010
    
	
 
    	
 
    	
 
    
	
 
    	
Witness’ Name:
    	
 
    
				

 

Spousal Consent to Second Amended and Restated Unitholders AgreementExhibit 10.13

 

Execution Copy

 

Employment Agreement

 

AGREEMENT by and among The John Nuveen Company, a Delaware corporation (the “Company”), and John P. Amboian (the “Executive”) dated as of the 1st day of November, 2002 (as conformed through the Second Amendment, effective May 1, 2013).

 

The Company has determined that because of the unique nature of the Executive’s services to the Company it is in its best interests and those of its shareholders to assure that the Company will have the continued dedication of the Executive, and to provide the Company with the continuity of management the Company considers crucial to ensuring the Company’s continued success. Therefore, in order to accomplish these objectives, the Company desires to enter into this Agreement.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.                                      Effective Date. The “Effective Date” shall mean the date hereof.

 

2.                                      Employment Period. The Company hereby agrees to employ the Executive, and the Executive hereby agrees to be employed by the Company, subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on December 31, 2012 (“Initial Term”); provided, on January 1, 2013 and each January 1 thereafter, the employment period shall be extended for additional one-year periods until the Executive dies or becomes Disabled or the Company or the Executive delivers a Notice of Non-Renewal at least 60 days before such January 1 (the Initial Term, as so extended, is the “Employment Period”). The Employment Period shall automatically terminate upon any termination of Executive’s employment.

 

3.                                      Terms of Employment.

 

(a)                                 Position and Duties.

 

(i)                                     During the Employment Period (A) the Executive shall serve in the position set forth on Exhibit A with such authority, duties and responsibilities as are commensurate with such position and as may be consistent with such position, reporting to the person or persons set forth on Exhibit A, and (B) the Executive’s services shall be performed at the location or locations set forth on Exhibit A.

 

(ii)                                  During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote substantially all of his attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities. During the Employment Period, it shall not be a violation of this Agreement for the Executive to (A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement.

 

(b)                                 Compensation.

 

(i)                                     Base Salary. During the Employment Period, the Executive shall receive an annual base salary (“Annual Base Salary”) not less than the amount set forth on Exhibit A. Any increase in Annual Base Salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement. Annual Base Salary shall not be reduced after any increase and the term Annual Base Salary as utilized in this Agreement shall refer to Annual Base Salary as so increased.

 

(ii)                                  Annual Incentives. For each fiscal year completed during the Employment Period, the Executive shall be entitled to participate in the Company’s annual cash incentive plan then in effect (the “Annual Bonus”). The Executive’s minimum and target 2007 Annual Bonuses are $5,500,000 and $6,000,000, respectively, and his Annual Bonus for each subsequent fiscal year during the Employment Period will be the sum of (x) the prior fiscal year’s Annual Bonus (which for 2007 shall be deemed to be $6,000,000 regardless of the Annual Bonus actually paid to Executive), plus or minus (y) an amount (which could be positive or negative) equal to (I) the prior fiscal year’s Annual Bonus multiplied by (II) the positive or negative change in the Company’s EBITDA, as presented by the Company’s principal financial officer to the Company’s Board of Directors as the Company’s “economic EBITDA” for the relevant bonus year and the prior fiscal year in a manner consistent with the presentation to the Board in 2011 of “economic EBITDA” for 2010 and 2009, as compared to the Company’s EBITDA for its prior fiscal year (with the Board or an appropriate committee thereof determining such change and making such reasonable adjustments to the EBITDA amounts as shall be necessary and appropriate to reflect material acquisitions or divestitures by the Company during the relevant fiscal years for purposes of such determination).

 

In addition, to adjust for the acquisition of the First American Funds long-term asset business as of December 31, 2010, $40 million will be subtracted from EBITDA of the Company for each year beginning with 2011. Further to adjust for the acquisition of Gresham on December 31, 2011, in determining the Executive’s Annual Bonus for 2012, EBITDA for the Company for 2011 will be adjusted as if the acquisition of Gresham had occurred on December 31, 2010 and using Gresham’s actual results for 2011. In addition, in any future years in which an additional equity interest in Gresham is acquired by the Company, a similar adjustment will be made.

 

(iii)                               Other Benefits. During the Employment Period, the Executive shall be entitled to participate in all employee pension, welfare, perquisites, fringe benefit, and other benefit plans, practices, policies and programs generally applicable to the most senior executives of the Company on a basis and on terms no less favorable than that provided to the Executive immediately prior to the Effective Date.

 

(iv)                              Expenses. During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all expenses incurred by the Executive in accordance with the Company’s policies for its senior executives.

 

(v)                                 Vacation. During the Employment Period, the Executive shall be entitled to paid vacation in accordance with the plans, policies, programs and practices of the Company as in effect with respect to the senior executives of the Company.

 

 

4.                                      Termination of Employment.

 

(a)                                 Death or Disability. The Executive’s employment shall terminate automatically upon the Executive’s death during the Employment Period. If the Company determines in good faith that the Disability of the Executive has occurred during the Employment Period (pursuant to the definition of Disability set forth below), it may give to the Executive written notice in accordance with Section 11(a) of this Agreement of its intention to terminate the Executive’s employment. In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive (the “Disability Effective Date”), provided that, within the 30 days after such receipt, the Executive shall not have returned to full-time performance of the Executive’s duties. For purposes of this Agreement, “Disability” shall mean “total disability” as defined in the Company’s long-term disability insurance plan (or such other Company-provided long-term disability benefit plan sponsored by the Company in which Executive participates at the time the determination of Disability is made).

 

(b)                                 Cause. The Company may terminate the Executive’s employment during the Employment Period for Cause. For purposes of this Agreement, “Cause” shall mean:

 

(i)                                     the willful and continued failure of the Executive to perform substantially the Executive’s duties with the Company or one of its subsidiaries (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Executive by the Board of Directors of the Company (the “Board”) or its representative, which specifically identifies the manner in which the Board believes that the Executive has not substantially performed the Executive’s duties, or

 

(ii)                                  the willful engaging by the Executive in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company or its affiliates, or

 

(iii)                               conviction of a felony or guilty or nolo contendere plea by the Executive with respect thereto; or

 

(iv)                              a material breach of Section 9 of this Agreement.

 

For purposes of this provision, no act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s act or omission was in the best interests of the Company . Any act, or failure to act, based upon express authority given pursuant to a resolution duly adopted by the Board with respect to such act or omission or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than two-thirds of the entire membership of the Board (not including the Executive) after reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel, to be heard before the Board, finding that, in the good faith opinion of the Board, the Executive has engaged in the conduct described in subparagraph (i), (ii), (iii) or (iv) above, and specifying the particulars thereof in detail.

 

(c)                                  Good Reason. The Executive’s employment may be terminated by the Executive for Good Reason. For purposes of this Agreement, “Good Reason” shall mean in the absence of a written consent of the Executive:

 

(i)                                     any action by the Company which results in a material diminution in the Executive’s position, authority, duties or responsibilities as contemplated by Section 3(a) of this Agreement, including for this purpose without limitation actions that relate to the Executive’s status, offices, titles and reporting relationships and excluding for this purpose any action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive;

 

(ii)                                  any failure by the Company to comply with any of the provisions of Section 3(b) of this Agreement, other than a failure not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive;

 

(iii)                               the Company requiring the Executive to be based at any office or location other than that provided in Section 3(a)(i)(B) hereof, provided that reasonable travel required in connection with Executive’s reporting relationships and responsibilities to the Board shall not be deemed a breach hereof;

 

(iv)                              any purported termination by the Company of the Executive’s employment otherwise than as expressly permitted by this Agreement or the Company giving Executive a notice of the termination of the Employment Period effective at the end of or after the Initial Term, pursuant to Section 2;

 

(v)                                 any failure by the Company to comply with and satisfy Section 10(b) of this Agreement,

 

(vi)                              the failure of the Board to nominate the Executive for election to the Board or to appoint the Executive to the applicable Committee of the Board, or the Board effects the Executive’s removal as a member of the Board or a member of the applicable Committee or in the event the Executive is not elected to the Board at any annual or special meeting of the stockholders and the Board does not immediately thereafter elect the Executive to the Board (to the extent legally permitted to do so), or

 

(vii)                           any reduction in Executive’s rate of annual base salary or Annual Bonus opportunity as compared to the prior fiscal year; provided, however, that (a) a reduction in Annual Bonus opportunity shall not trigger the application of this clause if (1) it similarly applies to all senior executives of the Company and reflects the Board’s assessment of current or projected reductions in the nature, scope or profitability of the Company as compared to the prior fiscal year, or (2) such reduction is part of an overall modification to the Company’s compensation programs that does not reduce the Executive’s aggregate annual compensation opportunity by more than 15% as compared to the prior fiscal year and (b) the phrase “Annual Bonus opportunity” shall mean the basis on which Executive’s bonus is determined with respect to a fiscal year and shall not be considered to have been reduced merely because (x) the actual Annual Bonus paid to Executive with respect to any given fiscal year is lower than the Annual Bonus paid for the prior fiscal year or (y) the Executive’s Annual Bonus calculation is based upon an actual Annual Bonus paid for the prior fiscal year that was lower than the actual Annual Bonus paid for the preceding fiscal year.

 

 

For purposes of Section 4(c)(vii), an isolated, insubstantial and inadvertent action taken in good faith and which is remedied by the Company within thirty (30) days after receipt of written notice thereof given by Executive to the Company’s Senior Vice President, Human Resources shall not constitute Good Reason. Executive’s right to terminate employment for Good Reason shall not be affected by Executive’s incapacities due to mental or physical illness, and Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any event or condition constituting Good Reason.

 

(d)                                 Notice of Termination. Any termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 11(b) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty days after the giving of such notice). The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder. In the event of any termination of employment the Executive shall resign from all positions with the Company and its affiliates.

 

(e)                                  Date of Termination. “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein within 30 days of such notice, as the case may be, (ii) if the Executive’s employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies the Executive of such termination and (iii) if the Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Executive or the Disability Effective Date, as the case may be.

 

5.                                      Obligations of the Company upon Termination.

 

(a)                                 Good Reason; Other Than for Cause. If, during the Employment Period, the Company shall terminate the Executive’s employment other than for Cause, death or Disability or the Executive shall terminate employment for Good Reason:

 

(i)                                     except as specified below, the Company shall pay to the Executive in a lump sum in cash within 30 days after the Date of Termination the aggregate of the following amounts:

 

A.                                    the sum of (1) the Executive’s Annual Base Salary through the Date of Termination to the extent not theretofore paid, and (2) the product of (x) the average Annual Bonus paid to the Executive in respect of the three completed fiscal years prior to the Date of Termination (the “Recent Average Bonus”), and (y) a fraction, the numerator of which is the number of days in the fiscal year in which the Date of Termination occurs through the Date of Termination, and the denominator of which is 365, in each case to the extent not theretofore paid (the sum of the amounts described in clauses (1) and (2), shall be hereinafter referred to as the “Accrued Obligations”); and

 

B.                                    $7,000,000; and

 

(ii)                                  any unvested Deferred Units, Class B Units, stock options restricted stock and restricted share units or other equity interests in the Company or is subsidiaries held by Executive or a permitted transferee (whether granted under this Agreement or otherwise) shall vest in accordance with the terms of the Agreement or plan pursuant to which such interests were issued or granted; and

 

(iii)                               for one year after the Executive’s Date of Termination, the Company shall continue welfare benefits to the Executive and/or the Executive’s family at least equal to those which would have been provided to them in accordance with the plans, programs, practices and policies described in Section 3(b)(iii) of this Agreement if the Executive’s employment had not been terminated in accordance with the most favorable plans, practices, programs or policies of the Company and its subsidiaries applicable generally to other peer executives and their families, provided, however, that if the Executive becomes reemployed with another employer and is eligible to receive medical or other welfare benefits under another employer provided plan, the medical and other welfare benefits described herein shall be secondary to those provided under such other plan during such applicable period of eligibility. For purposes of determining eligibility (but not the time of commencement of benefits) of the Executive for retiree benefits pursuant to such plans, practices, programs and policies, the Executive shall be considered to have remained employed (for purposes of both age and service) until one year after the Date of Termination and to have retired on the last day of such period; and

 

(iv)                              the Executive shall be deemed to have an additional one year of age and service for purposes of the Company’s defined benefit pension plans, which benefit shall be paid through a nonqualified pension plan of the Company; and

 

(v)                                 to the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or which the Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and its affiliates (such amounts and benefits, the “Other Benefits”) in accordance with the terms and normal procedures of each such plan, program, policy or practice.

 

(b)                                 Cause; Other than for Good Reason. If the Executive’s employment shall be terminated for Cause or the Executive terminates his employment without Good Reason during the Employment Period, this Agreement shall terminate without further obligations to the Executive other than the obligation to pay or provide to the Executive an amount equal to the amount set forth in clause (1) of Section 5(a)(i)(A) above, and the timely payment or provision of the Other Benefits, in each case to the extent theretofore unpaid. In the event the Executive gives the Company notice of termination of the Employment Period effective at the end of or after the Initial Term, pursuant to Section 2, the Company shall pay Executive the Accrued Obligations provided for in Section 5(a)(i)(A)(1), and shall provide the Executive (and his spouse, as applicable) Other Benefits.

 

(c)                                  Death. If the Executive’s employment is terminated by reason of the Executive’s death during the Employment Period, this Agreement shall terminate without further obligations to the Executive’s legal representatives under this Agreement, other than for payment of Accrued Obligations and the timely payment or provision of the Other Benefits. Additionally,

 

 

any stock options, restricted stock and restricted stock units (collectively, “Stock Awards”) held by the Executive shall immediately vest. Accrued Obligations shall be paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days of the Date of Termination.

 

(d)                                 Disability. If the Executive’s employment is terminated by reason of the Executive’s Disability during the Employment Period, this Agreement shall terminate without further obligations to the Executive, other than for payment of Accrued Obligations and the timely payment or provision of Other Benefits. Accrued Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Date of Termination. Additionally, all Stock Awards shall immediately vest. With respect to the provision of Other Benefits upon the Executive’s Disability, the term Other Benefits as utilized in this Section 5(d) shall include, and the Executive shall be entitled after the Disability Effective Date to receive, disability and other benefits as in effect at any time thereafter generally with respect to senior executives of the Company.

 

6.                                      Non-exclusivity of Rights. Except as specifically provided, nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company, or any of its affiliates and for which the Executive may qualify, nor, subject to Section 11(f), shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company, or its affiliates. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company or its affiliates at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement. As used in this Agreement, the terms “affiliated companies” and “affiliates” shall include any company controlled by, controlling or under common control with the Company.

 

7.                                      Full Settlement. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Executive obtains other employment. The Company agrees to pay, to the full extent permitted by law, all legal fees and expenses which the Executive may reasonably incur as a result of any contest by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), if the Executive prevails on any material claim made by Executive, and disputed by the Company under the terms of this Agreement.

 

8.                                      Confidential Information/Nonsolicitation.

 

(a)                                 The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any of its subsidiaries, and their respective businesses, which shall have been obtained by the Executive during the Executive’s employment by the Company or any of its subsidiaries and which shall not be or become public knowledge (other than by acts by the Executive or representatives of the Executive in violation of this Agreement). After termination of the Executive’s employment with the Company, the Executive shall not, without the prior written consent of the company or as may otherwise be required by law or legal process (provided the company has been given notice of and opportunity to challenge or limit the scope of disclosure purportedly so required), communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it, except as reasonably necessary in connection with enforcement of the Executive’s right under this Agreement or his defense of any civil or criminal investigation or proceeding.

 

(b)                                 While employed by the Company or any of its subsidiaries and for twelve months after the Executive’s termination of employment, the Executive will not, directly or indirectly, solicit for employment by other than the Company or its subsidiaries or hire any person employed by the Company or its subsidiaries at any time during the six months prior to the Executive’s Date of Termination.

 

(c)                                  The provisions of this Section 9 shall remain in full force and effect until the expiration of the period specified herein notwithstanding the earlier termination of the Executive’s employment hereunder.

 

9.                                      Successors.

 

(a)                                 This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives. This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

(b)                                 The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of its business and/or assets to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

10.                               Miscellaneous.

 

(a)                                 This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws. The parties hereto irrevocably agree to submit to the jurisdiction and venue of the courts of the State of Delaware, in any action or proceeding brought with respect to or in connection with this Agreement. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

 

(b)                                 All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

 

If to the Executive:

 

At the most recent address on file for the Executive at the Company.

 

If to the Company:

 

The John Nuveen Company

333 West Wacker Drive

Chicago, Illinois 60606

Attention: Chief Executive Officer

 

With a copy to the Company’s General Counsel at the same address

 

or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee.

 

(c)                                  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

(d)                                 The Company may withhold from any amounts payable under this Agreement such Federal, state, or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

 

(e)                                  The Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 4 of this Agreement, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

 

(f)                                   From and after the Effective Date this Agreement shall supersede any other employment, severance or change of control agreement between the parties with respect to the subject matter hereof.

 

IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the authorization from its Board of Directors, the Company has caused these presents to be executed in its name and on its behalf, all as of the day and year first above written.

 

	
 
    	
/s/ John P. Amboian
    
	
 
    	
Executive
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE JOHN NUVEEN COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ [Authorized Officer]
    
	
 
    	
Title:
    	
 
    

 

 

Exhibit A

 

Executive:                                      John P. Amboian

 

Positions:                                            Chief Executive Officer of the Company; member of Board of Directors of the Company, Windy City Investments Holdings, LLC and Windy City Investments, Inc. and their respective Executive Committees (if created); member of the Office of the Chairman and the Executive Committee of the Company

 

Reporting relationship:                     To the Board of Directors of the Company

 

Location:                                           333 West Wacker Drive, Chicago, Illinois

 

Annual base salary:                                    $650,000 (effective January 1, 2008)

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