Document:

Exhibit 10.4

 

NUVEEN INVESTMENTS

 

2013 MUTUAL FUND INCENTIVE PLAN

 

Nuveen Investments, Inc. (the “Company”) hereby establishes the Nuveen Investments 2013 Mutual Fund Incentive Plan for the benefit of eligible Participants (as hereinafter defined) for the purposes hereinafter set forth.

 

ARTICLE I
 DEFINITIONS

 

Whenever used in the Plan, the following terms have the meanings set forth below, and when the meaning is intended, the initial letter of the word is capitalized:

 

“Affiliate” shall mean any corporation that is a parent or subsidiary corporation (as Code Sections 424(e) and (f) define those terms) with respect to the Company, and any Nuveen Subsidiary.

 

“Account” shall mean an account established for each Participant under the Plan in accordance with Section 4.1, adjusted for earnings and losses.

 

“Award” shall mean an amount allocated to the Account of a Participant by the Company, which amount is determined by the Company in its sole discretion.  Each Award shall be evidenced by and set forth on an Award Notice distributed to the Participant.

 

“Award Notice” shall mean the notice distributed by the Company to each Participant, which notice sets forth a Participant’s Award and the terms of a Participant’s participation in the Plan.

 

“Beneficiary” shall mean (i) in the event of the Disability or incompetence of a Participant, the person or persons who shall have acquired on behalf of such Participant by legal proceeding or otherwise the right to receive the benefits specified under this Plan, or (ii) in the event of a Participant’s death, the person, persons, trust or trusts that the Participant has designated in his or her most recent written beneficiary designation filed with the Company in accordance with Section 10.2, to receive the benefits specified under this Plan, or, if there is no designated Beneficiary or surviving designated Beneficiary, then the person, persons, trust or trusts entitled by will or the laws of descent and distribution to receive such benefits.

 

“Board” shall mean the board of directors of the Company.

 

“Cause” shall have the meaning set forth in any employment, consulting, or other written agreement between an Employer and the Participant.  If there is no employment, consulting, or other written agreement between an Employer and the Participant, or if such agreement does not define “Cause,” then “Cause” shall mean (i) the willful and continued failure of the Participant to perform substantially the Participant’s duties with the Company or an Affiliate (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 Participant by the Board or its representatives, which specifically identifies the manner in which the Board believes that the Participant has not substantially performed the Participant’s duties; (ii) the willful engaging by the Participant 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 the Participant with respect

 

 

thereto; (iv) to the extent applicable, a material breach by the Participant of the restrictive covenants included in the Participant’s employment agreement; or (iv) a willful or reckless violation of a material regulatory requirement, or of any material written policy or procedure of the Participant’s Employer, that is materially and demonstrably injurious to the Company or an Affiliate.  For purposes of this provision, no act or failure to act on the part of the Participant shall be considered “willful” unless it is done, or omitted to be done, by the Participant in bad faith or without reasonable belief that the Participant’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 Participant in good faith and in the best interests of the Company.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

“Company” shall mean Nuveen Investments, Inc., and its successors.

 

“Disability” shall have the meaning set forth in any employment, consulting, or other written agreement between an Employer and the Participant.  If there is no employment, consulting, or other written agreement between an Employer and the Participant, or if such agreement does not define “Disability,” then “Disability” shall mean the Participant’s inability, due to illness, accident, injury, physical or mental incapacity or other disability, to carry out effectively the Participant’s duties and obligations to the Company or any of its Affiliates or, if applicable based on the Participant’s position, to participate effectively and actively in the management of the Company or any of its Affiliates for a period of at least ninety (90) consecutive days or for shorter periods aggregating at least one hundred and twenty (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 the Participant or the Participant’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.

 

“Effective Date” shall mean March 15, 2013.

 

“Employer” shall mean the Company with respect to its employees and each Affiliate or Nuveen Subsidiary with respect to its employees.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Investment Company Act” shall mean the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder by the Securities and Exchange Commission.

 

“Investment Fund” shall mean a registered investment company, as defined in the Investment Company Act, which is sponsored by the Company or a Nuveen Subsidiary and is designated by the Company as an investment option under Section 4.2 of the Plan.

 

“Nuveen Subsidiary” shall mean any corporation, limited liability company, or other entity, of which fifty percent (50%) or more of the normal voting power for the election of directors or other managers is owned, directly or indirectly, by the Company.

 

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“Participant” shall mean each employee who is selected by the Company for participation in the Plan.

 

“Plan” shall mean this Nuveen Investments 2013 Mutual Fund Incentive Plan.

 

“Service” means the provision of services to the Company or its Affiliates in the capacity of an employee.

 

“Termination of Service” shall mean a cessation of the employee-employer relationship between a Participant and an Employer (other than by reason of transfer of the employee to another Employer), or the consummation of a transaction whereby a Participant’s Employer (other than the Company) ceases to be an Affiliate.

 

“Vesting Date” shall mean the date or dates specified in Section 5.1.

 

ARTICLE II
 ESTABLISHMENT, PURPOSE AND DURATION OF THE PLAN

 

2.1                               Purpose.  The purposes of the Plan are to enable the Company and certain Affiliates (including a Nuveen Subsidiary) to attract and retain exceptionally qualified employees upon whom the sustained growth and profitability of the Company and certain Affiliates (including a Nuveen Subsidiary) will depend in large measure, and to provide added incentive for such individuals to enhance the value of the Company and its Affiliates.

 

2.2                               Effective Date and Duration of the Plan.  The Plan shall commence on the Effective Date, as described in Article I, and shall terminate as soon as administratively practicable following the final Vesting Date.  Notwithstanding the foregoing, the Company may terminate the Plan at any time in accordance with Article VIII.

 

ARTICLE III
 ADMINISTRATION

 

3.1                               In General.  The Company shall administer the Plan.  The Company may: (i) delegate any of its authority with respect to the Plan to any one or more of its officers or employees; and (ii) authorize any one or more of the Company’s officers or employees to execute and deliver documents on behalf of the Company.  No officer or employee of the Company or any other delegatee shall be liable for any action, failure to act, determination or interpretation made in good faith with respect to the Plan or any transaction hereunder.

 

3.2                               Authority of the Company.  Subject to the express provisions of the Plan, the Company alone (and not any delegatee of the Company) shall have the authority to designate individuals for participation in the Plan and determine and modify the terms and conditions of each Participant’s participation (which need not be identical), provided, however, that no such determination or modification shall be to the detriment of a Participant with respect to any existing Account without the affected Participant’s written consent.  Subject only to compliance with the express provisions of the Plan, the Company may act in its sole and absolute discretion in performing the duties specifically set forth in the preceding sentence and other duties under the Plan.

 

The duties of the Company or its delegatee shall also include, but shall not be limited to, making distributions of Accounts, creating trusts, and determining whether to accelerate the vesting

 

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of, or the lapsing of restrictions or risk of forfeiture with respect to Accounts.  Subject only to compliance with the express provisions of the Plan, the Company or its delegatee may act in its sole and absolute discretion in performing the duties specifically set forth in the preceding sentence and other duties under the Plan.

 

3.3                               Company’s Decisions Binding.  Subject to Section 3.1 above and the express provisions of the Plan, the Company or its delegatee shall have the authority to construe and interpret the Plan, any Award Notice, and any other documents evidencing Accounts, to define the terms used in the Plan, any Award Notice, and any other documents evidencing Accounts, to prescribe, amend and rescind rules and regulations relating to administration of the Plan and to make all other determinations necessary or advisable for the administration of the Plan.  The determinations of the Company or its delegatee on the foregoing matters shall be conclusive and binding on all parties.

 

ARTICLE IV
 PARTICIPATION

 

4.1                               Participation. On the Effective Date, each Participant’s Account shall be credited with an Award.  On or around the Effective Date, the Company shall distribute an Award Notice to each Participant setting forth the terms of a Participant’s Award and participation in the Plan.

 

4.2                               Investment Funds.  Each Participant’s Account shall be invested in the Investment Fund(s) designated by the Company.  In its sole discretion, the Company may permit a Participant to elect certain Investment Fund(s) for investment of his or her Account, from a selection of Investment Fund(s) designated by the Company, pursuant to a form provided by the Company to the Participant that is properly completed and returned to the Company.  Investment of a Participant’s Account shall be implemented as soon as administratively practicable following the establishment of the Participant’s Account and, to the extent applicable, the Company’s timely receipt of the Participant’s investment elections.

 

ARTICLE V
 VESTING

 

5.1                               Vesting.  A Participant’s Account shall vest on the Vesting Date or Vesting Dates set forth in the Participant’s Award Notice, according to the vesting schedule provided in the Participant’s Award Notice.

 

5.2                               Termination of Service.

 

(a)                                 If a Participant experiences a Termination of Service due to the Participant’s death or Disability, or by the Company without Cause, the unvested portion of a Participant’s Account shall immediately vest one hundred percent (100%).

 

(b)                                 If a Participant experiences a Termination of Service before any Vesting Date for any reason other than as described in subsection 5.2(a), the Participant shall immediately forfeit that portion of his or her Account that is unvested as of such date.

 

5.3                               Funded Accounts.  Participants’ Accounts shall be funded through an irrevocable nonexempt employees’ trust that is intended to be a taxable trust pursuant to Sections 641 et seq. of

 

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the Code (and not intended to be a “grantor trust” pursuant to Sections 671 through 679 of the Code) and, to the extent applicable, comply with Revenue Ruling 2007-48.

 

ARTICLE VI
 DISTRIBUTIONS

 

6.1                               Distributions.  As soon as administratively practicable, but in no event later than sixty (60) days, following the applicable Vesting Date, the Participant will receive a distribution of the portion of the Participant’s Account that vested on such date, payable in Investment Fund shares. Notwithstanding the foregoing, the Company may, in its sole discretion, elect to distribute all or any portion of a Participant’s Account in cash.

 

6.2                               Code Section 409A.  Notwithstanding anything in the Plan, any Award Notice, or any other document evidencing an Account to the contrary, all distributions and payments to Participants under the Plan shall be structured so as to be exempt from or otherwise comply with Section 409A of the Code and the interpretative guidance thereunder, including the exception for short-term deferrals.

 

ARTICLE VII
 RESTRICTIVE COVENANTS

 

Notwithstanding any other provision of this Plan to the contrary, if a Participant breaches any non-compete, non-solicitation, non-disclosure or other provisions of an employment, consulting, or other written agreement between an Employer and the Participant, whether during or after Termination of Service, in addition to any other penalties or restrictions that may apply under such agreement, state law, or otherwise, the Participant will forfeit any portion of his or her Account, whether vested or unvested, that has not yet been distributed.

 

ARTICLE VIII
 AMENDMENT AND TERMINATION OF PLAN AND ACCOUNTS

 

Notwithstanding anything herein to the contrary, the Company may, at any time and from time to time, terminate or suspend the Plan or amend or modify any of its provisions and the terms and provisions of any Participant’s Account that has not yet been distributed; and provided, further, that, without the consent of an affected Participant, no termination, suspension, amendment, or modification of the Plan or any outstanding Account may impair the rights of such Participant under this Plan or an Account.

 

ARTICLE IX
 RESTRICTIONS ON TRANSFERABILITY

 

Except as otherwise provided by the Company, no Account may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, or pursuant to a domestic relations order (as defined in Code Section 414(p)).  All rights with respect to an Account will be available during the Participant’s lifetime only to the Participant or his or her guardian or legal representative.  The Company may, in its discretion, require a Participant’s guardian or legal representative to supply it with the evidence the Company deems necessary to establish the authority of the guardian or legal representative to act on behalf of the Participant.

 

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ARTICLE X
 OTHER PROVISIONS

 

10.1                        Participation Subject to Applicable Laws.  The participation of Participants hereunder shall be subject to all applicable rules and regulations of governmental authorities.  If at any time the Company determines, in its discretion, that the listing, registration or qualification of the shares held in an Account upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the establishment of such Account or the purchase of shares thereunder, the Company’s obligation to deliver shares shall be conditioned upon such listing, registration, qualification, consent or approval, which shall have been effected or obtained free of any conditions not acceptable to the Company.

 

10.2                        Beneficiary Designation.  Each Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case the Participant should die before receiving any or all of his or her Plan benefits.  Each beneficiary designation will revoke all prior designations by the same Participant, must be in a form prescribed by the Company, and must be made during the Participant’s lifetime.  If the Participant’s designated beneficiary predeceases the Participant or no beneficiary has been designated, benefits remaining unpaid at the Participant’s death will be paid to the Participant’s estate.

 

10.3                        Rights of Participants and Beneficiaries.

 

(a)                                 Nothing contained in the Plan (or in any documents evidencing an Account) shall confer upon any Participant any right to continue in the Service or employ of his or her Employer or constitute any contract or agreement of employment or Service, or interfere in any way with the right of such Employer to reduce such Participant’s compensation from the rate in effect at the time of enrollment in the Plan or to terminate such Participant’s employment or Service with or without cause, but nothing contained herein or in any document evidencing an Account shall affect any other contractual rights of a Participant.  No employee shall have any claim to be allowed to participate under the Plan, and there is no obligation for uniformity of treatment of Participants.

 

(b)                                 All distributions of Accounts shall be made hereunder only to the Participant or his or her Beneficiary entitled thereto pursuant to the Plan.  Neither the Company nor any Affiliate shall be liable for the debts, contracts, or engagements of any Participant or his or her Beneficiary, and rights relating to Accounts under this Plan may not be taken in execution by attachment or garnishment, or by any other legal or equitable proceeding while in the hands of an Employer; nor shall any Participant or his or her Beneficiary have any right to assign, pledge or hypothecate any benefits or rights hereunder.

 

10.4                        Governing Law.  To the extent not preempted by federal law, this Plan, any Award Notice, and any other documents evidencing Accounts or rights relating to Accounts shall be construed, administered and governed in all respects under and by the laws of the State of Delaware, without giving effect to its conflict of laws principles.  If any provision of this Plan shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective.

 

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10.5                        Withholding.  The trustee of the trust described in Section 5.3 shall have the right to deduct any sums that federal, state, local or foreign tax laws may require to be withheld with respect to Accounts, distribution of Accounts, and the payment of dividends and interest with respect to Accounts.

 

Upon the vesting of a Participant’s Account, the trustee of the trust described in Section 5.3 will withhold the minimum portion of the Account necessary to satisfy its tax withholding obligation.  Subject to the rules and regulations of the Company, this authority shall permit (but shall not obligate) the Company or trustee to withhold and to make cash payments in respect thereof in satisfaction of a Participant’s tax obligations, including tax obligations in excess of mandatory withholding requirements (but not in excess of the maximum marginal tax rate).  The Company may also require, as a condition to issuing or delivering Investment Fund shares or to payment of dividends or interest with respect to Accounts, that the Participant pay to the Company or trustee any sums that may be required to satisfy any applicable withholding tax, and unless otherwise determined by the Company, the minimum withholding requirement may be settled with Investment Fund shares that give rise to the withholding requirement, in accordance with procedures established by the Company.  The Company shall not have an obligation to advise any Participant of the existence of any tax or the amount that the Company or trustee will be required to withhold.

 

10.6                        Participation by Foreign Nationals and Employees Outside the United States.  To the extent the Company deems it necessary, appropriate or desirable to comply with foreign law of practice and to further the purposes of this Plan, the Company may, without amending the Plan, establish rules applicable to Participants who are foreign nationals, are employed outside the United States, or both, including rules that differ from those set forth in this Plan.

 

10.7                        Notice.  Any notice or other communication required or permitted under the Plan must be in writing and shall be deemed received when (a) delivered personally, (b) sent by electronic mail, (c) if mailed, three (3) days after the date of deposit in the United States mail, or (d) if sent by overnight courier, on the regular business day following the date sent.  Notice to the Company, if mailed or delivered personally, should be sent to Nuveen Investments, Inc., 333 West Wacker Drive, Chicago, IL 60606, Attention: Robert Luse.  Notice to the Participant should be sent to the mailing address or electronic mail address set forth on the Company’s records.  Either party may change the address to whom the other party must give notice under this Section by giving the other party written notice of such change, in accordance with the procedures described above.

 

10.8                        Indemnification.  Any individual or individuals to whom the Company has delegated authority under Article III of the Plan will be indemnified and held harmless by the Company from and against any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or as a result of any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken, or failure to act, under the Plan.  Each such person will also be indemnified and held harmless by the Company from and against any and all amounts paid by him or her in a settlement approved by the Company, or paid by him or her in satisfaction of any judgment, of or in a claim, action, suit or proceeding against him or her and described in the previous sentence, so long as he or she gives the Company an opportunity, at its own expense, to handle and defend the claim, action, suit or proceeding before he or she undertakes to handle and defend it.  The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which a person who is or has been a member of the Company may be entitled under the Company’s Charter or By-Laws, as a matter of law, or

 

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otherwise, or any power that the Company may have to indemnify him or her or hold him or her harmless.

 

10.9                        Legal Construction.

 

(a)                                 Except where otherwise indicated by the context, any plural term used in this Plan includes the singular and a singular term includes the plural.

 

(b)                                 Headings of articles and sections herein are included solely for convenience of reference and are not to be used in the interpretation of the provisions of the Plan.

 

(c)                                  The establishment of Accounts and the purchase and/or distribution of Investment Fund shares under the Plan will be subject to all applicable laws, rules, and regulations, and to any approvals by governmental agencies or national securities exchanges as may be required.

 

8Exhibit 10.5

 

NUVEEN INVESTMENTS, INC.

 

FORM OF DEFERRED UNIT ISSUANCE AGREEMENT

 

This Deferred Unit Issuance Agreement (this “Agreement”) is made as of           , 20     (the “Grant Date”), between Nuveen Investments, Inc., a Delaware corporation (the “Company”), and the undersigned below (“Employee”).  Except as otherwise defined herein or in the LLC Agreement (as defined below), capitalized terms used herein are defined in Section 10 hereof.

 

WHEREAS, the Company desires to grant the Employee the right to receive the number of deferred Class A Units indicated on the signature page to this Agreement as an incentive to remain with the Company (the “Deferred Units”);

 

NOW THEREFORE, in consideration of the premises and the mutual promises herein made, the Company and the Employee hereby agree as follows:

 

1.                                      Grant of Deferred Units.  Subject to the terms of this Agreement, the Company hereby grants, effective as of the date hereof, to the Employee the number of Deferred Units indicated on the signature page to this Agreement, each of which represents the right to receive, subject to the terms of this Agreement, one Class A Unit with a Liquidation Value and all other terms and conditions equivalent to all then outstanding Class A Units.

 

2.                                      Accounts

 

(a)                                 Employee Accounts.  The Company will establish a separate notional account (the “Deferred Unit Account”) for the Employee and will record in such account the aggregate number of Deferred Units granted to the Employee under this Agreement, the vesting of any Deferred Units, and any distributions made with respect to such Deferred Units as provided in Section 4.

 

(b)                                 Corporate Adjustments.

 

(i)                                     In the event that any distribution (in the form of Class A Units, other securities or other property), recapitalization, unit split, reverse unit split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, conversion of Holdings from a limited liability company to a corporation, change of control or exchange of Class A Units or other securities of Holdings, or other transaction or event involving Holdings or Class A Units (each a “Company Event”) affects the Deferred Units such that the Board determines that an adjustment is necessary or appropriate in order to prevent dilution or enlargement of benefits or potential benefits intended to be made available under this Agreement, the Board shall equitably adjust any or all of the number of Class A Units or other securities (or number and kind of other securities or property) subject to the Deferred Units or take such other action as the Board determines to be appropriate to preserve the value, rights and benefit of any affected Deferred Units granted hereunder.  Notwithstanding the foregoing, nothing herein shall be deemed to provide the Employee with any rights to an adjustment in respect of the

 

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Deferred Units in the event Holdings issues additional Units (as defined in the LLC Agreement), warrants, options or other rights to purchase or otherwise acquire Units in exchange for equivalent value (in cash, in kind or in services) as determined in the sole discretion of the Board.

 

(ii)                                  If Holdings enters into or is involved in any Company Event, the Board may, prior to such Company Event and effective upon such Company Event, take such action as it deems appropriate, including, but not limited to, replacing Deferred Units with substitute awards in respect of the Class A Units, other securities or other property of the surviving entity or any affiliate of the surviving entity on such terms and conditions, including without limitation, as to the number of securities or amount of property, pricing and value of such securities or property or otherwise, which shall substantially preserve the value, rights and benefits of any affected Deferred Units granted hereunder as of the date of the consummation of the Company Event.

 

(iii)                               Upon receipt by the Employee of any such substitute awards (or payment) as a result of any such Company Event, the Employee’s Deferred Units shall be thereupon cancelled without the need for obtaining the consent of the Employee.

 

3.                                      Vesting.

 

(a)                                 General.  Each of the Deferred Units issued hereunder shall be subject to vesting as set forth in Exhibit A.  Deferred Units which have become vested pursuant to this Section 3 are referred to herein as “Vested Deferred Units,” and Deferred Units that have not become Vested Deferred Units are referred to herein as “Unvested Deferred Units.”

 

(b)                                 Cancellation of Deferred Units.  If Employee’s Engagement terminates for any reason, after giving effect to any acceleration of vesting caused by or resulting from such termination, all Unvested Deferred Units of such Employee shall be automatically cancelled on the date of termination without any consideration paid therefor and without further action on the part of the Company or any holder of any of the Unvested Deferred Units.

 

4.                                      Cash Distribution Rights.  The Employee shall be entitled to receive all cash distributions paid with respect to each Class A Unit credited to his or her Deferred Unit Account, provided that any such distribution credited to the Employee’s Deferred Unit Account by the Company on behalf of the Employee shall be paid (by the Company or by Windy Holdings) only at the time the underlying Deferred Unit is settled pursuant to Section 5 and only if such Deferred Unit is a Vested Deferred Unit on the Settlement Date (as defined below).  Any such cash distributions shall be notionally invested in accounts or other programs to be offered by the Board at its reasonable discretion.  For the sake of clarity, the Employee shall forfeit any distributions related to Unvested Deferred Units upon any forfeiture of such Unvested Deferred Unit.

 

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5.                                      Settlement

 

(a)                                 General.  The Employee will receive a distribution of the amounts credited to the Employee’s Deferred Unit Account, including all distributions credited to the Employee’s Deferred Unit Account pursuant to Section 4 with respect to such Deferred Units, as provided in Exhibit A.  The date of such distribution is referred to collectively herein as the “Settlement Date.”

 

(b)                                 On or before any Settlement Date, the Employee shall become a party to the LLC Agreement, the Registration Agreement, and a Unitholders Agreement, as may be amended from time to time and in form and substance reasonably consistent with such agreements in effect as of the date hereof and with any generally applicable amendments thereto, unless the Employee is already a party to such agreements (collectively, the “Unit Acquisition Agreements”) and as a condition to the grant of the Deferred Units hereunder, Employee hereby agrees to execute a joinder to any of the Unit Acquisition Agreements to which the Employee is not already a party, with such joinder to be effective on any Settlement Date to the extent required.  Except as set forth herein, all distributions hereunder shall be made in kind with respect to securities and other property credited to an Employee’s Deferred Unit Account.

 

(c)                                  Cash in Lieu of Property.  Notwithstanding any other provision of this Agreement, in lieu of delivering Class A Units or other securities or property credited to the Employee’s Deferred Unit Account in respect of all or a portion of the Deferred Units, the Company may deliver to the Employee an amount of cash equal to the Liquidation Value of such Class A Units or the Fair Market Value of such other securities or property.

 

(d)                                 Settlement in Stock of Windy Holdings.  Notwithstanding any other provision of this Agreement, in lieu of delivering Class A Units or other securities or property credited to the Employee’s Deferred Unit Account (other than cash distributions pursuant to Section 4) in respect of all or a portion of the Vested Deferred Units, the Company or Windy Holdings may deliver shares of stock of Windy Holdings having a Fair Market Value equal to the Liquidation Value of such Class A Units or the Fair Market Value of such other securities or property as of the date that such shares, securities or property would otherwise be delivered.  If a distribution is made in the form of stock of Windy Holdings (or any replacement equity) and if Holdings exists at the time of such distribution, the Company may, in its sole discretion, require the Participant to exchange such Windy Holdings stock (or replacement equity) after the distribution for Units or nonvoting equity interests of Holdings (or replacement equity) for an amount of Class A Units (or replacement equity) with a Liquidation Value equal to the Fair Market Value of Windy Holdings Stock (or replacement equity) so exchanged.

 

(e)                                  Withholding.  Except as provided in Section 5(f), Employee shall be required to remit in cash to the Company all required withholding amounts associated with settlement of the Deferred Units, as determined by the Company in its reasonable discretion.  Subject to applicable law, Employee agrees that the Company may satisfy withholding obligations from any source of funds available to the Company and otherwise payable to Employee, including salary or bonus payments.

 

(f)                                   Notwithstanding Section 5(e) and subject to the procedures specified by the Company from time to time, the Employee shall satisfy the tax withholding obligations in connection with a Deferred Unit or the settlement thereof by having the Company withhold Class

 

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A Units or other securities or property credited to the Employee’s Deferred Unit Account otherwise deliverable pursuant to Section 5 with a fair market value equal to the Company’s minimum statutory withholding requirements; provided that this Section 5(f) shall not apply if, and to the extent that, the Board determines that its application poses a material risk of jeopardizing the Company’s or its Subsidiaries’ proper capitalization, liquidity, ability to satisfy its then existing or anticipated capital requirements or compliance with applicable covenants in its credit or finance agreements.

 

6.                                      Administration.

 

(a)                                 Authority of the Board.  The Board shall have all powers and discretion necessary or appropriate to administer this Agreement and to control its operation, including, but not limited to, the power to (i) interpret and construe this Agreement, (ii) adopt such rules as it deems necessary or appropriate for the administration, interpretation and application of this Agreement, (iii) interpret, amend or revoke any such procedures or rules, (iv) correct any technical defect(s) or technical omission(s), or reconcile any technical inconsistency(ies), in this Agreement, (v) determine which Unit Acquisition Agreements must be executed in connection with the Agreement and the timing for the required execution of a Unit Acquisition Agreement, and (vi) make all other decisions and determinations that may be required pursuant to this Agreement or as the Board deems necessary or advisable to administer this Agreement provided that such actions will be taken in a manner reasonably consistent with the terms of this Agreement.

 

(b)                                 Actions of the Board.  The actions of the Board shall be taken in accordance with the terms and conditions of the LLC Agreement.  The Board’s determinations need not be uniform with respect to all holders of Deferred Units, and may be made selectively among holders of Deferred Units, whether or not such holders of Deferred Units are similarly situated; provided that such actions will be taken in a manner reasonably consistent with the terms of this Agreement.

 

(c)                                  Delegation by the Board.  The Board in its sole discretion and on such terms and conditions as it may provide in accordance with the LLC Agreement may delegate all or any part of its authority and powers under this Agreement in accordance with the terms and conditions of the LLC Agreement.

 

7.                                      Confidentiality.  Other than as appropriate to the implementation of duties in the ordinary course of Employee’s employment by the Company or its Subsidiaries, and except as specifically authorized by the Board or Employee’s direct supervisor, Employee shall not at any time make use of or disclose, directly or indirectly, any (i) trade secret or other confidential or secret information of the Company or of any of its Subsidiaries, or (ii) other technical, business, proprietary or financial information of the Company or of any of its Subsidiaries not available to the public generally or to Competitors (“Confidential Information”), except to the extent that such Confidential Information (a) becomes a matter of public record or is published in a newspaper, magazine or other periodical or on electronic or other media available to the general public, other than as a result of any act or omission by Employee or (b) is required to be disclosed by any law, regulation or order of any court or regulatory commission, department or agency, provided that Employee gives prompt notice of such requirement to the Company to

 

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enable the Company to seek an appropriate protective order.  For the avoidance of doubt, “Confidential Information” shall include the terms and provisions of this Agreement, the LLC Agreement, any Unit Acquisition Agreement, and the Unitholders Agreement, except as required by law or the rules of any national securities exchange or as disclosed to Employee’s advisors on a need-to-know basis under instructions to maintain the confidentiality hereof.  Promptly following the termination of Employee’s Engagement, Employee shall surrender to the Company all records, memoranda, notes, plans, reports, computer tapes and software and other documents and data which constitute Confidential Information which Employee may then possess or have under his/her control (together with all copies thereof).

 

8.                                      Employee’s Representations and Warranties.  In connection with the grant of the Deferred Units and the settlement of Deferred Units hereunder, Employee hereby represents and warrants to the Company that:

 

(a)                                 Employee’s Investment Representations.  Employee is acquiring the Deferred Units to be acquired by him, her or it hereunder for his, her or its own account with the present intention of holding such securities for investment purposes and that he, she or it has no intention of selling such securities in a public distribution in violation of the federal securities laws or any applicable state or foreign securities laws.  Employee acknowledges that the Deferred Units have not been registered under the Securities Act or applicable state or foreign securities laws and that the Deferred Units will be issued to Employee in reliance on exemptions from the registration requirements of the Securities Act and applicable state and foreign statutes and in reliance on Employee’s representations and agreements contained herein and in the LLC Agreement.

 

(b)                                 No Conflict.  The execution, delivery and performance by Employee of this Agreement and the consummation of the transactions contemplated hereby, do not and will not (with or without the giving of notice, the lapse of time, or both) result in a violation or breach of, conflict with, cause increased liability or fees, or require approval, consent or authorization under (i) any Legal Requirements applicable to Employee or (ii) any contract to which Employee is a party or by which Employee or any of its properties or assets may be bound or affected.

 

(c)                                  Other Representations and Warranties of Employee.

 

(i)                                     Employee is an officer or employee of the Company or one of its Subsidiaries;

 

(ii)                                  Employee has had an opportunity to ask questions and receive answers concerning the terms and conditions of the Deferred Units to be acquired by him, her or it hereunder and has had full access to such other information concerning the Company, including any Unit Acquisition Agreements, as Employee may have requested in making his, her or its decision to invest in the Deferred Units being issued hereunder;

 

(iii)                               Employee acknowledges that the Class A Units that may be issued in settlement of the Deferred Units will be subject to the restrictions contained in the Unit Acquisition Agreements;

 

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(iv)                              Employee will not sell or otherwise transfer the Class A Units that may be issued upon settlement of any Deferred Units without registration under the Securities Act (and any applicable federal, state and foreign securities laws) or an exemption therefrom, and provided there exists such a registration or exemption, any transfer of the Class A Units that may be issued upon settlement of any Deferred Units by Employee or subsequent holders of the Class A Units that may be issued upon settlement of any Deferred Units will be in compliance with the provisions of this Agreement;

 

(v)                                 Employee acknowledges that any certificate representing the Class A Units that may be issued in settlement of the Deferred Units shall include such legend(s) as the Company determines are necessary or advisable regarding any restrictions contained in this Agreement, the Unit Acquisition Agreements or any other agreement with respect to which Employee is a party or is bound;

 

(vi)                              Employee has all requisite legal capacity and authority and all material authorizations necessary to carry out the transactions contemplated by this Agreement, the Unit Acquisitions Agreements and all other agreements contemplated hereby and thereby to which Employee is a party have been duly authorized by Employee;

 

(vii)                           Employee has relied on the advice of, or has consulted with, only his, her or its own legal, financial and tax advisors and the determination of Employee to acquire the Deferred Units pursuant to this Agreement has been made by Employee independent of any statements or opinions as to the advisability of such acquisition or as to the properties, business, prospects or condition (financial or otherwise) of the Company which may have been made or given by any other Person (including all Persons acquiring Units on the date hereof) or by any agent or employee of such Person and independent of the fact that any other Person has decided to become a Unitholder of the Company; and

 

(viii)                        Employee is not acquiring the Deferred Units as a result of or subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine, internet publication or similar media or broadcast over television, radio or the internet or presented at any public seminar or meeting, or any solicitation of a subscription by a Person not previously known to Employee in connection with investments in securities generally.

 

(d)                                 Additional Acknowledgements.  As an inducement to the Company to issue the Deferred Units to Employee and as a condition thereto, Employee hereby acknowledges and agrees that:

 

(i)                                     Neither the issuance of the Deferred Units to Employee nor any provision contained in this Agreement or the Unit Acquisition Agreements shall entitle Employee to remain in the employment of the Company and/or any of its Subsidiaries or affect the right of the Company and/or any of its Subsidiaries to terminate Employee’s employment at any time; and

 

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(ii)                                  Except as expressly set forth in the Unit Acquisition Agreements or as required by applicable law, the Company shall have no duty or obligation to disclose to Employee, and Employee shall have no right to be advised of, any material information regarding the Company and its Subsidiaries.

 

9.                                      Compensatory Arrangements; Securities Laws Exemption.  The Company and Employee hereby acknowledge and agree that this Agreement has been executed and delivered, and the Deferred Units have been issued hereunder, in connection with and as a part of the compensation and incentive arrangements between the Company and any of its Subsidiaries and Employee.  Each of the Deferred Units granted hereunder is intended to qualify for one or more exemptions from the registration requirements under the Securities Act, (including, pursuant to Rule 701) and under similar exemptions under applicable state securities laws (collectively, the “Exemptions”).  In the event that any provision of this Agreement would cause the Deferred Units granted hereunder to not qualify for any of the Exemptions or any other applicable exemption from registration under the Securities Act, Employee and the Company agree that this Agreement shall be deemed automatically amended to the extent necessary to cause the Deferred Units to qualify for any of the Exemptions.

 

10.                               Definitions.

 

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

 

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

 

“Board” means the Board of Managers of Holdings.

 

“Cause” shall have the meaning provided in the Employee’s employment agreement, provided that if no such agreement exists, “Cause” shall mean: (i) the willful and continued failure of Employee to perform substantially Employee’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 Employee by the Board or its representatives, which specifically identifies the manner in which the Board believes that Employee has not substantially performed Employee’s duties;  (ii) the willful engaging by Employee 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 Employee with respect thereto; (iv) a material breach by Employee of the restrictive covenants included in Section 7; 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 Employee shall be considered “willful” unless it is done, or omitted to be done, by the Employee in bad faith or without reasonable belief that the Employee’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

 

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conclusively presumed to be done, or omitted to be done, by the Employee in good faith and in the best interests of the Company.

 

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

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Engaged” as to an Employee means (i) employed by the Company or any of its Subsidiaries, (ii) serving as a manager or director of the Company or its Subsidiaries or (iii) at the discretion of the Board, providing services to the Company or any of its Subsidiaries as an advisor or consultant as contemplated by or described in Rule 701.

 

“Engagement” means the status of being Engaged.

 

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

 

“Holdings” means Windy City Investments Holdings, L.L.C., a Delaware limited liability company.

 

“Legal Requirement” means any law, treaty, statute, code, ordinance, decree, administrative order, constitution, permit, directive, policy, standard, rule, building, zoning, subdivision, health and safety and other land use laws, regulation, or requirement of any government entity and all judicial, quasi-judicial, administrative, quasi-administrative and arbitral judgments, orders (including injunctions) decisions or awards of any government entity, including general principles of common law, civil law and equity, in each case having the force of law and binding on Employee, any property or his assets.

 

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

 

“LLC Agreement” means Holding’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.)

 

“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.

 

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

 

“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.

 

“Separation from Service” means a “separation from service” under Code § 409A(a)(2)(A)(i) and the 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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“Unitholders Agreement” means that certain Unitholders Agreement, as amended from time to time, executed in connection with the grant of the Deferred Unit hereunder.

 

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

 

11.                               Notices.  Any notice provided for in this Agreement must be in writing and must be personally delivered, sent by telecopy 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
 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

 

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 Employee:

 

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

 

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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.

 

12.                               General Provisions

 

(a)                                 No Rights as Unitholder.  Except to the limited extent provided in Section 4, no Employee (nor any beneficiary) shall have any of the rights or privileges of a unitholder or member of Holdings with respect to any Deferred Units (or settlement thereof), unless and until certificates representing Class A Units in settlement of Deferred Units shall have been issued and recorded on the records of Holdings or its transfer agents or registrars.

 

(b)                                 No Corporate Action Restriction.  The existence of this Agreement and/or the Deferred Units granted hereunder shall not limit, affect or restrict in any way the right or power of the Board or the unitholders or shareholders of Holdings or the Company to make or authorize (a) any adjustment, recapitalization, reorganization or other change in Holdings’ or the Company’s or any Subsidiary’s or Affiliate’s capital structure or business, (b) any merger, consolidation or change in the ownership of the Holdings, Company or any Subsidiary or Affiliate, (c) any issue of bonds, debentures, capital, preferred or prior preference stocks ahead of or affecting Holdings’, the Company’s or any Subsidiary’s or Affiliate’s capital stock or the rights thereof, (d) any dissolution or liquidation of Holdings, the Company or any Subsidiary or Affiliate, (e) any sale or transfer of all or any part of Holdings’, the Company’s or any Subsidiary’s or Affiliate’s assets or business, or (f) any other similar act or proceeding by Holdings, the Company or any Subsidiary or Affiliate.  No Employee, beneficiary or any other person claiming through the Employee shall have any claim against the Board, Holdings, the Company or any Subsidiary or Affiliate, or any employees, officers, unitholders, shareholders or agents of Holdings, the Company or any Subsidiary or Affiliate, solely as a result of any such action.

 

(c)                                  Restrictions on Transfers; Transfers in Violation of Agreement.  The Deferred Units are not transferable, in whole or in part, and they may not, directly or indirectly, be Transferred or otherwise disposed of or encumbered (including, but not limited to, by gift or otherwise) other than by will or by the laws of descent and distribution to the estate of the Employee upon the Employee’s death.  Any Transfer or attempted Transfer of any Deferred

 

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Units in violation of any provision of this Agreement shall be void, and the Company shall not record such Transfer on its books or treat any purported Transferee of such Deferred Units as the owner of such Deferred Units for any purpose.

 

(d)                                 Irrevocability: Binding Effect on Successors and Assigns.  Employee hereby acknowledges and agrees that, except as provided under applicable federal. state, or foreign securities laws, that Employee is not entitled to cancel, terminate or revoke this Agreement or any Unit Acquisition Agreement and such agreements shall survive the death or disability of Employee and the merger, consolidation or other reorganization of the Company 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 Employee is more than one person, the obligations of Employee 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 Deferred Units, if any).  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).

 

(e)                                  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 Unit Acquisition Agreements and the consummation of the transactions contemplated hereby and thereby.

 

(f)                                   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.

 

(g)                                  Complete Agreement.  This Agreement and the Unit Acquisition Agreements (including, for the avoidance of doubt, those Unit Acquisition Agreements previously executed by the Employee and applicable to the Deferred Units granted hereunder) 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.

 

(h)                                 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.

 

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

 

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(j)                                    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.

 

(k)                                 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.

 

(l)                                     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.

 

(m)                             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.

 

(n)                                 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 Employee 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 Employees holding a majority of the outstanding Deferred Units to the extent that the such amendment does not disproportionately and adversely affect the rights of an Employee (or group of Employees) as compared to other Employees (or group of Employees).

 

(o)                                 Community Property.  If, as of the date hereof, Employee is lawfully married and Employee’s address or the permanent residence of Employee’s spouse is located in a community property jurisdiction, Employee’s spouse shall execute and deliver to the Company on the date hereof the Consent in the form of Exhibit B attached hereto.

 

(p)                                 Third-Party Beneficiary.  The Company and Employee acknowledge that each Investor Member 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.

 

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(q)                                 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.

 

*     *     *    *     *

 

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IN WITNESS WHEREOF, the parties hereto have executed this Deferred Unit Issuance Agreement on the date first written above.

 

	
 
    	
NUVEEN   INVESTMENTS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Its:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[Employee]   [Print Name]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[Signature]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[Address]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[State   of Residence]
    

 

 

The number of Deferred Units hereby granted under this Agreement to [Employee] is [X].

 

Signature Page to Deferred Unit Issuance Agreement

 

 

EXHIBIT A

 

Vesting Conditions and Settlement

 

1.                                      Time Vesting.  The Deferred Units shall vest and become Vested Deferred Units as follows:      % of the Deferred Units shall become Vested Deferred Units on each of [vesting dates] if, and only if, the Employee is, and has been, continuously (except for any absence for vacation, leave, etc. in accordance with the Company’s or its Subsidiaries’ policies) Engaged from the Grant Date through and including the applicable vesting date.

 

2.                                      Accelerated Vesting upon Death or Disability.  All Unvested Deferred Units shall immediately vest and become Vested Deferred Units in the event that the Employee ceases to be employed by, or to provide services to, the Company or any of its Subsidiaries due to the Employee’s death or Disability.  “Disability” means Employee’s inability, due to illness, accident, injury, physical or mental incapacity or other disability, to carry out effectively Employee’s duties and obligations to the Company or any of its Subsidiaries or, if applicable based on Employee’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 or the Compensation Committee of the Board (the “Compensation Committee”).  A Disability shall be deemed to have occurred on the date that either Employee or Employee’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.

 

3.                                      Accelerated Vesting.

 

(a)                                 If a Sale of the Firm occurs, then 80% of the aggregate Deferred Units (including Deferred Units that are, immediately prior to the Sale of the Firm, Vested Deferred Units) shall be Vested Deferred Units upon consummation of the Sale of the Firm, and the remaining 20% of such Deferred Units (or, if more than 80% of the Deferred Units are already Vested Deferred Units prior to a Sale of the Firm, then all remaining Unvested Deferred Units) shall vest upon the first anniversary of the consummation of the Sale of the Firm, if Employee either remains Engaged until such date or, if not so Engaged, Employee’s Engagement was terminated after the Sale of the Firm is consummated by the Company without Cause, by the Employee for Good Reason (if Employee is party to an employment agreement providing for termination for Good Reason) or as a result of the death or Disability of Employee.  “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

 

15

 

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 (a “Contribution 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.  If Employee’s Engagement is terminated by the Company without Cause, or by the Employee for Good Reason (if Employee is party to an employment agreement providing for termination for Good Reason) during the 12 months following the consummation of a Contribution Transaction, then all Deferred Units of Employee shall be Vested Deferred Units upon termination of Employee’s Engagement.

 

(b)                                 In no event shall vesting accelerate with respect to any Unvested Deferred Units solely in connection with a Public Offering that causes a ‘40 Act Change of Control, provided, however, that such Public Offering shall accelerate vesting if it also constitutes a Sale of the Firm as defined in paragraph (a) above.  A “‘40 Act Change of Control” shall be any transaction, involving a sale, merger or reorganization or other change in ownership, resulting in an actual or deemed assignment of investment advisory contracts under the Investment Company Act of 1940 or the Investment Advisers Act of 1940.

 

4.                                      Settlement.  The Deferred Units shall be settled as follows:

 

(a)                                 Subject to earlier settlement pursuant to Sections 4(b), (c), or (d) of Exhibit A below, the Vested Deferred Units shall be settled as follows:

 

(i)                                     The lesser of (i)      % of the aggregate Deferred Units and (ii)      % of the Deferred Units that have become Vested Deferred Units on or prior to                , 20       shall be settled on                , 20     ;

 

(ii)                                  The lesser of (i)     % of the aggregate Deferred Units and (ii)     % of the Deferred Units that have become Vested Deferred Units on or prior to              , 20      (less the Vested Deferred Units settled under (i) above) shall be settled on              , 20     ; and

 

(iii)                               The lesser of (i)       % of the aggregate Deferred Units and (ii)        % of the Deferred Units that have become Vested Deferred Units on or prior to                , 20       (less the Vested Deferred Units settled under (i) and (ii) above) shall be settled on              , 20      .

 

(b)                                 In the event of Employee’s death, all Vested Deferred Units (after taking into account any accelerated vesting contemplated herein) shall be settled upon the date that is 30 days following Employee’s death.

 

(c)                                  All Vested Deferred Units (after taking into account any accelerated vesting contemplated herein) shall be settled upon the date that is 30 days following Employee’s Separation from Service (or, if Code §409A(a)(2)(B)(i) applies to the Company and the Employee is a “specified employee” pursuant to such section, the date that is six months following such termination).

 

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(d)                                 Upon a Sale of the Firm which also constitutes a change in control event within the meaning of Code Section 409A(a)(2)(A)(v) (the “409A Change in Control”), Vested Deferred Units shall be settled as follows:

 

(i)                                     100% of the Vested Deferred Units shall be settled within 30 days of the 409A Change in Control, with the remaining Deferred Units settled on the first anniversary of the 409A Change in Control subject to satisfaction of the vesting conditions described in Section 3(a) of Exhibit A.

 

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EXHIBIT B

 

SPOUSAL CONSENT

 

The undersigned spouse of Employee hereby acknowledges that I have read the foregoing Deferred Unit Issuance Agreement executed by Employee as of the date hereof and that I understand its contents.  I am aware that the foregoing Deferred Unit Issuance Agreement imposes 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:                            , 20     
    
	
 
    	
 
    	
 
    
	
 
    	
Spouse’s   Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:                            , 20     
    
	
 
    	
 
    	
 
    
	
 
    	
Witness’   Name:
    	
 
    

 

Spousal Consent to Deferred Unit Issuance Agreement

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