Document:

THIRD
AMENDED AND RESTATED

    LIMITED
LIABILITY COMPANY AGREEMENT

     

    OF

     

    ASTON
ASSET MANAGEMENT LLC

     

    This
Third Amended and Restated Limited Liability Company Agreement (this
“Agreement”) of ASTON ASSET MANAGEMENT LLC (the “Company”) is made as of August
10, 2009 by Highbury Financial Inc., a Delaware corporation, as member (the
“Member”).

     

    WHEREAS,
the Company was formed as a limited liability company pursuant to and in
accordance with the Delaware Limited Liability Company Act (6 Del. C.
§ 18-101, et seq.), as amended from time to time (the “Act”) pursuant to a
Certificate of Formation filed with the Secretary of State of the State of
Delaware on April 19, 2006.

     

    WHEREAS,
the Company entered into a Limited Liability Company Agreement on April 19, 2006
with the Member as its sole member, which was amended and restated on April 20,
2006.

     

    WHEREAS,
the Company has been governed by a Second Amended and Restated Limited Liability
Company Agreement (the “Amended and Restated Agreement”), made as of January 7,
2008.

     

    WHEREAS,
holders of Series B LLC Units of the Company entered into an Exchange Agreement
(the “Exchange Agreement”), dated as of August 10, 2009, pursuant to which each
of the holders of Series B LLC Units of the Company agreed to exchange all of
the limited liability company interests of the Company owned by such holders to
the Member in exchange for Series B Convertible Preferred Stock of the
Member.

     

    WHEREAS,
following the consummation of the transaction contemplated by the Exchange
Agreement, the Member will own all of the issued and outstanding limited
liability company interests of the Company.

     

    WHEREAS,
the closing of the Exchange Agreement was consummated on the date
hereof.

     

    NOW,
THEREFORE, effective upon the closing of the Exchange Agreement, the Member
desires to amend and restate the Amended and Restated Agreement in its entirety
as follows:

     

    1.            Definitions.  Unless
the context otherwise requires, the terms defined in this Section 1 shall, for
the purposes of this Agreement, have the meanings set forth below:

     

    (a)           “Advisers Act” shall
mean the Investment Advisers Act of 1940, as it may be amended from time to
time, and any successor to such act.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)           “Affiliate” shall
mean, with respect to any Person (herein the “first party”), any
other Person that directly or indirectly controls, or is controlled by, or is
under common control with, such first party. The term “control” as used
herein (including the terms “controlled by” and
“under common control
with”) means the possession, directly or indirectly, of the power to (a)
vote twenty-five percent (25%) or more of the outstanding voting securities of
such Person, or (b) otherwise direct the management or policies of such Person
by contract or otherwise (other than solely as a director of a corporation (or
similar entity) that has five (5) or more directors).

     

    (c)           “Certificate” shall
mean the Certificate of Formation of the Company filed under the Act, as the
same may be amended and/or restated from time to time in accordance with the
terms hereof.

     

    (d)           “Controlled Affiliate”
shall mean, with respect to a Person, any Affiliate of such Person under its
“control,” as
the term “control” is defined in the definition of Affiliate.

     

    (e)           “Covered Person” means
a Member, an officer, any authorized person, any Affiliate of a Member, or
officer, any officers, directors, shareholders, partners, employees,
representatives or agents of a Member, an officer or their respective
Affiliates, or any employee or agent of the Company or its
Affiliates.

     

    (f)           “Investment Services”
shall mean any services which involve (a) the management, administration,
solicitation or distribution of an investment account, Mutual Fund or other
commingled fund (or portions thereof or a group of investment accounts, Mutual
Funds or other commingled funds) for compensation, (b) the giving of advice with
respect to the investment and/or reinvestment of assets or funds (or any group
of assets or funds) for compensation, or (c) otherwise acting as an “investment
adviser” within the meaning of the Advisers Act.

     

    (g)           “Mutual Fund” shall
mean a registered investment company (or series of registered investment
companies).

     

    (h)           “Person” means any
individual, partnership (limited or general), corporation, limited liability
company, limited liability partnership, association, trust, joint venture,
unincorporated organization or other entity.

     

    2.            Name.  The
name of the limited liability company is ASTON ASSET MANAGEMENT
LLC.

     

    3.            Purpose and
Powers.  The principal business activity and purposes of the
Company (and any Controlled Affiliates thereof) shall be to engage in the
investment advisory and investment management business and any businesses
related thereto or useful in connection therewith, including, without
limitation, the provision of Investment Services. However, the business and
purposes of the Company (and any Controlled Affiliates thereof) shall not be
limited to such initial principal business activities if the Member otherwise
determines, and in such event, the Company (and any Controlled Affiliates
thereof) shall have authority to engage in any other lawful business, purpose or
activity permitted by the Act. The Company shall possess and may exercise all of
the powers and privileges granted by the Act, together with any powers
incidental thereto, including such powers or privileges that are necessary or
convenient to the conduct, promotion or attainment of the business purposes or
activities of the Company, including without limitation the following
powers:

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

     

    (a)           to
conduct its business and operations and to have and exercise the powers granted
to a limited liability company by the Act in any state, territory or possession
of the United States or in any foreign country or jurisdiction;

     

    (b)           to
purchase, receive, take, lease or otherwise acquire, own, hold, improve,
maintain, use or otherwise deal in and with, sell, convey, lease, exchange,
transfer or otherwise dispose of, mortgage, pledge, encumber or create a
security interest in all or any of its real or personal property, or any
interest therein, wherever situated;

     

    (c)           to
borrow or lend money or obtain or extend credit and other financial
accommodations, to invest and reinvest its funds in any type of security or
obligation of or interest in any public, private or governmental entity, and to
give and receive interests in real and personal property as security for the
payment of funds so borrowed, loaned or invested;

     

    (d)           to
make contracts, including contracts of insurance, incur liabilities and give
guaranties, including without limitation, guaranties of obligations of other
Persons who are interested in the Company or in whom the Company has an
interest;

     

    (e)           to
employ officers, employees, agents and other persons, to fix the compensation
and define the duties and obligations of such personnel, to establish and carry
out retirement, incentive and benefit plans for such personnel, and to indemnify
such personnel to the extent permitted by this Agreement and the
Act;

     

    (f)           to
make donations irrespective of benefit to the Company for the public welfare or
for community, charitable, religious, educational, scientific, civic or similar
purposes;

     

    (g)           to
institute, prosecute and defend any legal action or arbitration proceeding
involving the Company, and to pay, adjust, compromise, settle or refer to
arbitration any claim by or against the Company or any of its
assets;

     

    (h)           to
indemnify any Person in accordance with the Act and to obtain any and all types
of insurance;

     

    (i)           to
negotiate, enter into, renegotiate, extend, renew, terminate, modify, amend,
waive, execute, acknowledge or take any other action with respect to any lease,
contract or security agreement in respect of any assets of the
Company;

     

    (j)           to
form, sponsor, organize or enter into joint ventures, general or limited
partnerships, limited liability companies, trusts and any other combinations or
associations formed for investment purposes;

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

     

    (k)           to
make, execute, acknowledge and file any and all documents or instruments
necessary, convenient or incidental to the accomplishment of the purposes of the
Company; and

     

    (l)           to
cease its activities and cancel its Certificate.

     

    4.            Registered Office and
Registered Agent.  The Company’s registered agent and
registered office in Delaware shall be Corporation Service Company, 1013 Center
Road, Wilmington, New Castle County, Delaware 19085. At any time, the Member may
designate another registered agent and/or registered office.

     

    5.            Member.  The
name and the business addresses of the Member are as follows:

     

    
      
        
          	
                  Name

                	 
      	
                  Address

                
	 	 	 
	
                  Highbury
      Financial Inc.

                	
                    

                	
                  999
      Eighteenth Street, Suite 300

                  Denver,
      Colorado  80202

                

        

      

    

     

    6.            Powers.

     

    (a)           Member
Manager.  The business and affairs of the Company shall be
managed by the Member.  The Member shall have the power to do any and
all acts necessary or convenient to or for the furtherance of the purposes
described herein, including all powers, statutory or otherwise, possessed by
members under the laws of the State of Delaware, including but not limited to
borrowing money.

     

    (b)           Management Committee and
Officers.  The Member shall have the authority to delegate to a
management committee (the “Management Committee”) to the greatest extent
permitted by applicable law the power and authority to conduct the day-to-day
operations, business and activities of the Company.  The Member or the
Management Committee, if so designated, may designate employees of the Company
as officers of the Company as it deems necessary or desirable to carry on the
business of the Company, with such titles as the Member or Management Committee,
as applicable, shall determine.  The Member or the Management
Committee, as applicable, may delegate any of its power or authority to an
officer or officers subject to modification and withdrawal of such delegated
power and authority by the Member or the Management Committee. Any two or more
offices may be held by the same person. New offices may be created and filled by
the Member or the Management Committee.  Each officer shall hold
office until his or her successor is designated by the Member or the Management
Committee or until his or her earlier death, resignation or removal. Neither the
members of the Management Committee nor the officers are “managers” (within the
meaning of the Act) of the Company.

     

    (c)           Reliance by Third
Parties.  Any Person dealing with the Company or any officer
may rely upon a certificate signed by an officer as to: (i) the identity of the
Member or the officer; (ii) the existence or non-existence of any fact or facts
which constitute a condition precedent to acts by an officer or in any other
manner germane to the affairs of the Company; (iii) the persons who are
authorized to execute and deliver any instrument or document of or on behalf of
the Company; or (iv) any act or failure to act by the Company or as to any other
matter whatsoever involving the Company or the Member.

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

     

    7.            Dissolution.  The
Company shall dissolve, and its affairs shall be wound up, upon the first to
occur of the following:  (a) the written consent of the Member
and (b) the entry of a decree of judicial dissolution under Section 18-802
of the Act.

     

    8.            Contributions.  The
Member is not required to make any capital contribution to the
Company.  The Member may make capital contributions to the Company in
the form of cash, services or otherwise, and upon such contribution, the
Member’s capital account balance shall be adjusted accordingly.

     

    9.            Distributions.  Distributions
shall be made to the Member at the times and in the aggregate amounts determined
by the Member.

     

    10.          Assignments.  The
Member may assign in whole or in part its limited liability company
interest.

     

    11.          Admission of Additional
Members.  One or more additional members of the Company may be
admitted to the Company upon the written consent of the Member.

     

    12.          Liability and
Exculpation.

     

    (a)           Except
as otherwise provided by the Act, the debts, obligations and liabilities of the
Company (or of any Controlled Affiliate thereof), whether arising in contract,
tort or otherwise, shall be solely the debts, obligations and liabilities of the
Company (or such Controlled Affiliate), and no Covered Person shall be obligated
personally for any such debt, obligation or liability of the Company (or any
Controlled Affiliate thereof) solely by reason of being a Covered
Person.

     

    (b)           No
Covered Person shall be liable to the Company, any Controlled Affiliate thereof
or any other Covered Person for any loss, damage or claim incurred by reason of
any act or omission performed or omitted by such Covered Person in good faith on
behalf of the Company or any Controlled Affiliate thereof and in a manner
reasonably believed to be within the scope of authority conferred on such
Covered Person by this Agreement, except that a Covered Person shall be liable
for any such loss, damage or claim incurred by reason of any action or inaction
of such Covered Person which constituted fraud, gross negligence, willful
misconduct or a breach of this Agreement.

     

    (c)           A
Covered Person shall be fully protected in relying in good faith upon the
records of the Company (or of any Controlled Affiliate thereof) and upon such
information, opinions, reports or statements presented to the Covered Person by
any Person as to matters the Covered Person reasonably believes are within such
other Person’s professional or expert competence and who has been selected with
reasonable care by or on behalf of the Company (or any Controlled Affiliate
thereof).

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

    

    13.          Indemnification.  To
the fullest extent permitted by applicable law, a Covered Person shall be
entitled to indemnification from the Company for any loss, damage or claim
(including any amounts paid in settlement of any such claims) including
expenses, fines, penalties and counsel fees and expenses incurred by such
Covered Person (“Losses”) by reason of
any act or omission performed or omitted by such Covered Person in good faith on
behalf of the Company (or any Controlled Affiliate thereof) and in a manner
reasonably believed to be within the scope of authority conferred on such
Covered Person by this Agreement, except that no Covered Person shall be
entitled to be indemnified in respect of any Losses incurred by such Covered
Person by reason of any action or inaction of such Covered Person which
constituted fraud, gross negligence, willful misconduct or a breach of this
Agreement; provided, however, that any
indemnity under this Section 13 shall be provided out of and to the extent of
the assets of the Company only, and no Member or Covered Person shall have any
personal liability to provide indemnity on account thereof.

     

    14.          Governing
Law.  This Agreement shall be governed by, and construed under,
the laws of the State of Delaware, and all rights and remedies shall be governed
by said laws.

     

    15.          Amendment.  This
Agreement may not be modified, altered, supplemented or amended except by an
instrument in writing executed by each of the Members.

     

    [Remainder
of page left intentionally blank.]

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

    In
Witness
Whereof,
the undersigned, intending to be legally bound hereby, has duly executed this
Third Amended and Restated Limited Liability Company Agreement as of the date
and year first written above.

     

    
      
        
          	 
      	
                  HIGHBURY
      FINANCIAL INC.

                
	 	 
	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Richard S. Foote

                
	 
      	 
      	
                  Name:
      Richard S. Foote

                
	 
      	 
      	
                  Title:
      President and Chief Executive
OfficerUnassociated Document

    HIGHBURY
FINANCIAL INC.

     

    and

     

    CONTINENTAL
STOCK TRANSFER & TRUST COMPANY, AS RIGHTS AGENT

     

    RIGHTS
AGREEMENT

     

    Dated as
of August 10, 2009

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              	 
      	 
      	
                                                                      PAGE

                                                                    
	 	 	 
	
                                                                      SECTION
      1.

                                                                    	
                                                                      CERTAIN
      DEFINITIONS

                                                                    	
                                                                      1

                                                                    
	 	 	 
	
                                                                      SECTION
      2.

                                                                    	
                                                                      APPOINTMENT
      OF RIGHTS AGENT

                                                                    	
                                                                      7

                                                                    
	 	 	 
	
                                                                      SECTION
      3.

                                                                    	
                                                                      ISSUE
      OF RIGHT CERTIFICATES

                                                                    	
                                                                      7

                                                                    
	 	 	 
	
                                                                      SECTION
      4.

                                                                    	
                                                                      FORM
      OF RIGHT CERTIFICATES

                                                                    	
                                                                      9

                                                                    
	 	 	 
	
                                                                      SECTION
      5.

                                                                    	
                                                                      COUNTERSIGNATURE
      AND REGISTRATION

                                                                    	
                                                                      9

                                                                    
	 	 	 
	
                                                                      SECTION
      6.

                                                                    	
                                                                      TRANSFER,
      SPLIT UP, COMBINATION AND EXCHANGE OF RIGHT CERTIFICATES; MUTILATED,
      DESTROYED, LOST OR STOLEN RIGHT CERTIFICATES

                                                                    	
                                                                      10

                                                                    
	 	 	 
	
                                                                      SECTION
      7.

                                                                    	
                                                                      EXERCISE
      OF RIGHTS, PURCHASE PRICE; EXPIRATION DATE OF RIGHTS

                                                                    	
                                                                      11

                                                                    
	 	 	 
	
                                                                      SECTION
      8.

                                                                    	
                                                                      CANCELLATION
      AND DESTRUCTION OF RIGHT CERTIFICATES

                                                                    	
                                                                      12

                                                                    
	 	 	 
	
                                                                      SECTION
      9.

                                                                    	
                                                                      AVAILABILITY
      OF SHARES OF PREFERRED STOCK

                                                                    	
                                                                      12

                                                                    
	 	 	 
	
                                                                      SECTION
      10.

                                                                    	
                                                                      PREFERRED
      STOCK RECORD DATE

                                                                    	
                                                                      14

                                                                    
	 	 	 
	
                                                                      SECTION
      11.

                                                                    	
                                                                      ADJUSTMENT
      OF PURCHASE PRICE, NUMBER AND KIND OF SHARES AND NUMBER OF
      RIGHTS

                                                                    	
                                                                      14

                                                                    
	 	 	 
	
                                                                      SECTION
      12.

                                                                    	
                                                                      CERTIFICATE
      OF ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES

                                                                    	
                                                                      22

                                                                    
	 	 	 
	
                                                                      SECTION
      13.

                                                                    	
                                                                      CONSOLIDATION,
      MERGER OR SALE OR TRANSFER OF ASSETS OR EARNING POWER

                                                                    	
                                                                      23

                                                                    
	 	 	 
	
                                                                      SECTION
      14.

                                                                    	
                                                                      FRACTIONAL
      RIGHTS AND FRACTIONAL SHARES

                                                                    	
                                                                      26

                                                                    
	 	 	 
	
                                                                      SECTION
      15.

                                                                    	
                                                                      RIGHTS
      OF ACTION

                                                                    	
                                                                      27

                                                                    
	 	 	 
	
                                                                      SECTION
      16.

                                                                    	
                                                                      AGREEMENT
      OF RIGHT HOLDERS

                                                                    	
                                                                      28

                                                                    
	 	 	 
	
                                                                      SECTION
      17.

                                                                    	
                                                                      RIGHT
      CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER

                                                                    	
                                                                      28

                                                                    
	 	 	 
	
                                                                      SECTION
      18.

                                                                    	
                                                                      CONCERNING
      THE RIGHTS AGENT

                                                                    	
                                                                      29

                                                                    
	 	 	 
	
                                                                      SECTION
      19.

                                                                    	
                                                                      MERGER
      OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT

                                                                    	
                                                                      29

                                                                    
	 	 	 
	
                                                                      SECTION 20.

                                                                    	
                                                                      DUTIES
      OF RIGHTS AGENT

                                                                    	
                                                                      30

                                                                    
	 	 	 
	
                                                                      SECTION
      21.

                                                                    	
                                                                      CHANGE
      OF RIGHTS AGENT

                                                                    	
                                                                      32

                                                                    
	 	 	 
	
                                                                      SECTION
      22.

                                                                    	
                                                                      ISSUANCE
      OF NEW RIGHT CERTIFICATES

                                                                    	
                                                                      33

                                                                    
	 	 	 
	
                                                                      SECTION
      23.

                                                                    	
                                                                      REDEMPTION

                                                                    	
                                                                      33

                                                                    

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS (continued)

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 
      	 
      	
                                            Page

                                          
	 	 	 
	
                                            SECTION
      24.

                                          	
                                            EXCHANGE

                                          	
                                            34

                                          
	 	 	 
	
                                            SECTION
      25.

                                          	
                                            NOTICE
      OF CERTAIN EVENTS

                                          	
                                            35

                                          
	 	 	 
	
                                            SECTION
      26.

                                          	
                                            NOTICES

                                          	
                                            36

                                          
	 	 	 
	
                                            SECTION
      27.

                                          	
                                            SUPPLEMENTS
      AND AMENDMENTS

                                          	
                                            37

                                          
	 	 	 
	
                                            SECTION
      28.

                                          	
                                            SUCCESSORS

                                          	
                                            37

                                          
	 	 	 
	
                                            SECTION
      29.

                                          	
                                            BENEFITS
      OF THIS AGREEMENT

                                          	
                                            37

                                          
	 	 	 
	
                                            SECTION
      30.

                                          	
                                            DETERMINATIONS
      AND ACTIONS BY THE BOARD OF DIRECTORS

                                          	
                                            37

                                          
	 	 	 
	
                                            SECTION 31.

                                          	
                                            SEVERABILITY

                                          	
                                            37

                                          
	 	 	 
	
                                            SECTION
      32.

                                          	
                                            GOVERNING
      LAW

                                          	
                                            38

                                          
	 	 	 
	
                                            SECTION
      33.

                                          	
                                            COUNTERPARTS

                                          	
                                            38

                                          
	 	 	 
	
                                            SECTION
      34.

                                          	
                                            DESCRIPTIVE
      HEADINGS

                                          	
                                            38

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    RIGHTS
AGREEMENT

     

    Rights
Agreement, dated as of August 10, 2009 (“Agreement”), between Highbury Financial
Inc., a Delaware corporation (the “Company”), and Continental Stock Transfer
& Trust Company, as Rights Agent (the “Rights Agent”).

     

    The Board
of Directors of the Company has adopted resolutions creating a series of
preferred stock designated as “Series A Junior Participating Preferred Stock”
and authorized and declared a dividend of one preferred share purchase right (a
“Right”) for each share of Common Stock (as hereinafter defined) outstanding as
of the Close of Business (as defined below) on August 11, 2009 (the “Record
Date”), each Right initially representing the right to purchase one
one-thousandth (subject to adjustment) of a share of Preferred Stock (as
hereinafter defined), upon the terms and subject to the conditions herein set
forth, and has further authorized and directed the issuance of one Right
(subject to adjustment as provided herein) with respect to each share of Common
Stock that shall become outstanding between the Record Date and the earlier of
the Distribution Date and the Expiration Date (as such terms are hereinafter
defined); provided, however, that Rights
may be issued with respect to shares of Common Stock that shall become
outstanding after the Distribution Date and prior to the Expiration Date in
accordance with Section 22.

     

    Accordingly,
in consideration of the premises and the mutual agreements herein set forth, the
parties hereby agree as follows:

     

    Section
1.  Certain
Definitions.  For purposes of this Agreement, the following
terms have the meaning indicated:

     

    (a)           “Acquiring
Person” shall mean any Person (as such term is hereinafter defined) who or which
shall be the Beneficial Owner (as such term is hereinafter defined) of 15% or
more of the shares of Common Stock then outstanding, but shall not include an
Exempt Person (as such term is hereinafter defined); provided, however,
that

     

    (i)      
     if the Board of Directors of the Company
determines in good faith that a Person who would otherwise be an “Acquiring
Person” became the Beneficial Owner of a number of shares of Common Stock such
that the Person would otherwise qualify as an “Acquiring Person” inadvertently
(including, without limitation, because (A) such Person was unaware that it
beneficially owned that number of shares of Common Stock that would otherwise
cause such Person to be an “Acquiring Person” or (B) such Person was aware of
the extent of its Beneficial Ownership of Common Stock but had no actual
knowledge of the consequences of such Beneficial Ownership under this Agreement)
and without any intention of changing or influencing control of the Company,
then such Person shall not be deemed to be or to have become an “Acquiring
Person” for any purposes of this Agreement unless and until such Person shall
have failed to divest itself, as soon as practicable (as determined, in good
faith, by the Board of Directors of the Company), of Beneficial Ownership of a
sufficient number of shares of Common Stock so that such Person would no longer
otherwise qualify as an “Acquiring Person”;

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (ii)           if,
as of the date hereof or prior to the first public announcement of the adoption
of this Agreement, any Person is or becomes the Beneficial Owner of 15% or more
of the shares of Common Stock outstanding, such Person shall not be deemed to be
or to become an “Acquiring Person” unless and until such time as such Person
shall, after the first public announcement of the adoption of this Agreement,
become the Beneficial Owner of additional shares of Common Stock (other than
pursuant to a dividend or distribution paid or made by the Company on the
outstanding Common Stock or pursuant to a split or subdivision of the
outstanding Common Stock), unless, upon becoming the Beneficial Owner of such
additional shares of Common Stock, such Person is not then the Beneficial Owner
of 15% or more of the shares of Common Stock then outstanding;

     

    (iii)          no
Person shall become an “Acquiring Person” solely as a result of any unilateral
grant of any security by the Company or through the exercise of any options,
warrants, rights or similar interests (including restricted stock) granted by
the Company to its directors, officers and employees;

     

    (iv)          no
Person shall become an “Acquiring Person” as the result of an acquisition of
shares of Common Stock by the Company which, by reducing the number of shares
outstanding, increases the proportion of the shares of Common Stock beneficially
owned by such Person to 15% or more of the Common Stock then outstanding; provided, however, that if a
Person shall become the Beneficial Owner of 15% or more of the shares of Common
Stock then outstanding by reason of such share acquisitions by the Company and
shall thereafter become the Beneficial Owner of any additional shares of Common
Stock (other than pursuant to a dividend or distribution paid or made by the
Company on the outstanding Common Stock or pursuant to a split or subdivision of
the outstanding Common Stock), then such Person shall be deemed to be an
“Acquiring Person” unless upon becoming the Beneficial Owner of such additional
shares of Common Stock such Person does not beneficially own 15% or more of the
shares of Common Stock then outstanding; and

     

    (v)           no
Person shall become an “Acquiring Person” as the result of the acquisition of
Beneficial Ownership of shares of Common Stock from an individual who, on the
later of the date hereof or the first public announcement of this Agreement, is
the Beneficial Owner of 15% or more of the Common Stock then outstanding if such
shares of Common Stock are received by such Person upon such individual’s death
pursuant to such individual’s will or pursuant to a charitable trust created by
such individual for estate planning purposes.

     

    For all
purposes of this Agreement, any calculation of the number of shares of Common
Stock outstanding at any particular time, including for purposes of determining
the particular percentage of the outstanding shares of Common Stock of which any
Person is the Beneficial Owner, shall be made in accordance with the last
sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), as in effect
on the date hereof.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b)           “Affiliate”
and “Associate” shall have the respective meanings ascribed to such terms in
Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in
effect on the date hereof.

     

    (c)           “Agreement”
shall have the meaning set forth in the preamble hereto.

     

    (d)           A
Person shall be deemed the “Beneficial Owner” of, shall be deemed to have
“Beneficial Ownership” of and shall be deemed to “beneficially own” any
securities:

     

    (i)     
      which such Person or any of such Person’s
Affiliates or Associates is deemed to beneficially own, directly or indirectly,
within the meaning of Rule l3d-3 of the General Rules and Regulations under the
Exchange Act as in effect on the date hereof;

     

    (ii)           which
such Person or any of such Person’s Affiliates or Associates has (A) the right
to acquire (whether such right is exercisable immediately or only after the
passage of time) pursuant to any agreement, arrangement or understanding (other
than customary agreements with and between underwriters and selling group
members with respect to a bona fide public offering of securities), or upon the
exercise of conversion rights, exchange rights, rights, warrants or options, or
otherwise; provided, however, that a
Person shall not be deemed the Beneficial Owner of, or to beneficially own, (w)
securities tendered pursuant to a tender or exchange offer made by or on behalf
of such Person or any of such Person’s Affiliates or Associates until such
tendered securities are accepted for purchase, (x) securities which such Person
has a right to acquire upon the exercise of Rights at any time prior to the time
that any Person becomes an Acquiring Person, (y) securities issuable upon
the exercise of Rights from and after the time that any Person becomes an
Acquiring Person if such Rights were acquired by such Person or any of such
Person’s Affiliates or Associates prior to the Distribution Date or pursuant to
Section 3(a) or Section 22 hereof (“Original Rights”) or pursuant to Section
11(i) or Section 11(n) with respect to an adjustment to Original Rights, or (z)
securities which such Person or any of such Person’s Affiliates or Associates
may acquire, does or do acquire or may be deemed to have the right to acquire,
pursuant to any merger or other acquisition agreement between the Company and
such Person (or one or more of such Person’s Affiliates or Associates) if such
agreement has been approved by the Board of Directors prior to such Person’s
becoming an Acquiring Person; or (B) the right to vote pursuant to any
agreement, arrangement or understanding; provided, further, that a
Person shall not be deemed the Beneficial Owner of, or to beneficially own, any
security by reason of such agreement, arrangement or understanding if the
agreement, arrangement or understanding to vote such security (1) arises solely
from a revocable proxy or consent given to such Person in response to a public
proxy or consent solicitation made pursuant to, and in accordance with, the
applicable rules and regulations promulgated under the Exchange Act and (2) is
not also then reportable on Schedule 13D under the Exchange Act (or any
comparable or successor report); or

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (iii)          which
are beneficially owned, directly or indirectly, by any other Person and with
respect to which such Person or any of such Person’s Affiliates or Associates
has any agreement, arrangement or understanding (other than customary agreements
with and between underwriters and selling group members with respect to a bona
fide public offering of securities) for the purpose of acquiring, holding,
voting (except to the extent contemplated by the proviso to Section 1(d)(ii)(B))
or disposing of such securities of the Company;

     

    provided, however, that no
Person who is an officer, director or employee of an Exempt Person shall be
deemed, solely by reason of such Person’s status or authority as such, to be the
“Beneficial Owner” of, to have “Beneficial Ownership” of or to “beneficially
own” any securities that are “beneficially owned” (as defined in this Section
l(d)), including, without limitation, in a fiduciary capacity, by an Exempt
Person or by any other such officer, director or employee of an Exempt
Person.

     

    (e)           “Book
Entry” shall mean an uncertificated book entry for the Common
Stock.

     

    (f)           “Business
Day” shall mean any day other than a Saturday, a Sunday or a day on which
banking institutions in the State of New York or the city in which the principal
office of the Rights Agent is located are authorized or obligated by law or
executive order to close.

     

    (g)           “Certificate
of Incorporation” shall mean the Restated Certificate of Incorporation of the
Company, as filed with the Secretary of State of the State of Delaware on
November 30, 2006, as the same may be amended and restated from time to
time.

     

    (h)           “Close
of Business” on any given date shall mean 5:00 P.M., New York City time, on such
date; provided,
however, that
if such date is not a Business Day it shall mean 5:00 P.M., New York City time,
on the next succeeding Business Day.

     

    (i)      
     “Common Stock” when used with reference to the
Company shall mean the Common Stock, presently par value $0.0001 per share of
the Company.  “Common Stock” when used with reference to any Person
other than the Company shall mean the common stock (or, in the case of any
entity other than a corporation, the equivalent equity interest) with the
greatest voting power of such other Person or, if such other Person is a
Subsidiary of another Person, the Person or Persons which ultimately control
such first-mentioned Person.

     

    (j)      
     “Common Stock Equivalents” shall have the meaning
set forth in Section 11(a)(iii) hereof.

     

    (k)           “Current
Value” shall have the meaning set forth in Section 11(a)(iii)
hereof.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (l)           “Distribution
Date” shall have the meaning set forth in Section 3 hereof.

     

    (m)          “Equivalent
Preferred Shares” shall have the meaning set forth in Section 11(b)
hereof.

     

    (n)           “Exempt
Person” shall mean the Company or any Subsidiary (as such term is hereinafter
defined) of the Company, in each case including, without limitation, in its
fiduciary capacity, or any employee benefit plan of the Company or of any
Subsidiary of the Company, or any entity or trustee holding (or acting in a
fiduciary capacity in respect of) Common Stock for or pursuant to the terms of
any such plan or for the purpose of funding any such plan or funding other
employee benefits for employees of the Company or of any Subsidiary of the
Company.

     

    (o)           “Exchange
Act” shall have the meaning set forth in Section 1(a) hereof.

     

    (p)           “Exchange
Ratio” shall have the meaning set forth in Section 24 hereof.

     

    (q)           “Expiration
Date” shall have the meaning set forth in Section 7 hereof.

     

    (r)           “Final
Expiration Date” shall have the meaning set forth in Section 7
hereof.

     

    (s)           “Flip-In
Event” shall have the meaning set forth in Section 11(a)(ii)
hereof.

     

    (t)           “NASDAQ”
shall mean The Nasdaq Stock Market.

     

    (u)           “New
York Stock Exchange” shall mean the New York Stock Exchange, Inc.

     

    (v)           “Person”
shall mean any individual, firm, corporation, partnership, limited liability
company, trust or other entity, and shall include any successor (by merger or
otherwise) to such entity.

     

    (w)          “Preferred
Stock” shall mean the Series A Junior Participating Preferred Stock, par value
$0.0001 per share, of the Company having the rights and preferences set forth in
the Form of Certificate of Designation attached to this Agreement as Exhibit
A.

     

    (x)           “Principal
Party” shall have the meaning set forth in Section 13(b)
hereof.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (y)           “Purchase
Price” shall have the meaning set forth in Section 7(b) hereof.

     

    (z)           “Record
Date” shall have the meaning set forth in the recitals hereto.

     

    (aa)         “Redemption
Date” shall have the meaning set forth in Section 7 hereof.

     

    (bb)        “Redemption
Price” shall have the meaning set forth in Section 23 hereof.

     

    (cc)         “Right”
shall have the meaning set forth in the recitals hereto.

     

    (dd)        “Right
Certificate” shall have the meaning set forth in Section 3 hereof.

     

    (ee)         “Rights
Agent” shall have the meaning set forth in the preamble hereto.

     

    (ff)           “Section
11(a)(ii) Trigger Date” shall have the meaning set forth in Section 11(a)(iii)
hereof.

     

    (gg)         “Securities
Act” shall mean the Securities Act of 1933, as amended.

     

    (hh)         “Spread”
shall have the meaning set forth in Section 11(a)(iii) hereof.

     

    (ii)           “Stock
Acquisition Date” shall mean the first date of public announcement (which, for
purposes of this definition, shall include, without limitation, a report filed
pursuant to Section 13(d) of the Exchange Act) by the Company or an Acquiring
Person that an Acquiring Person has become such, or such earlier date as a
majority of the Board of Directors of the Company shall become aware of the
existence of an Acquiring Person.

     

    (jj)           “Stockholder
Approval” shall mean the approval of this Agreement at the 2010 annual meeting
of stockholders of the Company, duly held in accordance with the Certificate of
Incorporation and applicable law, by the affirmative vote of the holders of a
majority of the voting power of the outstanding shares of capital stock of the
Company present, or represented by proxy, and entitled to vote
thereon.

     

    (kk)         “Subsidiary”
of any Person shall mean any corporation or other entity of which securities or
other ownership interests having ordinary voting power sufficient to elect a
majority of the board of directors or other persons performing similar functions
are beneficially owned, directly or indirectly, by such Person, and any
corporation or other entity that is otherwise controlled by such
Person.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (ll)           “Substitution
Period” shall have the meaning set forth in Section 11(a)(iii)
hereof.

     

    (mm)       “Summary
of Rights” shall have the meaning set forth in Section 3 hereof.

     

    (nn)         “Trading
Day” shall have the meaning set forth in Section 11(d)(i) hereof.

     

    (oo)         “Trust”
shall have the meaning set forth in Section 24.

     

    (pp)         “Trust
Agreement” shall have the meaning set forth in Section 24.

     

    Section
2.  Appointment of Rights
Agent.  The Company hereby appoints the Rights Agent to act as
agent for the Company and the holders of the Rights (who, in accordance with
Section 3 hereof, shall prior to the Distribution Date be the holders of Common
Stock) in accordance with the terms and conditions hereof, and the Rights Agent
hereby accepts such appointment.  The Company may from time to time
appoint such co-Rights Agents as it may deem necessary or
desirable.

     

    Section
3.  Issue of
Right Certificates.

     

    (a)           Until
the Close of Business on the earlier of (i) the tenth Business Day after the
Stock Acquisition Date or (ii) the tenth Business Day (or such later date as may
be determined by action of the Board of Directors of the Company prior to such
time as any Person becomes an Acquiring Person) after the date of the
commencement by any Person (other than an Exempt Person) of, or of the first
public announcement of the intention of such Person (other than an Exempt
Person) to commence, a tender or exchange offer the consummation of which would
result in any Person (other than an Exempt Person) having beneficial ownership
or becoming the Beneficial Owner of 15% or more of the shares of Common Stock
then outstanding (the earlier of such dates being herein referred to as the
“Distribution Date”, provided, however, that if
either of such dates occurs after the date of this Agreement and on or prior to
the Record Date, then the Distribution Date shall be the Record Date), (x) the
Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by
the certificates representing the Common Stock registered in the names of the
holders thereof (or by Book Entry shares in respect of such Common Stock) and
not by separate Right Certificates, and (y) the Rights will be transferable only
in connection with the transfer of Common Stock.  As soon as
practicable after the Distribution Date, the Company will prepare and execute,
the Rights Agent will countersign and the Company will send or cause to be sent
(and the Rights Agent will, if requested, send) by first-class, insured,
postage-prepaid mail, to each record holder of Common Stock as of the close of
business on the Distribution Date (other than any Acquiring Person or any
Associate or Affiliate of an Acquiring Person), at the address of such holder
shown on the records of the Company, a Right Certificate, in substantially the
form of Exhibit B hereto (a “Right Certificate”), evidencing one Right (subject
to adjustment as provided herein) for each share of Common Stock so
held.  As of the Distribution Date, the Rights will be evidenced
solely by such Right Certificates.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (b)           On
the Record Date, or as soon as practicable thereafter, the Company will send a
copy of a Summary of Rights to Purchase Shares of Preferred Stock, in
substantially the form of Exhibit C hereto (the “Summary of Rights”), by
first-class, postage-prepaid mail, to each record holder of Common Stock as of
the Close of Business on the Record Date (other than any Acquiring Person or any
Associate or Affiliate of any Acquiring Person), at the address of such holder
shown on the records of the Company.  With respect to certificates
representing Common Stock (or Book Entry shares of Common Stock) outstanding as
of the Record Date, until the Distribution Date, the Rights will be evidenced by
such certificates registered in the names of the holders thereof (or such Book
Entry shares) together with the Summary of Rights.  Until the
Distribution Date (or, if earlier, the Expiration Date), the surrender for
transfer of any certificate representing Common Stock (or any Book Entry shares
of Common Stock) outstanding on the Record Date, with or without a copy of the
Summary of Rights, shall also constitute the transfer of the Rights associated
with the Common Stock represented thereby.

     

    (c)           Rights
shall be issued in respect of all shares of Common Stock issued or disposed of
after the Record Date but prior to the earlier of the Distribution Date and the
Expiration Date, or in certain circumstances provided in Section 22 hereof,
after the Distribution Date.  Certificates issued for Common Stock
after the Record Date but prior to the earlier of the Distribution Date and the
Expiration Date, or in certain circumstances provided in Section 22 hereof,
after the Distribution Date shall have impressed on, printed on, written on or
otherwise affixed to them the following legend:

     

    This
certificate also evidences and entitles the holder hereof to certain Rights as
set forth in a Rights Agreement between Highbury Financial Inc. (the “Company”)
and Continental Stock Transfer & Trust Company, as Rights Agent, dated as of
August 10, 2009 and as amended from time to time (the “Rights Agreement”), the
terms of which are hereby incorporated herein by reference and a copy of which
is on file at the principal executive offices of the Company.  Under
certain circumstances, as set forth in the Rights Agreement, such Rights will be
evidenced by separate certificates and will no longer be evidenced by this
certificate.  The Company will mail to the holder of this certificate
a copy of the Rights Agreement without charge after receipt of a written request
therefor.  Under certain circumstances, as set forth in the Rights
Agreement, Rights owned by or transferred to any Person who is or becomes an
Acquiring Person (as defined in the Rights Agreement) and certain transferees
thereof will become null and void and will no longer be
transferable.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    With
respect to any Book Entry shares of Common Stock, such legend shall be included
in a notice to the record holder of such shares in accordance with applicable
law.  With respect to such certificates containing the foregoing
legend, or any notice of the foregoing legend delivered to holders of Book Entry
shares, until the Distribution Date the Rights associated with the Common Stock
represented by such certificates or Book Entry shares shall be evidenced by such
certificates or Book Entry shares alone, and the surrender for transfer of any
such certificate or Book Entry share, except as otherwise provided herein, shall
also constitute the transfer of the Rights associated with the Common Stock
represented thereby.  In the event that the Company purchases or
otherwise acquires any Common Stock after the Record Date but prior to the
Distribution Date, any Rights associated with such Common Stock shall be deemed
canceled and retired so that the Company shall not be entitled to exercise any
Rights associated with the Common Stock which are no longer
outstanding.

     

    Notwithstanding
this paragraph (c), neither the omission of a legend nor the failure to deliver
the notice of such legend required hereby shall affect the enforceability of any
part of this Agreement or the rights of any holder of the Rights.

     

    Section
4.  Form of
Right Certificates.  The Right Certificates (and the forms of
election to purchase shares and of assignment to be printed on the reverse
thereof) shall be substantially in the form set forth in Exhibit B hereto and
may have such marks of identification or designation and such legends, summaries
or endorsements printed thereon as the Company may deem appropriate and as are
not inconsistent with the provisions of this Agreement, or as may be required to
comply with any applicable law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange or interdealer
quotation system on which the Rights may from time to time be listed or quoted,
or to conform to usage.  Subject to the provisions of this Agreement,
the Right Certificates shall entitle the holders thereof to purchase such number
of one one-thousandths of a share of Preferred Stock as shall be set forth
therein at the Purchase Price, but the number of such one one-thousandths of a
share of Preferred Stock and the Purchase Price shall be subject to adjustment
as provided herein.

     

    Section
5.  Countersignature and
Registration.

     

    (a)           The
Right Certificates shall be executed on behalf of the Company by the President
of the Company, either manually or by facsimile signature, shall have affixed
thereto the Company’s seal or a facsimile thereof and shall be attested by the
Secretary of the Company, either manually or by facsimile
signature.  The Right Certificates shall be manually countersigned by
the Rights Agent and shall not be valid for any purpose unless
countersigned.  In case any officer of the Company who shall have
signed any of the Right Certificates shall cease to be such officer of the
Company before countersignature by the Rights Agent and issuance and delivery by
the Company, such Right Certificates, nevertheless, may be countersigned by the
Rights Agent and issued and delivered by the Company with the same force and
effect as though the Person who signed such Right Certificates had not ceased to
be such officer of the Company; and any Right Certificate may be signed on
behalf of the Company by any Person who, at the actual date of the execution of
such Right Certificate, shall be a proper officer of the Company to sign such
Right Certificate, although at the date of the execution of this Agreement any
such Person was not such an officer.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (b)           Following
the Distribution Date, the Rights Agent will keep or cause to be kept, at an
office or agency designated for such purpose, books for registration and
transfer of the Right Certificates issued hereunder.  Such books shall
show the names and addresses of the respective holders of the Right
Certificates, the number of Rights evidenced on its face by each of the Right
Certificates and the date of each of the Right Certificates.

     

    Section
6.  Transfer, Split Up,
Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or
Stolen Right Certificates.

     

    (a)           Subject
to the provisions of this Agreement, at any time after the Distribution Date and
prior to the Expiration Date, any Right Certificate or Right Certificates may be
transferred, split up, combined or exchanged for another Right Certificate or
Right Certificates, entitling the registered holder to purchase a like number of
one one-thousandths of a share of Preferred Stock as the Right Certificate or
Right Certificates surrendered then entitled such holder to
purchase.  Any registered holder desiring to transfer, split up,
combine or exchange any Right Certificate or Right Certificates shall make such
request in writing delivered to the Rights Agent, and shall surrender the Right
Certificate or Right Certificates to be transferred, split up, combined or
exchanged at the office or agency of the Rights Agent designated for such
purpose.  Thereupon the Rights Agent shall countersign and deliver to
the Person entitled thereto a Right Certificate or Right Certificates, as the
case may be, as so requested.  The Company may require payment of a
sum sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of Right
Certificates.

     

    (b)           Subject
to the provisions of this Agreement, at any time after the Distribution Date and
prior to the Expiration Date, upon receipt by the Company and the Rights Agent
of evidence reasonably satisfactory to them of the loss, theft, destruction or
mutilation of a Right Certificate, and, in case of loss, theft or destruction,
of indemnity or security reasonably satisfactory to them, and, at the Company’s
request, reimbursement to the Company and the Rights Agent of all reasonable
expenses incidental thereto, and upon surrender to the Rights Agent and
cancellation of the Right Certificate if mutilated, the Company will make and
deliver a new Right Certificate of like tenor to the Rights Agent for delivery
to the registered holder in lieu of the Right Certificate so lost, stolen,
destroyed or mutilated.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Section
7.  Exercise
of Rights, Purchase Price; Expiration Date of Rights.

     

    (a)           Except
as otherwise provided herein, the Rights shall become exercisable on the
Distribution Date, and thereafter the registered holder of any Right Certificate
may, subject to Section 11(a)(ii) hereof and except as otherwise provided
herein, exercise the Rights evidenced thereby in whole or in part upon surrender
of the Right Certificate, with the form of election to purchase on the reverse
side thereof duly executed, to the Rights Agent at the office or agency of the
Rights Agent designated for such purpose, together with payment of the aggregate
Purchase Price with respect to the total number of one one-thousandths of a
share of Preferred Stock (or other securities, cash or other assets, as the case
may be) as to which the Rights are exercised, at any time which is both after
the Distribution Date and prior to the time (the “Expiration Date”) that is the
earliest of (i) the Close of Business on August 10, 2019 (the “Final Expiration
Date”), (ii) the time at which the Rights are redeemed as provided in Section 23
hereof (the “Redemption Date”), (iii) the closing of any merger or other
acquisition transaction involving the Company pursuant to an agreement of the
type described in Sections 1(c)(ii)(A)(z) and 13(f) at which time the Rights are
terminated, (iv) the time at which such Rights are exchanged as provided in
Section 24 hereof, or (v) December 31, 2010, if Stockholder
Approval has not been obtained.

     

    (b)           The
Purchase Price shall be initially $20.00 for each one one-thousandth of a share
of Preferred Stock purchasable upon the exercise of a Right.  The
Purchase Price and the number of one one-thousandths of a share of Preferred
Stock or other securities or property to be acquired upon exercise of a Right
shall be subject to adjustment from time to time as provided in Sections 11 and
13 hereof and shall be payable in lawful money of the United States of America
in accordance with paragraph (c) of this Section 7.

     

    (c)           Except
as otherwise provided herein, upon receipt of a Right Certificate representing
exercisable Rights, with the form of election to purchase duly executed,
accompanied by payment of the aggregate Purchase Price for the shares of
Preferred Stock to be purchased and an amount equal to any applicable transfer
tax required to be paid by the holder of such Right Certificate in accordance
with Section 9 hereof, by certified check, cashier’s check or money order
payable to the order of the Company, the Rights Agent shall thereupon promptly
(i) (A) requisition from any transfer agent of the Preferred Stock, or make
available if the Rights Agent is the transfer agent for the Preferred
Stock,  certificates for the number of shares of Preferred Stock to be
purchased, and the Company hereby irrevocably authorizes its transfer agent to
comply with all such requests, or (B) requisition from a depositary agent
appointed by the Company depositary receipts representing interests in such
number of one one-thousandths of a share of Preferred Stock as are to be
purchased (in which case certificates for the Preferred Stock represented by
such receipts shall be deposited by the transfer agent with the depositary
agent), and the Company hereby directs any such depositary agent to comply with
such request, (ii) when appropriate, requisition from the Company the amount of
cash to be paid in lieu of issuance of fractional shares in accordance with
Section 14 hereof, (iii) promptly after receipt of such certificates or
depositary receipts, cause the same to be delivered to or upon the order of the
registered holder of such Right Certificate, registered in such name or names as
may be designated by such holder and (iv) when appropriate, after receipt,
promptly deliver such cash to or upon the order of the registered holder of such
Right Certificate.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (d)           Except
as otherwise provided herein, in case the registered holder of any Right
Certificate shall exercise less than all of the Rights evidenced thereby, a new
Right Certificate evidencing Rights equivalent to the exercisable Rights
remaining unexercised shall be issued by the Rights Agent to the registered
holder of such Right Certificate or to his duly authorized assigns, subject to
the provisions of Section 14 hereof.

     

    (e)           Notwithstanding
anything in this Agreement to the contrary, neither the Rights Agent nor the
Company shall be obligated to undertake any action with respect to a registered
holder of Rights upon the occurrence of any purported transfer or exercise of
Rights pursuant to Section 6 hereof or this Section 7 unless such registered
holder shall have (i) completed and signed the certificate contained in the form
of assignment or form of election to purchase set forth on the reverse side of
the Right Certificate surrendered for such transfer or exercise and (ii)
provided such additional evidence of the identity of the Beneficial Owner (or
former Beneficial Owner) thereof as the Company shall reasonably
request.

     

    Section
8.  Cancellation and Destruction
of Right Certificates.  All Right Certificates surrendered for
the purpose of exercise, transfer, split up, combination or exchange shall, if
surrendered to the Company or to any of its agents, be delivered to the Rights
Agent for cancellation or in canceled form, or, if surrendered to the Rights
Agent, shall be canceled by it, and no Right Certificates shall be issued in
lieu thereof except as expressly permitted by any of the provisions of this
Agreement.  The Company shall deliver to the Rights Agent for
cancellation and retirement, and the Rights Agent shall so cancel and retire,
any other Right Certificate purchased or acquired by the Company otherwise than
upon the exercise thereof.  The Rights Agent shall deliver all
canceled Right Certificates to the Company, or shall, at the written request of
the Company, destroy such canceled Right Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.

     

    Section
9.  Availability of Shares of
Preferred Stock.

     

    (a)           The
Company covenants and agrees that it will cause to be reserved and kept
available out of its authorized and unissued shares of Preferred Stock or any
shares of Preferred Stock held in its treasury, the number of shares of
Preferred Stock that will be sufficient to permit the exercise in full of all
outstanding Rights.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (b)           If,
prior to such time as the Rights become exercisable, the shares of Preferred
Stock issuable upon the exercise of Rights are listed or admitted to trading on
any national securities exchange, the Company shall use its best efforts to
cause, from and after such time as the Rights become exercisable, all shares
reserved for such issuance to be listed or admitted to trading on such exchange
upon official notice of issuance upon such exercise.

     

    (c)           From
and after such time as the Rights become exercisable, the Company shall use its
best efforts, if then necessary to permit the issuance of shares of Preferred
Stock upon the exercise of Rights, to register and qualify such shares of
Preferred Stock under the Securities Act and any applicable state securities or
“Blue Sky” laws (to the extent exemptions therefrom are not available), cause
such registration statement and qualifications to become effective as soon as
possible after such filing and keep such registration and qualifications
effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the earlier of the date as of which the Rights are no
longer exercisable for such securities and the Expiration Date.  The
Company may temporarily suspend, for a period of time not to exceed 90 days, the
exercisability of the Rights in order to prepare and file a registration
statement under the Securities Act and permit it to become
effective.  Upon any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily
suspended, as well as a public announcement at such time as the suspension is no
longer in effect.  Notwithstanding any provision of this Agreement to
the contrary, the Rights shall not be exercisable in any jurisdiction unless the
requisite qualification in such jurisdiction shall have been obtained and until
a registration statement under the Securities Act shall have been declared
effective, unless an exemption therefrom is available.

     

    (d)           The
Company covenants and agrees that it will take all such action as may be
necessary to ensure that all shares of Preferred Stock delivered upon exercise
of Rights shall, at the time of delivery of the certificates therefor (subject
to payment of the Purchase Price), be duly and validly authorized and issued and
fully paid and nonassessable shares.

     

    (e)           The
Company further covenants and agrees that it will pay when due and payable any
and all federal and state transfer taxes and charges which may be payable in
respect of the issuance or delivery of the Right Certificates or of any shares
of Preferred Stock upon the exercise of Rights.  The Company shall
not, however, be required to pay any transfer tax which may be payable in
respect of any transfer or delivery of Right Certificates to a Person other
than, or the issuance or delivery of certificates or depositary receipts for the
Preferred Stock in a name other than that of, the registered holder of the Right
Certificate evidencing Rights surrendered for exercise or to issue or deliver
any certificates or depositary receipts for Preferred Stock upon the exercise of
any Rights until any such tax shall have been paid (any such tax being payable
by that holder of such Right Certificate at the time of surrender) or until it
has been established to the Company’s reasonable satisfaction that no such tax
is due.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Section
10.  Preferred Stock Record
Date.  Each Person in whose name any certificate for Preferred
Stock is issued upon the exercise of Rights shall for all purposes be deemed to
have become the holder of record of the shares of Preferred Stock represented
thereby on, and such certificate shall be dated, the date upon which the Right
Certificate evidencing such Rights was duly surrendered and payment of the
Purchase Price (and any applicable transfer taxes) was made; provided, however, that if the
date of such surrender and payment is a date upon which the Preferred Stock
transfer books of the Company are closed, such Person shall be deemed to have
become the record holder of such shares on, and such certificate shall be dated,
the next succeeding Business Day on which the Preferred Stock transfer books of
the Company are open.  Prior to the exercise of the Rights evidenced
thereby, the holder of a Right Certificate shall not be entitled to any rights
of a holder of Preferred Stock for which the Rights shall be exercisable,
including, without limitation, the right to vote or to receive dividends or
other distributions, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided herein.

     

    Section
11.  Adjustment of Purchase
Price, Number and Kind of Shares and Number of Rights.  The
Purchase Price, the number of shares of Preferred Stock or other securities or
property purchasable upon exercise of each Right and the number of Rights
outstanding are subject to adjustment from time to time as provided in this
Section 11.

     

    (a)           (i)           In
the event the Company shall at any time after the date of this Agreement (A)
declare and pay a dividend on the Preferred Stock payable in shares of Preferred
Stock, (B) subdivide the outstanding Preferred Stock, (C) combine the
outstanding Preferred Stock into a smaller number of shares of Preferred Stock
or (D) issue any shares of its capital stock in a reclassification of the
Preferred Stock (including any such reclassification in connection with a
consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a), the
number and kind of shares of capital stock issuable upon exercise of a Right as
of the record date for such dividend or the effective date of such subdivision,
combination or reclassification shall be proportionately adjusted so that the
holder of any Right exercised after such time shall be entitled to receive the
aggregate number and kind of shares of capital stock which, if such Right had
been exercised immediately prior to such date and at a time when the Preferred
Stock transfer books of the Company were open, the holder would have owned upon
such exercise and been entitled to receive by virtue of such dividend,
subdivision, combination or reclassification.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    (ii)           Subject
to Section 24 of this Agreement, in the event any Person becomes an Acquiring
Person (the first occurrence of such event being referred to hereinafter as the
“Flip-In Event”), then (A) the Purchase Price shall be adjusted to be the
Purchase Price in effect immediately prior to the Flip-In Event multiplied by
the number of one one-thousandths of a share of Preferred Stock for which a
Right was exercisable immediately prior to such Flip-In Event, whether or not
such Right was then exercisable, and (B) each holder of a Right, except as
otherwise provided in this Section 11(a)(ii) and Section 11(a)(iii) hereof,
shall thereafter have the right to receive, upon exercise thereof at a price
equal to the Purchase Price (as so adjusted), in accordance with the terms of
this Agreement and in lieu of shares of Preferred Stock, such number of shares
of Common Stock as shall equal the result obtained by dividing the Purchase
Price (as so adjusted) by 50% of the current per share market price of the
Common Stock (determined pursuant to Section 11(d) hereof) on the date of such
Flip-In Event; provided, however, that the
Purchase Price (as so adjusted) and the number of shares of Common Stock so
receivable upon exercise of a Right shall, following the Flip-In Event, be
subject to further adjustment as appropriate in accordance with Section 11(f)
hereof.  Notwithstanding anything in this Agreement to the contrary,
however, from and after the Flip-In Event, any Rights that are beneficially
owned by (x) any Acquiring Person (or any Affiliate or Associate of any
Acquiring Person), (y) a transferee of any Acquiring Person (or any such
Affiliate or Associate) who becomes a transferee after the Flip-In Event or (z)
a transferee of any Acquiring Person (or any such Affiliate or Associate) who
became a transferee prior to or concurrently with the Flip-In Event pursuant to
either (I) a transfer from the Acquiring Person to holders of its equity
securities or to any Person with whom it has any continuing agreement,
arrangement or understanding regarding the transferred Rights or (II) a
transfer which the Board of Directors of the Company has determined is part of a
plan, arrangement or understanding which has the purpose or effect of avoiding
the provisions of this paragraph, and subsequent transferees of such Persons,
shall be void without any further action and any holder of such Rights shall
thereafter have no rights whatsoever with respect to such Rights under any
provision of this Agreement.  The Company shall use all reasonable
efforts to ensure that the provisions of this Section 11(a)(ii) are complied
with, but shall have no liability to any holder of Right Certificates or other
Person as a result of its failure to make any determinations with respect to an
Acquiring Person or its Affiliates, Associates or transferees
hereunder.  From and after the Flip-In Event, no Right Certificate
shall be issued pursuant to Section 3 or Section 6 hereof that represents Rights
that are or have become void pursuant to the provisions of this paragraph, and
any Right Certificate delivered to the Rights Agent that represents Rights that
are or have become void pursuant to the provisions of this paragraph shall be
canceled.  From and after the occurrence of an event specified in
Section 13(a) hereof, any Rights that theretofore have not been exercised
pursuant to this Section 11(a)(ii) shall thereafter be exercisable only in
accordance with Section 13 and not pursuant to this Section
11(a)(ii).

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    (iii)           The
Company may at its option substitute for a share of Common Stock issuable upon
the exercise of Rights in accordance with the foregoing subparagraph (ii) a
number of shares of preferred stock or fraction thereof such that the current
per share market price of one share of preferred stock multiplied by such number
or fraction is equal to the current per share market price of one share of
Common Stock.  In the event that there shall not be sufficient shares
of Common Stock issued but not outstanding or authorized but unissued to permit
the exercise in full of the Rights in accordance with the foregoing subparagraph
(ii), the Board of Directors of the Company shall, with respect to such
deficiency, to the extent permitted by applicable law and any material
agreements then in effect to which the Company is a party, (A) determine the
excess (such excess, the “Spread”) of (1) the value of the shares of Common
Stock issuable upon the exercise of a Right in accordance with the foregoing
subparagraph (ii) (the “Current Value”) over (2) the Purchase Price
(as adjusted in accordance with the foregoing subparagraph (ii)), and (B) with
respect to each Right (other than Rights which have become void pursuant to the
foregoing subparagraph (ii)), make adequate provision to substitute for the
shares of Common Stock issuable in accordance with the foregoing subparagraph
(ii) upon exercise of the Right and payment of the Purchase Price (as adjusted
in accordance therewith), (1) cash, (2) a reduction in such Purchase Price,
(3) shares of preferred stock or other equity securities of the Company
(including, without limitation, shares or fractions of shares of preferred stock
which, by virtue of having dividend, voting and liquidation rights substantially
comparable to those of the shares of Common Stock are deemed in good faith by
the Board of Directors of the Company to have substantially the same value as
the shares of Common Stock (such shares of preferred stock and shares or
fractions of shares of preferred stock are hereinafter referred to as “Common
Stock Equivalents”)), (4) debt securities of the Company, (5) other assets, or
(6) any combination of the foregoing, having a value which, when added to the
value of the shares of Common Stock issued upon exercise of such Right, shall
have an aggregate value equal to the Current Value (less the amount of any
reduction in such Purchase Price), where such aggregate value has been
determined by the Board of Directors of the Company upon the advice of a
nationally recognized investment banking firm selected in good faith by the
Board of Directors of the Company; provided, however, that if the
Company shall not make adequate provision to deliver value pursuant to clause
(B) above within 30 days following the Flip-In Event (the date of the Flip-In
Event being the “Section 11(a)(ii) Trigger Date”), then the Company shall be
obligated to deliver, to the extent permitted by applicable law and any material
agreements then in effect to which the Company is a party, upon the surrender
for exercise of a Right and without requiring payment of such Purchase Price,
shares of Common Stock (to the extent available), and then, if necessary, such
number or fractions of shares of preferred stock (to the extent available) and
then, if necessary, cash, which shares and/or cash have an aggregate value equal
to the Spread.  If, upon the occurrence of the Flip-In Event, the
Board of Directors of the Company shall determine in good faith that it is
likely that sufficient additional shares of Common Stock could be authorized for
issuance upon exercise in full of the Rights, then, if the Board of Directors of
the Company so elects, the 30 day period set forth above may be extended to the
extent necessary, but not more than 90 days after the Section 11(a)(ii) Trigger
Date, in order that the Company may seek stockholder approval for the
authorization of such additional shares (such 30 day period, as it may be
extended, is herein called the “Substitution Period”).  To the extent
that the Company determines that some action need be taken pursuant to the
second and/or third sentence of this Section 11(a)(iii), the Company (x) shall
provide, subject to Section 11(a)(ii) hereof and the last sentence of this
Section 11(a)(iii) hereof, that such action shall apply uniformly to all
outstanding Rights and (y) may suspend the exercisability of the Rights until
the expiration of the Substitution Period in order to seek any authorization of
additional shares and/or to decide the appropriate form of distribution to be
made pursuant to such second sentence and to determine the value
thereof.  In the event of any such suspension, the Company shall issue
a public announcement stating that the exercisability of the Rights has been
temporarily suspended, as well as a public announcement at such time as the
suspension is no longer in effect.  For purposes of this Section
11(a)(iii), the per share value of the shares of Common Stock shall be the
current per share market price (as determined pursuant to Section 11(d)(i))
on the Section 11(a)(ii) Trigger Date and the per share or fractional value of
any “Common Stock Equivalent” shall be deemed to equal the current per share
market price of the Common Stock.  The Board of Directors of the
Company may, but shall not be required to, establish procedures to allocate the
right to receive shares of Common Stock upon the exercise of the Rights among
the holders of Rights pursuant to this Section 11(a)(iii).

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    (b)           In
case the Company shall fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Stock entitling them (for a period expiring
within 45 calendar days after such record date) to subscribe for or purchase
Preferred Stock (or shares having the same rights, privileges and preferences as
the Preferred Stock (“Equivalent Preferred Shares”)) or securities convertible
into Preferred Stock or Equivalent Preferred Shares at a price per share of
Preferred Stock or Equivalent Preferred Shares (or having a conversion price per
share, if a security convertible into shares of Preferred Stock or Equivalent
Preferred Shares) less than the then current per share market price of the
Preferred Stock (determined pursuant to Section 11(d) hereof) on such record
date, the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the number of shares
of Preferred Stock and Equivalent Preferred Shares outstanding on such record
date plus the number of shares of Preferred Stock and Equivalent Preferred
Shares which the aggregate offering price of the total number of shares of
Preferred Stock and/or Equivalent Preferred Shares so to be offered (and/or the
aggregate initial conversion price of the convertible securities so to be
offered) would purchase at such current market price, and the denominator of
which shall be the number of shares of Preferred Stock and Equivalent Preferred
Shares outstanding on such record date plus the number of additional shares of
Preferred Stock and/or Equivalent Preferred Shares to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially convertible); provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less
than the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of one Right.  In case such subscription price
may be paid in a consideration part or all of which shall be in a form other
than cash, the value of such consideration shall be as determined in good faith
by the Board of Directors of the Company, whose determination shall be described
in a statement filed with the Rights Agent.  Shares of Preferred Stock
and Equivalent Preferred Shares owned by or held for the account of the Company
shall not be deemed outstanding for the purpose of any such
computation.  Such adjustment shall be made successively whenever such
a record date is fixed; and in the event that such rights, options or warrants
are not so issued, the Purchase Price shall be adjusted to be the Purchase Price
which would then be in effect if such record date had not been
fixed.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    (c)           In
case the Company shall fix a record date for the making of a distribution to all
holders of the Preferred Stock (including any such distribution made in
connection with a consolidation or merger in which the Company is the continuing
or surviving corporation) of evidences of indebtedness or assets (other than a
regular quarterly cash dividend or a dividend payable in Preferred Stock) or
subscription rights or warrants (excluding those referred to in Section 11(b)
hereof), the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the then current per
share market price of the Preferred Stock (determined pursuant to
Section 11(d) hereof) on such record date, less the fair market value (as
determined in good faith by the Board of Directors of the Company whose
determination shall be described in a statement filed with the Rights Agent) of
the portion of the assets or evidences of indebtedness so to be distributed or
of such subscription rights or warrants applicable to one share of Preferred
Stock, and the denominator of which shall be such current per share market price
(determined pursuant to Section 11(d) hereof) of the Preferred Stock; provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less
than the aggregate par value of the shares of capital stock of the Company to be
issued upon exercise of one Right.  Such adjustments shall be made
successively whenever such a record date is fixed; and in the event that such
distribution is not so made, the Purchase Price shall again be adjusted to be
the Purchase Price which would then be in effect if such record date had not
been fixed.

     

    (d)           (i)           Except
as otherwise provided herein, for the purpose of any computation hereunder, the
“current per share market price” of any security (a “Security” for the purpose
of this Section 11(d)(i)) on any date shall be deemed to be the average of the
daily closing prices per share of such Security for the 30 consecutive Trading
Days (as such term is hereinafter defined) immediately prior to such date; provided, however, that in the
event that the current per share market price of the Security is determined
during a period following the announcement by the issuer of such Security of (A)
a dividend or distribution on such Security payable in shares of such Security
or securities convertible into such shares, or (B) any subdivision, combination
or reclassification of such Security, and prior to the expiration of 30 Trading
Days after the ex-dividend date for such dividend or distribution, or the record
date for such subdivision, combination or reclassification, then, and in each
such case, the current per share market price shall be appropriately adjusted to
reflect the current market price per share equivalent of such
Security.  The closing price for each day shall be the last sale
price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as
reported by the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the New York Stock Exchange or
NASDAQ or, if the Security is not listed or admitted to trading on the New York
Stock Exchange or NASDAQ, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to trading or,
if the Security is not listed on a national securities exchange, the last quoted
price or, if not so quoted, the average of the high and low asked prices in the
over-the-counter market as reported by any system then in use, or, if not so
quoted, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Security selected by the Board
of Directors of the Company.  The term “Trading Day” shall mean a day
on which the principal national securities exchange on which the Security is
listed or admitted to trading is open for the transaction of business or, if the
Security is not listed or admitted to trading on any national securities
exchange, a Business Day.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

     

    (ii)           For
the purpose of any computation hereunder, if the Preferred Stock is publicly
traded, the “current per share market price” of the Preferred Stock shall be
determined in accordance with the method set forth in Section
11(d)(i).  If the Preferred Stock is not publicly traded but the
Common Stock is publicly traded, the “current per share market price” of the
Preferred Stock shall be conclusively deemed to be the current per share market
price of the Common Stock as determined pursuant to Section 11(d)(i) multiplied
by the then applicable Adjustment Number (as defined in and determined in
accordance with the Certificate of Designation for the Preferred
Stock).  If neither the Common Stock nor the Preferred Stock is
publicly traded, “current per share market price” shall mean the fair value per
share as determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a statement filed with the Rights
Agent.

     

    (e)           No
adjustment in the Purchase Price shall be required unless such adjustment would
require an increase or decrease of at least one percent in the Purchase Price;
provided, however, that any
adjustments which by reason of this Section 11(e) are not required to be made
shall be carried forward and taken into account in any subsequent
adjustment.  All calculations under this Section 11 shall be made to
the nearest cent or to the nearest one hundred-thousandth of a share of
Preferred Stock or one-hundredth of a share of Common Stock or other share or
security as the case may be.  Notwithstanding the first sentence of
this Section 11(e), any adjustment required by this Section 11 shall be made no
later than the earlier of (i) three years from the date of the transaction which
requires such adjustment or (ii) the Expiration Date.

     

    (f)           If
as a result of an adjustment made pursuant to Section 11(a) hereof, the holder
of any Right thereafter exercised shall become entitled to receive any shares of
capital stock of the Company other than the Preferred Stock, thereafter the
Purchase Price and the number of such other shares so receivable upon exercise
of a Right shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions with respect to the
Preferred Stock contained in Sections 11(a), 11(b), 11(c), 11(e), 11(h), 11(i)
and 11(m) hereof, as applicable, and the provisions of Sections 7, 9, 10, 13 and
14 hereof with respect to the Preferred Stock shall apply on like terms to any
such other shares.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    

    (g)           All
Rights originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted
Purchase Price, the number of one one-thousandths of a share of Preferred Stock
purchasable from time to time hereunder upon exercise of the Rights, all subject
to further adjustment as provided herein.

     

    (h)    
      Unless the Company shall have exercised its
election as provided in Section 11(i), upon each adjustment of the Purchase
Price as a result of the calculations made in Sections 11(b) and 11(c), each
Right outstanding immediately prior to the making of such adjustment shall
thereafter evidence the right to purchase, at the adjusted Purchase Price, that
number of one one-thousandths of a share of Preferred Stock (calculated to the
nearest one hundred-thousandth of a share of Preferred Stock) obtained by (i)
multiplying (x) the number of one one-thousandths of a share purchasable upon
the exercise of a Right immediately prior to such adjustment by (y) the Purchase
Price in effect immediately prior to such adjustment and (ii) dividing the
product so obtained by the Purchase Price in effect immediately after such
adjustment.

     

    (i)       
    The Company may elect on or after the date of any
adjustment of the Purchase Price pursuant to Sections 11(b) or 11(c) hereof to
adjust the number of Rights, in substitution for any adjustment in the number of
one one-thousandths of a share of Preferred Stock purchasable upon the exercise
of a Right.  Each of the Rights outstanding after such adjustment of
the number of Rights shall be exercisable for the number of one one-thousandths
of a share of Preferred Stock for which a Right was exercisable immediately
prior to such adjustment.  Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one-hundredth) obtained by dividing the Purchase
Price in effect immediately prior to adjustment of the Purchase Price by the
Purchase Price in effect immediately after adjustment of the Purchase
Price.  The Company shall make a public announcement of its election
to adjust the number of Rights, indicating the record date for the adjustment,
and, if known at the time, the amount of the adjustment to be
made.  Such record date may be the date on which the Purchase Price is
adjusted or any day thereafter, but, if the Right Certificates have been issued,
shall be at least 10 days later than the date of the public
announcement.  If Right Certificates have been issued, upon each
adjustment of the number of Rights pursuant to this Section 11(i), the Company
may, as promptly as practicable, cause to be distributed to holders of record of
Right Certificates on such record date Right Certificates evidencing, subject to
Section 14 hereof, the additional Rights to which such holders shall be entitled
as a result of such adjustment, or, at the option of the Company, shall cause to
be distributed to such holders of record in substitution and replacement for the
Right Certificates held by such holders prior to the date of adjustment, and
upon surrender thereof, if required by the Company, new Right Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment.  Right Certificates so to be distributed shall be issued,
executed and countersigned in the manner provided for herein and shall be
registered in the names of the holders of record of Right Certificates on the
record date specified in the public announcement.

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    (j)       
    Irrespective of any adjustment or change in the Purchase
Price or the number of one one-thousandths of a share of Preferred Stock
issuable upon the exercise of a Right, the Right Certificates theretofore and
thereafter issued may continue to express the Purchase Price and the number of
one one-thousandths of a share of Preferred Stock which were expressed in the
initial Right Certificates issued hereunder.

     

    (k)           Before
taking any action that would cause an adjustment reducing the Purchase Price
below the then par value, if any, of the fraction of Preferred Stock or other
shares of capital stock issuable upon exercise of a Right, the Company shall
take any corporate action which may, in the opinion of its counsel, be necessary
in order that the Company may validly and legally issue fully paid and
nonassessable shares of Preferred Stock or other such shares at such adjusted
Purchase Price.

     

    (l)       
    In any case in which this Section 11 shall require that
an adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event issuing to the holder of any Right exercised after such record date the
Preferred Stock and other capital stock or securities of the Company, if any,
issuable upon such exercise over and above the Preferred Stock and other capital
stock or securities of the Company, if any, issuable upon such exercise on the
basis of the Purchase Price in effect prior to such adjustment; provided, however, that the
Company shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder’s right to receive such additional shares upon the
occurrence of the event requiring such adjustment.

     

    (m)           Anything
in this Section 11 to the contrary notwithstanding, the Company shall be
entitled to make such adjustments in the Purchase Price, in addition to those
adjustments expressly required by this Section 11, as and to the extent that it
in its sole discretion shall determine to be advisable in order that any
consolidation or subdivision of the Preferred Stock, issuance wholly for cash of
any shares of Preferred Stock at less than the current market price, issuance
wholly for cash of Preferred Stock or securities which by their terms are
convertible into or exchangeable for Preferred Stock, dividends on Preferred
Stock payable in shares of Preferred Stock or issuance of rights, options or
warrants referred to hereinabove in Section 11(b), hereafter made by the Company
to holders of its Preferred Stock shall not be taxable to such
stockholders.

     

    (n)           Anything
in this Agreement to the contrary notwithstanding, in the event that at any time
after the date of this Agreement and prior to the Distribution Date, the Company
shall (i) declare and pay any dividend on the Common Stock payable in Common
Stock, or (ii) effect a subdivision, combination or consolidation of the Common
Stock (by reclassification or otherwise than by payment of a dividend payable in
Common Stock) into a greater or lesser number of shares of Common Stock, then,
in each such case, the number of Rights associated with each share of Common
Stock then outstanding, or issued or delivered thereafter, shall be
proportionately adjusted so that the number of Rights thereafter associated with
each share of Common Stock following any such event shall equal the result
obtained by multiplying the number of Rights associated with each share of
Common Stock immediately prior to such event by a fraction the numerator of
which shall be the total number of shares of Common Stock outstanding
immediately prior to the occurrence of the event and the denominator of which
shall be the total number of shares of Common Stock outstanding immediately
following the occurrence of such event.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    

    (o)           The
Company agrees that, after the earlier of the Distribution Date or the Stock
Acquisition Date, it will not, except as permitted by Sections 23, 24 or 27
hereof, take (or permit any Subsidiary to take) any action if at the time such
action is taken it is reasonably foreseeable that such action will diminish
substantially or eliminate the benefits intended to be afforded by the
Rights.

     

    Section
12.  Certificate of Adjusted
Purchase Price or Number of Shares.  Whenever an adjustment is
made as provided in Section 11 or 13 hereof, the Company shall promptly (a)
prepare a certificate setting forth such adjustment, and a brief statement of
the facts accounting for such adjustment, (b) file with the Rights Agent and
with each transfer agent for the Common Stock and the Preferred Stock a copy of
such certificate and (c) mail a brief summary thereof to each holder of a Right
Certificate in accordance with Section 25 hereof (if so required under Section
25 hereof).  The Rights Agent shall be fully protected in relying on
any such certificate and on any adjustment therein contained and shall not be
deemed to have knowledge of any such adjustment unless and until it shall have
received such certificate.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    

    Section
13.  Consolidation, Merger or
Sale or Transfer of Assets or Earning Power.

     

    (a)           In
the event, directly or indirectly, at any time after the Flip-In Event
(i) the Company shall consolidate with or shall merge into any other
Person, (ii) any Person shall merge with and into the Company and the Company
shall be the continuing or surviving corporation of such merger and, in
connection with such merger, all or part of the Common Stock shall be changed
into or exchanged for stock or other securities of any other Person (or of the
Company) or cash or any other property, or (iii) the Company shall sell or
otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise
transfer), in one or more transactions, assets or earning power aggregating 50%
or more of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to any other Person (other than the Company or one or more
wholly-owned Subsidiaries of the Company), then upon the first occurrence of
such event, proper provision shall be made so that: (A) each holder of a Right
(other than Rights which have become void pursuant to Section 11(a)(ii) hereof)
shall thereafter have the right to receive, upon the exercise thereof at the
Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii)
hereof), in accordance with the terms of this Agreement and in lieu of shares of
Preferred Stock or Common Stock of the Company, such number of validly
authorized and issued, fully paid, non-assessable and freely tradeable shares of
Common Stock of the Principal Party (as such term is hereinafter defined), not
subject to any liens, encumbrances, rights of first refusal or other adverse
claims, as shall equal the result obtained by dividing the Purchase Price (as
theretofore adjusted in accordance with Section 11(a)(ii) hereof) by 50% of the
current per share market price of the Common Stock of such Principal Party
(determined pursuant to Section 11(d) hereof) on the date of consummation of
such consolidation, merger, sale or transfer; provided, however, that the
Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii)
hereof) and the number of shares of Common Stock of such Principal Party so
receivable upon exercise of a Right shall be subject to further adjustment as
appropriate in accordance with Section 11(f) hereof to reflect any events
occurring in respect of the Common Stock of such Principal Party after the
occurrence of such consolidation, merger, sale or transfer; (B) such Principal
Party shall thereafter be liable for, and shall assume, by virtue of such
consolidation, merger, sale or transfer, all the obligations and duties of the
Company pursuant to this Agreement; (C) the term “Company” shall thereafter be
deemed to refer to such Principal Party; and (D) such Principal Party shall take
such steps (including, but not limited to, the reservation of a sufficient
number of its shares of Common Stock in accordance with Section 9 hereof) in
connection with such consummation of any such transaction as may be necessary to
assure that the provisions hereof shall thereafter be applicable, as nearly as
reasonably may be, in relation to the shares of its Common Stock thereafter
deliverable upon the exercise of the Rights; provided that, upon the subsequent
occurrence of any consolidation, merger, sale or transfer of assets or other
extraordinary transaction in respect of such Principal Party, each holder of a
Right shall thereupon be entitled to receive, upon exercise of a Right and
payment of the Purchase Price as provided in this Section 13(a), such cash,
shares, rights, warrants and other property which such holder would have been
entitled to receive had such holder, at the time of such transaction, owned the
Common Stock of the Principal Party receivable upon the exercise of a Right
pursuant to this Section 13(a), and such Principal Party shall take such steps
(including, but not limited to, reservation of shares of stock) as may be
necessary to permit the subsequent exercise of the Rights in accordance with the
terms hereof for such cash, shares, rights, warrants and other
property.

     

    (b)           “Principal
Party” shall mean:

     

    (i)           in
the case of any transaction described in (i) or (ii) of the first sentence of
Section 13(a) hereof: (A) the Person that is the issuer of the securities into
which the shares of Common Stock are converted in such merger or consolidation,
or, if there is more than one such issuer, the issuer the shares of Common Stock
of which have the greatest aggregate market value of shares outstanding, or (B)
if no securities are so issued, (x) the Person that is the other party to the
merger, if such Person survives said merger, or, if there is more than one such
Person, the Person the shares of Common Stock of which have the greatest
aggregate market value of shares outstanding or (y) if the Person that is the
other party to the merger does not survive the merger, the Person that does
survive the merger (including the Company if it survives) or (z) the Person
resulting from the consolidation; and

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    (ii)           in
the case of any transaction described in (iii) of the first sentence of Section
13(a) hereof, the Person that is the party receiving the greatest portion of the
assets or earning power transferred pursuant to such transaction or
transactions, or, if each Person that is a party to such transaction or
transactions receives the same portion of the assets or earning power so
transferred or if the Person receiving the greatest portion of the assets or
earning power cannot be determined, whichever of such Persons is the issuer of
Common Stock having the greatest aggregate market value of shares
outstanding;

     

    provided, however, that in any
such case described in the foregoing clause (b)(i) or (b)(ii), if the Common
Stock of such Person is not at such time or has not been continuously over the
preceding 12-month period registered under Section 12 of the Exchange Act, then
(1) if such Person is a direct or indirect Subsidiary of another Person the
Common Stock of which is and has been so registered, the term “Principal Party”
shall refer to such other Person, or (2) if such Person is a Subsidiary,
directly or indirectly, of more than one Person, the Common Stock of all of
which is and has been so registered, the term “Principal Party” shall refer to
whichever of such Persons is the issuer of Common Stock having the greatest
aggregate market value of shares outstanding, or (3) if such Person is owned,
directly or indirectly, by a joint venture formed by two or more Persons that
are not owned, directly or indirectly, by the same Person, the rules set forth
in clauses (1) and (2) above shall apply to each of the owners having an
interest in the venture as if the Person owned by the joint venture was a
Subsidiary of both or all of such joint venturers, and the Principal Party in
each such case shall bear the obligations set forth in this Section 13 in the
same ratio as its interest in such Person bears to the total of such
interests.

     

    (c)           The
Company shall not consummate any consolidation, merger, sale or transfer
referred to in Section 13(a) hereof unless prior thereto the Company and the
Principal Party involved therein shall have executed and delivered to the Rights
Agent an agreement confirming that the requirements of Sections 13(a) and (b)
hereof shall promptly be performed in accordance with their terms and that such
consolidation, merger, sale or transfer of assets shall not result in a default
by the Principal Party under this Agreement as the same shall have been assumed
by the Principal Party pursuant to Sections 13(a) and (b) hereof and providing
that, as soon as practicable after executing such agreement pursuant to this
Section 13, the Principal Party will:

     

    (i)           prepare
and file a registration statement under the Securities Act, if necessary, with
respect to the Rights and the securities purchasable upon exercise of the Rights
on an appropriate form, use its best efforts to cause such registration
statement to become effective as soon as practicable after such filing and use
its best efforts to cause such registration statement to remain effective (with
a prospectus at all times meeting the requirements of the Securities Act) until
the Expiration Date and similarly comply with applicable state securities
laws;

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    (ii)           use
its best efforts, if the Common Stock of the Principal Party shall be listed or
admitted to trading on the New York Stock Exchange, NASDAQ or on another
national securities exchange, to list or admit to trading (or continue the
listing of) the Rights and the securities purchasable upon exercise of the
Rights on the New York Stock Exchange or such securities exchange, or, if the
Common Stock of the Principal Party shall not be listed or admitted to trading
on the New York Stock Exchange, NASDAQ or a national securities exchange, to
cause the Rights and the securities receivable upon exercise of the Rights to be
authorized for quotation on any other system then in use;

     

    (iii)          deliver
to holders of the Rights historical financial statements for the Principal Party
which comply in all respects with the requirements for registration on Form 10
(or any successor form) under the Exchange Act; and

     

    (iv)         obtain
waivers of any rights of first refusal or preemptive rights in respect of the
Common Stock of the Principal Party subject to purchase upon exercise of
outstanding Rights.

     

    (d)           In
case the Principal Party has a provision in any of its authorized securities or
in its certificate of incorporation or by-laws or other instrument governing its
affairs, which provision would have the effect of (i) causing such Principal
Party to issue (other than to holders of Rights pursuant to this Section 13), in
connection with, or as a consequence of, the consummation of a transaction
referred to in this Section 13, shares of Common Stock or Common Stock
Equivalents of such Principal Party at less than the then current market price
per share thereof (determined pursuant to Section 11(d) hereof) or securities
exercisable for, or convertible into, Common Stock or Common Stock Equivalents
of such Principal Party at less than such then current market price, or
(ii) providing for any special payment, tax or similar provision in
connection with the issuance of the Common Stock of such Principal Party
pursuant to the provisions of Section 13, then, in such event, the Company
hereby agrees with each holder of Rights that it shall not consummate any such
transaction unless prior thereto the Company and such Principal Party shall have
executed and delivered to the Rights Agent a supplemental agreement providing
that the provision in question of such Principal Party shall have been canceled,
waived or amended, or that the authorized securities shall be redeemed, so that
the applicable provision will have no effect in connection with, or as a
consequence of, the consummation of the proposed transaction.

     

    (e)           The
Company covenants and agrees that it shall not, at any time after the Flip-In
Event, enter into any transaction of the type described in clauses (i) through
(iii) of Section 13(a) hereof if (i) at the time of or immediately after such
consolidation, merger, sale, transfer or other transaction there are any rights,
warrants or other instruments or securities outstanding or agreements in effect
which would substantially diminish or otherwise eliminate the benefits intended
to be afforded by the Rights, (ii) prior to, simultaneously with or
immediately after such consolidation, merger, sale, transfer or other
transaction, the stockholders of the Person who constitutes, or would
constitute, the Principal Party for purposes of Section 13(b) hereof shall have
received a distribution of Rights previously owned by such Person or any of its
Affiliates or Associates or (iii) the form or nature of organization of the
Principal Party would preclude or limit the exercisability of the
Rights.

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    (f)           Notwithstanding
anything contained herein to the contrary, in the event of any merger or other
acquisition transaction involving the Company pursuant to a merger or other
acquisition agreement between the Company and any Person (or one or more of such
Person’s Affiliates or Associates) which agreement has been approved by the
Board of Directors prior to any Person becoming an Acquiring Person, this
Agreement and the rights of holders of Rights hereunder shall be terminated in
accordance with Section 7(a).

     

    Section
14.  Fractional Rights and
Fractional Shares.

     

    (a)           The
Company shall not be required to issue fractions of Rights (except prior to the
Distribution Date in accordance with Section 11(n) hereof) or to distribute
Right Certificates which evidence fractional Rights.  In lieu of such
fractional Rights, there shall be paid to the registered holders of the Right
Certificates with regard to which such fractional Rights would otherwise be
issuable, an amount in cash equal to the same fraction of the current market
value of a whole Right.  For the purposes of this Section 14(a), the
current market value of a whole Right shall be the closing price of the Rights
for the Trading Day immediately prior to the date on which such fractional
Rights would have been otherwise issuable.  The closing price for any
day shall be the last sale price, regular way, or, in case no such sale takes
place on such day, the average of the closing bid and asked prices, regular way,
in either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York
Stock Exchange or NASDAQ or, if the Rights are not listed or admitted to trading
on the New York Stock Exchange or NASDAQ, as reported in the principal
consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which the Rights are listed or
admitted to trading or, if the Rights are not listed or admitted to trading on
any national securities exchange, the last quoted price or, if not so quoted,
the average of the high bid and low asked prices in the over-the-counter market,
as reported by any system then in use or, if on any such date the Rights are not
quoted by any such organization, the average of the closing bid and asked prices
as furnished by a professional market maker making a market in the Rights
selected by the Board of Directors of the Company.  If on any such
date no such market maker is making a market in the Rights, the fair value of
the Rights on such date as determined in good faith by the Board of Directors of
the Company shall be used.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    (b)           The
Company shall not be required to issue fractions of Preferred Stock (other than
fractions which are integral multiples of one one-thousandth of a share of
Preferred Stock) or to distribute certificates which evidence fractional shares
of Preferred Stock (other than fractions which are integral multiples of one
one-thousandth of a share of Preferred Stock) upon the exercise or exchange of
Rights.  Interests in fractions of Preferred Stock in integral
multiples of one one-thousandth of a share of Preferred Stock may, at the
election of the Company, be evidenced by depositary receipts, pursuant to an
appropriate agreement between the Company and a depositary selected by it;
provided that such agreement shall provide that the holders of such depositary
receipts shall have all the rights, privileges and preferences to which they are
entitled as beneficial owners of the Preferred Stock represented by such
depositary receipts.  In lieu of fractional shares of Preferred Stock
that are not integral multiples of one one-thousandth of a share of Preferred
Stock, the Company shall pay to the registered holders of Right Certificates at
the time such Rights are exercised or exchanged as herein provided an amount in
cash equal to the same fraction of the current market value of a whole share of
Preferred Stock (as determined in accordance with Section 14(a) hereof) for the
Trading Day immediately prior to the date of such exercise or
exchange.

     

    (c)           The
Company shall not be required to issue fractions of shares of Common Stock or to
distribute certificates which evidence fractional shares of Common Stock upon
the exercise or exchange of Rights.  In lieu of such fractional shares
of Common Stock, the Company shall pay to the registered holders of the Right
Certificates with regard to which such fractional shares of Common Stock would
otherwise be issuable an amount in cash equal to the same fraction of the
current market value of a whole share of Common Stock.  For purposes
of this Section 14(c), the current market value of one share of Common Stock for
which a Right is exercisable shall be deemed to be the closing price of one
share of Common Stock (as determined in accordance with Section 11(d)(i)
hereof), for the Trading Day immediately prior to the date of such
exercise.

     

    (d)           The
holder of a Right by the acceptance of the Right expressly waives his right to
receive any fractional Rights or any fractional shares upon exercise or exchange
of a Right (except as provided above).

     

    Section
15.  Rights
of Action.  All rights of action in respect of this Agreement,
excepting the rights of action given to the Rights Agent under Section 18
hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the
Common Stock); and any registered holder of any Right Certificate (or, prior to
the Distribution Date, of the Common Stock), without the consent of the Rights
Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common Stock), on his own behalf and for his own
benefit, may enforce, and may institute and maintain any suit, action or
proceeding against the Company to enforce, or otherwise act in respect of, his
right to exercise the Rights evidenced by such Right Certificate (or, prior to
the Distribution Date, such Common Stock) in the manner provided therein and in
this Agreement.  Without limiting the foregoing or any remedies
available to the holders of Rights, it is specifically acknowledged that the
holders of Rights would not have an adequate remedy at law for any breach of
this Agreement and will be entitled to specific performance of the obligations
under, and injunctive relief against actual or threatened violations of, the
obligations of any Person subject to this Agreement.

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    Section
16.  Agreement of Right
Holders.  Every holder of a Right, by accepting the same,
consents and agrees with the Company and the Rights Agent and with every other
holder of a Right that:

     

    (a)           prior
to the Distribution Date, the Rights will be transferable only in connection
with the transfer of the Common Stock;

     

    (b)           after
the Distribution Date, the Right Certificates are transferable only on the
registry books of the Rights Agent if surrendered at the office or agency of the
Rights Agent designated for such purpose, duly endorsed or accompanied by a
proper instrument of transfer; and

     

    (c)           the
Company and the Rights Agent may deem and treat the Person in whose name the
Right Certificate (or, prior to the Distribution Date, the Common Stock
certificate (or Book Entry shares in respect of Common Stock)) is registered as
the absolute owner thereof and of the Rights evidenced thereby (notwithstanding
any notations of ownership or writing on the Right Certificates or the Common
Stock certificate (or notices provided to holders of Book Entry shares of Common
Stock) made by anyone other than the Company or the Rights Agent) for all
purposes whatsoever, and neither the Company nor the Rights Agent, subject to
Section 7(e) hereof, shall be affected by any notice to the
contrary.

     

    Section
17.  Right
Certificate Holder Not Deemed a Stockholder.  No holder, as
such, of any Right Certificate shall be entitled to vote, receive dividends or
be deemed for any purpose the holder of the Preferred Stock or any other
securities of the Company which may at any time be issuable on the exercise or
exchange of the Rights represented thereby, nor shall anything contained herein
or in any Right Certificate be construed to confer upon the holder of any Right
Certificate, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in this Agreement), or to receive dividends or
subscription rights, or otherwise, until the Rights evidenced by such Right
Certificate shall have been exercised or exchanged in accordance with the
provisions hereof.

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    Section
18.  Concerning the Rights
Agent.

     

    (a)           The
Company agrees to pay to the Rights Agent reasonable compensation for all
services rendered by it hereunder and, from time to time, on demand of the
Rights Agent, its reasonable expenses and counsel fees and other disbursements
incurred in the administration and execution of this Agreement and the exercise
and performance of its duties hereunder.  The Company also agrees to
indemnify the Rights Agent for, and to hold it harmless against, any loss,
liability or expense, incurred without negligence, bad faith or willful
misconduct on the part of the Rights Agent, for anything done or omitted by the
Rights Agent in connection with the acceptance and administration of this
Agreement, including the costs and expenses of defending against any claim of
liability arising therefrom, directly or indirectly.

     

    (b)           The
Rights Agent shall be protected and shall incur no liability for, or in respect
of any action taken, suffered or omitted by it in connection with, its
administration of this Agreement in reliance upon any Right Certificate or
certificate representing the Preferred Stock, the Common Stock or any other
securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement or other paper or document believed by it to be genuine
and to be signed, executed and, where necessary, verified or acknowledged, by
the proper Person or Persons, or otherwise upon the advice of counsel as set
forth in Section 20 hereof.

     

    Section
19.  Merger
or Consolidation or Change of Name of Rights Agent.

     

    (a)           Any
entity into which the Rights Agent or any successor Rights Agent may be merged
or with which it may be consolidated, or any entity resulting from any merger or
consolidation to which the Rights Agent or any successor Rights Agent shall be a
party, or any entity succeeding to the stock transfer or corporate trust powers
of the Rights Agent or any successor Rights Agent, shall be the successor to the
Rights Agent under this Agreement without the execution or filing of any paper
or any further act on the part of any of the parties hereto; provided that such
entity would be eligible for appointment as a successor Rights Agent under the
provisions of Section 21 hereof.  In case at the time such successor
Rights Agent shall succeed to the agency created by this Agreement, any of the
Right Certificates shall have been countersigned but not delivered, any such
successor Rights Agent may adopt the countersignature of the predecessor Rights
Agent and deliver such Right Certificates so countersigned; and in case at that
time any of the Right Certificates shall not have been countersigned, any
successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor Rights Agent or in the name of the successor Rights
Agent; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    (b)           In
case at any time the name of the Rights Agent shall be changed and at such time
any of the Right Certificates shall have been countersigned but not delivered,
the Rights Agent may adopt the countersignature under its prior name and deliver
Right Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, the Rights Agent may countersign
such Right Certificates either in its prior name or in its changed name and in
all such cases such Right Certificates shall have the full force provided in the
Right Certificates and in this Agreement.

     

    Section
20.  Duties
of Rights Agent.  The Rights Agent undertakes the duties and
obligations imposed by this Agreement upon the following terms and conditions,
by all of which the Company and the holders of Right Certificates, by their
acceptance thereof, shall be bound:

     

    (a)           The
Rights Agent may consult with legal counsel (who may be legal counsel for the
Company), and the opinion of such counsel shall be full and complete
authorization and protection to the Rights Agent as to any action taken or
omitted by it in good faith and in accordance with such opinion.

     

    (b)           Whenever
in the performance of its duties under this Agreement the Rights Agent shall
deem it necessary or desirable that any fact or matter be proved or established
by the Company prior to taking or suffering any action hereunder, such fact or
matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a
certificate signed by the President and the Secretary of the Company and
delivered to the Rights Agent; and such certificate shall be full authorization
to the Rights Agent for any action taken or suffered in good faith by it under
the provisions of this Agreement in reliance upon such certificate.

     

    (c)           The
Rights Agent shall be liable hereunder to the Company and any other Person only
for its own gross negligence, bad faith or willful misconduct.

     

    (d)           The
Rights Agent shall not be liable for or by reason of any of the statements of
fact or recitals contained in this Agreement or in the Right Certificates
(except its countersignature thereof) or be required to verify the same, but all
such statements and recitals are and shall be deemed to have been made by the
Company only.

     

    (e)           The
Rights Agent shall not be under any responsibility in respect of the validity of
this Agreement or the execution and delivery hereof (except the due execution
hereof by the Rights Agent) or in respect of the validity or execution of any
Right Certificate (except its countersignature thereof); nor shall it be
responsible for any breach by the Company of any covenant or condition contained
in this Agreement or in any Right Certificate; nor shall it be responsible for
any change in the exercisability of the Rights (including the Rights becoming
void pursuant to Section 11(a)(ii) hereof) or any adjustment in the terms of the
Rights provided for in Sections 3, 11, 13, 23 and 24, or the ascertaining of the
existence of facts that would require any such change or adjustment (except with
respect to the exercise of Rights evidenced by Right Certificates after receipt
of a certificate furnished pursuant to Section 12, describing such change or
adjustment); nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares
of Preferred Stock or other securities to be issued pursuant to this Agreement
or any Right Certificate or as to whether any shares of Preferred Stock or other
securities will, when issued, be validly authorized and issued, fully paid and
nonassessable.

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    (f)           The
Company agrees that it will perform, execute, acknowledge and deliver or cause
to be performed, executed, acknowledged and delivered all such further and other
acts, instruments and assurances as may reasonably be required by the Rights
Agent for the carrying out or performing by the Rights Agent of the provisions
of this Agreement.

     

    (g)           The
Rights Agent is hereby authorized and directed to accept instructions with
respect to the performance of its duties hereunder from any person reasonably
believed by the Rights Agent to be one of the President or the Secretary of the
Company, and to apply to such officers for advice or instructions in connection
with its duties, and it shall not be liable for any action taken or suffered by
it in good faith in accordance with instructions of any such officer or for any
delay in acting while waiting for those instructions.  Any application
by the Rights Agent for written instructions from the Company may, at the option
of the Rights Agent, set forth in writing any action proposed to be taken or
omitted by the Rights Agent under this Agreement and the date on and/or after
which such action shall be taken or such omission shall be
effective.  The Rights Agent shall not be liable for any action taken
by, or omission of, the Rights Agent in accordance with a proposal included in
any such application on or after the date specified in such application (which
date shall not be less than five Business Days after the date any officer of the
Company actually receives such application unless any such officer shall have
consented in writing to an earlier date) unless, prior to taking any such action
(or the effective date in the case of an omission), the Rights Agent shall have
received written instructions in response to such application specifying the
action to be taken or omitted.

     

    (h)           The
Rights Agent and any stockholder, director, officer or employee of the Rights
Agent may buy, sell or deal in any of the Rights or other securities of the
Company or become pecuniarily interested in any transaction in which the Company
may be interested, or contract with or lend money to the Company or otherwise
act as fully and freely as though it were not Rights Agent under this
Agreement.  Nothing herein shall preclude the Rights Agent from acting
in any other capacity for the Company or for any other legal
entity.

     

    (i)           The
Rights Agent may execute and exercise any of the rights or powers hereby vested
in it or perform any duty hereunder either itself or by or through its attorneys
or agents, and the Rights Agent shall not be answerable or accountable for any
act, default, neglect or misconduct of any such attorneys or agents or for any
loss to the Company resulting from any such act, default, neglect or misconduct,
provided reasonable care was exercised in the selection and continued employment
thereof.

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    (j)           If,
with respect to any Right Certificate surrendered to the Rights Agent for
exercise or transfer, the certificate contained in the form of assignment or the
form of election to purchase set forth on the reverse thereof, as the case may
be, has not been completed to certify the holder is not an Acquiring Person (or
an Affiliate or Associate thereof) or a transferee thereof, the Rights Agent
shall not take any further action with respect to such requested exercise or
transfer without first consulting with the Company.

     

    Section
21.  Change
of Rights Agent.  The Rights Agent or any successor Rights
Agent may resign and be discharged from its duties under this Agreement upon
30 days’ notice in writing mailed to the Company and to each transfer agent
of the Common Stock or Preferred Stock by registered or certified mail, and,
following the Distribution Date, to the holders of the Right Certificates by
first-class mail.  The Company may remove the Rights Agent or any
successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights
Agent or successor Rights Agent, as the case may be, and to each transfer agent
of the Common Stock or Preferred Stock by registered or certified mail, and,
following the Distribution Date, to the holders of the Right Certificates by
first-class mail.  If the Rights Agent shall resign or be removed or
shall otherwise become incapable of acting, the Company shall appoint a
successor to the Rights Agent.  If the Company shall fail to make such
appointment within a period of 30 days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Rights Agent or by the holder of a Right Certificate
(who shall, with such notice, submit his Right Certificate for inspection by the
Company), then the registered holder of any Right Certificate may apply to any
court of competent jurisdiction for the appointment of a new Rights
Agent.  Any successor Rights Agent, whether appointed by the Company
or by such a court, shall be a corporation organized and doing business under
the laws of the United States or the laws of any state of the United States or
the District of Columbia, in good standing, having an office in the State of
Delaware or the State of New York, which is authorized under such laws to
exercise corporate trust or stock transfer powers and is subject to supervision
or examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $50
million.  After appointment, the successor Rights Agent shall be
vested with the same powers, rights, duties and responsibilities as if it had
been originally named as Rights Agent without further act or deed; but the
predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the
purpose.  Not later than the effective date of any such appointment
the Company shall file notice thereof in writing with the predecessor Rights
Agent and each transfer agent of the Common Stock or Preferred Stock, and,
following the Distribution Date, mail a notice thereof in writing to the
registered holders of the Right Certificates.  Failure to give any
notice provided for in this Section 21, however, or any defect therein, shall
not affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may
be.

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    Section
22.  Issuance of New Right
Certificates.  Notwithstanding any of the provisions of this
Agreement or of the Rights to the contrary, the Company may, at its option,
issue new Right Certificates evidencing Rights in such forms as may be approved
by its Board of Directors to reflect any adjustment or change in the Purchase
Price and the number or kind or class of shares or other securities or property
purchasable under the Right Certificates made in accordance with the provisions
of this Agreement.  In addition, in connection with the issuance or
sale of Common Stock following the Distribution Date and prior to the Expiration
Date, the Company may with respect to shares of Common Stock so issued or sold
(i) pursuant to the exercise of stock options, (ii) under any employee plan or
arrangement, (iii) upon the exercise, conversion or exchange of securities,
notes or debentures issued by the Company or (iv) pursuant to a contractual
obligation of the Company, in each case existing prior to the Distribution Date,
issue Rights Certificates representing the appropriate number of Rights in
connection with such issuance or sale.

     

    Section
23.  Redemption.

     

    (a)           The
Board of Directors of the Company may, at any time prior to the Flip-In Event,
redeem all but not less than all the then outstanding Rights at a redemption
price of $0.01 per Right, appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring in respect of the Common Stock
after the date hereof (the redemption price being hereinafter referred to as the
“Redemption Price”).  The redemption of the Rights may be made
effective at such time, on such basis and with such conditions as the Board of
Directors of the Company in its sole discretion may establish.  The
Redemption Price shall be payable, at the option of the Company, in cash, shares
of Common Stock or such other form of consideration as the Board of Directors of
the Company shall determine.

     

    (b)           Immediately
upon the action of the Board of Directors of the Company ordering the redemption
of the Rights pursuant to paragraph (a) of this Section 23 (or at such
later time as the Board of Directors of the Company may establish for the
effectiveness of such redemption), and without any further action and without
any notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption
Price.  The Company shall promptly give public notice of any such
redemption; provided, however, that the
failure to give, or any defect in, any such notice shall not affect the validity
of such redemption.  Within 10 days after such action of the
Board of Directors of the Company ordering the redemption of the Rights (or such
later time as the Board of Directors of the Company may establish for the
effectiveness of such redemption), the Company shall mail a notice of redemption
to all the holders of the then outstanding Rights at their last addresses as
they appear upon the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the transfer agent for the Common
Stock.  Any notice which is mailed in the manner herein provided shall
be deemed given, whether or not the holder receives the notice.  Each
such notice of redemption shall state the method by which the payment of the
Redemption Price will be made.

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    Section
24.  Exchange.

     

    (a)           The
Board of Directors of the Company may, at its option, at any time after the
Flip-In Event, exchange all or part of the then outstanding Rights (which shall
not include Rights that have become void pursuant to the provisions of
Section 11(a)(ii) hereof) for shares of Common Stock at an exchange ratio
of one share of Common Stock per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring in respect of the
Common Stock, after the date hereof (such amount per Right being hereinafter
referred to as the “Exchange Ratio”).  Notwithstanding the foregoing,
the Board of Directors of the Company shall not be empowered to effect such
exchange at any time after an Acquiring Person shall have become the Beneficial
Owner of 50% or more of the shares of the Common Stock then
outstanding.  From and after the occurrence of an event specified in
Section 13(a) hereof, any Rights that theretofore have not been exchanged
pursuant to this Section 24(a) shall thereafter be exercisable only in
accordance with Section 13 and may not be exchanged pursuant to this Section
24(a).  The exchange of the Rights by the Board of Directors of the
Company may be made effective at such time, on such basis and with such
conditions as the Board of Directors of the Company in its sole discretion may
establish. Prior to effecting an exchange pursuant to this Section 24, the Board
of Directors may direct the Company to enter into a Trust Agreement in such form
and with such terms as the Board of Directors shall then approve (the “Trust
Agreement”).  If the Board of Directors so directs, the Company shall
enter into the Trust Agreement and shall issue to the trust created by such
agreement (the “Trust”) all of the shares of Common Stock issuable pursuant to
the exchange, and all Persons entitled to receive shares pursuant to the
exchange shall be entitled to receive such shares (and any dividends or
distributions made thereon after the date on which such shares are deposited in
the Trust) only from the Trust and solely upon compliance with the relevant
terms and provisions of the Trust Agreement.

     

    (b)           Immediately
upon the effectiveness of the action of the Board of Directors of the Company
ordering the exchange of any Rights pursuant to paragraph (a) of this Section 24
and without any further action and without any notice, the right to exercise
such Rights shall terminate and the only right thereafter of a holder of such
Rights shall be to receive that number of shares of Common Stock equal to the
number of such Rights held by such holder multiplied by the Exchange
Ratio.  The Company shall promptly give public notice of any such
exchange; provided, however, that the
failure to give, or any defect in, such notice shall not affect the validity of
such exchange.  The Company shall promptly mail a notice of any such
exchange to all of the holders of the Rights so exchanged at their last
addresses as they appear upon the registry books of the Rights
Agent.  Any notice which is mailed in the manner herein provided shall
be deemed given, whether or not the holder receives the notice.  Each
such notice of exchange will state the method by which the exchange of the
shares of Common Stock for Rights will be effected and, in the event of any
partial exchange, the number of Rights which will be exchanged.  Any
partial exchange shall be effected pro rata based on the number of Rights (other
than Rights which have become void pursuant to the provisions of Section
11(a)(ii) hereof) held by each holder of Rights.

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    (c)           The
Company may at its option substitute, and, in the event that there shall not be
sufficient shares of Common Stock issued but not outstanding or authorized but
unissued to permit an exchange of Rights for Common Stock as contemplated in
accordance with this Section 24, the Company shall substitute to the extent of
such insufficiency, for each share of Common Stock that would otherwise be
issuable upon exchange of a Right, a number of shares of Preferred Stock or
fraction thereof (or Equivalent Preferred Shares, as such term is defined in
Section 11(b)) such that the current per share market price (determined pursuant
to Section 11(d) hereof) of one share of Preferred Stock (or Equivalent
Preferred Share) multiplied by such number or fraction is equal to the current
per share market price of one share of Common Stock (determined pursuant to
Section 11(d) hereof) as of the date of such exchange.

     

    Section
25.  Notice
of Certain Events.

     

    (a)           In
case the Company shall at any time after the earlier of the Distribution Date or
the Stock Acquisition Date propose (i) to pay any dividend payable in stock of
any class to the holders of its Preferred Stock or to make any other
distribution to the holders of its Preferred Stock (other than a regular
quarterly cash dividend), (ii) to offer to the holders of its Preferred Stock
rights or warrants to subscribe for or to purchase any additional shares of
Preferred Stock or shares of stock of any class or any other securities, rights
or options, (iii) to effect any reclassification of its Preferred Stock (other
than a reclassification involving only the subdivision or combination of
outstanding Preferred Stock), (iv) to effect the liquidation, dissolution or
winding up of the Company, or (v) to pay any dividend on the Common Stock
payable in Common Stock or to effect a subdivision, combination or consolidation
of the Common Stock (by reclassification or otherwise than by payment of
dividends in Common Stock), then, in each such case, the Company shall give to
each holder of a Right Certificate, in accordance with Section 26 hereof, a
notice of such proposed action, which shall specify the record date for the
purposes of such dividend or distribution or offering of rights or warrants, or
the date on which such liquidation, dissolution, winding up, reclassification,
subdivision, combination or consolidation is to take place and the date of
participation therein by the holders of the Common Stock and/or Preferred Stock,
if any such date is to be fixed, and such notice shall be so given in the case
of any action covered by clause (i) or (ii) above at least 10 days prior to
the record date for determining holders of the Preferred Stock for purposes of
such action, and in the case of any such other action, at least 10 days prior to
the date of the taking of such proposed action or the date of participation
therein by the holders of the Common Stock and/or Preferred Stock, whichever
shall be the earlier.

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    (b)           In
case any event described in Section 11(a)(ii) or Section 13 shall occur then the
Company shall as soon as practicable thereafter give to each holder of a Right
Certificate (or if occurring prior to the Distribution Date, the holders of the
Common Stock) in accordance with Section 26 hereof, a notice of the occurrence
of such event, which notice shall describe such event and the consequences of
such event to holders of Rights under Section 11(a)(ii) and Section 13
hereof.

     

    Section
26.  Notices.  Notices
or demands authorized by this Agreement to be given or made by the Rights Agent
or by the holder of any Right Certificate to or on the Company shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Rights Agent) as
follows:

     

    Highbury
Financial Inc.

    999
Eighteenth Street, Suite 3000

    Denver,
Colorado  80202

    Attention:
Chief Executive Officer

     

    Subject
to the provisions of Section 21 hereof, any notice or demand authorized by this
Agreement to be given or made by the Company or by the holder of any Right
Certificate to or on the Rights Agent shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address is
filed in writing with the Company) as follows:

     

    Continental
Stock Transfer & Trust Company

    17
Battery Place, 8th Floor

    New York,
NY  10004

    Attention:  Compliance
Department

     

    Notices
or demands authorized by this Agreement to be given or made by the Company or
the Rights Agent to the holder of any Right Certificate shall be sufficiently
given or made if sent by first-class mail, postage prepaid, addressed to such
holder at the address of such holder as shown on the registry books of the
Company.

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    Section
27.  Supplements and
Amendments.  Except as provided in the penultimate sentence of
this Section 27, for so long as the Rights are then redeemable, the Company may
in its sole and absolute discretion, and the Rights Agent shall if the Company
so directs, supplement or amend any provision of this Agreement in any respect
without the approval of any holders of the Rights.  At any time when
the Rights are no longer redeemable, except as provided in the penultimate
sentence of this Section 27, the Company may, and the Rights Agent shall, if the
Company so directs, supplement or amend this Agreement without the approval of
any holders of Rights, provided that no such
supplement or amendment may (a) adversely affect the interests of the holders of
Rights as such (other than an Acquiring Person or an Affiliate or Associate of
an Acquiring Person), (b) cause this Agreement again to become amendable other
than in accordance with this sentence or (c) cause the Rights again to become
redeemable.  Notwithstanding anything contained in this Agreement to
the contrary, no supplement or amendment shall be made which changes the
Redemption Price.  Upon the delivery of a certificate from an
appropriate officer of the Company which states that the supplement or amendment
is in compliance with the terms of this Section 27, the Rights Agent shall
execute such supplement or amendment, provided that any supplement or amendment
that does not amend Sections 18, 19, 20 or 21 hereof or this Section 27 in a
manner adverse to the Rights Agent shall become effective immediately upon
execution by the Company, whether or not also executed by the Rights
Agent.

     

    Section
28.  Successors.  All
the covenants and provisions of this Agreement by or for the benefit of the
Company or the Rights Agent shall bind and inure to the benefit of their
respective successors and assigns hereunder.

     

    Section
29.  Benefits of this
Agreement.  Nothing in this Agreement shall be construed to
give to any Person other than the Company, the Rights Agent and the registered
holders of the Right Certificates (and, prior to the Distribution Date, the
Common Stock) any legal or equitable right, remedy or claim under this
Agreement; but this Agreement shall be for the sole and exclusive benefit of the
Company, the Rights Agent and the registered holders of the Right Certificates
(and, prior to the Distribution Date, the Common Stock).

     

    Section
30.  Determinations and Actions
by the Board of Directors.  The Board of Directors of the
Company shall have the exclusive power and authority to administer this
Agreement and to exercise the rights and powers specifically granted to the
Board of Directors of the Company or to the Company, or as may be necessary or
advisable in the administration of this Agreement, including, without
limitation, the right and power to (i) interpret the provisions of this
Agreement and (ii) make all determinations deemed necessary or advisable for the
administration of this Agreement (including, without limitation, a determination
to redeem or not redeem the Rights or to amend or not amend this
Agreement).  All such actions, calculations, interpretations and
determinations that are done or made by the Board of Directors of the Company in
good faith shall be final, conclusive and binding on the Company, the Rights
Agent, the holders of the Rights, as such, and all other parties.

     

    Section
31.  Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    Section
32.  Governing
Law.  This Agreement and each Right Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of
Delaware and for all purposes shall be governed by and construed in accordance
with the laws of such State applicable to contracts to be made and performed
entirely within such State.

     

    Section
33.  Counterparts.  This
Agreement may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same
instrument.

     

    Section
34.  Descriptive
Headings.  Descriptive headings of the several Sections of this
Agreement are inserted for convenience only and shall not control or affect the
meaning or construction of any of the provisions hereof.

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed, all as of the day and year first above written.

     

    
      
        
          
            
              
                
                  
                    
                      	
                              HIGHBURY
      FINANCIAL INC.

                            	 
	 
      	 
      	 
	
                              By:

                            	/s/
      Richard S. Foote	 
	 
      	
                              Name:
      Richard S. Foote

                            	 
	 
      	
                              Title:  President
      and CEO

                            	 
	 
      	 
      	 
	
                              CONTINENTAL
      STOCK TRANSFER & TRUST COMPANY, as Rights Agent

                            	 
	 
      	 
      	 
	
                              By:

                            	/s/
      Alexandra Albrecht	 
	 
      	
                              Name:
      Alexandra Albrecht

                            	 
	 
      	
                              Title:
      Vice President

                            	 

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

     

    FORM
OF

     

    CERTIFICATE
OF DESIGNATION

     

    OF

     

    SERIES
A JUNIOR PARTICIPATING PREFERRED STOCK

     

    OF

     

    HIGHBURY
FINANCIAL INC.

     

    PURSUANT
TO SECTION 151 OF THE GENERAL CORPORATION

     

    LAW
OF THE STATE OF DELAWARE

     

    Highbury
Financial Inc., a corporation organized and existing under the laws of the State
of Delaware (the “Corporation”), in accordance with the provisions of Section
103 thereof, DOES HEREBY CERTIFY:

     

    That
pursuant to the authority vested in the Board of Directors of the Corporation
(the “Board of Directors”) in accordance with the provisions of the Restated
Certificate of Incorporation of the said Corporation (the “Certificate of
Incorporation”), the said Board of Directors on August 10, 2009 adopted the
following resolution creating a series of 50,000 shares of Preferred Stock
designated as “Series A Junior Participating Preferred Stock”:

     

    RESOLVED,
that pursuant to the authority vested in the Board of Directors of this
Corporation in accordance with the provisions of the Certificate of
Incorporation, a series of Preferred Stock, par value $0.0001 per share, of the
Corporation be and hereby is created, and that the designation and number of
shares thereof and the voting and other powers, preferences and relative,
participating, optional or other rights of the shares of such series and the
qualifications, limitations and restrictions thereof are as
follows:

     

    Series A Junior
Participating Preferred Stock

     

    1.           Designation and
Amount.  There shall be a series of Preferred Stock that shall
be designated as “Series A Junior Participating Preferred Stock,” and the number
of shares constituting such series shall be 50,000.  Such number of
shares may be increased or decreased by resolution of the Board of Directors;
provided, however, that no decrease shall reduce the number of shares of Series
A Junior Participating Preferred Stock to less than the number of shares then
issued and outstanding plus the number of shares issuable upon exercise of
outstanding rights, options or warrants or upon conversion of outstanding
securities issued by the Corporation.

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    2.           Dividends and
Distributions.

     

    (A)           Subject
to the prior and superior rights of the holders of any shares of any class or
series of stock of the Corporation ranking prior and superior to the shares of
Series A Junior Participating Preferred Stock with respect to dividends, the
holders of shares of Series A Junior Participating Preferred Stock, in
preference to the holders of shares of any class or series of stock of the
Corporation ranking junior to the Series A Junior Participating Preferred Stock
in respect thereof, shall be entitled to receive, when, as and if declared by
the Board of Directors out of funds legally available for the purpose, quarterly
dividends payable in cash on the first day of January, April, July and October,
in each year (each such date being referred to herein as a “Quarterly Dividend
Payment Date”), commencing on the first Quarterly Dividend Payment Date after
the first issuance of a share or fraction of a share of Series A Junior
Participating Preferred Stock, in an amount per share (rounded to the nearest
cent) equal to the greater of (a) $10.00 or (b) the sum of (i) the Adjustment
Number (as defined below) times the aggregate per share amount of all cash
dividends, and (ii) the Adjustment Number times the aggregate per share amount
(payable in kind) of all non-cash dividends or other distributions other than
dividends payable in shares of Common Stock, par value $0.0001 per share, of the
Corporation (the “Common Stock”), or a subdivision of the outstanding shares of
Common Stock (by reclassification or otherwise), declared on the Common Stock
since the immediately preceding Quarterly Dividend Payment Date, or, with
respect to the first Quarterly Dividend Payment Date, since the first issuance
of any share or fraction of a share of Series A Junior Participating Preferred
Stock.  The “Adjustment Number” shall initially be
1,000.  In the event the Corporation shall at any time after August
10, 2009 (i) declare and pay any dividend on Common Stock payable in shares
of Common Stock, (ii) subdivide the outstanding Common Stock or (iii) combine
the outstanding Common Stock into a smaller number of shares, then in each such
case the Adjustment Number in effect immediately prior to such event shall be
adjusted by multiplying such Adjustment Number by a fraction the numerator of
which is the number of shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately prior to such event.

     

    (B)           The
Corporation shall declare a dividend or distribution on the Series A Junior
Participating Preferred Stock as provided in paragraph (A) above immediately
after it declares a dividend or distribution on the Common Stock (other than a
dividend payable in shares of Common Stock).

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    (C)           Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A Junior
Participating Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares of Series A Junior Participating
Preferred Stock, unless the date of issue of such shares is prior to the record
date for the first Quarterly Dividend Payment Date; in which case dividends on
such shares shall begin to accrue from the date of issue of such shares, or
unless the date of issue is a Quarterly Dividend Payment Date or is a date after
the record date for the determination of holders of shares of Series A Junior
Participating Preferred Stock entitled to receive a quarterly dividend and
before such Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend
Payment Date.  Accrued but unpaid dividends shall not bear
interest.  Dividends paid on the shares of Series A Junior
Participating Preferred Stock in an amount less than the total amount of such
dividends at the time accrued and payable on such shares shall be allocated pro
rata on a share-by-share basis among all such shares at the time
outstanding.  The Board of Directors may fix a record date for the
determination of holders of shares of Series A Junior Participating Preferred
Stock entitled to receive payment of a dividend or distribution declared
thereon, which record date shall be no more than 60 days prior to the date fixed
for the payment thereof.

     

    3.           Voting Rights.  The
holders of shares of Series A Junior Participating Preferred Stock shall have
the following voting rights:

     

    (A)           Each
share of Series A Junior Participating Preferred Stock shall entitle the holder
thereof to a number of votes equal to the Adjustment Number on all matters
submitted to a vote of the stockholders of the Corporation.

     

    (B)           Except
as required by law, by Section 3(C) and by Section 10 hereof, holders of Series
A Junior Participating Preferred Stock shall have no special voting rights and
their consent shall not be required (except to the extent they are entitled to
vote with holders of Common Stock as set forth herein) for taking any corporate
action.

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

    (C)           If,
at the time of any annual meeting of stockholders for the election of directors,
the equivalent of six quarterly dividends (whether or not consecutive) payable
on any share or shares of Series A Junior Participating Preferred Stock are in
default, the number of directors constituting the Board of Directors of the
Corporation shall be increased by two.  In addition to voting together
with the holders of Common Stock for the election of other directors of the
Corporation, the holders of record of the Series A Junior Participating
Preferred Stock, voting separately as a class to the exclusion of the holders of
Common Stock, shall be entitled at said meeting of stockholders (and at each
subsequent annual meeting of stockholders), unless all dividends in arrears on
the Series A Junior Participating Preferred Stock have been paid or declared and
set apart for payment prior thereto, to vote for the election of two directors
of the Corporation, the holders of any Series A Junior Participating Preferred
Stock being entitled to cast a number of votes per share of Series A Junior
Participating Preferred Stock as is specified in paragraph (A) of this Section
3.  Each such additional director shall not be a member of Class A,
Class B or Class C of the Board of Directors of the Corporation, but shall serve
until the next annual meeting of stockholders for the election of directors, or
until his successor shall be elected and shall qualify, or until his right to
hold such office terminates pursuant to the provisions of this Section
3(C).  Until the default in payments of all dividends which permitted
the election of said directors shall cease to exist, any director who shall have
been so elected pursuant to the provisions of this Section 3(C) may be removed
at any time, without cause, only by the affirmative vote of the holders of the
shares of Series A Junior Participating Preferred Stock at the time entitled to
cast a majority of the votes entitled to be cast for the election of any such
director at a special meeting of such holders called for that purpose, and any
vacancy thereby created may be filled by the vote of such holders.  If
and when such default shall cease to exist, the holders of the Series A Junior
Participating Preferred Stock shall be divested of the foregoing special voting
rights, subject to revesting in the event of each and every subsequent like
default in payments of dividends.  Upon the termination of the
foregoing special voting rights, the terms of office of all persons who may have
been elected directors pursuant to said special voting rights shall forthwith
terminate, and the number of directors constituting the Board of Directors shall
be reduced by two.  The voting rights granted by this Section 3(C)
shall be in addition to any other voting rights granted to the holders of the
Series A Junior Participating Preferred Stock in this Section 3.

     

    4.           Certain
Restrictions.

     

    (A)           Whenever
quarterly dividends or other dividends or distributions payable on the Series A
Junior Participating Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions, whether
or not declared, on shares of Series A Junior Participating Preferred Stock
outstanding shall have been paid in full, the Corporation shall
not:

     

    (i)           declare
or pay dividends on, make any other distributions on, or redeem or purchase or
otherwise acquire for consideration any shares of stock ranking junior (either
as to dividends or upon liquidation, dissolution or winding up) to the
Series A Junior Participating Preferred Stock;

     

    (ii)           declare
or pay dividends on or make any other distributions on any shares of stock
ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding up) with the Series A Junior Participating Preferred Stock, except
dividends paid ratably on the Series A Junior Participating Preferred Stock and
all such parity stock on which dividends are payable or in arrears in proportion
to the total amounts to which the holders of all such shares are then entitled;
or

    
      
         

      

      
        A-4

        
          

        

      

      
         

      

    

    (iii)           purchase
or otherwise acquire for consideration any shares of Series A Junior
Participating Preferred Stock, or any shares of stock ranking on a parity with
the Series A Junior Participating Preferred Stock, except in accordance with a
purchase offer made in writing or by publication (as determined by the Board of
Directors) to all holders of Series A Junior Participating Preferred Stock, or
to such holders and holders of any such shares ranking on a parity therewith,
upon such terms as the Board of Directors, after consideration of the respective
annual dividend rates and other relative rights and preferences of the
respective series and classes, shall determine in good faith will result in fair
and equitable treatment among the respective series or classes.

     

    (B)           The
Corporation shall not permit any subsidiary of the Corporation to purchase or
otherwise acquire for consideration any shares of stock of the Corporation
unless the Corporation could, under paragraph (A) of this Section 4, purchase or
otherwise acquire such shares at such time and in such manner.

     

    5.           Reacquired
Shares.  Any shares of Series A Junior Participating Preferred
Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired promptly after the acquisition
thereof.  All such shares shall upon their retirement become
authorized but unissued shares of Preferred Stock and may be reissued as part of
a new series of Preferred Stock to be created by resolution or resolutions of
the Board of Directors, subject to any conditions and restrictions on issuance
set forth herein.

     

    6.           Liquidation, Dissolution or Winding
Up.  (A) Upon any liquidation, dissolution or winding up of the
Corporation, voluntary or otherwise, no distribution shall be made to the
holders of shares of stock ranking junior (either as to dividends or upon
liquidation, dissolution or winding up) to the Series A Junior Participating
Preferred Stock unless, prior thereto, the holders of shares of Series A Junior
Participating Preferred Stock shall have received an amount per share (the
“Series A Liquidation Preference”) equal to the greater of (i) $10.00 plus an
amount equal to accrued and unpaid dividends and distributions thereon, whether
or not declared, to the date of such payment, or (ii) the Adjustment Number
times the per share amount of all cash and other property to be distributed in
respect of the Common Stock upon such liquidation, dissolution or winding up of
the Corporation.

     

    (B)           In
the event, however, that there are not sufficient assets available to permit
payment in full of the Series A Liquidation Preference and the liquidation
preferences of all other classes and series of stock of the Corporation, if any,
that rank on a parity with the Series A Junior Participating Preferred Stock in
respect thereof, then the assets available for such distribution shall be
distributed ratably to the holders of the Series A Junior Participating
Preferred Stock and the holders of such parity shares in proportion to their
respective liquidation preferences.

     

    (C)           Neither
the merger or consolidation of the Corporation into or with another entity nor
the merger or consolidation of any other entity into or with the Corporation
shall be deemed to be a liquidation, dissolution or winding up of the
Corporation within the meaning of this Section 6.

    
      
         

      

      
        A-5

        
          

        

      

      
         

      

    

    7.           Consolidation, Merger,
Etc.  In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the outstanding
shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case each share of
Series A Junior Participating Preferred Stock shall at the same time be
similarly exchanged or changed in an amount per share equal to the Adjustment
Number times the aggregate amount of stock, securities, cash and/or any other
property (payable in kind), as the case may be, into which or for which each
share of Common Stock is changed or exchanged.

     

    8.           No
Redemption.  Shares of Series A Junior Participating Preferred
Stock shall not be subject to redemption by the Corporation.

     

    9.           Ranking.  The
Series A Junior Participating Preferred Stock shall rank junior to all other
series of Preferred Stock as to the payment of dividends and as to the
distribution of assets upon liquidation, dissolution or winding up, unless the
terms of any such series shall provide otherwise, and shall rank senior to the
Common Stock as to such matters.

     

    10.           Amendment.  At any
time that any shares of Series A Junior Participating Preferred Stock are
outstanding, the Certificate of Incorporation of the Corporation shall not be
amended, by merger, consolidation or otherwise, which would materially alter or
change the powers, preferences or special rights of the Series A Junior
Participating Preferred Stock so as to affect them adversely without the
affirmative vote of the holders of two-thirds of the outstanding shares of
Series A Junior Participating Preferred Stock, voting separately as a
class.

     

    11.           Fractional
Shares.  Series A Junior Participating Preferred Stock may be
issued in fractions of a share that shall entitle the holder, in proportion to
such holder’s fractional shares, to exercise voting rights, receive dividends,
participate in distributions and to have the benefit of all other rights of
holders of Series A Junior Participating Preferred Stock.

     

    IN
WITNESS WHEREOF, the undersigned has executed this Certificate this 10th day of
August, 2009.

     

    
      
        
          
            
              	
                      HIGHBURY
      FINANCIAL INC.

                    
	 
      	 
      
	
                      By:

                    	  
      
	 
      	
                      Name:  Richard
      S. Foote

                    
	 
      	
                      Title:  President
      and Chief

                    
	 
      	
                      Executive
      Officer

                    

            

          

        

      

    

    
      
         

      

      
        A-6

        
          

        

      

      
         

      

    

    Exhibit
B

     

    Form of Right
Certificate

     

    Certificate
No. R-______

     

    NOT
EXERCISABLE AFTER AUGUST 10, 2019 (OR DECEMBER 31, 2010 IF STOCKHOLDER APPROVAL
(AS DEFINED IN THE RIGHTS AGREEMENT) HAS NOT BEEN OBTAINED) OR EARLIER IF
REDEMPTION OR EXCHANGE OCCURS.  THE RIGHTS ARE SUBJECT TO REDEMPTION
AT $0.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT.  UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS
AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN
ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES
THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE
TRANSFERABLE.

     

    RIGHT
CERTIFICATE

     

    HIGHBURY
FINANCIAL INC.

     

    This
certifies that ____________________________ or registered assigns, is the
registered owner of the number of Rights set forth above, each of which entitles
the owner thereof, subject to the terms, provisions and conditions of the Rights
Agreement, dated as of August 10, 2009, as the same may be amended from time to
time (the “Rights Agreement”), between Highbury Financial Inc., a Delaware
corporation (the “Company”), and Continental Stock Transfer & Trust Company,
as Rights Agent (the “Rights Agent”), to purchase from the Company at any time
after the Distribution Date (as such term is defined in the Rights Agreement)
and prior to 5:00 P.M., New York City time, on August 10, 2019 at the office or
agency of the Rights Agent designated for such purpose, or of its successor as
Rights Agent, one one-thousandth of a fully paid non-assessable share of Series
A Junior Participating Preferred Stock, par value $0.0001 per share (the
“Preferred Stock”), of the Company at a purchase price of $20.00 per one
one-thousandth of a share of Preferred Stock (the “Purchase Price”), upon
presentation and surrender of this Right Certificate with the Form of Election
to Purchase duly executed.  The number of Rights evidenced by this
Rights Certificate (and the number of one one-thousandths of a share of
Preferred Stock which may be purchased upon exercise hereof) set forth above,
and the Purchase Price set forth above, are the number and Purchase Price as of
August 10, 2009, based on the Preferred Stock as constituted at such
date.  As provided in the Rights Agreement, the Purchase Price, the
number of one one-thousandths of a share of Preferred Stock (or other securities
or property) which may be purchased upon the exercise of the Rights and the
number of Rights evidenced by this Right Certificate are subject to modification
and adjustment upon the happening of certain events.

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

    This
Right Certificate is subject to all of the terms, provisions and conditions of
the Rights Agreement, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights
Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right
Certificates.  Copies of the Rights Agreement are on file at the
principal executive offices of the Company and the above-mentioned office or
agency of the Rights Agent.  The Company will mail to the holder of
this Right Certificate a copy of the Rights Agreement without charge after
receipt of a written request therefor.

     

    This
Right Certificate, with or without other Right Certificates, upon surrender at
the office or agency of the Rights Agent designated for such purpose, may be
exchanged for another Right Certificate or Right Certificates of like tenor and
date evidencing Rights entitling the holder to purchase a like aggregate number
of shares of Preferred Stock as the Rights evidenced by the Right Certificate or
Right Certificates surrendered shall have entitled such holder to
purchase.  If this Right Certificate shall be exercised in part, the
holder shall be entitled to receive upon surrender hereof another Right
Certificate or Right Certificates for the number of whole Rights not
exercised.

     

    Subject
to the provisions of the Rights Agreement, the Rights evidenced by this
Certificate (i) may be redeemed by the Company at a redemption price of $0.01
per Right or (ii) may be exchanged in whole or in part for shares of the
Company’s Common Stock, par value $0.0001 per share, or shares of Preferred
Stock.

     

    No
fractional shares of Preferred Stock or Common Stock will be issued upon the
exercise or exchange of any Right or Rights evidenced hereby (other than
fractions of Preferred Stock which are integral multiples of one one-thousandth
of a share of Preferred Stock, which may, at the election of the Company, be
evidenced by depository receipts), but in lieu thereof a cash payment will be
made, as provided in the Rights Agreement.

     

    No holder
of this Right Certificate, as such, shall be entitled to vote or receive
dividends or be deemed for any purpose the holder of the Preferred Stock or of
any other securities of the Company which may at any time be issuable on the
exercise or exchange hereof, nor shall anything contained in the Rights
Agreement or herein be construed to confer upon the holder hereof, as such, any
of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting stockholders (except as
provided in the Rights Agreement) or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by this Right
Certificate shall have been exercised or exchanged as provided in the Rights
Agreement.

     

    This
Right Certificate shall not be valid or obligatory for any purpose until it
shall have been countersigned by the Rights Agent.

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

    WITNESS
the facsimile signature of the proper officers of the Company and its corporate
seal.  Dated as of August __, 2009.

     

    
      
        
          
            
              	
                      HIGHBURY FINANCIAL INC.

                    
	 
	
                      By: 
      

                    	  
      
	
                       

                    	
                      President

                    

            

          

        

      

    

     

    ATTEST:

     

    ____________________________________

    Secretary

     

    Countersigned:________________________

     

    CONTINENTAL
STOCK TRANSFER & TRUST COMPANY, as Rights Agent

     

     

    By__________________________________

    [Title]

    
      
         

      

      
        B-3

        
          

        

      

      
         

      

    

    Form of
Reverse Side of Right Certificate

     

    FORM OF
ASSIGNMENT

     

    (To be
executed by the registered holder if such

     

    holder
desires to transfer the Right Certificate)

     

    FOR VALUE
RECEIVED __________________________ hereby sells, assigns and transfers unto
______________________________________________________________________________________________________________________________________________________________________________

    ______________________________________________________________________________________________________________________________________________________________________________

     

    (Please
print name and address of transferee)

     

    _______
Rights represented by this Right Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint
______________________________ Attorney, to transfer said Rights on the books of
the within-named Company, with full power of substitution.

     

    Dated:  ____________________________

     

                         
____________________________________

                         
Signature

     

    Signature
Guaranteed:

     

    Signatures
must be guaranteed by a bank, trust company, broker, dealer or other eligible
institution participating in a recognized signature guarantee medallion
program.

     

    (To be
completed)

     

    The
undersigned hereby certifies that the Rights evidenced by this Right Certificate
are not beneficially owned by, were not acquired by the undersigned from, and
are not being assigned to an Acquiring Person or an Affiliate or Associate
thereof (as defined in the Rights Agreement).

     

                         
____________________________________

                         
Signature

    
      
         

      

      
        B-4

        
          

        

      

      
         

      

    

    Form of
Reverse Side of Right Certificate - continued

     

    FORM OF ELECTION TO
PURCHASE

     

    (To be
executed if holder desires to exercise

     

    Rights
represented by the Rights Certificate)

     

    To
Highbury Financial Inc.:

     

    The
undersigned hereby irrevocably elects to exercise ________ Rights represented by
this Right Certificate to purchase the shares of Preferred Stock (or other
securities or property) issuable upon the exercise of such Rights and requests
that certificates for such shares of Preferred Stock (or such other securities)
be issued in the name of:

     

    _________________________________________________________________________________________________________________________

    (Please
print name and address)

     

    _________________________________________________________________________________________________________________________

     

    If such
number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:

     

    Please
insert social security

     

    or other
identifying number

     

    _______________________________________________________________________________________

     

    (Please
print name and address)

     

    _______________________________________________________________________________________

     

    Dated:________________________

     

                         
____________________________________

                         
Signature

     

    (Signature
must conform to holder specified on Right Certificate)

     

    Signature
Guaranteed:

     

    Signature
must be guaranteed by a bank, trust company, broker, dealer or other eligible
institution participating in a recognized signature guarantee medallion
program.

    
      
         

      

      
        B-5

        
          

        

      

      
         

      

    

    Form of
Reverse Side of Right Certificate - continued

     

    _________________________________________________________________________________________________________________________

     

    (To be
completed)

     

    The
undersigned certifies that the Rights evidenced by this Right Certificate are
not beneficially owned by, and were not acquired by the undersigned from, an
Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement).

     

    ____________________________________

    Signature

     

    _________________________________________________________________________________________________________________________

     

    NOTICE

     

    The
signature in the Form of Assignment or Form of Election to Purchase, as the case
may be, must conform to the name as written upon the face of this Right
Certificate in every particular, without alteration or enlargement or any change
whatsoever.

     

    In the
event the certification set forth above in the Form of Assignment or the Form of
Election to Purchase, as the case may be, is not completed, such Assignment or
Election to Purchase will not be honored.

    
      
         

      

      
        B-6

        
          

        

      

      
         

      

    

    Exhibit
C

     

    UNDER
CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR
TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN
THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID
AND WILL NO LONGER BE TRANSFERABLE.

     

    SUMMARY
OF RIGHTS TO PURCHASE

    SHARES OF
PREFERRED STOCK OF

    HIGHBURY
FINANCIAL INC.

    

     

    On August
10, 2009, the Board of Directors of Highbury Financial Inc., a Delaware
corporation (the "Company"), declared a dividend of one preferred share purchase
right (a "Right") for each outstanding share of common stock, par value $0.0001
per share, of the Company (the "Common Stock").  The dividend is
payable on August 25, 2009 to the stockholders of record on August 11, 2009 (the
"Record Date").  Each Right entitles the registered holder to purchase
from the Company one one-thousandth of a share of Series A Junior Participating
Preferred Stock, par value $0.0001 per share, of the Company (the "Preferred
Stock") at a price of $20.00 per one one-thousandth of a share of Preferred
Stock (the "Purchase Price"), subject to adjustment.  The description
and terms of the Rights are set forth in a Rights Agreement dated as of August
10, 2009, as the same may be amended from time to time (the "Rights Agreement"),
between the Company and Continental Stock Transfer & Trust Company, as
Rights Agent (the "Rights Agent").

     

    Until the
earlier to occur of (i) 10 business days following a public announcement that a
person or group of affiliated or associated persons (with certain exceptions, an
"Acquiring Person") has acquired beneficial ownership of 15% or more of the
outstanding shares of Common Stock or (ii) 10 business days (or such later date
as may be determined by action of the Board of Directors of the Company prior to
such time as any person or group of affiliated persons becomes an Acquiring
Person) following the commencement of, or announcement of an intention to make,
a tender offer or exchange offer the consummation of which would result in the
beneficial ownership by a person or group of 15% or more of the outstanding
shares of Common Stock (the earlier of such dates being called the "Distribution
Date"), the Rights will be evidenced, with respect to any of the Common Stock
certificates outstanding as of the Record Date, by such Common Stock certificate
together with this Summary of Rights.

     

    With
respect to any person or entity who beneficially owns (for purposes of the
Rights Agreement) 15% or more of the outstanding shares of Common Stock as of
the date of the Rights Agreement or first public announcement of the adoption of
the Rights Agreement, such person’s or entity’s share ownership will not cause
the Rights to be exercisable unless such person or entity becomes the beneficial
owner of additional shares of Common Stock subject to certain exceptions and
provided that following such person or entity becoming the beneficial owner of
additional shares of Common Stock, such person or entity will beneficially own
at least 15% of the outstanding Common Stock).

    
      
         

      

      
        C-1

        
          

        

      

      
         

      

    

    The
Rights Agreement provides that, until the Distribution Date (or earlier
expiration of the Rights), the Rights will be transferred with and only with the
Common Stock.  Until the Distribution Date (or earlier expiration of
the Rights), new Common Stock certificates issued after the Record Date upon
transfer or new issuances of Common Stock will contain a notation incorporating
the Rights Agreement by reference.  Until the Distribution Date (or
earlier expiration of the Rights), the surrender for transfer of any
certificates for shares of Common Stock outstanding as of the Record Date, even
without such notation or a copy of this Summary of Rights, will also constitute
the transfer of the Rights associated with the shares of Common Stock
represented by such certificate.  As soon as practicable following the
Distribution Date, separate certificates evidencing the Rights ("Right
Certificates") will be mailed to holders of record of the Common Stock as of the
close of business on the Distribution Date and such separate Right Certificates
alone will evidence the Rights.

     

    The
Rights are not exercisable until the Distribution Date.  The Rights
will expire on the earlier of (i) December 31, 2010 if the Rights
Agreement is not approved by the stockholders of the Company at the 2010 annual
meeting of stockholders, or (ii) August 10, 2019 (the “Final Expiration
Date”), unless the Final Expiration Date is advanced or extended or unless the
Rights are earlier redeemed or exchanged by the Company, in each case as
described below.

     

    The
Purchase Price payable, and the number of shares of Preferred Stock or other
securities or property issuable, upon exercise of the Rights is subject to
adjustment from time to time to prevent dilution (i) in the event of a stock
dividend on, or a subdivision, combination or reclassification of, the Preferred
Stock, (ii) upon the grant to holders of the Preferred Stock of certain rights
or warrants to subscribe for or purchase Preferred Stock at a price, or
securities convertible into Preferred Stock with a conversion price, less than
the then-current market price of the Preferred Stock or (iii) upon the
distribution to holders of the Preferred Stock of evidences of indebtedness or
assets (excluding regular periodic cash dividends or dividends payable in
Preferred Stock) or of subscription rights or warrants (other than those
referred to above).

     

    The
number of outstanding Rights is subject to adjustment in the event of a stock
dividend on the Common Stock payable in shares of Common Stock or subdivisions,
consolidations or combinations of the Common Stock occurring, in any such case,
prior to the Distribution Date.

     

    Shares of
Preferred Stock purchasable upon exercise of the Rights will not be
redeemable.  Each share of Preferred Stock will be entitled, when, as
and if declared, to a minimum preferential quarterly dividend payment of the
greater of (a) $10.00 per share, and (b) an amount equal to 1,000 times the
dividend declared per share of Common Stock.  In the event of
liquidation, dissolution or winding up of the Company, the holders of the
Preferred Stock will be entitled to a minimum preferential payment of the
greater of (a) $10.00 per share (plus any accrued but unpaid dividends), and (b)
an amount equal to 1,000 times the payment made per share of Common
Stock.  Each share of Preferred Stock will have 1,000 votes, voting
together with the Common Stock.  Finally, in the event of any merger,
consolidation or other transaction in which outstanding shares of Common Stock
are converted or exchanged, each share of Preferred Stock will be entitled to
receive 1,000 times the amount received per share of Common
Stock.  These rights are protected by customary antidilution
provisions.

    
      
         

      

      
        C-2

        
          

        

      

      
         

      

    

    Because
of the nature of the Preferred Stock's dividend, liquidation and voting rights,
the value of the one one-thousandth interest in a share of Preferred Stock
purchasable upon exercise of each Right should approximate the value of one
share of Common Stock.

     

    In the
event that any person or group of affiliated or associated persons becomes an
Acquiring Person, each holder of a Right, other than Rights beneficially owned
by the Acquiring Person (which will thereupon become void), will thereafter have
the right to receive upon exercise of a Right that number of shares of Common
Stock having a market value of two times the exercise price of the
Right.

     

    In the
event that, after a person or group has become an Acquiring Person, the Company
is acquired in a merger or other business combination transaction or 50% or more
of its consolidated assets or earning power are sold, proper provisions will be
made so that each holder of a Right (other than Rights beneficially owned by an
Acquiring Person which will have become void) will thereafter have the right to
receive upon the exercise of a Right that number of shares of common stock of
the person with whom the Company has engaged in the foregoing transaction (or
its parent) that at the time of such transaction have a market value of two
times the exercise price of the Right.

     

    At any
time after any person or group becomes an Acquiring Person and prior to the
earlier of one of the events described in the previous paragraph or the
acquisition by such Acquiring Person of 50% or more of the outstanding shares of
Common Stock, the Board of Directors of the Company may exchange the Rights
(other than Rights owned by such Acquiring Person which will have become void),
in whole or in part, for shares of Common Stock or Preferred Stock (or a series
of the Company's preferred stock having equivalent rights, preferences and
privileges), at an exchange ratio of one share of Common Stock, or a fractional
share of Preferred Stock (or other preferred stock) equivalent in value thereto,
per Right.

     

    With
certain exceptions, no adjustment in the Purchase Price will be required until
cumulative adjustments require an adjustment of at least 1% in such Purchase
Price.  No fractional shares of Preferred Stock or Common Stock will
be issued (other than fractions of Preferred Stock which are integral multiples
of one one-thousandth of a share of Preferred Stock, which may, at the election
of the Company, be evidenced by depositary receipts), and in lieu thereof an
adjustment in cash will be made based on the current market price of the
Preferred Stock or the Common Stock.

     

    At any
time prior to the time an Acquiring Person becomes such, the Board of Directors
of the Company may redeem the Rights in whole, but not in part, at a price of
$0.01 per Right (the "Redemption Price") payable, at the option of the Company,
in cash, shares of Common Stock or such other form of consideration as the Board
of Directors of the Company shall determine.  The redemption of the
Rights may be made effective at such time, on such basis and with such
conditions as the Board of Directors of the Company in its sole discretion may
establish.  Immediately upon any redemption of the Rights, the right
to exercise the Rights will terminate and the only right of the holders of
Rights will be to receive the Redemption Price.

    
      
         

      

      
        C-3

        
          

        

      

      
         

      

    

    For so
long as the Rights are then redeemable, the Company may, except with respect to
the Redemption Price, amend the Rights Agreement in any manner.  After
the Rights are no longer redeemable, the Company may, except with respect to the
Redemption Price, amend the Rights Agreement in any manner that does not
adversely affect the interests of holders of the Rights.

     

    Until a
Right is exercised or exchanged, the holder thereof, as such, will have no
rights as a stockholder of the Company, including, without limitation, the right
to vote or to receive dividends.

     

    A copy of
the Rights Agreement has been filed with the Securities and Exchange Commission
as an Exhibit to a Registration Statement on Form 8-A dated August 11,
2009.  A copy of the Rights Agreement is available free of charge from
the Company.  This summary description of the Rights does not purport
to be complete and is qualified in its entirety by reference to the Rights
Agreement, as the same may be amended from time to time, which is hereby
incorporated herein by reference.

    
      
         

      

      
        C-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}]]