Document:

Unassociated Document

     

    EXHIBIT
10.1

     

    EXCHANGE
AGREEMENT

     

    by and
among

     

    THE
INVESTORS

    NAMED ON
SCHEDULE A HERETO

     

    and

     

    HIGHBURY
FINANCIAL INC.

     

    September
14, 2009

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    TABLE
OF CONTENTS

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	 
      	 
      	 	
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                                                          ARTICLE I

                                                        	
                                                          DEFINITIONS

                                                        	 	
                                                          1

                                                        
	 	 	 	 
	
                                                          Section
      1.01.   Definitions

                                                        	 	
                                                          1

                                                        
	 	 	 
	
                                                          ARTICLE II

                                                        	
                                                          EXCHANGE

                                                        	 	
                                                          4

                                                        
	 	 	 	 
	
                                                          Section
      2.01.   Exchange of Series B Preferred for Common Stock by
      Investors

                                                        	 	
                                                          4

                                                        
	
                                                          Section
      2.02.   Amendment to Investor Rights Agreement

                                                        	 	
                                                          4

                                                        
	
                                                          Section
      2.03.   Closing

                                                        	 	
                                                          5

                                                        
	 	 	 
	
                                                          ARTICLE III

                                                        	
                                                          RESTRICTIVE
      LEGENDS

                                                        	 	
                                                          5

                                                        
	 	 	 	 
	
                                                          Section
      3.01.   Restrictive Legends

                                                        	 	
                                                          5

                                                        
	 	 	 
	
                                                          ARTICLE IV

                                                        	
                                                          REPRESENTATIONS
      AND WARRANTIES OF THE Investors

                                                        	 	
                                                          5

                                                        
	 	 	 	 
	
                                                          Section
      4.01.   Organization

                                                        	 	
                                                          5

                                                        
	
                                                          Section
      4.02.   Ownership and Capital Structure

                                                        	 	
                                                          6

                                                        
	
                                                          Section
      4.03.   Investment Intent

                                                        	 	
                                                          6

                                                        
	
                                                          Section
      4.04.   Accredited Investor; Knowledge and
      Experience

                                                        	 	
                                                          6

                                                        
	
                                                          Section
      4.05.   Authority

                                                        	 	
                                                          6

                                                        
	
                                                          Section
      4.06.   No Conflict

                                                        	 	
                                                          7

                                                        
	 	 	 
	
                                                          ARTICLE V

                                                        	
                                                          REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

                                                        	 	
                                                          7

                                                        
	 	 	 	 
	
                                                          Section
      5.01.   Organization

                                                        	 	
                                                          7

                                                        
	
                                                          Section
      5.02.   Capitalization

                                                        	 	
                                                          7

                                                        
	
                                                          Section
      5.03.   Valid Issuance of Securities

                                                        	 	
                                                          7

                                                        
	
                                                          Section
      5.04.   Authority

                                                        	 	
                                                          8

                                                        
	
                                                          Section
      5.05.   No Conflict

                                                        	 	
                                                          8

                                                        
	
                                                          Section
      5.06.   SEC Reports and Financial Statements

                                                        	 	
                                                          8

                                                        
	 	 	 
	
                                                          ARTICLE VI

                                                        	
                                                          EXPENSES

                                                        	 	
                                                          9

                                                        
	 	 	 	 
	
                                                          Section
      6.01.   Expenses

                                                        	 	
                                                          9

                                                        
	 	 	 
	
                                                          ARTICLE VII

                                                        	
                                                          MISCELLANEOUS

                                                        	 	
                                                          9

                                                        
	 	 	 	 
	
                                                          Section
      7.01.   Notices

                                                        	 	
                                                          9

                                                        
	
                                                          Section
      7.02.   Further Assurances

                                                        	 	
                                                          10

                                                        
	
                                                          Section
      7.03.   Survival

                                                        	 	
                                                          10

                                                        
	
                                                          Section
      7.04.   Amendments, Modifications and Waivers

                                                        	 	
                                                          11

                                                        
	
                                                          Section
      7.05.   Successors and Assigns

                                                        	 	
                                                          11

                                                        
	
                                                          Section
      7.06.   Severability

                                                        	 	
                                                          11

                                                        
	
                                                          Section
      7.07.   Captions

                                                        	 	
                                                          11

                                                        
	
                                                          Section
      7.08.   Entire Agreement

                                                        	 	
                                                          11

                                                        
	
                                                          Section
      7.09.   Governing Law

                                                        	 	
                                                          11

                                                        
	
                                                          Section
      7.10.   Dispute Resolution

                                                        	 	
                                                          12

                                                        
	
                                                          Section
      7.11.   Indemnification of Investors and Management
      Stockholders

                                                        	 	
                                                          12

                                                        
	
                                                          Section
      7.12.   Remedies

                                                        	 	
                                                          13

                                                        

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
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    TABLE
OF CONTENTS

    (Cont’d.)

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	 
      	 	
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                                  Section
      7.13.   Counterparts

                                	 	
                                  14

                                
	
                                  Section
      7.14.   Interpretation

                                	 	
                                  14

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND
ARE BEING OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.  THE SECURITIES PURCHASED
HEREUNDER ARE SUBJECT TO RESTRICTIONS ON TRANSFER AND RESALE UNDER AN AMENDED
AND RESTATED INVESTOR RIGHTS AGREEMENT, AND MAY NOT BE TRANSFERRED OR RESOLD
EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND OTHER APPLICABLE LAWS PURSUANT
TO REGISTRATION OR EXEMPTION FROM REGISTRATION REQUIREMENTS THEREUNDER AND UNDER
SUCH AGREEMENT.

     

    EXCHANGE
AGREEMENT

     

    This
Exchange Agreement (the “Agreement”) is made
as of this 14th day
of September, 2009 by and among the persons named as Investors set forth on
Schedule A
hereto (each an “Investor”, and,
collectively, the “Investors”), and
Highbury Financial Inc., a Delaware corporation (the “Company”), with
reference to the following background.

     

    RECITALS

     

    WHEREAS,
the Investors in the aggregate own 1,000 shares of Series B Convertible
Preferred Stock, par value $0.0001 per share, of the Company (“Series B
Preferred”);

     

    WHEREAS,
pursuant to the terms of this Agreement, the Investors wish to exchange up to
360 shares of Series B Preferred (the “Exchange”) for shares
of common stock, par value $0.0001 per share, of the Company (“Common Stock”) upon
the terms and conditions set forth in this Agreement; and

     

    WHEREAS,
pursuant to the terms of this Agreement, the Company wishes to enter into the
Exchange in order to prevent a single stockholder from acquiring ownership
beneficially, either directly or through one or more controlled companies, of
more than 25% of the outstanding Voting Securities (as defined below) of the
Company, thereby triggering a presumptive change of control under Section
2(a)(9) of the Investment Company Act (as defined below) of Aston Asset
Management LLC (“Aston”), the Company’s wholly owned subsidiary and investment
adviser to the Aston Funds.

     

    AGREEMENT

     

    NOW,
THEREFORE, in consideration of the premises and of the mutual agreements
hereinafter contained, the parties hereto hereby agree as follows, with the
obligations of each Investor being several and not joint:

     

    ARTICLE
I

     

    DEFINITIONS

     

    Section
1.01.  Definitions.  As
used in this Agreement, the following terms have the following
meanings:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “25% Stockholder”
shall mean a Person that would own, either of record or beneficially through a
broker, bank or other nominee measured at the end of any trading day,
twenty-five percent (25%) or more of the Voting Securities of the Company
(calculated in the manner provided pursuant to Section 2(a)(42) under the
Investment Company Act) but for an Exchange under this Agreement.

     

    “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). For the purposes of this
Agreement, the Company shall not be deemed to be an Affiliate of
Aston.

     

    “Agreement” means this
Exchange Agreement, as amended from time to time.

     

    “Amended and Restated
Investor Rights Agreement” shall mean the Amended and Restated Investor
Rights Agreement of even date herewith by and among the Company, the Investors
and the Management Stockholders.

     

    “Asserted Liability”
shall have the meaning set forth in Section 7.11(a).

     

    “Aston” shall have the
meaning set forth in the recitals.

     

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

     

    “Certificate of
Designation” means the Certificate of Designation filed with the
Secretary of State of the State of Delaware with respect to the Series B
Preferred Stock as amended from time to time.

     

    
      “Claims” shall have
the meaning set forth in Section 7.11.

    

     

    “Claims Notice” shall
have the meaning set forth in Section 7.11(a).

     

    “Closing” shall have
the meaning set forth in Section 2.03.

     

    “Code” shall have the
meaning set forth in Section 2.01.

     

    “Common Stock” shall
have the meaning set forth in the recitals.

     

    “Company” shall have
the meaning set forth in the preamble.

     

    
      “Contractual
Obligation” shall have the meaning set forth in Section
4.06.

    

     

    “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.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Conversion Number”
shall mean 4,500, subject to adjustment as set forth in the definition of
“Conversion Number” in Section 12 of the Certificate of Designation of the
Series B Preferred filed with the Secretary of State of the State of Delaware on
August 10, 2009, as amended from time to time.

     

    “Exchange” shall have
the meaning set forth in the recitals.

     

    “Exchange Shares”
shall mean the number of shares of Common Stock to be issued by the Company
pursuant to Section 2.01 of the Agreement such that after such issuance the
number of Voting Securities held by the 25% Stockholder that triggered the
Exchange shall be equal to (i) .25 multiplied by the number of Voting Securities
outstanding after the issuance contemplated by Section 2.01 minus (ii) one (1)
share of Common Stock; provided, however in no event shall the number of
Exchange Shares exceed the product of 360 and the Conversion
Number.

     

    “Financial Statements”
shall have the meaning set forth in Section 5.06(b).

     

    “Governmental
Authority” shall have the meaning set forth in Section 4.05.

     

    “Immediate Family”
shall mean, with respect to any natural person, (a) such person’s spouse,
parents, grandparents, children, grandchildren and siblings, (b) such person’s
former spouse(s) and current spouses of such person’s children, grandchildren
and siblings and (c) estates, trusts, partnerships and other entities of which
substantially all of the interests are held directly or indirectly by the
foregoing.

     

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

     

    “Investor(s)” shall
have the meaning set forth in the preamble.

     

    “Management
Stockholder(s)” shall mean (a) in the case of any Investor which is a
natural person, such Investor, and (b) in the case of any Investor which is not
a natural person, that certain employee of Aston (or one of its Controlled
Affiliates) who is the owner of the issued and outstanding capital stock of, or
other equity interests in, such Investor and is listed as such on Schedule A hereto
(including any such employee after such employee has transferred any of its, his
or her interest in such Investor to a Permitted Transferee (as such term is
defined in the Investor Rights Agreement)).

     

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

     

    
      “Requirement of Law”
shall have the meaning set forth in Section 4.06.

    

     

    “SEC” shall mean the
Securities and Exchange Commission, and any successor Governmental Authority
thereto.

     

    “SEC Reports” shall
have the meaning set forth in Section 5.06(a).

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Securities Act” means
the Securities Act of 1933, as amended from time to time, and the rules and
regulations promulgated thereunder by the SEC from time to time.

     

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

     

    “Series B Preferred”
shall have the meaning set forth in the recitals.

     

    “Transaction
Documents” shall mean this Agreement and the Amended and Restated
Investor Rights Agreement.

     

    “Voting Securities”
shall have the same meaning as set forth in Section 2(a)(42) under the
Investment Company Act.

     

    ARTICLE
II

     

    EXCHANGE

     

    
      Section
2.01.   Exchange of Series B
Preferred for Common Stock by Investors.  On the terms and
subject to the conditions of this Agreement, each time a Person becomes a 25%
Stockholder, at the Closing (i) the Company hereby agrees to issue to each
Investor its pro rata share (based upon the number of shares of Series B
Preferred held by such Investor at the time of the Closing and the total number
of shares of Series B Preferred held by all Investors at the time of the
Closing) of the Exchange Shares and (ii) each Investor hereby agrees to accept
his, her or its pro rata share of such Exchange Shares in exchange for such
number of shares or fractional shares of Series B Preferred equal to the
quotient of (x) the number of Exchange Shares issued to such Investor divided by
(y) the Conversion Number.  At the Closing, each of the Investors
shall deliver to the Company assignments duly executed by such Investor
representing the respective number of Series B Preferred held by such Investor,
in exchange for the number of Exchange Shares as provided in this Section
2.01.  Promptly following (but in no event more than five business
days after) any exchange pursuant hereto, the Company shall pay to each Investor
an amount equal to all accrued but unpaid dividends which are in arrears for
more than one quarter on the shares of Series B Preferred which are so
exchanged.  Notwithstanding anything in this Section 2.01 to the
contrary, the Investors, in the aggregate, shall not be required to exchange
more than 360 shares of Series B Preferred (as such number may be ratably
adjusted on account of any stock splits, stock dividends, stock combinations or
similar recapitalizations with respect to the Series B
Preferred).  The Company and the Investors agree to treat each
Exchange as a recapitalization pursuant to Section 368(a)(1)(E) of the Internal
Revenue Code of 1986, as amended (the “Code”), and to
consistently take the position on all tax returns, before any taxing authority,
and in any judicial proceeding, that each Exchange contemplated by this
Agreement qualifies as a recapitalization under Section 368(a)(1)(E) of the
Code.

    

     

    Section
2.02.   Amendment to Investor Rights
Agreement.  The Company and the Investors shall execute and
deliver, and the Investors shall cause the Management Stockholders to execute
and deliver, the Amended and Restated Investor Rights Agreement, which shall
automatically become effective upon the consummation of the
Closing.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Section
2.03.   Closing.  The
closing of each Exchange contemplated by this Agreement shall be effective upon,
and contemporaneous with, a Person becoming a 25% Stockholder of the Company
(the “Closing”).  Each
Closing shall take place at the offices of Bingham McCutchen LLP, 399 Park
Avenue, New York, New York.  As soon as practicable after each
Closing, the Company shall cause its transfer agent to deliver certificates
representing the Exchange Shares to each Investor.  No Closing may
occur after the earlier to occur of (x) the first anniversary of the date of
this Agreement and (y) unless otherwise mutually agreed by the parties hereto,
immediately prior to the consummation of an event which would constitute a
Change of Control (as defined in the Certificate of Designation).  For
the avoidance of doubt, if a transaction occurs which would constitute a Change
of Control (as defined in the Certificate of Designation), unless otherwise
agreed between the parties, no Closing shall occur with respect to such
transaction.  If a Closing does not occur on or before the first
anniversary of the date of this Agreement, this Agreement shall terminate and
have no further force or effect.

     

    ARTICLE
III

     

    RESTRICTIVE
LEGENDS

     

    Section
3.01.   Restrictive
Legends.  It is understood and agreed that the certificates
evidencing the shares of Common Stock to be delivered to the Investors at the
Closing, and each certificate issued upon transfer thereof, shall bear the
following legends, in addition to any other legends required by Delaware
law:

     

    “THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY BE OFFERED AND SOLD ONLY IF SO
REGISTERED OR IN A MANNER EXEMPT FROM REGISTRATION UNDER SUCH ACT.

     

    THE
SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS
OF AN AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT WHICH PLACES RESTRICTIONS
ON THE TRANSFERABILITY OF THE SHARES REPRESENTED HEREBY.  A COPY OF
THE AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT IS ON FILE AT THE PRINCIPAL
OFFICE OF THE COMPANY.”

     

    ARTICLE
IV

     

    REPRESENTATIONS
AND WARRANTIES OF

    THE
INVESTORS

     

    Each
Investor severally represents and warrants (as to itself, himself or herself
only) to the Company, as of the date hereof and as of each Closing, as
follows:

     

    Section
4.01.   Organization.  Such
Investor is a corporation duly organized, validly existing and in good standing
under the laws of its jurisdiction of incorporation.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Section
4.02.   Ownership and Capital Structure.

     

    (a)   
 The number of shares of Series B Preferred held by such as of the date
hereof is as set forth on Schedule A
hereto.

     

    (b)  
  Such Investor is the lawful owner of the Series B Preferred to be
transferred by it hereunder, free and clear of all liens, encumbrances,
restrictions and claims of every kind (other than pursuant to applicable
securities laws and the provisions of the Amended and Restated Investor Rights
Agreement and Certificate of Designation) and has full legal right, power and
authority to enter into this Agreement and to sell, assign, exchange, transfer
and convey its Series B Preferred pursuant to this Agreement.

     

    Section
4.03.   Investment
Intent.  The shares of Common Stock to be acquired by such
Investor hereunder (i) are being acquired by such Investor for its own account
and (ii) are not being acquired by such Investor with a view to, or for sale in
connection with, any distribution thereof which is not in compliance with
applicable securities laws.

     

    Section
4.04.   Accredited Investor;
Knowledge and Experience.  Such Investor is an “accredited
investor” as that term is defined in Regulation D under the Securities
Act.  Such Investor has carefully considered the potential risks
relating to the Company and the Exchange.  Such Investor is familiar
with the business and financial condition, properties, operations and prospects
of the Company and has had access, during the course of the transactions
contemplated hereby and prior to the Exchange, to such information as it has
deemed material to its investment decision and has had the opportunity to ask
questions of, and receive answers from, the Company concerning the terms and
conditions of the investment and to obtain additional information (to the extent
Company possessed such information or could acquire it without unreasonable
effort or expense) necessary to verify the accuracy of any information furnished
to such Investor or to which such Investor has had access; provided, that
neither the foregoing (nor any other knowledge which such Investor has) shall in
any way limit the scope or effect of the representations and warranties of the
Company set forth in Article V.  Such Investor made, either alone or
together with its advisors, such independent investigation of the Company as
such Investor deems to be, or its advisors deem to be, necessary or advisable in
connection with this investment.  Such Investor understands that no
federal or state agency has passed upon this investment or upon the Company, nor
has any such agency made any finding or determination as to the fairness of this
investment.

     

    Section
4.05.   Authority.  Such
Investor has full legal right, power and authority to enter into and perform
this Agreement and other Transaction Documents to which it is a party, and the
execution and delivery of this Agreement and the other Transaction Documents by
it, and the consummation of the transactions contemplated hereby and thereby,
have been duly authorized by all necessary requisite action (corporate or
otherwise).  Except for compliance with any applicable requirements of
the Securities Act and the Securities Exchange Act, no consent, waiver or
authorization of, or filing with any other Person (including without limitation,
any federal or state governmental authority or other political authority
(collectively, “Governmental
Authority”)) is required in connection with any of the foregoing or with
the validity or enforceability against such Investor of this Agreement and the
other Transaction Documents.  Each of this Agreement and the other
Transaction Documents has been duly executed and delivered by such Investor and
constitutes the legal, valid and binding agreement of such Investor, enforceable
against it in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights generally
and subject to general principles of equity.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    Section
4.06.   No
Conflict.  The execution, delivery and performance of this
Agreement and the other Transaction Documents, and the consummation of the
transactions contemplated hereby and thereby, do not and will not, with or
without the passage of time or the giving of notice or both, (i) conflict
with any provision of such Investor’s Certificate of Incorporation or By-Laws or
other similar organizational documents, (ii) conflict with or violate any
applicable law, statute, treaty, rule, regulation, arbitration award, judgment,
decree, order or other determination of any Governmental Authority
(collectively, “Requirement of Law”)
applicable to such Investor or any mortgage, security, lease, franchise,
agreement, guaranty, instrument or undertaking (collectively, “Contractual
Obligation”) of such Investor or (iii) result in, or require, the
creation or imposition of any lien, charge or other encumbrance on any of the
properties or revenues of such Investor pursuant to any Requirement of Law or
Contractual Obligation.

     

    ARTICLE
V

     

    REPRESENTATIONS AND
WARRANTIES OF THE COMPANY

     

    The
Company represents and warrants to each Investor, as of the date hereof and,
unless such representation speak as to a specified date, as of each Closing, as
follows:

     

    Section
5.01.   Organization.  The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware.

     

    Section
5.02.   Capitalization.  As
of the date hereof, the Company’s authorized capital stock consists 50,000,000
shares of Common Stock and 1,000,000 shares of Preferred Stock, $0.0001 par
value per share, of which 50,000 shares are designated Series A Junior
Participating Preferred Stock and 1,000 shares are designated Series B
Convertible Preferred Stock.  As of the date hereof, the Company’s
issued and outstanding capital stock is as set forth on Schedule B
hereto.  As of the date hereof, other than as set forth on Schedule B,
there are no issued or outstanding options, warrants or other rights to acquire,
or any outstanding securities or obligations convertible into or exchangeable
for, any shares of the capital stock of the Company.

     

    Section
5.03.   Valid Issuance of
Securities.  The Exchange Shares when issued and delivered by
the Company in exchange for the delivery by the Investors of the Series B
Preferred pursuant to the terms of this Agreement, (i) will have been duly
authorized, validly issued, fully paid and nonassessable, (ii) will be free and
clear of all liens, encumbrances, equities and claims (other than securities law
restrictions and those other restrictions set forth in the Amended and Restated
Investor Rights Agreement) and (iii) will be issued without violation of any
preemptive rights.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Section
5.04.   Authority.  The
Company has full legal right, power and authority (i) to enter into and perform
this Agreement and the other Transaction Documents to which it is a party,
including the issuance of the Exchange Shares.  The execution,
delivery and performance of this Agreement and the other Transaction Documents
to which the Company is a party by the Company, the issuance of the Exchange
Shares by the Company and the consummation by the Company of the transactions
contemplated hereby and thereby have all been duly authorized by all necessary
corporate action on the part of the Company.  No consent, waiver or
authorization of, or filing with any other Person (including without limitation,
any Governmental Authority) is required in connection with any of the foregoing
or with the validity or enforceability against the Company of this Agreement,
the other Transaction Documents to which it is a party, and the Exchange Shares,
except for consents, waivers, authorizations or filings which if not obtained or
made would not have a material adverse effect on the Investors’ rights in the
Exchange Shares, and except for required filings under the Securities Act, the
Securities Exchange Act and the rules and regulations thereunder and applicable
state securities laws.  Each of this Agreement and each other
Transaction Document to which the Company is a party has been duly executed and
delivered by the Company and constitutes the legal, valid and binding agreement
of the Company, enforceable against it in accordance with its terms, except as
may be limited by bankruptcy, insolvency, reorganization or similar laws
affecting creditors’ rights generally and subject to general principles of
equity.

     

    Section
5.05.   No
Conflict.  The execution, delivery and performance of this
Agreement and the other Transaction Documents, and the consummation of the
transactions contemplated hereby and thereby, do not and will not, with or
without the passage of time or the giving of notice or both, (i) conflict with
or violate any provision of the Company’s Amended and Restated Certificate of
Incorporation or Amended and Restated By-laws, (ii) conflict with or violate any
Requirement of Law applicable to the Company or any Contractual Obligation of
the Company, in each case in a manner which would have a material adverse effect
on the Investors’ rights in the Exchange Shares or (iii) result in, or require,
the creation or imposition of any lien, charge or other encumbrance on any of
its properties or revenues pursuant to any Requirement of Law or Contractual
Obligation.

     

    Section
5.06.   SEC Reports and Financial
Statements.

     

    (a)     Each
of the Annual Report on Form 10-K for the fiscal year ended December 31, 2008,
the Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2009
and June 30, 2009 and all Current Reports on 8-K filed with the SEC since
January 1, 2009 (collectively, the “SEC Reports”), as of
their respective dates (and, if amended or superseded by a filing prior to the
date of this Agreement, then on the date of such filing), complied in all
material respects with the applicable requirements of the Securities Exchange
Act and the rules and regulations thereunder.  None of the SEC
Reports, as of their respective dates (and, if amended or superseded by a filing
prior to the date of this Agreement, then on the date of such filing), contained
any untrue statement of fact or omitted a statement of a fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, other than facts that
did not have, or would not, individually or in the aggregate, reasonably be
expected to have, a material adverse effect on the business or operations of the
Company.

     

    (b)    The
consolidated financial statements of the Company included in such SEC Reports
(the “Financial
Statements”) comply as to form in all material respects with applicable
accounting requirements and with published rules and regulations of the SEC with
respect thereto, have been prepared in accordance with GAAP (except as may be
indicated in the notes thereto, or in the case of unaudited interim financial
statements, as permitted by Form 10-Q under the Securities Exchange Act) and
fairly present in all material respects, subject, in the case of the unaudited
interim financial statements, to the absence of complete notes and normal,
year-end adjustments, the consolidated financial position of the Company and its
subsidiaries as of the dates thereof.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (c)     Without
limiting the generality of the foregoing, (i) no executive officer of the
Company has failed in any respect to make the certifications required of him or
her under Section 302 or 906 of the Sarbanes-Oxley Act of 2002 with respect to
any SEC Reports and (ii) no enforcement action has been initiated, or to the
knowledge of the Company threatened, against the Company or any of its directors
or executive officers by the SEC relating to disclosures contained in any SEC
Report.

     

    ARTICLE
VI

     

    EXPENSES

     

    Section
6.01.   Expenses.  The
Company agrees that the expenses incurred by the Investors and Management
Stockholders in connection with the negotiation, preparation, execution and
delivery of this Agreement and the other Transaction Documents, and the
consummation of the transactions contemplated hereby and thereby, including
without limitation, in connection with the preparation and filing of all
required filings by the Investors and Management Stockholders with the
Securities and Exchange Commission in connection with the transactions
contemplated hereby, including, to the extent required Section 16 reports and
filings on Schedule 13D and/or Schedule 13G, shall be paid by the
Company.  Except as set forth in the immediately preceding sentence,
each of the parties hereto agrees to pay the expenses incurred by it in
connection with the negotiation, preparation, execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby and
thereby, including without limitation, fees and expenses of counsel to each
party.

     

    ARTICLE
VII

     

    MISCELLANEOUS

     

    Section
7.01.   Notices.  All
notices, requests, demands and other communications under this Agreement must be
in writing and will be deemed duly given, unless otherwise expressly indicated
to the contrary in this Agreement, (i) when personally delivered, (ii) upon
receipt of a telephonic facsimile transmission with a confirmed telephonic
transmission answer back, (iii) three (3) business days after having been
deposited in the United States mail, certified or registered, return receipt
requested, postage prepaid, or (iv) one (1) business day after having been
dispatched by a nationally recognized overnight courier service, addressed to
the parties or their permitted assigns at the following
addresses:

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    if to the
Company:

     

    Highbury
Financial Inc.

    999
Eighteenth Street, Suite 300

    Denver,
Colorado 80202

    Attention:  Richard
S. Foote

    Facsimile:  303-893-2902

     

    with a
copy to:

     

    Bingham
McCutchen LLP

    399 Park
Avenue

    New York,
New York 10022

    Attention:  Floyd
I. Wittlin

    Facsimile:  212-702-3625

     

    if to the
Investors:

     

    120 N.
LaSalle Street, 25th Floor

    Chicago,  Illinois  60601

    Facsimile:  312-268-1335

     

    with a
copy to:

     

    Sonnenschein
Nath & Rosenthal LLP

    233 S.
Wacker Drive

    Suite
7800

    Chicago,
Illinois 60606-6404

    Attention:  Michael
D. Rosenthal

    Facsimile:
312-876-7934

     

    or at
such other address as a party may furnish in writing to each other
party.

     

    Section
7.02.   Further
Assurances.  Each of the parties hereto agrees to use its
reasonable best efforts to take, or cause to be taken, all appropriate action,
and to do, or cause to be done, all things necessary, proper or advisable under
applicable laws and regulations (including, without limitation, in connection
with obtaining any requisite approval) and to execute such agreements, powers of
attorney or other documents or instruments to expeditiously consummate and make
effective the transactions contemplated by this Agreement and the other
Transaction Documents.  In case at any time after the Closing any
further action is necessary or desirable to carry out the purposes of this
Agreement and the other Transaction Documents, the proper officers and directors
of the Company and the Investors shall take all such necessary
action.

     

    Section
7.03.   Survival.  All
warranties, representations, and covenants made herein or in any other
instrument delivered by the parties hereto or on their behalf under this
Agreement shall be considered to have been relied upon and shall survive the
delivery of the Exchange Shares and payment therefor, regardless of any
investigation made by any such party or on its behalf.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Section
7.04.   Amendments, Modifications
and Waivers.  Any covenant, agreement, provision or condition
of this Agreement may be amended or modified, or compliance therewith may be
waived (either generally or in any particular instance and either retroactively
or prospectively), by (and only by) an instrument in writing signed by the
Company and the Investors.

     

    Section
7.05.   Successors and
Assigns.  This Agreement shall be so binding upon and shall
inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors and assigns.

     

    Section
7.06.   Severability.  Should
any part of this Agreement for any reason be declared invalid, such decision
shall not affect the validity of any remaining portion which remaining portion
shall remain in full force and effect as if this Agreement had been executed
with the invalid portion thereto eliminated and it is hereby declared the
intention of the parties hereto that they would have executed the remaining
portion of this Agreement without included therein any such part or parts which
may, for any reason, be hereafter declared invalid.

     

    Section
7.07.   Captions.  The
descriptive headings of the various Sections or parts of this Agreement are for
convenience only and shall not affect the meaning or construction of any of the
provisions hereof.

     

    Section
7.08.   Entire
Agreement.  This Agreement constitutes the entire agreement and
understanding among the parties hereto with respect to the subject matter hereof
and supersedes any and all prior agreements and understandings, written or oral,
relating to the subject matter hereof.

     

    Section
7.09.   Governing
Law.  This Agreement and the rights of the parties hereunder
shall be interpreted in accordance with the laws of the State of Delaware, and
all rights and remedies shall be governed by such laws without regard to
principles of conflicts of laws.  Each of the parties hereby consents
to personal jurisdiction, service of process and venue in the federal or state
courts sitting in the City of Chicago for any claim, suit or proceeding arising
under this Agreement to enforce any arbitration award or obtain equitable relief
and hereby irrevocably agrees that all claims in respect of such action or
proceeding may be heard and determined in such state court or, to the extent
permitted by law, in such federal court (subject to the provisions of Section
7.10 hereof).  To the extent permitted by law, each of the parties
hereby irrevocably consents to the service of process in any such action or
proceeding by the mailing by certified mail of copies of any service or copies
of the summons and complaint and any other process to such party at the address
specified in Section 7.01 hereof.  The parties agree that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Section
7.10.   Dispute
Resolution.  Except as set forth in Section 7.11, all disputes
arising in connection with this Agreement shall be resolved in binding
arbitration in accordance with the applicable rules of the American Arbitration
Association.  The arbitration shall be held in the City of Chicago
before a single arbitrator selected in accordance with Section 11 of the
American Arbitration Association Commercial Arbitration Rules who shall have
substantial experience in the investment advisory industry, and shall otherwise
be conducted in accordance with the American Arbitration Association Commercial
Arbitration Rules.  The parties covenant that they will participate in
the arbitration in good faith and that they will share equally its costs except
as otherwise provided herein.  The provisions of this Section 7.10
shall be enforceable in any court of competent jurisdiction, and the parties
shall bear their own costs in the event of any proceeding to enforce this
Agreement except as otherwise provided herein.  The arbitrator shall
assess costs and expenses (including the reasonable legal fees and expenses of
the prevailing party or parties against the other party or parties to such
proceeding).  Any party unsuccessfully refusing to comply with an
order of the arbitrators shall be liable for costs and expenses, including
attorney’s fees, incurred by the other party in enforcing the
award.

     

    
      Section
7.11.   Indemnification of Investors
and Management Stockholders.  The Company agrees to indemnify,
defend and hold harmless to the fullest extent permitted by applicable law, the
Investors and Management Stockholders from and against all claims, liabilities,
causes of action, actions, suits, proceedings, investigations, judgments,
decrees, losses, damages, fees, costs and expenses (including attorney fees and
expenses of investigation and of enforcing the rights under this Section 7.11 to
the fullest extent permitted by law), whether incurred with respect to third
parties or otherwise, arising out of, resulting from or in connection with,
based upon or relating to any claim by any stockholders of the Company (other
than the Investors and Management Stockholders), whether brought individually,
as a class or derivatively on behalf of the Company, alleging the breach of
fiduciary or other duties of the parties hereto for entering into, challenging
the authority of the Company to enter into, challenging the propriety of the
Board approval of, or otherwise seeking to invalidate, enjoin or modify, or
characterize as fraudulent or tortious, the transactions contemplated hereby or
any portion thereof (collectively “Claims”).  

       

      (a)     Promptly
after receipt by any Investor or Management Stockholder from any third party of
written notice of any demand, claim or circumstance that, immediately or with
the lapse of time, would reasonably be expected to give rise to a Claim (an
“Asserted
Liability”) that might be entitled to indemnification from the Company
under this Section 7.11, the Investor or Management Stockholder shall give
written notice thereof (the “Claims Notice”) to
the Company; provided, however, that a failure to give such notice shall not
prejudice the Investor or Management Stockholders right to indemnification
hereunder except to the extent that the Company is actually prejudiced thereby.
The Claims Notice shall describe the Asserted Liability in such reasonable
detail as is practicable under the circumstances, and shall, to the extent
practicable under the circumstances, indicate the amount (estimated, if
necessary) of the loss that has been or may be suffered by the Investor or
Management Stockholder.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (b)    The
Company may elect to compromise or defend, at its own expense and by its own
counsel, any Asserted Liability; provided, however, that if the named parties to
any action or proceeding include (or could reasonably be expected to include)
both the Company and an Investor or Management Stockholder, or more than one
Investor or Management Stockholder, and the Company is advised by counsel that
representation of both parties by the same counsel would be inappropriate under
applicable standards of professional conduct, the Investor or Management
Stockholder may engage one separate counsel to represent all such Investors and
Management Stockholders at the expense of the Company.  If the Company
elects to compromise or defend such Asserted Liability, it shall within twenty
(20) business days (or sooner, if the nature of the Asserted Liability so
requires) notify the Investor or Management Stockholder of its intent to do so,
and the Investor or Management Stockholder shall cooperate, at the expense of
the Company, in the compromise of, or defense against, such Asserted Liability.
Notwithstanding the foregoing, any settlement or compromise shall not include
any terms and conditions applicable to an Investor or Management Stockholder,
other than the payment of cash to be paid by the Company, without the prior
written consent of such Investor or Management Stockholder.  If the
Company elects not to compromise or defend the Asserted Liability, fails to
notify the Investor or Management Stockholder of its election as herein
provided, contests its obligation to provide indemnification under this
Agreement, or fails to make or ceases making a good faith and diligent defense,
the Investor or Management Stockholder may pay, compromise or defend such
Asserted Liability all at the expense of the Company (in accordance with the
provisions of Section 7.11(c) below). Except as set forth in the preceding
sentence, the Investor or Management Stockholder may not settle or compromise
any claim over the objection of the Company; provided, however, that consent to
settlement or compromise shall not be unreasonably withheld. In any event, the
Investor or Management Stockholder may participate at its own expense in the
defense of such Asserted Liability. The Investor or Management Stockholder shall
in any event make available to the Company any books, records or other documents
within its control that are necessary or appropriate for such defense, all at
the expense of the Company.

     

    (c)     If
the Company elects not to compromise or defend an Asserted Liability, or fails
to notify the Investor or Management Stockholder of its election as above
provided, then, to the fullest extent permitted by applicable law, expenses
(including legal fees) incurred by an Investor or Management Stockholder in
defending any Asserted Liability, shall, from time to time, be advanced by the
Company prior to the final disposition of such claim, demand, action, suit or
proceeding upon receipt by the Company of an undertaking by or on behalf of the
Investor or Management Stockholder to repay such amount if it shall be
determined that the Investor or Management Stockholder is not entitled to be
indemnified as authorized in this Section 7.11, without the provision of any
security.

     

    (d)    The
Investors and the Management Stockholders shall be entitled to enforce their
rights to indemnification and advancement of expenses pursuant to this Section
7.11 by bringing an action in the Delaware Court of Chancery in accordance with
Section 145(k) of the Delaware General Corporation law, which court may
summarily determine the Company’s obligation to advance expenses (including
attorneys’ fees).

     

    Section
7.12.   Remedies.  Each
party to this Agreement acknowledges and agrees that in the event of any breach
of this Agreement by any one of them, any of the parties, as the case may be,
would be irreparably harmed and could not be made whole by monetary
damages.  Each party accordingly agrees (a) to waive the defense in
any action for specific performance that a remedy at law would be adequate and
(b) each party, in addition to any other remedy to which they may be entitled at
law or in equity, shall be entitled to compel specific performance of this
Agreement.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Section
7.13.   Counterparts.  This
Agreement may be executed in any number of counterparts and by facsimile, each
of which shall be considered an original, but all of which taken together shall
constitute one instrument.

     

    Section
7.14.   Interpretation.  No
provisions of this Agreement shall be construed against or interpreted to the
disadvantage of any party hereto by any court or other governmental or judicial
authority by reason of such party having or being deemed to have drafted or
dictated such provision.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.

     

    
      
        	 
      	
                COMPANY:

              
	 
      	 
      
	 
      	
                HIGHBURY
      FINANCIAL INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Richard S. Foote

              
	 
      	 
      	
                Name:  Richard
      S. Foote

              
	 
      	 
      	
                Title:  President
      & CEO

              

      

    

     

    
      
        
          	 
      	
                  INVESTORS:

                
	 
      	 
      
	 
      	
                  SDB
      ASTON, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Stuart D. Bilton

                
	 
      	 
      	
                  Name:
      Stuart D. Bilton

                
	 
      	 
      	
                  Title:  
      President

                
	 
      	 
      	 
      
	 
      	
                  KCA
      ASTON, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Kenneth C. Anderson

                
	 
      	 
      	
                  Name:
      Kenneth C. Andersen

                
	 
      	 
      	
                  Title:   President

                
	 
      	 
      	 
      
	 
      	
                  GFD
      ASTON, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Gerald F. Dillenburg

                
	 
      	 
      	
                  Name:
      Gerald F. Dillenburg

                
	 
      	 
      	
                  Title: 
       President

                
	 
      	 
      	 
      
	 
      	
                  CRD
      ASTON, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Christine R. Dragon

                
	 
      	 
      	
                  Name:
      Christine R. Dragon

                
	 
      	 
      	
                  Title: 
       President

                
	 
      	 
      	 
      
	 
      	
                  JH
      ASTON, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Joseph Hays

                
	 
      	 
      	
                  Name:
      Joseph Hays

                
	 
      	 
      	
                  Title: 
       President

                

        

      

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      
        	 
      	
                BCH
      ASTON, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Betsy C. Heaberg

              
	 
      	 
      	
                Name:
      Betsy C. Heaberg

              
	 
      	 
      	
                Title:  
      President

              
	 
      	 
      	 
      
	 
      	
                DAR
      ASTON, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ David A. Robinow

              
	 
      	 
      	
                Name:
      David A. Robinow

              
	 
      	 
      	
                Title: 
       President

              
	 
      	 
      	 
      
	 
      	
                JPR
      ASTON, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ John P. Rouse

              
	 
      	 
      	
                Name:
      John P. Rouse

              
	 
      	 
      	
                Title:  
      President

              

      

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    SCHEDULE
A

     

    
      
        
          	
                  Management Stockholders

                	 
      	
                  Investors

                	 
      	
                  Series B

                  Preferred Stock

                	 
      
	 	 	 	 	 	 
	
                  Stuart
      D. Bilton

                	 
      	
                  SDB
      Aston, Inc.

                	 
      	
                  371.44

                	 
      
	
                  Kenneth
      C. Anderson

                	 
      	
                  KCA
      Aston, Inc.

                	 
      	
                  285.72

                	 
      
	
                  Gerald
      Dillenburg

                	 
      	
                  GFD
      Aston, Inc.

                	 
      	
                  142.86

                	 
      
	
                  Christine
      R. Dragon

                	 
      	
                  CRD
      Aston, Inc.

                	 
      	
                  57.14

                	 
      
	
                  Joseph
      Hays

                	 
      	
                  JH
      Aston, Inc.

                	 
      	
                  35.71

                	 
      
	
                  Betsy
      Heaberg

                	 
      	
                  BCH
      Aston, Inc.

                	 
      	
                  35.71

                	 
      
	
                  David
      Robinow

                	 
      	
                  DAR
      Aston, Inc.

                	 
      	
                  35.71

                	 
      
	
                  John
      Rouse

                	 
      	
                  JPR
      Aston, Inc.

                	 
      	
                  35.71

                	 
      
	 
      	 
      	
                  TOTAL
      OUTSTANDING

                	 
      	
                  1,000

                	 
      

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
B

     

    CAPITALIZATION

     

    Issued
and Outstanding Capital Stock:

    

    0 shares
of Series A Junior Participating Preferred Stock

    1,000
shares of Series B Preferred Stock

    9,085,035
shares of Common Stock

    

    Rights
to Purchase Capital Stock of the Company:

    

    Warrants
to purchase shares of 10,762,008 shares of Common Stock (subject to certain
anti-dilution adjustments)

    

    Rights
issued pursuant to that certain Rights Agreement, dated August 10, 2009, between
the Company and Continental Stock Transfer & Trust Company to purchase
shares of Series A Junior Participating Preferred Stock that are not immediately
exercisable.

    

    4,500,000
shares issuable upon conversion of shares of Series B Preferred Stock (subject
to certain anti-dilution adjustments)EXHIBIT
10.2

     

    HIGHBURY
FINANCIAL INC.

     

    AMENDED
AND RESTATED INVESTOR RIGHTS AGREEMENT

     

    This
Amended and Restated Investor Rights Agreement (the “Agreement”) dated as
of September 14, 2009, is made by and among Highbury Financial Inc., a
Delaware corporation (the “Company”), the
parties named on Schedule A hereto as
Investors (individually, an “Investor” and
collectively, the “Investors”) and the
parties named on Schedule A hereto as
Management Stockholders (the “Management
Stockholders”).

     

    RECITALS

     

    WHEREAS,
on August 10, 2009, the Company and the Investors entered into an
Exchange Agreement (the “First Exchange
Agreement”) pursuant to which the Company agreed to issue to the
Investors, and the Investors agreed to exchange (the “First Exchange”)
Series B LLC Units of Aston Asset Management LLC with the Company for, shares of
the Company’s Series B Convertible Preferred Stock, $0.0001 par value per share
(the “Series B
Preferred Stock”);

     

    WHEREAS,
as a condition to, and in connection with, the First Exchange, the Company, the
Investors and the Management Stockholders entered into an Investor Rights
Agreement as of August 10, 2009 (the “Investor Rights
Agreement”);

     

    WHEREAS,
the Company and the Investors have entered into an Exchange Agreement (the
“Second Exchange
Agreement”) dated as of even date herewith pursuant to which the Company
agreed to issue to the Investors, subject to the conditions set forth in the
Second Exchange Agreement, and the Investors agreed to exchange (the “Second Exchange”)
shares of Series B Preferred Stock for shares of the Company’s common
stock, $0.0001 par value per share (the “Common Stock”); and

     

    WHEREAS,
it is a condition to the Second Exchange that the Company and the Investors
amend and restate the Investor Rights Agreement as hereinafter
provided.

     

    AGREEMENT

     

    NOW,
THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties, intending to be legally bound, hereby agree to amend and restate the
Investor Rights Agreement as follows:

    ARTICLE
I

     

    REGISTRATION
RIGHTS

     

    Section
1.01.         Certain
Definitions.  For purposes of this Agreement:

     

    “Agreement” means this
Agreement, as amended, restated, supplemented, or otherwise modified from time
to time.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Certificate of
Designation” means the Certificate of Designation with respect to the
Series B Preferred Stock.

     

    “Commission” means the
Securities and Exchange Commission, or any other federal agency then
administering the Securities Act or the Exchange Act.

     

    “Common Stock” is
defined in the recitals to this Agreement.

     

    “Company” is defined
in the preamble to this Agreement.

     

    “Conversion Shares”
means any shares of Common Stock issued upon the conversion of Series B
Preferred Stock and the Second Exchange Shares.

     

    “Demand Registration”
is defined in Section 1.02(a).

     

    “Demanding Holder” is
defined in Section 1.02(a).

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
of the Commission promulgated thereunder, all as the same shall be in effect at
the time.

     

    “First Exchange
Agreement” is defined in the recitals to this Agreement.

     

    “First Exchange” is
defined in the recitals to this Agreement.

     

    “Form S-3” is defined
in Section 1.04.

     

    “Founders Registration Rights
Agreement” means that certain Registration Rights Agreement dated January
25, 2006 among the Company and the Investors named on the signature pages
thereto, as amended from time to time.

     

    “Indemnified Party” is
defined in Section 1.10(c).

     

    “Indemnifying Party”
is defined in Section 1.10(c).

     

    “Investor” is defined
in the preamble to this Agreement.

     

    “Investor Indemnified
Party” is defined in Section 1.10(a).

     

    “Investor Rights
Agreement” is defined in the recitals to this Agreement.

     

    “Management
Stockholders” is defined in the preamble to this Agreement.

     

    “Maximum Number of
Shares” is defined in Section 1.02(d).

     

    “Piggy-Back
Registration” is defined in Section 1.03(a).

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Register,” “registered” and
“registration”
mean a registration effected by preparing and filing a registration statement or
similar document in compliance with the requirements of the Securities Act, and
the applicable rules and regulations promulgated thereunder, and such
registration statement becoming effective.

     

    “Registrable
Securities” means all of the Conversion Shares, owned or held by
Investors, together with any warrants, shares of capital stock or other
securities of the Company issued as a dividend or other distribution with
respect to or in exchange for or in replacement of shares of Common Stock that
are Registrable Securities.  As to any particular Registrable
Securities, such securities shall cease to be Registrable Securities when: (a) a
Registration Statement, with respect to the sale of such securities shall have
become effective under the Securities Act and such securities shall have been
sold, transferred, disposed of or exchanged in accordance with such Registration
Statement; (b) such securities shall have been otherwise transferred, new
certificates for them not bearing a legend restricting further transfer shall
have been delivered by the Company and subsequent public distribution of them
shall not require registration under the Securities Act; (c) such securities
shall have ceased to be outstanding, or (d) such Registrable Securities become
eligible to be publicly sold without limitation as to amount or manner of sale
pursuant to Rule 144 (or any successor provision) under the Securities
Act.

     

    “Registration
Statement” means a registration statement filed by the Company with the
Commission in compliance with the Securities Act and the rules and regulations
promulgated thereunder for a public offering and sale of Common Stock (other
than a registration statement on Form S-4 or Form S-8, or their successors, or
any registration statement covering only securities proposed to be issued in
exchange for securities or assets of another entity).

     

    “Second Exchange” is
defined in the recitals to this Agreement.

     

    “Second Exchange
Agreement” is defined in the recitals to this Agreement.

     

    “Second Exchange
Shares” is defined in Section 2.01.

     

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder, all as the same shall be in effect at the
time.

     

    “Series B Preferred
Stock” is defined in the recitals to this Agreement.

     

    “Underwriter” means a
securities dealer who purchases any Registrable Securities as principal in an
underwritten offering and not as part of such dealer’s market-making
activities.

     

    
      
        
           

        

        
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    Section
1.02.         Demand
Registration.

    (a)           Request for
Registration.  Subject to the restrictions on transfer set
forth in Article II hereof, the holders of a majority-in-interest of the then
outstanding Registrable Securities held by the Investors or the transferees of
the Investors, may make a written demand for registration under the Securities
Act of all or part of their Registrable Securities (a “Demand
Registration”); provided that the number of shares of Registrable
Securities requested to be included in any such Demand Registration shall in no
event be less than 500,000 shares of Common Stock (as ratably adjusted on
account of any stock splits, stock combinations, stock dividends or similar
recapitalizations with respect to the Series B Preferred Stock).  Any
demand for a Demand Registration shall specify the number of shares of
Registrable Securities proposed to be sold and the intended method(s) of
distribution thereof.  The Company will notify all holders of
Registrable Securities of the demand within five (5) business days, and each
holder of Registrable Securities who wishes to include all or a portion of such
holder’s Registrable Securities in the Demand Registration (each such holder
including shares of Registrable Securities in such registration, a “Demanding Holder”)
shall so notify the Company within fifteen (15) days after the receipt by the
holder of the notice from the Company.  Upon any such request, the
Demanding Holders shall be entitled to have their Registrable Securities
included in the Demand Registration, subject to Section 1.02(d) and the provisos
set forth in Section 1.05(a).  The Company shall not be obligated to
effect more than an aggregate of three (3) Demand Registrations under this
Section 1.02(a) in respect of Registrable Securities.

     

    (b)           Effective
Registration.  A registration will not count as a Demand
Registration until the Registration Statement filed with the Commission with
respect to such Demand Registration has been declared effective and the Company
has complied with all of its obligations under this Agreement with respect
thereto; provided, however, that if, after such Registration Statement has been
declared effective, the offering of Registrable Securities pursuant to a Demand
Registration is interfered with by any stop order or injunction of the
Commission or any other governmental agency or court, the Registration Statement
with respect to such Demand Registration will be deemed not to have been
declared effective, unless and until, (i) such stop order or injunction is
removed, rescinded or otherwise terminated, and (ii) a majority-in-interest of
the Demanding Holders thereafter elect to continue the offering; provided,
further, that the Company shall not be obligated to file a second Registration
Statement until a Registration Statement that has been filed is counted as a
Demand Registration or is terminated.

     

    (c)           Underwritten
Offering.  If a majority-in-interest of the Demanding Holders
so elect and such holders so advise the Company as part of their written demand
for a Demand Registration, the offering of such Registrable Securities pursuant
to such Demand Registration shall be in the form of an underwritten
offering.  In such event, the right of any holder to include its
Registrable Securities in such registration shall be conditioned upon such
holder’s participation in such underwriting and the inclusion of such holder’s
Registrable Securities in the underwriting to the extent provided
herein.  All Demanding Holders proposing to distribute their
securities through such underwriting shall enter into an underwriting agreement
in customary form with the Underwriter or Underwriters selected for such
underwriting by a majority-in-interest of the holders initiating the Demand
Registration.

    
      
         

      

      
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    (d)           Reduction of
Offering.  If the managing Underwriter or Underwriters for a
Demand Registration that is to be an underwritten offering advises the Company
and the Demanding Holders in writing that the dollar amount or number of shares
of Registrable Securities which the Demanding Holders desire to sell, taken
together with all other shares of Common Stock or other securities which the
Company desires to sell and the shares of Common Stock, if any, as to which
registration has been requested pursuant to written contractual piggy-back
registration rights held by other security holders of the Company who desire to
sell, exceeds the maximum dollar amount or maximum number of shares that can be
sold in such offering without adversely affecting the proposed offering price,
the timing, the distribution method, or the probability of success of such
offering, (such maximum dollar amount or maximum number of shares, as
applicable, the “Maximum Number of
Shares”), then the Company shall include in such registration: (i) first,
the Registrable Securities as to which Demand Registration has been requested by
the Demanding Holders (pro rata in accordance with the number of shares of
Registrable Securities which such Demanding Holder has requested be included in
such registration, regardless of the number of shares of Registrable Securities
held by each Demanding Holder) that can be sold without exceeding the Maximum
Number of Shares; (ii) second, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clause (i), the shares of Common
Stock for the account of other persons that the Company is obligated to register
pursuant to the terms of the Founders Registration Rights Agreement and that can
be sold without exceeding the Maximum Number of Shares; (iii) third, to the
extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (i) and (ii), the shares of Common Stock or other securities
that the Company desires to sell that can be sold without exceeding the Maximum
Number of Shares; and (iv) fourth, to the extent that the Maximum Number of
Shares have not been reached under the foregoing clauses (i), (ii), and (iii),
the shares of Common Stock that other shareholders desire to sell that can be
sold without exceeding the Maximum Number of Shares.

     

    (e)           Withdrawal.  If
a majority-in-interest of the Demanding Holders disapprove of the terms of any
underwriting or are not entitled to include all of their Registrable Securities
in any offering, such majority-in-interest of the Demanding Holders may elect to
withdraw from such offering by giving written notice to the Company and the
Underwriter or Underwriters of their request to withdraw prior to the
effectiveness of the Registration Statement filed with the Commission with
respect to such Demand Registration.  If the majority-in-interest of
the Demanding Holders withdraws from a proposed offering relating to a Demand
Registration, then such registration shall not count as a Demand Registration
provided for in Section 1.02(a).

     

    Section
1.03.         Piggy-Back
Registration.

     

    (a)           Piggy-Back
Rights.  Subject to the restrictions on transfer set forth in
Article II hereof,  if at anytime that any Registrable Securities are
outstanding the Company proposes to file a Registration Statement under the
Securities Act with respect to an offering of equity securities, or securities
or other obligations exercisable or exchangeable for, or convertible into,
equity securities, by the Company for its own account or for shareholders of the
Company for their account (or by the Company and by shareholders of the Company
including, without limitation, pursuant to Section 1.02), other than a
Registration Statement (i) filed in connection with any employee stock option or
other benefit plan, (ii) for an exchange offer or offering of securities solely
to the Company’s existing shareholders, (iii) for an offering of debt that is
convertible into equity securities of the Company or (iv) for a dividend
reinvestment plan, then the Company shall (x) give written notice of such
proposed filing to the holders of Registrable Securities as soon as practicable
but in no event less than ten (10) days before the anticipated filing date,
which notice shall describe the amount and type of securities to be included in
such offering, the intended method(s) of distribution, and the name of the
proposed managing Underwriter or Underwriters, if any, of the offering, and (y)
offer to the holders of Registrable Securities in such notice the opportunity to
register the sale of such number of shares of Registrable Securities as such
holders may request in writing within fifteen (15) days following receipt of
such notice (a “Piggy-Back
Registration”).  The Company shall cause such Registrable
Securities to be included in such registration and shall use its best efforts to
cause the managing Underwriter or Underwriters of a proposed underwritten
offering to permit the Registrable Securities requested to be included in a
Piggy-Back Registration to be included on the same terms and conditions as any
similar securities of the Company and to permit the sale or other disposition of
such Registrable Securities in accordance with the intended method(s) of
distribution thereof.  All holders of Registrable Securities proposing
to distribute their securities through a Piggy-Back Registration that involves
an Underwriter or Underwriters shall enter into an underwriting agreement in
customary form with the Underwriter or Underwriters selected for such Piggy-Back
Registration.

    
      
         

      

      
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    (b)           Reduction of
Offering.  If the managing Underwriter or Underwriters for a
Piggy-Back Registration that is to be an underwritten offering advises the
Company and the holders of Registrable Securities in writing that the dollar
amount or number of shares of Common Stock which the Company desires to sell,
taken together with shares of Common Stock, if any, as to which registration has
been demanded pursuant to written contractual arrangements with persons other
than the holders of Registrable Securities hereunder, the Registrable Securities
as to which registration has been requested under this Section 1.03, and the
shares of Common Stock, if any, as to which registration has been requested
pursuant to the written contractual piggy-back registration rights of other
shareholders of the Company, exceeds the Maximum Number of Shares, then the
Company shall include in any such registration:

     

    (i)           If
the registration is undertaken for the Company’s account: (A) first, the
shares of Common Stock or other securities that the Company desires to sell that
can be sold without exceeding the Maximum Number of Shares; (B) second, to the
extent that the Maximum Number of Shares has not been reached under the
foregoing clause (A), the shares of Common Stock, if any, including the
Registrable Securities, as to which registration has been requested pursuant to
written contractual piggy-back registration rights of security holders (pro rata
in accordance with the number of shares of Common Stock which each such person
has actually requested to be included in such registration, regardless of the
number of shares of Common Stock with respect to which such persons have the
right to request such inclusion) that can be sold without exceeding the Maximum
Number of Shares; and

    (ii)           If
the registration is a “demand” registration
undertaken at the demand of persons other than the holders of Registrable
Securities pursuant to written contractual arrangements with such persons, (A)
first, the shares of Common Stock for the account of the demanding persons that
can be sold without exceeding the Maximum Number of Shares; (B) second, to the
extent that the Maximum Number of Shares has not been reached under the
foregoing clause (A), the shares of Common Stock or other securities that the
Company desires to sell that can be sold without exceeding the Maximum Number of
Shares; and (C) third, to the extent that the Maximum Number of Shares has
not been reached under the foregoing clauses (A) and (B), the shares of Common
Stock as to which registration has been requested pursuant to the terms of the
Founders Registration Rights Agreement; (C) fourth, to the extent that the
Maximum Number of Shares has not been reached under the foregoing clauses (A),
(B) and (C), the Registrable Securities as to which registration has been
requested under this Section 1.03 (pro rata in accordance with the number of
shares of Registrable Securities held by each such holder) and (E) fifth, to the
extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (A), (B), (C) and (D), the shares of Common Stock, if any, as
to which registration has been requested pursuant to written contractual
piggy-back registration rights which other shareholders desire to sell that can
be sold without exceeding the Maximum Number of Shares.

     

    
      
        
           

        

        
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    (c)           Withdrawal.  Any
holder of Registrable Securities may elect to withdraw such holder’s request for
inclusion of Registrable Securities in any Piggy-Back Registration by giving
written notice to the Company of such request to withdraw prior to the
effectiveness of the Registration Statement.  The Company may also
elect to withdraw a registration statement at any time prior to the
effectiveness of the Registration Statement.  Notwithstanding any such
withdrawal, the Company shall pay all expenses incurred by the holders of
Registrable Securities in connection with such Piggy-Back Registration as
provided in this Section 1.03.

     

    Section
1.04.         Registrations on Form
S-3.  The holders of Registrable Securities may at any time and
from time to time that any Registrable Securities are outstanding, request in
writing that the Company register the resale of any or all of such Registrable
Securities on Form S-3 or any similar short-form registration which may be
available at such time (“Form S-3”); provided,
however, that the Company shall not be obligated to effect such request through
an underwritten offering.  Upon receipt of such written request, the
Company will promptly give written notice of the proposed registration to all
other holders of Registrable Securities, and, as soon as practicable thereafter,
effect the registration of all or such portion of such holder’s or holders’
Registrable Securities as are specified in such request, together with all or
such portion of the Registrable Securities of any other holder or holders
joining in such request as are specified in a written request given within
fifteen (15) days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to effect any such
registration pursuant to this Section 1.04:  (i) if Form S-3 is not
available for such offering; or (ii) if the holders of the Registrable
Securities, together with the holders of any other securities of the Company
entitled to inclusion in such registration, propose to sell Registrable
Securities and such other securities (if any) at any aggregate price to the
public of less than $500,000.  Registrations effected pursuant to this
Section 1.04 shall not be counted as Demand Registrations effected pursuant to
Section 1.02.

     

    Section
1.05.         Filings;
Information.  Whenever the Company is required to effect the
registration of any Registrable Securities pursuant to this Article I, the
Company shall use its best efforts to effect the registration and sale of such
Registrable Securities in accordance with the intended method(s) of distribution
thereof as expeditiously as practicable, and in connection with any such
request:

    
      
         

      

      
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    (a)           Filing Registration
Statement.  The Company shall, as expeditiously as possible and
in any event within sixty (60) days after receipt of a request for a Demand
Registration pursuant to Section 1.02, prepare and file with the Commission a
Registration Statement on any form for which the Company then qualifies or which
counsel for the Company shall deem appropriate and which form shall be available
for the sale of all Registrable Securities to be registered thereunder in
accordance with the intended method(s) of distribution thereof, and shall use
its best efforts to cause such Registration Statement to become and remain
effective for the period required by Section 1.05(c); provided, however, that
the Company shall have the right to defer any Demand Registration for up to
ninety (90) days, and any Piggy-Back Registration for such period as may be
applicable to deferment of any demand registration to which such Piggy-Back
Registration relates, in each case if the Company shall furnish to the holders a
certificate signed by the Chief Executive Officer of the Company stating that,
in the good faith judgment of the Board of Directors of the Company, it would be
materially detrimental to the Company and its shareholders for such Registration
Statement to be effected at such time; provided further, however, that the
Company shall not have the right to exercise the right set forth in the
immediately preceding proviso more than once in any 365-day period in respect of
a Demand Registration hereunder.

     

    (b)           Copies.  The
Company shall, prior to filing a Registration Statement or prospectus, or any
amendment or supplement thereto, furnish without charge to the holders of
Registrable Securities included in such registration, and such holders’ legal
counsel, copies of such Registration Statement as proposed to be filed, each
amendment and supplement to such Registration Statement (in each case including
all exhibits thereto and documents incorporated by reference therein), the
prospectus included in such Registration Statement (including each preliminary
prospectus), and such other documents as the holders of Registrable Securities
included in such registration or legal counsel for any such holders may request
in order to facilitate the disposition of the Registrable Securities owned by
such holders.

     

    (c)           Amendments and
Supplements.  The Company shall prepare and file with the
Commission such amendments, including post-effective amendments, and supplements
to such Registration Statement and the prospectus used in connection therewith
as may be necessary to keep such Registration Statement effective and in
compliance with the provisions of the Securities Act until all Registrable
Securities and other securities covered by such Registration Statement have been
disposed of in accordance with the intended method(s) of distribution set forth
in such Registration Statement (which period shall not exceed the sum of one
hundred eighty (180) days plus any period during which any such disposition is
interfered with by any atop order or injunction of the Commission or any
governmental agency or court) or such securities have been withdrawn from
inclusion in such Registration Statement.

    
      
         

      

      
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    (d)           Notification.  After
the filing of a Registration Statement, the Company shall promptly, and in no
event more than two (2) business days after such filing, notify the holders of
Registrable Securities included in such Registration Statement of such filing,
and shall further notify such holders promptly and confirm such advice in
writing in all events within two (2) business days of the occurrence of any
of the following: (i) when such Registration Statement becomes effective; (ii)
when any post-effective amendment to such Registration Statement becomes
effective; (iii) the issuance or threatened issuance by the Commission of any
stop order (and the Company shall take all actions required to prevent the entry
of such stop order or to remove it if entered); and (iv) any request by the
Commission for any amendment or supplement to such Registration Statement or any
prospectus relating thereto or for additional information or of the occurrence
of an event requiring the preparation of a supplement or amendment to such
prospectus so that, as thereafter delivered to the purchasers of the securities
covered by such Registration Statement, such prospectus will not contain an
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not misleading,
and promptly make available to the holders of Registrable Securities included in
such Registration Statement any such supplement or amendment; except that before
filing with the Commission a Registration Statement or prospectus or any
amendment or supplement thereto, including documents incorporated by reference,
the Company shall furnish to the holders of Registrable Securities included in
such Registration Statement and to the legal counsel for any such holders,
copies of all such documents proposed to be filed sufficiently in advance of
filing to provide such holders and legal counsel with a reasonable opportunity
to review such documents and comment thereon, and the Company shall not file any
Registration Statement or prospectus or amendment or supplement thereto,
including documents incorporated by reference, to which such holders or their
legal counsel shall reasonably object.

     

    (e)           State Securities Laws
Compliance.  The Company shall use commercially reasonable
efforts to (i) register or qualify the Registrable Securities covered by the
Registration Statement under such securities or “blue sky” laws of
such jurisdictions in the United States as the holders of Registrable Securities
included in such Registration Statement (in light of their intended plan of
distribution) may request and (ii) take such action necessary to cause such
Registrable Securities covered by the Registration Statement to be registered
with or approved by such other federal or state authorities as may be necessary
by virtue of the business and operations of the Company and do any and all other
acts and things that may be necessary or advisable to enable the holders of
Registrable Securities included in such Registration Statement to consummate the
disposition of such Registrable Securities in such jurisdictions; provided,
however, that in no event shall the Company be required to register the
Registrable Securities in a jurisdiction in which such registration would cause
the Company to be obligated to qualify to do business in any such jurisdiction,
or would subject the Company to taxation as a foreign corporation doing business
in such jurisdiction.

     

    (f)           Agreements for
Disposition.  The Company shall enter into customary agreements
(including, if applicable, an underwriting agreement in customary form) and take
such other actions as are reasonably required in order to expedite or facilitate
the disposition of such Registrable Securities.  The representations,
warranties and covenants of the Company in any underwriting agreement which are
made to or for the benefit of any Underwriters, to the extent applicable, shall
also be made to and for the benefit of the holders of Registrable Securities
included in such registration statement.  No holder of Registrable
Securities included in such registration statement shall be required to make any
representations or warranties in the underwriting agreement except, if
applicable, with respect to such holder’s organization, good standing,
authority, title to Registrable Securities, lack of conflict of such sale with
such holder’s material agreements and organizational documents, and with respect
to written information relating to such holder that such holder has furnished in
writing expressly for inclusion in such Registration
Statement.  Holders of Registrable Securities shall agree to such
covenants and indemnification and contribution obligations for selling
stockholders as are customarily contained in agreements of that
type.  Further, such holders shall cooperate fully in the preparation
of the registration statement and other documents relating to any offering in
which they include securities pursuant to Article I hereof.  Each
holder shall also furnish to the Company such information regarding itself, the
Registrable Securities held by such holder, and the intended method of
disposition of such securities shall be reasonably required to effect the
registration of the Registrable Securities.

    
      
         

      

      
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    (g)           Cooperation.  The
principal executive officer of the Company, the principal financial officer of
the Company, the principal accounting officer of the Company and all other
officers and members of the management of the Company shall cooperate fully in
any offering of Registrable Securities hereunder, which cooperation shall
include, without limitation, the preparation of the Registration Statement with
respect to such offering and all other offering materials and related documents,
and participation in meetings with Underwriters, attorneys, accountants and
potential investors.

     

    (h)           Records.  The
Company shall make available for inspection by the holders of Registrable
Securities included in such Registration Statement, any Underwriter
participating in any disposition pursuant to such registration statement and any
attorney, accountant or other professional retained by any holder of Registrable
Securities included in such Registration Statement or any Underwriter, all
financial and other records, pertinent corporate documents and properties of the
Company, as shall be necessary to enable them to exercise their due diligence
responsibility, and cause the Company’s officers, directors and employees to
supply all information requested by any of them in connection with such
Registration Statement.

     

    (i)           Opinions and Comfort
Letters.  The Company shall furnish to each holder of
Registrable Securities included in any Registration Statement a signed
counterpart, addressed to such holder, of (i) any opinion of counsel to the
Company delivered to any Underwriter and (ii) any comfort letter from the
Company’s independent public accountants delivered to any
Underwriter.  In the event no legal opinion is delivered to any
Underwriter, the Company shall furnish to each holder of Registrable Securities
included in such Registration Statement, at any time that such holder elects to
use a prospectus, an opinion of counsel to the Company to the effect that the
Registration Statement containing such prospectus has been declared effective
and that no stop order is in effect.

     

    (j)           Earnings
Statement.  The Company shall comply with all applicable rules
and regulations of the Commission and the Securities Act and make available to
its shareholders, as soon as practicable, an earnings statement covering a
period of twelve (12) months, beginning within three (3) months after the
effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder.

     

    (k)           Listing.  The
Company shall use its best efforts to cause all Registrable Securities included
in any registration to be listed on such exchanges or otherwise designated for
trading in the same manner as similar securities issued by the Company are then
listed or designated or, if no such similar securities are then listed or
designated, in a manner satisfactory to the holders of a majority of the
Registrable Securities included in such registration.

    
      
         

      

      
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    Section
1.06.         Obligation to Suspend
Distribution.  Upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 1.05(d)(iv), or, in
the case of a resale registration on Form S-3 pursuant to Section 1.04 hereof,
upon any suspension by the Company, pursuant to a written insider trading
compliance program adopted by the Company’s Board of Directors, of the ability
of all “insiders” covered by such program to transact in the Company’s
securities because of the existence of material non-public information and
holder would be deemed an “insider” under such program, each holder of
Registrable Securities included in any registration shall immediately
discontinue disposition of such Registrable Securities pursuant to the
Registration Statement covering such Registrable Securities until such holder
receives the supplemented or amended prospectus contemplated by Section
1.05(d)(iv) or the restriction on the ability of “insiders” to transact in the
Company’s securities is removed or is inapplicable to such holder, as
applicable, and, if so directed by the Company, each such holder will deliver to
the Company all copies, other than permanent file copies then in such holder’s
possession, of the most recent prospectus covering such Registrable Securities
at the time of receipt of such notice.

     

    Section
1.07.         Registration
Expenses.  The Company shall bear all costs and expenses
incurred in connection with any Demand Registration pursuant to Section 1.02,
any Piggy-Back Registration pursuant to Section 1.03, and any registration on
Form S-3 effected pursuant to Section 1.04, and all expenses incurred in
performing or complying with its other obligations under this Agreement, whether
or not the Registration Statement becomes effective, including, without
limitation; (i) all registration and filing fees; (ii) fees and expenses of
compliance with securities or “blue sky” laws (including fees and disbursements
of counsel in connection with blue sky qualifications of the Registrable
Securities); (iii) printing expenses; (iv) the Company’s internal expenses
(including, without limitation, all salaries and expenses of its officers and
employees); (v) the fees and expenses incurred in connection with the listing of
the Registrable Securities as required by Section 1.05(k); (vi) Financial
Industry Regulatory Authority fees; (vii) fees and disbursements of counsel
for the Company and fees and expenses for independent certified public
accountants retained by the Company (including the expenses or costs associated
with the delivery of any opinions or comfort letters requested pursuant to
Section 1.05(i)); (viii) the fees and expenses of any special experts
retained by the Company in connection with such registration; and (ix) the
reasonable fees and expenses of one legal counsel selected by the holders of a
majority-in-interest of the Registrable Securities included in such
registration.  The Company shall have no obligation to pay any
underwriting discounts or selling commissions or transfer taxes, if any,
attributable to the Registrable Securities being sold by the holders thereof,
which underwriting discounts or selling commissions or transfer taxes, if any,
shall be borne by such holders.  Additionally, in an underwritten
offering, all selling shareholders and the Company shall bear the expenses of
the underwriter pro rata in proportion to the respective amount of shares each
is selling in such offering.

     

    Section
1.08.         Information.  The
holders of Registrable Securities shall provide such information relating to
such holder and its intended method of distribution of such Registrable
Securities as may reasonably be requested by the Company, or the managing
Underwriter, if any, in connection with the preparation of any Registration
Statement, including amendments and supplements thereto, in order to effect the
registration of any Registrable Securities under the Securities Act pursuant to
this Article I and in connection with the Company’s obligation to comply with
federal and applicable state securities laws.

     

    
      
        
           

        

        
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    Section
1.09.         Holder
Obligations.  No holder of Registrable Securities may
participate in any underwritten offering pursuant to this Article I unless such
holder (i) agrees to sell only such holder’s Registrable Securities on the basis
reasonably provided in any underwriting agreement, and (ii) completes, executes
and delivers any and all questionnaires, powers of attorney, custody agreements,
indemnities, underwriting, agreements and other documents reasonably required by
or under the terms of any underwriting agreement or as reasonably requested by
the Company.

     

    Section
1.10.         Indemnification and
Contribution.

     

    (a)           Indemnification by the
Company.  The Company agrees to indemnify and hold harmless
each Investor and each other holder of Registrable Securities, and each of their
respective officers, employees, affiliates, directors, partners, members and
agents, and each person, if any, who controls an Investor and each other holder
of Registrable Securities (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) (each, an “Investor Indemnified
Party”), from and against any expenses, losses, judgments, claims,
damages or liabilities, whether joint or several, arising out of or based upon
any untrue statement (or allegedly untrue statement) of a material fact
contained in any Registration Statement under which the sale of such Registrable
Securities was registered under the Securities Act, any preliminary prospectus,
final prospectus or summary prospectus contained in the Registration Statement,
or any amendment or supplement to such Registration Statement, or arising out of
or based upon any omission (or alleged omission) to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or any violation by the Company of the Securities Act or any rule or
regulation promulgated thereunder applicable to the Company and relating to
action or inaction required of the Company in connection with any such
registration; and the Company shall promptly reimburse the Investor Indemnified
Party for any legal and any other expenses reasonably incurred by such Investor
Indemnified Party in connection with investigating and defending any such
expense, loss, judgment, claim, damage, liability or action; provided, however,
that the Company will not be liable in any such case to the extent that any such
expense, loss, claim, damage or liability arises out of or is based upon any
untrue statement or allegedly untrue statement or omission or alleged omission
made in such Registration Statement, preliminary prospectus, final prospectus,
or summary prospectus, or any such amendment or supplement, in reliance upon and
in conformity with information furnished to the Company, in writing, by such
selling holder expressly for use therein.  The Company also shall
indemnify any Underwriter of the Registrable Securities, their officers,
affiliates, directors, partners, members and agents and each person who controls
such Underwriter on substantially the same basis as that of the indemnification
provided above in this Section 1.10(a).

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (b)           Indemnification by Holders
of Registrable Securities.  Each selling holder of Registrable
Securities will, in the event that any registration is being effected under the
Securities Act pursuant to this Agreement of any Registrable Securities held by
such selling holder, indemnify and hold harmless the Company, each of its
directors and officers and each underwriter (if any), and each other person, if
any, who controls such selling holder or such underwriter (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act), against any
losses, claims, judgments, damages or liabilities, whether joint or several,
insofar as such losses, claims, judgments, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or
allegedly untrue statement of a material fact contained in any Registration
Statement under which the sale of such Registrable Securities was registered
under the Securities Act, any preliminary prospectus, final prospectus or
summary prospectus contained in the Registration Statement, or any amendment or
supplement to the Registration Statement, or arise out of or are based upon any
omission or the alleged omission to state a material fact required to be stated
therein or necessary to make the statement therein not misleading, if the
statement or omission was made in reliance upon and in conformity with
information furnished in writing to the Company by such selling holder expressly
for use therein, and shall reimburse the Company, its directors and officers,
and each such controlling person for any legal or other expenses reasonably
incurred by any of them in connection with investigation or defending any such
loss, claim, damage, liability or action.  Each selling holder’s
indemnification obligations hereunder shall be several and not joint and shall
be limited to the amount of any net proceeds (after payment of all underwriting
fees, discounts, commissions and taxes) actually received by such selling holder
from the sale of Registrable Securities which gave rise to such indemnification
obligation.

     

    (c)           Conduct of Indemnification
Proceedings.  Promptly after receipt by any person of any
notice of any loss, claim, damage or liability or any action in respect of which
indemnity may be sought pursuant to Section 1.10(a) or (b), such person (the
“Indemnified
Party”) shall, if a claim in respect thereof is to be made against any
other person for indemnification hereunder, notify such other person (the “Indemnifying Party”)
in writing of the loss, claim, judgment, damage, liability or action; provided,
however, that the failure by the Indemnified Party to notify the Indemnifying
Party shall not relieve the Indemnifying Party from any liability which the
Indemnifying Party may have to such Indemnified Party hereunder, except and
solely to the extent the Indemnifying Party is actually prejudiced by such
failure.  If the Indemnified Party is seeking indemnification with
respect to any claim or action brought against the Indemnified Party, then the
Indemnifying Party shall be entitled to participate in such claim or action,
and, to the extent that it wishes, jointly with all other Indemnifying Parties,
to assume control of the defense thereof with counsel reasonably satisfactory to
the Indemnified Party.  After notice from the Indemnifying Party to
the Indemnified Party of its election to assume control of the defense of such
claim or action, the Indemnifying Party shall not be liable to the Indemnified
Party for any legal or other expenses subsequently incurred by the Indemnified
Party in connection with the defense thereof other than reasonable costs of
investigation; provided, however, that in any action in which both the
Indemnified Party and the Indemnifying Party are named as defendants, the
Indemnified Party shall have the right to employ separate counsel (but no more
than one such separate counsel) to represent the Indemnified Party and its
controlling persons who may be subject to liability arising out of any claim in
respect of which indemnity may be sought by the Indemnified Party against the
Indemnifying Party, with the fees and expenses of such counsel to be paid by
such Indemnifying Party if, based upon the written opinion of counsel of such
Indemnified Party, representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between
them.  No Indemnifying Party shall, without the prior written consent
of the Indemnified Party, consent to entry of judgment or effect any settlement
of any claim or pending or threatened proceeding in respect of which the
Indemnified Party is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Party, unless such judgment or settlement
includes an unconditional release of such Indemnified Party from all liability
arising out of such claim or proceeding.

    
      
         

      

      
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    (d)           Contribution.

     

    (i)           If
the indemnification provided for in the foregoing Section 1.10(a), (b) and (c)
is unavailable to any Indemnified Party in respect of any loss, claim, damage,
liability or action referred to herein, then each such Indemnifying Party, in
lieu of indemnifying such Indemnified Party, shall contribute to the amount paid
or payable by such Indemnified Party as a result of such loss, claim, damage,
liability or action in such proportion as is appropriate to reflect the relative
fault of the Indemnified Parties and the Indemnifying Parties in connection with
the actions or omissions which resulted in such loss, claim, damage, liability
or action, as well as any other relevant equitable
considerations.  The relative fault of any Indemnified Party and any
Indemnifying Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by such Indemnified Party or such Indemnifying Party and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

     

    (ii)           The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 1.10(d) were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding Section
1.10(d)(i).  The amount paid or payable by an Indemnified Party as a
result of any loss, claim, damage, liability or action referred to in the
immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses incurred by such
Indemnified Party in connection with investigating or defending any such action
or claim.  Notwithstanding the provisions of this Section 1.10(d), no
holder of Registrable Securities shall be required to contribute any amount in
excess of the dollar amount of the net proceeds (after payment of all
underwriting fees, discounts, commissions and taxes) actually received by such
holder from the sale of Registrable Securities which gave rise to such
contribution obligation.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

    Section
1.11.         Rule
144.  The Company covenants that it shall file any filings
required to be filed by it under the Securities Act and the Exchange Act and
shall take such further action as the holders of Registrable Securities may
reasonably request, all to the extent required from time to time to enable such
holders to sell Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by Rule 144 under the
Securities Act, as such Rules may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission but not Rule
144A.

     

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

     

    Section
1.12.         Requested
Consent.  The Company agrees to use commercially reasonable
efforts to obtain the necessary consents pursuant to the Founders Registration
Rights Agreement for the rights of the holders of Registrable Securities to
include shares in a “demand” registration pursuant to Section 1.03(b) pari passu
(rather than subordinate) to the rights with respect to shares of Common Stock
exercising piggy-back rights pursuant to the Founders Registration Rights
Agreement.  The Company shall provide the Investors with prompt
written notice at such time as it has obtained such consent.  Upon
obtaining such consent, Section 1.03(b) shall automatically, and without further
action by the Company or any Investor, be amended in its entirety to read as
follows:

     

    “(b)        
If the registration is a “demand” registration
undertaken at the demand of persons other than the holders of Registrable
Securities pursuant to written contractual arrangements with such persons, (A)
first, the shares of Common Stock for the account of the demanding persons that
can be sold without exceeding the Maximum Number of Shares; (B) second, to the
extent that the Maximum Number of Shares has not been reached under the
foregoing clause (A), the shares of Common Stock or other securities that the
Company desires to sell that can be sold without exceeding the Maximum Number of
Shares; and (C) third, to the extent that the Maximum Number of Shares has not
been reached under the foregoing clauses (A) and (B), the shares of Common Stock
as to which registration has been requested pursuant to the terms of the
Founders Registration Rights Agreement and the Registrable Securities to which
registration has been requested under this Section 1.03 (pro rata in accordance
with the number of shares of Registrable Securities and Common Stock held by
each such holder) and (D) fourth, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clauses (A), (B) and (C), the
shares of Common Stock, if any, as to which registration has been requested
pursuant to written contractual piggy-back registration rights which other
shareholders desire to sell that can be sold without exceeding the Maximum
Number of Shares.”

     

    ARTICLE
II

     

    TRANSFER RESTRICTIONS; RIGHT
OF FIRST OFFER; VOTING RIGHTS

    Section
2.01.          Transferability of
Shares.  Subject to the provisions of Section 2.03 below, no
shares of Series B Preferred Stock or shares of Common Stock issued pursuant to
the Second Exchange Agreement (“Second Exchange
Shares”) may, directly or indirectly, be sold, assigned, transferred,
gifted or exchanged, nor may any Investor (or transferee thereof) offer to do
any of the foregoing (each, a “Transfer”), nor may
any direct or indirect interest in any Investor be, directly or indirectly,
Transferred by any holder thereof, nor may any stockholder or other holder of an
ownership interest in Investor which is not a natural person offer to do any of
the foregoing, and no Transfer by an Investor (or transferee thereof) or holder
of an ownership interest in an Investor shall be binding upon the Company or any
Investor, in each case unless (i) such Transfer is expressly permitted by
this Article II and (ii) the Company receives an executed copy of the documents
effecting such Transfer and such documents are in compliance with the
requirements of this Article II and otherwise in form and substance reasonably
satisfactory to the Company.  No shares of Series B Preferred
Stock or Second Exchange Shares may be pledged, hypothecated, optioned or
encumbered, nor may any direct or indirect ownership interests in an Investor
may be pledged, hypothecated, optioned or encumbered, nor may any offer to do
any of the foregoing be made, without the prior written consent of the Company
in its sole discretion.  Each Investor agrees to comply, and to cause
its owners and transferees to comply (as applicable), with the provisions of
this Article II.  An Investor’s shares of Series B Preferred
Stock and Second Exchange Shares (or, in the case of an Investor which is not a
natural person, direct (but in no event indirect) ownership interests in such
Investor) may be Transferred solely:

     

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

     

    (a)           with
the prior written consent of the Company, which consent may be granted or
withheld by the Company in its reasonable discretion;

     

    (b)           (i)
upon the death of such Investor (in the case of an Investor who is a natural
person), with respect to shares of Series B Preferred Stock and Second
Exchange Shares held by such Investor, or upon the death of a direct holder of
ownership interests in such Investor (in the case of an Investor which is not a
natural person), with respect to the direct ownership interests in such Investor
held by such deceased holder, in either such case such specified ownership
interests may be Transferred by will or the laws of descent and distribution
(without the consent of the Company, but, in all such cases of Transfers of
Series B Preferred Stock, subject to the provisions regarding redemption of such
shares of Series B Preferred Stock by the Company pursuant to Section 10 of
the Certificate of Designation for the Series B Preferred Stock, which shall
continue to be binding upon the shares of Series B Preferred Stock of such
Investor (and the holders thereof) notwithstanding such death) or (ii) in
connection with the appointment of a legal guardian or conservator for such
Investor or a direct holder of equity interests therein (as applicable) in the
event of incapacity, to the extent such legal guardian or conservator succeeds
as a matter of law to record ownership of such shares of Series B Preferred
Stock or Second Exchange Shares or direct ownership interests (as applicable)
and provided that such Investor or holder of direct ownership interests (as
applicable) remains the beneficial owner of such interests; or

     

    (c)           (i)
a Management Stockholder may Transfer his or her shares of Series B
Preferred Stock and Second Exchange Shares, or (ii) direct ownership interests
in an Investor which is not a natural person may be Transferred by its related
Management Stockholder, in either such case to members of such Management
Stockholder’s Immediate Family (or trusts for the benefit of such Management
Stockholder or the members of such Management Stockholder’s Immediate Family,
provided that any such trust does not require or permit distribution of such
interests other than to such Management Stockholder, members of such Management
Stockholder’s Immediate Family, or such Management Stockholder’s related
original Investor that is a party hereto).

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    provided
that in the case of (b) or (c) above, (i) the transferee first enters into an
agreement with the Company in form and substance reasonably satisfactory to the
Company agreeing to be bound by the provisions of this Agreement, and (ii)
whether or not the transferee enters into such an agreement, such shares of
Series B Preferred Stock, Second Exchange Shares and ownership interests in
such Investor (as applicable) shall thereafter remain subject to this
Agreement.  The transferees pursuant to the provisions of Section
2.01(b) and (c) hereof, and, to the extent set forth in any consent of the
Company pursuant to Section 2.01(a), the transferees pursuant to Section 2.01(a)
are referred to as “Permitted
Transferees”.

     

    (d)          
For purposes of this Section 2.01, the following terms shall have the meanings
set forth below:

     

    (i)           “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).

     

    (ii)          “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.

     

    (iii)         “Immediate Family”
shall mean, with respect to any natural person, (a) such person’s spouse,
parents, grandparents, children, grandchildren and siblings, (b) such person’s
former spouse(s) and current spouses of such person’s children, grandchildren
and siblings and (c) estates, trusts, partnerships and other entities of which
substantially all of the interests are held directly or indirectly by the
foregoing.

     

    (iv)        “Management
Stockholder(s)” shall mean (a) in the case of any Investor which is a
natural person, such Investor, and (b) in the case of any Investor which is not
a natural person, that certain employee of Aston (or one of its Controlled
Affiliates) who is the owner of the issued and outstanding capital stock of, or
other equity interests in, such Investor and is listed as such on Schedule A hereto
(including any such employee after such employee has transferred any of his or
her interest in such Investor to a Permitted Transferee).

     

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

    
      
         

      

      
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    Section
2.02.         Right of First
Offer.  In the event that any Investor proposes to Transfer any
Conversion Shares which would cause the aggregate number of Conversion Shares
Transferred by such Investor (or any group of Investors acting in concert with
respect to the Transfer of Conversion Shares) to exceed 300,000 shares (as
adjusted on account of any stock splits, stock dividends or similar events
affecting the Common Stock) after the date hereof, the selling Investor or
Investors shall furnish to the Company, a notice, stating such Investor’s or
Investors’ desire to make such a Transfer and the number of shares of Conversion
Shares to be Transferred (the “Offered
Shares”).  At any time within one (1) business day of the
receipt of a notice pursuant to the preceding sentence (the “Right of First Offer
Period”), the Company shall have the right by delivery of a written
notice to the selling Investor (the “Offer Notice”) to
offer to purchase all, but not less than all, of the Offered
Shares.  Each Offer Notice shall constitute an irrevocable offer by
the Company to the Investor to purchase the Offered Shares described in the
Offer Notice at the price specified in the Offer Notice.  At any time
in the three (3) trading day period following delivery of the Offer Notice the
selling Investor may (i) elect to accept the offer pursuant to the Offer
Notice by delivery of written notice to the Company or (ii) sell any of the
Offered Shares, publicly or privately, but in compliance with applicable
securities laws, at a price per share in excess of the price per share provided
in the Offer Notice.  For the avoidance of doubt, if any proposed
Transfer by an Investor (or any group of Investors acting in concert with
respect to such Transfer) would result in the Transfer of more than an aggregate
of 300,000 Conversion Shares after the date hereof (as adjusted on account of
any stock splits, stock dividends or similar event affecting the Common Stock)
by such Investor after the date hereof, all of the Conversion Shares included in
such proposed Transfer shall be subject to this terms of this Section
2.02.  Notwithstanding anything contained in this Section 2.02 to
the contrary, Second Exchange Shares only may be Transferred pursuant to
Sections 2.01 and 2.03 hereof.

     

    (a)           Exercise.  In
the event that the Company fails to deliver a timely Offer Notice, then the
selling Investor or Investors may sell any of the Offered Shares, publicly or
privately, but in compliance with applicable securities laws, on any terms and
conditions and for any price, during the ten (10) trading day period following
the expiration of the Right of First Offer Period.  If, at the end of
such ten (10) trading day period, the Investor shall not have sold the Offered
Shares, it shall be necessary for the terms of this Section 2.02
separately complied with, in order to consummate a Transfer, which would
otherwise be subject to this Section
2.02.

     

    (b)           Closing.  If
the selling Investor accepts the Offer set forth in the Offer Notice, the
Investor or Investors shall be required to sell the Offered Shares to the
Company, and the Company shall be required to purchase from the Investor or
Investors the Offered Shares, for the price set forth in the Offer
Notice.  The sole representations and warranties from the selling
Investor to be contained in the purchase agreement for the purchase of the
Offered Shares shall be representations and warranties substantially similar to
those set forth in Sections 4.01, 4.02(b), 4.05 and 4.06 of the First Exchange
Agreement.  The closing of the purchase and sale of the Offered Shares
to the Company will take place as soon as is reasonably practicable thereafter,
but in any event no later than ten (10) days after the Investor’s delivery of a
written notice accepting the Offer, and at such date, time and place as the
Company and the Investors may reasonably determine.

    
      
         

      

      
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    Section
2.03.         Second Exchange Share
Transfers.  Notwithstanding anything contained in
Section 2.01 to the contrary, each holder of Second Exchange Shares,
together with its, his or her Permitted Transferees, shall have the right, in
its, his or her sole discretion, to Transfer:

     

    (a)           any
or all Second Exchange Shares at any time after the first to occur of
(i) immediately prior to the consummation of a Change of Control, (ii) the
occurrence of a Reduction in AUM or (iii) the termination of employment with
Aston Asset Management LLC (or its Controlled Affiliates) of the Management
Stockholder who owns such holder (or the former or current holder of which such
holder was a Permitted Transferee) as a result of such Management Stockholder’s
death, Permanent Incapacity, Retirement or Removal Upon the Instruction of the
Management Committee (with capitalized terms used in this Section 2.03(a), but
not otherwise defined in this Agreement, having the meanings provided for such
terms in the Certificate of Designation).

     

    (b)           during
the twelve month period commencing April 20, 2011, and each
twelve month period commencing on each April 20 thereafter, up to the
following cumulative percentage of the aggregate number of Second Exchange
Shares issued to such holder under the Second Exchange Agreement (as ratably
adjusted on account of any stock splits, stock dividends or similar events
affecting the Common Stock):

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    Twelve
      Month Period

                                                    Commencing April 20

                                                  	 	
                                                    Cumulative

                                                    Percentage
      Which

                                                    May be Sold

                                                  	 
	 	 	 	 
	
                                                    2011

                                                  	 	20	 
	 	 	 	 
	
                                                    2012

                                                  	 	
                                                    40

                                                  	 
	 	 	 	 
	
                                                    2013

                                                  	 	
                                                    60

                                                  	 
	 	 	 	 
	
                                                    2014

                                                  	 	
                                                    80

                                                  	 
	 	 	 	 
	
                                                    2015
      and thereafter

                                                  	 	
                                                    100

                                                  	 

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    Section
2.04.         Restrictive
Legends.  It is understood and agreed that the certificates
evidencing the shares of Series B Preferred Stock and the certificates
evidencing the shares of Common Stock issued upon conversion of, or in exchange
for, Series B Preferred Stock until such time as such shares of Common Stock
represented by such certificates are Transferred in compliance with the
provisions of this Article II, shall bear the following legends, in addition to
any other legends required by Delaware law:

     

    “THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY BE OFFERED AND SOLD ONLY IF SO
REGISTERED OR IN A MANNER EXEMPT FROM REGISTRATION UNDER SUCH
ACT.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    THE
SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS
OF AN AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT WHICH PLACES RESTRICTIONS
ON THE TRANSFERABILITY OF THE SHARES REPRESENTED HEREBY.  A COPY OF
THE AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT IS ON FILE AT THE PRINCIPAL
OFFICE OF THE COMPANY.”

     

    Section
2.05.         Voting Rights of Series B
Preferred and Second Exchange Shares.

     

    (a)           From
and after the Closing (as defined in the Second Exchange Agreement), each of the
Investors hereby agrees, on its own behalf and on behalf of its Permitted
Transferees, that to the extent that the Investors and their Permitted
Transferees in the aggregate would, but for the operation of this Section
2.05(a), have the right to vote Second Exchange Shares and shares of Series B
Preferred Stock which, together, represent  more than 25% of the votes
which may be cast on any matter to be voted upon by the holders of capital stock
of the Company (the “25% Cap”), such
Investor shall not, and shall cause its Permitted Transferees not to, vote its
Pro Rata Percentage of that number of shares of Series B Preferred Stock which,
if voted, would cause the 25% Cap to be exceeded.  Nothing contained
in this Section 2.05(a) shall limit the voting rights of the Second Exchange
Shares.  For purposes of this Section 2.05(a), “Pro Rata Percentage”
shall mean a fraction, the numerator of which is the number of shares of Series
B Preferred Stock owned by such Investor and the denominator of which is the
total number of outstanding shares of Series B Preferred Stock.

     

    (b)           From
and after the Closing (as defined in the Second Exchange Agreement), each
Investor hereby agrees to waive its right to elect one director to the Company’s
Board of Directors as provided in Section 3(c) of the Certificate of
Designation; such that until such time as the holders of Series B Preferred
Stock own less than 300 shares of Series B Preferred Stock, such holders shall
have the right to elect only one director.

     

    ARTICLE
III

     

    MISCELLANEOUS.

     

    Section
3.01.         Termination.  This
Agreement shall terminate, and have no further force and effect, (i) when the
Company shall consummate a transaction or series of related transactions deemed
to be a Liquidation Event pursuant to, and defined in, the Company’s Certificate
of Designation for the Series B Preferred Stock, as the same may be amended from
time to time or (ii) upon the written consent of the Company and the holders of
a majority of the Registrable Securities then outstanding and Series B Preferred
Stock then outstanding, voting together on an as-converted basis with the
Registrable Securities.

     

    Section
3.02.         Notices.  All
notices, requests, demands and other communications under this Agreement must be
in writing and will be deemed duly given, unless otherwise expressly indicated
to the contrary in this Agreement, (i) when personally delivered, (ii) upon
receipt of a telephonic facsimile transmission with a confirmed telephonic
transmission answer back, (iii) three (3) business days after having been
deposited in the United States mail, certified or registered, return receipt
requested, postage prepaid, or (iv) one (1) business day after having been
dispatched by a nationally recognized overnight courier service, addressed to
the parties or their permitted assigns at the following
addresses:

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    if to the
Company:

     

    Highbury
Financial Inc.

    999
Eighteenth Street, Suite 300

    Denver,
Colorado 80202

    Attention:  Richard
S. Foote

    Facsimile:  303-893-2902

     

    with a
copy to:

     

    Bingham
McCutchen LLP

    399 Park
Avenue

    New York,
New York 10022

    Attention:  Floyd
I. Wittlin

    Facsimile:  212-702-3625

     

    if to the
Investors or Management Stockholders:

     

    120 North
LaSalle Street, 25th Floor

    Chicago,
Illinois  60601

    Facsimile:  312-268-1335

     

    with a
copy to:

     

    Sonnenschein
Nath & Rosenthal LLP

    233 S.
Wacker Drive

    Suite
7800

    Chicago,
Illinois 60606-6404

    Attention:  Michael
D. Rosenthal

    Facsimile:
312-876-7934

     

    or at
such other address as a party may furnish in writing to each other
party.

     

    Section
3.03.         Amendments, Modifications
and Waivers.  Any covenant, agreement, provision or condition
of this Agreement may be amended or modified, or compliance therewith may be
waived (either generally or in any particular instance and either retroactively
or prospectively), by (and only by) an instrument in writing signed by the
Company and the holders of a majority of the Registrable Securities then
outstanding and Series B Preferred Stock then outstanding, voting together on an
as-converted basis with the Registrable Securities.

     

    Section
3.04.         Successors and
Assigns.  This Agreement shall be so binding upon and shall
inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors and assigns.

    
      
         

      

      
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    Section
3.05.         Severability.  Should
any part of this Agreement for any reason be declared invalid, such decision
shall not affect the validity of any remaining portion which remaining portion
shall remain in full force and effect as if this Agreement had been executed
with the invalid portion thereto eliminated and it is hereby declared the
intention of the parties hereto that they would have executed the remaining
portion of this Agreement without included therein any such part or parts which
may, for any reason, be hereafter declared invalid.

     

    Section
3.06.         Captions.  The
descriptive headings of the various Sections or parts of this Agreement are for
convenience only and shall not affect the meaning or construction of any of the
provisions hereof.

     

    Section
3.07.         Entire
Agreement.  This Agreement constitutes the entire agreement and
understanding among the parties hereto with respect to the subject matter hereof
and supersedes any and all prior agreements and understandings, written or oral,
relating to the subject matter hereof.

     

    Section
3.08.         Governing
Law.  This Agreement and the rights of the parties hereunder
shall be interpreted in accordance with the laws of the State of Delaware, and
all rights and remedies shall be governed by such laws without regard to
principles of conflicts of laws.  .  Each of the parties
hereby consents to personal jurisdiction, service of process and venue in the
federal or state courts sitting in the City of Chicago for any claim, suit or
proceeding arising under this Agreement to enforce any arbitration award or
obtain equitable relief and hereby irrevocably agrees that all claims in respect
of such action or proceeding may be heard and determined in such state court or,
to the extent permitted by law, in such federal court (subject to the provisions
of Section 3.09 hereof).  To the extent permitted by law, each of the
parties hereby irrevocably consents to the service of process in any such action
or proceeding by the mailing by certified mail of copies of any service or
copies of the summons and complaint and any other process to such party at the
address specified in Section 3.02 hereof.  The parties agree that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    Section
3.09.         Dispute
Resolution.  All disputes arising in connection with this
Agreement shall be resolved in binding arbitration in accordance with the
applicable rules of the American Arbitration Association.  The
arbitration shall be held in the City of Chicago before a single arbitrator
selected in accordance with Section 11 of the American Arbitration Association
Commercial Arbitration Rules who shall have substantial experience in the
investment advisory industry, and shall otherwise be conducted in accordance
with the American Arbitration Association Commercial Arbitration
Rules.  The parties covenant that they will participate in the
arbitration in good faith and that they will share equally its costs except as
otherwise provided herein.  The provisions of this Section 3.09 shall
be enforceable in any court of competent jurisdiction, and the parties shall
bear their own costs in the event of any proceeding to enforce this Agreement
except as otherwise provided herein.  The arbitrator shall assess
costs and expenses (including the reasonable legal fees and expenses of the
prevailing party or parties against the other party or parties to such
proceeding).  Any party unsuccessfully refusing to comply with an
order of the arbitrators shall be liable for costs and expenses, including
attorney’s fees, incurred by the other party in enforcing the
award.

     

    Section
3.10.         Counterparts.  This
Agreement may be executed in any number of counterparts and by facsimile, each
of which shall be considered an original, but all of which taken together shall
constitute one instrument.

     

    Section
3.11.         Interpretation.  No
provisions of this Agreement shall be construed against or interpreted to the
disadvantage of any party hereto by any court or other governmental or judicial
authority by reason of such party having or being deemed to have drafted or
dictated such provision.

     

    [Signature
Pages Follow]

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    The
parties hereto have executed this Amended and Restated Investor Rights Agreement
as of the date first written above.

     

    
      
        
          	 
      	
                  COMPANY:

                
	 
      	 
      
	 
      	
                  HIGHBURY
      FINANCIAL INC.

                
	 
      	 
      
	 
      	
                  By:

                	
                     /s/ Richard S.
      Foote

                
	 
      	 
      	
                  Name:
      Richard S. Foote

                
	 
      	 
      	
                  Title:  
      President & CEO

                
	 	 	 
	 
      	
                  INVESTORS:

                
	 
      	 
      
	 
      	
                  SDB
      ASTON, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Stuart D. Bilton

                
	 
      	 
      	
                  Name:
      Stuart D. Bilton

                
	 
      	 
      	
                  Title:  
      President

                
	 
      	 
      	 
      
	 
      	
                  KCA
      ASTON, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Kenneth C. Anderson

                
	 
      	 
      	
                  Name:
      Kenneth C. Andersen

                
	 
      	 
      	
                  Title:  
      President

                
	 
      	 
      	 
      
	 
      	
                  GFD
      ASTON, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Gerald F. Dillenburg

                
	 
      	 
      	
                  Name:
      Gerald F. Dillenburg

                
	 
      	 
      	
                  Title:  
      President

                
	 
      	 
      	 
      
	 
      	
                  CRD
      ASTON, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Christine R. Dragon

                
	 
      	 
      	
                  Name:
      Christine R. Dragon

                
	 
      	 
      	
                  Title:  
      President

                
	 
      	 
      	 
      
	 
      	
                  JH
      ASTON, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Joseph Hays

                
	 
      	 
      	
                  Name:
      Joseph Hays

                
	 
      	 
      	
                  Title:  
      President

                

        

      

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    
      
        	 
      	
                BCH
      ASTON, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Betsy C. Heaberg

              
	 
      	 
      	
                Name:
      Betsy C. Heaberg

              
	 
      	 
      	
                Title: 
       President

              
	 
      	 
      	 
      
	 
      	
                DAR
      ASTON, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ David A. Robinow

              
	 
      	 
      	
                Name:
      David A. Robinow

              
	 
      	 
      	
                Title:  
      President

              
	 
      	 
      
	 
      	
                JPR
      ASTON, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ John P. Rouse

              
	 
      	 
      	
                Name:
      John P. Rouse

              
	 
      	 
      	
                Title:  
      President

              
	 
      	 
      	 
      
	 
      	
                MANAGEMENT
      STOCKHOLDERS:

              
	 
      	 
      	 
      
	 
      	
                /s/ Stuart D. Bilton

              
	 
      	
                Stuart
      D. Bilton

              
	 
      	 
      
	 
      	
                /s/ Kenneth C. Anderson

              
	 
      	
                Kenneth
      C. Anderson

              
	 
      	 
      
	 
      	
                /s/ Gerald F. Dillenburg

              
	 
      	
                Gerald
      F. Dillenburg

              
	 
      	 
      
	 
      	
                /s/ Christine R. Dragon

              
	 
      	
                Christine
      R. Dragon

              
	 
      	 
      
	 
      	
                /s/ Joseph Hays

              
	 
      	
                Joseph
      Hays

              

      

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    
      
        	 
      	
                /s/ Betsy Heaberg

              
	 
      	
                Betsy
      Heaberg

              
	 
      	 
      
	 
      	
                /s/ David Robinow

              
	 
      	
                David
      Robinow

              
	 
      	 
      
	 
      	
                /s/ John Rouse

              
	 
      	
                John
      Rouse

              

      

    

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

    SCHEDULE
A

     

    Investors

    

    SDB
Aston, Inc.

    KCA
Aston, Inc.

    GFD
Aston, Inc.

    CRD
Aston, Inc.

    JH Aston,
Inc.

    BCH
Aston, Inc.

    DAR
Aston, Inc.

    JPR
Aston, Inc.

     

    Management
Stockholders

     

    Stuart
Bilton

    Kenneth
C. Anderson

    Gerald
Dillenburg

    Christine
R. Dragon

    Joseph
Hays

    Betsy
Heaberg

    David
Robinow

    John
Rouse

    
      
         

      

      
        27

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]