Document:

EXHIBIT
      10.6

     

     

     

     

     

    ASTON
      ASSET MANAGEMENT LLC

     

    AMENDED
      AND RESTATED

     

    LIMITED
      LIABILITY COMPANY AGREEMENT

     

    DATED
      AS OF APRIL 20, 2006

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

    
      	
            	 	
              Page

            
	
              ARTICLE
                I

            	
              DEFINITIONS

            	
              1

            
	
              Section
                1.1.

            	
              Definitions

            	
              1

            
	 	 	 
	
              ARTICLE
                II

            	
              ORGANIZATION
                AND GENERAL PROVISIONS

            	
              12

            
	
              Section
                2.1.

            	
              Continuation

            	
              12

            
	
              Section
                2.2.

            	
              Name

            	
              13

            
	
              Section
                2.3.

            	
              Term

            	
              13

            
	
              Section
                2.4.

            	
              Registered
                Agent and Registered Office

            	
              13

            
	
              Section
                2.5.

            	
              Principal
                Place of Business

            	
              13

            
	
              Section
                2.6.

            	
              Qualification
                in Other Jurisdictions

            	
              13

            
	
              Section
                2.7.

            	
              Purposes
                and Powers

            	
              13

            
	
              Section
                2.8.

            	
              Title
                to Property

            	
              15

            
	 	 	 
	
              ARTICLE
                III

            	
              MANAGEMENT
                OF THE LLC

            	
              15

            
	
              Section
                3.1.

            	
              Management
                in General

            	
              15

            
	
              Section
                3.2.

            	
              Management
                Committee of the LLC

            	
              16

            
	
              Section
                3.3.

            	
              Officers
                of the LLC

            	
              18

            
	
              Section
                3.4.

            	
              Employees
                of the LLC

            	
              18

            
	
              Section
                3.5.

            	
              Operation
                of the Business of the LLC

            	
              19

            
	
              Section
                3.6.

            	
              Compensation
                and Expenses of the Members

            	
              25

            
	
              Section
                3.7.

            	
              Other
                Business of the Manager Member and Its Affiliates

            	
              25

            
	
              Section
                3.8.

            	
              Restrictions
                on Competition, Non-Solicitation and Non-Disclosure by Non-Manager
                Members
                and Employee Stockholders

            	
              26

            
	
              Section
                3.9.

            	
              Remedies
                Upon Breach

            	
              29

            
	
              Section
                3.10.

            	
              Purchase
                Provisions

            	
              29

            
	
              Section
                3.11.

            	
              No
                Employment Obligation

            	
              35

            
	
              Section
                3.12.

            	
              Capitalization
                of Excess Operating Cash Flow

            	
              35

            
	
              Section
                3.13.

            	
              Miscellaneous

            	
              35

            
	 	 	 
	
              ARTICLE
                IV

            	
              CAPITAL
                CONTRIBUTIONS; CAPITAL ACCOUNTS AND ALLOCATIONS;
                DISTRIBUTIONS

            	
              36

            
	
              Section
                4.1.

            	
              Capital
                Contributions

            	
              36

            
	
              Section
                4.2.

            	
              Capital
                Accounts; Allocations

            	
              36

            
	
              Section
                4.3.

            	
              Distributions

            	
              40

            
	
              Section
                4.4.

            	
              Distributions
                Upon Dissolution; Establishment of a Reserve Upon
                Dissolution

            	
              42

            
	
              Section
                4.5.

            	
              Proceeds
                from Capital Contributions and the Sale of Securities; Insurance
                Proceeds;
                Certain Special Allocations

            	
              43

            
	
              Section
                4.6.

            	
              Tax
                Allocations

            	
              45

            
	
              Section
                4.7.

            	
              Other
                Allocation Provisions

            	
              46

            
	
              Section
                4.8.

            	
              Withholding

            	
              46

            

    

     

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

     

    
      TABLE
        OF CONTENTS

       

      (continued)

    

    
      	
            	 	
              Page

            
	
              ARTICLE
                V

            	
              TRANSFER
                OF LLC INTERESTS BY NON-MANAGER MEMBERS; RESIGNATION, REDEMPTION
                AND
                WITHDRAWAL BY NON-MANAGER MEMBERS; ADMISSION OF ADDITIONAL NON-MANAGER
                MEMBERS

            	
              46

            
	
              Section
                5.1.

            	
              Transferability
                of Interests

            	
              46

            
	
              Section
                5.2.

            	
              Substitute
                Non-Manager Members

            	
              48

            
	
              Section
                5.3.

            	
              Allocation
                of Distributions Between Transferor and Transferee; Successor to
                Capital
                Accounts

            	
              49

            
	
              Section
                5.4.

            	
              Resignation,
                Redemptions and Withdrawals

            	
              49

            
	
              Section
                5.5.

            	
              Issuance
                of Additional LLC Interests

            	
              49

            
	
              Section
                5.6.

            	
              Additional
                Requirements for Transfer or for Issuance

            	
              50

            
	
              Section
                5.7.

            	
              Registration
                of LLC Interests

            	
              50

            
	
              Section
                5.8.

            	
              Representation
                of Members

            	
              51

            
	
              Section
                5.9.

            	
              Conversion
                of Series B LLC Interests

            	
              51

            
	 	 	 
	
              ARTICLE
                VI

            	
              TRANSFER
                OF LLC INTERESTS BY THE MANAGER MEMBER; REDEMPTION, REMOVAL AND
                WITHDRAWAL

            	
              52

            
	
              Section
                6.1.

            	
              Transferability
                of Interest

            	
              52

            
	
              Section
                6.2.

            	
              Resignation,
                Redemption, and Withdrawal

            	
              53

            
	 	 	 
	
              ARTICLE
                VII

            	
              DISSOLUTION
                AND TERMINATION

            	
              53

            
	
              Section
                7.1.

            	
              No
                Dissolution

            	
              53

            
	
              Section
                7.2.

            	
              Events
                of Dissolution

            	
              54

            
	
              Section
                7.3.

            	
              Notice
                of Dissolution

            	
              54

            
	
              Section
                7.4.

            	
              Liquidation

            	
              54

            
	
              Section
                7.5.

            	
              Termination

            	
              54

            
	
              Section
                7.6.

            	
              Claims
                of the Members

            	
              54

            
	 	 	 
	
              ARTICLE
                VIII

            	
              RECORDS
                AND REPORTS

            	
              54

            
	
              Section
                8.1.

            	
              Books
                and Records

            	
              54

            
	
              Section
                8.2.

            	
              Accounting

            	
              55

            
	
              Section
                8.3.

            	
              Financial
                and Compliance Reports

            	
              55

            
	
              Section
                8.4.

            	
              Meetings

            	
              56

            
	
              Section
                8.5.

            	
              Tax
                Matters

            	
              56

            

    

     

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

    
       

      (continued)

    

    
      	
            	 	
              Page

            
	
              ARTICLE
                IX

            	
              LIABILITY,
                EXCULPATION AND INDEMNIFICATION

            	
              57

            
	
              Section
                9.1.

            	
              Liability

            	
              57

            
	
              Section
                9.2.

            	
              Exculpation

            	
              57

            
	
              Section
                9.3.

            	
              Fiduciary
                Duty

            	
              57

            
	
              Section
                9.4.

            	
              Indemnification

            	
              58

            
	
              Section
                9.5.

            	
              Notice;
                Opportunity to Defend and Expenses

            	
              58

            
	
              Section
                9.6.

            	
              Miscellaneous

            	
              60

            
	 	 	 
	
              ARTICLE
                X

            	
              MISCELLANEOUS

            	
              60

            
	
              Section
                10.1.

            	
              Notices

            	
              60

            
	
              Section
                10.2.

            	
              Successors
                and Assigns

            	
              60

            
	
              Section
                10.3.

            	
              Amendments

            	
              60

            
	
              Section
                10.4.

            	
              No
                Partition

            	
              61

            
	
              Section
                10.5.

            	
              No
                Waiver; Cumulative Remedies

            	
              61

            
	
              Section
                10.6.

            	
              Dispute
                Resolution

            	
              61

            
	
              Section
                10.7.

            	
              Prior
                Agreements Superseded

            	
              62

            
	
              Section
                10.8.

            	
              Captions

            	
              62

            
	
              Section
                10.9.

            	
              Counterparts

            	
              62

            
	
              Section
                10.10.

            	
              Applicable
                Law; Jurisdiction

            	
              62

            
	
              Section
                10.11.

            	
              Interpretation

            	
              62

            
	
              Section
                10.12.

            	
              Severability

            	
              62

            
	
              Section
                10.13.

            	
              Creditors

            	
              62

            
	
              Section
                10.14.

            	
              References
                to This Agreement

            	
              63

            
	
              Section
                10.15.

            	
              Exhibits,
                Schedules and Annexes

            	
              63

            
	
              Section
                10.16.

            	
              Additional
                Documents and Acts

            	
              63

            

    

    

    EXHIBITS

     

    
      	
              Exhibit
                A

            	
              -

            	
              Form
                of Promissory Note for Repurchases

            

    

     

    SCHEDULES

     

    
      	
              Schedule
                A

            	
              -

            	
              LLC
                Units and Capital Contributions

            

    

    
      	
              Schedule
                B

            	
              -

            	
              Retirement

            

    

     

     

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

     

    ASTON
      ASSET MANAGEMENT LLC

    AMENDED
      AND RESTATED

    LIMITED
      LIABILITY COMPANY AGREEMENT

     

    This
      Amended and Restated Limited Liability Company Agreement (the “Agreement”)
      of
      Aston Asset Management LLC (the “LLC”)
      is
      made and entered into as of April 20, 2006 (the “Effective
      Time"),
      by
      and among the Persons identified as the Manager Member and the Non-Manager
      Members on Schedule
      A
      attached
      hereto as members of the LLC, and the Persons who become members of the LLC
      in
      accordance with the provisions hereof.

     

    WHEREAS,
      a
      limited liability company has been formed pursuant to the Delaware Limited
      Liability Company Act, 6 Del.
      C§ 18-101,
      et seq.,
      as it
      may be amended from time to time and any successor to such Act (the
“Act”),
      by
      filing a Certificate of Formation of the LLC with the office of the Secretary
      of
      State of the State of Delaware on April 19, 2006, and entering into a Limited
      Liability Company Agreement of the LLC, dated as of April 19, 2006;

     

    WHEREAS,
      the
      parties hereto desire to amend and restate the Limited Liability Company
      Agreement of the LLC as of the date hereof in its entirety as herein set forth,
      such amendment and restatement to become effective as of, and subject to, the
      Effective Time;

     

    NOW,
      THEREFORE,
      for good
      and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, and in consideration of the mutual covenants hereinafter set
      forth, the parties hereby agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.1. Definitions.
      Unless
      the context otherwise requires, the terms defined in this Article I shall,
      for
      the purposes of this Agreement, have the meanings herein specified.

     

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

     

    “Act”
shall
      have the meaning specified in the recitals hereto.

     

    “Additional
      Non-Manager Members”
shall
      have the meaning specified in Section 5.5 hereof.

     

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

     

    “Affiliate”
shall
      mean, with respect to any person or entity (herein the “first
      party”),
      any
      other person or entity 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
      entity, or (b) otherwise direct the management or policies of such person or
      entity by contract or otherwise (other than solely as a director of a
      corporation (or similar entity) that has five (5) or more directors). For
      purposes of this Agreement, the LLC is not an Affiliate of any
      Member.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    “Agreement”
shall
      have the meaning specified in the preamble hereto.

     

    “Applicable
      Aggregate Non-Manager Member Allocation Percentage”
shall
      mean, as of the date of any transaction described in Section 4.2(e) hereof,
      the
      quotient (expressed as a percentage) obtained by dividing (i) the aggregate
      number of LLC Units held by the Non-Manager Members as of the date of such
      transaction by (ii) the number of LLC Units outstanding as of the date of such
      transaction.

     

    “Applicable
      Cash Flow”
shall
      have the meaning specified in Section 3.10(c)(i)(B) hereof.

     

    “Applicable
      Fraction”
shall
      have the meaning specified in Section 3.10(c)(i)(C) hereof.

     

    “Applicable
      Manager Member Allocation Percentage”
shall
      mean, as of the date of any transaction described in Section 4.2(e) hereof,
      the
      quotient (expressed as a percentage) obtained by dividing (i) the aggregate
      number of LLC Units held by the Manager Member and its Affiliates as of the
      date
      of such transaction by (ii) the number of LLC Units outstanding as of the date
      of such transaction.

     

    “Asserted
      Liability”
shall
      have the meaning specified in Section 9.5(a) hereof.

     

    “Base
      Owners’ Allocation”
shall
      mean, for any period, the Owners’ Allocation for that period minus the
      Performance Owners’ Allocation (if any) for that period (determined on an
      accrual basis in accordance with GAAP consistently applied).

     

    “Capital
      Account”
shall
      mean the capital account maintained by the LLC with respect to each Member
      in
      accordance with the capital accounting rules described in Section 4.2
      hereof.

     

    “Capital
      Contribution”
shall
      mean, as to each Member, the amount of money and/or the agreed fair market
      value
      of any property (net of any liabilities encumbering such property that the
      LLC
      is considered to assume or take subject to) contributed to the capital of the
      LLC by such Member.

     

    “Carrying
      Value”
shall
      mean, with respect to any LLC asset, the asset’s adjusted basis for federal
      income tax purposes, except that the Carrying Values of all LLC assets shall
      be
      adjusted to equal their respective Fair Market Values in accordance with the
      rules set forth in Treasury Regulations Section 1.704-1(b)(2)(iv)(f), except
      as
      otherwise provided herein, immediately prior to: (a) the date of the acquisition
      of any additional LLC Interest by any new or existing Member in exchange for
      more than a de minimis Capital Contribution; (b) the date of the distribution
      of
      more than a de minimis amount of LLC property (other than a pro rata
      distribution) to a Member; or (c) the date of the termination of the LLC under
      Section 708(b)(1)(B) of the Code, provided that adjustments pursuant to clauses
      (a) and (b) above shall be made only if the Manager Member reasonably determines
      that such adjustments are necessary or appropriate to reflect the relative
      economic interests of the Members. The Carrying Value of any LLC asset
      distributed to any Member shall be adjusted immediately prior to such
      distribution to equal its Fair Market Value.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

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

     

    “Claims
      Notice”
shall
      have the meaning specified in Section 9.5(a) hereof.

     

    “Client”
shall
      mean all Past Clients, Present Clients and Potential Clients, subject to the
      following general rules: (i) with respect to each Client, the term shall also
      include any Persons which are known to the Employee Stockholder to be Affiliates
      of such Client, directors, officers or employees of such Client or any such
      Affiliates thereof, or Persons who are known to the Employee Stockholder to
      be
      members of the Immediate Family of any of the foregoing Persons or Affiliates
      of
      any of them and (ii) with respect to any Client that is a Fund, the term shall
      also include any investor or participant in such Fund and any Person that has
      participated in the distribution or sale of such Fund.

     

    “Code”
shall
      mean the United States Internal Revenue Code of 1986, as from time to time
      amended, and any successor thereto, together with all regulations promulgated
      thereunder.

     

    “Committee
      Vote”
shall
      have the meaning specified in Section 3.2(b)(iv) hereof.

     

    “Contingent
      Consideration”
shall
      mean, with respect to the Manager Member’s (or its assignee’s) purchase of LLC
      Units pursuant to Section 3.10, an obligation on the part of the Manager Member
      (or its successor or assigns) to pay to the Selling Member (or its successors
      or
      assigns), on the Liquidation Date, an amount equal to the lesser
      of:

     

    (i) the
      portion of the Purchase Price designated as Contingent Consideration in Section
      3.10(f)(i)(D) or Section 3.10(f)(ii), as applicable; or

     

    (ii) the
      amount calculated in clause (i) of this definition, multiplied by a fraction
      (A)
      the numerator of which is the Applicable Cash Flow measured for the twenty-four
      (24) months (in the case of Base Owners’ Allocation), or the forty-eight (48)
      months (in the case of Earned Performance Owners’ Allocation), ending on the
      last day of the most recently completed calendar quarter prior to the
      Liquidation Date, and (B) the denominator of which is the Applicable Cash Flow
      measured for the twenty-four (24) months (in the case of Base Owners’
Allocation), or the forty-eight (48) months (in the case of Earned Performance
      Owners’ Allocation), ending on the last day of the calendar quarter in which the
      termination of the Selling Member’s (or its related Employee Stockholder’s, as
      applicable) employment with the LLC occurred.

     

    Notwithstanding
      any provision of this Agreement to the contrary (including, without limitation,
      the provision of Section 3.10(f) hereof), the Manager Member may (without the
      need for any vote or consent of any Member or Members) assign and delegate
      its
      obligation to pay the Contingent Consideration (including, by way of example
      and
      not of limitation, to a transferee of LLC Interests pursuant to Section
      6.1(a)).

     

    In
      the
      event that a change is made in the definition of Applicable Cash Flow following
      the date on which a Contingent Consideration obligation initially is
      outstanding, an appropriate adjustment will be made to that Contingent
      Consideration obligation to give effect to that change in definition. Such
      a
      change will be made by the Manager Member in its sole discretion, and such
      change will be binding on all parties absent a mathematical error. The Manager
      Member will notify all persons who owe or are owed Contingent Consideration
      of
      any such change.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    “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.

     

    “Convert”
shall
      have the meaning specified in Section 5.9 hereof, and “Conversion”
shall
      have the corresponding meaning.

     

    “Covered
      Person”
shall
      mean a Member, any Affiliate of a Member, any officer, director, shareholder,
      partner, employee or member of a Member or any of its Affiliates, or any
      Officer.

     

    “Earned
      Performance Owners’ Allocation”
shall
      mean, with respect to a calendar quarter in which any fees or other payments
      falling within the definition of Performance Owners’ Allocation have been
      definitively allocated to or earned by the LLC and are no longer subject to
      any
      offset, reduction or return, an amount equal to such definitively allocated
      or
      earned Performance Owners’ Allocation.

     

    “Effective
      Time”
shall
      have the meaning specified in the preamble hereto.

     

    “Eligible
      Person”
shall
      have the meaning specified in Section 3.2(b)(i) hereof.

     

    “Employee
      Stockholder”
shall
      mean (a) in the case of any Non-Manager Member which is a natural person, such
      Non-Manager Member, and (b) in the case of any Non-Manager Member which is
      not a
      natural person, that certain employee of the LLC (or one of its Controlled
      Affiliates) who is the owner of the issued and outstanding capital stock of,
      or
      other equity interests in, such Non-Manager Member 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 Non-Manager Member to a Permitted Transferee).

     

    “ERISA”
shall
      mean the Employee Retirement Income Security Act of 1974, as amended from time
      to time, and any successor to such Act.

     

    “Fair
      Market Value”
shall
      mean the fair market value as reasonably determined by the Manager Member or,
      for purposes of Section 4.4 hereof, if there shall be no Manager Member, the
      Liquidating Trustee.

     

    “For
      Cause”
shall
      mean, with respect to the termination of an Employee Stockholder’s employment
      with the LLC (or any of its Controlled Affiliates), or his removal from the
      Management Committee or from his position as an Officer, any of the
      following:

     

    (a) The
      Employee Stockholder has been convicted of or indicted for (i) any criminal
      offense which is classified as a felony in the United States, or (ii) any other
      criminal offense which involves a violation of federal or state securities
      laws
      or regulations (or equivalent laws or regulations of any country or political
      subdivision thereof in which the criminal offense occurs), embezzlement, fraud,
      wrongful taking or misappropriation of property, theft, or any other crime
      involving dishonesty;

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (b) The
      Employee Stockholder has persistently and willfully failed to perform his or
      her
      duties, or has failed to devote substantially all of his or her working time
      to
      the performance of such duties, and in either such case such failure has not
      been cured by the Employee Stockholder within thirty (30) days following written
      notice; or

     

    (c) The
      Employee Stockholder has (i) engaged in a Prohibited Competition Activity,
      (ii)
      violated or breached any material provision of this Agreement, or (iii) engaged
      in any of the activities prohibited by Section 3.8 hereof; provided,
      however,
      that,
      in any such case described in clauses (i)-(iii) of this paragraph (c), in the
      event such action by such Employee Stockholder has not resulted (and is not
      reasonably likely to result) in harm that is material to the Manager Member,
      the
      LLC or any of their respective Controlled Affiliates or any of the Funds, such
      Employee Stockholder shall be provided with an opportunity to cure such action
      promptly (and in any event within thirty (30) days) following written notice
      thereof (provided
      that
      such
      an opportunity to cure shall be available to a particular Employee Stockholder
      solely with respect to the first three such actions by such Employee Stockholder
      with respect to which such a written notice is provided, and provided,
      further,
      that
      such an opportunity to cure shall in no event be provided to an Employee
      Stockholder if his or her violation, breach or other applicable action was
      willful or reckless).

     

    “Fund”
shall
      mean any Mutual Fund or other commingled fund for which the LLC provides
      Investment Services.

     

    “GAAP”
shall
      mean U.S. generally accepted accounting principles.

     

    “Governmental
      Authority”
shall
      mean any foreign, federal, state or local court, governmental authority or
      regulatory body. 

     

    “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.

     

    “Indebtedness”
shall
      mean, with respect to a Person, (a) all indebtedness of such Person for borrowed
      money or for the deferred purchase price of property or services (other than
      current trade liabilities incurred in the ordinary course of business and
      payable in accordance with customary practices), (b) any other indebtedness
      of
      such Person which is evidenced by a note, bond, debenture or similar instrument,
      (c) all obligations of such Person under any financing leases, (d) all
      obligations of such person in respect of acceptances issued or created for
      the
      account of such Person, (e) all obligations of such Person under non-competition
      agreements reflected as liabilities on a balance sheet of such Person in
      accordance with GAAP, (f) all liabilities secured by any Lien on any property
      owned by such Persons even though such Person has not assumed or otherwise
      become liable for the payment thereof, and (g) all net obligations of such
      Person under interest rate, commodity, foreign currency and financial markets
      swaps, options, futures and other hedging obligations.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    “Independent
      Public Accountants”
shall
      mean any independent certified public accountant retained by the LLC and
      satisfactory to the Manager Member.

     

    “Initial
      LLC Units”
means,
      with respect to a Non-Manager Member and its Permitted Transferees, those Series
      B LLC Units held by such Non-Manager Member in the LLC at the Effective Time,
      provided that LLC Units shall cease to be Initial LLC Units from and after
      the
      date on which they are acquired by the Manager Member (or its
      assignee).

     

    “Initial
      Members”
shall
      mean those Persons who are Members at the Effective Time.

     

    “Intellectual
      Property”
shall
      have the meaning specified in Section 3.8(d) hereof.

     

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

     

    “IRS”
shall
      mean the Internal Revenue Service of the United States Department of the
      Treasury, and any successor Governmental Authority thereto.

     

    “Lien”
shall
      mean any mortgage, pledge, hypothecation, assignment, deposit arrangement,
      encumbrance, lien (statutory or other), charge or other security interest or
      any
      preference, priority or other security agreement or preferential arrangement
      of
      any kind or nature whatsoever (including, without limitation, any conditional
      sale or other title retention agreement and any financing lease having
      substantially the same economic effect as any of the foregoing) or any other
      restrictions, liens or claims of any kind or nature whatsoever, excluding liens
      of lessors under operating leases that do not extend beyond the property leased.
      Notwithstanding the foregoing, the following items shall not constitute Liens
      under this Agreement (i) Liens for taxes, assessments, governmental charges
      or
      claims that are being contested in good faith by appropriate legal proceedings
      promptly instituted and diligently conducted and for which an adequate reserve
      or other appropriate provision, if any, as shall be required in conformity
      with
      GAAP shall have been made; (ii) statutory Liens of landlords and carriers,
      warehousemen, mechanics, suppliers, materialmen, repairmen or other similar
      Liens arising in the ordinary course of business and with respect to amounts
      not
      yet delinquent or being contested in good faith by appropriate legal proceedings
      promptly instituted and diligently conducted and for which an adequate reserve
      or other appropriate provision, if any, as shall be required in conformity
      with
      GAAP shall have been made; and (iii) statutory Liens incurred in the ordinary
      course of business in connection with workers’ compensation, unemployment
      insurances and other types of social security.

     

    “Liquidating
      Trustee”
shall
      have the meaning specified in Section 7.4 hereof.

     

    “Liquidation
      Date”
shall
      mean (a) the date upon which the final distribution is made to the Members
      under
      Section 4.4 hereof or (b) the date of the closing of a transaction under the
      last sentence of Section 6.1(a).

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    “Liquidation
      Preference”
shall
      mean, as of any time of determination, an amount equal to the sum of (i) the
      aggregate positive Capital Account balances of those Members holding Series
      A
      LLC Units as of such time of determination (or an allocable portion thereof,
      in
      the case of any Member holding both Series A LLC Units and Series B LLC Units
      at
      such time of determination), plus (ii) ninety-five million eight hundred
      thousand dollars ($95,800,000.00), plus (iii) accretion at a rate of ten percent
      (10%) per annum (compounded annually), calculated from the Effective Time
      through such time of determination, on a principal amount equal to the aggregate
      positive Capital Account balances of the Members holding Series A LLC Units
      as
      of the Effective Time plus ninety-five million eight hundred thousand dollars
      ($95,800,000.00).

     

    “LLC”
shall
      have the meaning specified in the preamble hereto.

     

    “LLC
      Interest”
means
      a
      Member’s limited liability company interest in the LLC, which includes such
      Member’s LLC Units as well as such Member’s Capital Account and other rights
      under this Agreement and the Act.

     

    “LLC
      Units”
shall
      mean, collectively, the Series A LLC Units and the Series B LLC Units authorized
      by the LLC pursuant hereto, entitling the holders thereof to the relative
      rights, title and interests in the profits, losses, deductions and credits
      of
      the LLC at any particular time as are set forth in this Agreement, and any
      and
      all other benefits to which a holder thereof may be entitled as a Member as
      provided in this Agreement (including, without limitation, certain voting rights
      as set forth herein). With respect to a particular Member as of any date,
“LLC
      Units”
shall
      mean the aggregate number of Series A LLC Units and Series B LLC Units belonging
      to such Member as set forth on Schedule
      A
      hereto,
      as amended from time to time in accordance with the terms hereof, and as in
      effect on such date.

     

    “Losses”
shall
      have the meaning specified in Section 9.4 hereof.

     

    “Majority
      Vote”
shall
      mean the affirmative approval, by vote or written consent, of Non-Manager
      Members holding a majority of the outstanding LLC Units then held by all
      Non-Manager Members.

     

    “Management
      Committee”
shall
      have the meaning specified in Section 3.2(a) hereof.

     

    “Manager
      Member”
shall
      mean Highbury Financial Inc., and any Person who becomes a successor Manager
      Member as provided herein.

     

    “Members”
shall
      mean any Person admitted to the LLC as a “member” within the meaning of the Act,
      which includes the Manager Member and the Non-Manager Members, and includes
      any
      Person admitted as an Additional Non-Manager Member or a substitute Non-Manager
      Member pursuant to the provisions of this Agreement, in such Person’s capacity
      as a member of the LLC (unless otherwise indicated). For purposes of the Act,
      the Members shall constitute one (1) class or group of members.

     

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

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    “Non-Manager
      Member”
shall
      mean any Person admitted to the LLC as a Member pursuant to the terms hereof,
      other than the Manager Member.

     

    “Nonrecourse
      Deductions”
shall
      have the meaning set forth in Treasury Regulations Section 1.704-2(b). The
      amount of Nonrecourse Deductions for a partnership taxable year equals the
      net
      increase, if any, in the amount of Partnership Minimum Gain during that
      partnership taxable year, reduced (but not below zero) by the aggregate
      distributions made during the year of proceeds of a nonrecourse liability that
      are allocable to an increase in partnership minimum gain, determined according
      to the provisions of Treasury Regulations Section 1.704-2(c).

     

    “Notices”
shall
      have the meaning specified in Section 10.1 hereof.

     

    “Officers”
shall
      have the meaning specified in Section 3.3 hereof

     

    “Operating
      Allocation”
shall
      mean, for any period, an amount equal to the sum of (i) the difference between
      Revenues From Operations for such period and the Owners’ Allocation for such
      period plus (ii) any amounts expressly required to be added directly to the
      Operating Allocation for such period by the provisions of this
      Agreement.

     

    “Owners’
      Allocation”
shall
      mean, for any period, the sum of the Owners’ Allocation Percentage multiplied by
      the Revenues From Operations for such period.

     

    “Owners’
      Allocation Account”
shall
      have the meaning specified in Section 4.3(b) hereof.

     

    “Owners’
      Allocation Expenditure”
shall
      have the meaning specified in Section 3.5(b) hereof.

     

    “Owners’
      Allocation Percentage”
shall
      mean twenty-eight percent (28%).

     

    “Partner
      Nonrecourse Debt Minimum Gain”
shall
      mean an amount with respect to each partner nonrecourse debt (as defined in
      Treasury Regulations Section 1.704-2(b)(4)) equal to the Partnership Minimum
      Gain that would result if such partner nonrecourse debt were treated as a
      nonrecourse liability (as defined in Treasury Regulations Section 1.752-1(a)(2))
      determined in accordance with Treasury Regulations Section
      1.704-2(i)(3).

     

    “Partner
      Nonrecourse Deductions”
shall
      have the meaning set forth in Treasury Regulations Section
      1.704-2(0(2).

     

    “Partnership
      Minimum Gain”
shall
      have the meaning set forth in Treasury Regulations Sections 1.704-2(b)(2) and
      1.704-2(d).

     

    “Past
      Client”
shall
      mean at any particular time, any Person who at any point prior to such time
      had
      been engaged to distribute or sell any Fund, an advisee or investment advisory
      customer of, or otherwise a recipient of Investment Services from, the LLC,
      a
      Controlled Affiliate of the LLC, a Predecessor Business or any such predecessor,
      or any shareholder, partner, member, director or officer of any such Person
      (in
      each case whether directly or through one or more intermediaries, e.g., a wrap
      sponsor, or through investment in a Fund), but at such time is not an advisee
      or
      investment advisory customer or client of, or recipient of Investment Services
      from, the LLC or any of its Controlled Affiliates (directly or
      indirectly).

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    “Performance
      Owners’ Allocation”
shall
      mean the product of (i) the sum of (a) all “carried interests” and other items
      of gain allocated (directly or indirectly) to the LLC and any Controlled
      Affiliates thereof (other than allocations which are made pro rata based on
      contributed capital to all partners, members, beneficiaries or other holders
      of
      similar economic interests in the Client) and (b) all “performance fee” and
      other payments based, in whole or in part, on the investment performance of
      a
      Client or a Client’s account, multiplied by (ii) Owners’ Allocation
      Percentage.

     

    “Permanent
      Incapacity”
shall
      mean, with respect to an Employee Stockholder, that such Employee Stockholder
      has been permanently and totally unable, by reason of injury, illness or other
      similar cause (as reasonably determined by the Manager Member) to have performed
      his or her substantial and material duties and responsibilities for a period
      of
      three hundred sixty-five (365) consecutive days, which injury, illness or
      similar cause (as reasonably determined by the Manager Member) would render
      such
      Employee Stockholder incapable of operating in a similar capacity and manner
      in
      the future.

     

    “Permitted
      Transferee”
shall
      mean, with respect to any Non-Manager Member, its transferees pursuant to the
      provisions of Sections 5.1(b) and 5.1(c) hereof and, to the extent set forth
      in
      any consent of the Manager Member pursuant to Section 5.1(a), its transferees
      pursuant to Section 5.1(a) hereof.

     

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

     

    “Potential
      Client”
shall
      mean, at any particular time, any Person or any shareholder, partner, member,
      director, officer employee, agent or consultant (or persons acting in any
      similar capacity) of any such Person to whom the LLC, a Controlled Affiliate
      of
      the LLC or the Predecessor Business has, within two (2) years prior to such
      time, offered (whether by means of a personal meeting, telephone call, letter,
      written proposal or otherwise) to serve as investment adviser or otherwise
      provide Investment Services or solicited to invest in, or participated in the
      distribution or sale of, any Fund, but who is not at such time an advisee or
      investment advisory customer of, or otherwise a recipient of Investment Services
      from, the LLC, any of its Controlled Affiliates (directly or indirectly) or
      any
      investor in, or participant in the distribution or sale of, any Fund. The
      preceding sentence is meant to exclude (i) advertising, if any, through mass
      media in which the offer, if any, is available to the general public, such
      as
      magazines, newspapers and sponsorships of public events and (ii) “cold calls”
and mass-mailing form letters, in each case to the extent not directed towards
      any particular Person and not resulting in an indication of interest or a
      request for further information.

     

    “Predecessor
      Business”
shall
      mean the business of the parties to the Purchase Agreement immediately prior
      to
      the Closing (as such term is defined in the Purchase Agreement).

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    “Present
      Client”
shall
      mean, at any particular time, any Person who is at such time an advisee or
      investment advisory customer of, or otherwise a recipient of Investment Services
      from, the LLC, any of its Controlled Affiliates (directly or indirectly) or
      any
      investor in, or participant in the distribution or sale of, any
      Fund.

     

    “Prohibited
      Competition Activity”
shall
      mean any of the following activities:

     

    (a) directly
      or indirectly, whether as owner, part owner, member, director, officer, trustee,
      employee, agent or consultant for or on behalf of any Person other than the
      LLC
      or any Controlled Affiliate of the LLC: (i) diverting or taking away any funds
      or investors from any Fund; (ii) soliciting or otherwise inducing or attempting
      to cause any Person to divert or take away any assets or funds invested in
      such
      Funds; or (iii) soliciting or otherwise inducing or attempting to cause any
      subadviser, distributor or seller of the Funds to terminate or reduce its
      services on behalf of the Funds; and

     

    (b) directly
      or indirectly, whether as owner, part owner, partner, member, director, officer,
      trustee, employee, agent or consultant for or on behalf of any Person other
      than
      the LLC or any Controlled Affiliate of the LLC, performing any Investment
      Services.

     

    “Purchase”
shall
      have the meaning specified in Section 3.10(a).

     

    “Purchase
      Agreement”
shall
      mean that certain Asset Purchase Agreement, dated as of April 20, 2006, by
      and
      among ABN AMRO Asset Management Holdings, Inc., ABN AMRO Investment Fund
      Services, Inc., ABN AMRO Asset Management, Inc., Montag & Caldwell, Inc.,
      Tamro Capital Partners LLC, Veredus Asset Management LLC, River Road Asset
      Management LLC and the LLC.

     

    “Purchase
      Closing Date”
shall
      have the meaning specified in Section 3.10(b).

     

    “Purchase
      Notice”
shall
      have the meaning specified in Section 3.10(a).

     

    “Purchase
      Price”
shall
      have the meaning specified in Section 3.10(c).

     

    “Purchased
      Interest”
shall
      have the meaning specified in Section 3.10(a).

     

    “Receipts
      Account”
shall
      have the meaning specified in Section 4.3(b) hereof.

     

    “Regulatory
      Allocations”
shall
      have the meaning specified in Section 4.5(f) hereof.

     

    “Removal
      For Acting Contrary to the Best Interests of the LLC”
shall
      mean, with respect to a Non-Manager Member, a determination by (i) the
      Management Committee (excluding for all purposes the Non-Manager Member whose
      removal is being considered (or its related Employee Stockholder, as
      applicable)), with the prior written consent of the Manager Member, or (ii)
      the
      Manager Member, in either such case to remove such Non-Manager Member as a
      member of the LLC following a termination of the employment of such Non-Manager
      Member (or the Employee Stockholder which is related to such Non-Manager Member,
      as applicable) For Cause or after a written determination of Unsatisfactory
      Performance hereunder.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    “Removal
      Upon the Instruction of the Management Committee”
shall
      mean, with respect to a Non-Manager Member, a determination by the Chairman,
      Chief Executive Officer and one member of the Management Committee (excluding
      for all purposes the Non-Manager Member whose removal is being considered (or
      its related Employee Stockholder, as applicable)), with the prior written
      consent of the Manager Member, to remove such Non-Manager Member as a member
      of
      the LLC (following a termination of the employment of such Non-Manager Member
      (or the Employee Stockholder which is related to such Non-Manager Member, as
      applicable) with the LLC) for any reason other than those described in the
      definition of Removal For Acting Contrary to the Best Interests of the LLC
      (and,
      for the avoidance of doubt, any Purchase under Section 3.10 hereof following
      a
      termination at the election of the LLC of the employment of a Non-Manager Member
      (or its related Employee Stockholder) for any reason other than those described
      in the definition of Removal for Acting Contrary to the Best Interests of the
      LLC shall be deemed a Removal Upon the Instruction of the Management
      Committee).

     

    “Retirement”
shall
      mean, with respect to an Employee Stockholder, the termination by such Employee
      Stockholder of such Employee Stockholder’s employment with the LLC and its
      Controlled Affiliates: (a) after the date such Employee Stockholder shall have
      been continuously employed by the LLC for a period of time specified as to
      such
      Employee Stockholder on Schedule B hereto commencing with the later of the
      Effective Time or the date such Employee Stockholder commenced his or her
      employment with the LLC and (b) pursuant to a written notice given to the LLC
      and the Manager Member not less than one (1) year prior to the date of such
      termination.

     

    “Revenues
      From Operations”
shall
      mean, for any period, the consolidated gross revenues of the LLC and any
      Controlled Affiliates thereof, determined on an accrual basis in accordance
      with
      GAAP consistently applied (but including other income such as interest, dividend
      income and gains on the sale of assets); provided,
      however,
      that
      Revenues From Operations shall not include (a) proceeds during such period
      from
      the sale, exchange or other disposition of all, or substantially all, of the
      assets of the LLC and its Controlled Affiliates (and any such proceeds shall
      be
      allocated in accordance with Sections 4.2(e) and 4.2(f) hereof), (b) revenues
      from the issuance by the LLC of additional LLC Units, other LLC Interests,
      or
      other securities issued by the LLC or any of its Controlled Affiliates (and
      any
      such proceeds shall be utilized in accordance with Section 4.5(g) hereof),
      and
      (c) payments received from third parties to the extent constituting direct
      reimbursements of expenses previously paid from the Operating Allocation (and
      any such payments shall be added back to the Operating Allocation for the period
      in which such expenses were originally paid from the Operating
      Allocation).

     

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

     

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as it may be amended from time to time, and
      any
      successor thereto.

     

    “Selling
      Member”
shall
      have the meaning specified in Section 3.10(a).

     

    “Series
      A LLC Units”
shall
      mean, as of any date, with respect to a Member, the number of Series A LLC
      Units
      of such Member as set forth on Schedule
      A
      hereto,
      as amended from time to time in accordance with the terms hereof, and as in
      effect on such date. Series A LLC Units shall have the rights and preferences
      set forth in this Agreement, but except where otherwise specified shall be
      treated as one class of LLC Units with the Series B LLC Units.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    “Series
      B LLC Units”
shall
      mean, as of any date, with respect to a Member, the number of Series B LLC
      Units
      of such Member as set forth on Schedule
      A
      hereto,
      as amended from time to time in accordance with the terms hereof, and as in
      effect on such date. Series B LLC Units shall have the rights and preferences
      set forth in this Agreement, but except where otherwise specified shall be
      treated as one class of LLC Units with the Series A LLC Units.

     

    “Transfer”
shall
      have the meaning specified in Section 5.1 hereof, and “Transferred”
shall
      have the correlative meaning.

     

    “Unsatisfactory
      Performance”
shall
      mean a written determination by the Management Committee, with the written
      consent of the Manager Member, that an Employee Stockholder has failed to meet
      minimum requirements of satisfactory performance of his or her job, after such
      Employee Stockholder has received written notice (with a copy to the Manager
      Member) that the Management Committee was considering such a determination
      and
      the Employee Stockholder has had a reasonable opportunity to respond in writing
      or in person (at such Employee Stockholder’s request) after his or her receipt
      of such notice.

     

    In
      addition to the foregoing, other capitalized terms used in this Agreement shall
      have the meaning ascribed thereto in the text of this Agreement.

     

    ARTICLE
      II

     

    ORGANIZATION
      AND GENERAL PROVISIONS

     

    Section
      2.1. Continuation.

     

    (a) The
      Members hereby agree to continue the LLC as a limited liability company under
      and pursuant to the provisions of the Act, and agree that the rights, duties
      and
      liabilities of the Members shall be as provided in the Act, except as otherwise
      provided herein.

     

    (b) Upon
      the
      execution of this Agreement or a counterpart of this Agreement, the Initial
      Members shall continue as members of the LLC.

     

    (c) The
      name,
      LLC Units and Capital Contribution of each Member (including the agreed value
      of
      such Capital Contribution) shall be listed on Schedule
      A
      attached
      hereto and the Manager Member shall initially hold 65% of the LLC Interests
      and
      the Non-Manager Members shall initially hold an aggregate of 35% of the LLC
      Interests. The Manager Member shall update Schedule
      A
      from
      time to time as it deems necessary, to accurately reflect the information to
      be
      contained therein. Any amendment or revision to Schedule
      A
      shall
      not be deemed an amendment to this Agreement. Any reference in this Agreement
      to
Schedule
      A
      shall be
      deemed to be a reference to Schedule
      A
      as
      amended and in effect from time to time.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    (d) The
      Manager Member, as an authorized person within the meaning of the Act, shall
      execute, deliver and file any certificates required or permitted by the Act
      to
      be filed in the office of the Secretary of State of the State of
      Delaware.

     

    Section
      2.2. Name.
      The
      name of the LLC heretofore formed and continued hereby is Aston Asset Management
      LLC. At any time the Management Committee, with the written consent of the
      Manager Member, may change the name of the LLC. The business of the LLC (and
      of
      any Controlled Affiliate of the LLC) may be conducted (upon compliance with
      all
      applicable laws) under any other name designated by the Management Committee
      with the prior written consent of the Manager Member (and the LLC and its
      Controlled Affiliates shall in no event conduct business under other names
      without such agreement of the Management Committee and the Manager Member,
      subject to Section 2.6).

     

    Section
      2.3. Term.
      The
      term of the LLC commenced on the date the Certificate was filed in the Office
      of
      the Secretary of State of the State of Delaware and shall continue until the
      LLC
      is dissolved in accordance with the provisions of this Agreement.

     

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

     

    Section
      2.5. Principal
      Place of Business.
      The
      principal place of business of the LLC (and any Controlled Affiliates of the
      LLC) shall be at 180 North LaSalle Street, Suite 3014 Chicago, IL 60601. At
      any
      time the Management Committee (with the prior written consent of the Manager
      Member) may change the location of the LLC’s (or any Controlled Affiliate’s)
      principal place of business (and the LLC’s and its Controlled Affiliates’
principal place of business shall in no event be changed without such agreement
      of the Management Committee and the Manager Member).

     

    Section
      2.6. Qualification
      in Other Jurisdictions.
      The
      Manager Member shall cause the LLC (and any Controlled Affiliates thereof)
      to be
      qualified or registered (under assumed or fictitious names if necessary) in
      any
      jurisdiction in which they transact business or in which such qualification
      or
      registration otherwise is required.

     

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

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
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    Section
      2.8. Title
      to Property.
      All
      property owned by the LLC, real or personal, tangible or intangible, shall
      be
      deemed to be owned by the LLC as an entity, and no Member, individually, shall
      have any ownership of such property.

     

    ARTICLE
      III

     

    MANAGEMENT
      OF THE LLC

     

    Section
      3.1. Management
      in General.
      Subject
      to the other terms and conditions of this Agreement, including the delegations
      of power and authority set forth herein, the management and control of the
      business of the LLC shall be vested exclusively in the Manager Member, and
      the
      Manager Member shall have exclusive power and authority, in the name of and
      on
      behalf of the LLC, to perform all acts and do all things which, in its sole
      discretion, it deems necessary or desirable to conduct the business of the
      LLC,
      with or without the vote or consent of the other Members in their capacity
      as
      such; provided,
      however,
      that
      the Manager Member shall not have any powers or privileges with respect to
      those
      matters delegated exclusively to the Management Committee pursuant to Section
      3.2 hereof. Members, in their capacity as such, shall have no right to amend
      or
      terminate this Agreement or to appoint, select, vote for or remove the Manager
      Member, the Officers or their agents or to exercise voting rights or call a
      meeting of the Members, except as specifically provided in this Agreement.
      No
      Member other than the Manager Member shall have the power to sign for or bind
      the LLC in its capacity as a Member, but the Manager Member may delegate the
      power to sign for or bind the LLC to one or more Officers (including without
      limitation through delegation to the Management Committee).

     

    (a) The
      Manager Member shall, subject to all applicable provisions of this Agreement
      and
      the Act, be authorized in the name of and on behalf of the LLC: (i) to enter
      into, execute, amend, supplement, acknowledge and deliver any and all contracts,
      agreements, leases or other instruments for the operation of the LLC’s business;
      and (ii) in general to do all things and execute all documents necessary or
      appropriate to conduct the business of the LLC as set forth in Section 2.7
      hereof, or to protect and preserve the LLC’s assets. The Manager Member may
      delegate any or all of the foregoing powers to one or more of the Officers
      (including without limitation through delegation to the Management
      Committee).

     

    (b) The
      Manager Member is required to be a Member, and shall hold office until its
      resignation in accordance with the provisions hereof. The Manager Member is
      the
“manager” (within the meaning of the Act) of the LLC. The Manager Member shall
      devote such time to the business and affairs of the LLC as it deems necessary,
      in its sole discretion, for the performance of its duties, but in any event,
      shall not be required to devote full time to the performance of such duties
      and
      may delegate its duties and responsibilities as provided in Section
      3.3.

     

    (c) Any
      action taken by the Manager Member, and the signature of the Manager Member
      (or
      an authorized representative thereof) on any agreement, contract, instrument
      or
      other document on behalf of the LLC, shall be sufficient to bind the LLC and
      shall conclusively evidence the authority of the Manager Member and the LLC
      with
      respect thereto.

     

    
      
        
        

      

      
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    (d) Any
      Person dealing with the LLC, the Manager Member or any Member may rely upon
      a
      certificate signed by the Manager Member as to (i) the identity of the Manager
      Member or any other Member; (ii) any factual matters relevant to the affairs
      of
      the LLC; (iii) the Persons who are authorized to execute and deliver any
      document on behalf of the LLC; or (iv) any action taken or omitted by the LLC
      or
      the Manager Member.

     

    Section
      3.2. Management
      Committee of the LLC.

     

    (a) The
      LLC
      shall have a Management Committee (the “Management
      Committee”).
      The
      Manager Member hereby delegates to the greatest extent permitted by applicable
      law the power and authority under Section 3.5(a) of this Agreement to the
      Management Committee to conduct the day-to-day operations, business and
      activities of the LLC. Each Non-Manager Member hereby grants to the Management
      Committee (acting by a Committee Vote) a revocable proxy to vote the LLC Units
      held by such Member in connection with any election pursuant to Section
      3.2(b)(ii) hereof to fill a vacancy in the Management Committee, and such proxy
      may only be revoked by written notice from a Member to the Management Committee
      and the Manager Member, which written notice must expressly reference this
      Section of this Agreement.

     

    (b) The
      Management Committee shall be comprised as follows:

     

    (i) The
      Management Committee shall initially have three (3) members and consist of
      Stuart Bilton, Kenneth Anderson, and Gerald Dillenburg. The number of members
      of
      the Management Committee may be increased or decreased by the Management
      Committee at any time with the written consent of the Manager Member (but not
      decreased to a number less than two (2) members). No person who is not both
      an
      active employee of the LLC (or any of its Controlled Affiliates) and an Employee
      Stockholder (an “Eligible
      Person”)
      may
      be, become or remain a member of the Management Committee (subject to clause
      (v)
      below).

     

    (ii) Any
      vacancy in the Management Committee, however occurring (including a vacancy
      resulting from an increase in the size of the Management Committee), may be
      filled by any Eligible Person reasonably acceptable to the Manager Member and
      elected by a majority vote of all Members holding LLC Units, with each LLC
      Unit
      (regardless of whether such LLC Unit is a Series A LLC Unit or a Series B LLC
      Unit) being counted equally in such vote. In lieu of any such vacancy being
      filled, the Management Committee may determine to reduce the size of the
      Management Committee in accordance with clause (i) above (but not to a number
      less than two (2) members); provided that if at any time there are fewer than
      three (3) members of the Management Committee, such vacancies must be filled
      and, if they remain unfilled for a period of greater than five days, shall
      be
      filled by any Eligible Person(s) reasonably acceptable to the Manager Member
      and
      elected by a majority vote of all Members holding LLC Units, with each LLC
      Unit
      (regardless of whether such LLC Unit is a Series A LLC Unit or a Series B LLC
      Unit) being counted equally in such vote.

     

    (iii) Members
      of the Management Committee shall remain members of the Management Committee
      until their resignation, removal or death. Any member of the Management
      Committee may resign by delivering his or her written resignation to the
      Management Committee and the Manager Member. At any time that there are more
      than two (2) members of the Management Committee, any member of the Management
      Committee may be removed from such position: (A) with or without cause, by
      the
      Management Committee acting by a Committee Vote (with such Committee Vote being
      calculated for all purposes as if the member of the Management Committee whose
      removal is being considered were not a member of the Management Committee)
      with
      the written consent of the Manager Member, or (B) with or without cause, by
      the
      Non-Manager Members acting by a Majority Vote, with the written consent of
      the
      Manager Member, or (C) For Cause by the Manager Member, with notice to the
      Management Committee specifying the reasons for the decision. Any Employee
      Stockholder who is a member of the Management Committee shall be deemed to
      have
      resigned from the Management Committee and shall no longer be a member of the
      Management Committee immediately upon such Employee Stockholder ceasing to
      be an
      active employee of the LLC (or any of its Controlled Affiliates) or otherwise
      ceasing to be an Employee Stockholder, in each case for any reason.

     

    
      
        
        

      

      
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    (iv) At
      any
      meeting of the Management Committee, presence in person or by telephone (or
      other electronic means) of a majority of the members of the Management Committee
      shall constitute a quorum. At any meeting of the Management Committee at which
      a
      quorum is present, a majority of the total members of the Management Committee
      may take any action on behalf of the Management Committee (any such action
      taken
      by such members of the Management Committee is sometimes referred to herein
      as a
“Committee
      Vote”).
      Any
      action required or permitted to be taken at any meeting of the Management
      Committee may be taken without a meeting of the Management Committee only if
      (A)
      a written consent thereto is signed by all the members of the Management
      Committee and (B) the Manager Member has been given a copy of such written
      consent not less than forty-eight (48) hours prior to such action. Notice of
      the
      time, date and place of any meeting of the Management Committee shall be given
      to all members of the Management Committee and the Manager Member at least
      forty-eight (48) hours in advance of the meeting. A representative of the
      Manager Member shall be entitled to attend each meeting of the Management
      Committee. Notice need not be given to any member of the Management Committee
      or
      the Manager Member if a waiver of notice is given (orally or in writing) by
      such
      member of the Management Committee or the Manager Member (as applicable),
      before, at or after the meeting. Members of the Management Committee are not
      “managers” (within the meaning of the Act) of the LLC.

     

    (v) The
      Manager Member hereby grants to the Management Committee (acting by a Committee
      Vote) a revocable proxy to vote the LLC Units held by the Manager Member in
      connection with any majority vote pursuant to Section 3.2(b)(ii) hereof to
      fill
      a vacancy in the Management Committee. Notwithstanding any other provisions
      of
      this Agreement to the contrary, the Manager Member shall have full power and
      authority at any time in its sole discretion (and without the consent or
      approval of the Management Committee or the Non-Manager Members) to (A) increase
      the number of members of the Management Committee and to fill the vacancies
      created by any such increase with one or more other Employee Stockholders or
      with any other persons selected by the Manager Member and/or (B) to revoke
      the
      proxy granted by the Manager Member to the Management Committee in the
      immediately preceding sentence, provided that any such increase and/or proxy
      revocation may only be effected by written notice from the Manager Member to
      the
      Management Committee, which written notice must expressly reference this Section
      of this Agreement.

     

    
      
        
        

      

      
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    Section
      3.3. Officers
      of the LLC.
      The
      Management Committee may designate employees of the LLC as officers of the
      LLC
      (the “Officers”)
      as it
      deems necessary or desirable to carry on the business of the LLC. The Management
      Committee may delegate any of its power or authority to an Officer or Officers
      subject to modification and withdrawal of such delegated power and authority
      by
      the Management Committee. Any two or more offices may be held by the same
      person. New offices may be created and filled by the Management Committee.
      Each
      Officer shall hold office until his or her successor is designated by the
      Management Committee or until his or her earlier death, resignation or removal.
      Any Officer may resign at any time upon written notice to the Management
      Committee and the Manager Member. Any Officer designated by the Management
      Committee may be removed from his or her office (with or without a concurrent
      termination of employment) (i) with or without cause by the Management Committee
      (excluding for all purposes the Person whose removal is being considered) or
      (ii) For Cause by the Manager Member, in each case at any time. A vacancy in
      any
      office occurring because of death, resignation, removal or otherwise may be
      filled by the Management Committee. Any designation of Officers, a description
      of any duties delegated to such Officers, and any removal of such Officers
      by
      the Management Committee, shall be approved by the Management Committee in
      writing, which approval shall be delivered to the Manager Member. The Officers
      are not “managers” (within the meaning of the Act) of the LLC.

     

    Section
      3.4. Employees
      of the LLC.

     

    (a) The
      decision to employ, and the terms of employment of any employee of the LLC
      (or
      any Controlled Affiliates thereof) who is not an Employee Stockholder
      (including, without limitation, with respect to the hiring, all aspects of
      compensation, promoting, demoting and terminating of such employees), shall
      be
      determined by the Management Committee or such Person or Persons to whom the
      Management Committee may delegate such power and authority (subject, in all
      instances, to the power of the Management Committee to revoke such delegation
      in
      whole or in part (by a Committee Vote that excludes any Person to whom such
      power and authority has been delegated)), subject, in all cases, to compliance
      with all applicable laws, rules and regulations and with the provisions of
      Section 3.5 hereof. Notwithstanding the foregoing, the Manager Member may
      terminate the employment by the LLC (or any Controlled Affiliate thereof) of
      any
      employee who has engaged in any activity included in the definition of “For
      Cause” with notice to the Management Committee specifying the reasons for such
      decision.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    (b) The
      granting or Transferring of LLC Interests in connection with any hiring or
      promotion of an employee shall be subject to the terms and conditions set forth
      in Articles V and VI hereof.

     

    (c) Any
      Person who is an Employee Stockholder may have his or her employment with the
      LLC terminated by the LLC only: (i) in the case of a termination For Cause,
      either by the Manager Member or by the Management Committee (excluding for
      all
      purposes the Person whose termination is being considered) with the prior
      written consent of the Manager Member, or (ii) in the case of any other
      termination by the LLC, by the Management Committee (excluding for all purposes
      the Person whose termination is being considered) with the prior written consent
      of the Manager Member.

     

    Section
      3.5. Operation
      of the Business of the LLC.

     

    (a) Subject
      to the Manager Member’s rights, duties and obligations set forth in the Act and
      elsewhere in this Agreement (including, without limitation, the provisions
      of
      this Section 3.5), the Management Committee is hereby delegated to the greatest
      extent permitted by applicable law the power and authority from the Manager
      Member to manage the day-to-day operations, business and activities of the
      LLC;
      including, without limitation, the power and authority, in the name of and
      on
      behalf of the LLC, to:

     

    (i) determine
      the use of the Operating Allocation as set forth in Section 3.5(b)
      below;

     

    (ii) execute
      such documents and do such acts as are necessary to register (or provide or
      qualify for exemptions from any such registrations) or qualify the LLC (or
      any
      Controlled Affiliates thereof) under applicable federal and state securities
      laws;

     

    (iii) enter
      into contracts and other agreements with respect to the provision of Investment
      Services and execute other instruments, documents or reports on behalf of the
      LLC (and any Controlled Affiliates thereof) in connection
      therewith;

     

    (iv) enter
      into contracts, agreements and commitments with respect to the operation of
      the
      business of the LLC (and any Controlled Affiliates thereof) as are consistent
      with the other provisions of this Agreement and the Act; and

     

    (v) act
      for
      and on behalf of the LLC (and any Controlled Affiliates thereof) in all matters
      incidental to the foregoing and other day-to-day matters.

     

    (b) The
      Operating Allocation for any period shall be used to provide for and pay the
      LLC’s (and any Controlled Affiliates’ thereof) business expenses and other costs
      (including without limitation (i) the payment of premiums during such period
      with respect to any insurance coverages maintained (except to the extent
      otherwise provided for in Section 3.5(d)), (ii) all capital expenditures and
      capital contributions made by the LLC (or any Controlled Affiliate thereof)
      during such period, except to the extent that Owners’ Allocation has been
      retained therefor as an Owners’ Allocation Expenditure, (iii) the satisfaction
      of any net worth, working capital or similar requirements imposed by applicable
      laws and regulations in connection with the businesses conducted and
      registrations held by the LLC (or any Controlled Affiliate thereof) or otherwise
      reasonably necessary in connection with the conduct of the businesses of the
      LLC
      (and any Controlled Affiliates thereof), (iv) all payments to subadvisers,
      brokers and other vendors, and (v) compensation and benefits payable to
      employees (including the Officers and the Employee Stockholders), and at the
      discretion of the Management Committee, establishing reserves for such future
      payments), as determined by the Management Committee, and all such business
      expenses and other costs of the LLC (and any Controlled Affiliates thereof)
      shall be paid out of the Operating Allocation. Without the prior written consent
      of the Manager Member (which written consent makes specific reference to this
      Section 3.5(b)), the LLC shall not (nor shall any Controlled Affiliate of the
      LLC) incur (and the Employee Stockholders shall use their reasonable best
      efforts to prevent the LLC (or any Controlled Affiliate thereof) from incurring)
      any expenses or take any action to incur other obligations which expenses and
      obligations exceed the ability of the LLC to pay or provide for them out of
      the
      Operating Allocation on a current or previously reserved basis. Except to the
      extent otherwise required by applicable law, the LLC (and any Controlled
      Affiliates thereof) shall only make payments of compensation (including bonuses)
      to employees (including the Officers and the Employee Stockholders) out of
      the
      balance of the Operating Allocation remaining after the payment (or reservation
      for payment) of all the other business expenses, requirements and other costs
      for the applicable period. Any excess Operating Allocation remaining for any
      fiscal year following the payment (or reservation for payment) of all business
      expenses and other costs (including any such amount established as a reserve
      in
      a prior period that is reasonably determined by the Management Committee to
      have
      been in excess of what was necessary for such reserve) may be used by the LLC
      in
      such fiscal year and/or in future fiscal years in accordance with this Section
      3.5(b). The Owners’ Allocation shall in no event be used to provide for or pay
      the business expenses or other costs of the LLC (or any Controlled Affiliate
      thereof), except to the extent expressly permitted by Section 3.5(d) or as
      otherwise agreed to in writing by the Manager Member and the Management
      Committee (any such permitted use of the Owners’ Allocation being referred to
      herein as an “Owners’
      Allocation Expenditure”).

     

    
      
        
        

      

      
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    (c) The
      LLC
      shall not (nor shall any Controlled Affiliate of the LLC) do or commit to do,
      and the Employee Stockholders and Non-Manager Members shall prevent the LLC
      (or
      any Controlled Affiliate thereof) from doing or committing to do, any of the
      following without the prior written consent of the Manager Member (which written
      consent makes specific reference to this Section 3.5(c)):

     

    (i) enter
      into, amend, modify or terminate any contract, agreement or understanding
      (written or oral) if such action or the resulting contract, agreement or
      understanding could reasonably be expected to conflict with the provisions
      of
      this Section 3.5;

     

    (ii) enter
      into, amend, modify or terminate any contract, agreement or understanding
      (written or oral) if such action or the resulting contract, agreement or
      understanding (individually or in the aggregate) could have a material adverse
      impact on the availability of the Operating Allocation in future periods
      (including, without limitation, long-term leases or employment
      contracts);

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    (iii) enter
      into, amend, modify or terminate any contract, agreement or understanding
      (written or oral) if such action or the resulting contract, agreement or
      understanding has the effect of creating a Lien upon any of the assets of the
      LLC (other than Liens securing indebtedness of the LLC incurred to finance
      the
      acquisition of fixed or capital assets (whether pursuant to a deferred purchase
      agreement with a vendor, a loan, a financing lease or otherwise), provided
      that
      (A) such Liens shall be created substantially simultaneously with the
      acquisition of such fixed or capital assets, (B) such Liens do not at any time
      encumber any property other than property financed by such indebtedness, (C)
      the
      amount of indebtedness secured thereby is not thereafter increased (D) the
      principal amount of indebtedness secured by such Lien shall at no time exceed
      the purchase price of such property and (E) the purchase price for such property
      shall not exceed $100,000) or upon any portion of the Owners’
Allocation;

     

    (iv) take
      any
      action (or omit to take any action) if such action (or omission) could
      reasonably be expected to result in the termination of the employment by the
      LLC
      of any Employee Stockholder (provided that the foregoing shall not impose any
      limitation on the ability of an Employee Stockholder to terminate his or her
      employment with the LLC in accordance with the provisions hereof, and shall
      not
      require the LLC to pay additional compensation to retain the services of any
      Employee Stockholder);

     

    (v) create,
      incur, assume, or suffer to exist any Indebtedness;

     

    (vi) establish
      or modify any material compensation arrangement (other than salary and cash
      bonuses in the ordinary course) or program (whether cash or non-cash benefits)
      applicable to any employee, in any such case which is subject to ERISA, which
      requires qualification under the Code, or which otherwise (A) requires the
      Manager Member (other than in its capacity as Manager Member) or any of its
      Affiliates to take any action which it would not take but for the establishment
      or modification of such compensation arrangement or program or (B) prevents
      the
      Manager Member or any of its Affiliates from taking any action which it would
      otherwise have been able to take but for the establishment or modification
      of
      such compensation arrangement or program (and the Management Committee shall
      give the Manager Member not less than thirty (30) days prior written notice
      before the LLC (or any Controlled Affiliate thereof) establishes or modifies
      any
      material compensation arrangement (other than salary and cash bonuses in the
      ordinary course) or program);

     

    (vii) enter
      into, amend, modify or terminate any contract, agreement or understanding
      (written or oral) (A) containing severance or termination payment arrangements,
      other than severance or termination payment arrangements with bona fide
      employees of the LLC or its Controlled Affiliates (other than any Employee
      Stockholder or Non-Manager Member or an Immediate Family member thereof) which
      do not exceed $250,000 individually to any one such employee or represent
      potential liabilities at any one time outstanding (taking into account such
      contract, agreement or understanding and all other such contracts, agreements
      and understandings of the LLC and its Controlled Affiliates then in effect)
      in
      excess of $250,000 in the aggregate, (B) which could cause the Manager Member
      or
      any of its Affiliates to be liable for termination or severance payments or
      other contractual payments upon a termination of any employee’s employment with
      the LLC (or any Controlled Affiliate thereof) or (C) which is with an Employee
      Stockholder, a Non-Manager Member, an Affiliate of an Employee Stockholder
      or a
      Non-Manager Member, or a partner, shareholder, member, manager, director,
      officer, employee or Immediate Family member of any of the
      foregoing;

     

    
      
        
        

      

      
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    (viii) (A)
      enter
      into any line of business other than the provision of Investment Services,
      (B)
      acquire, form or otherwise establish any subsidiary or Controlled Affiliate
      of
      the LLC or otherwise make any investment in, or otherwise conduct business
      through, any other Person, (C) acquire any material assets or other properties,
      other than capital expenditures made out of Operating Allocation in the ordinary
      course of business consistent with past practice and not involving the
      acquisition of any Person as a going concern, or (D) sell, transfer or otherwise
      dispose of any material assets or other properties, other than sales of worn-out
      or obsolete equipment made in the ordinary course of business consistent with
      past practice;

     

    (ix) (A)
      make
      any change in the Certificate (or the constituent documents of any Controlled
      Affiliate of the LLC), (B) authorize or issue any membership or other equity
      or
      ownership interests or other securities of any type of the LLC (or any
      Controlled Affiliate thereof), (C) repurchase, redeem or otherwise acquire
      any
      outstanding membership or other equity or ownership interests or other
      securities of the LLC (or any Controlled Affiliate thereof), (D) make any
      dividend or other distribution in respect of its membership or other equity
      or
      ownership interests (other than as expressly required by other provisions of
      this Agreement), (E) settle or compromise any material litigation, arbitration,
      investigation, audit or other proceeding, (F) terminate its existence or
      voluntarily file for or otherwise commence proceedings with respect to
      bankruptcy, reorganization, receivership or similar status, (G) make or change
      any tax election, waive or extend the statute of limitations in respect of
      taxes, amend any tax return, enter into any closing agreement with respect
      to
      taxes, settle any tax claim or assessment or surrender any right to a claim
      for
      a tax refund, change any method or principle of accounting in a manner
      inconsistent with past practice or change regular independent accountants,
      or
      (H) make any loan or advance to any Person, other than advances of business
      expenses in the ordinary course of business consistent with past practice;
      or

     

    (x) (A)
      take
      any action which pursuant to any provision of this Agreement (other than Section
      3.1) may be taken only by the Manager Member with or without the consent of
      the
      Non-Manager Members or the Employee Stockholders, or (B) take any action which
      requires the approval or consent of the Manager Member pursuant to any provision
      of this Agreement.

     

    
      
        
        

      

      
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    (d) The
      LLC
      (and each Controlled Affiliate thereof) shall maintain (and the Employee
      Stockholders and Non-Manager Members shall use their reasonable best efforts
      to
      cause the LLC (and each Controlled Affiliate thereof) to maintain), in full
      force and effect, such insurance as is customarily maintained by companies
      of
      similar size in the same or similar businesses (including, without limitation,
      errors and omissions liability insurance), the premiums on which will be paid
      out of the Operating Allocation (and the beneficiary of which shall be the
      LLC
      and/or its applicable Controlled Affiliates, as applicable). With the prior
      written consent of the Manager Member and the Management Committee, the LLC
      also
      may elect to maintain key-man and/or disability insurance policies with respect
      to any Employee Stockholder, in which event the premiums on such policies will
      be paid out of the Owners’ Allocation (and the beneficiary of any such policy
      shall be the LLC). In the event that the Manager Member or any of its Affiliates
      shall determine (at its own expense) to maintain separate key-man and/or
      disability insurance policies with respect to any Employee Stockholder (of
      which
      the Manager Member or any of its Affiliates may be the beneficiary), and in
      connection with any such policies maintained by the LLC for its own benefit,
      such Employee Stockholder shall cooperate with the Manager Member, its
      Affiliates and the LLC (as applicable) in connection with obtaining and
      maintaining such insurance policies (including without limitation by submitting
      to any required examinations and truthfully answering any questions asked by
      the
      insurer in connection with obtaining such policies).

     

    (e) In
      addition to, and not in limitation of, the Manager Member’s powers and authority
      under this Agreement (including, without limitation, pursuant to Section 3.1(a)
      hereof), the Manager Member shall also have the power, in its sole discretion
      (after consultation with the Management Committee, to the extent practicable),
      whether or not they involve day-to-day operations, business and activities
      of
      the LLC (or any Controlled Affiliate thereof), to take any or all of the
      following actions:

     

    (i) such
      actions as it deems necessary or appropriate to cause the LLC or any Affiliate
      of the LLC, or any officer, employee, member, partner, or agent thereof, to
      comply with applicable laws, rules or regulations;

     

    (ii) such
      actions as it deems necessary or appropriate to coordinate any initiative which
      could materially affect the Manager Member and/or any of its Affiliates (but
      only on such terms and conditions as the participation of the LLC (or any
      Controlled Affiliates thereof) in such initiative has been approved by the
      Management Committee);

     

    (iii) such
      actions as it deems necessary or appropriate to cause the LLC to fulfill its
      obligations and exercise its rights under the Purchase Agreement and this
      Agreement; and

     

    (iv) any
      other
      action necessary or appropriate to prevent actions that require the Manager
      Member’s consent pursuant to the terms of this Agreement if such consent has not
      then been given.

     

    (f) Notwithstanding
      any of the provisions of this Agreement to the contrary, all accounting,
      financial reporting and bookkeeping procedures of the LLC (and any Controlled
      Affiliates thereof) shall be established in conjunction with policies and
      procedures determined under the supervision of the Manager Member. The
      Management Committee shall have a continuing obligation to keep the Manager
      Member’s chief financial officer informed of material financial developments
      with respect to the LLC (and any Controlled Affiliates thereof). Notwithstanding
      any other provisions of this Agreement to the contrary, all legal, compliance
      and regulatory matters of the LLC (and any Controlled Affiliates thereof) shall
      be coordinated with the Manager Member and the LLC’s (and any of its Controlled
      Affiliates’) legal compliance activities shall be conducted and established in
      conjunction with policies and procedures determined under the supervision of
      the
      Manager Member.

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    (g) Each
      Employee Stockholder and Non-Manager Member covenants and agrees that such
      Employee Stockholder or Non-Manager Member, as the case may be, will at all
      times conduct its activities in connection with the LLC (and any Controlled
      Affiliates thereof), and any services provided to the LLC (or to any Controlled
      Affiliates thereof), in accordance with all applicable laws, rules and
      regulations, and that it will use its reasonable best efforts (i) to ensure
      that
      the business and activities of the LLC (and any Controlled Affiliates thereof)
      are conducted in compliance with all applicable laws, rules and regulations
      in
      all material respects and (ii) to preserve the goodwill and franchise value
      of
      the LLC (and any Controlled Affiliates thereof).

     

    (h) Notwithstanding
      any of the provisions of this Agreement to the contrary, the Manager Member
      shall have the power to establish and mandate that the LLC (and any of its
      Controlled Affiliates) participate in employee benefit plans which are subject
      to ERISA or require qualification under Section 401 of the Code to the extent
      necessary in order to make the expenses of any such plan(s) deductible or
      otherwise to comply with ERISA or the Code, and may establish or modify the
      terms of any such plan to the extent necessary in connection therewith, provided
      that any such action taken by the Manager Member shall treat the Affiliates
      of
      the Manager Member subject to such action in an equitable manner (i.e., a manner
      not materially more disadvantageous to one Affiliate than to other Affiliates
      of
      the Manager Member, as reasonably determined by the Manager Member) to the
      extent permissible under ERISA and the Code and consistent with achieving tax
      deductibility.

     

    (i) Notwithstanding
      any other provisions of this Agreement to the contrary, the Management
      Committee, each Employee Stockholder and each Non-Manager Member shall cooperate
      with the Manager Member and its Affiliates in implementing any initiative
      generally involving the LLC (and/or any Controlled Affiliates thereof) and
      a
      number of such Affiliates, but only on such terms and conditions as the
      participation of the LLC (and any Controlled Affiliates thereof) in such
      initiative has been approved by the Management Committee.

     

    (j) Notwithstanding
      any other provisions of this Agreement to the contrary, any (i) voluntary
      liquidation of the LLC, (ii) sale, exchange or other disposition of all, or
      a
      substantial portion of, the assets of the LLC and its Controlled Affiliates,
      or
      (iii) Transfer by the Manager Member of all its interests in the LLC in a single
      transaction or series of related transactions (subject to the same exceptions
      applicable to any such Transfer by the Manager Member under Section 6.1 hereof),
      shall require a majority vote of all Members holding LLC Units, with each LLC
      Unit (regardless of whether such LLC Unit is a Series A LLC Unit or a Series
      B
      LLC Unit) being counted equally in such vote.

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    Section
      3.6. Compensation
      and Expenses of the Members.
      The
      Manager Member may receive compensation for services provided to the LLC (or
      any
      Controlled Affiliate thereof) only to the extent approved by the Management
      Committee. The LLC shall, however, pay and/or reimburse the Manager Member
      for
      extraordinary expenses incurred by the Manager Member directly in connection
      with the operation of the LLC (and any Controlled Affiliates thereof). It is
      expressly understood by the parties hereto that the Manager Member’s general
      overhead items and expenses (including, without limitation, salaries, rent
      and
      travel expenses) shall not be reimbursed by the LLC. Stockholders, officers,
      directors, Members and agents of Members may serve as employees of the LLC
      (or
      any Controlled Affiliate thereof) and be compensated therefor out of the
      Operating Allocation as determined by the Management Committee (or its
      delegate(s)) pursuant to Section 3.5(b). Except in respect of their provision
      of
      services as employees of the LLC (or any Controlled Affiliate thereof) for
      which
      they may be compensated out of the Operating Allocation as contemplated by
      the
      preceding sentence, Employee Stockholders, Non-Manager Members and members
      of
      their Immediate Family may not receive compensation on account of the provision
      of services to the LLC (or any Controlled Affiliate thereof) without the prior
      written consent of the Management Committee and the Manager Member.

     

    Section
      3.7. Other
      Business of the Manager Member and Its Affiliates.
      The
      Manager Member and its Affiliates may engage, independently or with others,
      in
      other business ventures of every nature and description, including the
      acquisition, creation, financing, trading in, and operation and disposition
      of
      interests in, investment advisers or investment managers and other businesses
      that may be competitive with the LLC’s (or any of its Controlled Affiliates’)
      business. Neither the LLC (or any Controlled Affiliate thereof) nor any of
      the
      Employee Stockholders or Non-Manager Members shall have any right in or to
      any
      other such ventures by virtue of this Agreement or the limited liability company
      created or continued hereby, nor shall any such activity by the Manager Member
      or its Affiliates in and of itself be deemed wrongful or improper or result
      in
      any liability of the Manager Member or its Affiliates. Neither the Manager
      Member nor any of its Affiliates shall be obligated to present any opportunity
      to the LLC (or any Controlled Affiliate thereof) even if such opportunity is
      of
      such a character which, if presented to the LLC (or a Controlled Affiliate
      thereof), would be suitable for the LLC (or such a Controlled Affiliate
      thereof). The Manager Member shall not disclose any Intellectual Property owned
      or used in the course of business by the LLC (or any Controlled Affiliate
      thereof) to any Person, including, without limitation, any other of its
      Affiliates, and the Manager Member agrees always to keep secret and not ever
      to
      publish, divulge, furnish, use or make accessible to anyone any Intellectual
      Property that is not otherwise publicly available (other than as a result of
      a
      breach of the provisions of this Section 3.7), in each case other than in the
      regular business of the LLC and its Controlled Affiliates, as required by court
      order or by law or in connection with the enforcement of this Agreement or
      the
      Purchase Agreement. Notwithstanding any provision of this Section 3.7 to the
      contrary, the Manager Member shall not (i) solicit or induce, or attempt to
      solicit or induce (whether directly or indirectly), any Person for the purpose
      (which need not be the sole purpose) of causing any funds invested in any Fund
      to be withdrawn from such Fund or (ii) solicit or induce, or attempt to solicit
      or induce (whether directly or indirectly), any employee of the LLC or any
      Controlled Affiliate thereof to terminate his or her relationship
      therewith.

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

     

    Section
      3.8. Restrictions
      on Competition, Non-Solicitation and Non-Disclosure by Non-Manager Members
      and
      Employee Stockholders.

     

    (a) Each
      Non-Manager Member and each Employee Stockholder agrees, for the benefit of
      the
      LLC and the other Members, that such Non-Manager Member or Employee Stockholder
      (as the case may be) shall not, while employed by the LLC or any of its
      Affiliates, and for two (2) years following termination of such employment
      (or
      if a Non-Manager Member or Employee Stockholder holds less than 2.0% of the
      outstanding LLC Interests at the time of termination of employment for one
      (1)
      year following termination) engage in any Prohibited Competition
      Activity.

     

    (b) In
      addition to, and not in limitation of, the provisions of Section 3.8(a) hereto,
      each Non-Manager Member and each Employee Stockholder agrees, for the benefit
      of
      the LLC and the other Members, that such Non-Manager Member or Employee
      Stockholder (as the case may be) shall not, during the period beginning on
      the
      date such Non-Manager Member becomes a Non-Manager Member or Employee
      Stockholder becomes an Employee Stockholder (as applicable), and until the
      date
      which is two (2) years after the termination (or if a Non-Manager Member or
      Employee Stockholder holds less than 2.0% of the outstanding LLC Interests
      at
      the time of termination of employment until a date which is one (1) year after
      the termination) of such Non-Manager Member’s status as a Non-Manager Member or
      Employee Stockholder’s employment with the LLC and all of its Affiliates (as
      applicable), without the express written consent of the Manager Member and
      the
      Management Committee, directly or indirectly, whether as owner, part-owner,
      shareholder, partner, member, director, officer, trustee, employee, agent or
      consultant, or in any other capacity, on behalf of itself or any firm,
      corporation or other business organization other than the LLC and its Controlled
      Affiliates:

     

    (i) provide
      Investment Services to any Person that is a Client (as defined herein, which
      includes Past Clients, Present Clients and Potential Clients); provided,
      however,
      that
      this clause (i) shall not be applicable to Clients of the LLC (including
      Potential Clients) who are also members of the Immediate Family of the Employee
      Stockholder or Non-Manager Member (as the case may be);

     

    (ii) solicit
      or induce, whether directly or indirectly, any Person for the purpose (which
      need not be the sole or primary purpose) of (A) causing any funds invested
      in
      any Fund to-be
      withdrawn from such Fund, or (B) causing any Client (including any Potential
      Client) not to invest any additional funds in any Fund (or otherwise attempt
      to
      cause any of the foregoing to occur);

     

    (iii) contact
      or communicate with, whether directly or indirectly, any Past, Present or
      Potential Clients with respect to the provision of Investment Services;
provided,
      however,
      that
      this clause (iii) shall not be applicable to Clients (including Potential
      Clients) who are also members of the Immediate Family of the Employee
      Stockholder or Non-Manager Member; or

     

    (iv) solicit
      or induce, or attempt to solicit or induce, directly or indirectly, any employee
      or agent of, or consultant to, the LLC or any of its Controlled Affiliates
      to
      terminate its, his or her relationship therewith, hire any such employee, agent
      or consultant, or former employee, agent or consultant, or work in any
      enterprise involving Investment Services with any employee, agent or consultant
      or former employee, agent or consultant, of the LLC or any of its Controlled
      Affiliates who was employed by or acted as an agent or consultant to the LLC
      or
      their respective Controlled Affiliates at any time during the two (2) year
      period preceding the termination of the Employee Stockholder’s employment or
      Non-Manager Member’s status as a member of the LLC, as applicable (excluding for
      all purposes of this sentence, secretaries and persons holding other similar
      positions).

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

     

    For
      purposes of this Section 3.8(b), the term “Past Client” shall be limited to
      those Past Clients who were recipients of Investment Services, directly or
      indirectly (including through investment in any Fund), from the LLC and/or
      their
      respective Controlled Affiliates at the date of termination of the Employee
      Stockholder’s employment or Non-Manager Member’s status as a member of the LLC
      (as applicable) or at any time during the two (2) years immediately preceding
      the date of such termination.

     

    Notwithstanding
      the provisions of Sections 3.8(a) and 3.8(b), any Employee Stockholder may
      (i)
      make passive personal investments in an enterprise (whether or not competitive
      with the Manager Member or the LLC) the shares or other equity interests of
      which are publicly traded, provided his holding therein together with any
      holdings of his Affiliates and members of his Immediate Family, are less than
      five percent (5%) of the outstanding shares or comparable interests in such
      entity; and (ii) serve as a trustee of a registered investment
      company.

     

    (c) Each
      Member and each Employee Stockholder agrees that any and all presently existing
      investment advisory businesses of the LLC and its Controlled Affiliates and
      all
      businesses developed by the LLC, any of its Controlled Affiliates, the
      Predecessor Business and the Predecessor Business, including by such Employee
      Stockholder or any other employee of the LLC or any of its Controlled
      Affiliates, the Predecessor Business or any predecessor thereto (whether or
      not
      in such person’s individual capacity), including without limitation, all
      investment methodologies, all investment advisory contracts, fees and fee
      schedules, commissions, records, data, Client lists, agreements, trade secrets,
      and any other incident of any business developed by the LLC, its Controlled
      Affiliates, the Predecessor Business or any predecessor thereto, or earned
      or
      carried on by the Employee Stockholder for the LLC, any of its Controlled
      Affiliates, the Predecessor Business or any predecessor thereto, and all trade
      names, service marks and logos under which the LLC or its Affiliates (or any
      predecessor thereto) do or have done business, and any combinations or
      variations thereof and all related logos, are and shall be the exclusive
      property of the LLC or such Controlled Affiliate thereof, as applicable, for
      its
      or their sole use, and (where applicable) shall be payable directly to the
      LLC
      or such Controlled Affiliate. In addition, each Member and each Employee
      Stockholder acknowledges and agrees that the investment performance of the
      accounts managed by the LLC or any Controlled Affiliate thereof was attributable
      to the efforts of the team of professionals of the LLC, such Controlled
      Affiliate thereof, such Predecessor Business or such predecessor thereto, and
      not to the efforts of any single individual or subset of such team of
      professionals, and that, therefore, the performance records of the accounts
      managed by the LLC or any of its Controlled Affiliates (or any predecessor
      to
      any of them), including without limitation, the Funds, are and shall be the
      exclusive property of the LLC or such Controlled Affiliate, as applicable (and
      not of any other Person or Persons).

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

     

    (d) Each
      Non-Manager Member and each Employee Stockholder acknowledges that, in the
      course of performing services hereunder and otherwise, such Member or Employee
      Stockholder (as applicable) has had, and will from time to time have, access
      to
      information of a confidential or proprietary nature, including without
      limitation, all confidential or proprietary investment methodologies, trade
      secrets, proprietary or confidential plans, Client identities and information,
      Client lists, service providers, business operations or techniques, records
      and
      data (“Intellectual
      Property”)
      owned
      or used in the course of business by the LLC, its Controlled Affiliates or
      any
      of the parties to the Purchase Agreement. Each Non-Manager Member and each
      Employee Stockholder agrees always to keep secret and not ever publish, divulge,
      furnish, use or make accessible to anyone (otherwise than in the regular
      business of the LLC and its Controlled Affiliates or as required by court order
      or by law (on the written advice of outside counsel)) any Intellectual Property
      of the LLC or any Controlled Affiliate thereof unless such information can
      be
      shown to be in the public domain through no fault of such Non-Manager Member
      or
      Employee Stockholder. At the termination of the Employee Stockholder’s
      employment by the LLC and its Controlled Affiliates or the Non-Manager Member’s
      status as a member of the LLC, all data, memoranda, Client lists, notes,
      programs and other papers, items and tangible media, and reproductions thereof
      relating to the foregoing matters in the Non-Manager Member’s or Employee
      Stockholder’s possession or control, shall be returned to the LLC and remain in
      its possession. The Management Committee shall procure that any Person who
      becomes a Non-Manager Member of the LLC, or who acquires a beneficial interest
      in an entity which is a Non-Manager Member of the LLC shall not be provided
      access to any confidential or proprietary information of the LLC or any of
      its
      Controlled Affiliates (except to the extent as may be otherwise required by
      applicable law).

     

    (e) Each
      Non-Manager Member and each Employee Stockholder acknowledges that, in the
      course of entering into this Agreement, the Non-Manager Member or Employee
      Stockholder (as applicable) has had and, in the course of the operation of
      the
      LLC and any Controlled Affiliates thereof, the Non-Manager Member or Employee
      Stockholder will from time to time have, access to Intellectual Property owned
      by or used in the course of business by the Manager Member. Each Non-Manager
      Member and each Employee Stockholder agrees, for the benefit of the LLC and
      its
      Members, and for the benefit of the Manager Member, always to keep secret and
      not ever publish, divulge, furnish, use or make accessible to anyone (otherwise
      than at the Manager Member’s request or by court order or by law (on the written
      advice of outside counsel)) any knowledge or information regarding Intellectual
      Property (including, by way of example and not of limitation, the transaction
      structures utilized by the Manger Member) of the Manager Member unless such
      information can be shown to be in the public domain through no fault of such
      Non-Manager Member or Employee Stockholder. At the termination of the Employee
      Stockholder’s service to the LLC and Controlled Affiliates or the Non-Manager
      Member’s status as a member of the LLC, all data, memoranda, documents, notes
      and other papers, items and tangible media, and reproductions thereof relating
      to the foregoing matters in the Non-Manager Member’s or Employee Stockholder’s
      possession or control shall be returned to the Manager Member and remain in
      its
      possession.

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

     

    (f) The
      provisions of this Section 3.8 shall not be deemed to limit any of the rights
      of
      the LLC under applicable law, but shall be in addition to the rights under
      applicable law.

     

    Section
      3.9. Remedies
      Upon Breach.

     

    (a) In
      the
      event that a Non-Manager Member or its related Employee Stockholder breaches
      any
      of the provisions of Section 3.8 hereof, then (i) such Non-Manager Member shall
      forfeit its right to receive any payment for its LLC Interests under Section
      3.10, although it shall cease to be a Non-Manager Member in accordance with
      the
      provisions of Section 3.10(e), (ii) the Manager Member (and any of its assignees
      thereunder) shall have no further obligations under any promissory note
      theretofore issued to such Non-Manager Member pursuant to Section 3.10(f),
      and
      (iii) the LLC shall be entitled to withhold any other payments to which such
      Non-Manager Member or its related Employee Stockholder otherwise would be
      entitled to offset damages resulting from such breach.

     

    (b) Each
      Non-Manager Member and each Employee Stockholder agrees that any breach of
      the
      provisions of Section 3.8 of this Agreement by such Non-Manager Member or
      Employee Stockholder (as applicable) could cause irreparable damage to the
      LLC
      and the other Members, and that the LLC (by action of the Management Committee)
      and the Manager Member shall have the right to an injunction or other equitable
      relief (in addition to other legal remedies) to prevent any violation of a
      Non-Manager Member’s or Employee Stockholder’s obligations hereunder or
      thereunder.

     

    Section
      3.10. Purchase
      Provisions.

     

    The
      Members of the LLC, having agreed that it is in the best interests of the LLC
      not to have ex-employees who were (or were related persons of, as applicable)
      Non-Manager Members remain as Non-Manager Members (or have their related
      Non-Manager Members remain as Non-Manager Members, as applicable) following
      the
      termination of such employment, agree among themselves as follows:

     

    (a) In
      the
      event that the employment by the LLC (and by any of its Controlled Affiliates
      employing such Employee Stockholder) of any Employee Stockholder terminates
      for
      any reason, then the Manager Member shall have the option to purchase, and
      such
      Employee Stockholder (or the Non-Manager Member of which such Employee
      Stockholder was an owner, if such Employee Stockholder is not itself the
      Non-Manager Member) and each of its Permitted Transferees (such selling Persons,
      collectively, a “Selling
      Member”)
      shall,
      if the Manger Member elects to purchase such LLC Interests, sell to the Manager
      Member (such purchases, collectively, a “Purchase”,
      and
      the LLC Interests purchased pursuant thereto, collectively, the “Purchased
      Interest”),
      all
      of the LLC Interests held by the Selling Member for the Purchase Price (as
      defined in Section 3.10(c) hereof) and otherwise pursuant to the terms of this
      Section 3.10. The option to Purchase shall be exercised by the Manager Member
      by
      delivery to such Employee Stockholder of a written notice (the “Purchase
      Notice”)
      (i)
      setting forth the Manager Member’s intent to exercise the option to Purchase and
      containing the total number of Units to be sold to the Manager Member, and
      (ii)
      mailed, via postage pre-paid registered or certified United States mail, to
      the
      attention of or otherwise actually delivered to Employee Stockholder at Employee
      Stockholder’s most recent address reflected in the LLC’s payroll.

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

     

    (b) The
      closing of the Purchase will take place on a date set by the Manager Member
      (the
“Purchase
      Closing Date”)
      which
      shall be after the last day of the calendar quarter in which the applicable
      Employee Stockholder’s employment with the LLC (and any of its applicable
      Controlled Affiliates) terminated (or, if later, after the last day of the
      sixth
      (6th) full
      calendar month following the Effective Time), but which is not more than one
      hundred twenty (120) days after the date such termination of employment occurred
      (or, if later, not more than one hundred twenty (120) days after the last day
      of
      the sixth (6th)
      full
      calendar month following the Effective Time).

     

    (c) The
      aggregate purchase price payable by the Manager Member (or its assignee) for
      a
      Purchase (the “Purchase
      Price”)
      shall
      be an amount equal to the fair value of the LLC Units subject to the Purchase,
      which shall be conclusively determined as follows (and the price so determined
      pursuant to the following provisions shall be final and binding upon the parties
      hereto):

     

    (i) Series
      A
      LLC Units shall be valued at the fair value thereof, which shall be conclusively
      determined as follows:

     

    
      	 	
              (A)

            	
              five
                (5.0), multiplied by

            

    

     

    
      	 	
              (B)

            	
              the
                “Applicable Cash Flow”, which shall be defined as the positive difference
                (if any) of (x) the sum of (I) fifty percent (50%) of the Base Owners’
                Allocation for the twenty-four (24) months ending on the last day
                of the
                calendar quarter in which the termination of such Employee Stockholder’s
                employment occurs (or, if later, the last day of the sixth (6th)
                full calendar month following the Effective Time), plus (II) twenty-five
                percent (25%) of the Earned Performance Owners’ Allocation for the
                forty-eight (48) months ending on the last day of the calendar quarter
                in
                which the termination of such Employee Stockholder’s employment occurs
                (or, if later, the last day of the sixth (6th)
                full calendar month following the Effective Time), minus
                (y) the amount (if any) by which the combined actual expenses of
                the LLC
                and any Controlled Affiliates thereof (determined on an accrual basis
                in
                accordance with GAAP consistently applied) exceeded the Operating
                Allocation (including any previously reserved Operating Allocation)
                during
                the twelve (12) months ending the last day of the calendar quarter
                in
                which the termination of such Employee Stockholder’s employment occurs
                (or, if later, the last day of the sixth (6th)
                full calendar month following the Effective Time), multiplied
                by

            

    

     

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (C)

            	
              the
                “Applicable Fraction”, which shall be defined as a fraction the numerator
                of which is the number of Series A LLC Units being purchased in the
                Purchase, and the denominator of which is the number of LLC Units
                outstanding on the date of the closing of the Purchase (before giving
                effect to any issuances or redemptions of LLC Units on such
                date).

            

    

     

    (ii) Series
      B
      LLC Units shall be valued at the fair value thereof, which shall be conclusively
      determined as follows:

     

    
      	 	
              (A)

            	
              The
                positive difference, if any, between (x) five (5.0) multiplied by
                the
                “Applicable Cash Flow” and (y) the Liquidation Preference, multiplied
                by

            

    

     

    
      	 	
              (B)

            	
              A
                fraction, the numerator of which is the number of Series B LLC Units
                being
                purchased in the Purchase and the denominator of which is the number
                of
                LLC Units outstanding on the date of the closing of the Purchase
                (before
                giving effect to any issuances or redemptions of LLC Units on such
                date).

            

    

     

    (d) The
      rights of the Manager Member and its assignees hereunder are in addition to
      and
      shall not affect any other rights which the Manager Member, the LLC or their
      assigns may otherwise have to purchase LLC Interests.

     

    (e) On
      the
      Purchase Closing Date, the Manager Member (or its assignee, as applicable)
      shall
      pay to the Selling Member the Purchase Price for the LLC Interests purchased
      in
      the manner set forth in this Section 3.10, and upon such payment the Selling
      Member shall cease to hold any LLC Interests, and such Selling Member
      automatically shall be deemed to have withdrawn from the LLC and shall cease
      to
      be a Member of the LLC and shall no longer have any rights hereunder;
provided,
      however,
      that
      the provisions of this Article III shall continue to be binding upon such
      Selling Member and any related Employee Stockholder as provided in Section
      3.13
      hereof. On the Purchase Closing Date, the Selling Member and the Manager Member
      (or its assignee) shall, if the Manager Member so requests, execute an agreement
      reasonably acceptable to the Manager Member (i) in which the Selling Member
      (including each Person included therein) represents and warrants to the Manager
      Member (or its assignee), that it has sole record and beneficial title to the
      Purchased Interest, free and clear of any Liens other than those imposed by
      this
      Agreement, and (ii) addressing such other matters as the Manager Member
      reasonably requests.

     

    (f) Payment
      of the Purchase Price with respect to any Purchased Interest shall be made
      as
      follows:

     

    (i) In
      the
      case of a Purchase of Series A LLC Units,

     

    
      	 	
              (A)

            	
              in
                the case of such a Purchase following a termination of the employment
                of
                the applicable Employee Stockholder in conjunction with a Removal
                Upon the
                Instruction of the Management Committee, on the Purchase Closing
                Date by
                wire-transfer of immediately available funds to an account designated
                to
                the Manager Member by the Selling Member at least three (3) business
                days
                prior to the Purchase Closing Date;

            

    

     

    
      
        
        

      

      
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              (B)

            	
              in
                the case of such a Purchase following a termination of the employment
                of
                the applicable Employee Stockholder resulting from the death of such
                Employee Stockholder, on the Purchase Closing Date either (in the
                sole
                discretion of the Manager Member) (I) by wire-transfer of immediately
                available funds to an account designated to the Manager Member by
                the
                Selling Member at least three (3) business days prior to the Purchase
                Closing Date or (II) by delivery of a promissory note of the Manager
                Member, in the form attached hereto as Exhibit
                A,
                having an initial principal amount equal to the Purchase Price, the
                principal amount of which promissory note is payable in four (4)
                equal
                annual installments (subject to the terms and conditions of this
                Agreement
                and such promissory note), with the first installment payable on
                the
                Purchase Closing Date;

            

    

     

    
      	 	
              (C)

            	
              in
                the case of such a Purchase following a termination of the employment
                of
                the applicable Employee Stockholder resulting from the Retirement
                or
                Permanent Incapacity of such Employee Stockholder, on the later to
                occur
                of (I) the Purchase Closing Date or (II) the date which is the first
                business day after the second anniversary of the Effective Time,
                in either
                such case either (in the sole discretion of the Manager Member) (x)
                by
                wire-transfer of immediately available funds to an account designated
                to
                the Manager Member by the Selling Member at least three (3) business
                days
                prior to the date such payment is due or (y) by delivery of a promissory
                note of the Manager Member, in the form attached hereto as Exhibit
                A,
                having an initial principal amount equal to the Purchase Price, the
                principal amount of which promissory note is payable in four (4)
                equal
                annual installments (subject to the terms and conditions of this
                Agreement
                and such promissory note), with the first installment payable on
                the date
                such promissory note is delivered pursuant hereto;
                or

            

    

     

    
      	 	
              (D)

            	
              in
                the case of any other such Purchase (including without limitation
                a
                termination of the employment of the applicable Employee Stockholder
                in
                conjunction with a Removal For Acting Contrary to the Best Interests
                of
                the LLC), on the later to occur of (I) the Purchase Closing Date
                or (II)
                the date which is the first business day after the second anniversary
                of
                the Effective Time, in either such case (x) fifty percent (50%) in
                Contingent Consideration payable on the Liquidation Date and (y)
                fifty
                percent (50%) (in the sole discretion of the Manager Member) either
                (1) by wire-transfer of immediately available funds to an account
                designated to the Manager Member by the Selling Member at least three
                (3)
                business days prior to the date such payment is due or (2) by delivery
                of
                a promissory note of the Manager Member, in the form attached hereto
                as
                Exhibit
                A,
                having an initial principal amount equal to fifty percent (50%) of
                the
                Purchase Price, the principal amount of which promissory note is
                payable
                in four (4) equal annual installments (subject to the terms and conditions
                of this Agreement and such promissory note), with the first installment
                payable on the date such promissory note is delivered pursuant hereto;
                and

            

    

     

     

    
      
        
        

      

      
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    (ii) In
      the
      case of a Purchase of Series B LLC Units, on the later to occur of (A) the
      Purchase Closing Date or (B) the date which is the first business day after
      the
      second anniversary of the Effective Time, in either such case one hundred
      percent (100%) in Contingent Consideration payable on the Liquidation
      Date.

     

    (g) The
      Manager Member may assign any or all of its rights and obligations under this
      Section 3.10, in one or more instances, to any other Person; provided,
      however,
      that no
      such assignment shall relieve the Manager Member of its obligation to make
      payment of a Purchase Price (to the extent not paid by any such assignee).
      The
      Manager Member may, with the consent of the Management Committee, assign any
      or
      all of its rights and obligations under this Section 3.10, in one or more
      instances, to the LLC.

     

    (h) In
      the
      event that a Non-Manager Member, its related Employee Stockholder or any
      Permitted Transferee thereof holding LLC Interests (or any other holder of
      LLC
      Interests, other than the Manager Member or any Affiliate thereof) (i) has
      filed
      a voluntary petition under the bankruptcy laws or a petition for the appointment
      of a receiver or makes any assignment for the benefit of creditors, (ii) is
      subject involuntarily to such a petition or assignment or to an attachment
      or
      other legal or equitable interest with respect to any of its LLC Interests
      or,
      in the case of an Employee Stockholder which is not a Non-Manager Member, its
      interests in the Non-Manager Member which it owns, and such involuntary petition
      or assignment or attachment is not discharged within sixty (60) days after
      its
      effective date, or (iii) otherwise is subject to a Transfer of any of its LLC
      Interests or, in the case of an Employee Stockholder which is not a Non-Manager
      Member, its interests in the Non-Manager Member which it owns, by court order
      or
      decree or by operation of law (other than any such Transfer permitted by Section
      5.1 hereof without the consent of the Manager Member), then the Manager Member
      shall in its sole discretion be entitled to purchase (or permit its assignee
      to
      purchase) all of the LLC Interests held by such Non-Manager Member (or other
      holder of LLC Interests, other than the Manager Member or any Affiliate thereof)
      pursuant to the terms of this Section 3.10 as if such Non-Manager Member (or
      other holder of LLC Interests) was a Selling Member, with the purchase price
      for
      such purchase to be determined pursuant to Section 3.10(c)(ii) and the date
      of
      the closing to be determined by the Manager Member in its discretion;
provided,
      however,
      that in
      the case of a Transfer as a result of divorce, the Manager Member shall be
      entitled to purchase (or permit its assignee to purchase) only the LLC Interests
      then held by (or subject to transfer to) the divorced spouse of such Non-Manager
      Member (or in the case of an Employee Stockholder which is not a Non-Manager
      Member, interests in its Non-Manager Member held by the divorced spouse of
      such
      Employee Stockholder) as if such spouse was a Selling Member under this Section
      3.10, and not the LLC Interests (or interests in such Non-Manager Member, as
      applicable) which continue to be held by such Non-Manager Member or Employee
      Stockholder (as applicable). In order to give effect to clause (iii) of the
      prior sentence, if any of the interests of a Non-Manager Member in the LLC,
      or
      of an Employee Stockholder in a Non-Manager Member, become subject to Transfer
      (or purport to be or have been Transferred) by a court order or decree or by
      operation of law, the Non-Manager Member (or other holder of LLC Interests,
      other than the Manager Member or any Affiliate thereof) whose interests in
      the
      LLC, or the interests in which (as applicable), are subject to such Transfer
      shall cease to be a Member of the LLC, and the transferee by court order or
      decree or by operation of law shall not become a Member, and the Manager Member
      (or its assignee) shall have the right in its sole discretion to purchase from
      the Non-Manager Member which has ceased to be a Non-Manager Member (or other
      holder of LLC Interests) all of his, her or its interests in the LLC in the
      manner set forth in the preceding sentence. In the event that the Manager Member
      in its sole discretion determines not to purchase (or permit another assignee
      of
      the Manager Member to purchase) the LLC Interests held by a Non-Manager Member
      (or other holder of LLC Interests, other than the Manager Member or any
      Affiliate thereof) pursuant to the foregoing provisions of this Section 3.10(h),
      the Manager Member shall assign its right to make such purchase to any one
      or
      more other Non-Manager Members who desire to make such purchase for their own
      accounts (and whom the Management Committee shall have authorized in writing
      to
      make such purchase, with the Management Committee determining the respective
      percentages such other Non-Manager Members shall be permitted to purchase),
      and
      such other Non-Manager Member(s) shall be entitled to purchase such LLC
      Interests on the same terms that would have been applicable to the Manager
      Member had it elected to make such purchase pursuant to the foregoing provisions
      of this Section 3.10(h).

     

    
      
        
        

      

      
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    (i) In
      the
      event that a Non-Manager Member (or other holder of LLC Interests, other than
      the Manager Member or any Affiliate thereof) is required to sell its LLC
      Interests pursuant to the provisions of this Section 3.10 and for any reason
      fails to execute and deliver the agreements required by this Section 3.10 and
      otherwise to consummate such sale in accordance with the provisions of this
      Section 3.10 (including without limitation as a result of being unable for
      any
      reason to comply with the requirements hereof), the Manager Member (or its
      assignee, as applicable) may deposit the Purchase Price therefor (including
      cash
      and/or promissory notes) with any bank doing business within fifty (50) miles
      of
      the LLC’s principal place of business, or with the LLC’s accounting firm, as
      agent for such Non-Manager Member (or such other holder of LLC Interests),
      to be
      held by such bank or accounting firm for the benefit of and for delivery to
      such
      Non-Manager Member. Upon such deposit by the Manager Member (or its assignee,
      as
      applicable) and upon notice thereof given to such Non-Manager Member (or such
      other holder of LLC Interests), and such Non-Manager Member’s (or such other
      holder’s) LLC Interests automatically shall be deemed to have been sold,
      transferred, conveyed and assigned to the Manager Member (or its assignee,
      as
      applicable), such Non-Manager Member (or such other holder) shall cease to
      hold
      any LLC Interests, shall cease to be a Member of the LLC (if previously a
      Member) and shall have no further rights with respect thereto (other than the
      right to withdraw the payment therefor, if any, held by the agent described
      in
      the preceding sentence), and the Manager Member shall record such transfer
      on
Schedule
      A
      hereto.

     

    
      
        
        

      

      
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    Section
      3.11. No
      Employment Obligation.
      Each
      Non-Manager Member and each Employee Stockholder acknowledges that this
      Agreement creates no obligation on the part of the LLC (or any Controlled
      Affiliate thereof) to continue the employment of an Employee Stockholder or
      any
      other Person with the LLC (or any Controlled Affiliate thereof), and that such
      Employee Stockholder is an employee at will of the LLC and any of its Controlled
      Affiliates employing such Employee Stockholder.

     

    Section
      3.12. Capitalization
      of Excess Operating Cash Flow.
      If the
      Management Committee advises the Manager Member that, in its reasonable judgment
      (taking into account the anticipated revenue and expenses bases of the LLC),
      the
      Operating Allocation will exceed the foreseeable expenses of the LLC on a
      sustained basis (taking into account business conditions at the time and
      including both a reasonable allowance for either loss of business or a change
      in
      margins in the business), the Manager Member shall discuss in good faith with
      the Management Committee whether the Manager Member concurs in that view, and
      if
      the Manager Member after such discussion concurs in that view in its sole
      discretion, the Manager Member will further discuss with the Management
      Committee whether to capitalize a portion of such excess cash flow, the amount
      of any such excess that it is potentially appropriate to capitalize, and who
      the
      recipients of such capitalized excess cash flow should be from the management
      group.

     

    Section
      3.13. Miscellaneous.
      Each
      Member and each Employee Stockholder agrees that the enforcement of the
      provisions of Sections 3.8, 3.9 and 3.10 hereof are necessary to ensure the
      protection and continuity of the business, goodwill and confidential business
      information of the LLC (and any Controlled Affiliates thereof) for the benefit
      of each of the Members. Each Member and each Employee Stockholder agrees that,
      due to the proprietary nature of the LLC’s (and any of its Controlled
      Affiliates’) business, the restrictions set forth in Section 3.8 hereof are
      reasonable as to duration and scope. If any provision contained in this Article
      III shall for any reason be held invalid, illegal or unenforceable in any
      respect, such invalidity, illegality or unenforceability shall not affect any
      other provision of this Article III. It is the intention of the parties hereto
      that if any of the restrictions or covenants contained herein is held to cover
      a
      geographic area or to be for a length of time that is not permitted by
      applicable law, or is any way construed to be too broad or to any extent
      invalid, such provision shall not be construed to be null, void and of no
      effect, but to the extent such provision would then be valid or enforceable
      under applicable law, such provision shall be construed and interpreted or
      reformed to provide for a restriction or covenant having the maximum enforceable
      geographic area, time period and other provisions as shall be valid and
      enforceable under applicable law. Each Member and Employee Stockholder
      acknowledges that the obligations and rights under Sections 3.8, 3.9 and 3.10
      and this Section 3.13 shall survive the termination of the employment of an
      Employee Stockholder with the LLC (and with any applicable Controlled Affiliates
      thereof) and/or the withdrawal or removal of a Member from the LLC, regardless
      of the manner of such termination, withdrawal or removal, in accordance with
      the
      provisions hereof. Moreover, each Member agrees that the remedies provided
      herein are reasonably related to the anticipated loss that the LLC (and any
      Controlled Affiliates thereof) and the Members (including, without limitation,
      the Manager Member, which would be purchasing LLC Interests from a Non-Manager
      Member) would suffer upon a breach of such provisions. Except as agreed to
      by
      the Manager Member in advance in a writing making specific reference to this
      Article III, no Employee Stockholder or Non-Manager Member shall enter into
      any
      agreement or arrangement which is inconsistent with the terms and provisions
      hereof.

     

    
      
        
        

      

      
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    ARTICLE
      IV

     

    CAPITAL
      CONTRIBUTIONS;

    CAPITAL
      ACCOUNTS AND ALLOCATIONS; DISTRIBUTIONS

     

    Section
      4.1. Capital
      Contributions.

     

    (a) As
      of
      immediately prior to the Effective Time, the LLC purchased all of assets,
      properties, rights, powers, privileges and business (and the goodwill associated
      therewith) described in the Purchase Agreement (and the LLC assumed all of
      the
      liabilities described in the Purchase Agreement), and the Members agree that
      the
      acquired property and the rights, subject to the liabilities, had the value
      set
      forth on Schedule
      A
      hereto
      and the Manger Member shall be deemed to have made a Capital Contribution equal
      to said value. Except as may be agreed to in connection with the issuance of
      additional LLC Interests, as specifically set forth herein, or as may be
      required under applicable law, the Members shall not be required to make any
      further capital contributions to the LLC. No Member shall make any capital
      contribution to the LLC without the prior consent of the Manager
      Member.

     

    (b) No
      Member
      shall have the right to withdraw any part of his, her or its (or his, her or
      its
      predecessors in interest) Capital Contribution until the dissolution and winding
      up of the LLC (except as distributions otherwise expressly provided for in
      this
      Article IV may represent returns of capital, in whole or in part). No Member
      shall be entitled to receive any interest on any Capital Contribution made
      by it
      (or its predecessors in interest) to the LLC. No Member shall have any personal
      liability for the repayment of any Capital Contribution of any other
      Member.

     

    Section
      4.2. Capital
      Accounts; Allocations.

     

    (a) There
      shall be established for each Member a Capital Account (a “Capital
      Account”)
      which,
      in the case of each Member, shall initially be equal to the Capital Contribution
      of such Member as set forth on Schedule
      A
      hereto.

     

    (b) The
      Capital Account of each Member shall be adjusted in the following manner. Each
      Capital Account shall be increased by such Member’s allocable share of income
      and gain, if any, of the LLC (as well as the Capital Contributions made by
      a
      Member after the Effective Time, including, without limitation, any Capital
      Contributions deemed to have been made to the LLC by the Manager Member pursuant
      to the operation of clause (ii) of the last paragraph of Section 3.5(b) hereof)
      and shall be decreased by such Member’s allocable share of deductions and
      losses, if any, of the LLC and by the amount of all distributions made to such
      Member. The amount of any distribution of assets other than cash shall be deemed
      to be the Fair Market Value of such assets (net of any liabilities encumbering
      such property that the distributee Member is considered to assume or take
      subject to). Capital Accounts shall also be adjusted upon the issuance of
      additional LLC Interests as set forth in Section 5.5(c) and upon the transfer
      of
      LLC Interests as set forth in Section 5.1. To the extent not otherwise provided
      for in this Agreement, the Capital Accounts of the Members shall be adjusted
      and
      maintained in accordance with the rules of Treasury Regulations Section
      1.704-1(b)(2)(iv), as the same may be amended or revised. Any references in
      any
      section of this Agreement to the Capital Account of a Member shall be deemed
      to
      refer to such Capital Account as the same may be credited or debited from time
      to time as set forth above.

     

    
      
        
        

      

      
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    (c) Subject
      to Sections 4.2(e), 4.2(g) and 4.5 hereof, all items of LLC income and gain
      shall be allocated among the Members’ Capital Accounts at the end of every
      calendar quarter as follows:

     

    (i) first,
      items of income and gain (if any) shall be allocated to the Manager Member
      in an
      amount equal to the product of (A) the Owners’ Allocation for such calendar
      quarter, multiplied by (B) a fraction (I) the numerator of which is the number
      of LLC Units held by the Manager Member as of the first day of such calendar
      quarter and (II) the denominator of which is the number of LLC Units outstanding
      as of the first day of such calendar quarter;

     

    (ii) second,
      items of income and gain (if any) shall be allocated to the Manager Member
      until
      the Manager Member has been allocated cumulative income and gain under this
      Section 4.2(c)(ii) equal to the cumulative amount of losses and deductions
      allocated to the Manager Member under Sections 4.2(d)(ii) and 4.2(d)(iii) in
      prior periods (if any);

     

    (iii) third,
      items of income and gain (if any) shall be allocated to each Non-Manager Member
      in an amount equal to the product of (I) the Owners’ Allocation for such
      calendar quarter, multiplied by (II) a fraction (x) the numerator of which
      is
      the number of LLC Units held by such Non-Manager Member as of the first day
      of
      such calendar quarter and (y) the denominator of which is the number of LLC
      Units outstanding as of the first day of such calendar quarter, until the
      aggregate amount of such items of income and gain allocated to the Members
      (including both the Manager Member and the Non-Manager Members) pursuant to
      Sections 4.2(c)(i), 4.2(c)(ii) and this 4.2(c)(iii) for such calendar quarter
      equals the total amount of the Owners’ Allocation for such calendar quarter;
      and

     

    (iv) finally,
      all remaining items of LLC income and gain shall be allocated among the
      Non-Manager Members in accordance with (and in proportion to) each Non-Manager
      Member’s respective number of LLC Units on the first day of such calendar
      quarter.

     

    
      
        
        

      

      
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    (d) Subject
      to Sections 4.2(f), 4.2(g) and 4.5 hereof, all items of LLC loss and deduction
      shall be allocated among the Members’ Capital Accounts at the end of every
      calendar quarter as follows:

     

    (i) first,
      all items of LLC loss and deduction for such calendar quarter shall be
      allocated: (A) first, among the Non-Manager Members in accordance with (and
      in
      proportion to) each Non-Manager Member’s respective number of LLC Units on the
      first day of such calendar quarter, until the aggregate amount of such items
      of
      loss and deduction allocated to the Non-Manager Members pursuant to this clause
      (A) equals the aggregate amount of allocations of income and gain to the
      Non-Manager Members pursuant to Section 4.2(c)(iv) for such calendar quarter
      and
      (B) second, among the Non-Manager Members in accordance with (and in proportion
      to) their respective numbers of LLC Units on the first day of such calendar
      quarter, until the Capital Accounts of all of the Non-Manager Members shall
      have
      been reduced to zero (0) (after giving effect to the allocations of income
      and
      gain for such calendar quarter under Section 4.2(c)); provided that no
      additional loss or deduction shall be allocated to any Non-Manager’s Capital
      Account pursuant to this Section 4.2(d)(i) once such Capital Account has been
      reduced to zero (0) (but items of loss and deduction shall continue to be
      allocated to the Capital Accounts of the other Non-Manager Members pursuant
      to
      this Section 4.2(d)(i) until all such Non-Manager Members’ Capital Accounts have
      been reduced to zero (0));

     

    (ii) second,
      any remaining items of LLC loss and deduction for such calendar quarter not
      allocated to the Non-Manager Members under Section 4.2(d)(i) shall be allocated
      to the Manager Member until its Capital Account shall have been reduced to
      zero
      (0); and

     

    (iii) finally,
      any remaining items of LLC loss and deduction for such calendar quarter not
      allocated to the Members under Sections 4.2(d)(i) and 4.2(d)(ii) shall be
      allocated among all Members in accordance with (and in proportion to) each
      Member’s respective number of LLC Units as of the first day of such calendar
      quarter.

     

    (e) If
      the
      LLC has a net gain from the sale, exchange or other disposition of all, or
      a
      substantial portion (as determined by the Manager Member) of, the assets of
      the
      LLC and its Controlled Affiliates, then that net gain shall be allocated among
      the Members as follows:

     

    (i) first,
      net gain shall be allocated to the Manager Member until the Manager Member
      has
      been allocated cumulative gain which, together with income and gain previously
      allocated to the Manager Member under Section 4.2(c)(ii) hereof and this Section
      4.2(e)(i), equals the cumulative amount of losses and deductions allocated
      to
      the Manager Member under Sections 4.2(d)(ii) and 4.2(d)(iii) in prior
      periods;

     

    (ii) second,
      an aggregate amount of net gain equal to the positive difference between (A)
      the
      Liquidation Preference and (B) the aggregate positive Capital Account balances
      of those Members holding Series A LLC Units as of the date of the transaction
      (or an allocable portion thereof, in the case of any Member holding both Series
      A LLC Units and Series B LLC Units as of the date of such transaction) shall
      be
      allocated among those Members holding Series A LLC Units as of the date of
      the
      transaction in accordance with (and in proportion to) their respective number
      of
      Series A LLC Units as of the date of the transaction; provided,
      however,
      that,
      in the event the ratio of (I) the aggregate Capital Account balances of any
      Non-Manager Members holding Series A LLC Units, on the one hand, to (II) the
      Capital Account balance of the Manager Member, on the other hand, is less than
      the ratio of (X) the Applicable Aggregate Non-Manager Member Allocation
      Percentage, on the one hand, to (Y) the Applicable Manager Member Allocation
      Percentage, on the other hand, then in such event, the aggregate net gain
      described in this clause (ii) shall first be allocated to such Non-Manager
      Members holding Series A LLC Units (in accordance with, and in proportion to,
      their respective number of Series A LLC Units) until such ratios are equal
      (and
      thereafter shall be allocated in accordance with this clause (ii) without
      further application of this proviso);

     

    
      
        
        

      

      
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    (iii) third,
      net gain shall be allocated among the Non-Manager Members in accordance with
      (and in proportion to) their respective number of LLC Units as of the date
      of
      the transaction, until the ratio of (I) the aggregate Capital Account balances
      of the Non-Manager Members, on the one hand, to (II) the Capital Account balance
      of the Manager Member, on the other hand, is equal to the ratio of (X) the
      Applicable Aggregate Non-Manager Member Allocation Percentage, on the one hand,
      to (Y) the Applicable Manager Member Allocation Percentage, on the other hand;
      and

     

    (iv) thereafter,
      net gain shall be allocated among the Members in accordance with (and in
      proportion to) their respective number of LLC Units as of the date of the
      transaction.

     

    (f) If
      the
      LLC has a net loss from any sale, exchange or other disposition of all, or
      a
      substantial portion (as determined by the Manager Member) of, the assets of
      the
      LLC and its Controlled Affiliates, then that net loss shall be allocated among
      the Members in accordance with (and in proportion to) their respective number
      of
      LLC Units as of the date of the transaction; provided that no additional losses
      shall be allocated to a Member once its Capital Account has been reduced to
      zero
      (0) (but losses shall continue to be allocated to the Capital Accounts of the
      other Members pursuant to this Section 4.2(f)) until all Members’ Capital
      Accounts have been reduced to zero (0), and thereafter any remaining amount
      of
      such losses shall be allocated among all Members pursuant to this Section 4.2(f)
      in accordance with (and in proportion to) each Member’s respective number of LLC
      Units as of the first day of such calendar quarter.

     

    (g) In
      the
      event that during any calendar quarter (or any fiscal year of the LLC) there
      is
      any change of Members or LLC Units held by the Members (whether as a result
      of
      the admission of an Additional Non-Manager Member, the redemption by the LLC
      of
      all (or any portion) of any Member’s LLC Units, an issuance or transfer of any
      LLC Units or otherwise), the following shall apply (and shall be implemented
      as
      determined by the Manager Member): (i) such change shall be deemed to have
      occurred as of the end of the last day of the calendar quarter in which such
      change occurred, (ii) the books of account of the LLC shall be closed effective
      as of the close of business on the effective date of any such change as set
      forth in clause (i) and such fiscal year shall thereupon be divided into two
      or
      more portions, (iii) each item of income, gain, loss and deduction shall be
      determined (on the closing of the books basis) for the portion of such fiscal
      year ending with the date on which the books of account of the LLC are so
      closed, and (iv) each such item for such portion of such fiscal year shall
      be
      allocated (pursuant to the provisions of Sections 4.2(c) and (d) hereof) to
      those Persons who were Members during such portion of such fiscal year in
      accordance with their respective LLC Units during such period.

     

    
      
        
        

      

      
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    Section
      4.3. Distributions.

     

    (a) Subject
      to Section 4.4 hereof, from and after the Effective Time, within thirty (30)
      days after the end of each calendar quarter, the LLC shall, to the extent cash
      is available therefor at the LLC or any of its Controlled Affiliates (and the
      LLC shall cause its Controlled Affiliates to distribute any such available
      cash
      to the LLC, to the extent required for distributions pursuant hereto and not
      in
      violation of any laws applicable to such Controlled Affiliates), and based
      on
      the unaudited financial statements for such calendar quarter prepared in
      accordance with Section 8.3 hereof (after approval of such financial statements
      by the Manager Member), (i) first, distribute to the Manager Member an amount
      equal to the allocations of income and gain to the Manager Member pursuant
      to
      Sections 4.2(c)(i) and 4.2(c)(ii) for such calendar quarter (less the Manager
      Member’s pro rata portion of any Owners’ Allocation Expenditures made in such
      calendar quarter) plus any previous calendar quarter to the extent not then
      distributed, and (ii) second, distribute to each Non-Manager Member (and each
      Person who was a Non-Manager Member at any time during such calendar quarter)
      an
      amount equal to the allocation of income and gain to such Non-Manager Member
      pursuant to Sections 4.2(c)(iii) and 4.2(c)(iv) for such calendar quarter (less
      an amount equal to each such Person’s pro rata portion of any Owners’ Allocation
      Expenditures made in such calendar quarter) plus any previous calendar quarter
      to the extent not then distributed, less an amount equal to the allocation
      of
      losses and deductions to such Non-Manager Member pursuant to Section 4.2(d)(i)
      for such calendar quarter. Within sixty (60) days after the end of each fiscal
      year of the LLC, the LLC shall, based on the audited financial statements
      prepared in accordance with Section 8.3 hereof, make a distribution of the
      remaining amounts (if any) for such completed fiscal year which were allocated
      pursuant to Sections 4.2(c)(i), 4.2(c)(ii), 4.2(c)(iii) and 4.2(c)(iv) (but
      not
      previously distributed) and any previous fiscal year to the extent not then
      distributed (less each applicable recipient’s pro rata portion of any Owners’
Allocation expenditures made in such fiscal year), such distribution to be
      made
      in accordance with clauses (i) and (ii) of the prior sentence, whenever and
      to
      the extent cash is available therefor at the LLC or any of its Controlled
      Affiliates (and the LLC shall cause its Controlled Affiliates to distribute
      any
      such available cash to the LLC, to the extent required for such distributions
      and not in violation of any laws applicable to such Controlled Affiliates).
      Notwithstanding the foregoing provisions of this Section 4.3(a), the Manager
      Member may, with the approval of the Management Committee, from time to time
      reserve and not distribute portions of the Owners’ Allocation for LLC purposes
      (including without limitation to increase the net worth of the LLC, to make
      capital expenditures (such as the creation of or investment in a Controlled
      Affiliate) or to create a reserve for anticipated purchases of LLC Interests);
      provided,
      however,
      that
      any such reservation shall be made from all Members pro rata in proportion
      to
      LLC Units and that such funds shall be maintained in the Receipts Account (as
      defined below) pending expenditure thereof; and provided,
      further,
      that to
      the extent such reserve is not used for LLC purposes as contemplated by the
      Manager Member and the Management Committee, such reserve shall be distributed
      in accordance with this Section 4.3(a). To the extent that cash is for any
      reason not available to make a distribution to the Manager Member pursuant
      to
      this Section 4.3(a) of the time such distribution otherwise would have been
      required by this Section 4.3(a) to be made to the Manager Member if cash were
      available therefor (or in the event that the LLC for any other reason does
      not
      make a required distribution to the Manager Member within thirty (30) days
      following a calendar quarter end or sixty (60) days following a fiscal year
      end,
      as applicable), then such distribution shall be made to the Manager Member
      by
      the LLC as promptly as possible following the date it was otherwise required
      to
      be made under this Section 4.3(a), together with interest thereon calculated
      from the thirtieth (30th)
      day
      following such calendar quarter end or the sixtieth (60th)
      day
      following such fiscal year end (as applicable) at a rate per annum equal to
      the
      prime lending rate then in effect as reported by JP Morgan Chase, which interest
      shall be borne by the LLC as an operating expense payable out of the Operating
      Allocation.

     

    
      
        
        

      

      
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    (b) To
      give
      effect to the foregoing, the LLC shall have two (2) bank accounts. The first
      account (the “Receipts
      Account”)
      shall
      have as its authorized signatories such representatives of the LLC and the
      Manager Member as the Management Committee and the Manager Member shall deem
      appropriate or desirable. All of the LLC’s receipts shall be paid into the
      Receipts Account; provided,
      however,
      that on
      a weekly basis, the LLC shall transfer twenty-eight percent (28%) of receipts
      paid into this account to a second account (the “Owners’
      Allocation Account”)
      which
      shall have as its authorized signatories such representatives of the LLC and
      the
      Manager Member as the Management Committee and the Manager Member shall deem
      appropriate or desirable. The Manager Member shall use the Owners’ Allocation
      Account to make all distributions of Owners’ Allocation pursuant to Section
      4.3(a) above and to fund all Owners’ Allocation Expenditures. The Manager Member
      shall retain in the Owners’ Allocation Account any amount which gives rise to
      the right to make distributions pursuant to Section 4.3(c) hereof (including,
      without limitation, the proceeds of sales of assets, insurance proceeds and
      the
      proceeds of issuance of additional LLC Interests) and shall distribute such
      amounts in accordance with the provisions of Section 4.3(c). The Receipts
      Account shall be used by the Management Committee to make all operating expense
      payments (including payments of salary and bonus) out of the Operating
      Allocation. Within thirty (30) days after the end of each calendar quarter,
      based on the unaudited financial statements for such calendar quarter prepared
      in accordance with Section 8.3 hereof, and within ninety-five (95) days after
      the end of each fiscal year of the LLC, based on the audited financial
      statements prepared in accordance with Section 8.3 hereof, the Manager Member
      and the LLC shall cause such transfers between the Receipts Account and the
      Owners’ Allocation Account to reflect the appropriate allocations between
      Operating Allocation and Owners’ Allocation and other amounts excluded from the
      definition of Revenue from Operations hereunder.

     

    (c) Except
      to
      the extent distributions are provided for in Section 4.3(a) hereof, any other
      amounts or proceeds available for distribution to the Members (if any) (after
      taking into account the use or reservation of Operating Allocation pursuant
      to
      Section 3.5(b)) shall be distributed to the Members at such times as may be
      determined by the Manager Member, provided that any such distribution shall
      be
      made among the Members (i) first, in accordance with (and in proportion to)
      the
      positive balances (if any) in the respective Capital Accounts of the Members
      (as
      determined immediately prior to such distribution) until all such positive
      Capital Account balances have been reduced to zero, and (ii) thereafter, among
      all Members in accordance with (and in proportion to) their respective numbers
      of LLC Units at the time of such distribution (provided,
      however,
      that if
      a Member has made a Capital Contribution after the Effective Time, the Manager
      Member may cause the LLC first to make a priority return of such Capital
      Contribution and provided further
      that the
      Manager Member may cause the LLC to first make a priority distribution to the
      Manager Member of an amount equal to the working capital of the business
      acquired pursuant to the Purchase Agreement on the date of said
      acquisition).

     

    
      
        
        

      

      
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    (d) Notwithstanding
      any other provision of this Agreement, the LLC shall not make a distribution
      to
      any Member on account of its LLC Interest if such distribution would violate
      the
      Act or other applicable law.

     

    Section
      4.4. Distributions
      Upon Dissolution; Establishment of a Reserve Upon
      Dissolution.

     

    Upon
      the
      dissolution of the LLC, the assets of the LLC shall first go toward the payment
      (or the making of reasonable provision for the payment) of all liabilities
      of
      the LLC owing to creditors, including without limitation the establishment
      of
      such reserves as the Manager Member (or if there is none, the Liquidating
      Trustee) deems necessary or advisable to provide for any liabilities or other
      obligations of the LLC. The Manager Member (or if there is none, the Liquidating
      Trustee) may cause the LLC to pay any such reserves over to a bank (or other
      third party) to be held in escrow for the purpose of paying any such liabilities
      or other obligations. At the expiration of such period(s) as the Manager Member
      (or Liquidating Trustee, if there is no Manager Member) may deem necessary
      or
      advisable, any remaining amount of such reserves (if any), and any other assets
      available for distribution, or a portion thereof (as determined by the Manager
      Member or, if there is none, the Liquidating Trustee), shall be distributed
      to
      the Members as follows:

     

    (i) First,
      among the Members holding Series A LLC Units as of the date of dissolution
      in
      accordance with the positive balances (if any) in their respective Capital
      Accounts (as determined immediately prior to such distribution) until all such
      positive Capital Account balances have been reduced to zero;

     

    (ii) second,
      among the Members holding Series A LLC Units as of the date of dissolution,
      in
      an amount equal to the Liquidation Preference minus the aggregate net gain
      (if
      any) allocated to such Members pursuant to Section 4.2(e)(ii) hereof in
      connection with such dissolution, ratably in accordance with (and in proportion
      to) the respective number of Series A LLC Units held by such Members as of
      the
      date of dissolution;

     

    (iii) third,
      among the Members holding Series B LLC Units as of the date of dissolution
      in
      accordance with the positive balances (if any) in their respective Capital
      Accounts (as determined immediately prior to such distributions) until all
      such
      positive Capital Account balances have been reduced to zero; and

     

    
      
        
        

      

      
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    (iv) thereafter,
      among the Members in accordance with (and in proportion to) their respective
      number of LLC Units as of the date of dissolution.

     

    If
      any
      assets of the LLC are to be distributed in kind in connection with such
      liquidation, such assets shall be distributed on the basis of their Fair Market
      Value (net of any liabilities encumbering such assets) and, to the greatest
      extent practicable under the circumstances (as determined by the Manager Member
      or, if there is none, the Liquidating Trustee), shall be distributed pro rata
      in
      accordance with the total amounts to be distributed to each Member. In the
      event
      that a distribution referenced in the preceding sentence is not distributed
      pro
      rata, the Members understand and acknowledge that a Member may be compelled
      to
      accept a distribution of any asset in kind from the LLC despite the fact that
      the percentage of the asset distributed to such Member exceeds the percentage
      of
      that asset which is equal to the percentage in which such Member shares in
      distributions from the LLC. Immediately prior to the effectiveness of any such
      distribution-in-kind, each item of gain and/or loss that would have been
      recognized by the LLC had the property being distributed instead been sold
      by
      the LLC for its Fair Market Value shall be determined and allocated to those
      Persons who were Members immediately prior to the effectiveness of such
      distribution in accordance with Section 4.2(c) and 4.2(d).

     

    Section
      4.5. Proceeds
      from Capital Contributions and the Sale of Securities; Insurance Proceeds;
      Certain Special Allocations.

     

    (a) Minimum
      Gain Chargeback.
      Notwithstanding any other provision in this Article IV, if there is a net
      decrease in Partnership Minimum Gain or Partner Nonrecourse Debt Minimum Gain
      (determined in accordance with the principles of Treasury Regulations Sections
      1.704-2(d) and 1.704-2(i)) during any taxable year, the Members shall be
      specially allocated items of LLC income and gain for such year (and, if
      necessary, subsequent years) in an amount equal to their respective shares
      of
      such net decrease during such year, determined pursuant to Treasury Regulations
      Sections 1.7042(g)(2) and 1.704-2(i)(5). The items to be so allocated shall
      be
      determined in accordance with Treasury Regulations Section 1.704-2(f). This
      Section 4.5(a) is intended to comply with the minimum gain chargeback
      requirements in such Treasury Regulations Sections and shall be interpreted
      consistently therewith; including that no chargeback shall be required to the
      extent of the exceptions provided in Treasury Regulations Sections 1.7042(f)
      and
      1.704-2(i)(4).

     

    (b) Qualified
      Income Offset.
      In the
      event any Member unexpectedly receives any adjustments, allocations, or
      distributions described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4),
      (5) or (6), items of LLC income and gain shall be specially allocated to such
      Member in an amount and manner sufficient to eliminate the deficit balance
      in
      his Capital Account created by such adjustments, allocations or distributions
      as
      promptly as possible.

     

    (c) Gross
      Income Allocation.
      In the
      event any Member has a deficit Capital Account at the end of any fiscal year
      which is in excess of the sum of (i) the amount such Member is obligated to
      restore, if any, pursuant to any provision of this Agreement, and (ii) the
      amount such Member is deemed to be obligated to restore pursuant to the
      penultimate sentences of Treasury Regulations Section 1.704-2(g)(1) and
      1.704-2(i)(5), each such Member shall be specially allocated items of LLC income
      and gain in the amount of such excess as quickly as possible, provided that
      an
      allocation pursuant to this Section 4.5(c) shall be made only if and to the
      extent that a Member would have a deficit Capital Account in excess of such
      sum
      after all other allocations provided for in this Article IV have been
      tentatively made as if Section 4.5(b) and this Section 4.5(c) were not in this
      Agreement.

     

    
      
        
        

      

      
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    (d) Nonrecourse
      Deductions.
      Nonrecourse Deductions shall be allocated among the Members in accordance with
      their respective numbers of LLC Units.

     

    (e) Partner
      Nonrecourse Deductions.
      Partner
      Nonrecourse Deductions for any taxable period shall be allocated to the Member
      who bears the economic risk of loss with respect to the liability to which
      such
      Partner Nonrecourse Deductions are attributable in accordance with Treasury
      Regulations Section 1.704-2(j).

     

    (f) Curative
      Allocations.
      The
      allocations set forth in Sections 4.5(a), (b), (c), (d), and (e) hereof (the
      “Regulatory
      Allocations”)
      are
      intended to comply with certain requirements of the Treasury Regulations. It
      is
      the intent of the Members that, to the extent possible, all Regulatory
      Allocations shall be offset either with other Regulatory Allocations or with
      special allocations of other items of LLC income, gain, loss or deduction
      pursuant to this Section 4.5(f), and to the extent Regulatory Allocations are
      necessary, it is the intent of the Members that they be made in as consistent
      a
      manner with the provisions of Section 4.2 hereof as practicable, subject to
      compliance with the Treasury Regulations. Therefore, notwithstanding any other
      provision of this Article IV (other than the Regulatory Allocations), the
      Manager Member shall make such offsetting special allocations of LLC income,
      gain, loss or deduction in whatever manner it determines appropriate so that,
      after such offsetting allocations are made, each Member’s Capital Account is, to
      the extent possible, equal to the Capital Account balance such Member would
      have
      had if the Regulatory Allocations were not a part of this Agreement and all
      LLC
      items were allocated pursuant to Section 4.2. In exercising its discretion
      under
      this Section 4.5(f), the Manager Member shall take into account future
      Regulatory Allocations under Section 4.5(a) that, although not yet made, are
      likely to offset other Regulatory Allocations previously made under Sections
      4.5(d) and (e).

     

    (g) Proceeds
      of Capital Contribution and Securities Issuances.
      Capital
      Contributions made by any Member after the Effective Time, and any proceeds
      from
      the issuance of securities by the LLC, may in the sole discretion of the Manager
      Member be used for the benefit of the LLC (including without limitation
      provision for the purchase or redemption of any LLC Interests to be purchased
      or
      redeemed by the LLC), or may be distributed by the LLC to the Members in the
      sole discretion of the Manager Member, in which case any such proceeds shall
      be
      allocated and distributed among the Members in accordance with their respective
      LLC Units immediately prior to the date of such contribution or issuance of
      securities (it being understood that in the event the proceeds are a promissory
      note or other receivable, any such distribution shall only occur (if at all)
      upon receipt by the LLC of cash in respect thereof).

     

    (h) Proceeds
      of Key-Man Life or Disability Insurance.
      In the
      event of the death or Permanent Incapacity of an Employee Stockholder covered
      by
      key-man life or disability insurance, the premiums on which have been paid
      by
      the LLC (or any Controlled Affiliate thereof), the proceeds of any such policy
      (net of any expected tax liability to be incurred by the LLC, any Controlled
      Affiliate thereof and/or any Member as a result of the receipt by the LLC (or
      a
      Controlled Affiliate thereof) of such proceeds) may, in the sole discretion
      of
      the Manager Member, (i) be used for the benefit of the LLC (e.g., the making
      of
      capital expenditures), or (ii) be distributed by the LLC to the Members in
      which
      case such proceeds shall be allocated and distributed among the Members in
      accordance with their respective LLC Units immediately following the Purchase
      of
      LLC Interests from such Employee Stockholder (or its related Non-Manager Member)
      under Section 3.10 hereof. Notwithstanding any other provision of this Agreement
      to the contrary, in the event the LLC (or any Controlled Affiliate thereof)
      receives proceeds from any insurance policy owned or otherwise maintained by
      or
      benefiting the LLC (or a Controlled Affiliate thereof) and the receipt of such
      proceeds is for any reason expected by the Manager Member to result in a tax
      liability to one or more of the Members, the Manager Member may, in its sole
      discretion, distribute that portion of such insurance proceeds to such Member(s)
      as is necessary to partially or fully (in the Manager Member’s sole discretion)
      reimburse such Member(s) for the actual tax liabilities incurred by such
      Member(s) as a result of the LLC’s (or its Controlled Affiliate’s) receipt of
      such proceeds and the receipt by such Member of a distribution pursuant to
      this
      sentence; provided that, in the event the Manager Member determines to make
      any
      distributions of proceeds pursuant to this sentence, each Member incurring
      tax
      liabilities as a-result of the LLC’s (or its Controlled Affiliate’s) receipt of
      such insurance proceeds shall be reimbursed in the same proportion (as compared
      to the total tax liability it incurs) as each other Member receiving
      reimbursement pursuant to this sentence; and provided, further, that any Member
      receiving reimbursement pursuant to this sentence shall promptly reimburse
      to
      the LLC any portion of such reimbursement that exceeds the actual tax
      liabilities resulting to such Member as a result of the LLC’s (or its Controlled
      Affiliate’s) receipt of such insurance proceeds and the receipt by such Member
      of a distribution pursuant to this sentence.

     

    
      
        
        

      

      
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    (i) Depreciation
      and Amortization.
      All
      items of depreciation or amortization (as calculated for book purposes in
      accordance with GAAP, consistently applied) on account of the intangible items
      of property of the LLC at the Effective Time shall be specially allocated to
      the
      Manager Member, and all items of depreciation or amortization (as calculated
      for
      book purposes in accordance with GAAP, consistently applied) on account of
      the
      tangible items of property of the LLC at the Effective Time shall be specially
      allocated to the Non-Manager Members as set forth in Section 4.2(d)(i). All
      items of depreciation or amortization (as calculated for book purposes in
      accordance with GAAP, consistently applied) on account of property (whether
      tangible or intangible) purchased out of the Operating Allocation shall be
      allocated to the Non-Manager Members as set forth in Section 4.2(d)(i), and
      all
      items of depreciation or amortization (as calculated for book purposes in
      accordance with GAAP, consistently applied) on account of property (whether
      tangible or intangible) purchased out of the Owners’ Allocation shall be
      allocated among the Members in accordance with their respective numbers of
      LLC
      Units on the date the property was purchased.

     

    Section
      4.6. Tax
      Allocations.
      For
      income tax purposes only, each item of income, gain, loss and deduction of
      the
      LLC shall be allocated among the Members in the same manner as the corresponding
      items of income, gain, loss and deduction and specially allocated items are
      allocated for Capital Account purposes, provided that in the case of any LLC
      asset the Carrying Value of which differs from its adjusted tax basis for
      federal income tax purposes, income, gain, loss and deduction with respect
      to
      such asset shall be allocated solely for income tax purposes in accordance
      with
      the principles of Sections 704(b) and (c) of the Code (in any manner determined
      by the Manager Member in its sole discretion) so as to take account of the
      difference between the Carrying Value and the adjusted basis of such
      asset.

     

    
      
        
        

      

      
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    Section
      4.7. Other
      Allocation Provisions.
      The
      foregoing provisions and the other provisions of this Agreement relating to
      the
      maintenance of Capital Accounts are intended to comply with Treasury Regulations
      Section 1.704-1(b) and shall be interpreted and applied in a manner consistent
      with such regulations. Sections 4.2(c) to 4.2(f), and Sections 4.5 and 4.6
      may
      be amended at any time by the Manager Member if necessary, in the opinion of
      tax
      counsel to the LLC or the Manager Member, to comply with such regulations,
      so
      long as any such amendment (a) does not materially change the relative economic
      interests of the Members and (b) to the extent practicable in the Manager
      Member’s reasonable judgment, applies consistently to all Non-Manager
      Members.

     

    Section
      4.8. Withholding.
      The
      Manager Member is authorized to cause the LLC to withhold from distributions
      to
      a Member, or with respect to allocations to a Member, and to pay over to a
      federal, state or local government, any amounts required to be withheld pursuant
      to the Code or any other provisions of federal, state or local law. Any amounts
      so withheld shall be treated as distributed to such Member pursuant to this
      Article IV for all purposes of this Agreement and, if withheld from amounts
      allocated but not distributed, shall be offset against the next amounts
      otherwise distributable to such Member.

     

    ARTICLE
      V

     

    TRANSFER
      OF LLC INTERESTS BY NON-MANAGER

    MEMBERS;
      RESIGNATION, REDEMPTION AND WITHDRAWAL BY

    NON-MANAGER
      MEMBERS;

    ADMISSION
      OF ADDITIONAL NON-MANAGER MEMBERS

     

    Section
      5.1. Transferability
      of Interests.
      No
      interest of a Non-Manager Member (or transferee thereof) in the LLC (including
      without limitation LLC Interests) may, directly or indirectly, be sold,
      assigned, transferred, gifted or exchanged, nor may any Non-Manager Member
      (or
      transferee thereof) offer to do any of the foregoing (each, a “Transfer”),
      nor
      may any direct or indirect interest in any Non-Manager Member be, directly
      or
      indirectly, Transferred by any holder thereof, nor may any stockholder or other
      holder of an ownership interest in any Non-Manager Member which is not a natural
      person offer to do any of the foregoing, and no Transfer by a Non-Manager Member
      (or transferee thereof) or holder of an ownership interest in a Non-Manager
      Member shall be binding upon the LLC or any Non-Manager Member, in each case
      unless (i) such Transfer is expressly permitted by this Article V and (ii)
      the
      Manager Member receives an executed copy of the documents effecting such
      Transfer and such documents are in compliance with the requirements of this
      Article V and otherwise in form and substance reasonably satisfactory to the
      Manager Member. The transferee of an interest in the LLC may become a substitute
      Non-Manager Member, and a Non-Manager Member which is not a natural person
      may
      remain a Member of the LLC following the Transfer of an ownership interest
      in
      such Non-Manager Member, in each case only upon the terms and conditions set
      forth in Section 5.2. If a transferee of an interest of a Non-Manager Member
      in
      the LLC does not become (and until any such transferee becomes) a substitute
      Non-Manager Member, or if a Non-Manager Member in which an ownership interest
      has been Transferred does not remain a Member of the LLC following such
      Transfer, in either case in accordance with the provisions of Section 5.2,
      such
      Person shall not be entitled to exercise or receive any of the rights, powers
      or
      benefits of a Non-Manager Member other than the right to receive distributions
      which the assigning Non-Manager Member has Transferred to such Person in
      compliance with this Section 5.1. Each Employee Stockholder and Non-Manager
      Member agrees to comply, and to cause its owners and transferees to comply
      (as
      applicable), with the provisions of this Article V.

     

    
      
        
        

      

      
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    A
      Non-Manager Member’s LLC Interests (or, in the case of a Non-Manager Member
      which is not a natural person, direct (but in no event indirect) ownership
      interests in such Non-Manager Member) may be Transferred solely:

     

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

     

    (b) (i)
      upon
      the death of such Non-Manager Member (in the case of a Non-Manager Member who
      is
      a natural person), with respect to LLC Interests held by such Non-Manager
      Member, (ii) upon the death of a direct holder of ownership interests in such
      Non-Manager-Member (in the case of a Non-Manager Member which is not a natural
      person), with respect to the direct ownership interests in such Non-Manager
      Member 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 Manager Member, but subject in all
      cases to the provisions of Section 3.10 hereof, which shall continue to be
      binding upon the LLC Interests of such Non-Manager Member (and the holders
      thereof) notwithstanding such death) or (iii) in connection with the appointment
      of a legal guardian or conservator for such Non-Manager Member 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 LLC Interests or direct ownership interests (as
      applicable) and provided that such Non-Manager Member or holder of direct
      ownership interests (as applicable) remains the beneficial owner of such
      interests;

     

    (c) (i)
      an
      Employee Stockholder who is a Non-Manager Member may Transfer his or her LLC
      Interests, or (ii) direct ownership interests in a Non-Manager Member which
      is
      not a natural person may be Transferred by its related Employee Stockholder,
      in
      either such case to members of such Employee Stockholder’s Immediate Family (or
      trusts for the benefit of such Employee Stockholder or the members of such
      Employee Stockholder’s Immediate Family, provided that any such trust does not
      require or permit distribution of such interests other than to such Employee
      Stockholder, members of such Employee Stockholder’s Immediate Family, or such
      Employee Stockholder’s related original Non-Manager Member that is a party
      hereto) without the consent of the Manager Member;

     

    provided
      that in the case of (b) or (c) above, (i) the transferee first enters into
      an
      agreement with the LLC in form and substance reasonably satisfactory to the
      Manager Member agreeing to be bound by the provisions of this Agreement, and
      (ii) whether or not the transferee enters into such an agreement, such LLC
      Interests and ownership interests in such Non-Manager Member (as applicable)
      shall thereafter remain subject to this Agreement.

     

    
      
        
        

      

      
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    Notwithstanding
      the foregoing, no Non-Manager Member’s interest in the LLC may be Transferred
      (and no ownership interest in a Non-Manager Member which is not a natural person
      may be Transferred) (i) if after giving effect to such Transfer, the total
      number of Members of the LLC would be deemed to exceed one hundred (100) (as
      determined in accordance with Treasury Regulations §  1.7704-1(h)), unless
      such Transfer is a Transfer described in Treasury Regulations § 
1.7704-1(e), or (ii) if such Transfer (A) is required to be registered under
      the
      Securities Act, or (B) is not required to be registered under the Securities
      Act
      by reason of Regulation S thereunder, but would have been required to be
      registered under the Securities Act if the Transfer had been made within the
      United States, or if such Transfer would otherwise violate the securities or
      other laws of any jurisdiction.

     

    For
      all
      purposes of this LLC Agreement, any Transfers of LLC Interests shall be deemed
      to occur as of the end of the last day of the calendar quarter in which any
      such
      Transfer would otherwise have occurred. Upon any Transfer of LLC Interests
      in
      accordance with the provisions hereof, the Manager Member shall make the
      appropriate revisions to Schedule
      A
      hereto.

     

    Each
      time
      LLC Interests (including without limitation additional LLC Units) are
      Transferred or Purchased, the Manager Member may in its sole discretion elect
      to
      revalue the Capital Accounts of all the Members. If the Manager Member so
      elects, then the Capital Accounts of all the Members shall be adjusted as
      follows: (i) The Manager Member shall determine the proceeds which would be
      realized if the LLC sold all its assets at such time for a price equal to the
      Fair Market Value of such assets, and (ii) the Manager Member shall allocate
      amounts equal to the gain or loss which would have been realized upon such
      a
      sale to the Capital Accounts of all the Members immediately prior to such
      Transfer in accordance with Sections 4.2(e) and 4.2(f) hereof.

     

    No
      interests of a Non-Manager Member in the LLC (including without limitation
      LLC
      Interests) may be pledged, hypothecated, optioned or encumbered, nor may any
      direct or indirect ownership interests in a Non-Manager Member 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 Manager Member
      in
      its sole discretion.

     

    Section
      5.2. Substitute
      Non-Manager Members.
      No
      transferee of interests of a Member in the LLC (including without limitation
      LLC
      Interests) shall become a Member, and no Non-Manager Member in which any direct
      or indirect ownership interests have been Transferred shall remain a Member
      of
      the LLC, in either case except in accordance with this Section 5.2. The Manager
      Member may in its sole discretion admit as a substitute Non-Manager Member
      (with
      respect to all or a portion of the LLC Interests held by a Person), any Person
      that acquires an LLC Interest by Transfer from another Member in accordance
      with
      Section 5.1 hereof, or that acquires an LLC Interest from the Manager Member
      in
      accordance with Section 6.1 hereof, and the Manager Member may in its sole
      discretion permit any Non-Manager Member in which all of the ownership interests
      have been Transferred to remain a Member of the LLC (and such Non-Manager Member
      otherwise automatically shall cease to be a Member of the LLC). The admission
      of
      a transferee as a substitute Non-Manager Member shall, in all events, be
      conditioned upon the execution of an instrument satisfactory in form and
      substance to the Manager Member whereby such transferee becomes a party to
      this
      Agreement as a Non-Manager Member. Upon the admission of a substitute
      Non-Manager Member in accordance with this Section 5.2, the Manager Member
      shall
      make the appropriate revisions to Schedule
      A
      hereto.

     

    
      
        
        

      

      
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    Section
      5.3. Allocation
      of Distributions Between Transferor and Transferee; Successor to Capital
      Accounts.
      Upon
      the Transfer of LLC Interests in accordance with this Article V, distributions
      pursuant to Article IV after the date of such Transfer shall be made to the
      Person owning the LLC Interest at the date of distribution, unless the
      transferor and transferee otherwise agree and so direct the LLC and the Manager
      Member in a written statement signed by both the transferor and transferee.
      In
      connection with a Transfer by a Member of LLC Interests, the transferee shall
      succeed to a pro rata (based on the percentage of such Person’s LLC Interests
      Transferred) portion of the transferor’s Capital Account, unless the transferor
      and transferee otherwise agree and so direct the LLC and the Manager Member
      in a
      written statement signed by both the transferor and transferee and consented
      to
      by the Manager Member.

     

    Section
      5.4. Resignation,
      Redemptions and Withdrawals.
      No
      Non-Manager Member shall have the right to resign as a Member, to cause the
      redemption of its interest in the LLC in whole or in part, or otherwise to
      withdraw as a Member of the LLC, except (a) with the consent of the Manager
      Member in its sole discretion or (b) as is expressly provided for in Section
      3.10 hereof in connection with a Purchase. Upon any resignation, redemption
      or
      withdrawal as a Member, the Non-Manager Member shall only be entitled to the
      consideration (if any) provided for by Section 3.10 hereof upon the purchase
      of
      its LLC Interest, if and to the extent that one of such Sections provides for
      such a purchase (and shall in no event be entitled to a withdrawal, redemption
      or distribution of its Capital Account in whole or in part). Upon the
      resignation, redemption or withdrawal, in whole or in part, by a Non-Manager
      Member, the Manager Member shall make the appropriate revisions to Schedule
      A
      hereto.

     

    Section
      5.5. Issuance
      of Additional LLC Interests.

     

    (a) Except
      as
      provided in Section 5.2, additional Non-Manager Members (each, an “Additional
      Non-Manager Member”)
      may be
      admitted to the LLC, and such Additional Non-Manager Members may be issued
      LLC
      Units (or other LLC Interests), only upon the prior written consent of the
      Manager Member and the Management Committee (and then upon such terms and
      conditions as may be established by the Manager Member, including without
      limitation upon such Additional Non-Manager Member’s execution of an instrument
      in form and substance satisfactory to the Manager Member whereby such Person
      becomes a party to this Agreement as a Non-Manager Member).

     

    (b) Existing
      Non-Manager Members may be issued additional LLC Units (or other LLC Interests)
      by the LLC only upon the prior written consent of the Manager Member and the
      Management Committee (and then upon such terms and conditions as may be
      established by the Manager Member). The Manager Member or its Affiliates may
      only be issued additional LLC Units (or other LLC Interests) upon the approval
      of the Management Committee.

     

    (c) Each
      time
      additional LLC Interests are issued (including, without limitation, additional
      LLC Units), the Capital Accounts of all the Members shall be adjusted as
      follows: (i) the Manager Member shall determine the proceeds which would be
      realized if the LLC sold all its assets at such time for a price equal to the
      Fair Market Value of such assets and (ii) the Manager Member shall allocate
      amounts equal to the gain or loss which would have been realized upon such
      a
      sale to the Capital Accounts of all the Members immediately prior to such
      issuance in accordance with Sections 4.2(e) and 4.2(f) hereof.

     

    
      
        
        

      

      
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    (d) Upon
      the
      issuance of additional LLC Interests in accordance with the provisions of this
      Article V, the Manager Member shall make the appropriate revisions to
Schedule
      A
      hereto.

     

    (e) Notwithstanding
      anything in this Agreement to the contrary, (i) no additional LLC Interests
      may
      be issued if, giving effect to such issuance, the total number of Members would
      be deemed to exceed one hundred (100) as determined in accordance with Treasury
      Regulation Section 1.7704-1(h), and (ii) no LLC Interests may be issued (A)
      in a
      transaction that is required to be registered under the Securities Act, or
      (B)
      in a transaction that is not required to be registered under the Securities
      Act
      by reason of Regulation S thereunder unless the offering and sale of the LLC
      Interests would not have been required to be registered under the Securities
      Act
      if the LLC Interests had been offered and sold within the United States, or
      in
      any transaction that would otherwise violate the securities or other laws of
      any
      jurisdiction.

     

    Section
      5.6. Additional
      Requirements for Transfer or for Issuance.
      As
      additional conditions precedent to the validity of (x) any Transfer of a
      Non-Manager Member’s interest in the LLC (or, in the case of a Non-Manager
      Member which is not a natural person, direct or indirect ownership interests
      in
      such Non-Manager Member) (pursuant to Section 5.1 hereof), or (y) the issuance
      of additional LLC Interests (pursuant to Section 5.5 above), such Transfer
      or
      issuance (as applicable) shall not: (i) cause the LLC to become subject to
      regulation as an “investment company” under the 1940 Act, and the rules and
      regulations of the SEC thereunder, (ii) result in the assignment or termination
      of any contract to which the LLC (or any Controlled Affiliate thereof) is a
      party and which individually or in the aggregate are material (it being
      understood and agreed that any contract pursuant to which the LLC or a
      Controlled Affiliate thereof provides Investment Services is material), or
      (iii)
      result in the treatment of the LLC as an association taxable as a corporation
      or
      as a “publicly traded partnership” for federal income tax purposes.

     

    The
      Manager Member may require reasonable evidence as to the foregoing, including,
      without limitation, a favorable opinion of counsel in form and substance
      reasonably acceptable to the Manager Member, which expense shall be borne by
      the
      parties to such transaction (and to the extent the LLC is such a party, shall
      be
      paid from the Operating Allocation).

     

    To
      the
      fullest extent permitted by law, any Transfer or issuance that violates the
      provisions of this Article V shall be null and void.

     

    Section
      5.7. Registration
      of LLC Interests.
      The LLC
      Interests constitute “securities,” as such term is defined in 6
      Del.
      C. §  8-102(15),
      governed by Article 8 of the Uniform Commercial Code as in effect in the State
      of Delaware (6
      Del. C. §  8-101, et seq.).
      The
      LLC shall maintain a record of the ownership of LLC Interests which shall be
      set
      forth on Schedule
      A
      hereto
      (and which shall be amended from time to time to reflect transfers of ownership
      of LLC Interests in accordance with the provisions of this Agreement). Subject
      to restrictions on the transferability of LLC Interests as set forth herein,
      LLC
      Interests shall be transferred by delivery to the LLC of an instruction by
      the
      registered owner of an LLC Interest requesting registration of transfer of
      such
      LLC Interest and the recording of such transfer in the records of the
      LLC.

     

    
      
        
        

      

      
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    Section
      5.8. Representation
      of Members.
      The
      Manager Member and each Non-Manager Member (including any Additional Non-Manager
      Member) hereby represents and warrants to the LLC and each other Member, and
      acknowledges (as applicable), that (a) it has such knowledge and experience
      in
      financial and business matters that it is capable of evaluating the merits
      and
      risks of an investment in the LLC and making an informed investment decision
      with respect thereto, (b) it is able to bear the economic and financial risk
      of
      an investment in the LLC for an indefinite period of time, (c) it is acquiring
      an interest in the LLC for investment only and not with a view to, or for resale
      in connection with, any distribution to the public or public offering thereof,
      (d) the equity interests in the LLC have not been registered under the
      securities laws of any jurisdiction and cannot be disposed of unless they are
      subsequently registered and/or qualified under applicable securities laws and
      the provisions of this Agreement have been complied with, and (e) the execution,
      delivery and performance of this Agreement, and of each other agreement
      referenced herein to which such Member is a party, by such Member have been
      duly
      authorized in all necessary respects, do not require it to obtain any consent
      or
      approval that has not been obtained and do not contravene or result in a default
      under any provision of any existing law or regulation applicable to it, any
      provision of its charter, by-laws or other governing documents or any agreement
      or instrument to which it is a party or by which it is bound, and this Agreement
      and each such other agreement referenced herein to which such Member is a party
      has been duly executed and delivered by such Member and is enforceable against
      such Member in accordance with its terms, except as enforcement may be limited
      by bankruptcy, insolvency, reorganization, moratorium or other laws relating
      to
      or limiting creditors’ rights generally or by equitable principles relating to
      enforceability.

     

    Section
      5.9. Conversion
      of Series B LLC Interests.

     

    (a) Each
      Series B LLC Unit automatically shall convert (“Convert”)
      into
      one Series A LLC Unit as follows:

     

    (i) In
      the
      case of a Series B LLC Unit which is issued and outstanding as of the Effective
      Time, such Series B LLC Unit shall convert into one (1) Series A LLC Unit on
      the
      date which is five (5) years from the Effective Time;

     

    (ii) In
      the
      case of a Series B LLC Unit which is sold and transferred to a Non-Manager
      Member pursuant to the provisions of Section 6.1 hereof, or which is sold and
      transferred to such Non-Manager Member pursuant to provisions of Section 5.5
      hereof, such Series B LLC Unit shall convert into one (1) Series A LLC Unit
      on
      the date which is five (5) years from the date of such sale and transfer;
      and

     

    (iii) In
      the
      case of a Series B LLC Unit which is purchased by the Manager Member (or its
      assignee) (whether pursuant to the provisions of Section 3.10 or otherwise),
      such Series B LLC Unit shall convert into one (1) Series A LLC Unit immediately
      following the consummation of such purchase by the Manager Member (or its
      assignee).

     

    
      
        
        

      

      
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    (b) In
      addition to the foregoing, each Series B LLC Unit which is held by a Non-Manager
      Member who (i) dies (or whose related Employee Stockholder dies, in the case
      of
      a Non-Manager Member which is not itself an Employee Stockholder), (ii) has
      his
      or her (or whose related Employee Stockholder has his or her, in the case of
      a
      Non-Manager Member which is not itself an Employee Stockholder) employment
      with
      the LLC terminate as a result of Permanent Incapacity, or (iii) is removed
      as a
      Member of the LLC pursuant to a Removal Upon the Instruction of the Management
      Committee, shall automatically immediately convert into one (1) Series A LLC
      Unit as of immediately prior to such event. In addition to the foregoing, each
      Series B LLC Unit which is held by a Non-Manager Member who is an Initial Member
      shall automatically immediately convert into one (1) Series A LLC Unit as of
      immediately following a delivery by the Manager Member of a written notice
      expressly exercising its rights pursuant to Section 3.2(b)(v) of this
      Agreement.

     

    (c) In
      connection with any sale and transfer by the Manager Member (or any of its
      Affiliates) of Series A LLC Units to any Person, the Manager Member may
      determine in its sole discretion to convert such Series A LLC Units into an
      equal number of Series B LLC Units effective as of immediately prior to such
      sale and transfer.

     

    ARTICLE
      VI

     

    TRANSFER
      OF LLC INTERESTS BY THE

    MANAGER
      MEMBER; REDEMPTION, REMOVAL

    AND
      WITHDRAWAL

     

    Section
      6.1. Transferability
      of Interest.

     

    (a) Except
      as
      set forth in this Section 6.1, without the prior written approval of the
      Management Committee, (i) none of the Manager Member’s interest in the LLC
      (including, without limitation, any interest which has been Transferred to
      the
      Manager Member) may be Transferred and (ii) the LLC may not undergo any merger,
      consolidation, sale of all or substantially all of its assets or similar
      transaction (any of which transactions described in this clause (ii) shall
      also
      require the prior written consent of the Manager Member); provided,
      however,
      (W) it
      is understood and agreed that, in connection with the operation of the business
      of the Manager Member (including, without limitation, the financing of its
      interest herein and direct or indirect interests in additional investment
      management companies), the Manager Member’s interest in the LLC may be pledged
      and encumbered and lien holders of the Manager Member’s interest shall have and
      be able to exercise the rights of secured creditors with respect to such
      interest, (X) the Manager Member may Transfer some (but not a majority) of
      its
      LLC Interests to a Person who is not a Member but who is an Officer or employee
      of the LLC (or any Controlled Affiliate thereof) or who becomes an Officer
      or
      employee of the LLC (or any Controlled Affiliate thereof) or a Person majority
      owned by any such Person, (Y) the Manager Member may Transfer some (but not
      a
      majority) of its LLC Interests to existing Non-Manager Members, and (Z) the
      Manager Member may Transfer all or any portion of its LLC Interests to an
      Affiliate of the Manager Member (and any such Affiliate shall thereafter be
      bound by the provisions of this Agreement). Notwithstanding anything else set
      forth herein, the Manager Member may, with the approval of the Management
      Committee, Transfer all its interests in the LLC in a single transaction or
      a
      series of related transactions, and, in any such case, each of the Non-Manager
      Members shall be required to Transfer, in the same transaction or transactions,
      all their interests in the LLC, provided that the price to be received by all
      the Members shall be allocated among the Members in the same manner as the
      purchase price would have been distributed pursuant to Section 4.4 following
      a
      sale of all or a substantial portion of the assets of the LLC and its Controlled
      Affiliates (with any net gain or loss from such transaction first having been
      allocated among the Members in accordance with Section 4.2(e) or 4.2(f), as
      applicable).

     

    
      
        
        

      

      
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    (b) In
      the
      case of a Transfer upon foreclosure pursuant to proviso (W) of Section 6.1(a),
      each transferee shall sign a counterpart signature page to this Agreement
      agreeing thereby to become either a Non-Manager Member or the Manager Member
      (provided,
      however,
      that
      once one such other transferee elects to become the Manager Member, no
      transferee (other than a subsequent transferee of such new Manager Member)
      may
      elect to be a Manager Member hereunder. If the transferees pursuant to proviso
      (W) of Section 6.1(a) receive all of the Manager Member’s LLC Interests and none
      of such transferees elects to become the Manager Member, then the Manager Member
      shall be deemed to have withdrawn from the LLC. If, however, one of the
      transferees elects to become the Manager Member and executes a counterpart
      signature page to this Agreement agreeing thereby to become the Manager Member,
      then notwithstanding any other provision hereof to the contrary, the old Manager
      Member shall thereupon be permitted to withdraw from the LLC as Manager
      Member.

     

    (c) In
      the
      case of a Transfer pursuant to proviso (Z) of Section 6.1(a), the old Manager
      Member shall be deemed to have withdrawn and its transferee shall be deemed
      to
      have become the new Manager Member hereunder.

     

    Section
      6.2. Resignation,
      Redemption, and Withdrawal.
      To the
      fullest extent permitted by law, except as set forth in Section 6.1, without
      the
      approval of the Management Committee, the Manager Member shall not have the
      right to resign or withdraw from the LLC as Manager Member. With the approval
      of
      the Management Committee, the Manager Member may resign or withdraw as Manager
      Member upon prior written notice to the LLC. Without a prior Majority Vote,
      the
      Manager Member shall have no right to have all or any portion of its interest
      in
      the LLC redeemed. Any resigned, withdrawn or removed Manager Member shall retain
      its interest in the capital of the LLC and its other economic rights under
      this
      Agreement as a Non-Manager Member having the number of LLC Units held by the
      Manager Member prior to its resignation, withdrawal or removal. If a Manager
      Member who has resigned, withdrawn or been removed no longer has any economic
      interest in the LLC, then upon such resignation, withdrawal or removal such
      Person shall cease to be a Member of the LLC.

     

    ARTICLE
      VII

     

    DISSOLUTION
      AND TERMINATION

     

    Section
      7.1. No
      Dissolution.
      The LLC
      shall not be dissolved by any admission of Additional Non-Manager Members,
      substitute Non-Manager Members or substitute Manager Members, or by the
      withdrawal, resignation or removal of any Member from the LLC.

     

    
      
        
        

      

      
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    Section
      7.2. Events
      of Dissolution.
      The LLC
      shall be dissolved and its affairs wound up upon the occurrence of any of the
      following events:

     

    (a) any
      date
      approved by the Management Committee and by the written consent of the Manager
      Member (in its sole discretion); or

     

    (b) at
      any
      time there are no Members of the LLC, unless the LLC is continued in accordance
      with the Act; or

     

    (c) upon
      the
      entry of a decree of judicial dissolution under §  18-802 of the
      Act.

     

    Section
      7.3. Notice
      of Dissolution.
      Upon
      the dissolution of the LLC, the Manager Member shall promptly notify the other
      Members of such dissolution.

     

    Section
      7.4. Liquidation.
      Upon
      the dissolution of the LLC, the Manager Member, or if there is none, a Person
      or
      Persons approved by the holders of more than fifty percent (50%) of the LLC
      Units then outstanding (including those held by the Person that was the Manager
      Member) shall carry out the winding up of the LLC (in such capacity, the
“Liquidating
      Trustee”),
      and
      shall immediately commence to wind up the LLC’s affairs; provided,
      however,
      that a
      reasonable time shall be allowed for the orderly liquidation of the assets
      of
      the LLC and the satisfaction of liabilities to creditors so as to enable the
      Members to minimize the normal losses attendant upon a liquidation. The Members
      shall continue to share in allocations and distributions during liquidation
      in
      the same proportions, as specified in Article IV hereof, as before liquidation.
      The proceeds of liquidation shall be distributed as set forth in Section 4.4
      hereof.

     

    Section
      7.5. Termination.
      The LLC
      shall terminate when all of the assets of the LLC, after payment of or due
      provision for all debts, liabilities and obligations of the LLC, shall have
      been
      distributed to the Members in the manner provided for in Section 4.4 and the
      Certificate shall have been canceled in the manner required by the
      Act.

     

    Section
      7.6. Claims
      of the Members.
      The
      Members and former Members shall look solely to the LLC’s assets for the return
      of their Capital Contributions and Capital Accounts, and if the assets of the
      LLC remaining after payment of or due provision for all debts, liabilities
      and
      obligations of the LLC are insufficient to return such Capital Contributions
      or
      Capital Accounts, the Members and former Members shall have no recourse against
      the LLC or any other Member (including, without limitation, the Manager
      Member).

     

    ARTICLE
      VIII

     

    RECORDS
      AND REPORTS

     

    Section
      8.1. Books
      and Records.
      The
      Management Committee shall (and each of the Non-Manager Members and Employee
      Stockholders shall use its reasonable best efforts to) cause the LLC to keep
      complete and accurate books of account with respect to the operations of the
      LLC, prepared in accordance with GAAP (using the accrual method of accounting,
      consistently applied). Such books shall reflect that the interests in the LLC
      have not been registered under the Securities Act, and that the interests may
      not be sold or transferred without registration under the Securities Act or
      exemption therefrom and without compliance with Article V or Article VI of
      this
      Agreement. Such books shall be maintained at the principal office of the LLC
      in
      Chicago, Illinois or at such other place as the Manager Member shall
      determine.

     

    
      
        
        

      

      
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    Section
      8.2. Accounting.
      The
      LLC’s books of account shall be kept on the accrual method of accounting, or on
      such other method of accounting as the Manager Member may from time to time
      determine with the advice of the Independent Public Accountants, and shall
      be
      closed and balanced at the end of each LLC fiscal year and shall be maintained
      for each fiscal year in a manner consistent with GAAP and with the principles
      and/or policies of the Manager Member applied consistently with respect to
      its
      Controlled Affiliates. The taxable year of the LLC shall be the twelve months
      ending December 31, or such other taxable year as the Manager Member may
      designate with the advice of the Independent Public Accountants.

     

    Section
      8.3. Financial
      and Compliance Reports.
      The
      Management Committee shall (and each of the Non-Manager Members and Employee
      Stockholders shall use its reasonable best efforts to) cause the LLC to furnish
      to the Manager Member each of the following:

     

    (a) Within
      ten (10) days after the end of each month and each fiscal quarter, information
      regarding the consolidated assets under management of the LLC and any Controlled
      Affiliates thereof (including the components of any changes from the information
      provided with respect to the prior period, information regarding net client
      cash
      flows and information regarding market appreciation and depreciation in client
      portfolios), and an unaudited financial report of the LLC (consolidated with
      any
      Controlled Affiliates thereof) prepared in accordance with GAAP using the
      accrual method of accounting consistently applied (except that the financial
      report may (i) be subject to normal year-end audit adjustments which are neither
      individually nor in the aggregate material and (ii) not contain all notes
      thereto which may be required in accordance with GAAP to be included in audited
      financial statements), which unaudited financial report shall have been
      certified by the most senior financial officer of the LLC to have been so
      prepared and shall include the following:

     

    (i) statements
      of operations, changes in members’ capital and cash flows for such month or
      quarter, together with a cumulative income statement from the first day of
      the
      then-current fiscal year to the last day of such month or quarter;

     

    (ii) a
      balance
      sheet as of the last day of such month or quarter; and

     

    (iii) with
      respect to the quarterly financial report, a detailed computation of the Owners’
Allocation for such quarter.

     

    (b) Within
      thirty (30) days after the end of each fiscal year of the LLC, audited financial
      statements of the LLC (consolidated with any Controlled Affiliates thereof),
      which shall include statements of operations, changes in members’ capital and
      cash flows for such year and a balance sheet as of the last day thereof, each
      prepared in accordance with GAAP, using the accrual method of accounting,
      consistently applied, certified by the Independent Public
      Accountants.

     

    
      
        
        

      

      
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    (c) If
      requested by the Manager Member, within twenty-five (25) days after the end
      of
      each calendar quarter, the LLC’s (and any Controlled Affiliates’ thereof)
      operating budget for each of the next four (4) fiscal quarters, in such form
      and
      containing such estimates as may be requested by the Manager Member from time
      to
      time, certified by the most senior financial officer of the LLC.

     

    (d) If
      requested by the Manager Member, copies of all financial statements, reports,
      notices, press releases and other documents released to the public during such
      period.

     

    (e) As
      promptly as is reasonably possible following request by the Manager Member
      from
      time to time, such other financial, operations, performance or other information
      or data as may be requested.

     

    Section
      8.4. Meetings.

     

    (a) The
      Management Committee and the Officers shall hold such regular meetings at the
      LLC’s principal place of business with representatives of the Manager Member as
      may be reasonably requested by the Manager Member from time to time. These
      meetings shall be attended (either in person or by telephone) by such members
      of
      the Management Committee, Officers and other employees of the LLC as may be
      requested by the Manager Member or any of the members of the Management
      Committee.

     

    (b) At
      each
      meeting described in Section 8.4(a), the Officers and other employees of the
      LLC
      shall discuss such matters regarding the LLC and its performance, operations
      and/or budgets as may be reasonably requested by the Manager Member, and each
      of
      the attendees (whether in person or by telephone) at such meeting shall have
      the
      right to submit proposals and suggestions regarding the LLC, and the attendees
      at the meeting shall, in good faith, discuss and consider such proposals and
      suggestions.

     

    Section
      8.5. Tax
      Matters.

     

    (a) The
      Manager Member shall cause to be prepared and filed on or before the due date
      (or any extension thereof) federal, state, local and foreign tax or information
      returns required to be filed by the LLC (or any Controlled Affiliate thereof).
      The Manager Member, to the extent that funds are available at the LLC (or at
      any
      Controlled Affiliates thereof), shall cause the LLC (or such Controlled
      Affiliate thereof) to pay any taxes payable by the LLC (or such Controlled
      Affiliate) (it being understood that the expenses of preparation and filing
      of
      such tax returns, and the amounts of such taxes, are to be treated as operating
      expenses of the LLC to be paid from the Operating Allocation), provided that
      the
      Manager Member shall not be required to cause the LLC (or any Controlled
      Affiliate thereof) to pay any tax so long as the LLC (or such Controlled
      Affiliate thereof) is in good faith and by appropriate legal proceedings
      contesting the validity, applicability or amount thereof and such contest does
      not materially endanger any right or interest of the LLC (or such Controlled
      Affiliate) and adequate reserves therefor have been set aside by the LLC (or
      such Controlled Affiliate). Neither the LLC nor any Employee Stockholder or
      Non-Manager Member shall do anything or take any action which would be
      inconsistent with the foregoing or with the Manager Member’s actions as
      authorized by the foregoing provisions of this Section 8.5(a).

     

    
      
        
        

      

      
        -56-

        
          

        

      

      
        
        

      

    

     

    (b) The
      Manager Member shall be the tax matters partner for the LLC pursuant to Sections
      6221 through 6233 of the Code.

     

    (c) The
      Manager Member shall, in its sole discretion, make or cause to be made by the
      LLC (and any Controlled Affiliates thereof) any and all elections for federal,
      state, local and foreign tax matters, including any election to adjust the
      basis
      of the LLC’s (or a Controlled Affiliate’s) property pursuant to Sections 734(b),
      743(b) and 754 of the Code or comparable provisions of state, local or foreign
      law.

     

    ARTICLE
      IX

     

    LIABILITY,
      EXCULPATION AND INDEMNIFICATION

     

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

     

    Section
      9.2. Exculpation.

     

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

     

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

     

    Section
      9.3. Fiduciary
      Duty.

     

    (a) To
      the
      extent that, at law or in equity, a Covered Person has duties (including
      fiduciary duties) and liabilities relating thereto to the LLC, any Controlled
      Affiliate thereof or any Member, a Covered Person acting under this Agreement
      shall not be liable to the LLC, any Controlled Affiliate thereof or any Member
      for its good faith reliance on the provisions of this Agreement. The provisions
      of this Agreement, to the extent that they restrict the duties and liabilities
      of a Covered Person otherwise existing at law or in equity, are agreed by the
      parties hereto to replace such other duties and liabilities of such Covered
      Person.

     

    
      
        
        

      

      
        -57-

        
          

        

      

      
        
        

      

    

     

    (b) Unless
      otherwise expressly provided herein, whenever a conflict of interest exists
      or
      arises between the Manager Member and any other Member or the LLC (or any
      Controlled Affiliate thereof) (other than in the case of any action permitted
      to
      be taken by the Manager Member in its “discretion” or “sole discretion”, with
      respect to which this sentence shall not be applicable)), the Manager Member
      shall resolve such conflict of interest considering the relative interests
      of
      each party (including its own interest) to such conflict and the benefits and
      burdens relating to such interests, any customary or accepted industry
      practices, and any applicable generally accepted accounting practices or
      principles. A resolution reached by the Manager Member of a conflict of interest
      described in the preceding sentence shall not constitute a breach of this
      Agreement or any other agreement contemplated herein or of any duty or
      obligation of the Manager Member at law or in equity or otherwise unless the
      Managing Member did not act in good faith.

     

    (c) Whenever
      in this Agreement the Manager Member is permitted or required to make a decision
      (i) in its “discretion” or “sole discretion” or under a grant of similar
      authority or latitude, the Manager Member shall be entitled to consider such
      interests and factors as it desires, including its own interests, and to reach
      any decision it may select regardless of the reasons therefor, or (ii) in its
      “good faith” or under another express standard, the Manager Member shall act
      under such express standard and shall not be subject to any other or different
      standard imposed by this Agreement or other applicable law.

     

    (d) Wherever
      in this Agreement a factual determination is called for and the applicable
      provision of this Agreement does not indicate what party or parties are to
      make
      the applicable factual determination, and/or the applicable standard to be
      used
      in making the factual determination, such determination shall be made by the
      Manager Member in the exercise of reasonable discretion.

     

    Section
      9.4. Indemnification.
      To the
      fullest extent permitted by applicable law, a Covered Person shall be entitled
      to indemnification from the LLC for any loss, damage or claim (including any
      amounts paid in settlement of any such claims) including expenses, fines,
      penalties and counsel fees and expenses incurred by such Covered Person
      (“Losses”)
      by
      reason of any act or omission performed or omitted by such Covered Person in
      good faith on behalf of the LLC (or any Controlled Affiliate thereof) and in
      a
      manner reasonably believed to be within the scope of authority conferred on
      such
      Covered Person by this Agreement, except that no Covered Person shall be
      entitled to be indemnified in respect of any Losses incurred by such Covered
      Person by reason of any action or inaction of such Covered Person which
      constituted fraud, gross negligence, willful misconduct or a breach of this
      Agreement or the Purchase Agreement; provided,
      however,
      that
      any indemnity under this Section 9.4 shall be provided out of and to the extent
      of LLC assets only, and no Member or Covered Person shall have any personal
      liability to provide indemnity on account thereof.

     

    Section
      9.5. Notice;
      Opportunity to Defend and Expenses.

     

    (a) Promptly
      after receipt by any Covered Person from any third party of 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 or the commencement (or
      threatened commencement) of any action, proceeding or investigation (an
“Asserted
      Liability”)
      that
      could reasonably be expected to result in any Losses with respect to which
      the
      Covered Person might be entitled to indemnification from the LLC under Section
      9.4, the Covered Person shall give written notice thereof (the “Claims
      Notice”)
      to the
      Management Committee and the Manager Member; provided,
      however,
      that a
      failure to give such notice shall not prejudice the Covered Person’s right to
      indemnification hereunder except to the extent that the LLC, a Controlled
      Affiliate thereof or the Manager Member 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 Covered Person.

     

    
      
        
        

      

      
        -58-

        
          

        

      

      
        
        

      

    

     

    (b) The
      LLC
      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 LLC (or a Controlled Affiliate thereof) and a
      Covered Person, or more than one Covered Persons, and the LLC is advised by
      counsel that representation of both parties by the same counsel would be
      inappropriate under applicable standards of professional conduct, the Covered
      Person may engage separate counsel at the expense of the LLC. If the LLC 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 Covered Person of its intent to do so, and the Covered Person shall
      cooperate, at the expense of the LLC, in the compromise of, or defense against,
      such Asserted Liability. If the LLC elects not to compromise or defend the
      Asserted Liability, fails to notify the Covered Person 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 Covered Person may pay, compromise or defend such Asserted Liability all
      at
      the expense of the Covered Person (in accordance with the provisions of Section
      9.5(c) below). Except as set forth in the preceding sentence, neither the LLC
      nor the Covered Person may settle or compromise any claim over the objection
      of
      the LLC or the Manager Member; provided,
      however,
      that
      consent to settlement or compromise shall not be unreasonably withheld. In
      any
      event, the LLC and the Covered Person may participate at their own expense,
      in
      the defense of such Asserted Liability. The Covered Person shall in any event
      make available to the LLC any books, records or other documents within its
      control that are necessary or appropriate for such defense, all at the expense
      of the LLC.

     

    (c) If
      the
      LLC elects not to compromise or defend an Asserted Liability, or fails to notify
      the Covered Person of its election as above provided, then, to the fullest
      extent permitted by applicable law, expenses (including legal fees) incurred
      by
      a Covered Person in defending any Asserted Liability, shall, from time to time,
      be advanced by the LLC prior to the final disposition of such claim, demand,
      action, suit or proceeding upon receipt by the LLC of an undertaking by or
      on
      behalf of the Covered Person to repay such amount if it shall be determined
      that
      the Covered Person is not entitled to be indemnified as authorized in Section
      9.4 hereof. The LLC may, if the Manager Member deems it appropriate, require
      any
      Covered Person for whom expenses are advanced to deliver adequate security
      to
      the LLC for his or her obligation to repay such indemnification.

     

    
      
        
        

      

      
        -59-

        
          

        

      

      
        
        

      

    

     

    Section
      9.6. Miscellaneous.

     

    (a) The
      right
      of indemnification hereby provided shall not be exclusive of, and shall not
      affect, any other rights to which a Covered Person may be entitled at law,
      under
      other agreements or otherwise. Nothing contained in this Article X shall limit
      any lawful rights to indemnification existing independently of this Article
      X.

     

    (b) The
      indemnification rights provided by this Article X shall also inure to the
      benefit of the heirs, executors, administrators, successors and assigns of
      a
      Covered Person and any officers, directors, members, partners, shareholders,
      employees and Affiliates of such Covered Person (and any former officer,
      director, member, partner, shareholder or employee of such Covered Person,
      if
      the Loss was incurred while such Person was an officer, director, member,
      partner, shareholder or employee of such Covered Person). The Manager Member
      (or
      the Management Committee with the consent of the Manager Member, such consent
      not to be unreasonably withheld) may extend the indemnification called for
      by
      Section 9.4 to non-employee agents of the LLC (or any Controlled Affiliate
      thereof), the Manager Member or its Affiliates.

     

    ARTICLE
      X

     

    MISCELLANEOUS

     

    Section
      10.1. Notices.
      All
      notices, requests, elections, consents or demands permitted or required to
      be
      made under this Agreement (“Notices”)
      shall
      be in writing, signed by the Person or Persons giving such notice, request,
      election, consent or demand and shall be delivered personally or by confirmed
      facsimile, or sent by registered, certified mail or commercial courier to the
      Members at their addresses set forth on the signature pages hereof or on
Schedule
      A
      hereto,
      or to the LLC as described in the next sentence (as applicable), or at such
      other addresses as may be supplied by written notice given in conformity with
      the terms of this Section 10.1. All Notices to the LLC shall be made to the
      Manager Member at the address set forth on the signature pages hereof or on
      Schedule
      A
      hereto,
      with a copy (which shall not constitute notice) to the Management Committee
      at
      the principal offices of the LLC. The date of any such personal or facsimile
      delivery, or the date of delivery by an overnight courier, or the date five
      (5)
      days after the date of mailing by registered or certified mail, as applicable,
      shall be the date of such notice having been delivered hereunder.

     

    Section
      10.2. Successors
      and Assigns.
      Subject
      to the restrictions on Transfer set forth herein, this Agreement shall be
      binding upon and shall inure to the benefit of the Members, their respective
      successors, successors-in-title, heirs and assigns, and each and every
      successors-in-interest to any Member, whether such successor acquires such
      interest by way of gift, purchase, foreclosure or by any other method, and
      each
      shall hold such interest subject to all of the terms and provisions of this
      Agreement.

     

    Section
      10.3. Amendments.
      No
      amendments may be made to this Agreement without (i) the prior written consent
      of the Manager Member and (ii) the approval of the Management Committee;
provided,
      however,
      that,
      without the vote, consent or approval of any other Member, the Manager Member
      shall make such amendments and additions to Schedule
      A
      hereto
      as are required by the provisions hereof; and, provided further,
      that,
      without the vote, consent or approval of any other Member, the Manager Member
      may amend this Agreement to cure any ambiguity, correct or supplement any
      provision hereof which is incomplete or inconsistent with any other provision
      hereof, or correct any printing, stenographic or clerical errors or omissions.
      If the Manager Member shall make any amendments or additions to Schedule
      A
      hereto
      or to this Agreement without the vote, consent or approval of any other Member
      (as provided for in the preceding sentence), it shall notify the Management
      Committee of such change and provide the Management Committee with a copy
      thereof.

     

    
      
        
        

      

      
        -60-

        
          

        

      

      
        
        

      

    

     

    Section
      10.4. No
      Partition.
      No
      Member, nor any successor-in-interest to any Member, shall have the right while
      this Agreement remains in effect to have the property of the LLC partitioned,
      or
      to file a complaint or institute any proceeding at law or in equity to have
      the
      property of the LLC partitioned, and each Member, on behalf of itself, its
      successors, representatives, heirs and assigns, hereby waives any such right.
      It
      is the intent of the Members that during the term of this Agreement, the rights
      of the Members and the Employee Stockholders, and their respective
      successors-in-interest, as among themselves, shall be governed by the terms
      of
      this Agreement, and that the right of any Member or successors-in-interest
      to
      assign, Transfer, sell or otherwise dispose of his interest in the LLC shall
      be
      subject to the limitations and restrictions of this Agreement.

     

    Section
      10.5. No
      Waiver; Cumulative Remedies.
      The
      failure of any Member to insist upon strict performance of a covenant hereunder
      or of any obligation hereunder, irrespective of the length of time for which
      such failure continues, shall not be a waiver of such Member’s right to demand
      strict compliance in the future. No consent or waiver, express or implied,
      to or
      of any breach or default in the performance of any obligation hereunder, shall
      constitute a consent or waiver to or of any other breach or default in the
      performance of the same or any other obligation hereunder. The rights and
      remedies provided by this Agreement are cumulative and the use of any one right
      or remedy by any party shall not preclude or waive its right to use any or
      all
      other remedies. Said rights and remedies are given in addition to any other
      rights the parties may have by law, statute, ordinance or
      otherwise.

     

    Section
      10.6. Dispute
      Resolution.
      All
      disputes arising in connection with this Agreement shall be resolved by binding
      arbitration in accordance with the applicable rules of the American Arbitration
      Association. The arbitration shall be held in the
      Borough of Manhattan in the City of New York before a single arbitrator selected
      in accordance with Section 11 of the American Arbitration Association Commercial
      Arbitration Rules who shall have substantial business 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 10.6 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 and any expenses incurred in
      connection with compelling arbitration) in favor 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.

     

    
      
        
        

      

      
        -61-

        
          

        

      

      
        
        

      

    

     

    Section
      10.7. Prior
      Agreements Superseded.
      This
      Agreement, together with the schedules and exhibits hereto, supersedes the
      prior
      understandings and agreements among the parties with respect to the subject
      matter hereof and thereof.

     

    Section
      10.8. Captions.
      Titles
      or captions of Articles or Sections contained in this Agreement are inserted
      as
      a matter of convenience and for reference, and in no way define, limit, extend
      or describe the scope of this Agreement or the intent of any provision
      hereof.

     

    Section
      10.9. Counterparts.
      This
      Agreement may be executed in a number of counterparts, all of which together
      shall for all purposes constitute one Agreement, binding on all the Members
      notwithstanding that all Members have not signed the same
      counterpart.

     

    Section
      10.10. Applicable
      Law; Jurisdiction.
      This
      Agreement and the rights and obligations of the parties hereunder shall be
      governed by and interpreted, construed and enforced in accordance with the
      laws
      of the State of Delaware, without applying the choice of law or conflicts of
      law
      provisions thereof. Each of the parties hereby consents to personal
      jurisdiction, service of process and venue in the federal or state courts
      sitting in the Borough of Manhattan in the City of New York 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 10.6 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 10.1 hereof. The parties agree that a final judgment in
      any
      such action or proceeding shall be conclusive and may be enforced in other
      jurisdictions.

     

    Section
      10.11. Interpretation.
      All
      terms herein using the singular shall include the plural; all terms using the
      plural shall include the singular; in each case, the term shall be as
      appropriate to the context of each sentence. Throughout this Agreement, nouns,
      pronouns and verbs shall be construed as masculine, feminine and neuter,
      whichever shall be applicable. Any reference to the Code, the Act or other
      statutes or laws will include all amendments, modifications, or replacements
      of
      the specific sections and provisions concerned. The parties intend that this
      Agreement and the provisions contained herein shall not be construed or
      interpreted for or against any party hereto because that party drafted or caused
      that party’s legal representative to draft any of its provisions.

     

    Section
      10.12. Severability.
      The
      invalidity or unenforceability of any particular provision of this Agreement
      shall not affect the other provisions hereof, and this Agreement shall be
      construed in all respects as if such invalid or unenforceable provision were
      omitted.

     

    Section
      10.13. Creditors.
      None of
      the provisions of this Agreement shall be for the benefit of or, to the extent
      permitted by law, enforceable by any creditor of (i) any Member, (ii) any
      Employee Stockholder or (iii) the LLC, other than a Member who is also a
      creditor of the LLC.

     

    
      
        
        

      

      
        -62-

        
          

        

      

      
        
        

      

    

     

    Section
      10.14. References
      to This Agreement.
      Numbered or lettered articles, sections and subsections herein contained refer
      to articles, sections and subsections of this Agreement unless otherwise
      expressly stated. References to paragraphs refer to paragraphs in the same
      Section unless otherwise expressly stated. References to clauses refer to
      clauses in the same paragraph unless otherwise expressly stated.

     

    Section
      10.15. Exhibits,
      Schedules and Annexes.
      All
      Exhibits, Schedules and Annexes attached to this Agreement are incorporated
      and
      shall be treated as if set forth herein. Only the Manager Member and the members
      of the Management Committee shall have the right to review Schedule
      A
      hereto,
      and each of the Non-Manager Members and Employee Stockholders (in his or her
      capacity as a Non-Manager Member or Employee Stockholder, as applicable)
      expressly waives his or her rights under the Act (including without limitation
      under Section 18-315 thereof) to review Schedule
      A
      hereto
      (and acknowledges and agrees that such waiver is reasonable in light of the
      interests of the LLC and its Members). Each Non-Manager Member shall have the
      right to receive a copy of this Agreement and the Exhibits, Schedules and
      Annexes attached hereto, provided that Schedule
      A
      will be
      redacted as to names, LLC Units, Capital Contributions, and other financial
      information of the other Members, and such Non-Manager Member shall have the
      right to review only that information regarding such Non-Manager Member’s own
      LLC Units, Capital Contribution, as well as the total number of outstanding
      LLC
      Units and the total amount of capital contributed by the Members in the
      aggregate. Notwithstanding the foregoing, the Management Committee may in its
      sole discretion furnish to any one or more Non-Manager Members (and to the
      exclusion of any one or more other Non-Manager Members) such additional
      information relating to Schedule
      A
      as the
      Management Committee (in its sole discretion) determines from time to
      time.

     

    Section
      10.16. Additional
      Documents and Acts.
      Each
      Non-Manager Member and Employee Stockholder agrees to execute and deliver such
      additional documents and instruments and to perform such additional acts as
      may
      be reasonably requested by the Manager Member to effectuate, carry out and
      perform all of the terms, provisions, and conditions of this Agreement and
      the
      actions contemplated hereby.

     

    [INTENTIONALLY
      LEFT BLANK]

     

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF the Initial Non-Manager Members and the Manager Member have
      executed and delivered this Amended and Restated Limited Liability Company
      Agreement as of the day and year first above written.

     

    
      	 	
              MANAGER
                MEMBER:

              HIGHBURY
                FINANCIAL INC

               

              By:  
                /s/
                Richard S. Foote

              
                

              

              Name:
                Richard S. Foote

              Title:
                President and Chief Executive Offer

               

              Address

              999
                Eighteenth Street, Suite 3000

              Denver,
                Colorado 80202

            
	 	 
	 	
              NON-MANAGER
                MEMBERS:

               

               

              /s/
                Stuart Bilton 
                

              

              Stuart
                Bilton

               

               

              /s/
                Kenneth C. Anderson 
                

              

              Kenneth
                C. Anderson

               

               

              /s/
                Gerald Dillenburg 
                

              

              Gerald
                Dillenburg

               

               

              /s/
                Christine R. Dragon 
                

              

              Christine
                R. Dragon

               

               

              /s/
                Joseph Hays 
                

              

              Joseph
                Hays

               

               

              /s/
                Betsy Heaberg 
                

              

              Betsy
                Heaberg

               

               

              /s/
                David Robinow 
                

              

              David
                Robinow

               

               

              /s/
                John Rouse 
                

              

              John
                RouseExhibit
      10.01

     

    SECURITIES
      PURCHASE AGREEMENT 

     

        This
      Securities Purchase Agreement, together with all schedules and exhibits (this
      “Agreement”),
      is
      dated as of April 18, 2006, among SAN Holdings, Inc., a Colorado corporation
      (the “Company”),
      and
      each Purchaser (as defined below) identified on the signature pages hereto,
      each
      a “party” and collectively the “parties.” 

     

    WITNESSETH:

     

    WHEREAS,
      pursuant to the Securities Purchase Agreement, dated as of February 28, 2006
      (the “Initial
      Purchase Agreement”),
      among
      the Company and each purchaser identified on the signature pages thereto (each,
      an “Initial
      Purchaser”),
      on
      March 2, 2006, in an initial closing (the “Initial
      Closing”),
      the
      Company sold 236.8 Units to the Initial Purchasers, each Unit consisting of
      (i) one share of Preferred Stock of the Company initially convertible into
      333,333 shares of Common Stock, with such Preferred Stock having the terms
      and
      conditions as described in the Certificate of Designations, and (ii) a
      $0.30 Warrant and a $0.50 Warrant, each of such Warrants initially exercisable
      into 166,667 shares of Common Stock, with such Warrants having the terms and
      conditions described in Exhibit
      D
      and
Exhibit
      E;

     

    WHEREAS,
      Sun Solunet, LLC (“Sun
      Solunet”),
      the
      majority shareholder of the Company, purchased a total of 176.5 Units from
      the
      Company for $8,000,000 in the Initial Closing;

     

    WHEREAS,
      the number of Units purchased by Sun Solunet at the Initial Closing was equal
      to
      quotient obtained by dividing (i) 8,000,000 by (ii) the Per Unit Purchase Price
      applicable to Sun Solunet. The Per Unit Purchase Price applicable to Sun Solunet
      equaled the quotient obtained by dividing (a) the aggregate Subscription Amount
      from all Initial Purchasers (other than Sun Solunet) less the aggregate fees
      payable to Monarch Capital Group LLC by (b) number of Units purchased by all
      Initial Purchasers (other than Sun Solunet);

     

    WHEREAS,
      the Initial Purchase Agreement provides that the Company may sell additional
      Units which sale is not required to be pursuant to the Initial Purchase
      Agreement so long as the Units are sold on the same terms and conditions as
      set
      forth in the Initial Purchase Agreement;

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      Section 4(2) of the Securities Act (as defined below), and Rule 506 promulgated
      thereunder, the Company desires to issue and sell to the Purchasers, and the
      Purchasers, severally and not jointly, desire to purchase from the Company
      in
      the aggregate, up to 10.8 Units; 

     

    WHEREAS,
      this Agreement is substantially similar to the Initial Purchase Agreement and
      the Company desires to grant the Purchasers under this Agreement the same rights
      with respect to the Units as those granted to the Initial Purchasers under
      the
      Initial Purchase Agreement and the Company desires to treat the Purchasers
      under
      this Agreement and the Initial Purchasers as a single class of holders of Units;
      and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

        WHEREAS,
      subject to the terms and conditions set forth in the Initial Purchase Agreement,
      the Company may sell additional Units to Purchasers and or other Persons (as
      defined herein) pursuant to the terms set forth in the Initial Purchase
      Agreement.

     

        NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration the receipt and adequacy of which
      are hereby acknowledged, the Company and each Purchaser agrees as
      follows:

     

    ARTICLE
      I

    DEFINITIONS
      

     

    1.1.  Definitions.
      In addition to the terms defined elsewhere in this Agreement, for all purposes
      of this Agreement, the following terms have the meanings indicated in this
      Section 1.1:

     

    “Action”
shall
      have the meaning ascribed to such term in Section 3.1(j). 

     

    “Affiliate”
means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person as such
      terms are used in and construed under Rule 144. With respect to a Purchaser,
      any
      investment fund or managed account that is managed on a discretionary basis
      by
      the same investment manager as such Purchaser will be deemed to be an Affiliate
      of such Purchaser.

     

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday or a day on which banking institutions in the State of New York are
      authorized or required by law or other governmental action to
      close.

     

    “Certificate
      of Designations”
means
      the Certificate of Designations, Preferences and other rights and qualifications
      of the Series A Preferred Stock substantially in the form of Exhibit
      A
      hereto.

     

    “Closing”
means
      the closing of the purchase and sale of the Units pursuant to Section 2.1.
      The
      Closing shall be deemed to be an additional Closing under the Initial Purchase
      Agreement. There may be subsequent Closings for the sale of additional Units
      pursuant to the Initial Purchase Agreement or on the same terms and conditions
      as set forth in the Initial Purchase Agreement.

     

    “Closing
      Date”
means
      the Trading Day when all of the Transaction Documents have been executed and
      delivered by the applicable parties thereto, and all conditions precedent to
      the
      Purchasers’ obligations to pay the Subscription Amount and the Company’s
      obligation to issue the Warrants and the Preferred Shares have been satisfied
      or
      waived.

     

    “Commission”
means
      the Securities and Exchange Commission. 

     

    “Common
      Stock”
means
      the common stock of the Company, no par value per share, and any securities
      into
      which such common stock may hereafter be reclassified. 

     

    “Common
      Stock Equivalents”
means
      any securities of the Company or the Subsidiaries which would entitle the holder
      thereof to acquire at any time Common Stock, including without limitation,
      any
      debt, preferred stock, rights, options, warrants or other instrument that is
      at
      any time convertible into or exchangeable for, or otherwise entitles the holder
      thereof to receive, Common Stock.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Credit
      Support Termination Agreement”
means
      the termination to the letter agreement, dated as of March 31, 2003, by and
      between Sun Capital Partners II, LP, a Delaware limited partnership (the
“Fund”), and the Company, as amended on November 23, 2005, acknowledged and
      agreed to by Sun Solunet, substantially in the form of Exhibit
      G
      attached
      hereto.

     

    “Disclosure
      Schedules”
means
      the Disclosure Schedules attached hereto. 

     

    “Effective
      Date”
means
      the date that the Registration Statement is first declared effective by the
      Commission. 

     

    “Escrow
      Agent”
means
      Wells Fargo Bank, National Association.

     

    “Escrow
      Agreement”
shall
      mean the Escrow Agreement substantially in the form of Exhibit
      B
      hereto,
      as the same may be amended or supplemented from time to time.

     

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

     

    “Liens”
means
      a
      lien, charge, security interest, encumbrance, right of first refusal, preemptive
      right or other restriction. 

     

    “Material
      Adverse Effect”
shall
      have the meaning ascribed to such term in Section 3.1(b). 

     

    “Material
      Permits”
shall
      have the meaning ascribed to such term in Section 3.1(l). 

     

    “Per
      Unit Purchase Price”
equals
      $50,000 for all Purchasers other than Sun Solunet and for Sun Solunet equals
      the
      lesser amount set forth in the third “WHEREAS” clause of this
      Agreement.

     

    “Person”
means
      any legal person, including without limitation, an individual or corporation,
      partnership, trust, incorporated or unincorporated association, joint venture,
      limited liability company, joint stock company, government (or an agency or
      subdivision thereof) or other entity of any kind. 

     

    “Preferred
      Shares”
means
      the Series A Preferred Stock issuable pursuant to this Agreement.

     

    “Preferred
      Stock”
mean
      the Series A Preferred Stock of the Company no par value per share. Each share
      of Preferred Stock is convertible into 333,333 shares of Common
      Stock.

     

    “Purchaser”
means
      each Person signing this Agreement as a Purchaser. Each Purchaser hereunder
      shall be deemed to be a Purchaser under the Initial Purchase Agreement.

     

    “Purchaser
      Questionnaire”
means
      the Purchaser Agreement and Questionnaire, substantially in the form of Exhibit
      H attached hereto.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Registration
      Rights Agreement”
means
      the Registration Rights Agreement, dated as of the date of this Agreement,
      among
      the Company and each Purchaser, substantially in the form of Exhibit
      C
      hereto.

     

    “Registration
      Statement”
means
      a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement and covering the resale by the Purchasers of the Shares.

     

    “Required
      Approvals”
shall
      have the meaning ascribed to such term in Section 3.1(e). 

     

    “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule. 

     

    “SEC
      Reports”
shall
      have the meaning ascribed to such term in Section 3.1(h). 

     

    “Securities”
means
      the Preferred Shares, the Shares and the Warrants. 

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended. 

     

    “Shares”
means
      the shares of Common Stock issuable to each Purchaser pursuant to the exercise
      of the Warrants or the conversion of the Preferred Stock. 

     

    “Subscription
      Amount”
means,
      as to each Purchaser, the amounts set forth below such Purchaser’s signature
      block on the signature page hereto, payable (i) with respect to Purchasers
      other
      than Sun Solunet, in United States dollars and in immediately available funds
      and (ii) with respect to Sun Solunet, in the form of the exchange of debt owed
      to Sun Solunet in form and substance acceptable to the Company. 

     

    “Subsidiary”
shall
      mean the subsidiaries of the Company disclosed in the SEC Reports. 

     

    “Sun
      Solunet”
means
      Sun Solunet, LLC, the majority shareholder of the Company as of the date of
      this
      Agreement.

     

    “Trading
      Day”
means
      (i) a day on which the Common Stock is traded on a Trading Market, or (ii)
      if
      the Common Stock is not listed on a Trading Market, a day on which the Common
      Stock is quoted in the over-the-counter market as reported by the National
      Quotation Bureau Incorporated (or any similar organization or agency succeeding
      its functions of reporting prices); provided, that in the event that the Common
      Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then
      Trading Day shall mean a Business Day.

     

    “Trading
      Market”
means
      the following markets or exchanges on which the Common Stock is listed or quoted
      for trading on the date in question: the American Stock Exchange, the New York
      Stock Exchange, the Nasdaq National Market, the Nasdaq SmallCap Market or the
      OTC Bulletin Board. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Transaction
      Documents”
means
      this Agreement, the Certificate of Designations, the Escrow Agreement, the
      Warrants and the Registration Rights Agreement and any other documents or
      agreements executed in connection with the transactions contemplated hereunder.
      

     

    “Units”
means
      the Units being offered pursuant to this Agreement, each Unit consisting of
      one
      share of Preferred Stock, one $0.30 Warrant and one $0.50 Warrant.

     

    “$0.30
      Warrants”
means
      the Common Stock Purchase Warrants, substantially in the form of Exhibit
      D,
      issuable to the Purchasers at the Closing, which warrants shall have an exercise
      price equal to $0.30 per share and be exercisable for a period of five years.
      Each $0.30 Warrant is initially exercisable into 166,667 shares of Common Stock.
      

     

    “$0.50
      Warrants”
means
      the Common Stock Purchase Warrants, substantially in the form of Exhibit
      E,
      issuable to the Purchasers at the Closing, which warrants shall have an exercise
      price equal to $0.50 per share and be exercisable for a period of five years.
      Each $0.50 Warrant is initially exercisable into 166,667 shares of Common
      Stock.

     

    “Warrants”
means
      the $0.30 Warrants and $0.50 Warrants, collectively. 

     

    ARTICLE
      II

    PURCHASE
      AND SALE 

     

    2.1.  Closing.
      At the
      Closing, each Purchaser shall purchase from the Company, severally and not
      jointly with the other Purchasers, and the Company shall issue and sell to
      each
      Purchaser, a number of Units equal to such Purchaser’s Subscription Amount
      divided by the Per Unit Purchase Price. Sun Solunet, employees and executive
      officers of the Company that are Purchasers (the “Insider Purchasers”) shall be
      permitted to invest in less than full Unit increments, and notwithstanding
      anything to the contrary set forth herein, any such Purchasers shall be excluded
      from the representations and warranties to the Company set forth in Section
      3.2(i) of this Agreement and the covenants to the Company set forth in Section
      4.5 of this Agreement. Purchasers other than the Inside Purchasers shall also
      be
      permitted to invest in less than full Unit increments, subject to the delivery
      by such Purchaser of a Purchaser Questionnaire as set forth in Section
      2.2(b)(v). Upon satisfaction of the conditions set forth in Section 2.2, the
      Closing shall occur at the offices of Olshan Grundman Frome Rosenzweig &
Wolosky LLP, Park Avenue Tower, 65 East 55th
      Street,
      New York, New York 10022, or such other location as the parties shall mutually
      agree.

     

    2.2.  Closing
      Conditions; Deliveries.

     

    (a)  At
      the
      Closing the Company shall deliver or cause to be delivered to each Purchaser
      or
      in lieu thereof the Placement Agent the following:

     

    (i)  this
      Agreement duly executed by the Company; 

     

    (ii)  a
      certificate evidencing a number of Preferred Shares equal to such Purchaser’s
      Subscription Amount divided by the Per Unit Purchase Price, registered in the
      name of such Purchaser; 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (iii)  a
      copy of
      a $0.30 Warrant, registered in the name of such Purchaser, pursuant to which
      such Purchaser shall have the initial right to acquire up to the number of
      shares of Common Stock equal to 50% of the Shares to be issued to such Purchaser
      at the Closing assuming the conversion of all Preferred Stock into Common Stock
      of all of the Preferred Stock acquired by the Purchaser; 

     

    (iv)  a
      copy of
      a $0.50 Warrant, registered in the name of such Purchaser, pursuant to which
      such Purchaser shall have the initial right to acquire up to the number of
      shares of Common Stock equal to 50% of the Shares to be issued to such Purchaser
      at the Closing assuming the conversion of all Preferred Stock into Common Stock
      of all of the Preferred Stock acquired by the Purchaser;

     

    (v)  the
      Registration Rights Agreement duly executed by the Company

     

    (vi)  Lock-up
      agreements, substantially in the form of Exhibit
      F
      hereto
      executed by officers and inside directors of the Company that are employees
      of
      the Company; and

     

    (vii)  a
      Certificate of the President and the Secretary of the Company that the
      Certificate of Designations has been adopted and filed

     

    (b)  At
      the
      Closing each Purchaser shall deliver or cause to be delivered to the Company
      the
      following: 

     

    (i)  this
      Agreement duly executed by such Purchaser; 

     

    (ii)  with
      respect to the Purchasers other than Sun Solunet, such Purchaser’s Subscription
      Amount by wire transfer to the account of the Escrow Agent (such account as
      provided to the Purchasers in writing by or on behalf of the Escrow Agent)
      prior
      to the Closing Date;

     

    (iii)  with
      respect to Sun Solunet, their Subscription Amount in the form of exchange of
      debt owed by the Company to Sun Solunet in form and substance reasonably
      acceptable to the Company on or prior to the initial Closing Date;

     

    (iv)  the
      Registration Rights Agreement duly executed by such Purchaser; and

     

    (v)  the
      Purchaser Questionnaire duly executed by such Purchaser if such Purchaser is
      purchasing less than 1 Unit.

     

    (c)  All
      representations and warranties of the other parties contained herein shall
      remain true and correct as of the Closing Date. 

     

    (d)  As
      of the
      Closing Date, there shall have been no Material Adverse Effect with respect
      to
      the Company since the date hereof.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (e)  From
      the
      date hereof to the Closing Date, trading in the Common Stock shall not have
      been
      suspended by the Commission (except for any suspension of trading of limited
      duration agreed to by the Company, which suspension shall be terminated prior
      to
      the Closing), and, at any time prior to the Closing Date, trading in securities
      generally as reported by Bloomberg Financial Markets shall not have been
      suspended or limited, or minimum prices shall not have been established on
      securities whose trades are reported by such service, or on any Trading Market,
      nor shall a banking moratorium have been declared either by the United States
      or
      New York State authorities nor shall there have occurred any material outbreak
      or escalation of hostilities or other national or international calamity of
      such
      magnitude in its effect on, or any material adverse change in, any financial
      market which, in each case, in the reasonable judgment of each Purchaser, makes
      it impracticable or inadvisable to purchase the Units at the Closing.

     

    (f)  After
      giving effect to (i) the payment by Sun Solunet of its Subscription Amount
      for
      the Units purchased in the Initial Closing in the form of exchange of debt
      owed
      by the Company to Sun Solunet and (ii) the payment by the Company of some of
      the
      outstanding indebtedness owed to Sun Solunet (separate from the cancellation
      of
      debt described in (i)), the total remaining indebtedness of the Company to
      Sun
      Solunet shall be less than or equal to $5,000,000 (in aggregate principal
      amount); and 

     

    (g)  The
      Credit Support Termination Agreement shall be duly executed by the parties
      thereto and shall include an agreement of the parties thereto to amend the
      credit facility the Company maintains with Sun Solunet to decrease the Company’s
      borrowing availability from $14,000,000 to $5,000,000, to revise the credit
      facility from a revolving loan to a term loan and to extend the maturity date
      thereof to a date that is three years from the date of the Credit Support
      Termination Agreement.

     

    2.3.  Satisfied
      Closing Conditions.
      The
      parties hereto agree and acknowledge that the closing conditions set forth
      in
      Section 2.2(a)(vi), Section 2.2(a)(vii), Section 2.2(b)(iii), Section 2.2(f)
      and
      Section 2.2(g) were all satisfied at the Initial Closing and are not closing
      conditions for purposes of the Closing pursuant to this Agreement. 

     

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES 

     

    3.1.  Representations
      and Warranties of the Company.
      Except
      as disclosed in the SEC Reports or as set forth under the corresponding section
      of the Disclosure Schedules delivered concurrently herewith, the Company hereby
      makes the following representations and warranties as of the date hereof and
      as
      of the Closing Date to each Purchaser: 

     

    (a)  Subsidiaries.
      Except
      as disclosed in the SEC Reports, the Company has no direct or indirect
      subsidiaries. Except as disclosed in the SEC Reports, the Company owns, directly
      or indirectly, all of the capital stock or other equity interests of each
      Subsidiary free and clear of any Liens, and all the issued and outstanding
      shares of capital stock of each Subsidiary are validly issued and are fully
      paid, non-assessable and free of preemptive and similar rights. If the Company
      has no subsidiaries, then references in the Transaction Documents to the
      Subsidiaries will be disregarded.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (b)  Organization
      and Qualification.
      The
      Company is an entity duly incorporated or otherwise organized, validly existing
      and in good standing under the laws of the jurisdiction of its incorporation
      or
      organization (as applicable), with the requisite power and authority to own
      and
      use its properties and assets and to carry on its business as currently
      conducted. Neither the Company nor any Subsidiary is in violation of any of
      the
      provisions of its respective certificate or articles of incorporation, bylaws
      or
      other organizational or charter documents. The Company is duly qualified to
      conduct business and is in good standing as a foreign corporation or other
      entity in each jurisdiction in which the nature of the business conducted or
      property owned by it makes such qualification necessary, except where the
      failure to be so qualified or in good standing, as the case may be, could not
      have or reasonably be expected to result in (i) a material adverse effect on
      the
      legality, validity or enforceability of any Transaction Document, (ii) a
      material adverse effect on the results of operations, assets, business or
      financial condition of the Company and the Subsidiaries, taken as a whole,
      or
      (iii) a material adverse effect on the Company’s ability to perform in any
      material respect on a timely basis its obligations under any Transaction
      Document (any of (i), (ii) or (iii), a “Material
      Adverse Effect”).
      

     

    (c)  Authorization;
      Enforcement.
      The
      Company has the requisite corporate power and authority to enter into and to
      consummate the transactions contemplated by each of the Transaction Documents
      and otherwise to carry out its obligations thereunder. The execution and
      delivery of each of the Transaction Documents by the Company and the
      consummation by it of the transactions contemplated thereby have been duly
      authorized by all necessary corporate action on the part of the Company and
      no
      further action is required by the Company in connection therewith other than
      in
      connection with the Required Approvals. Each Transaction Document has been
      (or
      upon delivery will have been) duly executed by the Company and, when delivered
      in accordance with the terms hereof assuming such Transaction Documents are
      duly
      authorized, executed and delivered by the Purchasers as applicable, will
      constitute the valid and binding obligation of the Company enforceable against
      the Company in accordance with its terms except (i) as limited by general
      equitable principles and applicable bankruptcy, insolvency, reorganization,
      moratorium and other laws of general application affecting enforcement of
      creditors’ rights generally, (ii) as limited by laws relating to the
      availability of specific performance, injunctive relief or other equitable
      remedies and (iii) insofar as indemnification and contribution provisions may
      be
      limited by applicable law. 

     

    (d)  No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated thereby
      do
      not and will not (i) conflict in any material respect with or violate any
      provision of the Company’s articles of incorporation, bylaws, or (ii) conflict
      with, or constitute a default (or an event that with notice or lapse of time
      or
      both would become a default) under, or give to others any rights of termination,
      amendment, acceleration or cancellation (with or without notice, lapse of time
      or both) of, any agreement, credit facility, debt or other instrument
      (evidencing a Company or Subsidiary debt or otherwise) or other understanding
      to
      which the Company or any Subsidiary is a party or by which any property or
      asset
      of the Company or any Subsidiary is bound or affected, or (iii) subject to
      the
      Required Approvals, conflict with or result in a violation of any law, rule,
      regulation, order, judgment, injunction, decree or other restriction of any
      court or governmental authority to which the Company or a Subsidiary is subject
      (including federal and state securities laws and regulations), or by which
      any
      property or asset of the Company or a Subsidiary is bound or affected, or (iv)
      conflict with or violate the terms of any agreement by which the Company or
      any
      Subsidiary is bound or to which any property or asset of the Company or any
      Subsidiary is bound or affected; except in the case of each of clauses (ii),
      (iii) and (iv), such as could not have or reasonably be expected to result
      in a
      Material Adverse Effect.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (e)  Filings,
      Consents and Approvals.
      The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any court
      or
      other federal, state, local or other governmental authority or other Person
      in
      connection with the execution, delivery and performance by the Company of the
      Transaction Documents, other than (i) the filing of any reports with the
      Commission, as mandated by the Exchange Act or the Securities Act, (ii) the
      filing with the Commission of the Registration Statement, (iii) application(s)
      to each applicable Trading Market for the listing of the Shares for trading
      thereon in the time and manner required thereby, and (iv) the filing of Form
      D
      with the Commission and such filings as are required to be made under applicable
      state securities laws, with each of the items listed in clauses (i)-(iv)
      inclusive being deemed a “Required
      Approval”).
      

     

    (f)  Issuance
      of the Securities.
      The
      Preferred Shares and Warrants are duly authorized and, when issued and paid
      for
      in accordance with the Transaction Documents, will be duly and validly issued,
      fully paid and nonassessable, free and clear of all Liens imposed by the Company
      other than as set forth in the Transaction Documents. The Shares, when issued
      in
      accordance with the terms of the Transaction Documents, will be validly issued,
      fully paid and nonassessable, free and clear of all Liens imposed by the
      Company.

     

    (g)  Capitalization.
      The
      capitalization of the Company is as described in the Company’s SEC Reports filed
      with the Commission. The Company has not issued any capital stock since the
      Initial Closing other than pursuant to the exercise of employee stock options
      under the Company’s stock option plans, the issuance of shares of Common Stock
      to employees pursuant to the Company’s employee stock purchase plan and pursuant
      to the conversion or exercise of outstanding Common Stock Equivalents. No Person
      has any right of first refusal, preemptive right, right of participation, or
      any
      similar right to participate in the transactions contemplated by the Transaction
      Documents. Except as a result of the purchase and sale of the Securities, there
      are no outstanding options, warrants, script rights to subscribe to, calls
      or
      commitments of any character whatsoever relating to, or securities, rights
      or
      obligations convertible into or exchangeable for, or giving any Person any
      right
      to subscribe for or acquire, any shares of Common Stock, or contracts,
      commitments, understandings or arrangements by which the Company or any
      Subsidiary is or may become bound to issue additional shares of Common Stock,
      or
      securities or rights convertible or exchangeable into shares of Common Stock,
      other than as set forth in the SEC Reports. The issue and sale of the Securities
      will not obligate the Company to issue shares of Common Stock or other
      securities to any Person (other than the Purchasers) and will not result in
      a
      right of any holder of Company securities to adjust the exercise, conversion,
      exchange or reset price under such securities. All of the outstanding shares
      of
      capital stock of the Company are validly issued, fully paid and nonassessable,
      have been issued in material compliance with all federal and state securities
      laws, and none of such outstanding shares was issued in violation of any
      preemptive rights or similar rights to subscribe for or purchase securities.
      Except with respect to the approvals and authorizations required to increase
      the
      Company’s authorized capital
      to permit issuance of the Shares, no further approval or authorization of any
      stockholder, the Board of Directors of the Company or others is required for
      the
      issuance and sale of the Preferred Shares or the grant of the Warrants or the
      issuance of the Shares upon conversion of the Preferred Stock. With respect
      to
      the Shares issuable upon the exercise of the Warrants, the Company shall
      increase its authorized capital in amount sufficient to provide for the exercise
      of all outstanding Warrants of the Company. Except as disclosed in the SEC
      Reports, there are no stockholders agreements, voting agreements or other
      similar agreements with respect to the Company’s capital stock to which the
      Company is a party or, to the knowledge of the Company, between or among any
      of
      the Company’s stockholders. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    (h)   SEC
      Reports; Financial Statements.
      The
      Company has filed all reports required to be filed by it under the Securities
      Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
      for the two years preceding the date hereof (or such shorter period as the
      Company was required by law to file such material) (the foregoing materials,
      including the exhibits thereto, being collectively referred to herein as the
      “SEC
      Reports”)
      on a
      timely basis or has received a valid extension of such time of filing and has
      filed any such SEC Reports prior to the expiration of any such extension. As
      of
      their respective dates, the SEC Reports, as the same may have been amended,
      complied in all material respects at the time of filing with the requirements
      of
      the Securities Act and the Exchange Act and the rules and regulations of the
      Commission promulgated thereunder, and none of the SEC Reports except to the
      extent amended, updated or superseded by any subsequent filed report, when
      furnished or filed, contained any untrue statement of a material fact or omitted
      to state a material fact required to be stated therein or necessary in order
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading in any material respect. The financial statements of the
      Company included in the SEC Reports, except to the extent amended, updated
      or
      superseded by any subsequent filed report, whether furnished or filed, at the
      time of filing complied in all material respects with applicable accounting
      requirements and the rules and regulations of the Commission with respect
      thereto as in effect at the time of filing. Such financial statements have
      been
      prepared in accordance with generally accepted accounting principles applied
      on
      a consistent basis during the periods involved (“GAAP”),
      except to the extent amended, updated or superseded by and subsequent filed
      report, except as may be otherwise specified in such financial statements or
      the
      notes thereto and except that unaudited financial statements may not contain
      all
      footnotes required by GAAP, and fairly present in all material respects the
      financial position of the Company and its consolidated subsidiaries as of and
      for the dates thereof, except to the extent amended, updated or superseded
      by
      and subsequent filed report, and the results of operations and cash flows for
      the periods then ended, subject, in the case of unaudited statements, to normal,
      immaterial, year-end audit adjustments. 

     

    (i)  Material
      Changes.
      Since
      the date of the filing of the latest audited financial statements included
      within the SEC Reports, except as disclosed in the SEC Reports (i) there has
      been no event, occurrence or development that has had or that could reasonably
      be expected to result in a Material Adverse Effect, (ii) the Company has not
      incurred any liabilities (contingent or otherwise) other than (A) trade payables
      and accrued expenses incurred in the ordinary course of business consistent
      with
      past practice and (B) liabilities required to be reflected in the Company’s
      financial statements pursuant to GAAP or required to be disclosed in filings
      made with the Commission, (iii) the Company has not altered its method of
      accounting, (iv) the Company has not declared or made any dividend or
      distribution of cash or other property, with or without consideration, to its
      stockholders or purchased, redeemed or made any agreements to purchase or redeem
      any shares of its capital stock and (v) the Company has not issued any equity
      securities to any officer, director or Affiliate, except pursuant to existing
      Company stock option plans. Except as disclosed in the SEC Reports, the Company
      does not have pending before the Commission any request for confidential
      treatment of information.

     

    
      
        
        

      

      
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    (j)  Litigation.
      Except
      as disclosed in the SEC Reports, there is no action, suit, inquiry, notice
      of
      violation, proceeding or investigation pending or, to the knowledge of the
      Company, threatened against or affecting the Company, any Subsidiary or any
      of
      their respective properties before or by any court, arbitrator, governmental
      or
      administrative agency or regulatory authority (federal, state, county, local
      or
      foreign) (collectively, an “Action”)
      which
      (i) adversely affects or challenges the legality, validity or enforceability
      of
      any of the Transaction Documents or the Securities or (ii) could, if there
      were
      an unfavorable decision, have or reasonably be expected to result in a Material
      Adverse Effect. Neither the Company nor any Subsidiary, nor to the Company’s
      knowledge, any director or officer thereof, is or has been the subject of any
      Action involving a claim of violation of or liability under federal or state
      securities laws or a claim of breach of fiduciary duty. There has not been,
      and
      to the knowledge of the Company, there is not pending or contemplated, with
      respect to the Company, any investigation by the Commission involving the
      Company or any current or former director or officer of the Company. The
      Commission has not issued any stop order or other order suspending the
      effectiveness of any registration statement filed by the Company or any
      Subsidiary under the Exchange Act or the Securities Act. 

     

    (k)  Compliance.
      Except
      as disclosed in the SEC Reports, neither the Company nor any Subsidiary (i)
      is
      in default under or in violation of (and no event has occurred that has not
      been
      waived that, with notice or lapse of time or both, would result in a default
      by
      the Company or any Subsidiary under), nor has the Company or any Subsidiary
      received notice of a claim that it is in default under or that it is in
      violation of, any indenture, loan or credit agreement or any other agreement
      or
      instrument to which it is a party or by which it or any of its properties is
      bound (whether or not such default or violation has been waived) where the
      effect of such default or violation could be reasonably expected to be a
      Material Adverse Effect, (ii) is in violation of any order of any court,
      arbitrator or governmental body, or (iii) is or has been in violation of any
      statute, rule or regulation of any governmental authority, including without
      limitation all foreign, federal, state and local laws applicable to its business
      except in each case as could not have a Material Adverse Effect.

     

    (l)  Regulatory
      Permits.
      The
      Company possesses all certificates, authorizations and permits issued by the
      appropriate federal, state, local or foreign regulatory authorities necessary
      to
      conduct their respective businesses as described in the SEC Reports, except
      where the failure to possess such permits could not have or reasonably be
      expected to result in a Material Adverse Effect (“Material
      Permits”),
      and
      the Company has not received any notice of proceedings relating to the
      revocation or modification of any Material Permit. 

     

    (m)  Sarbanes-Oxley.
      The
      Company is in material compliance with all provisions of the Sarbanes-Oxley
      Act
      of 2002 which are applicable to it as of the Closing Date. 

     

    
      
        
        

      

      
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    (n)  Certain
      Fees.
      Except
      for fees payable to Monarch Capital Group LLC and Bathgate Capital Partners
      LLC,
      no brokerage or finder’s fees or commissions are or will be payable by the
      Company to any broker, financial advisor or consultant, finder, placement agent,
      investment banker, bank or other Person with respect to the transactions
      contemplated by this Agreement. The Purchasers shall have no obligation with
      respect to any fees or with respect to any claims made by or on behalf of other
      Persons for fees of a type contemplated in this Section that may be due in
      connection with the transactions contemplated by this Agreement. 

     

    (o)  Private
      Placement.
      Assuming the accuracy of each of the Purchasers representations and warranties
      set forth in Section 3.2, no registration under the Securities Act is required
      for the offer and sale of the Securities by the Company to the Purchasers as
      contemplated hereby. The issuance and sale of the Securities hereunder does
      not
      contravene the rules and regulations of the Trading Market. 

     

    (p)  Listing
      and Maintenance Requirements.
      The
      Company’s Common Stock is registered pursuant to Section 12(g) of the Exchange
      Act, and the Company has taken no action designed to, or which to its knowledge
      is likely to have the effect of, terminating the registration of the Common
      Stock under the Exchange Act nor has the Company received any notification
      that
      the Commission is contemplating terminating such registration. Except as
      disclosed in the SEC Reports, the Company has not, in the 12 months preceding
      the date hereof, received notice from any Trading Market on which the Common
      Stock is or has been listed or quoted to the effect that the Company is not
      in
      compliance with the listing or maintenance requirements of such Trading Market.
      

     

    (q)  Disclosure.
      The
      Company understands and confirms that the Purchasers will rely on the foregoing
      representations and covenants in effecting transactions in securities of the
      Company. All disclosure provided to the Purchasers regarding the Company, its
      business and the transactions contemplated hereby, including the Disclosure
      Schedules to this Agreement, furnished by or on behalf of the Company are true
      and correct and do not contain any untrue statement of a material fact or omit
      to state any material fact necessary in order to make the statements made
      therein, in light of the circumstances under which they were made, not
      misleading. 

     

    (r)  General
      Solicitation.
      Neither
      the Company nor, to the Company’s knowledge, any person acting on behalf of the
      Company has offered or sold any of the Units by any form of general solicitation
      or general advertising. To the Company’s knowledge, based upon representations
      by such Purchasers or other investors, the Company has offered the Units for
      sale only to the Purchasers and certain other “accredited investors” within the
      meaning of Rule 501 under the Securities Act. 

     

    3.2.  Representations
      and Warranties of the Purchasers.
      The
      Purchasers acknowledge that the offering of Securities to the Purchasers is
      intended to be exempt from registration under the Securities Act by virtue
      of
      Section 4(2) of the Securities Act and the provisions of Regulation D
      promulgated thereunder, which is in part dependent upon the truth, completeness
      and accuracy of the representations made by the Purchasers in this Agreement.
      Each Purchaser hereby, for itself and for no other Purchaser, represents and
      warrants as of the date hereof and as of the Closing Date to the Company as
      follows:

     

    
      
        
        

      

      
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    (a)  No
      Conflicts.
      The
      execution, delivery and performance of this Agreement and the consummation
      by
      the Purchaser of the transactions contemplated hereby or relating hereto do
      not
      and will not (i) result in a violation of such Purchaser’s charter
      documents or bylaws or (ii) conflict with, or constitute a default (or an
      event which with notice or lapse of time or both would become a default) under,
      or give to others any rights of termination, amendment, acceleration or
      cancellation of any agreement, indenture or instrument to which the Purchaser
      is
      a party, or conflict with, breach or violate any law applicable to the Purchaser
      or its properties (except for such conflicts, defaults and violations as would
      not, individually or in the aggregate, have a Material Adverse Effect on such
      Purchaser). The Purchaser is not required to obtain any consent, authorization
      or order of, or make any filing or registration with, any court or governmental
      agency in order for it to execute, deliver or perform any of such Purchaser’s
      obligations under this Agreement or to purchase the securities from the Company
      in accordance with the terms hereof, provided that for purposes of the
      representation made in this sentence, the Purchaser is assuming and relying
      upon
      the accuracy of the relevant representations and agreements of the Company
      herein.

     

    (b)  Organization;
      Authority.
      If a
      Purchaser is an entity, such Purchaser is an entity duly organized, validly
      existing and in good standing under the laws of the jurisdiction of its
      organization with full right, corporate or partnership power and authority
      to
      enter into and to consummate the transactions contemplated by the Transaction
      Documents and otherwise to carry out its obligations thereunder. The execution,
      delivery and performance by such Purchaser of the transactions contemplated
      by
      this Agreement have been duly authorized by all necessary individual, corporate
      or partnership action on the part of such Purchaser. Each Transaction Document
      to which it is party has been duly executed by such Purchaser, and when
      delivered by such Purchaser in accordance with the terms hereof, will constitute
      the valid and legally binding obligation of such Purchaser, enforceable against
      it in accordance with its terms, except (i) as limited by general equitable
      principles and applicable bankruptcy, insolvency, reorganization, moratorium
      and
      other laws of general application affecting enforcement of creditors’ rights
      generally, (ii) as limited by laws relating to the availability of specific
      performance, injunctive relief or other equitable remedies and (iii) insofar
      as
      indemnification and contribution provisions may be limited by applicable law.
      

     

    (c)  Purchaser’s
      Intent.
      Such
      Purchaser understands that the Securities are “restricted securities” and have
      not been registered under the Securities Act or any applicable state securities
      law and is acquiring the Securities as principal for its own account (this
      representation and warranty not limiting such Purchaser’s right to sell the
      Shares pursuant to the Registration Statement or otherwise in compliance with
      applicable federal and state securities laws and in accordance with the
      Transaction Documents). Such Purchaser is acquiring the Securities hereunder
      in
      the ordinary course of its business. Such Purchaser does not have any agreement
      or understanding, directly or indirectly, with any Person to distribute any
      of
      the Securities. 

     

    (d)  Purchaser
      Status.
      At the
      time such Purchaser was offered the Securities, it was, and at the date hereof
      and as of the Closing Date it is an “accredited investor” as defined in Rule
      501(a) under the Securities Act. Such Purchaser is not required to be registered
      as a broker-dealer under Section 15 of the Exchange Act. Such Purchaser
      understands that such Purchaser’s investment in the Securities being purchased
      from the Company involve a high degree of risk. Such Purchaser understands
      that
      no United States federal or state agency or any other government or governmental
      agency has passed on or made any recommendation or endorsement of the Securities
      being purchased by such Purchaser from the Company. Such Purchaser warrants
      that
      such Purchaser is able to bear the complete loss of such Purchaser’s investment
      in the securities being purchased from the Company.

     

    
      
        
        

      

      
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    (e)  Experience
      of Such Purchaser.
      Such
      Purchaser, either alone or together with its representatives, has such
      knowledge, sophistication and experience in business and financial matters
      so as
      to be capable of evaluating the merits and risks of the prospective investment
      in the Securities, and has so evaluated the merits and risks of such investment.
      Such Purchaser is able to bear the economic risk of an investment in the
      Securities and, at the present time, is able to afford a complete loss of such
      investment. 

     

    (f)  Full
      Access.
      Such
      Purchaser has been given full access to such records of the Company and the
      Subsidiaries and to the officers and directors of the Company (including the
      opportunity to ask questions of and receive answers from such Persons) and
      the
      Subsidiaries as it has deemed necessary or appropriate.

     

    (g)  General
      Solicitation.
      Such
      Purchaser is not purchasing the Securities as a result of any advertisement,
      article, notice or other communication regarding the Securities published in
      any
      newspaper, magazine or similar media or broadcast over television or radio
      or
      presented at any seminar or any other general solicitation or general
      advertisement. 

     

    (h)  Compliance
      with Patriot Act.
      The
      funds utilized by such Purchaser for the purchase of the Securities do not
      violate any provisions of the USA Patriot Act of 2001. 

     

    (i)  Beneficial
      Ownership.
      The
      Purchaser (other than Sun Solunet) and its affiliates do not beneficially own
      more than 4.9% of the Common Stock as of the date hereof. The Purchaser (other
      than Sun Solunet) shall not exercise the Warrants or convert the Preferred
      Shares to the extent that such exercise or conversion would result in beneficial
      ownership by the Purchaser and its affiliates of more than 4.9% of the then
      outstanding number of shares of Common Stock on such date. For the purposes
      of
      this subsection, beneficial ownership shall be determined in accordance with
      Section 13(d) of the Exchange Act, and Regulation 13d-3 promulgated thereunder.
      Notwithstanding the foregoing, such Purchaser, to the extent such purchase
      of
      the Securities causes such Purchaser’s beneficial ownership to exceed 4.9% of
      the outstanding shares of the Company, will qualify for filing on a Schedule
      13D
      under the Exchange Act. 

     

    (j)  Blue
      Sky Compliance.
      Such
      Purchaser shall agree to comply with any state blue sky limitations on the
      resale of the Securities, if any. 

     

    (k)  Certain
      Fees.
      Except
      for fees payable to Monarch Capital Group LLC and Bathgate Capital Partners
      LLC,
      no brokerage or finder’s fees or commissions are or will be payable by the
      Purchasers to any broker, financial advisor or consultant, finder, placement
      agent, investment banker, bank or other Person with respect to the transactions
      contemplated by this Agreement. The Purchasers shall have no obligation with
      respect to any fees or with respect to any claims made by or on behalf of other
      Persons for fees of a type contemplated in this Section that may be due in
      connection with the transactions contemplated by this Agreement.

     

    
      
        
        

      

      
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    (l)  Investment
      Decision.
      The
      Purchaser is making its own investment decision to invest in the Securities
      and
      has not relied on any representation (oral or written other than as set forth
      in
      this Agreement).

     

    (m)  Purchaser
      Questionnaire.
      All
      statements made by the Purchaser in the Purchaser Questionnaire were true and
      correct as of the date thereof and shall remain true and correct as of the
      Closing Date.

     

    ARTICLE
      IV

    OTHER
      AGREEMENTS OF THE PARTIES 

     

    4.1.  Transfer
      Restrictions.
      The
      Securities may only be disposed of in compliance with state and federal
      securities laws. In connection with any transfer of Securities other than
      pursuant to an effective registration statement or Rule 144, to the Company,
      to
      an Affiliate of a Purchaser or in connection with a pledge as contemplated
      in
      Section 4.1(a), the Company may require the transferor thereof to provide to
      the
      Company an opinion of counsel selected by the transferor, the form and substance
      of which opinion shall be reasonably satisfactory to the Company, to the effect
      that such transfer does not require registration of such transferred Securities
      under the Securities Act. As a condition of transfer, any such transferee shall
      agree in writing to be bound by the applicable terms of this Agreement and
      shall
      have the rights of a Purchaser under this Agreement, the Certificate of
      Designations and the Registration Rights Agreement. 

     

    (a)  The
      Purchasers agree to the imprinting, so long as is required by this Section
      4.1(a), of a legend on any of the Securities in the following form: THESE
      SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
      OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      TO
      SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
      COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL
      INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE
      SECURITIES ACT. 

     

    So
      long
      as any pledgee, secured party or transferee provides a questionnaire to the
      Company demonstrating to the Company that such pledgee or transferee is an
      “accredited investor,” the Company acknowledges and agrees that a Purchaser may
      from time to time pledge pursuant to a bona fide margin agreement with a
      registered broker-dealer or grant a security interest in some or all of the
      Securities to a financial institution that is an “accredited investor” as
defined
      in Rule 501(a) under the Securities Act and, if required under the terms of
      such
      arrangement, such Purchaser may transfer pledged or secured Securities to the
      pledgees or secured parties. Such a pledge or transfer would not be subject
      to
      approval of the Company and no legal opinion of legal counsel of the pledgee,
      secured party or pledgor shall be required in connection therewith. Further,
      no
      notice shall be required of such pledge. At the appropriate Purchaser’s expense,
      the Company will execute and deliver such reasonable documentation as a pledgee
      or secured party of Securities may reasonably request in connection with a
      pledge or transfer of the Securities, including, if the Securities are subject
      to registration pursuant to the Registration Rights Agreement, the preparation
      and filing of any required prospectus supplement under Rule 424(b)(3) under
      the
      Securities Act or other applicable provision of the Securities Act to
      appropriately amend the list of Selling Stockholders thereunder. 

     

    
      
        
        

      

      
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    (b)  Certificates
      evidencing the Shares shall not contain any legend (including the legend set
      forth in Section 4.1(a)), (i) while a registration statement (including the
      Registration Statement) covering the resale of such security is effective under
      the Securities Act, or (ii) following any sale of such Shares pursuant to Rule
      144, or (iii) if such Shares are eligible for sale under Rule 144(k) and a
      request for the removal has been provided in writing by the Purchasers to the
      Company, or (iv) if such legend is not required under applicable requirements
      of
      the Securities Act (including judicial interpretations and pronouncements issued
      by the Staff of the Commission) and a request for the removal has been provided
      in writing by the Purchasers to the Company. The Company shall cause its counsel
      to issue a legal opinion to the Company’s transfer agent promptly after the
      Effective Date if required by the Company’s transfer agent to effect the removal
      of the legend hereunder with respect to the Shares registered thereunder,
      subject to any state blue sky law limitations. If any Preferred Shares are
      converted or if all or any portion of a Warrant is exercised at a time when
      there is an effective registration statement to cover the resale of the Shares
      for which the Preferred Shares are converted or the applicable portion of the
      Warrant has been exercised, such Shares shall be issued free of all legends.
      The
      Company agrees that following the Effective Date or at such time as such legend
      is no longer required under this Section 4.1(b), it will, no later than five
      Trading Days following the delivery by a Purchaser to the Company or the
      Company’s transfer agent of a certificate representing Shares issued with a
      restrictive legend, deliver or cause to be delivered to such Purchaser a
      certificate representing such Securities that is free from all restrictive
      and
      other legends. The Company may not make any notation on its records or give
      instructions to any transfer agent of the Company that enlarge the restrictions
      on transfer set forth in this Section. 

     

    (c)  Each
      Purchaser, severally and not jointly with the other Purchasers, agrees that
      the
      removal of the restrictive legend from certificates representing Securities
      as
      set forth in this Section 4.1 is predicated upon the Company’s reliance that
      such Purchaser will sell any Securities pursuant to either the registration
      requirements of the Securities Act, including any applicable prospectus delivery
      requirements, or an exemption therefrom. 

     

    4.2.  Furnishing
      of Information.
      As long
      as any Purchaser owns Securities, the Company covenants to timely file (or
      obtain extensions in respect thereof and file within the applicable grace
      period) all reports required to be filed by the Company after the date hereof
      pursuant to the Exchange Act. As long as any Purchaser owns Securities, if
      the
      Company is not required to file reports pursuant to such laws, it will prepare
      and furnish to the Purchasers and make publicly available in accordance with
      Rule 144(c) such information as is required for the Purchasers to sell the
      Securities under Rule 144 to the extent Rule 144 is available for such sale.
      The
      Company further covenants that it will take such further reasonable action
      as
      any holder of Securities may reasonably request, to the extent required from
      time to time to enable such Person to sell such Securities without registration
      under the Securities Act within the limitation of the exemptions provided by
      Rule 144.

     

    
      
        
        

      

      
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    4.3.  Integration.
      The
      Company shall not sell, offer for sale or solicit offers to buy or otherwise
      negotiate in respect of any security (as defined in Section 2 of the Securities
      Act) that (X) would be integrated with the offer or sale of the Securities
      in a
      manner that would require the registration under the Securities Act of the
      sale
      of the Securities to the Purchasers or (Y) that would be integrated with the
      offer or sale of the Securities for purposes of the rules and regulations of
      any
      Trading Market such that it would require shareholder approval prior to the
      closing of such other transaction unless such shareholder approval is obtained
      before the closing of such subsequent transaction.

     

    4.4.  Shareholders
      Rights Plan.
      Except
      as set forth in the Disclosure Schedule, no claim will be made or enforced
      by
      the Company or, to the knowledge of the Company, any other Person that any
      Purchaser is an “Acquiring Person” under any shareholders rights plan or similar
      plan or arrangement in effect or hereafter adopted by the Company, or that
      any
      Purchaser could be deemed to trigger the provisions of any such plan or
      arrangement, by virtue of receiving Securities under the Transaction Documents
      or under any other agreement between the Company and the Purchasers.

     

    4.5.  Non-Public
      Information.
      The
      Purchasers (other than Sun Solunet) have all executed a written agreement with
      the Company regarding the confidentiality and use of any information provided
      to
      the Purchasers (other than Sun Solunet) by the Company that constitutes material
      non-public information. Except for the power-point presentation made to the
      Purchasers (other than Sun Solunet) by the Company and any information covered
      by the aforementioned confidentiality agreement, each Purchaser (other than
      Sun
      Solunet) acknowledges and the Company confirms that neither the Company nor,
      to
      its knowledge, any other person acting on the Company’s behalf, has provided any
      of the Purchasers (other than Sun Solunet) or their agents or counsel with
      any
      other information that constitutes material, non-public information.

     

    4.6.  Use
      of
      Proceeds.
      The
      Company shall use the net proceeds from the sale of the Securities (excluding
      amounts paid by the Company for legal and administrative fees in connection
      with
      the sale of the Securities) hereunder for the paydown or payoff of outstanding
      debt, including some of the outstanding amounts owed to Sun Solunet, working
      capital and general corporate purposes. 

     

    4.7.  Reimbursement.
      If any
      Purchaser becomes involved in any capacity in any Proceeding by or against
      any
      Person who is a stockholder of the Company (except as a result of sales,
      pledges, margin sales and similar transactions by such Purchaser to or with
      any
      current stockholder), solely as a result of such Purchaser’s acquisition of the
      Securities under this Agreement, the Company will reimburse such Purchaser
      for
      its reasonable legal and other expenses (including the cost of any investigation
      preparation and travel in connection therewith) incurred in
      connection therewith,
      as such expenses are incurred. The reimbursement obligations of the Company
      under this  paragraph shall be in addition to any liability which the
      Company may otherwise have, shall extend upon the same terms and conditions
      to
      any Affiliates of the Purchasers who are actually named in such action,
      proceeding or investigation, and partners, directors, agents, employees and
      controlling persons (if any), as the case may be, of the Purchasers and any
      such
      Affiliate, and shall be binding upon and inure to the benefit of any successors,
      assigns, heirs and personal representatives of the Company, the Purchasers
      and
      any such Affiliate and any such Person. The Company also agrees that neither
      the
      Purchasers nor any such Affiliates, partners, directors, agents, employees
      or
      controlling persons shall have any liability to the Company or any Person
      asserting claims on behalf of or in right of the Company solely as a result
      of
      acquiring the Securities under this Agreement. 

     

    
      
        
        

      

      
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    4.8.  Indemnification
      of Purchasers.
      The
      Company will indemnify and hold the Purchasers and their directors, officers,
      shareholders, partners, employees and agents (each, a “Purchaser
      Party”)
      harmless from any and all losses, liabilities, obligations, claims,
      contingencies, damages, costs and expenses, including all judgments, amounts
      paid in settlements, court costs and reasonable attorneys’ fees and costs of
      investigation that any such Purchaser Party may suffer or incur as a result
      of
      or relating to: (a) any misrepresentation, breach or inaccuracy of any of the
      representations, warranties, covenants or agreements made by the Company in
      this
      Agreement or in the other Transaction Documents; or (b) any cause of action,
      suit or claim brought or made against such Purchaser Party and arising solely
      out of or solely resulting from the execution, delivery, performance or
      enforcement of this Agreement or any of the other Transaction Documents and
      without causation by any other activity, obligation, condition or liability
      pertaining to such Purchaser. The Company will reimburse such Purchaser for
      its
      reasonable legal and other expenses (including the cost of any investigation,
      preparation and travel in connection therewith) incurred in connection
      therewith, as such expenses are incurred; provided, however, that absent an
      actual conflict of interest with respect to all Purchasers involved in any
      such
      matter for which indemnification claim is made hereunder, the Company shall
      pay
      only one reasonable counsel fee for the representation of all Purchasers in
      such
      matter.

     

    4.9.  Reservation
      of Common Stock.
      As of
      the date hereof, the Company has reserved and the Company shall continue to
      reserve and keep available at all times, free of preemptive rights, 50,000,000
      shares of Common Stock for the purpose of enabling the Company to issue Shares.
      The Company shall increase its authorized capital in an amount sufficient to
      provide for the conversion of all the Preferred Stock and exercise of all of
      the
      outstanding Warrants of the Company. Until such time as the Company has so
      increased its authorized capital, each Purchaser shall each be entitled to
      convert the Preferred Stock and exercise the Warrants held by them on a pro
      rata
      basis with the other Purchasers, weighted on the basis of the respective
      Subscription Amounts paid to the Company by each Purchaser. 

     

    4.10.  Listing
      of Common Stock.
      The
      Company hereby agrees to use commercially reasonably efforts to maintain the
      listing or quotation of the Common Stock on the Trading Market, and as soon
      as
      reasonably practicable following the Closing (but not later than the earlier
      of
      the Effective Date and the first anniversary of the Closing Date) to list all
      of
      the Shares on the Trading Market. The Company further agrees, if the Company
      applies to have the Common Stock traded on any other Trading Market, it will
      include in such application all of the Shares, and will take such other action
      as is necessary to cause all of the Shares to be listed or quoted on such other
      Trading Market as promptly as possible. The Company will take all action
      reasonably necessary to continue the listing and/or quotation and trading of
      its
      Common Stock on a Trading Market and will comply in all respects with the
      Company’s reporting, filing and other obligations under the bylaws or rules of
      the Trading Market.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    4.11.  Equal
      Treatment of Purchasers.
      Following the execution and delivery of this Agreement by the parties hereto,
      no
      consideration shall be offered or paid to any person to amend or consent to
      a
      waiver or modification of any provision of any of the Transaction Documents
      unless the same consideration is also offered to all of the parties to the
      Transaction Documents. For clarification purposes, this provision constitutes
      a
      separate right granted to each Purchaser by the Company and negotiated
      separately by each Purchaser, and is intended to treat for the Company the
      Purchasers as a class and shall not in any way be construed as the Purchasers
      acting in concert or as a group with respect to the purchase, disposition or
      voting of Securities or otherwise. 

     

    4.12.  No
      Net
      Short Position.
      Each
      Purchaser agrees, severally and not jointly with any other Purchasers, that
      they
      or any Person acting at the request or direction of Purchaser, nor any
      Affiliate, will not enter into any Short Sales (as hereinafter defined) from
      the
      period commencing on the Closing Date and ending on the date that such Purchaser
      no longer holds any Shares. For purposes of this Section 4.12, a “Short
      Sale”
by
      any
      Purchaser shall mean a sale of Common Stock by such Purchaser that is marked
      as
      a short sale and that is made at a time when there is no equivalent offsetting
      long position in Common Stock held by such Purchaser. For purposes of
      determining whether there is an equivalent offsetting long position in Common
      Stock held by the Purchaser, Shares that have not yet been converted or
      exercised pursuant to the Certificate of Designations or the Warrants shall
      be
      deemed to be held long by the Purchaser, and the amount of shares of Common
      Stock held in a long position shall be all Shares held by such Purchaser on
      such
      date, plus any shares of Common Stock otherwise then held by such Purchaser.
      Additionally, each Purchaser understands and acknowledges, severally and not
      jointly with any other Purchaser, that the Commission currently takes the
      position that coverage of short sales of shares of the Common Stock “against the
      box” prior to the Effective Date of the Registration Statement with the Shares
      purchased hereunder is a violation of Section 5 of the Securities Act, as set
      forth in Item 65, Section 5 under Section A, of the Manual of Publicly Available
      Telephone Interpretations, dated July 1997, compiled by the Office of Chief
      Counsel, Division of Corporation Finance. Accordingly, each Purchaser hereby
      agrees not to use any of the Shares to directly cover any short sales made
      prior
      to the Effective Date. 

     

    4.13.  Corporate
      Existence; Conflicting Agreements.
      The
      Company will take all steps necessary to preserve and continue the corporate
      existence of the Company to the extent that failure to so preserve and continue
      the corporate existence of the Company would restrict or impair the right or
      ability of the Company or any successor to perform any of its obligations under
      this Agreement or any of the other agreements attached as exhibits hereto.
      The
      Company shall not enter into any agreement, the terms of which agreement would
      restrict or impair the right or ability of the Company or any successor to
      perform any of its obligations under this Agreement or any of the other
      agreements attached as exhibits hereto.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    4.14.  Lock-Up
      Agreement.
      The
      Company has caused the officers and inside directors that are employees of
      the
      Company to execute a lock-up agreement hereto restricting such Persons from
      selling any shares of Common Stock for a one-year period commencing on the
      date
      of the Initial Purchase Agreement. 

     

    ARTICLE
      V

    MISCELLANEOUS
      

     

    5.1.  Fees
      and Expenses.
      Except
      with respect to the reasonable fees and expenses of Sun Solunet, which have
      been
      paid by the Company, each party shall pay the fees and expenses of its advisers,
      counsel, accountants and other experts, if any, and all other expenses incurred
      by such party incident to the negotiation, preparation, execution, delivery
      and
      performance of this Agreement. The Company shall pay all stamp and other taxes
      and duties levied in connection with the sale of the Securities. 

     

    5.2.  Entire
      Agreement.
      The
      Transaction Documents, together with the exhibits and schedules thereto, contain
      the entire understanding of the parties with respect to the subject matter
      hereof and supersede and void all prior agreements and understandings, oral
      or
      written, with respect to such matters, which the parties acknowledge have been
      merged into such documents, exhibits and schedules. 

     

    5.3.  Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (a) the date of transmission, if such notice or communication
      is delivered (receipt confirmed) via facsimile at the facsimile number set
      forth
      on the signature pages attached hereto prior to 6:30 p.m. (New York City time)
      on a Trading Day, (b) the next Trading Day after the date of transmission,
      if
      such notice or communication is delivered (receipt confirmed) via facsimile
      at
      the facsimile number set forth on the signature pages attached hereto on a
      day
      that is not a Trading Day or later than 6:30 p.m. (New York City time) on any
      Trading Day, (c) the second Trading Day following the date of deposit with
      a
      carrier or service, if sent by U.S. nationally recognized overnight carrier
      or
      courier service, or (d) upon actual receipt by the party to whom such notice
      is
      required to be given. The address for such notices and communications shall
      be
      as set forth on the signature pages attached hereto. 

     

    5.4.  Amendments;
      Waivers.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed, in the case of an amendment, by the Company and each
      Purchaser or, in the case of a waiver, by the party against whom enforcement
      of
      any such waiver is sought. No waiver of any default with respect to any
      provision, condition or requirement of this Agreement shall be deemed to be
      a
      continuing waiver in the future or a waiver of any subsequent default or a
      waiver of any other provision, condition or requirement hereof (unless it so
      provides by its terms), nor shall any delay or omission of either party to
      exercise any right hereunder in any manner impair the exercise of any such
      right. 

     

    5.5.  Construction.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof. The language used in this Agreement will be deemed to be the language
      chosen by the parties to express their mutual intent, and no rules of strict
      construction will be applied against any party.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    5.6.  Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. The Company may not assign this
      Agreement or any rights or obligations hereunder without the prior written
      consent of each Purchaser. Any Purchaser may assign any or all of its rights
      under this Agreement to any Person to whom such Purchaser assigns or transfers
      any Securities, provided such transferee agrees in writing to be bound, with
      respect to the transferred Securities, by the provisions hereof that apply
      to
      the “Purchasers”. 

     

    5.7.  No
      Third-Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person, except as otherwise set
      forth
      in Section 4.8. 

     

    5.8.  Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of the Transaction Documents shall be governed by and construed and enforced
      in
      accordance with the internal laws of the State of New York, without regard
      to
      the principles of conflicts of law thereof. Each party agrees that all legal
      proceedings concerning the interpretations, enforcement and defense of the
      transactions contemplated by this Agreement and any other Transaction Documents
      (whether brought against a party hereto or its respective affiliates, directors,
      officers, shareholders, employees or agents) shall be commenced exclusively
      in
      the state and federal courts sitting in the City of New York. Each party hereto
      hereby irrevocably submits to the exclusive jurisdiction of the state and
      federal courts sitting in the City of New York, New York for the adjudication
      of
      any dispute hereunder or in connection herewith or with any transaction
      contemplated hereby or discussed herein (including with respect to the
      enforcement of any of the Transaction Documents), and hereby irrevocably waives,
      and agrees not to assert in any suit, action or proceeding, any claim that
      it is
      not personally subject to the jurisdiction of any such court, that such suit,
      action or proceeding is improper. Each party hereto hereby irrevocably waives
      personal service of process and consents to process being served in any such
      suit, action or proceeding by delivering a copy thereof via overnight delivery
      (with evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute good
      and sufficient service of process and notice thereof. Nothing contained herein
      shall be deemed to limit in any way any right to serve process in any manner
      permitted by law. Each party hereto (including its affiliates, agents, officers,
      directors and employees) hereby irrevocably waives, to the fullest extent
      permitted by applicable law, any and all right to trial by jury in any legal
      proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby. If either party shall commence an action or proceeding
      to
      enforce any provisions of a Transaction Document, then the prevailing party
      in
      such action or proceeding, as determined by the court hearing such matter,
      shall
      be reimbursed by the other party for its reasonable attorneys’ fees and other
      costs and expenses incurred with the investigation, preparation and prosecution
      of such action or proceeding. 

     

    5.9.  Survival.
      The
      representations and warranties herein shall survive the Closing and delivery
      of
      the Preferred Shares, the Warrants and the Shares. 

     

    5.10.  Execution.
      This
      Agreement may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that all parties need not sign the same
counterpart.
      In the event that any signature is delivered by facsimile transmission, such
      signature shall create a valid and binding obligation of the party executing
      (or
      on whose behalf such signature is executed) with the same force and effect
      as if
      such facsimile signature page were an original thereof.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    5.11.  Severability.
      If any
      provision of this Agreement is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired thereby and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefor, and upon so agreeing, shall incorporate such
      substitute provision in this Agreement. 

     

    5.12.  Replacement
      of Securities.
      If any
      certificate or instrument evidencing any Securities is mutilated, lost, stolen
      or destroyed, the Company shall issue or cause to be issued in exchange and
      substitution for and upon cancellation thereof, or in lieu of and substitution
      therefor, a new certificate or instrument, but only upon receipt of evidence
      reasonably satisfactory to the Company of such loss, theft or destruction and
      customary and reasonable indemnity, if requested. The applicants for a new
      certificate or instrument under such circumstances shall also pay any reasonable
      third-party costs associated with the issuance of such replacement Securities.
      

     

    5.13.  Remedies.
      In
      addition to being entitled to exercise all rights provided herein or granted
      by
      law, including recovery of damages, each of the Purchasers and the Company
      will
      be entitled to specific performance under the Transaction Documents. The parties
      agree that monetary damages may not be adequate compensation for any loss
      incurred by reason of any breach of obligations described in the foregoing
      sentence and hereby agrees to waive in any action for specific performance
      of
      any such obligation the defense that a remedy at law would be adequate.

     

    5.14.  Independent
      Nature of Purchasers’ Obligations and Rights.
      The
      obligations of each Purchaser under any Transaction Document are several and
      not
      joint with the obligations of any other Purchaser, and no Purchaser shall be
      responsible in any way for the performance of the obligations of any other
      Purchaser under any Transaction Document. Nothing contained herein or in any
      Transaction Document, and no action taken by any Purchaser pursuant thereto,
      shall be deemed to constitute the Purchasers as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Purchasers are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated by the Transaction Document. Each
      Purchaser shall be entitled independently to protect and enforce its rights,
      including without limitation, the rights arising out of this Agreement or out
      of
      the other Transaction Documents, and it shall not be necessary for any other
      Purchaser to be joined as an additional party in any proceeding for such
      purpose. Each Purchaser has been or has had the opportunity to be represented
      by
      its own separate legal counsel in its review and negotiation of the Transaction
      Documents. The Company has elected to provide all Purchasers with the same
      terms
      and Transaction Documents for the convenience of the Company and not because
      it
      was required or requested to do so by the Purchasers. 

     

    [Signature
      Pages Follow]

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
      Agreement to be duly executed by their respective authorized signatories as
      of
      the date first indicated above. 

     

    SAN
      HOLDINGS, INC.

    

    

    By:_______________________________________

        Name:

        Title:

    

    Address
      for Notice:

    

    If
      to
      SAN Holdings, Inc.:

    

    9800
      Pyramid Court

    Suite
      130

    Englewood,
      CO 80112

    Attention:
      John Jenkins or Robert Ogden

    

    With
      a
      copy to:

    

    Kutak
      Rock LLP

    1801
      California Street

    Suite
      3100

    Denver,
      CO 80202

    Facsimile
      No.: (303) 292-7799

    Attention:
      Joshua Kerstein, Esq.

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOR PURCHASERS FOLLOW]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    [FORM
      OF
      PURCHASER SIGNATURE PAGE; 

    EXECUTED
      SIGNATURE PAGES INTENTIONALLY OMITTED]

     

    [PURCHASER
      SIGNATURE PAGES SECURITIES PURCHASE AGREEMENT] 

     

    

     

        IN
      WITNESS
      WHEREOF, the undersigned have caused this Securities Purchase Agreement to
      be
      duly executed by their respective authorized signatories as of the date first
      indicated above. 

     

    

     

    Name
      of
      Investing Entity:
      ________________________________________________________

     

    Signature
      of Authorized Signatory of Investing Entity:
      _________________________________

     

    Name
      of
      Authorized Signatory:
      ____________________________________________________

     

    Title
      of
      Authorized Signatory:
      _____________________________________________________

     

    Email
      Address of Authorized Entity:
      ________________________________________________

     

    Address
      for Notice of Investing Entity: 

     

    

     

    Address
      for Delivery of Securities for Investing Entity (if not same as above):

     

    

     

    Subscription
      Amount:

     

    Units:

     

    Preferred
      Shares:

     

    $0.30
      Warrants:

    $0.50
      Warrants:

     

    EIN
      Number: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    DISCLOSURE
      SCHEDULES

     

    

     

    [Intentionally
      Omitted]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    Form
      of Certificate of Designations of Series A Preferred Stock

     

    

     

    

     

    [INTENTIONALLY
      OMITTED; Incorporated by reference to Exhibit A of Exhibit 10.01 to the
      Company’s Current Report on Form 8-K filed March 8, 2006]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    Form
      of Escrow Agreement

     

    

     

    

     

    

     

    [INTENTIONALLY
      OMITTED; Incorporated by reference to Exhibit B of Exhibit 10.01 to the
      Company’s Current Report on Form 8-K filed March 8, 2006]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      C

     

    Form
      of Registration Rights Agreement

     

    

     

    

     

    [INTENTIONALLY
      OMITTED; Incorporated by reference to Exhibit C of Exhibit 10.1 to the Company’s
      Current Report on Form 8-K filed March 8, 2006 except for the signature page
      which follows]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        [PURCHASER’S
          SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT] 

         

        IN
          WITNESS WHEREOF, the undersigned has executed this Registration Rights
          Agreement
          as of the date first written above in connection with the Securities Purchase
          Agreement between the Company and the Purchasers dated as of even date
          and, by
          executing this Registration Rights Agreement, the Purchaser acknowledges
          and
          agrees that the reference to the receipt of funds by the Company in clause
          (a)
          of the definition of “Effectiveness Date” means the date of the receipt of funds
          by the Company from the undersigned Purchaser. 

         

        Name
          of
          Investing Entity: 

         

        ______________________________________________________

         

        Signature
          of Authorized Signatory of Investing entity: 

         

        ______________________________________________________

         

        Name
          of
          Authorized Signatory: 

         

        ______________________________________________________
          

         

        Title
          of
          Authorized Signatory: 

         

        ______________________________________________________

         

        Date
          of
          Execution:

         

        ______________________________________________________

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

    

    Exhibit
      D 

     

    Form
      of $0.30 Warrant

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      Warrant
        Number WA-[A][B]- ____

       

      NEITHER
        THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
        HAVE
        BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
        COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
        THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
        MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
        STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
        FROM,
        OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
        SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
        EVIDENCED, IF REQUESTED, BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
        REASONABLY ACCEPTABLE TO THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF WHICH
        SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED
        IN
        CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER
        OR
        OTHER BONA FIDE LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
        INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES
        ACT.

       

      COMMON
        STOCK PURCHASE WARRANT 

       

      To
        Purchase _________________Shares of Common Stock of

       

      SAN
        HOLDINGS, INC.

       

      THIS
        COMMON STOCK PURCHASE WARRANT (the “Warrant”)
        CERTIFIES that, for value received, [______________] (the “Holder”),
        is
        entitled, upon the terms and subject to the limitations on exercise and the
        conditions hereinafter set forth, at any time on or after the date of issuance
        of this Warrant (the “Initial
        Exercise Date”)
        and on
        or prior to the five year anniversary of the Initial Exercise Date (the
“Termination
        Date”)
        but
        not thereafter, to subscribe for and purchase from San Holdings, Inc., a
        Colorado corporation (the “Company”),
        up to
        [_____________________] shares (the “Warrant
        Shares”)
        of
        Common Stock, no par value per share, of the Company (the “Common
        Stock”).
        The
        purchase price of one share of Common Stock (the “Exercise
        Price”)
        under
        this Warrant shall be [$0.30/$0.50], subject to adjustment hereunder. The
        Exercise Price and the number of Warrant Shares for which the Warrant is
        exercisable shall be subject to adjustment as provided herein. Capitalized
        terms
        used and not otherwise defined herein shall have the meanings set forth in
        that
        certain Securities Purchase Agreement (the “Purchase
        Agreement”),
        dated
        April 18, 2006, among the Company and the purchasers signatory thereto.

       

      1.  Title
        to Warrant.
        Prior
        to the Termination Date and subject to compliance with applicable laws and
        Section 7 of this Warrant, this Warrant and all rights hereunder are
        transferable, in whole or in part, at the office or agency of the Company
        by the
        Holder in person or by duly authorized attorney, upon surrender of this Warrant
        together with the Assignment Form annexed hereto properly endorsed. The
        transferee shall sign an investment letter in form and substance reasonably
        satisfactory to the Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.  Authorization
        of Shares.
        The
        Company covenants that all Warrant Shares which may be issued upon the exercise
        of the purchase rights represented by this Warrant will, upon exercise of
        the
        purchase rights represented by this Warrant, be duly authorized, validly
        issued,
        fully paid and nonassessable and free from all taxes, liens and charges in
        respect of the issue thereof (other than taxes in respect of any transfer
        occurring contemporaneously with such issue). 

       

      3.  Exercise
        of Warrants.

       

      (a)  Exercise
        of the purchase rights represented by this Warrant may be made at any time
        or
        times on or after the Initial Exercise Date and on or before the Termination
        Date by delivery to the Company of the Notice of Exercise Form, surrender
        of
        this Warrant and payment of the aggregate Exercise Price (or such other office
        or agency of the Company as it may designate by notice in writing to the
        registered Holder at the address of such Holder appearing on the books of
        the
        Company). Certificates for shares purchased hereunder shall be delivered
        to the
        Holder within five (5) Trading Days from the delivery to the Company of the
        Notice of Exercise Form, surrender of this Warrant and payment of the aggregate
        Exercise Price as set forth above (“Warrant
        Share Delivery Date”).
        This
        Warrant shall be deemed to have been exercised on the date the Exercise Price
        is
        received by the Company. The Warrant Shares shall be deemed to have been
        issued,
        and Holder or any other person so designated to be named therein shall be
        deemed
        to have become a holder of record of such shares for all purposes, as of
        the
        date the Warrant has been exercised by payment to the Company of the Exercise
        Price and all taxes required to be paid by the Holder, if any, pursuant to
        Section 5 prior to the issuance of such shares, have been paid in full. If
        the
        Company fails to deliver to the Holder a certificate or certificates
        representing the Warrant Shares or indicating the issuance of such Warrant
        Shares on the stock ledger of the Company maintained by the Company or its
        transfer agent pursuant to this Section 3(a) by the Warrant Share Delivery
        Date,
        then the Holder will have the right to rescind such exercise. 

       

      (b)  If
        this
        Warrant shall have been exercised in part, the Company shall, at the time
        of
        delivery of the certificate or certificates representing Warrant Shares,
        deliver
        to Holder a new Warrant evidencing the rights of Holder to purchase the
        unpurchased Warrant Shares called for by this Warrant, which new Warrant
        shall
        in all other respects be identical with this Warrant. 

       

      (c)  If
        at any
        time after one year from the date of issuance of this Warrant there is no
        effective Registration Statement registering the resale of the Warrant Shares
        by
        the Holder, this Warrant may also be exercised at such time by notice delivered
        to the Company by means of a “cashless exercise” in which the Holder shall be
        entitled to receive a certificate for the number of Warrant Shares equal
        to the
        quotient obtained by dividing [(A-B) (X)] by (A), where: 

       

      (A)
        = the
        closing price on the Trading Day immediately preceding the date of such
        election; 

       

      (B)
        = the
        Exercise Price of this Warrant, as adjusted; and

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
         

        (X)
          = the
          number of Warrant Shares issuable upon exercise of this Warrant in accordance
          with the terms of this Warrant by means of a cash exercise rather than
          a
          cashless exercise.

         

      

      (d)  Except
        with respect to Sun Solunet, LLC, the Holder shall not be entitled to exercise
        this Warrant into shares of Common Stock that would result in beneficial
        ownership by the Holder and its affiliates of more than 4.9% of the then
        outstanding number of shares of Common Stock on such date. For the purposes
        of
        the immediately preceding sentence, beneficial ownership shall be determined
        in
        accordance with Section 13(d) of the Securities Exchange Act of 1934, as
        amended, and Regulation 13d-3 promulgated thereunder. 

       

      4.  No
        Fractional Shares or Scrip.
        No
        fractional shares or scrip representing fractional shares shall be issued
        upon
        the exercise of this Warrant. As to any fraction of a share which Holder
        would
        otherwise be entitled to purchase upon such exercise, the Company shall pay
        a
        cash adjustment in respect of such final fraction in an amount equal to such
        fraction multiplied by the Exercise Price. 

       

      5.  Charges,
        Taxes and Expenses.
        Issuance of certificates for Warrant Shares shall be made without charge
        to the
        Holder for any issue or transfer tax or other incidental expense in respect
        of
        the issuance of such certificate, all of which taxes and expenses shall be
        paid
        by the Company, and such certificates shall be issued in the name of the
        Holder
        or in such name or names as may be directed by the Holder; provided, however,
        that in the event certificates for Warrant Shares are to be issued in a name
        other than the name of the Holder, this Warrant when surrendered for exercise
        shall be accompanied by the Assignment Form attached hereto and an investment
        letter duly executed by the Holder in form and substance reasonably acceptable
        to the Company; and the Company may require, as a condition thereto, the
        payment
        of a sum sufficient to reimburse it for any transfer tax incidental thereto.
        

       

      6.  Closing
        of Books.
        The
        Company will not close its stockholder books or records in any manner which
        prevents the timely exercise of this Warrant, pursuant to the terms hereof.
        

       

      7.  Transfer,
        Division and Combination.
        

       

      (a)  Subject
        to compliance with any applicable securities laws and the conditions set
        forth
        in Sections 1 and 7(e) hereof and to the provisions of Section 4.1 of the
        Purchase Agreement, this Warrant and all rights hereunder are transferable,
        in
        whole or in part, upon surrender of this Warrant at the principal office
        of the
        Company, together with a written assignment of this Warrant substantially
        in the
        form attached hereto duly executed by the Holder or its agent or attorney
        and
        funds sufficient to pay any transfer taxes payable upon the making of such
        transfer. Upon such surrender and, if required, such payment, the Company
        shall
        execute and deliver a new Warrant or Warrants in the name of the assignee
        or
        assignees and in the denomination or denominations specified in such instrument
        of assignment, and shall issue to the assignor a new Warrant evidencing the
        portion of this Warrant not so assigned, and this Warrant shall promptly
        be
        cancelled. A Warrant, if properly assigned, may be exercised by a new holder
        for
        the purchase of Warrant Shares without having a new Warrant issued.

       

      (b)  This
        Warrant may be divided or combined with other Warrants upon presentation
        hereof
        at the aforesaid office of the Company, together with a written notice
        specifying the names and denominations in which  new Warrants are to
        be issued, signed by the Holder or its agent or attorney. Subject to compliance
        with Section 7(a), as to any transfer which may be involved in such division
        or
        combination, the Company shall execute and deliver a new Warrant or Warrants
        in
        exchange for the Warrant or Warrants to be divided or combined in accordance
        with such notice. 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      (c)  The
        Company shall prepare, issue and deliver at its own expense (other than transfer
        taxes) the new Warrant or Warrants under this Section 7. 

       

      (d)  The
        Company agrees to maintain, at its aforesaid office, books for the registration
        and the registration of transfer of the Warrants. 

       

      (e)  If,
        at
        the time of the surrender of this Warrant in connection with any transfer
        of
        this Warrant, the transfer of this Warrant shall not be registered pursuant
        to
        an effective registration statement under the Securities Act and under
        applicable state securities or blue sky laws, the Company may require, as
        a
        condition of allowing such transfer (i) that the Holder or transferee of
        this
        Warrant, as the case may be, furnish to the Company a written opinion of
        counsel
        (which opinion shall be in form, substance and scope customary for opinions
        of
        counsel in comparable transactions) to the effect that such transfer may
        be made
        without registration under the Securities Act and under applicable state
        securities or blue sky laws, (ii) that the holder or transferee execute and
        deliver to the Company an investment letter in form and substance acceptable
        to
        the Company and (iii) that the transferee be an “accredited investor” as defined
        in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated under the
        Securities Act or a qualified institutional buyer as defined in Rule 144A(a)
        under the Securities Act. 

       

      8.  No
        Rights as Shareholder until Exercise.
        This
        Warrant does not entitle the Holder to any voting rights or other rights
        as a
        shareholder of the Company prior to the exercise hereof. Upon the surrender
        of
        this Warrant and the payment of the aggregate Exercise Price (or by means
        of a
        cashless exercise), the Warrant Shares so purchased shall be and be deemed
        to be
        issued to such Holder as the record owner of such shares as of the close
        of
        business on the later of the date of such surrender or payment. 

       

      9.  Loss,
        Theft, Destruction or Mutilation of Warrant.
        The
        Company covenants that upon receipt by the Company of evidence reasonably
        satisfactory to it of the loss, theft, destruction or mutilation of this
        Warrant
        or any stock certificate relating to the Warrant Shares, and in case of loss,
        theft or destruction, of indemnity or security reasonably satisfactory to
        it,
        and upon surrender and cancellation of such Warrant or stock certificate,
        if
        mutilated, the Company will make and deliver a new Warrant or stock certificate
        of like tenor and dated as of such cancellation, in lieu of such Warrant
        or
        stock certificate. 

       

      10.  Saturdays,
        Sundays, Holidays, etc.
        If the
        last or appointed day for the taking of any action or the expiration of any
        right required or granted herein shall be a Saturday, Sunday or a legal holiday,
        then such action may be taken or such right may be exercised on the next
        succeeding day not a Saturday, Sunday or legal holiday. 

       

      11.  Adjustments
        of Exercise Price and Number of Warrant Shares, Stock Splits,
        etc.
        The
        number and kind of securities purchasable upon the exercise of this Warrant
        and
        the Exercise Price shall be subject to adjustment from time
        to time upon the happening of any of the following. In case the Company shall
        (i) pay a dividend in shares of Common Stock or make a distribution in shares
        of
        Common Stock to holders of its outstanding Common Stock, (ii) subdivide its outstanding shares of Common Stock
        into a greater
        number of shares, (iii) combine its outstanding shares of Common Stock into
        a
        smaller number of shares of Common Stock, or (iv) issue any shares of its
        capital stock in a reclassification of the Common Stock, then the number
        of
        Warrant Shares purchasable upon exercise of this Warrant immediately prior
        thereto shall be adjusted so that the Holder shall be entitled to receive
        the
        kind and number of Warrant Shares or other securities of the Company which
        it
        would have owned or have been entitled to receive had such Warrant been
        exercised in advance thereof. Upon each such adjustment of the kind and number
        of Warrant Shares or other securities of the Company which are purchasable
        hereunder, the Holder shall thereafter be entitled to purchase the number
        of
        Warrant Shares or other securities resulting from such adjustment at an Exercise
        Price per Warrant Share or other security obtained by multiplying the Exercise
        Price in effect immediately prior to such adjustment by the number of Warrant
        Shares purchasable pursuant hereto immediately prior to such adjustment and
        dividing by the number of Warrant Shares or other securities of the Company
        that
        are purchasable pursuant hereto immediately after such adjustment. An adjustment
        made pursuant to this paragraph shall become effective immediately after
        the
        effective date of such event retroactive to the record date, if any, for
        such
        event. 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      12.  Reorganization,
        Reclassification, Merger, Consolidation or Disposition of Assets.
        In case
        the Company shall reorganize its capital, reclassify its capital stock,
        consolidate or merge with or into another corporation (where the Company
        is not
        the surviving corporation or where there is a change in or distribution with
        respect to the Common Stock of the Company), or sell, transfer or otherwise
        dispose of its property, assets or business to another corporation and, pursuant
        to the terms of such reorganization, reclassification, merger, consolidation
        or
        disposition of assets, shares of common stock of the successor or acquiring
        corporation, or any cash, shares of stock or other securities or property
        of any
        nature whatsoever (including warrants or other subscription or purchase rights)
        in addition to or in lieu of common stock of the successor or acquiring
        corporation (“Other
        Property”),
        are
        to be received by or distributed to the holders of Common Stock of the Company,
        then the Holder shall have the right thereafter to receive, upon exercise
        of
        this Warrant, the number of shares of Common Stock of the successor or acquiring
        corporation or of the Company, if it is the surviving corporation, and Other
        Property receivable upon or as a result of such reorganization,
        reclassification, merger, consolidation or disposition of assets by a Holder
        of
        the number of shares of Common Stock for which this Warrant is exercisable
        immediately prior to such event. In case of any such reorganization,
        reclassification, merger, consolidation or disposition of assets, the successor
        or acquiring corporation (if other than the Company) shall expressly assume
        the
        due and punctual observance and performance of each and every covenant and
        condition of this Warrant to be performed and observed by the Company and
        all
        the obligations and liabilities hereunder, subject to such modifications
        as may
        be deemed appropriate (as determined in good faith by resolution of the Board
        of
        Directors of the Company) in order to provide for adjustments of Warrant
        Shares
        for which this Warrant is exercisable which shall be as nearly equivalent
        as
        practicable to the adjustments provided for in this Section 12. For purposes
        of
        this Section 12, “common stock of the successor or acquiring corporation” shall
        include stock of such corporation of any class which is not preferred as
        to
        dividends or assets over any other class of stock of such corporation and
        which
        is not subject to redemption and shall also include any evidences of
        indebtedness, shares of
        stock
        or other securities which are convertible into or exchangeable for any such
        stock, either immediately or upon the arrival of a specified date or the
        happening of a specified event and any warrants or other rights to subscribe
        for
        or purchase any such stock. The foregoing provisions of this Section 12 shall
        similarly apply to successive reorganizations, reclassifications, mergers,
        consolidations or disposition of assets.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      13.  Issuance
        of Additional Stock.
        If the
        Company shall, at any time through the two year anniversary of the date that
        the
        Registration Statement is declared effective by the Commission, issue any
        rights, warrants, options or other securities convertible into or exchangeable
        for Common Stock (collectively, “Additional
        Stock”)
        without consideration or for a consideration per share less than the Exercise
        Price (including by operation of purchase price adjustments, reset provisions,
        floating conversion, exercise or exchange prices or otherwise), the Exercise
        Price in effect immediately prior to each such issuance shall forthwith be
        reduced to an amount equal to such lower purchase price for such Additional
        Stock (or in the case of options and similar securities, the consideration
        received for the option and to be received upon exercise of such option),
        or, if
        for no consideration, $.001; provided,
        however,
        that
        none of the following shall constitute Additional Stock: (a) shares of Common
        Stock; (b) rights, warrants, options or other securities convertible into
        or
        exchangeable for Common Stock, issued or issuable to employees, consultants
        or
        directors of the Company for the primary purpose of soliciting or retaining
        their employment or services directly or pursuant to a stock option plan
        or
        restricted stock plan approved by the Board of Directors of the Company and
        (c)
        shares of Common Stock of the Company issuable upon exercise of rights,
        warrants, options or other securities convertible into or exchangeable for
        Common Stock outstanding as of the date hereof.

       

      14.  Notice
        of Adjustment.
        Whenever the number of Warrant Shares or number or kind of securities or
        other
        property purchasable upon the exercise of this Warrant or the Exercise Price
        is
        adjusted, as herein provided, the Company shall give notice thereof to the
        Holder, which notice shall state the number of Warrant Shares (and other
        securities or property) purchasable upon the exercise of this Warrant and
        the
        Exercise Price of such Warrant Shares (and other securities or property)
        after
        such adjustment, setting forth a brief statement of the facts requiring such
        adjustment and setting forth the computation by which such adjustment was
        made.

       

      15.  Notice
        of Corporate Action.
        If at
        any time: 

       

      (a)  the
        Company shall take a record of the holders of its Common Stock for the purpose
        of entitling them to receive a dividend or other distribution, or any right
        to
        subscribe for or purchase any evidences of its indebtedness, any shares of
        stock
        of any class or any other securities or property, or to receive any other
        right,
        or 

       

      (b)  there
        shall be any capital reorganization of the Company, any reclassification
        or
        recapitalization of the capital stock of the Company or any consolidation
        or
        merger of the Company with, or any sale, transfer or other disposition of
        all or
        substantially all the property, assets or business of the Company to, another
        corporation or, 

       

      (c)  there
        shall be a voluntary or involuntary dissolution, liquidation or winding up
        of
        the Company;

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      then,
        in
        any one or more of such cases, the Company shall give to Holder (i) at least
        10
        days’ prior written notice of the date on which a record date shall be selected
        for such dividend, distribution or right or for determining rights to vote
        in
        respect of any such reorganization, reclassification, merger, consolidation,
        sale, transfer, disposition, liquidation or winding up, and (ii) in the case
        of
        any such reorganization, reclassification, merger, consolidation, sale,
        transfer, disposition, dissolution, liquidation or winding up, at least 10
        days’
prior written notice of the date when the same shall take place. Such notice
        in
        accordance with the foregoing clause also shall specify (i) the date on which
        any such record is to be taken for the purpose of such dividend, distribution
        or
        right, the date on which the holders of Common Stock shall be entitled to
        any
        such dividend, distribution or right, and the amount and character thereof,
        and
        (ii) the date on which any such reorganization, reclassification, merger,
        consolidation, sale, transfer, disposition, dissolution, liquidation or winding
        up is to take place and the time, if any such time is to be fixed, as of
        which
        the holders of Common Stock shall be entitled to exchange their Warrant Shares
        for securities or other property deliverable upon such disposition, dissolution,
        liquidation or winding up. Each such written notice shall be sufficiently
        given
        if addressed to Holder at the last address of Holder appearing on the books
        of
        the Company and delivered in accordance with Section 19(d). 

       

      16.  Authorized
        Shares.
        The
        Company covenants that the Company shall call a shareholder meeting for purposes
        of increasing its authorized capital in an amount sufficient to provide for
        the
        exercise of all outstanding Warrants of the Company. Until such time as the
        Company has so increased its authorized capital each Holder shall each be
        entitled to exercise the Warrants held by them on a pro rata basis with the
        other Holders, weighted on the basis of the respective Subscription Amounts
        paid
        to the Company by each Holder. If such increase in authorized capital is
        not
        authorized by the earlier of (i) the date that the registration statement
        relating to the Common Stock underlying the Preferred Stock and the Warrants
        is
        effective, or (ii) 150 days from the date the Company first receives funds
        from
        the escrow account established pursuant to the Purchase Agreement (each an
        “Event”), then on the date on which such Event occurs (the “Event Date”), the
        Company shall pay to each Holder an amount in cash, as partial liquidated
        damages and not as a penalty, equal to 2.0% of the aggregate purchase price
        paid
        by such Holder pursuant to the Purchase Agreement, and on each monthly
        anniversary of each such Event Date until cured, provided however,
        if the
        Company is otherwise paying liquidated damages pursuant to that certain
        Registration Rights Agreement between the Company and the purchasers signatory
        thereto, then no liquidated damages shall be due pursuant to this Paragraph
        16.
        The Company further covenants that its issuance of this Warrant shall constitute
        full authority to its officers who are charged with the duty of executing
        stock
        certificates to execute and issue the necessary certificates for the Warrant
        Shares upon the exercise of the purchase rights under this Warrant. Subject
        to
        this Paragraph 16, the Company will take all such reasonable action as may
        be
        necessary to assure that such Warrant Shares may be issued as provided herein
        without violation of any applicable law or regulation, or of any requirements
        of
        the Trading Market upon which the Common Stock may be listed. 

       

      Except
        and to the extent as waived or consented to by the Holder, the Company shall
        not
        by any action, including, without limitation, amending its certificate of
        incorporation or through any reorganization, transfer of assets, consolidation,
        merger, dissolution, issue or sale of securities or any other voluntary action,
        avoid or seek to avoid the observance or performance of any of the terms
        of this
        Warrant, but will at all times in good faith assist in the carrying out of
        all
        such terms and in the taking of all such actions as may be necessary or
        appropriate to protect the rights of  Holder
        as
        set forth in this Warrant against impairment. Without limiting the generality
        of
        the foregoing, the Company will (a) not increase the par value of any Warrant
        Shares above the amount payable therefor upon such exercise immediately prior
        to
        such increase in par value, (b) take all such action as may be necessary
        or
        appropriate in order that the Company may validly and legally issue fully
        paid
        and nonassessable Warrant Shares upon the exercise of this Warrant, and (c)
        use
        commercially reasonable efforts to obtain all such authorizations, exemptions
        or
        consents from any public regulatory body having jurisdiction thereof as may
        be
        necessary to enable the Company to perform its obligations under this Warrant.
        

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      Before
        taking any action which would result in an adjustment in the number of Warrant
        Shares for which this Warrant is exercisable or in the Exercise Price, the
        Company shall obtain all such authorizations or exemptions thereof, or consents
        thereto, as may be necessary from any public regulatory body or bodies having
        jurisdiction thereof. 

       

      17.  Registration
        Rights.
        The
        Holder of this Warrant and/or the Warrant Shares and any transferee hereof
        and
        thereof shall be entitled to the benefit of such registration rights in respect
        of the Warrant Shares as are set forth in the Registration Rights Agreement.
        

       

      18.  Redemption.
        

       

      (a)  The
        Company may redeem all (but not less than all) of this Warrant at any time,
        at
        the price of $.01 per Warrant Share (issuable under this Warrant), upon notice
        referred to in Section 18(b), provided that (i) the Warrant Shares have been
        registered for resale by means of the Registration Statement as defined in
        the
        Purchase Agreement or any other registration statement; (ii) the Registration
        Statement is current and effective at the time the aforementioned notice
        is sent
        and through the redemption period; and (iii) the closing sales price of the
        Common Stock has been at least 200% of the then Exercise Price of the Warrants
        for 20 consecutive Trading Days ending within two Trading Days of the notice
        of
        redemption as referred to in Section 18(b) below.

       

      (b)  In
        the
        event the Company shall elect to redeem this Warrant, the Company shall fix
        a
        date for the redemption (the “Redemption
        Date”)
        and
        mail a notice of redemption by first class mail, postage prepaid, not less
        than
        30 days from the date fixed for redemption to the Holder of this Warrant
        at such
        Holder’s last address as it appears on the books of the Company. Any notice
        mailed in the manner herein provided shall be conclusively presumed to have
        been
        duly given whether or not the registered Holder received such notice. The
        notice
        of redemption shall specify (i) the redemption price, (ii) the date fixed
        for
        redemption, (iii) the place where the Warrant is to be delivered and the
        redemption price paid and (iv) that the right to exercise the Warrant shall
        terminate at 5:00 P.M. New York City on the Business Day immediately preceding
        the Redemption Date. No failure to mail such notice nor any defect therein
        or in
        the mailing thereof shall affect the validity of the proceedings for such
        redemption except as to a Holder (A) to whom notice was not mailed or (B)
        whose
        notice was defective. An affidavit of the Secretary of the Company that notice
        of redemption has been mailed shall, in the absence of fraud, be prima facie
        evidence of the facts stated therein.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (c)  The
        Warrant may be exercised in accordance with Section 3 of this Warrant at
        any
        time after notice of redemption shall have been given by the Company pursuant
        to
        Section 18(b) hereof and until the Business Day immediately preceding the
        Redemption Date. On and after the Redemption Date, the Holder of this Warrant
        shall have no further rights except to receive, upon surrender of the Warrant,
        the redemption price.

       

      19.  Miscellaneous.
        

       

      (a)  Jurisdiction.
        All
        questions concerning the construction, validity, enforcement and interpretation
        of this Warrant shall be determined in accordance with the provisions of
        the
        Purchase Agreement. 

       

      (b)  Restrictions.
        The
        Holder acknowledges that the Warrant Shares acquired upon the exercise of
        this
        Warrant, if not registered, will have restrictions upon resale imposed by
        state
        and federal securities laws. 

       

      (c)  Nonwaiver
        and Expenses.
        No
        course of dealing or any delay or failure to exercise any right hereunder
        on the
        part of Holder shall operate as a waiver of such right or otherwise prejudice
        Holder's rights, powers or remedies, notwithstanding all rights hereunder
        terminate on the Termination Date. If the Company willfully and knowingly
        fails
        to comply with any provision of this Warrant, which results in any material
        damages to the Holder, the Company shall pay to Holder such amounts as shall
        be
        sufficient to cover any reasonable out-of-pocket costs and expenses incurred
        by
        Holder in collecting any amounts due pursuant hereto or in otherwise enforcing
        any of its rights, powers or remedies hereunder. 

       

      (d)  Notices.
        Any
        notice, request or other document required or permitted to be given or delivered
        to the Holder by the Company shall be delivered in accordance with the notice
        provisions of the Purchase Agreement. 

       

      (e)  Limitation
        of Liability.
        No
        provision hereof, in the absence of any affirmative action by Holder to exercise
        this Warrant or purchase Warrant Shares, and no enumeration herein of the
        rights
        or privileges of Holder, shall give rise to any liability of Holder for the
        purchase price of any Common Stock or as a stockholder of the Company, whether
        such liability is asserted by the Company or by creditors of the Company.
        

       

      (f)  Remedies.
        Holder,
        in addition to being entitled to exercise all rights granted by law, including
        recovery of damages, will be entitled to specific performance of its rights
        under this Warrant. The Company agrees that monetary damages would not be
        adequate compensation for any loss incurred by reason of a breach by it of
        the
        provisions of this Warrant and hereby agrees to waive the defense in any
        action
        for specific performance that a remedy at law would be adequate. 

       

      (g)  Successors
        and Assigns.
        Subject
        to applicable securities laws, this Warrant and the rights and obligations
        evidenced hereby shall inure to the benefit of and be binding upon the
        successors of the Company and the successors and permitted assigns of Holder.
        The provisions of this Warrant are intended to be for the benefit of all
        Holders
        from time to time of this Warrant and shall be enforceable by any such Holder
        or
        holder of Warrant Shares.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (h)  Amendment.
        This
        Warrant may be modified or amended or the provisions hereof waived with the
        written consent of the Company and the Holder. 

       

      (i)  Severability.
        Wherever possible, each provision of this Warrant shall be interpreted in
        such
        manner as to be effective and valid under applicable law, but if any provision
        of this Warrant shall be prohibited by or invalid under applicable law, such
        provision shall be ineffective to the extent of such prohibition or invalidity,
        without invalidating the remainder of such provisions or the remaining
        provisions of this Warrant. 

       

      (j)  Headings.
        The
        headings used in this Warrant are for the convenience of reference only and
        shall not, for any purpose, be deemed a part of this Warrant. 

       

      IN
        WITNESS WHEREOF, the parties hereto have executed this Warrant as of the
        2nd day
        of March, 2006. 

       

      SAN
        HOLDINGS, INC.

      

      By:_____________________________________

           
        Name:

           
        Title:

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

    

    Exhibit
      E

     

    Form
      of $0.50 Warrant

     

    
 

     

    
 

     

    See
      Exhibit D

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      F

     

    Form
      of Lock-Up Agreements

     

    

     

    

     

    [INTENTIONALLY
      OMITTED; Incorporated by reference to Exhibit F of Exhibit 10.01 to the
      Company’s Current Report on Form 8-K filed March 8, 2006]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      Exhibit
        G 

       

      Form
        of Credit Support Termination Agreement 

       

       

       

      [INTENTIONALLY
        OMITTED; Incorporated by reference to Exhibit G of Exhibit 10.01 to the
        Company’s Current Report on Form 8-K filed March 8, 2006]

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        H 

       

      Form
        of Purchaser Questionnaire

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      PURCHASER
        AGREEMENT AND QUESTIONNAIRE

      

      

      SAN
        Holdings, Inc.

      9800
        Pyramid Court

      Suite
        130

      Englewood,
        CO 80112

          

          

      
        	
                 
        
                Re:	      Purchase
                of Units of San Holdings, Inc.

      

          

          1.     Purchase
        of Units.
        (a)  In accordance with the terms of the Securities Purchase
        Agreement, dated April 18, 2006 (the “Securities Purchase Agreement”), among SAN
        Holdings, Inc., a Colorado corporation (the “Company”) and each of the
        purchasers identified on the signature pages thereto, the undersigned (the
        “Prospective Purchaser”) desires to purchase Units (as defined below) from the
        Company in the amount and at the price set forth in the Securities Purchase
        Agreement. A “Unit” consists of (i) one share of Series A Preferred Stock of the
        Company, (ii) one Common Stock Purchase Warrant, which shall have an exercise
        price equal to $0.30 per share and shall be exercisable for a period of five
        years into 166,667 shares of common stock of the Company, and (iii) one Common
        Stock Purchase Warrant, which shall have an exercise price equal to $0.50
        per
        share and shall be exercisable for a period of five years into 166,667 shares
        of
        common stock of the Company. Capitalized terms not defined in this Purchaser
        Agreement and Questionnaire (the “Agreement”) shall have the meaning assigned to
        such terms in the Securities Purchase Agreement. 

       

      (b) The
        Prospective Purchaser acknowledges that the issuance of Units to the Prospective
        Purchaser will be subject to (i) the representations and warranties of the
        Prospective Purchaser contained herein and in the Securities Purchase Agreement
        and (ii) all information regarding the Prospective Purchaser supplied to
        the
        Company in connection with the purchase of Units being correct and complete
        as
        of the Closing Date. By execution of this Agreement, the Prospective Purchaser
        represents and warrants that all information supplied to the Company in
        connection with the purchase of Units is correct and complete as of the Closing
        Date and that the Company is relying on all of the representations and
        warranties of the Prospective Purchaser for purposes of complying with the
        securities laws.

       

      2. Representations
        and Warranties.
        The
        Prospective Purchaser hereby represents and warrants to, and agrees with,
        the
        Company as follows:

       

      (a) The
        Prospective Purchaser has been provided with and has carefully reviewed the
        Securities Purchase Agreement describing the Units and has made such further
        investigation of the Company and has been furnished such information with
        respect to the Company as the Prospective Purchaser deems necessary to evaluate
        the merits and risks involved with an investment in the Units.

       

      (b) The
        Prospective Purchaser has had an opportunity to meet with representatives
        of the
        Company and to ask questions and receive answers regarding an investment
        in the
        Units and has asked any question the Prospective Purchaser desired to ask
        and
        has received answers with respect to such questions to the full satisfaction
        of
        the Prospective
        Purchaser. To the extent the Prospective Purchaser deemed it necessary, the
        Prospective Purchaser has further
        consulted the Prospective Purchaser’s own attorney, accountant or other business
        or financial advisor regarding legal, business, tax and other issues relating
        to
        the offer of the Units and is not relying on the Company or any of its officers,
        directors, employees, agents or lawyers with respect to the legal, business,
        tax
        and other issues related to the tax, economic and related considerations
        of an
        investment in the Units.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b) The
        Prospective Purchaser is an “accredited investor” as defined in Rule 501 of
        Regulation D promulgated under the Securities Act of 1933, as amended (the
        “Securities Act”), and has such knowledge and experience in financial and
        business matters necessary to be capable of evaluating the merits and the
        risks
        of the investment in the Units. The Prospective Purchaser certifies that
        the
        Prospective Purchaser is an “accredited investor” because the Prospective
        Purchaser is (check
        as many as apply):

       

      :__________: A
        bank as
        defined in section 3(a)(2) of the Securities Act, or a savings and loan
        association or other institution as defined in section 3(a)(5)(A) of the
        Securities Act whether acting in its individual or fiduciary capacity; a
        broker
        or dealer registered pursuant to section 15 of the Securities Exchange Act
        of
        1934; an insurance company as defined in section 2(a)(13) of the Securities
        Act;
        an investment company registered under the Investment Company Act of 1940
        or a
        business development company as defined in section 2(a)(48) of such Act;
        a Small
        Business Investment Company licensed by the U.S. Small Business Administration
        under section 301(c) or (d) of the Small Business Investment Act of 1958;
        a plan
        established and maintained by a state, its political subdivisions or an agency
        or instrumentality of a state or its political subdivisions for the benefit
        of
        its employees, if such plan has total assets in excess of $5,000,000; an
        employee benefit plan within the meaning of the Employee Retirement Income
        Security Act of 1974 if the investment decision is made by a plan fiduciary,
        as
        defined in section 3(21) of such Act, which is either a bank, savings and
        loan
        association, insurance company, or registered investment adviser, or if the
        employee benefit plan has total assets in excess of $5,000,000 or, if a
        self-directed plan, with investment decisions made solely by persons that
        are
“accredited investors.”

      

      :__________: A
        private
        business development company as defined in section 202(a)(22) of the Investment
        Advisers Act of 1940;

      

      :__________: An
        organization described in Section 501(c)(3) of the Internal Revenue Code,
        corporation, Massachusetts or similar business trust, or partnership, not
        formed
        for the specific purpose of acquiring the Units offered, with total assets
        in
        excess of $5,000,000;

      

      :__________: A
        director or an executive officer of the Company;

      

      :__________: A
        natural
        person whose individual net worth as of the date hereof (including the net
        worth
        of the Prospective Purchaser's spouse if the Prospective Purchaser is married)
        exceeds $1,000,000;

      

      :__________: A
        natural
        person who had an individual income that exceeded $200,000 or joint income
        with
        his or her spouse in excess of $300,000 in each of the two most recent years
        and
        reasonably expects that in the current year
        his
        or her or their income will reach the same level. For purposes of this document,
        the term "income" shall mean adjusted gross income reported or to be reported
        on
        a federal income tax return, increased by (i)
        any
deductions
        for long-term capital gains (under Section 1202 of the Internal Revenue Code
        (the "Code"), (ii) any deductions for depletion (pursuant to Section 601
        et
        seq.
        of the
        Code), (iii) any exclusions of interest (pursuant to Section 103 of the Code)
        and (iv) any losses of a partnership allocated to the undersigned as an
        individual limited partner (as reported in Schedule E of Form
        1040);

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      :__________: A
        trust,
        with total assets in excess of $5,000,000, not formed for the specific purpose
        of acquiring the Units offered, whose purchase is directed by a sophisticated
        person as described in Section 230.506(b)(2)(ii); and

      

      :__________: An
        entity
        in which all of the equity owners are “accredited investors.”

      

      (c) The
        Prospective Purchaser has conducted its own due diligence review or
        investigation of the Company and the Units prior to making any investment
        in the
        Units and agrees and acknowledges that neither the Company nor the Company’s
        attorneys have conducted a due diligence review or investigation independently
        verifying any of the representations contained in the Securities Purchase
        Agreement or in any other document previously provided to the Prospective
        Purchaser.

      

      (d) The
        Prospective Purchaser has no need for liquidity with respect to the Units,
        is
        able to bear the economic risks of an investment in the Units for an indefinite
        period and is able to afford a complete loss of such investment.

       

      (e) The
        Prospective Purchaser recognizes that an investment in the Units involves
        significant risks. Prior to investing, potential investors are urged to review
        carefully the information contained in the Company’s Annual Report on Form 10-K
        for the fiscal year ended December 31, 2005 that was filed with the Securities
        and Exchange Commission (the “Commission”), including the discussion of certain
        of investment risks set forth under “RISK FACTORS.” 

       

      (f) The
        Prospective Purchaser understands the following concerning the
        Units:

       

      (i) That
        the
        Units have not been registered under the Securities Act or registered or
        qualified under any applicable state securities laws and the Company is not
        obligated to register or qualify such Units;

       

      (ii) That
        the
        Units are subject to the transfer restrictions contained in the Securities
        Purchase Agreement and may be sold or otherwise transferred only in a
        transaction that is in accordance with Rule 144 under the Securities Act
        or
        another exemption from, or in a transaction not subject to, the registration
        requirements of the Securities Act;

       

      (iii) That
        the
        Units have not been approved or disapproved by the Commission or any state
        securities commission, nor has the Commission nor any state securities
        commission passed upon the accuracy or adequacy of the Securities Purchase
        Agreement;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (iv) That
        any
        Units will bear a legend in substantially the following form, except as
        otherwise specifically provided in the Securities Purchase
        Agreement:

       

      THESE
        SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
        OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
        REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
        ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
        EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
        AN
        AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
        REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
        SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
        TO
        SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
        COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
        ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL
        INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE
        SECURITIES ACT.

       

      (g) The
        Units
        are being purchased solely for the Prospective Purchaser’s own account for
        investment purposes only and not for the account of any other person and
        not for
        distribution, assignment or resale to others.

       

      (h) The
        sale
        of the Units is subject to the provisions of and the Prospective Purchaser
        is
        required to execute the Securities Purchase Agreement and this Agreement
        in
        order to make an investment in the Units. 

       

      (i) The
        Prospective Purchaser understands that there are substantial restrictions
        on
        transfers of the Units set forth in the Securities Purchase Agreement and,
        accordingly, there is no established market for the Units and that none will
        develop. Therefore, the Prospective Purchaser understands and acknowledges
        that
        it must bear the economic risk of an investment in the Units for an indefinite
        period of time.

       

      (j) The
        Prospective Purchaser understands that the Prospective Purchaser must comply
        with all applicable legal requirements relating to an investment in the Units
        and is responsible for obtaining all consents, authorizations or other approvals
        required for the purchase of the Units. The Company assumes no responsibility
        for such compliance.

       

      (k) If
        this
        Agreement is executed by an entity, the Prospective Purchaser represents
        and
        warrants that this Agreement has been duly authorized by all necessary corporate
        action of the Prospective Purchaser and this Agreement will constitute the
        valid, binding and enforceable agreement of the Prospective Purchaser and
        the
        execution of this Agreement and a purchase of Units will not violate any
        agreement to which the Prospective Purchaser is a party. The Prospective
        Purchaser agrees that it will have no right to rescind this
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (l) All
        information which the Prospective Purchaser has provided to the Company
        concerning the Prospective Purchaser is correct and complete as of the date
        set
        forth at the end of this Agreement, and if there should be any material adverse
        change in such information prior to the Closing Date, the Prospective Purchaser
        will immediately provide the Company with such information.

       

      3. Indemnification.
        The
        Prospective Purchaser agrees to indemnify and hold harmless the Company and
        each
        of its respective agents, officers, directors and affiliates from and against
        all damages, losses, costs and expenses (including reasonable attorneys’ fees)
        which they or any of them may incur by reason of the failure of the Prospective
        Purchaser to fulfill any of the terms and conditions of this Agreement or
        the
        Securities Purchase Agreement, or by reason of any breach of the representations
        and warranties made by the Prospective Purchaser herein or in any other document
        provided by the Prospective Purchaser to the Company.

       

      4. Miscellaneous.
        (a)  The Prospective Purchaser agrees not to transfer or assign this
        Agreement or any of the Prospective Purchaser’s interest herein without the
        prior written consent of the Company. The Prospective Purchaser agrees that
        it
        may not cancel, terminate or revoke this Agreement or any other agreement
        of the
        Prospective Purchaser made hereunder and that this Agreement shall be binding
        upon the Prospective Purchaser’s successors and assigns.

       

      (b) Notwithstanding
        any of the representations, warranties, acknowledgments or agreements made
        in
        this Agreement by the Prospective Purchaser, the Prospective Purchaser does
        not
        thereby or in any other manner waive any rights granted to it under federal
        or
        state securities laws.

       

      (c) This
        Agreement constitutes the entire agreement among the parties hereto with
        respect
        to the subject matter hereof and this Agreement may be amended only in writing
        and executed by all parties.

       

      (d) This
        Agreement shall be enforced, governed and construed in all respects in
        accordance with the laws of the State of New York.

       

      (e)
         The
        Prospective Purchaser understands and agrees that the Company reserves the
        right
        to reject the proposed purchase by the Prospective Purchaser for the Units
        in
        its sole and absolute discretion, notwithstanding the deposit of the purchase
        price in the Escrow Account. 

       

      (f) Upon
        request from the Company, the Prospective Purchaser agrees to promptly provide
        such information and to execute and deliver such documents as reasonably
        may be
        necessary to comply with any and all laws and regulations to which the Company
        is subject.

       

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      5. Purchaser
        Information.
        Please
        provide the following information regarding the Prospective Purchaser (please
        print information exactly as it should appear in the Company’s
        records):

       

          a. Name:_________________________________________________________

                     
        b. Taxpayer
        Identification Number:_____________________________________

              

      c. Address:______________________________________________________

                 
        _______________________________________________________

                 
        _______________________________________________________

      

      d. If
        Prospective Purchaser is an entity, name and title of contact person:

       

      e. Telephone
        number: (
            
)__________________________________________

       

      f. Facsimile
        number: (    
         )____________________________________________

      

      g. E-mail
        address: _________________________________________________

      

      h. Number
        of
        Units being purchased:___________________________________

      

      i. Subscription
        Amount for Units: $____________________________________

      

      

       

      Date:
        ________ __, 2006

       

      

       

      If
        an Individual, execute this block:

       

      PURCHASER

       

      

      

      By___________________________

      PrintName:_____________________

                                                                             
        __________________________

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      If
        executing this Agreement jointly, execute these 

      blocks:

       

      PURCHASER

       

      

      

      By_____________________________

      PrintName:_______________________

                                                                             
        ___________________________

                              CO-PURCHASER

       

      

      

      By_____________________________

      Print
        Name:______________________

                                                                             
        ___________________________

      

       

      If
        an entity, execute this block:

       

      PURCHASING
        COMPANY

       

      

      

      By_____________________________

      Name:__________________________

      Title:___________________________

      Name
        of
        Company:_________________

      Type
        of
        Entity:____________________

      Date
        of
        Organization:_______________

      State
        of
        Organization:_______________

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