SEC Contract Filing

Filing Date: 2016-02-25

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>7
<FILENAME>apam-ex103x2013x3x31.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<a name="s0F2331A43CF9038C37E76C64304D7373"></a><div><div style="line-height:120%;text-align:right;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">EXECUTION VERSION</font></div></div><br><div style="line-height:120%;padding-bottom:14px;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">EXCHANGE AGREEMENT</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">EXCHANGE AGREEMENT (this &#8220;</font><font style="font-family:inherit;font-size:11pt;font-style:italic;">Agreement</font><font style="font-family:inherit;font-size:11pt;">&#8221;), dated as of March 6, 2013, and effective upon the effectiveness of the Partnership Agreement (as defined herein), among Artisan Partners Asset Management Inc., a Delaware corporation (&#8220;</font><font style="font-family:inherit;font-size:11pt;font-style:italic;">APAM</font><font style="font-family:inherit;font-size:11pt;">&#8221;), and the LP Unitholders (as defined herein) from time to time party hereto.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">WHEREAS, the parties hereto desire to provide for the exchange of LP Units for shares of Class&#160;A Common Stock or Convertible Preferred Stock, as the case may be, on the terms and subject to the conditions set forth herein;</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">NOW, THEREFORE, in consideration of the mutual covenants and undertakings contained herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">ARTICLE I</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;padding-left:36px;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">SECTION 1.1</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:11pt;font-style:italic;">Definitions</font><font style="font-family:inherit;font-size:11pt;">.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">(a)</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:11pt;">The following definitions shall for all purposes, unless otherwise clearly indicated to the contrary, apply to the terms used in this Agreement.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">&#8220;Agreement&#8221; has the meaning set forth in the preamble hereto.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">&#8220;APAM&#8221; has the meaning set forth in the preamble hereto.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">&#8220;Capital Account Shortfall&#8221; means, with respect to any Holdings Common Unitholder, the extent, if any, to which the Holdings Common Unitholder has a Revaluation Capital Account that, as a percentage of the aggregate Revaluation Capital Account balances of all partners of Holdings, is less than the Percentage Interest represented by such LP Unitholder&#8217;s LP Units.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">&#8220;Certificate of Incorporation&#8221; means the Restated Certificate of Incorporation of APAM, as the same may be may be amended, restated, supplemented and/or otherwise modified from time to time.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">&#8220;Class B Common Unit&#8221; has the meaning given to such term in the Partnership Agreement. For the avoidance of doubt, &#8220;Class B Common Unit&#8221; includes each unvested Class B Common Unit.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">&#8220;Conversion Rate&#8221; means, for each Preferred Unit, a number of shares of Class A Common Stock calculated at the close of business on the relevant Date of Exchange equal to the excess, if any, of (i)&#160;one (1) over (ii) a fraction equal to (A) the Cumulative Excess Distributions Per Preferred Unit divided by (B)&#160;the Average Daily VWAP as of the Date of Exchange; </font><font style="font-family:inherit;font-size:11pt;font-style:italic;">provided</font><font style="font-family:inherit;font-size:11pt;">&#32;that for purposes of Section&#160;2.1(b), the denominator of the fraction in the Conversion Rate will be the per share consideration to be received by holders of Class A Common Stock in such Change in Control.</font></div><div