Document:

job_ex102.htm

EXHIBIT 10.2
   
  THE RIGHTS OF PAYMENT, PRIORITY AND ENFORCEMENT OF LIENS AND SECURITY INTERESTS, AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE SECURED PARTY (OR ASSIGNEE THEREOF) ARE SUBJECT TO THE PROVISIONS OF THE SUBORDINATION AND INTERCREDITOR AGREEMENT, effective as of the date hereof AS THE SAME MAY BE AMENDED, RESTATED, SUPPLEMENTED, MODIFIED OR REPLACED FROM TIME TO TIME (THE "INTERCREDITOR AGREEMENT") BY AND AMONG THE SECURED PARTY AND ACF FINCO I LP, a limited partnership organized under the laws of the state of Delaware (SUCH OTHER SENIOR LENDER(S) AS MAY BE DEFINED IN THE INTERCREDITOR AGREEMENT), AND OTHERS. ANY PERSON BECOMING AN ASSIGNEE OF THIS SUBORDINATED SECURITY AGREEMENT TAKES SUCH ASSIGNMENT AND RELATED RIGHTS SUBJECT TO THE INTERCREDITOR AGREEMENT.
   
  SUBORDINATED SECURITY AGREEMENT 
  (Assets)
   
  This Subordinated Security Agreement (this “Agreement”) is made and entered into as of October 4, 2015 by and between General Employment Enterprises, Inc., an Illinois corporation, having a notice address of 13500 Sutton Park Drive South, Suite 204, Jacksonville, Florida 32224 (the “Debtor”), and William Daniel Dampier and Carol Lee Dampier, each a resident of Colorado (collectively called the “Secured Party”) with an address as indicated below on the signature page.
   
  1. GRANT OF SECURITY INTEREST. To secure the prompt payment and performance of all of Debtor’s Obligations (as hereinafter defined) to Secured Party, subject to the terms and provisions of this Agreement, including without limitation the provisions of Paragraph 13 below, Debtor hereby grants to Secured Party a security interest in and to all of its now owned and hereafter acquired personal property, including without limitation the following (collectively referred to herein as the “Collateral”):
   
  (a) all accounts, accounts receivable, contract rights, general intangibles, chattel paper, notes, drafts, acceptances, and all other debts, obligations and liabilities in whatever form owing to Debtor from any person, firm, corporation or other legal entity whether now existing or hereafter arising or acquired (collectively, “Accounts”);
   
  (b) all now owned or hereafter acquired and wherever located goods, merchandise and other personal property which are held for sale or lease or to be furnished under contracts of service or held as raw materials, work in process or finished goods and supplies or materials used or consumed in Debtor’s business or used in connection with the manufacture, packing, shipping, advertising or furnishing of such goods (collectively, “Inventory”);
   
  (c) all now existing or hereafter acquired machinery, equipment, furniture and fixtures, including spare parts, replacements, substitutions, additions or accessions thereto, wherever located (collectively, “Machinery and Equipment”);
   
  (d) all documents, policies and certificates of insurance and chooses in action, whether now or hereafter existing;
   
  (e) all instruments, and cash owned by Debtor or in which Debtor has an interest, which now or hereafter are at any time in possession or control of Secured Party or in transit by mail or carrier to or from Secured Party or in the possession of any third party acting on Secured Party’s behalf, without regard to whether Secured Party received the same in pledge, for safekeeping, as agent for collection or transmission or otherwise or whether Secured Party has conditionally released the same;   
  
 
    	 
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  (f) all books, records, ledger sheets and other records relating to the foregoing;
   
  (g) all customer lists, purchase orders, contract rights, trademarks, trade names, copyrights, patents, processes, and all applications therefor, know-how, trade secrets, confidential information, goodwill, assumed names, and all other intellectual property; and
   
  (h) all proceeds, products, offspring, rents and profits of the foregoing, including, without limitation, proceeds of insurance.
   
  As used herein, “Obligations” shall mean all obligations of Debtor to Secured Party arising under or in connection with the performance of that certain Subordinated Nonnegotiable Promissory Note dated of even date herewith, from Debtor to Secured Party, in the (original) principal amount of Three Million Dollars ($3,000,000) with a maturity date as set forth therein (the “Subordinated Note”).
   
  2. GENERAL DUTIES OF DEBTOR. Debtor will, except for and subject to the rights, interests and Liens (as defined in Paragraph 11 below) of the Senior Lenders (as defined below in Paragraph 13, including without limitation the Liens of ACF FINCO I, LP), the terms of applicable Senior Indebtedness (as defined below in Paragraph 13) and the terms and provisions of Paragraph 13 of this Agreement:
   
  (a) maintain, preserve and keep the Collateral in workable condition and repair, ordinary wear and tear excepted, and from time to time will make all necessary (in Debtor’s reasonable judgment) repairs and replacements, renewals and additions, and will not knowingly permit any of the Collateral to become a fixture to real property without first making arrangements reasonably satisfactory to Secured Party to protect the Collateral and assure the maintenance of the security interest granted hereby;
   
  (b) permit no other Lien to attach to the Collateral, except Liens arising in the Debtor’s ordinary course of business;
   
  (c) pay all costs necessary to obtain, preserve, and enforce this security interest and preserve the Collateral, including (but not limited to) taxes, assessments, insurance premiums, repairs, reasonable attorneys’ fees and legal expenses, rent, storage costs, and expenses of sale;
   
  (d) furnish Secured Party with any information concerning the Collateral and the Obligations reasonably requested by Secured Party;
   
  (e) allow Secured Party to inspect the Collateral, and inspect and copy all records relating to the Collateral and the Obligations at all reasonable times upon reasonable notice;
   
  (f) sign any papers furnished by Secured Party which are necessary to obtain and maintain and perfect this security interest;
   
  (g) take commercially reasonable steps to collect the liability of account debtors, obligors and secondary parties whose obligations are part of the Collateral;
   
  (h) maintain insurance coverage with financially sound and reputable insurers in such form and against such risks as are customary for businesses engaged in the same or similar business and operating similar properties; and   
  
 
    	 
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  (i) promptly notify Secured Party of any loss, damage or other such change in or to the Collateral, or in any fact or circumstance warranted or represented by Debtor in this Agreement or furnished to Secured Party, or if any Event of Default under this Agreement occurs.
   
  3. DEBTOR’S ADDRESS. The Debtor’s principal business offices, its financial books and records relating to the Collateral, are located at the address set forth on the signature page of this Agreement. The Debtor will not move its principal place of business, its chief executive offices, or its financial books and records relating to the Collateral from said location without prior notice to the Secured Party and shall do all things reasonably requested in writing by Secured Party to maintain a fully perfected security interest in favor of Secured Party.
   
  4. REPRESENTATIONS AND WARRANTIES OF DEBTOR. Debtor represents and warrants to Secured Party as follows:
   
  (a) Authority. The execution, performance and delivery of this Agreement and the Obligations and all other agreements and transactions contemplated hereby and thereby have been duly authorized by Debtor.
   
  (b) Enforceability. This Agreement and the Obligations constitutes the legal, valid and binding obligations of Debtor, enforceable in accordance with its terms.
   
  (c) No Breach. The execution, performance and delivery of this Agreement and the Obligations will not constitute a breach of, or default under, any provision of any certificate of incorporation or by-law, contract, agreement, mortgage, trust or other indenture to which either Debtor is bound by any order, rule, regulation or law of any jurisdiction binding on such party.
   
  (d) Other Liens. There are no other Liens attached to the Collateral except for those in favor of Senior Lenders (and those Liens attaching by operation of law and otherwise in Debtor’s ordinary course of business).
   
  5. RIGHTS OF SECURED PARTY. Secured Party may, in its discretion, after an Event of Default (as defined in Paragraph 6 below), except as otherwise provided by this Agreement, terminate, on written notice to Debtor, Debtor’s authority to sell Inventory, or any other Collateral as to which such permission has been given; require Debtor to give possession or control of the Collateral to Secured Party at Secured Party’s designated location; endorse as Debtor’s agent any instruments or chattel paper which is part of the Collateral; notify account debtors and obligors on instruments to make payment directly to Secured Party; contact account debtors directly to verify information furnished by Debtor but not to discount accounts receivable; take control of proceeds and use cash proceeds to reduce any part of the Obligations; take any action Debtor is required to take or is otherwise necessary to obtain, preserve, and enforce this security interest, and maintain and preserve the Collateral, without notice to Debtor, and add costs of same to the Obligations (but Secured Party is under no duty to take any such action); release Collateral in its possession to Debtor, temporarily or otherwise; take control of funds generated by the Collateral, such as dividends, interest, proceeds or refunds from insurance, and use same to reduce any part of the Obligations; waive any of its rights hereunder without such waiver prohibiting the later exercise of the same or similar rights; revoke any permission or waiver previously granted to Debtor.
   
  6. EVENT OF DEFAULT. The occurrence of any of the following events shall constitute an “Event of Default,” as such term is used herein:
   
  (a) an Event of Default under the Subordinated Note, or any breach or default under the ‘Purchase Agreement’ (such term having the meaning as provided in the Subordinated Note) all of which are being delivered simultaneous herewith;   
  
 
    	 
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  (b) any statement, representation or warranty made herein or any information furnished pursuant hereto shall be false or breached and which is not cured within thirty (30) days after written notice thereof and opportunity to cure; or
   
  (c) failure to observe or perform any other covenant or agreement herein and which is not cured within thirty (30) days after written notice and opportunity to cure.
   
  7. RIGHTS AND REMEDIES UPON DEFAULT. Upon an Event of Default, the Obligations shall upon written notice to Debtor of such election become immediately due and payable, and the Secured Party may (in each case subject to the terms and provisions of this Agreement) :
   
  (a) exercise any one or more of the remedies and shall have all the rights of Secured Party under the Code, including but not limited to the right to take possession of the Collateral in satisfaction of the Obligations. Any requirement of the Code (as defined in Paragraph 11 below) for reasonable notice shall be met if such notice is mailed, postage prepaid, to Debtor at its address as shown above, at least twenty (20) days prior to the time of the sale, disposition or other event or thing giving rise to the requirement of notice;
   
  (b) notwithstanding anything to the contrary appearing in this Agreement, the interest hereinabove described is granted and assigned to the Secured Party by way of collateral security only and, accordingly, the Secured Party by its acceptance hereof shall not be deemed to have assumed or become liable for any of the obligations or liabilities of Debtor under the Obligations, whether provided for by the terms thereof, arising by operation of law, or otherwise; Debtor hereby acknowledging that Debtor remains liable thereunder to the same extent as though this Agreement had not been made;
   
  (c) the acceptance by the Secured Party at any time and from time to time of part payment on the Obligations shall not be deemed to be a waiver of any default then existing under the Agreement or the Obligations. No waiver by Secured Party of any default shall be deemed to be a waiver of any other then existing or subsequent default or Event of Default, nor shall any such waiver by Secured Party be deemed to be a continuing waiver under this Agreement or the Obligations. No delay or omission by Secured Party exercising any right, remedy or privilege hereunder shall impair any such right, remedy or privilege or be construed as a waiver thereof or any acquiescence in the default or Event of Default giving rise thereto, nor shall any single or partial exercise thereof, or the exercise of any other right, remedy or privilege of Secured Party hereunder;
   
  (d) the Secured Party may proceed to protect and enforce this Agreement by suits or proceedings in equity, at law or otherwise, whether for the foreclosure hereof or for the appointment of a receiver of the property covered by this Agreement and the Obligations or any part thereof, or for the enforcement of any other proper, legal or equitable remedy available under applicable law; and
   
  (e) any and all net proceeds received by the Secured Party by reason of the foregoing clauses (a) and (b) of this Paragraph, after first deducting all legal or other costs and expenses in affecting such realization, shall be applied to pay any or all of the indebtedness hereby secured as the Secured Party shall deem proper, any excess to be returned to the Debtor.
   
  8. SUCCESSORS AND ASSIGNS. The rights and privileges of Secured Party shall inure to its successors and assigns. All representations, warranties and agreements of Debtor shall bind Debtor’s successors and assigns. Upon any merger, consolidation or reorganization permitted under the Subordinated Note, the successor shall execute an assumption agreement in form acceptable to Secured Party. Nothing in this Paragraph shall relieve Debtor of any Obligation to Secured Party in the event of an assignment by Debtor, whether or not permitted hereunder, which liability will continue until released by Secured Party.   
  
 
    	 
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  9. NOTICE AND DEMAND. Debtor waives presentment, demand, notice of nonpayment and protest and all other demands or notices in connection with this Agreement. Notices mailed to Debtor’s address in the first paragraph hereof or to Debtor’s most recent changed address on file with Secured Party, at least (unless another time period is set forth in this Agreement) twenty (20) days prior to the related action (or, if the Uniform Commercial Code specifies a longer period, such longer period prior to the related action), shall be deemed reasonable except for perishable items for which a shorter period shall be deemed reasonable.
   
  10. MISCELLANEOUS. This Agreement is in addition to and not in limitation of any other rights and remedies Secured Party may have by virtue of any other instrument or agreement heretofore, contemporaneously herewith or hereafter executed by Debtor or by law or otherwise. If any provision of this Agreement is contrary to applicable law, such provision shall be deemed ineffective without invalidating the remaining provisions hereof. If and to the extent that applicable law confers any rights or imposes any duties inconsistent with or in addition to any of the provisions of this Agreement, the affected provision shall be considered amended to conform thereto. No provision of this Agreement may be waived, altered or modified except in writing duly signed by the Secured Party and Secured Party shall not by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies hereunder. A waiver by Secured Party of any right or remedy hereunder on any one occasion, shall not be construed as a bar to or waiver of any such right or remedy which Secured Party would have on any future occasion nor shall Secured Party be liable for exercising or failing to exercise any such right or remedy.
   
  11. DEFINITIONS.
   
  (a) “Lien” shall mean any mortgage, deed of trust, lien, charge, security interest or encumbrance of any kind upon, or pledge of, any property or asset, whether now owned or hereafter acquired, and includes the acquisition of, or agreement to acquire any property or asset subject to any conditional sale agreement or other title retention agreement, including a lease on terms tantamount thereto or on terms otherwise substantially equivalent to a purchase.
   
  (b) “Person” shall mean and include an individual, partnership, corporation, trust, joint ventures, associations, joint stock company, limited liability company, unincorporated organization and a Government or any department or agency thereof.
   
  (c) “Code” shall mean the Uniform Commercial Code of Illinois as the same may be in effect from time to time.
   
  12. FINANCING STATEMENTS. At request of Secured Party, Debtor will join with Secured Party in executing one or more financing statements pursuant to the Uniform Commercial Code in form satisfactory to Secured Party. Debtor hereby authorizes Secured Party to file a financing statement signed only by Secured Party in all places where necessary to perfect Secured Party’s security interest in the Collateral in all jurisdictions where such authorization is permitted by the Code. Without limiting the foregoing Debtor agrees that whenever the Code requires Debtor to sign a financing statement for filing purposes, Debtor hereby appoints Secured Party or any of Secured Party’s representatives as Debtor’s attorney and agent, with full power of substitution, to sign or endorse Debtor’s name on any such financing statement or other document and authorizes Secured Party to file such a financing statement in all places where necessary to perfect Secured Party’s security interest in the Collateral; and Debtor ratifies all acts of Secured Party and said representatives and agrees to hold Secured Party and said representatives harmless from all acts of commission or omission or any error of judgment or mistake of fact or law pertaining thereto taken or made in the good faith exercise of the Secured Party’s rights. A carbon, photographic or other reproduction of this Agreement or of a financing statement is sufficient as a financing statement. Upon full payment of all Obligations, the Agreement and the Lien or charge created hereby or resulting herefrom shall cease to exist and Secured Party shall file all termination statements requested by Debtor necessary to accomplish this purpose.   
  
 
    	 
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  13. SUBORDINATION. Notwithstanding anything to the contrary in this Agreement:
   
  (a) Secured Party by acceptance of the Subordinated Note and this Agreement, agrees that the indebtedness evidenced by the Subordinated Note, and any renewals or extensions thereof, shall at all times and in all respects be subordinate and junior in right of payment to any Senior Indebtedness to Senior Lenders (each of “Senior Indebtedness” and “Senior Lender” having the meaning given such terms in the Subordinated Note) now or hereafter existing, and any pledge, security interest or liens granted or agreed to by Debtor to Secured Party to secure the performance of the obligations under the Subordinated Note shall at all times and in all respects be subordinate and junior to any pledge, security interest or liens granted or agreed to by Debtor to (or affecting Debtor’s assets favoring) the holders of the Senior Indebtedness. 
   
  (b) In the event of any insolvency or bankruptcy proceedings, and any receivership, liquidation, reorganization, arrangement or other similar proceedings in connection therewith, relative to the Debtor or to its creditors, as such, or to its property, and in the event of any proceedings, for voluntary liquidation, dissolution or other winding-up of the Debtor, whether or not involving insolvency or bankruptcy, then the holder(s) of Senior Indebtedness shall be entitled to receive payment in full of all principal, premium and interest on all Senior Indebtedness before the Secured Party is entitled to receive any further payment on account of principal, premium or interest upon the Subordinated Note or exercise its rights (including without limitation under this Agreement) as to the Collateral.
   
  (c) Secured Party and each and every other assignee of this Subordinated Security Agreement by acceptance of the Subordinated Note and this Agreement (or acceptance of an assignment hereof) agrees for the benefit of each holder of Senior Indebtedness (and for the benefit of each Senior Lender of future Senior Indebtedness expressly contemplated within the definitions thereof in the Subordinated Note (as defined below), upon the written request of Debtor (for a prospective lender) or a then current Senior Lender) to promptly execute and deliver a subordination and inter-creditor agreement confirming the subordination of this Agreement to that current or prospective Senior Lender’s priority rights in the form and substance as reasonably requested by the applicable current or prospective Senior Lender; provided that (i) any Senior Lender shall recognize and not materially restrict Secured Party’s rights under the Debt Conversion Agreement of even date herewith between Debtor and Secured Party and Secured Party’s Option thereunder; and (ii) further provided that such subordination and inter-creditor agreement is no more restrictive to Secured Party’s rights in material respects than the Subordination and Intercreditor Agreement of even date herewith between Secured Party and ACF FINCO 1 LP (for clarification; an increase in the aggregate Senior Indebtedness amount, including increases in credit limit(s) or loan amount(s) outstanding within those limit(s) of the current Senior Lender or prospective Senior Lenders’ credit facility, is permitted and is not a factor in determining whether (a) there is a ‘material’ or other restriction on Secured Party’s rights or (b) an agreement is ‘more restrictive to Secured Party’s rights’, under any of the referenced agreements). 
   
  ***SIGNATURE PAGE FOLLOWS***   
  
 
    	 
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  The parties hereto have caused this Agreement to be duly executed by Secured Party and Debtor as of the day and year first above written.
      	   
	DEBTOR:	   

	 	 	 	 
	   
	  General Employment Enterprises, Inc., 
an Illinois corporation
	   

	   
	   
	   
	   

	   
	   
	   
	   

		By:		   

	   
	  Print Name: 
		   

	   
	  Its: 
		   

	   
	   
	   
	   

	   
	  With an address of:  
  184 Shuman Blvd., Ste. 420  
  Naperville, Illinois 60563 
	   

	   
	   
	   
	   

	   
	   
	    
	   

	   
	  SECURED PARTIES:  
	   

	   
	     
	   

	   
	   
	   

	   
	   
	   

	   
	  William Daniel Dampier, individually
	   

	   
	   
	   

	   
	   
	   

	   
	  Carol Lee Dampier, individually  

	   
	   
	   

	   
	  With an address of:  

	   
	  9930 East Progress Circle  

	   
	  Greenwood Village, CO 80111  

   
   
  7job_ex103.htm

EXHIBIT 10.3
   
  REGISTRATION RIGHTS AGREEMENT

   
  THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”), dated as of October 2, 2015, is made by and between General Employment Enterprises, Inc., an Illinois corporation (the “Company”), and JAX Legacy – Investment 1, LLC, a Florida limited liability company (the “Investor”).
   
  R E C I T A L S
   
  WHEREAS, in connection with that certain Subscription Agreement of even date herewith by and between the Company and the Investor (the “Subscription Agreement”), the Investor purchased from the Company a promissory note in the original principal amount of $4,185,000 (the “Note”), a portion of the interest on which is payable in shares of the Company’s common stock; and
   
  WHEREAS, to induce the Investor to purchase the Note, the Company has agreed to grant the Investor certain rights with respect to registration of Registrable Securities under the Securities Act pursuant to the terms of this Agreement.
   
  AGREEMENT
   
  NOW, THEREFORE, the Company and the Investor hereby covenant and agree as follows:
   
  1. Recitals. The recitals set forth above are true and correct and are incorporated herein by reference.
   
  2. Certain Definitions. As used in this Agreement, the following terms shall have the following respective meanings:
   
  “Commission” shall mean the Securities and Exchange Commission, or any other federal agency at the time administering the Securities Act and the Exchange Act;
   
  “Effectiveness Period” shall have the meaning set forth in Section 4(b) of this Agreement;
   
  “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations of the Commission issued under such Act, as they each may, from time to time, be in effect;
   
  “Offering” shall refer to the Company’s offering of the Note;
   
  “Piggyback Registration” shall have the meaning set forth in Section 3(a) of this Agreement;
   
  “Register,” “registered” and “registration” each shall refer to a registration of the Registrable Securities effected by preparing and filing a registration statement or statements or similar documents in compliance with the Securities Act and the declaration or ordering of effectiveness of such registration statement or document by the Commission;    
    	 
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  “Registrable Securities” shall mean the shares of common stock of the Company issued or issuable as interest payments under the Note, and any shares of common stock issued as a dividend or other distribution with respect to, or in exchange for or in replacement of, shares of common stock of the Company issued or issuable as interest payments under the Note; provided, however, that any such Registrable Securities shall cease to be Registrable Securities (i) when subject to an effective registration statement under the Securities Act as provided for hereunder, or (ii) upon any sale pursuant to a registration statement or Rule 144 under the Securities Act or (iii) at such time, after three years from the date of this Agreement, as they become eligible for sale without volume limitations or other restrictions pursuant to Rule 144 under the Securities Act or another similar exemption under the Securities Act; provided, further, that the maximum amount of Registrable Securities at any one time shall be subject to any limits imposed by the Commission pursuant to Rule 415;
   
  “Securities Act” shall mean the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of the Commission issued under such Act, as they each may, from time to time, be in effect;
   
  “Subscription Agreement” shall have the meaning set forth in the Recitals;
   
  Capitalized terms used but not defined herein shall have the meanings set forth in the Subscription Agreement.
   
  3. Piggyback Registrations.
   
  (a) Whenever the Company proposes to register (including, for this purpose, a registration effected by the Company for other shareholders) any of its securities under the Securities Act (other than pursuant to registration pursuant to a registration statement on Form S-4 or S-8 or any successor forms thereto), and the registration form to be used may be used for the registration of Registrable Securities (a “Piggyback Registration”), the Company will give written notice to the Investor of its intention to effect such a registration and will, subject to the provisions of Section 3(b) hereof, include in such registration and cause to be registered all Registrable Securities with respect to which the Company has received a written request for inclusion therein within twenty (20) days after the receipt of the Company’s notice.
   
  (b) If a Piggyback Registration is an underwritten secondary registration on behalf of holders of the Company’s securities, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability of the offering, the Company will include in such registration a pro rata share of Registrable Securities requested to be included in such registration statement as calculated by dividing the number of Registrable Securities requested to be included in such registration statement by the number of the Company’s securities requested to be included in such registration statement by all selling security holders. In such event, the Investor shall continue to have registration rights under this Agreement with respect to any Registrable Securities not so included in such registration statement
   
  (c) Notwithstanding the foregoing, if, at any time after giving a notice of Piggyback Registration and prior to the effective date of the registration statement filed in connection with such registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such determination to each record holder of Registrable Securities and, following such notice, (i) in the case of a determination not to register, shall be relieved of its obligation to register any Registrable Securities in connection with such registration, and (ii) in the case of determination to delay registering, shall be permitted to delay registering any Registrable Securities for the same period as the delay in registering such other securities. The expenses of such withdrawn registration shall be borne by the Company as Registration Expenses, except for any expenses that are Selling Expenses    
    	 
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  4. Registration Procedures. If and whenever the Company is required by the provisions of Section 3 hereof to effect the registration of any Registrable Securities, the Company will, as expeditiously as possible:
   
  (a) prepare and file with the Commission the registration statement with respect to such securities and use its commercially reasonable efforts to cause such registration statement to become effective in an expeditious manner;
   
  (b) prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary, and use commercially reasonable efforts to keep the Piggyback Registration continuously effective under the Securities Act for a period of up to one hundred twenty (120) days (as requested by the Investor) or, if earlier, until the distribution of the Registrable Securities has been completed(the “Effectiveness Period”), and comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such registration statement in accordance with the intended method of disposition set forth in such registration statement for such period; provided, however, that such one hundred twenty (120) day period shall be extended (i) for a period of time equal to the period the Investor refrains, at the request of an underwriter of securities of the Company, from selling any securities included in such registration, and (ii) for up to thirty (30) days, if necessary, to keep the registration statement effective until all such Registrable Securities are sold in the case of any registration of Registrable Securities on Form S-3 that are intended to be offered on a continuous or delayed basis, subject to compliance with applicable Commission rules;
   
  (c) furnish to each seller of Registrable Securities and to each underwriter such number of copies of the registration statement and the prospectus included therein (including each preliminary prospectus) in conformity with the requirements of the Securities Act, and such other documents as such persons reasonably may request in order to facilitate the intended disposition of the Registrable Securities covered by such registration statement;
   
  (d) use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the sellers of Registrable Securities; provided that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company already is subject to service in such jurisdiction and except as may be required by the Securities Act; and
   
  (e) use its commercially reasonable efforts to cause all Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed.
   
  5. Obligations of Investor. The Investor shall furnish to the Company such information regarding such Investor, the number of Registrable Securities owned and proposed to be sold by it, the intended method of disposition of such securities and any other reasonable information as shall be required to effect the registration of the Registrable Securities, and cooperate with the Company in preparing the registration statement and in complying with the requirements of the Securities Act.    
    	 
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  6. Expenses.
   
  (a) All expenses incurred by the Company in complying with Sections 3 and 4, without limitation, all registration, filing and qualification fees (including the fees of the Commission and any other regulatory body with which the Company is required to file), printing expenses, fees and disbursements of counsel and independent public accountants for the Company, fees and expenses (including counsel fees) incurred in connection with complying with state securities or “blue sky” laws, fees and expenses of one counsel for the Investors and fees of transfer agents and registrars are called “Registration Expenses.” All underwriting discounts and selling commissions applicable to the sale of Registrable Securities are called “Selling Expenses.”
   
  (b) The Company will pay all Registration Expenses in connection with any registration statement filed hereunder, and the Selling Expenses in connection with each such registration statement shall be borne by the participating sellers in proportion to the number of Registrable Securities sold by each or as they may otherwise agree.
   
  7. Termination. All of the Company’s obligations to register Registrable Securities shall terminate upon the date on which the Investor and all of its assignees who are permitted assignees hold no Registrable Securities or all of the shares of common stock of the Company issued or issuable as interest payments under the Note cease to be Registrable Securities.
   
  8. Additional Obligations of the Company.
   
  (a) The Company shall use commercially reasonable efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act.
   
  (b) The Company shall furnish to any holder of Registrable Securities, so long as such holder owns any Registrable Securities, upon request (i) a written statement by the Company that it has complied with the reporting requirements of Commission Rule 144, the Securities Act, and the Exchange Act, or that it qualifies as a registrant whose securities may be resold pursuant to Form S 3 (at any time after the Company so qualifies), but only to the extent true; and (ii) such other information as may be reasonably requested in availing any such holder of any rule or regulation of the SEC that permits the selling of any such securities without registration or pursuant to Form S 3 (at any time after the Company so qualifies to use such form).
   
  (c) To the extent permitted by law, the Company will indemnify and hold harmless each seller of Registrable Securities, and the directors, members, officers, partners and stockholders of each such seller, legal counsel and accountants for each such seller, any underwriter (as defined in the Securities Act) for each such seller; and each Person, if any, who controls such seller or underwriter within the meaning of the Securities Act or the Exchange Act, against any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in respect thereof) arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law, including any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding related thereto; provided, however, that the indemnity agreement contained in this clause (c) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such seller, underwriter, controlling Person, or other aforementioned Person expressly for use in connection with such registration. The obligations of the Company under this clause (c) shall survive the completion of any offering of Registrable Securities in a Piggyback registration, and otherwise shall survive the termination of this Agreement.    
    	 
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  9. Miscellaneous.
   
  (a) All covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto (including without limitation transferees of any Registrable Securities, each of which is a third party beneficiary of this Agreement), whether so expressed or not. The Company acknowledges, agrees and understands that the Investor may assign and transfer the Registrable Securities to Investor’s members, and that in such event, such transferees shall inure to the rights of the Investor contained in this Agreement, and shall comply with the Investor’s obligations contained in this Agreement, with respect to the Registrable Securities so transferred.
   
  (b) Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by electronic mail; or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:
      	   
	  If to the Company:  
	   
	  General Employment Enterprises, Inc.
184 Shuman Blvd., Ste. 420
Naperville, IL 60563
Attn: Andrew Norstrud, CFO

	   
	   
	   
	   

	   
	  If to the Investor:   
	   
	  Jax Legacy – Investment 1, LLC
One Independent Drive, Suite 1200
Jacksonville, FL 32205

   

  or at such other address and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) electronically generated by the sender's email containing the time, date, recipient or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively
   
  (c) This Agreement shall be governed by and construed under the laws of the State of Florida. THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.
   
  (d) This Agreement may not be amended or modified without the written consent of the Company and the Investor.
   
  (e) Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof. No waiver shall be effective unless and until it is in writing and signed by the party granting the waiver.
   
  (f) This Agreement may be executed in two or more counterparts (including by facsimile or .pdf transmission) each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.
   
  (g) This Agreement and the other documents referenced herein constitute the entire agreement among the Company and the Investor relative to the subject matter hereof and supersedes in its entirety any and all prior agreements, understandings and discussions with respect thereto.
    
  [Signature Page Follows]    
    	 
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  IN WITNESS WHEREOF, this Registration Rights Agreement has been executed by Investor and by the Company on the date first set forth above.
   
    	   
	General Employment Enterprises, Inc.	   

	 	 	 	 
		By:		   

	   
	  Name:
	Andrew Norstrud	   

	   
	  Title:
	Chief Financial Officer	   

   
    	   
	  JAX Legacy – Investment 1, LLC 
   
  Jax Legacy Manager, LLC, its Manager
	   

	 	 	 	 
		By:		   

	   
	   
	G. Ray Driver, Jr., Manager	   

   
  
6

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