Document:

Exhibit

Exhibit 10.2

RESTRICTED STOCK UNIT & CASH BONUS AWARD AGREEMENT
PURSUANT TO THE
JASON INDUSTRIES, INC. 2014 OMNIBUS INCENTIVE PLAN
(EBITDA-Vesting)
*  *  *  *  *

Participant:                            

Grant Date:                            

Target Number of EBITDA-Vesting Restricted Stock Units Granted:    ______  (the “RSUs”)   

Target Cash Bonus Amount: $______________________ (the “Cash Bonus”)

*  *  *  *  *

THIS RESTRICTED STOCK UNIT & CASH BONUS AWARD AGREEMENT (this “Agreement”), dated as of the Grant Date specified above, is entered into by and between Jason Industries, Inc., a corporation organized in the State of Delaware (the “Company”), and the Participant specified above, pursuant to the Jason Industries, Inc. 2014 Omnibus Incentive Plan, as amended from time to time (the “Plan”).

WHEREAS, the Company believes it to be in the best interests of the Company and its stockholders for Participant to receive the RSUs and Cash Bonus (together, the “Award”) provided herein to the Participant; and

WHEREAS, the Committee and the Board have authorized the grant of this Award.

NOW, THEREFORE, in consideration of the mutual covenants and promises herein set forth, the parties mutually covenant and agree as follows:
1.Incorporation By Reference; Plan Document Receipt.  This Agreement is subject in all respects to the terms and provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly intended not to apply to the Award provided hereunder), all of which terms and provisions are made a part of and incorporated in this Agreement as if they were each expressly set forth herein.  Any capitalized term not defined in this Agreement shall have the meaning as set forth in the Plan.  The Participant hereby acknowledges that the Participant has received a copy of the Plan and has read the Plan carefully and fully understands its contents.  In the event of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.
2.    Grant of Award.  The Company hereby grants to the Participant, as of the Grant Date specified above, the Award  specified above, subject to the vesting criteria set forth in 

	
			
	 
	 
	 

Section 3 below.  Except as otherwise provided by the Plan, the Participant agrees and understands that nothing contained in this Agreement provides, or is intended to provide, the Participant with any protection against potential future dilution of the Participant’s interest in the Company for any reason, and no adjustments shall be made for dividends in cash or other property, distributions or other rights in respect of the shares of Common Stock underlying the RSUs, except as otherwise specifically provided for in the Plan or this Agreement.
3.    Vesting.
(a)    EBITDA-Vesting.  The Award shall become vested based upon the Company’s Cumulative EBITDA for the period beginning [___________] and ending on [___________________] (the “Measurement Period”), as follows, provided that the Participant has not incurred a Termination of Employment prior to the last day of the Measurement Period:
	
			
	Cumulative EBITDA (as a % of Target Cumulative EBITDA)
	Vested Percentage of RSUs
	Vested Percentage of Cash Bonus

	Less than [___]%
	0% of Target RSUs
	0% of Target Cash Bonus

	[___]% (Threshold)
	[___]% of Target RSUs
	[___]% of Target Cash Bonus

	[___]%  (Target)
	[___]% of Target RSUs
	[___]% of Target Cash Bonus

If the actual Cumulative EBITDA achieved for the Measurement Period is between Threshold and Target in the table above, then the vested percentage of the RSUs and Cash Bonus shall be determined using linear interpolation between the two applicable vested percentages.  For example, if the actual Cumulative EBITDA achieved is equal to [___]% of the Target Cumulative EBITDA then [___]% of the Target RSUs and [___]% of the Target Cash Bonus shall vest.  
“Target Cumulative EBITDA” shall mean $[__________], subject to adjustment for any Extraordinary Events (defined below).

“Cumulative EBITDA” shall mean the aggregate of the Company’s quarterly consolidated earnings before interest, taxes, depreciation and amortization, as set forth in the Company’s unaudited financial statements for the Measurement Period, as calculated in good faith by the Committee in consultation with the Company’s independent auditors, all as determined in accordance with prior Company practices consistently applied during the Measurement Period. In connection with any Cumulative EBITDA determination required hereunder, the Committee shall exclude, or adjust to reflect, the impact of any event or occurrence that the Committee determines in its good-faith discretion, in consultation with the Company’s independent auditors, should be appropriately excluded or adjusted, including (i) restructurings, discontinued operations, extraordinary items or events (including acquisitions and divestitures), and other unusual or non-recurring charges (including expenses incurred with acquisitions and divestitures, and expenses associated with 

	
			
	 
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compensatory equity grants), (ii) an event either not directly related to the operations of the Company or not within the reasonable control of the Company’s management, (iii) losses incurred as a result  of any goodwill impairment, or (iv) a change in tax law or accounting standards required by U.S. generally accepted accounting principles (“Extraordinary Events”).

The foregoing provisions of this Section 3(a) are subject to the provisions of Sections 3(b) through 3(f) hereof.

(b)    Involuntary Termination Without Cause; Voluntary Resignation For Good Reason.  Subject to Section 3(c) hereof, if the Participant incurs a Termination of Employment by the Company without Cause or there is a voluntary Termination of Employment by the Participant with Good Reason, then a pro-rated portion of the Award (determined by multiplying the number of RSUs and the amount of the Cash Bonus by a fraction, the numerator of which is the number of days during the period beginning on the Grant Date and ending on the date of Termination and the denominator of which is 1,095) shall continue to be eligible to vest in accordance with the achievement of the vesting conditions set forth in Section 3(a) hereof.  For purposes of this Agreement, “Good Reason” means, with respect to a Participant’s Termination of Employment:  (i) in the case where there is an employment agreement or similar agreement in effect between the Company or an Affiliate and the Participant on the Grant Date that defines “good reason” (or words or a concept of like import, such as “Constructive Termination”), a termination due to good reason (or words or a concept of like import), as defined in such agreement; or (ii) in any other case, the occurrence of any of the following events, without the Participant’s advance written consent: (A) any reduction in the Participant’s base salary; (B) any reduction in the Participant’s percentage of base salary available as incentive compensation or bonus opportunity,  unless such reduction occurs in connection with a corresponding increase in base salary; (C) a good faith determination by the Participant that there has been a material adverse change in the Participant’s working conditions or status with the Company or an Affiliate, including but not limited to (I) a significant negative change in the nature or scope of the Participant’s authority, powers, functions, duties or responsibilities, or (II) a significant reduction in the level of support services, staff, secretarial and other assistance, office space and accoutrements, or (III) a significant reduction in the authority, duties or responsibilities of the supervisor to whom the Participant is required to report; or (IV) the relocation of the Participant’s principal place of employment to a location more than fifty (50) miles from the Participant’s then-current principal place of employment with the Company or an Affiliate.  Notwithstanding the foregoing, a Participant’s termination shall not be considered to have occurred for “Good Reason” pursuant to clause (ii) above, unless (A) within ninety (90) days following the occurrence of one of the events listed above the Participant provides written notice to the Company setting forth the specific event constituting Good Reason, (B) the Company fails to remedy the event constituting Good Reason within thirty (30) days following its receipt of the Participant’s notice, and (C) the Participant actually terminates his or her employment with the Company and its Affiliates within thirty (30) days following the end of the Company’s remedy period.
(c)    Termination in Connection with a Change in Control.  In the event of the Participant’s Termination of Employment (i) by the Company without Cause, (ii) by voluntary resignation by the Participant with Good Reason, or (iii) due to the Participant’s death or Disability, 

	
			
	 
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in each case, during the period beginning ninety (90) days prior to the consummation of a Change in Control and ending two years following the date of consummation of a Change in Control, then any unvested RSUs or Cash Bonus that would have been forfeited on the date of the Participant’s Termination of Employment shall become fully vested at 100% of Target RSUs and 100% of Target Cash Bonus, as of the date of such Termination of Employment (or if the termination occurs prior to a Change in Control, on the date of the Change in Control).  
(d)    Termination by Death or Disability. Subject to Section 3(c), if the Participant’s Termination of Employment is due to the Participant’s death or Disability, then a pro-rated portion of the Award (determined by multiplying the number of RSUs and the amount of the Cash Bonus by a fraction, the numerator of which is the number of days during the period beginning on the Grant Date and ending on the date of Termination and the denominator of which is 1,095) shall continue to be eligible to vest in accordance with the achievement of the vesting conditions set forth in Section 3(a) hereof.
(e)    Voluntary Resignation.  If the Participant’s Termination of Employment is voluntary other than with Good Reason, then the unvested portion of the Award shall terminate and expire as of the date of such Participant’s Termination.
(f)    Termination for Cause. If the Participant’s Termination (i) is for Cause or (ii) is a voluntary Termination (as provided in Section 3(e)) after the occurrence of an event that is then grounds for a Termination for Cause, then the entire Award, whether vested or unvested, shall thereupon be forfeited and cancelled for no value without any consideration as of the date of such Termination.
(g)    Forfeiture.  Any portion of the Award that does not become vested in accordance with the provisions of this Section 3 shall be automatically forfeited and cancelled for no value without any consideration being paid therefor and otherwise without any further action of the Company whatsoever.  For the avoidance of doubt, any portion of the Award that does not become vested on or prior to the last day of the Measurement Period shall be automatically forfeited and cancelled as of such date for no value and without any consideration being paid therefore and otherwise without any further action of the Company whatsoever. 
4.    Settlement.  The Company shall settle the Award by (a) paying to the Participant the percentage of the Cash Bonus that vested and (b) issuing to the Participant the number of shares of Common Stock, free and clear of all restrictions (other than as may apply under Section 9) that correspond to the number of RSUs that have become so vested on the applicable vesting date as follows: (i) as soon as administratively practicable after the Committee certifies the extent of achievement of the EBITDA goals, but in no event later than two-and-a-half (21⁄2) months immediately following the end of the Measurement Period, or (ii) as soon as administratively practicable (but not more than thirty (30) days) after the Award vests pursuant to Section 3(b).
5.    Dividends; Rights as Stockholder.  Cash dividends paid (for dividend record dates occurring during the period from the Grant Date to the date Shares are issued hereunder pursuant to Section 4) on shares of Common Stock issuable hereunder shall be credited to a dividend book entry account on behalf of the Participant with respect to each RSU granted to the Participant, 

	
			
	 
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provided that such cash dividends shall not be deemed to be reinvested in shares of Common Stock and shall be held uninvested and without interest and paid in cash at the same time that the shares of Common Stock underlying the RSUs are delivered to the Participant in accordance with the provisions hereof.  Stock dividends on shares of Common Stock shall be credited to a dividend book entry account on behalf of the Participant with respect to each RSU granted to the Participant, provided that such stock dividends shall be paid in shares of Common Stock at the same time that the shares of Common Stock underlying the RSUs are delivered to the Participant in accordance with the provisions hereof.  For the sake of clarity, in the event any portion of the unvested RSUs is forfeited and cancelled in accordance with this Agreement or the Plan, any accrued dividends on shares of Common Stock underlying such forfeited RSUs shall be automatically forfeited for no value without any consideration being paid therefor and otherwise without any further action of the Company whatsoever.  Except as otherwise provided herein, the Participant shall have no rights as a stockholder with respect to any shares of Common Stock underlying any RSU unless and until the Participant has become the holder of record of such shares.
6.    Non-Transferability.  No portion of the Award may be sold, assigned, transferred, encumbered, hypothecated or pledged by the Participant, other than to the Company as a result of forfeiture of the RSUs as provided herein, unless and until the Award is settled in accordance with the provisions hereof and, with respect to the RSUs, the Participant has become the holder of record of shares of Common Stock issuable hereunder.
7.    Governing Law.  All questions concerning the construction, validity and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to the choice of law principles thereof.
8.    Withholding of Tax.  The Company shall have the power and the right to deduct or withhold, or require the Participant to remit to the Company, an amount sufficient to satisfy any federal, state, local and foreign taxes of any kind (including, but not limited to, the Participant’s FICA and SDI obligations) which the Company, in its sole discretion, deems necessary to be withheld or remitted to comply with the Code and/or any other applicable law, rule or regulation with respect to the Award and, if the Participant fails to do so, the Company may otherwise refuse to settle the Award as otherwise required pursuant to this Agreement.  The foregoing provisions of this Section 8 to the contrary notwithstanding, the Participant may direct the Company to satisfy any such required withholding obligation with regard to the Participant by reducing the amount of cash or shares of Common Stock, having an aggregate Fair Market Value equal to the statutory maximum withholding obligation, otherwise deliverable to the Participant pursuant to Section 4.
9.    Legend.  The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates representing shares of Common Stock issued pursuant to this Agreement, or may enter stop transfer orders consistent with the foregoing in the case of shares represented by book entry.  The Participant shall, at the request of the Company, promptly present to the Company any and all certificates representing shares of Common Stock acquired pursuant to this Agreement in the possession of the Participant in order to carry out the provisions of this Section 9.

	
			
	 
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10.    Securities Representations.  This Agreement is being entered into by the Company in reliance upon the following express representations and warranties of the Participant.  The Participant hereby acknowledges, represents and warrants that:
(a)    The Participant has been advised that the Participant may be an “affiliate” within the meaning of Rule 144 under the Securities Act and in this connection the Company is relying in part on the Participant’s representations set forth in this Section 10.
(b)    If the Participant is deemed an affiliate within the meaning of Rule 144 of the Securities Act, the shares of Common Stock issued hereunder may be sold only in compliance with Rule 144.
(c)    If the Participant is deemed an affiliate within the meaning of Rule 144 of the Securities Act, the Participant understands that (i) the exemption from registration under Rule 144 will not be available unless (A) a public trading market then exists for the Common Stock of the Company, (B) adequate information concerning the Company is then available to the public, and (C) other terms and conditions of Rule 144 or any exemption therefrom are complied with, and (ii) any sale of the shares of Common Stock issuable hereunder may be made only in limited amounts in accordance with the terms and conditions of Rule 144 or any exemption therefrom.
11.    Entire Agreement; Amendment.  This Agreement, together with the Plan, contains the entire agreement between the parties hereto with respect to the subject matter contained herein, and supersedes all prior agreements or prior understandings, whether written or oral, between the parties relating to such subject matter.  The Committee shall have the right, in its sole discretion, to modify or amend this Agreement to the extent permitted by the Plan.  
12.    Notices.  Any notice hereunder by the Participant shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof by the General Counsel of the Company.  Any notice hereunder by the Company shall be given to the Participant in writing and such notice shall be deemed duly given only upon receipt thereof at such address as the Participant may have on the payroll files with the Company.
13.    No Right to Employment.  Any questions as to whether and when there has been a Termination and the cause of such Termination shall be determined in the sole discretion of the Committee.  Nothing in this Agreement shall interfere with or limit in any way the right of the Company, its Subsidiaries or its Affiliates to terminate the Participant’s employment or service at any time, for any reason and with or without Cause.
14.    Transfer of Personal Data.  The Participant authorizes, agrees and unambiguously consents to the transmission by the Company (or any Subsidiary) of any personal data information related to the Award granted under this Agreement for legitimate business purposes (including, without limitation, the administration of the Plan).  This authorization and consent is freely given by the Participant.
15.    Compliance with Laws.  The grant of RSUs and the issuance of shares of Common Stock hereunder shall be subject to, and shall comply with, any applicable requirements 

	
			
	 
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of any foreign and U.S. federal and state securities laws, rules and regulations (including, without limitation, the provisions of the Securities Act, the Exchange Act and in each case any respective rules and regulations promulgated thereunder) and any other law, rule regulation or exchange requirement applicable thereto.  The Company shall not be obligated to issue the RSUs or any shares of Common Stock pursuant to this Agreement if any such issuance would violate any such requirements; provided, in such event as the Company is prohibited from issuing shares of Common Stock, the Company shall pay to the Participant (unless otherwise prohibited by law), within thirty (30) days following the date of vesting of RSUs, cash in an amount equal to the aggregate Fair Market Value of shares of Common Stock represented by such vested RSUs.  As a condition to the settlement of the RSUs, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate to evidence compliance with any applicable law or regulation.
16.    Binding Agreement; Assignment.  This Agreement shall inure to the benefit of, be binding upon, and be enforceable by the Company and its successors and assigns and the Participant and the Participant’s heirs, executors, administrators, legal representatives and permitted assigns.  The Participant shall not assign (except in accordance with Section 6 hereof) any part of this Agreement without the prior express written consent of the Company.
17.    Headings.  The titles and headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of this Agreement.
18.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument.
19.    Further Assurances.  Each party hereto shall do and perform (or shall cause to be done and performed) all such further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as either party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the Plan and the consummation of the transactions contemplated thereunder.
20.    Severability.  The invalidity or unenforceability of any provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.
21.    Acquired Rights.  The Participant acknowledges and agrees that: (a) the Company may terminate or amend the Plan at any time in accordance with the terms thereof as in effect on the Grant Date and not inconsistent with the provisions of Section 11 hereof; (b) the Award made under this Agreement is completely independent of any other award or grant and is made at the sole discretion of the Company; (c) no past grants or awards (including, without limitation, the Award granted hereunder) give the Participant any right to any grants or awards in the future whatsoever; and (d) any benefits granted under this Agreement are not part of the Participant’s 

	
			
	 
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ordinary salary, and shall not be considered as part of such salary in the event of severance, redundancy or resignation.
*  *  *  *  *

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

JASON INDUSTRIES, INC.

By:                        

Name:                        

Title:                        

PARTICIPANT

    

Name:    

	
			
	 
	9EX-10.1

 Exhibit 10.1 

WARRANT AGREEMENT 
 THIS
WARRANT AGREEMENT (this “Agreement”), dated as of July 3, 2017, is entered into by and between B. Riley Financial, Inc., a Delaware corporation (the “Company”), and Continental Stock Transfer & Trust Company, a New
York corporation (the “Warrant Agent”). 
 WHEREAS, in connection with the closing of the transactions contemplated by the Merger
Agreement by and among the Company, Foxhound Merger Sub, Inc., a Delaware corporation, Wunderlich Investment Company, Inc., a Delaware corporation and Stephen Bonnema, in his capacity as the Stockholder Representative, the Company will issue, among
other securities, shares of the Company’s common stock, par value $0.0001 per share (“Common Stock”) and warrants, with the Common Stock issuable upon exercise of the warrants (“Warrant Shares”) in substantially the form set
forth on Exhibit A hereto (the “Warrants”); 
 WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration, transfer, exchange, redemption and exercise of the Warrants; 

WHEREAS, the Company desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised,
and the respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and 

WHEREAS, all acts and things have been done and performed that are necessary to make the Warrants, when executed on behalf of the Company and
countersigned by or on behalf of the Warrant Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize the execution and delivery of this Agreement. 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows: 

1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and the
Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this Agreement. 

2. Warrants. 
 (a) Form
of Warrant. Each Warrant shall be in substantially the form of Exhibit A hereto, the provisions of which are incorporated herein and signed by, or bear the facsimile signature of, an authorized officer of the Company and the Warrant
Agent. In the event the person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect as if
he or she had not ceased to be such at the date of issuance. 

 (b) Registration of Warrant. The Warrant Agent, on behalf of the Company, shall maintain a
registry setting forth the name and address of the holder of the Warrant (“registered holder”), as provided by such registered holder to the Company or the Warrant Agent prior to the date hereof (the “Warrant Register”). The
Warrant Agent may deem and treat the registered holder as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the registered holder, and for all other purposes, absent written notice to the contrary. The Warrant
Agent shall register in the Warrant Register the exercise or the transfer of all or any portion of this Warrant pursuant to the terms of the Warrant. 

(c) Effect of Countersignature. Unless and until countersigned by the Warrant Agent pursuant to this Agreement, a Warrant shall be
invalid and of no effect and may not be exercised by the holder thereof. 
 3. Resignation, Consolidation, or Merger of Warrant Agent.

 (a) Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties
and be discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the
Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor
Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver an instrument
transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; upon request of any successor Warrant Agent the Company shall make, execute, acknowledge and deliver any and all
instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations. 

(b) Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof
to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any such appointment. 

(c) Merger or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with which it may be
consolidated or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor Warrant Agent under this Agreement without any further act. 

4. Fees and Expenses of Warrant Agent. 

(a) Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent hereunder
and will reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of its duties hereunder. 

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

5. Liability of Warrant Agent. 

(a) Reliance on Company Statement. Whenever in the performance of its duties under this Warrant Agreement the Warrant Agent shall deem
it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be
deemed to be conclusively proved and established by a statement signed by an executive officer of the Company and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it
pursuant to the provisions of this Agreement. 
 (b) Indemnity. The Warrant Agent shall be liable hereunder only for its own gross
negligence, willful misconduct or bad faith. The Company agrees to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable counsel fees, for anything done or omitted by the Warrant
Agent in the execution of this Agreement, except as a result of the Warrant Agent’s gross negligence, willful misconduct or bad faith. 

(c) Exclusions. The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the
validity or execution of any Warrant (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Warrant; nor shall it by any act hereunder be
deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock to be issued pursuant to this Agreement or any Warrant or as to whether any shares of Common Stock will when issued be valid and fully
paid and nonassessable. 
 (d) Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and
agrees to perform the same upon the terms and conditions herein set forth and, among other things, shall account promptly to the Company with respect to Warrants exercised and concurrently account for, and pay to the Company, all moneys received by
the Warrant Agent for the purchase of shares of Common Stock through the exercise of Warrants. 
 6. Miscellaneous Provisions. 

(a) Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind
and inure to the benefit of their respective successors and assigns. 
 (b) Notices. Any notice, statement or demand authorized by
this Warrant Agreement to be given or made by the Warrant Agent to the Company shall be delivered by hand or sent by registered or certified mail or overnight courier service, addressed (until another address is filed in writing by the Company with
the Warrant Agent) as follows: 

  
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 B. Riley Financial, Inc. 

21255 Burbank Boulevard, Suite 400 

Woodland Hills, California 91367 

Facsimile: (818) 746-9170 

Email: aforman@brileyfin.com 

Attn: Alan N. Forman 
 Any notice, statement or
demand authorized by this Agreement to be given or made by the Company to the Warrant Agent shall be delivered by hand or sent by registered or certified mail or overnight courier service, addressed (until another address is filed in writing by the
Warrant Agent with the Company) as follows: 
 Continental Stock Transfer & Trust Company 

17 Battery Place 
 New York, New
York 10004 
 Attn: Compliance Department 
 Any
notice, sent pursuant to this Warrant Agreement shall be effective, if delivered by hand, upon receipt thereof by the party to whom it is addressed, if sent by overnight courier, on the next business day of the delivery to the courier, and if sent
by registered or certified mail on the third day after registration or certification thereof. 
 (c) Applicable Law. The validity,
interpretation and performance of this Agreement and of the Warrants shall be governed in all respects by the laws of the State of Delaware, without giving effect to conflicts of law principles that would result in the application of the substantive
laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States
District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an
inconvenient forum. Any such process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in
Section 6(b) hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. 

(d) Persons Having Rights under this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any of the
provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the registered holders of the Warrants, any right, remedy, or claim under or by reason of this Warrant
Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Warrant Agreement shall be for the sole and exclusive benefit of the parties
hereto and their successors and assigns and of the registered holders of the Warrants. 

  
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 (e) Examination of the Warrant Agreement. A copy of this Agreement shall be available at
all reasonable times at the office of the Warrant Agent in the Borough of Manhattan, City and State of New York, for inspection by the registered holder of any Warrant. The Warrant Agent may require any such holder to submit his, her or its Warrant
for inspection by it. 
 (f) Counterparts. This Agreement may be executed in any number of original or facsimile counterparts and each
of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

(g) Effect of Headings. The section headings herein are for convenience only and are not part of this Warrant Agreement and shall not
affect the interpretation thereof. 
 (h) Amendments. All modifications or amendments to this Agreement shall require the written
consent of each of the signatories hereto. 
 (i) Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of this Agreement. 
 (j) Conflict. In the event that there is a
conflict or inconsistency between, or ambiguity arising as a result of, the terms of the Warrant and the terms of this Warrant Agreement, the terms of the Warrant shall control. 

[Signature page follows] 

  
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 IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and
year first above written. 
  

			
	 B. RILEY FINANCIAL, INC.

		
	By:	 	/s/ Phillip J. Ahn
	 Name: Phillip J. Ahn

	 Title: Chief Financial Officer & Operating Officer

	
	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
		
	By:	 	/s/ Kevin Jennings
	 Name: Kevin Jennings

	 Title: Vice President

 EXHIBIT A 

THIS SECURITY, AS WELL AS THE PURCHASER COMMON STOCK UNDERLYING THIS SECURITY, HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THIS SECURITY, AS WELL AS THE PURCHASER COMMON STOCK UNDERLYING THIS SECURITY, MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED (I) IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT, (II) IN THE ABSENCE OF 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 OR BLUE SKY LAWS, AS EVIDENCED (IF REQUIRED BY THE PURCHASER) BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE PURCHASER AND ITS TRANSFER AGENT OR (III) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE
SECURITIES ACT (PROVIDED THAT THE TRANSFEROR PROVIDES THE PURCHASER WITH REASONABLE ASSURANCES (IN THE FORM OF A SELLER REPRESENTATION LETTER AND A BROKER REPRESENTATION LETTER, IN EITHER CASE AS MAY BE APPLICABLE) THAT THE SECURITIES MAY BE SOLD
PURSUANT TO SUCH RULE). NO REPRESENTATION IS MADE BY THE PURCHASER AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT FOR RESALES OF THIS SECURITY, OR THE PURCHASER COMMON STOCK UNDERLYING THIS SECURITY. 

B. RILEY FINANCIAL, INC. 

WARRANT 
  

			
	 Warrant No. [ ]
	  	Dated: [ ]

 B. Riley Financial, Inc., a Delaware corporation (the “Purchaser”), hereby certifies that,
for value received, [WIC Stockholder] or its permitted assigns (the “Holder”), is entitled, upon the terms hereinafter set forth, to acquire from the Purchaser [ ] fully paid and nonassessable shares of Purchaser Common Stock
(“Warrant Shares”) at an initial purchase price per share of Purchaser Common Stock equal to the Warrant Price, at any time during the period (the “Exercise Period”) commencing on the date hereof and terminating at
5:00 p.m., New York time on July 3, 2022 (the “Expiration Date”). This Warrant (this “Warrant”) is being delivered pursuant to that certain Merger Agreement, dated as of May 17, 2017, among the Purchaser,
Merger Sub, Wunderlich Investment Company, Inc. (the “Company”), and the Stockholder Representative (the “Merger Agreement”) and pursuant to that certain Warrant Agreement by the Purchaser, and Continental Stock
Transfer & Trust Company, a New York corporation (the “Warrant Agent”). The term “Warrant Price” as used in this Warrant shall mean $17.50, subject to adjustment pursuant to
Section 5. 

 1. Definitions. In addition to the terms defined elsewhere in this Warrant, capitalized
terms that are not otherwise defined herein have the respective meanings given to such terms in the Merger Agreement. 
 2. [Reserved]. 

3. Duration of Warrant. This Warrant may be exercised only during the Exercise Period. In the event that this Warrant is not exercised
on or before the Expiration Date, this Warrant shall be automatically and immediately cancelled and terminated and shall forthwith become void and the Purchaser shall have no obligation to issue, and the Holder shall have no right to acquire, any
Warrant Shares under this Warrant. 
 4. Exercise of Warrant and Issuance of Warrant Shares 

(a) Exercise. Subject to the terms set forth herein, the right to purchase the Warrant Shares represented by this Warrant may be
exercised by the Holder hereof by surrendering it to the Purchaser, with an exercise notice, in the form attached hereto (the “Exercise Notice”), appropriately completed and duly executed, and by paying in full the Warrant Price for
the Warrant Shares thereby purchased, at the election of the holder, either: 
 (i) by tendering in cash, by certified or
cashier’s check payable to the order of the Purchaser, or by wire transfer of immediately available funds to an account designated by the Purchaser (such manner of exercise, a “Cash Exercise”); provided, that the Holder
provides the information on the Exercise Notice that is reasonably necessary for the Purchaser to issue the Warrant Shares in compliance with U.S. federal securities law; or 

(ii) without payment of cash, by reducing the number of Warrant Shares obtainable upon the exercise of this Warrant and payment
of the Warrant Price in cash so as to yield a number of Warrant Shares obtainable upon the exercise of this Warrant equal to quotient obtained by dividing (x) the product of the number of Warrant Shares, multiplied by the excess of the Fair
Market Value over the Warrant Price by (y) the Fair Market Value (such manner of exercise, a “Cashless Exercise”). For purposes of this Warrant, “Fair Market Value” means (A) if at the time of the Cashless
Exercise shares of Purchaser Common Stock is listed or quoted for trading on the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market, OTC Bulletin Board or any other national securities or
over-the-counter exchange (such principal exchange for Purchaser Common Stock, the “Exchange”), then the volume-weighted averages of the trading prices of
shares of Purchaser Common Stock on the applicable Exchange (as reported by Bloomberg L.P. or, if such information is no longer available from Bloomberg L.P., as available from a comparable internationally recognized source determined by the
Purchaser acting reasonably), on the fifteen (15) consecutive days on which shares of Purchaser Common Stock are traded on such Exchange (each such day, a “Trading Day”) ending on (and including) the Trading Day that is the
Trading Day immediately prior to such date; or (B) if at the time of the Cashless Exercise shares of Purchaser Common Stock is not listed or quoted for trading on an Exchange, then the fair market value, of a share of Purchaser Common Stock as
shall be determined by the Board of Directors of the Purchaser (the “Board”) in its good faith judgment. 

  
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 provided, however, that notwithstanding the foregoing, the issuance of shares of Purchaser Common
Stock or other securities upon the exercise of this Warrant shall be made without charge to the Holder for any issue in respect thereof; provided, however, if at any time the Purchaser Common Stock is not a “covered security”
under Section 18(b) of the Securities Act, the Purchaser may, at its option, require the exercise of this Warrant to be a Cashless Exercise. 

(b) Issuance of Common Stock on Exercise. As soon as commercially reasonable, but in any event within three (3) business days after
the exercise of this Warrant, and, in the event of a Cash Exercise, the clearance of the funds in payment of the Warrant Price, the Purchaser shall issue to the Holder of this Warrant, in book entry form, shares of Purchaser Common Stock to which
such Holder is entitled, registered in such name or names as may be directed by such Holder. The Purchaser’s obligations to issue and deliver the Warrant Shares in accordance with the terms hereof are absolute and unconditional. Nothing herein
shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, damages, a decree of specific performance and/or injunctive relief with respect to the Purchaser’s
failure to timely deliver shares of Purchaser Common Stock upon exercise of this Warrant pursuant to the terms hereof. 
 (c) Valid
Issuance. All shares of Purchaser Common Stock issued or delivered upon the proper exercise of this Warrant shall be newly issued shares or shares held in treasury by the Purchaser, duly authorized, validly issued, fully paid and nonassessable,
and free and clear of all Liens (other than restrictions imposed by applicable securities laws or Liens created by the Holder or its Affiliates) and shall not be subject to any preemptive rights or similar rights and shall rank pari
passu in all respects with other existing shares of Purchaser Common Stock. For purposes hereof, “Lien” means all mortgages, deeds of trust, liens, pledges, charges, security interests, easements, restrictive covenants, rights-of-way, leases, purchase agreements, options, and other encumbrances. At any time that this Warrant is outstanding, the Purchaser shall reserve and keep available a
number of shares of Purchaser Common Stock which the Purchaser may be liable to issue upon exercise of this Warrant in accordance with the terms and conditions of this Warrant. 

(d) Date of Issuance. Each person or entity in whose name any shares of Purchaser Common Stock are issued shall for all purposes be
deemed to have become the holder of record of such shares of Purchaser Common Stock on the date on which this Warrant was surrendered and payment of the Warrant Price was made, irrespective of the date of delivery of such certificate, except that,
if the date of such surrender and payment is a date when the share transfer books of the Purchaser are closed, such person or entity shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on
which the share transfer books are open. The Purchaser shall have no obligation to issue any physical stock certificates (provided that such book entry interests will continue to bear any required restrictive legends) in respect of any Warrant
Shares. 

  
 A-3 

 (e) No Fractional Shares or Scrip. No fractional shares of Purchaser Common Stock or other
equity interests or scrip representing fractional shares shall be issued upon exercise of this Warrant. In lieu of any fractional share to which a Holder would otherwise be entitled, the Holder shall be entitled to receive a cash payment equal to
the Fair Market Value of such fractional share of Purchaser Common Stock. 
 (f) No Rights as Stockholders. This Warrant does not
entitle the Holder to (i) receive dividends or other distributions, (ii) consent to any action of the stockholders of the Purchaser, (iii) receive notice of or vote at any meeting of stockholders, (iv) receive notice of any other
proceedings of the Purchaser or (v) exercise any other rights whatsoever, in any such case, as a stockholder of the Purchaser prior to the date of exercise hereof. 

(g) Revocation of Exercise. Holder may, at any time, but in any event within two (2) business days after the exercise of this
Warrant, prior to the issuance of the shares of Purchaser Common Stock, revoke all or part of the relevant Warrant exercise by delivery of a notice to such effect to Purchaser, whereupon Purchaser and Holder shall each be restored to their
respective positions immediately prior to the exercise of the relevant portion of this Warrant. 
 5. Certain Adjustments. The number
of Warrant Shares issuable upon exercise of this Warrant, as well as the Warrant Price, are subject to adjustment from time to time as set forth in this Section 5. 

(a) Stock Splits, Subdivisions, Reclassifications or Combinations. If the Purchaser shall at any time or from time to time
(i) declare, order, pay or make a dividend or make a distribution on Purchaser Common Stock in shares of Purchaser Common Stock, (ii) split, subdivide or reclassify the outstanding shares of Purchaser Common Stock into a greater number of
shares, or (iii) combine or reclassify the outstanding shares of Purchaser Common Stock into a smaller number of shares, the number of Warrant Shares issuable upon exercise of this Warrant at the time of the record date for such dividend or
distribution or the effective date of such split, subdivision, combination or reclassification shall be proportionately adjusted so that the Holder immediately after such record date or effective date, as the case may be, shall be entitled to
purchase the number of shares of Purchaser Common Stock which such holder would have owned or been entitled to receive in respect of the shares of Purchaser Common Stock subject to this Warrant after such date had this Warrant been exercised in full
immediately prior to such record date or effective date, as the case may be (disregarding whether or not this Warrant had been exercisable by its terms at such time), subject to the provisions of Section 5(e). In the event
of such adjustment, the Warrant Price in effect at the time of the record date for such dividend or distribution or the effective date of such split, subdivision, combination or reclassification shall be immediately adjusted to the number obtained
by dividing (x) the product of (1) the number of Warrant Shares issuable upon the exercise of this Warrant in full before the adjustment determined pursuant to the immediately preceding sentence (disregarding whether or not this Warrant
was exercisable by its terms at such time) and (2) the Warrant Price in effect immediately prior to the record or effective date, as the case may be, for the dividend, distribution, split, subdivision, combination or reclassification giving
rise to such adjustment by (y) the new number of Warrant Shares issuable upon exercise of the Warrant in full determined pursuant to the immediately preceding sentence (disregarding whether or not this Warrant is exercisable by its terms at
such time). 

  
 A-4 

 (b) Other Distributions. If the Purchaser shall fix a record date for the making of a
dividend or other distribution (by spin-off or otherwise) on shares of Purchaser Common Stock, whether in cash, equity interests of the Purchaser, other securities of the Purchaser, evidences of indebtedness
of the Purchaser or any other Person or any other property, or any combination thereof, excluding (i) dividends or distributions subject to adjustment pursuant to Section 5(a) or (ii) cash dividends solely on
shares of Purchaser Common Stock out of surplus or net profits legally available therefor (determined in accordance with the General Corporation Law of the State of Delaware), then in each such case, the number of Warrant Shares issuable upon
exercise of this Warrant (disregarding whether or not this Warrant had been exercisable by its terms at such time) shall be increased by multiplying such number of Warrant Shares by a fraction, the numerator of which is the Fair Market Value per
share of Purchaser Common Stock on the last trading day preceding the first date on which the Purchaser Common Stock trades regular way on the Exchange on which the Purchaser Common Stock is listed or admitted to trading without the right to receive
such dividend or distribution and the denominator of which is the Fair Market Value per share of Purchaser Common Stock on such trading day less the Fair Market Value of the cash and/or any other property, as applicable, to be so paid or distributed
in such dividend or distribution in respect of one share of Purchaser Common Stock (in each case as of the record date of such dividend or distribution); such adjustment shall take effect on the record date for such dividend or distribution. In the
event of such adjustment, the Warrant Price shall immediately be decreased by multiplying such Warrant Price by a fraction, the numerator of which is the number of Warrant Shares issuable upon the exercise of this Warrant in full immediately prior
to such adjustment (disregarding whether or not this Warrant was exercisable by its terms at such time), and the denominator of which is the new number of Warrant Shares issuable upon exercise of this Warrant determined in accordance with the
immediately preceding sentence. Notwithstanding the foregoing, in the event that the Fair Market Value of the cash and/or any other property, as applicable, to be so paid or distributed in such dividend or distribution in respect of one share of
Purchaser Common Stock (in each case as of the record date of such dividend or distribution) is equal to or greater than the Fair Market Value per share of Purchaser Common Stock on such record date, then proper provision shall be made such that
upon exercise of this Warrant, the Holder shall receive, in addition to the applicable Warrant Shares, the amount and kind of such cash and/or any other property such Holder would have received had such Holder exercised this Warrant immediately
prior to such record date (disregarding whether or not this Warrant had been exercisable by its terms at such time). For purposes of the foregoing, in the event that such dividend or distribution in question is ultimately not so made, the Warrant
Price and the number of Warrant Shares issuable upon exercise of this Warrant then in effect shall be readjusted, effective as of the date when the Board determines not to make such dividend or distribution, to the Warrant Price that would then be
in effect and the number of Warrant Shares that would then be issuable upon exercise of this Warrant if such record date had not been fixed. 

(c) Replacement of Securities upon Reorganization, etc. In case of any recapitalization, reclassification or reorganization of the
outstanding Purchaser Common Stock (other than a change under Section 5(a) or Section 5(b) or that solely affects the par value of such Purchaser Common Stock), or in the case of any amalgamation,
conversion, merger or consolidation of the Purchaser with or into another corporation or other entity (other than a consolidation or merger in which the Purchaser is the continuing corporation), or in the case of any sale, lease, license, transfer
or conveyance to another corporation or entity of the assets or 

  
 A-5 

 
other property of the Purchaser as an entirety or substantially as an entirety in connection with which the Purchaser is dissolved, liquidated or wound up or any exchange or tender offer for
equity securities of the Purchaser (a “Reorganization Transaction”), the Holder of this Warrant shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in this Warrant and
in lieu of the Purchaser Common Stock immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon
such Reorganization Transaction that the Holder of this Warrant would have received if such holder had exercised this Warrant immediately prior to such event (the “Alternative Issuance”); provided, however, that
(i) if the holders of Purchaser Common Stock were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon such Reorganization Transaction and the Holder fails to make an election,
then the kind and amount of securities, cash or other assets constituting the Alternative Issuance for which this Warrant shall become exercisable shall be deemed to be the weighted average of the kind and amount received per share by the holders of
Purchaser Common Stock in such Reorganization Transaction that affirmatively make such election, and (ii) if a tender, exchange or redemption offer shall have been made to and accepted by the holders of Purchaser Common Stock under
circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of
1934, as amended (the “Exchange Act”)) of which such maker is a part, and together with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and
any members of any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the outstanding Purchaser Common
Stock, the Holder of record of this Warrant shall be entitled to receive as the Alternative Issuance, the highest amount of cash, securities or other property to which such holder would actually have been entitled as a stockholder if the Holder had
exercised this Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the Purchaser Common Stock held by such Holder had been purchased pursuant to such tender or exchange offer, subject to adjustments (from
and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in this Section 5. Subject to Section 7(a), in case of any
Reorganization Transaction, provision shall be made in such transaction so that the holders of this Warrant shall be entitled, but not obligated, to participate in whole or in part in such Reorganization Transaction directly by surrendering
such Warrant in exchange for the kind and amount of shares of stock or other securities or property (including cash) receivable in such Reorganization Transaction applicable to this Warrant on an as-converted
basis. If any recapitalization, reclassification or reorganization also results in a change in Common Stock covered by both Section 5(a) and this Section 5(c), then such adjustment shall be made
pursuant to both Section 5(a) and this Section 5(c). The provisions of this Section 5(c) shall similarly apply to successive recapitalizations, reclassifications,
reorganizations, amalgamations, conversions, mergers or consolidations, sales, leases, licenses, transfers, conveyances and other similar transactions, and the Purchaser shall not effect any such transaction unless, prior to the consummation
thereof, the successor person or entity (if other than the Purchaser) resulting from such transaction, shall assume, by written instrument substantially similar in form and substance to this Warrant and reasonably satisfactory to the majority in
interest of the Holder, the obligation to deliver to the Holder such shares of stock, securities or assets which, in accordance with the foregoing 

  
 A-6 

 
provisions, such registered Holder shall be entitled to receive upon exercise of this Warrant held by them. With respect to any corporate event or other transaction contemplated by the provisions
of this Section 5(c), the Holder shall have the right to elect prior to the consummation of such event or transaction, to give effect to the exercise rights contained herein instead of giving effect to the provisions
contained in this Section 5(c) with respect to this Warrant. 
 (d) Notices of Changes in Warrant. Upon
every adjustment of the Warrant Price or the number of Warrant Shares issuable upon exercise of this Warrant, the Purchaser shall give prompt written notice thereof to the Holder, which notice shall state the increase or decrease, if any, in the
Warrant Price resulting from such adjustment and the increase or decrease, if any, in the number of Warrant Shares purchasable at the Warrant Price, setting forth in reasonable detail the method of calculation and the facts upon which such
calculation is based. Upon the occurrence of any event specified in Sections 5(a), 5(b), or 5(c), the Purchaser shall give written notice of the occurrence of such event to the Holder of record of this Warrant, at the
last address set forth for such holder in the Warrant Register, of the record date or the effective date of the event. In the case of any action which would require the fixing of a record date, such notice shall be given at least 10 days prior to
the date so fixed. In case of all other action, unless such notice and the contents thereof shall be deemed to constitute material non-public information, such notice shall be given at least 10 days prior to
the taking of such proposed action. Failure to give any notice pursuant to this Section 5(d), or any defect therein, shall not affect the legality or validity of such event. 

(e) No Change to Warrant. This Warrant need not be changed because of any adjustment pursuant to Section 5.

 (f) Rounding of Calculations; Minimum Adjustments. All calculations under this Section 5 shall be made to
the nearest one-tenth (1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the case may be. Any provision of this
Section 5 to the contrary notwithstanding, no adjustment in the Warrant Price or the number of Warrant Shares into which this Warrant is exercisable shall be made if the amount of such adjustment would be less than $0.01 or
one-tenth (1/10th) of a share of Purchaser Common Stock, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together with any subsequent
adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Purchaser Common Stock, or more. 

6. Transfers. 
 (a)
Assignment Form; Registration. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Purchaser, subject to this Section 6 and providing the Purchaser with written notice of
such transfer. After prompt written notice of such transfer, the Purchaser shall register such transfer, from time to time, of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached hereto duly
completed and signed (each, an “Assignment Form”), to the Purchaser at its address specified herein. Upon any such registration of transfer, a new warrant (any such new warrant, a “New Warrant”) evidencing the
portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so 

  
 A-7 

 
transferred, if any, shall be issued to the transferring Holder. The acceptance of any New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights
and obligations of a holder of this Warrant. 
 (b) Opinion. In connection with any such transfer, upon reasonable request by the
Purchaser to such transferring Holder at the expense of such Holder, such Holder will give to the Purchaser an opinion of counsel (which may be in-house counsel or outside counsel to such Holder or its
investment adviser) in form and substance reasonably satisfactory to the Purchaser to the effect that the proposed transfer of this Warrant may be effected without registration or qualification of this Warrant under the Securities Act or California,
Delaware or New York state securities law. 
 (c) Exchange of Warrant. This Warrant may be surrendered to the Purchaser, together with
a written request for exchange, and thereupon the Purchaser shall issue in exchange therefor the New Warrant as requested by the Holder of record of this Warrant so surrendered, representing an equal aggregate number of Warrant Shares, registered in
the name of such surrendering holder. 
 (d) Fractional Warrants. The Purchaser shall not be required to effect any registration of
transfer or exchange which shall result in the issuance of a fraction of a warrant. 
 (e) Service Charges. No service charge shall be
made for any exchange or registration of transfer of this Warrant. 
 7. Other Provisions Relating to Rights of the Holder of this
Warrant. 
 (a) Mandatory Exercise Upon Change of Control. Notwithstanding anything to the contrary contained herein, in the event
of the consummation prior to the Exercise Period of a Reorganization Transaction where all outstanding shares of Purchaser Common Stock are exchanged solely for cash consideration, the Purchaser shall have the right to cause the Holder to exercise
this Warrant; provided that the Purchaser must give written notice to the Holder at least ten (10) business days prior to the date of consummation of such qualifying Reorganization Transaction, which notice shall specify the expected
date on which such qualifying Reorganization Transaction is to take place and set forth the facts with respect thereto as shall be reasonably necessary to indicate the amount of cash deliverable upon exercise of this Warrant and to each outstanding
share of Purchase Common Stock; provided, further, that the Purchaser may only cause this Warrant to be exercised concurrently with the consummation of such qualifying Reorganization Transaction. In the event that the Holder is
required to exercise this Warrant pursuant to this Section 7(a), the Holder shall notify the Purchaser within five (5) business days after receiving the Purchaser’s written notice described above in this
Section 7(a) whether it is electing to exercise this Warrant through a Cash Exercise or a Cashless Exercise. In the event that (i) the Holder does not provide such notice within five (5) business days after
receiving the Purchaser’s written notice described above in this Section 7(a), or (ii) the Holder elects a Cash Exercise but does not pay the applicable Warrant Price for the Warrant Shares thereby purchased to
the Purchaser upon the consummation of such qualifying Reorganization Transaction, then the Purchaser shall effect the exercise of this Warrant through a Cashless Exercise. 

  
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 (b) Lost, Stolen, Mutilated, or Destroyed Warrant. If this Warrant is lost, stolen,
mutilated, or destroyed, the Purchaser may on such terms as to indemnity or otherwise as it may in its reasonable discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a New Warrant of like
denomination, tenor, and date as this Warrant so lost, stolen, mutilated, or destroyed. Any such New Warrant shall constitute a substitute contractual obligation of the Purchaser, whether or not the allegedly lost, stolen, mutilated, or destroyed
Warrant shall be at any time enforceable by anyone. 
 (c) No Impairment. The Purchaser will not, by amendment of its governing
documents or through any recapitalization, reclassification, reorganization, amalgamation, conversion, merger, consolidation, or through any sale, lease, license, transfer, conveyance of its assets, or through any other similar transactions, or
through any dissolution, liquidation, winding up of the Purchaser or through 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 action as may be necessary or appropriate in order to protect the rights of the registered Holders against impairment. Without limiting the generality of the
foregoing, the Purchaser (i) will not increase the par value of any shares of Purchaser Common Stock issuable upon exercise of this Warrant above the amount payable therefor on such exercise, (ii) will take all such action as may be
reasonably necessary or appropriate in order that the Purchaser may validly and legally issue fully paid and nonassessable shares Purchaser Common Stock upon the exercise of this Warrant, and (iii) will not close its stockholder books or
records in any manner which interferes with the timely exercise of this Warrant. 
 (d) Further Assurances. The Purchaser shall take
such actions as are required in order for the Purchaser to satisfy its obligations under this Warrant, including, without limitation, using commercially reasonable efforts to obtain the approval of the holders of any class or series of capital stock
or making any filings, in each case as required pursuant to applicable law or the listing requirements (if any) of any national securities exchange on which any class or series of capital stock is then listed or traded. The Purchaser further agrees
to cooperate with the Holders in the making of any filings under applicable law that are to be made by the Purchaser or any Holder in connection with the exercise of the Holder’s rights under this Warrant. 

8. Charges, Taxes and Expenses. The Purchaser shall from time to time promptly pay any issue or transfer tax, withholding tax, transfer
agent fee or other incidental tax or expense that may be imposed upon the Purchaser in respect of the issuance or delivery of Common Stock to the registered holder thereof upon the exercise of this Warrant, including such taxes imposed pursuant to
Section 4, but the Purchaser shall not be obligated to pay any transfer taxes associated with transfers by the holder of this Warrant or Warrant Shares. 

9. Successors. All the covenants and provisions of this Warrant by or for the benefit of the Purchaser shall bind and inure to the
benefit of their respective successors and assigns. The Purchaser will not amalgamate, merge, convert or consolidate with or into, or sell, transfer, license or lease all or substantially all of its property or assets to, any other party unless the
successor, transferee, licensee or lessee party, as the case may be (if not the Purchaser), assumes (expressly or by operation of law) the due and punctual performance and observance of each and every covenant and condition of this Warrant to be
performed and observed by the Purchaser. 

  
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 10. Notices. All notices, statements or other documents which are required or contemplated
by this Warrant (including without limitation the delivery of any Exercise Notice or Assignment Form, the surrender of this Warrant and the issuance of any New Warrant) to be given, delivered or made by the Purchaser or the Holder to the other shall
be in writing (each a “Notice”) and shall be: (a) delivered personally or by commercial messenger; (b) sent via a recognized overnight courier service; (c) sent by registered or certified mail, postage pre-paid and return receipt requested; or (d) sent by facsimile transmission, provided confirmation of receipt is received by sender and the original Notice is sent or delivered contemporaneously by an
additional method provided in this Section 10; in each case so long as such Notice is addressed to the intended recipient thereof as set forth below: 

If to the Purchaser: 

B. Riley Financial, Inc. 

21255 Burbank Boulevard, Suite 400 

Woodland Hills, California 91367 

Facsimile: (818) 746-9170 

Email: aforman@brileyfin.com 

Attn: Alan N. Forman 

If to the Holder: as set forth on the Warrant Registry 

Any party may change its address specified above by giving each party Notice of such change in accordance with this Section 10. Any
Notice shall be deemed given upon actual receipt (or refusal of receipt). 
 11. Applicable Law. The validity, interpretation, and
performance of this Warrant shall be governed in all respects by the laws of the State of Delaware, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The
Purchaser hereby agrees that any action, proceeding or claim against it arising out of or relating in any way to this Warrant shall be brought and enforced in the courts of the State of New York or the United States District Court for the Southern
District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Purchaser hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. 

12. Persons Having Rights under this Warrant. Nothing in this Warrant expressed and nothing that may be implied from any of the
provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the Holder of this Warrant any right, remedy, or claim under or by reason of this Warrant or of any
covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Warrant shall be for the sole and exclusive benefit of the parties hereto and their successors and
assigns and of the Holder of this Warrant, each of whom is a third party beneficiary of this Warrant. 

  
 A-10 

 13. Effect of Headings. The section headings herein are for convenience only and are not
part of this Warrant and shall not affect the interpretation thereof. 
 14. Amendment and Waiver. All modifications or amendments,
including any amendment to increase the Warrant Price, change the number of shares of Purchaser Common Stock issuable upon exercise of this Warrant or shorten the Exercise Period, shall require the written consent of the Holder of this Warrant.
Notwithstanding the foregoing, the Purchaser may extend the duration of the Exercise Period pursuant to Section 3 without the consent of the Holder of this Warrant. 

15. Miscellaneous. 
 (a)
This Warrant shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Warrant or of any other term or provision hereof. Furthermore, in lieu of any such
invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Warrant a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 (b) If the Purchaser fails to perform, comply with or observe any covenant or agreement to be performed, complied with or observed by it
under this Warrant, the Holder may proceed to protect and enforce its rights by suit in equity or action at law, whether for specific performance of any term contained in this Warrant or for an injunction against the breach or threatened breach of
any such term or in aid of the exercise of any power granted in this Warrant or to enforce any other legal or equitable right, or to take any one or more of such actions. The Purchaser hereby agrees that the Holder shall not be required or otherwise
obligated to, and hereby waives any right to demand that such Holder, post any performance or other bond in connection with the enforcement of its rights and remedies hereunder. None of the rights, powers or remedies conferred under this Warrant
shall be mutually exclusive, and each right, power or remedy shall be cumulative and in addition to any other right, power or remedy whether conferred by this Warrant or now or hereafter available at law, in equity, by statute or otherwise. 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK, 

SIGNATURE PAGE FOLLOWS 

  
 A-11 

 IN WITNESS WHEREOF, the Purchaser and Holder have caused this Warrant to be duly executed by its
authorized officer as of the date first indicated above. 
  

			
	 B. RILEY FINANCIAL, INC.

		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 A-12 

 FORM OF EXERCISE NOTICE 

(To be executed by the Holder to exercise the right to purchase shares of Purchaser Common Stock under the foregoing Warrant) 

To B. Riley Financial, Inc.: 
 The undersigned is the
Holder of Warrant No. _______ (the “Warrant”) issued by B. Riley Financial, Inc., a Delaware corporation (the “Purchaser”), which accompanies this Exercise Notice. Capitalized terms used herein and not otherwise
defined have the respective meanings set forth in the Warrant. 
  

	1.	The Warrant is currently exercisable to purchase a total of ______________ Warrant Shares. 

  

	2.	The undersigned Holder hereby exercises its right to purchase _________________ Warrant Shares pursuant to the Warrant. 

  

	3.	The Holder intends that payment of the Warrant Price shall be made as (check one): 

 ☐
“Cash Exercise” under Section 4(a)(i) 
 ☐ “Cashless Exercise” under Section 4(a)(ii) 

 

	4.	If the Holder has elected a “Cash Exercise,” the undersigned Holder shall pay the sum of $____________ to the Purchaser in accordance with the terms of the Warrant. 

 

	5.	The undersigned Holder confirms to the Purchaser that the following checked representations and agreements are true as of the date hereof: 

     It (A) is an “accredited investor” within the meaning of Rule 501(a)(1) under the Securities Act
OR (B) 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 Warrant
Shares, and has so evaluated the merits and risks of such investment; AND 
      It is acquiring the Warrant
Shares for itself and does not intend to re-offer or re-sell the Warrant Shares in connection with a distribution; AND 

     It understands that each Purchaser Warrant is characterized as “restricted security” under the U.S.
federal securities laws inasmuch as it is being acquired from the Purchaser in a transaction not involving a public offering and that under U.S. federal securities laws and applicable regulations the Warrant Shares may be resold without registration
under the Securities Act only in certain limited circumstances; AND 

      It is understood that certificates evidencing the Warrant Shares
will bear any legend as required by the Blue Sky laws of any state and a restrictive legend in substantially the form set forth in the Purchase Agreement (as defined in the Warrant). 

 

	6.	Pursuant to this exercise, the Purchaser shall deliver to the undersigned Holder _______________ Warrant Shares in accordance with the terms of the Warrant. 

 

	7.	Following this exercise, the Warrant shall be exercisable to purchase a total of ______________ Warrant Shares. 

  

									
	Dated:                         ,
                 	 		 	Name of Holder:
				
		 		 	(Print)	 	 
				
		 		 	By:	 	 
		 		 	Name:	 	 
		 		 	Title:	 	 
				
		 		 		 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
		 		 		 		 	

  

			
	 ACKNOWLEDGED AND AGREED TO this ___ day of ___________, 20__

 
 B. RILEY FINANCIAL, INC.

		
	By:	 	 
	Name:	 	 
	Title:	 	 
		 	

 FORM OF ASSIGNMENT 

[To be completed and signed only upon transfer of Warrant] 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ________________________________ the right represented by the
within Warrant to purchase ____________ shares of common stock of B. Riley Financial, Inc. to which the within Warrant relates and appoints ________________ attorney to transfer said right on the books of B. Riley Financial, Inc. with full power of
substitution in the premises. 
 In connection with any transfer of the Warrant, the undersigned confirms that it has not utilized any general solicitation
or general advertising in connection with the transfer and is making the transfer pursuant to one of the following: 
 [Check One] 

(1)      to the Purchaser; or 
 (2)
     to an “accredited investor” (as defined in Rule 501(a) under the Securities Act of 1933, as amended (the “Securities Act”)); or 

(3)      pursuant to the exemption from registration provided by Rule 144 under the Securities Act or pursuant to another exemption
available under the Securities Act; or 
 (4)      pursuant to an effective registration statement under the Securities Act. 

and unless the box below is checked, the undersigned confirms that the Warrant is not being transferred to an “affiliate” of the Purchaser as
defined in Rule 144 under the Securities Act (an “Affiliate”): 
 ☐ The transferee is an Affiliate of the Purchaser. 

 

			
	Dated:                         ,
                 	  	
		  	
		  	  

	 	  	(Signature must conform in all respects to name of holder as
specified on the face of the Warrant)
	 	  	 
	 	  	  

	 	  	Address of Transferee
	 	  	 
	 	  	  

		
	 	  	  

	
	In the presence of:

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