Document:

EX-10.4

 Exhibit 10.4 

EXECUTION VERSION 
 EMPLOYMENT
AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of August 14, 2015, is entered into by and
between Marc Reisch (the “Executive”) and ALJ Regional Holdings, Inc. (“ALJJ”). 
 WHEREAS, the Executive,
and Visant Holding Corp (the “Seller”) are parties to that certain Second Amended and Restated Employment Agreement (the “Prior Agreement”), dated as of December 19, 2008, pursuant to which the Executive
performs certain services for Seller 
 WHEREAS, the Seller is selling 100% of the capital stock of Phoenix Color Corp. (the
“Company”) to ALJJ (the closing of such sale, the “Closing”). 
 WHEREAS, the Executive and Seller have
agreed that ALJJ and its affiliates (including, following the Closing, the Company) shall have no obligations with respect to the Prior Agreement upon, and following, the Closing. 

WHEREAS, effective as of the Closing, ALJJ wishes to employ the Executive with the Company and the Executive wishes to accept such employment
according to the terms set forth in this Agreement. 
 ACCORDINGLY, ALJJ and the Executive agree as follows: 

1. Employment, Duties and Acceptance. 

1.1 Employment, Duties. ALJJ hereby agrees to cause the Company to employ the Executive for the Term (as defined in Section 2.1),
to render services to the Company as the Company’s Chairman, or in such other executive position as may be mutually agreed upon by the Company and the Executive, and to perform such other duties consistent with such position or as may be
assigned to the Executive by the Chairman of ALJJ. The Executive will have the authority to hire individuals to provide services to the Company, provided that, with respect to any such individual who is reasonably expected to earn more than two
hundred thousand dollars ($200,000) in total annual compensation from the Company (including salary and bonus), such hiring will be subject to approval of the board of directors of ALJJ (the “Board”). 

1.2 Acceptance. The Executive hereby accepts such employment and agrees to render the services described above. During the Term, the
Executive agrees to serve the Company faithfully and to the best of the Executive’s ability and to use the Executive’s best efforts, skill and ability to promote the Company’s interests. 

1.3 Location. The duties to be performed by the Executive hereunder shall be performed at the offices of the Company and such other
locations mutually agreed with the Board, subject to reasonable travel requirements on behalf of the Company. 

 2. Term of Employment. 

2.1 The Term. The term of the Executive’s employment under this Agreement (the “Term”) shall become effective as
of the Closing (the “Effective Date”), and will continue until December 31, 2018, subject to earlier termination pursuant to Section 4. This Agreement shall be of no force or effect until the Closing occurs, and if the
Closing does not occur by October 3, 2015, this Agreement shall never be of force or effect. The Executive acknowledges that the Company, ALJJ, and their affiliates (as of the Closing), shall have no liability under the Prior Agreement. 

3. Compensation; Benefits. 

3.1 Salary. As compensation for all services to be rendered pursuant to this Agreement as an employee during the Term, ALJJ shall cause
the Company to pay the Executive a base salary, payable in accordance with the Company’s normal payroll practices, at the annual rate of two hundred thousand dollars ($200,000) (commencing as of the Effective Date) less such deductions or
amounts to be withheld as required by applicable law and regulations (the “Base Salary”). In the event that the Board, in its sole discretion, from time to time determines to increase the Base Salary, such increased amount shall,
from and after the effective date of the increase, constitute “Base Salary” for purposes of this Agreement. 
 3.2 Incentive
Compensation. 
 Commencing as of the Effective Date, the Executive shall be eligible to earn a bonus with respect to each calendar year
ending during the Term computed in accordance with the provisions hereafter (an “Annual Bonus”). The Annual Bonus shall be equal to five percent (5%) of the positive difference between the Pre-Bonus Earnings amount for such
year less the Bonus Threshold. The “Pre-Bonus Earnings” amount shall equal the EBITDA (as defined below) of the Company before any bonus amount owed to the Executive and the Company’s Chief Operating Officer but after all other
bonus amounts. The “Bonus Threshold” shall be twenty million dollars ($20,000,000) and shall be subject to adjustment by the Board from time to time in its discretion to account for material acquisitions or dispositions of any
business or assets of or by the Company or its subsidiaries. For 2015, the performance metrics shall be proportionally adjusted based on the Effective Date (i.e., the Bonus Threshold assumes 12 months in the performance period and will be
correspondingly reduced based on the number of actual months in the Term during 2015). 
 An Annual Bonus if earned in accordance with this
Agreement shall be paid no later than the fifteenth day of the third month following the year with respect to which such bonus was earned, provided that, except as otherwise specifically provided in this Agreement (including, without limitation,
Section 4.4) or in connection with any bonus otherwise earned with regard to calendar year 2017, as a condition precedent to any bonus entitlement the Executive must remain in employment with the Company at the time that the Annual Bonus is
paid. Notwithstanding the foregoing, to the extent that Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), may be applicable, such Annual Bonus shall be subject to, and contingent upon, such
shareholder approval as is necessary to cause the Annual Bonus to qualify as “performance-based compensation” under Section 162(m) of the Code and the regulations promulgated thereunder as well as any other required approvals. 

  
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 For the purposes of this Agreement, “EBITDA” means for any fiscal year of the
Company, consolidated operating income for such fiscal year of the Company plus, without duplication and to the extent reflected as a charge in the statement of such operating income for such fiscal year, the sum of (i) depreciation and
amortization expense (excluding amounts of prepaid incentives under customer contracts), (ii) any extraordinary non-cash expenses or losses, (iii) all restructuring costs (as defined under U.S. generally accepted accounting principles
(“GAAP”)), (iv) fees paid to the Company’s external advisors in connection with acquisitions for the business (whether or not consummated) and (v) effects of changes in accounting policy and GAAP, in the case of
clauses (i) through (iii) above, solely with respect to the Company, and minus without duplication and to the extent included in the statement of such operating income for such period, the sum of (a) any extraordinary or non-recurring
non-cash income or gains (including, whether or not otherwise includable as a separate item in the statement of such operating income for such period, gains on the sales of assets outside of the ordinary course of business), (b) effects of
changes in accounting policy and GAAP, and (c) any cash payments made during such period in respect of items described in clause (ii) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were reflected
as a charge in the statement of operating income, in the case of clauses (a) through (c) above, solely with respect to the Company, all as determined on a consolidated basis, all of the foregoing to be determined by the Board or any other
relevant committee or person. Notwithstanding the foregoing, mutually agreed adjustments, on a pro forma EBITDA basis, shall be made to reflect extraordinary transactions (such as a sale lease-back). 

3.3 Equity Compensation. 

3.3.1 Initial Option Grant. On the Effective Date, the Executive will receive an option to purchase 250,000 shares of
ALJJ’s common stock with an exercise price equal to fair market value of the covered shares (the “Option”). Subject to the Executive’s continued service to the Company, the Option will vest with respect to the covered
shares in three (3) equal annual installments on each of October 1, 2016, October 1, 2017 and October 1, 2018. The Executive’s entitlement to benefit from the Option is conditioned upon the Executive’s signing of a
stock option agreement, satisfactory to the Board, related to the Option, which shall reflect the Board’s standard terms and conditions for option grants, including vesting acceleration upon a change of control of ALJJ or the Company. In
addition, the Option shall vest in full upon termination of the Executive’s employment by the Company without Cause or by the Executive for Good Reason, but the Executive’s right to benefit from any such vesting acceleration shall be
subject to execution and non-revocation of the general waiver and release of claims specified in Section 4.6. 
 3.3.2
Subsequent Option Grants. The Executive also shall be eligible to receive additional options to purchase 100,000 shares of ALJJ’s common stock for each subsequent acquisition approved by the Board that the Board reasonably determines was
a direct result of the actions of the Executive. Such grants shall have an exercise price equal to fair market value of the covered shares on the date of grant, shall vest in four (4) equal annual installments subject to continued service, and
shall otherwise reflect the ALJJ Board’s standard terms and conditions for stock option grants. 

  
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 3.4 Business Expenses. ALJJ shall cause the Company to pay or reimburse the Executive for
all reasonable expenses actually incurred or paid by the Executive during the Term in the performance of the Executive’s services under this Agreement, upon presentation of expense statements or vouchers or such other supporting information as
the Company customarily may require of its officers within 60 days after such expenses have been incurred by the Executive; provided, however, that the maximum amount available for such expenses during any period may be fixed in
advance by the Board. 
 3.5 Paid Time Off. During the Term, the Executive shall be entitled to Paid Time Off in accordance with the
Paid Time Off policy of the Company during each year of the Term. 
 3.6 Benefits. During the Term, the Executive shall be entitled
to all benefits for which the Executive shall be eligible under any 401(k) plan, group insurance or other health and welfare benefit plans as well as all benefits which the Company provides to its executive employees generally, which benefits may be
amended, modified or terminated in the Company’s discretion. For avoidance of doubt, the Executive will not be entitled to an automobile allowance. 

4. Termination. 
 4.1
Death. If the Executive dies during the Term, the Agreement shall terminate forthwith upon the Executive’s death. ALJJ shall cause the Company to pay to the Executive’s estate: (i) any Base Salary earned but not paid;
(ii) a pro-rated Annual Bonus for the year in which the Executive dies, based on the number of days of the fiscal year worked by the Executive, which pro-rated Annual Bonus will be paid at the time and in the manner such Annual Bonus would have
been paid to the Executive had he not died; and (iii) an Annual Bonus for the year prior to the year in which the Executive dies if at the time of death the Executive has otherwise earned an Annual Bonus payment for such prior year and has not
yet been paid such Annual Bonus, which prior year Annual Bonus will be paid at the time and in the manner such prior year Annual Bonus would have been paid to the Executive had he continued to work for the Company. The Executive shall have no
further rights to any compensation (including any Base Salary or Annual Bonus) or any other benefits under this Agreement, except to the extent already earned and vested as of the day immediately prior to his death, or as earned, vested, or accrued
by virtue of his death. 
 4.2 Disability. If, during the Term the Executive is unable to perform his duties hereunder due to a
physical or mental incapacity for a period of 6 months within any 12 month period (hereinafter a “Disability”), the Company shall have the right at any time thereafter to terminate the Agreement upon sending written notice of
termination to the Executive. If the Company elects to terminate the Agreement by reason of Disability, ALJJ shall cause the Company to pay to the Executive promptly after the notice or termination: (i) any Base Salary earned but not paid,
(ii) a pro-rated Annual Bonus for the year in which the Executive is terminated, based on the number of days of the fiscal year worked by the Executive 

  
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until the date of the notice or termination, which pro-rated Annual Bonus will be paid at the time and in the manner such Annual Bonus would have been paid to Executive had he not been
terminated, and (iii) Annual Bonus for the year prior to the year in which the Executive is terminated if at the time of termination the Executive has otherwise earned an Annual Bonus payment for such prior year and has not yet been paid such
Annual Bonus, which prior year Annual Bonus will be paid at the time and in the manner such prior year Annual Bonus would have been paid to the Executive had he not been terminated, in each case less any other benefits payable to the Executive under
any disability plan provided for hereunder or otherwise furnished to the Executive by the Company. The Executive shall have no further rights to any compensation (including any Base Salary or Annual Bonus) or any other benefits under this Agreement
except to the extent already earned and vested as of the day immediately prior to his termination by reason of Disability, or as earned, vested, or accrued by virtue of his Disability. 

4.3 Cause. The Company may at any time by written notice to the Executive terminate the Agreement for “Cause” (as defined
below) and, upon such termination, this Agreement shall terminate and the Executive shall be entitled to receive no further amounts or benefits hereunder, except for any Base Salary earned but not paid prior to such termination. For the purposes of
this Agreement, “Cause” means: (i) continued neglect by the Executive of the Executive’s duties hereunder, (ii) continued incompetence or unsatisfactory attendance, (iii) conviction of any felony,
(iv) violation of the rules, regulations, procedures or instructions relating to the conduct of employees, directors, officers and/or consultants of the Company, (v) willful misconduct by the Executive in connection with the performance of
any material portion of the Executive’s duties hereunder, (vi) breach of fiduciary obligation owed to the Company or commission of any act of fraud, embezzlement, disloyalty or defalcation, or usurpation of a Company opportunity,
(vii) breach of any provision of this Agreement, including any non-competition, non-solicitation and/or confidentiality provisions hereof, (viii) any act that has a material adverse effect upon the reputation of and/or the public
confidence in the Company, (ix) failure to comply with a reasonable order, policy or rule that constitutes material insubordination, (x) engaging in any discriminatory or sexually harassing behavior, or (xi) using, possessing or being
impaired by or under the influence of illegal drugs or the abuse of controlled substances or alcohol on the premises of the Company or any of its subsidiaries or affiliates or while working or representing the Company or any of its subsidiaries or
affiliates. A termination for Cause by the Company or any or the events described in clauses (i), (ii), (iv), (ix), (x) and (xi) shall only be effective on 15 days advance written notification, providing Executive the opportunity to cure,
if reasonably capable of cure within said 15-day period; provided, however, that no such notification is required if the Cause event is not reasonably capable of cure or the Board determines that its fiduciary obligation requires it to effect a
termination of Executive for Cause immediately. 
 4.4 Termination by Company without Cause or by the Executive for Good Reason. If
the Executive’s employment is terminated prior to the end of the Term by the Company without Cause (other than by reason of death or Disability) or by the Executive for Good Reason (as defined below), the Executive shall be eligible to receive:
(i) as severance pay, an amount equal to the greater of (A) one-half the remaining years, or partial years, of the Term of this Agreement or (B) one (such length of time being referred to as the “Severance Period”),
times the Base Salary, payable in installments in accordance with the Company’s normal payroll practices, (ii) continuation for the Severance Period of group health plan benefits to the extent

  
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authorized by and consistent with 29 U.S.C. § 1161 et seq. (commonly known as “COBRA”), with the cost of the regular premium for such benefits shared in the same relative
proportion by the Company and the Executive as in effect on the date of termination (provided that the Company shall not be required to pay any portion of the premium if such payment would result in additional taxes imposed on the Company),
(iii) an Annual Bonus for the year in which termination occurred if the Executive would have been otherwise entitled to receive such bonus hereunder had the Executive been employed at the time such Annual Bonus is normally paid, which Annual
Bonus will be paid at the time and in the manner such Annual Bonus would have been paid to the Executive had such Executive not been terminated, and (iv) an Annual Bonus for the year prior to the year in which the Executive is so terminated if
at the time of termination the Executive has otherwise earned an Annual Bonus payment for such prior year and has not yet been paid such bonus due to such termination, which prior year Annual Bonus will be paid at the time and in the manner such
prior year Annual Bonus would have been paid to the Executive had such Executive not been terminated. The Executive shall have no further rights to any compensation (including any Base Salary or Annual Bonus) or any other benefits under this
Agreement. For purposes of this Agreement, “Good Reason” means, without the advance written consent of the Executive: (i) a reduction in Base Salary, unless such reduction is made generally to other senior executives of the
Company or (ii) a material reduction in the Executive’s title and/or responsibilities, provided, that a change in reporting responsibilities or a reduction in responsibilities that occurs solely by virtue of the Company being
acquired and made part of a larger entity shall not by itself constitute Good Reason and further provided, that a termination by the Executive for Good Reason shall be effective only if the Executive provides the Company with written
notice specifying the event which constitutes Good Reason within thirty (30) days following the occurrence of such event or date Executive became aware or should have become aware of such event and the Company fails to cure the circumstances
giving rise to Good Reason within 30 days after such notice. 
 4.5 Termination by Executive other than for Good Reason. The
Executive is required to provide the Company with 30 days’ prior written notice of termination to the Company. Subject to Section 4.4, upon termination of employment by the Executive, the Executive shall receive any Base Salary earned but
not paid prior to such termination and shall have no further rights to any compensation (including any Base Salary or Annual Bonus) or any other benefits under this Agreement, except to the extent already earned and vested as of the day immediately
prior to such termination. 
 4.6 Release. Notwithstanding any other provision of this Agreement to the contrary, the Executive
acknowledges and agrees that any and all payments, other than payment of any accrued and unpaid Base Salary to which the Executive is entitled under this Section 4 are conditioned upon and subject to the Executive’s execution of a general
waiver and release (for the avoidance of doubt, the restrictive covenants contained in Section 5 of this Agreement shall survive the termination of this Agreement), in such form as may be prepared by the Company, except for such matters covered
by provisions of this Agreement which expressly survive the termination of this Agreement. Notwithstanding anything to the contrary, the severance payments and benefits are conditioned on the Executive’s execution, delivery and nonrevocation of
the general waiver and release of claims (the “Release Condition”) within fifty-five (55) days following the Executive’s date of “separation from service” (as defined in Treas. Reg. § 1.409A-l(h))
(“Separation from Service Date”). Payments and benefits due under this 

  
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agreement (other than bonuses which will be paid at the time and in the manner otherwise provided in this Agreement), shall commence sixty (60) days after the Executive’s Separation
from Service Date. However, if Executive is a “specified employee” (within the meaning of Section 409A and as determined by the Company) (a “Specified Employee”), any payment or benefit under this Agreement, or under
any plan or arrangement of the Company or its affiliates, that constitutes a “deferral of compensation” subject to Section 409A, and that if paid during the six (6) months beginning on the Separation from Service Date would be
subject to the Section 409A additional tax because the Executive is a Specified Employee, will not be paid or provided to the Executive until the earlier of (i) the first day following the six (6) month anniversary of the
Executive’s Separation from Service Date, or (ii) death. No payments or benefits will be due or payable under this Agreement unless the Release Condition is timely met. 

4.7 Section 409A. 

4.7.1 This Agreement is intended to satisfy the requirements of Section 409A of the Code and the regulations and other guidance
thereunder (“Section 409A”) with respect to amounts, if any, subject thereto and shall be interpreted and construed and shall be performed by the parties consistent with such intent. If either party notifies the other in writing
that one or more or the provisions of this Agreement contravenes any Treasury Regulations or guidance promulgated under Section 409A or causes any amounts to be subject to interest, additional tax or penalties under Section 409A, the
parties shall agree to negotiate in good faith to make amendments to this Agreement as the parties mutually agree, reasonably and in good faith are necessary or desirable, to (i) maintain to the maximum extent reasonably practicable the
original intent of the applicable provisions without violating the provisions of Section 409A or increasing the costs to the Company of providing the applicable benefit or payment and (ii) to the extent possible, to avoid the imposition of
any interest, additional tax or other penalties under Section 409A upon the parties, provided that, notwithstanding the foregoing, the Company makes no representation that amounts payable under this Agreement will comply with Section 409A
and makes no undertaking to prevent Section 409A from applying to any amounts paid under this Agreement. 
 4.7.2 Any payment or
benefit due upon a termination of the Executive’s employment that represents a “deferral of compensation” within the meaning of Section 409A shall be paid or provided to the Executive only upon a “separation from
service” as defined in Treas. Reg. § 1.409A-l (h). Each payment made under this Agreement shall be deemed to be a separate payment for purposes of Section 409A. Amounts payable under this Agreement shall be deemed not to be a
“deferral of compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation §§ 1.409A-l(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including
the exception under subparagraph (iii)) and other applicable provisions of Treasury Regulation § 1.409A-1 through A-6. 
 4.7.3
Notwithstanding anything to the contrary in Agreement, any payment or benefit under this Agreement or otherwise that is exempt from Section 409A pursuant to Treasury Regulation § 1.409A-1(b)(9)(v)(A) or (C) (relating to certain
reimbursements and in-kind benefits) shall be paid or provided to the Executive only to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last day of the second calendar year following the calendar year in
which the Executive’s “separation from 

  
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service” occurs; and provided further that such expenses are reimbursed no later than the last day of the third calendar year following the calendar year in which the Executive’s
“separation from service” occurs. To the extent any expense reimbursement or the provision of any in-kind benefit is determined to be subject to Section 409A (and not exempt pursuant to the prior sentence or otherwise) the amount of
any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect provision of in-kind benefits or expenses eligible for reimbursement in any other calendar year (except for any life-time or
other aggregate limitation applicable to medical expenses), and in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which the Executive incurred such expenses, and in no event shall any
right to reimbursement or the provision or any in-kind benefit be subject to liquidation or exchange for another benefit. 
 5. Protection
to Confidential Information; Restrictive Covenants. 
 5.1 Prior to the Effective Date, the Company has shared confidential and trade
secret information of the Company and its subsidiaries and affiliates with the Executive. (Nothing herein shall prevent the Executive from disclosing such information to Seller prior to the Effective Date to the extent required pursuant to the
Executive’s duties to Seller.) From the Effective Date, the Company will share with Executive confidential and trade secret information regarding not only the Company but also its subsidiaries and affiliates. In view of the fact that the
Executive’s work for the Company will bring the Executive into close contact with many confidential affairs of the Company not readily available to the public, trade secret information and plans for future developments, the Executive agrees:

 5.1.1 To keep and retain in the strictest confidence all confidential matters of the Company, including, without limitation, “know
how”, trade secrets, customer lists, pricing policies, operational methods, technical processes, formulae, inventions and research projects, other business affairs of the Company, and any material confidential information whatsoever concerning
any director, officer, employee, shareholder, partner, customer or agent of the Company or their respective family members learned by the Executive heretofore or hereafter, and not to disclose them to anyone outside of the Company, either during or
after the Executive’s employment with the Company, except in the course or performing the Executive’s duties hereunder or with the Company’s express written consent. The foregoing prohibitions shall include, without limitation,
directly or indirectly publishing (or causing, participating in, assisting or providing any statement, opinion or information in connection with the publication of) any diary, memoir, letter, story, photograph, interview, article, essay, account or
description (whether fictionalized or not) concerning any of the foregoing, publication being deemed to include any presentation or reproduction of any written, verbal or visual material in any communication medium, including any book, magazine,
newspaper, theatrical production or movie, or television or radio programming or commercial; and 
 5.1.2 To deliver promptly to the Company
on termination of the Executive’s employment by the Company, or at any time the Company may so request, all memoranda, notes, records, reports, manuals, drawings, blueprints and other documents (and all copies thereof), including data stored in
computer memories or on other media used for electronic storage or retrieval, relating to the Company’s business and all property associated therewith, which the Executive may then possess or have under the Executive’s control, and not
retain any copies, notes or summaries; provided Executive shall be entitled to keep a copy or this Agreement and compensation and benefit plans to which Executive is entitled to receive benefits thereunder. 

  
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 5.2 In support of Executive’s commitments to maintain the confidentiality of the
Company’s confidential and trade secret information, (i) during the Term and for any period the Executive is employed by the Company after the Term, and (ii) for a period of two years following termination of the Executive’s
employment for any reason (the “Restricted Period”), the Executive shall not in the United States and in any non-US jurisdiction where the Company may then do business: (a) directly or indirectly, enter the employ of, or render
any services to, any person, firm or entity engaged in any business competitive with any business of the Company or of any of its subsidiaries; (b) engage in such business on the Executive’s own account, and the Executive shall not become
interested in any such business, directly or indirectly, as an individual, partner, shareholder, director, officer, principal, agent, employee, trustee, consultant, or in any other relationship or capacity; (c) directly or indirectly, solicit
or encourage (or cause to be solicited or encouraged) or cause any client, customer or supplier of the Company or of any of its subsidiaries to cease doing business with the Company or, if applicable, the Company subsidiary, or to reduce the amount
of business such client, customer or supplier does with the Company or Company subsidiary or (d) directly or indirectly, solicit or encourage (or cause to be solicited or encouraged) to cease to work with the Company, or hire (or cause to be
hired), any person who is an employee of or consultant then under contract with the Company or who was an employee of or consultant then under contract with the Company within the six month period preceding such activity without the Company’s
written consent, provided however that this clause (d) shall not apply during the Restricted Period to a consulting or advisory firm which is also then currently engaged or under a retainer relationship (in each case, without any action by the
Executive, whether directly or indirectly) by a subsequent employer of the Executive. 
 5.3 In further support of Executive’s
commitments to maintain the confidentiality of the confidential and trade secret information of the Company and its affiliates, so long as the Executive is serving on the board of directors of ALJJ, the Executive shall not in the United States and
in any non-US jurisdiction where ALJJ, its subsidiaries, or its affiliates may then do business: (a) directly or indirectly, enter the employ of, or render any services to, any person, firm or entity engaged in any business competitive with any
business of ALJJ or of any of its subsidiaries or affiliates; (b) engage in such business on the Executive’s own account, and the Executive shall not become interested in any such business, directly or indirectly, as an individual,
partner, shareholder, director, officer, principal, agent, employee, trustee, consultant, or in any other relationship or capacity; or (c) directly or indirectly, solicit or encourage (or cause to be solicited or encouraged) or cause any
client, customer or supplier of ALJJ, its subsidiaries, or its affiliates, to cease doing business with ALJJ, or the applicable subsidiary or affiliate, or to reduce the amount of business such client, customer or supplier does with the Company. For
the avoidance of doubt, the Executive’s obligations under this Section 5.3 shall terminate on the termination of his status as a member of the board of directors of ALJJ (even if the Executive is continuing to provide services to the
Company). 

  
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 5.4 If the Executive commits a breach, or poses a serious and objective threat to commit a
breach, of any of the provisions of Sections 5.1, 5.2, or 5.3 hereof, the Company (or ALJJ, as applicable) shall have the following rights and remedies: 

5.4.1 The right and remedy to have the provisions of this Agreement specifically enforced by any court having equity jurisdiction, it being
acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company; 

5.4.2 The right and remedy to require the Executive to account for and pay over to the Company all compensation, profits, monies, accruals,
increments or other benefits derived or received by the Executive as the result of any transactions constituting a breach of any of the provisions of the preceding paragraph, and the Executive hereby agrees to account for and pay over such benefits
to the Company. Each of the rights and remedies enumerated above shall be independent of the other, and shall be severally enforceable, and all of such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies
available to the Company under law or in equity; and 
 5.4.3 In addition to any other remedy which may be available (i) at law or in
equity, or (ii) pursuant to any other provision of this Agreement, the payments by the Company of Base Salary and the regular premium for group health benefits pursuant to Section 4.4 will cease as of the date on which such violation first
occurs. In addition, if the Executive breaches any of the covenants contained in Sections 5.1, 5.2, or 5.3 and the Company obtains injunctive relief with respect thereto (that is not later reversed or otherwise terminated or vacated by judicial
order), the period during which the Executive is required to comply with that particular covenant shall be extended by the same period that the Executive was in breach of such covenant prior to the effective date of such injunctive relief. 

5.5 If any of the covenants contained in Sections 5.1, 5.2, or 5.3, or any part thereof, hereafter are held by a court to be invalid or
unenforceable, the same shall not affect the remainder of the covenant or covenants, which shall be given full effect, without regard to those portions found invalid. 

5.6 If any of the covenants contained in Sections 5.1, 5.2, or 5.3, or any part thereof, are held to be unenforceable because of the duration
of such provision or the area covered thereby, the parties agree that the court making such determination shall have the power to reduce the duration and/or area of such provision and, in its reduced form, said provision shall then be enforceable.

 5.7 The Executive agrees (whether during or after the Executive’s employment with the Company) not to issue, circulate, publish or
utter any false or disparaging statements, remarks or rumors about the Company or its affiliates or the officers, directors, managers, customers, partners, or shareholders of the Company or its affiliates, provided that nothing herein shall prohibit
the Executive from providing truthful testimony if such testimony is required by law. 

  
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 5.8 For purposes of this Section 5 only, except clauses (a), (b) and (c) of
Section 5.2, the term “Company” includes the Company and its subsidiaries and affiliates. 
 6. Inventions and Patents.

 6.1 The Executive agrees that all processes, technologies and inventions (collectively, “Inventions”), including new
contributions, improvements, ideas and discoveries, whether patentable or not, conceived, developed, invented or made by him during the Term shall belong to the Company, provided that such Inventions grew out of the Executive’s work with
the Company or any of its subsidiaries or affiliates, are related in any manner to the business (commercial or experimental) of the Company or any of its subsidiaries or affiliates or are conceived or made on the Company’s time or with the use
of the Company’s facilities or materials. The Executive shall further: (a) promptly disclose such Inventions to the Company; (b) assign to the Company, without additional compensation, all patent and other rights to such Inventions
for the United States and foreign countries; (c) sign all papers necessary to carry out the foregoing; and (d) give testimony in support of the Executive’s inventorship. 

6.2 If any Invention is described in a patent application or is disclosed to third parties, directly or indirectly, by the Executive within
two years after the termination of the Executive’s employment by the Company, it is to be presumed that the Invention was conceived or made during the Term. 

6.3 The Executive agrees that the Executive will not assert any rights to any Invention as having been made or acquired by the Executive prior
to the date of this Agreement, except for Inventions, if any, disclosed to the Company in writing prior to the date hereof. 
 7.
Intellectual Property. 
 Following the Effective Date, the Company shall be the sole owner of all the products and proceeds of the
Executive’s services hereunder, including, but not limited to, all materials, ideas, concepts, formats, suggestions, developments, arrangements, packages, programs and other intellectual properties that the Executive may acquire, obtain,
develop or create in connection with and during the Term, free and clear of any claims by the Executive (or anyone claiming under the Executive) of any kind or character whatsoever (other than the Executive’s right to receive payments
hereunder). The Executive shall, at the request of the Company, execute such assignments, certificates or other instruments as the Company may from time to time deem necessary or desirable to evidence, establish, maintain, perfect, protect, enforce
or defend its right, title or interest in or to any such properties. 
 8. Notices. 

All notices, requests, consents and other communications required or permitted to be given hereunder shall be in writing and shall be deemed
to have been duly given if delivered personally, sent by overnight courier or mailed first class, postage prepaid, by registered or certified mail (notices mailed shall be deemed to have been given on the date mailed), as follows (or to such other
address as either party shall designate by notice in writing to the other in accordance herewith): 

  
 11 

 If to the Company or to ALJJ, to: 

ALJ Regional Holdings, Inc. 

Attn: Chairman of the Board 
 P.O.
Box 99418 
 San Diego, CA 92169 

Facsimile: (301) 560-3474 

With a copy (which shall not constitute notice) to: 

Shearman & Sterling LLP 

1460 El Camino Real, 2nd Floor 

Menlo Park, CA 94025 
 Attn.:
Christopher M. Forrester 
 If to the Executive, to: 

Such address as shall most currently appear on the records of the Company. 

9. Governing Law; Dispute Resolution. 

9.1 It is the intent of the parties hereto that all questions with respect to the construction of this Agreement and the rights and
liabilities of the parties hereunder shall be determined in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws thereof that would call for the application of the substantive law of any jurisdiction
other than the State of Delaware. 
 9.2 Each party irrevocably agrees for the exclusive benefit of the other that any and all suits,
actions or proceedings relating to Sections 5, 6 or 7 of this Agreement (a “Proceeding”) shall be maintained in either the courts of the State of Delaware or the federal District Courts sitting in Wilmington, Delaware (collectively,
the “Chosen Courts”) and that the Chosen Courts shall have exclusive jurisdiction to hear and determine or settle any such Proceeding and that any such Proceedings shall only be brought in the Chosen Courts. Each party irrevocably
waives any objection that it may have now or hereafter to the laying of the venue of any Proceedings in the Chosen Courts and any claim that any Proceedings have been brought in an inconvenient forum and further irrevocably agrees that a judgment in
any Proceeding brought in the Chosen Courts shall be conclusive and binding upon it and may be enforced in the courts of any other jurisdiction. 
 Each of
the parties hereto agrees that this Agreement involves at least $100,000 and that this Agreement has been entered into in express reliance on Section 2708 of Title 6 of the Delaware Code. Each of the parties hereto irrevocably and
unconditionally agrees (i) that, to the extent such party is not otherwise subject to service of process in the State of Delaware, it will appoint (and maintain an agreement with respect to) an agent in the State of Delaware as such
party’s agent for acceptance of legal process and notify the other parties hereto of the name and address of said agent, (ii) that service of process may also be made on such party by pre-paid certified mail with a validated proof of
mailing receipt constituting evidence of valid service sent to such party at the address set forth in Section 8 of this Agreement, as such address may be changed from time to time pursuant hereto, and (iii) that service made pursuant to
clause (i) or (ii) above shall, to the fullest extent permitted by applicable law, have the same legal force and effect as if served upon such party personally within the State of Delaware. 

  
 12 

 9.3 Any controversy or claim arising out of or related to any other provision of this Agreement
shall be settled by final, binding and non-appealable arbitration in Wilmington, Delaware by a single arbitrator. Subject to the following provisions, the arbitration shall be conducted in accordance with the applicable rules of JAMS then in effect.
Any award entered by the arbitrator shall be final, binding and nonappealable and judgment may be entered thereon by either party in accordance with applicable law in any court of competent jurisdiction. This arbitration provision shall be
specifically enforceable. The arbitrator shall have no authority to modify any provision of this Agreement or to award a remedy for a dispute involving this Agreement other than a benefit specifically provided under or by virtue of the Agreement.
Each party shall be responsible for its own expenses relating to the conduct of the arbitration or litigation (including reasonable attorneys’ fees and expenses) and shall share the fees of JAMS and the arbitrator, if applicable, equally. 

10. General. 
 10.1
JURY TRIAL WAIVER. THE PARTIES EXPRESSLY AND KNOWINGLY WAIVE ANY RIGHT TO A JURY TRIAL IN THE EVENT ANY ACTION ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE EXECUTIVE’S EMPLOYMENT WITH THE COMPANY IS LITIGATED OR HEARD IN ANY
COURT. 
 10.2 Continuation of Employment. The Executive and the Company agree to meet and confer one (1) year prior to the
expiration of the Term to determine whether the parties mutually desire to provide for an extension of the term of this Agreement. Unless the parties otherwise agree in writing, continuation of the Executive’s employment with the Company beyond
the expiration of the Term shall be deemed an employment at will and shall not be deemed to extend any of the provisions of this Agreement, and the Executive’s employment may thereafter be terminated “at will” by the Executive or the
Company. If the Executive’s employment terminates upon expiration of the Term, the Executive shall receive any Base Salary earned but not paid prior to such termination and shall have no further rights to any compensation (other than any Annual
Bonus for calendar year 2017 earned in accordance with Section 3.2 above) or any other benefits under this Agreement, except to the extent already earned and vested as of the day immediately prior to such termination. The Executive shall remain
subject to the restrictive covenants set forth in Section 5.2 for the Restricted Period, which shall include any period of continued at-will employment beyond the expiration of the Term. 

10.3 Headings. The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement. 

  
 13 

 10.4 Entire Agreement. This Agreement sets forth the entire agreement and understanding
of the parties relating to the Executive’s employment by the Company, and supersedes all prior agreements, arrangements and understandings, written or oral, relating to the Executive’s employment by the Company and its affiliates including
without limitation the Prior Agreement, and any severance, retention, change in control or similar types of benefits. No representation, promise or inducement has been made by either party that is not embodied in this Agreement, and neither party
shall be bound by or liable for any alleged representation, promise or inducement not so set forth. 
 10.5 Assignment. This
Agreement, and the Executive’s rights and obligations hereunder, may not be assigned by the Executive. ALJJ and the Company may assign its rights, together with its obligations, hereunder (i) to any affiliate or (ii) to third parties
in connection with any sale, transfer or other disposition of all or substantially all of the business or assets of the Company; in any event the obligations of the Company hereunder shall be binding on its successors or assigns, whether by merger,
consolidation or acquisition of all or substantially all of its business or assets. For the avoidance of doubt, the parties agree that at the Effective Time, ALJJ’s obligations hereunder shall automatically be assigned to the Company except
with respect to Section 3.3 hereof. 
 10.6 Waiver. This Agreement may be amended, modified, superseded, canceled, renewed or
extended and the terms or covenants hereof may be waived, only by a written instrument executed by all of the parties hereto, or in the case of a waiver, by the party waiving compliance. The failure of either party at any time or times to require
performance of any provision hereof shall in no manner affect the right at a later time to enforce the same. No waiver by either party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or
more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver or the breach or any other term or covenant contained in this Agreement. 

10.7 Withholding Taxes. The Company may withhold from any amounts payable under this Agreement such federal, state, local and other
taxes as may be required to be withheld pursuant to any applicable law or regulation. 
 11. Subsidiaries and Affiliates. 

11.1 As used herein, the term “subsidiary” shall mean any corporation or other business entity controlled directly or
indirectly by the corporation or other business entity in question, and the term “affiliate” shall mean and include any corporation or other business entity directly or indirectly controlling, controlled by or under common control
with the corporation or other business entity in question. 
 *    *    * 

  
 14 

 EXECUTION VERSION 

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

 

			
	EXECUTIVE
	
	  

	
	ALJ REGIONAL HOLDINGS, INC.
		
	By:	 	  

	Name
	Title:Exhibit

EXHIBIT 10.1
THE ULTIMATE SOFTWARE GROUP, INC.
AMENDED AND RESTATED CHANGE IN CONTROL BONUS PLAN FOR EXECUTIVE OFFICERS
EFFECTIVE AS OF February 1, 2016

Section 1.    Purpose

The purpose of The Ultimate Software Group, Inc. Amended and Restated Change in Control Bonus Plan for Executive Officers is to provide cash bonus payments to certain executive officers of the Company upon a Change in Control of the Company. The Plan is designed to promote the interests of the Company and its shareholders by providing an additional incentive to management to maximize the value of the Company's business and its common stock.

Section 2.    Definitions

The following capitalized words as used herein shall have the following meanings:

(a)"Award" means the contingent right of a Participant to receive a cash payment under the Plan upon a Change in Control of the Company, subject to such terms and conditions as the Committee may establish under the terms of the Plan.

		
	(b)
	"Board" means the Board of Directors of the Company.

(c)"Change in Control" shall have the same meaning as the term "Change of Control," as set forth in the Company's Amended and Restated 2005 Equity and Incentive Plan, as it may be amended from time to time.

(d)"Committee" means the Compensation Committee of the Board, or such other committee of the Board that the Board shall designate from time to time to administer the Plan.

(e)"Company" means The Ultimate Software Group, Inc., a Delaware company.

(f)      "Participant" means an officer of the Company who has been granted an Award under the Plan.

(g)"Plan" means The Ultimate Software Group, Inc. Amended and Restated Change in Control Bonus Plan for Executive Officers, as it may be amended from time to time.

(h)"Sales Proceeds" means the fair market value of the gross consideration received by the Company or its stockholders in the Change in Control transaction, as determined by the Committee in good faith immediately prior to the consummation of the Change in Control, taking into account such factors as the Committee deems appropriate.

Section 3.    Plan Administration

(a)Committee Members. The Plan shall be administered by the Committee. The Committee shall have such powers and authority as may be necessary or appropriate for the Committee to carry out its functions as described in the Plan. No member of the Committee shall be liable for any action or determination made in good faith by the Committee with respect to the Plan or any Award thereunder.

(b)Discretionary Authority. Subject to the express limitations of the Plan, the Committee shall have authority in its discretion to determine the time or times at which Awards may be granted, the recipients of Awards, and all other terms of Awards under the Plan. The Committee shall also have discretionary authority to interpret the Plan, to make all factual determinations under the Plan, and to make all other determinations necessary or advisable for the administration of the Plan. The Committee may prescribe, amend, and rescind rules and regulations relating to the Plan. All interpretations, determinations, and actions by the Committee shall be final, conclusive, and binding upon all parties.

Section 4.    Participation

An officer of the Company who is designated by the Committee to participate in the Plan shall be deemed a Participant in the Plan. The Participants are listed on Schedule A hereto. The Committee may designate additional Participants from time to time as it shall determine in its sole discretion.

Section 5.    Grant of Awards

The Committee shall determine the Participants to whom Awards are granted under the Plan and the terms of payment under an Award in accordance with the terms of the Plan. The schedule of Awards applicable to each Participant shall be as set forth in Schedule A hereto. The Committee may supplement Schedule A from time to time in its sole discretion with additional Participants or additional Awards, but shall not reduce the entitlement of any Participant under any previously granted Award, except as provided in Section 9(b) hereof.

Section 6.   Payment of Awards

(a)Change  in  Control.   Payments to  Participants  under the  Plan shall  be made only upon the consummation of a Change in Control transaction, provided that the Participant remains employed by the Company at the time of such consummation in accordance with Section 7 hereof. Payments to Participants shall be determined on the basis of a percentage of the Sales Proceeds in the Change in Control transaction, or on such other basis as determined by the Committee in its sole discretion and as set forth in Schedule A hereto or in any other action in writing approved by the Committee.

(b)Limitation   on   Payments.     The   aggregate   amount   of   payments   to Participants (including any "280G gross-up payment" under Schedule A hereto)  that may be made under this Plan shall not exceed 1.85% of the Sales Proceeds. To the extent that the aggregate payments under 

this Plan would otherwise exceed  1.85% of the Sales Proceeds, the Committee shall reduce payments under this Plan on a pro rata basis.

(c)Time  and  Form  of  Payment.   All payments to Participants hereunder shall  be made in single, lump-sum cash payments upon the consummation of the Change  in Control transaction.

(d)Tax Withholding. All payments under this Plan shall be subject to applicable Federal and state income and employment taxes and any other amounts that the Company is required by law to deduct and withhold from such payment.

Section 7.   Employment Requirement

(a)Termination prior  to  Change  in  Control.  Any payment to a  Participant under the Plan shall be conditioned upon such Participant's continued employment with the Company until the consummation of the Change in Control. A  Participant shall not be entitled to the payment under an Award if his or her employment is terminated at any time or for any reason prior to the consummation of a Change in Control, including by reason of death,  disability,  retirement,  voluntary  or   involuntary  termination,  or termination with or without cause.

(b)Termination following Change in Control. The termination of a Participant's employment upon or following the consummation of a Change in Control shall not affect the Participant's right to payment under an Award, regardless of the reason for such termination.

Section 8.   Unfunded Status

All rights of Participants to benefits under the Plan are unfunded obligations of the Company. Plan benefits shall be paid from the general assets of the Company, and each of the Participants shall have the status of an unsecured general creditor of the Company with respect to all interests under the Plan.

Section 9.    General Provisions

(a)Effective  Date.   The Plan, as amended and restated, is effective as  of February 1, 2016.

(b)Amendment and Termination. The Company may, from time to time, by action of the Board, amend or terminate the Plan at any time, provided that any resulting reduction in a Participant's right to payments under a previously granted Award shall be compensated for by a replacement plan or arrangement of comparable value to the affected Participant. The determination of whether a replacement plan or arrangement is of comparable value shall be made by the Committee in its sole discretion, acting in good faith and based upon the facts and circumstances existing at the time of the Committee's determination.

(c)No Right to Employment. Nothing in the Plan shall be deemed to give any Participant the right to remain employed by the Company or any subsidiary or to limit, in any way, the right 

of the Company or any subsidiary to terminate, or to change the terms of, a Participant's employment at any time.

(d)Governing Law. The Plan shall be governed by and construed in accordance with the laws of Delaware, without regard to choice-of-law rules.

THE ULTIMATE SOFTWARE GROUP, INC.

SCHEDULE A
(Revised February 1, 2016)

AWARDS SCHEDULE

Each of the following Change in Control payment amounts is subject to the aggregate limit on payments under the Plan equal to 1.85% of the Sales Proceeds, as set forth in Section 6(b) of the Plan.

Participant #1 - Scott Scherr. President and Chief Executive Officer. Mr. Scherr will be entitled to a payment under the Plan equal to 0.50% of the Sales Proceeds upon the consummation of a Change in Control.

Participant #2 - Marc  D. Scherr.  Vice  Chairman  and  Chief  Operating  Officer.   Mr. Scherr will be entitled to a payment under the Plan equal to 0.50% of the Sales Proceeds upon the consummation of a  Change in Control.

Participant #3 - Mitchell K. Dauerman. Executive Vice President. Chief Financial  Officer and Treasurer. Mr. Dauerman will be entitled to a payment under the Plan equal to 0.125% of the Sales Proceeds upon the consummation of a Change in Control.

280G Gross-Up Payment -    To the extent that the Change in Control payments to
any of the Participants named above, whether under the Plan or otherwise, exceed the limitation of Section 280G of the Internal Revenue Code of 1986, as amended from time to time (the "Code"), such that an excise tax will be imposed under Section 4999 of the Code, each such Participant will receive an additional "gross up" payment to indemnify him for the effect of such excise taxes. The Participant's "gross-up" rights shall be as set forth in a separate letter agreement with the Company.

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