Document:

Exhibit

    

Exhibit 4.23
DESCRIPTION OF SECURITIES
As of December 31, 2019, Ares Capital Corporation (“Ares Capital,” the “Company,” “we,” “us” or “our”) had two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: (1) our common stock and (2) our 6.875% Notes due 2047. 
In this exhibit, references to “Ares Capital,” “we,” “us” and “our” refer only to Ares Capital and not any of its subsidiaries.
Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Annual Report on Form 10-K to which this Description of Securities is attached as an exhibit. 
		
	a)
	Common Stock, $0.001 par value per share 

The statements made under this caption include summaries of certain provisions contained in our Articles of Amendment and Restatement, as amended, (the “charter”) and Third Amended and Restated Bylaws, as amended, (the “bylaws”) each of which is filed as an exhibit to our Annual Report on Form 10-K of which this Exhibit 4.23 is a part. This summary does not purport to be complete and is qualified in its entirety by reference to our charter and bylaws. We encourage you to read our charter, bylaws, and the applicable provisions of the Maryland General Corporation Law. 
Our authorized stock consists of 600,000,000 shares of stock, par value $0.001 per share, all of which are currently designated as common stock. Our common stock trades on The NASDAQ Global Select Market under the symbol “ARCC.” There are no outstanding options or warrants to purchase our stock. No stock has been authorized for issuance under any equity compensation plans. Under Maryland law, our stockholders generally are not personally liable for our indebtedness or obligations.
Under our charter, our board of directors is authorized to classify any unissued shares of stock and reclassify any previously classified but unissued shares of stock into one or more classes or series of stock and authorize the issuance of shares of stock without obtaining stockholder approval. As permitted by the Maryland General Corporation Law, our charter provides that a majority of the entire board of directors, without any action by our stockholders, may amend the charter from time to time to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that we have authority to issue.
All shares of our common stock have equal rights as to earnings, assets, dividends and voting and, when they are issued, will be duly authorized, validly issued, fully paid and nonassessable. Distributions may be paid to the holders of our common stock if, as and when authorized by our board of directors and declared by us out of funds legally available therefor. Shares of our common stock have no preemptive, exchange, conversion or redemption rights and are freely transferable, except where their transfer is restricted by federal and state securities laws or by contract.
In the event of our liquidation, dissolution or winding up, each share of our common stock would be entitled to share ratably in all of our assets that are legally available for distribution after we pay off all indebtedness and other liabilities and subject to any preferential rights of holders of our preferred stock, if any preferred stock is outstanding at such time.
Each share of our common stock is entitled to one vote on all matters submitted to a vote of stockholders, including the election of directors. Except as provided with respect to any other class or series of stock, the holders of our common stock will possess exclusive voting power. There is no cumulative voting in the election of our directors, which means that holders of a majority of the outstanding shares of common stock can elect all of our directors.
Limitation on Liability of Directors and Officers; Indemnification and Advance of Expenses
Maryland law permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the corporation and its stockholders for money damages except for liability resulting from (a) actual receipt of an improper benefit or profit in money, property or services or (b) active and deliberate dishonesty established by a final adjudication as being material to the cause of action. Our charter contains such a provision, which eliminates directors’ and officers’ liability to the maximum extent permitted by Maryland law, subject to the requirements of the Investment Company Act.

     

Our charter authorizes us to obligate ourselves, and our bylaws obligate us, to the maximum extent permitted by Maryland law and subject to the requirements of the Investment Company Act, to indemnify any present or former director or officer or any individual who, while a director or officer and at our request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner or trustee, from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her service in that capacity and to pay or reimburse his or her reasonable expenses in advance of final disposition of a proceeding. The charter and bylaws also permit us to indemnify and advance expenses to any person who served a predecessor of us in any of the capacities described above and any of our employees or agents or any employees or agents of our predecessor. In accordance with the Investment Company Act, we will not indemnify any person for any liability to which such person would be subject by reason of such person’s willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office.
In addition to the indemnification provided for in our bylaws, we have entered into indemnification agreements with each of our current directors and certain of our officers and with members of our investment adviser’s investment committee and we intend to enter into indemnification agreements with each of our future directors, members of our investment committee and certain of our officers. The indemnification agreements attempt to provide these directors, officers and other persons the maximum indemnification permitted under Maryland law and the Investment Company Act. The agreements provide, among other things, for the advancement of expenses and indemnification for liabilities that such person may incur by reason of his or her status as a present or former director or officer or member of our investment adviser’s investment committee in any action or proceeding arising out of the performance of such person’s services as a present or former director or officer or member of our investment adviser’s investment committee.
Maryland law requires a corporation (unless its charter provides otherwise, which our charter does not) to indemnify a director or officer who has been successful, on the merits or otherwise, in the defense of any proceeding to which he or she is made or threatened to be made a party by reason of his or her service in that capacity. Maryland law permits a corporation to indemnify its present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made or are threatened to be made a party by reason of their service in those or other capacities unless it is established that (a) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) the director or officer actually received an improper personal benefit in money, property or services or (c) in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. However, under Maryland law, a Maryland corporation may not indemnify for an adverse judgment in a suit by or in the right of the corporation or for a judgment of liability on the basis that a personal benefit was improperly received, unless in either case a court orders indemnification, and then only for expenses. In addition, Maryland law permits a corporation to advance reasonable expenses to a director or officer upon the corporation’s receipt of (x) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification by the corporation and (y) a written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed by the corporation if it is ultimately determined that the standard of conduct was not met.
Provisions of the Maryland General Corporation Law and our Charter and Bylaws
The Maryland General Corporation Law and our charter and bylaws contain provisions that could make it more difficult for a potential acquiror to acquire us by means of a tender offer, proxy contest or otherwise. These provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to negotiate first with our board of directors. We believe that the benefits of these provisions outweigh the potential disadvantages of discouraging any such acquisition proposals because, among other things, the negotiation of such proposals may improve their terms.
Classified Board of Directors
Our board of directors is divided into three classes of directors serving staggered three‐year terms, with the term of office of only one of the three classes expiring each year. A classified board may render a change in control of us or removal of our incumbent management more difficult. We believe, however, that the longer time required to elect a majority of a classified board of directors helps to ensure the continuity and stability of our management and policies.

     

Election of Directors
Our bylaws provide that the affirmative vote of the majority of the votes cast at a meeting of stockholders duly called and at which a quorum is present shall be sufficient to elect each director; provided, that if the number of nominees for director exceeds the number of directors to be elected, directors will be elected by a plurality of votes cast. Pursuant to the charter, our board of directors may amend the bylaws to alter the vote required to elect directors.
Number of Directors; Vacancies; Removal
Our charter provides that the number of directors will be set only by the board of directors in accordance with our bylaws. Our bylaws provide that a majority of our entire board of directors may at any time increase or decrease the number of directors. However, unless our bylaws are amended, the number of directors may never be less than four or more than eleven. Our charter sets forth our election, subject to certain requirements, to be subject to the provision of Subtitle 8 of Title 3 of the Maryland General Corporation Law regarding the filling of vacancies on the board of directors. Accordingly, except as may be provided by the board of directors in setting the terms of any class or series of preferred stock, any and all vacancies on the board of directors may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy will serve for the remainder of the full term of the directorship in which the vacancy occurred and until a successor is elected and qualifies, subject to any applicable requirements of the Investment Company Act.
Our charter provides that a director may be removed only for cause, as defined in our charter, and then only by the affirmative vote of stockholders entitled to cast at least two‐thirds of the votes entitled to be cast generally in the election of directors.
Action by Stockholders
Under the Maryland General Corporation Law and our charter, stockholder action can be taken only at an annual or special meeting of stockholders or by unanimous written or electronically transmitted consent instead of a meeting. These provisions, combined with the requirements of our bylaws regarding the calling of a stockholder‐requested special meeting of stockholders discussed below, may have the effect of delaying consideration of a stockholder proposal until the next annual meeting.
Advance Notice Provisions for Stockholder Nominations and Stockholder Proposals
Our bylaws provide that with respect to an annual meeting of stockholders, nominations of individuals for election to the board of directors and the proposal of business to be considered by stockholders may be made only (a) pursuant to our notice of the meeting, (b) by or at the direction of the board of directors or (c) by a stockholder who is a stockholder of record at the record date set by our board of directors for the purpose of determining stockholders entitled to vote at the meeting, at the time of giving the advance notice required by the bylaws and at the time of the meeting (and any adjournment or postponement thereof), is entitled to vote at the meeting in the election of each individual so nominated or on any such other business and has complied with the advance notice procedures of the bylaws. With respect to special meetings of stockholders, only the business specified in our notice of the meeting may be brought before the meeting. Nominations of individuals for election to the board of directors at a special meeting may be made only (a) by or at the direction of the board of directors or (b) provided that the special meeting has been called in accordance with the bylaws for the purpose of electing directors, by a stockholder who is a stockholder of record at the time of giving the advance notice required by the bylaws and at the time of the meeting, who is entitled to vote at the meeting in the election of each individual so nominated and who has complied with the advance notice provisions of the bylaws.
The purpose of requiring stockholders to give us advance notice of nominations and other business is to afford our board of directors a meaningful opportunity to consider the qualifications of the proposed nominees and the advisability of any other proposed business and, to the extent deemed necessary or desirable by our board of directors, to inform stockholders and make recommendations about such qualifications or business, as well as to provide a more orderly procedure for conducting meetings of stockholders. Although our bylaws do not give our board of directors any power to disapprove stockholder nominations for the election of directors or proposals recommending certain action, they may have the effect of precluding a contest for the election of directors or the consideration of stockholder proposals if proper procedures are not followed and of discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its own proposal without regard to whether consideration of such nominees or proposals might be harmful or beneficial to us and our stockholders.

     

Calling of Special Meetings of Stockholders
Our bylaws provide that special meetings of stockholders may be called by our board of directors and certain of our officers. Additionally, our bylaws provide that, subject to the satisfaction of certain procedural and informational requirements by the stockholders requesting the meeting, a special meeting of stockholders must be called by the secretary of the corporation to act on any matter that may properly be considered at a meeting of stockholders upon the written request of stockholders entitled to cast not less than a majority of all the votes entitled to be cast on such matter at such meeting.
Approval of Extraordinary Corporate Action; Amendment of Charter and Bylaws
Under Maryland law, a Maryland corporation generally cannot dissolve, amend its charter, merge, convert, sell all or substantially all of its assets, engage in a share exchange or engage in similar transactions outside the ordinary course of business, unless approved by the affirmative vote of stockholders entitled to cast at least two‐thirds of the votes entitled to be cast on the matter. See “Risk Factors—Risks Relating to Our Common Stock and Publicly Traded Notes—Provisions of the Maryland General Corporation Law and of our charter and bylaws could deter takeover attempts and have an adverse effect on the price of our common stock” in our Annual Report Form 10-K for the fiscal year ended December 31, 2019. However, a Maryland corporation may provide in its charter for approval of these matters by a lesser percentage, but not less than a majority of all of the votes entitled to be cast on the matter. Our charter generally provides for approval of charter amendments and extraordinary transactions by the stockholders entitled to cast at least a majority of the votes entitled to be cast on the matter. Our charter also provides that certain charter amendments and any proposal for our conversion, whether by merger or otherwise, from a closed‐end company to an open‐end company or any proposal for our liquidation or dissolution requires the approval of the stockholders entitled to cast at least 80 percent of the votes entitled to be cast on such matter. However, if such amendment or proposal is approved by at least two‐thirds of our continuing directors (as defined below) (in addition to approval by our board of directors), such amendment or proposal may be approved by a majority of the votes entitled to be cast on such a matter. The “continuing directors” are defined in our charter as our current directors as well as those directors whose nomination for election by the stockholders or whose election by the directors to fill vacancies is approved by a majority of the continuing directors then on the board of directors.
Our charter and bylaws provide that the board of directors will have the exclusive power to adopt, alter or repeal any provision of our bylaws and to make new bylaws.

No Appraisal Rights
Except with respect to appraisal rights arising in connection with the Control Share Acquisition Act discussed below, as permitted by the Maryland General Corporation Law, our charter provides that stockholders will not be entitled to exercise appraisal rights unless a majority of our board of directors determines that such rights will apply, with respect to all or any classes or series of stock, to one or more transactions occurring after the date of such determination in connection with which stockholders would otherwise be entitled to exercise appraisal rights.
Control Share Acquisitions
The Control Share Acquisition Act provides that control shares of a Maryland corporation acquired in a control share acquisition have no voting rights except to the extent approved by a vote of at least two‐thirds of the votes entitled to be cast on the matter. Shares owned by the acquiror, by officers or by employees who are directors of the corporation are excluded from shares entitled to vote on the matter. Control shares are voting shares of stock that, if aggregated with all other shares of stock owned by the acquiror or in respect of which the acquiror is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquiror to exercise voting power in electing directors within one of the following ranges of voting power:
		
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	one‐tenth or more but less than one‐third;

		
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	one‐third or more but less than a majority; or

		
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	a majority or more of all voting power.

The requisite stockholder approval must be obtained each time an acquiror crosses one of the thresholds of voting power set forth above. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A control share acquisition means the acquisition of issued and outstanding control shares, subject to certain exceptions.

     

A person who has made or proposes to make a control share acquisition may compel the board of directors of the corporation to call a special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the shares. The right to compel the calling of a special meeting is subject to the satisfaction of certain conditions, including an undertaking to pay the expenses of the meeting. If no request for a meeting is made, the corporation may itself present the question at any stockholders meeting.
If voting rights are not approved at the meeting or if the acquiring person does not deliver an acquiring person statement as required by the statute, then the corporation may redeem for fair value any or all of the control shares, except those for which voting rights have previously been approved. The right of the corporation to redeem control shares is subject to certain conditions and limitations, including, as provided in our bylaws, compliance with the Investment Company Act, which will prohibit any such redemption other than in limited circumstances. Fair value is determined, without regard to the absence of voting rights for the control shares, as of the date of any meeting of stockholders at which the voting rights of the shares are considered and not approved or, if no such meeting is held, as of the date of the last control share acquisition by the acquiror. If voting rights for control shares are approved at a stockholders meeting and the acquiror becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of appraisal rights may not be less than the highest price per share paid by the acquiror in the control share acquisition.
The Control Share Acquisition Act does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation.
Our bylaws contain a provision exempting from the Control Share Acquisition Act any and all acquisitions by any person of our shares of stock and, as a result, any control shares of the Company will have the same voting rights as all of the other shares of the Company’s common stock. Such provision could be amended or eliminated at any time in the future. However, we will amend our bylaws to be subject to the Control Share Acquisition Act only if the board of directors determines that it would be in our best interests and we determine (after consultation with the SEC staff) that our being subject to the Control Share Acquisition Act does not conflict with the Investment Company Act.
Business Combinations
Under Maryland law, “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:
		
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	any person who, directly or indirectly, beneficially owns 10% or more of the voting power of the corporation’s outstanding voting stock; or

		
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	an affiliate or associate of the corporation who, at any time within the two‐year period prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding stock of the corporation.

A person is not an interested stockholder under this statute if the board of directors approved in advance the transaction by which such person otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board.
After the five‐year prohibition, any business combination between the corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:
		
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	80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and

		
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	two‐thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.

     

These super‐majority vote requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares.
The statute permits various exemptions from its provisions, including business combinations that are exempted by the board of directors before the time that the interested stockholder becomes an interested stockholder. Our board of directors has adopted a resolution that any business combination between us and any other person is exempted from the provisions of the Business Combination Act, provided that the business combination is first approved by the board of directors, including a majority of the independent directors. This resolution, however, may be altered or repealed in whole or in part at any time. If this resolution is repealed, or the board of directors does not otherwise approve a business combination, the statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer.
Conflict with the Investment Company Act
Our bylaws provide that, if and to the extent that any provision of the Maryland General Corporation Law, including the Control Share Acquisition Act (if we amend our bylaws to be subject to such act) and the Business Combination Act, or any provision of our charter or bylaws conflicts with any provision of the Investment Company Act, the applicable provision of the Investment Company Act will control.
Exclusive Forum
Our bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Circuit Court for Baltimore City, Maryland, or, if that Court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division, will be the sole and exclusive forum for: (i) any derivative action or proceeding brought on our behalf, (ii) any Internal Corporate Claim, as such term is defined in Section 1‐101(p) of the MGCL, including, without limitation, (a) any action asserting a claim of breach of any duty owed by any of our directors or officers or other employees to us or to our stockholders or (b) any action asserting a claim against us or any of our directors or officers or other employees arising pursuant to any provision of the MGCL or our charter or bylaws, or (iii) any action asserting a claim against us or any of our directors or officers or other employees that is governed by the internal affairs doctrine. Any person or entity purchasing or otherwise acquiring or holding any interest in our shares shall be deemed to have notice of and to have consented and waived any objection to this exclusive forum provision of our bylaws, as the same may be amended from time to time.
		
	b)
	6.875% Notes due 2047 (the “2047 Notes”)

The general terms and provisions of our 2047 Notes (as defined below) are summarized below. This summary does not purport to be complete and is qualified in its entirety by reference to the 2047 Notes Indenture and the Form of Global Note for the 2047 Notes, each of which is filed as an exhibit to our Annual Report on Form 10-K to which this Exhibit 4.23 is a part. We encourage you to read the 2047 Notes Indenture and the Form of Global Note for the 2047 Notes for more information. 

As part of our acquisition of Allied Capital Corporation (“Allied Capital”) (the “Allied Acquisition”), we assumed $230 million in aggregate principal amount of unsecured notes which bear interest at a rate of 6.875% and mature on April 15, 2047 (the “2047 Notes”). The 2047 Notes were issued under the 2047 Notes Base Indenture (as defined below) and the 2047 Notes Third Supplemental Indenture (as defined below), and we assumed the 2047 Notes under the 2047 Notes Fourth Supplemental Indenture (as defined below). 

The 2047 Notes require payment of interest quarterly, and all principal is due upon maturity. The 2047 Notes are redeemable in whole or in part at any time or from time to time at our option, at a par redemption price of $25.00 per security plus accrued and unpaid interest. The 2047 Notes are listed on the New York Stock Exchange under the symbol “AFC.” 
    
As of December 31, 2019, we had $230 million in aggregate principal amount of the 2047 Notes outstanding.

General
The 2047 Notes were issued under (a) a base indenture (the “2047 Notes Base Indenture”) between us (as successor in interest to Allied Capital) and The Bank of New York (“BNY”), as trustee, dated June 16, 2006 and (b) a supplemental indenture, entered into between us (as successor in interest to Allied Capital) and BNY, as trustee, dated March 28, 2007 (the “2047 Notes Third Supplemental Indenture”). We assumed the 2047 Notes as part of our acquisition of Allied Capital under a supplemental indenture entered into between us and BNY, as trustee, dated April 10, 2010 (the “2047 Notes Fourth 

     

Supplemental Indenture,” and together with the 2047 Notes Base Indenture and the 2047 Notes Third Supplemental Indenture, the “2047 Notes Indenture”). The 2047 Notes bear interest at a rate of 6.875% and mature on April 15, 2047. The 2047 Notes require payment of interest quarterly, and all principal is due upon maturity. The 2047 Notes may be redeemed in whole or in part at any time at our option at a redemption price equal to $25 per security plus accrued and unpaid interest. 

The following is a summary of other material terms of the 2047 Notes and the 2047 Notes Indenture.  The following summary is qualified in its entirety by reference to the 2047 Notes Base Indenture, the 2047 Notes Third Supplemental Indenture and the 2047 Notes Fourth Supplemental Indenture, each of which is attached as an exhibit to the Annual Report on Form 10-K to which this Description of Securities is attached as an exhibit.
    
Modification and Waiver

Under certain circumstances, we can make changes to the 2047 Notes Indenture and the 2047 Notes. Some types of changes require the approval of each holder of the 2047 Notes affected thereby, some require approval by a majority vote of the holders of the 2047 Notes and some changes do not require any approval at all.
 
Changes Requiring Each Holder’s Approval

First, there are changes that cannot be made to the 2047 Notes without the specific approval of each holder of 2047 Notes. The following is a list of those types of changes:

		
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	change the due date of the principal of, or any installment of interest on, the 2047 Notes;

		
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	reduce the principal amount of, or rate of interest on, the 2047 Notes, including the amount payable upon acceleration of the maturity of the 2047 Notes;

		
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	change the place or currency of any payment on the 2047 Notes;

		
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	impair the right to institute suit for enforcement of any payment on or with respect to the 2047 Notes;

		
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	reduce the percentage of outstanding 2047 Notes that must consent to a modification or amendment of the 2047 Notes Indenture;

		
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	reduce the percentage of outstanding 2047 Notes that must consent to a waiver of compliance with certain provisions of the 2047 Notes Indenture, including provisions relating to quorum or voting or for waiver of certain defaults;

		
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	make any change to this list of changes that requires the specific approval of each holder of 2047 Notes.

 
Changes Requiring Majority Approval

The second type of change to the 2047 Notes Indenture and the 2047 Notes is the kind that requires a vote in favor of such change by holders owning a majority of the principal amount of the 2047 Notes. The changes falling in this category are not expressly stated and include those changes that do not require the specific approval of each holder of the 2047 Notes, as well as changes that do not fall into the category of changes that do not require any approval.

Changes Not Requiring Approval

The third type of change does not require any vote by the holders of the 2047 Notes. These changes include, among others, changes to reflect the succession of another entity to us and the assumption by that entity of our obligations and to clarify ambiguous contract terms and other changes that would not adversely affect holders of the 2047 Notes in any material respect.

2047 Notes will not be considered outstanding, and therefore not eligible to vote, if we have deposited or set aside in trust for holders of such 2047 Notes money for their payment or redemption. Any 2047 Note does not cease to be outstanding because we or an affiliate of us is holding such 2047 Note, but will be deemed not outstanding in determining whether the holders of the requisite amount of the 2047 Notes have acted under the 2047 Notes Indenture.

     

We will generally be entitled to set any day as a record date for the purpose of determining the holders of the 2047 Notes that are entitled to vote or take other action under the 2047 Notes Indenture. However, the 2047 Notes Indenture does not oblige us to fix any record date at all. If we set a record date for a vote or other action to be taken by holders of the 2047 Notes, that vote or action may be taken only by persons who are holders of the 2047 Notes on the record date, whether or not such persons remain holders after such record date, and must be taken within 180 days following the record date.

Defeasance and Covenant Defeasance

The 2047 Notes are subject to the defeasance and discharge provisions of the 2047 Notes Indenture. If those provisions are made applicable, we may elect either:

		
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	to defease and be discharged from, subject to some limitations, all of our obligations with respect to the 2047 Notes; or

		
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	to be released from our obligations to comply with certain covenants relating to the 2047 Notes.

 
To effect the defeasance or covenant defeasance, we must irrevocably deposit in trust with the trustee an amount in any combination of funds or government obligations, which, through the payment of principal and interest in accordance with their terms, will provide money sufficient to make payments on the 2047 Notes and any mandatory sinking fund or analogous payments on the 2047 Notes.

On such a defeasance, we will not be released from obligations:

		
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	to indemnify the trustee;

		
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	to pay additional amounts, if any, upon the occurrence of some events;

		
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	to register the transfer or exchange of the 2047 Notes;

		
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	to replace some of the 2047 Notes;

		
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	to maintain an office or agency relating to the 2047 Notes; or

		
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	to hold moneys for payment in trust with respect to the 2047 Notes.

To establish such a trust we must, among other things, deliver to the trustee an opinion of counsel to the effect that the holders of the 2047 Notes:

		
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	will not recognize income, gain or loss for U.S. federal income tax purposes as a result of the defeasance or covenant defeasance; and

		
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	will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if the defeasance or covenant defeasance had not occurred. In the case of defeasance, the opinion of counsel must be based upon a ruling of the IRS or a change in applicable U.S. federal income tax law occurring after the date of the 2047 Notes Indenture.

If we effect covenant defeasance with respect to any 2047 Notes, the amount on deposit with the trustee will be sufficient to pay amounts due on the 2047 Notes at the time of their stated maturity. However, the 2047 Notes may become due and payable prior to their stated maturity if there is an event of default with respect to a covenant from which we have not been released. If that happens, the amount on deposit may not be sufficient to pay all amounts due on the 2047 Notes at the time of the acceleration.
 
Optional Redemption + Redemption for Tax Events

Optional Redemption

The 2047 Notes are redeemable in whole or in part at any time or from time to time, at our option, upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price of 

     

$25 per security plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to the date fixed for redemption. 

Any exercise of our option to redeem the 2047 Notes will be done in compliance with the Investment Company Act and all the rules and regulations promulgated thereunder, to the extent applicable. 

Redemption Upon a Tax Event

We may redeem the 2047 Notes in whole, but not in part, upon not less than 30 days nor more than 60 days written notice by mail at a redemption price equal to the principal amount thereof together with accrued interest, if any, to the date fixed for redemption if we determine that:

		
	a)
	as a result of a change in or an amendment to the tax laws of the United States or any political subdivision of the United States, or any change in official position regarding application or interpretation of such laws (including a holding by a court of competent jurisdiction in the United States), that is announced or becomes effective on or after March 23, 2007, we have or will become obligated to pay additional amounts with respect to any 2047 Note as described in Section 1.01(e) of the Third Supplemental Indenture, or 

		
	b)
	On or after March 23, 2007, any action has been taken by a taxing authority of, or any decision has been rendered by a court of competent jurisdiction in, the United States or any political subdivision of the United States, including any of those actions specified above, whether or not such action was taken or decision was rendered with respect to the Company, or any change, amendment, application or interpretation shall be officially proposed, which, in any case in the written opinion of independent legal counsel of recognized standing, will result in a substantial probability that we will become obligation to pay additional amounts with respect to the 2047 Notes, 

and in either such case we, in our business judgment, determine that such obligations cannot be avoided by the use of reasonable measures available to it. 
If we exercise our option to redeem the 2047 Notes, we will deliver to the trustee of the 2047 Notes a certificate signed by an authorized officer stating that we are entitled to redeem the 2047 Notes and, in the case of (b) above, the required written opinion of independent legal counsel. 
Any exercise of our option to redeem the 2047 Notes will be done in compliance with the Investment Company Act, and the rules and regulations promulgated thereunder, to the extent applicable. 

Ranking Compared to Other Creditors

The 2047 Notes are not secured by any of our property or assets. Accordingly, ownership of the 2047 Notes means such holder is one of our unsecured creditors.
 
The 2047 Notes rank equally in right of payment with  all our other outstanding unsecured indebtedness, and with our future unsecured indebtedness.
    
Events of Default
 
The following constitute events of default under the 2047 Notes Indenture:

		
	•
	we fail to make any interest payment on the 2047 Notes when it is due, and we do not cure this default within 30 days;

		
	•
	we fail to make any payment of principal when it is due at the maturity of the 2047 Notes;

		
	•
	we fail to deposit a sinking fund payment with respect to the 2047 Notes when due, and we do not cure this default within 5 days;

		
	•
	we fail to comply with the 2047 Notes Indenture, and after we have been notified of the default by the trustee or holders of 25% in principal amount of the 2047 Notes, we do not cure the default within 60 days;

     

		
	•
	we file for bankruptcy, or other events in bankruptcy, insolvency or reorganization occur and remain undischarged or unstayed for a period of 60 days;

		
	•
	on the last business day of each of twenty-four consecutive calendar months, we have an asset coverage of less than 100 per centum, or

		
	•
	any other event of default described as being applicable to the 2047 Notes.

 
Remedies if an Event of Default Occurs 

Holders of the 2047 Notes will have the following remedies if an event of default occurs:
    
(a) Acceleration 

 If an event of default with respect to the 2047 Notes other than an event of default with respect to the 2047 Notes relating to events in bankruptcy, insolvency or reorganization has occurred and has not been cured or waived, then the trustee of the 2047 Notes or the holders of not less than 66 2/3% in principal amount of the 2047 Notes may declare the entire principal amount of and any and all accrued and unpaid interest on all the 2047 Notes to be due and immediately payable. An acceleration of maturity may be cancelled by the holders of at least a majority in principal amount of the 2047 Notes, if all events of default with respect to the 2047 Notes have been cured or waived and certain other conditions are satisfied.

If an event of default with respect to the 2047 Notes relating to events in bankruptcy, insolvency or reorganization has occurred, all unpaid principal and accrued and unpaid interest, and liquidated damages, if any, become immediately due and payable without any declaration or other act of the trustee of the 2047 Notes or any holder.

(b) Special Duties of Trustee  

If an event of default occurs, the trustee of the 2047 Notes will have some special duties. In that situation, the trustee of the 2047 Notes will be obligated to use those rights and powers under the 2047 Notes Indenture granted to it, and to use the same degree of care and skill in doing so, that a prudent person would use in that situation in conducting his or her own affairs.

(c) Majority Holders May Direct the trustee of the 2047 Notes to Take Actions to Protect Their Interests  

The trustee of the 2047 Notes is not required to take any action under the 2047 Notes Indenture at the request of any holders unless the holders offer the trustee of the 2047 Notes reasonable protection from expenses and liability. This is called an “indemnity.” If the trustee of the 2047 Notes is provided with an indemnity reasonably satisfactory to it, the holders of a majority in principal amount of the 2047 Notes may direct the time, method and place of conducting any lawsuit or other formal legal action seeking any remedy available to the trustee of the 2047 Notes. These majority holders may also direct the trustee of the 2047 Notes in performing any other action under the 2047 Notes Indenture.

(d) Individual Actions Holders May Take if the Trustee of the 2047 Notes Fails to Act  

Before holders of the 2047 Notes bypass the trustee of the 2047 Notes and bring their own lawsuit or other formal legal action or take other steps to enforce their rights or protect their interests relating to the 2047 Notes, the following must occur:

		
	•
	 such holders must give the trustee of the 2047 Notes written notice that an event of default has occurred and remains uncured;

		
	•
	holders of 25% in principal amount of the 2047 Notes must make a written request that the trustee of the 2047 Notes take action because of the default, and must offer reasonable indemnity to the trustee of the 2047 Notes against the costs, expenses and other liabilities of taking that action;

		
	•
	The trustee of the 2047 Notes must not have taken action for 60 days after receipt of the above notice and offer of indemnity; and

		
	•
	during the 60-day period, the holders of a majority in principal amount of the 2047 Notes do not give the trustee of the 2047 Notes a direction inconsistent with the request.

     

 
However, holders of the 2047 Notes are entitled at any time to bring an individual lawsuit for the payment of the money due on the 2047 Notes on or after its due date.
    
Waiver of Default 

The holders of a majority in principal amount of the 2047 Notes may waive a default for all of the 2047 Notes. If this happens, the default will be treated as if it has not occurred. No one can waive a payment default on any 2047 Notes, however, without the approval of the specific holder of such 2047 Notes.

We Will Give the Trustee of the 2047 Notes Information About Defaults Periodically
 
At the end of each fiscal year we will give to the trustee of the 2047 Notes a written statement of one of our officers certifying that to the best of his or her knowledge we are in compliance with the 2047 Notes Indenture and the 2047 Notes, or else specifying any default. The trustee of the 2047 Notes may withhold from holders of the 2047 Notes notice of any uncured default, except for payment defaults, if it determines that withholding notice is in the best interest of such holders.

Certain Covenants

The 2047 Notes Indenture contains certain covenants, including a covenant that requires us to:  

		
	•
	not violate Section 18(a)(1)(A) as modified by Section 61(a)(1) of the Investment Company Act, whether or not we are subject to those sections or any successor provisions thereto of the Investment Company Act.

		
	•
	If, at any time, we are not subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act to file any periodic reports with the SEC, we agree to furnish to the holders of the 2047 Notes and the trustee of the 2047 Notes, for the period of time during which the 2047 Notes are outstanding, (1) within 90 days after the end of our fiscal year, our audited annual consolidated financial statements, and (2) within 45 days after the end of our fiscal quarter, our unaudited interim consolidated financial statements. All such financial statements shall be prepared, in all material respects, in accordance with GAAP.

		
	•
	duly and punctually pay the principal of and any premium and interest on the 2047 Notes in accordance with the terms of the 2047 Notes and the 2047 Notes Indenture; 

		
	•
	maintain an office or agency where the 2047 Notes may be presented or surrendered for payment, registration of transfer or exchange, and where notices and demands to or upon us regarding the 2047 Notes and the 2047 Notes Indenture may be served. We will give prompt written notice to the trustee of the location, and any change in the location, of such office or agency; 

		
	•
	if we act as our own paying agent at any time, segregate and hold in trust, for the benefit of the holders of the 2047 Notes, an amount of money, in the currency in which the 2047 Notes are payable, sufficient to pay the principal and any premium or interest due on the 2047 Notes on or before the due date for such payment; 

		
	•
	do all things necessary to preserve and keep in full force and effect our existence, rights (charter and statutory) and franchises, unless failure to do so would not disadvantage the holders of the 2047 Notes in any material respect; 

		
	•
	deliver an officers’ certificate to the trustee of the 2047 Notes, within 120 calendar days after the end of each fiscal year, stating whether or not, to the best knowledge of the persons signing the officers’ certificate, we are in default in the performance and observance of any of the terms, provisions and conditions of the 2047 Notes Indenture and, if we are, specifying all such defaults and the nature and status thereof of which we may have knowledge; 

		
	•
	maintain, preserve and keep our material properties that are used in the conduct of our business in good repair, condition and working order, ordinary wear and tear excepted; and 

     

		
	•
	pay or discharge when due all taxes, assessments and governmental charges levied or imposed upon us or our income, profits or property, as well as all lawful claims for labor, materials and supplies that, if unpaid, might by law become a lien upon our property, except those contested in good faith or that would not have a material adverse effect on us. 

The Trustee under the Indenture
BNY serves as the trustee under the 2047 Notes Indenture. BNY is a lender under our Revolving Credit Facility.Exhibit 4.4

 

 

 

 

 

 

 

 

B.
Riley Financial, Inc.

 

and

 

The
Bank of New York Mellon Trust Company, N.A.,

 

as
Trustee

 

THIRD
SUPPLEMENTAL INDENTURE

 

Dated
as of February 12, 2020

 

to
the Indenture dated as of May 7, 2019

 

6.375%
Senior Notes due 2025

 

 

 

 

 

  

 

 

 

 

     

     

    

 

 

Table
of Contents

	 	 	Page
	 	 	 
	ARTICLE 1 APPLICATION OF THIRD SUPPLEMENTAL INDENTURE	1
	 	 	 
	Section
    1.01.	Application of Third Supplemental Indenture.	1
	 	 	 
	ARTICLE 2 DEFINITIONS	2
	 	 	 
	Section
    2.01.	Certain Terms Defined in the Indenture.	2
	 	 	 
	Section
    2.02.	Definitions.	2
	 	 	 
	ARTICLE 3 FORM AND TERMS OF THE NOTES	2
	 	 	 
	Section
    3.01.	Form and Dating.	2
	 	 	 
	Section
    3.02.	Terms of the Notes.	3
	 	 	 
	Section
    3.03.	Optional Redemption.	3
	 	 	 
	ARTICLE 4 CERTAIN COVENANTS	4
	 	 	 
	Section
    4.01.	Merger, Consolidation or Sale of Assets.	4
	 	 	 
	Section
    4.02.	Reporting.	5
	 	 	 
	Section
    4.03.	Payment of Taxes.	5
	 	 	 
	ARTICLE 5 EVENTS OF DEFAULT	5
	 	 	 
	Section
    5.01.	Events of Default.	5
	 	 	 
	ARTICLE 6 MISCELLANEOUS	6
	 	 	 
	Section
    6.01.	Trust Indenture Act Controls.	6
	 	 	 
	Section
    6.02.	New York Law to Govern.	6
	 	 	 
	Section
    6.03.	Counterparts.	6
	 	 	 
	Section
    6.04.	Severability.	6
	 	 	 
	Section
    6.05.	Ratification.	6
	 	 	 
	Section
    6.06.	Effectiveness.	6
	 	 	 
	Section
    6.07.	Trustee Makes No Representation.	7
	 	 	 
	EXHIBIT A Form of 6.375% Senior Note due 2025	 A-1

 

    i

     

    

 

THIRD
SUPPLEMENTAL INDENTURE

 

THIRD
SUPPLEMENTAL INDENTURE (this “Third Supplemental Indenture”), dated as of February 12, 2020, between B. Riley
Financial, Inc., a Delaware corporation (the “Company”), and The Bank of New York Mellon Trust Company, N.A.,
as trustee (the “Trustee”).

 

RECITALS
OF THE COMPANY

 

WHEREAS,
the Company and the Trustee executed and delivered an Indenture, dated as of May 7, 2019 (the “Base Indenture”),
as supplemented by the First Supplemental Indenture, dated as of May 7, 2019 (the “First Supplemental Indenture”)
and the Second Supplemental Indenture, dated as of September 23, 2019 (the “Second Supplemental Indenture,”
and, together with the Base Indenture, the First Supplemental Indenture, and this Third Supplemental Indenture, the “Indenture”)
to provide for the issuance by the Company from time to time of Securities to be issued in one or more series as provided in the
Indenture;

 

WHEREAS,
Section 9.1 of the Base Indenture provides, among other things, that the Company and the Trustee may enter into indentures supplemental
to the Base Indenture, without the consent of any Holders of Securities, to establish the form of any Security, as permitted by
Section 2.1 of the Base Indenture, and to provide for the issuance of the Notes (as defined below), as permitted by Section 3.1
of the Base Indenture, and to set forth the terms thereof;

 

WHEREAS,
the Company desires to execute this Third Supplemental Indenture, pursuant to Section 2.1 of the Base Indenture, to establish
the form and, pursuant to Section 3.1 of the Base Indenture, to provide for the issuance, of a series of its senior notes designated
as its 6.375% Senior Notes due 2025 (the “Notes”), in an initial aggregate principal amount of $132,250,000.
The Notes are a series of securities as referred to in Section 3.1 of the Base Indenture.

 

WHEREAS,
the Company has requested and hereby requests that the Trustee execute and deliver this Third Supplemental Indenture;

 

WHEREAS,
the execution and delivery of this Third Supplemental Indenture has been duly authorized by the Company and all things necessary
have been done by the Company to make this Third Supplemental Indenture, when executed and delivered by the Company, a valid and
binding supplement to the Indenture and agreement of the Company;

 

WHEREAS,
all things necessary have been done by the Company to make the Notes, when executed by the Company and authenticated and delivered
by the Trustee in accordance with the provisions of the Indenture, the valid and binding obligations of the Company; and

 

WHEREAS,
all conditions precedent provided for in the Indenture relating to this Third Supplemental Indenture have been complied with.

 

NOW,
THEREFORE, in consideration of the premises stated herein and the purchase of the Notes by the Holders thereof, the Company
and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective Holders from time to time
of the Notes as follows:

 

ARTICLE
1

APPLICATION OF THIRD SUPPLEMENTAL INDENTURE

 

Section
1.01. Application of Third Supplemental Indenture.

 

Notwithstanding
any other provision of this Third Supplemental Indenture, all provisions of this Third Supplemental Indenture are expressly and
solely for the benefit of the Holders of the Notes, and any such provisions shall not be deemed to apply to any other Securities
issued under the Base Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for any purpose other
than with respect to the Notes. Unless otherwise expressly specified, references in this Third Supplemental Indenture to specific
Article numbers or Section numbers refer to Articles and Sections contained in this Third Supplemental Indenture as they amend
or supplement the Base Indenture, and not the Base Indenture or any other document. All Initial Notes and Additional Notes, if
any, shall be treated as a single class for all purposes of this Indenture, including waivers, amendments, redemptions and offers
to purchase.

 

    1

     

    

 

ARTICLE
2

DEFINITIONS

 

Section
2.01. Certain Terms Defined in the Indenture.

 

For
purposes of this Third Supplemental Indenture, all capitalized terms used but not defined herein shall have the meanings ascribed
to such terms in the Base Indenture, as amended hereby.

 

Section
2.02. Definitions. (a) For the benefit of the Holders of the Notes, the following terms shall have the meanings set forth
in this Section 2.02:

 

“Additional
Notes” has the meaning specified in Section 3.02(b) of this Third Supplemental Indenture.

 

“Depositary”
has the meaning specified in Section 3.01(c) of this Third Supplemental Indenture.

 

“Global
Notes” means the Notes in the form of Global Securities issued to the Depositary or its nominee, substantially in the
form of Exhibit A.

 

“Initial
Notes” has the meaning specified in Section 3.02(b) of this Third Supplemental Indenture.

 

“Notes”
has the meaning specified in the recitals of this Third Supplemental Indenture.

 

“Person”
has the meaning given thereto in Section 13(d)(3) of the Exchange Act.

 

ARTICLE
3

FORM AND TERMS OF THE NOTES

 

Section
3.01. Form and Dating.

 

a)
The Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A attached hereto.
The Notes shall be executed on behalf of the Company by an Officer of the Company. The Notes may have notations, legends or endorsements
required by law, stock exchange rules or usage. Each Note shall be dated the date of its authentication. The Notes and any beneficial
interest in the Notes shall be in minimum denominations of $25 and integral multiples of $25 in excess thereof.

 

b)
The terms and notations contained in the Notes shall constitute, and are hereby expressly made, a part of the Indenture, and the
Company and the Trustee, by their execution and delivery of this Third Supplemental Indenture, expressly agree to such terms and
provisions and to be bound thereby.

 

c)
Global Notes. The Notes shall be issued initially in the form of fully registered Global Securities, which shall be deposited
on behalf of the purchasers of the Notes represented thereby with The Depository Trust Company, New York, New York (the “Depositary”)
or its custodian and registered in the name of Cede & Co., the Depositary’s nominee, duly executed by the Company and
authenticated by the Trustee.

 

d)
Book-Entry Provisions. This Section 3.01(d) shall apply only to the Global Notes deposited with or on behalf of the Depositary.
The Company shall execute and the Trustee shall, in accordance with this Section 3.01(d), authenticate and deliver the Global
Notes that shall be registered in the name of the Depositary or the nominee of the Depositary and shall be delivered by the Trustee
to the Depositary or its custodian.

 

e)
Paying Agent. The Company initially appoints the Trustee as Paying Agent for the payment of the principal of (and premium, if
any) and interest on the Notes and the Corporate Trust Office of the Trustee, is hereby designated as the Place of Payment where
the Notes may be presented for payment.

 

    2

     

    

 

Section
3.02. Terms of the Notes. The following terms relating to the Notes are hereby established:

 

a)
Title. The Notes shall constitute a series of Securities having the title “6.375% Senior Notes due 2025”.

 

b)
Principal Amount. The aggregate principal amount of the Notes that may be initially authenticated and delivered under the Indenture
(the “Initial Notes”) shall be $132,250,000 (except for Notes authenticated and delivered upon registration
of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 3.4, 3.5, 3.6, 9.6 or 11.7 of the Base Indenture).
The Company may from time to time, without the consent of the Holders of Notes, issue additional Notes (in any such case “Additional
Notes”) having the same ranking and the same interest rate, Maturity and other terms as the Initial Notes. Any Additional
Notes and the Initial Notes shall constitute a single series under the Indenture and all references to the Notes shall include
the Initial Notes and any Additional Notes unless the context otherwise requires.

 

c)
Maturity Date. The entire outstanding principal amount of the Notes shall be payable on February 28, 2025 (the “Maturity
Date”).

 

d)
Interest Rate. The rate at which the Notes shall bear interest shall be 6.375% per annum; the date from which interest shall accrue
on the Notes shall be February 12, 2020, or the most recent Interest Payment Date to which interest has been paid or provided
for; the Interest Payment Dates for the Notes shall be January 31, April 30, July 31 and October 31 of each year and on the Maturity
Date, beginning April 30, 2020; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date,
will be paid, in immediately available funds, to the Persons in whose names the Notes (or predecessor Notes) are registered (which
shall initially be the Depositary) at the close of business on the Regular Record Date for such interest, which shall be the January
15, April 15, July 15 or October 15 (whether or not a Business Day), as the case may be, preceding such Interest Payment Date,
and the February 15 immediately preceding the Maturity Date. Interest shall be computed on the basis of a 360-day year comprised
of twelve 30-day months. For so long as the Notes are represented in global form by one or more Global Securities, all payments
of principal (and premium, if any) and interest shall be made by wire transfer of immediately available funds to the Depositary
or its nominee, as the case may be, as the registered owner of the Global Security representing such Notes. In the event that
definitive Notes shall have been issued, all payments of principal (and premium, if any) and interest shall be made by wire transfer
of immediately available funds to the accounts of the registered Holders thereof; provided, that the Company may elect to make
such payments at the office of the Paying Agent in the City of Chicago; and provided further, that the Company may at its option
pay interest by check to the registered address of each Holder of a definitive Note.

 

e)
Currency. The currency of denomination of the Notes is United States Dollars. Payment of principal of and interest and premium,
if any, on the Notes shall be made in United States Dollars.

 

f)
Sinking Fund. The Notes are not subject to any sinking fund.

  

g)
Additional Interest. At the Company’s election, the sole remedy with respect to an Event of Default due to a failure to
comply with reporting requirements under the Trust Indenture Act or under Section 4.02 below, for the first 180 calendar days
after the occurrence of such Event of Default, consists exclusively of the right to receive additional interest on the Notes at
an annual rate equal to (1) 0.25% for the first 90 calendar days after such default and (2) 0.50% for calendar days 91 through
180 after such default. On the 181st day after such Event of Default, if such violation is not cured or waived, the Trustee or
the Holders of not less than 25% of the outstanding principal amount of the Notes may declare the principal, together with accrued
and unpaid interest, if any, on the Notes to be due and payable immediately. If the Company chooses to pay such additional interest,
the Company must notify the Trustee and the Holders of the Notes by certificate of the Company’s election at any time on
or before the close of business on the first business day following the Event of Default.

 

Section
3.03. Optional Redemption.

 

a)
The provisions of Article 11 of the Base Indenture, as supplemented by the provisions of this Third Supplemental Indenture, shall
apply to the Notes.

 

    3

     

    

 

b)
The Notes shall be redeemable as a whole or in part, at any time and from time to time at the Company’s option (i) on or
after February 28, 2021 and prior to February 28, 2022, at a price equal to $25.75 per $25.00 principal amount of a Note, plus
accrued and unpaid interest to, but excluding, the Redemption Date, (ii) on or after February 28, 2022 and prior to February 28,
2023, at a price equal to $25.50 per $25.00 principal amount of a Note, plus accrued and unpaid interest to, but excluding, the
Redemption Date, (iii) on or after February 28, 2023 and prior to February 29, 2024, at a price equal to $25.25 per $25.00 principal
amount of a Note, plus accrued and unpaid interest to, but excluding, the Redemption Date, and (iv) on or after February 29, 2024
and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding,
the Redemption Date. In each case, redemption shall be upon notice not fewer than 30 days and not more than 60 days prior to the
Redemption Date.

 

c)
If less than all of the Notes are to be redeemed, the particular Notes to be redeemed will be selected not more than 45 days prior
to the redemption date by the Trustee from the outstanding Notes not previously called for redemption, by lot, or in the Trustee’s
discretion, on a pro-rata basis, provided that the unredeemed portion of the principal amount of any Notes will be in an authorized
denomination (which will not be less than the minimum authorized denomination) for such Notes. The Trustee will promptly notify
us in writing of the Notes selected for redemption and, in the case of any Notes selected for partial redemption, the principal
amount thereof to be redeemed.

 

d)
Unless the Company defaults on the payment of the redemption price, on and after the Redemption Date, interest will cease to accrue
on the Notes called for redemption.

 

ARTICLE
4

CERTAIN COVENANTS

 

The
following covenants shall be applicable to the Company for so long as any of the Notes are Outstanding. Nothing in this Article
will, however, affect the Company’s rights or obligations under any other provision of the Base Indenture or this Third
Supplemental Indenture.

 

Section
4.01. Merger, Consolidation or Sale of Assets.

 

The
Company shall not merge or consolidate with or into any other Person (other than a merger of a wholly owned Subsidiary of the
Company into the Company) or sell, transfer, lease, convey or otherwise dispose of all or substantially all of its property (provided
that, for the avoidance of doubt, a pledge of assets pursuant to any secured debt instrument of the Company or its Subsidiaries
shall not be deemed to be any such sale, transfer, lease, conveyance or disposition) in one transaction or series of related transactions
unless:

  

a)
the Company shall be the surviving Person (the “Surviving Person”) or the Surviving Person (if other than the
Company) formed by such merger or consolidation or to which such sale, transfer, lease, conveyance or disposition is made shall
be a corporation or limited liability company organized and existing under the laws of the United States of America, any state
thereof or the District of Columbia;

 

b)
the Surviving Person (if other than the Company) expressly assumes, by supplemental indenture in form reasonably satisfactory
to the Trustee, executed and delivered to the Trustee by such Surviving Person, the due and punctual payment of the principal
of, and premium, if any, and interest on, all the Notes Outstanding, and the due and punctual performance and observance of all
the covenants and conditions of this Indenture to be performed by the Company;

 

c)
immediately before and immediately after giving effect to such transaction or series of related transactions, no Default or Event
of Default shall have occurred and be continuing; and

 

d)
in the case of a merger where the Surviving Person is other than the Company, the Company shall deliver, or cause to be delivered,
to the Trustee, an Officer’s Certificate and an Opinion of Counsel, each stating that such transaction and the supplemental
indenture, if any, in respect thereto comply with this Section 4.01 and that all conditions precedent in this Indenture relating
to such transaction have been complied with.

 

    4

     

    

 

Section
4.02. Reporting.

 

If,
at any time, the Company is not subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act to file any
periodic reports with the Securities and Exchange Commission, the Company agrees to furnish to Holders and the Trustee, for the
period of time during which the Notes are outstanding, its audited annual consolidated financial statements, within 75 days of
its fiscal year end, and unaudited interim consolidated financial statements, within 40 days of its fiscal quarter end (other
than our fourth fiscal quarter). All such financial statements will be prepared, in all material respects, in accordance with
Generally Accepted Accounting Principles, as applicable.

 

Delivery
of such reports, information and documents to the Trustee pursuant to this Section 4.02 is for informational purposes only and
the Trustee’s receipt of such shall not constitute actual or constructive knowledge or notice of any information contained
therein or determinable from information contained therein, including the Company’s compliance with any of its covenants
hereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).

 

Section
4.03. Payment of Taxes.

 

The
Company will pay or discharge or cause to be paid or discharged, before the same shall become delinquent, all taxes, assessments
and governmental charges levied or imposed upon the Company or upon the income, profits or property of the Company, except where
the failure to do so would not be reasonably expected to have a material adverse effect on the business, assets, financial condition
or results of operations of the Company; provided, however, that the Company shall not be required to pay or discharge or cause
to be paid or discharged any such tax, assessment or charge whose amount, applicability or validity is being contested in good
faith by appropriate proceedings.

 

ARTICLE
5

EVENTS
OF DEFAULT

 

Section
5.01. Events of Default.

 

Solely
for the benefit of the Holders of the Notes, Section 5.1 of the Base Indenture is hereby deleted in its entirety and replaced
with the following:

 

“Section
5.1 Events of Default

 

“Event
of Default”, wherever used herein with respect to the Notes means any one of the following events (whatever the reason
for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 

(1)
default in the payment of any interest upon any Note when it becomes due and payable, and continuance of such default for a period
of 30 days;

 

(2)
default in the payment of the principal of any Note when due and payable;

  

(3)
default in the performance, or breach, of any covenant of the Company in this Indenture with respect to the Notes, and continuance
of such default or breach for a period of 60 days after there has been sent to the Company by the Trustee or to the Company and
the Trustee by the Holders of at least 25% in principal amount of the Notes, a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;

 

(4)
the entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or other similar law or (B) a
decree or order adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company under any applicable federal or state law, or appointing
a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial
part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order
for relief or any such other decree or order unstayed and in effect for a period of 90 consecutive days; or

 

    5

     

    

 

(5)
the commencement by the Company of a voluntary case or proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent
by it to the entry of a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable
federal or state bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency
case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any
applicable federal or state law, or the consent by it to the filing of such petition or to the appointment of or taking possession
by a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Company or of any substantial
part of its property, or the making by the Company of an assignment for the benefit of creditors, or the admission by the Company
in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company in
furtherance of any such action.

 

The
Trustee shall not be deemed to have notice or be charged with knowledge of an Event of Default hereunder (except for those described
in paragraphs (1) and (2) above if the Trustee is then the Paying Agent) unless written notice of such default or Event of Default
from the Company or any Holder is received by a Responsible Officer of the Trustee at the Corporate Trust Office of the Trustee,
and such notice references the Notes and this Indenture.”

 

ARTICLE
6

MISCELLANEOUS

 

Section
6.01. Trust Indenture Act Controls.

 

If
any provision of this Third Supplemental Indenture limits, qualifies or conflicts with another provision which is required to
be included in this Third Supplemental Indenture by the Trust Indenture Act, the required provision shall control. If any provision
of this Third Supplemental Indenture modifies or excludes any provision of the Trust Indenture Act which may be so modified or
excluded, the latter provision shall be deemed to apply to this Third Supplemental Indenture as so modified or to be excluded,
as the case may be.

 

Section
6.02. New York Law to Govern.

 

This
Third Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New
York.

  

Section
6.03. Counterparts.

 

This
Third Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same instrument. The exchange of copies of this
Third Supplemental Indenture and of signature pages by facsimile, PDF or other electronic transmission shall constitute effective
execution and delivery of this Third Supplemental Indenture as to the parties hereto and may be used in lieu of the original Third
Supplemental Indenture and signature pages for all purposes.

 

Section
6.04. Severability. If any provision of this Third Supplemental Indenture or the Notes shall be held to be illegal or unenforceable
under applicable law, then the remaining provisions hereof shall be construed as though such invalid, illegal or unenforceable
provision were not contained therein.

 

Section
6.05. Ratification.

 

The
Base Indenture, as supplemented by the First Supplemental Indenture and this Third Supplemental Indenture, is in all respects
ratified and confirmed. The Indenture shall be read, taken and construed as one and the same instrument. All provisions included
in this Third Supplemental Indenture supersede any conflicting provisions included in the Base Indenture, as supplemented by the
First Supplemental Indenture and this Third Supplemental Indenture, unless not permitted by law. The Trustee accepts the trusts
created by the Indenture, and agrees to perform the same upon the terms and conditions of the Indenture.

 

Section
6.06. Effectiveness.

 

The
provisions of this Third Supplemental Indenture shall become effective as of the date hereof.

 

    6

     

    

 

Section
6.07. Trustee Makes No Representation.

 

The
recitals and statements contained herein and in the Notes are made solely by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity, adequacy or sufficiency
of this Third Supplemental Indenture or the Notes. All rights, protections, privileges, indemnities, immunities and benefits granted
or afforded to the Trustee under the Base Indenture shall be deemed incorporated herein by this reference and shall be deemed
applicable to all actions taken, suffered or omitted to be taken by the Trustee in each of its capacities hereunder, and each
agent, custodian and other Person employed to act under this Third Supplemental Indenture.

 

[Remainder
of page intentionally left blank.]

 

    7

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly executed as of the date first above
written.

 

	 	B.
    RILEY FINANCIAL, INC.
	 	 
	 	By:	/s/
    Phillip J. Ahn
	 	 	Name:
    Phillip J. Ahn
	 	 	Title:
    Chief Financial Officer and 

Chief Operating Officer

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Third Supplemental Indenture]

 

     

     

    

  

	 	THE
BANK OF NEW YORK MELLON TRUST COMPANY N.A., as Trustee

	 	 
	 	By:	/s/
    Lawrence M. Kusch
	 	 	Name:
    Lawrence M. Kusch
	 	 	Title:
    Vice President

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 [Signature
Page to B. Riley Financial, Inc. Third Supplemental Indenture]

 

     

     

    

 

EXHIBIT
A

 

THIS
NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
(AS DEFINED IN THE INDENTURE) OR A NOMINEE THEREOF. THIS GLOBAL SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME
OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR ITS NOMINEE ONLY IN LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT
AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE
OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

 

B.
RILEY FINANCIAL, INC.

 

6.375%
Senior Note due 2025

 

	No.
    	Principal
    Amount
	CUSIP
    No. 05580M 868	$[______]             

ISIN
No. US05580M8689

 

B.
Riley Financial, Inc., a Delaware corporation (hereinafter called the “Company”, which term includes any successor
Person under the Indenture referred to below), for value received, hereby promises to pay to Cede & Co., or registered assigns,
the principal sum of [________] Dollars (U.S. $[________]) on February 28, 2025 (the “Maturity Date”) and
to pay interest thereon from February 12, 2020 or from the most recent Interest Payment Date to which interest has been paid or
duly provided for, quarterly on January 31, April 30, July 31 and October 31 in each year and on the Maturity Date (each an “Interest
Payment Date”), beginning April 30, 2020 at the rate of 6.375% per annum, until the principal hereof is paid or duly
made available for payment. The interest so payable and punctually paid or duly provided for on any Interest Payment Date shall,
as provided in such Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which shall be the January 15, April 15, July 15 or October
15 (whether or not a Business Day), as the case may be, preceding such Interest Payment Date, and the February 15 immediately
preceding the Maturity Date. Any such interest which is payable, but is not punctually paid or duly provided for, on any Interest
Payment Date shall forthwith cease to be payable to the Holder hereof on the relevant Regular Record Date by virtue of having
been such Holder, and may be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of the Notes not less than 10 days prior to such Special Record Date, or may be paid at any
time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed,
and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

 

The
amount of interest payable for any interest period, including interest payable for any partial interest period, will be computed
on the basis of a 360-day year comprised of twelve 30-day months. If an interest payment date falls on a non-Business Day, the
applicable interest payment will be made on the next Business Day and no additional interest will accrue as a result of such delayed
payment.

 

    A-1

     

    

 

Payment
of the principal of (and premium, if any) and the interest on this Note shall be made at the designated office of the Trustee
(as defined below) at The Bank of New York Mellon Trust Company, N.A., 2 North LaSalle Street, 7th Floor, Chicago,
IL 60602, in such currency of the United States of America as at the time of payment is legal tender for payment of public and
private debts; provided, however, for so long as the Notes are represented in global form by one or more Global Securities, all
payments of principal (and premium, if any) and interest shall be made by wire transfer of immediately available funds to the
Depositary or its nominee, as the case may be, as the registered owner of the Global Security representing such Notes. In the
event that definitive Notes shall have been issued, all payments of principal (and premium, if any) and interest shall be made
by wire transfer of immediately available funds to the accounts of the registered Holders thereof; provided, that the Company
may at its option pay interest by check to the registered address of each Holder of a definitive Note.

 

This
Note is one of the duly authorized series of Securities of the Company, designated as the Company’s “6.375% Senior
Notes due 2025”, initially limited to an aggregate principal amount of $132,250,000 all issued or to be issued under and
pursuant to an Indenture (the “Base Indenture”), dated as of May 7, 2019, between the Company and The Bank
of New York Mellon Trust Company, N.A., as trustee (hereinafter referred to as the “Trustee”), as supplemented
by the First Supplemental Indenture thereto, dated as of May 7, 2019 (the “First Supplemental Indenture”),
the Second Supplemental Indenture thereto, dated as of September 23, 2019 (the “Second Supplemental Indenture”)
and the Third Supplemental Indenture thereto, dated as of February 12, 2020 (the “Third Supplemental Indenture,”
and, together with the Base Indenture, the First Supplemental Indenture and the Second Supplemental Indenture, the “Indenture”).
Reference is hereby made to the Indenture for a description of the respective rights, limitation of rights, obligations, duties
and immunities thereunder of the Trustee, the Company and the Holders of the Notes.

 

The
Company may redeem the Notes as a whole or in part, at any time and from time to time at the Company’s option (i) on or
after February 28, 2021 and prior to February 28, 2022, at a price equal to $25.75 per $25.00 principal amount of a Note, plus
accrued and unpaid interest to, but excluding, the date of redemption, (ii) on or after February 28, 2022 and prior to February
28, 2023, at a price equal to $25.50 per $25.00 principal amount of a Note, plus accrued and unpaid interest to, but excluding,
the date of redemption, (iii) on or after February 28, 2023 and prior to February 29, 2024, at a price equal to $25.25 per $25.00
principal amount of a Note, plus accrued and unpaid interest to, but excluding, the date of redemption, and (iv) on or after February
29, 2024 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding,
the date of redemption. In each case, redemption shall be upon notice not fewer than 30 days and not more than 60 days prior to
the date fixed for redemption.

 

If
less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected not more than 45 days prior to the redemption
date by the Trustee from the outstanding Notes not previously called for redemption, by lot, or in the Trustee’s discretion,
on a pro-rata basis, provided that the unredeemed portion of the principal amount of any Notes will be in an authorized denomination
(which will not be less than the minimum authorized denomination) for such Notes. The Trustee will promptly notify the Company
in writing of the Notes selected for redemption and, in the case of any Notes selected for partial redemption, the principal amount
thereof to be redeemed.

 

The
Notes are not subject to any sinking fund.

 

If
an Event of Default with respect to the Notes shall occur and be continuing, the principal of the Notes may be declared due and
payable in the manner and with the effect provided in the Indenture.

  

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities
at the time Outstanding of each series affected thereby. The Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Securities of any series at the time Outstanding, on behalf of the Holders of
all Securities of such series, to waive certain past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and
of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Note.

 

    A-2

     

    

 

No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the right of the Holder
of this Note, which is absolute and unconditional, to receive payment of the principal of and interest on this Note at the times
herein and in the Indenture prescribed and to institute suit for the enforcement of any such payment unless the Holder of this
Note shall have consented to the impairment of such right.

 

As
provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Note may be registered in
the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in any
place where the principal of (and premium, if any) and interest on this Note are payable, duly endorsed by, or accompanied by
a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof
or by his attorney duly authorized in writing, and thereupon one or more new Notes of this series and of any authorized denominations
and of a like aggregate principal amount and tenor, shall be issued to the designated transferee or transferees.

 

The
Notes are issuable only in registered form without coupons in minimum denominations of $25 and integral multiples of $25 in excess
thereof. Subject to certain limitations therein set forth in the Indenture and in this Note, the Notes are exchangeable for a
like aggregate principal amount of Notes of this series in different authorized denominations, as requested by the Holders surrendering
the same.

 

No
service charge shall be made for any such registration of transfer or for exchange of this Note, but the Company or the Trustee
may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of a Note, other than in certain cases provided in the Indenture.

 

Prior
to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue,
and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The
Indenture contains provisions whereby (i) the Company may be discharged from its obligations with respect to the Notes (subject
to certain exceptions) or (ii) the Company may be released from its obligations under specified covenants and agreements in the
Indenture, in each case if the Company irrevocably deposits with the Trustee money or U.S. Government Obligations sufficient to
pay and discharge the entire indebtedness on all Notes of this series, and satisfies certain other conditions, all as more fully
provided in the Indenture.

 

This
Note shall be governed by and construed in accordance with the laws of the State of New York.

 

All
terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

    A-3

     

    

 

Unless
the certificate of authentication hereon has been executed by or on behalf of the Trustee under the Indenture by the manual signature
of one of its authorized signatories, this Note shall not be entitled to any benefits under the Indenture or be valid or obligatory
for any purpose.

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

Dated:

 

	 	B.
    RILEY FINANCIAL, INC.
	 	 
	 	By:	 
	 	 	Name:
    
	 	 	Title:
    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to B. Riley Financial, Inc. Global Note]

 

     

     

    

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This
is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Dated:

 

	 	The
    Bank of New York Mellon Trust Company, N.A.,
    as Trustee
	 	 

	 	By:         	      
	 	 	Name:
    Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Authentication
Certificate to B. Riley, Financial, Inc. Global Note]

 

     

     

    

  

ABBREVIATIONS

 

The
following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written
out in full according to applicable laws or regulations.

 

	TEN
    COM - as tenants	UNIF
    GIFT MIN ACT - . . .Custodian
	in
    common	(Cust)
    (Minor)
	TEN
    ENT - as tenants by	Under
    Uniform Gifts to
	the
    entireties	Minor
    Act
	JT
    TEN - as joint tenants	 	 
	with
    right of	 
	survivorship
    and	 
	not
    as tenants in	 
	common	 	(State)

 

Additional
abbreviations may also be used though not in the above list.

 

 

 

FOR
VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

 

 

(Please
insert Assignee’s legal name)

 

 

 

(Please
insert Social Security or other identifying number of Assignee)

 

 

 

 

 

 

 

 

(Please
print or typewrite name and address including postal zip code of Assignee)

 

the
within Note of B. RILEY FINANCIAL, INC. and does hereby irrevocably constitute and appoint attorney to transfer the
said Note on the books of the Company, with full power of substitution in the premises.

Dated:

 

	 	Your
    Signature: 	 
	 	 	(Sign
    exactly as your name appears on the
	 	 	face
    of this Note)

 

 

 

[NOTICE:
The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatever]

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