Document:

Exhibit 4.6

  

   

  

  
    Description of Great Elm Group, Inc.’s Securities

     

    As of December 29, 2020, Great Elm Group, Inc. has three classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: (i) our common stock, (ii) our preferred stock purchase
      rights and (iii) our units.

     

    The following is a summary description of such securities and does not purport to be complete. For a complete description of the terms and provisions of such securities, refer to our Certificate of Incorporation (our Charter), Bylaws (our Bylaws) and Rights Agreement (as defined below). This summary description is qualified in its entirety by reference to these documents, each of which
      is included as an exhibit to the Annual Report on Form 10-K to which this exhibit is a part.

     

    Authorized Capital Stock

     

    Pursuant to our Charter, our authorized capital stock consists of 350,000,000 shares of common stock, $0.001 par value per share, and 5,000,000 shares of preferred stock, $0.001 par value per share.

     

    Common Stock

     

    Voting and Other Rights

     

    Holders of shares of our common stock are entitled to one vote for each share held of record on all matters to be voted on by our stockholders, including the election of directors. Our Charter and our Bylaws do not provide for cumulative voting
      rights. Because of this, the holders of a majority of our common stock entitled to vote in any election of directors can elect all of the directors standing for election.

     

    Dividends

     

    Subject to the preferences that may be applicable to any then outstanding preferred stock, the holders of our outstanding shares of common stock are entitled to receive dividends, if any, as may be declared from time to time by our board of
      directors (our Board) out of legally available funds.

     

    Liquidation, Redemption and Preemptive Rights

     

    In the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other
      liabilities, subject to the satisfaction of any liquidation preference granted to the holders of any outstanding shares of preferred stock. Holders of our common stock have no preemptive, conversion or subscription rights, and there are no redemption
      or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred
      stock that we may designate and issue in the future.

     

    

    
      
        

    

    
     Listing

     

    

    Our common stock is listed on The Nasdaq Global Select Market under the symbol “GEG.”

     

    Transfer Agent and Registrar

     

    The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.

     

    Preferred Stock

     

    Pursuant to our Charter, our Board has the authority, without further action by the stockholders (unless such stockholder action is required by applicable law or the Nasdaq Stock Market rules), to designate and issue up to 5,000,000 shares of
      preferred stock in one or more series, to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon any wholly unissued series of preferred stock and the number of shares constituting any such series and the
      designation thereof, or any of them; and to increase or decrease the number of shares of any series subsequent to the issuance of that series, but not below the number of shares of such series then outstanding.

     

    The Delaware General Corporation Law (the DGCL) provides that the holders of preferred stock will have the right to vote separately as a class (or, in some cases, as a series) on an amendment to our Charter
      if the amendment would change the par value, the number of authorized shares of the class or the powers, preferences or special rights of the class or series so as to adversely affect the class or series, as the case may be. This right is in addition
      to any voting rights that may be provided for in the applicable certificate of designation.

     

    Our Board may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock, while providing flexibility
      in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in our control and may adversely affect the market price of the common stock and the
      voting and other rights of the holders of common stock. Additionally, the issuance of preferred stock may have the effect of decreasing the market price of our common stock.

     

    Delaware Anti-Takeover Law and Provisions of our Charter and our Bylaws

     

    Delaware Anti-Takeover Law

     

    We are subject to Section 203 of the DGCL. Section 203 generally prohibits a public Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date of the transaction in
      which the person became an interested stockholder, unless:

     

    	

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            prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

          

     

    
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            upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the
              time the transaction commenced, excluding for purposes of determining the number of shares outstanding (a) shares owned by persons who are directors and also officers and (b) shares owned by employee stock plans in which employee participants
              do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

          

     

    	

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            on or subsequent to the date of the transaction, the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the
              affirmative vote of at least 662/3% of the outstanding voting stock which is not owned by the interested stockholder.

          

     

    Section 203 defines a business combination to include:

     

    	

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            any merger or consolidation involving the corporation and the interested stockholder;

          

    

    

    	

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            any sale, transfer, pledge or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;

          

    

    

    	

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            subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; and

          

    

    

    	

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            the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

          

     

    In general, Section 203 defines an interested stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation or any entity or person affiliated with or controlling or controlled by the entity
      or person.

     

    Charter and Bylaws

     

    Provisions of our Charter and our Bylaws may delay or discourage transactions involving an actual or potential change in our control or change in our management, including transactions in which stockholders might otherwise receive a premium for
      their shares or transactions that our stockholders might otherwise deem to be in their best interests. Therefore, these provisions could adversely affect the price of our common stock. Among other things, our Charter and our Bylaws:

     

    	

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            permit our Board to issue up to 5,000,000 shares of preferred stock, with any rights, preferences and privileges as they may designate;

          

    

    

    	

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            provide that the authorized number of directors may be fixed from time to time by a bylaw or amendment or by one or more resolutions duly adopted by our Board;

          

     

    	

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            provide that any vacancies resulting from death, resignation, disqualification, removal, or other causes, as well as newly created directorships, may, except as otherwise required by law and subject to the
              rights of the holders of any series of preferred stock, be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum or vote of the holders of a majority of the voting power of the then-outstanding
              shares;

          

     

    
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            require that any action to be taken by our stockholders must be effected at a duly called annual or special meeting of stockholders and not be taken by written consent;

          

     

    	

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            provide that stockholders seeking to present proposals before a meeting of stockholders or to nominate candidates for election as directors at a meeting of stockholders must provide notice in writing in a
              timely manner, and also specify requirements as to the form and content of a stockholder’s notice; do not provide for cumulative voting rights (therefore allowing the holders of a majority of the shares of our common stock entitled to vote in
              any election of directors to elect all of the directors standing for election, if they should so choose); and provide that special meetings of our stockholders may be called only by our Board; and

          

     

    	

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            restricts any direct or indirect transfer (such as transfers of our stock that result from the transfer of interests in other entities that own our stock) if the effect would be to (a) increase the direct or
              indirect ownership of our stock by any Person (as defined below) from less than 4.99% to 4.99% or more; or (b) increase the percentage of our common stock owned directly or indirectly by a Person owning or deemed to own 4.99% or more of our
              common stock.

          

     

    “Person” means any individual, firm, corporation or other legal entity, including persons treated as an entity pursuant to Treasury Regulation §1.382-3(a)(1)(i), and includes any successor (by merger or otherwise) of such entity.

     

    Restricted transfers include sales to Persons whose resulting percentage ownership (direct or indirect) of our common stock would exceed the 4.99% thresholds discussed above or to Persons whose direct or indirect ownership of our common stock
      would by attribution cause another Person to exceed such threshold. Complicated common stock ownership rules prescribed by the Internal Revenue Code of 1986, as amended (the Code), and regulations issued
      thereunder, will apply in determining whether a Person is a 4.99% stockholder under the transfer restriction in our Charter. A transfer from one member of a “public group” (as that term is defined under Section 382 of the Code) to another member of
      the same public group does not increase the percentage of our common stock owned directly or indirectly by the public group, and, therefore, such transfers are not restricted.

     

    For purposes of determining the existence and identity of, and the amount of our common stock owned by, any stockholder, we will be entitled to rely on the existence or absence of certain public securities filings as of any date, subject to our
      actual knowledge of the ownership of our common stock. Our Charter includes our right to require a proposed transferee, as a condition to registration of a transfer of our common stock, to provide all information reasonably requested regarding such
      person’s direct and indirect ownership of our common stock.

     

    Any of these provisions may be amended by a majority of our Board.

     

    
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    Preferred Stock Purchase Rights and Units

     

    Stockholders’ Rights Agreement

     

    On December 19, 2020, our Board adopted a Stockholders’ Rights Agreement (the Rights Agreement) in connection with the
      consummation of a holding company reorganization transaction, that resulted in the cancellation of the previous Stockholders’ Rights Agreement at Great Elm Capital Group, Inc.

     

    Description of Rights Plan

     

    The Rights Agreement is designed to preserve our tax assets and to prevent a person or group from acquiring more than 9.9% of our outstanding capital stock without negotiating with our Board. The possibility of a person or group exerting influence
      over our Board or business from a minority investment position could harm our ability to create long-term value for all stockholders.

     

    Rights Dividend

     

    Pursuant to the Rights Agreement, our Board declared a dividend distribution of one preferred stock purchase right (a Right) for each outstanding share of our common stock to stockholders of record as of
      the close of business on December 29, 2020 (the Record Date). In addition, one Right will automatically attach to each share of common stock issued between the Record Date and the Distribution Date (defined
      below). Each Right entitles the registered holder thereof to purchase a unit consisting of one ten-thousandth of a share (a Unit) of Series A Junior Participating Cumulative Preferred Stock, par value $0.001
      per share (the Series A Preferred Stock), at a cash exercise price of $15.00 per Unit (the Exercise Price), subject to adjustment, under certain conditions specified in
      the Rights Agreement and summarized below.

     

    Distribution Date

     

    Initially, the Rights are not exercisable and are attached to and trade with all shares of common stock outstanding as of, and issued subsequent to, the Record Date. The Rights will separate from the common stock and will become exercisable upon
      the earlier of:

     

    	

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            the close of business on the tenth business day following the first public announcement that a person or group of affiliated or associated persons (an Acquiring Person)
              has acquired beneficial ownership (as defined in the Rights Agreement using definitions from the Code and the rules and regulations thereunder) of 4.99% or more of the outstanding shares of common stock, other than as a result of repurchases
              of stock by us or certain inadvertent actions by a stockholder;

          

     

    	

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            the close of business on the tenth business day following the first public announcement that an Acquiring Person has acquired beneficial ownership (as defined under the Rights Agreement using definitions from
              the Securities Exchange Act of 1934, as amended (the Exchange Act), and the rules and regulations thereunder) of 9.99% or more of the outstanding shares of common stock, other than as a result of
              repurchases of stock by us or certain inadvertent actions by a stockholder (the date of announcement under this or the preceding bullet, the Stock Acquisition Date); or

          

     

    
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            the close of business on the tenth business day (or such later day as the Independent Directors (as defined in the Rights Agreement) may determine) following the commencement of a tender offer or exchange offer
              that could result, upon its consummation, in a person or group becoming the beneficial owner of 4.99% (using the tax definitions) or 9.99% (using the Exchange Act definitions) or more of the outstanding shares of common stock (the earlier of
              such dates being herein referred to as the Distribution Date).

          

     

    Notwithstanding the foregoing, with respect to any person:

     

    	

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            who beneficially owns using the tax definitions 4.99% or more of the outstanding shares of common stock as of the Record Date; or

          

     

    	

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            who beneficially owns using the Exchange Act definitions 9.99% or more of the outstanding shares of common stock as of the record date (such persons being referred to in the Rights Agreement as a Grandfathered Person),

          

     

    the Distribution Date will not occur unless such Grandfathered Person has acquired beneficial ownership of shares of common stock representing an additional 1/2% of the outstanding shares of common stock beneficially owned as of the Record Date,
      for any other Grandfathered Person not listed on Schedule A of the Rights Agreement (the Grandfathered Percentage).

     

    Until the Distribution Date (or earlier redemption, exchange or expiration of the Rights):

     

    	

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            the Rights will be evidenced by the common stock certificates and will be transferred with and only with such common stock certificates;

          

    

    

    	

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            new common stock certificates issued after the Record Date will contain a notation incorporating the Rights Agreement by reference; and

          

     

    	

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            the surrender for transfer of any certificates for common stock will also constitute the transfer of the Rights associated with the common stock represented by such certificate.

          

     

    As soon as practicable after the Distribution Date, one or more certificates evidencing one Right for each share of common stock held by us, subject to adjustment as provided herein (the Right Certificates)
      will be mailed to holders of record of common stock as of the close of business on the Distribution Date and, thereafter, the separate Right Certificates alone will represent the Rights. Except as otherwise determined by the Independent Directors,
      only shares of common stock issued prior to the Distribution Date will be issued with Rights.

     

    Process for Potential Exemption

     

    Any person who wishes to effect any acquisition of shares of common stock that would, if consummated, result in such person

     

    	

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            beneficially owning (using the tax definitions) more than 4.99% of the outstanding shares of common stock;

          

     

    
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            beneficially owning (using the Exchange Act definitions) more than 9.99% of the outstanding shares of common stock; or

          

     

    	

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            a Grandfathered Person beneficially owning more than the Grandfathered Percentage,

          

     

    may request that our Independent Directors grant an exemption with respect to such acquisition under the Rights Agreement. Our Independent Directors may deny such an exemption request if they determine, in their sole discretion, that the
      acquisition of beneficial ownership of common stock by such person could jeopardize or endanger the availability to us of the net operating losses or for whatever other reason they deem reasonable, desirable or appropriate. Any exemption granted may
      be granted in whole or in part, and may be subject to limitations or conditions (including a requirement that the person agree that it will not acquire beneficial ownership of shares of common stock in excess of the maximum number and percentage of
      shares approved by our Independent Directors or that it will not request another exemption).

     

    Subscription and Merger Rights

     

    In the event that a Stock Acquisition Date occurs, proper provision will be made so that each holder of a Right (other than an Acquiring Person or its associates or affiliates, whose Rights shall become null and void) will thereafter have the
      right to receive upon exercise, in lieu of a number of Units of Series A Preferred Stock, that number of shares of our common stock (or, in certain circumstances, including if there are insufficient shares of common stock to permit the exercise in
      full of the Rights, Units of Series A Preferred Stock, other securities, cash or property, or any combination of the foregoing) having a market value of two times the Exercise Price of the Right (such right being referred to as the Subscription Right). If, at any time following the Stock Acquisition Date:

     

    	

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            we consolidate with, or merge with and into, any other person, and we are not the continuing or surviving corporation;

          

     

    	

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            any person consolidates with us or merges with and into us and we are the continuing or surviving corporation of such merger and, in connection with such merger, all or part of the shares of our common stock
              are changed into or exchanged for stock or other securities of any other person or cash or any other property; or

          

     

    	

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            50% or more of our assets or earning power is sold, mortgaged or otherwise transferred,

          

     

    each holder of a Right (other than an Acquiring Person or its associates or affiliates, whose Rights shall become null and void) will thereafter have the right to receive, upon exercise, common stock of the acquiring company having a market value
      equal to two times the Exercise Price of the Right (the Merger Right).

     

    The holder of a Right will continue to have the Merger Right whether or not such holder has exercised the Subscription Right. Rights that are or were beneficially owned by an Acquiring Person may (under certain circumstances specified in the
      Rights Agreement) become null and void.

     

    
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    Until a Right is exercised, the holder will have no rights as a stockholder of our company (beyond those as an existing stockholder), including the right to vote or to receive dividends. While the distribution of the Rights will not be taxable to
      stockholders or to us, stockholders may, depending upon the circumstances, recognize taxable income in the event that the Rights become exercisable for Units, other securities of ours, other consideration or for common stock of an acquiring company.

     

    Exchange Feature

     

    At any time after a person becomes an Acquiring Person, our Independent Directors may, at their option, exchange all or any part of the then outstanding and exercisable Rights for shares of common stock or Units at an exchange ratio specified in
      the Rights Agreement. Notwithstanding the foregoing, our Independent Directors generally will not be empowered to effect such exchange at any time after any person becomes the beneficial owner of 50% or more of our common stock.

     

    Adjustments

     

    The Exercise Price payable, and the number of Units or other securities or property issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent dilution

     

    	

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            in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Series A Preferred Stock;

          

     

    	

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            if holders of the Series A Preferred Stock are granted certain rights or warrants to subscribe for Series A Preferred Stock or convertible securities at less than the current market price of the Series A
              Preferred Stock; or

          

     

    	

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            upon the distribution to holders of the Series A Preferred Stock of evidences of indebtedness or assets (excluding regular quarterly cash dividends) or of subscription rights or warrants (other than those
              referred to above).

          

     

    With certain exceptions, no adjustment in the Exercise Price will be required until cumulative adjustments amount to at least 1% of the Exercise Price. We are not obligated to issue fractional Units. If we elect not to issue fractional Units, in
      lieu thereof an adjustment in cash will be made based on the fair market value of the Series A Preferred Stock on the last trading date prior to the date of exercise.

     

    Redemption

     

    The Rights may be redeemed in whole, but not in part, at a price of $0.001 per Right (payable in cash, common stock or other consideration deemed appropriate by our Independent Directors) by our Independent Directors only until the earlier of (i)
      10 days after any person becomes an Acquiring Person or (ii) the expiration date of the Rights Agreement. Immediately upon the action of our Independent Directors ordering redemption of the Rights, the Rights will terminate and thereafter the only
      right of the holders of Rights will be to receive the redemption price.

     

    
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    Amendment

     

    Our Independent Directors in their sole discretion at any time prior to the time at which any person becomes an Acquiring Person may amend the Rights Agreement. After such time our Independent Directors may, subject to certain limitations set
      forth in the Rights Agreement, amend the Rights Agreement only to cure any ambiguity, defect or inconsistency, to shorten or lengthen any time period, or to make changes that do not adversely affect the interests of Rights holders (excluding the
      interests of an Acquiring Person or its associates or affiliates).

     

    Expiration Date

     

    The Rights are not exercisable until the Distribution Date and will expire at the earlier of:

     

    	

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            the time when the Rights are redeemed as provided therein;

          

     

    	

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            the time when the Rights are exchanged as provided therein;

          

     

    	

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            the repeal of Section 382 of the Code if our Independent Directors determine that the Rights Agreement is no longer necessary for the preservation of Tax Benefits (as defined in the Rights Agreement);

          

     

    	

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            the beginning of our taxable year to which our Board determines that no Tax Benefits may be carried forward; or

          

     

    	

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            the close of business on January 29, 2028.

          

     

     

    

     - 9 -Exhibit 10.1

      

    

    

    
      December 29, 2020

       

      Dear Mr. Reed:

       

      This offer letter (this “Offer Letter”) sets forth the terms of your employment as of the date hereof (the “Effective Date”) as Chief Executive Officer of Great Elm
        Group, Inc. (the “Company”) and Chief Investment Officer of Great Elm Capital Management, Inc. (“GECM”).  Effective as of November 3, 2016, you were employed by Great Elm Capital Group, Inc. (“GEC”).  The terms of your employment with GEC were set
        forth in the Employment Agreement between you and GEC, dated November 3, 2016, as amended and restated as of September 18, 2017 (“GEC Employment Agreement”).

       

      On December 21, 2020, the Company, GEC and Forest Merger Sub, Inc. entered in an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the transactions
        contemplated by the Merger Agreement, the Company became the holding company of GEC, each share of common stock of GEC became a share of common stock of the Company, and the Company assumed all rights and obligations under GEC equity compensation
        plans.

       

      You specifically acknowledge and agree to the terms of this Offer Letter and  that, as of the Effective Date, this Offer Letter supersedes and replaces the GEC
        Employment Agreement and that GEC has no further obligations to you thereunder. You will be entitled to payments and any other benefits under this Offer Letter only to the extent there is no duplication of any payment or benefit already received by
        you under the GEC Employment Agreement.

       

      	1.	
              Title.  You will serve as Chief Executive Officer of the Company reporting directly to the Company’s board of directors and you will serve as Chief Investment Officer of GECM.
                  You will also retain your position as Chief Executive Officer at Forest Investments, Inc., (f/k/a GEC).

            

       

      	2.	
              Employment Location.  You are expected to work at the Company’s corporate headquarters in the greater Boston area.

            

       

      	3.	
              Base Salary.  Your annual base salary rate will be $250,000.00, less applicable withholdings and deductions, commencing on the Effective Date, and paid in accordance with the
                  Company’s payroll practices in effect from time to time.

            

       

      	4.	
              Bonus.  You will continue to be eligible to participate in the Great Elm Capital Management Performance Bonus Plan (the “Plan”). The Company has the right, but not any
                  obligation, to award you bonuses in its sole discretion and there is no guarantee that you will be awarded any bonus in any period or be eligible for a bonus under that Plan or any other bonus or incentive plan for any period.

            

       

      
        1

        
          

      

      	5.	
              Equity Incentives.

            

       

      	5.1	
              Stock Options.

            

       

      The compensation committee (the “Compensation Committee”) of the board of directors of GEC has awarded you options (“Options”) to purchase 213,000
        shares of GEC common stock at an exercise price equal to the closing price of the shares on September 18, 2017 (“Option Grant Date”). You will receive a separate notice of the Company’s assumption of the rights and obligations of the Options, and
        the Options will continue to vest and be governed according to the terms of the GEC 2016 Long-Term Incentive Plan and related award agreement.

       

      You will be eligible for periodic additional option grants in the sole discretion of the compensation committee of the board of directors of the
        Company and there is no assurance that any such award will be made at any future time.

       

      	5.2	
              Performance Shares.  All performance shares you hold as of the Effective Date will continue to be governed by the terms of the Amended and Restated Notice of Performance Stock
                  Award delivered to you on September 18, 2017.

            

       

      	6.	
              Employee Health and Welfare Benefits.  You will be offered benefits, including participation in the Company’s health, dental and 401(k) plans, consistent with those offered to
                  similarly-situated employees.

            

       

      	7.	
              Business Expenses.  The Company will reimburse your reasonable out of pocket expenses incurred in connection with your service, subject to the Company’s policies as in effect
                  from time to time, and applicable IRS guidelines.

            

       

      	8.	
              At Will Employment.  Your employment with the Company is “at will” and may be terminated at any time by the Company or by you for any reason or no reason.

            

       

      	9.	
              Non-Solicitation.

            

       

      	9.1	
              During the term of your employment and for a period of one year thereafter (no matter why your employment concluded), you will not, directly or indirectly, on your own account or on behalf of or in
                conjunction with any other person or organization induce or attempt to induce any employee of the Company or its affiliates to leave the employment of the Company or its affiliates (whether or not such would be a breach of contract by such
                employee).

            

       

      	9.2	
              During the term of your employment and for a period of one year thereafter (no matter why your employment concluded), you will not, directly or indirectly, on your own account or on behalf of or in
                conjunction with any other person or organization solicit (a) any investor in the Company or in any managed/advised investment vehicle of the Company or (b) any borrower or other investee in which the Company or any managed/advised
                investment vehicle of the Company holds an investment, provided that you either (a) had business-related contact with such investor, borrower or other investee
                during your employment with the Company or (b) learned non-public information about such investor, borrower or other investee in the course of your employment with the Company.  Nothing in this Section 9.2 shall prohibit you from directly
                or indirectly soliciting any such investor, borrower or other investee if prior to such solicitation (i) such investor has not been a fee-paying investor in the Company or in any managed or advised investment vehicle of the Company for one
                year prior to such solicitation or (ii) the Company and any investment vehicle managed by the Company are no longer invested in such borrower or other investee.

            

       

      
        2

        
          

      

      	9.3	
              The restrictions contained in this Section 9 are necessary for the protection of the trade secrets, confidential information and goodwill of the Company and are considered by you to be reasonable
                for such purpose.  You stipulate that irrevocable harm will result from breach of your obligations under this Section 9.  Therefore, in the event of any such breach or threatened breach, you agree that the Company, in addition to such other
                remedies which may be available, shall have the right to obtain an injunction from a court restraining such a breach or threatened breach and the right to specific performance of the provisions of this Section 9 and you hereby waive the
                adequacy of a remedy at law as a defense to such relief.

            

       

      	9.4	
              You stipulate that the remedies at law are inadequate to compensate the Company for breach of your obligations under this Section 9 and the CIAA (as defined below) and that enforcement of the
                provisions of each of this Section 9 and the CIAA is in the public interest of the market for talent in the investment management industry and of investors in the investment vehicles managed/advised by the Company.

            

       

      	9.5	
              If you materially violate any provision of this Section 9 after the end of your employment, you agree that you shall continue to be bound by the restrictions in this Section 9 until a period of one
                year has expired without any material violation of this Section 9.

            

       

      	10.	
              Severance.

            

       

      	10.1	
              If the Company terminates your employment without Cause or you terminate your employment for Good Reason:

            

       

      	

            	(a)	
              You will (i) abide by your obligations under the CIAA and (ii) comply with your obligations under Section 9.

            

       

      	

            	(b)	
              If you execute a customary mutual release and do not exercise any revocation rights you may have, the Company will (i) execute a customary mutual release, (ii) after expiration of any rescission
                periods under applicable law, but in no event more than 70 days following your termination of employment, pay you a lump sum equal to $800,000, (iii) reimburse you all premiums paid by you to continue health and dental insurance for you and
                your family for a period of one year post employment, provided that you timely elect COBRA coverage with respect to any such health and dental insurance, (iv) pay
                you (A) any bonus under Section 4 above for any fully completed plan period which had concluded prior to the date on which termination occurs and (B) any bonus payments from prior periods that you had elected to defer in accordance with
                Company policy, in each case, as and when such payments are made to other employees of the Company in accordance with the terms of the Plan and (v) (A) accelerate the vesting of the shares subject to the options referred to in Section 5.1
                by crediting six months of service (if no vesting had occurred as of the date of termination), (B), if such termination occurs within two years following a Change of Control, accelerate all remaining vesting of the options referred to in
                Section 5.1 and (C) accelerate the vesting of shares subject to the options referred to in Section 5.1 by crediting twelve months of service (in addition to any vesting that had occurred as of the date of termination).

            

       

      
        3

        
          

      

      10.2          Best Net After Tax Adjustment

       

      	

            	(a)	
              If amounts under Section 10.1 would be subject to any excise tax imposed by Sections 409A or 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), (such excise tax together with any
                such interest and penalties, shall be referred to as the “Excise Tax”), then a calculation shall first be made under which such payments or benefits provided to you are reduced to the extent necessary so that no portion thereof shall be
                subject to the Excise Tax (the “4999 Limit”).  The Company shall then compare (1) your Net After-Tax Benefit (as defined below) assuming application of the 4999 Limit with (2) your Net After-Tax Benefit without application of the 4999
                Limit.  If (1) is greater than (2), you will receive amounts under Section 10.1 solely up to the 4999 Limit.  If (2) is greater than (1), then you will be entitled to receive all amounts as specified in Section 10.1 without adjustment, and
                shall be solely liable for any and all Excise Tax related thereto. “Net After-Tax Benefit” shall mean the sum of (i) all payments that you receive or are entitled to receive that are contingent on a change in the ownership or effective
                control of the Company or in the ownership of a substantial portion of the assets of the Company within the meaning of Section 280G(b)(2) of the Code, less (ii) the amount of federal, state, local, employment, and Excise Tax (if any)
                imposed with respect to such payments.

            

       

      	

            	(b)	
              If amounts must be reduced pursuant to Section 10.2(a), you may select the order of reduction, but none of the selected amounts may be “nonqualified deferred compensation” subject to Section 409A
                of the Code.  If you fail to select an order in which amounts are to be reduced, or cannot select such an order without selecting payments that would be “nonqualified deferred compensation” subject to Section 409A of the Code, the Company
                shall (to the extent feasible) reduce accelerated equity incentive vesting first (to the extent the value of such accelerated vesting for 280G purposes is not determined pursuant to Treasury Regulation Section 1.280G-1 Q&A 24(c)),
                followed by cash payments and in the order in which such payments would be made (with payments made closest to the Change in Control being reduced first), followed by accelerated equity incentive vesting (to the extent the value of such
                accelerated vesting is determined pursuant to Treasury Regulation Section 1.280G-1 Q&A 24(c)), and followed last by the continued health and welfare benefits.

            

       

      	

            	(c)	
              The calculations in this Section 10.2 shall be made by a certified public accounting firm, executive compensation consulting firm, or law firm designated by the Company in its sole and absolute
                discretion, and shall be determined using reasonable assumptions and approximations concerning applicable taxes and relying on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The
                costs of performing such calculations shall be borne exclusively by the Company.

            

       

      
        4

        
          

      

      	10.3	
              For purposes of this Offer Letter, “Cause” shall mean:  (a) your theft, dishonesty, misconduct, or falsification of any of the Company’s or its affiliates’ records; (b) any action by you outside of
                the scope of your employment agreement with the Company that has a material detrimental effect on the Company’s reputation or business as reasonably determined by the Company’s board of directors; (c) your substantial failure or inability
                to perform any reasonably assigned duties within the scope of your employment agreement with the Company that has not been cured within thirty business days of written notice from the Company to you, in each case, as determined by the
                Company’s board of directors in its sole discretion; (d) your material violation of any Company policy; (e) your conviction (including any plea of guilty or no contest) of any criminal act (other than traffic violations); or (f) your
                material breach of any written agreement with the Company or its affiliates which has not been cured within ten business days’ of written notice from the Company to you thereof.

            

       

      	10.4	
              For purposes of this Offer Letter, “Good Reason” shall mean your resignation from the Company within six months after the occurrence of any of the following events after the date of this Offer
                Letter:  (a) without your express prior written consent, the significant reduction of your duties, authority, responsibilities, job title, or reporting relationships relative to your duties, authority, responsibilities, job title, or
                reporting relationships as in effect immediately prior to such reduction, or the assignment to you of such reduced duties, authority, responsibilities, job title, or reporting relationships; (b) without your express prior written consent, a
                reduction by the Company of your base salary or bonus target as in effect immediately prior to such reduction or the Company’s failure to pay such amounts when due; (c) a material reduction by the Company in the kind or level of employee
                benefits, excluding salary and bonuses, to which you were entitled immediately prior to such reduction with the result that your overall benefits package is significantly reduced (unless such reduction is part of a program generally
                applicable to other similar level employees of the Company); (d) the relocation of your principal place of work to a facility or a location more than twenty five miles from your then present location, without your express prior written
                consent or (e) breach by the Company of its obligations hereunder or under any incentive or performance award (including under the related award agreements) granted to you by the Company or its affiliates, including, without limitation, the
                equity incentive awards (and related award agreements) referred to in Sections 5.1 and 5.2 above; provided, however, that in each case, your resignation shall not constitute Good Reason under this provision unless (i) you provide the
                Company with written notice of the applicable event or circumstance within thirty days after you first have knowledge of it, which notice reasonably identifies the event or circumstance that you believe constitutes grounds for Good Reason,
                and (ii) the Company fails to correct the event or circumstance so identified within thirty days after receipt of such notice.

            

       

      	10.5	
              For purposes of this Offer Letter, “Change of Control” shall have the meaning given to such term in the GEC 2016 Long-Term Incentive Plan as in effect on the Effective Date.

            

       

      
        5

        
          

      

      	11.	
              General Provisions.

            

       

      	11.1	
              You understand, acknowledge and agree that your obligations under this Offer Letter shall continue in accordance with the express terms of this Offer Letter regardless of any changes in your title,
                position, duties, salary or other compensation or other terms and conditions of employment, and that no change in any of the foregoing shall be considered to end your employment for purposes of this Offer Letter.

            

       

      	11.2	
              You confirm that the employee confidentiality and invention assignment agreement (the “CIAA”) you entered into with GEC is in full force and effect and you acknowledge that the rights and
                obligations of GEC under the CIAA are also the rights and obligations of the Company.

            

       

      	11.3	
              You confirm that you are a citizen of the U.S., a noncitizen national of the U.S., a lawful permanent resident, or an alien authorized to work in the U.S.

            

       

      	11.4	
              Amounts payable hereunder shall be subject to the Company’s claw back policies if its financial statements are restated (a “Restatement”) or as otherwise required by applicable law or listing
                requirement; provided that, except as mandated by applicable law or listing rule, in the event of a claw-back because of a Restatement, (a) the Company may only claw-back payments earned in the period to which the Restatement applies and
                (b) in no event may the Company claw back any payments earned in periods occurring more than three years prior to such Restatement..  Claw backs by the Company required under applicable law shall not constitute a breach of the Company’s
                obligations hereunder nor constitute Good Reason.

            

       

      	11.5	
              You are expected to devote substantially all of your business efforts to service of the Company under this Offer Letter.  Subject to the Company’s code of ethics as in effect from time to time, you
                may participate in charitable, religious or civic organizations that do not materially interfere with your work.

            

       

      	11.6	
              This Offer Letter and the matters covered hereby will be governed by and construed under the laws of the Commonwealth of Massachusetts.

            

       

      	11.7	
              Any dispute arising out of or relating to this Offer Letter or the breach thereof or otherwise arising out of your employment or the termination of that employment (including, without limitation,
                any claims of unlawful employment discrimination or any other claims based on any statute) shall, to the fullest extent permitted by law, be settled by arbitration before a single arbitrator in Boston pursuant to the JAMS Employment
                Arbitration Rules and Procedures as then in effect, subject to a direction to the arbitrator to apply such rules in a manner to minimize cost and maximize efficiency and speed of resolution to the maximum reasonable extent permitted under
                such rules and applicable law consistent with obtaining a fully enforceable resolution of such dispute.  The arbitrator must only choose between the position, in total, that you advance or the position, in total, that the Company advances
                as the closest to the correct resolution of all matters being arbitrated based on the law and the facts.  This paragraph shall be specifically enforceable.  Notwithstanding the foregoing, this paragraph shall not preclude either party from
                pursuing a court action for the sole purpose of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate; provided
                that any other relief shall be pursued through an arbitration proceeding pursuant to this paragraph.

            

       

      
        6

        
          

      

      	11.8	
              This Offer Letter, the award agreements evidencing your option grants, the CIAA, and the Subscription Agreement, dated as of June 22, 2016, among GECC GP Corp., you and the other parties signatory
                thereto, as amended on the Effective Date, the documents governing your existing equity incentive awards, together with all of the Company’s policies and procedures relating to employees, as in effect from time to time, including its Code
                of Ethics, as in effect from time to time (collectively,  “Employment Documents”), constitute our entire agreement with respect to your employment with the Company and no prior negotiations, drafts, arrangements or understandings with
                respect thereto shall be of any effect.  The GEC Employment Agreement shall be of no further effect for periods from and after the Effective Date.

            

       

      	11.9	
              The Company’s benefits, payroll, and other human resource management services may be provided through one or more of the Company’s affiliates or a professional employer organization.  As a result
                of this arrangement, the affiliate or the professional employment organization will be considered your employer of record for these purposes; however, the Company’s Board of Directors will be responsible for directing your work, reviewing
                your performance, setting your schedule and otherwise directing your work at the Company.

            

       

      	11.10	
              If any provision of this Offer Letter is held by an arbitrator or court of competent authority to be unenforceable, the parties intend that (a) the remaining provisions of this Agreement shall be
                enforced in accordance with their terms and (b) the court shall substitute a replacement provision that is enforceable that, as closely as possible, accomplishes the purposes intended by such original provision.

            

       

      	11.11	
              Any amendment or modification to this Offer Letter may only be made pursuant to a written agreement executed by each of the parties hereto.

            

       

      	11.12	
              This Offer Letter will be interpreted and administered in a manner consistent with Section 409A of the Code, and Department of the Treasury regulations and other interpretive guidance promulgated
                thereunder (together, “Section 409A”). Notwithstanding any other provision of this Offer Letter, payments provided under this Offer Letter will be made only upon an event and in a manner that complies with Section 409A or an applicable
                exemption therefrom. Each payment made to you pursuant to this Offer Letter will be designated as a separate payment for purposes of Section 409A. Any payments to be made upon termination of your employment will be made only upon a
                “separation from service” under Section 409A. Notwithstanding this Section 11.12, the Company makes no representations that the payments and benefits provided under this Offer Letter will comply with Section 409A, and in no event will the
                Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by you on account of noncompliance with Section 409A.

            

       

      	11.13	
              You acknowledge and agree that this Offer Letter is personal to you and that your obligations under this Offer Letter may not be delegated to any person. Without the prior written consent of the
                Company, your rights and entitlements under this Offer Letter may not be assigned by you other than by will or the laws of descent and distribution. This Offer Letter will inure to the benefit of and be binding upon both you and the Company
                and your respective heirs, successors and assigns, and in the event of succession or assignment, any reference to you or the Company contained herein will be considered a reference to such successor or assign, as applicable.

            

       

      
        7

        
          

      

      	11.14	
              This Offer Letter may be executed in separate counterparts (including by electronic signature or transmission), each of which will be considered an original and all of which together will
                constitute one and the same instrument.

            

       

      	11.15	
              The sections and headings of this Offer Letter are for convenience only and are not intended to be a part of or to affect the meaning or interpretation of this Offer Letter.

            

       

      
        8

        
          

      

      If this Offer Letter correctly sets forth the terms of our agreement, please sign and return this Offer Letter whereupon it shall become our binding agreement.

       

      

      Very truly yours,

       

      /s/ James P. Parmelee

       

      James P. Parmelee

      Compensation Committee Chairman

      Great Elm Group, Inc.

       

      Accepted and agreed to as of the
          Effective Date:

       

      	
              /s/ Peter A. Reed

            	 
	
              Peter A. Reed

            	 

      

      

      [Signature Page to Offer Letter for Peter A. Reed]

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