Document:

aljj-ex104_10.htm

 

Exhibit 10.4

ALJ regional holdings, inc.

Common stock PURCHASE AGREEMENT

This Common Stock Purchase Agreement (this “Agreement”) is made as of July 30, 2019 among ALJ Regional Holdings, Inc., a Delaware corporation (the “Corporation”), and each of the investors, severally and not jointly, listed on the Schedule of Purchasers attached hereto as Exhibit A (each of which is herein referred to as a “Purchaser” and collectively as the “Purchasers").

SECTION 1

Authorization and Sale of Securities

1.1Sale of Securities. Subject to the terms and conditions hereof, each Purchaser agrees, severally and not jointly, to purchase at the Closing (as defined below), and the Corporation agrees to issue and sell to each Purchaser at the Closing, (i) the number of shares of common stock, par value $0.01 per share, of the Corporation (the “Common Stock”) set forth across such Purchaser’s name on Exhibit A (the “Shares”) and (ii) warrants (the “Warrants”) to purchase the number of shares of Common Stock (the “Warrant Shares”, and together with the Warrants and the Shares, the “Securities”) set forth across such Purchaser’s name on Exhibit A for the aggregate purchase price set forth across such Purchaser’s name on Exhibit A (the “Aggregate Purchase Price”). The Corporation’s agreement with each Purchaser is a separate agreement, and the sale and issuance of the Securities to each Purchaser is a separate sale and issuance.

1.2Closing.  The issuance and sale to, and purchase by, each Purchaser of the Securities pursuant to Section 1.1 hereof shall take place at the offices of Shearman & Sterling LLP, 1460 El Camino Real, 2nd Floor, Menlo Park, CA 94025, on such date and at such time (which date, time and place are designated as the “Closing”) as the consummation of the acquisition contemplated by that certain Membership Interest Purchase Agreement, by and among the Corporation’s wholly owned subsidiary Faneuil Inc. and the sellers party thereto (the “MIPA”), or at such other date, time and place as may be determined by the Corporation; provided, that the Corporation shall provide at least two business days’ notice to the Purchasers of such Closing; provided, further, that the Closing shall in no event be later than August 15, 2019.

1.3Closing Deliverables.  At the Closing, the Corporation shall (i) instruct the transfer agent for the Common Stock to issue to each Purchaser a certificate representing the Shares (the “Share Certificate”), registered in the name of such Purchaser, and (ii) issue to each Purchaser a Warrant, in substantially the form attached hereto as Exhibit B, against payment of such Purchaser’s Aggregate Purchase Price by wire transfer of immediately available funds to an account designated by the Corporation. 

1.4 Authorization of Securities.  The Corporation has authorized the sale and issuance of the Securities.  The Common Stock shall have the rights, preferences, privileges and restrictions set forth in the Corporation’s Restated Certificate of Incorporation, as amended.

 

 

SECTION 2

Representations and Warranties of the Purchasers

Each Purchaser, independently and not joint and severally, hereby represents and warrants to the Corporation with respect to the purchase of the Securities as follows:

2.1Authorization.  The Purchaser has the corporate or limited liability company power and authority (or in the case of an individual, the capacity) to execute and deliver this Agreement, the Registration Rights Agreement (as defined below) and all other agreements, documents, certificates, and instruments delivered to the Corporation in connection with the transactions contemplated under this Agreement to which it is a party, and to consummate the transactions contemplated hereby and thereby.  No other proceedings on the part of the Purchaser are necessary to authorize the execution and delivery by the Purchaser of this Agreement and the Registration Rights Agreement and the consummation by it of the transactions contemplated hereby and thereby.  This Agreement (and as of the Closing, the Registration Rights Agreement) have been duly executed and delivered by the Purchaser and (assuming due authorization, execution and delivery by the counterparties thereto) each of them constitutes a valid and binding agreement of the Purchaser and is enforceable against the Purchaser in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether considered in a proceeding in equity or at law).

2.2Experience; Risk; Accredited Investor.  The Purchaser has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the purchase of the Securities and of protecting its interests in connection herewith.  The Purchaser is able to fend for itself in the transactions contemplated by this Agreement and has the ability to bear the economic risk of this investment, including complete loss of the investment. The Purchaser is an “accredited investor,” as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act, and it is able to bear the economic risk of an investment in the Corporation's securities.

2.3Investment.  The Purchaser is acquiring the Securities for investment for its own account, not as a nominee or agent, and not with a view to, or for resale in connection with, any distribution thereof, and has no present intention of selling, granting any participation in, or otherwise distributing the same.  The Purchaser understands that the Securities to be purchased have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser’s representations as expressed herein.

2.4Restricted Securities; Rule 144.  The Purchaser understands that the Securities are characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Corporation in a transaction not involving a public offering and that under such laws and applicable regulations the Securities may be resold without registration under the Securities Act only in certain limited circumstances.  The Purchaser acknowledges that the Securities must be held indefinitely unless subsequently registered under the Securities Act or 

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an exemption from such registration is available.  The Purchaser is aware of the provisions of Rule 144 promulgated under the Securities Act which permit limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions.

2.5Access to Data.  The Purchaser has had an opportunity to discuss the Corporation’s business, management and financial affairs with the Corporation’s management and the opportunity to review the Corporation’s facilities.  The Purchaser has been given such access to the books and records of the Corporation as is reasonably necessary for the Purchaser to make an informed investment decision.

2.6Legends.  It is understood that each certificate representing the Securities and any securities issued in respect thereof or exchange therefor shall bear a legend in the following form (in addition to any legend required under applicable state securities laws):

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO IT STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT. COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SHARES AND RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE CORPORATION AT THE PRINCIPAL EXECUTIVE OFFICES OF THE CORPORATION.”

2.7No Disqualification Events.  The Purchaser is not subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”).

SECTION 3

Representations and Warranties of the Corporation

3.1Authorization.  The Corporation has the corporate power and authority to execute and deliver this Agreement, the Registration Rights Agreement and all other agreements, documents, certificates, and instruments delivered to the Purchasers in connection with the transactions contemplated under this Agreement to which it is a party, and to consummate the transactions contemplated hereby and thereby.  No other corporate proceedings on the part of the Corporation are necessary to authorize the execution and delivery by the Corporation of this Agreement and the Registration Rights Agreement and the consummation by it of the transactions contemplated hereby and thereby.  This Agreement (and as of the Closing, the Registration Rights 

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Agreement) has been duly executed and delivered by the Corporation and (assuming due authorization, execution and delivery by the counterparties thereto) each of them constitutes a valid and binding agreement of the Corporation and is enforceable against the Corporation in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether considered in a proceeding in equity or at law).

3.2Noncontravention.  The execution and delivery by the Corporation of this Agreement and the Registration Rights Agreement do not, and the consummation of the transactions contemplated hereby and thereby and compliance with the provisions hereof and thereof by the Corporation will not, conflict with or result in any material breach of the terms, conditions, or provisions of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, amendment, cancellation, or acceleration of any obligation, or result in the creation of any lien upon any of the properties or assets of the Corporation under (a) any material contract of the Corporation, (b) any provision of the certificate of incorporation or bylaws of the Corporation, or (c) any law applicable to the Corporation or its properties or assets.  

3.3Capitalization.  The Securities, when issued and paid for in accordance with the terms of this Agreement, will be duly and validly authorized and issued, fully paid and non-assessable, and will be issued in compliance with all applicable federal and state laws.  There are no preemptive rights with respect to the Securities, and none of the securities issued by the Corporation have been issued in violation of any preemptive or similar rights.  The Securities, when issued to Purchaser, will be free and clear of any liens, security interests, encumbrances or pledges.  

3.4SEC Filings; Financial Statements.  

(a)The Corporation has filed all forms, reports and documents required to be filed by it with the Securities and Exchange Commission (the “SEC”) since May 10, 2016 (collectively, the “SEC Reports”).  The SEC Reports (i) complied in all material respects as to form with the requirements of the Securities Act, or the Securities Exchange Act of 1934, as amended, as the case may be, and the rules and regulations promulgated thereunder, and (ii) did not, at the time they were filed, or, if amended, as of the date of such amendment, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.  

(b)Each of the consolidated financial statements contained in the SEC Reports present fairly, in all material respects, the consolidated financial position, results of operations and cash flows of the Corporation and its subsidiaries as of such dates and for the periods then ended, except as otherwise noted therein.  There have been no material adverse changes to the Corporation since its last Quarterly Report on Form 10-Q filed with the SEC.

3.5Brokerage.  There are no claims for brokerage commissions, finders’ fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement made by or on behalf of the Corporation or for which the Corporation may otherwise be liable. 

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3.6No Disqualification Events.  None of the Corporation, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Corporation participating in the offering, any beneficial owner of 20% or more of the Corporation’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Corporation in any capacity at the time of sale (each, an “Issuer Covered Person”) is subject to any Disqualification Event. The Corporation has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event.

3.7Aggregate Proceeds.  The Aggregate Purchase Price for all Securities issued and sold to the Purchasers hereunder shall be at least $7,000,000.

SECTION 4

Conditions to the Purchasers’ Obligations at Closing

The obligations of each Purchaser under Section 1 of this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions:

	
4.1
	
Representations and Warranties.  The representations and warranties of the Corporation in Section 3 of this Agreement shall be true and correct as of the Closing with the same force and effect as though such representations and warranties had been made on and as of the date of the Closing.

	
4.2
	
Performance.  The Corporation shall have delivered (or caused the transfer agent to deliver) the Share Certificate and all other covenants, agreements and conditions contained in this Agreement to be performed by the Corporation on or prior to the Closing shall have been performed or complied with by the Corporation in all material respects as of the Closing.

	
4.3
	
Compliance Certificate.  An officer of the Corporation shall have delivered to the Purchaser a certificate certifying that the conditions specified in Sections 4.1 and 4.2 have been fulfilled.

	
4.4
	
Registration Rights Agreement.  The Corporation shall have executed and delivered to the Purchaser the Registration Rights Agreement in substantially the form set forth as Exhibit C hereto (the “Registration Rights Agreement”).

	
4.5
	
Permits, Qualifications and Consents.  All authorizations, approvals, consents or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Securities pursuant to this Agreement shall be duly obtained and effective as of the Closing.

	
4.6
	
Proceedings and Documents.  All corporate and other proceedings in connection with the transactions contemplated at the Closing hereby and all documents incident thereto shall be reasonably satisfactory in form and substance to the Purchaser, and the Purchaser shall have received all such counterpart original and certified or other copies of such documents as they may reasonably request.

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SECTION 5

Conditions to the Corporation’s Obligations at Closing

The obligations of the Corporation to each Purchaser under Section 1 of this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions:

	
5.1
	
Representations and Warranties.  The representations and warranties of the Purchaser in Section 2 of this Agreement shall be true and correct as of the Closing with the same force and effect as though such representations and warranties had been made on and as of the date of the Closing.

	
5.2
	
Compliance Certificate.  An officer of the Purchaser (or, in the case of an individual, the Purchaser) shall have delivered to the Corporation a certificate certifying that the condition specified in Section 5.1 has been fulfilled.

	
5.3
	
Payment of Aggregate Purchase Price.  The Purchaser shall have delivered to the Corporation the Aggregate Purchase Price as specified in Section 1 of this Agreement. 

	
5.4
	
Registration Rights Agreement.  The Purchaser shall have executed and delivered to the Corporation the Registration Rights Agreement.

	
5.5
	
Permits, Qualifications and Consents.  All authorizations, approvals, consents or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Securities pursuant to this Agreement shall be duly obtained and effective as of the Closing.

SECTION 6

Termination

	
6.1
	
Termination.  This Agreement may be terminated, and the transactions contemplated hereby may be abandoned, at any time prior to Closing: 

	
(a)
	
by mutual written agreement of the Corporation and a Purchaser; or 

	
(b)
	
by either the Corporation or a Purchaser by written notice to the other party if the Closing shall not have occurred by August 15, 2019 (the “Outside Date”), provided that the party seeking to terminate this Agreement pursuant to this Section 6.1(b) shall not have breached in any material respect its obligations under this Agreement in any manner that shall have been the primary cause of the failure of the Closing to occur on or before the Outside Date.

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SECTION 7

Miscellaneous

7.1Governing Law.  This Agreement shall be governed in all respects by the laws of the State of Delaware as applied to contracts made and to be fully performed entirely within such State between residents of such State.  All disputes arising out of this Agreement shall be subject to the exclusive jurisdiction and venue of any court within Wilmington, Delaware and the parties consent to the personal and exclusive jurisdiction and venue of such courts.

7.2Successors and Assigns.  Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

7.3Entire Agreement; Amendment.  This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subjects hereof.  Neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by a Purchaser and the Corporation.

7.4California Corporate Securities Law.  THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL UNLESS THE SALE OF SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTIONS 25100, 25102 or 25105 OF THE CALIFORNIA CORPORATIONS CODE.  THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

7.5Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the party actually executing such counterpart, and all of which together shall constitute one instrument.

7.6Notices.  All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly given:  (a) on the date of service if served personally on the party to whom notice is to be given; (b) on the day of transmission if sent via facsimile transmission to the facsimile number given below and telephonic confirmation of receipt is obtained promptly after completion of transmission; (c) on the business day after deposit to Federal Express or similar overnight courier or the Express Mail service maintained by the United States Postal Service, to the party as follows; or (d) upon delivery if sent by electronic mail.

	
 
	
If to the Corporation:
	
ALJ Regional Holdings, Inc.
Attn: Executive Chairman
244 Madison Avenue

PMB #358 

7

 

New York, New York 10016

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

Shearman & Sterling LLP
Attention: Christopher M. Forrester
1460 El Camino Real, 2nd Floor

Menlo Park, CA  94025

Facsimile: (650) 838-3699

	
 
	
If to Purchaser:
	
Such Purchaser’s address as set forth beneath its signature or its name on Exhibit A hereto.

***

 

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The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

 

ALJ REGIONAL HOLDINGS, INC.

A Delaware corporation

 

 

By:  /s/ Brian Hartman              .

Name: Brian Hartman

Title:   CFO

 

 

 

 

 

[Signature Page to Common Stock Purchase Agreement]

 

 

The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

Jess M Ravich Defined Benefit Pension Plan & Trust DTD 12/27/02

 

 

By:  /s/ Jess Ravich                         .

Name: Jess Ravich

Title: Trustee

 

[Signature Page to Common Stock Purchase Agreement]

 

 

The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

Libra Securities Holdings, LLC

 

 

By:  /s/ Jess Ravich                         .

Name: Jess Ravich

Title: CEO

 

[Signature Page to Common Stock Purchase Agreement]

 

 

The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

Pensco Trust Co Custodian FBO William Montgomery ROTH IRA

 

By: /s/ William Montgomery      .

Name: William Montgomery

 

 

[Signature Page to Common Stock Purchase Agreement]

 

 

The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

Great Elm Opportunities Fund I, LP

 

 

By:  /s/ Adam Kleinman       .

Name: Adam Kleinman

Title: Authorized Signatory

 

 

 

[Signature Page to Common Stock Purchase Agreement]

 

 

The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

Jeffrey Benjamin 2012 Family Trust

 

 

By: /s/ Claudia Slacik                    .

Name: Claudia Slacik

Title: Trustee

 

 

[Signature Page to Common Stock Purchase Agreement]

 

 

The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

Hectogon Fund L.P.

 

 

By: /s/ Daniel Harmetz                .

Name: Daniel Harmetz

Title: Managing GP

 

 

[Signature Page to Common Stock Purchase Agreement]

 

 

The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

General Management Holdings LLC

 

 

By: /s/ Taylor Harmeling                     .

Name: Taylor Harmeling

Title: Manager

 

 

[Signature Page to Common Stock Purchase Agreement]

 

 

The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

Anna Mary Van Buren Trust Agreement Dated September 14, 2012

 

By:   /s/ Anna Van Buren           .

Name: Anna Van Buren

Title: Trustee

 

 

 

[Signature Page to Common Stock Purchase Agreement]

 

 

The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

David Chih-Wen Wang and Claudia Wang, Trustees of the Wang Family Trust, u/d/o December 31, 2013

 

 

By:  /s/ David Wang                          .

Name: David Want

Title: Trustee

 

 

 

[Signature Page to Common Stock Purchase Agreement]

 

 

The foregoing Common Stock Purchase Agreement is hereby executed as of the date first set forth above.

Coster Revocable Trust Dated August 18, 2015

 

 

By: /s/ Michael Coster                             .

Name: Michael Coster

Title: Trustee

 

 

 

 

[Signature Page to Common Stock Purchase Agreement]

 

 

EXHIBIT A

 

 

				
	
Name
	
 Shares 
	
Warrants
	
Aggregate Purchase Price

	
Jess M Ravich Defined Benefit Pension Plan & Trust DTD 12/27/02
	
                  600,000 
	
                       199,800 
	
 $           1,080,000 

	
Libra Securities Holdings, LLC
	
                  960,000 
	
                       319,680 
	
 $           1,728,000 

	
 

Pensco Trust Co Custodian FBO William Montgomery ROTH IRA
	
                  782,000 
	
                       260,406 
	
 $           1,407,600 

	
Great Elm Opportunities Fund I, LP
	
                  555,555 
	
                       185,000 
	
 $               999,999 

	
Jeffrey Benjamin 2012 Family Trust
	
                  416,555 
	
                       138,713 
	
 $               749,799 

	
Hectogon Fund L.P.
	
                  194,444 
	
                         64,750 
	
 $               349,999 

	
General Management Holdings LLC
	
                  275,555 
	
                         91,760 
	
 $               495,999 

	
 

Anna Mary Van Buren Trust Agreement Dated September 14, 2012
	
                     55,555 
	
                         18,500 
	
 $                 99,999 

	
 

David Chih-Wen Wang and Claudia Wang, Trustees of the Wang Family Trust, u/d/o December 31, 2013
	
                     27,600 
	
                            9,191 
	
 $                 49,680 

	
 

Coster Revocable Trust Dated August 18, 2015
	
                     27,600 
	
                            9,191 
	
 $                 49,680 

	
Total
	
               3,894,864 
	
                   1,296,991 
	
 $           7,010,755 

 

 

 

EXHIBIT B

Form of warrant

 

 

Exhibit C

Form of Registration Rights Agreementaljj-ex105_11.htm

 

Exhibit 10.5

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement, dated as of July 30, 2019, is by and between ALJ Regional Holdings, Inc., a Delaware corporation (the “Corporation”), and each of the investors, severally and not jointly, listed on the Schedule of Purchasers attached hereto as Exhibit A (each of which is herein referred to as a “Purchaser” and collectively as the “Purchasers").

WHEREAS, pursuant to that certain Common Stock Purchase Agreement, dated as of July 30, 2019 (the “Stock Purchase Agreement”), by and between the Corporation and the Purchasers, the Corporation has issued and sold to Purchasers such number of shares of the Corporation’s common stock, par value $0.01 per share (the “Common Stock”) and warrants to purchase (the “Warrants”) such number of shares of Common Stock, each as set forth on Exhibit A to the Stock Purchase Agreement; and

WHEREAS, pursuant to the Stock Purchase Agreement, the Corporation wishes to grant certain registration rights with respect to such shares of Common Stock sold to the Purchasers or issuable pursuant to the exercise of the Warrants on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows:

1.Definitions.

(a)Unless otherwise defined herein, the terms below shall have the following meanings (such meanings being equally applicable to both the singular and plural form of the terms defined):

“Affiliate” shall mean, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such specified Person.

“Agreement” shall mean this Registration Rights Agreement, including all amendments, modifications and supplements and any exhibits or schedules to any of the foregoing.

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks are required or permitted by law to be closed in the City of New York in the State of New York.

“Control” (including the terms “Controlled by” and “under common Control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, as trustee or executor, by contract or otherwise, including, without limitation, the ownership, directly or indirectly, of securities having the power to elect a majority of the board of directors or similar body governing the affairs of such Person.

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“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and all rules and regulations promulgated thereunder.

“Holder” shall mean a Purchaser, and any transferee of such Purchaser to whom Registrable Securities are permitted to be transferred in accordance with the terms of this Agreement, and, in each case, who continues to be entitled to the rights of a Holder hereunder.

“Person” shall mean any individual, corporation, partnership, joint venture, firm, trust, unincorporated organization, government or any agency or political subdivision thereof or other entity.

“Registrable Securities” shall mean (a) the shares of Common Stock issued pursuant to the Stock Purchase Agreement and held by a Holder, (b) the shares of Common Stock issuable upon any exercise of the Warrants and (c) any Securities issuable or issued or distributed in respect of any of the Common Stock identified in clause (a) or (b) by way of stock dividend or stock split or in connection with a combination of shares, recapitalization, reorganization, merger, consolidation or otherwise.  For purposes of this Agreement, (i) Registrable Securities shall cease to be Registrable Securities when a Shelf Registration Statement covering the  Registrable Securities has been declared effective under the Securities Act by the SEC and the Registrable Securities have been disposed of pursuant to such effective Shelf Registration Statement and (ii) the Registrable Securities of a Holder shall not be deemed to be Registrable Securities at any time when such Registrable Securities, in the opinion of counsel satisfactory to the Corporation and such Holder, each in their reasonable judgment, may be distributed to the public pursuant to Rule 144 (or any successor provision then in effect) under the Securities Act (which, for the avoidance of doubt, shall be following the lapse of any applicable holding period under Rule 144 (or any successor provisions then in effect) under the Securities Act) or such Registrable Securities have been sold in a sale made pursuant to Rule 144 of the Securities Act. 

“Securities Act” shall mean the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder.

“SEC” shall mean the Securities and Exchange Commission, or any successor thereto.

(b)The following terms have the meanings set forth in the Section set forth opposite such term:

		
	
Term
	
Section

	
Blackout Period
	
3

	
Common Stock
	
Recitals

	
Damages
	
8(a)

	
Holder Indemnified Party
	
8(a)

	
Indemnified Party
	
8(d)

	
Indemnifying Party
	
8(d)

	
Corporation Indemnified Party
	
8(b)

	
Registration Period
	
4(a)

2

 

 

		
	
Shelf Registration Statement
	
2

	
Stock Purchase Agreement
	
Recitals

	
 
	
 

	
 
	
 

Demand Registration.

  At any time after the date of this Agreement, any Holder of at least 250,000 Registrable Securities may request the Company file with the SEC and use its reasonable best efforts to cause to be declared effective, a registration statement registering the resale from time to time by Holders thereof of all of the Registrable Securities (the “Shelf Registration Statement”). The Shelf Registration Statement shall be on Form S-3 or another appropriate form permitting registration of such Registrable Securities for resale by such Holders and any disposition of the Registrable Securities shall be made in accordance with the methods of distribution set forth in the Shelf Registration Statement, provided, that in no event will such method(s) of distribution take the form of an underwritten offering of the Registrable Securities.

Blackout Periods.

 

 The Corporation shall have the right to delay the filing or  effectiveness of the Shelf Registration Statement required pursuant to Section 2 hereof during no more than two (2) periods aggregating to not more than 90 days (a “Blackout Period”) in the event that (i) the Corporation would, in accordance with the advice of its counsel, be required to disclose in the prospectus information that the Corporation has a bona fide business purpose for preserving as confidential and (ii) in the good faith judgment of the Corporation’s Board of Directors, there is a reasonable likelihood that such disclosure or any other action to be taken in connection with the prospectus, would materially and adversely affect or interfere with any financing, acquisition, merger, disposition of assets (not in the ordinary course of business), corporate reorganization or other similar transaction in which the Corporation is engaged or in respect of which the Corporation has taken a substantial step to commence, or there is an event or state of facts relating to the Corporation which is material to the Corporation, the disclosure of which would, in the good faith judgment of the Corporation be adverse to its interests; provided, however, that the Corporation shall delay during such Blackout Period the filing or effectiveness of any Shelf Registration Statement required pursuant to the registration rights of the holders of any Securities of the Corporation.  The Corporation shall have no obligation to include in any such notice any reference to or description of the facts based upon which the Corporation is delivering such notice.

Registration Procedures.

    If the Corporation is required by the provisions of Section 2 to use its reasonable best efforts to effect the registration of the Registrable Securities under the Securities Act, the Corporation will, as expeditiously as possible:

(a)prepare and file with the SEC a Shelf Registration Statement with respect to the Registrable Securities and use its reasonable best efforts to cause such Shelf Registration Statement promptly to become and remain effective for a period of time required for the disposition of the Registrable Securities by the Holders thereof but not to exceed 180 days (as such time period may be extended pursuant to Section 4(j), the “Registration Period”); provided, however, that before filing such Shelf Registration Statement or any amendments thereto (for purposes of this subsection, amendments shall not be deemed to include any filing that the Corporation is required to make pursuant to the Exchange Act), the Corporation shall furnish the representatives of the Holders referred to in Section 4(k) copies of all documents proposed to be 

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filed, which documents will be subject to the review of such counsel. The Corporation shall not be deemed to have used its reasonable best efforts to keep a Shelf Registration Statement effective during the applicable period if it voluntarily takes any action that would result in the Holders of the Registrable Securities not being able to sell the Registrable Securities during that period, unless such action is required under applicable law;

(b)prepare and file with the SEC such amendments and supplements to such Shelf Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Shelf Registration Statement effective and to comply with the provisions of the Securities Act with respect to the sale or other disposition of the Registrable Securities until the earlier of such time as all Registrable Securities have been disposed of in a public offering or the expiration of the Registration Period;

(c)furnish to the selling Holders such number of conformed copies of the Shelf Registration Statement and each such amendment and supplement thereto (including in each case all exhibits, financial statements and schedules), and of a summary prospectus or other prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents, as such selling Holders may reasonably request;

(d)use its reasonable best efforts to register or qualify the Registrable Securities covered by such Shelf Registration Statement under such other securities or blue sky laws of such jurisdictions within the United States and Puerto Rico as each Holder of such Registrable Securities shall reasonably request, to keep such registration or qualification in effect for so long as such Shelf Registration Statement remains in effect, and to take any other action which may be reasonably necessary to enable such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such Holder (provided, however, that the Corporation shall not be required in connection therewith or as a condition thereto to qualify to do business, subject itself to taxation in or file a general consent to service of process in any jurisdiction wherein it would not but for the requirements of this paragraph (d) be obligated to do so; and provided, further, that the Corporation shall not be required to qualify the Registrable Securities in any jurisdiction in which the securities regulatory authority requires that any Holder submit any shares of its Registrable Securities to the terms, provisions and restrictions of any escrow, lockup or similar agreement(s) for consent to sell Registrable Securities in such jurisdiction unless such Holder agrees to do so), and do such other reasonable acts and things as may be required of it to enable such Holder to consummate the disposition in such jurisdiction of the Registrable Securities covered by such Shelf Registration Statement;

(e)enter into customary agreements and take such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable Securities;

(f)otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the SEC, and make earnings statements satisfying the provisions of Section 11(a) of the Securities Act generally available to the Holders no later than 45 days after the end of any twelve-month period (or 90 days, if such period is a fiscal year), beginning with the first month of the Corporation’s first fiscal quarter commencing after the effective date of the Shelf Registration Statement, which statements shall cover said twelve-month periods;

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(g)use its reasonable best efforts to cause all Registrable Securities to be listed on each securities exchange or quotation system on which similar securities issued by the Corporation are listed or traded;

(h)give written notice to the Holders:

(i)when such Shelf Registration Statement or any amendment thereto has been filed with the SEC and when such Shelf Registration Statement or any post-effective amendment thereto has become effective;

(ii)of any request by the SEC for amendments or supplements to such Shelf Registration Statement or the prospectus included therein or for additional information;

(iii)of the issuance by the SEC of any stop order suspending the effectiveness of such Shelf Registration Statement or the initiation of any proceedings for that purpose;

(iv)of the receipt by the Corporation or its legal counsel of any notification with respect to the suspension of the qualification of the Common Stock for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and

(v)of the happening of any event that requires the Corporation to make changes in such Shelf Registration Statement or the prospectus in order to make the statements therein not misleading (which notice shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made);

(i)use its reasonable best efforts to prevent the issuance or obtain the withdrawal of any order suspending the effectiveness of such Shelf Registration Statement at the earliest possible time;

(j)upon the occurrence of any event contemplated by Section 4(h)(v) above, promptly prepare a post-effective amendment to such Shelf Registration Statement or a supplement to the related prospectus or file any other required document so that, as thereafter delivered to the Holders, the prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.  If the Corporation notifies the Holders in accordance with Section 4(h)(v) above to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Holders shall suspend use of such prospectus and use their commercially reasonable efforts to return to the Corporation all copies of such prospectus other than permanent file copies then in such Holder’s possession, and the period of effectiveness of such Shelf Registration Statement provided for above shall be extended by the number of days from and including the date of the giving of such notice to the date Holders shall have received such amended or supplemented prospectus pursuant to this Section 4(j);

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(k)promptly make available for inspection by the representatives of the Holders and any attorney, accountant or other agent retained by such Holder or representative all relevant financial and other records, pertinent corporate documents and properties of the Corporation as the Holder may reasonably request and cause the Corporation’s officers, directors and employees to supply all relevant information reasonably requested by such representative or attorney, accountant or agent in connection with the registration; and

(l)use reasonable best efforts to procure the cooperation of the Corporation’s transfer agent in settling any offering or sale of Registrable Securities, including with respect to the transfer of physical stock certificates into book-entry form in accordance with any procedures reasonably requested by the Holders and providing any legal opinions required by the transfer agent in connection with such settlement.

Furnish Information.

  It shall be a condition precedent to the obligation of the Corporation to take any action pursuant to this Agreement in respect of the Registrable Securities which are to be registered that such Holder shall furnish to the Corporation such information regarding the Registrable Securities held by such Holder and the intended method of disposition thereof as the Corporation shall reasonably request and as shall be required to effect the registration of such Holder’s Registrable Securities.

Expenses.

  All expenses incurred in connection with the Shelf Registration Statement pursuant to Section 2 of this Agreement, including without limitation all registration, filing and qualification fees, word processing, duplicating, printers’ and accounting fees (including the expenses of any special audits or “comfort” letters required by or incident to such performance and compliance), fees of the Financial Industry Regulatory Authority, Inc. or listing fees, messenger and delivery expenses, all fees and expenses of complying with state securities or blue sky laws and fees and disbursements of counsel for the Corporation shall be paid by the Corporation, except that:

(a)all such expenses in connection with any amendment or supplement to a Shelf Registration Statement or Prospectus requested by a Holder and filed after the Registration Period because such Holder has not effected the disposition of the Registrable Securities shall be paid by such Holder; and

(b)the Holders shall bear and pay any fees and expenses incurred in respect of counsel or other advisors to the Holders.

Rule 144 Information.

  With a view to making available the benefits of Rule 144 under the Securities Act and any other rules and regulations of the SEC that may at any time permit the sale of the Registrable Securities to the public without registration, the Corporation agrees to:

(a)make and keep adequate current public information available, as those terms are understood and defined in Rule 144 under the Securities Act;

(b)file with the SEC in a timely manner all reports and other documents (i) required of the Corporation under the Securities Act and the Exchange Act, for so long as the Corporation remains subject to such requirements, and (ii) required for sales under Rule 144;

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(c)submit electronically and post on its corporate website, if any, every interactive data file required to be submitted and posted pursuant to Rule 405 of Regulation S-T; and

(d)furnish promptly to each Holder of Registrable Securities upon request (i) to the extent accurate, a written statement by the Corporation that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act and (ii) such other information as may be reasonably requested to permit such Holder to sell Registrable Securities pursuant to Rule 144 without registration.

8.Indemnification and Contribution.

(a)The Corporation shall indemnify and hold harmless each Holder, such Holder’s  directors and officers, employees, agents, general partner, limited partner, stockholder, investment manager and each Person who participates in any offering of the Registrable Securities and each Person, if any, who Controls such Holder or participating Person (each a “Holder Indemnified Party”), against any losses, claims, damages or liabilities, joint or several, to which they may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or proceedings in respect thereof) arise out of or are based upon: (i) any untrue or alleged untrue statement of any material fact contained in the Shelf Registration Statement on the effective date thereof (including any prospectus filed under Rule 424 under the Securities Act or any amendments or supplements thereto) or (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (such losses, claims, damages and liabilities, “Damages”) and the Corporation shall reimburse each Holder Indemnified Party for any legal or other expenses reasonably incurred by such Holder Indemnified Party  in connection with investigating or defending any claim or proceeding from which Damages may result; provided, however, that the indemnity agreement contained in this Section 8(a) shall not apply to amounts paid in settlement of any such Damages if such settlement is effected without the consent of the Corporation (which consent shall not be unreasonably withheld); provided, further, that the Corporation shall not be liable to any Holder Indemnified Party for any Damages to the extent that such Damages arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in connection with the Shelf Registration Statement, preliminary or final prospectus, or amendments or supplements thereto in reliance upon and in conformity with written information furnished by or on behalf of a Holder Indemnified Party expressly for use in connection with such registration by any such Holder Indemnified Party.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any Holder Indemnified Party.

(b)Each Holder severally and not jointly shall indemnify and hold harmless the Corporation, each of its directors and officers, each Person, if any, who Controls the Corporation, and each agent for the Corporation (within the meaning of the Securities Act) (each, a “Corporation Indemnified Party”) against any Damages, joint or several, to which a Corporation Indemnified Party may become subject, under the Securities Act or otherwise, insofar as such Damages (or proceedings in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained in the Shelf Registration Statement  on the effective date thereof (including any prospectus filed under Rule 

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424 under the Securities Act or any amendments or supplements thereto) or (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Shelf Registration Statement, preliminary or final prospectus, or amendments or supplements thereto, in reliance upon and in conformity with written information furnished by or on behalf of such Holder expressly for use in connection with such registration; and each such Holder shall reimburse each Corporation Indemnified Party for any legal or other expenses reasonably incurred by such Corporation Indemnified Party (but not in excess of expenses incurred in respect of one counsel for all of the Corporation Indemnified Parties unless there is an actual conflict of interest between any Corporation Indemnified Parties, which Corporation Indemnified Parties may be represented by separate counsel) in connection with investigating or defending any claim or proceeding from which Damages may result; provided, however, that the indemnity agreement contained in this Section 8(b) shall not apply to amounts paid in settlement of any such Damages if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld), and provided further, that the liability of each Holder hereunder shall be limited to the proportion of any such loss, claim, damage, liability or expense which is equal to the proportion that the net proceeds from the sale of the Registrable Securities sold by such Holder under the Shelf Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by the Shelf Registration Statement.

(c)If the indemnification provided for in this Section 8 from an indemnifying party is unavailable to an indemnified party hereunder in respect of any Damages referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Damages in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified parties in connection with the actions which resulted in such Damages, as well as any other relevant equitable considerations.  The relative fault of such indemnifying party and indemnified parties shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified parties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action; provided, however, that, in any such case no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The amount paid or payable by a party as a result of the Damages referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. If the allocation provided in this paragraph (c) is not permitted by applicable law, the parties shall contribute based upon the relevant benefits received by the Corporation from the initial offering of the Registrable Securities on the one hand and the net proceeds received by the Holders from the sale of Registrable Securities on the other.  The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7(c) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 7(c).

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(d)Any Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give prompt written notice to the party owing indemnification obligations to such Person (the “Indemnifying Party”) after the receipt by the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided, that the failure so to notify the Indemnifying Party shall not relieve the Indemnifying Party of any liability that it may have to the Indemnified Party hereunder unless such failure is materially prejudicial to the Indemnifying Party.  If notice of commencement of any such action is given to the Indemnifying Party as above provided, the Indemnifying Party shall be entitled to participate in and, to the extent it may wish, to assume the defense of such action at its own expense, with counsel chosen by it and reasonably satisfactory to such Indemnified Party.  The Indemnified Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be paid by the Indemnified Party unless (i) the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action, or (iii) the named parties to any such action (including any impleaded parties) have been advised by such counsel that either (A) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (B) there are one or more legal defenses available to it which are substantially different from or additional to those available to the Indemnifying Party.  No Indemnifying Party shall be liable for any settlement entered into without its written consent, which consent shall not be unreasonably withheld.

(e)The agreements contained in this Section 8 shall survive the transfer of the Registrable Securities by any Holder and sale of all of the Registrable Securities pursuant to the Shelf Registration Statement and shall otherwise survive the termination of this Agreement and remain in full force and effect, regardless of any investigation made by or on behalf of any Holder or such director, officer or participating or Controlling Person.

Certain Additional Limitations on Registration Rights.

  Notwithstanding the other provisions of this Agreement, the Corporation shall not be obligated to register the Registrable Securities of any Holder if such Holder shall fail to furnish to the Corporation necessary information in respect of the distribution of the Registrable Securities. 

No Inconsistent Agreements.

  The Corporation will not hereafter enter into any agreement with respect to its securities, which is inconsistent in any material respects with the rights granted to the Holders in this Agreement.

11.Miscellaneous.

(a)Specific Performance.  The parties hereto agree that irreparable damage would occur in the event any provision of the Agreement was not performed in accordance with the terms hereof and that the parties hereto shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law or in equity.

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(b)Amendments and Waivers; Assignment.  

(i)Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the Corporation and each Holder party hereto or, in the case of a waiver, by the party or parties against whom the waiver is to be effective; provided, however, that waiver by the Holders shall require the consent of a majority in interest of the Holders.

(ii)No failure or delay by any party in exercising any right, power or privilege hereunder (other than a failure or delay beyond a period of time specified herein) shall operate as a waiver thereof and no single or partial exercise thereof shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

(c)Notice Generally.  All notices, request, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by courier service, by fax or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified by notice given in accordance with this Section 11(c):

(i)If to any Holder, at its last known address appearing on the books of the Corporation maintained for such purpose.

(ii)If to the Corporation, at

ALJ Regional Holdings, Inc.

Attn: Executive Chairman

244 Madison Avenue

PMB #358 

New York, New York 10016

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

Shearman & Sterling LLP
1460 El Camino Real, Floor 2

Menlo Park, CA 94025
Attn:  Chris Forrester
Email: chris.forrester@shearman.com
Facsimile No.: 650-838-5173

or at such other address as may be substituted by notice given as herein provided.

(d)Successors and Assigns; Third Party Beneficiaries.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and the successors and permitted assigns of the parties hereto as hereinafter provided.  No party hereto may assign either this 

10

 

 

Agreement or any of its rights, interests or obligations hereunder without the prior written approval of the other party; provided, however, that the registration rights of any Holder with respect to any Registrable Securities shall be transferred to any Person who is the transferee of the Registrable Securities.  All of the obligations of the Corporation hereunder shall survive any such transfer.  No assignment shall relieve the assigning party of any of its obligations hereunder.  Except as provided in Section 8, no Person other than the parties hereto and their respective successors and permitted assigns is intended to be a beneficiary of this Agreement and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever.

(e)Headings.  The headings and subheadings in this Agreement are included for convenience and identification only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision hereof.

(f)Governing Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware.

(i)Any claim, action, suit or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby may be heard and determined in any state or federal court sitting in the State of Delaware, and each of the parties hereto hereby consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom in any such claim, action, suit or proceeding) and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of venue of any such claim, action, suit or proceeding in any such court or that any such claim, action, suit or proceeding that is brought in any such court has been brought in an inconvenient forum.

(ii)Subject to applicable law, process in any such claim, action, suit or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.  Nothing herein shall affect the right of any party to serve legal process in any other manner permitted by law or at equity.  WITH RESPECT TO ANY SUCH CLAIM, ACTION, SUIT OR PROCEEDING IN ANY SUCH COURT, EACH OF THE PARTIES IRREVOCABLY WAIVES AND RELEASES TO THE OTHER ITS RIGHT TO A TRIAL BY JURY, AND AGREES THAT IT WILL NOT SEEK A TRIAL BY JURY IN ANY SUCH PROCEEDING.

(g)Severability.  If any term or other provision of this Agreement is held to be invalid, illegal or incapable of being enforced by any rule of Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions is not affected in any manner materially adverse to any party.  Upon a determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

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(h)Entire Agreement.  This Agreement constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto. 

(i)Cumulative Remedies.  The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive its right to use any or all other remedies.  Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise.

(j)Construction.  Each party hereto acknowledges and agrees it has had the opportunity to draft, review and edit the language of this Agreement and that no presumption for or against any party arising out of drafting all or any part of this Agreement will be applied in any Dispute relating to, in connection with or involving this Agreement.  Accordingly, the parties hereto hereby waive the benefit of any rule of Law or any legal decision that would require, in cases of uncertainty, that the language of a contract should be interpreted most strongly against the party who drafted such language.

(k)Counterparts; Effectiveness.  This Agreement may be signed in any number of counterparts (including by facsimile or PDF), each of which shall be an original with the same effect as if the signatures thereto were upon the same instrument.  This Agreement shall become effective when each party shall have received a counterpart hereof signed by the other party.

[Signatures appear on next page]

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

Jess M Ravich Defined Benefit Pension Plan & Trust DTD 12/27/02

 

By:  /s/ Jess Ravich                         .

Name: Jess Ravich

Title: Trustee

 

 

Libra Securities Holdings, LLC

 

By:  /s/ Jess Ravich                         .

Name: Jess Ravich

Title: CEO

 

 

Pensco Trust Co Custodian FBO William Montgomery ROTH IRA

 

By: /s/ William Montgomery      .

Name: William Montgomery

 

 

Great Elm Opportunities Fund I, LP

 

By:  /s/ Adam Kleinman       .

Name: Adam Kleinman

Title: Authorized Signatory

 

 

Jeffrey Benjamin 2012 Family Trust

 

By: /s/ Claudia Slacik                    .

Name: Claudia Slacik

Title: Trustee

 

 

Hectogon Fund L.P.

 

By: /s/ Daniel Harmetz                .

Name: Daniel Harmetz

Title: Managing GP

 

 

 

13

 

 

General Management Holdings LLC

 

By: /s/ Taylor Harmeling                     .

Name: Taylor Harmeling

Title: Manager

 

 

Anna Mary Van Buren Trust Agreement Dated September 14, 2012

 

By:   /s/ Anna Van Buren           .

Name: Anna Van Buren

Title: Trustee

 

 

David Chih-Wen Wang and Claudia Wang, Trustees of the Wang Family Trust, u/d/o December 31, 2013

 

By:  /s/ David Wang                          .

Name: David Want

Title: Trustee

 

 

Coster Revocable Trust Dated August 18, 2015

 

By: /s/ Michael Coster                             .

Name: Michael Coster

Title: Trustee

 

 

 

14

 

 

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

ALJ Regional Holdings, Inc.

 

 

	
 
	
By:
	
/s/ Brian Hartman
Name: Brian Hartman
Title: CFO

 

15

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