Document:

Exhibit 10.4

 

UNCONDITIONAL GUARANTY

 

This UNCONDITIONAL
GUARANTY (this “Agreement”) is entered into as of December 19, 2018, by B. RILEY FINANCIAL, INC.,
a Delaware corporation (the “Guarantor”), in favor of BANC OF CALIFORNIA, N.A., in its capacity
as administrative agent (in such capacity, the “Administrative Agent”), for the Secured Parties (as defined
in the Credit Agreement, hereinafter defined).

 

For and in consideration
of all extensions of credit, loans and other financial accommodations provided to BRPI Acquisition Co LLC, a Delaware limited liability
company, United Online, Inc., a Delaware corporation, and YMax Corporation, a Delaware corporation (collectively “Borrowers”),
which loans will be made pursuant to a Credit Agreement among Borrowers, the Secured Guarantors party thereto, the Administrative
Agent and the Lenders party thereto, dated of even date herewith (as amended from time to time, and any and all modifications,
extensions or renewals thereof, the “Credit Agreement”), Guarantor hereby unconditionally and irrevocably
guarantees the prompt and complete payment of all amounts Borrowers owe the Secured Parties arising under the Credit Agreement
and the other Loan Documents and Borrowers’ performance of the Credit Agreement and the other Loan Documents according to
their terms. Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to them under
the Credit Agreement.

 

Section
1 – GUARANTEE

 

1.1          
If Borrowers do not perform their obligations under the Loan Documents, Guarantor shall upon demand by Administrative
Agent immediately pay all amounts due thereunder (including, without limitation, all principal, interest and fees) and satisfy
all of Borrowers’ payment obligations under the Loan Documents (“Guarantor Obligations”).

 

1.2          
The obligations hereunder are independent of the obligations of Borrowers, and a separate action or actions may be
brought and prosecuted against Guarantor whether action is brought against Borrowers or whether Borrowers be joined in any such
action or actions. This Agreement is a primary obligation of Guarantor, and not merely the creation of a surety relationship. Guarantor
agrees that it is directly, jointly and severally liable with Borrowers and any other Guarantor (as defined in the Credit Agreement)
or guarantor of the Guarantor Obligations. Guarantor waives the benefit of any statute of limitations affecting its liability hereunder
or the enforcement thereof. Guarantor’s liability under this Agreement is not conditioned or contingent upon the genuineness,
validity, regularity or enforceability of the Loan Documents.

 

1.3          
Guarantor authorizes Administrative Agent, without notice or demand and without affecting its liability hereunder,
from time to time to (a) renew, extend or otherwise change the terms of the Loan Documents or any part thereof, (b) take security
for the payment due under this Agreement or the Loan Documents, (c) exchange, enforce, waive or release any such security, and
(d) apply any security and direct its sale as Administrative Agent, in its discretion, chooses.

 

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1.4          
Guarantor waives any right to require Administrative Agent to (a) proceed against Borrowers, any other guarantor
or any other Person; (b) proceed against or exhaust any security held from Borrowers, any other guarantor or any other Person;
or (c) pursue any other remedy in Administrative Agent’s power whatsoever. Administrative Agent may, at its election, exercise,
decline or fail to exercise, any right or remedy it may have against Borrowers or any security held by Administrative Agent, including
without limitation the right to foreclose upon any such security by judicial or nonjudicial sale, without affecting or impairing
in any way the liability of Guarantor hereunder. Guarantor waives any defense arising by reason of any disability or other defense
of Borrowers or any other guarantor, or by reason of the cessation from any cause whatsoever of the liability of Borrowers or any
other guarantor. Guarantor waives any setoff, defense or counterclaim that Borrowers may have against Administrative Agent, except
for the defense of payment and performance in full of all amounts Borrowers owe to the Secured Parties under the Credit Agreement
and the other Loan Documents. Guarantor waives any defense arising out of the absence, impairment or loss of any right of reimbursement
or subrogation or any other rights against Borrowers. Until all of the amounts that Borrowers owe to the Secured Parties (other
than contingent indemnity obligations for which no claim has been asserted) have been paid in full, (d) Guarantor shall not have
any right of subrogation or reimbursement for claims arising out of or in connection with this Agreement, (e) Guarantor shall not
have any right of contribution or other rights against Borrowers, (f) Guarantor waives any right to enforce any remedy that Administrative
Agent now has or may hereafter have against Borrowers, and (g) Guarantor waives all rights to participate in any security now or
hereafter held by Administrative Agent. Guarantor waives all presentments, demands for performance, notices of nonperformance,
protests, notices of protest, notices of dishonor and notices of acceptance of this Agreement and of the existence, creation or
incurrence of new or additional Indebtedness. Guarantor assumes the responsibility for being and keeping itself informed of the
financial condition of Borrowers and of all other circumstances bearing upon the risk of nonpayment of any Indebtedness or nonperformance
of any obligation of Borrowers, warrants to Administrative Agent that it will keep so informed, and agrees that absent a request
for particular information by Guarantor, Administrative Agent shall have no duty to advise Guarantor of information known to Administrative
Agent regarding such condition or any such circumstances. Guarantor waives the benefits of California Civil Code sections 2809,
2810, 2819, 2845, 2847, 2848, 2849, 2850, 2899 and 3433.

 

1.5          
Guarantor acknowledges that all or any portion of the Obligations may now or hereafter be secured by a Lien or Liens
upon real property owned or leased by Borrowers and evidenced by certain documents including, without limitation, deeds of trust
and assignments of rents. Administrative Agent may, pursuant to the terms of said real property security documents and applicable
law, foreclose under all or any portion of one or more of said Liens by means of judicial or nonjudicial sale or sales. Guarantor
agrees that Administrative Agent may exercise whatever rights and remedies it may have with respect to said real property security,
all without affecting the liability of Guarantor hereunder, except to the extent Administrative Agent realizes payment by such
action or proceeding. No election to proceed in one form of action or against any party, or on any obligation shall constitute
a waiver of Administrative Agent’s right to proceed in any other form of action or against Guarantor or any other Person,
or diminish the liability of Guarantor, or affect the right of Administrative Agent to proceed against Guarantor for any deficiency,
except to the extent Administrative Agent realizes payment by such action, notwithstanding the effect of such action upon Guarantor’s
rights of subrogation, reimbursement or indemnity, if any, against Borrowers, any other guarantor or any other Person. Without
limiting the generality of the foregoing, Guarantor expressly waives all rights, benefits and defenses, if any, applicable or available
to Guarantor under either California Code of Civil Procedure Sections 580a or 726, which provide, among other things, that the
amount of any deficiency judgment which may be recovered following either a judicial or nonjudicial foreclosure sale is limited
to the difference between the amount of any Indebtedness owed and the greater of the fair value of the security or the amount for
which the security was actually sold. Without limiting the generality of the foregoing, Guarantor further expressly waives all
rights, benefits and defenses, if any, applicable or available to Guarantor under either California Code of Civil Procedure Sections
580b, providing that no deficiency may be recovered on a real property purchase money obligation, or 580d, providing that no deficiency
may be recovered on a note secured by a deed of trust on real property if the real property is sold under a power of sale contained
in the deed of trust.

 

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1.6          
If any Borrower becomes insolvent, is adjudicated bankrupt or files a petition for reorganization, arrangement, composition
or similar relief under any present or future provision of the United States Bankruptcy Code or reorganization or insolvency laws
of any applicable jurisdiction, or if such a petition is filed against any Borrower, and in any such proceeding some or all of
any Indebtedness or obligations under the Credit Agreement are terminated or rejected or any obligation of Borrowers is modified
or abrogated, or if Borrowers’ obligations are otherwise avoided for any reason, Guarantor agrees that Guarantor’s
liability hereunder shall not thereby be affected or modified and such liability shall continue in full force and effect as if
no such action or proceeding had occurred. This Agreement shall continue to be effective or be reinstated, as the case may be,
if any payment must be returned by Administrative Agent upon the insolvency, bankruptcy or reorganization of any Borrower, Guarantor
or any other guarantor or otherwise, as though such payment had not been made.

 

1.7          
Any Indebtedness of any Borrower now or hereafter held by Guarantor is hereby subordinated to any Indebtedness of
Borrowers to the Secured Parties; and such Indebtedness of such Borrower to Guarantor shall be collected, enforced and received
by Guarantor as trustee for Administrative Agent and be paid over to Administrative Agent on account of the Indebtedness of Borrowers
to Administrative Agent but without reducing or affecting in any manner the liability of Guarantor under the other provisions of
this Agreement.

 

Section
2 – [INTENTIONALLY OMITTED]

 

Section
3 – [INTENTIONALLY OMITTED]

 

Section
4 – REPRESENTATIONS AND WARRANTIES

 

4.1          
Guarantor hereby represents and warrants to Administrative Agent that:

 

(a)            
the execution, delivery and performance by Guarantor of this Agreement (i) does not contravene any Law or any contractual
restriction binding on or affecting Guarantor or by which Guarantor’s property may be affected; and (ii) does not require
any authorization or approval or other action by, or any notice to or filing with, any Governmental Authority or any other Person
under any indenture, mortgage, deed of trust, lease, agreement or other instrument to which Guarantor is a party or by which Guarantor
or any of its property is bound, except such as have been obtained, made or waived.

 

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(b)           
Guarantor has the corporate power to execute, deliver and perform this Agreement and the execution, delivery and
performance of this Agreement has been duly authorized by all requisite action;

 

(c)            
this Agreement is a valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with its
terms, except as the enforceability thereof may be subject to or limited by bankruptcy, insolvency, reorganization, arrangement,
moratorium or other similar laws relating to or affecting the rights of creditors generally;

 

(d)           
there is no action, suit or proceeding affecting Guarantor pending or threatened before any court, arbitrator, or
Governmental Authority, domestic or foreign, which may have a material adverse effect on the ability of Guarantor to perform its
obligations under this Agreement;

 

(e)            
Guarantor’s obligations hereunder are not subject to any offset or defense against Administrative Agent or
Borrowers of any kind;

 

(f)            
Guarantor has established adequate means of obtaining from sources other than Administrative Agent and Lenders, on
a continuing basis, financial and other information pertaining to each Borrower’s and each other Loan Party’s, financial
condition and the status of Borrowers’ performance of Obligations imposed by the Loan Documents, and Guarantor agrees to
keep adequately informed from such means of any facts, events or circumstances which might in any way affect Guarantor’s
risks hereunder and neither Administrative Agent nor Lenders have made any representation to Guarantor as to any such matters;

 

(g)           
after the incurrence of Guarantor’s obligations under this Agreement, the fair salable value of Guarantor’s
assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; Guarantor is not left with unreasonably
small capital after the transactions in this Agreement or the other Loan Documents; and Guarantor is able to pay its debts (including
trade debts) as they mature; and

 

(h)           
all representations and warranties contained in this Agreement are true at the time of Guarantor’s execution
of this Agreement, and shall continue to be true until Guarantor’s obligations hereunder have been paid and performed in
full. Guarantor expressly agrees that any misrepresentation or breach of any warranty whatsoever contained in this Agreement shall
be deemed material.

 

Section
5 – [INTENTIONALLY OMITTED]

 

Section
6 – [INTENTIONALLY OMITTED]

 

Section
7 – MISCELLANEOUS

 

7.1          
Guarantors agree to pay reasonable and documented out-of-pocket attorneys’ fees and all other reasonable and
documented out-of-pocket costs and expenses which may be incurred by Administrative Agent in the enforcement of this Agreement.
No terms or provisions of this Agreement may be changed, waived, revoked or amended without Administrative Agent’s and Guarantor’s
prior written consent. Should any provision of this Agreement be determined by a court of competent jurisdiction to be unenforceable,
all of the other provisions shall remain effective. This Agreement embodies the entire agreement between the parties hereto with
respect to the matters set forth herein, and supersedes all prior agreements among the parties with respect to the matters set
forth herein. No course of prior dealing among the parties, no usage of trade, and no parol or extrinsic evidence of any nature
shall be used to supplement, modify or vary any of the terms hereof. Administrative Agent may assign this Agreement in connection
with any assignment of such role under the Credit Agreement without in any way affecting Guarantors’ liability under it.
This Agreement shall inure to the benefit of Administrative Agent and its successors and assigns. This Agreement is in addition
to the guaranties of any other guarantors of the Obligations.

 

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7.2          
THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE)
BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA.

 

7.3          
GUARANTOR IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF
ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT,
ANY SECURED PARTY OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR THE TRANSACTIONS RELATING HERETO,
IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF CALIFORNIA SITTING IN THE COUNTY OF LOS ANGELES AND OF THE UNITED STATES DISTRICT
COURT OF THE SOUTHERN DISTRICT OF CALIFORNIA, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY
AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH CALIFORNIA STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL
BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING
IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT AGAINST GUARANTOR IN THE COURTS OF ANY JURISDICTION.

 

7.4          
GUARANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION
THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
IN ANY COURT REFERRED TO IN SECTION 7.3. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

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7.5          
EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 7.8
BELOW. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE
LAW.

 

7.6          
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (a) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (b) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

IN THE EVENT ANY LEGAL
PROCEEDING IS FILED IN A COURT OF THE STATE OF CALIFORNIA (THE “COURT”) BY OR AGAINST ANY PARTY HERETO IN CONNECTION
WITH ANY CLAIM AND THE WAIVER SET FORTH ABOVE IS NOT ENFORCEABLE IN SUCH PROCEEDING, THE PARTIES HERETO AGREE AS FOLLOWS:

 

WITH THE EXCEPTION
OF THE MATTERS SPECIFIED IN THE IMMEDIATELY SUCCEEDING PARAGRAPH BELOW, ANY CLAIM SHALL BE DETERMINED BY A GENERAL REFERENCE PROCEEDING
IN ACCORDANCE WITH THE PROVISIONS OF CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 638 THROUGH 645.1. THE PARTIES INTEND THIS GENERAL
REFERENCE AGREEMENT TO BE SPECIFICALLY ENFORCEABLE. VENUE FOR THE REFERENCE PROCEEDING SHALL BE IN THE COUNTY OF LOS ANGELES, CALIFORNIA.

 

THE FOLLOWING MATTERS
SHALL NOT BE SUBJECT TO A GENERAL REFERENCE PROCEEDING: (A) NON-JUDICIAL FORECLOSURE OF ANY SECURITY INTERESTS IN REAL OR PERSONAL
PROPERTY, (B) EXERCISE OF SELF-HELP REMEDIES (INCLUDING SET-OFF OR RECOUPMENT), (C) APPOINTMENT OF A RECEIVER, AND (D) TEMPORARY,
PROVISIONAL, OR ANCILLARY REMEDIES (INCLUDING WRITS OF ATTACHMENT, WRITS OF POSSESSION, TEMPORARY RESTRAINING ORDERS, OR PRELIMINARY
INJUNCTIONS). THIS AGREEMENT DOES NOT LIMIT THE RIGHT OF ANY PARTY TO EXERCISE OR OPPOSE ANY OF THE RIGHTS AND REMEDIES DESCRIBED
IN CLAUSES (A) - (D) AND ANY SUCH EXERCISE OR OPPOSITION DOES NOT WAIVE THE RIGHT OF ANY PARTY TO PARTICIPATE IN A REFERENCE PROCEEDING
PURSUANT TO THIS AGREEMENT WITH RESPECT TO ANY OTHER MATTER.

 

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UPON THE WRITTEN REQUEST
OF ANY PARTY, THE PARTIES SHALL SELECT A SINGLE REFEREE, WHO SHALL BE A RETIRED JUDGE OR JUSTICE. IF THE PARTIES DO NOT AGREE UPON
A REFEREE WITHIN 10 DAYS OF SUCH WRITTEN REQUEST, THEN, ANY PARTY SHALL HAVE THE RIGHT TO REQUEST THE COURT TO APPOINT A REFEREE
PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 640(B). THE REFEREE SHALL BE APPOINTED TO SIT WITH ALL OF THE POWERS PROVIDED
BY LAW. PENDING APPOINTMENT OF THE REFEREE, THE COURT SHALL HAVE THE POWER TO ISSUE TEMPORARY OR PROVISIONAL REMEDIES.

 

EXCEPT AS EXPRESSLY
SET FORTH IN THIS AGREEMENT, THE REFEREE SHALL DETERMINE THE MANNER IN WHICH THE REFERENCE PROCEEDING IS CONDUCTED INCLUDING THE
TIME AND PLACE OF HEARINGS, THE ORDER OF PRESENTATION OF EVIDENCE, AND ALL OTHER QUESTIONS THAT ARISE WITH RESPECT TO THE COURSE
OF THE REFERENCE PROCEEDING. ALL PROCEEDINGS AND HEARINGS CONDUCTED BEFORE THE REFEREE, EXCEPT FOR TRIAL, SHALL BE CONDUCTED WITHOUT
A COURT REPORTER, EXCEPT WHEN ANY PARTY SO REQUESTS A COURT REPORTER AND A TRANSCRIPT IS ORDERED, A COURT REPORTER SHALL BE USED
AND THE REFEREE SHALL BE PROVIDED A COURTESY COPY OF THE TRANSCRIPT. THE PARTY MAKING SUCH REQUEST SHALL HAVE THE OBLIGATION TO
ARRANGE FOR AND PAY THE COSTS OF THE COURT REPORTER, PROVIDED THAT SUCH COSTS, ALONG WITH THE REFEREE’S FEES, SHALL ULTIMATELY
BE BORNE BY THE PARTY WHO DOES NOT PREVAIL, AS DETERMINED BY THE REFEREE.

 

THE REFEREE MAY REQUIRE
ONE OR MORE PREHEARING CONFERENCES. THE PARTIES HERETO SHALL BE ENTITLED TO DISCOVERY, AND THE REFEREE SHALL OVERSEE DISCOVERY
IN ACCORDANCE WITH THE RULES OF DISCOVERY, AND SHALL ENFORCE ALL DISCOVERY ORDERS IN THE SAME MANNER AS ANY TRIAL COURT JUDGE IN
PROCEEDINGS AT LAW IN THE STATE OF CALIFORNIA.

 

THE REFEREE SHALL APPLY
THE RULES OF EVIDENCE APPLICABLE TO PROCEEDINGS AT LAW IN THE STATE OF CALIFORNIA AND SHALL DETERMINE ALL ISSUES IN ACCORDANCE
WITH CALIFORNIA SUBSTANTIVE AND PROCEDURAL LAW. THE REFEREE SHALL BE EMPOWERED TO ENTER EQUITABLE AS WELL AS LEGAL RELIEF AND RULE
ON ANY MOTION WHICH WOULD BE AUTHORIZED IN A TRIAL, INCLUDING MOTIONS FOR DEFAULT JUDGMENT OR SUMMARY JUDGMENT. THE REFEREE SHALL
REPORT HIS OR HER DECISION, WHICH REPORT SHALL ALSO INCLUDE FINDINGS OF FACT AND CONCLUSIONS OF LAW. THE REFEREE SHALL ISSUE A
DECISION AND PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE, SECTION 644, THE REFEREE’S DECISION SHALL BE ENTERED BY THE
COURT AS A JUDGMENT IN THE SAME MANNER AS IF THE ACTION HAD BEEN TRIED BY THE COURT. THE FINAL JUDGMENT OR ORDER FROM ANY APPEALABLE
DECISION OR ORDER ENTERED BY THE REFEREE SHALL BE FULLY APPEALABLE AS IF IT HAS BEEN ENTERED BY THE COURT.

 

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THE PARTIES RECOGNIZE
AND AGREE THAT ALL CLAIMS RESOLVED IN A GENERAL REFERENCE PROCEEDING PURSUANT HERETO WILL BE DECIDED BY A REFEREE AND NOT BY A
JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR OWN CHOICE, EACH PARTY HERETO KNOWINGLY
AND VOLUNTARILY AND FOR THEIR MUTUAL BENEFIT AGREES THAT THIS REFERENCE PROVISION SHALL APPLY TO ANY DISPUTE BETWEEN THEM THAT
ARISES OUT OF OR IS RELATED TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.

 

7.7          
This Agreement may be executed in counterpart signature pages, all of which taken together shall be deemed to be
one original of this instrument. Delivery of an executed counterpart to this Agreement by facsimile or electronic mail shall be
effective as a manually executed counterpart to this Agreement.

 

7.8          
All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by fax transmission or e-mail transmission. Notices and other communications
sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received;
notices and other communications sent by fax transmission or e-mail transmission shall be deemed to have been given when sent (except
that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business
on the next Business Day for the recipient).

 

 

[Signatures on following page.]

 

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IN WITNESS WHEREOF,
the undersigned have executed this Unconditional Guaranty as of the day first set forth above.

 

	 	B. RILEY FINANCIAL, INC.,
	 	a Delaware corporation
	 	 	 	 
	 	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 	 	 
	 	Guarantor’s Address for Notices:
	 	 
	 	B. Riley Financial, Inc.
	 	21255 Burbank Blvd., Suite 400
	 	Woodland Hills, CA 91367
	 	Attn: Phillip Ahn

 

(Unconditional
Guaranty)EX-10.3

 Exhibit 10.3 

MERUS N.V. 

NON-EXECUTIVE DIRECTOR COMPENSATION
PROGRAM 
 The non-executive directors (the “Non-Executive Directors” and each, a “Non-Executive Director”) of Merus N.V. (the “Company”) shall receive cash
and equity compensation as set forth in this Non-Executive Director Compensation Program (this “Program”). The compensation described in this Program shall be paid or be made, as
applicable, automatically and without further action of the Board of Directors (the “Board”) or the general meeting of shareholders (the “General Meeting”) of the Company, to each Non-Executive Director who is entitled to receive such cash or equity compensation, unless such Non-Executive Director declines the receipt of such cash or equity compensation
by written notice to the Company. This Program shall remain in effect until it is revised or rescinded by further action taken by the Board at the recommendation of the Compensation Committee. This Program may be amended, modified or terminated at
any time by action taken by the Board at the recommendation of the Compensation Committee. Except as otherwise provided in this Program with respect to Observers (as defined below), the terms and conditions of this Program shall supersede any prior
cash and/or equity compensation arrangements for service as a Non-Executive Director (or as a supervisory director) between the Company and any of its Non-Executive
Directors. 
 Time spent in office and service as a supervisory director of the Company prior to the amendment to the articles of
association of the Company on May 29, 2017 shall, for purposes of this Program, be considered to be time spent in office and service as Non-Executive Director. 

I.    CASH COMPENSATION 

A.    Annual Retainers. Each Non-Executive Director shall receive an annual
retainer of $35,000 for service on the Board. 
 B.     Additional Annual Retainers. In addition, each Non-Executive Director shall receive the following annual retainers: 
 1.
    Chairperson of the Board. A Non-Executive Director serving as Chairperson of the Board shall receive an additional annual retainer of $50,000 for such service. 

2.     Audit Committee. A Non-Executive Director serving as Chairperson of
the Audit Committee shall receive an additional annual retainer of $15,000 for such service. A Non-Executive Director serving as a member other than the Chairperson of the Audit Committee shall receive an
additional annual retainer of $7,500 for such service. 
 3.     Compensation Committee. A Non-Executive Director serving as Chairperson of the Compensation Committee shall receive an additional annual retainer of $13,000 for such service. A Non-Executive Director
serving as a member other than the Chairperson of the Compensation Committee shall receive an additional annual retainer of $5,000 for such service. 

4.     Nomination and Corporate Governance Committee. A Non-Executive
Director serving as Chairperson of the Nomination and Corporate Governance 

 
Committee shall receive an additional annual retainer of $13,000 for such service. A Non-Executive Director serving as a member other than the Chairperson
of the Nomination and Corporate Governance Committee shall receive an additional annual retainer of $3,750 for such service. 

C.     Payment of Retainers. The annual retainers described in Sections I(A) and I(B) shall be earned on a
quarterly basis based on a calendar quarter and shall be paid in cash by the Company in arrears not later than the fifteenth day following the end of each calendar quarter. In the event a Non-Executive
Director does not serve as a Non-Executive Director, or in the applicable positions described in Section I(B), for an entire calendar quarter, the retainer paid to such
Non-Executive Director shall be prorated for the portion of such calendar quarter actually served as a Non-Executive Director, or in such position, as applicable. 

D.     Annual Increase. Each annual retainer described in Sections I(A) and I(B) shall, without further action
taken by the Board or the General Meeting, automatically increase on the first day of each calendar year by an amount equal to 3% of the value of such annual retainer in effect as of the immediately preceding calendar year. 

E.     Observers. Unless the Board decides otherwise, the date service as an observer on the Board (an
“Observer”) commences pursuant to, and as from the effective date of, a written services agreement entered into between such Observer and the Company shall be considered the effective date of commencing service as a Non-Executive Director for purposes of Section I. 
 II.    EQUITY
COMPENSATION 
 Non-Executive Directors shall be eligible to be granted the equity
awards described below. The awards described below shall be granted under and shall be subject to the terms and provisions of the Company’s 2016 Incentive Award Plan or any other applicable Company equity incentive plan then-maintained by the
Company (the “Equity Plan”), shall be granted by the Board, and subject to such award or other agreements as approved by the Board. Subject to Section II(G), all applicable terms of the Equity Plan apply to this Program as if
fully set forth herein, and all grants of stock options hereby are subject in all respects to the terms of the Equity Plan and the applicable award agreement. 

A.    Initial Awards. Each Non-Executive Director who is initially
appointed to the Board shall be eligible to receive an option to purchase the number of common shares of the Company having an aggregate Grant Date Fair Value (as defined below) of $200,000, with any partial shares that result being rounded down to
the nearest whole share. The awards described in this Section II(A) shall be referred to as “Initial Awards.” No Non-Executive Director shall be granted more than one Initial Award.
“Grant Date Fair Value” shall mean the value of the option as of the date of grant, which value shall be determined using a Black-Scholes option pricing model and the valuation assumptions used by the Company in accounting
for options as of such date; provided, that the fair market value of the common shares of the Company used in such calculation shall be based on the average trading price of the common shares of the Company over the preceding thirty day period.
Unless otherwise determined by the Board, 

 
options to purchase common shares granted to an Observer while serving, or upon commencing service, as an Observer shall be considered an Initial Award under this Program. 

B.     Subsequent Awards. A Non-Executive Director who (i) has been
serving as a Non-Executive Director or Observer for at least six months and (ii) will continue to serve as a Non-Executive Director immediately following any annual
General Meeting held following his or her initial appointment as a Non-Executive Director, is eligible to be granted, at the occasion of or as soon as practically possible following each such annual General
Meeting an option to purchase the number of common shares of the Company having an aggregate Grant Date Fair Value of $100,000, with any partial shares that result being rounded down to the nearest whole share. The awards described in this Section
II(B) shall be referred to as “Subsequent Awards.” 
 C.     Acceptance. For the
avoidance of doubt, any grant of Initial Awards and Subsequent Awards under this Program will require a written or electronic notice of acceptance of the relevant Non-Executive Director, in the absence of
which such Non-Executive Director will be deemed to have waived its rights to such a grant. 
 D.
    Terms of Awards Granted to Non-Executive Directors 
 1.
    Exercise Price. The per share exercise price of each option granted to a Non-Executive Director shall equal the Fair Market Value (as defined in the Equity Plan) of a common
share of the Company on the date the option is granted. 
 2.     Vesting. Each Initial Award shall vest and
become exercisable as to 33% of the shares subject to such Initial Award on the first anniversary of the date of grant and in 24 substantially equal monthly installments thereafter, such that the Initial Award shall be fully vested on the third
anniversary of the date of grant, subject to the Non-Executive Director continuing in service as a Non-Executive Director (or an Observer) through each such vesting
date. Each Subsequent Award shall vest and become exercisable in 12 substantially equal monthly installments following the date of grant, such that the Subsequent Award shall be fully vested on the first anniversary of the date of grant, subject to
the Non-Executive Director continuing in service on the Board as a Non-Executive Director (or an Observer) through each such vesting date. Unless the Board decides
otherwise, any portion of an Initial Award or Subsequent Award which is unvested or unexercisable at the time of a Non-Executive Director’s termination of service on the Board shall be immediately
forfeited upon such termination of service and shall not thereafter become vested and exercisable. All Initial Awards and Subsequent Awards shall vest in full immediately prior to the occurrence of a Change in Control (as defined in the Equity
Plan), to the extent outstanding at such time. 
 3.    Term. The maximum term of each Initial Award and each
Subsequent Award granted hereunder shall be ten (10) years from the date the option is granted. 
 E.     Annual
Increase; Award Limit. The Grant Date Fair Value of each Initial Award and Subsequent Award described in this Program shall, subject to approval by the Board, increase on the first day of each calendar year by an amount equal to 3% of the Grant
Date Fair Value applicable to Initial Awards and Subsequent Awards in effect as of the immediately preceding calendar year; provided, that, in no event shall the number of shares awarded pursuant 

 
to (i) an Initial Award exceed 17,000 common shares of the Company and (ii) a Subsequent Award exceed 8,500 common shares of the Company, in each case, subject to adjustment as provided
in the Equity Plan. 
 F.     Tax deductions. To the extent required to comply with applicable tax laws, the
Company shall be allowed to make necessary deductions on any compensation payable under this Program, including (without limitation) for purposes of any payroll tax or income tax. 

G.     Prevailing terms. In the event of any inconsistency between the terms of the Equity Plan and this Program,
the terms of this Program shall prevail. Notwithstanding anything in this Program to the contrary, the terms of an Initial Award granted to an Observer shall be subject to the terms of the award agreement pursuant to which such Initial Award is
granted. 
 * * * * *

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