<SEC-DOCUMENT>0001193125-20-239939.txt : 20201106
<SEC-HEADER>0001193125-20-239939.hdr.sgml : 20201106
<ACCEPTANCE-DATETIME>20200904134229
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-20-239939
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20200904

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MARCHEX INC
		CENTRAL INDEX KEY:			0001224133
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				352194038
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		520 PIKE STREET
		STREET 2:		SUITE 2000
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98101
		BUSINESS PHONE:		206-774-5000

	MAIL ADDRESS:	
		STREET 1:		520 PIKE STREET
		STREET 2:		SUITE 2000
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98101
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<TYPE>CORRESP
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<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>DLA Piper LLP (US)</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">701 Fifth Avenue</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Suite 6900</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Seattle, Washington 98104-7044</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">www.dlapiper.com</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Andrew D. Ledbetter</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">andrew.ledbetter@dlapiper.com</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">T&nbsp;&nbsp;206.839.4845</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">F&nbsp;&nbsp;206.494.1800</P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">September 4, 2020 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>VIA EDGAR </U></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Office of Mergers and
Acquisitions </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Division of Corporation Finance </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">100 F Street, N.E. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Washington,
D.C. 20549 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Attention:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Christina Chalk, Senior Special Counsel</P></TD></TR>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>Re:</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>Marchex, Inc.</B> </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>Schedule <FONT STYLE="white-space:nowrap">TO-C</FONT> filed on August&nbsp;31, 2020</B> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>Schedule <FONT STYLE="white-space:nowrap">TO-I</FONT> filed on August&nbsp;31, 2020</B> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>Schedule <FONT STYLE="white-space:nowrap">TO-T</FONT> filed on August&nbsp;31, 2020 by Edenbrook Capital, LLC </B><B><I>et
al</I></B><B>.</B> </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>File <FONT STYLE="white-space:nowrap">No.&nbsp;5-89832</FONT></B> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Dear Ms. Chalk: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">This letter is
submitted jointly on behalf of Marchex, Inc. (the &#147;<B><I>Company</I></B>&#148;) and Edenbrook Long Only Value Fund, LP and Edenbrook Value Fund, LP, each of which are managed by Edenbrook Capital, LLC (&#147;<B><I>Edenbrook
Capital&#148;</I></B> and, together with Edenbrook Long Only Value Fund, LP and Edenbrook Value Fund, LP, &#147;<B><I>Edenbrook</I></B>,&#148; and together with the Company, the &#147;<B><I>Offerors</I></B>&#148;) in response to comments of the
staff (the &#147;<B><I>Staff</I></B>&#148;) of the U.S. Securities and Exchange Commission (the &#147;<B><I>Commission</I></B>&#148;) with respect to the above referenced filings, as set forth in the Staff&#146;s letter dated September&nbsp;1, 2020
(the &#147;<B><I>Comment Letter</I></B>&#148;). Such filings relate to a combined tender offer by the Offerors to purchase up to 10,000,000 shares of Class&nbsp;B common stock, par value $0.01 per share of the Company (the &#147;common stock&#148;)
in the aggregate, at the price and on the other terms and conditions described in the Offer to Purchase and the related materials included in such filings (the &#147;<B><I>Offer</I></B>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Set forth below are the Offerors&#146; responses to the Staff&#146;s comments in the Comment Letter. For reference purposes, the Staff&#146;s
comments are reproduced in bold below, followed by the Offerors&#146; response to each comment. The numbered paragraphs below correspond to the numbered comments in the Comment Letter. For certain of the Offerors&#146; responses below, the Offerors
propose revisions to disclosure they would include in amendments to the Offer materials. For efficiency and to avoid multiple amendments of multiple filings, however, the Offerors propose to resolve in full the comments in your letter before
amending such filings, which the Offerors will make as soon practicable. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Schedule <FONT STYLE="white-space:nowrap">TO-T</FONT> filed
August&nbsp;31, 2020 &#150; Item 10. Financial Statements </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>1.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>It appears that financial statements may be required for each of the Edenbrook affiliated entities or
persons who are bidders on the Schedule <FONT STYLE="white-space:nowrap">TO-T.</FONT> We note that these entities currently own 19.5% of the Class&nbsp;B common shares and the Offer seeks an addition 25% of
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those shares. We direct your attention to Instruction 2 to Item 10 of Schedule TO, which outlines when financial statement would not generally be considered material. This is a partial offer by <FONT
STYLE="white-space:nowrap">non-reporting</FONT> entities and is therefore not within the &#147;safe harbor&#148; described in Instruction 2. Please advise or revise. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: The Offerors respectfully acknowledge the Staff&#146;s comment and advise the Staff that they carefully
considered whether the financial statements of the Edenbrook affiliated entities are material to the decision of a stockholder to tender shares sought in the Offer. The Offerors acknowledge that the &#147;safe harbor&#148; described in Instruction 2
is not available. However, the Offerors respectfully advise the Staff that, as more fully explained below, they do not believe that the financial information of Edenbrook is material to the decision of a stockholder to tender shares sought in the
Offer, and accordingly believe that such financial statements are not required to be reported in the Schedule TO. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Item 10 of Schedule TO
requires the disclosure of financial information regarding an offeror, as specified in Item 1010(a)-(b) of Regulation <FONT STYLE="white-space:nowrap">M-A,</FONT> only where such information is material. Instruction 1 of Item 10 states that
&#147;[t]he facts and circumstances of a tender offer, particularly the terms of the tender offer, may influence a determination as to whether financial statements are material, and thus required to be disclosed.&#148; The Regulation <FONT
STYLE="white-space:nowrap">M-A</FONT> adopting release (Release <FONT STYLE="white-space:nowrap">No.&nbsp;33-7760,</FONT> <FONT STYLE="white-space:nowrap">34-42055;</FONT> October&nbsp;22, 1999) (the &#147;<B><I>Release</I></B>&#148;) states that
there are several factors that should be considered in determining whether financial statements are material, including the ability of the bidder to pay for securities sought in the tender offer and/or to repay any loans in connection with the
tender offer and whether the offer is subject to a financing condition. As noted in the Release, the Commission &#147;believe[s] security holders may need financial information for the bidder when an offer is subject to a financing condition so they
can evaluate the terms of the offer, gauge the likelihood of the offer&#146;s success and make an informed investment decision.&#148; Further, the Offerors note that the Release states that Instruction 2 of Item 10 is a safe harbor and is therefore
not the exclusive means for determining whether financial statements should be deemed material. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">In accordance with the above provisions
and Commission guidance, the Offerors respectfully submit that the financial information of Edenbrook are not material to stockholders in determining whether to tender their shares sought in the Offer because the information material to such holders
is whether Edenbrook has the financial resources to pay for the tendered shares. The Offerors advise the Staff that there are no financing contingencies to the Offer and the Offer consideration consists solely of cash. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">In addition, as disclosed in the section of the offer to purchase titled &#147;Source and Amount of Funds,&#148; Edenbrook has disclosed that
the Edenbrook-affiliated purchasers have more than sufficient cash on hand to pay the full purchase price, even assuming that the maximum number of 10.0&nbsp;million shares are tendered in the Offer. Furthermore, the Offerors advise the Staff that
Edenbrook is a long-standing investor. As of Edenbrook&#146;s most recent filing on Schedule 13F, it reported over $300&nbsp;million in reportable securities holdings as of June&nbsp;30, 2020. The maximum total purchase price payable by Edenbrook
would be $9.8&nbsp;million, which would represent an immaterial percentage of its total assets and as of today Edenbrook has more than three times that amount in cash on hand. Accordingly, the Offerors submit that the Company&#146;s stockholders
have all of the material information necessary to evaluate whether Edenbrook has sufficient capacity to make payment for shares tendered in the Offer. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Furthermore, the Offerors respectfully acknowledge that the Commission provided additional guidance, specifically in footnote 195 to the
Release, stating, in relevant part, that the financial information of a bidder can be material &#147;when a bidder seeks to acquire a significant equity stake in order to influence the management and affairs of the target [as] security holders need
financial information for the prospective </P>
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controlling security holder to decide whether to tender in the offer or remain a continuing security holder in a company with a dominant or controlling security holder.&#148; The Offerors submit
that, following the Offer, due to the Company&#146;s outstanding Class&nbsp;A common stock, Edenbrook and its affiliates would continue to own common stock representing less than 10% of the total voting power of the common stock. Accordingly, the
Offerors submit that footnote 195 to the Release would not apply to the Offer. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Given the facts and circumstances of the Offer, and in
particular the terms of the Offer described above, the Offerors respectfully submit that they believe the financial information of the Edenbrook-affiliated filing persons are not material to the decision of a stockholder to tender shares sought in
the Offer, and accordingly believe that such financial statements are not required to be reported in the Schedule TO. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>2.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>Since a Schedule <FONT STYLE="white-space:nowrap">TO-T</FONT> was filed for this Offer, it appears
Marchex must file and disseminate the disclosure required by Schedule <FONT STYLE="white-space:nowrap">14D-9.</FONT> Please advise. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: While a Schedule <FONT STYLE="white-space:nowrap">TO-T</FONT> was filed for the Offer, the Company respectfully
submits that this relates to the structure of the Offer, which involves both the Company and Edenbrook making the Offer together. Due to the Company&#146;s involvement in the Offer, on the one hand, and Edenbrook&#146;s involvement in the Offer, on
the other hand, the Offerors determined that it was appropriate under <FONT STYLE="white-space:nowrap">Rule&nbsp;14d-3</FONT> to file both a Schedule <FONT STYLE="white-space:nowrap">TO-I</FONT> and a Schedule
<FONT STYLE="white-space:nowrap">TO-T,</FONT> in each case identifying all Offerors in the filing. Accordingly, the Company is a named filer and offeror in the Schedule <FONT STYLE="white-space:nowrap">TO-T.</FONT> As a result, the Company
respectfully submits that Rule <FONT STYLE="white-space:nowrap">14d-9(e)(2)</FONT> relieves the Company of the obligation to file a Schedule <FONT STYLE="white-space:nowrap">14D-9</FONT> because the Company is a &#147;bidder who has filed a Schedule
TO pursuant to Rule <FONT STYLE="white-space:nowrap">14d-3.&#148;</FONT> In addition, the Company respectfully submits that filing a Schedule <FONT STYLE="white-space:nowrap">14D-9</FONT> would provide no additional information to stockholders
because all disclosure required to be included in the Schedule <FONT STYLE="white-space:nowrap">14D-9</FONT> is provided by the Company in the Schedule <FONT STYLE="white-space:nowrap">TO-I</FONT> and Schedule
<FONT STYLE="white-space:nowrap">TO-T.</FONT> The Offerors also note that a similar position appears to have been taken in connection with the Schedule TO filed by Tropicana Entertainment Inc., Icahn Enterprises Holdings L.P., et al. originally
filed June&nbsp;23, 2017 (the &#147;<B><I>Tropicana/Icahn Schedule TO</I></B>&#148;). </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Offer to Purchase - General </U></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>3.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>As previously discussed, we do not believe that the structure of this Offer complies with the
requirements of Item 4 of Schedule TO and Item 1004(a) of Regulation <FONT STYLE="white-space:nowrap">M-A.</FONT> As currently structured, shareholders tendering into the Offer will not know the price they will receive until after expiration because
that price will be set based on the number of tenders received and not withdrawn. We further note that the lower of the two possible Offer prices is below-market, when compared to the market price for Class&nbsp;B common on the day before this Offer
commenced. Please revise the structure of this Offer to comply with the tender offer rules. </B></P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146;
Response</U>: While the Offerors understand the Staff&#146;s concern that tendering stockholders know the Offer price, the Offerors submit that the amount of consideration offered to stockholders is set forth in clear, readily comprehensible terms.
It will either be $1.80 per share if up to 6.0&nbsp;million shares are tendered, or it will be $1.96 per share if more than 6.0&nbsp;million shares are tendered (up to the maximum of 10.0&nbsp;million shares). In addition to constituting a clear
statement of the material terms, the Offerors believe the structure of the Offer is significantly less complicated and easier to understand than the commonly used pricing structure of a modified &#147;Dutch auction.&#148; Such structures generally
allow stockholders to tender shares at one or more prices they designate, which routinely cascade over a number of price points often varying by 15%, with an unknown final price until the auction is complete. In the Offer, however, there are only
two price points that vary by just 8.9%, determined simply by whether or not stockholders properly tender more than 6.0&nbsp;million shares. </P>
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The Offerors are not aware of the Staff having addressed whether an issuer and a third party may, together, conduct a tender offer that prices according to this simple formula. However, with
respect to the significantly more complicated modified &#147;Dutch auction&#148; structure, the Staff has allowed issuers to use such structures in circumstances where specified procedural protections are included, including: (i)&nbsp;disclosure in
the tender offer materials of the minimum and maximum consideration to be paid; (ii)&nbsp;pro rata acceptance throughout the offer with all securities purchased participating equally in prorationing; (iii)&nbsp;withdrawal rights throughout the
offer; (iv)&nbsp;prompt announcement of the purchase price, if determined prior to the expiration of the offer; and (v)&nbsp;purchase of all accepted securities at the highest price paid to any security holder under the offer (collectively, the
&#147;<B><I>Procedural Protections</I></B>&#148;). In addition, there are several examples of the SEC not objecting to <FONT STYLE="white-space:nowrap">non-issuer</FONT> third parties using such structures. <I>See, e.g.</I>, the Tropicana/Icahn
Schedule TO; Goldman, Sachs&nbsp;&amp; Co., Brazilian Liquidity Transaction Co, and Banco Nacional de Desenvolvimento Economico e Social <FONT STYLE="white-space:nowrap">No-Action</FONT> Letter (May&nbsp;10, 1999); MFP Technology Services Inc. <FONT
STYLE="white-space:nowrap">No-Action</FONT> Letter (October&nbsp;5, 1993); Kettle Restaurants,&nbsp;Inc. <FONT STYLE="white-space:nowrap">No-Action</FONT> Letter (February&nbsp;18, 1989). In not objecting to these more complicated structures, the
Staff appears to have considered the relationship between the third party and the company, as well as public policy matters relating to a third party&#146;s lack of fiduciary duties to stockholders, which may create potential for coercive or unfair
tactics. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Here, the Offerors respectfully submit that the Offer is inherently an issuer tender offer. While Edenbrook is also involved as
a third party, the Company is a necessary and central party to the Offer. All of the Procedural Protections are included in the Offer. Edenbrook, the Company&#146;s largest holder of Class&nbsp;B common stock and second largest stockholder by voting
power, would purchase its portion of the Offer in amounts and on terms that are identical with the Company&#146;s. As a combined offer with the Company, the Company&#146;s approval of and participation in the Offer ensures identical fiduciary
protections for tendering stockholders as would exist if the Company were the only Offeror. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">In addition, the Company has a dual-class
structure pursuant to which Russell Horowitz, the Company&#146;s Executive Chairman and <FONT STYLE="white-space:nowrap">Co-CEO,</FONT> controls approximately 75% of the voting power of the Company, which makes it impracticable for Edenbrook&#146;s
participation in the Offer to be an early step in a takeover attempt. Moreover, Edenbrook and the Company have agreed to further protective provisions pursuant to a tender offer agreement (the &#147;<B><I>Tender Offer Agreement</I></B>&#148;), as
more fully described in the Offer to Purchase and filed as an exhibit to the Schedule <FONT STYLE="white-space:nowrap">TO-I</FONT> and Schedule <FONT STYLE="white-space:nowrap">TO-T.</FONT> Among other things, Edenbrook has agreed to avoid various
change of control transactions, take-private transactions, or other events that might result in the Company ceasing to be a public company. The Offerors further note that Edenbrook is subject to Section&nbsp;16 of the Securities Exchange Act of
1934, as amended, providing assurance that it may not, for the six months following the closing of the Offer, retain any profits by selling Shares rapidly following the Offer or engage in tactics intending to create such profits. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Offerors acknowledge that the structure of the Offer differs from a modified Dutch auction in that stockholders are not asked to select a
price point. In auction structures, stockholders may select a higher price point and know that their tender will not result in a sale at a lower price point. However, the Offerors respectfully submit that the Offer provides countervailing
protections that avoid coercive or unfair tactics. Foremost, there are only two price points with a relatively tight spread between those prices, which provides stockholders a more comprehensible and transparent view of the ultimate price at the
outset. In addition, with only two potential prices, the Offerors respectfully submit that stockholders will simply not tender their shares if they are unwilling to sell at the minimum price: the higher price simply represents upside to
</P>
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stockholders. To make this point even more clear to stockholders, the Offerors propose to reinforce their disclosure, prominently, to the effect that stockholders should only tender their shares
if they are willing to sell at the minimum price. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">With respect to the Staff&#146;s observation that the lower of the two possible Offer
prices was below market price the day before the Offer commenced, the Offerors observe this was not the case on the day the Offer actually commenced. The Company first announced the intent to commence the Offer at these stated prices on
August&nbsp;10, 2020, when trading prices had been consistently below $1.80 per share for some time. It is impossible for the Offerors to predict what the prevailing trading price will be during the Offer period or at the expiration of the Offer,
but the Offerors observe that the minimum price has represented a premium to prevailing prices in the very recent past. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">In these
circumstances, the Offerors respectfully submit that the Offer does not raise the public policy concerns that may arise when the issuer is not a necessary and central party to a tender offer. In light of the simplicity of the pricing structure, the
nature of the Offer (including the Company&#146;s role and the relationships of the parties), the existence of the Procedural Protections, and the existence of the Tender Offer Agreement, the Offerors respectfully submit that the structure of the
Offer complies with the requirements Item 1004(a) of Regulation <FONT STYLE="white-space:nowrap">M-A.</FONT> </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>4.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>See our last comment above. If this Offer and its pricing structure are materially revised, we believe it
is likely that the amended Offer materials should be disseminated to shareholders in the same manner in which the original materials were distributed. See Rule <FONT STYLE="white-space:nowrap">14d-4(d)(1).</FONT> In addition, bidders should
consider, given the timing of the Offer when any change is made, whether the Offer must be extended. In your response letter, indicate how you intend to disseminate revised Offer materials and whether you will extend the duration of the Offer.
</B></P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: The Offerors acknowledge the Staff&#146;s comment. Although as explained above the
Offerors do not believe there is a need to materially revise the Offer and its pricing structure, if such revisions are made the Offerors would file revised Offer materials with the Commission, disseminate to stockholders such revised materials in
the same manner in which the original materials were distributed, and consider, depending on the timing of any such revisions, extending the Offer. The Offerors advise the Staff that, if such redistribution is required, such materials would be
printed and mailed to stockholders (or delivered to their brokers in the case of street name holders). In light of the current schedule, which contemplates the Offer&#146;s expiration on October&nbsp;7, 2020, the Offerors are unable to predict if it
will be necessary to extend the duration of the Offer, but the Offerors will continue to monitor the issue. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>5.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>The odd lot and conditional tender provisions of this Offer do not appear to permitted in a third party
Offer, pursuant to the provisions of Regulation 14D. See Rule <FONT STYLE="white-space:nowrap">14d-8.</FONT> Please revise or advise. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: While the Offerors regard the Offer as an issuer tender offer in light of the Company&#146;s necessary
involvement, the Offerors will delete all references to the odd lot and conditional tender provisions in amended Offer materials. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>6.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>We note the disclosure that Edenbrook has written put option contracts expiring in September 2020,
pursuant to which it may be required to purchase up to 240,000 additional shares of Class&nbsp;B Common Stock if the counterparty thereto exercises such put options. In your response letter, please identify the exemption from Rule <FONT
STYLE="white-space:nowrap">14e-5</FONT> which you believe permits Edenbrook and its affiliates to purchase subject securities outside the Offer, while the Offer is pending. Please outline the facts supporting your reliance on any such exemption
identified. </B></P></TD></TR></TABLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors</U><U>&#146;</U><U> Response</U>: In response to the Staff&#146;s comment, the
Offerors note that Rule <FONT STYLE="white-space:nowrap">14e-5(b)(6)</FONT> provides an exception permitting purchases to satisfy an obligation arising &#147;from the exercise of an option by a <FONT STYLE="white-space:nowrap">non-covered</FONT>
person&#148; if such option transaction &#147;was made in the ordinary course of business and not to facilitate the offer&#148; and &#147;the covered person wrote the option before the public announcement of the tender offer.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The put options satisfy each of the conditions of the Rule <FONT STYLE="white-space:nowrap">14e-5(b)(6)</FONT> exception. The counterparties
that would have the right to exercise the put options are not covered persons in the Offer. The put option contracts were written by Edenbrook in December 2019 and January 2020, several months before the Offerors first considered making the Offer or
publicly announced any intention to make the Offer. The options were written in the ordinary course of Edenbrook&#146;s business as an investor and were not intended to facilitate the Offer. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Offerors also note that Rule <FONT STYLE="white-space:nowrap">14e-5(b)(1)</FONT> provides an exception permitting the exercise of related
securities into subject securities. In this case, although the right to exercise the options lies with the counterparty rather than Edenbrook, Edenbrook was a party to the put options prior to the public announcement of the Offer. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>7.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>While a summary is necessarily a condensed version of information that appears in greater detail
elsewhere, it is inappropriate to state that summarized materials are &#147;incomplete.&#148; Please delete this qualifier where it appears throughout the Offer to Purchase, including on page 8. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: In response to the Staff&#146;s comment, the Offerors will revise the referenced disclosure on page 8 to read:
&#147;The foregoing summary does not purport to be a full discussion of all provisions of the Tender Offer Agreement, a copy of which is filed as an exhibit to the Schedule TO and which is incorporated by reference herein.&#148; Corresponding
revisions will be made to the same disclosure appearing on pages 4, 15, and 30. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Purpose of the Tender Offer&#133;, page 12 </U></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>8.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>Provide the disclosure for the Edenbrook entities required by Item 1006(a)-(c) of Regulation <FONT
STYLE="white-space:nowrap">M-A.</FONT> </B></P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: In response to the Staff&#146;s comment, the
Offerors will revise the disclosure under &#147;Purpose of the Tender Offer; Certain Effects of the Tender Offer; Other Plans&#148; to add the following disclosure: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">If the Offer is fully subscribed, following the Offer, Edenbrook would beneficially own approximately 36.67% of the
Company&#146;s outstanding Class&nbsp;B common stock, but would only control approximately 8.45% of the voting power of the common stock. Russell C. Horowitz would continue to beneficially own Class&nbsp;A common stock and Class&nbsp;B common stock
representing a majority of the aggregate voting power. Edenbrook is offering to purchase the shares for investment purposes and it currently intends to retain any purchased shares. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Offerors note that, on page 15 of the Schedule
<FONT STYLE="white-space:nowrap">TO-I</FONT> and Schedule <FONT STYLE="white-space:nowrap">TO-T,</FONT> both the Company and Edenbrook disclose that they currently have no plans to engage in any of the activities described in Item 1006(c) of
Regulation <FONT STYLE="white-space:nowrap">M-A.</FONT> </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Certain Effects of the Offer, page 14 </U></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>9.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>Clarify whether Edenbrook&#146;s obligation under the Tender Offer Agreement not to &#147;engage in, any
transaction to acquire all of the outstanding shares of common stock for a period of two years from April&nbsp;31, 2020&#148; means that it could not participate in such a transaction conducted by any other party. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: In response to the Staff&#146;s comment, the Offerors will amend the referenced disclosure to add a
parenthetical that states: &#147;(which covenant would not prevent Edenbrook from participating only as a tendering stockholder in a tender offer conducted by a third party).&#148; </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Purchase of Shares and Payment of Purchase Price, page 20 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>10.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>On page 21, you disclose that you may not be able to commence paying for tendered shares until &#147;up
to five business days after the Expiration Time.&#148; Supplementally advise why you believe this complies with the prompt payment obligation under Rule <FONT STYLE="white-space:nowrap">14e-1(c).</FONT> </B></P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors</U><U>&#146;</U><U> Response</U>: In response to the Staff&#146;s comment, the Offerors will revise the referenced disclosure to
indicate payment is expected to commence within three business days after the expiration of the Offer. The Offerors respectfully advise the Staff that Equiniti Trust Company (&#147;<B><I>Equiniti</I></B>&#148;), the Depositary and Paying Agent for
the Offer, has advised the Offerors that payments cannot commence until after the <FONT STYLE="white-space:nowrap">two-day</FONT> guaranteed delivery period, following which an additional day is expected to establish the final proration factor, for
Equiniti to communicate the same to DTC, and for Equiniti and DTC to finalize the share balance and the related payment. Accordingly, the Offerors submit that three business days represents a prompt payment in light of the advice of the Depository
and Paying Agent as to the time it needs to administer the settlement process. The Offerors further confirm to the Staff that they have requested Equiniti remit payment to stockholders as soon as possible. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Conditions of the Tender Offer, page 22 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>11.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>Refer to the first paragraph in this section and the disclosure in the parenthetical there. It is not
clear how any shares could be accepted for payment before the Expiration Time. Please revise. </B></P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146;
Response</U>: In response to the Staff&#146;s comment, the Offerors will revise the referenced disclosure to delete the parenthetical &#147;(whether any shares have theretofore been accepted for payment).&#148; </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>12.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>In the second bullet point on page 22, clarify what is meant by a &#147;general limitation on prices
for&#148; securities on any national securities exchange. Alternatively, delete this language. </B></P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146;
Response</U>: In response to the Staff&#146;s comment, the Offerors will revise the referenced disclosure to read &#147;any general suspension or material limitation in trading in securities on any national securities exchange in the United States
or in <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">the&nbsp;over-the-counter&nbsp;market.&#148;</FONT></FONT> </P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>13.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>Refer to the first bullet point on page 24. Clarify whether any such approvals or permits are required to
complete the Offer. </B></P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: In response to the Staff&#146;s comment, the Offerors will
revise the referenced disclosure to add a concluding parenthetical substantially along these lines: &#147;(although we are not aware of the need to obtain any such approval, permit, authorization, favorable review or consent, except for the review
of this Offer by the SEC and Nasdaq).&#148; </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>14.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>Refer to the language in the second to last and last paragraphs in this section on page 24. Reserving the
right to assert a condition &#147;from time to time and at any time&#148; implies that you may wait until the Expiration Time to assert an Offer condition that was &#147;triggered&#148; by an event that occurred much earlier in the Offer period.
Please note that once a condition is triggered, bidders must promptly notify shareholders whether they will waive the condition and proceed with the Offer, or assert it and terminate. Please supplementally confirm your understanding.
</B></P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: The Offerors supplementally confirm their understanding that, once a condition is
triggered, the Offerors must promptly notify stockholders whether the Offerors will waive the condition and proceed with the Offer, or assert the condition and terminate the Offer. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Asset Sale Transaction, page 28 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>15.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>Explain how the Offer will impact the Asset Sale Transaction. For example, explain how the record date
for the shareholder vote on the Asset Sale Transaction compares to the Offer period, with a view to clarifying whether tendering holders will still be able to vote. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: In response to the Staff&#146;s comment, the Offerors will revise the second paragraph under the heading
&#147;Asset Sale Transaction&#148; to add the following disclosure: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The approval of a majority of the Company&#146;s
disinterested stockholders is a closing condition of the Asset Sale Transaction. The Company filed a preliminary proxy statement relating to a special meeting of stockholders for the purpose of approving the Asset Sale Transaction on August&nbsp;14,
2020 and a definitive proxy statement on August&nbsp;24, 2020. As stated therein, the date of the special meeting is October<U></U>&nbsp;1, 2020. Only stockholders of record as of August<U></U> 10, 2020, the record date for the special meeting, are
entitled to notice of and to vote at the special meeting. Because tendering shares in the Offer will not impact whether or not you were a stockholder of record on the August<U></U>&nbsp;10, 2020 record date, tendering shares in the Offer will have
no impact on your ability to vote on the Asset Sale Transaction at the special meeting. Conversely, any stockholder who owns shares of the Company&#146;s common stock prior to the Expiration Time may tender such shares to us in the Offer, regardless
of whether the stockholder was the holder of record on August<U></U>&nbsp;10, 2020 (or any other particular date). </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Recent Securities Transactions,
page 30 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>16.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>Please revise to provide disclosure about any transactions in the Company&#146;s shares by the Edenbrook
affiliates. </B></P></TD></TR></TABLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: In response to the Staff&#146;s comment, the Offerors will
amend the Offer materials to state: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Based on our records and on information provided to us by our directors, executive
officers, affiliates, and subsidiaries, neither the Company, Edenbrook<FONT STYLE="font-family:Times New Roman; font-size:10pt" COLOR="#2f6491">,</FONT><FONT STYLE="font-family:Times New Roman"> nor any of their respective affiliates, subsidiaries,
directors, or executive officers have effected any transactions involving shares of the Company&#146;s common stock during the 60 days prior to the date of this Offer to Purchase. In December 2019 and January 2020, Edenbrook wrote put option
contracts expiring in September 2020 pursuant to which Edenbrook may be required to purchase up to 240,000 additional shares of Class&nbsp;B Common Stock if the counterparty thereto exercises such put options. </FONT></P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Certain Information Concerning Edenbrook, page 34 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>17.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>Provide the information required by Item 1003(a)-(c) of Regulation
<FONT STYLE="white-space:nowrap">M-A</FONT> for all Edenbrook filing persons and affiliates identified in General Instruction C to Schedule TO. While you refer to disclosure in Schedule A, it does not appear to be complete.
</B></P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: In response to the Staff&#146;s comment, the Offerors will amend Schedule A to the
Offer materials to state: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The principal business address and principal business telephone number of each of Edenbrook Long
Only Value Fund, LP, a Delaware limited partnership, Edenbrook Value Fund, LP, a New York limited partnership, Edenbrook Capital, LLC, a New York limited liability company, Edenbrook Capital Partners, LLC, a New York limited liability company, and
Jonathan Brolin are 116 Radio Circle, Mount Kisco, NY 10549 and (914) <FONT STYLE="white-space:nowrap">239-3117,</FONT> respectively. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Edenbrook Capital Partners, LLC is the general partner of each of Edenbrook Long Only Value Fund, LP and Edenbrook Value Fund,
LP. Edenbrook Capital, LLC is the investment manager of each of Edenbrook Long Only Value Fund, LP and Edenbrook Value Fund, LP. Each of Edenbrook Capital Partners, LLC and Edenbrook Capital, LLC is solely controlled by its managing member, Jonathan
Brolin. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Jonathan Brolin is the Founder and Managing Member of Edenbrook Capital Partners, LLC and Edenbrook Capital, LLC,
and he has served in those roles since he founded Edenbrook in 2011. Edenbrook takes a private equity approach to public markets, principally through concentrated, long-term investments in small and <FONT STYLE="white-space:nowrap">mid-cap</FONT>
companies. Mr.&nbsp;Brolin has over 25 years of experience in public and private equity investing and investment banking. In addition, Mr.&nbsp;Brolin serves as a Fellow at the Gabelli Center for Global Security Analysis at Fordham University&#146;s
School of Business, where he also teaches Advanced Topics in Value Investing. He earned his M.B.A. from Columbia Business School, where he was a member of the Beta Gamma Sigma Honor Society, and his B.A. from the University of Pennsylvania, where he
was a Benjamin Franklin Scholar and General Honors Student. Mr.&nbsp;Brolin has served as a Director of Frequency Electronics, Inc. since November 2017. Mr.&nbsp;Brolin also serves as a Director of CXO Nexus, Inc., a private software company focused
on vendor spend management. Mr.&nbsp;Brolin is a United States citizen. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">None of foregoing persons have been, during the past five years:
(a)&nbsp;convicted in a criminal proceeding; or (b)&nbsp;a party to any judicial or administrative proceeding that resulted in a judgment, decree or final order enjoining the person from future violations of, or prohibiting activities subject to,
federal or state securities laws, or a finding of any violation of federal or state securities laws. </P>
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<IMG SRC="g11210g20s32.jpg" ALT="LOGO">
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Background of the Offer; Contacts, page 34 </U></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>18.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>If the Company provided material <FONT STYLE="white-space:nowrap">non-public</FONT> information to the
Edenbrook entities or their affiliates or representatives during the course of the negotiations leading up to this Offer, please disclose those projections and the underlying assumptions and limitations in the Offer to Purchase. If projections or
forecasts were not exchanged, please so indicate in your response letter. </B></P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors</U><U>&#146;</U><U>
Response</U>: Edenbrook is a longstanding, major stockholder of the Company with which the Company enjoys a collaborative relationship and, accordingly, the Company has in the past provided Edenbrook with material
<FONT STYLE="white-space:nowrap">non-public</FONT> information subject to appropriate nondisclosure and trading restrictions. However, the Company did not provide projections or forecasts to Edenbrook or its affiliates or representatives during the
course of the negotiations leading up to the Offer. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>19.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>It is unclear from the disclosure in this section how any why the Company determined to proceed with a
potential tender offer, how it identified Edenbrook as a potential party to the Offer and why it determined to structure the tender offer is a joint offer. Expand to explain who initiated the contacts between these parties, how and why the Company
determined to proceed with a tender offer, how it chose to structure such an offer jointly, and why it chose Edenbrook as a transaction partner. Your expanded disclosure should further identify who initiated contact regarding the Offer. See Item
1005(b) of Regulation <FONT STYLE="white-space:nowrap">M-A.</FONT> </B></P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors</U><U>&#146;</U><U> Response</U>: In
response to the Staff&#146;s comment, the Offerors will amend the Offer materials on page 35 substantially as follows: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">In
June 2020, the Board and senior management began to preliminarily consider the possibility of a tender offer pursuant to which the Company would repurchase shares of its Class&nbsp;B common stock. From time to time, stockholders had requested that
the Company buy back more of its shares in order to offer its stockholders the opportunity for liquidity in light of the thin trading market for the Company&#146;s stock. In addition, in connection with its ongoing consideration of strategic
transactions, the Board and senior management were also preliminarily discussing a potential sale of the Company&#146;s Business, which discussions advanced to formal negotiations in July 2020 and August 2020. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">In early August 2020, the Board and senior management of the Company continued to consider a potential tender offer. The
Company identified Edenbrook as a potential party to the Offer based on several factors, including that: (i)&nbsp;Edenbrook is the Company&#146;s largest Class<U></U>&nbsp;B stockholder, owning approximately 20% of the Company&#146;s outstanding
<U></U>Class<U></U>&nbsp;B common stock; (ii)<U></U>&nbsp;Edenbrook is a long term (5+&nbsp;year) holder of the Company&#146;s stock; (iii)<U></U>&nbsp;Edenbrook has been a continuous buyer of the Company&#146;s stock during its period as a
stockholder and has never sold any shares of the Company&#146;s stock; and (iv)<U></U>&nbsp;the Company has enjoyed a collaborative relationship with Edenbrook throughout this period. The Company believed that structuring the tender offer as a joint
tender offer would enable the Offer to be for twice the number of shares than if the Company alone were making a tender offer based on its financial resources, thereby providing its </P>
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stockholders with the opportunity for significantly more liquidity. Accordingly, on August<U></U>&nbsp;4, 2020, the Company proposed a teleconference with Edenbrook to preliminarily discuss a
potential joint tender offer. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">On August&nbsp;6, 2020, the Board, senior management and outside counsel at DLA Piper LLP
(US) met via teleconference with Edenbrook and its outside counsel at Schulte Roth&nbsp;&amp; Zabel LLP, in which the Company proposed to Edenbrook a potential joint tender offer, including basic economic terms and timeline. The parties
preliminarily discussed the merits of, and the timeline, structure, and related considerations associated with, a potential joint tender offer. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Miscellaneous, page 36 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>20.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="justify"><B>We note the disclosure here indicating that tenders may not be accepted from shareholders in certain
jurisdiction. While Offer materials need not be disseminated into jurisdictions where it is impermissible to do so, please revise this statement to remove the implication that tendered shares will not be accepted from all holders. Refer to Rule <FONT
STYLE="white-space:nowrap">14d-10(a)(1)</FONT> and Section II.G.1 of Securities Exchange Act Release No.&nbsp;58597 (September 19, 2008). Alternatively, please revise the statement to limit the restriction to only U.S. states instead of all
jurisdictions to conform to the regulatory text in Rule <FONT STYLE="white-space:nowrap">14d-10(b)(2).</FONT> Please make corresponding changes throughout the Offer to Purchase where such language appears. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><U>Offerors&#146; Response</U>: In response to the Staff&#146;s comment, the Offerors will revise the referenced disclosure on page 36 (and the
similar disclosure on the page prior to the table of contents) to read: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">We are not aware of any U.S. state where the
making of the Offer is not in compliance with applicable law. If we become aware of any U.S. state where the making of the Offer or the acceptance of shares pursuant thereto is not in compliance with applicable law, we will make a good faith effort
to comply with the applicable law. If, after such good faith effort, we cannot comply with the applicable law, the Offer will not be made to (nor will tenders be accepted from or on behalf of) the holders of shares in such U.S. state. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp; * </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Should the Staff have additional questions or comments regarding this letter or the filings, please do not hesitate to contact Andrew
Ledbetter at <FONT STYLE="white-space:nowrap">(206)&nbsp;839-4845</FONT> or andrew.ledbetter@dlapiper.com, or to contact Xavier Kowalski at (212) <FONT STYLE="white-space:nowrap">756-2549</FONT> or Xavier.Kowalski@srz.com. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Sincerely,</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD></TR>
<TR STYLE="font-size:1pt">
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">DLA PIPER LLP (US)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">SCHULTE ROTH&nbsp;&amp; ZABEL LLP</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman"><B><I>/s</I></B><B><I>/ Andrew Ledbetter</I></B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman"><B><I>/s/ Xavier Kowalski</I></B></P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Andrew Ledbetter</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Xavier Kowalski</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">cc: Michael Arends, Chief Financial Officer and <FONT STYLE="white-space:nowrap">Co-CEO</FONT> </P>
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 12
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Russell C. Horowitz, Executive Chairman and
<FONT STYLE="white-space:nowrap">Co-CEO</FONT> </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Michelle Paterniti, General Counsel and Secretary </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>Marchex, Inc.</B> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Jonathan Brolin, Managing Member </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>Edenbrook Capital, LLC</B> </P>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
