Document:

exv10w2

Exhibit 10.2

WARRANT

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE
SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN A MANNER
CONSISTENT WITH THE SECURITIES ACT IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH
SECURITIES.

SIGNATURE GROUP HOLDINGS, INC.

WARRANT

			
	Warrant No. SW-___
	 	Date of Original Issuance: June ___, 2010

Signature Group Holdings, Inc. (the “COMPANY”), hereby certifies that, for value received,
                                         or its registered assigns (the “HOLDER”), is entitled to purchase from
the Company up to a total of                      shares of common stock (the “COMMON STOCK”), of the
Company (each such share, a “WARRANT SHARE” and all such shares, the “WARRANT SHARES”) at an
exercise price equal to $1.03 per share (as adjusted from time to time as provided in Section 8,
the “EXERCISE PRICE”), at any time and from time to time from and after the date hereof and through
and including the date that is the tenth anniversary of the date hereof (the “EXPIRATION DATE”),
and subject to the following terms and conditions:

1. Registration of Warrant.

(a) Registration of Warrant. The Company shall register this Warrant, upon records to be maintained
by the Company for that purpose (the “WARRANT REGISTER”), in the name of the record Holder hereof
from time to time. The Company may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

(b) Registration of Transfers. The Company shall register the transfer of any portion of this
Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment
attached hereto duly completed and signed, to the Company at its address specified herein. Upon any
such registration or transfer, a new Warrant to purchase Common Stock, in substantially the

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form of this Warrant (any such new Warrant, a “NEW WARRANT”), evidencing the portion of this
Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining
portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The
acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such
transferee of all of the rights and obligations of a holder of a Warrant.

2. Purchase Price. The purchase price for this Warrant shall be $0.02 per share payable in
installments corresponding to the vesting schedule in Section 3(a) below. The obligation to pay
each installment of the purchase price shall be contingent on, and concurrent with, the vesting of
each installment of Warrant Shares as set forth under Section 3(a).

3. Vesting; Exercise and Duration of Warrants.

(a) Reference is made to Signature Group Holdings, LLC’s Chapter 11 Fourth Amended Plan of
Reorganization of Fremont General Corporation, Joined by James McIntyre, dated May 24, 2010 (the
“Plan”). This warrant shall vest as to shares of underlying Common Stock according to the
following schedule: 20% of the Warrant Shares shall vest on the Effective Date (as defined in the
Plan), and 20% of the Warrant Shares shall vest in annual installments thereafter until this
Warrant is fully vested on the fourth anniversary of the Effective Date.

(b) This Warrant shall be exercisable by the registered Holder at any time and from time to time on
or after the date hereof to and including the Expiration Date. At 6:30 p.m., Pacific time on the
Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become void
and of no value, provided, that if the closing sales price of the Common Stock on the Expiration
Date is greater than 102% of the Exercise Price on the Expiration Date, then this Warrant shall be
deemed to have been exercised in full (to the extent not previously exercised) on a “cashless
exercise” basis at 6:30 P.M. Pacific time on the Expiration Date. The Company may not call or
redeem all or any portion of this Warrant without the prior written consent of the Holder.

(c) Notwithstanding anything to the contrary herein, at the option of the Holder, the Expiration
Date may be extended for the number of Trading Days during any period occurring after the
Effectiveness Date in which (i) trading in the Common Stock is suspended by any Trading Market,
(ii) the Registration Statement is not effective, or (iii) the prospectus included in the
Registration Statement may not be used by the Holders for the resale of Registrable Securities
thereunder.

4. Delivery of Warrant Shares.

(a) To effect exercises hereunder, the Holder shall not be required to physically surrender this
Warrant unless the aggregate Warrant Shares represented by this Warrant is being exercised. Upon
delivery of the Exercise Notice to the Company (with the attached Warrant Shares Exercise Log) at
its address for notice set forth herein and upon payment of the Exercise Price multiplied by the
number of Warrant Shares that the Holder intends to purchase hereunder, the Company shall promptly
(but in no event later than three Trading Days after the Date of Exercise (as defined herein))
issue and deliver to the Holder, a certificate for the Warrant Shares issuable upon such exercise,
which, unless otherwise required by the Purchase Agreement, shall be free of restrictive legends.
The Company shall, upon request of the Holder and subsequent to the date

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on which a registration statement covering the resale of the Warrant Shares has been declared
effective by the Securities and Exchange Commission, use its best efforts to deliver Warrant Shares
hereunder electronically through The Depository Trust Corporation or another established clearing
corporation performing similar functions, if available, provided, that, the Company may, but will
not be required to change its transfer agent if its current transfer agent cannot deliver Warrant
Shares electronically through the Depository Trust Corporation. A “DATE OF EXERCISE” means the date
on which the Holder shall have delivered to Company: (i) the Exercise Notice (with the Warrant
Exercise Log attached to it), appropriately completed and duly signed and (ii) if such Holder is
not utilizing the cashless exercise provisions set forth in this Warrant, payment of the Exercise
Price for the number of Warrant Shares so indicated by the Holder to be purchased.

(b) If by the third Trading Day after a Date of Exercise the Company fails to deliver the required
number of Warrant Shares in the manner required pursuant to Section 4(a), then the Holder will have
the right to rescind such exercise.

(c) If by the third Trading Day after a Date of Exercise the Company fails to deliver the required
number of Warrant Shares in the manner required pursuant to Section 4(a), and if after such third
Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open
market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a
“BUY-IN”), then the Company shall (1) pay in cash to the Holder the amount by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common
Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares
that the Company was required to deliver to the Holder in connection with the exercise at issue by
(B) the closing bid price of the Common Stock at the time of the obligation giving rise to such
purchase obligation or (2) at the option of the Holder, either reinstate the portion of the Warrant
and equivalent number of Warrant Shares for which such exercise was not honored or deliver to the
Holder the number of shares of Common Stock that would have been issued had the Company timely
complied with its exercise and delivery obligations hereunder. The Holder shall provide the Company
written notice indicating the amounts payable to the Holder in respect of the Buy-In.

(d) The Company’s obligations to issue and deliver Warrant Shares in accordance with the terms
hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to
enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any
judgment against any Person or any action to enforce the same, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other
Person of any obligation to the Company or any violation or alleged violation of law by the Holder
or any other Person, and irrespective of any other circumstance which might otherwise limit such
obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing
herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law
or in equity including, without limitation, a decree of specific performance and/or injunctive
relief with respect to the Company’s failure to timely deliver certificates representing shares of
Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

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5. Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock
upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer
tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the
issuance of such certificates, all of which taxes and expenses shall be paid by the Company;
provided, however, that the Company shall not be required to pay any tax which may be payable in
respect of any transfer involved in the registration of any certificates for Warrant Shares or
Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax
liability that may arise as a result of holding or transferring this Warrant or receiving Warrant
Shares upon exercise hereof.

6. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or
in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction and customary and
reasonable indemnity (which may include a surety bond for any Holder other than the original Holder
of the Warrant), if requested. Applicants for a New Warrant under such circumstances shall also
comply with such other reasonable regulations and procedures and pay such other reasonable
third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a
mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as
a condition precedent to the Company’s obligation to issue the New Warrant.

7. Reservation of Warrant Shares. The Company covenants that it will at all times reserve and keep
available out of the aggregate of its authorized but unissued and otherwise unreserved Common
Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant
as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the
exercise of this entire Warrant, free from preemptive rights or any other contingent purchase
rights of persons other than the Holder (taking into account the adjustments and restrictions of
Section 8). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon
issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be
duly and validly authorized, issued and fully paid and nonassessable.

8. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of
this Warrant are subject to adjustment from time to time as set forth in this Section 8.

(a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i)
pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital
stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock
into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a smaller
number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of
which the numerator shall be the number of shares of Common Stock outstanding immediately before
such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall
become effective immediately after the record date for the determination of shareholders entitled
to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of
this paragraph shall become effective immediately after the effective date of such subdivision or
combination. If any event requiring an adjustment

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under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then
the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

(b) Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding,
distributes to all holders of Common Stock (i) evidences of its indebtedness, (ii) any security
(other than a distribution of Common Stock covered by the preceding paragraph), (iii) rights or
warrants to subscribe for or purchase any security, or (iv) any other asset (in each case,
“DISTRIBUTED PROPERTY”), then, at the request of any Holder delivered before the 90th day after the
record date fixed for determination of shareholders entitled to receive such distribution, the
Company will deliver to such Holder, within five Trading Days after such request (or, if later, on
the effective date of such distribution), the Distributed Property that such Holder would have been
entitled to receive in respect of the Warrant Shares for which such Holder’s Warrant could have
been exercised immediately prior to such record date. If such Distributed Property is not delivered
to a Holder pursuant to the preceding sentence, then upon any exercise of the Warrant that occurs
after such record date, such Holder shall be entitled to receive, in addition to the Warrant Shares
otherwise issuable upon such conversion, the Distributed Property that such Holder would have been
entitled to receive in respect of such number of Warrant Shares had the Holder been the record
holder of such Warrant Shares immediately prior to such record date. Notwithstanding the foregoing,
this Section 8(b) shall not apply to any distribution of rights or securities in respect of
adoption by the Company of a shareholder rights plan which events shall be covered by the
anti-dilution provisions of Section 8(a).

(c) Fundamental Transactions. If, at any time while this Warrant is outstanding, (1) the Company
effects any merger or consolidation of the Company with or into another Person, (2) the Company
effects any sale of all or substantially all of its assets in one or a series of related
transactions, (3) any tender offer or exchange offer approved or authorized by the Board of
Directors of the Company (whether by the Company or another Person) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their shares for other securities, cash
or property, or (4) the Company effects any reclassification of the Common Stock or any compulsory
share exchange pursuant to which the Common Stock is effectively converted into or exchanged for
other securities, cash or property, other than in connection with the transactions contemplated by
the Plan (in any such case, a “FUNDAMENTAL TRANSACTION”), then the Holder shall have the right
thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash
or property as it would have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the
number of Warrant Shares then issuable upon exercise in full of this Warrant (the “ALTERNATE
CONSIDERATION”). For purposes of any such exercise, the determination of the Exercise Price shall
be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate
Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and
the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable
manner reflecting the relative value of any different components of the Alternate Consideration. If
holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.
At the Holder’s request, any successor to the Company or surviving entity in such Fundamental
Transaction shall issue to the Holder a new

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warrant substantially in the form of this Warrant and consistent with the foregoing provisions and
evidencing the Holder’s right to purchase the Alternate Consideration for the aggregate Exercise
Price upon exercise thereof. The terms of any agreement pursuant to which a Fundamental Transaction
is effected shall include terms requiring any such successor or surviving entity to comply with the
provisions of this paragraph (c) and insuring that the Warrant (or any such replacement security)
will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

(d) Subsequent Equity Sales.

(i) While any portion of this Warrant is outstanding, if the Company issues any shares of Common
Stock or the Company or any subsidiary thereof issues any rights, warrants, options or other
securities or debt that is convertible into, exchangeable for, exercisable into, or otherwise
entitling any Person to acquire shares of Common Stock (any such securities, “COMMON STOCK
EQUIVALENTS”), at a price per share less than the Exercise Price (if the holder of the Common Stock
or Common Stock Equivalent so issued shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights issued in connection with such issuance, be entitled to receive
shares of Common Stock at a price less than the Exercise Price, such issuance shall be deemed to
have occurred for less than the Exercise Price), then the Exercise Price shall be adjusted to equal
the conversion, exchange or purchase price for such Common Stock or Common Stock Equivalents
(including any reset provisions thereof) at issue and which adjusted Exercise Price shall continue
for as long as this Warrants remain outstanding. Such adjustment shall be made whenever such Common
Stock or Common Stock Equivalents are issued. The Company shall notify the Holder in writing, no
later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalent
subject to this section, indicating therein the applicable issuance price, or of applicable reset
price, exchange price, conversion price and other pricing terms.

(ii) For purposes of this subsection 8(d), the following subsections (d)(ii)(l) to (d)(ii)(6) shall
also be applicable:

(1) Issuance of Rights or Options. In case at any time the Company shall in any manner grant
(directly and not by assumption in a merger or otherwise) any warrants or other rights to subscribe
for or to purchase, or any options for the purchase of, Common Stock or any stock or security
convertible into or exchangeable for Common Stock (such warrants, rights or options being called
“OPTIONS” and such convertible or exchangeable stock or securities being called “CONVERTIBLE
SECURITIES”) whether or not such Options or the right to convert or exchange any such Convertible
Securities are immediately exercisable, and the price per share for which Common Stock is issuable
upon the exercise of such Options or upon the conversion or exchange of such Convertible Securities
(determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of
(x) the total amount, if any, received or receivable by the Company as consideration for the
granting of such Options, plus (y) the aggregate amount of additional consideration payable to the
Company upon the exercise of all such Options, plus (z), in the case of such Options which relate
to Convertible Securities, the aggregate amount of additional consideration, if any, payable upon
the issue or sale of such Convertible Securities and upon the conversion or exchange thereof, by
(ii) the total maximum number of shares of

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Common Stock issuable upon the exercise of such Options or upon the conversion or exchange of all
such Convertible Securities issuable upon the exercise of such Options) shall be less than the
Exercise Price in effect immediately prior to the time of the granting of such Options, then the
total number of shares of Common Stock issuable upon the exercise of such Options or upon
conversion or exchange of the total amount of such Convertible Securities issuable upon the
exercise of such Options shall be deemed to have been issued for such price per share as of the
date of granting of such Options or the issuance of such Convertible Securities and thereafter
shall be deemed to be outstanding for purposes of adjusting the Exercise Price. Except as otherwise
provided in subsection 8(d)(ii)(3), no adjustment of the Exercise Price shall be made upon the
actual issue of such Common Stock or of such Convertible Securities upon exercise of such Options
or upon the actual issue of such Common Stock upon conversion or exchange of such Convertible
Securities.

(2) Issuance of Convertible Securities. In case the Company shall in any manner issue (directly and
not by assumption in a merger or otherwise) or sell any Convertible Securities, whether or not the
rights to exchange or convert any such Convertible Securities are immediately exercisable, and the
price per share for which Common Stock is issuable upon such conversion or exchange (determined by
dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total
amount received or receivable by the Company as consideration for the issue or sale of such
Convertible Securities, plus (y) the aggregate amount of additional consideration, if any, payable
to the Company upon the conversion or exchange thereof, by (ii) the total number of shares of
Common Stock issuable upon the conversion or exchange of all such Convertible Securities) shall be
less than the Exercise Price in effect immediately prior to the time of such issue or sale, then
the total maximum number of shares of Common Stock issuable upon conversion or exchange of all such
Convertible Securities shall be deemed to have been issued for such price per share as of the date
of the issue or sale of such Convertible Securities and thereafter shall be deemed to be
outstanding for purposes of adjusting the Exercise Price, provided that (a) except as otherwise
provided in subsection 8(d)(ii)(3), no adjustment of the Exercise Price shall be made upon the
actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities and
(b) no further adjustment of the Exercise Price shall be made by reason of the issue or sale of
Convertible Securities upon exercise of any Options to purchase any such Convertible Securities for
which adjustments of the Exercise Price have been made pursuant to the other provisions of
subsection 8(d).

(3) Change in Option Price or Conversion Rate. Upon the happening of any of the following events,
namely, if the purchase price provided for in any Option referred to in subsection 8(d)(ii)(l)
hereof, the additional consideration, if any, payable upon the conversion or exchange of any
Convertible Securities referred to in subsections 8(d)(ii)(l) or 8(d)(ii)(2), or the rate at which
Convertible Securities referred to in subsections 8(d)(ii)(l) or 8(d)(ii)(2) are convertible into
or exchangeable for Common Stock shall change at any time (including, but not limited to, changes
under or by reason of provisions designed to protect against dilution), the Exercise Price in
effect at the time of such event shall forthwith be readjusted to the Exercise Price which would
have been in effect at such time had such Options or Convertible Securities still outstanding
provided for such changed purchase price, additional consideration or conversion rate, as the case
may be, at the time initially granted, issued or sold. On the termination of any Option for which
any adjustment was made pursuant to this subsection 8(d) or any right to convert or exchange
Convertible Securities for which any adjustment was made pursuant to this subsection

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8(d) (including without limitation upon the redemption or purchase for consideration of such
Convertible Securities by the Company), the Exercise Price then in effect hereunder shall forthwith
be changed to the Exercise Price which would have been in effect at the time of such termination
had such Option or Convertible Securities, to the extent outstanding immediately prior to such
termination, never been issued.

(4) Stock Dividends. Subject to the provisions of this Section 8(d), in case the Company shall
declare a dividend or make any other distribution upon any stock of the Company (other than the
Common Stock) payable in Common Stock, Options or Convertible Securities, then any Common Stock,
Options or Convertible Securities, as the case may be, issuable in payment of such dividend or
distribution shall be deemed to have been issued or sold without consideration.

(5) Consideration for Stock. In case any shares of Common Stock, Options or Convertible Securities
shall be issued or sold for cash, the consideration received therefor shall be deemed to be the net
amount received by the Company therefor, after deduction therefrom of any expenses incurred or any
underwriting commissions or concessions paid or allowed by the Company in connection therewith. In
case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for a
consideration other than cash, the amount of the consideration other than cash received by the
Company shall be deemed to be the fair value of such consideration as determined in good faith by
the Board of Directors of the Company, after deduction of any expenses incurred or any underwriting
commissions or concessions paid or allowed by the Company in connection therewith. In case any
Options shall be issued in connection with the issue and sale of other securities of the Company,
together comprising one integral transaction in which no specific consideration is allocated to
such Options by the parties thereto, such Options shall be deemed to have been issued for such
consideration as determined in good faith by the Board of Directors of the Company. If Common
Stock, Options or Convertible Securities shall be issued or sold by the Company and, in connection
therewith, other Options or Convertible Securities (the “ADDITIONAL RIGHTS”) are issued, then the
consideration received or deemed to be received by the Company shall be reduced by the fair market
value of the Additional Rights (as determined using the Black-Scholes option pricing model or
another method mutually agreed to by the Company and the Holder). The Board of Directors of the
Company shall respond promptly, in writing, to an inquiry by the Holders as to the fair market
value of the Additional Rights. In the event that the Board of Directors of the Company and the
Holders are unable to agree upon the fair market value of the Additional Rights, the Company and
the Holders shall jointly select an appraiser, who is experienced in such matters. The decision of
such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne evenly
by the Company and the Holder.

(6) Record Date. In case the Company shall take a record of the holders of its Common Stock for the
purpose of entitling them (i) to receive a dividend or other distribution payable in Common Stock,
Options or Convertible Securities or (ii) to subscribe for or purchase Common Stock, Options or
Convertible Securities, then such record date shall be deemed to be the date of the issue or sale
of the shares of Common Stock deemed to have been issued or sold upon the declaration of such
dividend or the making of such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be.

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(iii) Notwithstanding the foregoing, no adjustment will be made under this Section 8(d) as a result
of: (i) the issuance of securities upon the exercise or conversion of any Common Stock Equivalents
issued by the Company prior to the date of this Agreement (but will apply to any amendments,
modifications and reissuances thereof), (ii) the grant of options or warrants, or the issuance of
additional securities, under any duly authorized company stock option, stock incentive plan,
restricted stock plan or stock purchase plan in existence on the Closing Date of the
Reorganization, or (iii) the issuance of Common Stock to Signature Group Holdings, LLC, the TOPrS
Group or their affiliates in connection with the Plan (each, an “EXEMPTED ISSUANCE”).

(e) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to
paragraph (a) of this Section, the number of Warrant Shares that may be purchased upon exercise of
this Warrant shall be increased or decreased proportionately, so that after such adjustment the
aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the
same as the aggregate Exercise Price in effect immediately prior to such adjustment.

(f) Calculations. All calculations under this Section 8 shall be made to the nearest cent or the
nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any
given time shall not include shares owned or held by or for the account of the Company, and the
disposition of any such shares shall be considered an issue or sale of Common Stock.

(g) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 8, the
Company at its expense will promptly compute such adjustment in accordance with the terms of this
Warrant and prepare a certificate setting forth such adjustment, including a statement of the
adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable
upon exercise of this Warrant (as applicable), describing the transactions giving rise to such
adjustments and showing in detail the facts upon which such adjustment is based. Upon written
request, the Company will promptly deliver a copy of each such certificate to the Holder and to the
Company’s transfer agent.

(h) Notice of Corporate Events. If the Company (i) declares a dividend or any other distribution of
cash, securities or other property in respect of its Common Stock, including without limitation any
granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any
Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits
shareholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution,
liquidation or winding up of the affairs of the Company, then the Company shall deliver to the
Holder a notice describing the material terms and conditions of such transaction, at least 20
calendar days prior to the applicable record or effective date on which a Person would need to hold
Common Stock in order to participate in or vote with respect to such transaction, and the Company
will take all steps reasonably necessary in order to insure that the Holder is given the practical
opportunity to exercise this Warrant prior to such time so as to participate in or vote with
respect to such transaction; provided, however, that the failure to deliver such notice or any
defect therein shall not affect the validity of the corporate action required to be described in
such notice.

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9. Payment of Exercise Price. The Holder may pay the Exercise Price in one of the following
manners:

(a) Cash Exercise. The Holder may deliver immediately available funds; or

(b) Cashless Exercise. The Holder may notify the Company in an Exercise Notice of its election to
utilize cashless exercise, in which event the Company shall issue to the Holder the number of
Warrant Shares determined as follows:

X = Y [(A-B)/A]

where:

X = the number of Warrant Shares to be issued to the Holder.

Y = the number of Warrant Shares with respect to which this Warrant is being exercised.

A = the average of the closing prices for the five Trading Days immediately prior to (but not
including) the Exercise Date.

B = the Exercise Price.

For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and
acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to
have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to
have commenced, on the date this Warrant was originally issued.

10. No Fractional Shares. No fractional shares of Warrant Shares will be issued in connection with
any exercise of this Warrant. In lieu of any fractional shares which would, otherwise be issuable,
the Company shall pay cash equal to the product of such fraction multiplied by the closing price of
one Warrant Share as reported by the applicable Trading Market on the date of exercise.

11. Notices. Any and all notices or other communications or deliveries hereunder (including,
without limitation, any Exercise Notice) shall be in writing and shall be deemed given and
effective on the earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number specified in this Section prior to 6:30 p.m.
(Pacific time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number specified in this
Section on a day that is not a Trading Day or later than 6:30 p.m. (Pacific time) on any Trading
Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized
overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required
to be given. The addresses for such communications shall be: (i) if to the Company, 175 N.
Riverview Drive, Anaheim, CA 92808 Attn: Chief Financial Officer, Fax: (714) 283-6767, or (ii) if
to the Holder, to the address or facsimile number appearing on the Warrant Register or such other
address or facsimile number as the Holder may provide to the Company in accordance with this
Section.

10

 

12. Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon 30 days’
notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the
Company or any new warrant agent may be merged or any corporation resulting from any consolidation
to which the Company or any new warrant agent shall be a party or any corporation to which the
Company or any new warrant agent transfers substantially all of its corporate trust or shareholders
services business shall be a successor warrant agent under this Warrant without any further act.
Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to
be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as
shown on the Warrant Register.

13. Miscellaneous.

(a) This Warrant shall be binding on and inure to the benefit of the parties hereto and their
respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall
be construed to give to any Person other than the Company and the Holder any legal or equitable
right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing
signed by the Company and the Holder and their successors and assigns.

(b) All questions concerning the construction, validity, enforcement and interpretation of this
Warrant shall be governed by and construed and enforced in accordance with the internal laws of the
State of California, without regard to the principles of conflicts of law thereof. Each party
agrees that all legal proceedings concerning the interpretations, enforcement and defense of this
Warrant and the transactions herein contemplated (“PROCEEDINGS”) (whether brought against a party
hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the
state and federal courts sitting in the Counties of Los Angeles or Orange, California (the
“CALIFORNIA COURTS”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of
the California Courts for the adjudication of any dispute hereunder or in connection herewith or
with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any Proceeding, any claim that it is not personally subject to the
jurisdiction of any California Court, or that such Proceeding has been commenced in an improper or
inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and
consents to process being served in any such Proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Warrant and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law. Each party hereto hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial
by jury in any legal proceeding arising out of or relating to this Warrant or the transactions
contemplated hereby. If either party shall commence a Proceeding to enforce any provisions of this
Warrant, then the prevailing party in such Proceeding shall be reimbursed by the other party for
its attorney’s fees and other costs and expenses incurred with the investigation, preparation and
prosecution of such Proceeding.

(c) The headings herein are for convenience only, do not constitute a part of this Warrant and
shall not be deemed to limit or affect any of the provisions hereof.

11

 

(d) In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in
any respect, the validity and enforceability of the remaining terms and provisions of this Warrant
shall not in any way be affected or impaired thereby and the parties will attempt in good faith to
agree upon a valid and enforceable provision which shall be a commercially reasonable substitute
therefore, and upon so agreeing, shall incorporate such substitute provision in this Warrant.

(e) Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to
them in the Plan.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized
officer as of the date first indicated above.

	 	 	 	 	 
	 	COMPANY

Signature Group Holdings, Inc.,

a Nevada Corporation
 	 
	 
	 	By:  	 	 
	 
	 	Name:  	Richard A. Sanchez	 
	 
	 	Title:  	Interim President and Interim

Chief Executive Officer	 
	 

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EXERCISE NOTICE

To Signature Group Holdings, Inc.:

The undersigned hereby irrevocably elects to purchase                                          shares of common stock, par
value $1.03 per share, of Signature Group Holdings, Inc. (“COMMON STOCK”), pursuant to Warrant No.
SW-                    , originally issued June                     , 2010 (the “WARRANT”), and, if such Holder is not utilizing the
cashless exercise provisions set forth in the Warrant, encloses herewith $                     in cash,
certified or official bank check or checks or other immediately available funds, which sum
represents the aggregate Exercise Price (as defined in the Warrant) for the number of shares of
Common Stock to which this Exercise Notice relates, together with any applicable taxes payable by
the undersigned pursuant to the Warrant.

The undersigned requests that certificates for the shares of Common Stock issuable upon this
exercise be issued in the name of

PLEASE INSERT SOCIAL SECURITY OR

TAX IDENTIFICATION NUMBER

(Please print name and address)

14

 

FORM OF ASSIGNMENT

[To be completed and signed only upon transfer of Warrant]

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ______
the right represented by the within Warrant to purchase ______shares of Common Stock of
Signature Group Holdings, Inc. to which the within Warrant relates and appoints ______
attorney to transfer said right on the books of the Company with full power of substitution in the
premises.

Dated:                                         ,                     

	 	 	 	 	 

	 

	 	 

(Signature must conform in all respects
	 	 
	 

	 	to name of holder as specified on the	 	 
	 

	 	face of the Warrant)	 	 

Address of Transferee

In the presence of:

15exv10w3

Exhibit 10.3

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered into as of                                          ___, 2010
by and among the Company (as defined below) and the investors listed on Exhibit A to this Agreement
(each an “Investor” and collectively, the “Investors”).

RECITALS

     WHEREAS, the form of this Agreement was submitted as a part of the Signature Group Holdings,
LLC’s Chapter 11 Fourth Amended Plan of Reorganization of Fremont General Corporation, Joined by
James McIntyre as Co-Plan Proponent, Dated June 8, 2010 (the “Plan”), which provides for the
reorganization of Fremont General Corporation, a Nevada Corporation (as reorganized pursuant to the
Plan and now known as Signature Group Holdings, Inc., the “Company”); and

     WHEREAS, in connection with the consummation of the transactions contemplated by the Plan,
including the sale of Common Stock and Warrants to the Investors, the parties desire to enter into
this Agreement in order to grant certain registration rights to the Investors as set forth below.

     NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

SECTION 1 GENERAL

     1.1 Definitions. Capitalized terms not otherwise defined herein shall have the
meanings ascribed to those terms in the Plan. As used in this Agreement, the following terms shall
have the following respective meanings:

     “Affiliate” of any particular Person means any other Person controlling, controlled by or
under common control with such particular person or entity.

     “Common Stock” means shares of common stock, $0.01 par value per share, of the Company.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or similar federal
statute, and the rules and regulations of the Commission thereunder, all as the same shall be in
effect at the time.

     “Form S-3” means such form under the Securities Act as in effect on the date hereof or any
successor or similar registration form under the Securities Act subsequently adopted by the SEC
which permits inclusion or incorporation of substantial information by reference to other documents
filed by the Company with the SEC.

     “Holder” means any Investor who holds Registrable Securities and any holder of Registrable
Securities to whom the registration rights conferred by this Agreement have been transferred in
compliance with Section 2.8 hereof.

     “Person” means any individual, corporation, partnership, joint venture, limited liability
company, business trust, joint stock company, trust or unincorporated organization or any
government or any agency or political subdivision thereof.

     “Register,” “registered,” and “registration” shall refer to a registration effected by
preparing

1

 

and filing a registration statement in compliance with the Securities Act and applicable rules and
regulations thereunder, and the declaration or ordering of effectiveness of such registration
statement.

     “Registrable Securities” means (a) the Shares; and (b) any Common Stock issued as (or issuable
upon the conversion or exercise of any warrant, right, preferred stock or other security which is
issued as) a dividend or other distribution with respect to, or in exchange for or in replacement
of, the Shares held by the Holders provided, however, that Registrable Securities shall not include
any shares of Common Stock (i) which have been sold to the public by a Holder either pursuant to a
registration statement or Rule 144 under the Securities Act; (ii) which have been sold in a private
transaction in which the transferor’s rights under this Agreement are not assigned in compliance
with the terms of this Agreement; or (iii) which may be sold pursuant to Rule 144 and otherwise
without restriction or limitation pursuant to Rule 144 (or any successor thereto) under the
Securities Act, after taking into account any Holders’ status as an Affiliate of the Company as
determined by counsel to the Company pursuant to a written opinion letter addressed to the
Company’s transfer agent to such effect.

     “Registrable Securities then outstanding” shall be the number of shares determined by
calculating the total number of shares of Common Stock that are Registrable Securities issued and
outstanding.

     “Registration Expenses” shall mean all expenses incurred by the Company in effecting any
registration pursuant to this Agreement (including any Mandatory Registration or Shelf
Registration), including, without limitation, all registration and filing fees, printing expenses,
fees and disbursements of counsel for the Company, blue sky fees and expenses, and expenses of the
Company’s independent accountants in connection with any regular or special reviews or audits
incident to or required by any such registration, and fees and expenses of underwriters (excluding
discounts and commissions) and any other Persons retained by the Company, but shall not include
Selling Expenses, certain fees and disbursements of counsel for the Holders (except as set forth
below) and the compensation of regular employees of the Company, which shall be paid in any event
by the Company.

     “SEC” or “Commission” means the Securities and Exchange Commission.

     “Securities Act” shall mean the Securities Act of 1933, as amended, or similar federal
statute, and the rules and regulations of the Commission thereunder, all as the same shall be in
effect at the time.

     “Selling Expenses” shall mean all underwriting discounts, selling commissions, fees of
underwriters, selling brokers, dealer managers and similar securities industry professionals and
stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of
counsel for any Holder (other than the fees and disbursements of counsel included in Registration
Expenses).

     “Shares” mean shares of Common Stock to be issued by the Company to the Investors in
accordance with the terms of the Plan or the Warrants.

     “Trading Day” means a day on which the principal securities exchange or automated quotation
system upon which the Registrable Securities are then listed for public trading) shall be open for
business.

     “Warrants” means the warrants issued pursuant to the Plan to the Investors, to purchase an
aggregate of 15,000,000 shares of Common Stock.

2

 

SECTION 2 REGISTRATION

     2.1 Registration

          (a) In accordance with the requirements of Section 2.3 below, the Company shall use its
commercially reasonable efforts to file with the SEC, and to cause to be declared effective by the
SEC, a registration statement on the applicable SEC form with respect to the resale from time to
time, whether underwritten or otherwise, of the Registrable Securities by the Holders thereof. The
Company shall also use its commercially reasonable efforts to maintain the effectiveness of the
registration effected pursuant to this Section 2.1 and keep such registration statement free of any
material misstatements or omissions at all times, subject only to the limitations on effectiveness
set forth below. The registration contemplated by this Section 2.1 is referred to herein as the
“Mandatory Registration.” The Mandatory Registration shall be filed with the SEC in accordance with
and pursuant to Rule 415 promulgated under the Securities Act (or any successor rule then in
effect) (a “Shelf Registration”). The Company shall use its commercially reasonable efforts to
cause the registration statement filed on Form S-3 or any similar short-form registration as the
Company may elect to remain effective until such date (the “Shelf Termination Date”) as is the
earlier of (i) the date on which all Registrable Securities included in the registration statement
shall have been sold or shall have otherwise ceased to be Registrable Securities and (ii) the date
on which all remaining Registrable Securities may be sold pursuant to Rule 144 and otherwise
without restriction or limitation pursuant to Rule 144 (or any successor thereto) under the
Securities Act, after taking into account any Holders’ status as an Affiliate of the Company as
determined by counsel to the Company pursuant to a written opinion letter addressed to the
Company’s transfer agent to such effect. If the Company is not then eligible to register for
resale the Registrable Securities on Form S-3, such registration shall be on another appropriate
form in accordance herewith. In the event the Mandatory Registration must be effected on Form S-1
or any similar long-form registration as the Company may elect, the Company shall use commercially
reasonable efforts to file such registration as a Shelf Registration and the Company shall use its
commercially reasonable efforts to keep such registration current and effective, including by
filing periodic post-effective amendments to update the financial statements contained in such
registration statement in accordance with Regulation S-X promulgated under the Securities Act until
the Shelf Termination Date. By 9:30 a.m. on the Trading Day immediately following the effective
date of the applicable registration statement, the Company shall file with the Commission in
accordance with Rule 424 under the Securities Act the final prospectus to be used in connection
with sales pursuant to such registration statement.

          (b) Without the written consent of the Investors, the Company shall not include securities,
whether on behalf of itself or any other person, other then the Registrable Securities on any
registration statement filed pursuant to this Section 2.

          (c) Notwithstanding anything to the contrary contained in this Agreement, in the event the
Commission seeks to characterize any offering pursuant to a Mandatory Registration filed pursuant
to this Agreement as constituting an offering of securities by or on behalf of the Company, or in
any other manner, such that the Commission does not permit such registration statement to become
effective and used for resales in a manner that does not constitute such an offering and that
permits the continuous resale at the market by the Holders participating therein (or as otherwise
may be acceptable to each Holder) without being named therein as an “underwriter,” then the Company
shall reduce the number of shares to be included in such registration statement until such time as
the Commission shall so permit such registration statement to become effective as aforesaid. In
making such reduction, the Company shall then reduce the number of shares to be included by all
Holders of Registrable Securities on a pro rata basis (based upon the number of Registrable
Securities otherwise required to be included for each such Holder). As soon as reasonably
practicable thereafter (as permitted by the

3

 

Commission), the Company shall register the additional Registrable Securities on such additional
registration statements as may be required to register the resale of all of the Registrable
Securities (to the extent it can without causing the foregoing problem). In no event shall a Holder
be required to be named as an “underwriter” in a registration statement without such Holder’s prior
written consent.

     2.2 Expenses of Registration. All reasonable Registration Expenses incurred in
connection with any registration, qualification or compliance hereunder shall be borne by the
Company. All Selling Expenses incurred in connection with any registrations hereunder, shall be
borne by the Holders of the Registrable Securities so registered pro rata on the basis of the
number of shares so registered.

     2.3 Additional Obligations of the Company. The Company shall:

          (a) After the closing of the sale of the Common Stock and the Warrant (the “Closing Date”),
prepare and file with the SEC a registration statement on Form S-3 (or on Form S-1, if the Company
is not eligible to use Form S-3), and all amendments and supplements thereto and related
prospectuses as may be necessary to comply with applicable securities laws, with respect to such
Registrable Securities and use its best efforts to cause such registration statement to become
effective within six (6) months after the Closing Date (provided that at least three (3) Trading
Days before filing a registration statement or prospectus or any amendments or supplements thereto,
the Company shall furnish to the counsel selected by the Holders of a majority of the Registrable
Securities covered by such registration statement copies of all such documents proposed to be
filed, and the Company shall in good faith consider any reasonable comments of such counsel).

          (b) Promptly notify the Holders (i) when the Company has been notified by the Commission
whether or not a registration statement or any amendment thereto will be subject to a review by the
Commission and (ii) if reviewed, when the Company has been notified by the Commission that a
registration statement or amendment thereto will not be subject to further review. Upon the request
of a Holder, the Company shall provide such Holder true and complete copies of all correspondence
from and to the Commission relating to a registration statement (with all material, non-public
information regarding the Company redacted from such copies). The Company shall respond as promptly
as reasonably practicable to any comments received from the Commission with respect to the
registration statement or any amendments thereto. The Company shall promptly file with the
Commission a request for acceleration of effectiveness in accordance with Rule 461 promulgated
under the Securities Act after the Company is notified (orally or in writing, whichever is earlier)
by the Commission that a registration statement will not be reviewed, or will not be subject to
further review, such that the Registration Statement shall be declared effective no later than
seven (7) Trading Days after such notification.

          (c) Furnish to the Investors and Holders such number of copies of a prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities Act, and such other
documents as they may reasonably request in order to facilitate the disposition of Registrable
Securities owned by them.

          (d) Use its commercially reasonable efforts to register and qualify the securities covered by
such registration statement under such other securities or Blue Sky laws of such jurisdictions as
shall be reasonably requested by the Holders unless an exemption from registration and
qualification exists; provided that the Company shall not be required in connection therewith or as
a condition thereto to qualify to do business, file a general consent to service of process or
subject itself to general taxation in any such states or jurisdictions.

          (e) In the event of any underwritten public offering, enter into and perform its obligations

4

 

under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of
such offering. Each Investor and/or Holder participating in such underwriting shall also enter into
and perform its obligations under such an agreement.

          (f) Promptly notify each Investor who holds, and each Holder of Registrable Securities covered
by the registration statement at any time when a prospectus relating thereto is required to be
delivered under the Securities Act of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then existing (provided
that in no event shall such notice contain any material, non-public information regarding the
Company) and, the Company shall promptly prepare and furnish to each such Holder a reasonable
number of copies of a supplement or amendment to such prospectus so that, as thereafter delivered
to the purchasers of such Registrable Securities, such prospectus shall not contain an untrue
statement of a material fact or omit to state a fact necessary to make the statements therein not
misleading in light of the circumstances under which they were made.

          (g) Use its commercially reasonable efforts to furnish, on the date that such Registrable
Securities are delivered to the underwriters for sale, if such securities are being sold through
underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company for
the purposes of such registration, in form and substance as is customarily given to underwriters in
an underwritten public offering, addressed to the underwriters, if any, and (ii) a letter dated as
of such date, from the independent registered public accountants of the Company, in form and
substance as is customarily given by independent registered public accountants to underwriters in
an underwritten public offering addressed to the underwriters.

          (h) Use its commercially reasonable efforts to (i) prevent the issuance of any stop order or
other suspension of effectiveness of a registration statement, or the suspension of the
qualification of any of the Registrable Securities for sale in any jurisdiction in the United
States, and (ii) in the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or any order suspending or preventing the use of any related prospectus or
suspending the qualification of any equity securities included in such registration statement for
sale in any jurisdiction, the Company shall use its commercially reasonable efforts promptly to
obtain the withdrawal of such order.

          (i) Use its commercially reasonable efforts to cooperate with the Holders who hold Registrable
Securities being offered and, to the extent applicable, facilitate the timely preparation and
delivery of certificates (not bearing any restrictive legend) representing the Registrable
Securities to be offered pursuant to a Registration Statement and enable such certificates to be in
such denominations or amounts, as the case may be, as the Holders may reasonably request and,
registered in such names as the Holders may request.

          (j) Provide and cause to be maintained a registrar and transfer agent for all Registrable
Securities covered by any registration statement from and after a date not later than the effective
date of such registration statement.

          (k) Use its commercially reasonable efforts to maintain eligibility to use Form S-3 (or any
successor form thereto) for the registration of the resale of the Registrable Securities.

          (l) Not, nor shall any Subsidiary or affiliate thereof, identify any Investor as an
underwriter in any public disclosure or filing with the SEC without the Investor’s written consent,
and any Investor being deemed an underwriter by the SEC shall not relieve the Company of any
obligations it has under this Agreement or any other transaction document contemplated by the Plan.

5

 

     2.4 Suspension of Sales. Upon receipt of written notice from the Company that the
registration statement or a prospectus contains an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the statements therein not
misleading (a “Misstatement”), each Investor who holds, and each Holder of, Registrable Securities
shall forthwith discontinue disposition of Registrable Securities until such Investor and/or Holder
has received copies of the supplemented or amended prospectus that corrects such Misstatement, or
until such Investor and/or Holder is advised in writing by the Company that the use of the
prospectus may be resumed, and, if so directed by the Company, such Investor and/or Holder shall
deliver to the Company all copies, other than permanent file copies then in such Investor’s or
Holder’s possession, of the prospectus covering such Registrable Securities current at the time of
receipt of such notice. The Company will not suspend the sales under the prospectus more than two
times in any three hundred-sixty-five (365) day period and the total number of days that any such
suspension may be in effect in any three hundred-sixty-five (365) day period shall not exceed 90
days.

     2.5 Termination of Registration Rights. An Investor’s and a Holder’s registration
rights shall expire if all Registrable Securities held by such Investor or Holder (and its
Affiliates, partners, members and former members) may be sold pursuant to Rule 144 without the
requirement to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation
pursuant to Rule 144 (or any successor thereto) under the Securities Act, after taking into account
any Holder’s status as an Affiliate of the Company as determined by counsel to the Company pursuant
to a written opinion letter addressed to the Company’s transfer agent to such effect (provided at
least 12 months have lapsed since the Registrable Securities were acquired form the Company, as
calculated in accordance with Rule 144). Termination of such registration rights shall be
conditioned upon the Company’s action to remove the restrictive legends from any Registrable
Securities held by such Investor or Holder and the reissuance of unlegended certificates, in
physical or electronic format, to such Investor or Holder.

     2.6 Furnishing Information. It shall be a condition precedent to the obligations of
the Company to take any action pursuant to Section 2.1 or 2.3 that the selling Investors and/or
Holders shall furnish to the Company such information regarding themselves, the Registrable
Securities held by them and the intended method of disposition of such securities as shall be
required to effect the registration of their Registrable Securities.

     2.7 Indemnification. In the event any Registrable Securities are included in a
registration statement under this Section 2:

          (a) To the extent permitted by law, the Company will indemnify and hold harmless each
Investor, Holder, any underwriter (as defined in the Securities Act) for such Investor or Holder
and each person, if any, who controls such Investor or Holder or underwriter within the meaning of
the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint
or several) to which they may become subject under the Securities Act, or the Exchange Act or other
federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements, omissions or
violations (collectively, a “Violation”): (i) any untrue statement or alleged untrue statement of a
material fact contained in such registration statement, including any preliminary prospectus or
final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or
alleged omission to state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged violation by the
Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation
promulgated under the Securities Act, the Exchange Act or any state securities law in connection
with the registration of the Registrable Securities; and the Company will pay to each such
Investor, Holder, underwriter or controlling person, as accrued any legal or other expenses

6

 

reasonably incurred by them in connection with investigating or defending any such loss, claim,
damage, liability, or action; provided, however, that the indemnity agreement contained in this
Section 2.7(a) shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability, or action if such settlement is effected without the consent of the Company (which
consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for
any such loss, claim, damage, liability, or action to the extent that it arises out of or is based
upon a Violation which occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration statement by any such Investor, Holder,
underwriter or controlling person or any failure of such person to deliver or cause to be delivered
a prospectus made available by the Company in a timely manner.

          (b) To the extent permitted by law and provided that such Holder is not entitled to
indemnification pursuant to Section 2.7(a) above with respect to such matter, each selling Investor
or Holder (severally and not jointly) will indemnify and hold harmless the Company, each of its
directors, officers, persons, if any, who control the Company within the meaning of the Securities
Act, any underwriter, any other Investor or Holder selling securities in such registration
statement and any controlling person of any such underwriter or other Investor or Holder, against
any losses, claims, damages, or liabilities to which any of the foregoing persons may become
subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such
losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based
upon any (i) untrue statement or alleged untrue statement of a material fact regarding such Holder
and provided in writing by such Holder which is contained in such registration statement, including
any preliminary prospectus or final prospectus contained therein or any amendments or supplements
thereto or (ii) the omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading, in each case to the
extent (and only to the extent) that such untrue statement or alleged untrue statement or omission
or alleged omission was made in such registration statement, preliminary or final prospectus,
amendment or supplement thereto, in reliance upon and in conformity with written information
furnished by such Investor or Holder expressly for use in connection with such registration
statement; and each such Investor or Holder will pay, as accrued, any legal or other expenses
reasonably incurred by any Person intended to be indemnified pursuant to this Section 2.7(b), in
connection with investigating or defending any such loss, claim, damage, liability, or action as a
result of such Holder’s untrue statement or omission; provided, however, that the indemnity
agreement contained in this Section 2.7(b) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected without the consent of
the Investor or Holder (which consent shall not be unreasonably withheld); provided, that, (x) the
indemnification obligations in this Section 2.7(b) shall be individual and ratable not joint and
several for each Holder and (y) in no event shall the aggregate of all indemnification payments by
any Investor and/or Holder under this Section 2.7(b) exceed the net proceeds from the offering
received by such Investor and/or Holder.

          (c) Promptly after receipt by an indemnified party under this Section 2.7 of notice of the
commencement of any action (including any governmental action), such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this Section 2.7,
deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying
party shall have the right to participate in, and, to the extent the indemnifying party so desires,
jointly with any other indemnifying party similarly noticed, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties which may be represented without conflict by one
counsel) shall have the right to retain one separate counsel, with the reasonable fees and expenses
of such counsel to be paid by the indemnifying party, if (i) the indemnifying party shall have
failed to assume the defense of such claim within seven (7) days after receipt of notice of the
claim and to employ counsel reasonably satisfactory to such indemnified party, as the case

7

 

may be; or (ii) in the reasonable opinion of counsel retained by the indemnifying party,
representation of such indemnified party by such counsel would be inappropriate due to actual or
potential differing interests between such indemnified party and any other party represented by
such counsel in such proceeding. The indemnified party shall cooperate fully with the indemnifying
party in connection with any negotiation or defense of any such action or claim by the indemnifying
party and shall furnish to the indemnifying party all information reasonably available to the
indemnified party which relates to such action or claim. The indemnifying party shall keep the
indemnified party reasonably apprised of the status of the defense or any settlement negotiations
with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim
or proceeding effected without its prior written consent; provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its consent. The failure to deliver
written notice to the indemnifying party within a reasonable time of the commencement of any such
action shall not relieve such indemnifying party of any liability to the indemnified party under
this Section 2.8, except to the extent such failure to give notice has a material adverse effect on
the ability of the indemnifying party to defend such action.

          (d) If the indemnification provided for in this Section 2.7 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim,
damage, or expense referred to therein, then the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified
party as a result of such loss, liability, claim, damage, or expense in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of the
indemnified party on the other in connection with the statements or omissions that resulted in such
loss, liability, claim, damage, or expense as well as any other relevant equitable considerations.
The relative fault of the indemnifying party and of the indemnified party shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the indemnifying party
or by the indemnified party and the parties’ relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, the
amount any Investor or Holder will be obligated to contribute pursuant to this Section 2.7(d) will
be limited to an amount equal to the per share public offering price (less any underwriting
discount and commissions) multiplied by the number of shares of Registrable Securities sold by such
Investor or Holder pursuant to the registration statement which gives rise to such obligation to
contribute (less the aggregate amount of any damages which such Investor or Holder has otherwise
been required to pay in respect of such loss, liability, claim, damage, or expense or any
substantially similar loss, liability, claim, damage, or expense arising from the sale of such
Registrable Securities). No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) will be entitled to contribution hereunder from any person who
was not guilty of such fraudulent misrepresentation.

          (e) The obligations of the Company and Holders under this Section 2.7 shall survive the
completion of any offering of Registrable Securities in a registration statement under this Section
2, and otherwise.

     2.8 Assignment of Registration Rights. The rights to cause the Company to register
Registrable Securities pursuant to this Agreement may be assigned by an Investor or Holder to a
transferee or assignee of Registrable Securities to which (a) such transferee is an investment
advisory client, Affiliate, subsidiary or parent company, family member or family trust for the
benefit of a party hereto, (b) such transferee shares a common discretionary investment advisor
with such Investor or Holder, or (c) such transferee or transferees are partners or members of an
Investor or Holder, who agree to act through a single representative; provided, however, (i) the
transferor shall furnish to the Company written notice of the name and address of such transferee
or assignee and the securities with respect to which such registration rights are being assigned

8

 

and (ii) such transferee shall agree to be subject to all restrictions set forth in this Agreement.

     2.9 Rule 144 Reporting. With a view to making available to the Investors and Holders
the benefits of certain rules and regulations of the SEC which may permit the sale of the
Registrable Securities to the public without registration, the Company agrees to use its best
efforts to:

          (a) make and keep public information available, as those terms are understood and defined in
SEC Rule 144 or any similar or analogous rule promulgated under the Securities Act, at all times
after the effective date of this Agreement;

          (b) file with the SEC, in a timely manner, all reports and other documents required of the
Company under the Exchange Act; and

          (c) so long as an Investor or Holder owns any Registrable Securities, furnish to such Investor
or Holder forthwith upon request: a written statement by the Company as to its compliance with the
reporting requirements of Rule 144 under the Securities Act, and of the Exchange Act; a copy of the
most recent annual or quarterly report of the Company; and such other reports and documents as an
Investor or Holder may reasonably request in availing itself of any rule or regulation of the SEC
allowing it to sell any such securities without registration.

     2.10 Obligations of the Holders

          (a) Each Holder shall furnish in writing to the Company such information regarding itself, the
Registrable Securities held by it and the intended method of disposition of the Registrable
Securities held by it as shall be reasonably required to effect the registration of such
Registrable Securities and shall execute such documents in connection with such registration as the
Company may reasonably request. In connection therewith, upon the execution of this Agreement, each
Holder shall complete, execute and deliver to the Company a selling securityholder notice and
questionnaire in form reasonably satisfactory to the Company. At least five (5) business days prior
to the first anticipated filing date of any Registration Statement, the Company shall notify each
Holder of any additional information the Company requires from such Holder if such Holder elects to
have any of the Registrable Securities included in the Registration Statement. A Holder shall
provide such information to the Company at least two (2) business days prior to the first
anticipated filing date of such Registration Statement if such Holder elects to have any of the
Registrable Securities included in the Registration Statement.

          (b) Each Holder, by its acceptance of the Registrable Securities agrees to cooperate with the
Company as reasonably requested by the Company in connection with the preparation and filing of a
Registration Statement hereunder, unless such Holder has notified the Company in writing of its
election to exclude all of its Registrable Securities from such Registration Statement.

          (c) Each Holder covenants and agrees that it shall comply with the prospectus delivery
requirements of the 1933 Act as applicable to it in connection with sales of Registrable Securities
pursuant to any Registration Statement.

SECTION 3 MISCELLANEOUS

     3.1 Successors and Assigns. Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties (including transferees of any shares of Registrable
Securities). Nothing in this Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities

9

 

under or by reason of this Agreement, except as expressly provided in this Agreement.

     3.2 Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be governed by the internal laws of the State of
California, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of California or any other jurisdictions) that would cause the application of
the laws of any jurisdictions other than the State of California.

     3.3 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     3.4 Titles and Subtitles. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement.

     3.5 Notices. Unless otherwise provided, any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given upon personal delivery to
the party to be notified or upon deposit with the United States Post Office, by registered or
certified mail, postage prepaid and addressed to the party to be notified at the address indicated
for such party on the signature page hereof, or at such other address as such party may designate
by ten (10) days’ advance written notice to the other parties.

     3.6 Expenses. If any action at law or in equity is necessary to enforce or interpret
the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees,
costs and necessary disbursements in addition to any other relief to which such party may be
entitled.

     3.7 Amendments and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of the Company
and the holders of a majority of the Registrable Securities then outstanding. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each Holder of any
Registrable Securities then outstanding, each future Holder of all such Registrable Securities, and
the Company. No such amendment shall be effective to the extent that it applies to less than all of
the holders of the Registrable Securities. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of this Agreement unless the same
consideration also is offered to all of the parties to this Agreement.

     3.8 Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

     3.9 Aggregation of Stock. All shares of Registrable Securities held or acquired by any
Investors which are Affiliates shall be aggregated together for the purpose of determining the
availability of any rights under this Agreement.

     3.10 Entire Agreement. This Agreement constitutes the full and entire understanding
and agreement between the parties with regard to the subject matter hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date set forth in the first paragraph hereof.

	 	 	 	 	 	 	 

	 	 	“COMPANY”	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	“INVESTOR”	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

11

 

Exhibit A

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]