Document:

Exhibit 10.1

 Exhibit 10.1 
 EXECUTION COPY 
 SETTLEMENT AGREEMENT AND MUTUAL GENERAL
RELEASE 
 This Settlement Agreement (“Agreement”) between Signature Group Holdings, Inc. (“Signature”), Kingstown
Capital Partners, LLC, Kingstown Master Partners, LTD, Kingstown Partners II, L.P., Ktown LP, Kingstown Capital Management L.P., and Kingstown Management GP LLC (collectively “Kingstown”) (“Signature” and “Kingstown”
being collectively referred to as the “Parties”) in connection with the arrangement of a block trade of the Signature common shares currently owned by Kingstown. 
 Recitals 
 WHEREAS, Kingstown currently owns 5,298,772 shares of Signature
common stock (the “Kingstown Shares”). 
 WHEREAS, Kingstown recently informed Signature that it expressed a desire to find a
purchaser of these 5,298,772 shares of Signature common stock. 
 WHEREAS, Signature maintains a Rights Agreement, by and between
Signature and Mellon Investor Services LLC, as rights agent, dated October 23, 2007, as amended (the “Rights Agreement”) to protect its net operating loss carryforward by deterring any one shareholder from accumulating 5% or more
beneficial ownership of the Signature’s common stock to protect against the creation of “Shareholder Groups” as defined by Internal Revenue Code Section 382, by allowing Signature to issue new shares to all of the other existing
shareholders at a discount, thereby diluting the shareholder(s) who would otherwise violate the provisions set forth in the Rights Agreement. 

WHEREAS, Certain members of Kingstown currently have an appeal pending before the United States Bankruptcy Appellate Panel of the Ninth Circuit of
the United States Bankruptcy Court for the Central District Court of California’s Order Granting Signature’s Motion to Clarify, Interpret and Enforce the Confirmation Order and the Plan Consistent with the Rights Agreement and Retained
Equity Rights (the “Bankruptcy Appeal”). 
 WHEREAS, the Signature Board of Directors (the “Board”) continues to
evaluate whether Mr. James A. McIntyre (“McIntyre”), Kingstown and other persons and entities affiliated therewith (as identified in the Schedule 13D filed by Kingstown with the Securities and Exchange Commission on July 15,
2011), should be determined to be an “Acquiring Person” (as defined in the Rights Agreement) and if such determination is made, whether a “Distribution Date” (as defined in the Rights Agreement) for the distribution of securities
under and pursuant to the Rights Agreement will occur. 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound hereby, and covenanting to act in good faith,
agree as follows: 

 Terms 

 

	1.	Identification of Purchaser of the Kingstown Shares. Signature shall make good faith efforts to identify and provide to Kingstown contact information for one or
more qualified investors or their representatives (“Investors”) interested in acquiring the Kingstown Shares. 

  

	2.	Kingstown Consideration. Kingstown agrees that in exchange for and subject to the closing of any transaction for purchase of all of the Kingstown Shares by one
or more Investors, Kingstown (on behalf of itself and not on behalf of any other party to the Bankruptcy Appeal) shall, within 5 days of the transaction closing date, take all reasonable steps for dismissal of its Bankruptcy Appeal.

  

	3.	Signature Consideration. Signature agrees that upon the completion of the acquisition(s) of all the Kingstown Shares by one or more Investors and subject to and
simultaneous with the dismissal of Kingstown’s Bankruptcy Appeal (on behalf of itself and not on behalf of any other party to the Bankruptcy Appeal), the Board will acknowledge and affirm that Kingstown is not an Acquiring Person, that the
prior activities of Kingstown, including the execution of the Solicitation Agreement between McIntyre and Kingstown in July 2011 and the other matters described in Kingstown’s Schedule 13D amendments, shall have not triggered and shall not
trigger a distribution of rights under and pursuant to the Rights Agreement and that a Distribution Date will not occur as a result of the prior activities of Kingstown; 

 

	4.	Mutual General Release. Upon the completed performance of the Parties’ respective obligations in paragraphs 2 and 3 of this Agreement, the Parties release
and forever discharge each other, and each of their past and present predecessors, successors, affiliates, subsidiaries, parents, insurers, officers, directors, employees, heirs, assigns, agents, and attorneys from any and all known and unknown
claims, disputes, demands, debts, liabilities, obligations, contracts, agreements, causes of action, suits, attorneys’ fees and/or costs, of whatever nature, character or description, which the Parties had, now have, or may have related to
their prior conduct and/or any of the matters which arise out of, from, asserted in, or which could have been asserted in connection with their prior conduct, including but not limited to those in connection with the Rights Agreement (the
“Released Claims”); provided, however, that the Released Claims do not include (a) any claims or rights relating to the Parties’ performance of this Agreement and (b) Kingstown’s claims or rights as holder of the notes
payable maturing December 31, 2016, bearing 9.0% annual interest, payable quarterly commencing September 30, 2010 (the “Notes Payable”) issued pursuant to that certain indenture, dated June 11, 2010 between Signature and
Wells Fargo Bank, National Association, as Trustee (the “Indenture”). 

  

	5.	 Waiver of Claims. The Parties understand and agree that the Released Claims include not only those claims presently known but also include all
unknown or unanticipated claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character that would otherwise come within the scope of the Released Claims as described above. The Parties understand that
they may hereafter discover facts different 

  
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from or in addition to what they now believe to be true, which if known, could have materially affected their release of claims, but they nevertheless waive any claims or rights based on
different or additional facts. The Parties knowingly and voluntarily waive any and all rights or benefits that they may now have, or in the future may have, under the terms of Section 1542 of the California Civil Code, which provides as
follows: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.” For avoidance of doubt, nothing herein shall affect the rights or benefits Kingstown may now have or in the future may have as holder of the Notes Payable issued pursuant to the Indenture.

  

	6.	No Admission. The Parties’ execution of this Agreement is not an admission of any liability, fault or responsibility on the part of any released party. Any
settlement made pursuant to this Agreement is regarded by the Parties hereto as payment to avoid the expense, inconvenience and uncertainty of litigation. 

 

	7.	Consultation with Counsel. The Parties acknowledge that they have been represented by counsel of their own choice in the negotiations leading to their execution
of this Agreement, and that they have read this Agreement and have had it fully explained to them by their counsel. 

  

	8.	No Reliance. The Parties represent and warrant that, in executing and entering into this Agreement, they are not relying and have not relied upon any
representation, promise or statement made by anyone which is not recited, contained or embodied in this Agreement. Furthermore, each of the Parties to this Agreement has received independent legal advice, or has had the opportunity to receive
independent legal advice, from such Party’s attorneys with respect to the advisability of executing this Agreement. The Parties are entering into this Agreement wholly of their own free will and volition. 

 

	9.	Confidentiality. Except as required by law, order or subpoena, this Agreement shall be kept confidential and remain confidential under the same terms and
conditions as those in the Confidential Agreement executed between these same parties concerning the disclosure of Identified Investors. 

  

	10.	Remedies. It is understood and agreed that money damages would not be a sufficient remedy for any breach of this Agreement by a party or its representatives and
that the non-breaching party shall be entitled to specific performance as a remedy for any such breach. Such remedy shall not be deemed to be the exclusive remedy for any such breach but shall be in addition to all other remedies available at law or
equity to the non-breaching party. 

  

	11.	Entire Agreement. This Agreement shall constitute the entire agreement between the Parties with regard to the subject matter hereof. No modification, amendment
or waiver shall be binding without the written consent of both parties. 

  
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	12.	Governing Law and Venue. This Agreement shall be construed and enforced according to the laws of the State of California. Any dispute concerning this Agreement
shall be brought in a in a court with proper jurisdiction in Los Angeles, California. 

  

	13.	Miscellaneous. The obligations of the parties shall be binding on and inure to the benefit of their respective heirs, successors, assigns, and affiliates. This
Agreement may be amended or modified only by a subsequent agreement in writing. 

  

	14.	Counter-Party Signatures. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute the
same agreement. 

 The Signature Page Follows 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this 31st day of August, 2012.

 KINGSTOWN: 
  

			
	KINGSTOWN CAPITAL MANAGEMENT L.P.
		
	By:	 	 Kingstown Management GP LLC

its general partner

		
	By:	 	/s/ MICHAEL BLITZER
		 	 Michael Blitzer
 Managing
Member

	
	KINGSTOWN PARTNERS II, L.P.
		
	By:	 	 Kingstown Capital Partners LLC

its general partner

		
	By:	 	/s/ MICHAEL BLITZER
		 	 Michael Blitzer
 Managing
Member

	
	KTOWN, LP
		
	By:	 	 Kingstown Capital Partners LLC

its general partner

		
	By:	 	/s/ MICHAEL BLITZER
		 	 Michael Blitzer
 Managing
Member

	
	KINGSTOWN MANAGEMENT GP LLC
		
	By:	 	/s/ MICHAEL BLITZER
		 	 Michael Blitzer
 Managing
Member

  

  
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	KINGSTOWN CAPITAL PARTNERS, LLC
		
	By:	 	/s/ MICHAEL BLITZER
		 	 Michael Blitzer
 Managing
Member

	
	KINGSTOWN PARTNERS MASTER LTD.
		
	By:	 	/s/ MICHAEL BLITZER
		 	 Michael Blitzer

Director

 SIGNATURE: 
 Signature Group Holdings, Inc. 
  

			
	By:	 	/s/ CRAIG F. NOELL
		 	 Craig F. Noell
 Chief
Executive Officer and President

  
 6Exhibit 10.2

 Exhibit 10.2 
 SETTLEMENT AGREEMENT AND MUTUAL RELEASE 
 This Settlement Agreement
(“Agreement’') between Signature Group Holdings, Inc. (“Signature”) and James A. McIntyre, The James A, McIntyre Living Trust, the James A. McIntyre Grandchildren’s Trust and The McIntyre Foundation (collectively
“McIntyre”) in connection with a possible sale or sales of the Signature common shares currently owned by McIntyre. Signature and McIntyre are referred to collectively as the “Parties” 

Recitals 

WHEREAS, McIntyre currently owns approximately 11,203,394 shares of Signature common stock (the “McIntyre Shares”) as follows:

  

					
	 James A. McIntyre Living Trust
	  	 	9,344,599	  
	 James A. McIntyre Grandchildren’s Trust
	  	 	60,150	  
	 The McIntyre Foundation
	  	 	1,798,645	  

 WHEREAS, McIntyre recently informed Signature that it may seek one or more purchaser(s) of McIntyre Shares.

 WHEREAS, Signature takes the position that unless the Board of Directors grants a waiver, in its discretion, of the transfer
restrictions set forth in Section 8.2 of the Bylaws that Section 8.2 of the Signature Bylaws, prohibits any attempted transfer of the Company’s common stock to the extent that, as a result of such transfer (or any series of transfers)
(i) any person or group of persons shall become a “4.9-percent shareholder” of the Company or (ii) the ownership interests of any 4.9-percent shareholder shall be increased or (iii) any shareholder holding 5% or more of the
total market value of the Company’s common stock, transfers or agrees to transfer the Company’s common stock. The Parties continue to disagree on this matter; 
 WHEREAS, Signature currently has outstanding 120,143,247 of its common shares and 4.9% of that is 5,887,019; 
 WHEREAS, Signature maintains a Rights Agreement, by and between Signature and Mellon Investor Services LLC, as rights agent, dated October 23, 2007, as amended (the “Rights
Agreement”) to protect its net operating loss carry forward. 
 WHEREAS, McIntyre and others currently have an appeal pending before
the United States Bankruptcy Appellate Panel of the Ninth Circuit of the United States Bankruptcy Court for the Central District Court of California relating to a Santa Ana Division Order granting Signature’s Motion to Clarify, Interpret and
Enforce the Confirmation Order and the Plan Consistent with the Rights Agreement and Retained Equity Rights (the “Bankruptcy Appeal”); 
 WHEREAS McIntyre is the Plaintiff in a civil action seeking Declaratory and Injunctive Relief action relating to the Rights Agreement pending before the Second Judicial District Court of the State
of Nevada (the “Nevada Action”). 

  
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 WHEREAS, the Signature Board of Directors (the “Board”) continues to evaluate whether
McIntyre and Kingstown Capital Partners, LLC (“Kingstown") and other persons and entities affiliated therewith (as identified in the Schedule 13D filed by Kingstown with the Securities and Exchange Commission on July 15, 2011), should be
determined to be an ‘‘Acquiring Person” (as defined in the Rights Agreement) and if such determination is made, whether a “Distribution Date" (as defined in the Rights Agreement) for the distribution of securities under and
pursuant to the Rights Agreement will occur. McIntyre’s believes that such a determination would be contrary to the terms of the Rights Agreement and contrary to applicable law. The Parties continue to disagree on this issue. 

NOW THEREFORE BE IT AGREED AS FOLLOWS: 
  

	1.	Facilitation of the Sale of McIntyre Shares. Signature shall cooperate in all respects and make good faith efforts to facilitate the sale of McIntyre Shares and
to identify and provide to McIntyre the names of investors (“Investors”) interested in acquiring the McIntyre Shares. 

  

	2.	Transaction Limitations. McIntyre, will make a good faith effort and exercise reasonable due diligence, so that he will not knowingly sell McIntyre Shares to a
buyer, which after giving effect to the transaction, would cause, after giving effect to the transaction, the buyer to beneficially own, as defined under the rules and regulations of Internal Revenue Code Section 382, greater than 4.9% of the
total current outstanding common stock of Signature. 

  

	3.	McIntyre Consideration. In order to resolve all pending disputes between Signature and McIntyre, and if McIntyre is able to sell the McIntyre Shares within 90
days from the date of this Agreement, shall dismiss its Bankruptcy Appeal, the Nevada Action and any related litigation with prejudice within 5 days after closing and the settlement of the sale of the McIntyre Shares. 

 

	4.	Signature Consideration. In order to resolve all pending disputes between Signature and McIntyre, Signature through acts duly authorized by its Board of
Directors will: A) waive the transfer restrictions set forth in Section 8.2 of the Signature Bylaws and B) determine that no act of McIntyre, including the sale of the McIntyre Shares, the execution of the Solicitation Agreement between
McIntyre and Kingstown in July 2011 the other matters described in Kingstown’s Schedule 13D amendments and the matters and acts described in the McIntyre’s Proxy Statement used for the 2012 Annual Meeting of Shareholders or related in any
way to the McIntyre solicitation in connection with the 2012 Signature Shareholder Meeting , shall have not triggered and shall not trigger a distribution of rights under and pursuant to the Rights Agreement. These actions of the Board of Signature
and of Signature shall be deemed by the Parties to be a material precondition to McIntyre’s obligations in this Agreement. The Secretary of Signature shall provide within 24 hours of the Board’s action a certificate (in form satisfactory
to McIntyre’s counsel) confirming the Board acts have been property taken in accordance with Signature’s By Laws and Nevada law. Signature will dismiss with prejudice any counterclaims or cross claims it may have in the Bankruptcy Appeal
and the Nevada action. 

  
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	5.	Mutual General Release. The Parties hereby release and forever discharge each other, and each of their past and present predecessors, successors, affiliates,
subsidiaries, parents, insurers, officers, directors, employees, heirs, assigns, agents, and attorneys from any and all known and unknown claims, disputes, demands, debts, liabilities, obligations, contracts, agreements, causes of action, suits,
attorneys’ fees and/or costs, of whatever nature, character or description, which the Parties had, now have, or may have related to their prior conduct and/or any of the matters which arise out of, from, asserted in, or which could have been
asserted in connection with their prior conduct, including but not limited to those in connection with the Rights Agreement. 

  

	6.	Waiver of Claims. Except as otherwise provided in this Agreement, the Parties agree that this Agreement shall act as a release of any and all claims that may
arise from conduct prior to the date of this Agreement including but not limited to those in connection with the Rights Agreement whether such claims are known, unknown, foreseen, or unforeseen, liquidated or unliquidated, choate or inchoate,
notwithstanding Section 1542 of the California Civil Code which provides: 

 A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 

The Parties understand and acknowledge the significance and consequence of such specific waiver of Section 1542 and hereby assume
lull responsibility for any injuries, damages, losses, or liability that they may hereafter incur from the prior conduct by the other party. 
  

	7.	No Admission. The Parties’ execution of this Agreement is not an admission of any liability, fault or responsibility on the part of any released party. Any
settlement made pursuant to this Agreement is regarded by the Parties hereto as payment to avoid the expense, inconvenience and uncertainty of litigation. 

  

	8.	Consultation with Counsel. The Parties acknowledge that they have been represented by counsel of their own choice in the negotiations leading to their execution
of this Agreement, and that they have read this Agreement and have had it fully explained to them by their counsel. 

  

	9.	No Reliance. The Parties represent and warrant that, in executing and entering into this Agreement, they are not relying and have not relied upon any
representation, promise or statement made by anyone which is not recited, contained or embodied in this Agreement. Furthermore, each of the parties to this Agreement has received independent legal advice, or has had the opportunity to receive
independent legal advice, from such Party’s respective attorneys with respect to the advisability of executing this Agreement. The Parties are entering into this Agreement wholly of their own free will and volition. 

  
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	10.	Remedies. It is understood and agreed that money damages would not be a sufficient remedy for any breach of this Agreement by a party or its representatives and
that the non-breaching party shall be entitled to specific performance as a remedy for any such breach. Such remedy shall not be deemed to be the exclusive remedy for any such breach but shall be in addition to all other remedies available at law or
equity to the non-breaching party. 

  

	11.	Entire Agreement. This Agreement shall constitute the entire agreement between the Parties with regard to the subject matter hereof. No modification, amendment
or waiver shall be binding without the written consent of both parties. 

  

	12.	Governing Law and Venue. This Agreement shall be construed and enforced according to the laws of the State of California. Any dispute concerning this Agreement
shall be brought in a in a court with proper jurisdiction in Los Angeles. California. 

  

	13.	Miscellaneous. The obligations of the parties shall be binding on and inure to the benefit of their respective heirs, successors, assigns, and affiliates. This
Agreement may be amended or modified only by a subsequent agreement in writing. 

  

	14.	Counter-Party Signatures. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute the
same agreement. 

 The Signature Page Follows 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this 5th day of September,
2012. 
  

			
	Signature Group Holdings, Inc.
		
	By:	 	 

		 	Craig F. Noell

  

			
	 James A. McIntyre, on behalf of:
  

James A. McIntyre;
 The James A.
McIntyre Living Trust;
 The James A. McIntyre Grandchildren’s Trust; and The McIntyre
Foundation

  

			
	By:	 	 

		 	James A. McIntyre
	
	36572

  
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