Document:

EX-10.2

 Exhibit 10.2 
 PURCHASE AND SALE AGREEMENT 
 THIS PURCHASE AND SALE AGREEMENT
(“Agreement”) made as of the 7th day of May, 2013, between American Locker Security Systems, Inc, (“Seller”) with offices at 2701 Regent Blvd., Suite 200, DFW Airport, Texas 75261 and USPS mailing address at PO Box 169, Coppell,
Texas 75019-0169, and Michael W. Young on behalf of an entity to be formed, or his permitted assigns (“Purchaser”). 

W I T N E S S E T H: 
 WHEREAS, Seller is the owner of the real property, and improvements thereon, and all other interests as may be held or controlled by Seller, commonly known as 16 Martha Street, Ellicottville, New York,
SBL 55.036-2-36 being more particularly described in Exhibit A attached hereto (the “Property”). 
 WHEREAS, Seller
desires to sell to Purchaser, and Purchaser desires to purchase from Seller, the Property on the terms and subject to the conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the mutual promises herein made, the parties agree as follows: 
  

	1.	Definitions 

  

	 	1.1	Closing shall mean the closing of title to the Property at the time and place set forth in the Agreement. 

 

	 	1.2	Deed shall mean the statutory form of bargain and sale deed to be executed and delivered by Seller pursuant to the terms of the Agreement.

  

	 	1.3	Due Diligence Period shall mean 75 days from the date of this Agreement. 

 

	2.	Agreement to Sell and Convey. Seller agrees to sell and the Purchaser agrees to purchase from Seller the Property, on the terms and subject to the
conditions set forth in this Agreement. 

  

	3.	Purchase Price and Payment. 

  

	 	(A)	Purchase Price. The purchase price is two-hundred twenty-five thousand and 00/100 ($225,000.00) (“Purchase Price”). The Purchase Price shall be payable
as follows: 

  

	 	(i)	$15,000,00 Deposit; and 

  

	 	(ii)	Balance in cash or immediately available funds payable to Seller. 

  
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	 	(B)	Payment. The Purchase Price shall be paid by Purchaser to Seller in certified funds at the consummation of the transactions contemplated by this
Agreement (the “Closing”), subject to closing adjustments and credits as provided for in Section 4 of this Agreement. 

  

	 	(C)	Escrow Deposit. For the purpose of securing the performance of Purchaser under the terms and provisions of this Agreement, Purchaser will deposit Fifteen
Thousand Dollars and 00/100 ($15,000.00) with the Title Insurance Company (hereinafter defined) (the “Deposit”) within five (5) days of execution of this Agreement by Seiler and Purchaser. At Closing, the Deposit and all interest
thereon, if any, shall be made available to the Seller, and the Deposit and interest, if any, shall be credited against the Purchase Price. 

 4. Adjustments And Credits At Closing. There shall be prorated and adjusted, as of 12:00 midnight prior to the date of Closing all ad valorem taxes and assessments. The intent of the
prorations and adjustments provided for herein is that Seller shall bear all expenses of ownership and operation of the Property and shall receive all income therefrom accruing through the date of Closing, and Purchaser shall bear all such expenses
and receive all such income accruing thereafter. Purchaser will accept title to the Property subject to, and will pay, all ad valorem taxes and assessments accruing after closing. 

 

	5.	Pre-Closing Conditions To Purchaser’s Obligations. 

  

	 	(A)	Conditions. This Agreement, and Purchaser’s obligations under this Agreement, are contingent on the following: 

 

	 	(i)	Investigations. During the Due Diligence Period, Purchaser shall have conducted such other investigations, inspections, examinations, tests, and reviews,
as Purchaser deems appropriate and subject to the terms of this Agreement, with respect to the Property, and the results of all such investigations, inspections, examinations, tests, and reviews are acceptable to Purchaser in its sole discretion.

  

	 	(ii)	All Representations of Seller. All representations and warranties of Seller in this Agreement being true and correct in all material respects at the time
of Closing, and there shall have been no breach by the Seller in the performance of any of the covenants or obligations of Seller under this Agreement. 

  

	 	(iii)	No Cancellation of This Agreement. This Agreement not being canceled pursuant to any of the terms, conditions or provisions of this Agreement.

  

	 	(B)	 Right To Enter Premises and Conduct Testing. During the Due Diligence Period, Seller shall allow Purchaser, and Purchaser’s
agents and such others as Purchaser may designate from time to time, after advance notice, access to the 

  
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entire Property at reasonable times, and at no additional cost to Seller, to conduct all such inspections, examinations, tests, reviews and investigations Purchaser deems necessary or desirable;
provided, however, that (i) any such inspections or examinations shall be made at Purchaser’s sole cost and expense, (ii) no invasive testing, including but not limited to, a Phase II Environmental Assessment, may be performed without
the prior written consent of Seller, which is may withhold in its sole and absolute discretion, provided however that Purchaser shall be authorized to take soil samples in areas identified by Purchaser as having an historic connection to activities
that are considered recognized environmental conditions and (iii) the results or reports of any of Purchaser’s inspections or examinations shall not be disclosed to or delivered to Seller, and provided that Purchaser shall be responsible
for the repair of any damage, and restoration of the Property, caused or necessary as a result of Purchaser’s investigation pursuant to this Agreement, and Purchaser shall indemnify and hold Seller harmless for any damages to the Property or
any injury to any person caused by such inspection, such agreement to survive any termination of this Agreement. 

  

	 	(C)	Waiver of Contingencies The contingencies set forth in Paragraph 5(A) of this Agreement are for the sole benefit of Purchaser and any one or more or all
of said contingencies may be waived, in writing, by Purchaser at any time. 

  

	 	(D)	Cancellation of Contract. Purchaser may terminate this contract in its sole and absolute discretion, by giving written notice of termination to Seller on
or before the end of the Due Diligence period, In the event the Purchaser terminates this Agreement, the Deposit and all interest thereon shall be returned to the Purchaser; provided, however, that if Purchaser fails to terminate this Agreement on
or before 60 days from the date of this Agreement, one-half of the Deposit ($7,500.00) shall be non-refundable. Failure to terminate this agreement on or before the end of the Due Diligence period shall result in a waiver of the contingencies. If
the contingencies set forth in Paragraph 5(A) of this Agreement have been satisfied or waived by Purchaser by the end of the Due Diligence Period, the Deposit and all interest thereon shall become non-refundable and credited against the Purchase
Price. Notwithstanding the foregoing, in the event that the Seller is in breach of any covenant, condition, warranty or representation set forth in this Agreement, the Purchaser may cancel this Agreement and the Deposit and all interest thereon
shall be refunded to the Purchaser as its sole and absolute remedy. 

  

	 	(E)	No Waiver of Rights. Seller agrees that nothing in this Paragraph 5 of this Agreement, and no inspection, examination, test, review or investigation
conducted by or on behalf of Purchaser, shall be deemed a limitation or waiver of any right or remedy available to Purchaser, under this Agreement, pursuant to any statute, under common law, or in equity, should Purchaser not elect to terminate this
Agreement. 

  
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	6.	Representations of Seller. Seller represents and warrants to Purchaser that: 

 

	 	(A)	Marketable Title. Seller, shall at the time of closing have good and marketable title to the Property, in fee simple, free and clear of all mortgages,
liens, options, rights of first refusal, encumbrances, leases, tenancies, security interests, covenants, conditions, restrictions, rights-of-way, easements, judgments and other matters affecting title to the Property except for the Permitted
Exceptions (hereinafter defined). 

  

	 	(B)	Contracts. The Property is not subject to any purchase contract or right of another of any kind affecting or relating to the ownership or use of
the Property. 

  

	 	(C)	Adverse Claims. There are no adverse claims, asserted or which may be asserted, affecting Seller’s ownership, or otherwise affecting the use or
enjoyment of the Property, including, but not limited to, any such claim for adverse possession. 

  

	 	(D)	No Litigation. There is no litigation, proceeding or investigation, pending or threatened, against or affecting Seller or the Property that might affect
or relate to the validity of this Agreement or the transactions contemplated by this Agreement. 

  

	 	(E)	No Adverse Actions Or Conditions. There are no existing or pending orders of any court or regulatory body, whether or not entered by consent, with respect
to the Property. Seller has no information or knowledge of any change contemplated in any applicable law, ordinance, or restriction, or of any judicial or administrative action taken or threatened, or of any action taken or threatened by any
adjacent landowner, or of any natural or artificial condition upon the Property, which would prevent, limit, impede, or render more costly Purchaser’s use of the Property; provided, however, that Seller has knowledge of a complaint from the
city with respect to damage to the retaining wall along the creek and Buyer acknowledges and accepts the Property subject thereto. 

  

	 	(F)	Condemnation. There is no condemnation proceeding or sale in lieu thereof, pending, or to Seller’s knowledge, threatened or contemplated, which would
affect all or any portion of the Property. 

  

	 	(G)	Current Zoning. Seller has no knowledge of any pending application or proceeding to change or otherwise affect the current zoning of the Property and,
Seller has received no notice that the present state or condition of the Property or improvements currently situate thereon are not currently in full compliance with restrictive covenants and all existing statutes, ordinances, regulations, and/or
other administrative enactments. 

  

	 	(H)	 Commitments To Governmental Authorities. No commitments have been made to any governmental authority, utility company, school board,
church or other religious body, or any homeowners or homeowners’ association, or to any 

  
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other organization, group or individual, relating to the Property which would impose an obligation upon the Purchaser or its successors or assigns to make any contribution or dedications of money
or land or to construct, install, or maintain any improvements of a public or private nature on or off the Property, or which restricts the use of the Property, and Seller has no knowledge that any governmental authority has imposed any requirement
that any owner of the Property pay directly or indirectly any special fees or contributions or incur any expenses or obligations in connection with any operation of the Property or any part thereof, except for any regular or nondiscriminatory local
real estate or school taxes assessed against the Property. 

  

	 	(I)	Parties in Possession. Except for Seller, there are no parties in possession of any portion of the Property, and there are no lessees, occupants under any
operating agreement, tenants at sufferance or trespassers. 

  

	 	(J)	Insurance Notices. No notice has been given by any insurance company which has issued a policy with respect to any portions of the Property or by any
board of fire underwriters (or other body exercising similar functions) requesting the performance of any repairs, alterations, or other work which has not been complied with. 

 

	 	(K)	Organization. Seller is a Texas corporation duly organized and existing, in good standing under the laws of Texas, and has the power to own its properties
and to carry on its business as presently conducted. Seller is qualified to do business under the laws of the State of New York. 

  

	 	(L)	Authority. The execution, delivery and performance of this Agreement by Seller has been duly authorized and approved by all requisite action on the part
of Seller. This Agreement constitutes, the deed and such other agreements and instruments, when duly executed and delivered by Seller will constitute, valid and binding obligations of Seller enforceable in accordance with their respective terms,
except as limited by laws affecting creditors’ rights generally and by the discretion of a court to order specific performance. 

  

	 	(M)	Accurate Information. All representations made under this Section 6 are true and correct, and the information provided and to be provided by Seller
to Purchaser relating to this Agreement does not and will not contain any statement which, at the time it is made, is false or misleading with respect to any material fact or omits to state any material fact (which is known, or in the exercise of
reasonable diligence by Seller, should have been known) necessary in order to make any statement contained therein not false or misleading in any material respect. 

 

	 	(N)	Survival of Representations. The representations and warranties of Seller set forth in this Article 6 shall survive the Closing of the transaction
contemplated in this Agreement for a period of six (6) months from and after the Closing Date. 

  
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	 	(O)	 AS-IS, WHERE IS and WITH ALL FAULTS. THE TRANSACTION CONTEMPLATED BY
THIS AGREEMENT HAS BEEN NEGOTIATED BETWEEN SELLER AND PURCHASER, THIS AGREEMENT
REFLECTS THE MUTUAL AGREEMENT OF SELLER AND PURCHASER, AND PURCHASER HAS
CONDUCTED (OR WILL CONDUCT PRIOR TO THE EXPIRATION OF THE DUE
DILIGENCE PERIOD) ITS OWN INDEPENDENT EXAMINATION OF THE PROPERTY. OTHER THAN
THE SPECIFIC MATTERS REPRESENTED IN SECTION 6 OR IN THE DEED DELIVERED
BY SELLER TO PURCHASER AT CLOSING, WHICH EXCEPTIONS APPLY TO ALL OF
THE PROVISIONS OF THIS SECTION, PURCHASER HAS NOT RELIED UPON AND
WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY REPRESENTATION, WARRANTY
OR STATEMENT OF SELLER OR ANY OF SELLER’S AFFILIATES, AGENTS OR
REPRESENTATIVES, AND PURCHASER HEREBY ACKNOWLEDGES THAT NO SUCH REPRESENTATIONS, WARRANTIES
OR STATEMENTS HAVE BEEN MADE. SELLER SPECIFICALLY DISCLAIMS, AND NEITHER IT
NOR ANY OF ITS AFFILIATES NOR ANY OTHER PERSON IS MAKING, ANY
REPRESENTATION, WARRANTY, STATEMENTS OR ASSURANCE WHATSOEVER TO PURCHASER AND NO
WARRANTIES, REPRESENTATIONS, STATEMENTS OR ASSURANCES OF ANY KIND OR CHARACTER,
EITHER EXPRESS OR IMPLIED, ARE MADE BY SELLER OR RELIED UPON BY
PURCHASER WITH RESPECT TO THE STATUS OF TITLE TO OR THE MAINTENANCE,
REPAIR, CONDITION, DESIGN OR MARKETABILITY OF THE PROPERTY, OR ANY PORTION
THEREOF, INCLUDING BUT NOT LIMITED TO (A) ANY IMPLIED OR EXPRESS
WARRANTY OF MERCHANTABILITY, (B) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS
FOR A PARTICULAR PURPOSE, (C) ANY IMPLIED OR EXPRESS WARRANTY OF
CONFORMITY TO MODELS OR SAMPLES OF MATERIALS, (D) ANY RIGHTS OF
PURCHASER UNDER APPROPRIATE STATUTES TO CLAIM DIMINUTION OF CONSIDERATION,
(E) ANY CLAIM BY PURCHASER FOR DAMAGES BECAUSE OF DEFECTS, WHETHER
KNOWN, OR UNKNOWN, OR LATENT, WITH RESPECT TO THE PROPERTY,
(F) THE FINANCIAL CONDITION OR PROSPECTS OF THE PROPERTY (G) THE
COMPLIANCE OR LACK THEREOF OF THE PROPERTY WITH GOVERNMENTAL LAWS,
(H) COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION, OR LAND USE LAWS,
RULES, REGULATIONS, ORDERED OR REQUIREMENTS, AND/OR (I) THE PRESENCE OR ABSENCE
OF HAZARDOUS MATERIALS ON, AT, UNDER OR ADJACENT TO THE PROPERTY, IT
BEING THE EXPRESS INTENTION OF SELLER AND PURCHASER THAT THE PROPERTY
WILL BE CONVEYED AND TRANSFERRED TO PURCHASER IN ITS PRESENT CONDITION
AND STATE OF REPAIR, “AS IS” AND “WHERE IS”, WITH ALL
FAULTS. Purchaser represents that it is a knowledgeable, experienced and sophisticated purchaser of real estate and the other types of interests contemplated to be sold hereunder, and that it is relying on its own expertise and
that of Purchaser’s consultants in purchasing the Property. Prior to the expiration of the Due Diligence Period, Purchaser will have conducted such inspections, investigations and other independent examinations of the Property and related
matters as Purchaser deems necessary, including but not limited to the physical and environmental conditions thereof, and will rely upon same and not upon any statements of Seller or any of its affiliates, or any of their respective partners,
members, owners, officers, directors, employees, agents, representatives or attorneys. Purchaser acknowledges that all information 

  
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obtained by Seller was obtained from a variety of sources and Seller will not be deemed to have represented or warranted the completeness, truth or accuracy of any of the Seller’s Records or
other such information heretofore or hereafter furnished to Purchaser. Subject to the other terms hereof, upon Closing, Purchaser will assume the risk and waives any rights against Seller, Seller’s affiliates, representatives, officers,
directors and attorneys that adverse matters, including, but not limited to, adverse physical and environmental conditions, may not have been revealed by Purchaser’s inspections and investigations. Purchaser further hereby and waives any rights
against Seller, Seller’s affiliates, representatives, officers, directors and attorneys and assumes the risk of changes after Closing with respect to the environmental condition of the Property and in applicable environmental laws relating to
past, present and future environmental health conditions on, or resulting from the ownership or operation of, the Property, Purchaser acknowledges and agrees that upon Closing, Seller will sell and convey to Purchaser, and Purchaser will accept the
Property, “AS IS, WHERE IS,” with all faults. Purchaser further acknowledges and agrees that there are no oral agreements, warranties or representations, collateral to or affecting the Property, by Seller, any affiliate of Seller, or any
agent of Seller or its affiliates, except as provided herein. Seller is not liable or bound in any manner by any oral or written statements, representations or information pertaining to the Property furnished by any real estate broker, agent,
employee, servant or other person, unless the same are specifically set forth or referred to herein or in the documents to be delivered by Seller to Purchaser at Closing or herein. Purchaser acknowledges that the Purchase Price reflects the “AS
IS, WHERE IS” nature of this sale and any faults, liabilities, defects or other adverse matters that may be associated with the Property. The term “Seller’s knowledge,” or words of similar import as used in this Section 6,
means the actual (as opposed to constructive or imputed) knowledge solely of Scott Turner, without any additional inquiry. Such individual is named in this Section 6 solely for purposes of establishing the scope of Seller’s knowledge. Such
individual will not be deemed to be parties to this Agreement or to have made any representations or warranties hereunder, and no recourse will be had to such individuals for any of the Seller’s representations and warranties hereunder (and
Purchaser hereby waives any liability of or recourse against such individuals). 

  

	7.	Title Search, Survey 

  

	 	(A)	Title Search. Within twenty (20) days of the date of this Agreement, Seller shall provide Purchase and Purchaser’s attorney a tax and title
search which covers the Property only, to be fully guaranteed by a title insurance corporation licensed under Article 64 of the Title Insurance Law (the “Title Insurance Company”), which includes a search of the first set-out of said title
search being the first recorded source of title in the Erie County Clerk’s Office and the last continuation of said title search being dated after the date of this Agreement (the “Title Search”). Seller shall also provide local tax
certificates where not covered by the Title Search (the “Tax Certificates”) 

  
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	 	(B)	Survey. Within twenty (20) days of the date of this Agreement, Purchaser may at its sole cost and expense obtain a survey map of the Property showing
the Property and the location of all buildings, other structures, improvements and other physical conditions on or affecting the Property, prepared by a professional who is licensed or otherwise authorized under the New York Education Law to
practice land surveying in accordance with the standards established by the Erie County Bar Association), dated after the date of this Agreement, certified to Purchaser and any Title Insurance Company insuring the title to the Property (the
“Survey”). 

  

	8.	Status of Title and Deed. 

  

	 	(A)	Quality of Title. At Closing, Seller shall convey to Purchaser good and marketable title to the Property in fee simple, free and clear of all liens,
claims and encumbrances, subject only to the Permitted Exceptions (hereinafter defined). 

  

	 	(B)	Title Objections. Purchaser’s attorney shall, within ten (10) days of receipt of the Title Search send to Seller’s attorney a notification
of all defects, liens and encumbrances to Seller’s title to the Property to which Purchaser objects (the “Title Defects”). Seller may (but is not obligated), at Seller’s expense, cure the Title Defects. Within twenty
(20) says of receipt of the notification of the Title Defects, Seller’s attorney shall respond to such notification as to which Title Defects Seller is willing to cure, and any such title defect that Seller is not willing or able to cure
shall be a “Permitted Exception”. If Purchaser is not satisfied with any Permitted Exception, then within twenty (20) days after Seller’s response notice, Purchaser may elect to either accept the Property subject to Permitted
Exceptions or terminate this Agreement. Failure by Purchaser to respond within such twenty (20) days shall be deemed an acceptance of the Permitted Exceptions. If the Purchaser cancels this Agreement pursuant to this paragraph, the Deposit and
all interest thereon shall be returned to the Purchaser. 

  

	 	(C)	Deed. The Property shall be conveyed by Seller to Purchaser by a statutory form Bargain and Sale Deed, with lien covenant, using a legal description
approved by Purchaser’s attorney, and otherwise being in form and substance reasonably satisfactory to Purchaser’s attorney (the “Deed”). 

 

	9.	Covenants of Seller. 

  

	 	(A)	Acts Affecting Property. Seller will refrain from (i) performing any material grading or excavation, construction or removal of any material improvements,
or making any other material change or improvement upon or about the Property; (ii) creating or incurring, or suffering to exist, any mortgage, lien, pledge, or other encumbrances in any way affecting the Property that will not be satisfied at
Closing; (iii) entering into any new lease, rental agreement or operating agreement affecting any part of the Property; and (iv) committing any waste or nuisance upon the Property, all without the prior written approval of Purchaser, with no
obligation of Purchaser to give such approval. 

  
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	 	(B)	Payment of Taxes and Assessments. Seller shall pay in full all real estate and school taxes, all water and sewer charges, and all installments for special
assessments against the Property, due and payable prior to the Closing Date (as hereinafter defined). 

  

	 	(C)	Furnishing of Information. Within ten (10) days after the date of this Agreement, Seller shall deliver or cause to be delivered to Purchaser, at
Seller’s cost and expense, the following information and documentation in the Seller’s possession with respect to the Property: 

  

	 	(i)	A complete copy of all certificates of occupancy, licenses, permits, authorizations, and approvals required by law and issued by all governmental authorities
having jurisdiction 

  

	 	(ii)	A complete copy of each bill for current real estate and school taxes and assessments, water charges and sewer charges, together with proof of payment thereof.

  

	 	(iii)	A complete copy of all non-confidential appraisals and environmental audit reports, any environmental test reports or in the event none are in the Seller’s
possession, confirmation of the same. 

  

	10.	Closing. 

  

	 	(A)	Closing Date. The Closing shall take place fifteen (15) days after the completion of the Due Diligence Period, or on such other date as Purchaser and
Seller mutually agree (the “Closing Date”). 

  

	 	(B)	Seller’s Obligations at Closing. At the Closing Seller shall: 

 

	 	(i)	Execute, acknowledge, and deliver to Purchaser the Deed in recordable form together with any forms, confirmations, certificates or authorities as may be required
for Purchaser to have the Deed recorded with the Clerk of the County 

  

	 	(ii)	Execute and deliver such other material, certificates, instruments and documents, in form and content satisfactory to Purchaser, which may be necessary or desirable to
complete the transactions contemplated by this Agreement. 

  

	 	(iii)	Deliver to Purchaser all keys to all locks on the Property and deliver to Purchaser possession of the Property, in broom clean condition, with all personal property
removed, including but not limited to all drums, solvents and other stored materials. 

  
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	 	(C)	Purchaser’s Obligations at Closing. Subject to the terms, conditions and provisions of this Agreement, and contemporaneously with the performance by
Seller of its obligations set forth in Section 10(B), at the Closing, Purchaser shall deliver to Seller a cashier’s or certified check in the amount of the Purchase Price subject to the prorations set forth in Section 4.

  

	11.	Closing Costs 

  

	 	(A)	To Be Paid By Seller. In addition to any other cost or expense to be paid by Seller as provided under this Agreement, Seller shall pay the following costs
and expenses in connection with the Closing: 

  

	 	(i)	The cost of continuing the Title Search to the date of Closing and the title policy issued by the Title Insurance Company (provided however that any endorsements to the
base policy shall be paid by Purchaser); 

  

	 	(ii)	The New York State and Cattaraugus County transfer taxes imposed upon the conveyance of real property which is payable in connection with the transfer by Seller
to Purchaser of the Property upon the recording of the Deed; 

  

	 	(iii)	Fees for filing or recording any other document, instrument or certificate which may be necessary to cure or provide affirmative coverage for any Title Defect agreed to
be cured by Seller; and 

  

	 	(iv)	Legal and accounting fees, costs and expenses incurred by Seller in connection with the negotiation, preparation and closing of this Agreement.

  

	 	(B)	To Be Paid By Purchaser. In addition to any other cost or expense to be paid by Purchaser as provided under this Agreement, Purchaser shall pay the
following costs and expenses in connection with the Closing: 

  

	 	(i)	The cost of recording the Deed; 

  

	 	(ii)	The cost of recording the Real Property Transfer Report; 

  

	 	(iii)	Legal, financing and accounting fees, costs and expenses incurred by Purchaser in connection with the negotiation, preparation and closing of this Agreement, the
cost of any endorsements to the title policy issued by the Title Insurance Company. 

  
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	12.	Default. 

 (A)
Default by Seller. In the event that Seller shall fail to consummate this Agreement following a breach of this Agreement by Seller, Purchaser shall be entitled, as its sole and exclusive remedy, at law or in equity, to; (a) waive
such default and proceed with Closing, or (b) terminate this Agreement, which shall entitle Purchaser to a refund of the Deposit, including any interest thereon. 
 (B) Default by Purchaser. IN THE EVENT THE CLOSING AND THE CONSUMMATION OF THE TRANSACTION HEREIN CONTEMPLATED DOES NOT OCCUR AS HEREIN PROVIDED BY REASON OF ANY DEFAULT OF PURCHASER,
PURCHASER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES SUFFERED BY SELLER AS A RESULT OF PURCHASER’S FAILURE TO COMPLETE THE PURCHASE OF THE PROPERTY PURSUANT TO THIS AGREEMENT, AND THAT UNDER
THE CIRCUMSTANCES EXISTING AS OF THE DATE OF THIS AGREEMENT, THE RETENTION BY SELLER OF THE DEPOSIT AS PROVIDED FOR IN THIS SECTION REPRESENTS A REASONABLE ESTIMATE OF THE DAMAGES WHICH SELLER WILL INCUR AS A RESULT OF SUCH FAILURE AND THE RETENTION
THEREOF SHALL BE SELLER’S SOLE AND EXCLUSIVE REMEDY; PROVIDED, HOWEVER THAT THIS PROVISION WILL NOT WAIVE OR AFFECT PURCHASER’S INDEMNITY OBLIGATIONS AND/OR REPAIR OR RESTORATION OBLIGATIONS AND SELLER’S RIGHTS TO THOSE INDEMNITY
OBLIGATIONS UNDER THIS AGREEMENT. THEREFORE, PURCHASER AND SELLER DO HEREBY AGREE THAT A REASONABLE ESTIMATE OF THE TOTAL NET DAMAGES THAT SELLER WOULD SUFFER IN THE EVENT THAT PURCHASER DEFAULTS AND FAILS TO COMPLETE THE PURCHASE OF THE PROPERTY IS
EQUAL TO THE DEPOSIT PAID BY PURCHASER TO SELLER (WHICH INCLUDES ANY ACCRUED INTEREST THEREON). UPON DEFAULT BY PURCHASER, THIS AGREEMENT WILL BE TERMINATED, AND, EXCEPT FOR PURCHASER’S INDEMNITY AND OTHER SPECIFIC OBLIGATIONS REFERRED TO
HEREIN WHICH MAY BE ENFORCED BY SELLER, NEITHER PARTY WILL HAVE ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EACH TO THE OTHER EXCEPT FOR THE RIGHT OF SELLER TO RETAIN THE DEPOSIT. 

 

	13.	Risk of Loss by Condemnation, or Casualty. 

  

	 	(A)	Risk of Loss. The obligations of the parties in the event of any loss, damage or destruction shall be governed by General Obligation Law
Section 5-1311. 

  

	 	(B)	Seller agrees to maintain, or caused to be maintained, existing fire and extended coverage insurance on the Property until the Closing. 

 

	14.	Intentionally deleted. 

  

	15.	 Cancellation of This Agreement. Any cancellation of this Agreement made pursuant to any provision of this Agreement shall be made by
written notice by the canceling party 

  
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to the other party. Prior to the expiration of the Due Diligence Period, if this Agreement is canceled, the Deposit, and all interest earned thereon, shall be returned to Purchaser within 3
business days after such cancellation and neither party shall have any further rights under this Agreement. 

  

	16.	Broker’s Commission. Seller and Purchaser agree that no broker brought about this Agreement. Seller will indemnify and hold Purchaser harmless for
any commission claimed due any broker, realtor or any other person or entity arising out of this Agreement. 

  

	17.	Notices. Any notice to be given or to be served upon any party hereto, in connection with this Agreement, must be in writing, and shall be given either by
certified or registered mail, return receipt requested, and shall be deemed to have been given and received on the second business day following the date when a certified or registered letter containing such notice, properly addressed, with postage
prepaid is deposited in the United States Mails. Such notices shall be given to the parties hereto at the following addresses: 

  

	 	a)	If to Seller: 

 American Locker
Security Systems, Inc. 
 P.O. Box 169 
 Coppell, TX 75019-0169 
 With a copy simultaneously sent to: 

Hallett & Perrin, P.C. 
 1445 Ross Avenue 
 Suite 2400 

Dallas, Texas 75202 
 Attention: Michael Franklin 
  

	 	b)	If to Purchaser: 

 Michael W.
Young 
 2 Main Street 
 Depew, New York 14043 
 With a copy simultaneously sent to: 

Robert E. Knoer, Esq. 
 The Knoer Group, PLLC 
 424 Main Street, Suite 1820 

Buffalo, New York 14202 

  
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 Any party hereto may, at any time by giving five (5) days’ written notice to the
other party hereto, in the manner designated by this Paragraph 17 of this Agreement, designate any other address in substitution of the foregoing address to which such notice shall be given and other parties to whom copies of all notices hereunder
shall be sent. 
  

	18.	Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

  

	19.	Third Parties; Assignment. Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person other than the
parties hereto and their successors or assigns any rights or remedies under or by reason of this Agreement. Purchaser’s interest under this Agreement may not be assigned, encumbered or otherwise transferred whether voluntarily, involuntarily,
by operation of law or otherwise, without the prior written consent of Seller; provided, however, that Seller hereby consents to an assignment of this Agreement, and Purchaser may assign this Agreement, to an entity at least fifty-one percent
(51%) owned or controlled by Purchaser, provided, that Purchaser provide Seller written notice of such assignment at least three (3) days prior to the Closing Date. 

 

	20.	Headings. The article, section, paragraph and other headings of this Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement. 

  

	21.	Gender. As used herein, each of the masculine, feminine, and neuter genders and both the singular and plural shall be deemed to include the other.

  

	22.	Intentionally deleted. 

  

	23.	No Waiver. No delay or omission on the part of either party in exercising any right shall operate as a waiver of such right or any other right. A waiver
on any one occasion shall not be construed as a bar to or waiver of any right on any future occasion. 

  

	24.	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 

 

	25.	Amendment and Waiver. This Agreement may only be amended or modified by an instrument in writing executed by the party or parties to be charged therewith.

  

	26.	Entire Agreement. This Agreement, together with the exhibits and schedules and the other writings referred to herein or to be delivered hereafter,
constitutes the entire agreement between the parties with respect to the subject matter hereof, and there are no prior agreements, understandings, representations or warranties other than those set forth in this Agreement or such exhibits, schedules
or other writings. 

  

	27.	 Execution in Counterparts. This Agreement and any amendments or modifications to this Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one Agreement or 

  
 13 

	 	
amendment, as applicable. To facilitate execution of this Agreement or any such amendments or modifications, the parties may execute and exchange by telephonic facsimile or computer email pdf
counterparts of the signature pages of this Agreement or any such amendments or modifications 

 [Signature page
follows.] 

  
 14 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date and
year first above written even though as a matter of convenience it may be executed on a different day or days. 
  

											
	SELLER:	 		 	PURCHASER:
			
	American Locker Security Systems, Inc.	 		 	Michael W. Young
					
	By: 	 	

	 		 	By: 	 	

		 	Name: 	 	Anthony B. Johnston	 		 		 	Michael W. Young on behalf of an entity to be formed,
		 	Title:	 	Chairman & CEO	 		 		 

  
 15 

 SCHEDULE A 
 DESCRIPTION OF REAL PROPERTY 
 [To be attached] 

  
 16 

 EXHIBIT A 

LEGAL DESCRIPTION 

Parcel I: 
 ALL THAT
TRACT OR PARCEL OF LAND, situate in the Village of Ellicottville, County of Cattaraugus and State of New York, distinguished by being part of Lot Number 32, in Township Number 4 in the Sixth Range of Townships of the Holland Land Company’s
Survey and bounded as follows: 
 BEGINNING at a point in the center of Martha Street at the intersection with the west bounds
of the Buffalo, Rochester and Pittsburgh Railroad Company’s land; thence southerly along the line of the said railroad to lands of John Wulff; thence west along said Wulff’s line to the Great Valley Creek; thence northerly along the east
bank of the Great Valley Creek to the center of Martha Street; thence easterly along the center of Martha Street to the place of beginning, containing more or less. 
 THE premises described in Parcel I hereof is the same premises conveyed to The Borden Company by Borden’s Food Products Company, Inc. as Parcel 12 by deed dated January 4, 1936; recorded in the
Cattaraugus County Clerk’s Office in Book No 354 of Deeds at page 135. 
 Parcel II: 

ALL THAT TRACT OR PARCEL OF LAND, situate in the Village of Ellicottville, County of Cattaraugus and State of New York, distinguished by
being part of Lot Number 32, in Township Number 4 in Range 6 of the Holland Land Company’s Survey, bounded as follows: 

NORTH by a line parallel to the south bounds of said lot, at the distance of 28 chains and 50 links north therefrom, 2 chains, 70 links;
easterly by the westerly bounds of the Buffalo, Rochester and Pittsburgh Railway Company, 6 chains, 14 links; south by a line parallel to the first mentioned bound, 4 chains, 40 links, westerly by the Great Valley Creek, containing 2 acres be the
same more or less. 
 THE premises described in Parcel II hereof is the same premises conveyed to The Borden Company by
Borden’s Food Products Company, Inc. as Parcel 14 by deed dated January 4, 1936; recorded in the Cattaraugus County Clerk’s Office in Book No. 354 of Deeds at page 135. 
 Parcel III: 
 ALL THAT TRACT OR PARCEL OF LAND, situate in said Village
distinguished as being a part of said lot, in said township and range, bounded as follows: 
 BEGINNING at the southeast comer
of the lands last above described, and running thence southerly along the westerly bounds of said railroad company’s land, 240 feet; thence northwesterly to a point in the south bounds of lands above described, which point is 80 feet westerly
from the westerly bounds of said Railroad Company’s lands; thence along the south bounds of land above described, 80 feet to the place of beginning, containing 1/4 of an acre be the same more or less. 

EXCEPTING and reserving from this Parcel III above a right-of-way, 3 rods wide across the same to the lands of John Wulff and also to the
public in case a street is laid out across said land (the above exception being the same as contained in the deed from John Wulff and wife dated September 27, 1902, and this conveyance being also subject to the agreement to maintain a crossing
over the railroad as therein stated). 

  
 3 

 THE premises described in Parcel III hereof is the same premises conveyed to The Borden
Company by Borden’s Food Products Company, Inc. as Parcel 15 by Deed dated January 4, 1936; recorded in the Cattaraugus County Clerk’s Office in Book No. 354 of Deeds at page 135. 

Parcel IV: 
 ALL THAT
TRACT OR PARCEL OF LAND, situate in the Village and Town of Ellicottville, County of Cattaraugus and State of New York, distinguished by being part of Lot Number 32, in the fourth Township and 6th Range of townships of the Holland Land
Company’s Survey, bounded as follows: 
 BEGINNING at a point in Wulff Avenue in said Village, in the southerly bounds of
land formerly of The Borden Company, at the distance of 80 feet westerly from the westerly bounds of the original line of the Buffalo, Rochester & Pittsburgh Railroad (as measured on a line at right angles with Jefferson Street in said
Village); thence southerly, along the westerly ends of the ties of the switch leading to and used by condensary, 111 feet in a straight line, to a point that is westerly, 37 feet, as measured at right angles with Jefferson Street, from said westerly
bounds of said railroad company’s lands, and to the northeastern comer of lands now or formerly of Ellicottville Manufacturing Company; thence westerly and at right angles with Jefferson Street, 109 feet to the northwesterly comer of lands of
said Ellicottville Manufacturing Company; thence, northerly, on a line parallel with Jefferson Street, about 140 feet, to the southerly line of land formerly of The Borden Company; thence easterly along the southerly bounds of land formerly of The
Borden Company, about 54 feet and 6 inches, to the place of beginning be the same more or less. 
 THE premises described in
Parcel IV hereof is the same premises conveyed to The Borden Company by Borden’s Food Products Company, Inc. as Parcel 16 by deed dated January 1, 1936; recorded in the Cattaraugus County Clerk’s Office in Book No. 354 of Deeds
at page 135. 
 EXCEPTING from the above described parcels those portions conveyed to: 

 

	 	a)	The Village of Ellicottville in Liber 418 of Deeds at page 340 on May 14, 1947; 

 

	 	b)	Burrell Cutlery Company, Inc. in Liber 567 of Deeds at page 40 on December 5, 1956 and 

 

	 	c)	County of Cattaraugus in Liber 966 of Deeds at page 1155 on July 22, 1997. 

 The above described parcels being and intending to be the same premises as depicted on the Cattaraugus County Tax Map as tax parcel No. 55.036-2-36 

  
 4 

 FIRST AMENDMENT 

TO 

PURCHASE AND SALE AGREEMENT 
 This FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT (this “First Amendment”), dated as of this 22nd day of July, 2013, is made and entered into by and between American Locker Security Systems, Inc., a Delaware
corporation (“Seller”), and Michael W. Young, on behalf of an entity to be formed, or his assigns (“Purchaser”). 
 RECITALS: 
 WHEREAS, Purchaser and Seller entered into that certain
Purchase and Sale Agreement dated effective as of May 7, 2013 (the “Agreement”); and 

WHEREAS, Seller and Purchaser have agreed to enter into this First Amendment to set forth their agreement regarding the matters
set forth herein. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Purchaser and Seller hereby agree to the following: 
 1. Terms. All capitalized terms which are used in
this First Amendment, but not defined herein, shall have the same meanings as ascribed thereto in the Agreement. 
 2.
Reduction to Purchase Price. The Purchase Price of the Property is hereby reduced from $225,000.00 to $212,500.00. 
 3.
Assumption of Repairs to Wall. Purchaser reaffirms that, at Closing, it shall assume payment and responsibility for all necessary repairs to the retaining wall as further described in Section 6(E) of the Agreement. 

4. Agreement Ratified. In all other respects, except as otherwise provided by this First Amendment, the undersigned hereby ratify
and confirm the Agreement which remains in full force and effect. 
 5. Counterparts. This First Amendment may be
executed in counterparts, each of which shall be deemed an original and all of said counterparts shall constitute but one and the same instrument. Facsimile or electronic signatures shall be accepted as if original. 

[REMAINDER OF PAGE IS INTENTIONALLY BLANK] 

  
 Page 1

 IN WITNESS WHEREOF, the parties have executed this First Amendment to be effective as of the date
first set forth above. 
  

							
	SELLER:	 		 	 American Locker Security Systems, Inc.,
 a Delaware corporation

				
		 		 	By:	 	

		 		 	Name: 	 	Anthony B. Johnston
		 		 	Title:	 	Chairman & CEO
			
	PURCHASER:	 		 	Michael W. Young, on behalf of an entity to be formed
				
		 		 	By:	 	

		 		 	Name: 	 	Michael W. Young

  
 Page 2EX-10.3

 Exhibit 10.3 
 RESTRICTED STOCK AGREEMENT BY AND BETWEEN 
 SIGNATURE GROUP HOLDINGS, INC.
AND G. CHRISTOPHER COLVILLE 
 SIGNATURE GROUP HOLDINGS, INC. 

2006 PERFORMANCE INCENTIVE PLAN 
 RESTRICTED STOCK AWARD AGREEMENT 
 THIS
RESTRICTED STOCK AWARD AGREEMENT (this “Award Agreement”) is dated as of May 3, 2013 (the “Award Date”) by and between Signature Group Holdings, Inc., a Nevada corporation (the
“Corporation”), and G. Christopher Colville (the “Grantee”). 
 W I T N E S S E T H

 WHEREAS, pursuant to the Signature Group Holdings, Inc. 2006 Performance Incentive Plan (the
“Plan”), as amended, the Corporation hereby grants to the Grantee, effective as of the date hereof, a restricted stock award (the “Award”), upon the terms and conditions set forth herein and in the Plan; and

 NOW THEREFORE, in consideration of services rendered and to be rendered by the Grantee, and the mutual
promises made herein and the mutual benefits to be derived therefrom, the parties agree as follows: 
 1.
Defined Terms. Capitalized terms used herein and not otherwise defined herein shall have the meaning given to such terms in the Plan. 
 2. Grant. Subject to the terms of this Award Agreement, the Corporation hereby grants to the Grantee an Award with respect to an aggregate of Two Hundred Fifty Thousand
(250,000) restricted shares of Common Stock of the Corporation (the “Restricted Stock”). 

3. Vesting. The Restricted Stock shall vest as follows: (i) the first installment of 125.000 shares
shall vest on November 3, 2013, and (ii) the final installment of $125,000 shares shall vest on May 3, 2014; provided, however, that the Restricted Stock shall be subject to restrictions on transfer pursuant to Section 6 of this
Award Agreement. Notwithstanding anything to the contrary, in the event that you are not re-elected to the Company’s Board of Directors for any reason at the 2013 Annual Meeting of Stockholders (or any adjournment or postponement thereof), the
Shares shall immediately accelerate in full and repurchase right of the Company for any unvested shares under this Agreement shall lapse with respect to such unvested Shares. 

4. Employment. Nothing contained in this Award Agreement or the Plan constitutes an employment or service
commitment by the Corporation or any of its Subsidiaries, affects the Grantee’s status, if he or she is an employee, as an employee at will who is subject to termination without cause, confers upon the Grantee any right to remain employed by or
in service to the Corporation or any of its Subsidiaries, interferes in any way with the right of the Corporation or any of its Subsidiaries at any time to terminate such employment or services, or affects the right of the Corporation or any of its
Subsidiaries to increase or decrease the Grantee’s other compensation or benefits. Nothing in this paragraph, however, is intended to adversely affect any independent contractual right of the Grantee under any written employment agreement or
other agreement with the Corporation. 
 5. Dividend and Voting Rights. After the Award Date, the
Grantee shall be entitled to cash dividends and voting rights with respect to the shares of Restricted Stock subject to the Award even though such shares are not vested, provided that such rights shall terminate immediately as to any shares of
Restricted Stock that are forfeited pursuant to Section 8 hereof. 

 6. Restrictions on Transfer and Sale. Prior to the time they
have become vested pursuant to Section 3 hereof, or Section 7 of the Plan (the “Restricted Transfer and Sale Date”), neither the Restricted Stock, nor any interest therein, amount payable in respect thereof, or Restricted
Property (as defined in Section 8 hereof) may not be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered. The transfer restrictions in the preceding sentence shall not apply to (a) transfers to the
Corporation or (b) transfers by will or the laws of descent and distribution, provided, however that any Restricted Stock so transferred shall remain subject to all other transfer restrictions until the Restricted Transfer and Sale Date.

 7. Stock Certificates. 

(a) Book Entry Form. The Corporation shall, in its discretion, issue the shares of Restricted Stock subject to
the Award either (i) in certificate form as provided in Section 7(b) below or (ii) in book entry form, registered in the name of the Grantee with notations regarding the applicable restrictions on transfer imposed under this Award
Agreement. 
 (b) Certificates to be Held by Corporation; Legend. Any certificates representing shares
of Restricted Stock that may be delivered to the Grantee by the Corporation prior to the Restricted Transfer and Sale Date shall be immediately redelivered by the Grantee to the Corporation to be held by the Corporation until the restrictions on
such shares shall have lapsed. Such certificates shall bear the following legend and any other legends the Corporation may determine to be necessary or advisable to comply with all applicable laws, rules, and regulations: 

“The ownership of this certificate and the shares of stock evidenced hereby and any interest therein are subject
to substantial restrictions on transfer under a Restricted Stock Award Agreement entered into between the registered owner and Signature Group Holdings, Inc. A copy of such Agreement is on file in the office of the Secretary of Signature Group
Holdings, Inc.” 
 (c) Delivery of Certificates upon Lapse of Restrictions. Promptly after the
lapse of the restrictions on any shares of Restricted Stock pursuant to Section 6 hereof, the Change in Control Agreement, or Section 7 of the Plan and the satisfaction of any and all related tax withholding obligations pursuant to
Section 9 hereof, the Corporation shall, as applicable, either remove the notations on any shares of Restricted Stock issued in book entry form or deliver to the Grantee a certificate or certificates evidencing the number of shares of
Restricted Stock for which the transfer and sale restrictions in Section 6 have lapsed. The Grantee (or the beneficiary or personal representative of the Grantee in the event of the Grantee’s death or disability, as the case may be) shall
deliver to the Corporation any written statements or agreements required pursuant to Section 8.1 of the Plan. The shares so delivered shall no longer be restricted shares hereunder. 

8. Adjustments upon Specified Events. Upon the occurrence of certain events relating to the
Corporation’s stock contemplated by Section 7.1 of the Plan, the Administrator will make adjustments if appropriate in the number and kind of securities that may become vested under the Award. If any such adjustment is made under
Section 7.1 of the Plan or an event described in Section 7.3 of the Plan shall occur, and the shares of Restricted Stock are not fully vested upon such event or prior thereto, the restrictions applicable to such shares of Restricted Stock
shall continue in effect with respect to any consideration, property or other securities (the “Restricted Property” and, for the purposes of this Award Agreement, “Restricted Stock” shall include “Restricted
Property,” unless the context otherwise requires) received in respect of such Restricted Stock. Such Restricted Property shall vest at such times and in such proportion as the shares of 

 
Restricted Stock to which the Restricted Property is attributable vest, or would have vested pursuant to the terms hereof if such shares of Restricted Stock had remained outstanding. To the
extent that the Restricted Property includes any cash (other than regular cash dividends provided for in Section 5 hereof), such cash shall be invested, pursuant to policies established by the Administrator, in interest bearing, FDIC-insured
(subject to applicable insurance limits) deposits of a depository institution selected by the Administrator, the earnings on which shall be added to and become a part of the Restricted Property. 

9. Tax Withholding. The Corporation (or any of its Subsidiaries last employing the Grantee) shall be
entitled to require a cash payment by or on behalf of the Grantee and/or to deduct from other compensation payable to the Participant any sums required by federal, state or local tax law to be withheld with respect to the vesting of any Restricted
Stock. 
 10. Notices. Any notice to be given under the terms of this Award Agreement shall be in
writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Grantee at the Grantee’s last address reflected on the Corporation’s payroll records, or at such other address as either party
may hereafter designate in writing to the other. Any notice shall be delivered in person or shall be enclosed in a properly sealed envelope, addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee
prepaid) in a post office or branch post office regularly maintained by the United States Government. Any such notice shall be given only when received, but if the Grantee is no longer employed by or ceases to provide services to the Corporation or
a Subsidiary, notice shall be deemed to have been duly given five business days after the date mailed in accordance with the foregoing provisions of this Section 10. 

11. Plan. The Award and all rights of the Grantee under this Award Agreement are subject to all of the
terms and conditions of the provisions of the Plan, incorporated herein by this reference. The Grantee agrees to be bound by the terms of the Plan and this Award Agreement. The Grantee acknowledges reading and understanding the Plan, the Prospectus
for the Plan, and this Award Agreement. In the event of a conflict or inconsistency between the terms and condition of this Award Agreement and of the Plan, the terms and conditions of the Plan shall govern. Unless otherwise expressly provided in
other sections of this Award Agreement, provisions of the Plan that confer discretionary authority on the Board or the Administrator do not (and shall not be deemed to) create any rights in the Grantee unless such rights are expressly set forth
herein or are otherwise in the sole discretion of the Board or the Administrator so conferred by appropriate action of the Board or the Administrator under the Plan after the date hereof. 

12. Entire Agreement. This Award Agreement and the Plan together constitute the entire agreement with
respect to the subject matter hereof and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan may be amended pursuant to Section 8.6 of the Plan. This
Award Agreement may be amended by the Board from time to time. Any such amendment must be in writing and signed by the Corporation. Any such amendment that materially and adversely affects the Grantee’s rights under this Agreement requires the
consent of the Grantee in order to be effective with respect to the Award. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Grantee hereunder,
but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 
 13. Counterparts. This Award Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one
and the same instrument. 

 14. Section Headings. The section headings of this Award
Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof. 
 15. Governing Law. This Award Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Nevada without regard to conflict of law principles
thereunder. 
 [Signature Page Follows] 

 IN WITNESS WHEREOF, the Corporation has caused this Award Agreement
to be executed on its behalf by a duly authorized officer and the Grantee has hereunto set his or her hand as of the date and year first above written. 

 

			
	 SIGNATURE GROUP HOLDINGS, INC.,

	 a Nevada corporation

		
	 By:
	 	 /s/ Kyle Ross

		 	 Kyle Ross

		 	 Chief Financial Officer

	
	 GRANTEE

	
	 /s/ G. Christopher Colville

	 Signature

	
	 G. Christopher Colville

	 Print Name

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