Document:

EX-4.3

 Exhibit 4.3 

RIGHTS AGREEMENT AMENDMENT AND ASSIGNMENT 

This Amendment and Assignment, dated as of January 2, 2014 (this “Amendment”), to the Rights Agreement, dated as of
October 23, 2007 (as amended, the “Rights Agreement”), is by and between Signature Group Holdings, Inc., a Nevada corporation (the “Predecessor Company”), formerly known as Fremont General Corporation, and Computershare
Inc., as successor in interest to Mellon Investor Services LLC, as Rights Agent (the “Rights Agent”); 
 WHEREAS, on or about
October 15, 2013, the Predecessor Company completed a reverse stock split, pursuant to which every ten outstanding shares of common stock, par value $0.01 per share (“Predecessor Common Stock”) of the Predecessor Company was combined
into one share of Predecessor Common Stock; 
 WHEREAS, the Predecessor Company is party to that certain Agreement and Plan of Merger, dated
November 25, 2013, among the Predecessor Company, SGH Holdco, Inc., a Delaware corporation and wholly owned subsidiary of the Predecessor Company (the “Successor Company”), and SGH Merger Sub, LLC, a Delaware limited liability company
and a wholly owned subsidiary of the Successor Company (“Merger Sub”), which provides for the merger (the “Merger”) of the Predecessor Company with and into Merger Sub, with Merger Sub continuing as the surviving corporation and
as a wholly owned subsidiary of the Successor Company; 
 WHEREAS, in connection with the Merger, the Successor Company has changed its name
to “Signature Group Holdings, Inc.”; 
 WHEREAS, the parties hereto desire that at the effective time of the Merger, the
Predecessor entity shall assign all of its rights and obligations hereunder to the Successor Company and the Successor Company shall assume all such rights and obligations for all purposes, including pursuant to Section 28 of the Rights
Agreement; 
 WHEREAS, Section 27 of the Rights Agreement provides that the Predecessor Company and the Rights Agreement may from time
to time supplement or amend the Rights Agreement; 
 NOW THEREFORE, in consideration of the foregoing premises and mutual agreements set
forth in the Rights Agreement and this Amendment, the parties hereto agree as follows: 
 1. The Predecessor Company hereby assigns all
of its rights and obligations under the Rights Agreement to the Successor Company, and the Successor Company hereby assumes all such rights and obligations, effective as of the effective time of the Merger (the “Effective Time”). Successor
Company shall notify the Rights Agent of the occurrence of the Effective Time promptly thereafter. 
 2. Section 1 of the Rights
Agreement is hereby amended as follows: 
 (a) Section 1(e) is hereby amended by deleting it in its entirety and inserting in lieu
thereof the following: ““Agreement” means this agreement, as amended from time to time.” 
 (b) Section 1(j)
is hereby amended by deleting the amount “$1.00” therein and inserting in lieu thereof the following: “$0.001”. 
 (c)
Section 1(l) is hereby amended by deleting it in its entirety and inserting in lieu thereof the following: ““Company” means Signature Group Holdings, Inc., a Delaware corporation.” 

 (d) Section 1(x) is hereby amended by deleting the amount “$1.00” therein and
inserting in lieu thereof the following: “$0.001”. 
 (e) Section 1(dd) is hereby amended by deleting it in its entirety and
inserting in lieu thereof the following: ““Rights Agent” means Computershare Inc., a Delaware corporation.” 
 3.
Section 11(p) of the Rights Agreement is hereby amended by inserting at the end thereof the following: “It is understood and agreed that a reverse stock split occurred on or about October 15, 2013. Accordingly from and after such date
(and until such time as any further adjustment shall be required pursuant to this Section 11(p)), there shall be ten (10) Rights associated with each share of Common Stock then outstanding or thereafter issued.” 

4. Section 26 is hereby amended as follows: 

(a) Section 26(a) is hereby amended by deleting the contact information for Fremont General Corporation in its entirety and inserting in
lieu thereof: 
 “Signature Group Holdings, Inc. 

15303 Venture Boulevard, Suite 1600 

Sherman Oaks, California 91403 

Attention: General Counsel” 

(b) Section 26(b) is hereby amended by deleting the contact information for Mellon Investor Services LLC in its entirety and inserting in
lieu thereof: 
 “Computershare Inc. 

330 N. Brand Boulevard, Suite 701 

Glendale, California 91203 

Attention: Client Services” 

5. Section 32 is hereby amended by deleting the word “Nevada” therein and inserting in lieu thereof the following:
“Delaware”. 
 6. Exhibit A is hereby amended by deleting it in its entirety and inserting in lieu thereof the document set forth
as Annex A hereto. 
 7. Exhibit B is hereby amended as follows: 

(a) The words “Fremont General Corporation” wherever they appear are hereby deleted and in lieu thereof the following words are
hereby inserted: “Signature Group Holdings, Inc.” 
 (b) The words “Mellon Investor Services LLC” wherever they appear
are hereby deleted and in lieu thereof the following words are hereby inserted: “Computershare Inc.” 
 (c) The word
“Nevada” is hereby deleted and in lieu thereof the following word is hereby inserted: “Delaware”. 
 (d) The words
“a New Jersey limited liability company” are hereby deleted and in lieu thereof the following words are hereby inserted: “Delaware corporation”. 

  
 2 

 7. The word “articles” appearing in Section 11(a)(iii) and Section 31 is
hereby deleted and in lieu thereof the word “certificate” is hereby inserted. 
 8. Except as expressly amended hereby, the Rights
Agreement remains in full force and effect in accordance with its terms. This Amendment shall be governed by and construed in accordance with the laws of the State of Delaware. This Amendment may be executed in any number of counterparts and each of
such counterparts shall for all purposes be deemed an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Amendment transmitted electronically shall have the same authority, effect, and
enforceability as an original signature. 
 9. This Amendment shall be effective as of the Effective Time. 

  
 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to the Rights Agreement to be
duly executed as of the day and year first above written. 
  

					
	SIGNATURE GROUP HOLDINGS, INC.,
	a Nevada Corporation
		
	By:	 	 /s/ Chris Manderson

		 	Name:	 	 Chris Manderson 

		 	Title:	 	EVP & General Counsel
	
	COMPUTERSHARE INC.,
	as Rights Agent
		
	By:	 	 /s/ Dennis V. Moccia

		 	Name:	 	Dennis V. Moccia
		 	Title:	 	Manager, Contract Administration

  

					
	AGREED AND ACCEPTED
	
	SIGNATURE GROUP HOLDINGS, INC.,
	a Delaware Corporation
		
	By:	 	 /s/ Chris Manderson

		 	Name:	 	Chris Manderson
		 	Title:	 	EVP & General Counsel

 ANNEX A 

FORM OF 
 CERTIFICATE OF
DESIGNATION 
 OF 

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK 

OF 
 SIGNATURE GROUP
HOLDINGS, INC. 
 (Pursuant to Section 151 of the 

Delaware General Corporation Law) 

Signature Group Holdings, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware (hereinafter
called the “Corporation”), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation (hereinafter called the “Board of Directors”) as required by Section 151 of the General
Corporation Law by written consent as of December 19, 2013. 
 RESOLVED, that pursuant to the authority expressly granted to and vested
in the Board of Directors in accordance with the provisions of the Amended and Restated Certificate of Incorporation of the Corporation, the Board of Directors hereby creates a series of Preferred Stock, par value $0.001 per share (the
“Preferred Stock”), of the Corporation and hereby states the designation and number of shares, and fixes the relative rights, powers and preferences, and qualifications, limitations and restrictions thereof as follows: 

Section 1. Designation and Amount. The shares of such series shall be classified and designated as Series A Junior
Participating Preferred Stock, par value $0.001 per share (the “Series A Junior Participating Preferred Stock”), and the number of shares constituting such series shall be 665,000. 

Section 2. Dividends and Distributions. 

(a) Subject to the prior and superior rights of the holders of any shares of any series of Preferred Stock ranking prior and superior to the
shares of Series A Junior Participating Preferred Stock with respect to dividends, the holders of shares of Series A Junior Participating Preferred Stock shall be entitled to receive, when, as and if authorized by the Board of Directors
and declared by the Corporation out of funds legally available for the purpose, quarterly dividends payable in cash on or before the 30th day of January, April, July and October in each year (each such date being referred to herein as a
“Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Junior Participating Preferred Stock, in an amount per share (rounded
to the nearest cent) equal to the greater of (a) $0.01 or (b) subject to the provision for adjustment hereinafter set forth, 100 times the aggregate per share amount of all cash dividends, and 100 times the aggregate per share amount
(payable in kind) of all non-cash dividends or other distributions other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock,
par value $0.001 per share, of the Corporation (the “Common Stock”) since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a share of Series A Junior Participating Preferred Stock. In the event the Corporation shall at any time after January 1, 2014 (the “Rights Declaration Date”) (i) declare any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount to which holders of shares of Series A Junior
Participating Preferred Stock were entitled immediately prior to such event under clause (b) of the preceding sentence 

 
shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to such event. 
 (b) The Corporation may not declare or
pay a dividend or distribution on the Common Stock (other than a dividend payable in shares of the Common Stock) unless it simultaneously declares and pays a dividend or distribution on the Series A Junior Participating Preferred Stock as
provided in paragraph (a) above; provided that, in the event no dividend payable in shares of or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, a dividend of $0.01 per share on the Series A Junior Participating Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date. 

(c) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Junior Participating Preferred Stock from
the Quarterly Dividend Payment Date next preceding the date of issue of such shares of Series A Junior Participating Preferred Stock, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment
Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares
of Series A Junior Participating Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly
Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Junior Participating Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable
on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Junior Participating
Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be no more than 30 days prior to the date fixed for the payment thereof. 

Section 3. Voting Rights. The holders of shares of Series A Junior Participating Preferred Stock shall have the following
voting rights: 
 (a) Subject to the provision for adjustment hereinafter set forth, each share of Series A Junior Participating
Preferred Stock shall entitle the holder thereof to 100 votes on all matters submitted to a vote of the holders of Common Stock. In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on Common
Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the number of votes per share to which holders of
shares of Series A Junior Participating Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction, the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

(b) Except as otherwise provided herein or by law, the holders of shares of Series A Junior Participating Preferred Stock and the
holders of shares of Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation. 

(c)(i) If at any time dividends on any Series A Junior Participating Preferred Stock shall be in arrears in an amount equal to six
quarterly dividends thereon, the occurrence of such contingency shall mark the beginning of a period (herein called a “default period”) which shall extend until such time when all accrued and unpaid dividends for all previous quarterly
dividend periods and for the current quarterly 

 
dividend period on all shares of Series A Junior Participating Preferred Stock then outstanding shall have been declared and paid or set apart for payment. During each default period, all
holders of Preferred Stock (including holders of the Series A Junior Participating Preferred Stock) with dividends in arrears in an amount equal to six quarterly dividends thereon, voting as a class, irrespective of series, shall have the right
to elect two directors. 
 (ii) During any default period, such voting right of the holders of Series A Junior Participating Preferred
Stock may be exercised initially at a special meeting called pursuant to subparagraph (iii) of this Section 3(c) or at any annual meeting of stockholders, and thereafter at annual meetings of stockholders, provided that neither such voting
right nor the right of the holders of any other series of Preferred Stock, if any, to increase in certain cases the authorized number of directors shall be exercised unless the holders of ten percent in number of shares of Series A Junior
Participating Preferred Stock outstanding shall be present in person or by proxy. The absence of a quorum of the holders of Common Stock shall not affect the exercise by the holders of Series A Junior Participating Preferred Stock of such
voting right. At any meeting at which the holders of Series A Junior Participating Preferred Stock shall exercise such voting right initially during an existing default period, they shall have the right, voting as a class, to elect directors to
fill such vacancies, if any, in the Board of Directors as may then exist up to two directors or, if such right is exercised at an annual meeting, to elect two directors. If the number which may be so elected at any special meeting does not amount to
the required number, the holders of the Series A Junior Participating Preferred Stock shall have the right to make such increase in the number of directors as shall be necessary to permit the election by them of the required number. After the
holders of the Series A Junior Participating Preferred Stock shall have exercised their right to elect directors in any default period and during the continuance of such period, the number of directors shall not be increased or decreased except
by vote of the holders of Series A Junior Participating Preferred Stock as herein provided or pursuant to the rights of any equity securities ranking senior to or pari passu with the Series A Junior Participating Preferred Stock. 

(iii) Unless the holders of Series A Junior Participating Preferred Stock shall, during an existing default period, have previously
exercised their right to elect directors, the Board of Directors may authorize, or any stockholder or stockholders owning in the aggregate not less than ten percent of the total number of shares of Series A Junior Participating Preferred Stock
outstanding, may request, the calling of a special meeting of the holders of Series A Junior Participating Preferred Stock, which meeting shall thereupon be called by the President, a Vice President or the Secretary of the Corporation. Notice
of such meeting and of any annual meeting at which holders of Series A Junior Participating Preferred Stock are entitled to vote pursuant to this paragraph (c)(iii) shall be given to each holder of record of Series A Junior Participating
Preferred Stock by mailing a copy of such notice to such holder at its last address as the same appears on the books of the Corporation. Such meeting shall be called for a time not earlier than 20 days and not later than 60 days after such
order or request or in default of the calling of such meeting within 60 days after such authorization or request, such meeting may be called on similar notice by any stockholder or stockholders owning in the aggregate not less than ten percent
of the total number of shares of Series A Junior Participating Preferred Stock outstanding. Notwithstanding the provisions of this paragraph (c)(iii), no such special meeting shall be called during the period within 60 days immediately
preceding the date fixed for the next annual meeting of the stockholders. 
 (iv) In any default period, the holders of Common Stock, and
other classes of stock of the Corporation if applicable, shall continue to be entitled to elect the whole number of directors until the holders of Series A Junior Participating Preferred Stock shall have exercised their right to elect two
directors voting as a class, after the exercise of which right (x) the directors so elected by the holders of Series A Junior Participating Preferred Stock shall continue in office until their successors shall have been elected by such
holders or until the expiration of the default period, and (y) any vacancy in the Board of Directors may (except as provided in paragraph (c)(ii) of this Section 3) be filled by vote of a majority of

 
the remaining directors theretofore elected by the holders of the class of stock which elected the director whose office shall have become vacant. References in this paragraph (c) to
directors elected by the holders of a particular class of stock shall include directors elected by such directors to fill vacancies as provided in clause (y) of the foregoing sentence. 

(v) Immediately upon the expiration of a default period, (x) the right of the holders of Series A Junior Participating Preferred
Stock as a class to elect directors shall cease, (y) the term of any directors elected by the holders of Series A Junior Participating Preferred Stock as a class shall terminate, and (z) the number of directors shall be such number as
may be provided for in the Amended and Restated Certificate of Incorporation of the Corporation (the “Certificate of Incorporation”) or Bylaws of the Corporation irrespective of any increase made pursuant to the provisions of paragraph
(c)(ii) of this Section 3 (such number being subject, however, to change thereafter in any manner provided by law or in the Certificate of Incorporation or Bylaws of the Corporation). Any vacancies in the Board of Directors effected by the
provisions of clauses (y) and (z) in the preceding sentence may be filled by a majority of the remaining directors. 
 (d) Except
as set forth herein, holders of Series A Junior Participating Preferred Stock shall have no special voting rights and their consent shall not be required (except to the extent they are entitled to vote with holders of Common Stock as set forth
herein) for taking any corporate action. 
 Section 4. Certain Restrictions. 

(a) Whenever quarterly dividends or other dividends or distributions payable on the Series A Junior Participating Preferred Stock as
provided in Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Junior Participating Preferred Stock outstanding shall have been paid in full,
the Corporation shall not: 
 (i) declare or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire
for consideration any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Junior Participating Preferred Stock; 

(ii) declare or pay dividends on or make any other distributions on any shares of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Junior Participating Preferred Stock, except dividends paid ratably on the Series A Junior Participating Preferred Stock and all such parity stock on which dividends are payable or
in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; 
 (iii) redeem or purchase or
otherwise acquire for consideration shares of any stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Junior Participating Preferred Stock, provided that the Corporation may at any
time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of any stock of the Corporation ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the Series A Junior
Participating Preferred Stock; or 
 (iv) redeem or purchase or otherwise acquire for consideration any shares of Series A Junior
Participating Preferred Stock, or any shares of stock ranking on a parity with the Series A Junior Participating Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of
Directors) to all holders of such shares upon such terms as the Board of Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good
faith will result in fair and equitable treatment among the respective series or classes. 

 (b) The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise
acquire for consideration any shares of stock of the Corporation unless the Corporation could, under paragraph (a) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 

Section 5. Reacquired Shares. Any shares of Series A Junior Participating Preferred Stock purchased or otherwise acquired by
the Corporation in any manner whatsoever shall become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock to be created by resolution or resolutions of the Board of Directors, subject to
the conditions and restrictions on issuance set forth herein. 
 Section 6. Liquidation, Dissolution or Winding Up. 

(a) Upon any liquidation (voluntary or otherwise), dissolution or winding up of the Corporation, no distribution shall be made to the holders
of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Junior Participating Preferred Stock unless, prior thereto, the holders of shares of Series A Junior Participating
Preferred Stock shall have received an amount equal to $1,000.00 per share of Series A Junior Participating Preferred Stock, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such
payment (the “Series A Liquidation Preference”). Following the payment of the full amount of the Series A Liquidation Preference, no additional distributions shall be made to the holders of shares of Series A Junior
Participating Preferred Stock unless, prior thereto, the holders of shares of Common Stock shall have received an amount per share (the “Common Adjustment”) equal to the quotient obtained by dividing (i) the Series A Liquidation
Preference by (ii) 100 (as appropriately adjusted as set forth in subparagraph (c) below to reflect such events as stock splits, stock dividends and recapitalizations with respect to the Common Stock) (such number in clause (ii), the
“Adjustment Number”). Following the payment of the full amount of the Series A Liquidation Preference and the Common Adjustment in respect of all outstanding shares of Series A Junior Participating Preferred Stock and Common
Stock, respectively, holders of Series A Junior Participating Preferred Stock and holders of shares of Common Stock shall receive their ratable and proportionate share of the remaining assets to be distributed in the ratio of the Adjustment
Number to 1 with respect to such Preferred Stock and Common Stock, on a per share basis, respectively. 
 (b) In the event, however, that
there are not sufficient assets available to permit payment in full of the Series A Liquidation Preference and the liquidation preferences of all other series of preferred stock, if any, which rank on a parity with the Series A Junior
Participating Preferred Stock, then such remaining assets shall be distributed ratably to the holders of such parity shares in proportion to their respective liquidation preferences. In the event, however, that there are not sufficient assets
available to permit payment in full of the Common Adjustment, then such remaining assets shall be distributed ratably to the holders of Common Stock. 

(c) In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on Common Stock
payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the Adjustment Number in effect immediately prior to such
event shall be adjusted by multiplying such Adjustment Number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event. 
 (d) In determining whether a distribution (other than upon voluntary or
involuntary liquidation) by dividend, redemption or other acquisition of shares of stock of the Corporation or otherwise is 

 
permitted under the General Corporation Law of the State of Delaware, no effect shall be given to amounts that would be needed, if the Corporation were to be dissolved at the time of the
distribution, to satisfy the preferential rights upon dissolution of holders of shares of stock of the Company whose preferential rights upon dissolution are superior to those receiving the distribution. 

(e) Neither the merger nor consolidation of the Corporation into or with another corporation nor the merger or consolidation of any other
corporation into or with the Corporation shall be deemed to be a liquidation, dissolution or winding up of the Corporation within the meaning of this Section 6. 

Section 7. Consolidation, Merger, etc. In case the Corporation shall enter into any consolidation, merger, combination or other
transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case the shares of Series A Junior Participating Preferred Stock shall at the same
time be similarly exchanged or changed in an amount per share (subject to the provision for adjustment hereinafter set forth) equal to 100 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case
may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of
shares of Series A Junior Participating Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 Section 8. No
Redemption. The shares of Series A Junior Participating Preferred Stock shall not be redeemable. 
 Section 9. Ranking.
The Series A Junior Participating Preferred Stock shall rank junior to all other series of Preferred Stock as to the payment of dividends and the distribution of assets, unless the terms of any such series shall provide otherwise. 

Section 10. Amendment. At any time when any shares of Series A Junior Participating Preferred Stock are outstanding, the
Certificate of Incorporation, including the terms of this Certificate of Designation, shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of the Series A Junior Participating
Preferred Stock so as to affect them adversely without the affirmative vote of the holders of a majority or more of the outstanding shares of Series A Junior Participating Preferred Stock, voting separately as a class. 

Section 11. Fractional Shares. Series A Junior Participating Preferred Stock may be issued in fractions of a share which
shall entitle the holder, in proportion to such holder’s fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of holders of Series A Junior Participating
Preferred Stock.EX-10.1

 Exhibit 10.1 

AMENDMENT NUMBER 3 TO LOAN AGREEMENT 

(LOAN NO. 401179843) 

THIS AMENDMENT NUMBER 3 TO LOAN AGREEMENT (this “Amendment”) is entered into as of December 30, 2013, by and
between PACIFIC WESTERN BANK (the “Lender”), and NORTH AMERICAN BREAKER CO., LLC, a California limited liability company (“Borrower”). 

W I T N E S S E T H 
 WHEREAS,
North American Breaker Co., Inc., a California corporation (“Original Borrower”), and the Lender are parties to: (a) that certain Business Loan Agreement, dated September 29, 2011 (as amended, restated, supplemented, or
modified from time to time, the “Loan Agreement”); and (b) the other Related Documents; 
 WHEREAS, Original Borrower
was converted into Borrower by the filing of a Limited Liability Company Articles of Organization - Conversion with the California Secretary of State on May 10, 2012; 

WHEREAS, Borrower is a wholly-owned subsidiary of Signature Group Holdings, Inc., a Nevada corporation (“Parent”); 

WHEREAS, SGH HoldCo, Inc., a Delaware corporation (“Holdings”), is a newly formed corporation; 

WHEREAS, Parent wishes to merge with and into SGH Merger Sub, LLC, a wholly owned limited liability company subsidiary of Holdings as part of
a “Reincorporation” described in that certain Definitive Proxy Statement filed by Parent with the Securities and Exchange Commission on November 27, 2013; 

WHEREAS, the Reincorporation described above requires an amendment to the Loan Agreement so as to avoid an Event of Default under the Loan
Agreement; 
 WHEREAS, Borrower has requested an additional term loan of $11,500,000 in connection with the Reincorporation described above
(the “Additional Term Loan”); 
 WHEREAS, Borrower has requested an amendment to the Loan Agreement as described above, and
Lender is willing to consent to such amendment and the Additional Term Loan, on the terms and conditions set forth herein; 
 NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Loan Agreement as follows: 

1. DEFINITIONS. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the
Loan Agreement, as amended hereby. 

 2. AMENDMENTS.  

(a) The definition of “Borrowing Base” is amended and restated as follows: 

“Borrowing Base. The words ‘Borrowing Base’ mean as determined by Lender from time to time in its sole discretion, the
lesser of: 
 (1) $4,000,000; and 

(2) the sum of: 

(a) 80.000% of the aggregate amount of Eligible Accounts; and 

(b) 60.000% of the aggregate amount of Eligible Inventory; provided that said amount shall not exceed $2,500,000. 

Lender reserves the right to impose a reserve against the Borrowing Base equal to some or all of the aggregate amount of the Rebate Accruals if
Lender has not received agreements with each of Borrower’s account debtors, pursuant to which each such account debtor has agreed in writing, in form and substance satisfactory to Lender in its reasonable discretion, that such account debtor
waives any right to assert against Lender any counterclaim or offset to the amounts due from such account debtor on Borrower’s accounts.” 

(b) The Financial Covenants/Ratios in the Loan Agreement are hereby amended and restated as follows: 

“Financial Covenants/Ratios. Borrower shall maintain the following: 

(i) COMMERCIAL LOAN DEBT SERVICE COVERAGE RATIO. A minimum Commercial Loan Debt Service Coverage Ratio of 1.25 to 1.00,
which is calculated as EBITDA, less cash taxes and distributions, divided by the sum of (x) the current portion of long term debt and (y) interest expense, in each case, calculated for the immediately preceding four fiscal quarters of
Borrower. This Ratio is to be reported quarterly. Calculation shall exclude the distributions of the loan proceeds of term loan #406389620 in the amount of $11,500,000.00. 

(ii) SENIOR DEBT TO EBITDA. A maximum ratio, set forth in the table below, of the outstanding aggregate balance of sums
due Lender to EBITDA for the immediately preceding four fiscal quarters of Borrower. This Ratio is to be reported quarterly. 
  

					
	APPLICABLE FISCAL QUARTER ENDING	  	MAXIMUM
RATIO	 
		
	 12/31/13, 3/31/14 and 6/30/14
	  	 	2.50:1	  
		
	 9/30/14 and thereafter
	  	 	2.25:1	  

  
 1 

 (iii) TOTAL DEBT TO EBITDA. A maximum ratio, set forth in the table below,
of the outstanding aggregate balance of all indebtedness owed by Borrower to EBITDA for the immediately preceding four fiscal quarters of Borrower. This Ratio is to be reported quarterly. 

 

					
	APPLICABLE FISCAL QUARTER ENDING	  	MAXIMUM
RATIO	 
		
	 12/31/13, 3/31/14, 6/30/14, 9/30/14 and 12/31/14
	  	 	3.00:1	  
		
	 3/31/15 and thereafter
	  	 	2.50:1	  

 (iv) EFFECTIVE TANGIBLE NET WORTH. Borrower shall maintain a minimum Effective Tangible
Net Worth of (a) <$5,400,000> on December 31, 2013 and (b) on the last day of each fiscal quarter thereafter, the sum of <$5,400,000> plus 75% of Borrower’s cumulative positive net income commencing on January 1,
2014 and continuing through the date of calculation. The term “Effective Tangible Net Worth” means Borrower’s total assets excluding all intangible assets (i.e. goodwill, trademarks, patents, copyrights, organization expenses, and
similar intangible items) and excluding due from related entities (e.g. affiliates, employees, subsidiaries, shareholders, etc.), less total liabilities excluding debt subordinated to Lender. This amount must be maintained at all times and shall be
reported quarterly as of the last date of each fiscal quarter. 
 (v) PROFITABILITY. Borrower must be profitable each fiscal quarter.
This is to be reported quarterly.” 
 (c) Reference is made to the following “Default” in the Loan Agreement:

 “Change in Ownership. Any change in ownership, whether direct or indirect, of twenty-five percent (25%) or more of the
common equity of Borrower or Borrower parent, Signature Group Holdings., Inc.” 
 (d) Effective upon the Third Amendment Effective Date
(as defined below), the “Default” provision in the Loan Agreement, as quoted in Section 2(c) hereof, is hereby amended and restated as follows: 

“Change in Ownership. (a) Prior to the Reincorporation described below, any change in ownership, whether direct or
indirect, of twenty-five percent (25%) or more of the common equity of Borrower or Borrower parent, Signature Group Holdings, Inc., a Nevada corporation (“Parent”) or (b) following the Reincorporation, any change in
ownership, whether direct or indirect, of: (x) any equity of Borrower or SGH Merger Sub, LLC, a Delaware limited liability company (“SGH Merger Sub”), a wholly owned subsidiary of SGH HoldCo, Inc., a Delaware corporation
(“Holdings”); or (y) twenty-five percent (25%) or more of the common equity of Holdings. Lender acknowledges that the following transaction shall not constitute an Event of Default: a merger by Parent with and into
SGH Merger Sub under the terms of the ‘Reincorporation’ described in that Definitive Proxy Statement filed by Parent with the Securities and Exchange Commission on November 27, 2013.” 

  
 2 

 (e) The amendments contemplated by Sections 2(a) through 2(d) hereof are not an amendment
to any other provision of the Loan Agreement or any provision of the Related Documents, nor are they a waiver of any current or future default or Event of Default under the Loan Agreement or the other Related Documents. The Lender is not obligated
to provide this or any other amendment. 
 3. CONDITIONS PRECEDENT TO THIS AMENDMENT. The satisfaction of each of the
following shall constitute conditions precedent to the effectiveness of this Amendment and each and every provision hereof (the date on which such conditions precedent are satisfied or waived in the Lender’s sole discretion shall be the
“Third Amendment Effective Date”): 
 (a) The representations and warranties in the Loan Agreement and the Related Loan
Documents shall be true and correct in all material respects on and as of the Third Amendment Effective Date, as though made on such date (except to the extent that such representations and warranties relate solely to an earlier date); 

(b) No Event of Default shall have occurred and be continuing on the date hereof or as of the Third Amendment Effective Date; 

(c) No injunction, writ, restraining order or other order of any nature prohibiting, directly or indirectly, the consummation of the
transactions contemplated herein shall have been issued and remain in force by any governmental authority against Borrower, the Lender or any of their affiliates; 

(d) No material adverse change in the financial or operating condition of Borrower shall have occurred; 

(e) Borrower shall have delivered to the Lender the Ratification and Consent, the form of which is attached as Exhibit I, executed by
Signature Credit Partners, Inc.; 
 (f) Borrower shall have executed and delivered this Amendment to the Lender by no later than
December 31, 2013; and 
 (g) Borrower shall have executed and delivered, and caused to be executed and delivered, all documents
requested by Lender in connection with the Additional Term Loan. 
 4. ATTORNEY’S FEES AND COSTS. Borrower agrees to pay
on demand the Lender’s reasonable and customary attorneys’ fees and costs in drafting and negotiating this Amendment and all or documents executed in connection therewith. 

5. CONSTRUCTION. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
CALIFORNIA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF CALIFORNIA. 

  
 3 

 6. ENTIRE AMENDMENT; EFFECT OF AMENDMENT. This Amendment, and the terms and
provisions hereof, constitutes the entire agreement between the parties pertaining to the subject matter hereof and supersedes any and all prior or contemporaneous amendments relating to the subject matter hereof. Except as expressly set forth in
this Amendment, the Loan Agreement and the Related Documents as previously amended shall remain unchanged and in full force and effect. To the extent any terms or provisions of this Amendment conflict with those of the Loan Agreement or the Related
Documents, the terms and provisions of this Amendment shall control. This Amendment is a Related Document. 
 7. COUNTERPARTS;
TELEFACSIMILE EXECUTION. This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Amendment by signing any
such counterpart. Delivery of an executed counterpart of this Amendment by telefacsimile shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment
by telefacsimile also shall deliver an original executed counterpart of this Amendment, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment. 

8. MISCELLANEOUS. 

(a) Upon the effectiveness of this Amendment, each reference in the Loan Agreement to “this Agreement,”
“hereunder,” “herein,” “hereof” or words of like import referring to the Loan Agreement shall mean and refer to the Loan Agreement as amended by this Amendment. 

(b) Upon the effectiveness of this Amendment, each reference in the Loan Documents to the “Loan Agreement,”
“thereunder,” “therein,” “thereof” or words of like import referring to the Loan Agreement shall mean and refer to the Loan Agreement as amended by this Amendment. 

(c) This Amendment shall be binding on and shall inure to the benefit of the successors and assigns of the parties thereto. 

  
 4 

 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered as of the
date first written above. 
  

			
	NORTH AMERICAN BREAKER CO., LLC
		
	By:	 	  

	Title:	 	  

	
	PACIFIC WESTERN BANK
		
	By:	 	  

	Title:	 	  

  
 5 

 EXHIBIT I 

REAFFIRMATION AND CONSENT 

All capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to them in that certain Loan
Agreement, dated September 29, 2011 (as amended, restated, supplemented or otherwise modified, the “Loan Agreement”), by and between PACIFIC WESTERN BANK (the “Lender”) and NORTH AMERICAN BREAKER CO.,
INC., a California corporation, or in that certain Amendment Number 3 to Loan Agreement, dated as of December 30, 2013 (the “Amendment”), by and between Lender and NORTH AMERICAN BREAKER CO., LLC, a California
limited liability company. The undersigned hereby (a) represents and warrants to the Lender that the execution, delivery, and performance of this Reaffirmation and Consent are within its powers, have been duly authorized by all necessary
action, and are not in contravention of any law, rule, or regulation, or any order, judgment, decree, writ, injunction or award of any arbitrator, court or governmental authority, or of the terms of its charter or bylaws, or of any contract or
undertaking to which it is a party or by which any of its properties may be bound or affected; (b) consents to the transactions contemplated by the Amendment; (c) agrees to the amendments to the Loan Agreement and the Related Documents set
forth in the Amendment; (d) acknowledges and reaffirms its obligations owing to the Lender under any Related Document to which it is a party, as amended by the Amendment; and (e) agrees that, except as amended by the Amendment, each of the
Related Documents to which it is a party is and shall remain in full force and effect. Although the undersigned has been informed of the matters set forth herein and has acknowledged and agreed to same, it understands that the Lender has no
obligations to inform it of such matters in the future or to seek its acknowledgment or agreement to future amendments, other than to Related Documents to which the undersigned is a party, and nothing herein shall create such a duty. Delivery of an
executed counterpart of this Reaffirmation and Consent by telefacsimile shall be equally as effective as delivery of an original executed counterpart of this Reaffirmation and Consent. Any party delivering an executed counterpart of this
Reaffirmation and Consent by telefacsimile also shall deliver an original executed counterpart of this Reaffirmation and Consent but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding
effect of this Reaffirmation and Consent. This Reaffirmation and Consent shall be governed by the laws of the State of California. 

This Reaffirmation and Consent shall be effective as to each of the undersigned upon the undersigned’s execution and delivery hereof.

  
 6 

 IN WITNESS WHEREOF, each of the undersigned has caused this Reaffirmation and Consent to be
executed as of December 30, 2013. 
  

					
	SIGNATURE CREDIT PARTNERS, INC., a Nevada corporation
		
	By:	 	  

		 	Its:	 	  

  
 7

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