0000897069-15-000544.txt : 20151208 0000897069-15-000544.hdr.sgml : 20151208 20151208173058 ACCESSION NUMBER: 0000897069-15-000544 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20151208 DATE AS OF CHANGE: 20151208 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: INSIGNIA SYSTEMS INC/MN CENTRAL INDEX KEY: 0000875355 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ADVERTISING [7310] IRS NUMBER: 411656308 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-43578 FILM NUMBER: 151276477 BUSINESS ADDRESS: STREET 1: 8799 BROOKLYN BLVD. CITY: MINNEAPOLIS STATE: MN ZIP: 55445 BUSINESS PHONE: 7633926200 MAIL ADDRESS: STREET 1: 8799 BROOKLYN BLVD. CITY: MINNEAPOLIS STATE: MN ZIP: 55445 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: AIR T INC CENTRAL INDEX KEY: 0000353184 STANDARD INDUSTRIAL CLASSIFICATION: AIR COURIER SERVICES [4513] IRS NUMBER: 521206400 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 3524 AIRPORT RD CITY: MAIDEN STATE: NC ZIP: 28650 BUSINESS PHONE: 7043772109 MAIL ADDRESS: STREET 1: P O BOX 488 CITY: DENVER STATE: NC ZIP: 28037 FORMER COMPANY: FORMER CONFORMED NAME: AIR TRANSPORTATION HOLDING CO INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: ATLANTA EXPRESS AIRLINE CORP DATE OF NAME CHANGE: 19840321 SC 13D/A 1 cg647.htm cg647.htm

CUSIP NO. 45765Y105
Page 1 of 12 Pages
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D/A

Under the Securities Exchange Act of 1934
(Amendment No. 4)


INSIGNIA SYSTEMS, INC.
(Name of Issuer)

Common Stock, par value of $.01 per share
(Title of Class of Securities)

45765Y105
(CUSIP Number)

Air T, Inc.
3524 Airport Road
Maiden, NC 28650
Telephone: (828) 464-8741
 (Name, Address and Telephone Number of Persons Authorized to Receive Notices and Communications)

December 5, 2015
(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ¨



 
 
 
CUSIP NO. 45765Y105
Page 2 of 12 Pages


1
NAME OF REPORTING PERSON
 
Air T, Inc.
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
 
 
(a) o
(b) T
 
3
SEC USE ONLY
4
SOURCE OF FUNDS (SEE INSTRUCTIONS)
 
WC
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
 
 
¨
 
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Minnesota
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7
SOLE VOTING POWER
 
1,644,593
8
SHARED VOTING POWER
 
0
9
SOLE DISPOSITIVE POWER
 
1,644,593
10
SHARED DISPOSITIVE POWER
 
0
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
1,644,593
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
 
 
T
 
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
14.13%
14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
 
CO


 
 
 
CUSIP NO. 45765Y105
Page 3 of 12 Pages



1
NAME OF REPORTING PERSON
 
Groveland Capital LLC
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
 
 
(a) ¨
(b) T
 
3
SEC USE ONLY
4
SOURCE OF FUNDS (SEE INSTRUCTIONS)
 
WC
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
 
 
¨
 
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7
SOLE VOTING POWER
 
0
8
SHARED VOTING POWER
 
422,000
9
SOLE DISPOSITIVE POWER
 
0
10
SHARED DISPOSITIVE POWER
 
422,000
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
422,000
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
 
 
T
 
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
3.63%
14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
 
OO


 
 
 
CUSIP NO. 45765Y105
Page 4 of 12 Pages



1
NAME OF REPORTING PERSON
 
Groveland Hedged Credit Fund LLC
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
 
 
(a) ¨
(b) T
 
3
SEC USE ONLY
4
SOURCE OF FUNDS (SEE INSTRUCTIONS)
 
WC
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
 
 
¨
 
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7
SOLE VOTING POWER
 
0
8
SHARED VOTING POWER
 
422,000
9
SOLE DISPOSITIVE POWER
 
0
10
SHARED DISPOSITIVE POWER
 
422,000
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
422,000
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
 
 
T
 
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
3.63%
14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
 
OO


 
 
 
CUSIP NO. 45765Y105
Page 5 of 12 Pages



1
NAME OF REPORTING PERSON
 
Nicholas J. Swenson
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
 
 
(a) ¨
(b) T
 
3
SEC USE ONLY
4
SOURCE OF FUNDS (SEE INSTRUCTIONS)
 
PF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
 
 
¨
 
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
United States
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7
SOLE VOTING POWER
 
0
8
SHARED VOTING POWER
 
422,000
9
SOLE DISPOSITIVE POWER
 
0
10
SHARED DISPOSITIVE POWER
 
422,000
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
422,000
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
 
 
T
 
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
3.63%
14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
 
IN


 
 
 
CUSIP NO. 45765Y105
Page 6 of 12 Pages


Item 1.                      Security and Issuer.

This Amended Schedule 13D relates to shares of the Common Stock, par value $.01 per share (the “Common Stock”), of Insignia Systems, Inc., a Minnesota corporation (the “Issuer”). The address of the principal executive offices of the Issuer is 8799 Brooklyn Blvd., Minneapolis, MN 55445.

Nicholas J. Swenson is the Chief Executive Officer of Air T, Inc., a Delaware corporation (“Air T”). Mr. Swenson also serves as a director of Air T. By virtue of Mr. Swenson serving on the Board of Directors of Air T and as the Chief Executive Officer of Air T, and by virtue of Mr. Swenson’s control of the Groveland Group (as defined below), Air T and the Groveland Group may be deemed to constitute a “group” for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Air T expressly disclaims beneficial ownership of the securities held by the Groveland Group. The securities reported herein as being beneficially owned by Air T do not include any securities held by any member of the Groveland Group. Air T may direct the vote and disposition of the 1,644,593 shares of Common Stock it holds directly.
 
With regard to Groveland Capital LLC (“Groveland Capital”), Groveland Hedged Credit Fund LLC (“Groveland Fund”) and Nicholas J. Swenson (collectively, the “Groveland Group”), this Schedule 13D relates to Common Stock of the Issuer purchased by the Groveland Fund. The Groveland Fund may direct the vote and disposition of the 422,000 shares of Common Stock it holds directly. Groveland Capital serves as the investment adviser and general partner to the Groveland Fund and may direct the vote and disposition of the 422,000 shares of Common Stock held by the Groveland Fund. Mr. Swenson is the Managing Member of Groveland Capital and may direct Groveland Capital to direct the vote and disposition of the 422,000 shares of Common Stock held by the Groveland Fund. The Groveland Group expressly disclaims beneficial ownership of securities held by Air T. The securities reported herein as being beneficially owned by the Groveland Group do not include any securities held by Air T.

Item 2.
Identity and Background.

(a)           This Amended Schedule 13D is being filed jointly by Air T and the Groveland Group.

The parties identified in the list below constitute the “Groveland Group”:

●   
Groveland Capital LLC, a Delaware limited liability company and investment adviser to Groveland Hedged Credit Fund LLC.
 
●   
Groveland Hedged Credit Fund LLC, a Delaware limited liability company.
 
●   
Nicholas J. Swenson as the Managing Member of Groveland Capital LLC.
 
Each of the persons identified herein is referred to as a “Reporting Person” and, collectively, as the “Reporting Persons.” Each of the Reporting Persons is a party to that certain Joint Filing Agreement attached as Exhibit 1 to the initial Schedule 13D, as filed on August 18, 2014.  The Reporting Persons are filing this Amended Schedule 13D jointly, as they may be considered a “group” under Section 13(d)(3) of the Exchange Act.  However, neither the fact of this filing nor anything contained herein shall be deemed to be an admission by the Reporting Persons that such a group exists.

 
 
 
CUSIP NO. 45765Y105
Page 7 of 12 Pages

 
This statement is filed by Mr. Swenson, with respect to the shares of Common Stock beneficially owned by him, as follows: shares of Common Stock held in the name of the Groveland Fund in Mr. Swenson’s capacity as Managing Member of Groveland Capital.

(b) – (c)  The principal business address of each of Groveland Capital, the Groveland Fund and Mr. Swenson is 5000 West 36th Street, Suite 130, Minneapolis, MN 55416. Each of Groveland Capital and the Groveland Fund are engaged in various interests, including investments. The principal employment of Mr. Swenson is (1) private investor and (2) serving as the sole Managing Member of AO Partners and Groveland Capital.

The principal business address of Air T is 3524 Airport Road, Maiden, North Carolina 28650. Air T was incorporated under the laws of the State of Delaware in 1980 and operates wholly owned subsidiaries in three industry segments: (1) the overnight air cargo segment, comprised of its Mountain Air Cargo, Inc. and CSA Air, Inc. subsidiaries, operates in the air express delivery services industry; (2) the ground equipment sales segment, comprised of its Global Ground Support, LLC subsidiary, manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, the military and industrial customers; and (3) the ground support services segment, comprised of its Global Aviation Services, LLC subsidiary, provides ground support equipment maintenance and facilities maintenance services to domestic airlines and aviation service providers.  Information regarding Air T’s current executive officers and directors is attached as Exhibit 2 to the initial Schedule 13D, as filed on August 18, 2014.

(d)           None of the Reporting Persons described herein has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).

(e)           None of the Reporting Persons described herein has, during the last five years, been party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violations with respect to such laws.

(f)           Mr. Swenson is a citizen of the United States of America.

Item 3.
Source and Amount of Funds or Other Consideration.

The Common Stock was acquired in open market purchases with the working capital of Air T or the Groveland Fund, as applicable. The aggregate amount of funds expended, excluding commissions, to acquire shares held by Air T and the Groveland Fund is approximately $6,114,000.

Item 4.
Purpose of Transaction.

The Reporting Persons purchased the Common Stock for investment purposes. The intent of beneficial ownership of the Reporting Persons is to influence the policies of the Issuer and assert shareholder rights, with a goal of maximizing the value of the Common Stock.

In connection with the Issuer’s 2015 annual meeting, the Issuer and the Reporting Persons had previously entered into a Standstill Agreement filed as Exhibit 3 to Amendment No. 1 to the Schedule 13D, as filed on November 12, 2014 (the “Agreement”), which has been superseded by a new Standstill Agreement.

 
 
 
CUSIP NO. 45765Y105
Page 8 of 12 Pages

 
On December 5, 2015, the Reporting Persons entered into a new standstill agreement (the “Agreement”) with the Company and Sardar Biglari, Philip L. Cooley, The Lion Fund II, L.P. (“Lion Fund”) and Biglari Capital Corp. (“BCC” and, collectively with Biglari, Cooley and Lion Fund, the “Biglari Group”).  The Agreement supersedes the previously announced standstill agreement between the Company and the Reporting Persons (sometimes referred to herein as the Air T Group) dated as of November 8, 2014, as amended April 29, 2015.

Under the Agreement, the Company agreed to increase the size of its board of directors from seven directors to nine directors, effective as of December 5, 2015. The Company also agreed to elect Mr. Biglari and Dr. Cooley to the Company’s board of directors effective as of the same date. The Company further agreed to nominate and recommend that shareholders elect Mr. Swenson, Jacob J. Berning, Mr. Biglari and Dr. Cooley as four of no more than nine total nominees for election as directors at the 2016 annual meeting of shareholders, which must be held no later than June 30, 2016.  The Company has further agreed to reimburse the Air T Group and the Biglari Group for certain expenses incurred in connection with the Agreement and related matters.

Under the Agreement, the members of the Air T Group and the Biglari Group have agreed to vote all shares of the Company’s common stock beneficially owned by them in favor of all of the board’s director nominees at the 2016 annual meeting of shareholders, for approval of the advisory vote to approve executive compensation, in accordance with the board of directors’ recommendation on any advisory vote on the frequency of future advisory votes to approve executive compensation and for the ratification of the Company’s independent auditors.  The Air T Group and the Biglari Group have each agreed to also abide by certain standstill provisions until the conclusion of the Company’s 2016 annual meeting of shareholders or any earlier date, if any, upon which the Company has materially breached certain of the Company’s commitments under the Agreement.

During the period for which the restrictions apply, each of the Air T Group and the Biglari Group is restricted, subject to certain limited exceptions, from: (i) submitting, inducing or encouraging the submission of any shareholder proposal or notice of nomination or other business for consideration at a meeting of the Company’s shareholders; (ii) opposing directors nominated by the board of directors; (ii) participating in any “group” within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, other than their respective shareholder group or any group deemed to arise from the Agreement; (iii) participating in the solicitation of any proxy other than in support of the board of directors’ nominees; (iv) calling a special meeting of shareholders; (v) seeking, other than as a director of the Company, to control or influence the governance or policies of the Company; (vi) effecting or encouraging, other than as a director of the Company, to acquire any material assets or business of the Company to conduct any business combination involving any the Company, or any extraordinary transaction with respect to the Company, and (vii) disclosing or pursuing certain intentions with respect to the Agreement.  The full text of the Agreement is attached as Exhibit 4 to this Amendment No. 4 to the Schedule 13D.
 
The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement.

The Reporting Persons may make further purchases of shares of Common Stock (including through a 10b5-1 plan). The Reporting Persons may dispose of any or all the shares of Common Stock held by them.

To the extent the actions described herein may be deemed to constitute a “control purpose” with respect to the Securities Exchange Act of 1934, as amended, and the regulations thereunder, the Reporting Persons have such a purpose. Except as noted in this Amended Schedule 13D, none of the Reporting Persons currently has any plans or proposals, which relate to, or would result in, any of the matters referred to in paragraphs (a) through (j), inclusive of Item (4) of Schedule 13D. Such individuals may, at any time and from time to time, review or reconsider their positions and formulate plans or proposals with respect thereto.

 
 
 
CUSIP NO. 45765Y105
Page 9 of 12 Pages

 
Item 5.
Interests in Securities of the Issuer.

(a)           The following list sets forth the aggregate number and percentage (based on 11,638,403 shares of Common Stock outstanding as reported in the Issuer’s Form 10-Q, for the period ended September 30, 2015) of outstanding shares of Common Stock owned beneficially by each Reporting Person named in Item 2.  As a group, the Reporting Persons would hold 2,066,593 shares of Common Stock, or 17.76% of the outstanding Common Stock:

Name
Shares of Common Stock Beneficially Owned
Percentage of Shares of Common Stock Beneficially Owned
Air-T(1)
1,644,593
14.13%
Groveland Capital (2)
422,000
3.63%
Groveland Fund (2)
422,000
3.63%
Nicholas J. Swenson (3)
422,000
3.63%

(1)
Air T has sole voting and dispositive power with regard to the shares of Common Stock that it holds. Mr. Swenson serves on the Board of Directors of Air T and is the Chief Executive Officer of Air T.
 
(2)
Groveland Capital is the investment adviser to the Groveland Fund and, as investment adviser, has voting and dispositive power with regard to the shares of Common Stock held by the Groveland Fund. Because Mr. Swenson is the Managing Member of Groveland Capital, he has the power to direct the affairs of Groveland Capital. Therefore, Groveland Capital may be deemed to share with Mr. Swenson voting and dispositive power with regard to the shares of Common Stock held by the Groveland Fund.
 
(3)
Because Mr. Swenson is the Managing Member of Groveland Capital, the investment adviser of the Groveland Fund, he has the power to direct the affairs of the Groveland Fund, including the voting and disposition of shares of Common Stock held in the name of the Groveland Fund. Therefore, Mr. Swenson is deemed to share voting and dispositive power with respect to the shares of Common Stock held by the Groveland Fund.
 
(b)           Mr. Swenson has shared voting and dispositive power of the Common Stock beneficially owned by Groveland Capital and the Groveland Fund by virtue of each such entity’s and person’s relationship to the other as described in Item 5(a). Air T has sole voting and dispositive power with regard to the shares of Common Stock that it holds.

 
 
 
CUSIP NO. 45765Y105
Page 10 of 12 Pages



(c)           The reporting persons effected the following purchases (and no sales) since the last filing:

Name
Trade Date
Number of Shares Purchased
Price Per Share
Where and How Transaction was Effected
Air-T
09/08/2015
400
$2.60
Open Market Purchase
Air-T
09/09/2015
1,100
$2.60
Open Market Purchase
Air-T
09/10/2015
1,100
$2.60
Open Market Purchase
Air-T
09/11/2015
2,700
$2.56
Open Market Purchase
Air-T
09/14/2015
125
$2.59
Open Market Purchase
Air-T
09/15/2015
2,300
$2.59
Open Market Purchase
Air-T
09/16/2015
1,800
$2.59
Open Market Purchase
Air-T
09/17/2015
500
$2.60
Open Market Purchase
Air-T
09/18/2015
100
$2.59
Open Market Purchase
Air-T
09/21/2015
2,100
$2.57
Open Market Purchase
Air-T
09/22/2015
500
$2.56
Open Market Purchase
Air-T
09/24/2015
2,600
$2.55
Open Market Purchase
Air-T
09/25/2015
2,200
$2.47
Open Market Purchase
Air-T
09/28/2015
1,000
$2.53
Open Market Purchase
Air-T
09/29/2015
5,200
$2.54
Open Market Purchase
Air-T
09/30/2015
1,600
$2.51
Open Market Purchase
Air-T
10/01/2015
600
$2.56
Open Market Purchase
Air-T
10/05/2015
100
$2.60
Open Market Purchase
Air-T
10/12/2015
200
$2.59
Open Market Purchase
Air-T
10/13/2015
60
$2.60
Open Market Purchase


(d)         No person other than the Reporting Persons is known to have the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, the Common Stock beneficially owned by any Reporting Person.

(e)         Not applicable.

Item 6.
Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

With  respect to the Groveland Fund, Groveland Capital is entitled to (1) an allocation of a portion of profits, if any, and (2) a management fee based upon a percentage of total capital.
 
Other than the foregoing agreements and arrangements, and the Joint Filing Agreement filed as Exhibit 1 to the initial Schedule 13D, as filed on August 18, 2014, there are no contracts, arrangements, understandings or relationships among the persons named in Item 2 hereof and between such persons and any person with respect to any securities of the Issuer.
 

 
 
 
CUSIP NO. 45765Y105
Page 11 of 12 Pages



 
Item 7.                      Material to be Filed as Exhibits.

Exhibit No.
Description
   
1
Joint Filing Agreement.*
   
2
Information Regarding Air T Executive Officers and Directors.*
   
3
Standstill Agreement, dated as of November 8, 2014.*
   
4
Standstill Agreement, dated as of December 5, 2015.
 _____________________  
* Previously filed
  


 
 
 
CUSIP NO. 45765Y105
Page 12 of 12 Pages


SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
 
Date:           December 8, 2015
 

 
AIR-T, INC.
 
 
By:          /s/ Nicholas J. Swenson
Nicholas J. Swenson
Chief Executive Officer
 
  
 
GROVELAND CAPITAL LLC
 
 
By:          /s/ Nicholas J. Swenson
Nicholas J. Swenson
Managing Member
 
  
 
GROVELAND HEDGED CREDIT FUND LLC
 
 
By:          /s/ Nicholas J. Swenson
Nicholas J. Swenson
Managing Member
 
  
 
 
 
/s/ Nicholas J. Swenson
Nicholas J. Swenson
 
  



EX-4 2 cg647ex4.htm cg647ex4.htm
Exhibit 4
STANDSTILL AGREEMENT
 
This Standstill Agreement, dated as of December 5, 2015 (this “Agreement”), is entered into by and among Insignia Systems, Inc., a Minnesota corporation (the “Company”), Nicholas J. Swenson, an individual resident of Minnesota (“Swenson”), Air T, Inc., a Delaware corporation (“Air T”), Groveland Capital LLC, a Delaware limited liability company (“Groveland Capital”), and Groveland Hedged Credit Fund LLC, a Delaware limited liability company (“Groveland Fund” and, collectively with Swenson, Air T and Groveland Capital, the “Air T Group”), and Sardar Biglari, an individual resident of Texas (“Biglari”), Philip L. Cooley, an individual resident of Texas (“Cooley”), The Lion Fund II, L.P., a Delaware limited partnership (“Lion Fund”), and Biglari Capital Corp., a Texas limited liability company (“BCC” and, collectively with Biglari, Cooley and Lion Fund, the “Biglari Group”).
 
WHEREAS, the Company and the Air T Group previously entered into the Standstill Agreement dated as of November 8, 2014, and amended as of April 29, 2015 (the “Prior Air T Standstill”).
 
WHEREAS, the Company and the Biglari Group have determined that the interests of the Company and its shareholders would be best served by adding Biglari and Cooley to the Company’s Board of Directors on the terms and conditions set forth in this Agreement.
 
WHEREAS, the Company, the Air T Group and the Biglari Group have determined that the interests of the Company and its shareholders would be best served by entering into this Agreement in order to avoid the distraction that could result from a contested election in connection with a special or annual meeting of the Company’s shareholders, among other matters.
 
NOW, THEREFORE, in consideration of the foregoing premises and the respective representations, warranties, covenants, agreements and conditions hereinafter set forth, and, intending to be legally bound hereby, the parties hereby agree as follows:
 
1.
Representations and Warranties of the Company.  The Company represents and warrants as follows:
 
 
(a)
The Company has the corporate power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.
 
 
(b)
This Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company, and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws affecting the rights of creditors and subject to general equity principles.
 
 
(c)
The execution, delivery and performance of this Agreement by the Company does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to it, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could become a default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound.
 

 
 
 
 
2.
Representations and Warranties of the Air T Group and the Biglari Group.
 
 
(a)
Each member of the Air T Group, severally, and not jointly, represents and warrants with respect to himself or itself as follows:
 
(i)  
Such party, if Swenson, has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.  Such party, if an entity, has the corporate power and authority or the limited liability company power and authority, as applicable, to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.
 
(ii)  
This Agreement has been duly and validly authorized, executed, and delivered by such member of the Air T Group and constitutes a valid and binding obligation and agreement of such party, and is enforceable against such party in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws affecting the rights of creditors and subject to general equity principles.
 
(iii)  
Such party is the “beneficial owner” of the number of shares of Common Stock (as defined herein) that such party reports in the Amendment No. 3 to Schedule 13D filed by members of the Air T Group with the Securities and Exchange Commission (the “SEC”) on May 26, 2015 (the “Air T Schedule 13D”) and the aggregate number of shares of Common Stock acquired after that date as reported in Form 4 reports filed by members of the Air T Group with the SEC after that date. Except for those Affiliates (as defined herein) and Associates (as defined herein) of such party with respect to whom a cover page is included in the Air T Schedule 13D, no other Affiliate or Associate of such party beneficially owns any shares of Common Stock.  Each member of the Air T Group disclaims beneficial ownership of the shares of Common Stock owned or controlled by the other members except to the extent of his or its pecuniary interest therein, and asserts that such member’s entry into this Agreement is a separate agreement of such member with the Company.
 
(iv)  
The execution, delivery and performance of this Agreement by each member of the Air T Group does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to him or it, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could become a default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which he or it is a party or by which he or it is bound.
 

 
2
 
 
 
(b)
Each member of the Biglari Group, severally, and not jointly, represents and warrants with respect to himself or itself as follows:
 
(i)  
Such party, if Biglari or Cooley, has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.  Such party, if an entity, has the corporate power and authority, the partnership power and authority or the limited liability company power and authority, as applicable, to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.
 
(ii)  
This Agreement has been duly and validly authorized, executed, and delivered by such member of the Biglari Group and constitutes a valid and binding obligation and agreement of such party, and is enforceable against such party in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws affecting the rights of creditors and subject to general equity principles.
 
(iii)  
Such party is the “beneficial owner” of the number of shares of Common Stock (as defined herein) that such party reports in the Amendment No. 1 to Schedule 13D filed by members of the Biglari Group with the SEC on October 27, 2015 (the “Biglari Schedule 13D”). Except for those Affiliates and Associates of such party with respect to whom a cover page is included in the Biglari Schedule 13D, no other Affiliate or Associate of such party beneficially owns any shares of Common Stock.  Each member of the Biglari Group disclaims beneficial ownership of the shares of Common Stock owned or controlled by the other members except to the extent of his or its pecuniary interest therein, and asserts that such member’s entry into this Agreement is a separate agreement of such member with the Company.
 
(iv)  
The execution, delivery and performance of this Agreement by each member of the Biglari Group does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to him or it, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could become a default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which he or it is a party or by which he or it is bound.
 

 
3
 
 
3.
Definitions. For purposes of this Agreement:
 
(a)  
The terms “Affiliate” and “Associate” have the respective meanings set forth in Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); the terms “beneficial owner” and “beneficial ownership” shall have the respective meanings as set forth in Rule 13d-3 promulgated by the SEC under the Exchange Act; and the terms “person” or “persons” shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature.
 
(b)  
The “Air T Standstill Period” means as to each member of the Air T Group, the period from the date of this Agreement until the earlier of:
 
(i)  
the conclusion of the Company’s 2016 Annual Meeting of Shareholders, which shall be held no later than June 30, 2016; or
 
(ii)  
such date, if any, as the Company has materially breached any of its commitments or obligations set forth in Section 4(a) of this Agreement.
 
(c)  
The “Biglari Standstill Period” means as to each member of the Biglari Group, the period from the date of this Agreement until the earlier of:
 
(i)  
the conclusion of the Company’s 2016 Annual Meeting of Shareholders, which shall be held no later than June 30, 2016; or
 
(ii)  
such date, if any, as the Company has materially breached any of its commitments or obligations set forth in Section 4(a) of this Agreement.
 
(d)  
“Board” means the Board of Directors of the Company.
 
(e)  
“Common Stock” means the Common Stock of the Company, $0.01 par value.
 
4.
Election of Biglari and Cooley as Directors; Related Matters.
 
(a)  
Within five business days following the execution and delivery of this Agreement by the parties hereto:
 
(i)  
In accordance with the Company’s articles of incorporation and amended and restated bylaws, the Board shall adopt a resolution increasing the size of the Board by two directors, to a total of nine directors, effective as of the date of such resolution.
 
(ii)  
In accordance with the Company’s articles of incorporation and amended and restated bylaws, the Board shall elect Biglari and Cooley as directors of the Company, effective as of the date of such resolution, to serve until the Company’s 2016 Annual Meeting of Shareholders and until their respective successors shall have been duly elected and qualified, or until their earlier death, resignation or removal.
 
(iii)  
The Company agrees to nominate no more than nine directors for election at the Company’s 2016 Annual Meeting of Shareholders, all of whom will be nominated to serve a one-year term and the Company further agrees that it will not nominate more nominees for election at the Company’s 2016 Annual Meeting of Shareholders than the number of directors who are to be elected at such meeting.  The Company agrees to include Swenson, Jacob J. Berning (“Berning”), Biglari and Cooley (collectively, the “Nominees”) as four of the Company’s nominees for election at the Company’s 2016 Annual Meeting of Shareholders.  The Board will recommend, and the Company will reflect such recommendation in its definitive proxy statement in connection with the 2016 Annual Meeting of Shareholders, that the shareholders of the Company vote to elect the Nominees at such meeting, and the Company will support and solicit proxies for the Nominees’ election as directors, and such recommendation, support and solicitation will be in the same manner as for the Company’s other nominees for director.
 

 
4
 
 
(b)  
The members of the Air T Group who filed the Air T Schedule 13D and the members of the Biglari Group who filed the Biglari Schedule 13D shall each promptly file an amendment to their respective Schedule 13D filings reporting their entry into this agreement, amending applicable items to conform to their respective obligations hereunder and appending or incorporating by reference this Agreement as an exhibit thereto. Such members of the Air T Group and the Biglari Group, as applicable, shall provide to the Company a reasonable opportunity to review and comment on such amendments in advance of filing, and shall consider in good faith the reasonable comments of the Company.
 
(c)  
The members of the Air T Group and the Biglari Group shall cause all shares of Common Stock beneficially owned by them and their Affiliates to be present for quorum purposes and to be voted, and shall cause all shares of Common Stock held by their respective Associates to be present for quorum purposes and to be voted (i) in favor of all directors nominated by the Board for election at the Company’s 2016 Annual Meeting of Shareholders; and (ii) for approval with respect to the advisory vote to approve executive compensation, in accordance with the Board’s recommendation on any advisory vote on the frequency of future advisory votes to approve executive compensation, and for the ratification of the Company’s independent auditors.
 
5.
Standstill.
 
 
Each of the members of the Air T Group agrees that, during the Air T Standstill Period, and each of the members of the Biglari Group agrees that, during the Biglari Standstill Period, he or it will not, and he or it will cause each of such person’s Affiliates or agents or other persons acting on his or its behalf not to, and will use commercially reasonable efforts to cause his or its respective Associates not to:
 
 
(a)
submit, or otherwise induce or encourage any other person to submit, any shareholder proposal (pursuant to Rule 14a-8 promulgated by the SEC under the Exchange Act or otherwise) or any notice of nomination or other business for consideration, and will not nominate any candidate for election to the Board or oppose the directors nominated by the Board;
 
 
(b)
form, join in or in any other way participate in a “partnership, limited partnership, syndicate or other group” within the meaning of Section 13(d)(3) of the Exchange Act with respect to the Common Stock or deposit any shares of Common Stock in a voting trust or similar arrangement or subject any shares of Common Stock to any voting agreement or pooling arrangement, other than (i) with respect to the members of the Air T Group, solely with other members of the Air T Group and/or one or more Affiliates of a member of the Air T Group, (ii) with respect to the members of the Biglari Group, solely with other members of the Biglari Group and/or one or more Affiliates of a member of the Biglari Group or (iii) to the extent such a group may be deemed to result between the members of the Air T Group and the Company or any of its Affiliates or between the members of the Biglari Group and the Company or any of its Affiliates, in each case, as a result of this Agreement;
 

 
5
 
 
 
(c)
solicit proxies or written consents of shareholders, or otherwise conduct any nonbinding referendum with respect to Common Stock, or make, or in any way participate in, any “solicitation” of any “proxy” within the meaning of Rule 14a-1 promulgated by the SEC under the Exchange Act to vote, or advise, encourage or influence any person with respect to voting, any shares of Common Stock with respect to any matter, or become a “participant” in any contested “solicitation” for the election of directors with respect to the Company (as such terms are defined or used under the Exchange Act), other than a “solicitation” or acting as a “participant” in support of all of the nominees of the Board (including Swenson, Berning, Biglari and Cooley) at the 2016 Annual Meeting of Shareholders;
 
 
(d)
seek, in any capacity other than as a member of the acting majority of the Board, to call, or to request the call of, a special meeting of the shareholders of the Company, or seek to make, or make, a shareholder proposal at any meeting of the shareholders of the Company or make a request for a list of the Company’s shareholders (or otherwise induce or encourage any other person to initiate such proposal or request) or otherwise acting alone, or in concert with others, seek to control or influence the governance or policies of the Company;
 
 
(e)
in any capacity other than as a member of the acting majority of the Board, effect or seek to effect (including, without limitation, by entering into any discussions, negotiations, agreements or understandings with any third person), offer or propose (whether publicly or otherwise) to effect, or cause or participate in, or in any way assist or facilitate any other person to effect or seek, offer or propose (whether publicly or otherwise) to effect or participate in (i) any acquisition of any material assets or businesses of the Company or any of its subsidiaries, (ii) any tender offer or exchange offer, merger, acquisition or other business combination involving the Company or any of its subsidiaries, or (iii) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company or any of its subsidiaries;
 
 
(f)
publicly disclose, or cause or facilitate the public disclosure (including without limitation the filing of any document or report with the SEC or any other governmental agency or any disclosure to any journalist, member of the media or securities analyst) of any intent, purpose, plan or proposal to obtain any waiver, or consent under, or any amendment of, any of the provisions of Section 4(c) or this Section 5, or otherwise seek (in any manner that would require public disclosure by any of the members of the Air T Group or the Biglari Group, as the case may be, or their respective Affiliates or Associates) to obtain any waiver, consent under, or any amendment of, any provision of this Agreement;
 

 
6
 
 
 
(g)
enter into any arrangements, understandings or agreements (whether written or oral) with, or advise, finance, assist or encourage, any other person for the purpose of engaging, or offering or proposing to engage, in any of the foregoing; or
 
 
(h)
take or cause or induce others to take any action inconsistent with any of the foregoing.
 
It is understood and agreed that this Agreement shall not be deemed to prohibit Swenson, Biglari or Cooley from engaging in any lawful act in his capacity as a director of the Company, except that none of Swenson, Biglari or Cooley may act as a director to call, or to request the call of, a special meeting of the shareholders of the Company unless such special meeting is being called by a majority of the Board.
 
6.
Code of Business Conduct and Ethics. Swenson, Biglari and Cooley have reviewed the Company’s Code of Business Conduct and Ethics and each agrees to abide by the provisions thereof during their respective service as a director of the Company.  Each of the members of the Air T Group and each of the members of the Biglari Group acknowledge that they are aware that the United States securities law prohibit any person who has material non-public information about a company from purchasing or selling such securities of such company, or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities.
 
7.
Questionnaires.  Each of Biglari and Cooley has accurately completed the form of questionnaire provided by the Company for its use in connection with his appointment to serve as a director of the Company.
 
8.
Compensation.  Swenson, Biglari and Cooley shall each be compensated for his service as a director and shall be reimbursed for his expenses on the same basis as all other non-employee directors of the Company are compensated and shall be eligible to be granted equity-based compensation on the same basis as all other non-employee directors of the Company.
 
9.
Indemnification and Insurance.  Each of Swenson, Biglari and Cooley is entitled to the same rights of indemnification as the other directors of the Company as such rights may exist from time to time.  The Company shall, promptly after their election, take such action, if any, as may be necessary to add each of Biglari and Cooley to the Company’s directors’ and officers’ liability insurance policy as an insured person.
 
10.
Press Release and Other Public Disclosures.  Promptly following the execution and delivery of this Agreement, the Company shall issue a press release in the form attached hereto as Exhibit A (the “Press Release”).  None of the parties hereto will make any public statements that are inconsistent with, or otherwise contrary to, the statements in the Press Release.
 

 
7
 
 
11.
Non-Disparagement.  During the Air T Standstill Period, neither the Company nor any of the members of the Air T Group shall, and the Company and the members of the Air T Group shall cause their respective Affiliates not to, directly or indirectly make or issue or cause to be made or issued any public disclosure, announcement, or statement (including without limitation the filing of any document or report or the making of any other disclosure with the SEC or any other governmental agency unless required by law or legal process or any disclosure to any journalist, member of the media, or securities analyst) concerning the Company, any of the members of the Air T Group, or any of their respective past or then-current directors, officers, employees or other Affiliates, which disparages such other party or any of such other party’s respective past or then-current directors, officers, employees or other Affiliates.  During the Biglari Standstill Period, neither the Company nor any of the members of the Biglari Group shall, and the Company and the members of the Biglari Group shall cause their respective Affiliates not to, directly or indirectly make or issue or cause to be made or issued any public disclosure, announcement, or statement (including without limitation the filing of any document or report or the making of any other disclosure with the SEC or any other governmental agency unless required by law or legal process or any disclosure to any journalist, member of the media, or securities analyst) concerning the Company, any of the members of the Biglari Group, or any of their respective past or then-current directors, officers, employees or other Affiliates, which disparages such other party or any of such other party’s respective past or then-current directors, officers, employees or other Affiliates.  Notwithstanding the foregoing and for the benefit of clarification and the avoidance of doubt, this Section 11 shall not in any way prohibit members of the Air T Group or the Biglari Group and their respective Affiliates from communicating directly with the Company and its management and Board in a non-public manner to communicate their concerns or raise issues related to the Company, its performance, the performance of management or any other matters related to the Company, shall not in any way restrict any member of the Air T Group or its Affiliates from directly or indirectly making or issuing any public disclosure, announcement or statement regarding any member of the Biglari Group or its Affiliates or any past or then-current directors, officers, employees of the Biglari Group or its Affiliates, and shall not in any way restrict any member of the Biglari Group or its Affiliates from directly or indirectly making or issuing any public disclosure, announcement or statement regarding any member of the Air T Group or its Affiliates or any past or then-current directors, officers, employees of the Air T Group or its Affiliates.
 
12.
Specific Performance. Each party hereto acknowledges and agrees, on behalf of itself and its Affiliates, that irreparable harm would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that the parties will be entitled to specific relief hereunder, including, without limitation, an injunction or injunctions to prevent and enjoin breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any state or federal court in the State of Minnesota, in addition to any other remedy to which they may be entitled at law or in equity.  Any requirements for the securing or posting of any bond with such remedy are hereby waived.
 

 
8
 
 
13.
Jurisdiction. Each party hereto agrees, on behalf of itself and its Affiliates, that any actions, suits or proceedings arising out of or relating to this Agreement or the transactions contemplated hereby will be brought solely and exclusively in any state or federal court in the State of Minnesota (and the parties agree not to commence any action, suit or proceeding relating thereto except in such courts), and further agrees that service of any process, summons, notice or document by U.S. registered mail to the respective addresses set forth in Section 18 of this Agreement will be effective service of process for any such action, suit or proceeding brought against any party in any such court.  Each party, on behalf of itself and its Affiliates, irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby, in the state or federal courts in the State of Minnesota, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an improper or inconvenient forum.
 
14.
Applicable Law. This agreement shall be governed in all respects, including validity, interpretation and effect, by the laws of the State of Minnesota applicable to contracts executed and to be performed wholly within such state, without giving effect to the choice of law principles of such state.
 
15.
Counterparts. This Agreement may be executed in two or more counterparts which together shall constitute a single agreement.
 
16.
Severability. In the event that any portion of this Agreement may be held to be invalid or unenforceable for any reason, it is hereby agreed that such invalidity or unenforceability shall not affect the other portions of this Agreement and that the remaining covenants, terms and conditions or portions hereof shall remain in full force and effect, and any court of competent jurisdiction may so modify the objectionable provision as to make it valid, reasonable and enforceable.
 
17.
Entire Agreement; Amendment and Waiver; Successors and Assigns. This Agreement contains the entire understanding of the parties hereto with respect to, and supersedes all prior agreements relating to, its subject matter. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings among the parties other than those expressly set forth herein. This Agreement may be amended only by a written instrument duly executed by the parties hereto or their respective successors or assigns. No failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law. The terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective successors, heirs, executors, legal representatives, and assigns.
 

 
9
 
 
18.
Notices. All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, if (a) given by telecopy, when such telecopy is transmitted to the telecopy number set forth below, or to such other telecopy number as is provided by a party to this Agreement to the other party pursuant to notice given in accordance with the provisions of this Section, and the appropriate confirmation is received or (b) if given by any other means, when actually received during normal business hours at the address specified in this Section, or at such other address as is provided by a party to this Agreement to the other party pursuant to notice given in accordance with the provisions of this Section:
 
if to the Company:
 
Insignia Systems, Inc.
8799 Brooklyn Boulevard
Minneapolis, Minnesota 55445
Attention: President and Chief Financial Officer
Email: john.gonsior@insigniasystems.com

with a copy to:
 
Faegre Baker Daniels LLP
2200 Wells Fargo Center
90 South Seventh Street
Minneapolis, MN 55402-3901
Attention: W. Morgan Burns
Email: Morgan.Burns@FaegreBD.com
Facsimile: 612-766-1600
 
if to the Air T Group or any member thereof:
 
Nicholas J. Swenson
5000 West 36th St., Suite 130
Minneapolis, Minnesota 55416
Email: nswenson@airt.co
 
with a copy to:
 
Foley & Lardner LLP
777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
Attention: Peter D. Fetzer
Email: pfetzer@foley.com
Facsimile: (414) 297-4900
 
if to the Biglari Group or any member thereof:
 
Sardar Biglari
Biglari Capital Corp.
17802 IH 10 West, Suite 400
San Antonio, Texas  78257
Email: Amy.Parks@biglariholdings.com
Facsimile: (210) 344-3411
 

 
10
 
 
with a copy to:
 
Olshan Frome Wolosky LLP
Park Avenue Tower
65 East 55th Street
New York, NY  10022
Attention: Steve Wolosky
Email: swolosky@olshanlaw.com
Facsimile: (212) 451-2222
 
 
19.
Reimbursement of Expenses.  The Company agrees to reimburse the Air T Group for their out-of-pocket expenses incurred in connection with the amendment to the Air T Schedule 13D, the Air T Group’s negotiation and preparation of this Agreement and other matters related to this Agreement, in an amount equal to $30,000.  The Company agrees to reimburse the Biglari Group for their out-of-pocket expenses incurred in connection with the amendment to the Biglari Schedule 13D, the Biglari Group’s negotiation and preparation of this Agreement and other matters related to this Agreement, in an amount equal to $30,000.  Such amounts shall be payable by the Company to Air T Group and the Biglari Group, respectively, within five (5) business days following the date of this Agreement.
 
20.
No Third-Party Beneficiaries. Nothing in this Agreement is intended to confer on any person other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.
 
21.
Independent Nature of Obligations. Notwithstanding anything to the contrary contained herein, the representations, warranties, covenants and agreements of each of the Air T Group, on the one hand, and the Biglari Group, on the other hand, under this Agreement are several and not joint with those of the other, and neither the Air T Group nor the Biglari Group shall be responsible in any way for any of the representations, warranties, covenants or agreements of the other hereunder.  Nothing contained herein, and no action taken by any member of the Air T Group or the Biglari Group pursuant thereto, shall be deemed to constitute the Air T Group and the Biglari Group as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that they are in any way acting in concert or as a group.
 
22.
Prior Air T Standstill.  Upon the execution of this Agreement by the parties hereto, it shall supersede the Prior Air T Standstill in all respects and the Prior Air T Standstill will be deemed terminated and of no further force or effect.
 
 
 
[signature pages follow]
 

 
11
 

 
IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the parties as of the date first written above.
 

INSIGNIA SYSTEMS, INC.


By: /s/ John C. Gonsior
John C. Gonsior
President and Chief Financial Officer



 
12
 


 
IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the parties as of the date first written above.
 

AIR T, INC.


By:      /s/ Nicholas J. Swenson
Nicholas J. Swenson
Chief Executive Officer

GROVELAND CAPITAL, LLC


By: /s/ Nicholas J. Swenson
Nicholas J. Swenson, Managing Member


GROVELAND HEDGED CREDIT FUND, LLC

By:   Groveland Capital, LLC, its general partner


 
By:  /s/ Nicholas J. Swenson
        Nicholas J. Swenson, Managing Member



/s/ Nicholas J. Swenson
NICHOLAS J. SWENSON



 
13
 


 
IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the parties as of the date first written above.
 

BIGLARI CAPITAL CORP.


By: /s/ Sardar Biglari
Sardar Biglari, Chairman and Chief Executive Officer


THE LION FUND II, L.P.

By:         Biglari Capital Corp., its general partner


By: /s/ Sardar Biglari
Sardar Biglari, Chairman and Chief Executive Officer



/s/ Sardar Biglari
SARDAR BIGLARI



/s/ Philip L. Cooley
PHILIP L. COOLEY

 
14
 

Exhibit A

Press Release

[See attached.]

 
 
 
 

Contact:
 
Insignia Systems, Inc.
John Gonsior, President and CFO
(763) 392-6200
 
FOR IMMEDIATE RELEASE
 
INSIGNIA SYSTEMS, INC. ANNOUNCES NEW BOARD APPOINTMENTS
 
MINNEAPOLIS, MN — December 7, 2015 — Insignia Systems, Inc. (Nasdaq: ISIG) today announced that Sardar Biglari and Philip L. Cooley have been appointed as independent members of the board of directors of the company.  With the addition of Mr. Biglari and Dr. Cooley, the board was expanded from seven to nine directors, all of whom are independent.
 
In connection with their appointment to the board, Mr. Biglari and Dr. Cooley have entered into an agreement with the company whereby they, as well as The Lion Fund II, L.P., Biglari Capital Corp., Nicholas J. Swenson, Air T, Inc., Groveland Capital, LLC, Groveland Hedged Credit Fund, LLC and their respective affiliates, have agreed to vote their shares in favor of all of the board’s director nominees at the 2016 annual meeting, which will include Mr. Biglari and Dr. Cooley, two existing directors: Mr. Swenson and Jacob J. Berning, and additional nominees, and to abide by certain standstill provisions until the conclusion of the company’s 2016 annual meeting of shareholders.
 
About Insignia Systems, Inc.
 
Insignia Systems, Inc. is a developer and marketer of innovative in-store products, programs and services that help consumer goods manufacturers and retail partners drive sales at the point of purchase. Insignia provides at-shelf media solutions in approximately 13,000 retail supermarkets, 2,000 mass merchants and 8,000 dollar stores. With a client list of over 200 major consumer goods manufacturers, including General Mills, Kellogg Company, Kraft Foods, Nestlé and P&G, Insignia helps major brands deliver on their key engagement, promotion, and advertising objectives right at the point-of-purchase. For additional information, contact (800) 874-4648, or visit the Insignia website at www.insigniasystems.com.
 
Cautionary Statement for the Purpose of Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
 
Statements in this press release that are not statements of historical or current facts are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. The words “believe,” “expect,” “will” and similar expressions aid in identifying forward-looking statements. Readers are cautioned not to place undue reliance on these or any forward-looking statements, which speak only as of the date of this press release. Statements made in this press release regarding, for instance: potential nominees for election at the 2016 annual meeting of shareholders, and future actions by our board of directors or any of the parties to the Agreement are examples of forward-looking statements. These forward-looking statements are based on current information, which we have assessed and which by its nature is dynamic and subject to rapid and even abrupt changes. As such, actual results may differ materially from the results or performance expressed or implied by such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including: (i) the risk that management may be unable to fully or successfully implement its business plan to achieve and maintain profitability in the future; (ii) the risk that the company will not be able to expand core product offerings or to develop and implement new product offerings in a successful manner, including our ability to gain retailer acceptance of new product offerings; (iii) the unexpected loss of a major consumer packaged goods manufacturer relationship or retailer agreement, or termination of the company’s relationship with News America; (iv) prevailing market conditions in the in-store advertising industry, including intense competition for agreements with retailers and consumer packaged goods manufacturers and the effect of any delayed or cancelled customer programs; (v) potentially incorrect assumptions by management with respect to the financial effect of cost containment or reduction initiatives, current strategic decisions, current sales trends for fiscal year 2015; and (vi) other economic, business, market, financial, competitive and/or regulatory factors affecting the company’s business generally, including those set forth in our Annual Report on Form 10-K for the year ended December 31, 2014 and additional risks, if any, identified in our Quarterly Reports on Form 10-Q and our Current Reports on Forms 8-K filed with the SEC. Such forward-looking statements should be read in conjunction with the company’s filings with the SEC. The company assumes no responsibility to update the forward-looking statements contained in this press release or the reasons why actual results would differ from those anticipated in any such forward-looking statement, other than as required by law.
 
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