Document:

arex-ex101_6.htm

Exhibit 10.1

APPROACH RESOURCES INC.

KEY EMPLOYEE RETENTION PLAN

(Eligible Executives)

THIS KEY EMPLOYEE RETENTION PLAN (the “Plan”) is made and executed by Approach Resources Inc., a Delaware corporation (the “Company”), to provide for certain payments to those Eligible Executives (as defined below) of the Company and its Affiliates that the Company would like to retain under the circumstances described below.

 

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it is essential and in the best interest of the Company and its stockholders to retain the services of the Eligible Executives through the end of the Retention Period (as defined below) and incentivize them to continue to provide their best efforts to maximize the value of the Company; and

 

WHEREAS, to induce certain Eligible Executives to remain in the service of the Company and its Affiliates through the end of the Retention Period, the Company and its Affiliates desire to adopt this Plan to provide such Eligible Executives with certain payments.

 

ARTICLE I

DEFINITIONS

 

1.1Definitions.  Where the following words and phrases appear in the Plan, they shall have the respective meanings set out below, unless their context clearly indicates to the contrary.

(a)“Affiliate” means an organization that is aggregated and treated as a single employer with the Company under Code Section 414(b) (controlled group of corporations) or Code Section 414(c) (group of trades or businesses under common control), as applicable, but using an “at least 50 percent” rather than an “at least 80 percent” control level.

(b)“Annual Base Salary” means the annualized base rate of compensation payable by the Company or an Affiliate to an Eligible Executive, before any reduction that would constitute Good Reason as defined below, and including any amount that the Eligible Executive could have received had he or she not elected to contribute such amount to an employee benefit plan maintained by the Company or an Affiliate, and excluding all other types of compensation such as overtime pay, call pay, shift and area differentials, commissions, bonuses, added premiums, and all other forms of incentive or supplemental pay, employee benefits, and perquisites paid or provided by the Company or an Affiliate. 

(c)“Board” means the Board of Directors of the Company.

(d)“Cause” means acts or omissions of the Eligible Executive constituting any of the following: (1) the willful and continued failure by the Eligible Executive 

 

substantially to perform the Eligible Executive’s duties, responsibilities, or authorities with the Company or an Affiliate (other than any such failure resulting from the Eligible Executive becoming Permanently Disabled); (2) the willful engaging by the Eligible Executive in misconduct that is materially injurious to the Company or any successor thereto (or any Affiliate of the Company or a successor thereto); (3) any misconduct by the Eligible Executive in the course and scope of the Eligible Executive’s employment with the Company or an Affiliate, including but not limited to dishonesty, disloyalty, disorderly conduct, insubordination, harassment of other employees or third parties, abuse of alcohol or controlled substances, or other willful violations of the Company’s personnel policies, rules, or Code of Conduct; or (4) any violation by the Eligible Executive of any fiduciary duty owed by the Eligible Executive to the Company or its Affiliates.  For purposes of this paragraph, no act, or failure to act, on the Eligible Executive’s part shall be considered “willful” unless done, or omitted to be done, by the Eligible Executive not in good faith and without reasonable belief that the Eligible Executive’s action or omission was in the best interest of the Company or an Affiliate.  Notwithstanding the foregoing, if the Company or an Affiliate determines in its sole discretion that a cure is possible and appropriate, the Company or an Affiliate will give the Eligible Executive written notice of the acts or omissions constituting Cause and no termination of employment shall be for Cause unless and until the Eligible Executive fails to cure such acts or omissions within 10 days following receipt of such written notice.  If the Company or an Affiliate determines in its sole discretion that a cure is not possible and appropriate, the Eligible Executive shall have no notice or cure rights before the Eligible Executive’s employment is terminated for Cause.

(e)A “Change in Control” shall be deemed to have occurred if one of the following events occurs:

(1)any consolidation or merger of the Company in which the Company is not the continuing or surviving corporation or pursuant to which shares of the Company’s common stock would be converted into cash, securities or other property, other than a merger of the Company in which the holders of the Company’s common stock immediately prior to the merger have the same proportionate ownership of common stock of the surviving corporation immediately after the merger;

(2)any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all, of the assets of the Company and its subsidiaries to any other person or entity (other than an Affiliate);

(3)the stockholders of the Company approve any plan or proposal for liquidation or dissolution of the Company;

(4)any person or entity, including a “group” as contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, acquires or gains ownership or control (including, without limitation, power to vote) of more than 50% of the outstanding shares of the Company’s voting stock (based upon voting power); or 

 

(5) as a result of or in connection with a contested election of directors, the persons who were directors of the Company before such election shall cease to constitute a majority of the Board.  

Notwithstanding the foregoing, a Change of Control shall not include a public offering of the Company’s common stock or a transaction with its sole purpose to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.

(f)“Code” means the Internal Revenue Code of 1986, as amended. 

(g)“Committee” means the Compensation Committee of the Board or such other committee as may be designated by the Board to administer this Plan, which Committee shall consist of three or more members. 

(h)“Company” means Approach Resources Inc., a Delaware corporation, and its successors and assigns, including a successor or assignee pursuant to Section 4.7.

(i)“Effective Date” means September 26, 2019, which is the date of the Plan’s adoption by the Board.

(j)“Eligible Executive” means an Employee listed on Exhibit A to this Plan who is, at the time of determination, employed on a full-time basis by the Company or an Affiliate.  Notwithstanding any other provision of this Plan, any Eligible Executive who ceases to be an Employee for any reason other than a Qualifying Termination before any Retention Payment is paid under this Plan shall be deemed to have been automatically removed from the list of Eligible Executives on Exhibit A to this Plan, shall no longer be considered to be an Eligible Executive, and shall no longer be entitled to receive any Retention Payment under this Plan.

(k)“Employee” means a person who is treated by the Company or an Affiliate as an employee for tax purposes.

(l)“Good Reason” means the existence of one or more of the following conditions arising during the Retention Period without the consent of the Eligible Executive, as determined in a manner consistent with Treasury Regulation § 1.409A-1(n)(2)(ii):  (1) a material reduction in the Eligible Executive’s Annual Base Salary; or (2) a material change in the geographic location at which the Eligible Executive is required to perform services (which must be at least 50 miles driving distance from the location at which he or she performed services for the Company or an Affiliate), but not including a temporary relocation that does not exceed six weeks; provided, however, that the Eligible Executive must provide written notice to the Company of his or her belief that Good Reason exists within 30 days of the date of the occurrence of the condition(s) giving rise to Good Reason and specify in that notice the condition(s) believed to constitute Good Reason, and the Company or its Affiliate shall have the right to remedy the Good Reason condition(s) within 30 days after receiving such written notice; and provided further, however, that in the event that the Good Reason condition is not remedied by the Company 

 

or its Affiliate during such 30-day remedy period, the Eligible Executive must provide written notice of termination invoking the Eligible Executive’s right to terminate his or her employment for Good Reason no later than 10 days after the end of such 30-day remedy period; otherwise, the Eligible Executive is deemed to have accepted the condition(s), or the correction of such condition(s), that may have given rise to the existence of Good Reason.  A paid suspension of the Eligible Executive pending an investigation authorized by the Company, an Affiliate, or a governmental authority, or a determination by the Company or an Affiliate whether the Eligible Executive has engaged in acts or omissions constituting Cause, shall not constitute Good Reason.  A termination of employment by the Eligible Executive for Good Reason shall be considered to be an involuntary termination of employment for purposes of this Plan. 

(m)“Participation Agreement” means an Employee Participation Agreement in a form provided by the Company in its sole discretion which binds the Eligible Executive to the terms and conditions in this Plan and which an Eligible Executive must timely sign and return to the Company on or before the date of payment in order to be eligible to receive a Retention Payment under this Plan.

(n)“Permanently Disabled” means a medically determinable physical or mental impairment (1) that prevents the Eligible Executive from performing his or her essential job functions with or without reasonable accommodation as required by applicable law and is expected either to result in death or to last for a continuous period of not less than six months as determined by the Committee, or (2) for which the Eligible Executive receives disability income benefits from either the Social Security Administration or a long-term disability insurance plan maintained by the Company or an Affiliate.

(o)A “Potential Change in Control Event” occurs if the Company enters into an agreement the consummation of which would constitute a Change in Control.

(p)“Qualifying Termination” shall mean the involuntary termination of an Eligible Executive’s employment with the Company or an Affiliate before the end of the Retention Period either by the Company or an Affiliate without Cause, by the Eligible Executive for Good Reason, due to the Eligible Executive’s death or becoming Permanently Disabled, or due to the Company, its Affiliate, or the Eligible Executive providing a proper notice of non-renewal of any employment agreement between them.  A “Qualifying Termination” thus shall not include any other termination of an Eligible Executive’s employment with the Company or an Affiliate, including without limitation a termination by the Company or an Affiliate for Cause, by the Eligible Executive other than for Good Reason, or a paid suspension of the Eligible Executive pending an investigation authorized by the Company, an Affiliate, or a governmental authority, or a determination by the Company or an Affiliate whether the Eligible Executive has engaged in acts or omissions constituting Cause.

(q)“Release” means a release in a form prescribed by the Company in its sole discretion in which the Eligible Executive agrees, in exchange for being eligible to participate in this Plan and for other good and valuable consideration, to waive to the 

 

maximum extent permitted by law any and all legal claims and actions the Eligible Executive may have against the Company, any Affiliate, and such other parties and entities the Company determines in its sole and absolute discretion, including any claims under, arising from, or related to the Approach Resources Inc. Change in Control Retention Bonus Plan or any employment agreement providing for payments or benefits to an Eligible Executive upon or after a Potential Change in Control Event or Change in Control.

(r)“Retention Payment” means the payment described in Section 2.1.

(s)“Retention Period” means, with respect to each Eligible Executive, the period commencing on the date any Retention Payment was paid to that Eligible Executive and ending on the date that is 12 months after such payment, provided, however, that if a Change in Control occurs prior to such date 12 months after such payment, the Retention Period shall end instead on the earlier of (1) the date that is six months following the effective date of such Change in Control, or (2) the date that is 15 months after such payment. Notwithstanding the foregoing, the occurrence of a second Change in Control shall not result in any adjustment to the Retention Period.  

1.2Number.  Wherever appropriate in this Plan, words used in the singular shall be considered to include the plural and the plural to include the singular.  

 

1.3Headings.  The headings of Articles and Sections in this Plan are included solely for convenience and, if there is any conflict between such headings and the text of the Plan, the text shall control.

ARTICLE II

RETENTION PAYMENT

 

2.1Retention Payment.  As soon as practicable following the Effective Date (but in no event later than three days following the Effective Date), the Company or the Affiliate that is the employer of each Eligible Executive shall pay to such Eligible Executive a lump sum amount equal to the percentage of his or her Annual Base Salary set forth on Exhibit A and determined as of the Effective Date (each such payment, a “Retention Payment”).

2.2Clawback Rights and Repayment Obligations; After-Acquired Evidence.   

(a)Clawback Rights and Repayment Obligations.  Notwithstanding any other provision of this Plan, the obligations of the Company or its Affiliate to provide any Retention Payment to any Eligible Executive is subject to the conditions that the Eligible Executive (i) timely signs a Release and returns the signed Release to the Company; (ii) does not timely revoke his or her acceptance of the Release (if applicable); (iii) timely signs a Participation Agreement and returns the signed Participation Agreement to the Company; and (iv) fully complies with all of his or her confidentiality, non-disclosure, non-competition, non-solicitation, intellectual property, and similar obligations under any 

 

agreement with the Company or its Affiliate and the common law (each, a “Condition”).  If an Eligible Executive who receives a Retention Payment does not fully satisfy all of these Conditions, or ceases (for any reason other than a Qualifying Termination) to be an Employee of the Company or its Affiliates at any time on or prior to the last day of the Retention Period, he or she shall be deemed to be a “Disqualified Executive” for purposes of this Plan, such Disqualified Executive shall repay to the Company or its Affiliate the full amount of such Retention Payment (the “Amount Due”), and such Amount Due shall be an indebtedness of such Disqualified Executive to the Company or its Affiliate, as applicable.  The Amount Due shall become immediately due and payable in full and shall be promptly repaid by such Disqualified Executive.  At the option of the Company or its Affiliate, as applicable, any amounts so payable may be deducted from any amounts owed by the Company or its Affiliate to the Disqualified Executive, including without limitation any amounts owed as wages, salary, bonuses, equity or other incentive compensation or awards, expense reimbursements, and any other remuneration due for or on account of the Disqualified Executive’s employment with the Company or its Affiliates, provided, however, that no such deduction shall be made to the extent that it would result in a tax being owed pursuant to Section 409A of the Code.  By accepting a Retention Payment, the Eligible Executive authorizes the Company or its Affiliate, as applicable, to deduct the full amount of the Amount Due.  If such deduction does not fully satisfy the Amount Due, the Employee agrees to repay the remaining unpaid balance to the Company or its Affiliate, as applicable, within 30 days of such termination. 

 

(b)After-Acquired Evidence.  Notwithstanding any provision of this Agreement, if the Company acquires evidence after paying a Retention Payment to an Eligible Executive and the Board determines in its sole discretion that a condition existed prior to such payment that, had the Company been fully aware of such condition, would have given the Company the right to terminate the Eligible Executive’s employment for Cause before such payment, then the Eligible Executive shall immediately repay to the Company or its Affiliate the full amount of such Retention Payment as though such Retention Payment constituted an Amount Due under Section 2.2(a) of this Plan.  

 

(c)Non-Exclusive Rights and Remedies.  The rights and remedies of the Company and its Affiliates under this Section 2.2 shall be in addition to any other available rights and remedies should any Eligible Executive fail to fully satisfy any Condition or should the Company discover any applicable after-acquired evidence as well as all rights and remedies available under the clawback policies or procedures of the Company or its Affiliates which may provide for forfeiture and/or recoupment of amounts paid or payable under this Plan.  

 

2.3Withholding and Deductions.  With respect to any payment to be made to any Eligible Executive under this Plan, the Company, or its Affiliate if the Affiliate is making the payment, shall deduct, where applicable, any amounts authorized by the Eligible Executive and permissible under applicable law, and shall withhold and report all amounts required to be withheld and reported by applicable law.

 

 

2.4Payments after Death.  In the event of the Eligible Executive’s death after he or she becomes entitled to a payment of a Retention Payment under this Plan, any such payment shall be paid, at the time and in the manner such payment otherwise would have been paid to the Eligible Executive, to the estate of the Eligible Executive.

2.5Exclusive Payments.  The payments and benefits described in this Plan, along with the associated terms for payment, constitute all of the Company’s and its Affiliates’ obligations to an Eligible Executive with respect to retention bonuses, retention payments, or similar compensation or remuneration or bonuses, payments, or similar compensation or remuneration upon or after a Potential Change in Control Event or Change in Control.  The Plan is intended to supersede all oral or written plans, programs, agreements and policies of the Company and each Affiliate and all oral or written communications to Eligible Executives with respect to the subject matter of the Plan that were written or communicated prior to the Effective Date, including but not limited to the Approach Resources Inc. Change in Control Retention Bonus Plan and any employment agreement providing for payments or benefits for an Eligible Executive upon or after a Potential Change in Control Event or Change in Control, and all such prior policies and communications shall be null and void on and after the Effective Date.  

ARTICLE III

ADMINISTRATION OF PLAN

 

3.1  Plan Administrator.  The Plan will be administered by the Committee.  The Committee may adopt such rules and regulations for the administration of this Plan as are consistent with the terms hereof, and will keep adequate records of its proceedings and acts.

3.2  Committee’s Powers and Duties.  It shall be a principal duty of the Committee to see that the Plan is carried out, in accordance with its terms, for the exclusive benefit of the Eligible Executives entitled to participate in the Plan.  The Committee shall have full discretionary power to administer the Plan in all of its details, subject to applicable requirements of law.  For this purpose, the Committee’s powers shall include, but not be limited to, the following discretionary authority, in addition to all other powers provided by the Plan:

(a)to make and enforce such rules and regulations as it deems necessary or proper for the efficient administration of the Plan;

(b)to interpret the Plan, its interpretation thereof to be final and conclusive on all persons claiming benefits under the Plan;

(c)to decide all questions concerning the Plan and the eligibility of any person to participate in the Plan;

(d)to make all determinations as to the right of any person under the Plan, including a right to receive a benefit under this Plan (including without limitation to determine whether and when there has been a Qualifying Termination and whether or when an Eligible Executive has failed to fully satisfy any Condition);

 

(e)to appoint such agents, counsel, accountants, consultants, claims administrators and other persons as may be required to assist in administering the Plan;

(f)to allocate and delegate its responsibilities under the Plan and to designate other persons to carry out any of its responsibilities under the Plan, any such allocation, delegation or designation to be in writing; and

(g)to obtain from the Company and its Affiliates and from the Eligible Executives such information as is necessary for the proper administration of the Plan.

3.3Member’s Own Participation.  No member of the Committee may act, vote, or otherwise influence a decision of the Committee specifically relating to himself or herself as a participant in the Plan.

3.4Indemnification.  The Company shall indemnify and hold harmless each member of the Committee against any and all expenses and liabilities arising out of his or her administrative functions or fiduciary responsibilities with respect to the Plan, including any expenses and liabilities that are caused by or result from an act or omission constituting the negligence of such member in the performance of such functions or responsibilities, but excluding expenses and liabilities that are caused by or result from such member’s own gross negligence or willful misconduct.  Expenses against which such member shall be indemnified hereunder shall include, without limitation, the amounts of any settlement or judgment, costs, counsel fees, and related charges reasonably incurred in connection with a claim asserted or a proceeding brought or settlement thereof.

3.5Compensation, Bond, and Expenses.  The members of the Committee shall not receive any additional compensation for their services as members of the Committee.  To the extent required by applicable law, but not otherwise, Committee members shall furnish bond or security for the performance of their duties hereunder.  The Committee may employ such agents, accountants, and legal counsel (who may be agents, accountants, and legal counsel for the Company) as may be appropriate for the administration of the Plan.  Any expenses properly incurred by the Committee incident to the administration, termination or protection of the Plan, including the cost of furnishing bond, shall be paid by the Company.

ARTICLE IV

GENERAL PROVISIONS

 

4.1Funding.  The benefits provided under the Plan shall be unfunded and shall be provided from the general assets of the Company and its Affiliates.  It is expected that, with respect to an Eligible Executive who is employed by an Affiliate at the time a payment becomes due, payments made pursuant to the Plan will be made by such Affiliate; provided, however, that if the Affiliate fails to pay any amount when due for any reason, such payment shall be made by the Company, and the Company and the employing Affiliate shall be and remain jointly and severally liable for such payment until the payment has been paid in full.

 

 

4.2Cost of Plan.  The entire cost of the Plan shall be borne by the Company and its Affiliates and no contributions shall be required of the Eligible Executives.

4.3Amendment and Termination.  

(a)Except as otherwise provided in this Section 4.3, the Plan may not be terminated and may be amended only if such amendment does not adversely affect the benefits or protections provided under the Plan to any individual who is an Eligible Executive, and any such attempted amendment or termination shall be null and void ab initio as it relates to such individual.  

(b)Notwithstanding the foregoing provisions of this Section 4.3, if any compensation or benefit provided by the Plan may result in being subject to the tax imposed by Section 409A of the Code, the Board may modify the Plan as necessary or appropriate in the best interests of the Eligible Executives (1) to exclude such compensation or benefit from being deferred compensation within the meaning of Section 409A of the Code, or (2) to comply with the provisions of Section 409A of the Code and its related Code provisions (and the rules, regulations and other regulatory guidance relating thereto); provided, however, that no amendment made pursuant to the provisions of this Section 4.3(c) shall reduce the value of the compensation or benefits that would be payable pursuant to this Plan with respect to an Eligible Executive without the written consent of such Eligible Executive. 

(c)Any provision of this Plan to the contrary notwithstanding, this Plan shall terminate automatically upon the later of the last day of the Retention Period or the date as of which all benefit obligations and payments owed pursuant to the Plan have been satisfied in full.

4.4No Contract of Employment.  The adoption and maintenance of this Plan does not, and shall not be deemed to, guarantee any Employee’s employment with the Company or an Affiliate for any specific period and does not alter the at-will nature of the employment relationship between the Company or an Affiliate and any Employee who is employed by the Company on an at-will basis.  Accordingly, any such Employee, the Company, or an Affiliate may terminate the employment relationship as freely and with the same effect as if the Plan had not been established at any time, with or without Cause, at the option of either party, with or without notice.  Any representation contrary to the previous two sentences shall be invalid unless obtained in writing and signed by a duly authorized representative of the Board.  

4.5Severability.  Any provision in the Plan that is found to be prohibited or unenforceable by any court of competent  jurisdiction by reason of applicable law shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction, and any such provision shall be reformed by the court and enforced to the maximum extent permitted under applicable law.

 

4.6Nonalienation.  An Eligible Executive shall have no right or ability to pledge, hypothecate, anticipate, assign, or otherwise transfer any benefit or right under the Plan, except by will or the laws of descent and distribution.

4.7Assumption; Successors and Assigns.  The Company shall ensure that any successor or assignee to all or substantially all the business and/or assets of the Company, whether direct or indirect, by purchase, merger, consolidation, or otherwise, and whether or not such transaction constitutes a Change in Control, to assume and perform the obligations under this Plan, whether by operation of law or written agreement.  The Plan shall be binding upon the Company, its Affiliates, and any successor or assignee of the Company or its Affiliates, and shall inure to the benefit of and be enforceable by the Eligible Executives.  Any successor or assignee of the Company shall be substituted for and take the place of the Company for all purposes of this Plan following such assumption or assignment.

4.8Code Section 409A.   This Plan is intended to be exempt from Section 409A of the Code and the Treasury Regulations and other guidance thereunder and any ambiguous provisions will be construed in a manner that is consistent with that intent.  Notwithstanding the foregoing, neither the Company or its Affiliates, or any director, officer, or employee of the Company or its Affiliates make any guarantee as to the tax treatment of any payments or benefits to be provided pursuant to the Plan.

 

4.9Governing Law; Venue; Jury Trial Waiver.  The Plan shall be governed and construed in accordance with the laws of the State of Texas (without giving effect to any choice-of-law rules that may require the application of the laws of another jurisdiction), except to the extent preempted by federal law.  In the event that any dispute arising from or related to this Plan or an Eligible Executive’s employment or termination of employment results in a lawsuit, (a) the parties agree that the exclusive forum for such lawsuit shall be in the state or federal courts located in Tarrant County, Texas, subject to the Company’s or its Affiliates’, the Plan’s, or their representatives’ right to move such lawsuit to federal court; (b) the Eligible Executive expressly consents to the exercise of personal jurisdiction by any state or federal court located in Tarrant County, Texas; and (c) the Company and each Eligible Executive mutually and irrevocably waive the right to trial by jury with respect to any legal claims or cause of actions arising out of or relating to this Plan and agree not to ask for a jury in any such lawsuit.

 

 

IN WITNESS WHEREOF, this Plan has been adopted by the Board as of the Effective Date.

 

APPROACH RESOURCES INC.

By:/s/ Sergei Krylov

Name:Sergei Krylov

Title:President and Chief Executive Officer

 

 

EXHIBIT A

TO

APPROACH RESOURCES INC.

KEY EMPLOYEE RETENTION PLAN

(Eligible Executives)

Executives Eligible to Participate

		
	
Employee
	
Percentage of Annual Base Salary

	
Krylov, Sergei
	
180%

	
Hoefer, Troy
	
130%

	
Dazey, Joshua
	
105%

	
Shaw, Ian
	
105%EX-10.1

 Exhibit 10.1 

FORWARD SHARE PURCHASE AGREEMENT 

This Forward Share Purchase Agreement (this “Agreement”) is entered into as of September 27, 2019, by and among
GigCapital, Inc., a Delaware corporation (the “Company”), Greenhaven Road Capital Fund 1, LP, a Delaware limited partnership (“Greenhaven Fund 1”), and Greenhaven Road Capital Fund 2, LP, a Delaware limited
partnership (“Greenhaven Fund 2” and together with Greenhaven Fund 1, “Greenhaven”). 
 Recitals

 WHEREAS, the Company is a Private-to-Public
Equity (PPE)TM company, also known as a blank check company or special purpose acquisition company, formed for the purpose of effecting a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination with one or more businesses; 
 WHEREAS, the Company has entered into a
stock purchase agreement with the stockholders of Kaleyra, S.p.A. (“Kaleyra”) for the purpose of effecting a combination with Kaleyra, and the Company has filed a preliminary proxy statement with the Securities and Exchange
Commission that will seek, among other things, stockholder approval of the proposed business combination with Kaleyra (the “Business Combination”); and 

WHEREAS, the parties wish to enter into this Agreement, pursuant to which the Company shall purchase from Greenhaven, and Greenhaven shall
sell and transfer to the Company, the shares of common stock, par value $0.0001 per share, of the Company (the “Shares”) into which the rights of the Company (the “Rights”) held by Greenhaven will convert into upon
the closing of Business Combination on the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the premises,
representations, warranties and the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 

Agreement 
  

	 	1.	 Purchase and Sale; Closing. 

a.    Forward Share Purchase. Subject to the conditions set forth in Section 4, Greenhaven shall sell and
transfer to the Company, and the Company shall purchase from Greenhaven, that number of Shares that the Rights (including the Additional Rights (as defined below)) convert into upon the closing of the Business Combination at the following purchase
price: (1) $1.05 per Right for the first 5,500,000 Rights (which reflects $10.50 per Share for the first 500,000 Shares); (2) $1.07 per Right for the next 2,500,000 Rights (which reflects $10.70 per Share for the next 250,000 Shares); and (3) $1.10
per Right for the next 2,000,000 Rights (which reflects $11.00 per Share for the next 200,000 Shares)(collectively, the “Share Purchase Price”). 

b.    Closing. The Company shall purchase the Shares (including the Additional Shares (as defined below)) on the
later of the sixtieth day after the closing of the Business Combination or January 1, 2020 (the “Closing Date”). No later than two Business Days before the Closing Date, Greenhaven shall deliver a written notice to the Company
specifying the number of Shares the Company is required to purchase, the aggregate Share Purchase Price and instructions for wiring the Share Purchase Price to Greenhaven (the “Purchase Notice”). The closing of the sale of the
Shares (the “Closing”) shall occur on the Closing Date. On the Closing Date, Greenhaven shall deliver the Shares (including the Additional Shares) to the Company against receipt of the Share Purchase Price. For purposes of this
Agreement, “Business Day” means any day, other than a Saturday or a Sunday, that is neither a legal holiday nor a day on which banking institutions are generally authorized or required by law or regulation to close in San Francisco,
California. 
 2. Representations and Warranties of Greenhaven. Each of Greenhaven Fund 1 and Greenhaven Fund 2 represents and
warrants to the Company as follows, as of the date hereof: 

 a.    Organization and Power. Each of Greenhaven Fund 1 and
Greenhaven Fund 2 is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its formation and has all requisite power and authority to carry on its business as presently conducted and as proposed to be
conducted. 
 b.    Authorization. Each of Greenhaven Fund 1 and Greenhaven Fund 2 has full power and authority
to enter into this Agreement. This Agreement, when executed and delivered by each of Greenhaven Fund 1 and Greenhaven Fund 2, will constitute the valid and legally binding obligation of each of Greenhaven Fund 1 and Greenhaven Fund 2, enforceable
against each of them in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors’
rights generally, or (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 

c.    Governmental Consents and Filings. No consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of Greenhaven in connection with the consummation of the transactions contemplated by this Agreement. 

d.    Compliance with Other Instruments. The execution, delivery and performance by Greenhaven of this Agreement
and the consummation by Greenhaven of the transactions contemplated by this Agreement will not result in any violation or default (i) of any provisions of its organizational documents, (ii) of any instrument, judgment, order, writ or
decree to which it is a party or by which it is bound, (iii) under any note, indenture or mortgage to which it is a party or by which it is bound, (iv) under any lease, agreement, contract or purchase order to which it is a party or by
which it is bound or (v) of any provision of federal or state statute, rule or regulation applicable to Greenhaven, in each case (other than clause (i)), which would have a material adverse effect on Greenhaven or its ability to consummate the
transactions contemplated by this Agreement. 
 e.    Share Holdings. As of September 20, 2017, Greenhaven
Fund 1 held 2,656,886 Rights and Greenhaven Fund 2 held 2,825,808 Rights, none of which have been sold, offered or contracted to be sold, pledged transferred, assigned or otherwise disposed of, directly or indirectly, or hedged, since such date.

 f.    Disclosure of Information. Greenhaven has had an opportunity to discuss the Company’s business,
management, financial affairs and the terms and conditions of this Agreement, as well as the terms of the Business Combination, with the Company’s management. 

g.    No Other Representations and Warranties; Non-Reliance. Except for the
specific representations and warranties contained in this Section 2 and in any certificate or agreement delivered pursuant hereto, neither Greenhaven Fund 1 nor Greenhaven Fund 2 or any person acting on behalf of Greenhaven nor any of the
Greenhaven’s affiliates (the “Greenhaven Parties”) has made, makes or shall be deemed to make any other express or implied representation or warranty with respect to Greenhaven and this offering, and the Greenhaven Parties
disclaim any such representation or warranty. Except for the specific representations and warranties expressly made by the Company in Section 3 of this Agreement and in any certificate or agreement delivered pursuant hereto, the Greenhaven
Parties specifically disclaim that they are relying upon any other representations or warranties that may have been made by the Company, any person on behalf of the Company or any of the Company’s affiliates (collectively, the “Company
Parties”). 
  

	 	3.	 Representations and Warranties of the Company. The Company represents and warrants to Greenhaven
as follows: 

 a.    Organization and Corporate Power. The Company is a corporation duly
incorporated and validly existing and in good standing as a corporation under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as presently conducted and as proposed to be conducted. The
Company has no subsidiaries. 
 b.    Authorization. All corporate action required to be taken by the
Company’s Board of Directors in order to authorize the Company to enter into this Agreement has been taken or will be taken prior to the Closing. All action on the part of the directors and officers of the Company necessary for the execution
and delivery of this Agreement, the performance of all obligations of the Company under this Agreement to be performed as of the Closing, has been taken or will be taken prior to the Closing. This Agreement, when executed and delivered by the
Company, shall constitute the valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization,

  
 2 

 moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the
enforcement of creditors’ rights generally, or (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies. 

c.    Disclosure. The Company has previously disclosed to Greenhaven material
non-public information with respect to the Company, which information has now been publicly disclosed by the Company. 

d.    Governmental Consents and Filings. Assuming the accuracy of the representations made by Greenhaven in this
Agreement, no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of the Company in connection with the
consummation of the transactions contemplated by this Agreement, other than the Company is required to file disclosure reports regarding such transactions in accordance with the terms of the Exchange Act (as defined below). 

e.    Compliance with Other Instruments. The execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated by this Agreement will not result in any violation or default (i) of any provisions of the Charter, bylaws or other governing documents of the Company, (ii) of any instrument, judgment, order, writ
or decree to which the Company is a party or by which it is bound, (iii) under any note, indenture or mortgage to which the Company is a party or by which it is bound, (iv) under any lease, agreement, contract or purchase order to which
the Company is a party or by which it is bound or (v) of any provision of federal or state statute, rule or regulation applicable to the Company, in each case (other than clause (i)) which would have a material adverse effect on the Company or
its ability to consummate the transactions contemplated by this Agreement. 
 f.    Adequacy of Financing. The
Company will have available to it sufficient funds to satisfy its obligations under this Agreement. 
 g.    No Other
Representations and Warranties; Non-Reliance. Except for the specific representations and warranties contained in this Section 3 and in any certificate or agreement delivered pursuant hereto, none of
the Company Parties has made, makes or shall be deemed to make any other express or implied representation or warranty with respect to the Company or the Business Combination, and the Company Parties disclaim any such representation or warranty.
Except for the specific representations and warranties expressly made by Greenhaven in Section 2 of this Agreement and in any certificate or agreement delivered pursuant hereto, the Company Parties specifically disclaim that they are relying
upon any other representations or warranties that may have been made by the Greenhaven Parties. 
  

	 	4.	 Additional Agreement by Greenhaven and Acknowledgement of the Company. 

a.    Lock-up. Each of Greenhaven Fund 1 and Greenhaven Fund 2 agrees to
continue to hold, and not to offer, sell, contract to sell, pledge, transfer, assign, or otherwise dispose of, directly or indirectly, or hedge (including any transactions involving any derivative securities of the Company and including any Short
Sales (as defined below) involving any of the Company’s securities) the Rights (including any Additional Rights), and any Shares that the Rights convert into, until the Closing Date, including not to tender the Rights to the Company in response
to any tender offer that the Company may commence for the Rights. For purposes hereof, “Short Sales” include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the
Securities and Exchange Act of 1934 (the “Exchange Act”), whether or not against the box, and all types of direct and indirect stock pledges, forward sales contracts, options, puts, calls, short sales, swaps, “put equivalent
positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements (including on a total return basis), and sales and other transactions through
non-U.S. broker dealers or foreign regulated brokers. 
 b.    Option to
Purchase Additional Rights. The Company hereby acknowledges that nothing in this Agreement shall prohibit Greenhaven from purchasing up to an additional 4,517,306 Rights (the “Additional Rights”) after September 20, 2019
and prior to the closing of the Business Combination. Any such Additional Rights shall convert into approximately 451,730 additional Shares (the “Additional Shares”) upon the Business Combination. Greenhaven’s Additional Shares
shall be purchased by the Company in accordance with Section 1. 
 c.    Open Market Sale. Notwithstanding
anything to the contrary herein, the parties agree that Greenhaven shall after the closing of the Business Combination have the right but not the obligation to sell any or all of its Shares that the Rights convert into in the open market if the
share price equals or exceeds $10.50 per Share (the “OM Sale Price”). In furtherance of the foregoing, Greenhaven shall have the right to sell such Shares at any time provided that the price received by Greenhaven (not including any
commissions due by Greenhaven for the sale) is at least the OM Sale Price. 

  
 3 

 d.    Right to Purchase Warrants. Nothing in this Agreement shall
prohibit Greenhaven from entering into a contract to purchase and/or sell Company warrants. 
  

	 	5.	 Closing Conditions. 

a.    The obligation of the Company to purchase the Shares at the Closing under this Agreement shall be subject to the
fulfillment, at or prior to the Closing of each of the following conditions, any of which, to the extent permitted by applicable laws, may be waived by the Company: 

i.    The Business Combination shall have been consummated; 

ii.    The representations and warranties of the Company set forth in Section 2 of this Agreement
shall have been true and correct as of the date hereof and shall be true and correct as of the Closing Date, as applicable, with the same effect as though such representations and warranties had been made on and as of such date (other than any such
representation or warranty that is made by its terms as of a specified date, which shall be true and correct as of such specified date), except where the failure to be so true and correct would not have a material adverse effect on the Company or
its ability to consummate the transactions contemplated by this Agreement; 
 iii.    Greenhaven shall
have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by Greenhaven at or prior to the Closing; and 

iv.    No order, writ, judgment, injunction, decree, determination, or award shall have been entered by or
with any governmental, regulatory, or administrative authority or any court, tribunal, or judicial, or arbitral body, and no other legal restraint or prohibition shall be in effect, preventing the purchase by the Company of the Shares. 

b.    The obligation of Greenhaven to sell and transfer the Shares at the Closing under this Agreement shall be subject to
the fulfillment, at or prior to the Closing of each of the following conditions, any of which, to the extent permitted by applicable laws, may be waived by Greenhaven: 

i.    The Business Combination shall have been consummated; 

ii.    All filings that the Company is required to make under the Exchange Act shall be current, true and
accurate. 
 iii.    The representations and warranties of Greenhaven set forth in Section 3 of this
Agreement shall have been true and correct as of the date hereof and shall be true and correct as of the Closing Date, as applicable, with the same effect as though such representations and warranties had been made on and as of such date (other than
any such representation or warranty that is made by its terms as of a specified date, which shall be true and correct as of such specified date), except where the failure to be so true and correct would not have a material adverse effect on
Greenhaven or its ability to consummate the transactions contemplated by this Agreement; 
 iv.    The
Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing; and 

v.    No order, writ, judgment, injunction, decree, determination, or award shall have been entered by or
with any governmental, regulatory, or administrative authority or any court, tribunal, or judicial, or arbitral body, and no other legal restraint or prohibition shall be in effect, preventing the sale and transfer by Greenhaven of the Shares. 

 

	 	6.	 Termination. This Agreement may be terminated at any time prior to the Closing:

  

	 	a.	 by mutual written consent of the Company and Greenhaven; 

 

	 	b.	 automatically if the stockholders fail to approve the Business Combination; and 

  
 4 

	 	c.	 by each of Greenhaven Fund 1 and Greenhaven Fund 2 by giving written notice to the Company on the date that is
one Business Day prior to the Closing Date. 

 For the avoidance of doubt, in the event this Agreement is terminated, neither Greenhaven
Fund 1 nor Greenhaven Fund 2 shall be restricted with respect to its ability to dispose of the Shares and the Additional Shares, if any, after the termination date of this Agreement. This Agreement shall forthwith become null and void and have no
effect, without any liability on the part of Greenhaven or the Company and their respective directors, officers, employees, partners, managers, members, or stockholders and all rights and obligations of each party shall cease; provided,
however, that nothing contained in this Section 6 shall relieve either party from liabilities or damages arising out of any fraud or willful breach by such party of any of its representations, warranties, covenants or agreements contained
in this Agreement. 
  

	 	7.	 General Provisions. 

a.    Notices. All notices and other communications given or made pursuant to this Agreement shall
be in writing and shall be deemed effectively given upon the earlier of actual receipt, or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile (if any) during normal business hours of the
recipient, and if not sent during normal business hours, then on the recipient’s next Business Day, (c) five (5) Business Days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or
(d) one (1) Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification of receipt. All communications sent to the Company shall be sent to:
GigCapital, Inc., 2749 E. Bayshore Rd., Suite 200, Palo Alto, CA 94303, Attention: Chief Financial Officer. All communications to Greenhaven Fund 1 and Greenhaven Fund 2 shall be sent to the address as set forth on the signature page hereof, or to
such e-mail address, facsimile number (if any) or address as subsequently modified by written notice given in accordance with this Section 7(a). 

b.    No Finder’s Fees. Each party represents that it neither is nor will be obligated for any
finder’s fee or commission in connection with this transaction. Greenhaven agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder’s or broker’s fee arising
out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which Greenhaven or any of its officers, employees or representatives is responsible. The Company agrees to indemnify and hold
harmless Greenhaven from any liability for any commission or compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability)
for which the Company or any of its officers, employees or representatives is responsible. 

c.    Survival of Representations and Warranties. All of the representations and warranties
contained herein shall survive the Closing. 
 d.    Entire Agreement. This Agreement, together
with any documents, instruments and writings that are delivered pursuant hereto or referenced herein, constitute the entire agreement and understanding of the parties hereto in respect of its subject matter and supersedes all prior understandings,
agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby. 

e.    Successors. All of the terms, agreements, covenants, representations, warranties, and
conditions of this Agreement are binding upon, and inure to the benefit of and are enforceable by, the parties hereto and their respective successors. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the
parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 

f.    Assignments. Except as otherwise specifically provided herein, no party hereto may assign
either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other party. 

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

  
 5 

 h.    Headings. The section headings contained in this Agreement
are inserted for convenience only and will not affect in any way the meaning or interpretation of this Agreement. 

i.    Governing Law. This Agreement, the entire relationship of the parties hereto, and any litigation between the
parties (whether grounded in contract, tort, statute, law or equity) shall be governed by, construed in accordance with, and interpreted pursuant to the laws of the State of Delaware, without giving effect to its choice of laws principles. 

j.    Jurisdiction. The parties (i) hereby irrevocably and unconditionally submit to the jurisdiction of the
state courts of Connecticut and to the jurisdiction of the United States District Court for Connecticut for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit,
action or other proceeding arising out of or based upon this Agreement except in state courts of Connecticut or the United States District Court for the Connecticut, and (c) hereby waive, and agree not to assert, by way of motion, as a defense,
or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding
is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. 

k.    Waiver of Jury Trial. The parties hereto hereby waive any right to a jury trial in connection with any
litigation pursuant to this Agreement and the transactions contemplated hereby. 
 l.    Amendments. This
Agreement may not be amended, modified or waived as to any particular provision, except with the prior written consent of the Company and Greenhaven. 

m.    Severability. The provisions of this Agreement will be deemed severable and the invalidity or
unenforceability of any provision will not affect the validity or enforceability of the other provisions hereof; provided that if any provision of this Agreement, as applied to any party hereto or to any circumstance, is adjudged by a
governmental authority, arbitrator, or mediator not to be enforceable in accordance with its terms, the parties hereto agree that the governmental authority, arbitrator, or mediator making such determination will have the power to modify the
provision in a manner consistent with its objectives such that it is enforceable, and/or to delete specific words or phrases, and in its reduced form, such provision will then be enforceable and will be enforced. 

n.    Expenses. Each of the Company and Greenhaven will bear its own costs and expenses incurred in connection with
the preparation, execution and performance of this Agreement and the consummation of the transactions contemplated hereby, including all fees and expenses of agents, representatives, financial advisors, legal counsel and accountants. 

o.    Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement.
If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption or burden of proof will arise favoring or disfavoring any party hereto because of the
authorship of any provision of this Agreement. Any reference to any federal, state, local, or foreign law will be deemed also to refer to law as amended and all rules and regulations promulgated thereunder, unless the context requires otherwise. The
words “include,” “includes,” and “including” will be deemed to be followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include
any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires. The words “this Agreement,” “herein,” “hereof,”
“hereby,” “hereunder,” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The parties hereto intend that each representation, warranty,
and covenant contained herein will have independent significance. If any party hereto has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant
relating to the same subject matter (regardless of the relative levels of specificity) which such party hereto has not breached will not detract from or mitigate the fact that such party hereto is in breach of the first representation, warranty, or
covenant. 
 p.    Waiver. No waiver by any party hereto of any default, misrepresentation, or breach of warranty
or covenant hereunder, whether intentional or not, may be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising because of any prior or subsequent
occurrence. 

  
 6 

 q.    Specific Performance. Each party agrees that irreparable
damage may occur in the event any provision of this Agreement was not performed by the other party in accordance with the terms hereof and that the other party shall be entitled to seek specific performance of the terms hereof, in addition to any
other remedy at law or equity. 
 [Signature page follows] 

  
 7 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement to be effective as
of the date first set forth above. 
 GREENHAVEN: 

Greenhaven Road Capital Fund 1, LP, 
  

			
	By:	 	 /s/ Scott Miller

	Name: Scott Miller
	Title: Authorized Person

  

			
	 Address for    

Notices:    
	 	8 Sound Shore Drive, Suite 190, Greenwich CT 06830

 Greenhaven Road Capital Fund 2, LP 
  

			
	By:	 	 /s/ Scott Miller

	Name: Scott Miller
	Title: Authorized Person

  

			
	 Address for    

Notices:    
	 	8 Sound Shore Drive, Suite 190, Greenwich CT 06830

 COMPANY: 
 GigCapital,
Inc. 
  

			
	By:	 	 /s/ Dr. Avi Katz

		 	Name: Dr. Avi Katz
		 	Title: Executive Chairman of the Board,
		 	President & CEO

 [Signature Page to Forward Purchase Agreement] 

  
 8

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