Document:

EX-10.5

    

Exhibit 10.5
  

UNIT PURCHASE AGREEMENT
  

This UNIT PURCHASE AGREEMENT (this “Agreement”) is made as of the [●] day of [●] 2020, by and among GigCapital3,
Inc., a Delaware corporation (the “Company”), Nomura Securities International, Inc. (“Nomura”), Oppenheimer & Co. Inc. (“Oppenheimer”) and Odeon Capital Group LLC (together with Nomura and
Oppenheimer, the “Subscribers” and each, a “Subscriber”).
  

WHEREAS, the Company desires to sell to the Subscribers on a private placement basis (the “Sale”) an aggregate of 100,000
private units (the “Initial Private Units”) of the Company, and up to an additional 15,000 private units (the “Additional Private Units,” and, together with the Initial Private Units, the “Private
Units”) of the Company in the event that the underwriters’ 45-day over-allotment option (“Over-Allotment Option”) is exercised in full or in part, for a purchase price of $10.00 per Private Unit, each Private Unit
comprised of one share of common stock of the Company, par value $0.0001 per share (“Common Stock”), and three-fourths of one warrant, each whole warrant exercisable to purchase one share of Common Stock
(“Warrant”). The shares of Common Stock underlying the Warrants are hereinafter referred to as the “Warrant Shares.” The shares of Common Stock underlying the Private Units (excluding the Warrant Shares) are
hereinafter referred to as the “Private Shares.” The Warrants underlying the Private Units are hereinafter referred to as the “Private Warrants.” The Private Units, Private Shares, Private Warrants and Warrant
Shares, collectively, are hereinafter referred to as the “Securities.” Each whole Private Warrant is exercisable to purchase one share of Common Stock at an exercise price of $11.50, subject to the adjustments as set forth in the
Warrant Agreement (as defined below), during the period commencing on the later of (i) twelve (12) months from the date of the closing of the Company’s initial public offering of units (the “IPO”) and
(ii) 30 days following the consummation of the Company’s initial business combination (the “Business Combination”), as such term is defined in the registration statement in connection with the IPO, as amended at
the time it becomes effective (the “Registration Statement”), filed with the Securities and Exchange Commission (“SEC”), and expiring on the fifth anniversary of the consummation of the Business Combination
(provided that so long as the Private Warrants are held by a Subscriber, its designees or affiliates, such Subscriber, its designees or affiliates will not be permitted to exercise such Private Warrants after the five year anniversary of the
effective date of the Registration Statement); and
  

WHEREAS, each Subscriber wishes to purchase the number of Initial Private Units set forth next to such Subscriber’s name on
Schedule A hereto and up to the amount of Additional Private Units set forth next to such Subscriber’s name on Schedule A hereto, at the Initial Purchase Price (as defined below), and the Company wishes to accept such
subscription from each Subscriber.
  

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the Subscribers hereby agree as follows:
  

 

  

 

  

		1.	Agreement to Subscribe.

  

		1.1.	Purchase and Issuance of the Private Units.

  

		(a)	Upon the terms and subject to the conditions of this Agreement, each Subscriber hereby agrees to purchase from the Company, and the Company hereby agrees to sell to each Subscriber, on the initial Closing Date (as
defined below) the number of Initial Private Units set forth next to each Subscriber’s name on Schedule A hereto in consideration of the payment of the Initial Purchase Price. On the initial Closing Date, the Company shall, at its
option, deliver to each Subscriber the certificates representing the Securities purchased by such Subscriber or effect such delivery in book-entry form.

 

		(b)	Each Subscriber hereby agrees to purchase up to the amount of Additional Private Units set forth on Schedule A hereto at $10.00 per Additional Private Unit. The purchase and issuance of the Additional Private
Units shall occur only in the event that the Over-Allotment Option is exercised in full or in part. The total number of Additional Private Units to be purchased hereunder shall be in the same proportion as the proportion of the Over-Allotment Option
that is exercised. Each purchase of Additional Private Units shall occur simultaneously with the consummation of any portion of the Over-Allotment Option.

 

		1.2.	Purchase Price.

  

		(a)	As payment in full for the Initial Private Units being purchased under this Agreement, each Subscriber shall pay the amount set forth next to each Subscriber’s name on Schedule A hereto (the
“Initial Purchase Price”) by wire transfer of immediately available funds or by such other method as may be reasonably acceptable to the Company, to the trust account (the “Trust Account”) at a financial
institution to be chosen by the Company, maintained by Continental Stock Transfer & Trust Company, acting as trustee (“Continental”), on or prior to the initial Closing Date.

 

		(b)	As payment in full for the Additional Private Units being purchased under this Agreement, each Subscriber shall pay $10.00 per Additional Private Unit being purchased by wire transfer of immediately available funds or by
such other method as may be reasonably acceptable to the Company, to the Trust Account at a financial institution chosen by the Company, maintained by Continental, on or prior to the Closing Date of the Over-Allotment Option.

 
 1.3.          Closing. The closing of the purchase and sale of the Initial Private Units shall take place simultaneously with the
closing of the IPO and the closing of the purchase and sale of Additional Private Units shall take place simultaneously with any closing of the Over-Allotment Option (each, a “Closing Date”). Each of the closings of the purchase
and sale of the Private
  
 

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Units shall take place at the offices of Crowell & Moring LLP, 3 Embarcadero Center, 26th Floor, San Francisco, California 94111, or such other place as
may be agreed upon by the parties hereto.
  

1.4.         
Conditions to Closing. The obligation of each Subscriber to purchase and pay for the Private Units as provided herein shall be contingent upon, and concurrent with, the consummation of the IPO.

 
 1.5.          Termination. This Agreement and each of the obligations of the undersigned shall be null and void and without effect if
a Closing does not occur prior to December 31, 2020 or if that certain Underwriting Agreement, dated as of the date hereof, by and among the Company, Nomura and Oppenheimer, as representatives of the underwriters named therein (the
“Underwriting Agreement”), is terminated for any reason.
  

		2.	Representations and Warranties of the Subscribers.

  

Each Subscriber individually represents and warrants to the Company only as to such Subscriber that:

 
 2.1.          No Government Recommendation or Approval. Subscriber understands that no federal or state agency has passed upon or
made any recommendation or endorsement of the Company or the Sale of the Securities.
  

2.2.         
Accredited Investor. Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), and
acknowledges that the sale contemplated hereby is being made in reliance, among other things, on a private placement exemption to “accredited investors” under the Securities Act and similar exemptions under state law.

 
 2.3.          Intent. Subscriber is purchasing the Securities solely for investment purposes, for Subscriber’s own account
(and/or for the account or benefit of its members or affiliates, as permitted, pursuant to the terms hereof), and not with a view to the distribution thereof and Subscriber has no present arrangement to sell the Securities to or through any person
or entity except as may be permitted hereunder. Subscriber shall not engage in hedging transactions with regard to the Securities unless in compliance with the Securities Act of 1933, as amended (the “Securities Act”).

 
 2.4.          Restrictions on Transfer. Subscriber acknowledges and understands the Private Units are being offered in a transaction
not involving a public offering in the United States within the meaning of the Securities Act. The Securities have not been registered under the Securities Act and, if in the future Subscriber decides to offer, resell, pledge or otherwise transfer
the Securities, such Securities may be offered, resold, pledged or otherwise transferred only (i) pursuant to an effective registration statement filed under the Securities Act, (ii) pursuant to an exemption from registration under
Rule 144 promulgated under the Securities Act, if available, or (iii) pursuant to any other available exemption from the registration requirements of the Securities Act, and in each case in accordance with any applicable securities laws of
any state or any other jurisdiction. Notwithstanding the foregoing, Subscriber acknowledges and understands the Securities are subject to transfer restrictions as described in Section 8 hereof.

 
 

 
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Subscriber agrees that if any transfer of its Securities or any interest therein is proposed to be made, as a condition precedent to any such transfer, Subscriber
may be required to deliver to the Company an opinion of counsel satisfactory to the Company with respect to such transfer. Absent registration or another available exemption from registration, Subscriber agrees it will not resell the Securities
(unless otherwise permitted pursuant to the terms hereof). Subscriber further acknowledges that because the Company is a shell company, Rule 144 may not be available to Subscriber for the resale of the Securities until the one year anniversary
following consummation of the Business Combination of the Company, despite technical compliance with the requirements of Rule 144 and the release or waiver of any contractual transfer restrictions.

 
 2.5.          Sophisticated Investor.

 

		(a)	Subscriber is sophisticated in financial matters and is able to evaluate the risks and benefits of the investment in the Securities.

 

		(b)	Subscriber is aware that an investment in the Securities is highly speculative and subject to substantial risks because, among other things, (i) the Securities are subject to transfer restrictions and have not been
registered under the Securities Act and therefore cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available and (ii) Subscriber has waived its redemption rights with respect to
the Securities as set forth in Section 5 hereof, and the Securities held by Subscriber are not entitled to, and have no right, interest or claim to any monies held in the Trust Account, and accordingly Subscriber may suffer a loss of a portion
or all of its investment in the Securities. Subscriber is able to bear the economic risk of its investment in the Securities for an indefinite period of time.

 
 2.6.          Organization and Authority. Subscriber is duly organized, validly existing and in good standing under the laws of its
state of incorporation or formation and it possesses all requisite power and authority necessary to carry out the transactions contemplated by this Agreement.

 
 2.7.          Authority. This Agreement has been validly authorized, executed and delivered by Subscriber and is a valid and binding
agreement enforceable in accordance with its terms, subject to the general principles of equity and to bankruptcy or other laws affecting the enforcement of creditors’ rights generally.

 
 2.8.          No Conflicts. The execution, delivery and performance of this Agreement and the consummation by Subscriber of the
transactions contemplated hereby do not violate, conflict with or constitute a default under (i) Subscriber’s charter documents, (ii) any agreement or instrument to which Subscriber is a party or (iii) any law, statute, rule or
regulation to which Subscriber is subject, or any agreement, order, judgment or decree to which Subscriber is subject.
  

2.9.          No
Legal Advice from Company. Subscriber acknowledges it has had the opportunity to review this Agreement and the transactions contemplated by this Agreement and

 
 

 
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the other agreements entered into between the parties hereto with Subscriber’s own legal counsel and investment and tax advisors. Except for any statements or
representations of the Company made in this Agreement and the other agreements entered into between the parties hereto, Subscriber is relying solely on such counsel and advisors and not on any statements or representations of the Company or any of
its representatives or agents for legal, tax or investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of any jurisdiction.

 
 2.10.       Reliance on Representations and Warranties. Subscriber understands the Private Units are being offered and sold to Subscriber in reliance
on exemptions from the registration requirements under the Securities Act, and analogous provisions in the laws and regulations of various states, and that the Company is relying upon the truth and accuracy of the representations, warranties,
agreements, acknowledgments and understandings of Subscriber set forth in this Agreement in order to determine the applicability of such provisions.

 
 2.11.       No General Solicitation. Subscriber is not subscribing for the Private Units as a result of or subsequent to any general solicitation or
general advertising, including but not limited to any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio, or presented at any seminar or meeting or in
the Registration Statement.
  

2.12.       Legend. Subscriber
acknowledges and agrees the book-entries evidencing each of the Securities shall bear a restrictive legend (the “Legend”), in form and substance substantially as set forth in Section 4 hereof.

 

		3.	Representations, Warranties and Covenants of the Company.

  

The Company represents and warrants to, and agrees with, each Subscriber that:

 
 3.1.          Valid Issuance of Capital Stock. The total number of shares of all classes of capital stock which the Company has
authority to issue is 100,000,000 shares of Common Stock and 1,000,000 shares of preferred stock, $0.0001 par value per share (“Preferred Stock”). As of the date hereof, the Company has issued and outstanding 5,750,000 shares of
Common Stock (of which up to 750,000 shares are subject to forfeiture as described in the Registration Statement) and no shares of Preferred Stock. All of the issued shares of capital stock of the Company have been duly authorized, validly issued,
and are fully paid and non-assessable.
  

3.2.         
Title to Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof and that certain warrant agreement (the “Warrant Agreement”) to be entered into between the Company and Continental, as
warrant agent, as the case may be, each of the Private Units, Private Shares, Private Warrants and Warrant Shares will be duly and validly issued, fully paid and non-assessable. On the date of issuance of the Private Units and Warrant Shares shall
have been reserved for issuance. Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Warrant Agreement, as the case may be, each Subscriber will have or receive good title to the Private Units, Private Shares and
Private Warrants purchased by such Subscriber under this Agreement, free and clear of all liens, claims and
  
 

 
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encumbrances of any kind, other than (i) transfer restrictions hereunder and (ii) transfer restrictions under federal and state securities laws.

 
 3.3.          Organization and Qualification. The Company is a corporation duly incorporated, validly existing and in good standing
under the laws of the State of Delaware and has the requisite corporate power to own its properties and assets and to carry on its business as now being conducted.

 
 3.4.          Authorization; Enforcement. (i) The Company has the requisite corporate power and authority to enter into and
perform its obligations under this Agreement and to issue the Securities in accordance with the terms hereof, (ii) the execution, delivery and performance of this Agreement by the Company and the consummation by it of the transactions
contemplated hereby have been duly authorized by all necessary corporate action, and no further consent or authorization of the Company or its Board of Directors or stockholders is required, and (iii) this Agreement constitutes valid and
binding obligations of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, moratorium, reorganization, or similar laws
relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by equitable principles of general application and except as enforcement of rights to indemnity and contribution may be limited by federal and state
securities laws or principles of public policy.
  

3.5.          No
Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions contemplated hereby do not (i) result in a violation of the Company’s certificate of incorporation or by-laws,
(ii) conflict with, or constitute a default under any agreement or instrument to which the Company is a party or (iii) any law statute, rule or regulation to which the Company is subject or any agreement, order, judgment or decree to which
the Company is subject. Other than any SEC or state securities filings which may be required to be made by the Company subsequent to the Closing, and any registration statement which may be filed pursuant thereto, the Company is not required under
federal, state or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency or self-regulatory entity in order for it to perform any of its obligations
under this Agreement or issue the Private Units, Private Shares, Private Warrants or Warrant Shares in accordance with the terms hereof.

 
 3.6.          Additional Representations and Warranties. The representations and warranties of the Company set forth in the
Underwriting Agreement are hereby incorporated herein and are true and correct with the same force and effect as though expressly made herein as of the date hereof.

 

		4.	Legends.

  

4.1.         
Legend. The Company will issue the Private Units, Private Shares and Private Warrants, and when issued, the Warrant Shares, purchased by each Subscriber in the name of such Subscriber. The Securities will bear the following Legend and
appropriate “stop transfer” instructions:
  

 

 
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“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH
LAWS OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO LOCKUP PURSUANT TO A UNIT PURCHASE AGREEMENT BETWEEN GIGCAPITAL3,
INC. AND THE SUBSCRIBERS NAMED THEREIN AND MAY ONLY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF THE LOCKUP PURSUANT TO THE TERMS SET FORTH IN THE UNIT SUBSCRIPTION AGREEMENT.”

 
 4.2.          Subscribers’ Compliance. Nothing in this Section 4 shall affect in any way each Subscriber’s
obligations and agreements to comply with all applicable securities laws upon resale of the Securities.
  

4.3.         
Company’s Refusal to Register Transfer of the Securities. The Company shall refuse to register any transfer of the Securities, if in the sole judgment of the Company such purported transfer would not be made (i) pursuant to an
effective registration statement filed under the Securities Act, or pursuant to an available exemption from the registration requirements of the Securities Act and (ii) in compliance herewith.

 
 4.4.          Registration Rights. Each Subscriber will be entitled to certain registration rights which will be governed by a
registration rights agreement (“Registration Rights Agreement”) to be entered into among the Subscribers, the Company and others, on or prior to the effective date of the Registration Statement.

 

		5.	Waiver of Liquidation Distributions.

  

In connection with the Securities purchased pursuant to this Agreement, each Subscriber hereby waives any and all right, title, interest or
claim of any kind in or to any distributions of the amounts in the Trust Account with respect to the Securities, whether (i) in connection with the exercise of redemption rights if the Company consummates the Business Combination, (ii) in
connection with any tender offer conducted by the Company prior to a Business Combination, (iii) upon the Company’s redemption of shares of Common Stock sold in the Company’s IPO upon the Company’s failure to timely complete
the Business Combination or (iv) in connection with a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation, (A) to modify the substance or timing of the Company’s
obligation to redeem 100% of the Company’s public shares if the Company does not timely complete the Business Combination or (B) with respect to any other provision relating to stockholders’ rights or pre-Business Combination
activity. In the event any Subscriber purchases shares of Common Stock in the IPO or in the aftermarket, any additional shares so purchased shall be eligible to

 
 

 
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receive the redemption value of such shares of Common Stock upon the same terms offered to all other purchasers of Common Stock in the IPO in the event the Company
fails to consummate the Business Combination.
  

		6.	Terms of Private Warrants. Each Private Warrant shall have the terms set forth in the Warrant Agreement.

 

		7.	Lock-Up Period.

  

7.1.          Each
Subscriber acknowledges that the Securities purchased by such Subscriber pursuant to this Agreement will be subject to restrictions on transfer contained in that certain letter agreement (the “Insider Letter”), dated as of the
date hereof, by and among the Company, GigAcquisitions3, LLC, a Delaware limited liability company, and the Subscribers, which Insider Letter shall be substantially in the form filed as an exhibit to the Registration Statement.

 
 7.2.          In addition to the restrictions on transfer described in Section 7.1, each Subscriber acknowledges and agrees that
the Private Units and their component parts and the related registration rights will be deemed compensation by the Financial Industry Regulatory Authority (“FINRA”) and will therefore, pursuant to Rule 5110(g) of the FINRA
Manual, be subject to lock-up for a period of 180 days immediately following the date of effectiveness or commencement of sales in the IPO, subject to FINRA Rule 5110(g)(2). Additionally, the Private Units and their component parts and the
related registration rights may not be sold, transferred, assigned, pledged or hypothecated during the foregoing 180 day period following the effective date of the Registration Statement except to any underwriter or selected dealer
participating in the IPO and the bona fide officers or partners of any Subscriber and any such participating underwriter or selected dealer. Additionally, the Private Units and their component parts and the related registration rights will not
be the subject of any hedging, short sale, derivative, put or call transaction that would result in the economic disposition of such securities by any person for a period of 180 days immediately following the date of effectiveness or
commencement of sales in the IPO.
  

		8.	Terms of the Private Units and Private Warrants.

  

8.1.          The
Private Units and their component parts are substantially identical to the units to be offered in the IPO except that: (i) the Private Units and component parts are subject to the transfer restrictions described in Section 7 hereof,
(ii) the Private Warrants will be non-redeemable and may be exercisable on a “cashless” basis if held by a Subscriber or its permitted transferees, as further described in the Warrant Agreement, (iii) the Private Warrants may
not be exercised after the five year anniversary of the effective date of the Registration Statement if held by a Subscriber, its designees or affiliates and (iv) the Private Units and component parts are being purchased pursuant to an
exemption from the registration requirements of the Securities Act and will become freely tradable only after the expiration of the lockup described above in clause (i) and they are registered pursuant to the Registration Rights Agreement or an
exemption from registration is available, and the restrictions described above in clause (i) has expired.
  

 

 
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8.2.          Each
Subscriber agrees that if the Company seeks stockholder approval of a Business Combination, then in connection with such Business Combination, such Subscriber shall (i) vote the Private Shares owned by it in favor of the Business Combination
and (ii) not redeem any Private Shares owned by such Subscriber in connection with such stockholder approval.
  

		9.	Governing Law; Jurisdiction; Waiver of Jury Trial.

  

This Agreement shall be governed by and construed in accordance with the laws of the State of New York for agreements made and to be wholly
performed within such state. 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.

 

		10.	Assignment; Entire Agreement; Amendment.

  

10.1.       Assignment. Neither
this Agreement nor any rights hereunder may be assigned by any party to any other person other than by a Subscriber to a person agreeing to be bound by the terms hereof and the transfer restrictions applicable to such Subscriber set forth in the
Insider Letter.
  
 10.2.       Entire Agreement. This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter thereof
and merges and supersedes all prior discussions, agreements and understandings of any and every nature among them.
  

10.3.       Amendment. Except as
expressly provided in this Agreement, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by all of the parties hereto.

 
 10.4.       Binding upon Successors. This Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective
heirs, legal representatives, successors and permitted assigns.
  

		11.	Notices.

  

11.1.       Notices. Unless
otherwise provided herein, any notice or other communication to a party hereunder shall be sufficiently given if in writing and personally delivered or sent by facsimile or other electronic transmission with copy sent in another manner herein
provided or sent by courier (which for all purposes of this Agreement shall include Federal Express or other recognized overnight courier) or mailed to said party by certified mail, return receipt requested, at its address provided for herein or
such other address as either may designate for itself in such notice to the other. Communications shall be deemed to have been received when delivered personally, on the scheduled arrival date when sent by next day or 2nd-day courier service, or if
sent by facsimile upon receipt of confirmation of transmittal or, if sent by mail, then three days after deposit in the mail. If given by electronic transmission, such notice shall be deemed to be delivered (i) if by electronic mail, when
directed to an electronic mail address at which the stockholder has consented to receive notice; (ii) if by a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of
(1) such posting
  
 

 
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and (2) the giving of such separate notice; and (iii) if by any other form of electronic transmission, when directed to the stockholder.

  

		12.	Counterparts; Electronic Signatures.

  

This Agreement may be executed in counterparts, each of which when so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same instrument. The words “execution,” signed,” “signature,” and words of like import in this Agreement or in any other certificate, agreement or document related to this Agreement
shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures (including, without
limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of
the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National
Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.

 

		13.	Survival; Severability.

  

13.1.       Survival. The
representations, warranties, covenants and agreements of the parties hereto shall survive each Closing Date.
  

13.2.       Severability. In the
event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision; provided that no such
severability shall be effective if it materially changes the economic benefit of this Agreement to any party.
  

		14.	Headings.

  

The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this
Agreement.
  
 [remainder of page
intentionally left blank]
  
 

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

 
 

	 	COMPANY:
	 	 	 
	 	GIGCAPITAL3, INC.
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	SUBSCRIBERS:
	 	 	 
	 	NOMURA SECURITIES INTERNATIONAL,
	 	INC.	 
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	OPPENHEIMER & CO. INC.
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	ODEON CAPITAL GROUP LLC
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

 

  
 [Signature Page to Unit Purchase
Agreement]
  
 

  

 

  

SCHEDULE A
  

	Subscriber
	Initial Private
Units
	Purchase
Price
	Maximum Additional Private
Units

	Nomura Securities International, Inc. 	51,000	$    510,000	7,650
	Oppenheimer & Co. Inc. 	34,000	$    340,000	5,100
	Odeon Capital Group LLC 	15,000	$    150,000	2,250
	      Total 	 100,000
	 $ 1,000,000
	 15,000imax-ex1047_99.htm

 

IMAX CORPORATION

Exhibit 10.47

 

FIRST AMENDING AGREEMENT

This First Amending Agreement, dated as of March 11, 2020 (the “First Amending Agreement”), is made between IMAX CORPORATION, a corporation organized under the laws of Canada (the “Company”), and ROBERT D. LISTER (the “Executive”).

WHEREAS, the Executive currently serves as the Chief Legal Officer and Senior Executive Vice President of the Company pursuant to an Employment Agreement dated as of December 18, 2017, (the “Agreement”); and

WHEREAS, the Company and the Executive wish to amend certain provisions of the Agreement as set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

	
1.
	
Capitalized terms used but not defined herein shall have the meanings set forth in the Agreement.

	
2.
	
Section 2 of the Agreement is hereby deleted in its entirety and replaced with the following:

Term.  The Executive’s employment pursuant to this Agreement shall commence on January 1, 2018 (the “Effective Date”) and shall terminate upon the earlier to occur of (i) the Executive’s termination of employment pursuant to Section 4 hereunder and (ii) December 31, 2023.  The period commencing as of the Effective Date and ending on December 31, 2023, or such earlier date on which this Agreement is terminated, is hereinafter referred to as the “Term”.  

	
3.
	
Section 3(a) of the Agreement is hereby deleted in its entirety and replaced with the following:

Base Salary.  At the commencement of the Term, the Company shall pay to the Executive an annual salary (the “Base Salary”) at the rate of $700,000, subject to annual review.  Starting in 2020, the Executive’s Base Salary shall be $738,450, subject to annual review.  The Base Salary will be payable in substantially equal installments in accordance with the Company’s ordinary payroll practices as established from time to time.  

	
4.
	
Section 3(c) of the Agreement is hereby deleted in its entirety and replaced with the following:

	
 
	
(a)
	
Equity Awards.  

 

 

	
 
	
(i)
	
Each year during the Term the Executive shall receive an equity award.  The 2018, 2019, and 2020 awards will each have an aggregate grant date fair market value of $1,400,000.  Starting in 2021 and for the duration of the Term, each annual award will have an aggregate grant date fair market value of $1,450,000.  The 2018 and 2019 annual grants will be comprised of a mix of nonqualified stock options (the “Options”) to purchase common shares of the Company, no par value (the “Common Shares”) and Restricted Stock Units (“RSUs”). The 2018 and 2019 annual grants will consist of 25% Options and 75% RSUs.  Starting with the third annual grant, which will be made in March 2020, the annual equity award will be comprised of a mix of Performance Stock Units (“PSUs”) and RSUs in a ratio consistent with grants given to other senior executives at the time.

	
 
	
(ii)
	
The Options, RSUs, and PSUs shall be granted on the terms and conditions set forth in the IMAX Corporation Amended and Restated Long-Term Incentive Plan, as may be amended from time to time (the “LTIP”), the grant agreements to be entered into between the Company and the Executive pursuant to the LTIP, and this Agreement.  The equity grants shall be made on or about the time that awards are generally granted to the Company’s senior executives, but in no event later than March of each year of the Term.  Except as otherwise provided herein, the Executive must be employed by the Company on the date of grant in order to receive the Options, RSUs, and PSUs.

	
 
	
(iii)
	
For purposes of determining the number of Options and RSUs to be granted pursuant to this Section 3(c) in 2018 and 2019, the Company shall value (i) the Options in a manner consistent with the Company’s financial statement reporting and (ii) the RSUs based on the Fair Market Value of the Common Shares on the date of grant (as defined in the LTIP).   The Options and RSUs granted in the 2018 and 2019 annual grants shall vest in four (4) equal annual installments beginning on the first anniversary of the applicable grant date.  The exercise price of the Options shall be the Fair Market Value of the Common Shares on the date of grant.  The Options shall have a seven (7) year term.  The RSUs granted beginning with the 2020 annual grant shall vest in three (3) annual installments beginning on the first anniversary of the applicable grant date.  The PSUs granted beginning with the 2020 annual grant shall vest promptly following the public disclosure of the Company’s financial results for the second year following the year of grant, subject to the achievement of applicable performance conditions.  The valuation for PSUs and RSUs granted starting with the 2020 annual grant and continuing through the remainder of the Term shall be consistent with the Company’s valuation for grants given to other senior executives at the time.  

	
5.
	
Section 3(j) of the Agreement is hereby deleted in its entirety and replaced with the following:

2

 

 

Other Benefits. For 2018, 2019, and 2020, the Company shall reimburse the Executive for up to $10,000 per year for financial, estate and tax planning services, which shall be a taxable benefit to the Executive.  For 2021, 2022, and 2023, the Company shall reimburse the Executive for up to $15,000 per year for financial, estate and tax planning services, life insurance premiums, and charitable contributions, which shall be a taxable benefit to the Executive.  

	
6.
	
Section 4(a) of the Agreement is hereby revised by deleting the third sentence thereof in its entirety and replacing it with the following:

Furthermore, upon a termination of employment as the result of the Executive’s death or Disability, a portion of the Executive’s Options, RSUs, and PSUs that have already been granted pursuant to this Agreement shall vest such that, when combined with previously vested Options, RSUs, and PSUs, an aggregate of 50% of all of the Options, RSUs, and PSUs that have been granted pursuant to this Agreement shall have vested (in the case of PSUs, subject to the achievement of the original performance conditions, measured at the conclusion of the relevant performance period).

	
7.
	
Section 4(b) of the Agreement is hereby revised by deleting clause (B) in the first sentence thereof and replacing it with the following:

(B) all unvested Options and outstanding RSUs and PSUs, and any unvested stock options and unvested restricted stock units included in the Prior Grants and any other outstanding unvested stock options, unvested restricted stock units, unvested performance shares or unvested performance stock units granted to the Executive after the date hereof (collectively, the “Unvested Equity Awards”), will be cancelled without consideration and the Executive shall have no further rights with respect to such Unvested Equity Awards. 

	
8.
	
Section 4(c)(i)(D) of the Agreement is hereby deleted in its entirety and replaced with the following:

(D)for all Options, RSUs, and PSUs other than those awarded during the 2021, 2022, and 2023 annual grants, equity that has not yet been granted or has not yet vested shall be treated as follows:

1.If the termination without Cause or resignation for Good Reason occurs prior to the 2020 grant, the entire 2020 grant is forfeited;

2.If the termination without Cause or resignation for Good Reason occurs prior to the 2019 grant, the 2019 Option grant is forfeited and the 2019 RSU grant is granted with immediate vesting;

3.Except as set forth above, all Unvested Equity Awards following a termination without Cause or resignation for Good Reason survive and shall vest immediately (in the case of PSUs, subject to the achievement of the original performance conditions, measured at the conclusion of the relevant performance period); and

3

 

 

4.The Executive will have 12 months after a termination without Cause or resignation for Good Reason to exercise vested Options.

	
9.
	
A new section 4(c)(i)(E) of the Agreement is hereby added, as follows:

 (E)for the 2021, 2022, and 2023 annual grants, all outstanding equity will be treated in accordance with the LTIP or the applicable award letters; provided, however, that (a) granted Options, PSUs, and RSUs shall continue to vest on schedule during the Severance Period (in the case of PSUs, subject to the achievement of applicable performance conditions), and (b) all vested Options shall remain exercisable until the first to occur of (i) the passage of twelve (12) months beyond the end of the Severance Period, and (ii) the expiration of the remaining term of the vested Options.

	
10.
	
Section 4(d) of the Agreement is hereby amended by deleting subsection 4(d)(i) and replacing it with the following, and by adding the following new subsections 4(d)(iv), 4(d)(v), and 4(d)(vi):

(i) In addition to the payments under Section 4(c) and subject to Section 4(f), the Executive shall receive a cash payment equal to $1,400,000 for each annual equity grant in 2018, 2019, and 2020 under Section 3(c) of this Agreement that has not been made as of the date of the Separation from Service.

(iv) All of the Executive’s granted and outstanding Options and RSUs shall accelerate and vest immediately.

(v) With respect to Executive’s granted and outstanding PSUs, any requirement for continued service through the end of the applicable performance period shall be waived, and the number of Executive’s PSUs that may become vested and settled in accordance with the terms thereof at the end of the applicable performance period shall be measured by the greater of (x) the Company’s performance on the last trading day immediately preceding the date upon which the Change in Control is consummated, or (y) to the extent that the performance conditions remain applicable to the Company following the Change in Control, as determined in good faith by the Board, then the actual performance of the Company against those performance conditions as of the end of the applicable performance period will determine the number of PSUs that vest.  To the extent that the performance conditions no longer apply to the Company following a Change of Control, then clause (x) shall determine the number of PSUs that may vest.  Any unvested PSUs that do not vest in accordance with the foregoing shall be forfeited and canceled and the Executive shall have no further rights with respect thereto.

(vi) For the sake of clarity, the Executive shall not receive any compensation for any annual equity grant in 2021, 2022, and 2023 that has not been made as of the date of the Separation from Service.

	
11.
	
Section 4(e)(ii) of the Agreement is hereby deleted in its entirety and replaced with the following:

4

 

 

(ii) All equity that remains unvested as of December 31, 2023 will, pursuant to the Service Factor provision in the LTIP and the grant agreements entered into between the Company and the Executive pursuant to the LTIP, continue to vest in accordance with the original vesting schedule (in the case of PSUs, subject to the achievement of the original performance conditions, measured at the conclusion of the relevant performance period).  

	
12.
	
Section 21 of the Agreement is hereby revised by deleting the notice address for the Company therein and replacing it with the following:

IMAX Corporation

902 Broadway, 20th Floor

New York, NY 10010

Attention:  EVP & Chief People Officer

 

	
13.
	
Except as amended herein, all other terms of the Agreement shall remain in full force, unamended. 

 

IN WITNESS WHEREOF, the Company and the Executive have duly executed and delivered this First Amending Agreement as of the date first set forth above. 

 

 

IMAX CORPORATION

 

 

 

By:/s/ Richard L. Gelfond 

Name: Richard L. Gelfond

Title: Chief Executive Officer

 

 

 

EXECUTIVE

 

 

/s/ Robert D. Lister_____________________Robert D. Lister

 

5

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