Document:

Exhibit 10.2

Exhibit 10.2

CONTRIBUTION AGREEMENT

This Contribution Agreement, dated as of March 7, 2011 (this “Agreement”), is made and entered
into by and between Hicks Acquisition Company II, Inc. (the “Company”) and William A. Montgomery
(the “Stockholder”).

RECITALS

WHEREAS, on October 14, 2010, the Company consummated an underwritten initial public offering
(the “Offering”) of 15,000,000 units (“Units”), each Unit consisting of one share of common stock,
par value $0.0001 per share (“Common Stock”), and one warrant to purchase one share of Common
Stock, pursuant to a registration statement on Form S-1 and a prospectus filed with the Securities
and Exchange Commission;

WHEREAS, in connection with the Offering, the Company also granted to the underwriters of the
Offering (the “Underwriters”) a 45-day option to purchase up to an additional 2,250,000 Units to
cover any over-allotments (the “Over-Allotment Option”);

WHEREAS, the Stockholder is the holder of 12,321 shares of Common Stock, which it acquired in
a private transaction prior to the consummation of the Offering (the “Founder Shares”), a portion
of which are subject to forfeiture in the event the sales price of the Common Stock does not
achieve certain performance benchmarks (the “Founder Earnout Shares”);

WHEREAS, as a condition to the closing of the Offering, up to 1,607 Founder Shares (which
includes up to 321 Founder Earnout Shares) are subject to forfeiture by the Stockholder if the
Underwriters do not exercise the Over-Allotment Option; and

WHEREAS, the Underwriters have notified the Company that they will not exercise the
Over-Allotment Option and, as a result, the Stockholder wishes to return to the Company for
cancellation 1,607 Founder Shares (which includes 321 Founder Earnout Shares).

STATEMENT OF AGREEMENT

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, intending to be
legally bound, hereby agree as follows:

Section 1 Surrender of Founder Shares. The Stockholder hereby assigns and surrenders
to the Company for cancellation 1,607 Founder Shares (which includes 321 Founder Earnout Shares).
After giving effect to the cancellation of such shares, the Stockholder hereby acknowledges that it
holds 10,714 Founder Shares (which includes 2,143 Founder Earnout Shares).

 

 

 

Section 2 No Conflicts. Each party hereto represents and warrants that neither the
execution and delivery of this Agreement by such party, nor the consummation or performance by such
party of any of transactions contemplated hereby, will with or without notice or lapse of time,
constitute, create or result in a breach or violation of, default under, loss of benefit or right
under or acceleration of performance of any obligation required under any agreement to which
it is a party.

Section 3 Miscellaneous. This Agreement, together with the certificates, documents,
instruments and writings that are delivered pursuant hereto, constitutes the entire agreement and
understanding of the parties hereto in respect of its subject matter. 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. This Agreement may not be amended, modified
or waived as to any particular provision, except by a written instrument executed by all parties
hereto. Except as otherwise provided herein, no party hereto may assign this Agreement or any of
its rights, interests, or obligations hereunder without the prior written consent of the other
party.

[SIGNATURE PAGE FOLLOWS]

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	STOCKHOLDER:	 	 
	 
	 	 	 	/s/ William A. Montgomery	 	 	 	 
	 	 	 	 	 
	 	 	William A. Montgomery	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HICKS ACQUISITION COMPANY II, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christina Weaver Vest	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christina Weaver Vest	 	 
	 

	 	 	 	Title:
	 	President, Chief Executive Officer and	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 

Signature Page to Contribution AgreementExhibit 10.3

Exhibit 10.3

CONTRIBUTION AGREEMENT

This Contribution Agreement, dated as of March 7, 2011 (this “Agreement”), is made and entered
into by and between Hicks Acquisition Company II, Inc. (the “Company”) and William F. Quinn (the
“Stockholder”).

RECITALS

WHEREAS, on October 14, 2010, the Company consummated an underwritten initial public offering
(the “Offering”) of 15,000,000 units (“Units”), each Unit consisting of one share of common stock,
par value $0.0001 per share (“Common Stock”), and one warrant to purchase one share of Common
Stock, pursuant to a registration statement on Form S-1 and a prospectus filed with the Securities
and Exchange Commission;

WHEREAS, in connection with the Offering, the Company also granted to the underwriters of the
Offering (the “Underwriters”) a 45-day option to purchase up to an additional 2,250,000 Units to
cover any over-allotments (the “Over-Allotment Option”);

WHEREAS, the Stockholder is the holder of 12,321 shares of Common Stock, which it acquired in
a private transaction prior to the consummation of the Offering (the “Founder Shares”), a portion
of which are subject to forfeiture in the event the sales price of the Common Stock does not
achieve certain performance benchmarks (the “Founder Earnout Shares”);

WHEREAS, as a condition to the closing of the Offering, up to 1,607 Founder Shares (which
includes up to 321 Founder Earnout Shares) are subject to forfeiture by the Stockholder if the
Underwriters do not exercise the Over-Allotment Option; and

WHEREAS, the Underwriters have notified the Company that they will not exercise the
Over-Allotment Option and, as a result, the Stockholder wishes to return to the Company for
cancellation 1,607 Founder Shares (which includes 321 Founder Earnout Shares).

STATEMENT OF AGREEMENT

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, intending to be
legally bound, hereby agree as follows:

Section 1 Surrender of Founder Shares. The Stockholder hereby assigns and surrenders
to the Company for cancellation 1,607 Founder Shares (which includes 321 Founder Earnout Shares).
After giving effect to the cancellation of such shares, the Stockholder hereby acknowledges that it
holds 10,714 Founder Shares (which includes 2,143 Founder Earnout Shares).

 

 

 

Section 2 No Conflicts. Each party hereto represents and warrants that neither the
execution and delivery of this Agreement by such party, nor the consummation or performance by such
party of any of transactions contemplated hereby, will with or without notice or lapse of time,
constitute, create or result in a breach or violation of, default under, loss of benefit or right
under or acceleration of performance of any obligation required under any agreement to which
it is a party.

Section 3 Miscellaneous. This Agreement, together with the certificates, documents,
instruments and writings that are delivered pursuant hereto, constitutes the entire agreement and
understanding of the parties hereto in respect of its subject matter. 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. This Agreement may not be amended, modified
or waived as to any particular provision, except by a written instrument executed by all parties
hereto. Except as otherwise provided herein, no party hereto may assign this Agreement or any of
its rights, interests, or obligations hereunder without the prior written consent of the other
party.

[SIGNATURE PAGE FOLLOWS]

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	STOCKHOLDER:	 	 
	 
	 	 	 	/s/ William F. Quinn	 	 	 	 
	 	 	 	 	 
	 	 	William F. Quinn	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HICKS ACQUISITION COMPANY II, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christina Weaver Vest	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christina Weaver Vest	 	 
	 

	 	 	 	Title:
	 	President, Chief Executive Officer and
Chief Financial Officer	 	 

Signature Page to Contribution Agreementexv10w14

Exhibit 10.14

APPROACH RESOURCES INC.

2007 STOCK INCENTIVE PLAN

2011 RESTRICTED STOCK AWARD AGREEMENT

PERFORMANCE VESTING

AND TIME VESTING REQUIREMENTS

     THIS AGREEMENT, made and entered into as of the ___ day of ____________, 2011, by and between
Approach Resources Inc., a Delaware corporation (“Approach”), and _________________________, an
employee, outside director or other individual providing services to Approach or one of its
Affiliates (“Participant”).

     WHEREAS, the Compensation Committee of Approach’s Board of Directors or such other committee
designated by Approach’s Board of Directors (the “Committee”), acting under Approach’s 2007 Stock
Incentive Plan (the “Plan”), has the authority to award restricted shares of Approach’s common
stock, $0.01 par value per share (the “Common Stock”), to employees, outside directors or other
individuals providing services to Approach or an Affiliate;

     WHEREAS, pursuant to the Plan, the Committee has determined to make such an award to
Participant on the terms and conditions and subject to the restrictions set forth in the Plan and
this Agreement, and Participant desires to accept such award; and

     WHEREAS, a copy of the Plan has been made available to Participant and shall be deemed a part
of this Agreement as if fully set forth herein and the terms capitalized but not defined herein
shall have the meanings set forth in the Plan.

     NOW, THERFORE, in consideration of the premises and mutual covenants and agreements contained
herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

     1. Restricted Stock Award. On the terms and conditions and subject to the
restrictions, including forfeiture, hereinafter set forth, Approach hereby awards to Participant,
and Participant hereby accepts, a restricted stock award (the “Award”) of _____ shares (the
“Restricted Shares”) of Common Stock. The Award is made on the ___ day of ____________, 2011 (the
“Grant Date”). A certificate representing the Restricted Shares shall be issued in the name of
Participant (or, at the option of Approach, in the name of a nominee of Approach) as of the Grant
Date and delivered to Participant on the Grant Date or as soon thereafter as is practicable.
Participant shall cause the certificate representing the Restricted Shares, upon receipt thereof by
Participant, to be deposited, together with stock powers and any other instrument of transfer
reasonably requested by Approach duly endorsed in blank, with Approach, to be held by Approach in
escrow for Participant’s benefit until such time as the Restricted Shares represented by such
certificate are either forfeited by Participant to Approach or the restrictions thereon terminate
as set forth in this Agreement.

     2. Vesting and Forfeiture.

          (a) The Restricted Shares shall be subject to a restricted period that shall
commence on the Grant Date and shall end on the time-based vesting dates described in Section
2(a)(ii) below (the “Restricted Period”), subject to the satisfaction of the Performance
Vesting Requirement described in Section 2(a)(i). During the Restricted Period, the
Restricted Shares shall be subject to being forfeited by Participant to Approach as provided in
this Agreement, and Participant may not sell, transfer, pledge, exchange, hypothecate or otherwise
dispose of any of the Restricted Shares (the “Restrictions”).

          (i) Performance Vesting Requirement. The “Performance Vesting
Requirement” means the performance-based vesting Restrictions for the Restricted Shares.
The Performance Vesting

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Requirement shall be satisfied by the achievement of the “Performance Goals,” which are
performance criteria established by the Committee pursuant to Article XI of the Plan
and set forth in Appendix A attached hereto. After the end of the 2011 calendar
year, the Committee will review and analyze Approach’s performance for the 2011 calendar
year and determine whether the Performance Vesting Requirement has been satisfied. If the
Committee determines that the Performance Vesting Requirement has been satisfied, the
Committee will certify the achievement of each of the Performance Goals for the 2011
calendar year and then the Time Vesting Requirement in Section 2(a)(ii) below will
be the remaining Restriction applicable to the Restricted Shares. If the Committee
determines that the Performance Vesting Requirement has not been satisfied, (i) the
Participant shall have no rights whatsoever in and to any of the Restricted Shares, (ii) all
of the Restricted Shares shall automatically revert to Approach at no cost and (iii) neither
the Participant nor any of his or her heirs, beneficiaries, executors, administrators or
other personal representatives shall have any rights with respect thereto. The Committee’s
certification of the achievement of the Performance Goals will be effective as of December
31, 2011, regardless of any delay in the Committee’s determination of whether the
Performance Goals were satisfied for the 2011 calendar year. The Committee shall have the
sole discretion for determining whether the Performance Vesting Requirement has been
satisfied and any such determination shall be conclusive.

          (ii) Time Vesting Requirement. The “Time Vesting Requirement” means
the time-based vesting Restrictions for the Restricted Shares during the Restricted Period.
The time-based Restrictions on the Restricted Shares shall lapse and the vesting date shall
occur as to:

          (A) 33-1/3% of the Restricted Shares (if a fractional number, then the
next lower whole number) on December 31, 2012, provided Participant is in the
continuous active service of Approach or an Affiliate until such date;

          (B) an additional 33-1/3% of the Restricted Shares (if a fractional
number, then the next lower whole number) on December 31, 2013, provided Participant
is in the continuous active service of Approach or an Affiliate until such date; and

          (C) the remaining Restricted Shares on December 31, 2014, provided
Participant is in the continuous active service of Approach or an Affiliate until
such date.

Following the removal of the Restrictions on any Restricted Shares pursuant to both the Performance
Vesting Requirement and the Time Vesting Requirement, Approach shall, as soon as administratively
feasible, deliver to Participant from escrow a certificate representing such shares of Common Stock
and Participant shall be free to sell, transfer, pledge, exchange, hypothecate or otherwise dispose
of such shares of Common Stock, subject to applicable securities laws and the policies of Approach
then in effect.

          (b) Subject to paragraph (c) of this Section 2, upon termination of
Participant’s employment or service with Approach or an Affiliate, (i) Participant shall have no
rights whatsoever in and to any of the Restricted Shares as to which the Restrictions have not been
removed pursuant to paragraph (a) of this Section 2 as of the date of the
Participant’s termination of employment or service, (ii) all of the Restricted Shares as to which
the Restrictions have not been removed pursuant to paragraph (a) of this Section 2
as of the date of the Participant’s termination of employment or service shall automatically revert
to Approach at no cost and (iii) neither Participant nor any of his or her heirs, beneficiaries,
executors, administrators or other personal representatives shall have any rights with respect
thereto.

          (c) Change in Control and Termination of Employment or Service for Death or
Disability.

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          (i) Change in Control. The Change of Control provisions in Article
XIII of the Plan shall apply with respect to the Restricted Shares.

          (ii) Termination of Employment or Service for Death or Disability.
If Participant’s employment or service with Approach or an Affiliate is terminated as a
result of the Participant’s death or Disability, then the Restrictions on the Restricted
Shares shall automatically lapse as to any remaining outstanding Restricted Shares the
Participant may hold at the time of such a termination of employment or service. Any
Restrictions imposed upon the Restricted Shares as a result of the Performance Vesting
Requirement will be deemed to be satisfied at the “maximum” levels necessary to satisfy the
Performance Vesting Requirement at the time of the Participant’s termination of employment
or service as a result of the Participant’s death or Disability.

     3. Rights as Stockholder. Subject to the provisions of this Agreement, upon
the issuance of a certificate or certificates representing the Restricted Shares to Participant,
Participant shall become the record and beneficial owner thereof for all purposes and shall have
all rights as a stockholder, including without limitation voting rights and the right to receive
dividends and distributions (provided that any such dividend or distribution shall be paid no later
than the 15th day of the third month of the calendar year following the calendar year in which the
dividend or distribution is declared by Approach), with respect to the Restricted Shares. If and
to the extent Approach shall effect a stock split, stock dividend or similar distribution with
respect to the Common Stock, (a) the stock distributed pursuant thereto shall be held by Approach
with respect to those Restricted Shares as to which the Restrictions have not yet been removed
pursuant to Section 2; (b) such additional stock shall enjoy the privileges and be subject
to the Restrictions applicable to the Restricted Shares; and (c) Participant shall be entitled to
sell, transfer, pledge, exchange, hypothecate or otherwise dispose of such additional stock when
the Restrictions on the Restricted Shares to which the distribution relates have been removed
pursuant to Section 2.

     4. Optional Issuance in Book-Entry Form. Notwithstanding the foregoing, at
the option of Approach, any shares of Common Stock that under the terms of this Agreement are
issuable in the form of a stock certificate may instead be issued in book-entry form.

     5. Withholding Taxes.

          (a) Participant may elect, within 30 days of the Grant Date and on notice to
Approach and the Internal Revenue Service in accordance with Section 83(b) of the Internal Revenue
Code of 1986, as amended, and the regulations and other guidance thereunder, to realize income for
federal income tax purposes equal to the fair market value of the Restricted Shares on the Grant
Date. In such event, Participant shall make arrangements satisfactory to Approach or the
appropriate Affiliate to pay in the calendar year that includes the Grant Date any federal, state
or local taxes required to be withheld with respect to such shares.

          (b) If no election is made by Participant pursuant to Section 5(a) hereof,
then upon the termination of the Restrictions applicable hereunder to all or any portion of the
Restricted Shares, Participant (or in the event of Participant’s death, the administrator or
executor of Participant’s estate) will pay to Approach or the appropriate Affiliate, or make
arrangements satisfactory to Approach or such Affiliate regarding payment of, any federal, state or
local taxes of any kind required by law to be withheld with respect to the Restricted Shares with
respect to which such Restrictions have terminated. Approach may allow the Participant to pay the
amount of such taxes required by law to be withheld with respect to the Restricted Shares by (i)
withholding shares of Common Stock from any issuance of Common Stock due as a result of the removal
of the Restrictions on any Restricted Shares, or (ii) permitting the Participant to deliver to
Approach previously acquired shares of Common Stock, in each case having an aggregate fair market
value equal to the amount of such required withholding taxes.

3

 

          (c) Any provision of this Agreement to the contrary notwithstanding, if Participant
does not satisfy his or her obligations under paragraphs (a) or (b) of this Section
5, Approach shall, to the extent permitted by law, have the right to deduct from any payments
made under the Plan, regardless of the form of such payment, or from any other compensation payable
to Participant, whether or not pursuant to this Agreement or the Plan and regardless of the form of
payment, any federal, state or local taxes of any kind required by law to be withheld with respect
to the Restricted Shares.

     6. Reclassification of Shares. In the event of any reorganization,
recapitalization, stock split, stock dividend, merger, consolidation, combination of shares or
other change affecting the Common Stock, the Committee shall make adjustments in accordance with
the Plan. Any such adjustments made by the Committee shall be conclusive.

     7. Effect on Employment. Nothing contained in this Agreement shall confer
upon Participant the right to continue in the employment of Approach or any Affiliate, or affect
any right which Approach or any Affiliate may have to terminate the employment of Participant.
This shall not be construed as any agreement or understanding, express or implied, that Approach or
any Affiliate will retain Participant as an employee for any period of time or at any particular
rate of compensation or other terms and conditions of employment unrelated to Restricted Shares.

     8. Investment Representations.

          (a) The Shares are being received for Participant’s own account with the intent of
holding them and without the intent of participating, directly or indirectly, in a distribution of
such Shares and not with a view to, or for resale in connection with, any distribution of such
Shares or any portion thereof.

          (b) A legend may be placed on any certificate(s) or other document(s) delivered to
Participant or substitute therefore indicating restrictions on transferability of the Shares
pursuant to this Agreement or referring to any stop transfer orders and other restrictions as the
Committee may deem advisable under the rules, regulations and other requirements of the Securities
and Exchange Commission, NASDAQ or any other stock exchange or association upon which the common
stock of Approach is then listed or quoted, any applicable federal or state securities laws, and
any applicable corporate law, and any transfer agent of Approach shall be instructed to require
compliance therewith.

     9. Assignment. Approach may assign all or any portion of its rights and
obligations under this Agreement. The Award, the Restricted Shares and the rights and obligations
of Participant under this Agreement may not be assigned, sold, transferred, pledged, exchanged,
hypothecated or otherwise disposed of by Participant other than by will or the applicable laws of
descent and distribution.

     10. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of (a) Approach and its successors and assigns, and (b) Participant and his or her heirs,
devisees, executors, administrators and personal representatives.

     11. Notices. All notices between the parties hereto shall be in writing and
given in the manner provided in Section 15.7 of the Plan. Notices to Participant shall be
given to Participant’s address as contained in Approach’s records. Notices to Approach shall be
addressed to the Corporate Secretary at the principal executive offices of Approach as set forth in
Section 15.7 of the Plan.

     12. Governing Law; Exclusive Forum; Consent to Jurisdiction. This Agreement
shall be governed by the laws of the State of Delaware except for its laws with respect to conflict
of laws. The exclusive forum for any lawsuit arising from or related to this Agreement shall be a
state or federal court in Tarrant County, Texas. This provision does not prevent Approach from
removing to an appropriate federal court any

4

 

action brought in state court. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS PROHIBITING
REMOVAL TO FEDERAL COURT BY APPROACH OF ANY ACTION BROUGHT AGAINST IT BY PARTICIPANT.

     13. Execution of Receipts and Releases. Any issuance or transfer of the
Shares to Participant or Participant’s legal representative, heir, legatee or distributee, in
accordance with the provisions of this Agreement, shall be in full satisfaction of all claims of
such persons hereunder related to the Award. Approach may require Participant or Participant’s
legal representative, heir, legatee or distribute, as a condition precedent to such issuance, to
execute such a release and receipt therefore in such form as Approach may determine.

     14. Severability. If any provision of this Agreement is held to be illegal
or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions
hereof, but such provision shall be fully severable and this Agreement shall be construed and
enforced as if the illegal or invalid provision had never been included herein.

     15. Headings. The titles and headings of Sections are included for
convenience of reference only and are not to be considered in construction of the provisions
hereof.

     16. Amendment. The Committee may amend the terms of this Award and this
Agreement at any time, although no such amendment shall adversely affect, in any material way, the
Participant’s (or a Participant’s Permitted Transferee’s) rights under an outstanding Award without
the prior consent of the Participant (or the Participant’s Permitted Transferee) then holding the
Award.

     17. Entire Agreement. This Agreement constitutes the entire agreement
between the parties concerning its subject matter and supersedes all prior agreements,
understandings, and statements, both written and oral, between the parties with respect to such
subject matter. In signing this Agreement, the Participant is not relying on any written or oral
statement, promise, or representation from Approach or its Affiliates concerning this Agreement
other than as set above in this Agreement.

     18. Miscellaneous. Notwithstanding anything to the contrary in this
Agreement, Approach will not be required to comply with any term, covenant or condition of this
Agreement if and to the extent prohibited by applicable law. Participant shall reimburse Approach
for incentive-based or equity-based compensation and profits realized from the sale of the
Restricted Shares covered by this Agreement as required by applicable law, including, but not
limited to, Section 304 of the Sarbanes-Oxley Act of 2002 and Section 954 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010, and agrees that Approach need not comply with
any term, covenant or condition of this Agreement to the extent that doing so would require that
Participant reimburse Approach for such amounts pursuant to Section 304 of the Sarbanes-Oxley Act
of 2002 and/or Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010.

     IN WITNESS WHEREOF, Approach and Participant have executed this Agreement as of the date first
written above.

	 	 	 	 	 	 	 

	 	APPROACH RESOURCES INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

5

 

	 	 	 	 	 	 	 

	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

Participant Signature
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

Participant Printed Name
	 	 

6

 

STOCK POWER AND ASSIGNMENT

SEPARATE FROM CERTIFICATE

     FOR VALUE RECEIVED and pursuant to that certain Approach Resources Inc. 2007 Stock Incentive
Plan and the Restricted Stock Award Agreement dated _______________, 20___ (the “Agreement”), the
undersigned Participant hereby sells, assigns and transfers unto ____________________, __________
shares of Common Stock, $0.01 par value per share, of Approach Resources Inc., a Delaware
corporation (“Approach”), standing in the undersigned’s name on the books of Approach and does
hereby irrevocably constitute and appoint the Corporate Secretary of Approach as the undersigned’s
attorney-in-fact, with full power of substitution, to transfer said stock on the books of Approach.
THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND ANY EXHIBITS THERETO.

Dated:      
                    
            

PARTICIPANT

	 	 	 	 	 

	 

	 	 

Participant Signature
	 	 
	 
	 	 	 	 
	 

	 	 

Participant Printed Name
	 	 

7

 

APPENDIX A

TO RESTRICTED STOCK AWARD AGREEMENT

Performance Goals for Performance Vesting Requirement

     The Performance Goals for the Restricted Shares shall be comprised of the three company goals
set forth in Section 1 of this Appendix A below. All three of the Performance
Goals must be met or exceeded for the Performance Vesting Requirement for the Restricted Shares to
be satisfied; if only one or two of the Performance Goals are met, no proportional vesting shall
occur. The Committee shall have the sole discretion for determining whether the Performance
Vesting Requirement has been satisfied and any such determination shall be conclusive.

     1. Performance Goals. The following Performance Goals shall apply with
respect to the Restricted Shares and relate to the calendar year ending December 31, 2011 (the
“2011 calendar year”):

     (a) Approach’s proved oil and gas reserves as of December 31, 2011,
increased a minimum of 10.0% during the 2011 calendar year, as compared to
Approach’s proved oil and gas reserves as of December 31, 2010;

     (b) Finding and Development (“F&D”) costs did not exceed $15.00 per
Boe for the 2011 calendar year; and

     (c) Long-term debt as of December 31, 2011, must not exceed
2.75 times EBITDAX for the 2011 calendar year.

     2. Definitions and Calculations Procedures

     (a) Proved oil and gas reserves are the estimated volumes of Approach’s total
proved oil and gas reserves as determined by an independent reserve engineering firm in
accordance with the rules and regulations of the Securities and Exchange Commission.

     (b) F&D costs are calculated by dividing the sum of property acquisition,
exploration and development costs by extensions, discoveries, acquisitions and revisions
(excluding price revisions).

     (c) Long-term debt is calculated under GAAP as included in the Company’s
balance sheet.

     (d) EBITDAX is calculated as net income (loss), plus (i) exploration expense,
(ii) depletion, depreciation and amortization expense, (iii) share-based compensation
expense, (iv) unrealized gain (loss) on commodity derivatives, (v) interest expense, and
(vi) income taxes. EBITDAX may also include other non-recurring items that the Committee, in
its sole discretion, may deem appropriately added back to GAAP net income.

     (e) Boe is one barrel of oil equivalent, using a conversion of ratio of six
thousand cubic feet of natural gas to one barrel of oil, condensate or natural gas liquids.

A-1

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