Document:

Employment Agreement

 Exhibit 10.1 

MARYANNE MORIN 

AGREEMENT 
 WITH

 STEIN MART, INC. 

This Agreement (this “Agreement”) entered into in the City of Jacksonville and State of Florida between Stein Mart,
Inc., a Florida corporation and its divisions, subsidiaries and affiliates (the “Company”), and MaryAnne Morin, President, Chief Merchandising Officer (“Executive”), is made as of
December 5, 2016 (the “Effective Date”). 
 In consideration of the promises and mutual covenants contained
herein, the parties, intending to be legally bound, agree as follows: 
  

	SECTION 1.	TERM OF EMPLOYMENT 

 (a)    Term. The Company
agrees to employ Executive, and Executive agrees to be employed by the Company, for a period of two (2) year(s) beginning on the Effective Date (the “Term”). 

 

	SECTION 2.	DEFINITIONS 

 “Board of Directors” means the Board of Directors
of Stein Mart, Inc. and any of its divisions, affiliates or subsidiaries. 
 “Cause” means the occurrence of any one
or more of the following: 
 (a)    Executive has been convicted of, or pleads guilty or nolo
contendere to, a felony involving dishonesty, theft, misappropriation, embezzlement, fraud crimes against property or person, or moral turpitude which negatively impacts the Company; or 

(b)    Executive intentionally furnishes materially false, misleading, or omissive information concerning a
substantial matter to the Company or persons to whom the Executive reports; or 
 (c)    Executive
intentionally fails to fulfill any assigned responsibilities for compliance with the Sarbanes-Oxley Act of 2002 or violates the same; or 

  
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 (d)    Executive intentionally and wrongfully damages
material assets of the Company; or 
 (e)    Executive intentionally and wrongfully discloses material
Confidential Information of the Employer; or 
 (f)    Executive intentionally and wrongfully engages in
any competitive business activity which would constitute a material breach of the duty of loyalty; or 

(g)    Executive intentionally breaches any stated material employment policy or any material provision of
the Company’s Ethics Policy which could reasonably be expected to expose the Company to liability, or 

(h)    Executive intentionally commits a material breach of this Agreement, or 

(i)    Executive intentionally engages in acts or omissions which constitute failure to follow reasonable,
material, and lawful directives of the Company, provided, however, that such acts or omissions are not cured within five (5) days following the Company’s giving notice to Executive that the Company considers such acts or omissions to be
“Cause” under this Agreement. 
 No act, or failure to act, on the part of Executive shall be deemed “intentional” if it was due
primarily to an error in judgment or simple negligence, but shall be deemed “intentional” only if done, or omitted to be done, by the Executive not in good faith and without reasonable belief that his or her action or omission was in or
not opposed to the best interests of the Company. Failure to meet performance standards or objectives, unless as set forth in 2(i) above, shall not constitute Cause for purposes hereof. 

“Change in Control” means the occurrence of any of the following: (a) the Board approves the sale of all or
substantially all of the assets of the Company in a single transaction or series of related transactions; (b) the Company sells and/or one or more shareholders sells a sufficient amount of its capital stock (whether by tender offer, original
issuance, or a single or series of related stock purchase and sale agreements and/or transactions) sufficient to confer on the purchaser or purchasers thereof (whether individually or a group acting in concert) beneficial ownership of at least 35%
of the combined voting power of the voting securities of the Company; (c) the Company is party to a merger, consolidation or combination, other than any merger, consolidation or combination that would result in the holders of the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting
securities of the Company (or such surviving entity) outstanding immediately after such merger, consolidation or combination; or (d) a majority of the board of directors consists of individuals who are not Continuing Directors (for this
purpose, a Continuing Director is an individual who (i) was a director of the Company on January 1, 2014 or (ii) whose election or nomination 

  
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as a director of the Company is approved by a vote of at least a majority of the directors then comprising the Continuing Directors). For purposes hereof, the definition of a Change of Control
shall be construed and interpreted so as to comply with the definition contained in Code Section 409A. 
 “Code”
means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code shall be deemed to refer to any successor provision thereto and the regulations promulgated thereunder. 

“Commencement Date” means February 6, 2017, the date the Executive shall report for work and
assume Executive’s responsibilities hereunder. 
 “Compensation Committee” means the Company’s
Compensation Committee or, if no such committee exists, the term Compensation Committee shall mean the Company’s Board of Directors. 

“Continuation Period” means a period following the Termination Date of the Executive’s employment with the
company equal to: 
 (a) twelve (12) months (i) following a termination by the Company due to a
non-renewal of the Term of this Agreement under §5(a) hereof, or (ii) following a termination by the Company without Cause or by the Executive for Good Reason under §5(b) hereof, or 

(b) twenty-four (24) months following a termination (i) by the Company without Cause following a Change in Control under
§5(f)(i) hereof, or (ii) by the Executive for Good Reason following a Change in Control under §5(b) as the definition of Good Reason is expanded in §5(b)(i) hereof. 

The Continuation Period is zero months following (i) a termination by the Company for Cause, (ii) a termination by the Executive without Good
Reason, or (iii) a failure of the Executive to accept the Company’s offer of renewal of the Term of this Agreement under §5(a) hereof. 

“Current Insurance Coverage” means medical, dental, life and accident and disability insurance with coverage
consistent with the lesser of (i) the coverage in effect at Executive’s termination, or (ii) the coverage in effect from time to time as applied to persons in positions similar to the position held by Executive at the time of
termination. 
 “Disability” means Executive’s incapacity due to physical or mental illness or cause, which
results in the Executive being unable to perform her duties, with or without a reasonable accommodation, with the Company on a full-time basis for a period of six (6) consecutive months. Any dispute as to disability shall be conclusively
determined by written opinions rendered by two qualified physicians, one selected by Executive, and one selected by Company; provided that if such opinions are conflicting, then such physicians shall select a mutually agreeable third physician whose
opinion shall be conclusive and binding. 

  
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 “Earned Bonus” means the bonus paid, if any, pursuant to the
Company’s incentive compensation plans in effect from time to time. Earned Bonus shall be prorated based on the ratio of the number of days during such year that Executive was employed to 365. 

“Good Reason” means the occurrence of any one or more of the following: 

 

	 	(i)	a material and continuing failure to pay to Executive compensation and benefits (as described in Section 4) that have been earned, if any, by Executive, except failure to pay or provide
compensation or benefits that are in dispute between the Company and the Executive unless such failure continues following the resolution of such dispute; or 

  

	 	(ii)	a material reduction in Executive’s compensation or benefits (as described in Section 4) other than a uniform reduction applied to all executive officers of the company that does not result in a reduction of
Annual Base Salary of more than ten percent (10%); or 

  

	 	(iii)	any failure by the Company to comply with any of the material provisions of this Agreement and which is not remedied by the Company within thirty (30) days after receipt of notice thereof given by Executive; or

  

	 	(iv)	any requirement that Executive perform duties that, in the good faith and reasonable professional judgment of Executive, after consultation with the Board of Directors of the Company, are inconsistent with ethical or
lawful business practices; or 

  

	 	(v)	Executive’s being required to relocate to a principal place of employment more than one-hundred (100) miles from his or her current principal place of employment in
Jacksonville, Florida during the Term; or 

  
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	 	(vi)	If following a Change in Control only, there occurs a material change in Executive’s duties, roles, or responsibilities. For purposes of this subsection, “material change” shall be of such a character
that a reasonable person serving in a like or similar executive capacity would feel compelled to resign from employment. Examples of “material change” include, but are not limited to substantial reduction of Executive’s authority to
make decisions relating to his or her business responsibilities; Executive being required to assume or perform substantially greater responsibilities (without additional compensation) than previously required to perform; substantial reduction of
Executive’s responsibilities for personnel matters relating to his or her business operations; substantial alteration or change in Executive’s work schedule; any restructuring or reassignment of any of the Executive’s
responsibilities, in a manner that diminishes them or is materially adverse to the Executive, from that which was in effect at the time of the Change in Control; and other substantial changes in Executive’s terms or conditions of employment not
related to Executive’s principal business responsibilities. Good Reason pursuant to this subsection shall not exist unless (a) the Executive’s “material change” has existed for a period of at least six months;
(b) Executive has consulted with management senior to Executive and his or her supervisor, in a good faith effort to resolve the issues giving Executive reason to believe a “material change” has occurred, and such issues have not been
cured within thirty (30) days; and (c) Executive gives written notice of Executive’s resignation for Good Reason under this paragraph within eight months following the commencement of the “material change”.

 (vii) If following the appointment by the Board of Directors of a CEO or Interim CEO other than Hunt Hawkins, Jay Stein, or
Executive, there occurs a material change in Executive’s duties, roles, or responsibilities. For purposes of this subsection, “material change” shall be of such a character that a reasonable person serving in a like or similar
executive capacity would feel compelled to resign from employment. Examples of “material change” include, but are not limited to substantial reduction of Executive’s authority to make decisions relating to his or her business
responsibilities; Executive being required to assume or perform substantially greater responsibilities (without additional compensation) than previously required to perform; substantial reduction of Executive’s responsibilities for personnel
matters relating to his or her business operations; substantial alteration or change in Executive’s work schedule; any restructuring or reassignment of any of the Executive’s responsibilities, in a manner that diminishes them or is
materially adverse to the Executive, from that which was in effect at the time of the appointment; and other substantial changes in Executive’s terms or conditions of employment not related to Executive’s principal business
responsibilities. Good Reason pursuant to this subsection shall not exist unless (a) the Executive’s “material change” has existed for a period of at least six months; (b) Executive has consulted with management senior to
Executive and his or her supervisor, in a good faith effort to resolve the issues giving Executive reason to believe a “material change” has occurred and 

  
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such issues have not been cured within thirty (30) days; and (c) Executive gives sixty (60) days written notice of Executive’s resignation for Good Reason under this paragraph
within fifteen months of the commencement of the “material change”. 
 “Termination Date” means the date of
Executive’s termination of employment, or if the Executive continues to provide services to Stein Mart, Inc. or its 409A affiliates following his or her termination of employment, such later date as is considered a separation from service from
Stein Mart, Inc. and its 409A affiliates within the meaning of Code Section 409A. For purposes of this Agreement, the Executive’s “termination of employment” shall be presumed to occur when Stein Mart, Inc. and the Executive
reasonably anticipate that no further services will be performed by the Executive for Stein Mart, Inc. and its 409A affiliates or that the level of bona fide services the Executive will perform as an employee of Stein Mart, Inc. and its 409A
affiliates will permanently decrease to no more than 20% of the average level of bona fide services performed by the Executive (whether as an employee or independent contractor) for Stein Mart, Inc. and its 409A affiliates over the immediately
preceding 36-month period (or such lesser period of services). Whether the Executive has experienced a termination of employment shall be determined by Stein Mart, Inc. in good faith and consistent with
Section 409A of the Code. Notwithstanding the foregoing, if the Executive takes a leave of absence for purposes of military leave, sick leave or other bona fide reason, the Executive will not be deemed to have experienced a termination of employment
for the first six (6) months of the leave of absence, or if longer, for so long as the Executive’s right to reemployment is provided either by statute or by contract, including this Agreement; provided that if the leave of absence
is due to a medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than six (6) months, where such impairment causes the Executive to be unable to perform the
duties of his or her position of employment or any substantially similar position of employment, with or without a reasonable accommodation, the leave may be extended by Stein Mart, Inc. for up to 29 months without causing a termination of
employment. For purposes hereof, the term “409A affiliate” means each entity that is required to be included in Stein Mart, Inc.’s controlled group of corporations within the meaning of Section 414(b) of the Code, or that is under
common control with Stein Mart, Inc. within the meaning of Section 414(c) of the Code; provided, however, that the phrase “at least 50 percent” shall be used in place of the phrase “at least 80 percent” each place it
appears therein or in the regulations thereunder. 
  

	SECTION 3.	TITLE, POWERS AND RESPONSIBILITIES 

(a)    Title. Executive shall be President and Chief Merchandise Officer of the
Company. Executive shall assume those duties on the Commencement Date. 

  
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 (b)    Powers and Responsibilities. 

 

	 	(i)	Executive shall use Executive’s reasonable best efforts to faithfully perform the duties of his or her employment and shall perform such duties as are usually performed by a person serving in Executive’s
position with a business similar in size and scope as the Company and such other additional duties as may be prescribed from time to time by the Company which are reasonable and consistent with the Company’s operations, taking into account
officer’s expertise and job responsibilities. Executive agrees to devote Executive’s full business time and attention to the business and affairs of the Company; provided, this is not intended to prevent Executive from participating in
charitable or civic activities. Executive shall serve on such boards and in such offices of the Company or its subsidiaries as the Company’s Board of Directors reasonably requests without additional compensation. 

 

	 	(ii)	Executive, as a condition to his or her employment under this Agreement, represents and warrants that he or she can assume and fulfill responsibilities described in Section 3(b)(i) without any risk of violating any non-compete or other restrictive covenant or other agreement to which he or she is a party. During the Employment Term Executive shall not enter into any agreement that would preclude, hinder or impair his or her
ability to fulfill responsibilities described in Section 3(b)(i) specifically or this Agreement generally. 

  

	SECTION 4.	COMPENSATION AND BENEFITS 

 (a)    Annual Base
Salary. Executive’s base salary shall be $725,000.00 per year (“Annual Base Salary”) beginning on the Commencement Date, which amount may be periodically reviewed at the discretion of the Compensation Committee. The
Annual Base Salary and any payments to the Executive during any Continuation Period shall be payable in accordance with the Company’s standard payroll practices and policies (unless otherwise expressly provided herein) and shall be subject to
such withholdings as required by law or as otherwise permissible under such practices or policies. 

(b)    Earned Bonus; Incentive Compensation; Executive shall be eligible to receive an Earned Bonus.
Executive shall also be eligible to participate in such annual and long term incentive plans as are in effect from time to time as applicable to persons at Executive’s level of authority and position. Nothing in this Section 4(b) guarantees
that any Earned Bonus or other incentive compensation will be paid. 
 (c)    Employee Benefit
Plans. Executive shall be entitled to receive the benefits described in Schedule A attached hereto, if and for as long as the Company sponsors such plans and such plans remain in effect for other executives with the same level of status as
Executive. If executives with the same level of status as Executive receive a gross-up payment for taxes on Employee Benefits Plans, then Executive will receive a
gross-up payment. 

  
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 (d)    Stock Options. The Board of Directors, in its
discretion, may grant rights to Executive under the Stein Mart, Inc. Omnibus Plan (the “Option Plan”) on terms set by the Board of Directors or the Compensation Committee. 

(e)    Deferred Compensation. Executive will be eligible to participate in the Stein Mart Executive
Deferred Compensation Plan (the “Deferred Compensation Plan”). The Company reserves the right to alter, modify, revise or eliminate the Deferred Compensation Plan provided that any such change to the terms will apply to
Executive and similarly situated participants. 
 (f)    Vacation, Holidays and Salary
Continuation. Executive shall receive a total of 25 days of paid vacation, or holidays on a pro rata basis during any 365 day period of the Term. The amount may be adjusted in accordance with the Company’s standard policy or as
directed by the Company’s Board of Directors. Any vacation or holiday leave time not used during any 365 day period of the Term will not carry forward to the next 365 period and will be forfeited. 

(g)    Expense Reimbursements. Executive shall have the right to expense reimbursements in
accordance with the Company’s standard policy on expense reimbursements as in effect from time to time. 

(h)    Indemnification. With respect to Executive’s acts or failures to act during his or her
employment in Executive’s capacity as an officer, employee or agent of the Company, Executive shall be entitled to indemnification from the Company, and to liability insurance coverage (if any), on the same basis as other officers of the
Company. Executive shall be indemnified by Company, and Company shall pay Executive’s related expenses when and as incurred, all to the full extent permitted by law. Subject to applicable law, the Company reserves the right to discontinue
indemnification in the event the Executive has advances, or intends to advance, a business or legal position contrary to the Company’s interests. Notwithstanding the foregoing, Executive shall not be entitled to any indemnification if a
judgment or other final adjudication establishes that any act or omission of Executive was material to the cause of action so adjudicated and that such act or omission constituted: (i) a criminal violation, unless Executive had reasonable cause
to believe that Executive’s conduct was lawful or had no reasonable cause to believe that such conduct was unlawful, (ii) a transaction from which Executive derived an improper personal benefit, or (iii) willful misconduct or a
conscious disregard for the best interests of the Company. 
 (i)    Automobile Allowance. The
Company will pay Executive $13,200 per year (paid quarterly) which shall be used for the lease, purchase, maintenance and/or operation of a vehicle that Executive is to use for business travel or may use

  
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for personal travel. Executive shall be solely responsible for any taxes associated with the automobile allowance afforded to her. Executive shall be expected to maintain a valid driver’s
license and retain appropriate automobile and liability insurance coverage. 
 (j)    Other
Perquisites. The Company will provide Executive with such other perquisites as may be made generally available to others in a similar level of executive position within the Company. 

 

	SECTION 5.	TERMINATION OF EMPLOYMENT 

 (a)    General; Non-Renewal. The Board of Directors shall have the right to terminate Executive’s employment and this Agreement at any time with or without Cause, and Executive shall have the right to terminate her
employment and this Agreement at any time with or without Good Reason; provided that obligations under this Section 5, Section 6 and Section 7 shall survive termination of the Agreement. The Board of Directors may delegate its
powers to terminate the Executive to the persons to whom the Executive reports. In the event the Company elects not to renew the Executive’s employment following the end of the Term with compensation and benefits not materially less
advantageous to the Executive than those set forth in this Agreement, but the Executive is willing and able to enter into a renewal of this Agreement with compensation and benefits not materially less advantageous to the Executive than those set
forth in this Agreement, then upon termination of the Executive’s employment, (i) the Company shall pay the Executive 100% of her then total Annual Base Salary as specified in Section 4(a) (but without regard to any decrease in Base Salary
that gave rise to an event of Good Reason and subject in each case to such withholdings as required by law) payable in periodic payments (consistent with the payroll periods then in effect), subject to Section 7(k), for twelve consecutive
(12) months, (ii) the Company shall make such payments and provide such benefits under any employee benefit plan, program or policy in which Executive was a participant as are explicitly required to be paid to Executive by the terms of any such
benefit plan, program or policy following the Termination Date, and (iii) the Company shall continue until the earlier to occur of the end of the Continuation Period or until such time as the Executive commences a new job, to maintain in effect
for such Executive at the Company’s cost the Executive’s Current Insurance Coverage; provided that if the taxable value of the continued life and accident and disability coverage to Executive during the first six (6) months
following the Termination Date exceeds the annual dollar limit in effect under Code Section 402(g)(1)(B) for the year of such termination, then the Executive shall pay the premiums in excess of such limit for such coverage during such six (6)-month
period and after the end of such six (6)-month period, the Company shall reimburse the Executive for the amount of the premiums paid by the Executive, without interest thereon. If the Company intends to offer to renew the Executive’s employment
following the end of the Term it will present its offer no later than thirty (30) days before the end of the Term. If the offer contains compensation and benefits not 

  
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materially less advantageous to the Executive than those set forth in this Agreement and the Executive does not accept that offer within thirty (30) days following the offer having been
made, then upon the expiration of the then current Term of this Agreement, the Executive shall be deemed to have terminated his or her employment without Good Reason. 

(b)    Termination by Board of Directors without Cause or by Executive for Good Reason. If
(i) the Board of Directors terminates Executive’s employment without Cause, or (ii) Executive resigns for Good Reason, then in either of those circumstances, the Company’s only obligation to Executive under this Agreement (except
as provided in §5(f) hereof) shall be to pay Executive his or her earned but unpaid base salary, if any, up to the date of her termination of employment, plus 100% of his or her current then total Annual Base Salary as specified in Section 4(a)
(but without regard to any decrease in Base Salary that gave rise to an event of Good Reason and subject to such withholdings as required by law) payable in periodic payments (consistent with the payroll periods then in effect) for twelve
(12) consecutive months following the Termination Date, subject to Section 7(k), and to make such payments and provide such benefits under any employee benefit plan, program or policy in which Executive was a participant as are explicitly
required to be paid to Executive by the terms of any such benefit plan, program or policy following the Termination Date. During the Continuation Period the Executive shall also continue to receive, at the Company’s cost, the Current Insurance
Coverage; provided that if the taxable value of the continued life and accident and disability coverage to Executive during the first six (6) months following the Termination Date exceeds the annual dollar limit in effect under Code Section
402(g)(1)(B) for the year of such termination, then the Executive shall pay the premiums in excess of such limit for such coverage during such six (6)-month period and after the end of such six (6)-month period, the Company shall reimburse the
Executive for the amount of the premiums paid by the Executive, without interest thereon. 

(c)    Termination by the Board of Directors for Cause or by Executive without Good Reason. If the
Board of Directors of the Company terminates Executive’s employment for Cause or Executive resigns without Good Reason, the Company’s only obligation to Executive under this Agreement shall be to pay Executive his or her earned but unpaid
base salary, if any, up to the date of Executive’s termination of employment, and the Company shall have no obligation to pay any Earned Bonus or Incentive Compensation with respect to the year during which the Termination Date occurs. The
Company shall only be obligated to make such payments and provide such benefits under any employee benefit plan, program or policy in which Executive was a participant as are explicitly required to be paid to Executive by the terms of any such
benefit plan, program or policy following the Termination Date. 
 (d)    Termination for
Disability. Subject to the definitions and requirements of Section 2 (“Disability”), after six (6) consecutive months of such disability leave of 

  
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absence, Executive’s service may be terminated by Company. In the event Executive is terminated from employment due to Disability, the Company shall: 

(i)    pay Executive his or her Annual Base Salary through the end of the month in which Executive’s employment
terminates as soon as practicable after his or her employment terminates; provided that if such payment exceeds the applicable dollar amount in effect under Code Section 402(g)(1)(B) for the year in which such termination occurs, then the
payment in excess of such applicable dollar amount shall be paid following six (6) months after the Executive’s Termination Date; 

(ii)    pay Executive his or her Earned Bonus, pro rata and if any, for the fiscal year in which such termination
of employment occurs, which amount shall be paid at the same time the Earned Bonus would have been paid had Executive remained in employment; 

(iii)    pay Executive an additional nine (9) months of compensation at the then-Annual Base Salary, which aggregate
amount shall be payable in equal semi-monthly installments following the Termination Date, subject to Section 7(k), and continuing for nine (9) months thereafter; 

(iv)    pay or cause the payment of benefits to which Executive is entitled under the terms of any disability plan of the
Company covering the Executive at the time of such Disability: 
 (v)    pay premiums for COBRA coverage as provided in
Section 5(g); 
 (vi)    make such payments and provide such benefits as otherwise called for under the terms of each
other employee benefit plan, program and policy in which Executive was a participant; provided no payments made under Section 5(d)(ii) or Section 5(d)(iii) shall be taken into account in computing any payments or benefits described in this Section
5(d)(iv); and 

  
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 (vii)    in the event the Executive has any options or restricted shares
(but excluding “performance shares” which shall be governed by the terms set forth in the grant as to such shares) which are not vested on the date of termination for Disability, then pay to the Executive (i) as to any unvested
options, the net value of the excess, if any, of the closing price of the Company’s shares on the NASDAQ for the day on which the termination due to Disability occurs and the exercise price of such unvested options multiplied by the number of
shares subject to options which failed to vest; and (ii) as to any unvested restricted shares, the value of the closing price of the Company’s shares on the NASDAQ for the day on which the termination due to Disability occurs multiplied by
the number of restricted shares, if any, which failed to vest due to such termination of employment for Disability. 
 Notwithstanding the
Executive’s Disability, during the period of Disability leave, Executive shall be paid in full (net of insurance) as if he or she were actively performing services. Executive agrees to simultaneously utilize available leave under the Family and
Medical Leave Act of 1993 during such disability leave of absence. During the period of such Disability leave of absence, the Board of Directors may designate someone to perform Executive’s duties. Executive shall have the right to return to
full-time service so long as he or she is able to resume and faithfully perform Executive’s full-time duties. 

(e)    Death. If Executive’s employment terminates as a result of her death, the Company shall: 

(i)     pay to Executive’s estate Executive’s Annual Base Salary through the end of the month in
which Executive’s employment terminates as soon as practicable after Executive’s death; 

(ii)    pay to Executive’s estate his or her Earned Bonus, when actually determined, for the year in
which Executive’s death occurs; 
 (iii)    make such payments and provide such benefits as
otherwise called for under the terms of each other employee benefit plan, program and policy in which Executive was a participant; provided no payments made under Section 5(e)(ii) shall be taken into account in computing any payments or benefits
described in this Section 5(e)(iii); and 

  
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 (iv)    in the event the Executive has any options or
restricted shares (but excluding “performance shares” which shall be governed by the terms set forth in the grant as to such shares) which are not vested on the date of termination for death, then pay to the Executive’s estate
(i) as to any unvested options, the net value of the excess, if any, of the closing price of the Company’s shares on the NASDAQ for the day on which the death occurred and the exercise price of such unvested options multiplied by the
number of shares subject to options which failed to vest; and (ii) as to any unvested restricted shares, the value of the closing price of the Company’s shares on the NASDAQ for the day on which the death occurred multiplied by the number
of restricted shares, if any, which failed to vest due to such termination of employment for death. 
 Any amounts payable to Executive under
this Agreement which are unpaid at the date of Executive’s death or payable hereunder or otherwise by reason of Executive’s death, shall be paid in accordance with the terms of this Agreement to Executive’s estate; provided
that if there is a specific beneficiary designation in place for any specific amount payable, then payment of such amount shall be made to such beneficiary. 

(f)     Change in Control. If a Change in Control occurs, then for a period beginning on the
occurrence of the Change in Control and ending two years following that occurrence (the “Post Change in Control Period”): 

(i)    In addition to the other events constituting Good Reason under this Agreement, the following shall
also constitute Good Reason: if the Executive is willing and able to continue employment with the Company but the Company exercises its right to either not renew this Agreement, or only offers to renew this Agreement only under conditions or terms
which would constitute a “material change” (as that term is defined in the definition of Good Reason), provided, however, that notice of exercise of the Executive’s termination for Good Reason must be received by the Company
during the Post Change in Control Period and not later than thirty (30) days after the Company exercises its right not to renew this Agreement or to renew the Agreement only on terms which would constitute a “material change”;
and 
 (ii)    In the event of termination of the Executive’s employment with the Company pursuant
to §5(b) hereof either by the Company without Cause, or by the Executive for Good Reason (as such term is expanded to include the circumstances described in §5(f)(i) above), with notice of such termination given within the Post Change in
Control Period, then the Executive shall receive the following (the “CIC Severance Payments”) in a lump sum payable in funds immediately available in Jacksonville, Florida within sixty (60) days following the Termination Date:
an amount equal to 200% of the sum of (A) the total of severance payments (other than continued insurance 

  
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coverage) provided under §5(b) of this agreement (and in lieu thereof), and (B) the Earned Bonus in the year of the Termination Date. For purposes of this subsection (f) Earned
Bonus shall not be prorated and shall be an amount equal to “Target” bonus as defined in the Company’s incentive compensation plan in effect from time to time. 

(g)     Benefit Continuation. Upon termination, Executive shall be provided notice of her right to
continue her group health insurance coverage(s) subject to the terms of the plans and as provided under COBRA. Provided Executive is eligible for and elects COBRA coverage, and has not been terminated from employment for Cause or resigned without
Good Reason, then the Company shall pay the Executive’s COBRA premiums commencing on the date of the Executive’s termination of employment and continuing for the applicable Continuation Period in order to continue Executive’s health
insurance coverage and maintain such coverage in effect; provided that following the end of the COBRA continuation period, if Executive’s health insurance coverage is provided under a health plan that is subject to Code Section 105(h), benefits
payable under such health plan shall comply with the requirements of Treasury Regulation Section 1.409A-3(i)(1)(iv) and, if necessary, the Company shall amend such health plan to comply therewith. 

(h)     Relinquishment of Corporate Positions. Executive shall automatically cease to be an officer
and/or director of the Company and its affiliates as of his or her date of termination of employment. 

(i)     Limitation. Anything in this Agreement to the contrary notwithstanding, Executive’s
entitlement to or payments under any other plan or agreement shall be limited to the extent necessary so that no payment to be made to Executive on account of termination of her employment with the Company will be subject to the excise tax imposed
by Code Section 4999, but only if, by reason of such limitation, Executive’s net after tax benefit shall exceed the net after tax benefit if such reduction were not made. “Net after tax benefit” shall mean (i) the sum of all
payments and benefits that Executive is then entitled to receive under any section of this Agreement or other plan or agreement that would constitute a “parachute payment” within the meaning of Section 280G of the Code, less (ii) the
amount of federal income tax payable with respect to the payments and benefits described in clause (i) above calculated at the maximum marginal income tax rate for each year in which such payments and benefits shall be paid to Executive (based
upon the rate in effect for such year as set forth in the Code at the time of the first payment of the foregoing), less (iii) the amount of excise tax imposed with respect to the payments and benefits described in clause (i) above by
Section 4999 of the Code. Any limitation under this Section 5(i) of Executive’s entitlement to payments shall be made in the manner and in the order directed by Executive. 

  
 14 

	SECTION 6.	COVENANTS BY EXECUTIVE 

 (a)    Company
Property. Upon the termination of Executive’s employment for any reason, Executive shall promptly return all Company Property which had been entrusted or made available to Executive by the Company. “Property” means
all records, files, memoranda, communication, reports, price lists, plans for current or prospective business operations, customer lists, drawings, plans, sketches, keys, codes, computer hardware and software and other property of any kind or
description prepared, used or possessed by Executive during Executive’s employment by the Company (and any duplicates of any such Property) together with any and all information, ideas, concepts, discoveries, processes, intellectual property,
inventions and the like conceived, made, developed or acquired at any time by Executive individually or with others during Executive’s employment which relate to the Company or its products or services or operations. For elimination of doubt,
Company Property does not include Executive’s Rolodex. 
 (b)    Trade Secrets. Executive
agrees that Executive shall hold in a fiduciary capacity for the benefit of the Company and shall not directly or indirectly use or disclose any Trade Secret that Executive may have acquired during the term of Executive’s employment by the
Company for so long as such information remains a Trade Secret. “Trade Secret” means information, including, but not limited to, technical or non-technical data, a formula, a pattern, a
compilation, a program, a device, a method, a technique, a drawing or a process that (1) derives economic value, actual or potential, from not being generally known to, and not being generally readily ascertainable by proper means by, other
persons who can obtain economic value from its disclosure or use and (2) is the subject of reasonable efforts by the Company to maintain its secrecy. This Section 6(b) is intended to provide rights to the Company which are in addition to,
not in lieu of, those rights the Company has under the common law or applicable statutes for the protection of trade secrets. 

(c)    Confidential Information. During the Employment Term and continuing thereafter indefinitely,
Executive shall hold in a fiduciary capacity for the benefit of the Company, and shall not directly or indirectly use or disclose, any Confidential Information that Executive may have acquired (whether or not developed or compiled by Executive and
whether or not Executive is authorized to have access to such information) during the term of, and in the course of, or as a result of Executive’s employment by the Company without the prior written consent of the Board of Directors unless and
except to the extent that such disclosure is (i) made in the ordinary course of Executive’s performance of her duties under this Agreement or (ii) required by any subpoena or other legal process (in which event Executive will give the
Company prompt notice of such subpoena or other legal process in order to permit the Company to seek appropriate protective orders); provided, however, that nothing contained in this Agreement shall limit Executive’s ability to communicate with
any federal or state government agency or otherwise participate in any investigation or proceeding that may be conducted by any such federal or state 

  
 15 

 
government agency, including by providing documents or other Confidential Information, without notice to the Company or the Board of Directors. This Agreement does not limit Executive’s
right to receive an award for any information provided to any federal or state government agency. “Confidential Information” means any secret, confidential or proprietary information possessed by the Company or any of its
subsidiaries or affiliates, including, without limitation, trade secrets, customer or supplier lists, details of client or consultant contracts, current and anticipated customer requirements, pricing policies, price lists, market studies, business
plans, operational methods, marketing plans or strategies, advertising campaigns, information regarding customers or suppliers, computer software programs (including object code and source code), data and documentation data, base technologies,
systems, structures and architectures, inventions and ideas, past current and planned research and development, compilations, devices, methods, techniques, processes, financial information and data, business acquisition plans and new personnel
acquisition plans and the terms and conditions of this Agreement that has not become generally available to the public. Notwithstanding anything to the contrary contained herein, the term “Confidential Information” shall in no event apply
to any information which (x) was generally available to or known by the public prior to the Commencement Date; (y) has become generally available to or known by the public after the Commencement Date other than as the result of a direct or
indirect disclosure by Executive; and (z) was rightfully known by Executive prior to the Commencement Date. 

(d)    Remedies. Executive recognizes that his or her duties will entail the receipt of Trade
Secrets and Confidential Information as defined in this Section 6. Those Trade Secrets and Confidential Information have been developed by the Company at substantial cost and constitute valuable and unique property of the Company. Accordingly,
the Executive acknowledges that protection of Trade Secrets and Confidential Information is a legitimate business interest. If the Executive shall breach the covenants contained in this Section 6, the Company shall have no further obligation to
make any payment to the Executive pursuant to this Agreement, other than any accrued wages earned and owed to Executive at the time of termination and/or Severance Payments due prior to the breach, and may recover from the Executive all such damages
as it may be entitled to at law or in equity. In addition, the Executive acknowledges that any such breach is likely to result in irreparable harm to the Company. The Company shall be entitled to seek specific performance of the covenants in this
Section 6, including entry of a temporary restraining order in state or federal court, preliminary and permanent injunctive relief against activities in violation of this Section 6, or both, or other appropriate judicial remedy, writ or
order, in addition to any damages and legal expenses which the Company may be legally entitled to recover. Executive acknowledges and agrees that the covenants in this Section 6 shall be construed as agreements independent of any other
provision of this Agreement or any other agreement between the Company and Executive, and that the existence of any claim or cause of action by Executive against the Company, whether predicated upon this Agreement or any other agreement, shall not
constitute a defense to the enforcement by the Company of such covenants. 

  
 16 

(e)    Non-Solicitation. During the Employment Term and for
a period of two years hereafter (such period is referred to as the “No Recruit Period”), the Executive will not solicit or attempt to solicit, either directly or indirectly, any person that he knows or should reasonably know to be an
employee of the Company, whether any such employees are now or hereafter through the No Recruit Period so employed or engaged by the Company, to terminate or alter their employment with the Company. The foregoing is not intended to limit any legal
rights or remedies that any employee of the Company may have under common law with regard to any interference by Executive at any time with the contractual relationship the Company may have with any of its employees. 

(f)    Reasonable and Continuing Obligations. Executive agrees that Executive’s obligations
under this Section 6 are obligations which will continue beyond the date Executive’s employment terminates and that such obligations are reasonable, fair and equitable in scope. The terms and duration are necessary to protect the
Company’s legitimate business interests and are a material inducement to the Company to enter into this Agreement. Executive further acknowledges that the consideration for this Section 6 is her employment or continued employment.
Executive will not be paid any additional compensation during this Restricted Period for application or enforcement of the restrictive covenants contained in this Section 6. 

(g)    Work Product. The term “Work Product” includes any and all information, programs,
concepts, processes, discoveries, improvements, formulas, know-how and inventions, in any form whatsoever, relating to the business or activities of the Company, or resulting from or suggested by any work
developed by the Executive in connection with the Company, or by the Executive at the Company’s request. Executive acknowledges that all Work Product developed during the Term is property of the Company and accordingly, Executive does hereby
irrevocably assign all Work Product developed by the Executive to the Company and agrees: (a) to assign to the Company, free from any obligation of the Company to the Executive, all of the Executive’s right, title and interest in and to
Work Product conceived, discovered, researched, or developed by the Executive either solely or jointly with others during the term of this Agreement; and (b) to disclose to the Company promptly and in writing such Work Product upon the
Executive’s acquisition thereof. 
 (h)    Cooperation. During and subsequent to termination
of the employment of the Executive, the Executive will cooperate with Company and furnish any and all complete and truthful information, testimony or affidavits in connection with any matter that arose during the Executive’s employment, that in
any way relates to the business or operations of the Company or any of its subsidiary corporations, 

  
 17 

 
divisions or affiliates, or of which the Executive may have any knowledge or involvement; and will consult with and provide information to Company and its representatives concerning such matters.
Subsequent to the termination of the employment of the Executive, the parties will make their best efforts to have such cooperation performed at reasonable times and places and in a manner as not to unreasonably interfere with any other employment
in which Executive may then be engaged. Nothing in this Agreement shall be construed or interpreted as requiring the Executive to provide any testimony, sworn statement or declaration that is not complete and truthful. If Company requires the
Executive to travel outside the metropolitan area in the United States where the Executive then resides to provide any testimony or otherwise provide any such assistance, then Company will reimburse the Executive for any reasonable, ordinary and
necessary travel and lodging expenses incurred by Executive to do so provided the Executive submits all documentation required under Company’s standard travel expense reimbursement policies and as otherwise may be required to satisfy any
requirements under applicable tax laws for Company to deduct those expenses. Nothing in this Agreement shall be construed or interpreted as requiring the Executive to provide any testimony or affidavit that is not complete and truthful. 

 

	SECTION 7.	MISCELLANEOUS 

 (a)    Notices. Notices and
all other communications shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by United States registered or certified mail. Notices to the Company shall be sent to: 

STEIN MART, INC 
 Attention:
Mitch Legler, General Counsel 
 1200 Riverplace Boulevard, 10th Floor 

Jacksonville, FL 32207 

Facsimile: (904) 346-1297 

Notices and communications to Executive shall be sent to the address Executive most recently provided to the Company. 

(b)    No Waiver. No failure by either the Company or Executive at any time to give notice of any
breach by the other of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of any provisions or conditions of this Agreement. 

(c)    Governing Law. This Agreement shall be governed by Florida law without reference to the
choice of law principles thereof. 

  
 18 

 (d)    Assignment. This Agreement shall be binding
upon and inure to the benefit of the Company and any successor in interest to the Company. The Company may assign this Agreement to any affiliate or successor that acquires all or substantially all of the assets and business of the Company or a
majority of the voting interests of the Company. The Company will require any successor (whether direct or indirect, by operation of law, by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of
Company) to expressly assume and agree to perform this Agreement in the same manner and to the same extent that Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean
Company as defined above and, unless the context otherwise requires, any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. Executive’s rights and
obligations under this Agreement are personal and shall not be assigned or transferred. 

(e)    Other Agreements. This Agreement replaces and merges any and all previous agreements and
understandings regarding all the terms and conditions of Executive’s employment relationship with the Company, and this Agreement constitutes the entire agreement between the Company and Executive with respect to such terms and conditions. 

(f)    Amendment. No amendment to this Agreement shall be effective unless it is in writing and
signed by the Company and by Executive. 
 (g)    Invalidity and Severability. If any part of this
Agreement is held by a court of competent jurisdiction to be invalid or otherwise unenforceable, the remaining part shall be unaffected and shall continue in full force and effect, and the invalid or otherwise unenforceable part shall be deemed not
to be part of this Agreement. 
 (h)    Litigation. In the event that either party to this
Agreement institutes litigation against the other party to enforce her or its respective rights under this Agreement, each party shall pay its own costs and expenses incurred in connection with such litigation. As a material part of the
consideration for this Agreement, BOTH PARTIES HERETO WAIVE ANY RIGHT TO A TRIAL BY A JURY in the event of any litigation arising from this Agreement. All legal actions arising out of or connected with this Agreement must be instituted solely in the
Circuit Court of Duval County, Florida, or in the Federal District Court for the Middle District of Florida, Jacksonville Division, and all parties hereto do hereby agree to submit to the exclusive personal jurisdiction of such courts. Each of the
parties hereby expressly and irrevocably submits to the jurisdiction of such courts for the purposes of any such action and expressly and irrevocably waives, to the fullest extent permitted by law, any objection which it may have or hereafter may
have to the laying of venue of any such action brought in any such court and any claim that any such action has been brought in an inconvenient forum. 

  
 19 

 (i)    Counterparts. This Agreement may be executed in
counterparts each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

(j)    Offer Letter. The terms of the Offer Letter dated December 22, 2016 are incorporated
herein by reference. In the event of a conflict between the terms of the Offer Letter and this Agreement, the terms of this Agreement will control. 

(k)        Section 409A. The intent of the parties is that payments and benefits
under this Agreement comply with, or be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and,
accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered consistent with such intent. 
 For
purposes of Code Section 409A, Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies
a payment period with reference to a number of days (e.g., “payment shall be made within sixty calendar days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of
the Company. In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement that is considered non-qualified deferred compensation. 

In addition, notwithstanding anything in this Agreement to the contrary, if at the time of Executive’s “separation from
service”, the Company determines that Executive is a “specified employee” (such terms within the meaning of Code Section 409A(a)), then to the extent any payment or benefit that Executive becomes entitled to under this Agreement on
account of her separation from service would be considered deferred compensation otherwise subject to the twenty percent (20%) additional tax imposed pursuant to Code Section 409A, such payment shall not be payable and such benefit shall not be
provided until the date that is the earlier of (A) six (6) months and one day after Executive’s separation from service, or (B) Executive’s death. If any such delayed cash payment is otherwise payable on an installment basis, the
first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this
provision, and the balance of the installments shall be payable in accordance with their original schedule. 
 With regard to any provision
herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or
in-kind benefits shall not be subject to liquidation or exchange for another benefit; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits,
provided during any taxable year shall not affect the expenses eligible for 

  
 20 

 
reimbursement, or in-kind benefits to be provided, in any other taxable year; provided, that this clause (ii) shall not be violated with regard to
expenses reimbursed under any arrangement covered by Internal Revenue Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect; and (iii) such payments shall be made on or before
the last day of the taxable year following the taxable year in which the expense was incurred. 
 [Signature page follows] 

IN WITNESS WHEREOF, the Company and Executive have executed this Agreement effective as of the Effective Date. 

 

									
	STEIN MART, INC.	 		 		 	EXECUTIVE
					
	By:	 	 /s/ D. Hunt Hawkins
	 		 		 	 /s/ MaryAnne Morin

	Name:	 	D. Hunt Hawkins	 		 		 	MaryAnne Morin
	Title:	 	CEO	 		 		 	
	Date:	 	January 3, 2017	 		 		 	Date: January 15, 2017

  
 21 

 SCHEDULE A 

BENEFITS 
  

	1.	Retirement Plan/Life Insurance/AD&D 

 The Executive shall be entitled to participate
in all retirement plans and will be entitled to life insurance and AD&D benefits which other senior executives of the Company or affiliates of the Company are eligible. 
  

	2.	Long-Term Disability 

 The Executive shall be entitled to participate in all Long-Term
and Life Time Disability plans which other senior executives of the Company or affiliates of the Company are eligible. 
  

	3.	Medical/Dental Benefits 

 The Executive shall be entitled to medical/dental benefits
which other senior executives of the Company or affiliates of the Company are eligible. 

  
 A-1EX-4.2

 Exhibit 4.2 

REGISTRATION RIGHTS AGREEMENT 

This REGISTRATION RIGHTS AGREEMENT, dated as of January 27, 2017 (this “Agreement”), is by and among Approach Resources
Inc., a Delaware corporation (the “Company”), and each of Wilks Brothers, LLC and SDW Investments, LLC (collectively, the “Holders”, and each, a “Holder”).  
 RECITALS 

WHEREAS, on January 27, 2017, the Holders acquired the number of shares of common stock, par value $0.01 per share, of the Company
(the “Company Common Stock”) set forth on Schedule A pursuant to the Exchange Agreement, dated November 2, 2016, by and between the Company and the Holders (the “Exchange Agreement”); and 

WHEREAS, resales by a Holder of the Company Common Stock may be required to be registered under the Securities Act and applicable state
securities laws, depending upon the status of such Holder or the intended method of distribution of the Company Common Stock. 
 NOW,
THEREFORE, in consideration of the premises, mutual covenants and agreements hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 ARTICLE I—REGISTRATION RIGHTS 

1.1 Demand Registration. 

(a) From and after the one (1) year anniversary following the Closing, and subject to Section 1.1(b), Section 1.1(c) and
Section 2.3, upon written request from a Holder requesting that the Company effect the registration under the Securities Act of all or part of the Registrable Securities held by such Holder, which notice may be delivered at
any time after such one (1) year anniversary and which notice shall specify the intended method or methods of disposition of such Registrable Securities (“Registration Request Notice”), unless such Registrable Securities are
included in a currently effective Registration Statement permitting the resale of such Registrable Securities in the manner contemplated by the Registration Request Notice, the Company will use its commercially reasonable efforts to file the
appropriate Registration Statement under the Securities Act with the SEC as promptly as reasonably practicable after receipt of the Registration Request Notice and, as promptly as reasonably practicable following such Registration Request Notice,
cause such Registration Statement to be declared effective by the SEC and to permit the disposition of such Registrable Securities in accordance with the intended method or methods of disposition stated in such Registration Request Notice. The
Company shall not be required to maintain the effectiveness of such Registration Statement beyond the earlier to occur of (i) one hundred twenty (120) days after the effective date thereof and (ii) consummation of the distribution by
Holder of the Registrable Securities included in such Registration Statement (such period, the “Effectiveness Period”). 

(b) Notwithstanding Section 1.1(a), if the Company previously shall have caused a Registration Statement to be declared effective by the
SEC with respect to the Registrable Securities, the Company shall not be required to cause a subsequent Registration Statement to be declared effective by the SEC pursuant to this Section 1.1 until a period of one hundred
twenty (120) days shall have elapsed from the effective date of the most recent such previous registration. 

 (c) Notwithstanding Section 1.1(a), the Company shall not be required to effect
(i) more than two (2) registrations pursuant to this Section 1.1 in any twelve (12) consecutive month period or (ii) a registration of Registrable Securities, the fair market value of which on the date
of receipt by the Company of the Registration Request Notice is less than twenty million dollars ($20,000,000). 
 1.2 Piggyback
Registration. 
 (a) If at any time the Company proposes to register any of its equity securities (other than pursuant to an Excluded
Registration) under the Securities Act for sale to the public (whether for the account of the Company or the account of any securityholder of the Company) and the form of Registration Statement to be used permits the registration of Registrable
Securities, the Company shall give prompt written notice to each Holder (which notice shall be given not less than fifteen (15) days prior to the anticipated filing date), which notice shall offer each Holder the opportunity to include any or
all of its Registrable Securities in such Registration Statement, subject to the limitations contained in Section 1.2(b) hereof. If a Holder (in such capacity, a “Participating Holder”) desires to have its Registrable
Securities included in such Registration Statement, it shall so advise the Company in writing (stating the number of shares desired to be registered) within ten (10) days after the date of such notice from the Company. Each Holder shall have
the right to withdraw such Holder’s request for inclusion of Holder’s Registrable Securities in any registration statement pursuant to this Section 1.2(a) by giving written notice to the Company of such withdrawal. Subject to
Section 1.2(b) below, the Company shall use commercially reasonable efforts to include in such Registration Statement all such Registrable Securities so requested to be included therein; provided, however, that the Company may
at any time and in its sole and absolute discretion withdraw or cease proceeding with any such registration if it shall at the same time withdraw or cease proceeding with the registration of all other equity securities originally proposed to be
registered. The Company shall not be required to maintain the effectiveness of such Registration Statement beyond the Effectiveness Period. 

(b) If a nationally recognized independent investment banking firm selected by the Company to act as lead underwriter in connection with the
public offering of securities under this Section 1.2 advises the Company that the inclusion of the Registrable Securities requested to be included in the Registration Statement pursuant to Section 1.2(a) will
materially and adversely affect the price or success of such offering (a “Material Adverse Effect”), the Company will be obligated to include in the Registration Statement (after registering all such shares for its own account), as
to each Participating Holder, only a portion of the shares such Participating Holder has requested be registered equal to the product of: (i) the ratio which such Participating Holder’s requested shares bears to the total number of shares
requested to be included in such Registration Statement subject to Section 1.2(a) by all Persons (including the Participating Holder) who have requested (pursuant to contractual registration rights) that their shares be included in such
Registration Statement; and (ii) the maximum number of Registrable Securities that such lead underwriter advises may be sold in an offering covered by the Registration Statement without a Material Adverse Effect. If, as a result of the
provisions of this Section 1.2(b), the Participating Holder shall not be entitled to include all Registrable Securities in a registration that the Participating Holder has requested to be so included, the Participating Holder may withdraw
such its request to include Registrable Securities in such Registration Statement by giving written notice to the Company of such withdrawal. 

1.3 Expenses. The Company shall bear all Registration Expenses in connection with any Registration Statement pursuant to this
Article I, whether or not such Registration Statement becomes effective; provided, however, that if a Holder requests a registration pursuant to Section 1.1 and subsequently withdraws its request, then
such Holder shall either pay all Registration Expenses incurred in connection with such registration or such registration will count as a registration for purposes of Section 1.1(c) and such Holder shall not have the right to request another
registration pursuant to Section 1.1 during the subsequent ninety (90) days, unless the withdrawal of such request is the result of facts or circumstances relating to the Company or the Company Common Stock that arise
after the date on which such request was made and would have a material adverse effect on the offering of the Registrable Securities. 

  
 2 

 1.4 Company Purchase Option. Notwithstanding the terms of this Agreement, if at any
time a Holder requests any Registrable Securities be included in a registration statement pursuant to this Agreement and at such time securities of the same class or series as the Registrable Securities are traded on a national securities exchange
or trading system or any other recognized quotation system which regularly provides quotes on such securities (a “Trading Forum”), the Company shall have the right and option, in its sole discretion, to, in lieu of including such
Registrable Securities in such Registration Statement, purchase all or any portion of such Registrable Securities requested to be included in such Registration Statement at the closing or last sales price of such security reported by such Trading
Forum on the date of Holder’s request for inclusion of such Registrable Securities in such Registration Statement is received by the Company, or, if there is no such reported quote for such date on any Trading Forum, the last reported closing
or sales price, as applicable, of such security by a Trading Forum. 
 ARTICLE II—PROCEDURES 

2.1 Underwriting. 

(a) For so long as a Holder holds Registrable Securities, such Holder may request by giving written notice (an “Underwriting
Request”) to the Company that an offering permitted under Section 1.1(a) shall be in the form of an underwritten offering (each, an “Underwritten Offering”); provided, however, that in the case of each
such Underwritten Offering, such Holder will be entitled to make such demand only if the proceeds from the sale of Registrable Securities in the offering (before the deduction of underwriting discounts) is reasonably expected to exceed, in the
aggregate, twenty million dollars ($20,000,000); provided, further that the Company shall not be obligated to effect more than two (2) Underwritten Offerings during any twelve (12) consecutive month period and shall not be
obligated to effect an Underwritten Offering within one hundred twenty (120) days after the pricing of a previous Underwritten Offering. 

(b) All Underwriting Requests shall specify the approximate number of Registrable Securities to be sold in the Underwritten Offering and the
expected price range (net of underwriting discounts and commissions) of such Underwritten Offering. 
 (c) With respect to any such
Underwritten Offering, the Holder making the request shall select an investment banking firm of international standing to be the managing underwriter for the offering, which firm shall be reasonably acceptable to the Company. The Company will enter
into and perform its obligations under an underwriting agreement with the underwriters for such Underwritten Offering, such agreement to contain such representations and warranties by the Company and such other terms and provisions as are
customarily contained in underwriting agreements with respect to secondary distributions, which may include, without limitation, indemnities and contribution to the effect and to the extent provided in Article III and the provision of
opinions of counsel and accountants’ letters as are customarily delivered by issuers to underwriters in secondary underwritten public offerings of securities. The Holders shall be a party to any such underwriting agreement and the
representations and warranties by, and the other agreements on the part of, the Company to and for the benefit of such underwriters shall also be made to and for the benefit of such Holders of such securities, but only to the extent such
representations and warranties and other agreements are customarily made by issuers to selling stockholders in secondary underwritten public offerings, and the Holders shall be required to make representations or warranties to, and other agreements
with, the Company and the underwriters in 

  
 3 

 
connection with such underwriting agreement as are customarily made by selling stockholders in secondary underwritten public offerings; provided, however, that the Holders shall not
be required to make any representations or warranties to the Company or the underwriters regarding such Holder’s knowledge about the Company or to undertake any indemnification obligations to the Company with respect thereto, except as
otherwise provided in Article III), or to the underwriters with respect thereto, except to the extent of the indemnification being given to the Company and its controlling Persons in Article III. 

(d) If (i) the managing underwriter for such Underwritten Offering advises the Company or (ii) the Company concludes, after
consulting with its independent financial advisor (which shall be an investment banking firm of international standing), in either case, that in its opinion the number of Registrable Securities requested to be included in such Underwritten Offering
exceeds the number of Registrable Securities that can be sold in an orderly manner in such offering within a price range acceptable to the Holders, the Company shall include in such Underwritten Offering the number of each Holder’s Registrable
Securities which in the opinion of such managing underwriter or the Company’s independent financial advisor, as applicable, can be sold in an orderly manner within the price range of such offering. 

(e) Unless the managing underwriter otherwise agrees, each Holder agrees not to effect any public sale or private offer or distribution of any
shares of Company Common Stock or any other issue being registered or a similar security of the Company, or any securities convertible into or exchangeable or exercisable for such securities, during the fourteen (14) days prior to the
anticipated effectiveness under the Securities Act of any underwritten registration of any such securities (or with respect to an underwritten takedown of any such securities under a shelf registration, prior to the pricing of such offer) and during
such time period (not to exceed one hundred eighty (180) days) after the effectiveness under the Securities Act of any underwritten registration (or, with respect to an underwritten offering pursuant to a shelf registration statement, after the
pricing of such offering) as the Company and the managing underwriter may agree (except as part of such underwritten registration or offering, as applicable). 

2.2 Registration Procedures. If and whenever a Holder has requested that any Registrable Securities be registered pursuant to
this Agreement under Article I, and subject to the limitations set forth in this Agreement, the Company will use its commercially reasonable efforts to effect the registration and the sale of such Registrable Securities in accordance with the
intended method of disposition thereof, and pursuant thereto the Company will: 
 (a) if the Registration Statement is not automatically
effective upon filing, use commercially reasonable efforts to cause such Registration Statement to become effective; 
 (b) notify such
Holder, promptly after the Company receives notice thereof, of the time when such Registration Statement has been declared effective or a supplement to any Prospectus forming a part of such Registration Statement has been filed; 

(c) after the Registration Statement becomes effective, notify such Holder of any request by the SEC that the Company amend or supplement such
Registration Statement or Prospectus; 
 (d) prepare and file with the SEC such amendments and supplements to the Registration Statement and
any Prospectus used in connection therewith as may be reasonably necessary to keep the Registration Statement effective and to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by
the Registration Statement for the period required to effect the distribution of the Registrable Securities as set forth in Article I hereof; 

  
 4 

 (e) to the extent necessary to properly sell any Registrable Securities, furnish to such Holder
such numbers of copies of a Prospectus, including a preliminary Prospectus, as required by the Securities Act, and such other documents as such Holder may reasonably request in order to facilitate its disposition of its Registrable Securities; 

(f) use its commercially reasonable efforts to register and qualify the Registrable Securities under such other securities or blue sky Laws of
such jurisdictions as shall be reasonably requested by such Holder; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business in or to file a general
consent to service of process in any jurisdiction, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act, or subject itself to taxation in any such jurisdiction, unless the Company
is already subject to taxation in such jurisdiction; 
 (g) use its commercially reasonable efforts to cause all such Registrable Securities
to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar equity securities issued by the Company are then listed; 

(h) provide a transfer agent and registrar for the Registrable Securities and provide a CUSIP number for all such Registrable Securities, in
each case not later than the effective date of the Registration Statement; 
 (i) use its commercially reasonable efforts to furnish, on the
date that shares of Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of
such registration, in form and substance as is customarily given to underwriters by the Company in an underwritten public offering, addressed to the underwriters and (ii) a letter dated as of such date, from the independent public accountants
of the Company, in form and substance as is customarily given by independent public accountants to underwriters in an underwritten public offering, addressed to the underwriters; 

(j) if requested by such Holder, cooperate with such Holder and the managing underwriter (if any) to facilitate the timely preparation and
delivery of certificates (which shall not bear any restrictive legends unless required under applicable Law) representing securities sold under the Registration Statement, and enable such securities to be in such denominations and registered in such
names as such Holder or the managing underwriter (if any) may request and keep available and make available to the Company’s transfer agent prior to the effectiveness of such Registration Statement a supply of such certificates; 

(k) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in form and
substance as is customarily given by the Company to underwriters in an underwritten public offering, with the underwriter(s) of such offering; 

(l) upon execution of confidentiality agreements in form and substance satisfactory to the Company, promptly make available for inspection by
such Holder, any underwriter(s) participating in any disposition pursuant to such Registration Statement, and any attorney or accountant or other agent retained by any such underwriter or selected by such Holder, all financial and other records,
pertinent corporate documents, and properties of the Company (collectively, “Records”), and use commercially reasonable efforts to cause the Company’s officers, directors, employees, and independent accountants to supply all
information reasonably requested by such Holder, an underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such Registration Statement and to conduct appropriate due
diligence in connection therewith; provided, Records that the 

  
 5 

 
Company determines, in good faith, to be confidential and that it notifies such Holder are confidential shall not be disclosed by such Holder unless the release of such Records is ordered
pursuant to a subpoena or other order from a court of competent jurisdiction or is otherwise required by applicable Law. Such Holder agrees that information obtained by it as a result of such inspections shall be deemed confidential and shall not be
used by it or its Affiliates (other than with respect to such Holder’s due diligence) unless and until such information is made generally available to the public, and further agrees that, upon learning that disclosure of such Records is sought
in a court of competent jurisdiction, it shall give notice to the Company and allow the Company to undertake appropriate action to prevent disclosure of the Records deemed confidential; 

(m) in the event of the issuance of any stop order suspending the effectiveness of such Registration Statement, or of any order suspending or
preventing the use of any related Prospectus or suspending the qualification of any Registrable Securities included in such Registration Statement for sale in any jurisdiction, use its commercially reasonable efforts to obtain promptly the
withdrawal of such order; 
 (n) promptly notify such Holder at any time when a Prospectus relating thereto is required to be delivered under
the Securities Act of the happening of any event as a result of which the Prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made, and at the request of such Holder promptly prepare and furnish to such Holder a reasonable number of copies of a supplement
to or an amendment of such Prospectus, or a revised Prospectus, as may be necessary so that, as thereafter delivered to the purchasers of such securities, such Prospectus shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made (following receipt of any supplement or amendment to any Prospectus, such Holder shall
deliver such amended, supplemental or revised Prospectus in connection with any offers or sales of Registrable Securities, and shall not deliver or use any Prospectus not so supplemented, amended or revised); and 

(o) take all such other actions as are reasonably necessary in order to facilitate the disposition of such Registrable Securities. 

2.3 Holder Obligations. Subject to Section 2.1(a), a Holder may not participate in any registration hereunder unless such
Holder: (i) agrees to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements approved by the Company; and (ii) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents, each in customary form, reasonably required under the terms of such underwriting arrangements; provided, however, that such Holder shall not be required to make any representations or
warranties in connection with any such registration other than representations and warranties as to (A) such Holder’s ownership of its Registrable Securities to be sold or transferred free and clear of all liens, claims and encumbrances;
(B) such Holder’s power and authority to effect such transfer; and (C) such matters pertaining to compliance with securities Laws as may be reasonably requested; provided, further, that such liability will be limited, to
the net amount received by such Holder from the sale of its Registrable Securities pursuant to such registration. 

  
 6 

 2.4 Blackout Periods. 

(a) (i) At any time when a Registration Statement effected pursuant to Article I relating to Registrable Securities is effective, upon
written notice from the Company to a Holder that the board of directors of the Company (or any duly appointed committee thereof) has determined in good faith, with the advice of counsel, that such Holder’s sale of Registrable Securities
pursuant to the Registration Statement would be reasonably likely to require disclosure of material non-public information the disclosure of which would not otherwise be required to be disclosed (provided that
the Company shall not be required to disclose to such Holder any such material non-public information) and would be reasonably likely to have a material adverse effect on the Company or that such sale
otherwise might not be in the best interests of the Company’s stockholders (an “Information Blackout”), such Holder shall suspend sales of Registrable Securities pursuant to such Registration Statement and (ii) if, while a
Registration Request Notice or other registration request is pending pursuant to Article I, the board of directors of the Company (or any duly appointed committee thereof) determines that an Information Blackout is required, or that any such
filing or the offering of any Registrable Securities would be reasonably likely to adversely affect or delay any proposed financing, offer or sale of securities, acquisition, disposition, corporate reorganization or other material transaction
involving the Company, the Company shall deliver to such Holder a certificate to such effect signed by its Chief Executive Officer or Chief Financial Officer, and the Company shall not be required to file a Registration Statement, Prospectus or any
amendment or any supplement thereto pursuant to Articles I (a “Registration Delay”); provided, that any such suspension or postponement under (i) and (ii) of this Section 2.4(a) shall only continue until
the earliest of: 
 (1) the date upon which such material information is disclosed to the public or ceases to be material; 

(2) ten (10) days after the Company’s delivery of such written notice to such Holder; 

(3) in the case of clause (i) above, such time as the Company notifies such Holder that sales pursuant to such Registration Statement may
be resumed; and 
 (4) in the case of clause (ii) above, the date upon which the financing, offer or sale of securities, acquisition,
corporate reorganization or other material transaction referred to therein concludes or is abandoned. 
 The number of days from such suspension of sales by
a Holder until the day when such sales may be resumed under clause (1), (2) or (3) hereof, or from the date of a notice of a Registration Delay until the date such affected registration process resumes under clause (1), (2) or (4) hereof,
shall be called a “Blackout Period”. In no event may the Company deliver more than two (2) notices, collectively, of an Information Blackout and/or a Registration Delay in any twelve (12) consecutive month period, and the
aggregate number of days in which any Blackout Periods may be in effect in any twelve (12) consecutive month period shall not exceed one hundred twenty (120) days. 

(b) Any delivery by the Company of a written notice of a Registration Delay following a registration request by a Holder pursuant to
Section 1.1, and before the effectiveness of the related Registration Statement, or of a written notice of an Information Blackout during the sixty (60) days immediately following effectiveness of any Registration
Statement effected pursuant to Article I, shall give such Holder the right, by written notice to the Company within twenty (20) Business Days after the end of such Blackout Period, to cancel such registration and obtain one additional
registration right during such calendar year under Article I. 
 (c) The Company shall not effect any public offering of its
securities during any Blackout Period other than in connection with such proposed transaction described in Section 2.4(a). 

  
 7 

 2.5 Transfer of Registration Rights. The registration rights of a Holder under this
Agreement with respect to any Registrable Securities may be transferred or assigned to (i) an Affiliate of such Holder, or (ii) if the Holder is an Entity, a partner, stockholder or member
thereof; provided, however, that (a) such Holder shall give the Company written notice prior to the time of such transfer stating the name and address of the transferee and identifying the securities with
respect to which the rights under this Agreement are being transferred; (b) such transferee shall agree in writing, in form and substance satisfactory to the Company, to be bound as a Holder by the provisions of this Agreement; (c) such
transferee is not a direct competitor of the Company; and (d) immediately following such transfer the further disposition of such securities by such transferee shall be restricted to the extent set forth under applicable Law. 

2.6 Current Public Information. With a view to making available to each Holder the benefits of Rule 144 and Rule 144A
promulgated under the Securities Act and other rules and regulations of the SEC that may at any time permit each Holder to sell securities of the Company to the public without registration, the Company covenants that it will (i) use its
commercially reasonable efforts to file in a timely manner all reports and other documents required, if any, to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted thereunder; and (ii) make
available information necessary to comply with Rule 144 and Rule 144A, if available with respect to resales of the Registrable Securities under the Securities Act, at all times, all to the extent required from time to time to enable each Holder to
sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (x) Rule 144 and Rule 144A promulgated under the Securities Act (if available with respect to resales of the
Registrable Securities), as such rules may be amended from time to time or (y) any other rules or regulations now existing or hereafter adopted by the SEC. 

ARTICLE III—INDEMNIFICATION 

3.1 Indemnification. 

(a) The Company agrees to indemnify and reimburse, to the fullest extent permitted by Law, each Holder, with respect to the sale of Registrable
Securities pursuant hereto, and each of its employees, advisors, agents, representatives, partners, officers, and directors and each Person who controls such Holder (within the meaning of the Securities Act or the Exchange Act) and any agent or
investment advisor thereof (collectively, the “Seller Affiliates”): (i) against any and all losses, claims, damages, liabilities and expenses, joint or several (including, without limitation, attorneys’ fees and disbursements
except as limited by Section 3.1(c)) based upon, arising out of, related to or resulting from any untrue or alleged untrue statement of a material fact contained in any Registration Statement or Prospectus or any amendment
thereof or supplement thereto, or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) against any and all losses, liabilities, claims, damages
and expenses whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation or investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon,
arising out of, related to or resulting from any such untrue statement or omission or alleged untrue statement or omission; and (iii) against any and all costs and expenses (including reasonable fees and disbursements of counsel) as may be
reasonably incurred in investigating, preparing or defending against any litigation, investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon, arising out of, related to or resulting
from any such untrue statement or omission or alleged untrue statement or omission, or such violation of the Securities Act or Exchange Act, to the extent that any such expense or cost is not paid under subparagraph (i) or (ii) above; except
insofar as any such statements are made in reliance upon information furnished to the Company by a Holder or any Seller Affiliate for use therein or arise from a Holder’s or any Seller Affiliate’s failure to deliver a copy of the
Registration Statement or Prospectus or any amendments or supplements thereto after the Company has furnished such Holder or its Seller Affiliate with a sufficient number of copies of the same, in which case the Company will not so
indemnify and reimburse such Holder or its Seller Affiliates. The reimbursements required by this Section 3.1(a) will be made by periodic payments during the course of the investigation or defense, as and when bills are received or
expenses incurred. 

  
 8 

 (b) In connection with any Registration Statement in which a Holder is participating as a seller
of Registrable Securities, such Holder will furnish to the Company such information and affidavits as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus and, to the fullest extent permitted by
Law, such Holder will indemnify the Company and its directors and officers and each Person who controls the Company (within the meaning of the Securities Act or the Exchange Act) against any and all losses, claims, damages, liabilities and expenses
(including, without limitation, reasonable attorneys’ fees and disbursements except as limited by Section 3.1(c)) resulting from any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement,
Prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue
statement or alleged untrue statement or omission or alleged omission is contained in any information or affidavit so furnished by such Holder or any of its Seller Affiliates specifically for inclusion in the Registration Statement; provided
that such liability will be limited to the net amount received by such Holder from the sale of Registrable Securities pursuant to such Registration Statement; provided, however, that such Holder shall not be liable in any such case to
the extent that prior to the filing of any such Registration Statement or Prospectus or amendment thereof or supplement thereto, such Holder has furnished to the Company information expressly for use in such Registration Statement or Prospectus or
any amendment thereof or supplement thereto which corrected or made not misleading information previously furnished to the Company. 
 (c)
Any Person entitled to indemnification hereunder will: (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give such notice shall not limit
the rights of such Person); and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to
assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided, however, that any person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate
in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such person unless (A) the indemnifying party has agreed to pay such fees or expenses or (B) the indemnifying party shall have failed to
assume the defense of such claim and employ counsel reasonably satisfactory to such person. If such defense is not assumed by the indemnifying party as permitted hereunder, the indemnifying party will not be subject to any liability for any
settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld, conditioned or delayed). If such defense is assumed by the indemnifying party pursuant to the provisions hereof, such indemnifying
party shall not settle or otherwise compromise the applicable claim unless (i) such settlement or compromise contains a full and unconditional release of the indemnified party or (ii) the indemnified party otherwise consents in writing
(which consent will not be unreasonably withheld, conditioned or delayed). An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for
all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, a conflict of interest may exist between such indemnified party and any other of such indemnified parties with
respect to such claim, in which event the indemnifying party shall be obligated to pay the reasonable fees and disbursements of such additional counsel or counsels. 

  
 9 

 (d) Each party hereto agrees that, if for any reason the indemnification provisions contemplated
by Section 3.1(a) or Section 3.1(b) are unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses (or actions in respect thereof) referred to therein, then
each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, liabilities or expenses (or actions in respect thereof) in such proportion as is appropriate to reflect the relative
fault of the indemnifying party and the indemnified party in connection with the actions which resulted in the losses, claims, damages, liabilities or expenses as well as any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information
supplied by such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 3.1(d) were determined by pro rata allocation (even if a Holder or any underwriters or all of them were treated as one entity for such purpose) or by any other method of allocation which
does not take account of the equitable considerations referred to in this Section 3.1(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities or expenses (or actions in respect thereof)
referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or, except as provided in Section 3.1(c), defending any such action or claim.
Notwithstanding the provisions of this Section 3.1(d), no Holder shall be required to contribute an amount greater than the dollar amount by which the net proceeds received by such Holder with respect to the sale of any Registrable Securities
exceeds the amount of damages which such Holder has otherwise been required to pay by reason of any and all untrue or alleged untrue statements of material fact or omissions or alleged omissions of material fact made in any Registration Statement or
Prospectus or any amendment thereof or supplement thereto related to such sale of Registrable Securities. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. Each Holder’s obligations in this Section 3.1(d) to contribute shall be several in proportion to the amount of Registrable Securities registered by them and not
joint. 
 If indemnification is available under this Section 3.1, the indemnifying parties shall indemnify each
indemnified party to the full extent provided in Section 3.1(a) and Section 3.1(b) without regard to the relative fault of said indemnifying party or indemnified party or any other equitable consideration provided for in this
Section 3.1(d) subject, in the case of a Holder, to the limited dollar amounts set forth in Section 3.1(b). 

(e) The indemnification and contribution provided for under this Agreement will remain in full force and effect regardless of any investigation
made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and will survive the transfer of securities. 

ARTICLE IV—TERMINATION 

4.1 Termination. The provisions of this Agreement shall terminate and be of no further force and effect upon the earlier of
(a) the four (4) year anniversary following the Closing and (b) the date when all Registrable Securities have been sold or are available to be sold under Rule 144 promulgated under the Securities Act without regard to volume limits.

 ARTICLE V—MISCELLANEOUS 

5.1 Amendment. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing
and is signed, in the case of an amendment, by each party to this Agreement or in the case of a waiver, by the party against whom the waiver is to be effective. 

  
 10 

 5.2 Counterparts and Facsimile. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Signatures to this Agreement transmitted by facsimile transmission, by electronic mail in PDF form, or by
any other electronic means designed to preserve the original graphic and pictorial appearance of a document, will be deemed to have the same effect as physical delivery of the paper document bearing the original signatures. This Agreement shall
become effective when each party hereto shall have received counterparts hereof signed by all of the other parties hereto. Until and unless each party has received a counterpart hereof signed by the other party hereto, this Agreement shall have no
effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication). 

5.3 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. 

(a) This Agreement shall be governed by and construed in accordance with and governed by the Laws of the State of Delaware, without regard to
the conflicts of law rules of such State that would result in the application of any Law other than the Law of the State of Delaware. 
 (b)
Each party to this Agreement hereby irrevocably and unconditionally (i) consents to the submission to the exclusive jurisdiction of the Court of Chancery of the State of Delaware sitting in Wilmington, Delaware for any proceedings arising out
of or relating to this Agreement or the transactions contemplated hereby, (ii) agrees not to commence any proceeding relating thereto except in such court and in accordance with the provisions of this Agreement, (iii) agrees that service
of any process, summons, notice or document by U.S. registered mail, or otherwise in the manner provided for notices in Section 3.5 hereof, shall be effective service of process for any such proceeding brought against it in
any such court, (iv) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any such proceeding in such courts and (v) agrees not to plead or claim in
any court that any such proceeding brought in any such court has been brought in an inconvenient forum. Each of the parties hereto agrees that a final judgment in any such proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by applicable Law. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by applicable Law. 

(c) THE PARTIES HERETO WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING
(WHETHER BASED ON CONTRACT, EQUITY, TORT OR ANY OTHER THEORY) DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTION AGREEMENT, OR THE NEGOTIATION, EXECUTION, PERFORMANCE, OR ENFORCEMENT OF THIS AGREEMENT, THE
TRANSACTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, REGARDLESS OF WHICH PARTY INITIATES SUCH ACTION OR PROCEEDING. EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
 5.4 Notices. All notices and other communications required or
permitted to be given hereunder shall be in writing and shall be deemed given if delivered personally, transmitted by facsimile or e-mail (and confirmed), mailed by registered or certified mail with postage
prepaid and return receipt requested, or sent by commercial overnight courier, courier fees prepaid (if available; otherwise, by the next best class of service available), to the parties at the following addresses: 

  
 11 

 If to the Company: 

Approach Resources Inc. 
 6500
West Freeway, Suite 800 
 Fort Worth, Texas 76116 

Attention: J. Curtis Henderson 

Facsimile: (817) 989-9001 

With copies to (which shall not constitute notice): 

Weil, Gotshal & Manges LLP 

200 Crescent Court, Suite 300 

Dallas, Texas 75201 
 Attention:
Rodney Moore 
 Facsimile: (214) 746-8102 

Email: rodney.moore@weil.com 
 If to any Holder,
at its address listed on the signature pages hereof. 
 Any party may from time to time change its address or designee for notification
purposes by giving the other parties prior notice in the manner specified above of the new address or the new designee and the subsequent date upon which the change shall be effective. 

5.5 Entire Agreement; Etc.. This Agreement (including the Exhibit hereto) constitutes the entire agreement among
the parties hereto with respect to the subject matter hereof and supersedes all other prior agreements and understandings, both written and oral, among the parties hereto with respect to the subject matter hereof. 

5.6 Headings. The Article and Section headings in this Agreement are for convenience of reference only, do not constitute a
part of this Agreement and shall not limit, extend or otherwise affect the meaning or interpretation of the terms and provisions of this Agreement. 

5.7 Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
or other Governmental Entity to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so
long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such a determination, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible. 

5.8 No Third Party Beneficiaries. Subject to the following sentence, nothing in this Agreement is intended or shall be construed
to give any Person, other than the parties hereto and their respective successors, assigns and legal representatives, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein. 

5.9 Expenses. Except as otherwise explicitly contemplated by this Agreement, each party will bear and pay the costs and expenses
incurred by such party in connection with the transactions contemplated under this Agreement. 

  
 12 

 5.10 Existing Registration Rights Agreement. Notwithstanding anything to the
contrary in this Agreement, the provisions of this Agreement are subject to the Existing Registration Right Agreement. To the extent a Holder has any right, or the Company has any obligation, that is in conflict with or affected by the Existing
Registration Rights Agreement, the provisions of the Existing Registration Rights Agreement shall govern and the provisions hereof shall be read in conjunction with, and subject to, such provisions in the Existing Registration Rights Agreement. 

5.11 Other Definitional and Interpretive Matters. Unless otherwise expressly provided or the context otherwise requires, for
purposes of this Agreement the following rules of interpretation apply. 
 (a) When calculating the period of time before which, within which
or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period is excluded. If the last day of such period is a non-Business
Day, the period in question ends on the next succeeding Business Day. 
 (b) Any reference in this Agreement to $ means U.S. dollars. 

(c) The Exhibit to this Agreement are hereby incorporated and made a part hereof as if set forth in full in this Agreement and are an integral
part of this Agreement. Any capitalized terms used in any Exhibit but not otherwise defined therein are defined as set forth in this Agreement. 

(d) Any reference in this Agreement to gender includes all genders, and words imparting the singular number also include the plural and vice
versa. 
 (e) The division of this Agreement into Articles, Sections and other subdivisions and the insertion of headings are for convenience
of reference only and do not affect, and should not be utilized in, the construction or interpretation of this Agreement. 
 (f) All
references in this Agreement to any “Article,” “Section or “Exhibit” are to the corresponding Article, Section or Exhibit of this Agreement. 

(g) The words “herein,” “hereinafter,” “hereof,” and “hereunder” refer to
this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires. 
 (h) The word
“including” or any variation thereof means “including, but not limited to,” and does not limit any general statement that it follows to the specific or similar items or matters immediately following it. 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

  
 13 

 Exhibit A 

Certain Definitions 
 Agreement.
“Agreement” has the meaning set forth in the Introductory Paragraph. 
 Affiliate. “Affiliate” means, with respect to any Person,
any Person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with any Person. 

Beneficial Ownership. “Beneficial Ownership” and terms of similar import shall be as defined under and determined pursuant to Rule 13d-3 promulgated under the Exchange Act. 
 Blackout Period. “Blackout Period” has the meaning set forth
in Section 2.4(a). 
 Business Day. “Business Day” means any day other than (i) a Saturday, Sunday or a federal holiday, or
(ii) a day on which commercial banks in New York City, New York or Fort Worth, Texas are authorized or required to be closed. 
 Closing.
“Closing” has the meaning given to such term in the Exchange Agreement. 
 Company. “Company” has the meaning set forth in the
Introductory Paragraph. 
 Company Common Stock. “Company Common Stock” has the meaning set forth in the Recitals. 

Entity. “Entity” means any corporation (including any non-profit corporation), general partnership,
limited partnership, limited liability partnership, joint venture, estate, trust, cooperative, foundation, society, political party, union, company (including any limited liability company or joint stock company), firm or other enterprise,
association, organization or entity. 
 Effectiveness Period. “Effectiveness Period” has the meaning set forth in Section 1.1(a).

 Exchange Act. “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and
regulations promulgated by the SEC thereunder. 
 Exchange Agreement. “Exchange Agreement” has the meaning set forth in the Recitals. 

Excluded Registration. “Excluded Registration” means a registration under the Securities Act of (i) securities registered on Form S-8 or any similar successor form and (ii) securities registered to effect the acquisition of or combination with another Person. 

Existing Registration Rights Agreement. “Existing Registration Rights Agreement” means the Registration Rights Agreement, dated as of
November 14, 2007, by and among the Company and each of the other parties thereto. 
 Governmental Entity. “Governmental Entity” means
any U.S., foreign, federal, national, state or local government or political subdivision thereof, any entity, agency, authority or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to
government, any court, tribunal or arbitrator, and any self-regulatory organization. 
 Holder. “Holder” has the meaning set forth in the
Introductory Paragraph. 

  
 A-1 

 Information Blackout. “Information Blackout” has the meaning set forth in Section 2.4(a).

 Law. “Law” means any federal, state, local, municipal, foreign or other law, statute, legislation, constitution, principle of common
law, resolution, ordinance, code, edict, decree, proclamation, treaty, convention, rule, regulation, ruling, directive, pronouncement, requirement, specification, determination, decision, opinion or interpretation issued, enacted, adopted, passed,
approved, promulgated, made, implemented or otherwise put into effect by or under the authority of any Governmental Entity (including those laws relating to record keeping, customs, export and sanctions compliance, foreign assets control, foreign
corrupt practices, possession and handling of classified information or zoning). 
 Material Adverse Effect. “Material Adverse Effect” has
the meaning set forth in Section 1.2(b). 
 Participating Holder. “Participating Holder” has the meaning set forth in Section
1.2(a). 
 Person. “Person” means any individual, Entity or Governmental Entity. 

Prospectus. “Prospectus” means the prospectus (including any preliminary, final or summary prospectus) included in any Registration
Statement, all amendments and supplements to such prospectus and all other material incorporated by reference in such prospectus. 
 Records.
“Records” has the meaning set forth in Section 2.2(l). 
 Register. “Register,” “registered” and
“registration” refer to a registration effected by preparing and filing a Registration Statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such Registration Statement. 

Registrable Securities. “Registrable Securities” means, at any time, the Company Common Stock owned by a Holder, whether owned on the date
hereof or acquired hereafter; provided, however, that Registrable Securities shall not include any shares (i) the sale of which has been registered pursuant to the Securities Act and which shares have been sold pursuant to such
registration; (ii) which have been sold on any U.S. national securities exchange or quotation system on which the Registrable Securities are then listed or traded, pursuant to Rule 144 under the Securities Act or otherwise; (iii) that have
been sold, transferred or disposed of by a Holder to a Person that is not an Affiliate of such Holder, and such Person may immediately thereafter fully transfer such Registrable Securities without restriction under the applicable securities laws of
the United States; or (iv) which have been sold pursuant to Rule 144 under the Securities Act or are eligible for resale pursuant to Rule 144 under the Securities Act without regard to volume or manner of sale restrictions. 

Registration Delay. “Registration Delay” has the meaning set forth in Section 2.4(a). 

Registration Expenses. “Registration Expenses” means all expenses (other than underwriting discounts and commissions) arising from or
incident to the registration of Registrable Securities in compliance with this Agreement, including, without limitation: (i) SEC, stock exchange, FINRA and other registration and filing fees; (ii) all fees and expenses incurred in
connection with complying with any securities or blue sky Laws (including, without limitation, fees, charges and disbursements of counsel in connection with blue sky qualifications of the Registrable Securities); (iii) all printing, messenger and
delivery expenses; (iv) the fees, charges and disbursements of counsel to the Company and of its independent public accountants and any other accounting and legal fees, charges and expenses incurred by the Company (including, without
limitation, any expenses arising from any special audits or “comfort” letters required in connection with or incident to any registration); (v) the fees and expenses incurred in connection with the listing of the Registrable Securities on
any national securities exchange or the quotation of Registrable Securities on any 

  
 A-2 

 
inter-dealer quotation system; (vi) the fees and expenses incurred by the Company in connection with any “road show” for underwritten offerings; and (vii) reasonable fees,
charges and disbursements of counsel to the Holders, including, for the avoidance of doubt, any expenses of counsel to the Holders in connection with the filing or amendment of any Registration Statement or Prospectus hereunder; provided that
Registration Expenses shall only include the fees and expenses of one counsel to the Holders (and one local counsel per jurisdiction) with respect to any offering. 

Registration Request Notice. “Registration Request Notice” has the meaning set forth in Section 1.1(a). 

Registration Statement. “Registration Statement” means any registration statement of the Company that covers the resale of any Registrable
Securities pursuant to the provisions of this Agreement filed with, or to be filed with, the SEC under the rules and regulations promulgated under the Securities Act, including the related Prospectus, amendments and supplements to such registration
statement, including pre- and post-effective amendments, and all exhibits, financial information and all other material incorporated by reference in such registration statement. 

SEC. “SEC” means the Securities and Exchange Commission or any other Federal agency at the time administering the Securities Act. 

Securities Act. “Securities Act” means the Securities Act of 1933, as amended, or any similar Federal statute, and the rules and regulations
promulgated by the SEC thereunder. 
 Seller Affiliates. “Seller Affiliates” has the meaning set forth in
Section 3.1. 
 Trading Forum. “Trading Forum” has the meaning set forth in
Section 1.4. 
 Underwriting Request. “Underwriting Request” has the meaning set forth in Section 2.1(a).

 Underwritten Offering. ‘Underwritten Offering” has the meaning set forth in Section 2.1(a). 

  
 A-3 

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

			
	APPROACH RESOURCES INC.
		
	By:	 	 /s/ J. Ross Craft

	Name:	 	J. Ross Craft
	Title:	 	Chairman, President and Chief Executive Officer

 [Signature page to Registration Rights Agreement] 

 
			
	WILKS BROTHERS, LLC
		
	By:	 	 /s/ Morgan D. Neff

	Name:	 	Morgan D. Neff
	Title:	 	Senior Portfolio Manager
		
	By:	 	 /s/ Matt Wilks

	Name:	 	Matt Wilks
	Title:	 	Portfolio Manager & Vice President Capital Investments
	
	Address:
	
	17010 IH-20
	Cisco, Texas 76437
	Attention: Morgan Neff and Matt Wilks
	Facsimile No.: (817) 850-3698
Email: MNeff@wilksbrothers.com and mwilks@ie-llc.net
	
	Copy to:
	
	Brown Rudnick LLP
	7 Times Square
	New York, New York 10036
	Attention: John F. Storz
	Facsimile: (212) 209-4801
	Email: jstorz@brownrudnick.com

 [Signature page to Registration Rights Agreement] 

 
			
	SDW INVESTMENTS, LLC
		
	By:	 	 /s/ Morgan D. Neff

	Name:	 	Morgan D. Neff
	Title:	 	Senior Portfolio Manager
		
	By:	 	 /s/ Matt Wilks

	Name:	 	Matt Wilks
	Title:	 	Portfolio Manager & Vice President Capital Investments
	
	Address:
	
	17010 IH-20
	Cisco, Texas 76437
	Attention: Morgan Neff and Matt Wilks
	Facsimile No.: (817) 850-3698
	Email: MNeff@wilksbrothers.com and mwilks@ie-llc.net
	
	Copy to:
	
	Brown Rudnick LLP
	7 Times Square
	New York, New York 10036
	Attention: John F. Storz
	Facsimile: (212) 209-4801
	Email: jstorz@brownrudnick.com

 [Signature page to Registration Rights Agreement]

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