August 1, 2019
938 La Mesa Terrace, Unit G
Sunnyvale, CA 94086-2477
Re: Amended Employment Terms
As you know, you are currently employed by Quanergy Systems, Inc. (the Company) in the position of Vice President, Finance, under the terms of an offer letter from the Company dated August 1, 2016 (the Offer Letter). The Company is amending the terms of your offer letter to reflect your new position as Chief Financial Officer (CFO) and the corresponding change in compensation and benefits.
Effective August 17, 2019 (the Effective Date), your new title will be CFO. You will report to the Chief Executive Officer, Louay Eldada, PhD. Your salary as of the Effective Date will be $205,000 annually, to be paid in accordance with the Companys regular payroll practices. You will continue to work at our facility located in Sunnyvale, CA and the Company may change your position, duties, and work location from time to time in its discretion. Performance appraisals will be made periodically, and, when appropriate, your salary rate and your stock option position will also be reviewed relative to your performance and our then-current salary compensation and equity structures.
Subject to the approval of the Board of Directors of the Company (the Board) and the provisions of the Companys 2013 Stock Incentive Plan, as amended (the Plan), and conditioned on a favorable review of your performance during the period of August 17, 2019 through February 17, 2020, as determined by the Company in its sole discretion, you will receive an option to purchase 40,000 shares of Common Stock of the Company (the Performance Option), at a per share purchase price determined by the Board to be the fair market value of the Common Stock at the time of grant. The shares subject to the Performance Option shall vest over a four (4) year period so that 1/48th of the Shares subject to the option shall vest monthly on the last day of the month, so that the option will be fully vested and exercisable four (4) years from the Effective Date, provided that you are still employed at the time of any such vesting. The Performance Option and the shares subject to the Performance Option will be subject to the provisions of the Plan and a Stock Option Agreement to be entered into by you and the Company, and will be subject to dilution when and if additional investments are made or received by the Company. Nothing in this letter modifies or affects the terms of any other options to purchase shares of the Companys Common Stock previously granted to you, including the option to purchase 12,000 shares of Common Stock of the Company as stated in your Offer Letter.
The Company is also amending the terms of your Offer Letter to include the severance benefits set forth below.
If the Company terminates your employment without Cause (as defined in the Plan), and other than as a result of your death or disability, or you resign for Good Reason (as defined below), and provided such termination constitutes a separation from service (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a Separation from Service), then subject to your obligations below, you shall be entitled to receive the following severance benefits (collectively, the Severance Benefits):