Document:

Exhibit 10.21

FORM OF NONSTATUTORY STOCK OPTION AGREEMENT
FOR EMPLOYEE

VAALCO ENERGY, INC.

2014 LONG TERM INCENTIVE PLAN

Optionee:  _____________

1. Grant of Stock Option.  As of the Grant Date (identified in Section 19 below), VAALCO Energy, Inc., a Delaware corporation (the “Company”) hereby grants a Nonstatutory Stock Option (the “Option”) to the Optionee (identified above), an Employee of the Company, to purchase the number of shares of the Company’s common stock, $.10 par value per share (the “Common Stock”), as identified in Section 19 below (the “Shares”), subject to the terms and conditions of this agreement (the “Agreement”) and the VAALCO Energy, Inc. 2014 Long Term Incentive Plan (the “Plan”).  The Plan is hereby incorporated herein in its entirety by reference.  The Shares, when issued to Optionee upon exercise of the Option, shall be fully paid and nonassessable.  The Option is not an “incentive stock option” as defined in Section 422 of the Internal Revenue Code. 

2. Definitions.  All capitalized terms used herein shall have the meanings set forth in the Plan unless otherwise provided herein. Section 19 sets forth definitions for certain of the capitalized terms used in this Agreement. 

3. Option Term.  The Option shall commence on the Grant Date (identified in Section 19 below) and terminate on the ____ (___) anniversary of the Grant Date as specified in Section 19. The period during which the Option is in effect and may be exercised is referred to herein as the “Option Period”. 

4. Option Price.  The Option Price per Share is identified in Section 19. 

5. Vesting.  The total number of Shares subject to this Option shall vest in accordance with the vesting schedule  described in Section 19 (the “Vesting Schedule”).  The Shares may be purchased at any time after they become vested, in whole or in part, during the Option Period; provided, however, the Option may only be exercisable to acquire whole Shares.  The right of exercise provided herein shall be cumulative so that if the Option is not exercised to the maximum extent permissible after vesting, the vested portion of the Option shall be exercisable, in whole or in part, at any time during the Option Period. 

6. Method of Exercise. 

(a) Stock Option Exercise Agreement.  To exercise this Option, Optionee (or in the case of exercise after Optionee’s death or incapacity, Optionee’s executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed stock option exercise agreement in the form provided by the Company (the “Exercise Agreement”), which shall set forth, inter alia, (a) Optionee’s election to exercise the Option, (b) the number of Shares being purchased, (c) any restrictions imposed on the Shares, and (d) any representations, warranties or agreements regarding Optionee’s investment intent and access to information as may be required by the Company to comply with applicable securities laws.  If someone other than Optionee exercises the Option, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the Option.  The Optionee may withdraw notice of exercise of the Option, in writing, at any time prior to the close of business on the business day that immediately precedes the proposed exercise date. 

(b) Limitations on Exercise.  The Option may not be exercised unless such exercise is in compliance with all applicable federal, state and foreign securities laws, as in effect on the date of exercise.  The Option may not be exercised for fewer than one Share or for a fractional Share. 

7. Method of Payment.  Subject to applicable provisions of the Plan, the Option Price upon exercise of the Option shall be payable to the Company in full either: (i) in cash or its equivalent; (ii) subject to prior approval by the Committee in its discretion, by tendering previously acquired, unrestricted Shares having an aggregate Fair Market Value (as defined in the Plan) at the time of exercise equal to the total Option Price; (iii) subject to prior approval by the Committee in its discretion, by withholding Shares which otherwise would be acquired on exercise having an aggregate Fair Market Value at the time of exercise equal to the total Option Price; or (iv) any other permitted method pursuant to the applicable terms and conditions of the Plan and applicable law. 

As soon as practicable after receipt of a written notification of exercise and full payment, the Company shall deliver to or on behalf of the Optionee, in the name of the Optionee or other appropriate recipient, Share certificates or other evidence of ownership for the number of Shares purchased under the Option.

 

 

Payment of the Option Price by a Optionee who is an officer, director or other “insider” subject to Section 16(b) of the 1934 Act in the form of a stock for stock exercise is subject to pre-approval by the Committee, in its discretion, in a manner that complies with the specificity requirements of SEC Rule 16b-3. 

Notwithstanding the foregoing, if there is a stated par value of the Shares and applicable law so requires, then the par value of the Shares, if newly issued, shall be paid in cash or cash equivalents. 

8. Restrictions on Exercise.  The Option may not be exercised if the issuance of such Shares or the method of payment of the consideration for such Shares would constitute a violation of any applicable federal or state securities or other laws or regulations, or any rules or regulations of any stock exchange on which the Common Stock may be listed, as determined by legal counsel for the Company.  In addition, Optionee understands and agrees that the Option cannot be exercised if the Company determines that such exercise, at the time of such exercise, would be in violation of the Company’s insider trading policy. 

9. Termination of Employment.  Voluntary or involuntary termination of Employment shall affect Optionee’s rights under the Option as follows: 

(a) Termination for Cause.  The entire Option, including any vested portion thereof, shall expire and terminate on the date of termination of Employment and shall not be exercisable to any extent if Optionee’s Employment is terminated for Cause (as defined in the Plan at the time of such termination of Employment) effective as of 12:01 a.m. (CST) on the date of such termination of Employment. 

(b) Retirement.  In the event of Optionee’s Retirement at or after attaining (i) age 65 and (ii) at least ten (10) years of Employment service, all of the Options shall become 100% vested as of the date of termination of Employment.  Upon the termination of Employment due to the Optionee’s Retirement at or after attaining age 65 but without ten (10) years of Employment service,  subject to the Vesting Schedule, any non-vested portion of the Option shall immediately terminate and no further vesting shall occur.  Any vested Option shall expire on the expiration of six (6) months after the date of termination of Employment due to Retirement; provided, however, in no event may the Option be exercised by anyone after expiration of the Option Period. 

(c) Death or Disability.  If Optionee’s Employment is terminated due to death or Disability (as defined in the Plan at the time of such termination), then (i) subject to the Vesting Schedule, any non-vested portion of the Option shall immediately expire on the termination of Employment date and (ii) any vested portion of the Option shall expire on the one-year anniversary date  of the termination of Employment date (to the extent not previously exercised by Optionee) or, in the case of death, by the person or persons to whom Optionee’s rights under the Option have passed by will or by the laws of descent and distribution or, in the case of Disability, by Optionee or Optionee’s legal representative; provided, however, in no event may the Option be exercised by anyone after expiration of the Option Period. 

(d) Other Involuntary Termination or Voluntary Termination.  If Optionee’s Employment is terminated for whatever reason, or Optionee resigns for any reason, either voluntarily or involuntarily, except for Cause, Retirement, death or Disability as set out above, then (i) subject to the Vesting Schedule, any non-vested portion of the Option shall immediately expire on the termination of Employment date and (ii) any vested portion of the Option shall expire to the extent not exercised within one hundred twenty (120) days after such termination date; provided, however, in no event may the Option be exercised by anyone after expiration of the Option Period. 

10. Independent Legal and Tax Advice.  Optionee acknowledges that the Company has advised Optionee to obtain independent legal and tax advice regarding the grant and exercise of the Option and the disposition of any Shares acquired thereby. 

11. Reorganization of Company.  The existence of the Option shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference stock ahead of or affecting the Shares or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 

12. Adjustment of Shares.  In the event of stock dividends, spin-offs of assets or other extraordinary dividends, stock splits, combinations of shares, recapitalizations, mergers, consolidations, reorganizations, liquidations, issuances of rights or warrants and similar transactions or events involving Company, appropriate adjustments may be made to the terms and provisions of the Option as provided in the Plan. 

13. No Rights in Shares.  Optionee shall have no rights as a shareholder in respect of the Shares until the Optionee becomes the record holder of such Shares. 

 

 

14. Investment Representation.  Optionee will enter into such written representations, warranties and agreements as Company may reasonably request in order to comply with any federal or state securities law.  Moreover, any stock certificate for any Shares issued to Optionee hereunder may contain a legend restricting their transferability as determined by the Company in its discretion.  Optionee agrees that Company shall not be obligated to take any affirmative action in order to cause the issuance or transfer of Shares hereunder to comply with any law, rule or regulation that applies to the Shares subject to the Option. 

15. No Guarantee of Employment.  The Option shall not confer upon Optionee any right to continued Employment (or any other relationship) with the Company or any affiliate thereof. 

16. Optionee Confidentiality Obligations.  In accepting the Option, Optionee acknowledges that Optionee is obligated under Company’s policy and applicable law to protect and safeguard the confidentiality of trade secrets and other proprietary and confidential information belonging to the Company and its affiliates, and that such obligations continue beyond termination of Employment. 

17. Withholding of Taxes.  The Company shall have the right to (a) make deductions from the number of Shares otherwise deliverable upon exercise of the Option in an amount sufficient to satisfy withholding of any federal, state or local taxes required by law, or (b) take such other action as may be necessary or appropriate to satisfy any such tax withholding obligations. 

18. General. 

(a) Notices.  All notices under this Agreement shall be mailed or delivered by hand to the parties at their respective addresses set forth beneath their signatures below or at such other address as may be designated in writing by either of the parties to one another, or to their permitted transferees if applicable.  Notices shall be effective upon receipt. 

(b) Shares Reserved.  The Company shall at all times during the Option Period reserve and keep available under the Plan such number of Shares as shall be sufficient to satisfy the requirements of this Option. 

(c) Transferability of Option.  The Option is transferable only to the extent permitted under the Plan at the time of transfer (i) by will or by the laws of descent and distribution, (ii) by a qualified domestic relations order (as defined in Section 414(p) of the Internal Revenue Code), or (iii) to Optionee’s immediate family or entities established for the benefit of, or solely owned by, the Optionee’s immediate family, but only if, and to the extent, permitted under the Plan.  No right or benefit hereunder shall in any manner be liable for or subject to any debts, contracts, liabilities, obligations or torts of Optionee or any permitted transferee thereof. 

(d) Amendment and Termination.  No amendment, modification or termination of this Agreement shall be made at any time without the written consent of Optionee and Company. 

(e) No Guarantee of Tax Consequences.  The Company makes no commitment or guarantee that any tax treatment will apply or be available to Optionee or any other person.  The Optionee has been advised, and provided with the opportunity, to obtain independent legal and tax advice regarding the grant and exercise of the Option and the disposition of any Shares acquired thereby. 

(f) Severability.  In the event that any provision of this Agreement shall be held illegal, invalid, or unenforceable for any reason, such provision shall be fully severable, but shall not affect the remaining provisions of the Agreement, and the Agreement shall be construed and enforced as if the illegal, invalid, or unenforceable provision had not been included herein. 

(g) Supersedes Prior Agreements.  This Agreement shall supersede and replace all prior agreements and understandings, oral or written, between the Company and the Optionee regarding the grant of the Options covered hereby. 

(h) Governing Law.  This Agreement shall be construed in accordance with the laws of the State of Texas, without regard to its conflict of law provisions, to the extent federal law does not supersede and preempt Texas law. 

 

 

19. Definitions and Other Terms.  The following capitalized terms shall have those meanings set forth opposite them: 

 

			
	
 
	
(a) Optionee:
	
______________________

	
 
	
 
	
 

	
 
	
(b) Grant Date:
	
______________________

	
 
	
 
	
 

	
 
	
(c) Shares:
	
______________(_____) Shares of the Company’s Common Stock.

	
 
	
 
	
 

	
 
	
(d) Option Price:
	
________________ ($_________) per Share.

	
 
	
 
	
 

	
 
	
(e) Option Period:
	
Grant Date through the fifth annual anniversary of the Grant Date (until 5:00 p.m. CST).

	
 
	
 
	
 

	
 
	
(f) Vesting Schedule:
	
_________________________

	
 
	
 
	
 

Notwithstanding the foregoing vesting schedule, in the event of a Change in Control (as defined in the Plan), all of the Options shall become 100% vested as of the date of the Change in Control. 

[Signature page follows.]

 

 

 

 

 

IN WITNESS WHEREOF, the Company, as of the Grant Date, has caused this Agreement to be executed on its behalf by its duly authorized officer and Optionee has hereunto executed this Agreement as of the same date. 

 

	
VAALCO ENERGY, INC.

	
 

	
By: 
	
 

	
 

	
Address for Notices:

	
 

	
VAALCO Energy, Inc.

	
4600 Post Oak Place, Suite 309

	
Houston, Texas 77027

	
Attn: 
	
 

	
 
	
 

	
OPTIONEE

	
 

	
Signature

	
 

	
Address for Notices:Exhibit 10.22

VAALCO ENERGY, INC. 

FORM OF STOCK AWARD AGREEMENT

THIS STOCK AWARD AGREEMENT (the “Agreement”) is made and entered into by and between VAALCO Energy, Inc., a Delaware corporation (the “Company”) and ________________, an individual and independent director of the Company (“Grantee”), on the ___ day of ______, 20__ (the “Grant Date”), subject to the VAALCO Energy, Inc. 2014 Long Term Incentive Plan (the “Plan”).  This Agreement is subject to the terms and conditions of the Plan, which is incorporated herein in its entirety by reference.  For all purposes of the Plan, the stock award evidenced by this Agreement is an “Other Stock-Based Award” under the Plan and not a Restricted Stock Award.  A copy of the Plan has been made available to Grantee.  Capitalized terms not otherwise defined in this Agreement shall have the meaning given to such terms in the Plan. 

WHEREAS, Grantee is an independent Director of the Company, and in connection therewith, the Company desires to grant unrestricted shares of the Company’s Common Stock (the “Common Stock”) to Grantee, subject to the terms and conditions of this Agreement and the Plan, with a view to increasing Grantee’s interest in the Company’s success and growth; and 

WHEREAS, Grantee desires to be the holder of shares of Common Stock subject to the terms and conditions of this Agreement; 

NOW, THEREFORE, in consideration of the premises, mutual covenants and agreements contained herein, and such other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 

1. Grant of Common Stock.  Effective as of the Grant Date, and subject to the terms and conditions set forth herein, (a) the Company hereby awards and grants to Grantee, ____________ (______) shares of the Common Stock (the “Shares”), and (b) Grantee shall have all rights and privileges of ownership of the Shares subject to this Agreement. 

2. Transfer Conditions. 

(a) The Shares shall be registered in Grantee’s name as of the Grant Date through a book entry credit in the records of the Company’s transfer agent. 

(b) Subject to the conditions set forth in this Agreement, Grantee shall have all the rights of a stockholder with respect to the Shares as of the Grant Date, including any applicable voting and dividend rights 

3. Issuance of Certificate. 

(a) It is voluntarily agreed by Grantee that he will hold the Shares, either individually or in street name through a brokerage firm, and the Shares will not be sold or otherwise transferred or disposed of to any other person or entity, except resulting from his death, until the date that is three (3) years from the Grant Date.  Grantee also agrees that he will not transfer the Shares in any manner that would constitute, in the opinion of counsel for the Company, a violation of any applicable federal or state securities or other laws or regulations, or any rules or regulations of any stock exchange on which the Common Stock is listed.  The Company may cause to be issued a stock certificate, registered in the name of the Grantee, evidencing the Shares. 

(b) The certificate for the Shares shall be held by the Grantee. 

(c) The Company shall direct its transfer agent to deliver to Grantee certificates evidencing the Shares or deliver the shares to a brokerage account as instructed by the Grantee.  Grantee will enter into such written representations and agreements as the Company may reasonably request to comply with any securities law or regulation. 

4. Grantee’s Representations. 

Grantee acknowledges that Grantee has been provided a copy of the prospectus, dated July 1, 2014, relating to the issuance of the Shares.  The rights and obligations of the Company and the Grantee hereunder are subject to the terms of the Plan and all applicable laws and regulations.

 

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5. Interpretation.  The meaning assigned to each term defined herein shall be equally applicable to both the singular and the plural forms of such term and vice versa, and words denoting either gender shall include both genders as the context requires.  Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning.  The terms “hereof,” “herein” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement.  When a reference is made in this Agreement to a Section, such reference is to a Section of this Agreement unless otherwise specified.  The terms “include”, “includes”, and “including” when used in this Agreement shall be deemed to be followed by the words “without limitation”, unless otherwise specified.  A reference to any party to this Agreement or any other agreement or document shall include such party’s predecessors, successors, and permitted assigns.  Reference to any law means such law as amended, modified, codified, replaced, or reenacted, and all rules and regulations promulgated thereunder.  All captions contained in this Agreement are for convenience of reference only, do not form a part of this Agreement, and shall not affect in any way the meaning or interpretation of this Agreement.  The parties have participated jointly in the negotiation and drafting of this Agreement; therefore any rule of construction or interpretation otherwise requiring this Agreement to be construed or interpreted against any party by virtue of the authorship of this Agreement shall not apply to the construction and interpretation hereof. 

7. Grantee Acknowledgment.  Grantee acknowledges that (a) he is knowledgeable and sophisticated as to business matters, including the subject matter of this Agreement, (b) he has read this Agreement and understands its terms and conditions, (c) he has had ample opportunity to discuss this Agreement with his legal counsel and tax advisors prior to execution, and (d) no strict rules of construction shall apply for or against the drafter or any other party.  It is the desire of the parties hereto that this Agreement be enforced to the maximum extent permitted by law, and should any provision contained herein be held invalid or otherwise unenforceable by a court of competent jurisdiction, the parties hereby agree and confirm that such provision shall be reformed to create a valid and enforceable provision to the maximum extent permitted by law. 

8. Compliance with Code Section 409A.  The Shares awarded under this Agreement are not intended to be subject to Section 409A of the U.S. Internal Revenue Code of 1986, as amended (“Section 409A”), including the authoritative guidance issued thereunder, and shall be interpreted and administered to be exempt from the application of Section 409A. 

9. Miscellaneous. 

(a) Notices.  Any notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal in-hand delivery, by telecopy or similar facsimile means, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at its then current main corporate address, and to Grantee at his address indicated on the Company’s records, or at such other address and number as a party has last previously designated by written notice given to the other party in the manner hereinabove set forth.  Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered and receipted for (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by courier or delivery service, or sent by certified or registered mail, return receipt requested. 

(b) Amendment, Termination and Waiver.  This Agreement may be amended, modified, terminated or superseded only by written instrument executed by or on behalf of the Company and Grantee.  Any waiver of the terms or conditions hereof shall be made only by a written instrument executed and delivered by the party waiving compliance.  Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized executive officer of the Company.  The failure of any party at any time or times to require performance of any provisions hereof shall in no manner affect the right to enforce the same.  No waiver by any party of any term or condition herein, or the breach thereof, in one or more instances shall be deemed to be, or construed as, a further or continuing waiver of any such condition or breach or a waiver of any other condition or the breach of any other term or condition. 

(c) No Guarantee of Tax Consequences.  The Company makes no commitment or guarantee that any tax treatment will apply or be available to Grantee or any other person.  The Grantee has been advised, and provided with the opportunity, to obtain independent legal and tax advice regarding the grant and disposition of the Shares. Additionally, Grantee agrees to be responsible for and pay all taxes that result from Grantee’s ownership and disposition of the Shares. 

(d) Severability.  Any provision of this Agreement which is ruled to be invalid or unenforceable in any applicable jurisdiction shall be ineffective, to the extent of such invalidity or unenforceability, without invalidating or rendering unenforceable the remaining provisions hereof; and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

(e) Supersedes Prior Agreements.  This Agreement shall supersede and replace all prior agreements, promises and understandings, oral or written, between the Company and the Grantee regarding the Shares granted hereunder. 

 

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(f) Governing Law.  The Agreement shall be construed in accordance with the laws of the State of Texas, without regard to its conflict of law provisions, to the extent federal law does not supersede and preempt Texas law. 

(g) Successors and Assigns.  This Agreement shall bind, be enforceable by, and inure to the benefit of, the Company and the Grantee and their permitted successors and assigns under the Plan. 

10. Survival of Certain Provisions.  Wherever appropriate to the intention of the parties hereto, the respective rights and obligations of the parties hereunder shall survive any termination or expiration of this Agreement. 

11. Signature in Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  The parties agree that the delivery of this Agreement may be effected by means of an exchange of facsimile signatures which shall be deemed original signatures thereof. 

[Signature page follows.]

 

 

 

 

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IN WITNESS WHEREOF, this Stock Award Agreement is made and entered into as of the date first written above. 

 

	
 
	
VAALCO Energy, Inc.

	
 
	
 

	
 
	
By: 
	
 

	
 
	
 

	
 
	
Name: 
	
 

	
 
	
Title: 
	
 

	
 
	
 

	
 
	
Address for Notices:

	
 
	
 

	
 
	
VAALCO Energy, Inc.

	
 
	
9800 Richmond Ave.

	
 
	
Suite 700

	
 
	
Houston, TX 77042

	
 
	
Attn: 
	
 

	
 
	
 

	
 
	
Grantee Signature:

	
 
	
 

	
 
	
Address for Notices: 

 

 

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