Document:

Form of Stock Option Award Agreement

 Exhibit 10.1 
 AWARD AGREEMENT UNDER THE 
 VAALCO ENERGY, INC. 
 2001 STOCK INCENTIVE PLAN 
 THIS AWARD
AGREEMENT (the “Agreement”) is entered into this 12th day of December, 2006 (the “Grant Date”), between VAALCO Energy, Inc., a Delaware corporation (the “Company”)
and                      (“Grantee”), pursuant to the provisions of the VAALCO Energy, Inc. 2001 Stock Incentive Plan
(the “Plan”). The Plan Administrator of the Company has determined that Grantee is eligible to participate as a Grantee under the Plan, and, to carry out its purposes, has this day authorized the grant, pursuant to the Plan,
of the option set forth below to Grantee. 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties do hereby
agree as follows: 
 1. Grant of Option. Subject to all of the terms, conditions and provisions of the Plan and of this
Agreement, the Company hereby grants to Grantee a stock option (“Option”) under the Plan pursuant to which Grantee shall have the right and option to purchase from the Company all or any part of an aggregate of
             shares of the common stock of the Company, $0.10 par value per share (the “Common Stock”), which shall consist of authorized and unissued or
treasury shares. 
 2. Option Price. The purchase price payable by Grantee to the Company in exercise of the Option shall be
$7.97 per share (the “Option Price”), being the Fair Market Value of the Common Stock of the Company on the Grant Date as determined in accordance with the Plan. Upon exercise of the Option, the Grantee shall pay to the Company, in
full, the Option Price for the shares of Common Stock issuable pursuant to such exercise with cash, check payable to the Company or Common Stock (valued at Fair Market Value on the date of such exercise), including shares of Common Stock Grantee is
entitled to receive upon exercise of the Option. The Company may issue only such number of shares of Common Stock net of the number of shares sufficient to satisfy tax-withholding requirements under the Plan or otherwise. 
 3. Vesting Date and Option Term. Grantee shall be entitled to exercise that portion of the Option becoming vested pursuant to the schedule
set forth below. Grantee shall be entitled to exercise the Option beginning on the applicable “Vesting Date” set forth below for that number of shares of Common Stock determined by multiplying the aggregate number of shares set forth in
paragraph (1) hereof by the applicable “Vesting Percentage” set forth below. Any Option which remains unexercised on the 5th anniversary of the Grant Date shall expire (the “Option Term”). 
  

							
	 Vesting Date
	  	Vesting
Percentage	 	 	Cumulative Vesting
Percentage	 
	 December 12, 2007
	  	33	%	 	33	%
	 December 12, 2008
	  	33	%	 	66	%
	 December 12, 2009
	  	34	%	 	100	%

  

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 4. Change in Control. Notwithstanding paragraph (3) hereof, upon a Change in Control
(as defined hereinafter), all unvested portions of the Option shall automatically vest. For purposes hereof, a “Change in Control” shall have occurred if (i) any “person” or “group” (as such terms are
used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
more than 50% of the total voting power of the outstanding capital stock of the Company; (ii) the Company enters into an agreement to merge or consolidate, or is merged with or into or consolidated, with another person or group and, immediately
after giving effect to the merger or consolidation, (x) less than 50% of the total voting power of the outstanding capital stock of the surviving or resulting person or group is then “beneficially owned” (within the meaning of Rule
13d-3 under the Exchange Act) in the aggregate by the stockholders of the Company immediately prior to such merger or consolidation, or (y) any “person” or “group” (as defined in Section 13(d)(3) or 14(d)(2) of the
Exchange Act) has become the direct or indirect “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of more than 50% of the total voting power of the outstanding capital stock of the surviving or resulting person or group;
(iii) the Company agrees to sell, assign, convey, transfer, lease or otherwise dispose of all or substantially all of the Company’s assets (either in one transaction or a series of related transactions) or enters into an agreement to do
any of the foregoing; (iv) during any consecutive two-year period, individuals who at the beginning of such period constituted the Board of Directors of the Company (together with any new directors whose election by such Board of Directors or
whose nomination for election by the stockholders of the Company was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the Board of Directors of the Company then in office; or (v) the liquidation or dissolution of the Company. 
 5. Termination of Employment upon Death. Notwithstanding paragraph (3) hereof and subject to Section 2.7 of the Plan, in the
event Grantee’s employment with the Company is terminated due to the death of Grantee, all unvested portions of the Option shall automatically vest and shall be exercisable until the earlier of (a) the remaining term of the Option under
paragraph (3), and (b) one year following the date of death. 
 6. Termination of Employment upon Disability or
Retirement. Notwithstanding paragraph (3) hereof and subject to Section 2.7 of the Plan, in the event Grantee’s employment with the Company is terminated due to the disability or retirement of Grantee, all unvested portions of
the Option shall automatically vest and shall be exercisable until the earlier of (a) the remaining term of the Option under paragraph (3), and (b) one year following the effective date of termination. For purposes hereof, disability of
Grantee shall be the physical or mental inability of Grantee to carry out the normal and usual duties of his employment on a full-time basis for an entire period of 120 continuous days together with the reasonable likelihood as determined by the
Plan Administrator that Grantee, upon the advice of a qualified physician, will be unable to carry out the normal and usual duties of his employment. 
 7. Termination of Employment for Cause. Notwithstanding paragraph (3) hereof and subject to Section 2.7 of the Plan, if Grantee’s employment is terminated “for cause,” upon
written Notice of Termination for cause given by the Company to Grantee, the Option granted 

  

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hereunder shall terminate and Grantee shall no longer have the right and option to purchase from the Company any vested or unvested portion of the Option. As
used herein, “for cause” shall mean any of the following events: (i) willful misconduct or intentional and continual neglect of duties which in the business judgment of the Board of Directors (excluding Grantee) has materially
adversely affected the Company; provided, however, that Grantee shall have first received written notice from such Board of Directors advising Grantee of the acts or omissions that constitute the misconduct or neglect of duties, and such misconduct
or neglect of duties continues after Grantee shall have had a reasonable opportunity to correct the same; (ii) the commission by the Grantee of an act of fraud or embezzlement; (iii) the commission by the Grantee of any other action with
the intent to injure the Company; (iv) theft or conviction of a felony or any crime involving dishonesty or moral turpitude; (v) the Grantee having misappropriated the property of the Company; (vi) the Grantee having willfully
violated any law or regulation relating to the business of the Company which results in material injury to the Company; or (vii) willful and continual failure or refusal to substantially perform employment duties (other than any such failure
resulting from Grantee’s incapacity due to physical or mental illness); provided, however, that Grantee shall have first received written notice from the Board of Directors advising Grantee of the acts or omissions that constitute the failure
or refusal to substantially perform duties, and such failure or refusal continues after Grantee shall have had a reasonable opportunity to correct the same. 
 For purposes of this paragraph, no act, or failure to act, on Grantee’s part shall be considered “willful” unless done, or omitted to be done, by him not in good faith and without reasonable
belief that his action or omission was in the best interest of the Company. Notwithstanding the foregoing, Grantee shall not be deemed to have been terminated for cause without (i) reasonable notice to Grantee setting forth the reasons for the
Company’s intention to terminate for cause and (ii) an opportunity for Grantee, together with his counsel, to be heard before the Board of Directors 
 Termination for cause shall require the vote of a majority of the members of the Company’s Board of Directors, excluding Grantee. 
 8. Termination of Employment for Other Reasons. Notwithstanding paragraph (3) hereof, if the Grantee’s employment with the Company is terminated by the Company other than pursuant to paragraphs
(4), (5), (6) or (7), all vested portions of the Option shall be exercisable until the earlier of (a) the remaining term of the Option under paragraph (3), and (b) 120 days following the effective date of termination. 
 9. No Employment Commitment. Grantee acknowledges that neither the grant of the Options nor the execution of this Agreement by the Company
shall be interpreted or construed as imposing upon the Company an obligation to retain his services for any stated period of time, which employment shall continue to be at the pleasure of the Company at such compensation as it shall determine,
unless otherwise provided in a written employment agreement. 
 10. Grantee’s Agreement. Grantee expressly and
specifically agrees that: 
 (a) With respect to the calendar year in which any portion of the Option is exercised, the Grantee shall include
in his gross income for federal income tax 

  

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purposes the amount, if any, by which the Fair Market Value (as determined in accordance with the Plan) of the Common Stock issuable on the date of exercise
exceeds the option price; and 
 (b) The grant of the Options is special incentive compensation which shall not be taken into account as
“wages” or “salary” in determining the amount of payment or benefit to the Grantee under any pension, thrift, stock or deferred compensation plan of the Company; and 
 (c) On behalf of Grantee’s beneficiary, such grant shall not affect the amount of any life insurance coverage available to such beneficiary under any
life insurance plan covering employees of the Company. 
 11. Other Terms, Conditions and Provisions. The Option herein granted
by the Company to Grantee is granted subject to all of the terms, conditions and provisions of the Plan. Grantee hereby acknowledges receipt of a copy of the Plan and the parties agree that the entire text of such Plan be, and it is, hereby
incorporated herein by reference as fully as if copied herein in full. Reference to such Plan is therefore made for a full description of the rights and methods of exercise of the Option, the adjustments to be made in the event of changes in the
capital structure of the Company, and of all of the other provisions, terms and conditions of the Plan applicable to the Option granted herein. If any of the provisions of this Agreement shall vary from or be in conflict with the Plan, the
provisions of the Plan shall be controlling. All capitalized terms not defined in this Agreement shall have the meaning ascribed to it in the Plan. 
 12. Non-Transferability. The Option granted hereunder is not transferable or assignable by Grantee except by will or the laws of descent and distribution. 
 [Signature page follows] 
  

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 IN WITNESS WHEREOF, this Agreement is executed and entered into effective on the day and year first above
expressed. 
  

									
	ATTEST:	 		 	VAALCO ENERGY, INC.
					
	By:	 	  
	 		 	By:	 	 /s/ Robert L. Gerry, III

		 		 		 		 	Robert L. Gerry, III
		 		 		 		 	Chief Executive Officer
				
		 		 		 	OPTIONEE
				
		 		 		 	  

  

 5Transition Agreement

 Exhibit 10.1 
 TRANSITION AGREEMENT 
 TRANSITION AGREEMENT (this “Agreement”), dated as of
December 14, 2006, among Vestar Capital Partners IV, L.P. (“VCP”), Vestar Cup Investment, LLC (“Vestar Investment”), Vestar Cup Investment II, LLC (“Vestar Investment II”) and SCC Holding Company LLC
(“Holdings LLC”) (collectively, the “Stockholders”) and Solo Cup Investment Corporation (the “Company”) and Solo Cup Company (“Solo Cup”). 
 W I T N E S S E T H: 
 WHEREAS, as of the date hereof, VCP, Vestar
Investment, Vestar Cup Investment II and Holdings LLC are the holders of substantially all of the outstanding shares of voting stock of the Company and other outstanding securities exercisable or exchangeable for or convertible into voting stock of
the Company; 
 WHEREAS, the parties hereto wish to enter into certain agreements in connection with the transition of control of the Board
of Directors of the Company (the “Board”) and the Board of Directors of Solo Cup (the “Solo Cup Board”); and 
 WHEREAS,
for purposes of this Agreement, any term not defined herein shall have the meaning assigned to such defined term in the Stockholders’ Agreement, dated as of February 27, 2004 (the “Stockholders’ Agreement”), among the
parties hereto and the Management Investors; 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the
parties hereto agree as follows: 
 Section 1. Board Changes. The parties hereto acknowledge and agree: (i) that the Company
will substantially underperform within the meaning of Section 2(f)(iv) of the Stockholders’ Agreement and Section 4(d) of the Certificate of Designations for the year ending December 31, 2006 and (ii) that VCP will be
entitled at that time to appoint additional directors to certain boards of directors as provided in Section 2(f) of the Stockholders’ Agreement and Section 4(d) of the Certificate of Designations. In order to provide for an orderly
transition, the parties hereto agree to take all such actions as are reasonably necessary to cause a duly convened meeting of the Board and the Solo Cup Board to occur on or before December 20, 2006, at which meetings the changes to the
composition of the Board and the Solo Cup Board contemplated by Section 2.1(f) of the Stockholders’ Agreement and Section 4(d) of the Certificate of Designations shall occur. For the avoidance of doubt, after giving effect to the
election of such Additional VCP Directors and any resignations of Holdings LLC Directors, the VCP Directors shall constitute a majority of each of the Board and the Solo Cup Board, and the parties hereto agree that the implementation of the
provisions of this paragraph shall for all purposes under the Stockholders’ Agreement and the Certificate of Designations constitute the valid exercise of the rights of VCP under Section 2(f) of the Stockholders’ Agreement and
Section 4(d) of the Certificate of Designations. At such meeting, (i) Robert L. Hulseman shall resign as Chairman of the Board and Chairman of the Solo Cup Board and shall be named Chairman Emeritus in each case and (ii) John F.
Hulseman shall resign as Vice Chairman of the Board and Vice Chairman of the Solo Cup Board and shall be named Vice Chairman Emeritus in each case. 
 Section 2. Compensation to Solo Family Members. From the date hereof through December 31, 2006, no changes shall be made in the compensation (whether in the form of salary, bonuses, benefits, reimbursement of personal
expenses or otherwise) paid by 

 
Solo Cup to Solo Family Members. On and after January 1, 2007, (i) the salary paid to each Solo Family Member who is employed by Solo Cup (other
than Robert L. Hulseman and John F. Hulseman, whose salaries will be adjusted as described below in this Section) may be adjusted, if necessary after review and determination by the Chief Executive Officer of Solo Cup, to be commensurate with
salaries being paid to employees holding similar positions in Solo Cup; (ii) the health benefits, life insurance benefits and reimbursement of personal expenses to be received by Solo Family Members who are employees of Solo Cup shall in each
case be commensurate with the health benefits, life insurance benefits and reimbursement being provided to the executive officers of Solo Cup from time to time; and (iii) the Solo Family Members shall be subject to the same employee policies
(e.g. vacation, automobile, 401K) as applied to the employees of Solo Cup that hold similar positions from time to time. On and after January 1, 2007, the Company shall pay total annual compensation on a quarterly basis to (i) Robert L.
Hulseman for his role as Chairman Emeritus $114,000 plus any amounts less than $937,000 that the Company pays in annual salaries and bonuses (including any severance paid in lieu of salary) to any lineal descendants of Robert L. Hulseman or their
spouses and (ii) John F. Hulseman for his role as Vice Chairman Emeritus $114,000 plus any amounts less than $335,000 that the Company pays in annual salaries and bonuses (including any severance paid in lieu of salary) to any lineal
descendants of John F. Hulseman or their spouses. The maximum total annual compensation in the preceding sentence shall equal $1,500,000. On and after January 1, 2007, (i) no amounts shall be paid and no health benefits provided to Solo
Family Members who have previously been compensated as consultants to Solo Cup and (ii) tax preparation work for the Solo Family Members shall no longer be provided by Solo Cup. Notwithstanding the provisions of clause (ii) in the second
sentence and clause (i) in the fourth sentence of this Section, health benefits will continue to be provided to such persons as are covered under the existing health insurance plan as of the date hereof until the earlier of (i) the date
that Solo Cup is ready and able to transition the executives of Solo Cup to the Solo health benefit plan available to all Solo employees or (ii) March 31, 2007. In the event that any Solo Family Member is terminated by Solo Cup with or
without cause, such Solo Family Member shall be provided with severance benefits as applicable under Solo Cup’s then existing severance policy taking into account such person’s position and years of service with Solo Cup; provided
however, that such severance benefits shall not be for less than six months. On and after January 1, 2007 and (i) until the earlier of December 31, 2008 or the death, resignation or incapacity of Robert L. Hulseman, Robert L.
Hulseman shall be provided by the Company with office space and secretarial services; and (ii) until the termination of this Agreement, Robert L. Hulseman shall be provided by the Company with an automobile consistent with terms of the
Company’s policies related thereto as of the date hereof; provided, however, that he shall utilize his current automobile until December 31, 2007. If Robert L. Hulseman dies, resigns or becomes incapacitated, then Sheila M. Hulseman or his
or her designee shall become Chairman Emeritus and shall receive the same annual compensation that Robert L. Hulseman would receive under this Section. If John F. Hulseman dies, resigns or becomes incapacitated, then Georgia S. Hulseman or his or
her designee shall become Vice Chairman Emeritus and shall receive the same annual compensation that John F. Hulseman would receive under this Section. 
 Section 3. Miscellaneous. 
 3.1 Other Agreements. Neither the Stockholders nor the Company
shall enter into any agreement or other arrangement of any kind which is inconsistent with the provisions of this Agreement or which may impair its ability to comply with this Agreement. This Agreement shall terminate on the date that Article II of
the Stockholders’ Agreement terminates pursuant to its terms. The parties 

  

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hereto agree that the approval of Holdings LLC shall not be required under Section 2(g) of the Stockholders’ Agreement for any rendering of
services to the Company, Solo Cup or their subsidiaries by any Affiliate of VCP so long as no compensation is payable by the Company, Solo Cup or their subsidiaries in connection with those services by VCP or any of its Affiliates. 
 3.2 Amendments. This Agreement may be amended only by a written instrument signed (a) by VCP, so long as it (or its Affiliates) owns any
Equity Securities and (b) by Holdings LLC, so long as it (or its Affiliates) owns any Equity Securities; provided, however, that any amendment which adversely affects the Company or Solo Cup or imposes an additional obligation thereon
must be approved in writing by the Company or Solo Cup respectively. 
 3.3 Notices. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered by hand, or three days after being delivered to a
recognized courier (whose stated terms of delivery are three days or less to the destination of such notice) or, in the case of telecopy notice, when received, addressed as follows to the parties hereto, or to such other address as may be thereafter
notified by the respective parties hereto: If to VCP, Vestar Investment or Vestar Investment II, to: 
  

	
	 Vestar Capital Partners IV, L.P.

	245 Park Avenue
	41st Floor
	New York, New York 10167-4098
	Attention: Norman Alpert
	 Jack M. Feder

	Telecopy: (212) 808-4922
	
	if to Holdings LLC:
	
	SCC Holding Company LLC
	1700 Old Deerfield Road
	Highland Park, Illinois 60035
	Attention: Robert L. Hulseman
	Telecopy: (847) 831-5849
	
	with a copy to:
	
	Winston & Strawn LLP
	35 W. Wacker Drive
	Chicago, Illinois 60601
	Attention: Robert F. Wall
	Telecopy: (312) 558-5700

  

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	if to the Company or Solo Cup:
	
	Solo Cup Investment Corporation
	1700 Old Deerfield Road
	Highland Park, Illinois 60035
	Attention: Jan S. Reed
	Telecopy: (847) 831-5849
	
	with a copy to:
	
	Skadden, Arps, Slate, Meagher & Flom LLP
	333 West Wacker Drive
	Chicago, Illinois 60606
	Attention: William R. Kunkel
	Telecopy: (312) 407-0411

 3.4 Further Assurances. At any time or from time to time after the date hereof, the parties
agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate
the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder. 
 3.5
Enforcement. Each party hereto acknowledges that money damages would not be an adequate remedy in the event that any of the covenants or agreements in this Agreement are not performed in accordance with its terms, and it is therefore agreed
that in addition to and without limiting any other remedy or right it may have, the non-breaching party will have the right to an injunction, temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any
such breach and enforcing specifically the terms and provisions hereof. 
 3.6 Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. This Agreement may be executed by facsimile signature. 
 3.7 Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable
to contracts made and to be performed therein, except for matters directly within the purview of the General Corporation Law of the State of Delaware (the “DGCL”), which shall be governed by the DGCL. The parties executing this
Agreement agree to submit to the non-exclusive jurisdiction of the federal and state courts located in the State of New York in any action or proceeding arising out of or relating to this Agreement. 
  

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 IN WITNESS WHEREOF, each of the undersigned has executed this Agreement or caused this Agreement to be
executed on its behalf as of the date first written above. 
  

			
	SCC HOLDING COMPANY LLC
		
	By:	 	 /s/ Robert L. Hulseman

	Name:	 	Robert L. Hulseman
		
	By:	 	 /s/ John F. Hulseman

	Name:	 	John F. Hulseman
	
	VESTAR CAPITAL PARTNERS IV, L.P.
		
	By:	 	 Vestar Associates IV, L.P.,
 its general
partner

		
	By:	 	 Vestar Associates Corporation IV,
 its general
partner

		
	By:	 	 /s/ Norman W. Alpert

	Name:	 	Norman W. Alpert
	Title:	 	Managing Director

  

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	VESTAR CUP INVESTMENT, LLC
		
	By:	 	 Vestar Capital Partners IV, L.P.,
 its managing
member

		
	By:	 	 Vestar Associates IV, L.P.
 its general
partner

	
	Solely with respect to Sections 2 and 3:
		
	By:	 	Vestar Associates Corporation IV, its general partner
		
	By:	 	 /s/ Norman W. Alpert

	Name:	 	Norman W. Alpert
	Title:	 	Managing Director
	
	VESTAR CUP INVESTMENT II, LLC
		
	By:	 	 Vestar Capital Partners IV, L.P.,
 its managing
member

		
	By:	 	 Vestar Associates Corporation IV,
 its general
partner

		
	By:	 	 /s/ Norman W. Alpert

	Name:	 	Norman W. Alpert
	Title:	 	Managing Director

  

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	SOLO CUP INVESTMENT CORPORATION
		
	By:	 	 /s/ Robert M. Korzenski

	Name:	 	Robert M. Korzenski
	Title:	 	Chief Executive Officer and President
	
	SOLO CUP COMPANY
		
	By:	 	 /s/ Robert M. Korzenski

	Name:	 	Robert M. Korzenski
	Title:	 	Chief Executive Officer and President

  

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