Document:

Exhibit 101

		
			EMPLOYMENT AGREEMENT
		

		
			THIS EMPLOYMENT AGREEMENT (the “Agreement”), effective as of November 17, 2015 (the “Effective Date”), is made and entered into by and between VAALCO Energy, Inc., a Delaware corporation (hereafter “Company”) and Gregory Hullinger (hereafter “Executive”).  The Company and Executive may sometimes hereafter be referred to singularly as a “Party” or collectively as the “Parties.”
		

		
			W I T N E S S E T H:
		

		
			WHEREAS, the Company desires to continue to secure the employment services of Executive subject to the terms and conditions hereafter set forth; and
		

		
			WHEREAS, Executive is willing to enter into this Agreement upon the terms and conditions hereafter set forth;
		

		
			NOW, THEREFORE, in consideration of Executive’s employment with the Company, and the mutual promises, covenants and obligations contained herein, the Parties hereby agree as follows:
		

		
			ARTICLE 1
		

		
			EMPLOYMENT AND DUTIES
		

		
			1.1Definitions.  In addition to the terms defined in the text hereof, terms with initial capital letters as used herein have the meanings assigned to them, for all purposes of this Agreement, in the Definitions Appendix hereto, unless the context reasonably requires a broader, narrower or different meaning.  The Definitions Appendix, as attached hereto, is part of this Agreement and incorporated herein.
		

		
			1.2Employment; Effective Date.  Effective as of the Effective Date and continuing for the Employment Period (as defined in Section 2.1), the Executive’s employment by the Company shall be subject to the terms and conditions of this Agreement.
		

		
			1.3Positions.  As of the filing with the Securities and Exchange Commission of the Company’s Quarterly Report on Form 10-Q for the quarter ending September 30, 2015, the Executive will serve as the Company’s Finance and Accounting Senior Advisor. Executive shall be subject to direction, oversight and supervision provided by the CEO or the Board.
		

		
			Beginning on January 1, 2016 (the “Status Change Date”) through the Termination Date as defined in Section 2.1 (the “Transition Period”), Employee shall be considered a full-time employee of the Company but is only required to work in the Company’s offices at least twenty percent (20%) of his previous normal work schedule for the Company, as such schedule was effective immediately prior to the Status Change Date (unless otherwise mutually agreed between the Employee and Company), and be available on request by telephone for the remainder of his previous normal work schedule.  During the Transition Period while still employed by the Company, Employee shall, unless otherwise provided by this Agreement, (a) be entitled to receive his salary and benefits as in effect immediately prior to the Status Change 
		

		 

		

			 

		

		

			

		

 

		Date, and (b) perform such job duties as are directed by the CEO or the Board, including, without limitation, providing training and other assistance to any Person who is assuming any of his job duties for the Company or any of its Affiliates after the Transition Period.
		

		
			1.4Duties and Services.  The Executive agrees to serve in the position referred to in Section 1.3,  and to perform diligently and to the best of his abilities the duties and services appertaining to such position, as well as such additional duties and services that are assigned to him by the CEO and/or Board.  The Executive’s employment shall also be subject to the policies maintained and established by the Company from time to time, as the same may be amended or otherwise modified by the Company in its discretion.
		

		
			Executive shall at all times use his best efforts to in good faith comply with United States and foreign laws applicable to Executive’s actions on behalf of the Company and its Affiliates.  Executive understands and agrees that he may be required to travel at times for purposes of the Company’s business.
		

		
			1.5Other Interests.  The Executive agrees that, during the Employment Period, he will devote his primary business time, energy and best efforts to the business and affairs of the Company and its Affiliates, and not to engage, directly or indirectly, in any other business or businesses, whether or not similar to that of the Company or an Affiliate, except with the consent of the CEO or the Board.
		

		
			1.6Duty of Loyalty.  The Executive acknowledges and agrees that he owes a fiduciary duty of loyalty, fidelity, and allegiance to use his best efforts to act at all times in the best interests of the Company and its Affiliates.  In keeping with these duties, the Executive shall make full disclosure to the Company of all business opportunities pertaining to the Company’s business, and he shall not appropriate for his own benefit any business opportunity concerning the subject matter of such fiduciary relationship.
		

		
			ARTICLE 2
		

		
			TERM AND TERMINATION OF EMPLOYMENT
		

		
			2.1Term of Employment.  Unless sooner terminated by either Party, the Company agrees to continue to employ the Executive for the period beginning on the Effective Date and ending on March 15, 2016 (the “Term of Employment”).  The Company and Executive shall each have the right to give a notice of termination at will, with or without cause, at any time, subject to the terms and conditions of this Agreement regarding the rights and duties of the Parties upon termination of employment.
		

		
			The entire period from the Effective Date through the date of Executive’s termination of employment with the Company for whatever reason (the “Termination Date”), shall be referred to herein as the “Employment Period.”
		

		
			2.2Notice of Termination.  If the Company or the Executive desires to terminate the Executive’s employment hereunder at any time for any reason, such Party shall do so by giving written notice of termination to the other Party; provided, however, that no such action shall amend any provision of this Agreement without the consent of each Party.
		

		

		

		 

 

		2.3Resignations.  Upon the termination of the Executive’s employment hereunder for any reason, unless otherwise requested by the CEO or the Board, Executive shall immediately resign from all officer positions and all boards of directors or committees of the Company or any Affiliates of which he is a member.  The Executive hereby agrees to execute any and all documentation of such resignations upon request by the Company, but he shall be treated for all purposes as having so resigned upon termination of his employment, regardless of when or whether he executes any such documentation.
		

		
			ARTICLE 3
		

		
			COMPENSATION AND BENEFITS
		

		
			3.1Base Salary.  During the Employment Period, the Executive shall receive a base salary of $27,897.40 per month, which shall be prorated for any period of less than one month (the “Base Salary”).  The Base Salary shall be paid in installments in accordance with the Company’s standard payroll policy.
		

		
			3.2Annual Bonuses.  For the 2015 calendar year during the Employment Period, the Executive shall be eligible to receive an annual cash bonus (the “2015 Annual Bonus”) under the Company’s annual incentive cash bonus plan for executives (the “2015 Bonus Plan”), in an amount and at a time to be determined by the Compensation Committee, based on the corporate performance goals established by the Compensation Committee, in its discretion, at the start of the year pursuant to the terms of the 2015 Bonus Plan.  Under the 2015 Bonus Plan, Executive’s 2015 Annual Bonus shall equal sixty-eight percent (68%) of the Executive’s 2015 annual base salary multiplied by the greater of (a) fifty percent (50%) and (b) the percentage established by the Compensation Committee as the Company’s corporate performance under the 2015 Bonus Plan. 
		

		
			In the event that the Employment Period ends before December 31, 2015, Executive shall be entitled to a prorata portion of the 2015 Annual Bonus, as calculated in the prior paragraph. Executive shall not be entitled to any bonus for the 2016 calendar year. 
		

		
			3.3Equity Awards after the Effective Date.  During the Employment Period on and after the Effective Date, the Executive shall not be eligible for any new grants of restricted stock awards, restricted stock units, stock options or other equity  incentive awards from the Company.
		

		
			3.4Business and Entertainment Expenses.  Subject to the Company’s standard policies and procedures with respect to expense reimbursement as applied to its executives generally, the Company shall reimburse the Executive for, or pay on behalf of the Executive, the reasonable and appropriate expenses that are incurred by the Executive in furtherance of the Company’s business.
		

		
			3.5Vacation.  During the Term of Employment, the Executive shall be entitled to use her remaining accrued but unused days of paid vacation for the remainder of the 2015 calendar year, in accordance with the Company’s vacation policy, and any accrued but unused days of paid vacation remaining at December 31, 2015 shall be handled in accordance with the Company’s vacation policy and practices.  Executive shall not be entitled to any paid vacation days for the 2016 calendar year.
		

		

		

		 

 

		3.6Employee and Executive Benefits Generally.  During the Employment Period, the Executive shall be eligible for participation in the employee and fringe benefits plans and programs that Company provides generally to its employees, including without limitation, retirement, medical, dental, disability and life insurance plans, as in effect from time to time; provided, however, that the Executive acknowledges and agrees that he shall not be a participant in, and he hereby waives any right to participate in, any severance plan (as the same may be amended from time to time) that generally covers the employees of the Company or its Affiliates.
		

		
			ARTICLE 4
		
RIGHTS AND PAYMENTS UPON TERMINATION
		
			.
		

		
			4.1Rights and Payments upon Termination.  Executive’s right to compensation and benefits for periods after the date on which his employment terminates with the Company and all Affiliates (the “Termination Date”) shall be determined in accordance with the Confidential Separation and Release Agreement (the “Separation Agreement”), as set out in Appendix B hereto.
		

		
			4.2No Duplication of Severance Benefits.    Notwithstanding Section 4.1, if Executive receives or is entitled to receive any severance benefit under any change of control or severance benefits plan, policy, or agreement of the Company or any Affiliate, the amount payable under the Separation Agreement to or on behalf of Executive shall be offset by such other severance benefits payable to or on behalf of Executive.
		

		
			4.3Separation Agreement.  In order to receive the termination benefits described in the Separation Agreement following the Termination Date,  Executive must first execute the Separation Agreement in substantially the same form as attached hereto as Appendix  B, together with any changes thereto that the Company and Executive mutually deem to be necessary or appropriate to satisfy any applicable law or regulation.
		

		
			No termination benefits shall be payable or provided by the Company under the Separation Agreement unless and until the Separation Agreement has been executed by Executive, has not been revoked, and is no longer subject to revocation by Executive.  In addition, Executive shall not be entitled to receive any termination benefits as provided under the Separation Agreement if he is terminated for theft, intentional misconduct, or gross negligence in the performance of his duties for the Company or its Affiliate.
		

		
			ARTICLE 5
		

		
			CONFIDENTIAL INFORMATION AND RESTRICTIVE COVENANTS
		

		
			5.1Access to Confidential Information.  In connection with his employment and continuing on an ongoing basis during the Employment Period, the Company and its Affiliates will give Executive access to Confidential Information, which Executive did not have access to or knowledge of before the Execution Date.  Executive acknowledges and agrees that all Confidential Information is confidential and a valuable, special and unique asset of the Company that gives the Company an advantage over its actual and potential, current and future 
		

		 

 

		competitors.  Executive further acknowledges and agrees that Executive owes the Company a fiduciary duty to preserve and protect all Confidential Information from unauthorized disclosure or unauthorized use, that certain Confidential Information constitutes “trade secrets” under applicable laws, and that unauthorized disclosure or unauthorized use of any Confidential Information would irreparably injure the Company or its Affiliate.
		

		
			5.2Agreement Not to Use or Disclose Confidential Information.  Both during the term of Executive’s employment and after his termination of employment for any reason (including wrongful termination), Executive shall hold all Confidential Information in strict confidence, and shall not use any Confidential Information except for the benefit of the Company or its Affiliates, in accordance with the duties assigned to Executive.  Executive shall not, at any time (either during or after the term of Executive’s employment), disclose any Confidential Information to any Person (except other Persons who have a need to know the information in connection with the performance of services for the Company or an Affiliate), or copy, reproduce, modify, decompile or reverse engineer any Confidential Information, or remove any Confidential Information from the Company’s premises, without the prior written consent of the CEO or the Board, or their delegates, or permit any other Person to do so.  Executive shall take reasonable precautions to protect the physical security of all documents and other material containing Confidential Information (regardless of the medium on which the Confidential Information is stored).  This agreement and covenant applies to all Confidential Information, whether now known or later to become known to Executive.
		

		
			The Executive shall hold in a fiduciary capacity for the benefit of the Company and its Affiliates, all Confidential Information that has been obtained by the Executive during his employment,  and which is not public knowledge (other than by acts of the Executive or his representatives in violation of this Agreement).
		

		
			Following the termination of the Executive’s employment with the Company for any reason, the Executive shall not, without the prior written consent of the Company or as may otherwise be required by compulsion of law or other legal process, communicate or divulge any Confidential Information to any Person other than to the Company and those designated by it.
		

		
			The Company has and will disclose to the Executive, or place the Executive in a position to have access to or develop, trade secrets and other Confidential Information of the Company or its Affiliates.  As part of the consideration for this Agreement, and to protect the Confidential Information that has been and will in the future be disclosed or entrusted to Executive, the Company and the Executive have agreed to the confidentiality obligations set forth in this Agreement and they also hereby ratify and confirm any other confidentiality policy of the Company that covers Executive.
		

		
			5.3Duty to Return Company Documents and Property.  Upon the termination of Executive’s employment with the Company and its Affiliates for whatever reason, Executive shall immediately return and deliver to the Company any and all papers, books, records, documents, memoranda and manuals, e-mail, electronic or magnetic recordings or data, including all copies thereof, belonging to the Company or an Affiliate or relating to their businesses, in Executive’s possession or under his control, and regardless of whether prepared by Executive or others.
		

		

		

		 

 

		Within one (1) Business Day after the end of the Employment Period for whatever reason, the Executive shall return to Company all Confidential Information which is in his possession, custody or control.  If at any time after the Employment Period, Executive determines that he has any Confidential Information in his possession or under his control, he shall immediately return it to the Company, including all copies (including electronic versions) and portions thereof.
		

		
			5.4Further Disclosure.    Executive shall promptly disclose to the Company all ideas, inventions, computer programs, and discoveries, whether or not patentable or copyrightable, which he may conceive or make, alone or with others, during the Employment Period, whether or not during working hours, and which directly or indirectly:
		

		
			(a)relate to matters within the scope, field, duties or responsibility of Executive’s employment with the Company; or
		

		
			(b)are based on any knowledge of the actual or anticipated business or interest of the Company; or
		

		
			(c)are aided by the use of time, materials, facilities or information of the Company.
		

		
			Executive assigns to the Company, without further compensation, all rights, titles and interest in all such ideas, inventions, computer programs and discoveries in all countries of the world.  Executive recognizes that all ideas, inventions, computer programs and discoveries of the type described above, conceived or made by Executive alone or with others within six (6) months after termination of employment (voluntary or otherwise), are likely to have been conceived in significant part either while employed by the Company or as a direct result of knowledge Executive had of Confidential Information.  Accordingly, Executive agrees that such ideas, inventions or discoveries shall be presumed to have been conceived during his employment with the Company, unless and until the contrary is clearly established by Executive.
		

		
			5.5Non-Solicitation Restriction.  To protect the Confidential Information, and in the event of Executive’s termination of employment for whatever reason, it is necessary to enter into the following restrictive covenants which are ancillary to the enforceable promises between the Company and Executive in this Agreement.  Executive hereby covenants and agrees that he will not, directly or indirectly, either individually or on behalf of any other Person, or in any other manner or capacity whatsoever, except on behalf of the Company or an Affiliate, solicit business, or attempt to solicit business, in products or services competitive with any products or services provided by the Company or any Affiliate, from the Company’s or Affiliate’s partners or clients (or any prospective partner or client) as of the Termination Date, or any other Person with whom the Company or Affiliate did business, or had a business relationship with, within the one (1) year period immediately preceding the Termination Date.
		

		
			5.6No-Recruitment Restriction.  The Executive shall not, directly or indirectly, for himself or any other Person, induce any employee of the Company of any of its Affiliates to terminate his or her employment with the Company or such Affiliates, or hire or assist in the hiring of any such employee by any Person not affiliated with the Company, unless such 
		

		 

 

		employee has terminated employment with the Company and its Affiliates for at least sixty (60) days before such initial solicitation.  These nonsolicitation obligations shall apply during the period that the Executive is employed by the Company and during the one-year period commencing on the Termination Date.  Notwithstanding the foregoing, the provisions of this Section 5.6 shall not restrict the ability of the Company or its Affiliates to take any action with respect to the employment or the termination of employment of any of its employees, or for the Executive to participate in his capacity as an officer of the Company.
		

		
			5.7Reserved.
		

		
			5.8Reformation.  It is expressly understood and agreed that the Company and the Executive consider the restrictions contained in this Article 5 to be reasonable and necessary to protect the Confidential Information and the reasonable business interests of the Company or its Affiliates.  Nevertheless, if any of the aforesaid restrictions are found by a court having jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise unenforceable, the Parties intend for the restrictions therein set forth to be modified by such court so as to be reasonable and enforceable and, as so modified, to be fully enforced in the geographic area and for the time period to the full extent permitted by law.
		

		
			5.9Conflicts of Interest.  In keeping with his fiduciary duties to Company, Executive hereby agrees that he shall not become involved in a conflict of interest, or upon discovery thereof, allow such a conflict to continue at any time during the Employment Period.  Moreover, Executive agrees that he shall abide by the Company’s Code of Conduct, as it may be amended from time to time, and immediately disclose to the CEO or Board any known facts which might involve a conflict of interest of which the CEO or Board was not aware.
		

		
			5.10Remedies.  Executive acknowledges that the restrictions contained in this Article 5, in view of the nature of the Company’s business, are reasonable and necessary to protect the Company’s legitimate business interests, and that any violation of this Agreement could result in irreparable injury to the Company.  In the event of a breach or a threatened breach by Executive of any provision of Article 5, the Company shall be entitled to a temporary restraining order and injunctive relief restraining Executive from the commission of any breach, and to recover the Company’s attorneys’ fees, costs and expenses related to the breach or threatened breach.  Nothing contained in this Agreement shall be construed as prohibiting the Company from pursuing any other remedies available to it for any such breach or threatened breach, including, without limitation, the recovery of money damages, attorneys’ fees, and costs.  These covenants and disclosures shall each be construed as independent of any other provisions in this Agreement, and the existence of any claim or cause of action by Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of such covenants and agreements.
		

		
			The Executive acknowledges that money damages may not be sufficient remedy for any breach of Article 5 by the Executive, and the Company shall also be entitled to specific performance as an available remedy for any such breach or any threatened breach.  The remedies provided in this Section 5.10 shall not be deemed the exclusive remedies for a breach of Article 5, but shall be in addition to all remedies available at law or in equity.
		

		

		

		 

 

		5.11No Disparaging Comments.  Executive and the Company shall refrain from any criticisms or disparaging comments about each other or in any way relating to Executive’s employment or separation from employment; provided, however, that nothing in this Agreement shall apply to or restrict in any way the communication of information by the Company or any of its Affiliates, or by the Executive, to any state or federal law enforcement agency.  The Company and Executive will not be in breach of this covenant solely by reason of testimony or disclosure that is required for compliance with applicable law or regulation or by compulsion of law.  A violation or threatened violation of this prohibition may be enjoined by a court of competent jurisdiction.  The rights under this provision are in addition to any and all rights and remedies otherwise afforded by law to the Parties.
		

		
			Executive acknowledges that in executing this Agreement, he has knowingly, voluntarily, and intelligently waived any free speech, free association, free press or First Amendment to the United States Constitution (including, without limitation, any counterpart or similar provision or right under the Texas Constitution or any other state constitution which may be deemed to apply) rights to disclose, communicate, or publish disparaging information or comments concerning or related to the Company or its Affiliate; provided, however, nothing in this Agreement shall be deemed to prevent Executive from testifying fully and truthfully in response to a subpoena from any court or from responding to an investigative inquiry from any governmental agency.
		

		
			ARTICLE 6
		

		
			GENERAL PROVISIONS
		

		
			6.1Matters Relating to Section 409A of the Code.  If the payment of any compensation or other benefit provided under this Agreement or the Separation Agreement would be subject to additional taxes and interest under Section 409A of the Code (“Section 409A”), then such provision is intended to be written, administered, interpreted and construed in a manner such that no such benefit becomes subject to (a) the gross income inclusion under Section 409A or (b) the interest and additional tax under Section 409A (collectively, “Section 409A Penalties”), including, where appropriate, the construction of defined terms to have meanings that would not cause the imposition of the Section 409A Penalties.  If any provision of this Agreement would cause Executive to incur the Section 409A Penalties, the Company may, after consulting with Executive, reform such provision to comply with Section 409A or to preclude imposition of the Section 409A Penalties, to the full extent permitted under Section 409A as determined by the Company.
		

		
			6.2Withholdings; Right of Offset.  The Company may withhold and deduct from any benefits and payments made or to be made pursuant to this Agreement (a) all federal, state, local, foreign, and other taxes as may be required pursuant to any law or governmental regulation or ruling, (b) all other normal employee deductions made with respect to Company’s employees generally, and (c) any advances made to Executive and owed to Company.
		

		
			6.3Nonalienation.  The right to receive payments under this Agreement shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance by Executive, his dependents or beneficiaries, or to any other Person who is or may become entitled to receive such payments hereunder.  The right to receive payments hereunder 
		

		 

 

		shall not be subject to or liable for the debts, contracts, liabilities, engagements or torts of any Person who is or may become entitled to receive such payments, nor may the same be subject to attachment or seizure by any creditor of such Person under any circumstances, and any such attempted attachment or seizure shall be void and of no force and effect.
		

		
			6.4Incompetent or Minor Payees.  Should the Compensation Committee determine, in its discretion, that any Person to whom any payment is payable under this Agreement has been determined to be legally incompetent or is a minor, any payment due hereunder, notwithstanding any other provision of this Agreement to the contrary, may be made in any one or more of the following ways:  (a) directly to such Person; (b) to the legal guardian or other duly appointed personal representative of the individual or the estate of such Person; or (c) to such adult or adults as have, in the good faith knowledge of the Compensation Committee, assumed custody and support of such Person; and any payment so made shall constitute full and complete discharge of any liability under this Agreement in respect to the amount paid.
		

		
			6.5Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Company and any successor of the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise), and this Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives.  As used in this Agreement, “Company” shall mean the Company as previously defined and any successor by operation of law or otherwise, as well as any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement.  Except as provided in the preceding provisions of this Section 6.5, this Agreement, and the rights and obligations of the Parties hereunder, are personal in nature and neither this Agreement, nor any right, benefit, or obligation of either Party hereto, shall be subject to voluntary or involuntary assignment, alienation or transfer, whether by operation of law or otherwise, without the written consent of the other Party.
		

		
			6.6Notice.  Each Notice or other communication required or permitted under this Agreement shall be in writing and transmitted, delivered, or sent by personal delivery, prepaid courier or messenger service (whether overnight or same-day), or prepaid certified United States mail (with return receipt requested), addressed (in any case) to the other Party at the address for that Party set forth below or under that Party’s signature on this Agreement, or at such other address as the recipient has designated by Notice to the other Party.
		

		
			To the Company:VAALCO Energy, Inc.
		

		
			9800 Richmond Avenue, Suite 700
		

		
			Houston, Texas  77042
		

		
			Attention:  Eric J. Christ 
		

		
			Vice President, General Counsel & Corporate Secretary
		

		
			To Executive:Gregory Hullinger 
		

		
			(as set forth below his signature)
		

		
			Each Notice or communication so transmitted, delivered, or sent (a) in person, by courier or messenger service, or by certified United States mail (return receipt requested) shall be deemed given, received, and effective on the date delivered to or refused by the intended 
		

		 

 

		recipient (with the return receipt, or the equivalent record of the courier or messenger, being deemed conclusive evidence of delivery or refusal), or (b) by telecopy or facsimile shall be deemed given, received, and effective on the date of actual receipt (with the confirmation of transmission being deemed conclusive evidence of receipt, except where the intended recipient has promptly Notified the other Party that the transmission is illegible). Nevertheless, if the date of delivery or transmission is not a Business Day, or if the delivery or transmission is after 4:00 p.m. (local time at the recipient) on a Business Day, the Notice or other communication shall be deemed given, received, and effective on the next Business Day.
		

		
			6.7Severability.  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 unenforceable by a court of competent jurisdiction, the Parties hereby agree and consent that such provision shall be reformed to create a valid and enforceable provision to the maximum extent permitted by law; provided, however, if such provision cannot be reformed, it shall be deemed ineffective and deleted herefrom without affecting any other provision of this Agreement.  This Agreement should be construed by limiting and reducing it only to the minimum extent necessary to be enforceable under then applicable law.
		

		
			6.8No Third-Party Beneficiaries.  This Agreement shall be binding upon and inure to the benefit of the Parties hereto, and to their respective successors and permitted assigns as provided hereunder, but otherwise this Agreement shall not be for the benefit of any Persons who are third parties.
		

		
			6.9Waiver of Breach.  No waiver by either Party of a breach of any provision of this Agreement by the other Party, or of compliance with any condition or provision of this Agreement to be performed by the other Party, will operate or be construed as a waiver of any subsequent breach by the other Party or any similar or dissimilar provision or condition at the same or any subsequent time.  The failure of either Party to take any action by reason of any breach will not deprive such Party of the right to take action at any time while such breach continues.
		

		
			6.10Survival of Certain Provisions.  Wherever appropriate to the intention of the Parties, the respective rights and obligations of the Parties hereunder shall survive any termination or expiration of this Agreement and following the Termination Date.
		

		
			6.11Entire Agreement; Amendment and Termination.  This Agreement contains the entire agreement of the Parties with respect to the matters covered herein; moreover, this Agreement supersedes all prior and contemporaneous agreements and understandings, oral or written, between the Parties concerning the subject matter hereof.  This Agreement may be amended, waived or terminated only by a written instrument that is identified as an amendment, waiver or termination hereto and that is executed by or on behalf of each Party.
		

		
			6.12Interpretive Matters.  In the interpretation of the Agreement, except where the context otherwise requires:
		

		
			(a)Headings.  The Agreement headings are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.
		

		 

 

		
			(b)The terms “including” and “include” do not denote or imply any limitation.
		

		
			(c)The conjunction “or” has the inclusive meaning “and/or”.
		

		
			(d)The singular includes the plural, and vice versa, and each gender includes each of the others.
		

		
			(e)The term “month” refers to a calendar month.
		

		
			(f)Reference to any statute, rule, or regulation includes any amendment thereto or any statute, rule, or regulation enacted or promulgated in replacement thereof.
		

		
			(g)The words “herein”,  “hereof”,  “hereunder” and other compounds of the word “here” shall refer to the entire Agreement and not to any particular provision;
		

		
			(h)All amounts referenced herein are in U.S. dollars.
		

		
			6.13Governing Law; Jurisdiction.  All matters or issues relating to the interpretation, construction, validity, and enforcement of this Agreement shall be governed by the laws of the State of Texas, without giving effect to any choice-of-law principle that would cause the application of the laws of any jurisdiction other than Texas.  Jurisdiction and venue of any action or proceeding relating to this Agreement shall be exclusively in the federal and state courts of competent jurisdiction in Houston, Texas, and the Parties hereby waive any objection to such venue including, without limitation, that it is inconvenient.
		

		
			6.14Executive Acknowledgment.    Executive 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 prior to execution, and (d) no strict rules of construction shall apply for or against the drafter or any other Party.  Executive represents that he is free to enter into this Agreement including, without limitation, that he is not subject to any covenant not to compete or other restrictive covenant that would conflict with his employment duties and covenants under this Agreement.
		

		
			6.15Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument.  Each counterpart may consist of a copy hereof containing multiple signature pages, each signed by one Party hereto, but together signed by both Parties.
		

		
			 
		

		
			[Signature page follows.]
		

		
			 
		

		

		

		 

 

		IN WITNESS WHEREOF, Executive has hereunto set his hand and Company has caused this Agreement to be executed in its name and on its behalf by its duly authorized officer, to be effective as of the Effective Date.
		

		
			WITNESS:EXECUTIVE:
		

		
			 
		

		
			Signature: /s/ Eric J. ChristSignature: /s/ Gregory Hullinger
		

		
			Name:Eric J. ChristName:Gregory Hullinger 
		

		
			Date:November 17, 2015Date:November 17, 2015 
		

		
			 
		

		
			Executive’s Address for Notices:
		

		
			Mr. Gregory Hullinger
		

		
			 
		

		
			 
		

		
			 
		

		
			ATTEST:COMPANY:
		

		
			VAALCO ENERGY, INC.
		

		
			 
		

		
			By: /s/ Eric J. ChristBy: /s/ Steven P. Guidry
		

		
			Name: Eric J. ChristName: Steven P. Guidry 
		

		
			Date:November 17, 2015Title: Chief Executive Officer
		

		
			Date:  November 17, 2015
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

 

		APPENDIX A
		

		
			Definitions Appendix
		

		
			1.“Affiliate” has the same meaning ascribed to such term in Rule 12b-2 under the Securities Exchange Act of 1934, as amended from time to time.
		

		
			2. “Board” means the then-current Board of Directors of the Company.
		

		
			3. “Business Day” means any Monday through Friday, excluding any such day on which banks are authorized to be closed in Texas.
		

		
			4. “CEO” means the then-current Chief Executive Officer of the Company.
		

		
			5. “Code” means the Internal Revenue Code of 1986, as amended.
		

		
			6. “Compensation Committee” means the then-current Compensation Committee of the Board.
		

		
			7. “Confidential Information” means any information or material known to, or used by or for, the Company or an Affiliate (whether or not owned or developed by the Company or an Affiliate and whether or not developed by Executive) that is not generally known by other Persons in the same business as the Company or any of its Affiliates.  For all purposes of the Agreement, Confidential Information includes, but is not limited to, the following: all trade secrets of the Company or an Affiliate; all non-public information that the Company or an Affiliate has marked as confidential or has otherwise described to Executive (either in writing or orally) as confidential; all non-public information concerning the Company’s or Affiliate’s products, services, prospective products or services, research, prospects, leases, surveys, seismic data, drilling data, designs, prices, costs, marketing plans, marketing techniques, studies, test data, leasehold and royalty owners, investors, suppliers and contracts; all business records and plans; all personnel files; all financial information of or concerning the Company or an Affiliate; all information relating to the Company’s operating system software, application software, software and system methodology, hardware platforms, technical information, inventions, computer programs and listings, source codes, object codes, copyrights and other intellectual property; all technical specifications; any proprietary information belonging to the Company or an Affiliate; all computer hardware or software manuals of the Company or an Affiliate; all Company or Affiliate training or instruction manuals; all Company or Affiliate electronic data; and all computer system passwords and user codes.
		

		
			8. “Person”  means any individual, firm, corporation, partnership, company, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization committee, or other entity.
		

		
			9. “Termination Date” means the date on which Executive’s employment terminates with the Company and all of its Affiliates.
		

		

		

		 

		

			 

		

 

		APPENDIX B
		

		
			TO
		

		
			EMPLOYMENT AGREEMENT
		

		
			 
		

		
			CONFIDENTIAL SEPARATION and Release AGREEMENT
		

		
			This SEPARATION AND RELEASE AGREEMENT (the “Agreement”) is made and entered into by and between VAALCO Energy, Inc. (the “Company”) and Gregory Hullinger, an employee and officer of the Company (“Employee”).  The Company and Employee may sometimes hereafter be referred to singularly as a “Party” or collectively as the “Parties.”
		

		
			RECITALS
		

		
			WHEREAS, the Parties are subject to an employment agreement dated effective November 17, 2015 (the “Employment Agreement”); and
		

		
			WHEREAS, the Parties agree that the employment of Employee with the Company (and all of its Affiliates) shall terminate on the Termination Date specified below, subject to terms and conditions of this Agreement; and
		

		
			WHEREAS, the Parties desire to completely resolve any and all disputes or potential disputes that may exist between them concerning Employee’s employment, separation from employment, and otherwise; and
		

		
			WHEREAS, the Company desires to provide consideration to Employee in the form of Separation Benefits (as defined in Section  1); and
		

		
			WHEREAS, Employee is eligible to receive the Separation Benefits, the receipt of which is conditioned upon Employee releasing the Company and the other Released Parties (as defined in Section  3) from all specified claims or causes of action that Employee may have against them through the date that Employee executes this Agreement as set forth on the signature page below (the “Release Effective Date”); 
		

		
			AGREEMENT
		

		
			NOW, THEREFORE, in consideration of the mutual representations contained herein, and such other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties hereby covenant and agree, with the intent to be legally bound, as follows:
		

		
			1.Payment Acknowledged.  In consideration for entering into this Agreement, the Company will provide to Employee the separation benefits specified in Exhibit I to this Agreement (the “Separation Benefits”).  The Lump Sum Severance Payment, as described in Exhibit I, will be made in a single cash payment within ten (10) business days after the 
		

		 

 

		end of the revocation period specified in Section 17 following the Termination Date (as defined in Section 2).
		

		
			The Separation Benefits will be net of all applicable federal, state and local taxes as required by law and any other required withholdings. In addition, by entering into this Agreement, Employee agrees that the Separation Benefits will be reduced by any amount that Employee owes the Company as of the Termination Date.  All other benefits provided by the Company or its Affiliates to Employee shall cease upon the Termination Date, unless otherwise expressly provided by the express terms of such benefits  plans or programs. 
		

		
			2.Termination of Employment.  Effective as of 5:00 p.m. (Central Time) on March 15, 2016 (“Termination Date”), Employee’s employment with the Company and all of its Affiliates shall terminate.  The term “Affiliate” means any Person, controlling, controlled by, or under common control with the Company.  For purposes of this definition, the terms “controlling, controlled by, or under common control” means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of another person or entity.  Whether any Person is an Affiliate will be determined by the Company.  For purposes of the Agreement, the term “Person” means any individual, firm, corporation, partnership, company, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization committee, or other entity.
		

		
			3.Purpose.  The purpose of this Agreement is to provide for the orderly termination of the employment relationship between the Parties, and to voluntarily resolve any actual or potential disputes, claims or causes of action that Employee has or might have, whether known or unknown, as of the Release Effective Date (as defined above), against (a) the Company and its Affiliates, and its and their owners, partners, parents, directors, officers, employees, agents, attorneys, representatives, employee benefits plans, plan fiduciaries, insurers, predecessors, successors, and assigns, and (b) all compensation and benefit plans and programs sponsored or maintained by the Company and the administrators, trustees, insurers, and fiduciaries of such plans and programs (hereinafter, all the Persons in clauses (a) and (b) being individually and collectively referred to as the “Released Parties”).  Neither the fact that this Agreement has been proposed or executed, nor the terms of this Agreement, are intended to suggest, or should be construed as suggesting, that the Released Parties have acted unlawfully or violated any federal, state or local law or regulation, or any other duty, policy or contract.
		

		
			4.No Other Payments.  Employee understands and agrees that the Company shall make no other payments hereunder to Employee, other than the Separation Benefits, and shall have no other obligations to Employee except as described in this Agreement.  Employee acknowledges that Employee has no right to seek, and will not seek, any additional or different compensation or consideration for executing or performing under this Agreement.  Employee acknowledges that the Separation Benefits are in addition to 
		

		 

 

		anything of value to which Employee would otherwise be entitled to receive by virtue of Employee’s employment or separation from employment, excepting any benefits that Employee is entitled to receive under the Company’s employee benefit plans or programs following termination of employment, as provided under the express terms and conditions of such plans or programs, and without regard to the Separation Benefits described in this Agreement.
		

		
			5.Neutral Employment Reference.  The Company shall provide a neutral employment reference to any potential employers that consider the employment of Employee and that seek information concerning the reasons for the departure of Employee.  A “neutral employment reference” means that the Company will provide to any such potential employers the identity of the positions held by Employee, the dates of Employee’s employment with the Company, and the Employee’s last rate of compensation.  Employee should direct any potential employers to the Company’s Human Resources Department in Houston, Texas, for employment references.
		

		
			6.No Admission of Liability.  Employee understands and agrees that this Agreement shall not in any way be construed as an admission by the Company, or by any of the other Released Parties, of any unlawful or wrongful acts whatsoever against Employee or any other Person.  The Released Parties specifically disclaim any liability to, or wrongful acts against, Employee or any other Person.
		

		
			7.Tax Consequences.  The Company has made no representations to Employee regarding the tax consequences of the Separation Benefits or any other benefit under this Agreement.  Employee understands, acknowledges, and agrees that Company cannot, and does not, provide tax advice to Employee.  Any tax-related information that has been provided, or will be provided, to Employee is solely for informational purposes and should not be relied upon by Employee.  Employee is advised to retain a competent and qualified tax adviser to advise Employee on the tax consequences associated with Employee’s termination of employment and receipt of Separation Benefits from the Company.
		

		
			8.Non-Disclosure Obligations.  Employee shall not, without first obtaining the express written consent of the Chief Executive Officer of the Company (“CEO”) or the Board of Directors of the Company (“Board”), or being compelled to do so by a court of competent jurisdiction or a government entity under compulsion of law, disclose the existence or terms of this Agreement, nor the substance of the negotiations leading to this Agreement, to any other Person; save and except to Employee’s spouse, personal attorney, personal accountants, personal tax preparer, and/or the appropriate taxing authorities (each of whom will then be deemed governed by the non-disclosure agreement herein to the extent permitted by applicable law, and Employee will be responsible for any such improper disclosure by such Persons).    
		

		
			Employee acknowledges and agrees that Employee (a) was exposed to and received valuable and proprietary Confidential Information (as defined in the Employment Agreement) and (b) agreed to preserve and protect the confidential nature of the Confidential Information.  Employee also agrees to continue to abide by the Company’s 
		

		 

 

		confidentiality policies and any agreement regarding confidentiality that Employee has with the Company including, without limitation, Employee’s continuing obligations under the Employment Agreement and the Company’s Code of Business Conduct and Ethics.  Employee shall take all reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of the Confidential Information.
		

		
			Employee expressly acknowledges that Employee’s breach of the obligations contained in this Section  8 will likely cause irreparable and substantial harm to the Company and, therefore, such obligations may be enforced by injunctive relief or monetary damages, if available, or any other remedy available at law or equity.  In the event of any uncertainty regarding Employee’s obligations contained in this Section  8, Employee agrees to contact the CEO, in writing, regarding such uncertainty and to seek a good faith clarification and/or resolution of Employee’s obligations under this Section  8.  In the event Employee becomes reemployed following Employee’s termination of employment, Employee agrees to promptly and effectively disclose such confidentiality provisions, but not the Agreement itself, to Employee’s new employer(s).
		

		
			9.Non-Disparagement.  As provided in the Employment Agreement, Employee has agreed not to disclose, communicate, or publish any disparaging or negative information, writings, electronic communications, comments, opinions, facts, or remarks, of any kind, about the Company and/or any of the other Released Parties following the Termination Date.
		

		
			10.Non-Solicitation and Non-Recruitment.  Employee acknowledges and agrees that the position Employee held with the Company was a position of trust which allowed Employee to develop relationships with employees of the Company and its Affiliates, and to have insight into such work relationships.  As such, Employee has agreed to the non-solicitation and non-recruitment covenants as set out in the Employment Agreement.
		

		
			Should Employee violate any of his non-solicitation or non-recruitment obligations or covenants, then Employee’s entitlement to the payment of any monies under this Agreement will cease, the Company may recover from Employee all monies previously paid to Employee under this Agreement, with the exception of one hundred dollars ($100.00), which amount shall constitute an irrevocable amount of consideration supporting this Agreement and, moreover, the Company or an Affiliate may seek any further relief, legal or equitable, that might be  available to it under any applicable law.
		

		
			11.Duty to Return Company Documents and Property.  As provided in the Employment Agreement, Employee agrees that Employee shall:  (a) not take, retain, copy, alter, destroy, or delete any files, documents or other materials whether or not embodying or recording any Confidential Information, including copies, without obtaining the advance written consent of an authorized Company representative; (b) promptly return to the Company all Confidential Information, documents, files, records and tapes (written or electronically stored) that are in Employee’s possession or control regarding the Company and its Affiliates; and (c) not use or disclose such materials in any way or in any format, including written information in any form, including information stored by 
		

		 

 

		electronic means, and any copies of these materials.  Employee further agrees that, following the Termination Date and as provided in the Employment Agreement, Employee will immediately return to the Company all property of the Company or its Affiliates.
		

		
			12.Remedies.  Employee acknowledges that (a) the restrictions contained in this Agreement, in view of the nature of the Company’s business, are reasonable and necessary to protect the Company’s legitimate business interests, and (b) any violation of this Agreement could result in irreparable injury to the Company or an Affiliate.  In the event of a breach or a threatened breach by Employee of any provision of Sections  8 through 11, the Company will be entitled to a temporary restraining order and injunctive relief restraining Employee from the commission of any breach.  Nothing contained in this Agreement should be construed as prohibiting the Company from pursuing any other remedies available to it for any such breach or threatened breach.
		

		
			Employee further understands and agrees that if Employee, or someone acting on his behalf, should file, or cause to be filed, any claim, charge, complaint, or action against the Company and/or any other Released Parties subject to the release of claims in Section 15, Employee expressly waives any and all rights to recover any damages or other relief from the Company and/or any other Released Parties including, without limitation, costs and attorneys’ fees.
		

		
			13.Participation in EEOC Investigations.  Notwithstanding any other provision of this Agreement to the contrary, this Agreement is not intended to prevent or otherwise interfere with the Employee’s rights to file a charge with the EEOC or any similar federal, state or local agency in connection with any claim that Employee believes he may have against the Company or its Affiliates, or to cooperate or provide truthful testimony to the EEOC or any similar federal, state or local agency with respect to any investigation.    However, under this Agreement, Employee does hereby waive his right to monetary or any other recovery in the event that any charge Employee files is pursued by the EEOC or any similar federal, state or local agency on Employee’s behalf arising out of or related to his employment or the termination of such employment, unless otherwise required under applicable law.
		

		
			The EEOC and any similar, federal, state or local agency has the authority to carry out their statutory duties and may investigate a charge, issue a determination, file a lawsuit in federal or state court in their own name or take other action authorized under applicable statutes.  Employee retains the right to participate in such an action and communicate with the EEOC and any comparable state or local agency, and such communication may be initiated by Employee or by the government agency and, in addition, the non-disparagement clause in Section  9 hereof and in the Employment Agreement does not limit those rights.
		

		
			14.Employee Representations.  Employee expressly agrees to and acknowledges, confirms and represents to the following, and intends for the Company to rely upon the following in entering this Agreement:
		

		 

 

		
			(a)As of the Release Effective Date, Employee has not filed any complaints, charges, claims or actions against the Company or any of the other Released Parties with any court, agency, or commission regarding the matters encompassed by this Agreement. 
		

		
			(b)Employee, by entering into this Agreement, is releasing the Released Parties from any and all claims that Employee may have against them under federal, state, or local laws, which have arisen on or before the Release Effective Date.
		

		
			(c)Employee, by entering into this Agreement, is waiving all claims that Employee may have against the Released Parties under the federal Age Discrimination in Employment Act of 1967, as amended (i.e., 29 USC § 621 et seq.), which have arisen on or before the date of execution of this Agreement.
		

		
			(d)Employee has reviewed all aspects of this Agreement, and has carefully read and fully understands this Agreement. 
		

		
			(e)Employee has been hereby advised to consult with an attorney before signing this Agreement.
		

		
			(f)Employee is knowingly and voluntarily entering into this Agreement, and has relied solely and completely upon Employee’s own judgment and, if applicable, the advice of Employee’s attorney before entering into this Agreement.
		

		
			(g)Employee is not relying upon any representations, promises, predictions, projections, or statements made by or on behalf of the Company or any of the other Released Parties, other than those that are specifically stated in this Agreement.
		

		
			(h)Employee acknowledges that this Agreement shall be binding on Employee, and on Employee’s spouse, heirs, administrators, representatives, executors, successors and assigns.
		

		
			(i)Employee agrees that this Agreement shall, in all cases, be construed as a whole, according to its fair meaning, and not strictly for or against, any of the Parties.
		

		
			(j)Employee does not waive rights or claims that may arise after the Release Effective Date.
		

		
			(k)Employee will receive payment of consideration under this Agreement that is beyond what Employee was entitled to receive before entering into this Agreement.
		

		
			15.Release.  Employee, on behalf of herself, and his heirs, executors, administrators, dependents, spouse, beneficiaries, successors and assigns (individually and collectively, the “Releasing Parties”), hereby fully, unconditionally and forever release, acquit and discharge the Released Parties, jointly and severally, from and against any and all claims, demands, actions, lawsuits, grievances, liabilities, and obligations of any nature whatsoever that the Releasing Parties had, have or may ever have against the Released Parties, or that might be assigned by the Releasing Parties, whether known or unknown, 
		

		 

 

		fixed or contingent, as of the Release Effective Date.  Employee acknowledges, understands and agrees that this Agreement specifically includes, without limitation, (a) law or equity claims; (b) contract (express or implied) or tort claims; (c) claims arising under any federal, state or local laws of any jurisdiction that prohibit age, sex, race, national origin, color, disability, religion, veteran, military status, sexual orientation or any other form of discrimination, harassment, hostile work environment or retaliation (including, without limitation, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Americans with Disabilities Act of 1990, the Americans with Disabilities Act Amendments Act of 2008, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Acts of 1866 and/or 1871, 42 U.S.C. Section 1981, the Rehabilitation Act, the Family and Medical Leave Act, the Sarbanes-Oxley Act, the Employee Polygraph Protection Act, the Worker Adjustment and Retraining Notification Act, the Equal Pay Act of 1963, the Lilly Ledbetter Fair Pay Act, the Uniformed Services Employment and Reemployment Rights Act of 1994, the Genetic Information and Nondiscrimination Act of 2008, the Patient Protection and Affordable Care Act of 2010, the Consolidated Omnibus Budget Reconciliation Act of 1985, all amendments to any of these above-referenced laws, and any other federal, state or local laws of any jurisdiction; (d) claims under any other federal, state, local, municipal or common law whistleblower protection, discrimination, wrongful discharge, anti-harassment or anti-retaliation statute or ordinance; (e) claims arising under ERISA; or (f) any other statutory or common law claims related to Employee’s employment or separation from employment with the Company and its Affiliates.  Employee further represents that, as of the Release Effective Date, he has not been the victim of any illegal or wrongful acts by any of the Released Parties, including, without limitation, discrimination, retaliation, harassment or any other wrongful act based on sex, age, race, religion, or any other legally protected characteristic.
		

		
			The release contained in this Section 15 does not include the following:  (a) a claim for which the facts giving rise to such claim first occurred after the Release Effective Date; (b) any eligibility to receive continuation of health care coverage to the extent required under COBRA; (c) any vested benefit under a qualified retirement plan or long term incentive plan of the Company or an Affiliate; (d) any claim for worker’s compensation benefits that is currently pending as of the date of this Agreement; (e) any accrued and unused vacation benefits; (f)  any salary or wages earned up to and through the Termination Date; (g) a right, if any, to be indemnified by the Company or any Affiliate in his capacity as a director, officer or employee of the Company or any Affiliate to the extent provided under the terms and conditions of any corporate procedure or policy, or insured under any applicable liability policy, as each may be amended from time to time, in the event that a third party brings a claim of liability against Employee; and (h) any claim challenging the validity of this release under the federal Older Workers Benefit Protection Act. 
		

		
			16.Twenty-one Days to Consider Offer of Termination Benefits.  Employee shall have a period of twenty-one (21) days to consider whether to sign this Agreement.  Although Employee may sign this Agreement prior to the end of the 21-day period, he may not sign 
		

		 

 

		this Agreement on or before the Termination Date.  In addition, if Employee signs this Agreement prior to the end of the 21-day period, he shall be deemed, by doing so, to have certified and agreed that the decision to make such election prior to the expiration of such 21-day period is knowing and voluntary and was not induced by the Company through:  (a) fraud, misrepresentation, or a threat to withdraw or alter the offer prior to the end of the 21-day period, or (b) an offer to provide different terms or benefits in exchange for signing this Agreement prior to the expiration of the 21-day period.  The procedure for Employee to accept this Agreement is to return a fully executed, dated, and witnessed Agreement to the CEO (or his delegate) prior to the deadline.
		

		
			17.Seven Day Revocation Period.  Employee may revoke this Agreement at any time within seven (7) days after Employee returns a signed copy pursuant to Section 16.  To revoke the Agreement, Employee must deliver written notification of such revocation to the attention of the CEO (or his delegate) within seven (7) days after the date that Employee signs this Agreement.  Employee further understands that if Employee does not revoke the Agreement within seven (7) days following execution (excluding the date of execution), the Agreement will become effective and binding on the Parties, and fully enforceable by the Parties, as of the date of execution.
		

		
			18.Agreement not to Sue.  Except as required by law that cannot be waived, including but not limited to the rights afforded to Employee under Section 13, Employee agrees that he will not commence, maintain, initiate, or prosecute, or cause, encourage, assist, volunteer, advise or cooperate with any other Person to commence, maintain, initiate or prosecute, any action, lawsuit, proceeding, charge, petition, complaint or claim before any court, agency or tribunal against the Company or any Affiliate arising from, concerned with, or otherwise relating to, in whole or in part, Employee’s employment or separation from employment with the Company, or any of the matters discharged and released in this Agreement.    
		

		
			19.Breach by Employee.  In the event that Employee breaches this Agreement, the Released Parties may seek all remedies specifically identified in this Agreement or otherwise available at law and equity including, without limitation, specific performance of the Agreement.  In the event that Employee breaches or repudiates this Agreement, Employee may be required, at the Company’s option, either to compensate the Company for all damages incurred as a result, or to return a sum of money representing the Separation Benefits, with the exception of one hundred dollars ($100.00), which amount shall constitute an irrevocable amount of consideration supporting this Agreement.  This option of the Company, however, does not apply to any claims made by or on behalf of Employee under the federal Age Discrimination in Employment Act or the federal Older Workers’ Benefit Protection Act.  In the case of any such claims under those statutes, the Company and other Released Parties may receive only those remedies specifically allowed under such statutes. 
		

		
			20.Severability.  The Parties fully intend that this Agreement comply with all applicable laws and legal requirements.  Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal, invalid or otherwise 
		

		 

 

		unenforceable, the Agreement shall first be reformed to make the provision at issue enforceable and effective to the full extent permitted by law.  Further, if a court should determine that any portion of this Agreement is unenforceable, such provision shall be given effect to the maximum extent possible by narrowing or enforcing in part that aspect of the provision found to be unenforceable.  If such reformation is not possible, all remaining provisions of this Agreement shall otherwise remain in full force and effect and shall be construed as if such illegal, invalid, or unenforceable provision had not been included herein.
		

		
			21.Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the Parties, and their respective heirs, executors, beneficiaries, personal representatives, successors and permitted assigns hereunder, but otherwise this Agreement shall not be for the benefit of any third parties.
		

		
			22.Entire Agreement; Amendment.  This Agreement sets forth the entire agreement of the Parties and fully supersedes and replaces any and all prior agreements, promises, representations, or understandings, written or oral, between the Company (and any other Released Party) and the Employee that relates to the subject matter of this Agreement, unless referenced in this Agreement and, therefore, incorporated into this Agreement by reference.  Employee acknowledges that in executing this Agreement, (a) Employee does not rely, and has not relied, upon any oral or written representation, promise or inducement by the Company and/or any of the other Released Parties, except as expressly contained in this Agreement, and (b) there is no presumption regarding the interpretation or construction of this Agreement against its drafter.  Employee understands and agrees that he is precluded from bringing any fraud or similar claim against the Company or any of the other Released Parties associated with any such communications, representations, promises or inducements.  This Agreement may be amended or modified only by a written instrument identified as an amendment hereto that is executed by both Parties.
		

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

		
			24.Choice of Law and Forum.  This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Texas, but without regard to principles of conflict of laws that might direct the application of the law of another forum.  Any action to enforce the provisions of this Agreement, or otherwise relating to this Agreement, must be brought in any court of competent jurisdiction in Houston, Texas, and the Parties hereby waive any objection to such venue including, without limitation, that it is inconvenient.
		

		
			25.Waiver of Jury Trial.  THE PARTIES HERETO WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THE AGREEMENT OR ANY CLAIM HEREUNDER, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN 
		

		 

 

		EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES TO IRREVOCABLY WAIVE TRIAL BY JURY, AND THAT ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THE AGREEMENT OR ANY CLAIM HEREUNDER SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION PURSUANT TO SECTION 24 BY A JUDGE SITTING WITHOUT A JURY.
		

		
			26.Relief.  The Parties understand and agree that if a violation of any term of this Agreement is asserted, the Party who asserts such violation shall have the right to seek specific performance of that term and/or any other necessary and proper relief as permitted by law or equity, including but not limited to, damages awarded by any court of competent jurisdiction, and the prevailing Party shall be entitled to recover its reasonable costs and attorneys’ fees.
		

		
			27.Waiver.    A Party’s waiver of any breach or violation of any provision of this Agreement shall not operate as, or be construed to be, a waiver of any later breach of the same or other provision by such Party.
		

		
			28.Counterparts.  The Parties agree that the Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument.
		

		
			PLEASE READ CAREFULLY BEFORE SIGNING
		

		
			•Employee acknowledges that he has carefully read and understands the terms of this Agreement and all of Employee’s promises and obligations hereunder.
		

		
			•Employee acknowledges that he has been advised to review this Agreement with an attorney before signing it.
		

		
			•Employee acknowledges that he has been given at least 21 days to consider whether to sign this Agreement.  Employee acknowledges that if he signs this Agreement before the end of the 21-day period, it will be his own personal and voluntary decision to do so.
		

		
			•Employee understands that this Agreement will not become effective or enforceable until after the 7-day revocation period has expired.  The Company will have no obligations to Employee under this Agreement if he revokes the Agreement during such 7-day period.
		

		
			 
		

		
			[Signature page follows.]
		

		
			 
		

		

		

		 

 

		

			 

		

		Please review this document carefully as it includes a release of claims.
		

		
			IN WITNESS WHEREOF, the Employee has entered into this Agreement, and the Company has caused this Agreement to be executed in its name and on its behalf by its duly authorized officer, to be effective as of the Release Effective Date that this Agreement is executed by Employee as set forth beneath his signature below.
		

		
			This document was presented to Employee on ___________, 2016.    
		

		
			Although Employee may sign this Agreement prior to the end of the 21-day period, Employee may not sign this Agreement on or before the Termination Date.
		

		
			 
		

		
			EMPLOYEEWITNESS
		

		
			 
		

		
			
		

		
			Employee SignatureWitness Signature
		

		
			 
		

		
			Title:
		

		
			Printed Name: Gregory HullingerPrinted Name:
		

		
			Date:Date:
		

		
			(the “Release Effective Date”)
		

		
			 
		

		
			COMPANY*
		

		
			 
		

		
			By:
		

		
			 
		

		
			Printed Name:
		

		
			Title:
		

		
			Date:
		

		

		

		 

		

			 

		

 

		Address for notices:
		

		
			VAALCO Energy, Inc. 
		

		
			9800 Richmond Avenue
		

		
			Suite 700
		

		
			Houston, TX  77042
		

		
			Attn: General Counsel
		

		
			 
		

		
			 
		

		
			*Note:  The Company officer should sign after the Employee has signed this Agreement.
		

		

		

		 

		

			 

		

 

		Exhibit I
		

		
			Consideration for Release Agreement
		

		
			In consideration for entering into this Agreement, the Company will provide the Employee with the Separation Benefits specified below in accordance with the terms and conditions of this Agreement: 
		

		
			(1)Cash Payment for COBRA Premium.  Employee will receive a cash payment of in the aggregate amount of $9,538.12, representing an estimate of the Employee’s payment of COBRA continuation payments for a period of four (4) months.  This payment shall be paid in a single cash amount, less applicable withholdings, on March 15, 2016, provided that Employee executes this Agreement in the 21-day consideration period, this Agreement has not been revoked, and is no longer subject to revocation by Employee.
		

		
			(2)Eligibility for 2015 Annual Bonus.  Employee will be eligible to receive a cash bonus under the terms and conditions of the Company’s 2015 Bonus Plan, as provided pursuant to Section 3.2 of the Employment Agreement.  The amount of any cash bonus that is awarded to Employee for the 2015 calendar year shall be determined by the Compensation Committee.
		

		
			(3)Vesting of Incentive Outstanding Awards.  All unvested shares of restricted stock under the Company’s long-term incentive plans previously awarded to Employee shall vest on March 15, 2016, provided that Employee executes this Agreement in the 21-day consideration period, this Agreement has not been revoked, and is no longer subject to revocation by Employee. For the avoidance of doubt, Employee has previously been awarded the following unvested shares of restricted stock:
		

		
			Grant Date: March 4, 2014
		

		
			Unvested Shares of Restricted Stock: 4,340
		

		
			 
		

		
			Grant Date: March 3, 2015:
		

		
			Unvested Shares of Restricted Stock: 18,800
		

		
			 
		

		
			If any award agreements governing any unvested stock option awards under the Company’s long-term incentive plans call for the acceleration of such unvested stock options upon Employee’s retirement, such unvested stock options shall vest on Employee’s Termination Date. Any unexercised stock options shall continue to be exercisable for the periods as set forth in the applicable stock option award agreement.
		

		
			 
		

		
			(4)With respect to any of Employee’s vacation benefits accrued for 2015 that were unused at January 1, 2016, Employee shall receive a cash payment, less applicable withholdings, for any such unused vacation benefits carried over to 2016 in accordance with the Company’s standard vacation policies and practices. Such payment will be made on March 15, 2016, provided that Employee executes this Agreement in the 21-day consideration period, this Agreement has not been revoked, and is no longer subject to revocation by Employee.Exhibit 4.1

 

DIGERATI
TECHNOLOGIES, INC.

2015 EQUITY COMPENSATION PLAN

 

SECTION 1. 
Purpose.  The purposes of the Digerati Technologies, Inc. 2015 Equity Compensation Plan (the “Plan”)
are to: (a) enable Digerati Technologies, Inc. and its subsidiaries and affiliates (collectively, the “Company”)
to recruit and retain highly qualified directors, employees, contractors and consultants; (b) provide those directors, employees,
contractors and consultants with an incentive for productivity; and (c) provide those directors, employees, contractors and
consultants with an opportunity to share in the growth and value of the Company.

 

SECTION 2. 
Definitions.  For purposes of the Plan, the following terms will have the meanings defined below, unless the context
clearly requires a different meaning:

 

(a)        “Applicable
Law” means the legal requirements relating to the administration of and issuance of securities under stock incentive
plans, including, without limitation, the requirements of state corporations law, federal, state and foreign securities law, federal,
state and foreign tax law, and the requirements of any stock exchange or quotation system upon which the Shares may then be listed
or quoted.

 

(b)        “Award”
means an award of Options, Restricted Stock, Unrestricted Stock or Performance Awards made under this Plan.

 

(c)        “Award
Agreement” means, with respect to any particular Award, the written document that sets forth the terms of that particular
Award.

 

(d)        “Board”
means the Board of Directors of the Company, as constituted from time to time.

 

(e)        “Cause”
means (i) Participant’s refusal to comply with any lawful directive or policy of the Board which refusal is not cured
by the Participant within 10 days of such written notice from the Company; (ii) the Company’s determination that, in
the reasonable judgment of the Board, Participant has committed any act of dishonesty, embezzlement, unauthorized use or disclosure
of confidential information or other intellectual property or trade secrets, common law fraud or other fraud against the Company;
(iii) a material breach by the Participant of any written agreement with or any fiduciary duty owed to any Company; (iv) Participant’s
conviction (or the entry of a plea of a nolo contendere or equivalent plea) in a court of competent jurisdiction of a felony
or any misdemeanor involving material dishonesty or moral turpitude; or (v) Participant’s habitual or repeated misuse
of, or habitual or repeated performance of Participant’s duties under the influence of, alcohol, illegally obtained prescription
controlled substances or non-prescription controlled substances.  Notwithstanding the foregoing, if a Participant and the
Company have entered into an employment agreement, consulting agreement or other similar agreement that specifically defines “cause,”
then with respect to such Participant, “Cause” shall have the meaning defined in such other agreement.

 

     

     

    

 

(f)        “Change
in Control” shall mean the occurrence of any of the following events occurring after the Effective Date: (i) any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes a “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50%
or more of the total power to vote for the election of directors of the Company; (ii) during any 12-month period, individuals
who at the beginning of such period constitute the Board and any new director whose election by the Board or nomination for election
by the Company’s stockholders was approved by a vote of at least a majority of the directors then still in office who either
were directors at the beginning of the period of whose election or nomination for election was previously approved, cease for
any reason to constitute a majority thereof; (iii) the merger or consolidation of the Company with another corporation where
the stockholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after
the merger or consolidation, shares entitling such stockholders to 50% or more of all votes to which all stockholders of the surviving
corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect
directors by a separate class vote); (iv) the sale or other disposition of all or substantially all of the assets of the
Company; (v) a liquidation or dissolution of the Company; or (vi) acceptance by shareholders of the Company of shares
in a share exchange if the shareholders of the Company immediately before such share exchange do not or will not own directly
or indirectly immediately following such share exchange more than 50% of the combined voting power of the outstanding voting securities
of the entity resulting from or surviving such share exchange in substantially the same proportion as their ownership of the voting
securities outstanding immediately before such share exchange. Notwithstanding anything in the Plan or an Award Agreement to the
contrary, if an Award is subject to Section 409A of the Code, no event that, but for the application of this paragraph, would
be a Change in Control as defined in the Plan or the Award Agreement, as applicable, shall be a Change in Control unless such
event is also a “change in control event” as defined in Section 409A of the Code.

 

(g)        “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.

 

(h)        “Committee”
means the committee designated by the Board to administer the Plan under Section 3. To the extent required under Applicable
Law, the Committee shall have at least two members and each member of the Committee shall be a Non-Employee Director and an Outside
Director. At any time that the plan is administered by the Board, the term “Committee” shall mean the Board.

 

(i)        “Director”
means a member of the Board.

 

(j)        “Disability”
means a condition rendering a Participant Disabled.

 

(k)       “Disabled”
will have the same meaning as set forth in Section 22(e)(3) of the Code.

 

(l)        “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

    	 	- 2 -	 

     

    

 

(m)       “Fair
Market Value” means, as of any date, the value of a Share determined as follows: (i) if the Shares are listed
on any established stock exchange or a national market system, including, without limitation, the Nasdaq Global Select Market,
the Fair Market Value of a Share will be the closing sales price for such stock as quoted on that system or exchange (or the system
or exchange with the greatest volume of trading in Shares) at the close of regular hours trading on the day of determination;
(ii) if the Shares are regularly quoted by recognized securities dealers but selling prices are not reported, the Fair Market
Value of a Share will be the mean between the high bid and low asked prices for Shares at the close of regular hours trading on
the day of determination; or (iii) if Shares are not traded as set forth above, the Fair Market Value will be determined
in good faith by the Committee taking into consideration such factors as the Committee considers appropriate, such determination
by the Committee to be final, conclusive and binding.  Notwithstanding the foregoing, in connection with a Change in Control,
Fair Market Value shall be determined in good faith by the Committee, such determination by the Committee to be final conclusive
and binding.

 

(n)        “Non-Employee
Director” will have the meaning set forth in Rule 16b-3(b)(3)(i) promulgated by the Securities and Exchange
Commission under the Exchange Act, or any successor definition adopted by the Securities and Exchange Commission.

 

(o)        “Outside
Director” means a member of the Board who meets the definition of an “outside director” under Section 162(m)
of the Code.

 

(p)        “Option”
means any option to purchase Shares (including an option to purchase Restricted Stock, if the Committee so determines) granted
pursuant to Section 6 hereof.

 

(q)        “Participant”
means a Director, employee, contractor, consultant or other service provider of or to the Company to whom an Award is granted.

 

(r)        “Performance
Award” means any Award that, pursuant to Section 9, is granted, vested and/or settled upon the achievement
of specified performance conditions.

 

(s)        “Performance
Goals” means a goal that must be met by the end of a period specified by the Committee (but that is substantially
uncertain of being met before the grant of the Award) based upon one or more of the following business criteria: (i) specified
levels of or increases in pre-tax earnings, return on capital, equity measures/ratios (on a gross, net, pre-tax or post tax basis),
including basic earnings per share, diluted earnings per share, total earnings (including total earnings as adjusted by the Committee
at the time of the Award), operating earnings, earnings growth, earnings before interest and taxes, or EBIT, and earnings before
interest, taxes, depreciation and amortization, or EBITDA (including EBIT or EBITDA as adjusted by the Committee at the time of
the Award); (ii) total sales or sales growth; (iii) gross margin; (iv) customer service levels; (v) employee
recruiting and development; (vi) advertising effectiveness; (vii) development of new markets; (viii) financial
ratios; (ix) strategic initiatives; (x) improvement in or attainment of operating expense levels; (xi) improvement
in or attainment of capital expense levels; (xii) the attainment of certain target levels of, or a specified increase in,
operational cash flow; (xiii) the achievement of a certain level of, reduction of, or other specified objectives with regard
to limiting the level of increase in, all or a portion of, the Company’s bank debt or other long-term or short-term public
or private debt or other similar financial obligations of the Company, which may be calculated net of such cash balances and/or
other specified offsets; (xiv) appreciation in and/or maintenance of certain target levels in the Fair Market Value; (xv) the
attainment of a certain level of, reduction of, or other specified objectives with regard to limiting the level of or rate of
increase in all or a portion of specified expenses (xvi) individual objectives; and (xvii) any combination of the foregoing. 
The Committee shall have discretion to determine the specific targets with respect to each of these categories of Performance
Goals and may apply to the Company.

 

    	 	- 3 -	 

     

    

 

(t)        “Plan”
means the Digerati Technologies, Inc. 2015 Equity Compensation Plan herein set forth, as amended from time to time.

 

(u)        “Restricted
Stock” means Shares that are subject to restrictions pursuant to Section 7 hereof.

 

(v)        “Shares”
means shares of the Company’s common stock, par value $0.001, subject to substitution or adjustment as provided in Section 4(c)
hereof. 

 

(w)        “Unrestricted
Stock” means Shares that are not Restricted Stock.

 

SECTION 3. 
Administration. 

 

(a)        The
Plan shall be administered by the Board or the Committee. The Committee shall hold its meetings at such times and places as it
may determine. A majority of its members shall constitute a quorum, and all determinations of the Committee shall be made by not
less than a majority of its members. Any decision or determination reduced to writing and signed by a majority of the members
shall be fully as effective as if it had been made by a majority vote of its members at a meeting duly called and held.

 

(b)        Any
action of the Committee in administering the Plan shall be final, conclusive and binding on all persons, including the Company,
its Directors, employees, contractors and consultants, the Participants, persons claiming rights from or through Participants
and stockholders of the Company. The Committee will have full authority to grant Awards under this Plan and determine the terms
of such Awards.  Such authority will include the right to:

 

(i)         select
the individuals to whom Awards are granted (consistent with the eligibility conditions set forth in Section 5);

 

(ii)        determine
the type of Award to be granted;

 

(iii)       determine
the number of Shares, if any, to be covered by each Award;

 

(iv)       establish
the terms and conditions of each Award;

 

    	 	- 4 -	 

     

    

 

(v)         subject
to Section 9, establish the performance conditions relevant to any Award and certify whether such performance conditions
have been satisfied;

 

(vi)        approving
forms of agreements (including Award Agreements) for use under the Plan;

 

(vii)       determine
whether and under what circumstances an Award may be settled in cash;

 

(viii)      determine
whether and under what circumstances an Option may be exercised without a payment of cash under Section 6(d);

 

(ix)         accelerate
the vesting or exercisability of an Award and to modify or amend each Award, subject to Section 10; and

 

(x)          extend
the period of time for which an Option is to remain exercisable following a Participant’s termination of service to the
Company from the limited period otherwise in effect for that Option to such greater period of time as the Committee deems appropriate,
but in no event beyond the expiration of the term of the Option.

 

(c)        The
Committee will have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the
Plan as it, from time to time, deems advisable; to establish the terms and form of each Award Agreement; to interpret the terms
and provisions of the Plan and any Award issued under the Plan (and any Award Agreement); and to otherwise supervise the administration
of the Plan.  The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in
any Award Agreement in the manner and to the extent it deems necessary to carry out the intent of the Plan.

 

(d)        The
Committee may delegate to one or more officers of the Company the authority to grant Awards to Participants who are not subject
to the requirements of Section 16 of the Exchange Act or Section 162(m) of the Code and the rules and regulations thereunder,
provided that the Committee shall have fixed the total number of Shares subject to such delegation.  Any such delegation
shall be subject to Applicable Laws.  The Committee may revoke any such allocation or delegation at any time for any reason
with or without prior notice.

 

(e)        All
expenses and liabilities incurred by the Committee in the administration of the Plan shall be borne by the Company. The Committee
may employ attorneys, consultants, accountants or other persons.

 

(f)        No
Director will be liable for any good faith determination, act or omission in connection with the Plan or any Award.

 

    	 	- 5 -	 

     

    

 

SECTION 4. 
Shares Subject to the Plan.

 

(a)        Shares
Subject to the Plan.  Subject to adjustment as provided in Section 4(c) of the Plan, the maximum number of
Shares that may be issued in respect of Awards under the Plan is 7,500,000 Shares. Any Shares issued hereunder may consist, in
whole or in part, of authorized and unissued Shares or treasury Shares. Any Shares issued by the Company through the assumption
or substitution of outstanding grants in connection with the acquisition of another entity shall not reduce the maximum number
of Shares available for delivery under the Plan. 

 

(b)        Effect
of the Expiration or Termination of Awards.  If and to the extent that an Option expires, terminates or is canceled or
forfeited for any reason without having been exercised in full, the Shares associated with that Option will again become available
for grant under the Plan.  Similarly, if and to the extent an Award of Restricted Stock is canceled or forfeited for any
reason, the Shares subject to that Award will again become available for grant under the Plan.  Shares withheld in settlement
of a tax withholding obligation associated with an Award, or in satisfaction of the exercise price payable upon exercise of an
Option, will not become available for grant under the Plan.

 

(c)        Other
Adjustment.  In the event of any corporate event or transaction such as a merger, consolidation, reorganization, recapitalization,
stock split, reverse stock split, split up, spin-off, combination of shares, exchange of shares, stock dividend, dividend in kind,
or other like change in capital structure (other than ordinary cash dividends) to shareholders of the Company, or other similar
corporate event or transaction affecting the Shares, the Committee, to prevent dilution or enlargement of Participants’
rights under the Plan, shall, in such manner as it may deem equitable, substitute or adjust, in its sole discretion, the number
and kind of shares that may be issued under the Plan or under any outstanding Awards, the number and kind of shares subject to
outstanding Awards, the exercise price, grant price or purchase price applicable to outstanding Awards, and/or any other affected
terms and conditions of this Plan or outstanding Awards.  The Committee shall not make any adjustment that would adversely
affect the status of any Award that is “performance-based compensation” under Section 162(m) of the Code.

 

(d)        Change
in Control.  Notwithstanding anything to the contrary set forth in the Plan, upon any Change in Control, the Committee
may, in its sole and absolute discretion and without the need for the consent of any Participant, take one or more of the following
actions contingent upon the occurrence of that Change in Control:

 

(i)        cause
any or all outstanding Awards to become vested and immediately exercisable (as applicable), in whole or in part;

 

(ii)       cause
any outstanding Option to become fully vested and immediately exercisable for a reasonable period in advance of the Change in
Control and, to the extent not exercised prior to that Change in Control, cancel that Option upon closing of the Change in Control;

 

    	 	- 6 -	 

     

    

 

(iii)        cancel
any unvested Award or unvested portion thereof, with or without consideration;

 

(iv)        cancel
any Award in exchange for a substitute award;

 

(v)         redeem
any Restricted Stock for cash and/or other substitute consideration with value equal to Fair Market Value of an unrestricted Share
on the date of the Change in Control;

 

(vi)        remove
or deem satisfied any restriction on Shares of Restricted Stock;

 

(vii)       cancel
any Option in exchange for cash and/or other substitute consideration with a value equal to: (A) the number of Shares subject
to that Option, multiplied by (B) the difference, if any, between the Fair Market Value per Share on the date of the Change
in Control and the exercise price of that Option; provided, that if the Fair Market Value per Share on the date of the
Change in Control does not exceed the exercise price of any such Option, the Committee may cancel that Option without any payment
of consideration therefor;

 

(viii)       take
such other action as the Committee shall determine to be reasonable under the circumstances; and/or

 

(ix)         notwithstanding
any provision of this Section 4(d), in the case of any Award subject to Section 409A of the Code, such Award
shall vest and be distributed only in accordance with the terms of the applicable Award Agreement and the Committee shall only
be permitted to use discretion to the extent that such discretion would be permitted under Section 409A of the Code.

 

(e)        In
the discretion of the Committee, any cash or substitute consideration payable upon cancellation of an Award may be subjected to
(i) vesting terms substantially identical to those that applied to the cancelled Award immediately prior to the Change in
Control, or (ii) earn-out, escrow, holdback or similar arrangements, to the extent such arrangements are applicable to any
consideration paid to stockholders in connection with the Change in Control.

 

SECTION 5. 
Eligibility.  Directors, employees, contractors and consultants, and other individuals who provide services to
the Company and its divisions and subsidiaries are eligible to be granted Awards under the Plan. A Participant who has been granted
an Option hereunder may be granted additional Options, Shares of Restricted Stock or Unrestricted Stock, Performance Awards, or
any combination thereof, if the Committee shall so determines.

 

    	 	- 7 -	 

     

    

 

SECTION 6. 
Options.  Options granted under the Plan shall are not intended to be and shall not be Incentive Stock Options
within the meaning of Section 422 of the Code. Any Option granted under the Plan will be in such form as the Committee may
at the time of such grant approve. The Award Agreement evidencing any Option will incorporate the following terms and conditions
and will contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee deems appropriate
in its sole and absolute discretion:

 

(a)        Option
Price.  The exercise price per Share under an Option will be determined by the Committee and will not be less than 100%
of the Fair Market Value of a Share on the date of the grant. 

 

(b)        Option
Term.  The term of each Option will be fixed by the Committee, but no Option will be exercisable more than 10 years after
the date the Option is granted.  No Option may be exercised after expiration of the term of the Option.

 

(c)        Exercisability. 
Options will vest and be exercisable at such time or times and subject to such terms and conditions as determined by the Committee.

 

(d)        Method
of Exercise.  Subject to the terms of the applicable Award Agreement, the exercisability provisions of Section 6(c)
and the termination provisions of Section 6(e), Options may be exercised in whole or in part from time to time
during their term by the delivery of written notice to the Company specifying the number of Shares to be purchased.  Such
notice will be accompanied by payment in full of the purchase price, either by certified or bank check, or such other means as
the Committee may accept.  The Committee may, in its sole discretion, permit payment of the exercise price of an Option in
the form of previously acquired Shares based on the Fair Market Value of the Shares on the date the Option is exercised or through
means of a “net settlement,” whereby the Option exercise price will not be due in cash and where the number of Shares
issued upon such exercise will be equal to: (i) the product of (A) the number of Shares as to which the Option is then
being exercised, and (B) the excess, if any, of (1) the then current Fair Market Value per Share over (2) the
Option exercise price, divided by (ii) the then current Fair Market Value per Share. No Shares will be issued upon exercise
of an Option until full payment therefor has been made.  A Participant will not have the right to distributions or dividends,
to vote, or any other rights of a stockholder with respect to Shares subject to the Option until the Participant has given written
notice of exercise, has paid in full for such Shares, if requested, has given the representation described in Section 16(a)
hereof and fulfills such other conditions as may be set forth in the applicable Award Agreement.

 

(e)        Termination
of Services.  Unless otherwise specified with respect to a particular Option in the applicable Award Agreement or otherwise
determined by the Committee, any portion of an Option that is not exercisable upon termination of service will expire immediately
and automatically upon such termination and any portion of an Option that is exercisable upon termination of service will expire
on the date it ceases to be exercisable in accordance with this Section 6.

 

(i)        If
a Participant’s service with the Company terminates by reason of death, any Option held by such Participant may thereafter
be exercised, to the extent it was exercisable at the time of his or her death or on such accelerated basis as the Committee may
determine at or after grant, by the legal representative of the estate or by the legatee of the Participant, for a period expiring
(A) at such time as may be specified by the Committee at or after grant; (B) if not specified by the Committee , then
12 months from the date of death; or (C) if sooner than the applicable period specified under (A) or (B) above, upon the
expiration of the stated term of such Option.

 

    	 	- 8 -	 

     

    

 

(ii)        If
a Participant’s service with the Company terminates by reason of Disability, any Option held by such Participant may thereafter
be exercised by the Participant or his personal representative, to the extent it was exercisable at the time of termination, or
on such accelerated basis as the Committee may determine at or after grant, for a period expiring (A) at such time as may
be specified by the Committee at or after grant; (B) if not specified by the Committee, then 12 months from the date of termination
of service; or (C) if sooner than the applicable period specified under (A) or (B) above, upon the expiration of the stated
term of such Option.

 

(iii)        If
a Participant’s service with the Company is terminated for Cause: (A) any Option, or portion thereof, not already exercised
will be immediately and automatically forfeited as of the date of such termination; and (B) any Shares for which the Company
has not yet delivered share certificates will be immediately and automatically forfeited and the Company will refund to the Participant
the Option exercise price paid for such Shares, if any.

 

(iv)        If
a Participant’s service with the Company terminates for any reason other than death, Disability or Cause, any Option held
by such Participant may thereafter be exercised by the Participant, to the extent it was exercisable at the time of such termination,
or on such accelerated basis as the Committee may determine at or after grant, for a period expiring (A) at such time as
may be specified by the Committee at or after grant; (B) if not specified by the Committee, then 90 days from the date of
termination of service; or (C) if sooner than the applicable period specified under (A) or (B) above, upon the expiration
of the stated term of such Option.

 

SECTION 7. 
Restricted Stock.

 

(a)        Issuance. 
Restricted Stock may be issued either alone or in conjunction with other Awards.  The Committee will determine the time or
times within which Restricted Stock may be subject to forfeiture, and all other conditions of such Awards.  The purchase
price for Restricted Stock may, but need not, be zero.  The prospective recipient of an Award of Restricted Stock will not
have any rights with respect to such Award, unless and until such recipient has delivered to the Company an executed Award Agreement
and has otherwise complied with the applicable terms and conditions of such Award.

 

(b)        Certificates. 
Upon the Award of Restricted Stock, the Committee may direct that a certificate or certificates representing the number of shares
of Common Stock subject to such Award be issued to the Participant or placed in a restricted stock account (including an electronic
account) with the transfer agent and in either case designating the Participant as the registered owner. The certificate(s) representing
such shares shall be physically or electronically legended, as applicable, as to sale, transfer, assignment, pledge or other encumbrances
during the Restriction Period and if issued to the Participant, returned to the Company, to be held in escrow during the Restriction
Period. As a condition to any Award of Restricted Stock, the Participant may be required to deliver to the Company a share power,
endorsed in blank, relating to the Shares covered by such Award.

 

    	 	- 9 -	 

     

    

 

(c)        Restrictions
and Conditions.  The Award Agreement evidencing the grant of any Restricted Stock will incorporate the following terms
and conditions and such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee deems appropriate
in its sole and absolute discretion:

 

(i)        During
a period commencing with the date of an Award of Restricted Stock and ending at such time or times as specified by the Committee
(the “Restriction Period”), the Participant will not be permitted to sell, transfer, pledge, assign
or otherwise encumber Restricted Stock awarded under the Plan.  The Committee may condition the lapse of restrictions on
Restricted Stock upon the continued employment or service of the recipient, the attainment of specified individual or corporate
performance goals, or such other factors as the Committee may determine, in its sole and absolute discretion.

 

(ii)        While
any Share of Restricted Stock remains subject to restriction, the Participant will have, with respect to the Restricted Stock,
the right to vote the Shares, but will not have the right to receive any cash distributions or dividends prior to the lapse of
the Restriction Period underlying such Shares unless otherwise provided under the applicable Award Agreement or as determined
by the Committee.  If any cash distributions or dividends are payable with respect to the Restricted Stock, the Committee,
in its sole discretion, may require the cash distributions or dividends to be subjected to the same Restriction Period as is applicable
to the Restricted Stock with respect to which such amounts are paid, or, if the Committee so determines, reinvested in additional
Restricted Stock to the extent Shares are available under Section 4(a) of the Plan.  A Participant shall not
be entitled to interest with respect to any dividends or distributions subjected to the Restriction Period.  Any distributions
or dividends paid in the form of securities with respect to Restricted Stock will be subject to the same terms and conditions
as the Restricted Stock with respect to which they were paid, including, without limitation, the same Restriction Period.

 

(d)        Termination
of Services.  Subject to the provisions of the applicable Award Agreement or as otherwise determined by the Committee,
if a Participant’s service with the Company terminates for any reason prior to the expiration of the applicable Restriction
Period, the Participant’s Restricted Stock that then remains subject to forfeiture will then be forfeited automatically.
The foregoing notwithstanding, any Shares of Restricted Stock shall become free of all restriction if, during the Restriction
Period, the Participant’s service with the Company terminates as a result of (i) the death or Disability of the Participant;
(ii) the Participant retires after attaining the age of 591⁄2 years of age and five years of continuous service with
the Company.

 

    	 	- 10 -	 

     

    

 

SECTION 8. 
Unrestricted Stock.  Unrestricted Stock may be issued either alone or in conjunction with other Awards. 
Upon the Award of Unrestricted Stock, the Committee may direct that a certificate or certificates representing the number of Shares
of Common Stock subject to such Award be issued to the Participant or placed in an unrestricted stock account (including an electronic
account) with the transfer agent and in either case designating the Participant as the registered owner.

 

SECTION 9. 
Performance Based Awards.

 

(a)        Performance
Awards Generally.  The Committee may grant Performance Awards in accordance with this Section 9.  Performance
Awards may be denominated as a number of Shares, or a specified number of other Awards, which may be earned upon achievement or
satisfaction of such Performance Goals as may be specified by the Committee.  In addition, the Committee may specify that
any other Award shall constitute a Performance Award by conditioning the vesting or settlement of the Award upon the achievement
or satisfaction of such Performance Goals as may be specified by the Committee.

 

(b)        Adjustments
to Performance Goals.  The Committee may provide, at the time Performance Goals are established, that adjustments will
be made to those performance goals to take into account, in any objective manner specified by the Committee, the impact of one
or more of the following: (i) gain or loss from all or certain claims and/or litigation and insurance recoveries; (ii) the
impairment of tangible or intangible assets; (iii) stock-based compensation expense; (iv) restructuring activities reported
in the Company’s public filings; (v) investments, dispositions or acquisitions; (vi) loss from the disposal of
certain assets; (vii) gain or loss from the early extinguishment, redemption or repurchase of debt; (viii) changes in
accounting principles; or (ix) any other item, event or circumstance that would not cause an Award to fail to constitute
“qualified performance-based compensation” under Section 162(m) of the Code (to the extent such Award is intended
to be “qualified performance-based compensation”).  An adjustment described in this Section may relate to the
Company or to any subsidiary, division or other operational unit of the Company, as determined by the Committee at the time the
performance goals are established.  Any adjustment shall be determined in accordance with generally accepted accounting principles
and standards, unless such other objective method of measurement is designated by the committee at the time performance objectives
are established.  In addition, adjustments will be made as necessary to any performance criteria related to the Company’s
stock to reflect changes in corporate capitalization, including a recapitalization, stock split or combination, stock dividend,
spin-off, merger, reorganization or other similar event or transaction affecting the Company’s equity.

 

(c)        Other
Terms of Performance Awards.  The Committee may specify other terms pertinent to a Performance Award in the applicable
Award Agreement, including terms relating to the treatment of that Award in the event of a Change in Control prior to the end
of the applicable performance period.  The Participant shall not have any shareholder rights with respect to the Shares subject
to a Performance Award until the Shares are actually issued thereunder.  Subject to the provisions of the applicable Award
Agreement or as otherwise determined by the Committee, if a Participant’s service with the Company terminates prior to the
Performance Award vesting, the Participant’s Performance Award or portion thereof that then remains subject to forfeiture
will then be forfeited automatically.

 

    	 	- 11 -	 

     

    

 

SECTION 10. 
Amendments and Termination.  The Board may amend, alter or discontinue the Plan at any time.  However, except
as otherwise provided in Section 4, no amendment, alteration or discontinuation will be made which would impair the
rights of a Participant with respect to an Award without that Participant’s consent.

 

SECTION 11. 
Prohibition on Repricing Programs.  Neither the Committee nor the Board shall (i) implement any cancellation/re-grant
program pursuant to which outstanding Options under the Plan are cancelled and new Options are granted in replacement with a lower
exercise or base price per share; (ii) cancel outstanding Options under the Plan with exercise prices or base prices per
share in excess of the then current Fair Market Value per Share for consideration payable in equity securities of the Company;
or (iii) otherwise directly reduce the exercise price or base price in effect for outstanding Options under the Plan, without
in each such instance obtaining shareholder approval.

 

SECTION 12. 
Conditions Upon Grant of Awards and Issuance of Shares.

 

(a)        The
implementation of the Plan, the grant of any Award and the issuance of Shares in connection with the issuance, exercise or vesting
of any Award made under the Plan shall be subject to the Company’s procurement of all approvals and permits required by
regulatory authorities having jurisdiction over the Plan, the Awards made under the Plan and the Shares issuable pursuant to those
Awards.

 

(b)        No
Shares or other assets shall be issued or delivered under the Plan unless and until there shall have been compliance with all
applicable requirements of Applicable Law, including the filing and effectiveness of the Registration Statement on Form S-8
for the Shares issuable under the Plan and any interest in the Plan, and all applicable listing requirements of any stock exchange
on which Shares are then listed for trading.

 

SECTION 13. 
Limits on Transferability; Beneficiaries.  No Award or other right or interest of a Participant under the Plan
shall be pledged, encumbered, or hypothecated to, or in favor of, or subject to any lien, obligation, or liability of such Participant
to, any person, other than the Company, or assigned or transferred by such Participant otherwise than by will or the laws of descent
and distribution, and such Awards and rights shall be exercisable during the lifetime of the Participant only by the Participant
or his or her guardian or legal representative. Notwithstanding the foregoing, the Committee may, in its discretion, provide that
Awards or other rights or interests of a Participant granted pursuant to the Plan be transferable, without consideration, to immediate
family members (i.e., children, grandchildren or spouse), to trusts for the benefit of such immediate family members, to retirement
plans and other accounts in the name and for the benefit of such Participant (and to the beneficiaries designated in such retirement
plans), and to partnerships in which such family members are the only partners. The Committee may attach to such transferability
feature such terms and conditions as it deems advisable. In addition, a Participant may, in the manner established by the Committee,
designate a beneficiary (which may be a person or a trust) to exercise the rights of the Participant, and to receive any distribution,
with respect to any Award upon the death of the Participant. A beneficiary, guardian, legal representative or other person claiming
any rights under the Plan from or through any Participant shall be subject to all terms and conditions of the Plan and any Award
Agreement applicable to such Participant, except as otherwise determined by the Committee, and to any additional restrictions
deemed necessary or appropriate by the Committee.

 

    	 	- 12 -	 

     

    

 

SECTION 14. 
Withholding.  No later than the date as of which an amount first becomes includible in the gross income of the
Participant for federal income tax purposes with respect to any Award under the Plan, the Participant will pay to the Company,
or make arrangements satisfactory to the Company regarding the payment of, any federal, state or local taxes of any kind required
by law to be withheld with respect to such amount.  The minimum required withholding obligations may be settled with Shares,
including Shares that are part of the Award that gives rise to the withholding requirement.  The obligations of the Company
under the Plan will be conditioned on such payment or arrangements and the Company will have the right to deduct any such taxes
from any payment of any kind otherwise due to the Participant.

 

SECTION 15. 
Liability of Company.

 

(a)        Inability
to Obtain Authority.  If the Company cannot, by the exercise of commercially reasonable efforts, obtain authority from
any regulatory body having jurisdiction for the sale of any Shares under this Plan, and such authority is deemed by the Company’s
counsel to be necessary to the lawful issuance of those Shares, the Company will be relieved of any liability for failing to issue
or sell those Shares.

 

(b)        Grants
Exceeding Allotted Shares.  If Shares subject to an Award exceed, as of the date of grant, the number of Shares which
may be issued under the Plan without additional shareholder approval, that Award will be contingent with respect to such excess
Shares, on the effectiveness under Applicable Law of a sufficient increase in the number of Shares subject to this Plan.

 

(c)        Rights
of Participants and Beneficiaries.  The Company will pay all amounts payable under this Plan only to the applicable Participant,
or beneficiaries entitled thereto pursuant to this Plan.  The Company will not be liable for the debts, contracts, or engagements
of any Participant or his or her beneficiaries, and rights to cash payments under this Plan may not be taken in execution by attachment
or garnishment, or by any other legal or equitable proceeding while in the hands of the Company.

 

(d)        Tax
Consequences.  The Company will not have any liability or other obligations relating to any tax consequence expected,
but not realized, by any Participant or other person as a result of the grant, vesting, expiration, termination or exercise an
Award under this Plan.

 

SECTION 16. 
General Provisions.

 

(a)        The
Board may require each Participant to represent to and agree with the Company in writing that the Participant is acquiring securities
of the Company for investment purposes and without a view to distribution thereof and as to such other matters as the Board believes
are appropriate.

 

    	 	- 13 -	 

     

    

 

(b)        All
certificates for Shares or other securities delivered under the Plan will be subject to such share-transfer orders and other restrictions
as the Board may deem advisable under the rules, regulations and other requirements of the Securities Act of 1933, as amended,
the Exchange Act, any stock exchange upon which the Shares are then listed, and any other Applicable Law, and the Board may cause
a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

(c)        Nothing
contained in the Plan will prevent the Board from adopting other or additional compensation arrangements, subject to stockholder
approval if such approval is required.

 

(d)        Neither
the adoption of the Plan nor the execution of any document in connection with the Plan will: (i) confer upon any employee
or other service provider of the Company any right to continued employment or engagement with the Company; or (ii) interfere
in any way with the right of the Company to terminate the employment or engagement of any of its employees or other service providers
at any time.

 

(e)        Notwithstanding
any other provisions in this Plan, any Award which is subject to recovery under any law, government regulation or stock exchange
listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government
regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation
or stock exchange listing requirement).

 

SECTION 17. 
Effective Date of Plan.  The Plan will become effective on the date that it is adopted by the Board; provided,
that any Award that would require the Plan to be approved by the Company’s stockholders under Applicable Law shall not be
effective until the Plan is so approved.

 

SECTION 18. 
Term of Plan.  Unless the Plan shall theretofore have been terminated in accordance with Section 10,
the Plan shall terminate on November 9, 2025, and no Awards under the Plan shall thereafter be granted.

 

SECTION 19. 
Invalid Provisions.  In the event that any provision of this Plan is found to be invalid or otherwise unenforceable
under any Applicable Law, such invalidity or unenforceability will not be construed as rendering any other provisions contained
herein as invalid or unenforceable, and all such other provisions will be given full force and effect to the same extent as though
the invalid or unenforceable provision was not contained herein.

 

SECTION 20. 
Governing Law.  The Plan and all Awards granted hereunder will be governed by and construed in accordance with
the laws and judicial decisions of the State of Nevada, without regard to the application of the principles of conflicts of laws.

 

SECTION 21. 
Notices.  Any notice to be given to the Company pursuant to the provisions of this Plan must be given in writing
and addressed, if to the Company, to its principal executive office to the attention of its Chief Financial Officer (or such other
Person as the Company may designate in writing from time to time), and, if to a Participant, to the address contained in the Company’s
personnel files, or at such other address as that Participant may hereafter designate in writing to the Company.  Any such
notice will be deemed duly given: if delivered personally or via recognized overnight delivery service, on the date and at the
time so delivered; if sent via telecopier or email, on the date and at the time telecopied or emailed with confirmation of delivery;
or, if mailed, five days after the date of mailing by registered or certified mail.

 

 

-
14 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}]]