Document:

Exhibit 10.14

FORM OF

AWARD AGREEMENT UNDER THE

VAALCO ENERGY, INC.

2003 STOCK INCENTIVE PLAN

THIS AWARD AGREEMENT (the “Agreement”) is entered into this ___________ day of _____________ (the “Grant Date”), between VAALCO Energy, Inc., a Delaware corporation (the “Company”) and ___________________________ (“Grantee”), pursuant to the provisions of the VAALCO Energy, Inc. 2003 Stock Incentive Plan (the “Plan”).  The Plan Administrator of the Company has determined that Grantee is eligible to participate as a Grantee under the Plan, and, to carry out its purposes, has this day authorized the grant, pursuant to the Plan, of the option set forth below to Grantee.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties do hereby agree as follows: 

1.  Grant of Option.  Subject to all of the terms, conditions and provisions of the Plan and of this Agreement, the Company hereby grants to Grantee a stock option (“Option”) under the Plan pursuant to which Grantee shall have the right and option to purchase from the Company all or any part of an aggregate of 500 shares of the common stock of the Company, $0.10 par value per share (the “Common Stock”), which shall consist of authorized and unissued or treasury shares. 

2.  Option Price.  The purchase price payable by Grantee to the Company in exercise of the Option shall be $___________ per share (the “Option Price”), being the Fair Market Value of the Common Stock of the Company on the Grant Date as determined in accordance with the Plan.  Upon exercise of the Option, the Grantee shall pay to the Company, in full, the Option Price for the shares of Common Stock issuable pursuant to such exercise with cash, check payable to the Company or Common Stock (valued at Fair Market Value on the date of such exercise), including shares of Common Stock Grantee is entitled to receive upon exercise of the Option.  The Company may issue only such number of shares of Common Stock net of the number of shares sufficient to satisfy tax-withholding requirements under the Plan or otherwise. 

3.  Vesting Date and Option Term.  Grantee shall be entitled to exercise that portion of the Option becoming vested pursuant to the schedule set forth below.  Grantee shall be entitled to exercise the Option beginning on the applicable “Vesting Date” set forth below for that number of shares of Common Stock determined by multiplying the aggregate number of shares set forth in paragraph (1) hereof by the applicable “Vesting Percentage” set forth below.  Any Option which remains unexercised on the 5th anniversary of the Grant Date shall expire (the “Option Term”). 

 

	
Vesting Date
	
 
	
Vesting Percentage
	
 
	
Cumulative Vesting Percentage

	
 
	
 
	
33%
	
 
	
33%

	
 
	
 
	
33%
	
 
	
66%

	
 
	
 
	
34%
	
 
	
100%

4.  Change in Control.  Notwithstanding paragraph (3) hereof, upon a Change in Control (as defined hereinafter), all unvested portions of the Option shall automatically vest.  For purposes hereof, a “Change in Control” shall have occurred if (i) any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 50% of the total voting power of the outstanding capital stock of the Company; (ii) the Company enters into an agreement to merge or consolidate, or is merged with or into or consolidated, with another person or group and, immediately after giving effect to the merger or consolidation, (x) less than 50% of the total voting power of the outstanding capital stock of the surviving or resulting person or group is then “beneficially owned” (within the meaning of Rule 13d-3 under the Exchange Act) in the aggregate by the stockholders of the Company immediately prior to such merger or consolidation, or (y) any “person” or “group” (as defined in Section 13(d)(3) or 14(d)(2) of the Exchange Act) has become the direct or indirect “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of more than 50% of the total voting power of the outstanding capital stock of the surviving or resulting person or group; (iii) the Company agrees to sell, assign, convey, transfer, lease or otherwise dispose of all or substantially all of the Company’s assets (either in one transaction or a series of related transactions) or enters into an agreement to do any of the foregoing; (iv) during any consecutive two-year period, individuals who at the beginning of such period constituted the Board of Directors of the Company (together with any new directors whose election by such Board of Directors or whose nomination for election by the stockholders of the Company was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors of the Company then in office; or (v) the liquidation or dissolution of the Company. 

 

1

 

5.  Termination of Employment upon Death.  Notwithstanding paragraph (3) hereof and subject to Section 2.7 of the Plan, in the event Grantee’s employment with the Company is terminated due to the death of Grantee, all unvested portions of the Option shall automatically vest and shall be exercisable until the earlier of (a) the remaining term of the Option under paragraph (3), and (b) one year following the date of death. 

6.  Termination of Employment upon Disability or Retirement.  Notwithstanding paragraph (3) hereof and subject to Section 2.7 of the Plan, in the event Grantee’s employment with the Company is terminated due to the disability or retirement of Grantee, all unvested portions of the Option shall automatically vest and shall be exercisable until the earlier of (a) the remaining term of the Option under paragraph (3), and (b) one year following the effective date of termination.  For purposes hereof, disability of Grantee shall be the physical or mental inability of Grantee to carry out the normal and usual duties of his employment on a full-time basis for an entire period of 120 continuous days together with the reasonable likelihood as determined by the Plan Administrator that Grantee, upon the advice of a qualified physician, will be unable to carry out the normal and usual duties of his employment. 

7.  Termination of Employment for Cause.  Notwithstanding paragraph (3) hereof and subject to Section 2.7 of the Plan, if Grantee’s employment is terminated “for cause,” upon written Notice of Termination for cause given by the Company to Grantee, the Option granted hereunder shall terminate and Grantee shall no longer have the right and option to purchase from the Company any vested or unvested portion of the Option.  As used herein, “for cause” shall mean any of the following events: (i) willful misconduct or intentional and continual neglect of duties which in the business judgment of the Board of Directors (excluding Grantee) has materially adversely affected the Company; provided, however, that Grantee shall have first received written notice from such Board of Directors advising Grantee of the acts or omissions that constitute the misconduct or neglect of duties, and such misconduct or neglect of duties continues after Grantee shall have had a reasonable opportunity to correct the same; (ii) the commission by the Grantee of an act of fraud or embezzlement; (iii) the commission by the Grantee of any other action with the intent to injure the Company; (iv) theft or conviction of a felony or any crime involving dishonesty or moral turpitude; (v) the Grantee having misappropriated the property of the Company; (vi) the Grantee having willfully violated any law or regulation relating to the business of the Company which results in material injury to the Company; or (vii) willful and continual failure or refusal to substantially perform employment duties (other than any such failure resulting from Grantee's incapacity due to physical or mental illness); provided, however, that Grantee shall have first received written notice from the Board of Directors advising Grantee of the acts or omissions that constitute the failure or refusal to substantially perform duties, and such failure or refusal continues after Grantee shall have had a reasonable opportunity to correct the same. 

For purposes of this paragraph, no act, or failure to act, on Grantee’s part shall be considered “willful” unless done, or omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in the best interest of the Company.  Notwithstanding the foregoing, Grantee shall not be deemed to have been terminated for cause without (i) reasonable notice to Grantee setting forth the reasons for the Company's intention to terminate for cause and (ii) an opportunity for Grantee, together with his counsel, to be heard before the Board of Directors 

Termination for cause shall require the vote of a majority of the members of the Company's Board of Directors, excluding Grantee. 

8.  Termination of Employment for Other Reasons.  Notwithstanding paragraph (3) hereof, if the Grantee’s employment with the Company is terminated by the Company other than pursuant to paragraphs (4), (5), (6) or (7), all vested portions of the Option shall be exercisable until the earlier of (a) the remaining term of the Option under paragraph (3), and (b) 120 days following the effective date of termination. 

9.  No Employment Commitment.  Grantee acknowledges that neither the grant of the Options nor the execution of this Agreement by the Company shall be interpreted or construed as imposing upon the Company an obligation to retain his services for any stated period of time, which employment shall continue to be at the pleasure of the Company at such compensation as it shall determine, unless otherwise provided in a written employment agreement. 

10. Grantee's Agreement.  Grantee expressly and specifically agrees that: 

(a) With respect to the calendar year in which any portion of the Option is exercised, the Grantee shall include in his gross income for federal income tax purposes the amount, if any, by which the Fair Market Value (as determined in accordance with the Plan) of the Common Stock issuable on the date of exercise exceeds the option price; and

(b) The grant of the Options is special incentive compensation which shall not be taken into account as “wages” or “salary” in determining the amount of payment or benefit to the Grantee under any pension, thrift, stock or deferred compensation plan of the Company; and

 

2

 

(c) On behalf of Grantee's beneficiary, such grant shall not affect the amount of any life insurance coverage available to such beneficiary under any life insurance plan covering employees of the Company.

11. Other Terms, Conditions and Provisions.  The Option herein granted by the Company to Grantee is granted subject to all of the terms, conditions and provisions of the Plan.  Grantee hereby acknowledges receipt of a copy of the Plan and the parties agree that the entire text of such Plan be, and it is, hereby incorporated herein by reference as fully as if copied herein in full.  Reference to such Plan is therefore made for a full description of the rights and methods of exercise of the Option, the adjustments to be made in the event of changes in the capital structure of the Company, and of all of the other provisions, terms and conditions of the Plan applicable to the Option granted herein.  If any of the provisions of this Agreement shall vary from or be in conflict with the Plan, the provisions of the Plan shall be controlling.  All capitalized terms not defined in this Agreement shall have the meaning ascribed to it in the Plan. 

12. Non-Transferability.  The Option granted hereunder is not transferable or assignable by Grantee except by will or the laws of descent and distribution. 

[Signature page follows]

 

3

 

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

 

	
ATTEST:
	
 
	
VAALCO ENERGY, INC.

	
By:
	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
OPTIONEE

	
 
	
 
	
 
	
 
	
 

 

 

4Exhibit 10.16

VAALCO ENERGY, INC.

FORM OF

NONSTATUTORY STOCK OPTION AGREEMENT

Optionee:

1.  Grant of Stock Option.  As of the Grant Date (identified in Section 19 below), VAALCO Energy, Inc., a Delaware corporation (the “Company”) hereby grants a Nonstatutory Stock Option (the “Option”) to the Optionee (identified above), an Employee of the Company, to purchase the number of shares of the Company’s common stock, $.10 par value per share (the “Common Stock”), identified in Section 19 below (the “Shares”), subject to the terms and conditions of this agreement (the “Agreement”) and the VAALCO Energy, Inc. 2007 Stock Incentive Plan (the “Plan”).  The Plan is hereby incorporated herein in its entirety by reference.  The Shares, when issued to Optionee upon the exercise of the Option, shall be fully paid and nonassessable.  The Option is not an “incentive stock option” as defined in Section 422 of the Internal Revenue Code. 

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

3.  Option Term.  The Option shall commence on the Grant Date (identified in Section 19 below) and terminate on the fifth (5th) anniversary of the Grant Date as specified in Section 19. The period during which the Option is in effect and may be exercised is referred to herein as the “Option Period”. 

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

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

6.  Method of Exercise.  The Option is exercisable by delivery of a written notice to the Secretary of the Company, signed by the Optionee, specifying the number of Shares to be acquired on, and the effective date of, such exercise.  The Optionee may withdraw notice of exercise of this Option, in writing, at any time prior to the close of business on the business day that immediately precedes the proposed exercise date. 

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

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

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

 

1

 

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

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

(b) Retirement.  If Optionee’s Employment is terminated for Retirement on or after Optionee attains the age of 65 years and has completed at least three (3) years of service as an Employee, then the non-vested portion of the Option shall immediately vest on the termination date and the Option shall expire to the extent not exercised before the expiration of the period ending 180 calendar days after the date of such termination of Employment.  In no event may the Option be exercised after the earlier of (i) the expiration of the Option Period or (ii) expiration of the period ending 180 calendar days after the date of termination of Employment due to Retirement.  

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

(d) Other Involuntary Termination or Voluntary Termination.  If Optionee’s Employment is terminated for any reason other than for Cause, Retirement, death or Disability, then (i) the non-vested portion of the Option shall immediately expire on the termination of Employment date and (ii) the vested portion of the Option shall expire to the extent not exercised within 120 calendar days after such termination date.  In no event may the Option be exercised by anyone after the earlier of (i) the expiration of the Option Period or (ii) 120 calendar days after the termination of Employment date even if Optionee becomes deceased during such period.  

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

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

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

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

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

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

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

 

2

 

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

18. General. 

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

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

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

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

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

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

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

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

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

(a) Optionee: 

(b) Grant Date: 

(c) Shares:  

(d) Option Price: 

(e) Option Period: 

(f) Vesting Schedule:

33.33% Vested

33.33% Vested

33.33% Vested

Notwithstanding the above vesting schedule, in the event of a “Change of Control” of the Company (as defined in the Plan at the time of such event), the non-vested portion of the Option at such time shall become immediately 100% vested as of the Change in Control date.

[Signature page follows.]

 

 

 

 

3

 

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

 

	
VAALCO ENERGY, INC.

	
 
	
 

	
By:  
	
 

	
Name: 
	
 

	
Title:
	
 

	
 
	
 

	
Address for Notices:

	
 
	
 

	
VAALCO Energy, Inc.

	
4600 Post Oak Place, Suite 309

	
Houston, Texas 77027

	
Attn:
	
 

	
 
	
 

	
OPTIONEE

	
 

	
Signature

	
 

	
Address for Notices:

	
 

	
 

	
 

 

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}]]