<SEC-DOCUMENT>0001193125-14-184626.txt : 20140506
<SEC-HEADER>0001193125-14-184626.hdr.sgml : 20140506
<ACCEPTANCE-DATETIME>20140506150600
ACCESSION NUMBER:		0001193125-14-184626
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140430
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140506
DATE AS OF CHANGE:		20140506

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VAALCO ENERGY INC /DE/
		CENTRAL INDEX KEY:			0000894627
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				760274813
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32167
		FILM NUMBER:		14816677

	BUSINESS ADDRESS:	
		STREET 1:		4600 POST OAK PL STE 309
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77027
		BUSINESS PHONE:		713-623-0801

	MAIL ADDRESS:	
		STREET 1:		4600 POST OAK PL STE 309
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77027
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d722811d8k.htm
<DESCRIPTION>8-K
<TEXT>
<HTML><HEAD>
<TITLE>8-K</TITLE>
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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM 8-K
</B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant
to Section&nbsp;13 or 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>of the Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported): April&nbsp;30, 2014 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>VAALCO Energy, Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in is charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>001-32167</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>76-0274813</B></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>of incorporation)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File Number)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>4600 Post Oak Place, Suite 309 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Houston, Texas 77027 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Address, including zip code, of principal executive offices) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Registrant&#146;s telephone number, including area code: (713)&nbsp;623-0801 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Section&nbsp;1 &#150; Registrant&#146;s Business and Operations </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;1.01. Entry into a Material Definitive Agreement. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On April&nbsp;30, 2014, VAALCO Energy, Inc. (the &#147;Company&#148;) reached an agreement (&#147;severance and consulting agreement&#148;) with Robert L.
Gerry III, pursuant to which Mr.&nbsp;Gerry will provide consulting services to the Company commencing immediately following the 2014 Annual Meeting of Stockholders of the Company and continuing until December, 31, 2015. Mr.&nbsp;Gerry will receive
an aggregate of $100,000, payable in equal monthly installments during the term of the consulting agreement, and will be entitled to office space at the Company&#146;s offices and to reimbursement of his expenses incurred under the agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In addition, Mr.&nbsp;Gerry will not stand for re-election as a director at the 2014 Annual Meeting and plans to retire as Chairman of the Board of Directors
immediately following 2014 Annual Meeting. The severance and consulting agreement provides that Mr.&nbsp;Gerry will be paid a severance payment of $300,000, payable in 19 equal monthly installments commencing on June&nbsp;30, 2014. The Company also
will reimburse Mr.&nbsp;Gerry for premiums he pays for supplemental health insurance until December&nbsp;31, 2015, up to an aggregate amount that Mr.&nbsp;Gerry would have been required to pay if he had been eligible for COBRA coverage under the
Company&#146;s health insurance plan. The consulting and severance agreement contains releases of claims, indemnification and other provisions customary in severance agreements for executive officers. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The option awards previously made to Mr.&nbsp;Gerry under the Company&#146;s long term incentive plans will be amended so that they will expire, unless
exercised, on December&nbsp;31, 2015, unless such option agreements would have expired at an earlier date without regard to Mr.&nbsp;Gerry&#146;s retirement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company and Mr.&nbsp;Gerry plan to execute the agreement following the 2014 Annual Meeting. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">A copy of the consulting and severance agreement is attached as Exhibit 10.1 to this Form 8-K and is incorporated herein by reference. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Section&nbsp;5 &#151; Corporate Governance and Management </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers. </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The information set forth in Item&nbsp;1.01 is incorporated into this Item&nbsp;5.01. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Section&nbsp;9 &#150; Financial Statements and Exhibits </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;9.01(d). Exhibits </B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" NOWRAP>10.1</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top">Form of Consulting and Severance Agreement to be entered into by Robert L. Gerry III and VAALCO Energy, Inc.</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURE </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" COLSPAN="3"><B>VAALCO ENERGY, INC.</B></TD></TR>
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<TD VALIGN="top">Dated: May&nbsp;6, 2014</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1.00pt solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Gregory R. Hullinger</P></TD></TR>
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<TD VALIGN="top">Gregory R. Hullinger</TD></TR>
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<TD VALIGN="top">Chief Financial Officer</TD></TR>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d722811dex101.htm
<DESCRIPTION>EX-10.1
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">Exhibit 10.1 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SEVERANCE AND CONSULTING AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B></B>This Severance and Consulting Agreement (&#147;<B>Agreement</B>&#148;) is made and entered into as of June&nbsp;4, 2014
(&#147;<B>Effective Date</B>&#148;), by and between VAALCO Energy, Inc. (the&nbsp;&#147;<B>Company</B>&#148;) and Robert L. Gerry III (&#147;<B>Executive</B>&#148;). The Company and Executive may be individually referred to herein as
&#147;<B>Party</B>&#148; and collectively as &#147;<B>Parties</B>&#148;.<B> </B></P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>RECITALS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, Executive is the Chairman of the Board of Directors of the Company (&#147;Chairman&#148;) and previously served in various
employment capacities for the Company, including as its Chief Executive Officer; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, Executive and Company are parties to
the agreements listed in <U>Exhibit A</U>; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, the Company and Executive agree that Executive will retire from his
employment with the Company and as Chairman effective as of June&nbsp;4, 2014 (the &#147;<B>Retirement Date</B>&#148;) and be paid the Severance Payments provided for herein, subject to the terms and conditions hereafter set forth; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, the Company desires to avail itself of the experience, sources of information, advice and assistance which Executive possesses
and, in turn, to give Executive certain duties as a non-employee consultant to the Company and as &#147;Chairman Emeritus&#148; to its Board of Directors (the <B>&#147;</B><B>Board</B>&#148;), as described in this Agreement; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, the Company desires to continue to secure the services of Executive, as a non-employee consultant to the Company, subject to
the terms and conditions hereafter set forth; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, Executive is willing to enter into this Agreement subject to the terms
and conditions hereafter set forth; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>NOW, THEREFORE</B>, in consideration of the mutual promises, covenants and obligations contained
herein, the Parties hereby agree as follows:<B> </B></P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Article I. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>Retirement and Release of Claims </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.1 <B><U>Definitions and Interpretation</U>.</B> Various terms used in this Agreement are defined in <U>Section&nbsp;5.1</U>, and
interpretative matters are described in <U>Section&nbsp;5.2</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.2 <B><U>Retirement from the Company</U>.</B> Executive shall
voluntarily retire from all positions as a director, officer and employee of the Company and its Affiliates, including his position as Chairman, effective as of the Retirement Date. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.3 <B><U>Release of Claims</U></B>. As a condition to the receipt of the Severance Payments and
Consultant Compensation described in <U>Section&nbsp;2.7</U> and <U>Section&nbsp;2.7</U>, the Executive must first execute and return to the Company a release agreement (the &#147;<B>Release</B>&#148;) that is substantially in the same form as
attached hereto as <U>Exhibit B</U> (together with any changes to such form as the Company may reasonably require, in its discretion, to reflect any changes in applicable law or any agreement by the Company not to require a release with respect to
one or more particular claims or potential claims) following the Retirement Date. The Company will deliver the Release to Executive within five (5)&nbsp;days before the Retirement Date. The Executive must return the executed Release to the Company
within the applicable time period specified in the Release. No Severance Payments or Consultant Compensation shall be payable by the Company unless and until the Release has been executed by the Executive, has not been revoked by Executive, and is
no longer subject to revocation by Executive. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Release shall not release any claim or cause of action by or on behalf of the Executive
for (a)&nbsp;any payment or other benefit that is required under this Agreement or any Plan or Agreement noted on <U>Exhibit A</U> prior to the receipt of such benefit by or on behalf of the Executive or any other vested benefit to which Executive
is entitled, (b)&nbsp;a breach of this Agreement by the Company or (c)&nbsp;any claim or cause of action arising out of the Company&#146;s obligation to indemnify the Executive in his capacity as a director, officer or employee of the Company or any
Affiliate as provided in the Company&#146;s by-laws, any agreement to which the Executive is a party or beneficiary, at law, or otherwise. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.4 <B><U>Post-Termination Restrictive Covenants</U>.</B> As an inducement to the Company to enter into this Agreement, Executive represents
to, and covenants with or in favor of, the Company, his compliance with (a)&nbsp;Section&nbsp;2.12 of this Agreement (b)&nbsp;any written Company policies that apply to, or cover, Executive, including, without limitation, those regarding
non-disparagement, return of Company property, and confidentiality, and (c)&nbsp;the Company&#146;s written policies covering the Executive as an employee, officer or director of the Company or any Affiliate. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Article II. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>CONSULTING SERVICES AND SEVERANCE PAYMENTS </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.1 <B><U>Post-Employment Consulting Services</U>.</B> Subject to satisfaction of the requirements in <U>Section&nbsp;1.3</U> regarding the
Release, during the Consulting Term described in <U>Section&nbsp;2.3</U>, the Company shall retain Executive as a consultant to the Company in the capacity as an independent contractor and not as an employee of the Company, and Executive agrees to
serve as a non-employee consultant to the Company for the purpose of advising and assisting the Company and the Board pursuant to the terms and conditions of this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B></B>If and when requested by the Chief Executive Officer of the Company (&#147;<B>CEO</B>&#148;) or the Board (by resolution of the Board)
during the Consulting Term, Executive agrees to (a)&nbsp;advise and assist with respect to any aspect of the Company&#146;s operations; and (b)&nbsp;provide other advice to the Company or its Affiliate, or directly to the Board, and offer assistance
on other matters as reasonably requested from time to time, including, without limitation, attending meetings at such times as mutually agreed upon (everything in clauses (a)&nbsp;and (b)&nbsp;being collectively the <B></B>&#147;<B>Consultant
Services</B>&#148;). Executive shall not perform any Consultant Services without obtaining advance approval from the CEO or any member of the Board, or their delegates. <B> </B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top">The Parties hereby confirm and agree that the Executive shall be retained and engaged by the Company to provide Consulting Services as an independent contractor of the Company, and Executive&#146;s relationship to the
Company or any Affiliate during the Consulting Term shall be solely that of an independent contractor and not as a director, officer or employee. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top">The Company shall not have the right to direct, control, or supervise Executive in the performance of any of his duties during the Consulting Term. Executive possesses all the technical training, education, expertise,
experience, and industry contacts that are necessary to satisfactorily complete the Consulting Services for which he is engaged by the Company. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top">Executive shall have no authority or power to bind the Company or any Affiliate in relation to any third party, or to represent to any third party that Executive has any authority or power to bind the Company or any
Affiliate. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top">During the Consulting Term, Executive shall be provided with satisfactory office space, parking, equipment, business publications, and secretarial and other clerical support as appropriate to perform the Consulting
Services, all at no cost to Executive. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(e)</TD>
<TD ALIGN="left" VALIGN="top">During the Consulting Term, the Company shall continue to house the property of Executive, including, without limitation, artwork, books, and furniture, that is housed at the Company&#146;s office space as of the
Retirement Date so long as the housing of such property does not interfere with the Company&#146;s business or operations. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(f)</TD>
<TD ALIGN="left" VALIGN="top">The level of services to be provided to the Company by Executive during the Consulting Term shall be no more than twenty percent (20%)&nbsp;of the average level of services that the Executive provided to the Company
during the immediately preceding 36-month period prior to commencement of the Consulting Term, as determined under Code Section&nbsp;409A. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(g)</TD>
<TD ALIGN="left" VALIGN="top">Executive shall not be eligible to participate in any Plans as the result of his performance of Consulting Services and, for all purposes of such Plans, Executive shall be classified as a non-employee.
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(h)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE="font-family:Times New Roman; font-size:10pt">Unless otherwise instructed by the Board of Directors or any committee thereof, the Executive may attend all meetings of the Board of Directors and
each committee of the Board of Directors in the capacity of Chairman Emeritus, which shall not be a director or voting member of the Board. </P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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<TD WIDTH="13%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">
The Executive agrees that following the termination of this Agreement the Board may request that Executive continue to be Chairman Emeritus and Executive agrees to continue as Chairman Emeritus
under such terms as the Company and Executive shall mutually agree. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(i)</TD>
<TD ALIGN="left" VALIGN="top">Nothing in this Agreement shall prevent Executive from serving on the boards of outside entities or undertaking other consulting engagements during the Consulting Term, provided that such other board service or other
engagements shall not unreasonably interfere with Executive&#146;s performance under this Agreement, and the Executive obtains the prior written consent of the Company, which consent shall not be unreasonably withheld. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.2 <B><U>Cooperation</U>.</B> During the Consulting Term, the Executive shall cooperate with the Company and its Affiliates, and with the
legal counsel for the Company and any Affiliate, in connection with any present and future actual or threatened litigation, governmental, or administrative proceeding involving the Company or any Affiliate that relates to events, occurrences or
conduct occurring (or claimed to have been occurred) during his prior period of employment with the Company or with respect to the Consulting Services. This cooperation by the Executive shall include, but not be limited to: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top">making himself reasonably available for interviews and discussions with counsel as well as for depositions and trial testimony; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top">if depositions or trial testimony are to occur, making himself available and cooperating in such preparation as and to the extent that the Company or counsel reasonably requests; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top">refraining from impeding in any way with the prosecution or defense of such litigation or administrative proceeding by the Company or an Affiliate; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top">cooperating in the development and presentation of the prosecution or defense of such litigation or administrative proceeding by the Company or an Affiliate; and </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(e)</TD>
<TD ALIGN="left" VALIGN="top">if Executive is subpoenaed or contacted to cooperate in any manner by a non-governmental party concerning any matter related to the Company or an Affiliate, Executive shall promptly notify the Company before responding
or cooperating. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Nothing in this Section&nbsp;2.2 shall prohibit Executive from complying with any legal obligations or responding
truthfully in connection with any investigation, administrative or regulatory proceeding or litigation. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.3 <B><U>Term of Agreement</U>.</B> Unless earlier terminated (a)&nbsp;by the Company pursuant
to this <U>Section&nbsp;2.3,</U> (b)&nbsp;automatically upon the dissolution, winding-up or termination of the Company or (c)&nbsp;automatically upon the death or Disability of the Executive, this Agreement shall commence on the Effective Date and
shall continue in effect through the end of the Consulting Term. The Consulting Term shall begin on the date that is eight (8)&nbsp;days after the signed Release is returned to the Company pursuant to <U>Section&nbsp;1.3</U>, and shall end as of the
close of business on December&nbsp;31, 2015, unless extended as set out below in this <U>Section&nbsp;2.3</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Commencing on
January&nbsp;1, 2016, the Company and Executive shall have the option to extend the Consulting Term by mutual written agreement for a mutually agreeable time period and under mutually agreeable terms and conditions. Notwithstanding the foregoing,
the Consulting Term may be terminated by the Company for Cause at any time with no requirement for any advance Notice to Executive. For the avoidance of doubt, other than as provided in <U>Section&nbsp;2.3(b)</U> and <U>(c)</U>&nbsp;above, the
Company may not terminate the Consulting Term without Cause. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If the Company terminates this Agreement for Cause, or if this Agreement
terminates automatically upon the dissolution, winding-up on termination of the Company or the death or Disability of the Executive, the Company shall make a lump sum payment to Executive equal to $300,010 less any payments made previously to
Executive under <U>Section&nbsp;2.6</U> within thirty (30)&nbsp;Business Days of termination of the Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.4
<B><U>Expenses</U>.</B> The Executive shall be entitled to reimbursement of all reasonable and documented out-of-pocket costs and expenses incurred by Executive in performing the Consulting Services (including, without limitation, (a)&nbsp;travel to
and from, and accommodations for, meetings incident to performing the Consulting Services at a level consistent with executive management of the Company at that time, (b)&nbsp;out-of-pocket costs and expenses incurred in connection with
Executive&#146;s performance under Section&nbsp;2.2 and (c)&nbsp;costs to renew through the end of the Consulting Term business subscriptions which costs are covered by the Company as of Executive&#146;s Retirement Date) in accordance with the
Company&#146;s expense reimbursement policies for contractors, as in effect from time to time. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.5 <B><U>Executive&#146;s Standard of
Care</U>.</B> Executive shall perform the Consulting Services with the degree of care, skill and prudence that he reasonably believes to be in the best interest of the Company. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.6 <B><U>Severance Payment, Premium Payment, and Extended Option Term</U></B>.<B> </B> </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top">The Company will pay Executive the amount of $300,010 as severance (the &#147;Severance Payment&#148;). The Severance Payment will be made in 19 substantially equal installment payments of $15,790, minus applicable
taxes and withholdings, due on the last day of each month commencing in June&nbsp;30, 2014 and ending December&nbsp;31, 2015. Each installment payment shall be made by the Company to Executive within 20 day period immediately following the last day
of the each such month. The Company and the Executive agree that the Severance Payments provided for herein are paid in lieu of any other severance benefits to which the Executive may be entitled from the Company or any Affiliate at any time, and
that Executive shall not be entitled to any severance benefits other than as expressly provided in this Agreement. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>


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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top">The Company will reimburse to Executive the premiums paid by Executive for a supplemental health insurance policy of Executive&#146;s choosing covering Executive and his spouse for eighteen months not to exceed, in the
aggregate, $24,135.12 (&#147;Premium Payment&#148;). </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top">Notwithstanding anything in the award grants or governing Plans to the contrary, the Parties agree that, for the following stock option awards of Executive: the March&nbsp;18, 2011 Award from the 2001 Stock Incentive
Plan, the March&nbsp;16, 2012 Award from the 2001 Stock Incentive Plan, and the March&nbsp;5, 2013 Award from the 2012 Long Term Incentive Plan, the option term (i.e. the period of time during which the stock options are in effect and Executive can
exercise the stock options) shall end on December&nbsp;31, 2015, and for Executive&#146;s March&nbsp;3, 2010 Award from the 2007 Stock Incentive Plan, the option term shall end on March&nbsp;3, 2015 (all of such option extensions, the &#147;Extended
Option Term&#148;), subject, in all other respects, to the other terms and conditions in such plans and stock option award agreements. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.7 <B><U>Consultant Compensation</U>.</B> The Company will pay Executive $5,263 per month due on June&nbsp;30, 2014 and on the last day of
each subsequent month during the Consulting Term (&#147;<B>Consultant Compensation</B>&#148;). Each such payment shall be made by the Company to Executive with in the 20 day period immediately following the last day of each such month. The
Consultant Compensation shall be Executive&#146;s agreed fee for performing the Consultant Services, and shall be payable even if Executive does not actually perform any Consulting Services for that month. No payment or benefit that Executive is
entitled to receive under this Agreement shall be reduced by any (a)&nbsp;compensation or fees earned by Executive as the result of his employment or engagement by another Person, (b)&nbsp;retirement or other benefits provided under any Plan, the
Severance Payment provided in Section&nbsp;2.6, (c)&nbsp;reimbursement of expenses under Section&nbsp;2.4, or (d)&nbsp;or other sources of compensation or fees paid to or on behalf of Executive. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.8 <B><U>No Tax Withholding</U>.</B> The Company shall classify Executive as an independent contractor of the Company during the Consulting
Term. The Company shall not withhold any taxes from any of the Consultant Compensation paid to Executive. Executive agrees that he is responsible for timely paying all taxes relating to the Consultant Compensation. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.9 <B><U>Indemnification</U>.</B> The Company shall indemnify, to the fullest extent permitted under applicable law, defend and hold harmless
the Executive from and against any and all liability, costs, expenses and damages arising from, or related to, the Consulting Services pursuant to this <U>Section&nbsp;2.9</U>. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I></I>(a)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE="font-family:Times New Roman; font-size:10pt"><I>General</I>. The Company and its Affiliates shall, jointly and severally, indemnify, defend and hold harmless Executive from and against any and
all liability, costs, expenses, damages and claims, including, without <I> </I></P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>


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<TD WIDTH="13%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">
limitation, <B>CLAIMS ALLEGING EXECUTIVE&#146;S NEGLIGENCE,</B> arising from his service as a consultant to the Company or any of its Affiliates. This <U>Section&nbsp;2.9</U> shall be in addition
to, and shall not limit in any way, the rights of Executive to any other indemnification from the Company or an Affiliate, as a matter of law, contract or otherwise. The Company agrees that if Executive is made a party, or is threatened to be made a
party, to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a <B>&#147;</B><B>Proceeding</B>&#148;), by reason of the fact that Executive is or was a consultant to the Company or any Affiliate under this
Agreement, Executive shall be indemnified and held harmless by the Company and its Affiliates, on a joint and several basis, from and against any and all Expenses (as defined below) that are incurred or suffered by Executive in connection therewith.
The foregoing indemnification rights and obligations shall continue even if Executive has ceased to be a consultant for the Company or any Affiliate and shall inure to the benefit of his heirs, executors, administrators, successors and assigns.
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I></I>(b)</TD>
<TD ALIGN="left" VALIGN="top"><I>Expenses</I>. As used in this <U>Section&nbsp;2.9</U>, the term &#147;<I></I><B>Expenses</B><I></I>&#148; shall include, without limitation, damages, losses, judgments, liabilities, fines, penalties, excise taxes,
settlements, costs, reasonable attorneys&#146; and accountants&#146; fees, costs of attachment or similar bonds, investigations, and any expenses of establishing a right to indemnification under this Agreement.<I> </I></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I></I>(c)</TD>
<TD ALIGN="left" VALIGN="top"><I>Advances of Expenses</I>. Expenses that are incurred, or reasonably expected to be incurred, by Executive in connection with any Proceeding shall be paid by the Company or an Affiliate in advance upon the request of
Executive that the Company pay such Expenses, but only in the event that Executive shall have delivered in writing to the Company an undertaking to reimburse the Company for Expenses with respect to which it is determined that Executive is not
entitled to indemnification hereunder.<I> </I></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I></I>(d)</TD>
<TD ALIGN="left" VALIGN="top"><I>Notice of Claim</I>. Executive shall give timely Notice to the Company of any claim made against him for which indemnification will, or could be, sought under this Agreement after Executive has direct knowledge of
such a claim. In addition, with respect to such a claim, Executive shall give the Company such information and cooperation, as it may reasonably require, except to the extent that Executive&#146;s interest in such claim is directly adverse to the
Company.<I> </I></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I></I>(e)</TD>
<TD ALIGN="left" VALIGN="top"><I>Defense of Claim</I>. With respect to any Proceeding as to which Executive notifies the Company of the commencement thereof:<I> </I></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(1) The Company and its Affiliates will be entitled to participate therein at their own expense. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(2) Except as otherwise provided below, to the extent that it may desire, the
Company or any Affiliate will be entitled to assume the defense thereof, which in the Company&#146;s or Affiliate&#146;s discretion may be regular counsel to the Company or an Affiliate or may be counsel to officers and directors of the Company or
an Affiliate. Executive also shall have the right to employ his own counsel in such Proceeding if he reasonably concludes that failure to do so would involve a conflict of interest between the Company and Executive and, in such circumstances, the
reasonable fees and expenses of such counsel shall be at the expense of the Company. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(3) The Company and its Affiliates
shall not be liable to indemnify Executive under this Agreement for any amounts paid in settlement of any action or claim effected without the written consent of the Company. The Company or an Affiliate shall not settle any action or claim in any
manner that would impose any (a)&nbsp;penalty that would not be paid directly or indirectly by the Company or an Affiliate or (b)&nbsp;limitation, judgment, or liability on Executive, without first obtaining Executive&#146;s written consent. Neither
the Company nor Executive will unreasonably withhold or delay its reasonable consent to any proposed settlement. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I></I>(f)</TD>
<TD ALIGN="left" VALIGN="top"><I>Non-exclusivity</I>. The right to indemnification and the payment of Expenses incurred in defending a Proceeding in advance of its final disposition, as conferred in this <U>Section&nbsp;</U>2.9, shall not be
exclusive of any other right that Executive may have or hereafter may acquire under any law or governing document of the Company or any Affiliate, agreement or otherwise. Nothing in this Agreement shall alter or limit the Company&#146;s obligation
to indemnify the Executive in his capacity as a director, officer, or employee of the Company or any Affiliate as provided in the Company&#146;s by-laws, any agreement to which the Executive is a party or beneficiary, at law, or otherwise.
Furthermore, nothing in this Agreement shall alter or limit any coverage of Executive under the Company&#146;s applicable directors and officers insurance.<I> </I></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.10 <B><U>Confidential Information</U>.</B> For purposes of this <U>Section&nbsp;2.10</U>, the term &#147;Company&#148; shall refer to and
include the Company and its Affiliates. During the Consulting Term, the Company will (a)&nbsp;disclose or entrust to the Executive, and provide the Executive with access to, Confidential Information, (b)&nbsp;place the Executive in a position to
develop business goodwill belonging to the Company, and (c)&nbsp;disclose or entrust to the Executive business opportunities to be developed for the Company. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top">Executive acknowledges that Confidential Information has been and will be developed or acquired by the Company through the expenditure of substantial time, effort and money and provides the Company with an advantage
over competitors who do not know or use such Confidential Information. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE="font-family:Times New Roman; font-size:10pt">Executive acknowledges and agrees that all Confidential Information about the Company that was previously provided in the course of employment with
the Company, and Confidential Information that will be provided during the Consulting Term, is and will continue to be, the </P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">
exclusive property of the Company. The Executive agrees to keep all Confidential Information in strict confidence, not disclosing any Confidential Information to any third person except as
permitted hereunder. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top">During and following the Consulting Term, Executive shall hold in confidence and not directly or indirectly disclose, use, copy, or make any list of any Confidential Information, except to the extent necessary to carry
out the Consulting Services hereunder. Executive agrees to give the Notice to Company of any attempts to compel disclosure of any Confidential Information within three (3)&nbsp;Business Days after the Executive is informed that such disclosure is
being, or will be, compelled. This Notice shall contain a copy of the subpoena, order or other process used to compel disclosure. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top">Following the expiration of Consulting Term for whatever reason, Executive agrees that: (1)&nbsp;he will not take with him, 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; and (b)&nbsp;he will promptly return to the Company all Confidential Information,
documents, files, and records (written or electronically stored) that are in his possession or under his control, and he will not use or disclose such materials in any way or in any format including, without limitation, written information in any
form, information stored by electronic means, and all copies of materials containing any Confidential Information, without the written consent of the Company. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(e)</TD>
<TD ALIGN="left" VALIGN="top">The Executive shall continue to abide by the Company&#146;s confidentiality policies during and following the Consulting Term. Executive shall not at any time disclose to any unauthorized Person, or publish, or use for
any purpose, any Confidential Information, except as the Company the Company directs and authorizes, or as subject to compulsion of law. Executive shall take all reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use
of any Confidential Information. This confidentiality covenant shall be in addition to, and not limit or restrict in any way, any other confidentiality or post-employment agreement or covenant between the Executive and the Company or any of its
Affiliates. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B><I></I></B>2.11<B><I> </I></B><B><U>Non-Disparagement</U>.</B><B><I> </I></B>Executive agrees not to,
directly or indirectly, disclose, communicate, or publish any disparaging, negative, intentionally harmful, or disapproving information, written communications, oral communications, electronic or magnetic communications, writings, oral or written
statements, comments, opinions, facts, or remarks, of any kind or nature whatsoever (collectively,<B><I> &#147;Disparaging Information</I></B>&#148;), concerning or related to the Company or any of its Affiliates, or its and their directors,
officers, employees and partners (individually and collectively, the &#147;<B><I>Covered Persons</I></B>&#148;). Executive understands and <B><I> </I></B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">9 </P>


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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
acknowledges that this non-disparagement clause prevents him from disclosing, communicating, or publishing, directly or indirectly, any Disparaging Information concerning or related to the
Covered Persons including, without limitation, information regarding the Covered Persons&#146; businesses, customers or clients, proprietary or technical information, documents, operations, inventions, trade secrets, product ideas, technical
information, <FONT STYLE="white-space:nowrap">know-how,</FONT> processes, plans (including, without limitation, marketing plans and strategies), specifications, designs, methods of operation, human resources department or operations, employee
salaries, employee benefits, techniques, technology, formulas, software, improvements, internal or external audits, internal controls, or any financial, marketing or accounting information of any nature whatsoever. Further, 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 concerning or related to the Covered Persons. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Executive also confirms and agrees that he has had a reasonable period of time to consider these non-disparagement covenants, to review such
covenants with his attorney, and to consent to such covenants knowingly and voluntarily. Executive further acknowledges that <U>Section&nbsp;2.11</U> is a material term of this Agreement. If Executive breaches any provision of
<U>Section&nbsp;2.11</U>, the Company will not be limited to a damages remedy, but may seek all other equitable and legal relief including, without limitation, a temporary restraining order, temporary injunctive relief, a permanent injunction, and
its attorneys&#146; fees and costs, against Executive and any other Person acting by, through, under, or in concert with him. Nothing in this Agreement shall, however, 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 for purposes of complying with the law. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.12 <B><U>Non-Recruitment</U>.</B> Executive agrees that during the Consulting Term and for a period of one year following the end of the
Consulting Term, he will not, directly or indirectly, hire, solicit, induce, recruit, engage, go into business with, encourage to leave their employment or contractor relationship with the Company or any Affiliate, or otherwise cease their
employment or contractor relationship with the Company or any Affiliate, or otherwise contract for services with, any employee or contractor of the Company or any Affiliate. Executive hereby covenants and agrees that he will not, directly or
indirectly, either individually or as a principal, owner, agent, consultant, contractor, employee, or a director of any 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&#146;s or Affiliate&#146;s partners, clients, customers, property owners, or royalty interest
owners, or any other Person with whom the Company or Affiliate did business, or had a business relationship with as of, or within the one year period preceding the Retirement Date. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.13 <B><U>Return of Company Property/Documents When Term Expires</U>.</B> Following the termination of the Consulting Term for any reason,
Executive agrees that: (i)&nbsp;he will not take with him, copy, alter, destroy, or delete any files, documents or other materials whether or not embodying or recording any Confidential Information, including copies, without obtaining </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">10 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
the advance written consent of an authorized Company representative; and (ii)&nbsp;he will promptly return to the Company all Confidential Information, documents, and files (written or
electronically stored) that are in his possession or under his control. Executive further agrees to immediately return to the Company all equipment or other property of the Company or any Affiliate that is in his possession or under his control upon
termination of the Consulting Term for whatever reason. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.14 <B><U>Disclosure of Business Opportunities</U></B><B>.</B> During the
Consulting Term and for a period of six (6)&nbsp;months thereafter, 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 business of the Company or any Affiliate, and he shall not appropriate for the Executive&#146;s
own benefit any business opportunity that is subject to such fiduciary relationship without the prior written consent of the CEO or the Board. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B></B>2.15 <B><U>Attorney&#146;s Fees</U></B><B>.</B> The Company shall reimburse Executive for all reasonable legal fees and expenses
incurred by Executive in connection with the review, preparation and execution of this Agreement.<B> </B></P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Article III. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>Enforcement </U></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.1
<B><U>Choice of Law</U></B><B>.</B> This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Texas without regard to principles of conflict of laws. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.2 <B><U>Choice of Forum</U></B><B>.</B> Jurisdiction and venue of any action or proceeding relating to this Agreement or any dispute
hereunder shall be exclusively in the federal or state courts of competent jurisdiction in Harris County, Texas, and the Parties hereby waive any objection to such jurisdiction or venue, or to the effect that it is inconvenient. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.3 <B><U>Injunctive Relief</U></B><B>.</B> The Executive acknowledges and agrees that (a)&nbsp;the covenants, obligations and agreements of
the Executive in this Agreement concern special, unique and extraordinary matters and (b)&nbsp;a violation of any of these covenants, obligations or agreements could cause the Company irreparable injury for which adequate remedies at law are not
available. Therefore, the Executive agrees that Company alone will be entitled to an injunction, restraining order, or all other equitable relief (with any bond requirement not to exceed $20,000.00) as a court of competent jurisdiction may deem
necessary or appropriate to restrain the Executive from committing any violation of the covenants, obligations or agreements of Executive in this Agreement. These injunctive remedies are cumulative and in addition to any other rights and remedies
that the Company may have against the Executive. Company and the Executive irrevocably submit to the exclusive jurisdiction of the courts under <U>Section&nbsp;3.2</U> regarding the injunctive remedies set forth in this <U>Section&nbsp;3.3</U>, and
each Party waives all objections and defenses based on service of process, forum, venue, or personal or subject matter jurisdiction, as these defenses may relate to an application for injunctive relief in a suit or proceeding under this
<U>Section&nbsp;3.3</U>. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">11 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Article IV. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>Miscellaneous Provisions </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.1 <B><U>Notice</U></B><B>.</B> Each Notice or other communication required or permitted under this Agreement shall be in writing and
transmitted or delivered by personal delivery, prepaid courier or messenger service (whether overnight or same-day), prepaid telecopy or facsimile, 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 at such other address as the recipient has designated by Notice to the other Party. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top">If to the Executive: </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Robert L. Gerry III </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top">If to the Company: </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">VAALCO Energy, Inc. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">4600 Post Oak Place </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Suite 309
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Houston, TX 77027 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Attn:
Roland Sledge </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">With a copy (which shall not constitute notice) to: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Guy Young, Esq. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Haynes and
Boone, LLP </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">1221 McKinney Street, Suite 2100 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Houston, TX 77010 </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top"><I>Deemed Delivery</I>. Each Notice or other communication so transmitted, delivered, or sent in person, by courier or messenger service, or by certified United States mail, 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.) Nevertheless, if the date of delivery
is after 5:00 p.m. (local time of the recipient) on a Business Day, the Notice or other communication shall be deemed given, received, and effective on the next Business Day. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.2 <B><U>Limitations on Assignment</U></B><B>.</B> Except as expressly provided in this Agreement, Executive may not assign this Agreement or
any of his rights or obligations hereunder without the express written consent of the CEO or the Board. Any attempted assignment by Executive in violation of this <U>Section&nbsp;4.2</U> shall be void. Notwithstanding the foregoing, this Agreement
shall inure to the benefit of and be enforceable by Executive&#146;s personal or legal representative, executors, administrators, and heirs. In the event of the death of Executive while any benefit is payable hereunder, such benefit shall be
promptly provided by the Company to the Executive&#146;s Beneficiary. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">12 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.3 <B><U>Successors of Company</U></B><B>.</B> 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). The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, the term &#147;Company&#148; 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 which assumes
and agrees to perform this Agreement. Except as provided in <U>Section&nbsp;4.2</U> and <U>Section&nbsp;4.3</U>, 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, 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.4 <B><U>Severability and Reformation</U></B><B>.</B> It is the desire of the Parties that this Agreement be enforced to the maximum extent
permitted by law, and should any provision contained herein be held invalid or otherwise unenforceable by a court of competent jurisdiction, the Parties hereby agree and confirm that such provision shall be reformed to create a valid and enforceable
provision to the maximum extent permitted by law; provided, however, if such provision cannot be reformed, it shall be deemed ineffective and deleted herefrom without affecting any other provision of this Agreement which shall remain fully
enforceable. In such event, this Agreement shall be construed by limiting and reducing it only to the minimum extent necessary to be enforceable under then applicable law. Any such determination or reformation shall not be binding on any court or
other governmental authority not otherwise bound to follow such conclusions pursuant to applicable law. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.5 <B><U>No Third Party
Beneficiaries</U></B><B>.</B> This Agreement shall be binding upon and inure to the benefit of the Parties hereto, and to their respective successors and permitted assigns hereunder, but otherwise this Agreement shall not be for the benefit of any
third parties. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.6 <B><U>Entire Agreement</U></B><B>.</B> This Agreement, together with the Release substantially in the form attached
hereto as Exhibit B, sets forth the entire agreement of the Parties and fully supersedes and replaces any and all prior agreements or understandings, written or oral, between the Parties pertaining to the subject matter of this Agreement. The
Parties have made no agreements, representations, or warranties regarding the subject matter of this Agreement that are not set forth in this Agreement. Each Party acknowledges and agrees that in executing this Agreement, the Party did not rely, and
has not relied, on any communications, promises, statements, inducements or representations, oral or written, except as expressly contained in this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.7 <B><U>Waiver and Amendment</U></B><B>.</B> No term or condition of this Agreement shall be deemed waived other than by a writing signed by
the Party against whom or which enforcement of the waiver is sought. Without limiting the generality of the preceding sentence, a Party&#146;s failure to insist upon the other Party&#146;s strict compliance with any provision of this Agreement, or
to assert any right that a Party may have under this Agreement, shall not be deemed a waiver of that provision or that right. Any written waiver shall operate only as to the specific term or </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">13 </P>


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condition waived under the specific circumstances, and shall not constitute a waiver of that term or condition for the future or a waiver of any other term or condition. No amendment, termination
or other modification of this Agreement shall be effective unless stated in a writing that refers to this Agreement and is signed by both Parties. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.8 <U><B>Executive Acknowledgment</B>.</U> Executive acknowledges that (a)&nbsp;he is knowledgeable and sophisticated as to business matters,
including the subject matter of this Agreement, (b)&nbsp;he has read this Agreement and understands its terms and conditions, (c)&nbsp;he is being provided ample opportunity to discuss this Agreement with his own legal counsel prior to execution,
and (d)&nbsp;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 restrictive
covenant that would conflict with his rights or duties under this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.9 <U><B>Code Section&nbsp;409A Compliance</B></U>. In
light of the uncertainty surrounding the proper application of Code Section&nbsp;409A, the Parties agree to cooperate to make any mutually agreed upon amendments to this Agreement that do not otherwise change the substance of the material terms of
this Agreement, in order to minimize or avoid the imposition of any penalties or additional taxes that could be imposed under Code Section&nbsp;409A. Notwithstanding the foregoing, if the Parties cannot agree to such amendments, the terms and
conditions of the Agreement shall remain in full force and effect. The Company represents to Executive that it believes that the payments and benefits provided under this Agreement are intended to be exempt from, or comply with, Code
Section&nbsp;409A and, absent any relevant guidance issued by the Internal Revenue Service following the Effective Date, shall report (to the extent legally required) all such payments and benefits accordingly. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.10 <U><B>Survival of Certain Provisions</B>.</U> 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.11 <U><B>Counterparts</B>.</U> This Agreement
and any amendments thereto will be in writing and may be executed in counterparts and by facsimile with the same effect as if both Parties had signed the same document. Each counterpart will be deemed an original, and all counterparts shall be
construed together to constitute one, and the same, document. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Article V. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>Definitions and Interpretive Matters </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5.1 <U><B>Defined Terms</B>.</U> In this Agreement, the following terms have the corresponding meanings which are incorporated into the
Agreement: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Affiliate</B>&#148; means, with respect to the Company, any Person, directly or indirectly controlling, controlled by, or under common control with the Company. For the purposes of this definition, the terms
&#147;controlling, controlled by, or under common control&#148; 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 a Person, as determined by the Board. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">14 </P>


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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Beneficiary</B>&#148; means the Executive&#146;s surviving spouse, if any. If there is no surviving spouse at the time of Executive&#146;s death, then the Beneficiary shall be the Executive&#146;s estate.
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Board</B>&#148; means the then-current board of Directors of the Company. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Business Day</B>&#148; means any Monday through Friday, excluding any such day on which banks are authorized to be closed in Texas. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(e)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Cause</B>&#148; means any of the following: (1)&nbsp;the Executive&#146;s conviction by a court of competent jurisdiction as to which no further appeal can be taken of a crime involving moral turpitude or a
felony or entering the plea of <I>nolo</I> <I>contendere</I> to such a crime by the Executive; (2)&nbsp;the commission by the Executive of a demonstrable act of fraud, or a misappropriation of funds or property, of or upon the Company or any
Affiliate; (3)&nbsp;the knowing and willful engagement by the Executive, without the written approval of the Board or CEO, in any activity that competes with the business of the Company or any Affiliate, or which would result in a material injury to
the business or reputation of the Company or any Affiliate; or (4)&nbsp;(A)&nbsp;the breach by Executive of any material provision of this Agreement, or (B)&nbsp;the willful and repeated nonperformance of the Executive&#146;s duties to the Company
(other than by reason of the Executive&#146;s illness or incapacity), but only under clauses (3), (4)&nbsp;(A)&nbsp;and (4)&nbsp;(B), after (i)&nbsp;Notice from the Board or CEO of such material breach or nonperformance (which Notice specifically
identifies the manner and sets forth specific facts, circumstances and examples of which the Board or CEO believes that the Executive has breached the Agreement or not substantially performed his duties) and (2)&nbsp;the Executive&#146;s continued
willful failure to cure such breach or nonperformance within the reasonable time period set by the Board or CEO, but in no event less than ten (10)&nbsp;Business Days after his receipt of such Notice. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(f)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Code</B>&#148; means the Internal Revenue Code of 1986, as amended, and the regulations and other authority issued thereunder by the appropriate governmental authority. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(g)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE="font-family:Times New Roman; font-size:10pt">&#147;<B>Confidential Information</B>&#148; means any and all confidential or proprietary information and materials, as well as all trade secrets,
belonging to the Company or its Affiliate, and its and their owners, customers, or third parties who furnished such information, materials, and/or trade secrets to the Company or its Affiliate with expectations of confidentiality. Confidential
Information includes, regardless of whether such information or materials are expressly identified or marked as confidential or proprietary, and whether or not patentable: (1)&nbsp;technical information and
</P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">15 </P>


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<TD WIDTH="13%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">
materials of the Persons referenced above; (2)&nbsp;business information and materials of the Persons referenced above; (3)&nbsp;any information or material that gives the Company or an Affiliate
an advantage with respect to its competitors by virtue of not being known by those competitors; and (4)&nbsp;other valuable, confidential information and materials and/or trade secrets of the Persons referenced above. Notwithstanding the foregoing,
Confidential Information shall not include information that (A)&nbsp;is already properly in the public domain or enters the public domain with the express consent of the Company or an Affiliate, or (B)&nbsp;is intentionally made available by the
Company or an Affiliate to a third party without any reasonable expectation of confidentiality. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">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&#146;s or Affiliate&#146;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&#146;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. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(h)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Consulting Term</B>&#148; means the time period following the Retirement Date during which the Executive is engaged to perform Consulting Services under this Agreement. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(i)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Disability</B>&#148; shall mean that the Executive is unable to substantially perform the Consultant Services for a period of at least 30 days during any period of 60 consecutive days due to his physical or
mental impairment, as determined by the Board (or any committee thereof) or by the CEO. Executive agrees to submit to any examinations that are reasonably required by an attending physician or other healthcare service provider to determine whether
he has a Disability hereunder. All health service provider costs relating solely to the determination of whether Executive has a Disability shall be paid by the Company upon request by Executive. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">16 </P>


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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(j)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>ERISA</B>&#148; means the Employee Retirement Income Security Act of 1974, as amended, and the regulations and other authority issued thereunder by the appropriate governmental authority. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(k)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Notice</B>&#148; means a written communication complying with <U>Section&nbsp;4.1</U> of the Agreement (&#147;<B>Notify</B>&#148; has the correlative meaning). </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(l)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Person</B>&#148; means any individual, firm, corporation, partnership, company, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization, or other entity.
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(m)</TD>
<TD ALIGN="left" VALIGN="top">&#147;<B>Plan</B>&#148; means any bonus, incentive compensation, savings, pension, retirement, stock option, stock appreciation, stock ownership or purchase, deferred compensation, or health or other welfare benefits,
plan, policy, practice, program or arrangement (including any separate contract or agreement) that the Company or an Affiliate maintains for its employees or former employees, including, without limitation, any &#147;employee benefit plan&#148; as
defined in Section&nbsp;3(3) of ERISA. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5.2 <U><B>Interpretive Matters</B></U>. In the interpretation of the Agreement,
except where the context otherwise requires: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top">The Agreement headings are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top">The terms &#147;<B>including</B>&#148; and &#147;<B>include</B>&#148; do not denote or imply any limitation. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top">The conjunction &#147;<B>or</B>&#148; has the inclusive meaning &#147;<B>and/or</B>&#148;. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top">The singular includes the plural, and vice versa, and each gender includes each of the others. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(e)</TD>
<TD ALIGN="left" VALIGN="top">The term &#147;<B>month</B>&#148; refers to a calendar month. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(f)</TD>
<TD ALIGN="left" VALIGN="top">A reference to any statute, rule, or regulation includes any amendment thereto or any statute, rule, or regulation enacted or promulgated in replacement thereof. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>[Signature page follows.] </I></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">17 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Article VI. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>Execution </U></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As
evidenced by my signature below, I hereby certify that I have read the Agreement and agree to its terms and conditions. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B><I>Executive:</I></B></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><B><I>Company:</I></B></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
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<TD COLSPAN="3" VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1.00pt solid #000000; font-size:10pt; font-family:Times New Roman">By:</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3">Robert L. Gerry III</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
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<TD VALIGN="top">Steve Guidry,</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD COLSPAN="3" VALIGN="top"></TD>
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<TD VALIGN="top"></TD>
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<TD VALIGN="top"></TD>
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<TD VALIGN="top"></TD>
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<TD VALIGN="top">Chief Executive Officer</TD></TR>
<TR STYLE="font-size:1px; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
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<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Date</TD>
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<TD VALIGN="top">Date</TD>
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<TD HEIGHT="16"></TD>
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<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">VAALCO Energy, Inc.</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">4600 Post Oak
Place, Suite 309</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Houston, TX 77027</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Attn: Roland
Sledge</P></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">18 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXHIBIT A </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><I>TO </I></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SEVERANCE
AND CONSULTING AGREEMENT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>LIST OF OTHER AGREEMENTS </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">[List any separate employment, non-compete, stock option or other equity incentive awards between the Parties.] </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; margin-left:54%; text-indent:-2%; font-size:10pt; font-family:Times New Roman">Stock Options </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">2007 Stock Incentive Plan </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Grant Date: March&nbsp;3, 2010 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Options Granted: 252,500.00 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Option Price: $4.28 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Vested
Shares: 252,500.00 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Expiration Date: March&nbsp;3, 2015 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top">2001 Stock Incentive Plan </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Grant Date: March&nbsp;18, 2011 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Options Granted: 217,475 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Option
Price: $6.96 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Vested Shares: 217,475.00 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Expiration Date: March&nbsp;18, 2016 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top">2001 Stock Incentive Plan </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Grant Date: March&nbsp;16, 2012 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Options Granted: 115,900.00 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Option Price: $8.81 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Options
Vested: 115,900.00 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Expiration Date: March&nbsp;16, 2017 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top">2012 Stock Incentive Plan </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Grant Date: March&nbsp;5, 2013 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Options Granted: 115,900.00 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Option Price: $7.75 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Options
Vested: 77,266.76 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Options Unvested: 38,633.33 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Expiration Date: March&nbsp;5, 2018 </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">A-1 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXHIBIT B </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><I>TO </I></B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SEVERANCE AND
CONSULTING AGREEMENT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>RELEASE AGREEMENT </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B></B>In consideration of the Consultant Compensation set forth in that certain Severance and Consulting Agreement (the &#147;<B>S&amp;C
Agreement</B>&#148;) dated as of June&nbsp;4, 2014, and as it may be amended thereafter, by and between VAALCO Energy, Inc. (the &#147;<B>Company</B>&#148;) and Robert L. Gerry III (&#147;<B>Executive</B>&#148;), this Release Agreement (the
&#147;<B>Agreement</B>&#148;) is made and entered into by the Company and the Executive (each a &#147;<B>Party</B>&#148; and together, the &#147;<B>Parties</B>&#148;). <B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">By signing this Agreement, Executive and the Company hereby agree as follows: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>1.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Purpose</B>. 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 or claims that
Executive has, had or may ever have, as of the date of Executive&#146;s execution of this Agreement, against the Company and all of its parents, predecessors, successors, Affiliates (as defined in the S&amp;C Agreement), divisions, related companies
and organizations, and its and their present and former agents, employees, managers, officers, directors, attorneys, stockholders, plan fiduciaries, assigns, agents, representatives, and all other Persons (as defined in the S&amp;C Agreement) acting
by, through or in concert with any of them (collectively, the &#147;<B>Released Parties</B>&#148;). 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 involving Executive. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>2.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Termination of Employment</B>. Effective June&nbsp;4, 2014 (the &#147;<B>Retirement Date</B>&#148;), Executive&#146;s employment with the Company and all of its Affiliates has voluntarily terminated.
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>3.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Termination Benefits</B>. In consideration for Executive&#146;s execution of, and required performance under, this Agreement, the Company shall provide Executive with the Severance Payment and Consulting Compensation
(as defined in the S&amp;C Agreement, which definition and other terms in the S&amp;C Agreement are incorporated herein by this reference). Executive confirms and agrees that he would not otherwise have received, or been entitled to receive, the
Severance Payment or Consulting Compensation if he did not enter into this Agreement. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>4.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE="font-family:Times New Roman; font-size:10pt"><B>Waiver of Additional Compensation or Benefits</B>. The Severance Payment and Consulting Compensation to be paid to Executive, the Premium Payments,
and the Extended Option Term (subject to the terms of the applicable plans and stock option </P></TD></TR></TABLE>

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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">
award agreements) constitute the entire amount of compensation and consideration due to Executive under the S&amp;C Agreement and this Agreement, and Executive acknowledges that he has no right
to seek, and will not seek, any additional or different compensation or consideration for executing or performing under the S&amp;C Agreement or this Agreement. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>5.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Executive Representations</B>. Executive expressly acknowledges and represents, and intends for the Company to rely upon his representations, that he: </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top">Has not filed any complaints, 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 and, by executing this
Agreement, Executive hereby waives the right to recover monetary damages in any proceeding that (1)&nbsp;Executive may bring before the EEOC or any state or local human rights commission or (2)&nbsp;may be brought by the EEOC or any state or local
human rights commission by or on Executive&#146;s behalf. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top">Understands that he is, by entering into this Agreement, releasing the Released Parties, including the Company, from any and all claims he has, had or may ever have against them under federal, state or local laws, which
have arisen on or before the execution date of this Agreement. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top">Understands that he is, by entering into this Agreement, waiving all claims that he has, had or may ever have against the Released Parties under the federal Age Discrimination in Employment Act of 1967, as amended,
which have arisen on or before the execution date of this Agreement. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top">Agrees that this Agreement shall be binding on him and his heirs, administrators, representatives, executors, successors, and assigns, and shall inure to the benefit of his heirs, administrators, representatives,
executors, successors and assigns. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(e)</TD>
<TD ALIGN="left" VALIGN="top">Has reviewed all aspects of this Agreement, and has carefully read and fully understands all of the provisions and effects of this Agreement. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(f)</TD>
<TD ALIGN="left" VALIGN="top">Has been, and is hereby, advised in writing to consult with an attorney of his own choice before signing this Agreement. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(g)</TD>
<TD ALIGN="left" VALIGN="top">Is knowingly and voluntarily entering into this Agreement, and has relied solely and completely upon his own judgment and, if applicable, the advice of his own attorney in entering into this Agreement.
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(h)</TD>
<TD ALIGN="left" VALIGN="top">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. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(i)</TD>
<TD ALIGN="left" VALIGN="top">Does not waive rights or claims that may arise after the date this Agreement is signed below. </TD></TR></TABLE>

<p Style='page-break-before:always'>
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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>6.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Release</B>. Executive, on behalf of himself and his heirs, executors, administrators, successors and assigns, irrevocably and unconditionally releases, waives and forever discharges the Released Parties from and
against any and all claims, demands, actions, causes of action, charges, complaints, liabilities, obligations, promises, sums of money, agreements, representations, controversies, disputes, damages, suits, right, sanctions, costs (including
attorneys&#146; fees), losses, debts and expenses of any nature whatsoever, whether known or unknown, fixed or contingent, which Executive has, had or may ever have against the Released Parties arising out of, concerning, or related to, his
employment or separation from employment with the Company and its Affiliates, from the beginning of time and up to and including the date Executive executes this Agreement below. This Agreement includes, without limitation, (a)&nbsp;law or equity
claims; (b)&nbsp;contract (express or implied) or tort claims; (c)&nbsp;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&nbsp;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 Texas Labor Code, Section&nbsp;1558 of the Patient Protection and Affordable Care Act of 2010, the Consolidated Omnibus Budget
Reconciliation Act of 1985, and any other federal, state or local laws of any jurisdiction); (d)&nbsp;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)&nbsp;claims arising under ERISA; or (f)&nbsp;any other statutory or common law claims related to Executive&#146;s employment or separation from employment with the Company and its Affiliates. Executive
further represents that, as of the date of his execution of this Agreement, 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. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding the foregoing, this Agreement specifically does not release any claim or cause of action by or on behalf of
Executive (or his Beneficiary) (i)&nbsp;for any payment or other benefit that is required under the terms of either the S&amp;C Agreement or pursuant to any Plan (as defined in the S&amp;C Agreement) prior to the receipt thereof by or on behalf of
Executive or (ii)&nbsp;arising out of the Company&#146;s obligation to indemnify the Executive in his capacity as a director, officer or employee of the Company or any Affiliate thereof, or as a former director, officer or employee of the Company or
any Affiliate as provided in the Company&#146;s by-laws, any agreement to which the Executive is a party or beneficiary, at law, or otherwise. </P>

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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>7.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Twenty-One Calendar Days to Consider Offer of Termination Benefits</B>. Executive shall have, and by signing this Agreement Executive acknowledges and represents that he has been given, a period of twenty-one
(21)&nbsp;calendar days to consider whether to elect to sign this Agreement, and to thereby waive and release the rights and claims addressed in this Agreement. Although Executive may sign this Agreement prior to the end of the twenty-one
(21)&nbsp;calendar day period, Executive may not sign this Agreement on or before the Retirement Date. In addition, if Executive signs this Agreement prior to the end of the twenty-one (21)&nbsp;calendar day period, Executive shall be deemed, by
doing so, to have certified and agreed that the decision to make such election prior to the expiration of the twenty-one (21)&nbsp;calendar day period is knowing and voluntary and was not induced by the Company through: (a)&nbsp;fraud,
misrepresentation or a threat to withdraw or alter the offer prior to the end of the twenty-one (21)&nbsp;calendar day period; or (b)&nbsp;an offer to provide different terms or benefits in exchange for signing the Agreement prior to the expiration
of the twenty-one (21)&nbsp;calendar day period. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>8.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Seven Day Revocation Period</B>. Executive understands and acknowledges that he may revoke this Agreement at any time within seven (7)&nbsp;calendar days after he signs this Agreement. To revoke this Agreement,
Executive must deliver written notification of such revocation to the attention of Steven Guidry, Chief Executive Officer, within seven (7)&nbsp;calendar days after the date that he signs this Agreement. Executive further understands that if he does
not revoke this Agreement within seven (7)&nbsp;calendar days following his execution of the Agreement (excluding the date of execution), the Agreement will become effective, binding and enforceable on both Parties. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>9.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Agreement not to Sue</B>. Except as set forth in Section&nbsp;6(i) and (ii)&nbsp;of this Agreement or required by law that cannot be waived, Executive agrees that he will not commence, maintain, initiate, or
prosecute, or cause, encourage, assist, volunteer, advise or cooperate with any other Person (as defined in the S&amp;C Agreement) 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, Executive&#146;s employment or separation from employment with the Company, or any of the matters
discharged and released in this Agreement. Notwithstanding the preceding sentence or any other provision of this Agreement or the S&amp;C Agreement, this release and the S&amp;C Agreement are not intended to interfere with Executive&#146;s right to
file a charge with the Equal Employment Opportunity Commission (the &#147;<B>EEOC</B>&#148;) or a state or local human rights commission in connection with any claim that Executive believes he may have against the Company or its Affiliates, or to
cooperate or provide truthful testimony to the EEOC or a state or local human rights commission with respect to any investigation. However, by executing this Agreement, Executive hereby waives the right to recover monetary damages in any proceeding
he may bring before the EEOC or any state or local human rights commission or in any proceeding brought by the EEOC or any state or local human rights commission (or any other agency) on Executive&#146;s behalf. </TD></TR></TABLE>

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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>10.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidentiality of Agreement</B>. Executive agrees to keep this Agreement and its terms confidential. Executive agrees and understands that he is prohibited from disclosing any terms of this Agreement to anyone,
except that he may disclose the terms of this Agreement to his attorney, his spouse, his financial advisor or as otherwise required by compulsion of law. The Company acknowledges and agrees that it is prohibited from disclosing any terms of this
Agreement to any third parties, except that the Company may disclose the terms of this Agreement to its attorneys, accountants, and other Persons (as defined in the S&amp;C Agreement) with a need to know, or as otherwise required by compulsion of
law. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>11.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Agreement to Return Company Property/Documents at end of Consulting Term</B>. Following the termination of the Consulting Term for any reason, Executive agrees that: (i)&nbsp;he will not take with him, copy, alter,
destroy or delete any files, documents or other materials whether or not embodying or recording any Confidential Information (as defined in the S&amp;C Agreement), including copies, without obtaining in advance the written consent of an authorized
Company representative; and (ii)&nbsp;he will promptly return to the Company all Confidential Information, documents, and files, (written or electronically stored) that are in Executive&#146;s possession or under his control. Executive further
agrees to immediately return to the Company all Company equipment or other property of the Company or any Affiliate that is in his possession or under his control upon termination of the Consulting Term for whatever reason. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>12.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Waiver</B>. A Party&#146;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.
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>13.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Entire Agreement</B>. This Agreement and the S&amp;C Agreement set forth the entire agreement between the Parties and fully supersedes and replaces any and all prior agreements or understandings, written or oral,
between the Parties pertaining to the subject matter of this Agreement and the S&amp;C Agreement. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>14.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Severability</B>. Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal, invalid or unenforceable, 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 has not been included herein. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>15.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Miscellaneous</B>. 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&#146; fees. </TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Nothing in this Agreement will be construed to prevent Executive from challenging the validity of
this Agreement under the Age Discrimination in Employment Act or Older Workers Benefit Protection Act. Executive further understands and agrees that if he, or someone acting on his behalf, files, or causes to be filed, any such claim, charge,
complaint or action against the Company, an Affiliate or any other Released Party, Executive hereby expressly fully waives and relinquishes any right to recover any damages or other relief, whatsoever, from the Company, its Affiliates and/or other
Persons, including costs and attorneys&#146; fees. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>16.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Choice of Law</B>. This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Texas without regard to principles of conflict of laws. Jurisdiction and venue of any
action or proceeding relating to this Agreement, or any dispute hereunder, shall be exclusively in a federal or state court of competent jurisdiction in Harris County, Texas, and the Parties hereby waive any objection to such jurisdiction or venue
including, without limitation, to the effect that it is inconvenient. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>17.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Counterparts</B>. The Parties agree that this 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.
</TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>[Signature page follows.] </I></P>
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