Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Eighth Amended and Restated Executive Change in Control and Severance Benefit Plan
On
Under the Amended Plan, the Compensation Committee of the Board identifies
Eligible Individuals as "Tier 1 Executives," "Tier 2 Executives," "Tier 3
Executives," "Tier 4 Executives" or "Tier 5 Key Employees" and has identified
(i) as Tier 1 Executives,
The Amended Plan provides that, upon the termination of an Eligible Individual's employment without Cause or due to an Eligible Individual's resignation for Good Reason (a "Qualifying Termination"), Tier 1, Tier 2 and Tier 3 Executives will be eligible to receive (i) a cash severance payment equal to 2.0x, 1.5x and 1.0x, respectively, their then current Base Salary as of the Date of Termination, paid in equal monthly installments over a 24-month period with respect to Tier 1 Executives and a 12-month period with respect to Tier 2 and Tier 3 Executives, in each case, following the Date of Termination and (ii) reimbursement for the cost of any COBRA premiums incurred by the Executives during the 18-month period with respect to Tier 1 Executives and 12-month period with respect to Tier 2 and Tier 3 Executives, in each case, following the Date of Termination. For Tier 1, Tier 2 and Tier 3 Executives, the cash severance payment under the Amended Plan no longer includes an annual bonus component. All equity incentives then held by such Tier 1, Tier 2 and Tier 3 Executives pursuant to the LTIP or otherwise will be governed by the award agreement applicable to the equity incentive award. The Amended Plan also provides for severance to certain other executives and employees upon a Qualifying Termination
The Amended Plan provides that if a Qualifying Termination occurs within 12 months following a Change in Control, Tier 1, Tier 2 and Tier 3 Executives will be eligible to receive (i) a lump sum cash severance payment equal to 3.0x, 2.5x and 2.0x, respectively, their then current Base Salary as of the Date of Termination and (ii) reimbursement for the cost of any COBRA premiums incurred by such Executives during the 24-month period with respect to Tier 1 Executives and 18-month period with respect to Tier 2 and Tier 3 Executives, in each case, following the Date of Termination. For Tier 1, Tier 2 and Tier 3 Executives, the cash severance payment under the Amended Plan no longer includes an annual bonus component. All equity incentives then held by such Tier 1, Tier 2 and Tier 3 Executive pursuant to the LTIP or otherwise will be governed by the award agreement applicable to the equity incentive award. The Amended Plan also provides for severance to certain other executives and employees upon a Qualifying Termination within 12 months following a Change in Control.
Under the Amended Plan, Eligible Individuals whose employment terminates for any reason, except due to a termination for Cause, and are entitled to participate in the STIP (as defined below) for the year in which the Date of Termination occurs are entitled to receive any unpaid annual cash bonus for the prior calendar year, determined in accordance with the applicable Short Term Incentive Plan ("STIP"), plus their target annual bonus under the applicable STIP for the year in which the Date of Termination occurs, prorated to reflect such Eligible Individual's days of service during the year of termination.
The above description is a summary of certain terms of the Amended Plan and is subject to and qualified in its entirety by the terms of the Amended Plan, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.
Employment Agreements
As previously disclosed, as of
Restricted Stock Unit Agreements
In connection with
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Description 10.1Civitas Resources, Inc. Eighth Amended and Restated Executive Change in Control and Severance Benefit Plan. 104 Cover Page Interactive Data File (formatted as Inline XBRL)
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