Vital Energy Inc.

12/13/2024 | Press release | Distributed by Public on 12/13/2024 15:36

Management Change/Compensation Form 8 K

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On December 10, 2024, the board of directors (the "Board") of Vital Energy, Inc. (the "Company") approved the amendment and restatement of the Vital Energy, Inc. Omnibus Equity Incentive Plan (as amended and restated from time to time, the "Equity Plan") and the amendment and restatement of the Vital Energy, Inc. Change in Control Executive Severance Plan (as amended and restated from time to time, the "Severance Plan"), in each case, to reflect certain market practices and effective as of December 10, 2024.
The changes effected by the amendment and restatement of the Equity Plan were to, among other things, (i) update the "change in control" and "good reason" definitions and (ii) clarify the treatment of Performance Compensation Awards (as defined in the Equity Plan) upon a change in control.
The changes effected by the amendment and restatement of the Severance Plan were to, among other things, (i) update the "change in control" and "good reason" definitions to be consistent with the Equity Plan, (ii) for executive officers below the chief executive officer, increase the cash severance multiple payable upon an involuntary termination of employment within 18 months following a change in control (a "Qualifying Event," as such term is defined under the Severance Plan) from 2.0x to 2.5x of the sum of the executive's Base Salary and Bonus Target (as such terms are defined under the Severance Plan), (iii) expand the period that the Company will pay for continued health coverage for participants and their eligible dependents following a Qualifying Event by up to six additional months, and (iv) provide that, upon a Qualifying Event, participants in the Severance Plan are eligible to receive certain outplacement services.
The terms of the Equity Plan and the Severance Plan are otherwise substantially unchanged.
The foregoing descriptions of the Equity Plan and the Severance Plan do not purport to be complete and are qualified in their entirety by reference to full text of the Equity Plan and Severance Plan, copies of which are filed hereto as Exhibit 10.1 and Exhibit 10.2, respectively, and are incorporated herein by reference.