Exhibit 10.23
SEVERANCE COMPENSATION
AGREEMENT
THIS AGREEMENT is
made as of the 16 th day of June, 2008, between CACI
International Inc, a Delaware corporation headquartered at 1100
North Glebe Road, Arlington, Virginia, and Gregory R. Bradford (the
“Executive”) residing at residing at 2 Hurlingham Road,
London SW6 3QY United Kingdom. This Agreement replaces the
Severance Compensation Agreement between the parties dated
July 1, 2007.
W I T N E S S E T H:
WHEREAS, the Executive is employed
by CACI International Inc and/or one or more of its wholly-owned
subsidiaries (“the Company”), and the services of the
Executive, his managerial experience, and his knowledge of the
affairs of the Company are of great value to the Company;
and
WHEREAS, the Board of Directors of
CACI International Inc has determined that it is in the best
interests of the Company and the Executive to enter into this
agreement setting forth the obligations of the Company and the
Executive upon the Executive’s termination of
employment.
NOW, THEREFORE, in consideration of
the mutual promises herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
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1.
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At-Will
Employment . The Company
and the Executive agree that the Executive is employed on an
at-will basis. Unless otherwise specifically provided in a written
agreement signed by both the Company and the Executive, the parties
understand that the Executive is employed for no fixed term or
period, that either the Company or the Executive may terminate the
Executive’s employment with the Company at any time with or
without a reason, and that this Agreement creates no contract of
employment between the Company and the Executive.
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2.
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Term .
The term of this Agreement shall be for the period from
June 16, 2008 through June 30, 2009, and shall
automatically renew itself from year-to-year thereafter, unless the
Company provides to the Executive written notice of the
Company’s intent to amend the Company’s severance
policy with respect to its senior executives and to apply the
amended policy to the Executive. In the event the Company provides
such notice to the Executive, this Agreement shall expire by its
terms at the end of the full term year that begins on the next
July 1 following the date such notice is received by the
Executive.
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3.
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Death or Disability
. The Executive’s employment
shall terminate (without severance) automatically upon the death of
the Executive. The Company shall have the right to terminate the
Executive’s employment without payment of severance on thirty
(30) days written notice in the event of the Executive’s
Disability. For purposes of this Agreement,
“Disability” shall mean (i) if the Executive is
subject to a legal decree of incompetency
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(the date of such decree being
deemed the date on which such disability occurred), (ii) the
written determination by a physician selected by the Company that,
because of a medically determinable disease, injury or other
physical or mental disability, the Executive is unable
substantially to perform all of the services required of his
position with the Company, and that such disability has lasted for
the immediately preceding ninety (90) days and is, as of the
date of determination, reasonably expected to last an additional
ninety (90) days or longer after the date of determination, in
each case based upon medically available reliable information, or
(iii) Executive’s qualifying for benefits under the
Company’s long-term disability coverage, if any. The
Company’s right to terminate the Executive’s employment
without payment of severance under this Paragraph shall not limit
or reduce in anyway the Executive’s right to receive benefits
under any disability insurance or plan maintained by the Company
for the benefit of the Executive.
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4.
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Voluntary
Separation (Other Than For Good Reason) . The Executive shall have the right to
terminate his employment with the Company on thirty (30) days
written notice to the Company at any time on written notice to the
Company indicating the Executive’s desire to retire or to
resign from the Company’s employment.
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5.
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Termination
For Cause .
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(a)
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The Board of
Directors of the Company may terminate this Agreement for
“Cause.” For the purposes of this Agreement
“Cause” shall be defined as:
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(i)
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Gross
negligence, willful misconduct or willful malfeasance by the
Executive in connection with the performance of any material duty
for the Company;
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(ii)
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The
Executive’s continued failure, after being provided notice
specifying the nature of such failure, to comply with a direction
of the President and Chief Executive Officer or the Board with
respect to an act, omission or failure to act on the part of the
Executive;
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(iii)
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A breach of the
Executive’s fiduciary obligations to the Company;
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(iv)
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A violation by
the Executive of any legal requirement or obligation relating to
the Company that the Board of Directors, acting in good faith,
reasonably determines is likely to have a material adverse impact
on the Company (unless the Executive had a reasonable good faith
belief that the act, omission or failure to act in question was not
a violation of such legal requirement or obligation);
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(v)
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The
Executive’s indictment for, conviction of, or plea of guilty
or nolo contendere to a felony involving theft, embezzlement,
fraud, dishonesty, or any similar offense;
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(vi)
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Theft,
embezzlement or fraud by the Executive in connection with the
performance of his duties for the Company;
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(vii)
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A material
failure to comply with any lawful direction of the Executive
Chairman, Chief Executive Officer or Board of Directors of the
Company;
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(viii)
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A breach of any
material obligation imposed on the Executive by this
Agreement;
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(ix)
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A material
violation of the Company’s Code of Ethics and Business
Conduct Standard or any other published Company policy;
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(x)
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Any act,
omission or failure to act on the part of the Executive (including
an act, omission or failure to act prior to the commencement of the
Executive’s employment with the Company) that results in the
inability of the Executive to secure or maintain security
clearances necessary or appropriate to Executive’s position
with the Company and the conduct of the Company’s business;
and
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(xi)
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The
misappropriation of any material business opportunity.
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“Cause” shall be based
only on material matters and not on matters of minor
importance.
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(b)
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The Executive
may be terminated for Cause only in accordance with a resolution
duly adopted by an absolute majority of the entire number of the
non-management directors of the Company finding that, in the good
faith opinion of the Board of Directors, the Executive engaged in
conduct justifying a termination for Cause as that term is defined
above and specifying the particulars of the conduct motivating the
Board’s decision to terminate the Executive for Cause. Such
resolution may be adopted by the Board only after the Board has
provided to the Executive (i) advance written notice of a
meeting of the Board called for the purpose of determining Cause
for termination of the Executive, (ii) a statement setting
forth the alleged grounds for termination, and (iii) an
opportunity for the Executive, and, if the Executive so desires,
the Executive’s counsel to be heard before the Board. Prior
to such meeting of the Board, the Executive shall be given a
reasonable opportunity to cure any act or omission which the Board,
in its reasonable judgment, determines is susceptible of cure. The
action required to cure the act or omission, and the time period in
which cure must be effected, shall be communicated to the Executive
in writing.
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6.
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Termination
Payment (Not In Connection With A Change In Control)
. If, prior to, or more than twelve
(12) months following a Change in Control Date (as defined in
Paragraph 7 below), the Executive’s employment is terminated
by the Company for any reason other than those set forth in
Paragraphs 3, 4 or 5 above, or the Executive resigns for
“Good Reason” (as defined in Paragraph 7 below) within
six (6) months following the initial existence of such Good
Reason, then the following provisions shall apply:
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(a)
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The Company
shall pay to the Executive an amount equal to equal to four
(4) months of the Executive’s “Current Base
Salary,” plus one (1) month base salary for each year of
service by the Executive with the Company, up to an aggregate
maximum of twelve (12) months of the Executive’s Current
Base Salary. For this purpose, the Executive’s “Current
Base Salary” shall be deemed to be the amount of base salary
being paid to the Executive at the time of termination.
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(b)
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Before the
Executive may resign for Good Reason, the Executive must provide
the Company at least thirty (30) days’ prior written
notice of his intent to resign for Good Reason and specify in
reasonable detail the Good Reason upon which such resignation is
based. The Company shall have a reasonable opportunity to cure any
such Good Reason (that is susceptible of cure) within thirty
(30) days after the Company’s receipt of such notice.
The Executive’s delay in providing such notice shall not be
deemed to be a waiver of any such Good Reason, nor does the failure
to resign for one Good Reason prevent any later Good Reason
resignation for a similar or different reason.
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7.
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Termination
Payment (In Connection With A Change In Control)
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(a)
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For purposes of
this Agreement:
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(i)
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A “Change
of Control” occurs whenever there is a change in control of
the Company within the meaning of the CACI International, Inc 2006
Stock Incentive Plan.
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(i)
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The
“Change of Control Date” shall be the date on which a
Change of Control event is legally consummated and legally binding
upon the parties.
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(ii)
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Prior to a
Change in Control Date, “Good Reason” for the
Executive’s resignation shall mean the occurrence of any of
the following circumstances without the Executive’s prior
written consent:
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(1)
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A material
reduction in the Executive’s total compensation and benefit
opportunity (other than a reduction made by the Board, acting in
good faith, based upon the performance of the Executive, or to
align the compensation and benefits of the Executive with that of
comparable executives, based on market data); or
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(2)
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A substantial
adverse alteration in the conditions of the Executive’s
employment.
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(iii)
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Following a
Change in Control Date, “Good Reason” for the
Executive’s resignation shall also include the occurrence of
any of the following circumstances without the Executive’s
prior written consent:
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(1)
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A substantial
adverse alteration in the nature or status of the Executive’s
position or responsibilities from those in effect on the day before
the Change in Control Date; or
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(2)
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A change in the
geographic location of the Executive’s job more than fifty
(50) miles from the place at which such job was based on the
day before the Change in Control Date.
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(b)
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If, within
twelve (12) months of the Change in Control Date, the
Executive resigns for Good Reason, or the Executive’s
employment is terminated for any reason other than the reasons set
forth in Paragraphs 3, 4 or 5 above, then the Company shall pay to
the Executive the following amounts:
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(i)
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An amount equal
to equal to eight (8) months of the Executive’s Current
Base Salary (as defined in Paragraph 6 above), plus two
(2) months base salary for each year of service by the
Executive with the Company, up to an aggregate maximum of
twenty-four (24) months of the Executive’s Current Base
Salary.
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(ii)
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A prorated
portion of the cash incentive (including, for this purpose, the
annual component and any partial quarterly component) otherwise
payable to the Executive for the fiscal year of termination under
the annual incentive or bonus plan maintained by the Company for
its senior executives (the “Annual Incentive Plan”) (or
any replacement bonus or incentive arrangement covering the
Executive). Such amount shall be determined based on Company
performance consistent with the cash incentive paid under the
Annual Incentive Plan to comparable active executives in good
standing who meet expectations and remained on the payroll and
eligible for a bonus. The amount payable shall be determined by
multiplying the cash incentive that the Executive would have
received had his employment not terminated, by a fraction, the
numerator of which is the number of months in the fiscal year (in
the case of the annual component) or fiscal quarter (in the case of
the quarterly component) during which Executive was employed
(including the month in which the termination occurs) and the
denominator of which is twelve (in the case of the annual
component) or three (in the case of the quarterly
component).
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(iii)
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A cash lump sum
amount equal to one-and-one-half (1.5) times the average cash
incentive (including, for this purpose, any quarterly and annual
components) actually paid to the Executive under the Annual
Incentive Plan for the five (5) fiscal years immediately
preceding the year of termination.
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(c)
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The ability of
the Executive to resign for Good Reason shall be subject to the
notice and opportunity to cure provisions contained in Paragraph
6(b).
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(a)
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If it shall be
determined that in connection with a Change in Control, any
payment, vesting, distribution, or transfer by the Company or any
successor, or any affiliate of the foregoing or by any other
person, or any other event occurring with respect to the Executive
and the Company for the Executive’s benefit, whether paid or
payable or distributed or distributable under the terms of this
Agreement or otherwise (including under any employee benefit plan)
(a “Parachute Payment”) would be subject to or result
in the imposition of the excise tax imposed by Section 4999 of
the Code (and any regulations issued thereunder, any successor
provision, and any similar provision of state or local income tax
law) (collectively, an “Excise Tax”), then, subject to
the provisions of Paragraph 8(b) below, the Company shall pay to
the Executive an amount equal to two thirds of the Excise Tax, up
to an overall maximum payment of $500,000 with respect to such
Change in Control.
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(b)
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Notwithstanding
the provisions of Paragraph 8(a), no such amount shall be payable
or made under Paragraph 8(a) if the Executive would, on a net
after-tax basis (taking into account the amount of any payment
required under Paragraph 8(a) and any prior Parachute Payments in
connection with such Change
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