SEVERANCE COMPENSATION AGREEMENT
Exhibit 99.a
THIS
AGREEMENT is made as of the 12th day of
September 2005, between CACI International
Inc, a Delaware corporation headquartered at 0000 Xxxxx Xxxxx Xxxx, Xxxxxxxxx,
Xxxxxxxx (the “Company”), and Xxxxxxx X. Xxxxx (the “Executive”) residing at
00000 Xxxx Xxxxx Xxxxx, Xxxxxxxxxxx, XX 00000.
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;
WHEREAS,
the Board of Directors of CACI International Inc has adopted a policy governing
the obligations of the Company and its senior executives (known as the Top
Management Team) in the event that the employment of any senior executive of the
Company is terminated (the Senior Executive Severance Policy); and
WHEREAS,
the Company and the Executive desire to apply the Senior Executive Severance
Policy to the Executive through the mechanism of this Agreement;
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:
1. |
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. |
2. |
The
term of this Agreement shall be for the period from September 12, 2005
through June 30, 2006, 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 Senior Executive
Severance Policy 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; |
3. |
The
Company shall have the right to terminate the Executive’s employment
without payment of severance as provided below in the event of the
Executive’s death, or on thirty (30) days written notice in the event that
the Executive shall be unable, or shall fail, to perform all of the
services required of his position with the Company as a result of any
mental or physical incapacitating disability, to the extent that such
inability or failure to perform required duties shall exist for any
consecutive ninety (90) day period. “Disability” shall be as determined by
the insurance company providing disability insurance coverage to the
Executive at the Company’s expense. The Company’s right to terminate the
Executive’s employment without payment of severance under this Paragraph
shall not limit or reduce in any way the Executive’s right to receive
benefits under any disability insurance or plan maintained by the Company
for the benefit of the Executive. |
4. |
The
Executive shall have the right on thirty (30) days written notice to the
Company to terminate his employment with 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; |
5. |
Except
as provided in Paragraph 3 and 4, the Executive’s employment with the
Company may be terminated without payment of severance as provided below
only in the event of a termination for cause as defined in this Paragraph.
For the purposes of this Agreement, “Cause” shall be defined as gross
negligence, willful misconduct, fraud, willful disregard of the CEO’s
direction or breach of published Company policy. The Executive may be
terminated for Cause only in accordance with a resolution duly adopted by
an absolute majority of the Company’s Board of Directors 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. Such resolution may be adopted by the
Board of Directors only after the Board has provided to the Executive (1)
advance written notice of a meeting of the Board called for the purpose of
determining Cause for termination of the Executive, (2) a statement
setting forth the alleged grounds for termination, and (3) an opportunity
for the Executive and, if the Executive so desires, the Executive’s
counsel, to be heard before the Board. |
6. |
Except
in connection with a Change of Control Disposition as defined in Paragraph
12, if the Executive’s employment with the Company is terminated for
any
reason other than those set forth in Paragraphs 3, 4 or 5 above, then the
Company shall pay to the Executive an amount equal to four (4) months of
the Executive’s 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 salary. |
7. |
If,
following a Change of Control Disposition of the Company as defined below
in Paragraph 12, Executive resigns for “Good Reason” as defined in this
Paragraph or the Executive’s employment is terminated within one (1) year
of the “Change of Control Disposition Date” as defined in Paragraph 12 for
any reason other than the reasons set forth in Paragraphs 3, 4 or 5
above,
then the Company shall pay to the Executive an amount equal to two (2)
times the amount that the Company would have been required to pay the
Executive under Paragraph 6 above if the Executive’s employment had been
terminated in the absence of a Change of Control Disposition. “Good
reason” for the Executive’s resignation shall mean the occurrence of any
of the following circumstances without the Executive’s prior written
consent: |
(a)
|
A
reduction in the Executive’s base salary as it existed on the day before
the Change of Control Disposition Date; |
(b) |
A
reduction in the benefits and/or incentive compensation payable to the
Executive from the level applicable to the Executive on the day before the
Change of Control Disposition Date unless such reduction is accomplished
as part of a change in benefits and/or incentive compensation plans
applicable to all officers of the Company; |
(c) |
The
assignment to the Executive of any duties inconsistent (except in the
nature of a promotion) with the position that the Executive held on the
day before the Change of Control Disposition Date or a substantial adverse
alteration in the nature or status of the Executive’s position or
responsibilities or the conditions of the Executive’s employment from
those in effect on such date; or |
(d) |
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 of Control Disposition Date; |
8. |
At
the time of termination of the Executive's employment for any reason the
Executive shall be paid all other compensation and benefits due to the
Executive at the time of termination. |
9. |
Any
compensation payable in accordance with this Agreement will be paid to the
Executive in equal semi-monthly installments over a one (1) year
period. |
10.
|
The
Executive shall not disclose, publish, or use for any purpose not directly
related to the performance of the Executive’s duties for the Company, or
permit anyone else to disclose, publish, or use any proprietary or
confidential information or trade secrets of the Company, its clients,
business partners, or subcontractors at any time during or after his
employment with the Company. This obligation shall continue so long as
such information remains legally protectable as to persons receiving it in
a confidential relationship. Executive agrees to return to the Company all
proprietary material which he possesses on the date of termination of the
Executive’s active employment with the
Company. |
11. |
A. |
The
Executive understands and agrees that this non-compete restriction is
aimed at protecting the Company’s relationship with the current and
prospective clients of the Company and/or its subsidiary and affiliated
companies, as such clients are specifically named in written proposals,
contracts and task orders (collectively, these are referred to as “CACI
Clients”). The Executive understands and agrees that the definition of
CACI Clients as used in this Agreement is intended to cover the specific
program offices or activities which the Company and/or its subsidiary and
affiliated companies pursue, or for which they perform work, within large
governmental departments, such as the Department of the Navy or the Army,
not the greater department in
general. |
B. |
The
Executive agrees that the Company may reasonably protect its relationships
with CACI Clients by prohibiting the Executive from competing for work
with: (i) any CACI Clients while the Executive is employed by the Company,
and (ii) certain CACI Clients for a reasonable period of time following
termination of the Executive’s employment. |
C. |
During
the Executive’s employment with the Company, the Executive will not
directly or indirectly sell, market or otherwise provide goods or services
to any CACI Clients in competition with those provided by the Company
and/or its subsidiary and affiliated
companies. |
D. |
For
a period of two (2) years following termination of the Executive’s
employment, the Executive will not directly or indirectly provide goods or
services to CACI Clients when such goods or services are in competition
with those goods or services (i) provided within the year prior to
termination of the Executive’s employment under contract or task order, or
(ii) offered pursuant to a formal or informal proposal, to CACI Clients by
any Corporate organizational unit for which the Executive worked or for
which the Executive had responsibility within one (1) year prior to the
termination of the Executive’s employment. |
E. |
During
the Executive’s employment with the Company and for a period of two (2)
years following termination of that employment, the Executive will not
participate in competition for the award of any contract or task order for
which any Corporate organizational unit for which the Executive worked or
for which the Executive had responsibility within one (1) year prior to
the end of the Executive’s employment with the Company is
competing. |
F. |
During
the Executive’s employment and for a period of two (2) years following
termination of that employment, the Executive will not, directly or
indirectly interfere with, disparage or damage, or attempt to interfere
with, disparage or damage, the Company’s reputation, or any relationship
between the Company or its affiliated or subsidiary companies and any
other entity. |
G. |
The
Executive understands and agrees that if the Executive were to compete
with CACI in violation of paragraphs C, D, and E above, such competition
could breach both this Agreement and the Executive’s fiduciary duties to
CACI. The Executive further understands and agrees that competition
prohibited by paragraphs 3, 4 and 5 above includes permitting another
entity’s use of the Executive’s name or resume in any proposal or other
application for such a contract or task
order. |
H. |
During
the Executive’s employment with the Company and for a period of one (1)
year thereafter, the Executive will not participate, directly or
indirectly, in any attempt to hire or solicit for employment outside of
the Company and its subsidiary and affiliated companies any person
employed by the Company and its subsidiary and affiliated
companies |
I. |
The
invalidity or unenforceability of any provisions of this provision shall
not affect the validity or enforceability of any other provisions of this
Agreement, each of which shall remain in full force and effect. If any
provision of this Agreement is found invalid, illegal or unenforceable
because it is too broad in scope, too lengthy in duration or violates any
law or regulation, it shall be reformed by narrowing its scope, limiting
its duration or construing it to avoid such violation (as the case may be)
while giving the greatest effect to the intent of the parties as is
legally permissible. |
12.
|
By
reason of the special and unique nature of the obligations hereunder, it
is agreed that neither party hereto may assign any interests, rights or
duties which the party may have in this Agreement without the prior
written consent of the other party, except that upon any “Change of
Control Disposition” of the Company through purchase, merger,
consolidation, liquidation, the acquisition by any person (as such term is
used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
1934, as amended) of beneficial ownership of twenty-five percent (25%) or
more of the Company’s common stock, or sale of all or substantially all of
the assets of the Company to another party whether or not the Company is
the surviving corporation, this Agreement shall inure to the benefit of
and be binding upon the Executive and the purchasing, surviving or
resulting entity, company or corporation in the same manner and to the
same extent as though such entity, company or corporation were the
Company. The “Change of Control Disposition Date” shall be that calendar
date on which the Change of Control Disposition event is consummated and
legally binding upon the parties. |
13.
|
Any
controversy or claim arising out of or relating to this Agreement, or its
breach, shall be resolved by arbitration. This arbitration shall be held
in Arlington, Virginia in accordance with the model employment arbitration
procedures of the American Arbitration Association. Judgment upon award
rendered by the arbitrator shall be binding upon both parties and may be
entered and enforced in any court of competent
jurisdiction. |
14. |
In
consideration of any payment made to the Executive pursuant to this
Agreement, the Executive, for himself, his heirs and legal
representatives, releases and forever discharges the Company, its
predecessors, successors, parent, subsidiary or affiliate companies, and
all of their past, present or future directors, officers, employees or
agents from any and all claims, demands, or causes of action, whether
known or unknown, existing at the time of payment or arising subsequently
thereto, arising out of or related to the Executive’s employment by the
Company or
the termination of that employment. |
15. |
This
Agreement shall be construed and enforced in accordance with the laws of
the Commonwealth of Virginia without regard to its principles of conflicts
of laws. |
16. |
This
Agreement constitutes the entire understanding and agreement between the
Company and the Executive with regard to all matter herein. This Agreement
may be amended only in writing, signed by both parties
hereto. |
IN
WITNESS WHEREOF the parties have executed this Agreement to be effective the day
and year first above written.
CACI
International Inc |
Xxxxxxx
X. Xxxxx | ||
By: |
/s/
Xxxxxxx X. Xxxxxxxx |
/s/
Xxxxxxx X. Xxxxx |