Document:

Exhibit

EXHIBIT 10.39

RESTRICTED STOCK RIGHTS
ISSUED UNDER
RYDER SYSTEM, INC. 2019 EQUITY AND INCENTIVE COMPENSATION PLAN

20XX TERMS AND CONDITIONS

The following terms and conditions apply to the Restricted Stock Rights (the “RSRs”) granted in 20XX by Ryder System, Inc. (the “Company”) under the Ryder System, Inc. 2019 Equity and Incentive Compensation Plan (the “Plan”), as specified in the Restricted Stock Rights Award Notification (the “Notification”) for the RSRs which references these terms and conditions.  Certain terms of the RSRs, including the number of Shares underlying the RSRs, are set forth in the Notification.  The Compensation Committee of the Company’s Board of Directors (the “Committee”) shall administer the RSRs in accordance with the Plan.  Capitalized terms used herein and not defined shall have the meaning ascribed to such terms in the Plan or in the Notification.

		
	1.
	General.  Each RSR represents the right to receive one Share on a future date, on the terms and conditions set forth herein, in the Notification and the Plan, the applicable terms, conditions and other provisions of which are incorporated by reference herein (collectively, the “Award Documents”). A copy of the Plan and the documents that constitute the “Prospectus” for the Plan under the Securities Act of 1933 have been made available to the Participant prior to or along with delivery of the Notification.  In the event there is an express conflict between the provisions of the Plan and those set forth in any other Award Document, the terms and conditions of the Plan shall govern.  

The terms and conditions contained herein may be amended by the Committee as permitted by the Plan; none of the terms and conditions of the RSRs may be amended or waived without the prior approval of the Committee.  Any amendment or waiver not approved by the Committee will be void and have no force or effect.  Any employee or officer of the Company who authorizes any such amendment or waiver without the prior approval of the Committee will be subject to disciplinary action up to and including forfeiture of his or her RSRs and/or termination of employment (unless otherwise prohibited by law).  All decisions and determinations made by the Committee relating to the RSRs shall be final and binding on the Participant, his or her beneficiaries and any other person having or claiming an interest under the Plan. 

		
	2.
	Delivery of Shares.  Subject to Sections 3 and 4 below, the RSRs will vest pursuant to the vesting schedule set forth in the Notification, provided the Participant is, on the relevant vesting date, and has been from the date of grant of the RSRs to the relevant vesting date, continuously employed by the Company or one of its Subsidiaries.  For purposes of these terms and conditions, the Participant shall not be deemed to have terminated his or her employment with the Company and its Subsidiaries if he or she is then employed by the Company or another Subsidiary without a break in service.  

Upon vesting, the Shares subject to the vested RSRs will be transferred to an account held in the name of the Participant by the Company’s independent stock plan administrator and the Participant will receive notice of such transfer together with all relevant account details. 

		
	3.
	Termination of RSRs; Forfeiture.  The RSRs will be cancelled upon or following the termination of the Participant’s employment with the Company and its Subsidiaries as described below.  

		
	(a)
	Resignation by the Participant or Termination by the Company or a Subsidiary:  Except as otherwise provided in subsection (b) or Section 4 below, all outstanding RSRs will be forfeited and the Participant will not have any right to delivery of Shares that did not vest prior to such termination.  If the Participant’s employment is terminated by the Company or a Subsidiary for Cause, then the Company shall have the right to reclaim and receive from the Participant any Shares delivered to the Participant pursuant to Section 2 within the one year period before the date of the Participant’s termination of employment, or to the extent the Participant has transferred such Shares, the equivalent after-tax value thereof (as of the date the Shares were transferred by the Participant) in cash.

		
	(b)
	Termination by Reason of Death, Disability or Retirement:  Except as otherwise provided in Section 4 below, a prorated portion of the RSRs shall vest, calculated as follows: (A) the total number of RSRs awarded, multiplied by a fraction (and rounded down to the nearest whole Share), the numerator of which shall be the number of days from the date of grant of the RSRs to the date of death, Disability or Retirement, as the case may be, and the denominator of which shall be the number of days from the date of grant of the RSRs to the last scheduled vesting date for the RSRs set forth in the Notification, less (B) the number of RSRs already vested at the time of the Participant’s death, Disability or Retirement, as the case may be.  Shares equal to the prorated number of RSRs that so vest will be delivered to the Participant (or his or her Beneficiary, in the event of death) within 60 days following the date of death, Disability or Retirement, as the case may be, subject to Section 9.17 of the Plan.

		
	(c)
	Proscribed Activity:  If, during the Proscribed Period but prior to a Change of Control, the Participant engages in a Proscribed Activity, then the Company shall have the right to reclaim and receive from the Participant all Shares delivered to the Participant pursuant to Section 2 during the one year period immediately prior to, or at any time following, the date of the Participant’s termination of employment, or to the extent the Participant has transferred such Shares, the after-tax equivalent value thereof (as of the date the Shares were transferred by the Participant) in cash.

		
	4.
	Change of Control.  In the event of a Change of Control, the RSRs shall become payable as described in this Section 4, provided that the Committee may take such other actions with respect to the RSRs as it deems appropriate pursuant to Section 7 and 8 of the Plan. 

		
	(a)
	Form of Payment:  The Committee may determine that the unvested RSRs will be (i) converted to and payable in units with respect to shares or other equity interests of the acquiring company or its parent or (ii) payable in cash based on the Fair Market Value of the RSRs as of the date of the Change of Control.

		
	(b)
	Continued Employment:  If the Participant continues in employment with the Company or one of its Subsidiaries through each applicable vesting date following the Change of Control, the RSRs will vest pursuant to the vesting schedule set forth in the Notification.

		
	(c)
	Termination without Cause, for Good Reason or on Account of Death, Disability or Retirement.  If the Participant’s employment is terminated by the Company without Cause, the Participant terminates employment for Good Reason, or the Participant’s employment terminates on account of death, Disability or Retirement, in each case, upon or within 24 months following a Change of Control and prior to the last vesting date set forth in the Notification, any unvested RSRs shall become fully vested upon such termination of 

2

employment and shall be paid within 60 days following the date of such termination, subject to Section 9.17 of the Plan.

		
	(d)
	Termination Prior to a Change of Control:  To the extent (i) a Participant’s employment was terminated by the Company other than for Cause or Disability within the 12 months prior to the date on which the Change of Control occurred, (ii) during such 12 month period the Participant did not engage in a Proscribed Activity, and (iii) the Committee determines, in its sole and absolute discretion, that the decision related to such termination was made in contemplation of the Change of Control, then upon the Change of Control, the Participant will become entitled to a cash payment equal to the product of: the Fair Market Value of a Share on the date of the Change of Control and the number of Shares to which the Participant would otherwise have been entitled if the Participant’s employment had continued until the date of the Change of Control and the Participant’s employment had been terminated as described in subsection (c) above as of such date.  In the event that the Change of Control constitutes a change “in ownership” or “effective control” or a change in the “ownership of a substantial portion of the assets” of the Company under Section 409A of the Code and the rulings and regulations issued thereunder (any such transaction, a “409A Compliant COC”), such cash payment will be made in a lump sum within 60 days following the date on which the Change of Control occurs.  In the event such Change of Control does not constitute a 409A Compliant COC (any such transaction, a “Non-409A Compliant COC”), the cash payment will be distributed to the Participant on the first anniversary of the Participant’s separation from service.  

		
	5.
	Rights as a Shareholder; Dividend Equivalent Rights. The Participant will not have the rights of a shareholder of the Company with respect to Shares subject to the RSRs until such Shares are actually delivered to the Participant.  If and when Shares are delivered to the Participant pursuant to Section 2, 3 or 4, as applicable, the Company will make a cash payment equal to the product of (i) the number of Shares delivered, and (ii) the aggregate dividends paid on a Share during the period from the date of grant of the award until the date the Shares are delivered.

  
		
	6.
	U.S. Federal, State and Local Income Taxes. The Participant is solely responsible for the satisfaction of all taxes generally that may arise in connection with the RSRs.  At the time of taxation, the Company shall have the right to deduct from other compensation or from amounts payable with respect to the RSRs, including by withholding Shares otherwise issuable upon settlement of the RSRs an amount equal to the federal (including FICA), state and local income and payroll taxes required by law to be withheld with respect to the RSRs.  The Company intends to satisfy this withholding obligation by reducing the number of Shares and/or cash that are to be delivered to the Participant under this Agreement in an amount sufficient to satisfy the withholding obligations due (based on the Fair Market Value of the Shares for the related RSRs).  Notwithstanding the foregoing, the Company may satisfy any tax obligations it may have in any jurisdiction outside the U.S. in any manner it deems, in its sole and absolute discretion, to be necessary or appropriate.  

		
	7.
	Section 409A.  The RSRs are intended to comply with Section 409A of the Code or an exemption, and delivery of Shares and other payments pursuant to the RSRs may only be made upon an event and in a manner permitted by Section 409A, to the extent applicable.  The RSRs shall be administered consistent with Section 9.17 of the Plan.

		
	8.
	Statute of Limitations and Conflicts of Laws.  All rights of action by, or on behalf of the Company or by any shareholder against any past, present, or future member of the Board of Directors, officer, or employee of the Company arising out of or in connection with the RSRs or the Award Documents, must be brought within three years from the date of the act or omission in respect of which such 

3

right of action arises. The RSRs and the Award Documents shall be governed by the laws of the State of Florida, without giving effect to principles of conflict of laws, and construed accordingly.

		
	9.
	No Employment Right.  Neither the grant of the RSRs nor any action taken hereunder shall be construed as giving any employee or any Participant any right to be retained in the employ of the Company. The Company is under no obligation to grant RSRs hereunder.  Nothing contained in the Award Documents shall limit or affect in any manner or degree the normal and usual powers of management, exercised by the officers and the Board of Directors or committees thereof, to change the duties or the character of employment of any employee of the Company or to remove the individual from the employment of the Company at any time, all of which rights and powers are expressly reserved. 

		
	10.
	No Assignment.  A Participant’s rights and interest under the RSRs may not be assigned or transferred, except as otherwise provided herein, and any attempted assignment or transfer shall be null and void and shall extinguish, in the Company’s sole discretion, the Company’s obligation under the RSRs or the Award Documents. 

		
	11.
	Unfunded Plan.  Any shares or other amounts owed under the RSRs shall be unfunded. The Company shall not be required to establish any special or separate fund, or to make any other segregation of assets, to assure delivery or payment of any earned amounts.

		
	12.
	Company Policies. The RSRs and any cash or Shares delivered pursuant to the RSRs shall be subject to all applicable clawback or recoupment policies, share trading policies, share holding and other policies that may be implemented by the Company’s Board of Directors from time to time.

		
	13.
	Definitions.  

		
	(a)
	“Proscribed Activity” means any of the following: 

		
	(i)
	the Participant’s breach of any written agreement between the Participant and the Company or any of its Subsidiaries, including any agreement relating to nondisclosure, noncompetition, nonsolicitation and/or nondisparagement, to the extent such agreements are enforceable under applicable law;

		
	(ii)
	the Participant’s direct or indirect unauthorized use or disclosure of confidential information or trade secrets of the Company or any Subsidiary, including, but not limited to, such matters as costs, profits, markets, sales, products, product lines, key personnel, pricing policies, operational methods, customers, customer requirements, suppliers, plans for future developments, and other business affairs and methods and other information not readily available to the public; 

		
	(iii)
	the Participant’s direct or indirect engaging or becoming a partner, director, officer, principal, employee, consultant, investor, creditor or stockholder in/for any business, proprietorship, association, firm or corporation not owned or controlled by the Company or its Subsidiaries which is engaged or proposes to engage in a business competitive directly or indirectly with the business conducted by the Company or its Subsidiaries in any geographic area where such business of the Company or its Subsidiaries is conducted, provided that the Participant’s investment in 1% or less of the outstanding capital stock of any corporation whose 

4

stock is listed on a national securities exchange shall not be treated as a Proscribed Activity; 

		
	(iv)
	the Participant’s direct or indirect, either on the Participant’s own account or for any person, firm or company, soliciting, interfering with or inducing, or attempting to induce, any employee of the Company or any of its Subsidiaries to leave his or her employment or to breach his or her employment agreement; 

		
	(v)
	the Participant’s direct or indirect taking away, interfering with relations with, diverting or attempting to divert from the Company or any Subsidiary any business with any customer of the Company or any Subsidiary, including (A) any customer that has been solicited or serviced by the Company within one year prior to the date of termination of Participant’s employment with the Company and (B) any customer with which the Participant has had contact or association, or which was under the supervision of Participant, or the identity of which was learned by the Participant as a result of Participant’s employment with the Company; 

		
	(vi)
	following the Participant’s termination of employment, the Participant’s making of any remarks disparaging the conduct or character of the Company or any of its Subsidiaries, or their current or former agents, employees, officers, directors, successors or assigns; or 

		
	(vii)
	the Participant’s failure to cooperate with the Company or any Subsidiary, for no additional compensation (other than reimbursement of expenses), in any litigation or administrative proceedings involving any matters with which the Participant was involved during the Participant’s employment with the Company or any Subsidiary.        

Notwithstanding the foregoing, nothing in these terms and conditions restricts or prohibits the Participant from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with, a self-regulatory authority or a government agency or entity, including the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange Commission, Congress, and any agency Inspector General (collectively, the “Regulators”), or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation.  The Participant does not need the prior authorization of the Company to engage in such communications with the Regulators, respond to such inquiries from the Regulators, provide confidential information or documents to the Regulators, or make any such reports or disclosures to the Regulators.  The Participant is not required to notify the Company that the Participant has engaged in such communications with the Regulators.

If the Participant primarily provides services in California, subsection (iii) above shall not apply to the Participant and subsection (v) above shall apply to the Participant only to the extent that the Participant uses or discloses confidential information of the Company or any of its Subsidiaries in performing such Proscribed Activity and to the extent permitted by applicable law. 

5

		
	(b)
	“Proscribed Period” means the period beginning on the date of termination of Participant’s employment and ending on the later of (A) the one year anniversary of such termination date or (B) if the Participant is entitled to severance benefits in the form of salary continuation, the date on which salary continuation is no longer payable to the Participant.

		
	(c)
	 “Retirement” means termination of employment for any reason (other than for Cause or by reason of death or Disability) upon or following attainment of age 55 and completion of 5 years of service, or upon or following attainment of age 65 without regard to years of service; provided that, Retirement shall not be deemed to occur unless such termination of service constitutes a separation from service, as defined by Section 409A of the Code.

		
	12.
	Other Benefits.  No amount accrued or paid under the RSRs shall be deemed compensation for purposes of computing a Participant’s benefits under any retirement plan of the Company or its Subsidiaries, nor affect any benefits under any other benefit plan now or subsequently in effect under which the availability or amount of benefits is related to the Participant’s level of compensation.

		
	13.
	Defend Trade Secrets Act Notice.  Participants are hereby notified that the immunity provisions in Section 1833 of title 18 of the United States Code provide that an individual cannot be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made (i) in confidence to federal, state or local government officials, either directly or indirectly, or to an attorney, and is solely for the purpose of reporting or investigating a suspected violation of the law, (ii) under seal in a complaint or other document filed in a lawsuit or other proceeding, or (iii) to the Participant’s attorney in connection with a lawsuit for retaliation for reporting a suspected violation of law (and the trade secret may be used in the court proceedings for such lawsuit) as long as any document containing the trade secret is filed under seal and the trade secret is not disclosed except pursuant to court order

6ex_174474.htm

Exhibit 10.1

 

 

 

 

 

 

 

	Date: 	February 27, 2020
	 	 
	To:	[NEO Name]
	 	 
	From:	John Wasson
	 	 
	Subject:	Severance Benefits

    

In consideration of your ongoing and valuable service to ICF International, Inc. and its affiliates (collectively, the “Company”), you are eligible for severance in accordance with the terms of this Letter Agreement (“Agreement”). Except to the extent that prior agreements between you and the Company, other applicable arrangements or Company policies apply to events or matters giving rise to claims in the nature of clawbacks related to events taking place prior to the date of this Agreement (or to the extent expressly provided herein, prior to the third anniversary hereof), this Agreement supersedes all prior oral and written agreements, memoranda, letters, etc. concerning severance offered to you by the Company.

 

Severance under this Agreement shall only be available in the event your employment is involuntarily terminated without Cause (defined below) before a Change of Control (defined below) or in the event there is a Change of Control and your employment following such Change of Control is involuntarily terminated without Cause or terminated by you for Good Reason (defined below). In addition, you must execute and not revoke a Separation Agreement and Release of Claims in a form provided by the Company to be eligible for the benefits provided in this Agreement.

 

	
			A.

				
			Definitions

			

 

	 	
			1.

				
			Cause. For purposes of this Agreement, “Cause” shall have the same definition as in the Incentive Plan.

			

 

	 	
			2.

				
			Change of Control. For purposes of this Agreement, “Change of Control” shall have the same definition as in the Incentive Plan.

			

 

	 	
			3.

				
			Clawback Event means (i) your acts or omissions (whether or not constituting misconduct) that are a significant contributing factor to the Company having to restate its financial statements; (ii) the fact that the Company’s financial results, as used to determine your incentive compensation, are found to reflect a material error or otherwise be materially inaccurate, whether or not you were responsible for, or your actions were a significant contributing factor with respect to, the inaccuracy; and/or (iii) you engaged in conduct that is or could have been a basis for termination for Cause, and which causes a material and adverse reputational or other financial harm to the Company. For the avoidance of doubt, Section E5 of this Agreement will no longer apply following a Change of Control.

			

 

 

	SEVERANCE AGREEMENT OF [NEO NAME]	PAGE 1

                              

 

 

 

	 	
			4.

				
			Code. For purposes of this Agreement, “Code” shall have the same definition as in the Incentive Plan.

			

 

	 	
			5.

				
			Disability. For purposes of this Agreement, “Disability” shall mean permanent and total disability as defined in Code Section 22(e)(3).

			

 

	 	
			6.

				
			Excess Incentive Award means the amount of the clawback determined by the Board of Directors in accordance with this Agreement. For illustrative purposes, in the case of a restatement, the Excess Incentive Award would generally be no more than the positive difference, if any, between the short-term incentive awards or bonuses paid to you and the amounts(s) of such payments that would have been paid to you had the amount(s) of the award(s) been calculated based on the Company’s financial statements, as restated, plus an amount reflecting the effect of the restatement on long-term (equity) incentive awards that were granted after the date of this Agreement based wholly or in part on a financial reporting, stock price or similar shareholder return measure; in the case of a material error or inaccuracy in the financial statements, the Excess Incentive Award would generally be no more than the positive difference, if any, between the short-term incentive awards or bonuses paid to you and the amount(s) of such payments that would have been paid to you had the amount(s) of the award(s) been calculated based on the Company’s financial statements, after correcting for such material error or inaccuracy, plus an amount reflecting the effect of the material error or inaccuracy on the value of long-term (equity) incentive awards that were granted after the date of this Agreement based wholly or in part on a financial reporting, stock price or similar shareholder return measure; and, in the case of conduct by you that causes a material and adverse reputational or other financial harm, the Excess Incentive Award will be determined in good faith by the Board of Directors in accordance with the clawback provisions in this Agreement and be reasonably proportional, taking into account the egregiousness of your conduct, as alleged, whether the harm is directly connected to your conduct, the degree of financial harm to investors, and actual impact on the Company’s ability to earn new work from its customers.

			

 

	 	
			7.

				
			Good Reason means if, within the Post-COC Period, any of the following events occur to which you have not consented in writing: (i) a material reduction of the nature and scope of the authority, functions, or duties that were assigned to you immediately prior to the Change of Control; (ii) a material reduction in the compensation you were eligible to receive (including applicable bonus plans) immediately prior to the Change of Control; (iii) the Company relocates your primary office and work location 50 miles or more away from the primary office and work location at which you were situated immediately prior to the Change of Control; or (iv) the entity effectuating the Change of Control fails to adopt this Agreement. A termination for Good Reason shall not exist unless: (x) you provide, within 45 days of such event, written notice to the Office of General Counsel of the Company of the occurrence of one of the foregoing events; (y) the Company fails to cure such occurrence within 30 days after the date such notice is received; and (z) you resign your employment with an effective date of not more than 60 days following the end of the cure period (unless a later date is mutually agreed upon by the parties).

			

 

 

	SEVERANCE AGREEMENT OF [NEO NAME]	PAGE 2

 

 

 

	 	
			8.

				
			Incentive Plan. For purposes of this Agreement, the Company’s 2018 Omnibus Incentive Plan, as amended from time to time, or any successor equity incentive plan, shall be referred to hereinafter as the “Incentive Plan.”

			

 

	 	
			9.

				
			Post-COC Period means the twelve (12) month period following a Change of Control.

			

 

	
			B.

				
			Separation Agreement and Release of Claims and Adherence to Post-Termination Obligations 

			

 

Your eligibility for the benefits set forth in this Agreement are subject to the following:

 

	 	
			1.

				
			Separation Agreement and Release of Claims. To be eligible to receive the benefits provided in Sections C and D below, you must enter into, and not revoke, a Separation Agreement and Release of Claims (“Release”) within 45 days after your date of termination, in a form provided to you by the Company, in a manner consistent with the instructions in such Release, in which you waive all legal claims against the Company and any related parties or individuals to the extent permitted by law, and agree to such other provisions as are required by the Company (e.g., confidentiality, non-disparagement, cooperation, affirmation of post-employment obligations). In the event the Release could become effective in 1 of 2 taxable years depending on when you execute and deliver the Release, the Release will be deemed executed in the later of such tax years.

			

 

	 	
			2.

				
			Adherence to Other Post-Termination Obligations. To be eligible to receive the benefits provided in Sections C and D below, you must comply with the terms of any and all other agreements between you and the Company containing post-employment obligations (these agreements include, but are not limited to, the Company's Confidentiality, Intellectual Property, Non-Competition and Non-Solicitation Agreement).

			

 

	
			C.

				
			No-Cause Termination Not Within the Post-COC Period

			

 

In the event that the Company involuntarily terminates your employment for a reason other than Cause not within the Post-COC Period, you will be entitled to receive the following benefits in exchange for your agreement to abide by the conditions described in this Agreement. For purposes of this Section C, involuntary termination by the Company without Cause does not include termination of employment due to death, Disability, retirement, or resignation.

 

	 	1.	Severance Pay. Within sixty (60) days following your termination of employment date, you will commence receiving 12 months of severance pay calculated based on your base salary at the time of termination. Such severance pay will be paid in bi-weekly equal installments in accordance with the Company’s regularly scheduled pay dates and continue on each subsequent bi-weekly payroll date until paid in full and will be less taxes and other required withholding. In the event the 60-day period begins in one calendar year and ends in a second calendar year, payment of such installments shall commence in the second calendar year.

 

 

	SEVERANCE AGREEMENT OF [NEO NAME]	PAGE 3

 

 

 

	 	
			2.

				
			Bonus. Within ninety (90) days following your termination of employment date, you will be paid in a lump sum your target bonus for the year in which your employment was involuntarily terminated. The bonus payment will be less taxes and other required withholding. In the event the 90-day period begins in one calendar year and ends in a second calendar year, payment will always be made in the second calendar year.

			

 

	 	
			3.

				
			COBRA. Provided you are enrolled in the Company’s group health plan, following your termination, you, and any enrolled dependents, will have the option to continue your health insurance coverage in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). If you elect COBRA, the monthly COBRA premiums for you and your enrolled dependents during the length of the severance payment period shall equal the amount you would have paid each month for such group health plan coverage had you remained actively employed, which premiums will be paid by you directly to our COBRA service provider. After that time, you will be responsible for the full cost of the COBRA premiums plus a two percent administration fee. Notwithstanding the foregoing, in the event you become reemployed with another employer and are eligible to receive group health plan coverage from such employer, the Company’s obligations under this Section shall cease as of the date you are eligible for health benefits through your new employer. You must promptly notify the Company of any such new employment.

			

 

	 	
			4.

				
			Career Assistance Services. You will be eligible to participate in a 6-month executive career transition service offered by the Company’s service provider, provided you initiate use of their services within 3 months of your termination.

			

 

	
			D.

				
			Termination without Cause or for Good Reason Following a Change of Control:

			

     

In the event that, within the Post-COC Period, your employment is terminated without Cause by the Company or by you for Good Reason, you will be entitled to receive the following benefits in exchange for your agreement to abide by the conditions described in this Agreement. For purposes of this Section D, termination by the Company without Cause does not include termination of employment due to death, Disability, retirement, or resignation.

 

	 	
			1.

				
			Severance Pay. Within sixty (60) days following your termination of employment date, you will receive 24 months of severance calculated based on your base salary at the time of termination. Such severance pay will be paid in a lump sum and will be less taxes and other required withholding. In the event the 60-day period begins in one calendar year and ends in a second calendar year, payment of such installments shall commence in the second calendar year.

			

 

	 	
			2.

				
			Bonus. Within ninety (90) days following your termination of employment date, you will be paid in a lump sum a bonus that is the sum of (i) your target bonus for the year in which your employment terminates, plus (ii) a prorated share of your target bonus for the year in which your employment was involuntarily terminated based on the number of full months in the final calendar year in which you were employed. (For example, with respect to Section D.2. (b), if your employment ends on August 10 of that year, you would be entitled to 7/12 of your target bonus for that year.) The bonus payment will be less taxes and other required withholding. In the event the 90-day period begins in one calendar year and ends in a second calendar year, payment will always be made in the second calendar year.

			

 

 

	SEVERANCE AGREEMENT OF [NEO NAME]	PAGE 4

 

 

 

	 	
			3.

				
			COBRA. Provided you are enrolled in the Company’s group health plan, following your separation, you, and any enrolled dependents, will have the option to continue your health insurance coverage in accordance with COBRA. If you elect COBRA, the monthly COBRA premiums for you and your enrolled dependents during the length of the severance payment period shall equal the amount you would have paid each month for such group health plan coverage had you remained actively employed, which premiums will be paid by you directly to our COBRA service provider. After that time, you will be responsible for the full cost of the premiums plus a two percent administration fee. Notwithstanding the foregoing, in the event you become reemployed with another employer and are eligible to receive group health plan coverage from such employer, the Company’s obligations under this Section shall cease as of the date you are eligible for health benefits through your new employer. You must promptly notify the Company of any such new employment.

			

 

	 	
			4.

				
			Career Assistance Services. You will be eligible to participate in a 6-month executive career transition service offered by the Company’s service provider, provided you initiate use of their services within 3 months of your termination

			

 

	 	
			5.

				
			Restricted Stock Units and Options. In the event of a Change of Control, the vesting, exercise and payment of any equity awards previously granted to you will be in accordance with and as provided in the provisions of the Incentive Plan and the applicable award agreement.

			

 

	
			E.

				
			Compliance with Applicable Laws/Clawback

			

     

	 	
			1.

				
			Taxes and other applicable withholdings will be withheld from payments and benefits under this Agreement to the extent the Company determines they are allowed or required by law. You are solely responsible for the payment of any tax liability, including any taxes and penalties arising under Section 409A of the Code that may result from any payments or benefits that you receive pursuant to this Agreement. The Company shall not have any obligation to pay, mitigate, or protect you from any such tax liabilities. 

			

 

	 	
			2.

				
			The provisions of this Agreement are intended to comply with, or be exempt from, Code Section 409A, and the Company shall have complete and sole discretion to interpret and construe this Agreement and any associated documents in any manner that complies with, or complies with an exemption from (or otherwise conforms them to), the requirements of Code Section 409A including, without limitation, imposing any 6-month delay that may be required for severance payments and benefits under this Agreement to you if (i) such constitute nonqualified deferred compensation subject to Code Section 409A, and (ii) you are classified as a “specified employee” under Code Section 409A. The Company reserves the right (including the right to delegate such right) to unilaterally amend this Agreement without the consent of you or anyone else in order to maintain an exemption from (or conformity with) Code Section 409A. Your participation in this Agreement constitutes acknowledgement and consent to such rights of the Company. A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Code Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A, and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” The determination of whether and when a separation from service has occurred for purposes of this Agreement shall be made in accordance with the presumptions set forth in Section 1.409A-1(h) of the Treasury Regulations.

			

 

 

	SEVERANCE AGREEMENT OF [NEO NAME]	PAGE 5

 

 

 

	 	
			3.

				
			Each payment of your severance or other benefits pursuant to this Agreement shall be deemed to be a separate payment for purposes of applying the provisions of Code Section 409A. In addition, if you are a specified employee (within the meaning of Code Section 409A and the Company’s Specified Employee Identification Policy) on the date of your Separation from Service, notwithstanding any other provision of this Agreement to the contrary, in the event that any severance benefit payment is not exempt from Code Section 409A (including which when aggregated with all other severance benefit payments previously made to you, would exceed the amount permitted to be paid pursuant to Treas. Reg. §1.409A-1(b)(9)(iii)(A)), such payment shall not be made prior to the date that is the earliest of (i) 6 months after the date of your separation from service ; (ii) your death; or (iii) such other date that will cause such payment to you not to be subject to any additional tax imposed pursuant to the provisions of Section 409A.

			

 

	 	
			4.

				
			Notwithstanding anything in this Agreement to the contrary, in the unlikely event the Company determines that any payment, distribution, or other action to or for your benefit (whether paid, payable, accelerated, distributed, or distributable pursuant to the terms of the Incentive Plan or otherwise) could reasonably be expected to cause any loss of deductions under Section 280G of the Code, then the Company shall have the authority to reduce any or all such payments, distributions, or other actions to the extent reasonably necessary to avoid the imposition of such excise tax. The order of any such reductions shall begin with benefits that are exempt from Code Section 409A, and shall only reduce other benefits to the extent necessary hereunder. Any tax determinations required under this Section shall be made in writing by the Company’s independent accountants, whose determinations shall be conclusive and binding for all purposes on the Company and you.

			

 

	 	
			5.

				
			With respect to events or matters occurring after the date of this Agreement and notwithstanding other provisions to the contrary, if a Clawback Event occurs, then, within no longer than three years after the latest to occur of the event or the harm to the Company (as determined in the discretion of the Compensation Committee of the Board) (except for those matters that are the product of fraud, which shall be limited only by statute of limitation periods), the Compensation Committee may determine and recommend to the Board of Directors (acting in its sole discretion, but in good faith) that the Company recover (including, without limitation, through forfeiture) all or a portion of any incentive compensation (including short-term incentive awards or bonuses and long-term (equity) incentive awards) that was granted after the date of this Agreement based wholly or in part on a financial reporting, stock price or similar shareholder return measure (excluding, for the avoidance of doubt, base salary, severance payments and equity awards that were not granted after the date of this Agreement based wholly or in part on a financial reporting, stock price or similar shareholder return measure, such as equity awards that vest based on the passage of time) under an incentive compensation plan or other incentive compensation arrangement with respect to any fiscal year(s) of the Company that were negatively affected by such events or matters.

			

 

 

	SEVERANCE AGREEMENT OF [NEO NAME]	PAGE 6

 

 

 

	 	 	Following and based upon the recommendation of the Compensation Committee, the independent members of the Board of Directors shall review the recommendation and determine whether to direct the Company to assess a recovery from you and the amount of recovery to be assessed as an Excess Incentive Award (as defined herein). In no event shall the amount to be recovered from you by the Company in such situations be less than the amount required to be repaid or recovered as a matter of law (including but not limited to amounts that are required to be recovered or forfeited under Section 304 of the Sarbanes-Oxley Act of 2002 or Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as applicable). For the avoidance of doubt, in the event the Clawback Event occurs prior to the third anniversary of this Agreement, the recovery provided for herein shall be limited to Excess Incentive Awards that were granted after the date of this Agreement. To the extent the immediately preceding sentence limits the recovery provided for herein, the Company may, in the discretion of the independent directors, apply agreements, arrangements or policies in effect prior to the date of this Agreement, but in all cases subject to the terms of the applicable agreements, arrangements and policies and applicable law, and in no event on a basis that would generate an aggregate recovery in excess of that provided for herein if the application of this Agreement was not limited as provided in the immediately preceding sentence.
	 	 	 
	 	 	The Board, acting through the independent directors, shall determine whether the Company will recover from you such amounts by: (i) seeking repayment, (ii) forfeiting or reducing (subject to applicable law and the terms and conditions of the applicable plan, program or arrangement) the amount that would otherwise be payable to you under any compensatory plan, program, or arrangement maintained by the Company, (iii) withholding payment of future increases in your compensation (including the payment of any discretionary bonus amount) or grants of compensatory awards that would otherwise have been made in accordance with the Company’s otherwise applicable compensation practices, or (iv) any combination of the foregoing. If so determined by the Board, you shall be required to repay the Excess Incentive Award to the Company.
	 	 	 
	 	 	This entire section (E5) will no longer apply following a Change of Control.
	 	 	 
	 	
			6.

				
			To the extent required by Code Section 409A, each reimbursement or in-kind benefit provided under this Agreement will be provided in accordance with the following: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (ii) any reimbursement of an eligible expense shall be paid to you on or before the last day of the calendar year following the calendar year in which the expense was incurred; and (iii) any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.

			

 

 

	SEVERANCE AGREEMENT OF [NEO NAME]	PAGE 7

 

 

 

	
			F.

				
			Miscellaneous Provisions

			

     

	 	
			1.

				
			In the event of your death following one of the payout events above, and provided all conditions of this Agreement have been met, any unpaid severance benefits shall be paid to the representative of your estate.

			

 

	 	
			2.

				
			This Agreement may only be modified by a written document signed by both parties.

			

 

	 	
			3.

				
			This Agreement shall not modify your employment at-will status nor interfere with or restrict the right of the Company or you to discontinue the employment relationship at any time, without or without cause or notice.

			

 

	 	
			4.

				
			This Agreement shall be governed by and subject to the laws and exclusive jurisdiction of the courts of the Commonwealth of Virginia.

			

 

If you desire to accept these severance benefits offered in this Agreement, please sign and date where indicated below. As to the matters expressly dealt with herein, once executed by you, this Agreement will supersede the Company's general severance policies as in effect from time to time as otherwise applicable to you, as well as any other prior severance agreements or plans entered into between you and the Company.

 

Very truly yours,

 

ICF INTERNATIONAL, INC.

 

 

By:                                                                                       

John Wasson, Chief Executive Officer

 

 

ACCEPTED AND AGREED:

 

By:                                                                                       

	[NEO Name]	Date
	 	 
	 	                                                             
	 	 

 

	SEVERANCE AGREEMENT OF [NEO NAME]	PAGE 8

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