Document:

EX-10.1

 Exhibit 10.1 
 

 
 June 7, 2012 
 James C. Morgan 
 (Home address redacted) 
 Dear James: 
 On behalf of ICF International, Inc. (ICF), I am pleased to extend to you an offer
of employment with ICF in our Fairfax, Virginia office reporting directly to Sudhakar Kesavan, Chief Executive Officer of ICF. Upon acceptance of this offer, it is expected that you will be appointed by the Board of Directors to the position of
Executive Vice President, Chief Financial Officer (EVP, CFO) of ICF effective July 16, 2012 which will also be your first day of employment with the company. Sudhakar and the senior staff are eager to work with you. We believe this offer
provides you and ICF with a unique opportunity to spur the growth of the company. 
 Your compensation will consist of an annual base salary,
participation in ICF’s long term equity and annual cash incentive programs, and participation in various ICF welfare and pension benefit plans and programs. In addition, during your initial year of employment, you will receive a
“sign-on” cash payment and an equity grant. Such compensation components are described below. 
 Annual Base Salary: Your base
salary will be paid at a bi-weekly rate of $17,307.69, which equates to an annual base salary of $450,000. You will be eligible to be considered for salary increases available to senior staff in March 2013. 

Sign-On Cash: You will be given a $100,000 sign-on cash award to be paid no later than July 31, 2012. If you leave ICF for any reason (other
than death or disability) prior to July 16, 2014, you will be obligated to reimburse ICF $100,000 (without reduction for any taxes withheld) within three (3) business days after your termination of employment. 

Sign-On Equity Grant: You will be granted restricted stock units (“RSUs”) with a value of $125,000 and stock options with a value of
$125,000 under ICF’s 2010 Omnibus Plan on the third business day following the public disclosure of ICF’s financial results for the second quarter of 2012; provided that such third business day occurs on or after your employment
commencement date (July 16, 2012) and provided further that if such third business day does not so occur, such RSUs will be granted to you on the third Monday that is a business day and that follows the public disclosure of ICF’s financial
results for the second quarter of 2012. The RSUs will vest during your ICF employment during the 4-year period from the applicable grant date, with 25% vesting occurring each year on the anniversary date of the applicable date of grant. The stock
options will vest during your ICF employment during the 3-year period from the applicable grant date, with 33% vesting occurring on the first and second anniversary date of grant and 34% vesting on the third anniversary date of the grant.

  

 Annual Cash Bonus Opportunity: You are eligible to participate in ICF’s annual incentive
program. Your targeted bonus for “On Plan” goal achievement is 60% of your base salary with bonus distribution generally occurring in March of the following year. In 2012, your targeted bonus of $270,000 will be guaranteed provided you are
performing at an acceptable level and are employed in a benefits-eligible position at the time the bonus is distributed in no later than March 15, 2013. Shortly after your employment commencement date, the Compensation Committee of the Board of
Directors (Compensation Committee) will provide you with your targeted performance goals for 2012. Eligibility for a bonus distribution beyond 2013 will be based on ICF’s and your performance against established goals and paid out provided you
are performing at an acceptable level and are employed in a benefits-eligible position at the time the bonus is distributed. 
 2013 Targeted
Annual Equity Opportunity: You will be eligible to participate in ICF’s incentive compensation plan in 2013. In 2013, you will be eligible to receive an equity grant covering stock with a value equal to 60% of your 2013 base salary. Each
year in March/April, the Compensation Committee determines awards for all participants. Grants under the 2010 Omnibus Plan have been composed of a combination of options and RSUs. The vesting period for each type of award is also determined by the
Compensation Committee and typically is a 3 to 4 year progressive vesting schedule. For 2013, awards are expected to be composed of 50% options and 50% RSUs. The options are expected to have a 3-year vesting schedule (33-1/3% each year) and the RSUs
are expected to have a 4-year vesting schedule (25% each year). 
 Benefits: You will be eligible to participate in the standard
executive pension and welfare benefit plans sponsored by ICF, including health insurance, dental insurance, disability insurance, life insurance, sick leave, a non-qualified deferred compensation plan and a tax-qualified retirement plan with a
401(k) feature. 
 Officers’ Leave: You will participate in the Officers’ Discretionary Leave Program. This program enables you
to use your own discretion as to the amount of paid time off you take from work. You are eligible to take paid time off immediately upon hire. Use of discretionary leave is guided by client needs, project demands, and the overall effect of your
absence on the business. Typically, officers take four weeks of leave during a calendar year. 
 Severance/Benefit Protection Provisions:
Please see the attached agreement which contains the provisions for severance in case of no-cause termination and involuntary termination prior to or during the 12-month period following a change of control, and which is hereby incorporated into and
made a part of the terms of this letter agreement. 
 Contingencies: Our offer is contingent upon review of any non-compete,
non-solicitation, confidentiality or similar agreements under which you are obligated and your submission of the ICF application for employment. Your employment is also contingent upon the favorable outcome of a pre-employment check of your
references and a background check, based upon ICF’s established standards, and your return of the attached documents: (1) Treatment of Documents from Prior Employment, (2) Code of Ethics Acknowledgement Form, and
(3) Confidentiality, Intellectual Property, Non-competition Agreement and Non-solicitation Agreement. The background check will be conducted on our behalf by HireRight, an 

 
independent background screening company. After accepting this offer, you will receive an email from HireRight with instructions on how to complete your background check application. Please
complete the online application immediately upon receipt of the email. Results are generally delivered within 3-4 business days, and you will be informed of your employment status at that time. 

In accordance with the Immigration Reform and Control Act of 1986, you must submit proof of your identity and eligibility to work in the United States
and complete the Employment Eligibility Verification (I-9) Form. 
 On July 16, please plan to be at 9300 Lee Highway, Fairfax, VA by 9:30
AM and check in with the receptionist. Your photo will be taken and you will be issued your ICF identification badge at that time. We will also complete the Employment Eligibility Verification (I-9) process at that time. I will plan to meet you at
the receptionist desk shortly thereafter. ICF’s formal orientation process is conducted on-line and I will provide you with instructions on how to complete this process. If driving, please park in the area designated for visitors on the lower
level of the garage. 
 Please return the documents, along with your signed acceptance of this offer, to me via email at
candice.mendenhall@icfi.com. Please note that we will also need the original signed documents; however, you may bring them with you on your first day of employment. We must receive your written acceptance and the signed agreements by June 12,
2012 or the offer will no longer be valid. 
 We are enthusiastic about the prospect of having you join the ICF team and believe ICF will offer
you challenges that will be professionally rewarding. 
 Sincerely, 

 
 /s/ Candice D. Mendenhall 
 Candice D. Mendenhall 
 Senior Vice President, Human Resources 

Attachments 
 Please note that this
letter supersedes all prior written or oral offers, agreements, and understandings between you and ICF. Your employment with ICF will be at-will, meaning, either you or ICF may terminate the employment relationship at any time for any reason. Salary
and benefits are subject to change and do not continue after termination of employment, except as provided specifically (i) in this Agreement or the attached Severance Benefit/Protection Agreement, or (ii) in certain benefit plans
at your expense.  
  

									
					
	Accepted: 	 	/s/ James C. Morgan	 		 	Date: 	 	June 8, 2012
		 	James C. MorganEX-10.2

 Exhibit 10.2 
 

 
 June 8, 2012 
  

Mr. James C. Morgan 
 (Home address
redacted) 
  

	Re:	Severance Benefit/Protection Agreement 

 Dear
James: 
 In consideration of your agreement to assume the duties and responsibilities of the Chief Financial Officer of ICF International, Inc.
and its affiliates (collectively, the “Company”) effective July 16, 2012, the Company hereby offers you the severance protection set forth below in this letter agreement (the “Agreement”). The Company intends that the terms
of this Agreement shall comply with the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), as well as the regulations and guidance issued thereunder (collectively, “Section 409A”) and shall
be construed consistently with such intent. This Agreement will remain in effect through June 30, 2016. On and after July 1, 2016, and each anniversary of such date thereafter, the term of this Agreement shall automatically be extended for
one additional year unless, not later than October 1 of the prior year, the Company or you shall have given notice not to extend the term of this Agreement. 
  

	A.	Involuntary Termination of Employment Prior to a Change in Control 

 In the event that the Company involuntarily terminates your employment for any reason other than Cause (as defined in Section 2.8 of the Company’s 2010 Omnibus Incentive Plan) and such
termination constitutes a Separation from Service for purposes of Section 409A , you will be entitled to receive the following benefits in exchange for your agreement to abide by the conditions described herein. For the avoidance of doubt,
involuntary termination by the Company does not include termination of employment due to death, disability, or retirement. You will continue to receive your compensation and benefits through the effective date of termination. Your severance
provisions are effective post termination date and are described below: 
  

	1.	 You will receive 9 months of severance calculated based on (i) your current base salary and (ii) the annual bonus payment you received in the
prior 12 months. (Note: Should termination occur prior to the payment of your guaranteed bonus of $270,000 in March 2013, your severance will be calculated only upon your base salary of $450,000). Severance is paid in bi-weekly equal installments in
accordance with the Company’s scheduled pay dates. Your right to receive severance is expressly conditioned upon, and the Company will be obligated to provide you with such severance only upon our receipt of, an executed Separation Agreement
and Release of Claims (the “Release”) outlined in 

  

	 	
Section 5 below. Such Release must be executed by you and returned within twenty-one (21) days after your Separation from Service, and payments to you of severance shall commence within
forty-five (45) days after your Separation from Service; provided that if such forty-five (45) day period begins in one calendar year and ends in another calendar year, payment of such severance shall not commence until the second calendar
year. 

  

	2.	Each payment of your severance benefits shall be deemed to be a separate payment for purposes of applying the provisions of Section 409A. In addition, if you are a
specified employee (within the meaning of 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, 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) six months after your Separation from Service date; (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. In the event of your death, any unpaid severance benefits shall be paid to your designated beneficiary. 

 

	3.	You have the option to continue your health insurance coverage under the Federal COBRA law at the full cost of the premium plus a two percent administration fee. If you
elect COBRA, the Company will (solely to the extent such payments are nondiscriminatory and /or will not result in a penalty to the Company under Code Section 4980D), until the earlier of the 9 month anniversary of your termination date or the
date you cease to be eligible for COBRA , pay a portion of your monthly COBRA premium equal to the monthly employer portion of your Company group health plan premiums for the month preceding your involuntary termination date. After that time, you
will be responsible for the full cost of the premiums. 

  

	4.	You will be eligible to participate in a 6-month executive career transition service offered by Lee Hecht Harrison, provided you enroll with such provider for their
services within 3 months of your Separation from Service date. 

  

	5.	Your entitlement to the provisions above are subject to: (a) your entering into a Separation Agreement and Release of Claims and (b) your compliance with the
terms of other agreements between you and the Company that have post-employment conditions (agreements include. but are not limited to, the Company’s Confidentiality, Intellectual Property, Non-Competition and Non-Solicitation Agreement).

  

	B.	Change of Control: 

 In the event
the Company is acquired and such acquisition constitutes a Change of Control as such term is defined in the 2010 Omnibus Incentive Plan and if, within the first 12 months of ownership by the new entity, there is, without your written consent,
(i) a material reduction of the nature and scope of the authorities, powers, functions or duties 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; or (iii) the Company relocates your primary office and work location 50 miles or more away from your primary office and work location immediately prior to the Change
of Control, 

 
then, upon termination by you during such 12-month period for any of the foregoing (i)-(iii) reasons, you will be entitled to receive the severance provisions and equity vesting rights
described in this Agreement in exchange for your agreement to abide by the conditions described herein. You will continue to receive your compensation and benefits through the effective date of termination. Your severance provisions are effective
post termination date (the “Separation from Service date”) and are described below: 
  

	1.	You will be paid in a lump sum basis a prorated share of our current year’s bonus target. Such bonus will be paid to you in a lump sum within 90 days after your
Separation from Service date; provided that you have executed and returned the separation agreement and the release of claims and the statutory period has expired during which you are entitled to revoke the release of claims before such 90th day;
and, provided further, that if 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. 

 

	2.	You will receive 12 months of severance calculated based on your current base salary, plus the annual bonus/incentive payment you received in the prior 12 months.
Severance is paid in bi-weekly equal installments in accordance with the Company’s scheduled pay dates, commencing with the Company’s first scheduled pay date that occurs at least ten (10) days after your Separation from Service date.

  

	3.	Each payment of your severance benefits shall be deemed to be a separate payment for purposes of applying the provisions of Section 409A. In addition, if you are a
specified employee (within the meaning of 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, 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) six months after your Separation from Service date; (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. In the event of your death, any unpaid severance benefits shall be paid to your designated beneficiary. 

 

	4.	You have the option to continue your health insurance coverage under the Federal COBRA law at the full cost of the premium plus a two percent administration fee. If you
elect COBRA, the Company will (solely to the extent such payments are nondiscriminatory and/or will not result in a penalty to the Company under Code Section 4980D), until the earlier of the 12-month anniversary of your termination date or the
date you cease to be eligible for COBRA, pay a portion of your monthly COBRA premium equal to the monthly employer portion of your Company group health plan premiums for the month preceding your involuntary termination date. After that time, you
will be responsible for the full cost of the premiums. 

  

	5.	You will be eligible to participate in a 6-month executive career transition service offered by Lee Hecht Harrison, provided you enroll with such provider for their
services within 3 months of your Separation from Service date. 

	6.	In the event of a Change of Control, the period of restriction imposed on the RSUs (Restricted Stock Units) and NQSOs (Non-Qualified Stock Options) shall immediately
lapse and the awards will vest, notwithstanding any provisions to the contrary in Article 17 of the 2010 Omnibus Incentive Plan (the “Plan”). Payout of all vested RSUs shall be made in a lump sum in cash based on their Fair
Market Value (as such term is defined in the Plan) and shall occur at the time of the Change of Control or as soon as administratively feasible following the Change of Control but in no event later than three (3) days after the effective date
of the Change of Control. Vested NQSOs will either be (1) cancelled and replaced with a Replacement Award (as such term is defined in the Plan) or (2) cancelled in exchange for a lump sum cash payment based on the Fair Market
Value of the option, which payment shall occur at the time of the Change of Control or as soon as administratively feasible following the Change of Control but in no event later than three (3) days after the effective date of the
Change of Control. Determination of whether an NQSO will be replaced with a Replacement Award or cancelled in exchange for a cash payment will be made by the ICF Compensation Committee at such time. (Note: Please review the attached
agreements for a full understanding of the rules surrounding your RSUs and NQSOs.) 

 Excise Tax Adjustments.

  

	1.	In the event you become entitled to severance benefits under this Section B and the Company determines that the benefits provided in this Section B (with the severance
benefits, the “Total Payments”) will be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any similar tax that may hereafter be imposed,
the Company shall compute the “Net After-Tax Amount,” and the “Reduced Amount,” and shall adjust the Total Payments as described below. The Net After-Tax Amount shall mean the present value of all amounts payable to you
hereunder, net of all federal income, excise and employment taxes imposed on you by reason of such payments. The Reduced Amount shall mean the largest aggregate amount of the Total Payments that, if paid to you, would result in you receiving a Net
After-Tax Amount that is equal to or greater than the Net After-Tax Amount that you would have received if the Total Payments had been made. If the Company determines that there is a Reduced Amount, the Total Payments will be reduced to the Reduced
Amount. Such reduction shall be made by the Company with respect to benefits in the order and in the amounts suggested by the Tax Counsel (as defined below) taking into account the costs or administrative burdens of the Company. As a rule, reduction
shall occur in the following order: (i) reduction of cash payments; (ii) cancellation of accelerated vesting of stock awards; and (iii) reduction of employee benefits. If acceleration of vesting of stock award compensation is to be
reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of your stock awards. 

  

	2.	For purposes of determining whether the Total Payments will be subject to the Excise Tax and the amounts of such Excise Tax and for purposes of determining the Reduced
Amount and the Net After-Tax Amount: 

  

	 	a)	 Any other payments or benefits received or to be received by you in connection with a Change in Control or your Separation of Service (whether pursuant
to the terms of this Agreement or any other plan, arrangement, or agreement with the Company, or with any persons whose actions result in a Change in Control or any person affiliated with the Company or such persons) shall be treated as
“parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1) of the Code shall be treated as

	 	
subject to the Excise Tax, unless, in the opinion of a tax advisor selected by the Company and reasonably acceptable to you (“Tax Counsel”), such other payments or benefits (in whole or
in part) should be treated by the courts as representing reasonable compensation for services actually rendered (within the meaning of Section 280G(b)(4)(B) of the Code), or otherwise not subject to the Excise Tax. 

 

	 	b)	The amount of the Total Payments that shall be treated as subject to the Excise Tax shall be equal to the lesser of (A) the total amount of the Total Payments or
(B) the amount of excess parachute payments within the meaning of Section 280G(b)(1) of the Code (after applying subparagraph (i) above). 

  

	 	c)	In the event that you dispute any calculation or determination made by the Company, the matter shall be determined by Tax Counsel. All fees and expenses of Tax Counsel
shall be borne solely by the Company; provided that, as required by Section 409A, the Company shall bear such costs, to the extent necessary, during a period of time no longer than ten years following a Change in Control.

  

	 	d)	You shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Total Payments or Reduced
Amount is to be made, and state and local income taxes at the highest marginal rate of taxation in the state and locality of your residence on the effective date of employment, net of the maximum reduction in federal income taxes which could be
obtained from deduction of such state and local taxes, taking into account the reduction in itemized deduction under Section 68 of the Code. 

 Compliance with Section 409A 
 Except as permitted under Section 409A, no
acceleration of the time or form of payment of deferred compensation under this Agreement shall be permitted. Notwithstanding any other provision in this Agreement to the contrary, if and to the extent that Section 409A is deemed to apply to
the Agreement, it is the intention of the parties that the Agreement shall comply with Section 409A, and the Agreement, to the extent practicable, shall be construed in accordance therewith. To the extent any payments or benefits hereunder are
subject to the provisions of Section 409A, then in compliance with Section 409A and notwithstanding any other provision hereof or of the Company’s plans, contracts, or other arrangements in effect from time to time (i) the amount
of expenses eligible for reimbursement and the provision of in-kind benefits during any calendar year shall not affect the amount of expenses eligible for reimbursement or the provision of in-kind benefits in any other calendar year; (ii) the
reimbursement of an eligible expense shall be made on or before December 31 of the calendar year following the calendar year in which such expense was incurred; (iii) the right to reimbursement or the right to in-kind benefits shall not be
subject to liquidation or exchange for another benefit; and (iv) to the extent that any expense reimbursements and/or benefits under this Agreement constitute “nonqualified deferred compensation” subject to Section 409A and you
are a “specified employee” within the meaning of Section 409A (as defined above), you shall pay the total costs of such expenses and benefits for the 6-month period following the date of your Separation from Service, and the Company
shall reimburse you for such costs in a lump sum in the Company’s first payroll after the expiration of such 6-month period. Without in any way limiting the effect of the foregoing, in the event that the provisions of Section 409A require
any special terms, provisions or conditions be included in the Agreement, then such terms, provisions, and conditions, to the extent practicable, shall be deemed to be made a part of the Agreement. Notwithstanding the foregoing, the parties agree
that the Company, any Affiliate, the Board of Directors of the Company or their designees or agents shall not be liable for any taxes, penalties, interest or other monetary amount that may be owed by you as a result of any deferral of payments under
the Agreement or as a result of the administration of amounts subject to the Agreement. 

 Covenants 
 In order to be eligible to receive any severance benefits under this Agreement, during the 12-month period following any Separation from Service, you hereby covenant and agree: 

 

	1.	Your compliance with the terms of other agreements between you and the Company that have post-employment conditions (agreements include. but are not limited to, the
Company’s Confidentiality, Intellectual Property, Non-Competition and Non-Solicitation Agreement); 

  

	2.	that you will acquire and have knowledge of confidential and proprietary information concerning the current salary, benefits, skills, and capabilities of Company
employees and that it would be improper for you to use such Company proprietary information in any manner adverse to the Company’s interests; 

  

	3.	you will not recruit or solicit for employment, directly or indirectly, any employee of the Company during such 12-month period; 

 

	4.	except for the benefit of the Company, in any way, directly or indirectly, through affiliates, subsidiaries, employees or agents or otherwise, not to manage, direct,
operate, control, to be employed by, associated with, or engage in, or participate in any of the foregoing or otherwise advise or assist in any way or be connected with or directly or indirectly own as partner, proprietor, advisor or
consultant to any enterprise, entity or business which competes with the Company’s business; or hold more than 3% ownership, interest in or right with respect to any enterprise, entity or business which competes with the Company’s
business; and 

  

	5.	that the non-compete provisions of this Agreement are reasonable in scope and duration and that you possesses sufficient skills such that you could be gainfully
employed post termination from the Company without violating such provisions. If, in any judicial proceeding, a court refuses to enforce any of the covenants set forth in this letter (or any part thereof), then such unenforceable covenant (or such
part) shall be eliminated from this letter to the extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced. In the event that the provisions of this Agreement are deemed to exceed the time, geographic or scope
limitations permitted by applicable law, then such provisions shall be reformed to the maximum time, geographic or scope limitations, as the case may be, permitted by applicable laws. 

Your entitlement to the benefits set forth in this Agreement is also subject to your execution of a Release as outlined in Section A.5 above. If you
desire to accept the provisions set forth herein, please sign and date where indicated below, whereupon this letter will become an agreement between you and the Company. As to the matters expressly dealt with herein, when accepted by you this letter
agreement will supersede the Company’s general severance policies as in effect from time to time as otherwise applicable to you. 

			
	Very truly yours,
	
	ICF INTERNATIONAL, INC.
		
	By:	 	/s/ Candice D. Mendenhall
		 	Candice D. Mendenhall
	Title: 	 	SVP, Human Resources
	
	ACCEPTED AND AGREED:
		
	By:	 	/s/ James C. Morgan
		 	James C. Morgan
		
	Date: 	 	June 8, 2012

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