Document:

exhibit10_4.htm

    EXHIBIT
      10.4

     

     

    SEVERANCE
      AGREEMENT AND RELEASE OF CLAIMS

     

    Colleen
      M. Davenport

     

    I.           
      Definitions.  I
      intend all words used in this Severance Agreement and Release of Claims
      (“Agreement”) to have their plain meanings in ordinary
      English.  Specific terms that I use in this Agreement have the
      following meanings:

     

    
      	
               

            	
              A.

            	
              I,
me,
                and my
                include both
                me (Colleen Davenport) and anyone who has or obtains any legal rights
                or
                claims through me. 

            

    

     

    
      	
               

            	
              B.

            	
              Analysts
                International means Analysts International Corporation and any
                related or affiliated business entities in the present or past, including
                without limitation, its or their predecessors, successors, parents,
                subsidiaries, affiliates, joint venture partners, and divisions.
                

            

    

     

    
      	
               

            	
              C.

            	
              Company
                means
                Analysts International; the present and past Board of Directors,
                shareholders, officers and employees of Analysts International; Analysts
                International’s insurers; and anyone who acted on behalf of Analysts
                International or on instructions from Analysts International.
                

            

    

     

    
      	
               

            	
              D.

            	
              My
                Claims means
                any and all claims, actions, rights, causes of action and demands,
                known
                or unknown, arising at law, in equity, or otherwise, from the beginning
                of
                time and continuing through and up to the date on which I sign this
                Agreement, which I have or may have against the Company, including
                without
                limitation: 

            

    

     

    
      	
               

            	
              1.

            	
              all
                claims arising out of or relating to my employment with Analysts
                International or the termination of that employment;
                

            

    

     

    
      	
               

            	
              2.

            	
              all
                claims arising out of or relating to the statements, actions or omissions
                of the Company; 

            

    

     

    
      	
               

            	
              3.

            	
              all
                claims for any alleged unlawful discrimination, harassment, retaliation
                or
                reprisal, or other alleged unlawful practices arising under any federal,
                state, or local statute, ordinance, or regulation, including without
                limitation claims under Title VII of the Civil Rights Act of 1964,
                the Age
                Discrimination in Employment Act, as amended by the Older Workers
                Benefit
                Protection Act of 1990, the Americans with Disabilities Act, 42 U.S.C.
§
                1981, the Employee Retirement Income Security Act (except for any
                vested
                claim for benefits under a qualified retirement plan that may be
                brought
                pursuant to 502(a)(1)(B) of ERISA), the Worker Adjustment and Retraining
                Notification Act, the Equal Pay Act, the Minnesota Human Rights Act,
                and
                any applicable local human rights ordinance;

            

    

     

    
      	
               

            	
              4.

            	
              all
                claims for alleged wrongful discharge; breach of contract; breach
                of
                implied contract; failure to keep any promise; breach of a covenant
                of
                good faith and fair dealing; breach of fiduciary duty; estoppel;
                my
                activities, if any, as a “whistleblower”; defamation; infliction of
                emotional distress; fraud; misrepresentation; negligence; harassment;
                retaliation or reprisal; constructive discharge; assault; battery;
                false
                imprisonment; invasion of privacy; interference with contractual
                or
                business relationships; any other wrongful employment practices;
                and
                violation of any other principle of common law;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              5.

            	
              all
                claims for compensation of any kind, including without limitation,
                salary,
                wages, bonuses, commissions, stock-based compensation, vacation pay,
                paid
                time off, fringe benefits and expense reimbursements;
                

            

    

     

    
      	
               

            	
              6.

            	
              all
                claims for reinstatement or other equitable relief; back pay, front
                pay,
                compensatory damages, damages for alleged personal injury, liquidated
                damages and punitive damages; and 

            

    

     

    
      	
               

            	
              7.

            	
              all
                claims for attorneys’ fees, costs and interest.

            

    

     

    However,
      My Claims does
      not include any claims that the law does not allow to be waived or any claims
      that may arise after the date on which I sign this Agreement.

     

    II.   Termination
      of Employment
      and Agreement to Release My Claims.

     

    A.           
      My employment with Analysts International will terminate as of the close of
      business on January 31, 2008. Provided I perform all of my obligations under
      this Agreement and do not revoke this Agreement within the fifteen-day
      revocation period below, I will receive “Special Consideration” from Analysts
      International in the form of:

     

    
      	
              i.  

            	
              a
                single lump sum severance payment equal to one year’s salary (at my
                current rate of pay and subject to normal
                withholdings);

            

    

     

    
      	
              ii.  

            	
              a
                bonus of $25,000, equivalent to the fourth quarter management incentive
                bonus opportunity, which the Company will pay whether or not I actually
                qualify for such bonus;

            

    

     

    
      	
              iii.  

            	
              a
                $20,000 stay bonus if, in the reasonable judgment of the Company’s CEO, I
                satisfactorily perform the transition of my duties through January
                31,
                2008;

            

    

     

    
      	
              iv.  

            	
              an
                additional payment in the amount of $27,000.00, provided I arrange
                the
                safe return to the Company, on or before January 31, 2008 and at
                the
                Company’s expense, of the leased vehicle the Company has provided for me,
                in good and resalable condition, excepting only normal wear and
                tear;

            

    

     

    
      	
              v.  

            	
              payment
                of 100% of the monthly premiums for health, dental and life insurance
                coverage through January 31, 2009 or until I become eligible for
                comparable health, dental, and life insurance through another employer,
                whichever occurs sooner; and

            

    

     

    
      	
              vi.  

            	
              twelve
                months of outplacement services (which may begin any time after execution
                and delivery of this agreement and expiration of the revocation period
                set
                forth herein).

            

    

     

    B.           
      My Special Consideration is contingent upon me signing and not revoking this
      Agreement as provided below. I understand and acknowledge that the Special
      Consideration is in addition to anything of value that I would be entitled
      to
      receive from Analysts International if I did not sign this Agreement or if
      I
      revoked this Agreement.

     

    C.           
      In exchange for the Special Consideration, I give up, settle
      and
      release all of My Claims and I agree to abide by this Agreement in all
      respects.  I understand and agree that through this release I
      am extinguishing all of My Claims occurring up to the date on which I sign
      this
      Agreement.  The Special Consideration that I am receiving is a fair
      compromise for my undertakings in this Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    D.           
      Notwithstanding the foregoing, I understand that nothing contained in this
      Agreement purports to limit any right I may have to file a charge with Equal
      Employment Opportunity Commission or other administrative agency or to
      participate in an investigation or proceeding conducted by the Equal Employment
      Opportunity Commission or other investigative agency. This Agreement does,
      however, waive and release any right to recover monetary damages resulting
      from
      such investigation or litigation.

     

    III.           
      No
      Admission of Liability.  Even though
      Analysts International will provide Special Consideration for me to settle
      and
      release My Claims and to otherwise abide by this Agreement, the Company does
      not
      admit that it is responsible or legally obligated to me.  In fact, the
      Company denies that it is responsible or legally obligated to me for My Claims,
      denies that it engaged in any unlawful or improper conduct toward me, and denies
      that it treated me unfairly or acted wrongfully.

     

    IV.           
      Acknowledgement
      of Risk of Change in Facts or Law.  I acknowledge that the
      facts and the law material to this Agreement may turn out to be different from
      or contrary to my present belief, and I assume the risk that such differences
      may arise.  I acknowledge and represent that I have not relied on any
      representations of the Company or the Company’s counsel in entering into this
      Agreement.  Once the fifteen day revocation period below has expired,
      I intend that the release granted herein shall be final, complete, irrevocable
      and binding in all events and circumstances whatsoever.

     

    V.           
      Advice
      to
      Consult with an Attorney.  I understand
      and
      acknowledge that I am hereby being advised by the Company to consult with an
      attorney prior to signing this Agreement. My decision whether to sign this
      Agreement is my own voluntary decision made with full knowledge that the Company
      has advised me to consult with an attorney.

     

    VI.           
      Period
      to
      Consider this Agreement.  I understand that I have 45 days from
      the day that I receive this Agreement (not counting the day upon which I receive
      it), or through

     

    February
      18, 2008, or whichever is later, to consider whether I wish to sign this
      Agreement.  I understand Analysts International will accept this
      Agreement and pay to me the Special Consideration described above if I sign
      and
      return this Agreement and if I do not revoke this Agreement as provided
      below.  I understand that if I sign this Agreement on or before
      February 18, 2008, or choose to forego the advice of legal counsel, I do so
      freely and knowingly, and I waive any and all further claims that such action
      or
      actions would affect the validity of this Agreement.  I understand
      that any changes to this Agreement, whether material or not material, do not
      restart the period of time I have to consider whether or not to sign this
      Agreement.

     

    If
      I
      elect not to execute and return this Agreement on or before February 18, 2008,
      I
      further understand that the offer contained herein shall terminate and Analysts
      International shall be under no obligation to provide the severance compensation
      and the benefits provided herein.

     

    VII.           
      My
      Right to Revoke this Agreement.  I understand
      that
      I may revoke this Agreement at any time within fifteen days after I sign it,
      not
      counting the day upon which I sign it.  This Agreement will not become
      effective or enforceable unless and until the fifteen-day revocation period
      has
      expired without my revoking it.  I understand that if I rescind or
      revoke this Agreement, all of Analysts International’s obligations to me under
      this Agreement will immediately cease and terminate, and Analysts International
      will owe me no amounts hereunder.  If I do not revoke or rescind this
      Agreement within said fifteen-day period, I understand that the Company will
      pay
      the Special Consideration to me on my termination date or when that fifteen-day
      period expires, whichever is later.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    VIII.              Procedure
      for Accepting or Revoking this Agreement. To accept the
      terms of this
      Agreement, I must deliver the Agreement, after I have signed and dated it,
      to
      Analysts International by hand or by certified mail, return receipt requested,
      on or before February 18, 2008.  To revoke my acceptance, I must
      deliver a written, signed statement that I revoke my acceptance to Analysts
      International by hand or by certified mail within the fifteen-day revocation
      period.  All certified mailings and hand deliveries must be made to
      Analysts International at the following address:

     

    Jill
      Dose

    Analysts
      International Corporation

    3601
      West 76th
      Street

    Edina,
MN 55435

     

    If
      I
      choose to deliver my acceptance or the revocation of my acceptance by mail,
      it
      must be:

     

    
      	
               

            	
              1.

            	
              postmarked
                within the period stated above; and

            

    

     

    
      	
               

            	
              2.

            	
              properly
                addressed to Jill Dose, Analysts International, at the address stated
                above. 

            

    

     

    IX.           
      Non-disparagement.  Both
      I and the
      Company agree not to make negative or disparaging remarks or comments about
      each
      other, including, in the case of the Company, about its officers, directors,
      management, employees, products or services.

     

    X.           
      Non-solicitation.  I
      will not
      solicit, either directly or indirectly, or accept, for my own account or for
      anyone else, business for services or products similar in use or application
      to
      Analysts International’s services or products of any Analysts International
      customer or prospective customer: (i) which at any time during the last 12
      months of my employment with Analysts International was a customer of the
      office, business group or unit, practice or reporting unit to which I was
      assigned; or (ii) to whom, during the last 12 months of my employment the
      Analysts International office, business group or unit, practice or reporting
      unit which I was assigned, submitted a proposal or proposals for Analysts
      International’s services or products; or (iii) with whom, during the last 12
      months of my employment, I otherwise dealt or about whom I received business
      information.  I will also refrain from participating in or giving
      information or other assistance to anyone else in soliciting such business
      from
      these Analysts International customers and prospective customers.  I
      agree that I will refrain from this form of unfair competition for a period
      of
      12 months after my employment with Analysts International.

     

    XI.           
      Non-interference,
      Cooperation.  Recognizing
      that
      Analysts International incurs significant expense in recruiting its personnel
      and has the right to expect their continued service, I will not interfere with
      Analysts International’s relationships with its employees and
      subcontractors.  Specifically, I will not participate or give
      assistance in any effort of any other business, including any business that
      I
      may own or operate to hire or engage the services of an Analysts International
      employee or subcontractor; nor will I encourage any Analysts International
      employee or subcontractor to leave the employment or service of Analysts
      International.  I agree that I will not engage in this form of unfair
      competition for a period of 12 months after my employment with Analysts
      International.  In addition, for not less than one (1) year following
      termination of my employment, I will cooperate with the Company in any matters
      involving the transition of my responsibilities or other matters involving
      the
      business of the Company.

     

    XII.           
      Confidentiality.  I
      agree that
      following the termination of my employment, I will keep confidential, and will
      not use for my benefit for the benefit of any other company or person,
      confidential Analysts International business information, including but not
      limited to the identity of Analysts International customers and prospective
      customers and their requirements for IT consulting and other services provided
      by Analysts International, salary information, contract rates in contract
      expiration dates, details of Analysts International projects, business,
      marketing and strategic plans and company or office financial
      information.  I recognize that the Company has furnished any
      information of this type to me in confidence on the understanding that I would
      not disclose any such confidential information or use it for the advantage
      of
      myself or anyone other than Analysts International.  Notwithstanding
      the foregoing, the Company agrees that I may keep work product for re-use of
      forms, etc. in future work without company identifying information, subject
      to
      the attorney-client privilege and my professional obligations as an
      attorney.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    XIII.   Return
      of
      Property.  I agree that
      I
      will not retain any copies of Company property or documents.  I agree
      that this obligation is ongoing and that if I subsequently discover any
      additional company property that I will promptly return it to Analysts
      International.  I represent that I have delivered and returned to the
      Company (a) all materials of any kind in my possession (or under my control)
      incorporating Confidential Information (as such term is defined in any
      applicable agreement between me and the Company) or otherwise relating to the
      Company’s business (including but not limited to all such materials and/or
      information stored on any computer or other storage device owned or used by
      me),
      and (b) all Company property in my possession (or under my control), including
      (but not limited to) computers, computer software applications, cellular
      telephones, pagers, credit cards, keys, records, files, manuals, books, forms,
      documents, letters, memoranda, data, tables, photographs, video tapes, audio
      tapes, computer disks and other computer storage media, all materials that
      include trade secrets, and all copies, summaries or notes of any of the
      foregoing.

     

    Notwithstanding
      the foregoing, the Company agrees that I may keep the laptop computer I
      currently use for Company business.  I will promptly and permanently
      remove all Company information on such computer.  I acknowledge and
      agree that from and after the effective date of termination of my employment
      with the Company, I will be solely responsible for any and all maintenance
      and
      support with respect to such computer, which is being furnished to me “AS IS”
and without warranty of any kind (other than the warranty of clear
      title).

     

    XIV.           No
      Other
      Promises or Representations.  I agree that
      no
      promise or representation, other than the promises and representations expressly
      contained in this Agreement and the Notice Letter from the Company dated January
      4, 2008 (the “Notice Letter”), has been made to me by the Company with regard to
      my separation from employment with the Company.  Notwithstanding the
      foregoing, the Company hereby acknowledges its continuing deferred compensation
      obligations to me as set forth in the Notice Letter and under the Company’s
      Restated Special Executive Retirement Plan as adopted December 27, 2006 and
      amended September 1, 2007.

     

    XV.             Interpretation
      of this Agreement.  This Agreement
      should be interpreted as broadly as possible to achieve my intention to resolve
      all of My Claims against the Company and to otherwise fulfill my obligations
      under this Agreement.  If any provision of this Agreement is found to
      be illegal and/or unenforceable, such provision shall be severed and modified
      to
      the extent necessary to make it enforceable; and as so severed or modified,
      the
      remainder of this Agreement shall remain in full force and effect and
      enforceable with respect to the release of all the remainder of My
      Claims.

     

    XVI.             Voluntary
      Release.  I have read
      this
      Agreement carefully.  I understand all of its terms.  In
      signing this Agreement, I have not relied on any statements or explanations
      made
      by the Company except as specifically set forth in this Agreement.  I
      am voluntarily releasing My Claims against the Company without coercion, duress
      or reliance on any representations by any Analysts International employee,
      agent
      or attorney and I am voluntarily undertaking my other obligations under this
      Agreement without coercion, duress or reliance on any representations by any
      Analysts International employee, agent or attorney.  I intend this
      Agreement to be legally binding.

     

    XVII.            Non-Disclosure
      of this Agreement.  I agree that
      the
      terms of this Agreement are confidential.  I will not, directly or
      indirectly, disclose any of the terms of this Agreement to anyone other than
      my
      immediate family or counsel, except as such disclosure may be required for
      accounting or tax reporting

     

    
      
        
          
             

          

        

        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    purposes
      or as otherwise may be required by law (for example, by subpoena or other
      compulsory legal process).

     

    XVIII.          Governing
      Law; Jurisdiction and Venue.  This Agreement is governed by and
      shall be construed in accordance with the laws of the State of Minnesota and
      any
      dispute related thereto shall be exclusively venued in the state courts of
      Minnesota located in Hennepin County, Minnesota.  In the event
      litigation results involving this Agreement, the unsuccessful party agrees
      to
      pay the prevailing party’s reasonable attorneys’ fees and costs.

     

    XIX.            Other
      Agreements.  I understand
      that
      this Severance Agreement and Release of Claims and the employee benefit plans
      of
      the Company in which I am a participant (including the Company’s Restated
      Special Executive Retirement Plan as adopted December 27, 2006 and amended
      September 1, 2007) contain all of the agreements between the Company and
      me.  These agreements supersede all other written and oral agreements
      we may have.  Any additions or changes to this Agreement must be in
      writing and signed by both parties.

     

    XX.             Survival.  I
      understand that the provisions of this Agreement that, by their nature and
      content, must survive the completion, rescission, termination or expiration
      of
      this Agreement in order to achieve the fundamental purposes of this Agreement
      (including but not limited to the provisions of paragraphs II(C), IX, X, XI,
      XII
& XIII of this Agreement) will survive the termination of my employment and
      the termination, for any reason, of this Agreement.

     

    XXI.             Release
      as Evidence.  I understand
      and
      agree that in the event that any claim, suit or action shall be commenced by
      me
      against Analysts International, including, but not limited to, claims, suits
      or
      actions relating to my employment with Analysts International through this
      date,
      this Agreement shall constitute a complete defense to any such claims, suits
      or
      actions so instituted.

    

     

    
      	
              Colleen
                M. Davenport

              
              

            	
              Analysts
                International Corporation

              
              

            
	
              _______________________________

              
              

            	
              By:
                ___________________________

              
              

            
	
              Title:
                __________________________

              
              

            
	
              Date
                signed: ____________________

              
              

            	
              Date
                signed: ____________________

              
              

            

    

    

     

    

    

    
      
        
          
             

          

        

        
        

      

      
        6exhibit10_5.htm

    EXHIBIT
      10.5

     

    

    CHANGE
      OF CONTROL AGREEMENT

     

    
      

      
        	
                Parties:

              	
                Analysts
                  International Corporation

              	
                (“Company”)

              
	 	
                3601
                  West 76th
                  Street, Suite 600

              	 
	 	
                Minneapolis,
                  MN  55435

              	 
	 	 	 
	 	 	 
	 	
                ____________________________

              	
                (“Executive”)

              
	 	 	 
	 	 	 
	 	 	 
	
                Date:

              	
                ______________________,
                  20___

              	 

      

      

    

    RECITALS:

    

    1.           
      Executive has been employed by the Company since _____________, 20___, and
      currently serves as the ___________________ of the Company, and Executive has
      extensive knowledge and experience relating to the Company’s
      business.

    

    2.           
      The parties recognize that a “Change of Control” may materially change or
      diminish Executive’s responsibilities and substantially frustrate Executive’s
      commitment to the Company.

    

    3.           
      The parties further recognize that it is in the best interests of the Company
      and its stockholders to provide certain benefits payable upon a “Change of
      Control Termination” to encourage Executive to continue in his/her position in
      the event of a Change of Control, although no such Change of Control is now
      contemplated or foreseen.

    

    4.           
      The parties further desire to provide certain benefits payable upon a
      termination of Executive’s employment following a Change of
      Control.

    

    5.           
      The parties further acknowledge and agree that this Agreement supersedes any
      and
      all prior agreements relating to benefits payable upon a termination of
      Executive’s employment following a Change of Control, including the Agreement
      dated _______________, ____, as amended on ________________,
      _______.

    

    AGREEMENTS:

    

    1.           
      Term of
      Agreement.  Except as otherwise provided herein, this Agreement
      shall commence on the date executed by the parties and shall continue in effect
      until the third anniversary of the date set forth above; provided, however,
      that
      if a Change of Control of the Company shall occur during the term of this
      Agreement, this Agreement shall continue in effect for a period of twelve (12)
      months beyond the
      date of such Change of Control.  If, prior to the earlier of the third
      anniversary of this Agreement or a Change of Control, Executive’s employment
      with the Company terminates for any reason or no reason, or if Executive no
      longer serves as an executive officer of the Company, this Agreement shall
      immediately terminate, and Executive shall not be entitled to any of the
      compensation and benefits described in this Agreement.  Any rights and
      obligations accruing before the termination or expiration of this Agreement
      shall survive to the extent necessary to enforce such rights and
      obligations.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.           
      “Change of
      Control.”  For purposes of this Agreement, “Change of Control”
shall mean any one or more of the following events occurring after the
      date of
      this Agreement:

    

    (a)           
      The purchase or other acquisition by any one person, or more than one
      person
      acting as a group, of stock of the Company that, together with stock held by
      such person or group, constitutes more than 50% of the total combined value
      or
      total combined voting power of all classes of stock issued by the Company;
      provided, however, that if any one person or more than one person acting as
      a
      group is considered to own more than 50% of the total combined value or total
      combined voting power of such stock, the acquisition of additional stock by
      the
      same person or persons shall not be considered a Change of
      Control;

    

    (b)           
      A merger or consolidation to which the Company is a party if the individuals
      and
      entities who were shareholders of the Company immediately prior to the effective
      date of such merger or consolidation have, immediately following the effective
      date of such merger or consolidation, beneficial ownership (as defined in Rule
      13d-3 under the Securities Exchange Act of 1934) of less than fifty percent
      (50%) of the total combined voting power of all classes of securities issued
      by
      the surviving entity for the election of directors of the surviving
      corporation;

    

    (c)           
      Any one person, or more than one
      person acting as a group, acquires  or has acquired during the twelve
      (12) month period ending on the date of the most recent acquisition by such
      person or persons, direct or indirect beneficial ownership (as defined in
      Rule 13d-3 under the Securities Exchange Act of 1934) of stock of the Company
      constituting more than
      fifty-percent (50%) of the total combined voting power of all classes of stock
      issued by the Company;

    

    (d)           
      The purchase or other acquisition
      by any one person, or more than one person acting as a group, of substantially
      all of the total gross value of the assets of the Company during the
      twelve-month period ending on the date of the most recent purchase or other
      acquisition by such person or persons.  For purposes of this Section
      2(d), “gross value” means the value of the assets of the Company or the value of
      the assets being disposed of, as the case may be, determined without regard
      to
      any liabilities associated with such assets;

    

    (e)           
      A change in the composition of the Board of the Company at any time during
      any
      consecutive twelve (12) month period such that the “Continuity Directors” cease
      for any reason to constitute at least a sixty-six and two-thirds percent
      (66-2/3%) majority of the Board. For purposes of this event, “Continuity
      Directors” means those members of the Board who either:

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (1)           
      were directors at the beginning of such consecutive twelve (12) month period;
      or

    

    (2)           
      were elected by, or on the nomination or recommendation of, at least a
      two-thirds (2/3) majority of the then-existing Board of Directors.

    

    
      	
               

            	
              In
                all cases, the determination of
                whether a Change of Control has occurred shall be made in accordance
                with
                Code Section 409A and the regulations, notices and other guidance
                of
                general applicability issued
                thereunder.

            

    

    

    3.           
      “Change of Control
      Termination.”  For purposes of this Agreement, “Change of
      Control Termination” shall mean any of the following events occurring upon or
      within twelve (12) months after a Change of Control:

    

    (a)           
      The termination of Executive’s employment by the Company for any reason, except
      for termination by the Company for “cause.”  For purposes of this
      Agreement, “cause” shall have the same meaning as set forth in Executive’s
      employment agreement with the Company, if any, as amended from time to
      time.   If Executive does not have an employment agreement with
      the Company, then “cause” shall mean (i) Executive’s substantial failure or
      neglect, or refusal to perform, the duties and responsibilities of Executive’s
      position and/or the reasonable direction of the Board of
      Directors;  (ii) the commission by Executive of any willful,
      intentional or wrongful act that has the effect of materially injuring the
      reputation, business or performance of the Company; (iii) Executive’s conviction
      of, or Executive’s guilty or nolo contendere plea with respect to, any crime
      punishable as a felony; (iv)  Executive’s conviction of, or
      Executive’s guilty or nolo contendere plea with respect to, any crime involving
      moral turpitude; or (v) any bar against Executive from serving as a director,
      officer or executive of any firm the securities of which are
      publicly-traded.

    

    For
      purposes of this Section 3(a), an act or failure to act by Executive shall
      not
      be “willful” unless it is done, or omitted to be done, in bad faith and without
      any reasonable belief that Executive’s action or omission was in the best
      interests of the Company.

    

    (b)           
      The termination of employment with the Company by Executive for “Good
      Reason.”  Such termination shall be accomplished by, and effective
      upon, Executive giving written notice to the Company of his/her decision to
      terminate.  “Good Reason” shall mean a good faith determination by
      Executive that any one or more of the following events has occurred upon or
      within twelve (12) months after a Change of Control; provided, however, that
      such event shall not constitute Good Reason if Executive has expressly consented
      to such event in writing or if Executive fails to provide written notice of
      his/her decision to terminate within ninety (90) days of the occurrence of
      such
      event:

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (1)

            	
              A
                change in Executive’s reporting title(s), status, position(s), authority,
                duties or responsibilities as an executive of the Company as in effect
                immediately prior to the Change of Control which, in Executive’s
                reasonable judgment, is material and adverse (other than, if applicable,
                any such change directly attributable to the fact that the Company
                is not
                longer publicly owned); provided, however, that Good Reason does
                not
                include such a change that is remedied by the Company promptly after
                receipt of notice of such change is given by Executive;
                

            

    

    

    
      	
               

            	
              (2)

            	
              A
                reduction by the Company in Executive’s base salary or an adverse change
                in the form or timing of the payment thereof, as in effect immediately
                prior to the Change of Control or as thereafter increased;
                

            

    

    

    
      	
               

            	
              (3)

            	
              the
                Company’s requiring Executive to be based more than fifty (50) miles from
                where Executive’s office is located immediately prior to the Change of
                Control, except for required travel on the Company’s business, and then
                only to the extent substantially consistent with the travel obligations
                which Executive undertook on behalf of the Company during the ninety-day
                period immediately preceding the Change of Control (without regard
                to
                travel related to or in anticipation of the Change of Control);
                

            

    

    

    
      	
               

            	
              (4)

            	
              the
                Company’s failure to cover Executive under any pension, bonus, incentive,
                stock ownership, stock purchase, stock option, life insurance, health,
                accident, disability, or any other employee compensation or benefit
                plan,
                program or arrangement (collectively referred to as the “Benefit Plans”)
                that, in the aggregate, provide substantially similar benefits to
                Executive (and/or Executive’s family and dependents) at a substantially
                similar total cost to Executive (e.g., premiums,
                deductibles, co-pays, out-of-pocket maximums, and required contributions)
                relative to the benefits and total costs under the Benefit Plans
                in which
                Executive (and/or Executive’s family or dependents) was participating at
                any time during the ninety-day period immediately preceding the Change
                of
                Control; 

            

    

     

    
      	
               

            	
              (5) 

            	
              
                any
                  purported termination by the Company of Executive’s employment that is not
                  properly effected pursuant to a written notice that specifies the
                  provision pursuant to which such notice is given and which complies
                  with
                  all other requirements of this Agreement, and, for purposes of
                  this
                  Agreement, no such purported termination will be effective;
                  or

              

            

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (6)

            	
              any
                refusal by the Company to continue to allow Executive to attend to
                matters
                or engage in activities not directly related to the business of the
                Company which, at any time prior to the Change of Control, Executive
                was
                not expressly prohibited in writing by the Board from attending to
                or
                engaging in. 

            

    

    

    Termination
      for “Good Reason” shall not include Executive’s death or a termination for any
      reason other than one of the events specified in clauses (1) through (6)
      above.

    

    4.           
      Compensation and
      Benefits.  Subject to the limitations contained in this
      Agreement, upon a Change of Control Termination, Executive shall be entitled
      to
      all of the following compensation and benefits:

    

    
      	
               

            	
              (a)

            	
              Within
                ten (10) business days after a Change of Control Termination, the
                Company
                shall pay to Executive: 

            

    

    

    
      	
               

            	
              (1)

            	
              All
                salary and other compensation earned by Executive through the date
                of the
                Change of Control Termination at the rate in effect immediately prior
                to
                such Termination; 

            

    

    

    
      	
               

            	
              (2)

            	
              All
                other amounts to which Executive may be entitled to receive under
                any
                compensation plan maintained by the Company, subject to any distribution
                requirements contained therein, including but not limited to amounts
                payable under the Restated Special Executive Retirement Plan, or
                any
                successor plan; 

            

    

    

    
      	
               

            	
              (3)

            	
              A
                severance payment, payable in a lump sum in cash, equal to one (1) times the
                annual
                cash compensation paid to Executive by the Company (or any predecessor
                entity or related entity) and includible in Executive’s gross income for
                federal income tax purposes for the calendar year immediately prior
                to the
                Change of Control Termination.  For purposes of this paragraph,
                “annual cash compensation” shall mean Executive’s annual base
                salary.  Further, for purposes of this paragraph, “predecessor
                entity” and “related entity” shall have the meaning set forth in Section
                280G of the Internal Revenue Code of 1986, as amended, and the regulations
                issued thereunder. 

            

    

    

    
      	
               

            	
              (b)

            	
              The
                Company shall provide Executive with continuation coverage (“COBRA
                coverage”) under the Company’s life, health, dental and other welfare
                plans as required by the Internal Revenue Code of 1986, as amended,
                the
                Employee Retirement Income Security Act of 1974, as amended, and
                applicable state law. 

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (c)

            	
              The
                Company shall provide Executive with outplacement services for twelve
                (12)
                months following the Change of Control Termination or, if earlier,
                until
                Executive has accepted employment with another employer.
                

            

    

    

    
      	
               

            	
              Notwithstanding
                the foregoing, if any of the payments described in this Section 4
                above
                are subject to the requirements of Code Section 409A and the Company
                determines that Executive is a “specified employee” as defined in Code
                Section 409A as of the date of the Change of Control Termination,
                such
                payments shall not be paid or commence earlier than the first day
                of the
                seventh month following the Change of Control Termination, but shall
                be
                paid or commence during the calendar year following the year in which
                the
                Change of Control Termination occurs and within 30 days of the earliest
                possible date permitted under Code Section 409A.  Further, in no
                event shall the benefits described in Section 4(c) extend beyond
                December
                31st
                of the second calendar year following the calendar year in which
                the
                Change of Control Termination occurs.

            

    

    

    5.           
      Limitation on Change of Control
      Payments.  Executive shall not be entitled to receive any
      Change of Control Payment, as defined below, which would constitute a “parachute
      payment” for purposes of Code Section 280G, or any successor provision, and the
      regulations thereunder.  In the event any Change of Control Payment
      payable to Executive would constitute a “parachute payment,” Executive shall
      have the right to designate those Change of Control Payments which would be
      reduced or eliminated so that Executive will not receive a “parachute
      payment.”  For purposes of this Section 5, a “Change of Control
      Payment” shall mean any payment, benefit or transfer of property in the nature
      of compensation paid to or for the benefit of Executive under any arrangement
      which is considered contingent on a Change of Control for purposes of Code
      Section 280G, including, without limitation, any and all of the Company’s
      salary, bonus, incentive, restricted stock, stock option, equity-based
      compensation or benefit plans, programs or other arrangements, and shall include
      benefits payable under this Agreement.

    

    6.           
      Withholding
      Taxes.  The Company shall be entitled to deduct from all
      payments or benefits provided for under this Agreement any federal, state or
      local income and employment-related taxes required by law to be withheld with
      respect to such payments or benefits.

    

    7.           
      Successors and
      Assigns.  This Agreement shall inure to the benefit of and
      shall be enforceable by Executive, his/her heirs and the personal representative
      of his/her estate, and shall be binding upon and inure to the benefit of the
      Company and its successors and assigns.  The Company will require the
      transferee of any sale of all or substantially all of the business and assets
      of
      the Company or the survivor of any merger, consolidation or other transaction
      expressly to agree to honor this Agreement in the same manner and to the same
      extent that the Company would be required to perform this Agreement if no such
      event had taken place.  Failure of the Company to obtain such
      agreement before the effective date of such event shall be a breach of this
      Agreement and shall entitle Executive to the benefits provided in Sections
      4 and
      5 as if Executive had terminated employment for Good Reason following a Change
      in Control.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    8.           
      Notices.  For
      the purpose of this Agreement, notices and all other communications provided
      for
      in the Agreement shall be in writing and shall be deemed to have been duly
      given
      when delivered or mailed by United States certified or registered mail, return
      receipt requested, postage prepaid, addressed to the respective addresses set
      forth on the first page of this Agreement or to such other address as either
      party may have furnished to the other in writing in accordance herewith, except
      that notice of change of address shall be effective only upon
      receipt.  All notices to the Company shall be directed to the
      attention of the Board of Directors of the Company.

    

    9.           
      Captions.  The
      headings or captions set forth in this Agreement are for convenience only and
      shall not affect the meaning or interpretation of this Agreement.

    

    10.           
      Governing
      Law.  The validity, interpretation, construction and
      performance of this Agreement shall be governed by the laws of the State of
      Minnesota.

    

    11.           
      Construction.  Wherever
      possible, each term and provision of this Agreement shall be interpreted in
      such
      manner as to be effective and valid under applicable law.  If any term
      or provision of this Agreement is invalid or unenforceable under applicable
      law,
      (a) the remaining terms and provisions shall be unimpaired, and (b) the invalid
      or unenforceable term or provision shall be deemed replaced by a term or
      provision that is valid and enforceable and that comes closest to expressing
      the
      intention of the unenforceable term or provision.

    

    12.           
      Amendment;
      Waivers.  This Agreement may not be modified, amended, waived
      or discharged in any manner except by an instrument in writing signed by both
      parties hereto.  The waiver by either party of compliance with any
      provision of this Agreement by the other party shall not operate or be construed
      as a waiver of any other provision of this Agreement, or of any subsequent
      breach by such party of a provision of this
      Agreement.  Notwithstanding anything in this Agreement to the
      contrary, the Company expressly reserves the right to amend this Agreement
      without Executive’s consent to the extent necessary or desirable to comply with
      Code Section 409A, and the regulations, notices and other guidance of general
      applicability issued thereunder.

    

    13.           
      Entire
      Agreement.  This Agreement supersedes all prior or
      contemporaneous negotiations, commitments, agreements (written or oral) and
      writings between the Company and Executive with respect to the subject matter
      hereof, including but not limited to any negotiations, commitments, agreements
      or writings relating to any severance benefits payable to Executive, and
      constitutes the entire agreement and understanding between the parties
      hereto.  All such other negotiations, commitments, agreements and
      writings will have no further force or effect, and the parties to any such
      other
      negotiation, commitment, agreement or writing will have no further rights or
      obligations thereunder.

    

    14.           
      Counterparts.  This
      Agreement may be executed in several counterparts, each of which shall be deemed
      to be an original but all of which together shall constitute one and the same
      instrument.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    15.           
      Arbitration.  Any
      dispute arising out of or relating to this Agreement or the alleged breach
      of
      it, or the making of this Agreement, including claims of fraud in the
      inducement, shall be discussed between the disputing parties in a good faith
      effort to arrive at a mutual settlement of any such controversy.  If,
      notwithstanding, such dispute cannot be resolved, such dispute shall be settled
      by binding arbitration.  Judgment upon the award rendered by the
      arbitrator may be entered in any court having jurisdiction
      thereof.  The arbitrator shall be a retired state or federal judge or
      an attorney who has practiced securities or business litigation for at least
      10
      years.  If the parties cannot agree on an arbitrator within 20 days,
      any party may request that the chief judge of the District Court for Hennepin
      County, Minnesota, select an arbitrator.  Arbitration will be
      conducted pursuant to the provisions of this Agreement, and the commercial
      arbitration rules of the American Arbitration Association, unless such rules
      are
      inconsistent with the provisions of this Agreement.  Limited civil
      discovery shall be permitted for the production of documents and taking of
      depositions.  Unresolved discovery disputes may be brought to the
      attention of the arbitrator who may dispose of such dispute.  The
      arbitrator shall have the authority to award any remedy or relief that a court
      of this state could order or grant; provided, however, that punitive or
      exemplary damages shall not be awarded.  Unless otherwise ordered by
      the arbitrator, the parties shall share equally in the payment of the fees
      and
      expenses of the arbitrator.  The arbitrator may award to the
      prevailing party, if any, as determined by the arbitrator, all of the prevailing
      party’s costs and fees, including the arbitrator’s fees, and expenses, and the
      prevailing party’s travel expenses, out-of-pocket expenses and reasonable
      attorneys’ fees.  Unless otherwise agreed by the parties, the place of
      any arbitration proceedings shall be Hennepin County, Minnesota.

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed and delivered as of the day and year first above written.

    
 

    
      
        	 	
                ANALYSTS
                  INTERNATIONAL CORPORATION

              
	 	 
	 	 
	 	
                By:  ______________________________________

              
	 	
                Its:   ______________________________________

              
	 	 
	 	 
	 	
                __________________________________________

              
	 	
                Executive

              

      

      

 

    

     

     

    
 

    
      
        
           

        

        
        

      

      
        8

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