Document:

Exhibit 10.4

 

BIOSANTE PHARMACEUTICALS, INC.

PERFORMANCE INCENTIVE PLAN

 

1.                                       Purpose of Plan.

 

The purpose of the BioSante Pharmaceuticals, Inc. Performance Incentive Plan (the “Plan”) is to provide financial reward in addition to base salary, based on achievement of specific performance, to those who significantly affect the growth and success of the Company.  The Plan is designed to reward eligible employees for achieving annual, quarterly or other goals and to align closely their accomplishments with the interests of the Company’s stockholders. This is done by providing incentives for the achievement of annual, quarterly or other key corporate and individual performance goals that are critical to the success of the Company while linking a significant portion of an employee’s compensation to the achievement of such goals.

 

2.                                       Definitions.

 

The following terms will have the meanings set forth below, unless the context clearly otherwise requires:

 

2.1                                 “Base Salary” means the base salary paid by the Company to a Participant during the applicable Performance Period.  Base Salary includes only regular cash salary and is determined before any reduction for deferrals pursuant to any nonqualified deferred compensation plan or arrangement, qualified cash or deferred arrangement or cafeteria plan.

 

2.2                                 “BioSante” means BioSante Pharmaceuticals, Inc., a Delaware corporation, and any successor thereto.

 

2.3                                 “Board” means the Board of Directors of the Company.

 

2.4                                 “Committee” has the meaning set forth in Section 3 of the Plan.

 

2.5                                 “Company” means BioSante and, if applicable and appropriate, any subsidiary of BioSante.

 

2.6                                 “Executive Officer” means an “executive officer” of BioSante within the meaning of Rule 3b-7 under the Securities Exchange Act of 1934, as amended, or an “officer” of BioSante within the meaning of Rule 16a-1(f) thereunder.

 

2.7                                 “Officer” means a person designated as an “officer” of BioSante by the Board, which shall include each Executive Officer.

 

2.8                                 “Participant” means an Officer and any other employee of the Company selected by the Committee, in its discretion, to participate in the Plan.

 

 

3.                                       Plan Administration.

 

The Plan will be administered with respect to Participants who are Officers by the Board or by a committee of the Board if so designated by the Board to administer the Plan and will be administered with respect to Participants who are not Officers by the Chief Executive Officer of the Company.  As used in the Plan, “Committee” will refer to the Board or to such a committee, if established and so designated, and to the Company’s Chief Executive Officer, as applicable.  The Committee may exercise its duties, power and authority under the Plan in its sole and absolute discretion without the consent of any Participant or other party.  Each determination, interpretation or other action made or taken by the Committee pursuant to the provisions of the Plan will be final, conclusive and binding for all purposes and on all persons, including the Company and Participants, and no member of the Committee will be liable for any action or determination made in good faith with respect to the Plan.  To the extent consistent with applicable corporate law of the Company’s jurisdiction of incorporation, the Committee may delegate to the Chief Executive Officer of the Company the duties, power and authority of the Committee under the Plan pursuant to such conditions or limitations as the Committee may establish; provided, however, that only the Committee may exercise such duties, power and authority with respect to Participants who are Executive Officers.

 

4.                                       Participants.

 

All Officers are eligible to participate in the Plan.  The Chief Executive Officer of the Company will determine any other employees of the Company eligible to participate in the Plan on an annual basis, or more often if appropriate.

 

Participants with less than a full Performance Period of service may be eligible to participate in the Plan on a prorated basis, determined by the percentage of time they were eligible to participate during that Performance Period.  In the event a Performance Period is one year, Participants with less than three (3) full months of eligible service on December 31 of a particular Performance Period will not be eligible to receive a bonus payout under the Plan for that Performance Period.

 

5.                                       Performance Period.

 

The performance period under the Plan is either from January 1 to December 31 of each year or such other period as determined by the Committee (the “Performance Period”).

 

6.                                       Target Incentives.

 

Target incentives, expressed as a percentage of Base Salary, for Participants who are Officers are as set forth in the table below and are based upon their position, level of responsibility within the Company and impact on the business. Target incentives for all other Participants who are not Officers will be established on an annual basis by the Chief Executive Officer of the Company based upon their respective positions, levels of responsibility within the Company and impact on the business.  The target incentives for Participants who are not Officers will not exceed the target incentives set forth in the table below.  These target incentives 

 

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(expressed as a percentage of a Participant’s Base Salary) represent the target incentive opportunity that a Participant is eligible to receive under the Plan:

 

	
Position
    	
 
    	
Target Incentive
   Expressed as Percentage of Base Salary
    	
 
    
	
President and Chief Executive Officer
    	
 
    	
60%
    	
 
    
	
Senior Vice Presidents
    	
 
    	
40%
    	
 
    
	
Vice Presidents
    	
 
    	
30%
    	
 
    
	
Director
    	
 
    	
Up to 20%
    	
 
    
	
Associate Director
    	
 
    	
Up to 15%
    	
 
    
	
Project Manager
    	
 
    	
Up to 12.5%
    	
 
    
	
Manager
    	
 
    	
Up to 10%
    	
 
    
	
All Other Participants
    	
 
    	
Up to 10%
    	
 
    

 

A Participant whose target incentive changes during a Performance Period by reason of a promotion or otherwise will have a prorated target incentive for such Performance Period based on the percentage of time during which the Participant had a particular target incentive.

 

7.                                       Plan Components.

 

Each bonus payout under the Plan will be calculated pursuant to Section 10 of the Plan and based on (a) the performance of the Company in relation to various pre-established corporate performance goals, as described in more detail in Section 8 of the Plan and/or (b) the performance of the Participant in relation to various pre-established individual performance goals, as described in more detail in Section 9 of the Plan.  In addition, under certain limited circumstances, modifications to a bonus payout calculated pursuant to Section 10 of the Plan may be made if, in the Committee’s final judgment, the bonus payout calculation for a particular Participant does not accurately reflect such Participant’s actual individual performance during a Performance Period.

 

8.                                       Corporate Performance Goals.

 

For each Performance Period, corporate performance goals and their weightings in terms of importance with a percentage for the determination of bonus payouts under the Plan will be prepared initially by the Chief Executive Officer and reviewed and approved by the Committee.  For each Performance Period, the corporate performance goals and their weightings will be established in the first quarter of such Performance Period, when possible.  The corporate performance goals will include financial, operational and/or other business goals as appropriate.  At the discretion of the Committee, the corporate performance goals and their percentage weightings under certain limited circumstances may be adjusted by the Committee during a Performance Period to better reflect the Company’s business.

 

For any Performance Period, the Committee in its discretion may establish one or more threshold corporate performance goals that must be achieved at a certain minimum level (based on the achievement grid in Section 10) in order for any bonus payouts to occur for such Performance Period.

 

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9.                                       Individual Performance Goals.

 

Individual performance goals and their weightings for the determination of bonus payouts under the Plan may be established for one or more Participants by the Committee, with input from the respective Participant, for any Performance Period as deemed appropriate by the Committee.  In establishing individual performance goals for Participants who are Officers, the Committee will seek recommendations by the Chief Executive Officer.  If individual performance goals are established for a Participant for a particular Performance Period, each individual performance goal will be weighted in terms of importance with a percentage.  If individual performance goals are established for a Participant for a particular Performance Period, such Participant’s individual performance goals and their weightings under certain limited circumstances may be adjusted, at the discretion of the Committee, during such Performance Period to better reflect the Company’s business and/or the Participant’s duties and obligations.

 

10.                                 Bonus Calculation.

 

From time to time during the Performance Period and during the last month of each Performance Period or as soon as practicable thereafter, the Committee, with input as appropriate from the Chief Executive Officer and/or other Board members, will assess the achievement by the Company of each corporate performance goal and the achievement by each Participant of each individual performance goal during the Performance Period in relation to the achievement performance rating scale provided below.

 

Thereafter, the Committee, with input as appropriate from the Chief Executive Officer and other Board members, will assign an achievement performance rating and corresponding achievement incentive percentage to each corporate performance goal and any individual performance goals based on the achievement scale below and actual achievement by the Company of each such corporate performance goal and achievement by a Participant of any individual performance goals applicable to such Participant during the Performance Period.

 

The scale for calculating a Participant’s achievement performance rating and corresponding achievement incentive percentage is as follows:

 

	
Achievement
   Level
    	
 
    	
Achievement
   Performance
   Rating
    	
 
    	
Achievement
   Incentive
   Percentage
    	
 
    
	
Exceeds expectations —   maximum payout warranted
    	
 
    	
5
    	
 
    	
150
    	
%
    
	
Exceeds expectations —   above target payout warranted but not maximum
    	
 
    	
4
    	
 
    	
125
    	
%
    
	
Performs at target level   of performance — target payout warranted
    	
 
    	
3
    	
 
    	
100
    	
%
    
	
Slightly below target   level of performance — slightly below target payout warranted
    	
 
    	
2
    	
 
    	
75
    	
%
    

 

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Achievement
   Level
    	
 
    	
Achievement
   Performance
   Rating
    	
 
    	
Achievement
   Incentive
   Percentage
    	
 
    
	
Meets threshold level of   performance — threshold payout warranted
    	
 
    	
1.5
    	
 
    	
50
    	
%
    
	
Does not meet expectations   — no bonus payout warranted
    	
 
    	
<1.5
    	
 
    	
0
    	
%
    

 

Increments between rating levels will be interpolated as closely as possible to determine an achievement incentive percentage, e.g. an overall rating of 3.5 equals a 112.5% achievement incentive percentage.

 

An achievement performance rating for each of the corporate and individual goals must meet at least a 1.5 to meet the minimum 50% achievement incentive percentage for that goal.  The achievement incentive percentage for each goal is capped at 150%.  A weighted average achievement incentive percentage for all of the corporate performance goals, a weighted average achievement incentive percentage for all of a Participant’s individual performance goals and an overall weighted average achievement incentive percentage will then be determined by the Committee for each Participant.

 

An overall weighted average achievement incentive percentage below 50% for a Participant will result in no bonus payout for such Participant.  Since the achievement incentive percentage for each goal is capped at 150%, the maximum overall weighted average achievement incentive percentage possible for each Participant is 150%.  Therefore, assuming an achievement incentive percentage for each goal at 150%, the maximum bonus for each Participant under the Plan is 150% of their respective target incentive.

 

For each Participant, his or her overall weighted average achievement incentive percentage for a Performance Period is multiplied by such Participant’s target incentive (expressed as a percentage of the Participant’s Base Salary) for such Performance Period to calculate the Participant’s actual bonus payout for such Performance Period.  For example, a 112.5% overall weighted average achievement incentive percentage times a 20% target incentive would equal an actual bonus payout of 22.5% of Base Salary for such Performance Period.

 

Under certain limited circumstances, modifications may be made if, in the Committee’s final judgment, the bonus payout calculation pursuant to this Section for a particular Participant does not accurately reflect such Participant’s actual individual performance during a Performance Period.

 

11.                                 Manner and Timing of Bonus Payouts.

 

Bonus payouts for each Performance Period will be made in cash, check, automatic deposit into a Participant’s account, or the issuance of Company common stock, in each case as determined by the Committee in its discretion and as soon as reasonably practicable after the determination of such bonus payouts but in any event no later than March 15th of the following calendar year. To be eligible for a payout under the Plan for a Performance Period, a Participant 

 

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must remain actively employed by the Company until the later of: (a) the last day of such Performance Period or (b) the date of payout for such Performance Period.  With respect to Participants who die, become disabled or are on an approved leave of absence during the Performance Period, the Committee will determine whether such Participants will receive a payout and if so the amount of such payouts, based upon not only the achievement of the corporate and individual goals but also, in the case of a leave of absence, the cause of the leave of absence and the length of time of such leave of absence.

 

12.                                 Tax Considerations and Withholding.

 

Bonus payouts under the Plan will be treated as taxable income for the year in which the Participant receives the bonus payout.  The Company will withhold appropriate amounts from all bonus payouts under the Plan to satisfy all federal, state and local tax withholding requirements.

 

13.                                 Plan Discretion.

 

All bonus payouts under the Plan are purely discretionary and no Participant will have any vested or other right to a payout under the Plan until actually paid.

 

To the extent necessary with respect to any Performance Period, in order to avoid any undue windfall or hardship due to external causes, the Committee may without the consent of any affected Participant, revise one or more of the corporate performance goals or individual performance goals, or otherwise make adjustments to payouts under the Plan to take into account any unforeseen or unexpected events, including without limitation any acquisition or disposition by the Company not planned for at the time the corporate performance goals were established, any change in accounting principles or standards, or any extraordinary or non-recurring event or item, so as equitably to reflect any such events, such that the criteria for evaluating whether a corporate performance goal or individual performance goal has been achieved will be substantially the same (as determined by the Committee) following such event as prior to such event.

 

14.                                 Plan Termination, Suspension or Modification.

 

The Company may terminate, suspend, modify and if suspended, may reinstate or modify, all or part of the Plan at any time, with or without notice to Participants.  Exceptions to the eligibility of, or the extent to which the Plan applies to, any particular Participant must be approved, on a case-by-case basis, by the Committee.

 

15.                                 No Rights to Employment.

 

This document sets forth the terms of the Plan and is not intended to be a contract or employment agreement between any Participant and the Company.  Nothing contained in the Plan (or in any other documents related to the Plan) will confer upon any employee or Participant any right to continue in the employ or other service of the Company or constitute any contract or limit in any way the right of the Company to change such person’s compensation or other benefits or to terminate the employment or other service of such person with or without cause or notice.

 

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16.                                 Clawback Policy.

 

Any payouts under the Plan are subject to forfeiture to or clawback by the Company to the extent required and allowed by law, including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the Sarbanes Oxley Act of 2002 and any implementing rules and regulations promulgated thereunder, and pursuant to any forfeiture, clawback or similar policy of the Company, as such policy may be in effect from time to time.

 

17.                                 Unfunded Status of Plan.

 

This Plan will be unfunded.  No provisions of the Plan will require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets.  Participants will have no rights under the Plan other than as unsecured general creditors of the Company.

 

18.                                 Non-Assignability.

 

Except for the designation of a beneficiary(ies) to receive payouts for a particular Performance Period following a Participant’s death after the completion of such Performance Period, no amount payable at any time under the Plan will be subject to sale, transfer, assignment, pledge, attachment, or other encumbrance of any kind.  Any attempt to sell, transfer, assign, pledge, attach, or otherwise encumber any such benefits, whether currently or thereafter payable, will be void.

 

19.                                 Miscellaneous.

 

19.1                           Governing Law.  Except to the extent expressly provided herein or in connection with other matters of corporate governance and authority (all of which will be governed by the laws of the Company’s jurisdiction of incorporation), the validity, construction, interpretation, administration and effect of the Plan and any rules, regulations and actions relating to the Plan will be governed by and construed exclusively in accordance with the laws of the State of Illinois, notwithstanding the conflicts of laws principles of any jurisdictions.

 

19.2                           Successors and Assigns.  This Plan will be binding upon and inure to the benefit of the successors and permitted assigns of the Company and the Participants.

 

19.3                           Construction.  Wherever possible, each provision of the Plan will be interpreted so that it is valid under the applicable law.  If any provision of the Plan is to any extent invalid under the applicable law, that provision will still be effective to the extent it remains valid.  The remainder of the Plan will continue to be valid, and the entire Plan will continue to be valid in other jurisdictions.

 

7Exhibit 10.1

 

SEPARATION AGREEMENT AND RELEASE OF CLAIMS
 Christopher T. Cain

 

I.                                         Definitions.  I intend all words used in this Separation 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 (Christopher T. Cain) 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.                                    Employee Agreement means the letter agreement between myself and the Company (dated March 24, 2010 and signed by me on April 12, 2010), together with all attachments thereto (as identified on page 3 thereof).

 

E.                                      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, including but not limited to any claims based on, relating to or arising out of my Employee Agreement; and

 

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

 

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, 42 U.S.C. § 2000e et  seq.; the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act of 1990, 42 U.S.C. § 2000e et seq.; the Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.;  the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Civil Rights Act of 1991, 42 U.S.C. § 1981a; the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq.; the National Labor Relations Act, 29 U.S.C. § 151 et seq.; the Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.; the Sarbanes-Oxley Act, 15 U.S.C. § 7201 et seq.; the Genetic Information Nondiscrimination Act of 2008, Pub. L. No. 110-233, 122 Stat. 881 (codified as amended in scattered sections of 29 U.S.C. and 42 U.S.C.); 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), 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101 et seq.; the Equal Pay Act (codified in scattered sections of 29 U.S.C.); the Minnesota Human Rights Act, Minn. Stat. § 363A.01 et seq.; the Texas Commission on Human Rights Act (Texas Labor Code Annotated Sections 21.001, et seq.); any applicable local human rights ordinance; and any claim arising under Minn. Stat. Chapters 177 and 181; and

 

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; and

 

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

 

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.                                     Resignation from Employment and Agreement to Release My Claims.

 

A.                                   On May 5, 2011 I resigned from my employment with (and my position as Senior Vice President, West Region, of) Analysts International, such resignation to be effective as of the close of business on June 1, 2011.

 

B.                                     Provided I perform all of my obligations under this Agreement and do not revoke this Agreement within the fifteen (15) day revocation period as set forth below, I will receive severance from Analysts International in the form of a single, lump sum payment in the amount of $64,140.00 (subject to normal withholdings) (“Severance Compensation”).

 

C.                                     I understand that I may continue my COBRA coverage at my own expense for any remaining period of COBRA eligibility after Analysts International stops its monthly premium payments.  I understand that the date of my employment termination, June 1, 2011, is my qualifying event for COBRA purposes.  I understand that I will have 90 days following June 1, 2011, to exercise any of my vested stock options of Analysts International.  I understand that pursuant to the terms of the applicable Analysts International plan documents, all of my unvested stock options are forfeited.

 

D.                                    My Severance Compensation is contingent upon me signing and not revoking this

 

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Agreement as provided below.  I understand and acknowledge that the Severance Compensation 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.

 

E.                                      In exchange for the Severance Compensation, 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 Severance Compensation that I am receiving is a fair compromise for my undertakings in this Agreement.

 

F.                                      Notwithstanding the foregoing, I understand that nothing contained in this Agreement purports to limit any right I may have to file a charge with the 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 Severance Compensation 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 (15) 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.  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 through May 26, 2011 (which, I acknowledge, is no less than twenty-one (21) calendar days from the date I first received a draft of this Agreement) to consider whether I wish to sign this Agreement.  I understand that if I sign this Agreement prior to May 26, 2011, 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 during which I can consider whether to sign this Agreement.

 

If I elect not to execute and return this Agreement on or before May 26, 2011, 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 have the right to revoke the release of claims contained in Paragraph II with regard to claims arising under the Minnesota Human Rights Act, Minnesota Statutes Chapter 363A, within fifteen (15) calendar days of my signing this Agreement, and with regard to my rights arising under the federal Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., within seven (7) calendar days of my signing this Agreement.  The two revocation periods shall run concurrently.  This Agreement will not become effective or enforceable

 

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unless and until the fifteen (15) day revocation period has expired without my revoking it.  I understand that if I 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 this Agreement within said fifteen (15) day period, I understand that Analysts International will begin to pay the Severance Compensation to me shortly after that fifteen (15) day period expires.

 

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 May 26, 2011.  To revoke my acceptance, I must deliver a written, signed statement that I revoke my acceptance by hand or by certified mail, return receipt requested, within the fifteen (15) 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, Suite 500
 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 comments regarding the Company, about its officers, directors, management, employees, representatives, products or services.

 

X.                                    Non-Solicitation and Non-Interference.  I acknowledge and agree to abide by the restrictions against solicitation and non-interference set forth in the Non-Competition Agreement between Analysts International and myself with an effective date of March 24, 2010, for which I acknowledge sufficient prior consideration was given.

 

XI.                                Restrictions Against Competition.  I acknowledge and agree to abide by the restrictions against competition set forth in the Non-Competition Agreement between Analysts International and myself with an effective date of March 24, 2010, for which I acknowledge sufficient prior consideration was given.

 

XII.                            Confidentiality.  I agree that I will keep confidential, and will not use for my benefit or 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 and 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 or use it for the advantage of myself or anyone other than Analysts International.  Without limiting the foregoing, I acknowledge and agree to abide by the restrictions against improper use or disclosure of confidential information set forth in the Confidentiality

 

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Agreement between Analysts International and myself dated March 24, 2010.

 

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 any such property to Analysts International.

 

XIV.                       No Other Promises or Representations.  I agree that no promise or representation, other than the promises and representations expressly contained in this Agreement, has been made to me by the Company.

 

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 or its attorneys 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 the Company including, but not limited to, 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.                   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.

 

XVIII.               Other Agreements.  I understand that this Separation Agreement and Release of Claims and the employee benefit plans of Analysts International in which I will continue as a participant following my termination from employment contain all of the agreements between the Company and me.  Except as expressly provided herein, these agreements (this Separation Agreement and Release of Claims and the employee benefit plans of Analysts International in which I will continue as a participant following my termination from employment) expressly supersede all other written and oral agreements the Company and I may have, including, but not limited to, the my Employee Agreement).  I fully understand and acknowledge that this Agreement completely supersedes and replaces my Employee Agreement and that, from and after the effective date of this Agreement, except as expressly provided herein, I will not have any rights under my Employee Agreement (or any of them or any exhibit thereto), whether to Separation, change of control payments, stock options, or otherwise.  Any additions or changes to this Agreement must be in writing and signed by both parties.

 

XIX.                       Survival.  I understand that the provisions of this Agreement that, by their nature and content, must survive the completion, revocation, 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, IX, X, XI, XII and XIII of this Agreement) will survive the termination of my employment and the termination, for any reason, of this Agreement.

 

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XX.                           Release as Evidence.  I understand and agree that in the event that any claim, suit or action shall be commenced by me against the Company, 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.

 

By signing below, I, Christopher T. Cain, acknowledge and agree to the following:

 

·                                          I have had adequate time to consider whether or not to sign this Separation Agreement and Release of Claims.

 

·                                          I have read this Separation Agreement and Release of Claims carefully.

 

·                                          I understand and agree to all of the terms of this Separation Agreement and Release of Claims.

 

·                                          I am knowingly and voluntarily releasing My Claims against the Company (as defined herein) to the extent expressly set forth in this Separation Agreement and Release of Claims.

 

·                                          I have not, in signing this Separation Agreement and Release of Claims, relied upon any statements or explanations made by the Company except as for those specifically set forth in this Separation Agreement and Release of Claims.

 

·                                          I intend this Separation Agreement and Release of Claims to be legally binding.

 

·                                          The effective date of this Separation Agreement and Release of Claims shall be the date on which it is last signed by one of the parties to this Agreement.

 

The foregoing is agreed and accepted.

 

 

	
Christopher   T. Cain
    	
Analysts   International Corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brittany McKinney
    
	
 
    	
 
    	
 
    
	
/s/   Christopher T. Cain
    	
 
    	
Title:
    	
President   & CEO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date   signed:
    	
5/11/2011
    	
 
    	
Date   signed:
    	
5/24/2011
    
					

 

6

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